Cal. Civ. Code § 0770-03-01-.08
CONTRACT RENTS AT THE END OF REHABILITATION LOAN TERM
Operative Text
(1) For a Contract where the Owner accomplished less than $15,000 of rehabilitation and the initial Contract Rent was based upon a loan term shorter than 15 years, the Contract must provide for reduction of the Contract Rent effective with the rent for the month following the end of the term of the rehabilitation loan. The amount of the reduction will be the monthly cost of amortization of the rehabilitation loan. This reduction should result in a new Contract Rent equal to the base rent established pursuant to 0770-3-1-.07 plus all subsequent adjustments. Authority: T.C.A. §13-23-115 (18). Administrative History: Original rule filed July 13, 1982; effective August 12, 1982.
Under Tenn. Comp. R. & Regs. 0770-03-01 et seq. § 0770-03-01-.08, when a housing contract involved less than $15,000 in rehabilitation work and the initial contract rent was set based on a loan term of fewer than 15 years, the contract rent must decrease once that rehabilitation loan is paid off. The reduction equals the monthly amortization amount that had been built into the rent to cover the loan, and the resulting rent should align with the base rent established under the related rule plus any approved adjustments that followed. This provision ensures that tenants are not permanently charged a rent premium that was originally justified only by a short-term financing cost.
Plain English — not legal advice.
Property owners and managers subject to Tenn. Comp. R. & Regs. 0770-03-01 et seq. § 0770-03-01-.08 generally track the end date of any rehabilitation loan that fell below the $15,000 threshold and was structured on a term shorter than 15 years. Compliant operators calculate the monthly amortization component that was included in the original contract rent and apply the corresponding reduction beginning with the rent due the month after the loan term concludes. Maintaining clear records of the original loan terms, amortization schedules, and base rent calculations under § 0770-03-01-.07 supports accurate and timely rent adjustments.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenn. Comp. R. & Regs. 0770-03-01 et seq. § 0770-03-01-.08 establishes that tenants in covered units should see their contract rent reduced once a qualifying short-term rehabilitation loan has been fully amortized, rather than continuing to pay a rent level that included a financing cost that no longer applies. Tenants who believe a required rent reduction has not been applied may wish to review their lease terms and the applicable loan documentation to understand what adjustment should have occurred. Tenant-rights organizations or a housing counselor familiar with Tennessee's housing finance regulations can help identify appropriate avenues for raising a concern about a missed rent reduction under this provision.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
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