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§ 7462. Regulatory Agreement.

25 CA ADC § 7462Barclays Official California Code of Regulations

Barclays California Code of Regulations
Title 25. Housing and Community Development
Division 1. Housing and Community Development
Chapter 7. Department of Housing and Community Development Programs
Subchapter 5.5. Special User Housing Rehabilitation Program
25 CCR § 7462
§ 7462. Regulatory Agreement.
Before any funds may be disbarred from the Fund, the Department shall enter into a Regulatory Agreement with sponsors, which shall include, but not be limited to:
(a) standards for tenant selection to ensure occupancy by eligible households;
(b) a rent schedule established by the Department at levels affordable to low income households to the extent consistent with the financial integrity of the rental housing development;
(c) conditions and procedures for permitting rent increases;
(d) limitations on profits allowed for-profit and limited-profit sponsors to a fair rate of return. No return shall be allowed non-profit and public entity sponsors;
(e) assurances that the sponsor will maintain the rental housing development in a safe and sanitary condition in compliance with state and local housing codes;
(f) conditions and a schedule for reporting to the Department by the sponsor;
(g) conditions relating to Departmental review and inspections;
(h) a schedule for project implementation, including a timetable for ownership of the rental housing development, commencement of rehabilitation work, and occupancy of the project by eligible households;
(i) conditions relating to completion of rehabilitation work, fund disbursements, and reporting of progress;
(j) provisions relating to the term and amount of the loan, repayment to the Fund, payment of interest, assumptions of the loan, refinancing and sale of the rental housing development;
(k) terms and conditions with respect to default, late repayment and collection of loans;
(l) terms and conditions relating to breach of the regulatory agreement and remedies therefore;
(m) provisions regulating the terms of the occupancy agreement between the sponsor and tenants of the rental housing development, including terms requiring good cause for any eviction, the establishment of a grievance procedure for hearing complaints of tenants and providing for notice to tenants of proposed rent increases;
(n) provisions ensuring that the relocation requirements of Section 50670(g) of the Health and Safety Code will be adhered to;
(o) provisions requiring the approval of the Department for all general contracts for approved rehabilitation work; such contracts shall include provisions which require, pursuant to state or federal law, the use of affirmative action in hiring by contractors and subcontractors;
(p) provisions limiting encumbrances against the rental housing development without prior Department approval;
(q) provisions relating to a replacement reserve;
(r) provisions relating to requirements for proper management of the rental housing development, including approval by the Department for any management contract or master lease; and
(s) other provisions necessary to assure compliance with the intent of the program.

Credits

Note: Authority cited: Section 50662, Health and Safety Code; Reference: Sections 50669-50670, Health and Safety Code.
History
1. Amendment of subsections (d) and (r) filed 4-5-84; effective thirtieth day thereafter (Register 84, No. 14).
2. Amendment of subsection (n) filed 6-9-87; operative 7-9-87 (Register 87, No. 25).
This database is current through 6/21/24 Register 2024, No. 25.
Cal. Admin. Code tit. 25, § 7462, 25 CA ADC § 7462
End of Document