reglab/statecodes huggingface dataset:
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 14 - California Housing Rehabilitation Program for Owner-Occupied Housing › Article 2 - Program Requirements › Section 8042 - Eligible Applicant

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) In order to be certified as eligible for
					 funding, an applicant shall demonstrate to the department's satisfaction that
					 it possesses:
(1) the capability to develop,
					 implement, and operate an owner-occupied housing rehabilitation program;
					 and
(2) a knowledge of the
					 rehabilitation needs of properties, as defined for use by this program, in its
					 area of service.
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 14 - California Housing Rehabilitation Program for Owner-Occupied Housing › Article 2 - Program Requirements › Section 8043 - Eligible Borrower

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An eligible borrower shall:
(a) be a lower-income household;
(b) own and occupy as a principal residence
					 the property which is to be rehabilitated; and
(c) not previously have received a deferred
					 payment loan from the account.
1. New
						section filed 11-30-89 as an emergency; operative 11-30-89 (Register 89, No.
						49). A Certificate of Compliance must be transmitted to OAL within 120 days or
						emergency language will be repealed by operation of law on
						3-30-90.
2. New section refiled 3-26-90 as an emergency; operative
						3-30-90 (Register 90, No. 16). A Certificate of Compliance must be transmitted
						to OAL within 120 days or emergency language will be repealed by operation of
						law on 7-30-90.
3. New section filed 7-26-90 as an emergency;
						operative 7-26-90 (Register 90, No. 38). A Certificate of Compliance must be
						transmitted to OAL by 11-23-90 or emergency language will be repealed by
						operation of law on the following day.
4. Amendment of subsection
						(a) filed 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						language will be repealed by operation of law on the following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.
5. New section refiled 11-16-90 as an emergency; operative
						11-16-90 (Register 90, No. 51). A Certificate of Compliance must be transmitted
						to OAL by 3-18-91 or emergency language will be repealed by operation of law on
						the following day.
6. Readoption of 8-27-90 order filed 12-21-90 as
						an emergency; operative 12-21-90 (Register 91, No. 7). A Certificate of
						Compliance must be transmitted to OAL by 4-22-91 or emergency language will be
						repealed by operation of law on the following day.
7. Certificate of
						Compliance as to 11-30-89 order, readopted and operative on 3-30-90, 7-26-90
						and 11-16-90, including amendment of subsection (c) transmitted to OAL 11-30-90
						and filed 12-31-90 (Register 91, No. 7).
Note: Authority cited: Section 50668.5(g), Health and
						  Safety Code. Reference: Sections 50660, 50668.5 and 50668.5(b), Health and
						  Safety Code.
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 14 - California Housing Rehabilitation Program for Owner-Occupied Housing › Article 2 - Program Requirements › Section 8044 - Eligible Use of Funds

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 Proceeds from the account for deferred payment loans to borrowers may be used
					 only for eligible costs that are incurred in the rehabilitation of the property
					 as set forth in this section. In addition, eligible costs must be necessary and
					 consistent with the lowest reasonable cost in the area. In addition to eligible
					 costs set forth in statute, eligible costs include, but are not limited to, the
					 following:
(1) costs of rehabilitation of the
					 property;
(2) costs of room
					 additions when other rehabilitation work is being performed;
(3) costs of improvements necessary to ensure
					 accessibility of the property to physically handicapped borrowers or dependents
					 occupying the property, when other rehabilitation work is being
					 performed;
(4) costs of
					 improvements required to correct unsafe, unhealthy, or unsanitary conditions,
					 including general property improvements when such improvements are necessary or
					 integral to the rehabilitation work;
(5) costs incurred in originating the loan
					 including the following:
(A) title
					 insurance;
(B) credit
					 reports;
(C) appraisal
					 reports;
(D) first year insurance
					 premiums;
(E) recording fees;
					 and
(F) property tax and title
					 monitoring service fees.
(6) costs of building permits and other
					 related government fees; and
(7)
					 costs of architectural, engineering, and other consultant services which are
					 directly related to the rehabilitation of the property, which may include the
					 costs of an environmental assessment if such an assessment is required as a
					 condition of the loan by the department.
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 14 - California Housing Rehabilitation Program for Owner-Occupied Housing › Article 2 - Program Requirements › Section 8045 - Local Program Administration

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The local entity shall implement the
					 local program and be responsible for the following activities:
(1) marketing the local program in a manner
					 which ensures that the goals and timeframes stated in the Standard Agreement
					 pursuant to section 8056(a) are met;
(2) originating, packaging, and closing
					 deferred payment loans in accordance with program requirements;
(3) approval of deferred payment loans upon
					 certification by the department pursuant to section 8057(f);
(4) completing the construction requirements
					 specified pursuant to section 8046;
(5) disbursing funds on behalf of borrowers
					 during construction;
(6)
					 maintaining complete and accurate records of all deferred payment loan
					 disbursements and administrative grant expenditures to ensure adherence to
					 proper accounting procedures for the deferred payment loan and administrative
					 grant funds, which may be verified by the department and may be subject to a
					 fiscal audit;
(7) complying with
					 reporting requirements pursuant to section 8060; and
(8) meeting all other local entity
					 requirements set forth in this subchapter.
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 14 - California Housing Rehabilitation Program for Owner-Occupied Housing › Article 2 - Program Requirements › Section 8046 - Construction Requirements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The local entity shall determine the
					 rehabilitation work to be performed on the property by conducting an initial
					 property inspection. Upon such inspection, the local entity shall:
(1) prepare a work write-up which accurately
					 describes the existing conditions and the necessary repairs and improvements
					 consistent with the rehabilitation standards adopted by the local entity and
					 approved by the department. The work write-up shall indicate which items are
					 code violations, incipient code violations, handicapped accessibility
					 improvements, and general property improvements; and
(2) prepare a cost estimate for the
					 rehabilitation work, building permits, government fees and the costs of
					 architectural and engineering services directly related to the rehabilitation
					 work.
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 14 - California Housing Rehabilitation Program for Owner-Occupied Housing › Article 3 - Deferred Payment Loan Requirements › Section 8047 - Term of Loan

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The
					 initial loan term of a deferred payment loan to non-elderly borrowers shall be
					 five years. In the case of elderly borrowers, deferred payment loans shall be
					 due upon transfer of title to the property. Deferred payment loans to both
					 elderly and non-elderly borrowers shall be due and payable if the borrower no
					 longer occupies the property as his or her principal residence for reasons
					 other than medical treatment or disability which require a temporary alternate
					 residence.
(b) The department shall
					 allow additional five-year terms to a non-elderly borrower, based on provided
					 evidence which demonstrates that:
(1) the
					 title to the property has not been sold or transferred except to the borrower's
					 spouse or assumed by an eligible borrower as allowed in section 8051(a) and
					 (d);
(2) the borrower continues to
					 occupy the property as a principal residence; and
(3) the borrower's income is such that the
					 deferred payment loan could not be repaid by refinancing from other sources
					 without the borrower exceeding the ability to afford his or her housing costs.
					 Such evidence may include income verifications and written rejections of
					 refinancing applications from lending institutions which provide the reasons
					 for rejection.
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 14 - California Housing Rehabilitation Program for Owner-Occupied Housing › Article 3 - Deferred Payment Loan Requirements › Section 8048 - Maximum Loan Amounts

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 The maximum amount of a deferred payment loan to a borrower shall be as
					 follows:
(1) $20,000; or
(2) $30,000, when the rehabilitation involves
					 one or more room additions, except that the total cost of room additions shall
					 not exceed $10,000.
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 14 - California Housing Rehabilitation Program for Owner-Occupied Housing › Article 3 - Deferred Payment Loan Requirements › Section 8049 - Interest Rate and Loan Repayments

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Deferred payment loans shall bear simple
					 interest of three percent per annum on the unpaid principal balance. Interest
					 shall accrue on the deferred payment loan from the date on which the
					 construction is completed and shall continue to accrue at such a rate until the
					 deferred payment loan principal and interest are paid in full.
(b) The total amount of outstanding principal
					 and interest shall be due and payable in full at the end of the loan term. A
					 borrower may repay the entire deferred payment loan amount at any time without
					 penalty.
(c) Upon request by the
					 borrower, the department may approve a voluntary prepayment plan, either at
					 loan closing or any time thereafter. The plan may allow for the periodic
					 payment of interest, or principal and interest, prior to the end of the loan
					 term, unless the administration and processing of such prepayments would exceed
					 the department's processing cost. At the request of the borrower, the plan may
					 be revised or cancelled without penalty.
(d) If the deferred payment loan is extended
					 by the department pursuant to section 8047(b), the borrower shall be required
					 to make amortized payments of interest, or principal and interest to the extent
					 that:
(1) amortized payments when combined
					 with other housing payments may equal, but not exceed the borrower's ability to
					 afford his or her housing costs; or
(2) the administration and processing of such
					 payments would not exceed the department's processing cost.
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 14 - California Housing Rehabilitation Program for Owner-Occupied Housing › Article 3 - Deferred Payment Loan Requirements › Section 8050 - Loan-to-Value Limits

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 The loan-to-value ratio of a deferred payment loan shall not exceed 90 percent
					 of the value of the borrower's property calculated as follows:
(1) The loan-to-value ratio shall be
					 calculated using:
(a) the County Tax
					 Assessor's current valuation of the property and
(b) all indebtedness which will be senior to
					 the deferred payment loan after the rehabilitation, plus the proposed deferred
					 payment loan (hereinafter referred to as the "total indebtedness"). If the
					 loan-to-value ratio exceeds 90 percent, then the loan-to-value ratio shall be
					 calculated as set forth in (2) below.
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 14 - California Housing Rehabilitation Program for Owner-Occupied Housing › Article 3 - Deferred Payment Loan Requirements › Section 8052 - Defaults on Borrower Loans

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) If a borrower or successor-in-interest
					 breaches or violates any provision of (1) the loan agreement entered into
					 pursuant to section 8056 (b), (2) the promissory note, (3) the deed of trust,
					 (4) any other agreement pertaining to the deferred payment loan, or (5) these
					 regulations, the department shall give written notice to the borrower to cure
					 the breach or violation within a period of not less than 30 days from such
					 notice. If the breach or violation is not cured to the satisfaction of the
					 department within the specified time period, the department, at its option, may
					 declare a default under the relevant document and seek legal remedies for the
					 default which shall include the following:
(1) The department shall accelerate all
					 amounts, including outstanding principal and interest, due under the deferred
					 payment loan and demand immediate repayment. Upon a failure to repay such
					 accelerated amount in full, the department shall proceed with a foreclosure in
					 accordance with the provisions of the deed of trust; or
(2) The department may seek such other
					 remedies as may be available under the relevant agreement or any
					 law.
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 14 - California Housing Rehabilitation Program for Owner-Occupied Housing › Article 4 - Application for Funding Procedures › Section 8053 - Application Process

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 The department shall issue a Notice of Funding Availability (NOFA) which
					 specifies the total amount of funds available under the NOFA, the application
					 requirements, the allocation of rating points, and the general terms and
					 conditions of funding commitments. Applications in response to each NOFA will
					 be accepted on a continuous basis and ranked at least quarterly.
(b) The maximum amount of funds available to
					 a local entity under each NOFA shall be specified in the NOFA.
(c) The department shall process an
					 application in accordance with the following schedule:
(1) Within 30 calendar days of receipt of an
					 application, the department shall provide the applicant with written notice as
					 to whether the application is complete pursuant to section 8054. If the
					 application is not complete, the notice shall specify the information or
					 documentation necessary to complete the application.
(2) Within 45 calendar days of notification
					 that the application is complete, the department shall provide the applicant
					 with written notice whether the application has qualified to be rated pursuant
					 to section 8055 (c). If the application does not qualify for rating, the notice
					 shall provide an explanation of the reasons for disqualification.
(3) Within 45 calendar days of providing
					 notice that an application qualifies for rating, the department shall provide
					 the local entity with written notice whether an application will be considered
					 for funding and, if considered for funding, the scheduled date for that
					 consideration. If an application is not considered for funding, the local
					 entity shall be notified in writing, including an explanation of the rating and
					 the reasons for denial.
(4) Within
					 10 working days after a local program has been considered for funding, the
					 department shall provide the local entity with written notification of the
					 decision. Local programs selected for funding shall be approved at loan
					 amounts, terms and conditions specified by the department.
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 14 - California Housing Rehabilitation Program for Owner-Occupied Housing › Article 4 - Application for Funding Procedures › Section 8055 - Local Program Selection

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Local programs shall not be considered
					 for funding unless the application demonstrates that all of the following
					 conditions exist:
(1) the applicant is
					 eligible pursuant to section 8042;
(2) all proposed uses of program funds are
					 eligible pursuant to section 8044(a) and (b);
(3) the application is complete pursuant to
					 section 8054(c); and
(4) the total
					 amount of funds requested does not exceed the local program funding limit which
					 is stated in the NOFA pursuant to section 8053(b).
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 14 - California Housing Rehabilitation Program for Owner-Occupied Housing › Article 5 - Program Operations › Section 8059 - Disbursement of Administrative Grants

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Administrative grants will be paid upon
					 request by the local entity in two installments: 50 percent payable at deferred
					 payment loan recordation and 50 percent payable upon receipt by the department
					 of the deferred payment loan file pursuant to Section 8057(h). The final
					 administrative grant payment will be contingent upon the department's
					 determination that the deferred payment loan file is complete and
					 accurate.
(b) Requests for
					 administrative grant funds shall be on Form HCD O-003, California Housing
					 Rehabilitation Program for Owner-Occupied Housing (CHRP-O), Request for Funds,
					 dated 8/90, as set forth in section 8058(c). This Request for Funds form is
					 provided by the department.
1. New
						section filed 11-30-89 as an emergency; operative 11-30-89 (Register 89, No.
						49). A Certificate of Compliance must be transmitted to OAL within 120 days or
						emergency language will be repealed by operation of law on
						3-30-90.
2. New section refiled 3-26-90 as an emergency; operative
						3-30-90 (Register 90, No. 16). A Certificate of Compliance must be transmitted
						to OAL within 120 days or emergency language will be repealed by operation of
						law on 7-30-90.
3. New section filed 7-26-90 as an emergency;
						operative 7-26-90 (Register 90, No. 38). A Certificate of Compliance must be
						transmitted to OAL by 11-23-90 or emergency language will be repealed by
						operation of law on the following day.
4. Amendment of subsection
						(a) filed 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.
5. New section refiled 11-16-90 as an emergency; operative
						11-16-90 (Register 90, No. 51). A Certificate of Compliance must be transmitted
						to OAL by 3-18-91 or emergency language will be repealed by operation of law on
						the following day.
6. Readoption of 8-27-90 order filed 12-21-90 as
						an emergency; operative 12-21-90 (Register 91, No. 7). A Certificate of
						Compliance must be transmitted to OAL by 4-22-91 or emergency language will be
						repealed by operation of law on the following day.
7. Certificate of
						Compliance as to 11-30-89 order, readopted and operative on 3-30-90, 7-26-90
						and 11-16-90, including amendment of subsection (b) transmitted to OAL 11-30-90
						and filed 12-31-90 (Register 91, No. 7).
Note: Authority cited: Section 50668.5(g), Health and
						  Safety Code. Reference: Section 50661(a), Health and Safety
						  Code.
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 14 - California Housing Rehabilitation Program for Owner-Occupied Housing › Article 5 - Program Operations › Section 8061 - Cancellation and Termination

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Commitments from the account to local
					 entities shall be cancelled and Standard Agreements shall be terminated by the
					 department under any one of the following conditions:
(1) local program operations are not in
					 compliance with the program or the Standard Agreement;
(2) implementation of the local program is
					 not in compliance with the timeframes and goals stated in the local entity's
					 application and Standard Agreement; or
(3) special conditions for funding as stated
					 in the Standard Agreement have not been fulfilled.
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 1 - General › Section 8075 - Purpose and Scope

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 This subchapter establishes the Proposition 84 Rental Housing Construction
					 Program and implements and interprets chapter 9 (commencing with section 50735)
					 of part 2 of division 31, Health and Safety Code, as amended by chapter 30 of
					 the Statutes of 1988 and chapter 1103 of the Statutes of 1989.
(b) These regulations establish procedures
					 for the award and disbursement of loans and establish policies and procedures
					 for use of funds allocated to the Rental Housing Construction Program by
					 sections 53130(a)(1) and 53130(b)(1) of the Health and Safety Code.
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 (a) transmitted to OAL
						5-15-91 and filed 6-14-91 (Register 91, No. 38).
8. Editorial
						correction of printing error in HISTORY 7 amending section to read subsection
						(Register 91, No. 46).
Note: Authority cited: Section 50771.1, Health and
						  Safety Code. Reference: Sections 33007.5, 50010, 50079.5, 50735, 50736, 50766,
						  50771.1, 50771.2, 50894, 53130 and 53133, Health and Safety Code. Sections
						  7260, 7261, 7262, 7264, 7264.5, 7269, 7269.1, 7272 and 7272.3, Government
						  Code.
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 2 - Program Requirements › Section 8077 - Eligible Project

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) To
					 be eligible for funding, a proposed project must involve the development and
					 construction of a new rental housing development.
(b) Except as specified in subdivision (c),
					 proposed projects are ineligible if construction work, excluding:
(1) site improvements intended for public
					 dedication,
(2)
					 demolition,
(3) site preparation,
					 and
(4) grading, has begun prior to
					 the date that the department awards a commitment of program
					 funds.
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 2 - Program Requirements › Section 8078 - Eligible Sponsor

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A
					 sponsor shall be any individual, joint venture, partnership, limited
					 partnership, trust, corporation, limited equity housing cooperative, local
					 public entity, duly constituted governing body of an Indian reservation or
					 rancheria, or other legal entity, or any combination thereof which is certified
					 by the department as meeting the requirements of subdivision (c).
(b) A sponsor shall be organized on a
					 for-profit, including limited profit, or nonprofit basis.
(c) In order to be certified as eligible for
					 funding, an applicant must be a sponsor who must:
(1) demonstrate ability or experience
					 relevant to owning, developing, constructing, and operating rental housing
					 through any of the following:
(A) prior
					 ownership, development, construction and operation of rental housing;
(B) employment of a staff with demonstrated
					 ability or experience owning, developing, constructing and operating rental
					 housing; or
(C) contracting with a
					 consultant or consultants with demonstrated ability or experience assisting
					 with the owning, development, construction and operation of rental housing;
					 and
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 2 - Program Requirements › Section 8079 - Eligible Uses of Funds

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 Funds shall be used only for approved eligible costs that are incurred on the
					 project as set forth in this section. In addition, the costs must be necessary
					 and must be consistent with the lowest reasonable cost consistent with the
					 project's scope and area.
(b)
					 Eligible categories of costs include the following:
(1) land acquisition;
(2) acquisition of projects under
					 construction satisfying the requirements of section 8077(c);
(3) land lease payments;
(4) construction work;
(5) offsite improvements, such as sewers,
					 utilities and streets, related to the rental housing development;
(6) onsite improvements related to the rental
					 housing development;
(7)
					 architectural, appraisal, engineering, legal and other consulting costs and
					 fees, which are directly related to the planning and execution of the project
					 and which are incurred through third-party contracts;
(8) administrative expenses pursuant to
					 section 8085;
(9) rent-up
					 costs;
(10) carrying costs during
					 construction, including insurance, construction financing fees and interest,
					 taxes, and any other expenses necessary to hold the property while the rental
					 housing development is under construction;
(11) building permits and state and local
					 fees;
(12) initial operating
					 reserve balances required pursuant to section 8102;
(13) escrow, title insurance, recording and
					 other related costs;
(14) costs for
					 items intended to assure the completion of construction, such as contractor
					 bond premiums; and
(15)
					 environmental hazard reports, surveys, and investigations.
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 2 - Program Requirements › Section 8080 - Type and Term of Loan

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 Sponsors shall elect to receive program financing as either combination
					 construction and permanent loans or permanent loans only.
(b) The initial term of the loan shall be 40
					 years, commencing on the date of initial occupancy of an assisted
					 unit.
(c) Upon request by the
					 sponsor, the department shall approve an initial loan term longer than that set
					 forth in subdivision (b) provided that such longer term does not exceed the
					 useful life of the rental housing development as determined by the department
					 utilizing assessments provided by professionals from the construction and real
					 estate industries, such as the conclusions of an appraiser or a structural
					 engineer.
(d) Upon request by the
					 sponsor, the department may approve a ten-year extension of the loan term if
					 the department determines both of the following are met:
(1) The sponsor is in compliance with the
					 Regulatory Agreement and agrees to continue to comply during the extended term;
					 and
(2) The extension is necessary
					 to continue operations consistent with program
					 requirements.
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 2 - Program Requirements › Section 8081 - Maximum Loan Amounts

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The loan amount is limited to the total amount of
						eligible costs required, when considered with other available financing and
						assistance, in order to achieve all of the following:
(a) to enable the development and
					 construction of the rental housing development;
(b) to ensure that rents for assisted units
					 are in accordance with program requirements;
(c) to operate in compliance with all other
					 program requirements; and
(d) to
					 allow a debt service coverage ratio in an amount sufficient to satisfy the
					 requirements of other lenders providing financing for the rental housing
					 development, but not to exceed 115 percent.
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 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: Section 50771.1, Health and Safety
						  Code.
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 2 - Program Requirements › Section 8082 - Interest Rate and Loan Repayments

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Loans shall bear simple interest of three
					 percent per annum on the unpaid principal balance. Interest shall accrue from
					 the date that funds are disbursed by the department to or on behalf of the
					 sponsor.
(b) Accrued interest shall
					 be payable out of operating income remaining after payment of approved
					 operating expenses, debt service on other loans, reserve deposits, and sponsor
					 distributions. Such interest, to the extent it is available, shall be payable
					 to the department commencing on the last day of the initial operating year and
					 continuing on each anniversary date thereafter until the loan is paid in
					 full.
(c) Upon request by the
					 sponsor, at the time of application or any time thereafter, the department
					 shall approve the deferral of accrued interest for such periods and subject to
					 such conditions as are necessary to enable the sponsor to maintain affordable
					 rents, maintain the fiscal integrity of the project and pay allowable
					 distributions pursuant to section 8089.
(d) Upon request by the sponsor, the
					 department shall permit payments of a portion of the program loan principal
					 annually following approval of the annual report required pursuant to section
					 8101, provided that the resulting additional debt service will not jeopardize
					 the fiscal integrity of the project or the sponsor's ability to maintain rents
					 in accordance with program requirements. The department shall approve a
					 schedule for such principal payments at loan closing or any time thereafter,
					 subject to the following:
(1) The schedule
					 shall be based on actual or projected net cash flow which shall be calculated
					 by subtracting from operating income the sum of the amounts necessary for
					 project fiscal integrity plus the amount of allowable distributions pursuant to
					 section 8089.
(2) The schedule may
					 include provision for incentive payments to the sponsor. Such payments to the
					 sponsor shall be in addition to the sponsor's permitted distribution pursuant
					 to section 8089, and shall be allowed only after payment in full of all
					 interest, including deferred interest, accrued on the program loan. The amount
					 of such payments to the sponsor for a particular year shall not exceed the
					 lesser of
(A) the amount of payments applied
					 to the program loan principal for that year; or
(B) twice the amount of sponsor distributions
					 allowed pursuant to section 8089(b)(1), where this subdivision is applicable,
					 or twenty-four percent of the sponsor's actual investment in the assisted
					 units, where it is not.
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 2 - Program Requirements › Section 8083 - Appraisal and Market Study Requirements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) As a condition of funding, the department
					 shall require an appraisal or market study, or both, where required to achieve
					 the following objectives:
(1) To establish a
					 market value for the land to be purchased or leased as part of the project for
					 purposes of evaluating the reasonableness of the purchase price or lease terms
					 pursuant to section 8079 and determining sponsor equity pursuant to section
					 8084.
(2) To assist with
					 establishing reasonable costs for other development cost categories pursuant to
					 section 8079.
(3) To assess fiscal
					 integrity.
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 2 - Program Requirements › Section 8084 - Minimum Equity Requirements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Sponsors of projects where more than 80
					 percent of all units are assisted units must provide equity in an amount not
					 less than ten percent of total development costs, excluding costs of
					 syndication. Sponsors of other projects shall not be subject to any minimum
					 equity requirement.
(b) Equity, for
					 purposes of this subdivision, includes cash and land, whether contributed by
					 the sponsor from its own resources or granted to the sponsor by another party.
					 Equity also includes other items of monetary value contributed by the sponsor
					 and applied towards project costs, including
(1) personal property;
(2) the capitalized value of any exemption
					 from local taxes on real property. The amount of the exemption shall be
					 established by the department prior to loan closing based on its estimate of
					 the probable assessed value of the rental housing development and its
					 interpretation of state law governing eligibility for exemptions, as set forth
					 in Revenue and Taxation Code section 214, et seq.; and
(3) the value of any administrative expenses
					 not funded by the program, but which would have been eligible for funding
					 pursuant to section 8085(d).
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 2 - Program Requirements › Section 8085 - Administrative Expenses

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 Administrative expenses are those expenses incurred by the sponsor related to
					 the planning and execution of the project prior to initial occupancy. Such
					 expenses include, but are not limited to the following:
(1) salaries, wages, and related costs of the
					 sponsor's staff engaged in the planning and execution of the project, including
					 general legal services, accounting and auditing relating to the sponsor's
					 operations, and financial packaging;
(2) travel costs and other general overhead
					 costs which are attributable to the project;
(3) expenses for sponsor's administrative
					 services performed and paid for under third-party
					 contracts.
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 2 - Program Requirements › Section 8086 - Occupancy Requirements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) In each rental housing development
					 assisted by the program, and for the full term of the program loan, the
					 following requirements shall apply:
(1) Not
					 less than thirty percent of all units shall be assisted units.
(2) Not less than two-thirds of the assisted
					 units shall be very low-income units.
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 2 - Program Requirements › Section 8089 - Limits on Distribution

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A nonprofit corporation shall be limited
					 to an annual distribution on the sponsor's actual investment in the entire
					 project in an amount not to exceed eight percent per annum.
(b) A for-profit sponsor shall elect, prior
					 to loan closing, to be limited in accordance with one of the following options:
(1) The sponsor shall be limited to an annual
					 distribution on the sponsor's actual investment in the entire project in an
					 amount not to exceed eight percent per annum; or
(2) The sponsor shall receive no distribution
					 from assisted units, and shall not be subject to any limitations on the amount
					 of the distribution it receives from nonassisted units.
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 2 - Program Requirements › Section 8092 - Construction Requirements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The department shall review and
					 underwrite project plans and specifications to ensure the following objectives:
(1) The rental housing development shall have
					 a minimum useful life at least equal to term of the loan;
(2) Maintenance, repair, and replacement
					 costs shall be minimized during the useful life of the rental housing
					 development through use of durable, low maintenance materials and equipment and
					 design features that minimize wear and tear.
(3) Operating costs shall be minimized during
					 the useful life of the rental housing development.
(4) Tenant security shall be enhanced through
					 features such as those designed to prevent or discourage unauthorized access
					 and to allow for ready monitoring of public areas.
(5) Unit sizes, amenities, and general design
					 features shall not exceed the standard for new developments rented at or below
					 the market rent in the area of the project, and unit density shall not be
					 substantially less than the average for new developments with such
					 units.
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 3 - Application Procedures › Section 8093 - Application Process

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 The department shall issue a Notice of Funding Availability (NOFA) which
					 specifies the schedule for rating and ranking applications and awarding funds
					 every two months, the amount of funds available in each bimonthly cycle,
					 application requirements, the allocation of rating points, and the general
					 terms and conditions of funding commitments. Applications in response to each
					 NOFA will be accepted on a continuous basis.
(b) Within 45 days of the receipt of an
					 application, the department shall provide the applicant with written notice
					 indicating whether the application is complete pursuant to section 8094 and
					 eligible for rating and ranking pursuant to section 8095(a).
(1) If the application is not complete, but
					 has not been determined to be ineligible for rating and ranking, the notice
					 shall specify the information or documentation necessary to complete the
					 application. Within 15 days of the receipt of any additional information or
					 documentation from the applicant, the department shall provide the applicant
					 with written notice indicating whether the additional information or
					 documentation is sufficient to determine that the application is
					 complete.
(2) If the application is
					 not eligible for rating and ranking, the notice shall provide an explanation of
					 the reasons for this determination.
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 3 - Application Procedures › Section 8095 - Project Selection

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Projects shall not be eligible for rating
					 and ranking unless the application demonstrates that all of the following
					 conditions exist:
(1) The applicant is an
					 eligible sponsor pursuant to section 8078;
(2) The project involves an eligible project
					 pursuant to section 8077;
(3) All
					 proposed uses of program funds are eligible pursuant to section 8079;
(4) The application is complete pursuant to
					 section 8094;
(5) The project will
					 maintain fiscal integrity consistent with affordable rents in the assisted
					 units.
(6) The project site is free
					 from severe adverse environmental conditions, such as the presence of toxic
					 waste that is economically infeasible to remove, that cannot be mitigated and
					 is reasonably accessible to public transportation, shopping, medical services,
					 recreation, schools, and employment in relation to the needs of the project
					 tenants.
(7) In projects targeting
					 households in need of any direct or supportive tenant services, the project
					 provides those services suitable to the needs of the
					 tenants.