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 15 - Rental Housing Construction Program-Proposition 84 › Article 2 - Program Requirements › Section 8090 - Syndication

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) In the event
					 that the project is syndicated during the term of the program loan for the
					 purpose of receiving federal or state low income housing tax credits, the total
					 amount of syndication proceeds retained by the sponsor, or any affiliates of
					 the sponsor, in the form of fees or payments of any kind, shall not exceed 25
					 percent of net syndication proceeds. Net syndication proceeds shall be
					 calculated by deducting from gross syndication proceeds all reasonable and
					 ordinary costs of syndication, including accounting, printing, financial
					 consultant, legal, interest and fees on gap financing used to pay development
					 costs approved by the department, syndicator fee, and government fees
					 associated with creating a limited partnership and securing tax credit
					 allocations.
(b) Not less than 75
					 percent of any available net syndication proceeds shall be applied toward
					 project development costs approved by the department, exclusive of any fees or
					 payments retained by the sponsor or its affiliates, and, then, to the extent
					 that funds are available, toward payment of program loan interest and
					 principal.
(c) Upon demand by local
					 public agencies that have contributed or loaned funds towards project
					 development costs, net syndication proceeds that would otherwise be applied
					 towards program loan payments may be allocated among these agencies and the
					 department in amounts in direct proportion to the ratio between the amount of
					 their contributions or loans and the amount of the program loan.
1. New
						section filed 12-29-89 as an emergency; operative 12-29-89 (Register 90, No.
						3). A Certificate of Compliance must be transmitted to OAL within 120 days or
						emergency language will be repealed by operation of law on
						4-30-90.
2. New section refiled 4-26-90 as an emergency; operative
						4-26-90 (Register 90, No. 23). A Certificate of Compliance must be transmitted
						to OAL within 120 days or emergency language will be repealed by operation of
						law on 8-24-90.
3. New section refiled 8-27-90 as an emergency;
						operative 8-27-90 (Register 90, No. 42). A Certificate of Compliance must be
						transmitted to OAL by 12-26-90 or emergency language will be repealed by
						operation of law on the following day.
4. New section refiled
						12-19-90 as an emergency pursuant to Health and Safety Code section 50771.3;
						operative 12-19-90 (Register 91, No. 4). A Certificate of Compliance must be
						transmitted to OAL by 4-18-91 or emergency language will be repealed by
						operation of law on the following day.
5. Certificate of Compliance
						as to 12-19-90 order transmitted to OAL 1-4-91; disapproved by OAL 2-4-91
						(Register 91, No. 13).
6. New section refiled 2-20-91 as an
						emergency; operative 2-20-91 (Register 91, No. 13). A Certificate of Compliance
						must be transmitted to OAL by 6-17-91 or emergency language will be repealed by
						operation of law on the following day.
7. Certificate of Compliance
						as to 6-14-91 including amendment of subsection (a) transmitted to OAL 5-15-91
						and filed 6-14-91 (Register 91, No. 38).
Note: Authority cited: Section 50771.1, Health and
						  Safety Code. Reference: Section 50771.1, Health and Safety
						  Code.