Cal. Code Regs. Tit. 25, § 7882 - Contracts and Agreements
All developments financed by the Agency shall be governed by contracts and agreements, including but not limited to:
(a) a state contract which shall contain, at a minimum, provisions which:
(1) describe how the assistance under the Program will be used to ensure that each assisted unit will remain available 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) specify the amount, manner, terms, and timing of payments by the Department and the Agency under this contract and the Agency and sponsor under the regulatory agreement or assistance payments contract, as appropriate, so as to ensure the economic feasibility of the rental housing development and to protect the interests of the State,
(3) specify all terms and conditions of the application approval,
(4) specify the requirements for reporting in accordance with Section 7884,
(5) provide that the terms of such agreements, as they affect the assisted units shall be binding upon the successors in interest to the parties thereto,
(6) establish that the terms of repayment of excess funds and rental payments by the Agency to the Department, and
(7) establish the grounds upon which the Agency may reduce the number of assisted units in a rental housing development only if the assistance provided by the Department or Agency 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.
(b) a Management Agreement,
(c) an Assistance Payments Contract which shall set forth terms, conditions, and requirements governing the payment, receipt and use of assistance payment moneys,
(d) a Regulatory Agreement which shall contain, at a minimum, provisions which:
(1) restrict availability and occupancy of assisted units to eligible households, at affordable rents,
(2) specify the number of units and assisted units in the rental housing development and the projected rents for those units, and the manner and conditions under which the ratio of assisted to non-assisted units may be changed,
(3) specify procedures for setting rents and calculating utility allowances consistent with this subchapter,
(4) require payment of prevailing wage rates and hiring of apprentices with respect to construction of the project,
(5) provide for return on investment pursuant to Section7890,
(6) keep the regulatory agreement in effect so long as Agency financing for the housing development remains outstanding, or thirty (30) years, whichever is greater, and to adequately secure such an agreement,
(7) require that the sponsor agree to abide by the directive of the Agency regarding assistance payments where the project, in the Agency's judgment, can operate consistent with the Program with less or no assistance,
(8) require regular reports as required by the Agency,
(9) specify tenant selection and occupancy standards in accordance with the Program,
(10) specify the terms of occupancy agreements,
(11) require that copies of appropriate documents be available in the language(s) commonly used by residents of the area, and
(12) incorporate additional reasonable requirements of the Department or the Agency.
(e) The Department, after Committee approval, may require such additional contracts and agreements between the Department and Agency or the Agency and sponsors as it deems necessary to meet the purposes of the Program or the requirements of the Code.
(f) All agreements and contracts, other than the Interagency Operating Agreement, or one document referencing all other documents, shall be recorded 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 this subchapter for the performance of conditions, including the payment of any money, as specified herein. Recorded agreements shall be indexed in the grantor index to the name of the sponsor and in the grantee index to the State of California.
(g) Any amendment to any agreement or contract which has a material effect on the interests of the Department, must be approved in advance, by the Department. Any amendment to any document approved by the Department pursuant to this subchapter shall be reported at the time reports pursuant to Section 7884 are made.
(h) Prior to their use, any agreement, contract, or other document which effects the interest of the Department, must be approved in form and substance, by the Department. This requirement does not apply to approval of each individual document before execution or use, but only to general review, unless substantive changes or additions are made tot he contract at or before the time of execution. Copies of all loan closing documents shall be provided to the Department.
Note: Authority cited: Section 50737, Health and Safety Code. Reference: Sections 50739, 50745, 50746, 50749, Health and Safety Code.
2. Certificate of Compliance transmitted to OAL 3-13-81 and filed 4-14-81 (Register 81, No. 16).
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