(a) General. All reservations of Credit shall be conditioned at a minimum of, but not limited to, the following:
(1) Timely project completion;
(2) Receipt of amounts of Credit no greater than necessary for economic feasibility and viability as a qualified farmworker housing project throughout the compliance period;
(3) Continued use as a farmworker housing project for a period of 30 years.
(4) Executed and recorded Regulatory Agreement.
(b) Reservation. Reservation of Credit shall be subject to conditions as described in this subsection and Sections 11004, 11006 and 11007.
(1) Reservation of Credit shall be conditioned upon the Committee's receipt of an executed reservation letter bearing the applicant's signature accepting the reservation within twenty (20) calendar days of the Committee's notice to the applicant.
(2) Should the 20-day period for returning the executed reservation letter continue past December 31 of any year, an applicant may be required to execute and return the reservation letter in less than twenty (20) days in order for the reservation to be effective.
(3) Failure to comply with any shortened period shall invalidate the reservation offer and permit the Committee to offer a reservation to the next eligible project.
(c) Allocation. To receive the form evidencing an allocation of Credit the applicant must provide the following documentation upon project completion:
(1) The applicant shall submit documentation required by the Reservation Letter, a Farmworker Housing Assistance Program Regulatory Agreement and remit by cashier's check the compliance monitoring fee when requesting the Allocation.
(2) The Committee shall review the documentation to determine if all conditions have been satisfied.
(A) Substantive changes to the approved original application, in particular, changes to the financing plan, proposed lenders or costs, shall be explained in detail and may require the Committee to request and review additional information; may cause the project to be completely reconsidered by the Committee; may cause a reduction in the Eligible Costs; or, may cause a rescission of the Credit reservation. In no case, however, will the Eligible Costs be increased over the amount established at the Reservation.
(3) A current title report showing title vested in the entity which received the reservation of Credit, or the assignee which has been approved by the Committee.
(4) Executed organizational documents, if applicable, between the applicant and investor(s);
(5) Certificates of Occupancy for each building in the project (or a Notice of Completion for rehabilitation projects). With new construction Credit, a Certificate of Occupancy showing the placed-in-service date is required and for rehabilitation Credit, a Notice of Completion is required showing the placed-in-service date; and, a certified statement from the owner and contractor that all rehabilitation is complete;
(6) A cost certification, on a Committee provided form, prepared by a qualified accountant.
(7) Placed-in-service dates, shown separately for each building, on a Committee provided form. If the placed-in-service date(s) denoted are different from the date on the Certificate of Occupancy or Notice of Completion, a detailed explanation is required;
(8) Photographs of the completed building(s) both interior and exterior;
(9) If applicable, a certification from the syndicator of equity raised and syndication costs on a Committee provided format; or, if no syndication, a certification from a qualified accountant as to the amount of Credit available and the equity provided by the owner.
(10) A project ownership profile on a Committee provided form;
(11) A copy of any cost certification submitted to and approved by any other lender.
(12) A narrative description of the following:
(A) Identification of the prospective qualified farmworkers and families;
(B) The number of units or sleeping areas;
(C) The rent levels adjusted for family size;
(D) All other charges which will be charged to the farmworker;
(E) How the project is affordable for farmworkers and, if applicable, their families;
(F) Maintenance for the project; and,
(G) If applicable, a copy of the current operating permit issued pursuant to the Employee Housing Act;
(H) An executed regulatory agreement.
(13) If all conditions have been satisfied, tax form TCAC 3521B (7/97) shall be issued.
Credits
Note: Authority cited: Section 50199.56, Health and Safety Code. Reference: Section 50199.55, Health and Safety Code; and Sections 17053.14(c), (e) and (h), 23608.2(c), (d), (e) and (h) and 23608.3(c), (d), (e), (f) and (e), Revenue and Taxation Code.
History
1. New section filed 9-29-98; operative 9-29-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 40).
This database is current through 4/19/24 Register 2024, No. 16.
