Earlier editions: 2026-09
Title 11 — REHABILITATION ASSISTANCE PROGRAM
Tulare Municipal Code Ch. 11.28 Deferred/Shared Appreciation Loans
Tulare Municipal Code · 2026-10 edition · updated 2026-10-03 · Tulare
Cite as: Tulare Municipal Code Chapter 11.28 · Text as of 2026-10-03
§ 11.28.010 Availability and purpose.¶
Deferred/shared appreciation loans are hereby established as a part of the rehabilitation assistance program. The purpose of a deferred/shared appreciation loan shall be to provide financial assistance in the form of a deferred principal loan to low-income owner-occupants of property subject to residential rehabilitation having an income of 80% of median income, or below, for Tulare County.
(1995 Code, § 11.28.010) (Ord. 97-1810, passed - -1997; Ord. 97-1800, passed - -1997)
§ 11.28.020 Maximum amount of loan and eligibility.¶
A deferred/shared appreciation loan of up to $75,000 may be made to a low-income applicant who is the owner-occupant of a one-to-four unit residential dwelling unit building.
(1995 Code, § 11.28.020) (Ord. 06-2005, passed 2-21-2006; Ord. 99-1847, passed - -1999)
§ 11.28.030 Term.¶
A deferred/shared appreciation loan shall be for a maximum term of 75 years and shall be due and payable upon transfer of the property unless the property is transferred to another party who is eligible for such a loan pursuant to this title and accepts the assignment of the rights and obligations of the deferred/shared appreciation loan.
(1995 Code, § 11.28.030) (Ord. 97-1810, passed - -1997; Ord. 97-1800, passed - -1997)
§ 11.28.040 Transferability.¶
Upon transfer of property subject to a deferred/shared appreciation loan, or an interest therein, to a spouse or heir who occupied the property at the time of mortgagor’s death and who is otherwise eligible for a deferred/shared appreciation loan, if the surviving spouse or heir so chooses and occupies the property, the deferred/shared appreciation loan may be transferred to the spouse or heir. A deferred/shared appreciation loan may not be transferred more than once.
(1995 Code, § 11.28.040) (Ord. 97-1810, passed - -1997; Ord. 97-1800, passed - -1997)
§ 11.28.050 Forgiveness.¶
The deferred/shared appreciation loan shall, however, be forgiven at the end of 15 years if the property is still occupied the property owner or his or her rightful spouse or heir in accordance with this chapter.
(1995 Code, § 11.28.050) (Ord. 97-1810, passed - -1997)
§ 11.28.060 Repayment.¶
If the owner sells the property at a bonafide sale for fair market value (FMV), the total amount due the city shall be determined based upon the following formula:
(A) The original value of the deferred/shared appreciation loan be divided by the FMV after rehabilitation of the property as determined by a qualified appraiser at the time of rehabilitation. This ratio shall be known as the Shared Appreciation Value Ratio (SAVR).
(B) The amount due the city shall be lesser of:
(1) The SAVR multiplied by the sales price of the property; and
(2) The amount calculated by taking the sales price of the property and subtracting from it the amounts paid out upon sale of the property to satisfy debts owed on the property which were in a secured position superior to that of the deferred/shared appreciation loan and the costs of any capital improvements paid for by the property owner and the amount of all closing costs paid by the owner. By way of example only, the following two alternatives demonstrate the methodology for calculating the amount to be paid back to the city upon sale of the property.
Example #1
| $10,000 | Loan |
|---|---|
| $50,000 | Appraised Value |
| $60,000 | Sales Price |
| $25,000 | Outstanding 1st Mortgage |
| $ 5,000 | Closing Costs |
| $ 2,000 | Capital Improvements made by Owner |
| $10,000 | |
| $50,000 | = 20% SAVR |
| $60,000 x 20% = $12,000 | $60,000 x 20% = $12,000 |
| $60,000 - 25,000 - 5,000 - 2,000 = $28,000 | |
| City is paid $12,000 | City is paid $12,000 |
Example #2
| $10,000 | Loan |
|---|---|
| $50,000 | Appraised Value |
| $60,000 | Sales Price |
| $35,000 | Outstanding 1st mortgage |
| $ 5,000 | Closing Costs |
| $10,000 | Capital Improvements made by Owner |
| $10,000 | |
| $50,000 | = 20% SAVE |
| $60,000 x 20% | = $12,000 |
| $60,000 - 35,000 - 5,000 - 10,000= $10,000 | |
| City is paid $10,000 | City is paid $10,000 |
(1995 Code, § 11.28.060) (Ord. 97-1810, passed - -1997; Ord. 97-1800, passed - -1997)
§ 11.28.070 Security.¶
Deferred/shared appreciation loans shall be secured by a deed of trust, which may be other than a first deed of trust, naming the city as beneficiary of the trust.
(1995 Code, § 11.28.070) (Ord. 97-1800, passed - -1997)
§ 11.28.080 Additional loan terms.¶
Notwithstanding the provisions of this chapter, each provision required to be contained in a standard RAP loan agreement pursuant to this title shall also be contained in each deferred/shared appreciation loan agreement.
(1995 Code, § 11.28.080) (Ord. 97-1800, passed - -1997)
§ 11.28.090 Source of funds.¶
Any funds given to or received by the city specifically for the purpose of providing deferred/shared appreciation loans may be accepted by the City Manager for that purpose.
(1995 Code, § 11.28.090) (Ord. 97-1800, passed - -1997)
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