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 5.5 - Special User Housing Rehabilitation Program › Section 7462 - Regulatory Agreement

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Before any funds may be disbarred from the Fund, the
					 Department shall enter into a Regulatory Agreement with sponsors, which shall
					 include, but not be limited to:
(a)
				  standards for tenant selection to ensure occupancy by eligible
				  households;
(b) a rent schedule
				  established by the Department at levels affordable to low income households to
				  the extent consistent with the financial integrity of the rental housing
				  development;
(c) conditions and
				  procedures for permitting rent increases;
(d) limitations on profits allowed for-profit
				  and limited-profit sponsors to a fair rate of return. No return shall be
				  allowed non-profit and public entity sponsors;
(e) assurances that the sponsor will maintain
				  the rental housing development in a safe and sanitary condition in compliance
				  with state and local housing codes;
(f) conditions and a schedule for reporting
				  to the Department by the sponsor;
(g) conditions relating to Departmental
				  review and inspections;
(h) a
				  schedule for project implementation, including a timetable for ownership of the
				  rental housing development, commencement of rehabilitation work, and occupancy
				  of the project by eligible households;
(i) conditions relating to completion of
				  rehabilitation work, fund disbursements, and reporting of progress;
(j) provisions relating to the term and
				  amount of the loan, repayment to the Fund, payment of interest, assumptions of
				  the loan, refinancing and sale of the rental housing development;
(k) terms and conditions with respect to
				  default, late repayment and collection of loans;
(l) terms and conditions relating to breach
				  of the regulatory agreement and remedies therefore;
(m) provisions regulating the terms of the
				  occupancy agreement between the sponsor and tenants of the rental housing
				  development, including terms requiring good cause for any eviction, the
				  establishment of a grievance procedure for hearing complaints of tenants and
				  providing for notice to tenants of proposed rent increases;
(n) provisions ensuring that the relocation
				  requirements of Section 50670(g) of the Health and Safety Code will be adhered
				  to;
(o) provisions requiring the
				  approval of the Department for all general contracts for approved
				  rehabilitation work; such contracts shall include provisions which require,
				  pursuant to state or federal law, the use of affirmative action in hiring by
				  contractors and subcontractors;
(p)
				  provisions limiting encumbrances against the rental housing development without
				  prior Department approval;
(q)
				  provisions relating to a replacement reserve;
(r) provisions relating to requirements for
				  proper management of the rental housing development, including approval by the
				  Department for any management contract or master lease; and
(s) other provisions necessary to assure
				  compliance with the intent of the program.
1. Amendment
					 of subsections (d) and (r) filed 4-5-84; effective thirtieth day thereafter
					 (Register 84, No. 14).
2. Amendment of subsection (n) filed 6-9-87;
					 operative 7-9-87 (Register 87, No. 25).
Note: Authority cited: Section 50662, Health and Safety
						Code; Reference: Sections 50669-50670, Health and Safety
						Code.