California Financial Code

§ 22687

FIN § 22687 Effective Jan 1, 2019Div. 9 · Ch. 3.5

Statute text

(a)A program administrator shall determine before executing an assessment contract, and no work shall commence under a home improvement contract that is financed by that assessment contract nor shall that home improvement contract be executed until this determination is made, that the property owner has a reasonable ability to pay the annual payment obligations for the PACE assessment based on the property owner’s income, assets, and current debt obligations. The determination process shall be based on the following factors:

(1)The property owner shall submit on their application their monthly income and their monthly housing expenses.

(2)Housing expenses shall include all mortgage principal and interest payments, insurance, property taxes, mortgage guaranty insurance, and other preexisting fees and assessments on the property.

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Legislative history

Amended by Stats. 2018, Ch. 813, Sec. 10. (AB 2063) Effective January 1, 2019.