San Francisco Administrative Code § 32.54 Limitation Based on Fair Market Value of Work

(a) Prior to the granting of any loan over $20,000 under this Chapter, a qualified estimator will make an onpremises inspection of the applicant's property and certify, in writing, that the estimated cost of the recommended work, as detailed in the job specifications, is not more than 10 percent above fair market value. No loan will be granted in an amount exceeding 10 percent of fair market value for the work specified or higher than the lowest bid received, whichever is less, without the approval of the Chief Administrative Officer

(b) Where loan is under $20,000 and low bid exceeds estimate of building inspector by 10 percent, the Real Estate Department will hire an estimator to certify the fair market value of the job specifications.

(c) A qualified estimator is a person:

• (1) Who is not a City employee; but

(2) Who is selected by the Chief Administrative Officer because he or she is qualified and experienced in the area of residential rehabilitation.

The estimator shall operate under the direction of the Director of the Real Estate Department.

(d) A property owner wishing to challenge the low bid or the estimator's value may hire a licensed estimator if he or she so desires.

(e) The Chief Administrative Officer shall, semi-annually, direct a report to the Board of Supervisors setting forth a list of the loans which were in excess of 10 percent of the estimated fair market value pursuant to the provisions of Paragraph (a) giving the reasons for approval in each case.

(Amended by Ord. 274-78, App. 6/9/78)

ARTICLE VII:

TERMS OF CONVENTIONAL RAP LOANS