San Francisco Administrative Code § 32.66 Transfer of Loans

(a) The unpaid amount of a conventional RAP loan shall be due and payable upon sale or transfer of the ownership of the property, except that assignment of the unpaid amount of such a loan to a purchaser or transferee may be permitted when the Chief Administrative Officer determines that hardship conditions exist and the prospective owner qualifies for a loan on the basis of current loan eligibility standards.

(b) If the holder of a conventional RAP loan is dissatisfied with the Chief Administrative Officer's refusal to permit transfer of the unpaid amount of the loan because of a finding that hardship conditions do not exist, the holder of the loan may request review of the Chief Administrative Officer's determination by the Loan Committee. If the Loan Committee recommends a finding that hardship conditions exist, the Chief Administrative Officer shall either accept that recommendation or give written reasons for the refusal to accept it.

(c) Hardship conditions exist:

(1) When the owner of property subject to a conventional RAP loan is forced to sell the property and the property cannot be sold without a substantial loss of equity unless the loan is transferable;

(2) When the income of a prospective purchaser of property subject to a conventional RAP loan is at or below income standards to be established by the Chief Administrative Officer; or

(3) When the prospective purchaser is unable to obtain financing in the private sector because of age, disability or sex; or

• (4) When transfer of the loan is necessary to prevent significant rent increases.

• (d) The Chief Administrative Officer shall develop standards which shall be applied in making determinations required under this Section.

(Added by Ord. 23-74, App. 1/9/74)