Cal. Code Regs. Tit. 4, § 5060 - Minimum Requirements

(a) Applicants, other than Applicants for a Mortgage Credit Certificate Program, shall provide evidence of a plan to privately place or publicly sell the proposed Bonds with or without Credit Enhancement for an amount no less than the amount requested in the Application. All relevant bond documents for Qualified Residential Rental Projects must permit principal payments or prepayments on the underlying loan(s) as transferred proceeds in a bond preservation and recycling program as permitted by 26 U.S.C. Section 146(i)(6) and shall require no less than thirty (30) days' notice to CDLAC and to the applicant prior to the redemption of bonds at the conversion to permanent financing. Bond sale structures that include a credit rating shall be subject to the following:

(1) Governmental Bond issued with full recourse to, or guaranteed by a general obligation of a governmental entity with taxing authority or Qualified Private Activity Bonds with recourse to the corporate parent entity of the Project Sponsor via a corporate guarantee must have an investment grade credit rating for the Project or the source of the aforementioned guarantee for the Project.

(2) Qualified Private Activity Bonds without a governmental or corporate guarantee shall provide a credit rating specifically for the transaction.

(3) Governmental Bond issues with limited recourse (i.e. lease revenue Bonds, project-specific recourse, or certificates of participation) may provide either a credit rating specifically for the transaction or provide evidence of a current credit rating for an existing outstanding Bond with the same source of debt repayment.

(4) All Bond ratings shall include evidence that the credit rating has been provided within the last six (6) months, or that the current credit rating for outstanding Bond(s) has been substantiated via the most recent updated surveillance review completed by a rating agency within the last thirty six (36) months.

(b) Applicants requesting an award of Allocation for pollution control projects administered by the California Pollution Control Financing Authority (CPCFA) should refer to CPCFA regulations for additional requirements.

(c) Notwithstanding the requirements set forth in article 6 of this chapter, the Committee may apply more stringent requirements and thresholds for a given Project based upon factors such as, but not limited to the size of the Bond issue and/or the specific ratings of the Applicant and/or Project Sponsor.

Notes

Cal. Code Regs. Tit. 4, § 5060

1. New article 6 (sections 5060-5064) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.
2. New article 6 (sections 5060-5064) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.
3. New article 6 (sections 5060-5064) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 4-1-2011 order, including new section heading and repealer and new section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).
5. Amendment of subsection (a)(1) filed 12-1-2017 as an emergency; operative 12-1-2017 (Register 2017, No. 48). A Certificate of Compliance must be transmitted to OAL by 5-30-2018 or emergency language will be repealed by operation of law on the following day.
6. Amendment of subsection (a)(1) refiled 5-25-2018 as an emergency; operative 5-31-2018 (Register 2018, No. 21). A Certificate of Compliance must be transmitted to OAL by 8-29-2018 or emergency language will be repealed by operation of law on the following day.
7. Certificate of Compliance as to 5-25-2018 order transmitted to OAL 8-9-2018 and filed 9-21-2018 (Register 2018, No. 38).
8. Change without regulatory effect amending subsection (b) filed 1-16-2019 pursuant to section 100, title 1, California Code of Regulations (Register 2019, No. 3).
9. Amendment of subsection (a) filed 5-22-2020 as an emergency pursuant to Government Code section 8869.94; operative 5-22-2020 (Register 2020, No. 21). A Certificate of Compliance must be transmitted to OAL by 11-18-2020 or emergency language will be repealed by operation of law on the following day.
10. Emergency filed 5-22-2020 extended 60 days pursuant to Executive Order N-40-20 and an additional 60 days pursuant to Executive Order N-66-20 (Register 2020, No. 21). A Certificate of Compliance must be transmitted to OAL by 3-22-2021 or emergency language will be repealed by operation of law on the following day).
11. Editorial correction of HISTORY 9 and HISTORY 10 (Register 2020, No. 44).
12. Repealer of 5-22-2020 emergency amendments by operation of Government Code section 11346.1(f) (Register 2021, No. 17).
13. Refiling of 5-22-2020 order, including amendment of subsection (a), on 12-3-2021 as an emergency; operative 12-3-2021 (Register 2021, No. 49). A Certificate of Compliance must be transmitted to OAL by 3-3-2022 or emergency language will be repealed by operation of law on the following day.
14. Certificate of Compliance as to 12-3-2021 order transmitted to OAL 4-11-2022 and filed 5-23-2022 (Register 2022, No. 21).

Note: Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

1. New article 6 (sections 5060-5064) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.
2. New article 6 (sections 5060-5064) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.
3. New article 6 (sections 5060-5064) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 4-1-2011 order, including new section heading and repealer and new section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).
5. Amendment of subsection (a)(1) filed 12-1-2017 as an emergency; operative 12-1-2017 (Register 2017, No. 48). A Certificate of Compliance must be transmitted to OAL by 5-30-2018 or emergency language will be repealed by operation of law on the following day.
6. Amendment of subsection (a)(1) refiled 5-25-2018 as an emergency; operative 5/31/2018 (Register 2018, No. 21). A Certificate of Compliance must be transmitted to OAL by 8-29-2018 or emergency language will be repealed by operation of law on the following day.
7. Certificate of Compliance as to 5-25-2018 order transmitted to OAL 8-9-2018 and filed 9/21/2018 (Register 2018, No. 38).
8. Change without regulatory effect amending subsection (b) filed 1-16-2019 pursuant to section 100, title 1, California Code of Regulations (Register 2019, No. 3).
9. Amendment of subsection (a) filed 5-22-2020 as an emergency pursuant to Government Code section 8869.94; operative 5/22/2020 (Register 2020, No. 21). A Certificate of Compliance must be transmitted to OAL by 11-18-2020 or emergency language will be repealed by operation of law on the following day.
10. Emergency filed 5-22-2020 extended 60 days (Executive Order N-40-20) and an additional 60 days pursuant to Executive Order N-66-20 Register 2020, No. 21. A Certificate of Compliance must be transmitted to OAL by 3-22-2021 or emergency language will be repealed by operation of law on the following day.
11. Editorial correction of History 9 and History 10 (Register 2020, No. 44).
12. Repealer of 5-22-2020 emergency amendments by operation of Government Code section 11346.1(f) (Register 2021, No. 17).
13. Refiling of 5-22-2020 order, including amendment of subsection (a), on 12-3-2021 as an emergency; operative 12/3/2021 (Register 2021, No. 49). A Certificate of Compliance must be transmitted to OAL by 3-3-2022 or emergency language will be repealed by operation of law on the following day.
14. Certificate of Compliance as to 12-3-2021 order transmitted to OAL 4-11-2022 and filed 5/23/2022 (Register 2022, No. 21).