(a) Regulatory Agreement. All recipients of Credit under this program shall execute a Regulatory Agreement as a condition precedent to the Committee's making an allocation of Credit. Banks and financial institutions are excluded from this requirement. The Regulatory Agreement shall include, but not be limited to, all of the following provisions:
(1) Establishment of the location and number of units or sleeping areas and their rents;
(2) Requirement of an annual report, including occupancy, income and maintenance information and, if applicable, a copy of the current operating permit issued pursuant to the Employee Housing Act;
(3) Requirements allowing and governing state approval of the assignment, transfer, and assumption of the housing to ensure that the requirements of the program are binding on successors;
(4) Agreement ensuring a term of use as a farmworker housing project at least equal to the compliance period;
(5) Requirement that the Regulatory Agreement be recorded in the official records of the county in which the qualified farmworker housing project is located;
(6) Enforcement of the Regulatory Agreement is by the Committee, by the city or county in which the farmworker housing is located and by the tenants as third-party beneficiaries;
(7) Method by which the affordable rents will be established and maintained;
(b) Responsibility of owner. All compliance requirements are the responsibility of the project owner.
(1) Any failure by the owner to respond to compliance reports and certification requirements will be considered an act of noncompliance and shall be reported to the FTB.
(2) If reasonable attempts by the Committee to obtain the information are unsuccessful the applicant will be notified of the rescission of Credit.
(c) Compliance monitoring procedure. Compliance is the sole responsibility of the owner of the building(s) for which the Credit is allowable. The Committee's obligation is to monitor projects for compliance of the program requirements. The Committee assumes no liability for any owner's noncompliance nor does it relieve the owner of responsibility to comply with the terms and conditions of this program. The Committee's compliance monitoring requirements are as follows:
(1) Annual Owner Report. Owners must submit an annual report providing information regarding occupancy, income, maintenance information, and any other information the Committee deems necessary to properly monitor a project.
(2) Tenant Verification. Owners must obtain evidence that all tenants are farmworkers through the receipt of third party verification. Such verification may include, but is not limited to, a letter from the tenant's employer, or tenant income tax information.
(3) Leases. Leases between the owner and the tenant shall be executed when rent is charged to the tenant. Leases shall conform with all federal, state and local laws.
(4) Record keeping. The owner of a project shall retain records for each year in the compliance period showing:
(A) the total number of residential rental units in the building including the number of bedrooms, and unit size in square feet;
(B) the rent charged for each unit;
(C) the number of household members in each unit;
(D) notation of any vacant units;
(E) move-in, move-out dates for all units;
(F) how the affordable rents are established and charged.
(5) Record Retention. For each year of the compliance period, owners and the Committee are required to retain records of the information described.
(A) Owners shall retain documents for at least six years from the due date (with extensions) for filing the and state income tax return beginning with the first qualified year.
(B) The Committee shall retain records of noncompliance, or failure to certify, for at least six years beyond the Committee's filing of the respective TCAC Form 3521B.
(C) Should the Committee request copies of tenant records, it shall retain them for three years from the end of the last calendar year in which it receives them.
(1) should the Committee review tenant files at the subject project, it shall retain the review notes and any other pertinent information for the same three-year period.
(D) The Committee shall retain all other project documentation for the same three-year period.
(6) Certification requirements. Under penalty of perjury, a project owner is required to certify annually that the project meets the following certification requirements.
(A) All terms and conditions recorded in the Regulatory Agreement.
(B) No change in ownership has occurred during the reporting period;
(C) The project has not been notified by the FTB that it is no longer a “qualified” farmworker housing project
(D) The project meets all standards for providing safe, sanitary and decent housing.
(7) Status report, file and site inspection. The Committee, or its designee, shall routinely inspect and review the project record keeping and site. The annual reviews shall be established by the Committee and shall be at the sole discretion of the Committee. Advance notice shall not be given of the Committee's inspection.
(A) A Notice of Intent to Conduct Compliance Inspection and a Project Status Report (PSR) form will be delivered to the project owner at the time of the inspection.
(B) The project shall be subject to a visual inspection of the project's outward physical appearance. Unit inspections shall not be performed unless deferred maintenance of the exterior project area suggests that units may not be fit for occupancy. Owners shall be notified of the inspection results.
(8) The Committee shall perform and complete its status report and inspection on Credit projects even if other governmental agencies also monitor those projects. The Committee's reliance on the review findings may alter the extent of the review. In addition, the Committee may rely on reports or site visits prepared by lenders or other governmental agencies, lenders or investors.
Credits
Note: Authority cited: Section 50199.56, Health and Safety Code. Reference: Sections 50199.52(a)(2) and 50199.53 Health and Safety Code; and Sections 17053.14(h)(2) and (I) and 23608.2 (h)(2) and (I) 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.
