California real estate disclosure laws California Real Estate Disclosures | Page 66

construction, improvement, or rehabilitation of housing. Further, lenders
cannot deny loan applications because of ethnic composition, conditions,
characteristics, or expected trends in the neighborhood or geographic area
surrounding the property. The Act encourages increased lending in
neighborhoods where, in the past, financing has been unavailable. The major
goal of the Act is to ensure and increase the supply of safe and decent
housing for credit-worthy borrowers and to prevent neighborhood decay.
To ensure that prospective borrowers are aware of their rights under this law,
lenders must notify all applicants of the provisions of the Holden Act at the
time of the loan application. The notice must include the address where
complaints may be filed and where information may be obtained. The notice
must be in at least 10-point type and must be posted in a conspicuous
location in the lender’s place of business.
Any applicant seeking a real estate loan in connection with financing a
personal residence (containing not more than four dwelling units) who
believes he/she has been subjected to discrimination may file a complaint
with the Secretary of the Business, Transportation and Housing Agency or
his/her designee. The Secretary’s decision will be final unless the applicant
or lender requests a hearing.
(CAL. HEALTH & SAFETY § 35800 et. seq.)

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