§ 7014. Requirements for Construction Projects on Leased Property.
4 CA ADC § 7014Barclays Official California Code of Regulations
4 CCR § 7014
§ 7014. Requirements for Construction Projects on Leased Property.
(a) If an Applicant proposes to use Grant funds for a Project other than equipment acquisition on property where the Applicant, or the California nonprofit corporation of which the Applicant is an operating entity, is a lessee under a lease agreement, the following requirements shall be satisfied prior to any release of Grant funds pursuant to Sections 7013, 7013.1, or 7013.2, as applicable.
(C) No superior liens (deeds of trust or other rights) in the property. If there are any superior liens, they shall be subordinated to the lease agreement. The lease agreement shall provide that any subsequent encumbrance on the property (e.g. deed of trust) or sale of the property shall be subject to the lease agreement.
(5) The lease agreement shall provide that the only remedy for any default, including failure to pay rent, by lessee Applicant, or the California nonprofit corporation of which the Applicant is an operating entity, is suit for rent or specific performance to remedy any specific breach. The landlord's remedies for any default by lessee Applicant, or the California nonprofit corporation of which the Applicant is an operating entity, may not include cancellation of lease agreement, retaking of property or eviction of the lessee.
(B) The landlord will provide the lessee Applicant, or the California nonprofit corporation of which the Applicant is an operating entity, with notice of any failure to pay taxes or assessments on the property and an opportunity for the lessee Applicant, or the California nonprofit corporation of which the Applicant is an operating entity, to cure the failure.
(8) The lessee Applicant shall demonstrate that the lease agreement is legally authorized and has been properly approved and executed and enforceable against the lessee Applicant, or the California nonprofit corporation of which the Applicant is an operating entity. Lessee Applicant shall provide a legal opinion of qualified counsel to this effect to the Authority.
(10) The Grant Agreement shall provide that if the lease agreement terminates prior to the end of the useful life of the Project under the Grant and the property that was subject to the lease agreement is not simultaneously re-leased under a new lease agreement that complies with the requirements of this Section 7014 or fee title to the property that was subject to the lease agreement is not simultaneously transferred to the Applicant, the Authority is entitled to recover the Grant funds pursuant to Section 7016.
(11) When a Project on leased property includes improvements to any common areas that are shared with other tenants or areas that are not leased by the lessee Applicant, or the California nonprofit corporation of which the Applicant is an operating entity, under the lease agreement, the Grant funds shall be limited only to the proportionate costs of the Project which exclude the costs related to such areas.
Credits
Note: Authority cited: Sections 1179.85, 1179.87 and 1179.91, Health and Safety Code. Reference: Sections 1179.85, 1179.87 and 1179.88, Health and Safety Code.
History
1. New section filed 4-12-2019 as an emergency; operative 4-12-2019 (Register 2019, No. 15). A Certificate of Compliance must be transmitted to OAL by 10-9-2019 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 10-7-2019 as an emergency; operative 10-10-2019 (Register 2019, No. 41). A Certificate of Compliance must be transmitted to OAL by 1-8-2020 or emergency language will be repealed by operation of law on the following day.
3. New section refiled 1-8-2020 as an emergency; operative 1-9-2020 (Register 2020, No. 2). A Certificate of Compliance must be transmitted to OAL by 4-8-2020 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 1-8-2020 order transmitted to OAL 12-3-2019 and filed 1-16-2020 (Register 2020, No. 3).
This database is current through 5/10/24 Register 2024, No. 19.
Cal. Admin. Code tit. 4, § 7014, 4 CA ADC § 7014
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