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 4 - Program Operations › Section 8103 - Emergency Reserve Account

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 The department shall establish an emergency reserve account in the fund. Three
					 percent of any allocation made to the fund pursuant to Health and Safety Code
					 section 53130(a) shall be deposited into the account. Excess funds returned to
					 the department pursuant to section 8089(i) shall be deposited into the account
					 to replace the allocated funds in the account on a dollar for dollar basis.
					 Allocated funds so replaced shall become available for loans provided pursuant
					 to this subchapter.
(b) The
					 department shall maintain a default reserve as a portion of the emergency
					 reserve account, in an amount equal to two percent of all allocations to the
					 fund pursuant to Health and Safety Code section 53130(a), for the purpose of
					 avoiding or curing defaults pursuant to section 8099(e).
(c) When funds in the account exceed the two
					 percent default reserve required pursuant to subdivision (b), the department
					 shall advance funds from the account to defray unanticipated cost increases or
					 revenue shortfalls to the extent necessary to preserve fiscal integrity 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 12-29-89 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						emergency language will be repealed by operation of law on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						to OAL within 120 days or emergency language will be repealed by operation of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						transmitted to OAL by 12-26-90 or emergency language will be repealed by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 order including amendment of subsection (c) and repeal of
						subsection (d) 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: Sections 50771.1 and 53130, Health and Safety
						  Code.