Section 7852 - Contract and Agreement Amendments(a) The Department may approve an amendment to the state contract to reflect any change in development funds only: (1) to correct substantial errors by the Department, the Agency, the local finance entity or the local housing authority in the original processing which would otherwise result in serious inequities,(2) to reflect differing costs which result from new requirements imposed by local government, the Department, the Agency, local finance entities, the local housing authority, or federal agencies which are beyond the control of the owner, which have been approved by the Department, and which could not have been anticipated at the time the state contract was executed, or(3) to reflect differing costs which result from a change in contractor which is necessary because the original contractor became bankrupt, was terminated by the sponsor due to inadequate performance or abandoned the job.(b) Amendments pursuant to subdivision (a) will be limited to the amount necessary to cover the specific cost increase associated with the applicable item cited in the request and limited to a pro rata share based on the portion of the difference attributable to the assisted units. The Department shall not authorize a change in funding until such time as the local finance entity or housing authority has approved a proportional adjustment in development costs for the non-assisted units.(c) Amendments of the state contract and regulatory agreement to increase or decrease the amount of annuity fund payments and/or increase or decrease the number of assisted units shall be fully supported by circumstances requiring the adjustment, including the extent to which the cost changes were within the control of the sponsor. Such amendments shall be considered by the Department concurrently.(d) Other amendments of the state contract and regulatory agreement to change any terms of the approved application shall be fully supported by circumstances requiring the amendment.(e) Requests for any amendments permitted by this section shall be submitted to the Department at least three weeks prior to a scheduled meeting of the Committee.Cal. Code Regs. Tit. 25, § 7852
Note: Authority cited: Section 50737, Health and Safety Code. Reference: Sections 50746, 50756, 50759, and 50765, Health and Safety Code.