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 3 - Farmworker Housing Grant Program › Article 2 - Program Requirements › Section 7205.1 - Limited Partnership Eligibility Requirements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) To be eligible to apply for funding, a
					 limited partnership shall demonstrate to the Department's satisfaction that it
					 is controlled by a nonprofit public benefit corporation, limited liability
					 company, or a combination of both. If the limited partnership is controlled by
					 a limited liability company, the limited liability company shall demonstrate to
					 the Department's satisfaction that it is controlled by a nonprofit public
					 benefit corporation.
(b) In making
					 its determination, the Department shall consider the limited partnership
					 agreement, any limited liability company operating agreement, the articles and
					 bylaws of any nonprofit corporation, and any pertinent side agreements between
					 limited and general partners relating to the management and operations of the
					 limited partnership (collectively, "organizational documents").
(c) In order to demonstrate control, a
					 nonprofit corporation or limited liability company must have the authority to
					 perform substantially all of the following functions, as shown in the
					 organizational documents:
(1) Employ and
					 maintain a staff that has the experience and ability to perform the
					 responsibilities and functions of the partnership.
(2) Rent, maintain and repair the rental
					 housing development or, if such duties are delegated to a property management
					 agent, hire and oversee the work of the property management agent.
(3) Hire and oversee the work of all persons
					 necessary to provide services for the management and operation of the limited
					 partnership business.
(4) Execute
					 and enforce all contracts executed by the limited partnership.
(5) Execute and deliver all partnership
					 documents on behalf of the limited partnership.
(6) Prepare or cause to be prepared all
					 reports to be provided to the partners and lenders on a monthly, quarterly, or
					 annual basis consistent with the requirements of the limited partnership
					 agreement.
(7) Coordinate all
					 present and future development, construction, or rehabilitation of the rental
					 housing development that is the subject of the limited partnership
					 agreement.
(8) Monitor compliance
					 with all government regulations and file or supervise the filing of all
					 required documents with government agencies.
(9) Acquire, hold, assign or dispose of
					 partnership property or any interest in partnership property.
(10) Borrow money on behalf of the limited
					 partnership, encumber limited partnership assets, place title in the name of a
					 nominee to obtain financing, prepay in whole or in part, refinance, increase,
					 modify or extend any obligation.
(11) Pay organizational expenses incurred in
					 the creation of the partnership and all operational expenses.
(12) Determine the amount and timing of
					 distributions to partners and establish and maintain all required
					 reserves.