Cal. Code Regs. Tit. 25, § 8085 - Administrative Expenses
(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.
(b)
Administrative expenses do not include those legal, architectural, engineering,
or financial fees which are directly related to the planning and execution of
the project and which are incurred by the sponsor through third-party contracts
eligible for funding pursuant to section 8079(b)(7).
(c) Sponsors seeking program funds for
administrative expenses shall include in their application a statement of
administrative expenses incurred to date, and a budget for anticipated
administrative expenses. The statement and budget shall include sufficient
detail and explanation to permit the department to determine eligibility and
reasonableness of the expenses. The department shall include in the loan amount
those administrative expenses shown in the statement and anticipated budget
provided it determines that those expenses are reasonable and necessary
considering the nature and scope of the project.
(d) Administrative expenses in amounts equal
to or less than the maximum amounts shown in the following schedule shall be
deemed reasonable and necessary upon certification by the sponsor that they
have been incurred.
Approved Program Loan Amount |
Maximum Administrative Expenses |
Up to $500,000 | 5% of the approved program loan amount |
Over $500,000 | $25,000 plus 1% of the approved program loan amount over $500,000, up to a maximum of $50,000 |
(e) The department shall not fund
administrative expenses in excess of 10 percent of the approved loan amount
unless the sponsor can demonstrate to the department's satisfaction that costs
in excess of this limitation are the result of expenses for architectural,
engineering, and legal services, which would otherwise qualify for funding as
consultant services pursuant to section 8079(b)(7).
Notes
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 (c) 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.
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 (c) transmitted to OAL 5-15-91 and filed 6-14-91 (Register 91, No. 38).
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