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 10 - Rental Housing Construction Program › Article 6 - CHFA Developments › Section 7876 - Interagency Operating Agreement

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The Department and the Agency shall enter into an
						Interagency Operating Agreement which shall specify their respective
						obligations. The Interagency Operating Agreement shall include, but not be
						limited to, the following items:
(a)
					 The Department shall establish an allocation plan which shall provide the
					 Department with a mechanism for balancing the Program's requirements while
					 providing flexibility to the Agency to seek to balance its overall production
					 in order to meet its statutory requirements. The plan, prepared at regular
					 intervals by the Department, shall establish allocations for the number, type,
					 geographic distribution and other relevant criteria of assisted units to be
					 submitted to the Department for approval within a specified period.
(b) In accordance with the allocation plan,
					 the Agency shall, on a project-by-project basis, select projects after
					 considering the program priorities and their consistency with other Program
					 requirements and objectives.
(c)
					 The Department and Agency shall specify the means by which the Department may
					 enforce the breach of any Agreement between the Agency and a Sponsor.
(d) The Agency and Department shall agree to
					 a method of resolving any differences of opinion as to the requirements,
					 objectives, or intent of the Program.
(e) The Department shall agree to set aside
					 forty percent (40%) of the moneys in the fund as of July 1, 1980, to assist
					 rental housing developments financed by or through the Agency. Such funds shall
					 be approved for expenditure by application approval within two (2) years after
					 promulgation of the initial allocation plan; funds remaining at that time shall
					 become available to local finance entities, housing authorities, or the Agency
					 on an equal basis.
(f) Prior to any
					 disbursement of funds to the Agency, the Agency and Department shall enter into
					 a state contract for each development in accordance with Section 7882. The
					 state contract shall be recorded or referenced in the office of the county
					 recorder as set forth in Section 7882 (e).
(g) At the time of Department approval of an
					 application, the Department shall transfer to the Agency a sum equivalent to
					 120% of the amount of assistance approved for a specific development, or such
					 lesser amount as requested by the Agency. Within one year thereafter unless an
					 extension is granted by the Department, the agency shall fund the loan for the
					 development; if the loan is not funded within the approved term, the sum and
					 all interest collected thereon shall be transferred to the
					 Department.
(h) Upon receipt of the
					 funds from the Department, the Agency shall establish an appropriate project
					 account and, pending disbursements by the Agency, shall invest the funds in an
					 interest-bearing account or security. Funds from the account shall not be
					 disbursed for the development except as permitted by this subchapter, the
					 Interagency Agreement, and the state contract.
(i) The Agency may apply to the Department
					 for funds not to exceed an amount proportionate to its set-aside from the
					 feasibility account and the management reserve account pursuant to the
					 procedure set forth in Section 7878 except that the application shall contain
					 only that information reasonably required by the Department and relevant to the
					 specific application.
(j) The
					 Agency and Department shall agree that any excess funds returned to or retained
					 by the Agency shall be promptly returned to the Department for deposit in the
					 Agency set-aside.
1.
						Amendment filed 11-13-80 as an emergency; effective upon filing (Register 80,
						No. 46). A Certificate of Compliance must be transmitted to OAL within 120 days
						or emergency language will be repealed on 3-13-81.
2. Certificate of
						Compliance transmitted to OAL 3-13-81 and filed 4-14-81 (Register 81, No.
						16).
Note: Authority cited: Section 50737, Health and Safety
						  Code. Reference: Sections 50739, 50740, Health and Safety
						  Code.