Cal. Code Regs. tit. 25 § 7834

Current through Register 2024 Notice Reg. No. 50, December 13, 2024

Section 7834 - Applications for Annuity Funds

(a) Application for annuity fund payments shall be made on the Department's application form and provide all required information.

(b) When the Department determines that assistance from the development payments account is insufficient to provide affordable rents to eligible households in assisted units, assistance may be authorized from the annuity fund.

(c) Annuity fund loan and grant closing shall be concurrent with development payment(s) loan and grant closing.

(d) Assistance from the annuity fund shall be used for the purpose of reducing rent levels in assisted units so that rents in those units remain affordable to eligible households. Such assistance shall be used to subsidize approved operating costs of the assisted units. "Operating costs" means reasonable and justifiable costs for the following items:

(1) management, including a management fee (which includes all indirect and direct costs of collecting rents and any salary or other payment to an on-site manager), advertising, legal, accounting, and telephone;

(2) operations, including heating and lighting for common areas, water, elevator maintenance, common area maintenance and supplies, garbage and trash removal, payroll and payroll taxes, insurance, janitorial supplies, ground and drives maintenance, exterminating, and office supplies;

(3) maintenance, including decorating and repairs;

(4) vacancy reserve;

(5) replacement reserve;

(6) real estate taxes;

(7) in the case of cooperatives, an occupancy reserve which shall be for the purpose of providing downpayment loans to occupants of assisted units within the cooperative; and

(8) in the case of cooperatives, a surplus payment reserve which shall be for the purpose of reducing carrying charges to a household which initially occupied an assisted unit within the cooperative and whose income exceeds the income limits established by this Program.

(e) Applications for payments from the annuity fund, in addition to other information required by the Department, shall include:

(1) the anticipated amount of assistance, required, based on cost projections provided by the Department, and

(2) a description of how the annuity payments will be used for eligible costs to reduce rents to ensure the affordability of assisted units consistent with the fiscal integrity of the rental housing development.

Cal. Code Regs. Tit. 25, § 7834

1. Amendment filed 11-13-80 as an emergency; effective upon filing (Register 80, No. 46). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 3-13-81.
2. Certificate of Compliance transmitted to OAL 3-13-81 and filed 4-14-81 (Register 81 No. 16).
3. Amendment of subsection (d) filed 10-25-81; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 82, No. 44).

Note: Authority cited: Section 50737, Health and Safety Code. Reference: Sections 50738, 50748, Health and Safety Code.