California Code of Regulations › Title 4 - Business Regulations › Division 9.5 - California Debt Limit Allocation Committee › Chapter 2 - Qualified Residential Rental Projects › Article 7 - Post Issuance Oversight and Termination of Project-Based Subsidies › Section 5220 - Regulatory Compliance

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) All
				  QRRP allocation recipients are required to execute a Bond Regulatory Agreement
				  (the "Regulatory Agreement"), as a condition to the Committee's making an
				  allocation, which will be recorded against the property for which the
				  allocation is used, and will reflect all commitments outlined in exhibit A of
				  the Committee's resolution. For projects submitted to CDLAC after December 31,
				  2016, the Regulatory Agreement shall terminate prior to the end of the CDLAC
				  Resolution affordability term only in the event of (i) involuntary
				  noncompliance with the provisions of the Regulatory Agreement caused by fire or
				  other casualty, seizure, requisition, change in a federal law or an action of a
				  federal agency after the bond issuance which prevents the Issuer, Fiscal Agent
				  and/or the Trustee (as applicable) from enforcing such provisions, or (ii)
				  foreclosure, exercise of power of sale, and/or transfer of title by deed in
				  lieu of foreclosure in connection with a deed of trust directly or indirectly
				  securing the repayment of Standard Permanent Bonds, or repayment of a non-Bond
				  related obligation that provides permanent project financing and meets the
				  requirements of section
				  5193 or condemnation or a similar
				  event, but only if, in the case of the events described in either clause (i) or
				  (ii) above, the bonds are redeemed within a reasonable period or the proceeds
				  for the event are used to provide a project that meets the requirement of the
				  Regulatory Agreement.
(b) If Cash
				  Flow Permanent Bonds finance project costs in projects submitted to CDLAC after
				  December 31, 2016, all units identified in the CDLAC resolution, including both
				  the Federally Bond-Restricted Units and the Other Restricted Units, will be
				  incorporated into the Bond Regulatory Agreement. Assumptions to be included in
				  the Bond Regulatory Agreement regarding the Other Restricted Units will include
				  the AMI as outlined in the CDLAC resolution, a limitation that tenants pay no
				  more than 30% of their income, and 1.5 person per bedroom occupancy standard to
				  determine the applicable rent.
(c)
				  For projects receiving allocation after December 31, 2016, The Bond Regulatory
				  Agreement will:
(1) Incorporate the CDLAC
				  resolution by reference and as an attachment;
(2) Have a term consistent with the income
				  and rental restrictions established in the Resolution. The Bond Regulatory
				  Agreement shall terminate in 55 years (50 years for Projects located on Native
				  American Lands) from the date 50% occupancy is achieved or the commencement of
				  the CDLAC Qualified project period, whichever date is earlier;
(3) Include all applicable income and
				  affordability requirements outlined in
				  26 U.S.C. §
												142, Cal. H&S Code §
											34312.3 (c)(1)
				  & (2), Cal. H&S Code §
											51335(a), and Cal.
				  H&S Code §
											52080
				  (a)(1);
(4) Clarify that compliance with items not
				  contained within the body of the Bond Regulatory Agreement but referred to in
				  the CDLAC resolution are the responsibility of the Sponsor to report to the
				  Issuer;
(5) Designate CDLAC to
				  receive notice of changes in ownership, Issuer, project name and management
				  company; and
(6) Designate CDLAC to
				  receive all notices regarding defaults associated with the rents and income
				  requirements, Bond Default, Qualified Bond Default, and regulatory
				  termination.