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 4 - Multifamily Housing Program › Article 4 - Program Operations › Section 7326 - Operating Budget

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 Prior to loan closing, the Sponsor shall submit an initial operating budget to
					 the Department. Such budget shall show all anticipated income; expenses for
					 management, operations and maintenance; debt service; and reserve deposits for
					 the Initial Operating Year.
(b) For
					 as long as deemed necessary by the Department to ensure compliance with Program
					 requirements, the Sponsor shall submit to the Department for its approval, 60
					 days prior to the end of each Project fiscal year, a proposed operating budget.
					 The proposed operating budget shall set forth the Sponsor's estimate of the
					 Project's Operating Income, Operating Expenses, debt service for the upcoming
					 year, and any proposed Rent increases pursuant to Section 7312. In lieu of the
					 requirement for submission of complete proposed operating budgets, the
					 Department may require submission of limited budget information, such as a
					 proposed Rent schedule, proposed management fees, and reserve deposit amounts.
					 The Department may re-impose the requirement for submission of complete
					 operating budgets where necessary to ensure compliance with Program
					 requirements.
(c) The initial and
					 subsequent proposed operating budgets, where required, shall be subject to the
					 approval of the Department based on its determination that the budget line
					 items are reasonable and necessary in light of costs for comparable Rental
					 Housing Developments and prior year budgets. Actual expenditures in excess of
					 the approved budget amount shall be subject to Department approval.
(d) The initial operating budget and
					 subsequent proposed operating budgets shall include periodic deposits to the
					 operating reserve, replacement reserve, and any other reserve account required
					 by the Department in accordance with the requirements of Sections 8308 and 8309
					 of this title.
(e) For Projects
					 with non-Assisted Units or Commercial Space, all budgets submitted pursuant to
					 this section shall show income and uses of income allocated among Assisted
					 Units, Restricted Units, non-Restricted Units, and Commercial Space. The
					 allocation method used for each budget line item shall be subject to Department
					 approval, and shall apportion income and expenses in a manner that accurately
					 reflects the particular physical, operational and economic characteristics of
					 the Project.
1. New
						section filed 1-8-2002; operative 1-8-2002 pursuant to Government Code section
						11343.4 (Register 2002, No. 2).
2. Amendment of subsection (d) filed
						9-29-2003; operative 9-29-2003 pursuant to Government Code section 11343.4
						(Register 2003, No. 40).
Note: Authority cited: Sections 50406(n), 50675.1(c)
						  and 50675.11, Health and Safety Code. Reference: Sections 50675.1 and 50675.8,
						  Health and Safety Code.