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 3 - Development Standards › Section 7822 - Contracts and Agreements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) All assistance provided by the Department
					 shall be governed by contracts binding all applicants and sponsors in
					 accordance with this section, except that assistance through the Agency shall
					 be governed by an Interagency Agreement pursuant to Article 6, and the Agency's
					 sponsors by Section 7882.
(b)
					 Assistance to local finance entities under the sponsor development component
					 shall be governed by a state contract between the Department and the local
					 finance entity and by a development agreement and a regulatory agreement
					 between the local finance entity and the sponsor.
(c) Assistance to local housing authorities
					 under the rights of occupancy component shall be governed by a state contract
					 between the Department and the local housing authority and by a regulatory
					 agreement between the local and housing authority and the sponsor.
(d) Assistance to local housing authorities
					 under the housing authority component shall be governed by a state contract, a
					 development agreement and a regulatory agreement between the Department and the
					 local housing authority. The terms of the contract and the agreements may be
					 incorporated in a single document if the Department so requires.
(e) Provisions and requirements relating to
					 assistance under the annuity trust fund shall be incorporated into the state
					 contract and regulatory agreement governing assistance under the appropriate
					 main component.
(f) Provisions and
					 requirements relating to assistance under the management reserve account and
					 the feasibility account may be incorporated by way of amendment into the state
					 contract and regulatory agreement governing assistance under the appropriate
					 main component.
(g) The Department
					 may require such additional contracts and agreements between the Department,
					 applicants and sponsors as it deems necessary to meet the purposes of the
					 Program.
(h) All state contracts
					 other than the Interagency Operational Agreement and all regulatory agreements
					 shall be recorded or referenced in a recorded document in the office of the
					 county recorder in the county in which the rental housing development to which
					 they relate is located. When so recorded, they shall constitute a lien on the
					 rental housing development in accordance with Section 7818 for the performance
					 of conditions, including the payment of any money, specified therein. Recorded
					 state contracts shall be indexed in the grantor index to the name of the
					 sponsor and in the grantee index to the State of California. Recorded
					 regulatory agreements shall be indexed in the grantor index to the name of the
					 sponsor and in the grantee index to the name of the applicant.
(i) All state contracts and regulatory or
					 development agreements shall contain such provisions as the Department
					 considers necessary to meet the purposes of the Program, including but not
					 limited to:
(1) a description of how the
					 assistance under the Program will be used to ensure that each assisted unit
					 will remain available on a priority basis to or occupied by eligible households
					 for a period of not less than thirty (30) years or the term of the below market
					 interest financing, if any, whichever is greater.
(2) specification of the amount, manner,
					 terms and timing of payments, including annuity fund payments, by the
					 Department and the applicant under state contracts and regulatory agreements,
					 respectively, so as to ensure the economic feasibility of the rental housing
					 development and to protect the interests of the State.
(3) requirements for reporting in accordance
					 with Section 7850.
(4) a provision
					 that the covenants and conditions of such contracts and agreements shall be
					 binding upon the successors in interest to the parties thereto,
(5) a provision requiring that the local
					 finance entity and sponsor agree to abide by the directives of the Department
					 with respect to excess annuity fund payments and/or excess rent receipts when
					 incoming from assisted units and/or annuity fund payments are greater than
					 approved operating costs and when, in the Department's judgment, the assisted
					 units can operate with less rent receipts and/or annuity fund payments,
					 and
(6) a provision stating that
					 the Department and the local finance entity, by mutual agreement, may reduce
					 the number of assisted units in a rental housing development only if the
					 annuity fund cannot provide adequate assistance to maintain the development's
					 fiscal integrity. Any such reduction shall be reviewed no less often than
					 annually as to its continued necessity.