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 16 - Family Housing Demonstration Program Regulations-Proposition 84 › Article 4 - Program Operations › Section 8140 - Emergency Reserve Subaccount

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The department shall establish an
					 emergency reserve subaccount in the Account. Three (3) percent of any
					 allocation made to the Account pursuant to Health and Safety Code section
					 53130(a) shall be deposited into the emergency reserve subaccount. Excess funds
					 returned to the department pursuant to section 8123(h) and 8117(e)(2)(B) shall
					 be deposited into the emergency reserve subaccount to first, replace the
					 allocated funds in the subaccount on a dollar-for-dollar basis and then to
					 replenish the emergency reserve subaccount. Excess funds received which cause
					 the emergency reserve subaccount to exceed three percent of all allocations to
					 the Account shall transfer to the Account and become available for loans
					 pursuant to this subchapter.
(b)
					 The department shall maintain a default reserve subaccount, as a portion of the
					 emergency reserve subaccount, in an amount equal to 2 percent of all
					 allocations to the Account pursuant to Health and Safety Code section 53130(a)
					 for the purpose of avoiding or curing defaults pursuant to section
					 8136(e).
(c) When funds in the
					 emergency reserve subaccount exceed the 2 percent required to be maintained
					 pursuant to subdivision (b), the department shall be authorized to advance
					 funds from the emergency reserve subaccount to defray unanticipated cost
					 increases or revenue shortfalls to the extent necessary to preserve fiscal
					 integrity of any project and to maintain rents in accordance with program
					 requirements. All funds so advanced shall be part of the program loan to the
					 sponsor and subject to the same interest rate and terms of repayment.
1. New
						section filed 12-14-90 as an emergency; operative 12-14-90 (Register 91, No.
						11). A Certificate of Compliance must be transmitted to OAL by 4-15-91 or
						emergency language will be repealed by operation of law on the following
						day.
2. Repealed by operation of law on 4-16-91.
3. New
						section filed 7-19-91 as an emergency; operative 7-19-91 (Register 92, No. 16).
						A Certificate of Compliance must be transmitted to OAL 11-6-91 or emergency
						language will be repealed by operation of law on the following
						day.
4. New section refiled 11-15-91 as an emergency; operative
						11-15-91 (Register 92, No. 16). A Certificate of Compliance must be transmitted
						to OAL 3-16-92 or emergency language will be repealed by operation of law on
						the following day.
5. Certificate of Compliance as to 11-15-91 order
						transmitted to OAL 12-12-91 and filed 1-13-92 (Register 92, No.
						16).
Note: Authority cited: Sections 50406(n), 50884 and
						  50895, Health and Safety Code. Reference: Sections 50883.5(b) and 53130, Health
						  and Safety Code.