Section 8082 - Interest Rate and Loan Repayments(a) Loans shall bear simple interest of three percent per annum on the unpaid principal balance. Interest shall accrue from the date that funds are disbursed by the department to or on behalf of the sponsor.(b) Accrued interest shall be payable out of operating income remaining after payment of approved operating expenses, debt service on other loans, reserve deposits, and sponsor distributions. Such interest, to the extent it is available, shall be payable to the department commencing on the last day of the initial operating year and continuing on each anniversary date thereafter until the loan is paid in full.(c) Upon request by the sponsor, at the time of application or any time thereafter, the department shall approve the deferral of accrued interest for such periods and subject to such conditions as are necessary to enable the sponsor to maintain affordable rents, maintain the fiscal integrity of the project and pay allowable distributions pursuant to section 8089.(d) Upon request by the sponsor, the department shall permit payments of a portion of the program loan principal annually following approval of the annual report required pursuant to section 8101, provided that the resulting additional debt service will not jeopardize the fiscal integrity of the project or the sponsor's ability to maintain rents in accordance with program requirements. The department shall approve a schedule for such principal payments at loan closing or any time thereafter, subject to the following: (1) The schedule shall be based on actual or projected net cash flow which shall be calculated by subtracting from operating income the sum of the amounts necessary for project fiscal integrity plus the amount of allowable distributions pursuant to section 8089.(2) The schedule may include provision for incentive payments to the sponsor. Such payments to the sponsor shall be in addition to the sponsor's permitted distribution pursuant to section 8089, and shall be allowed only after payment in full of all interest, including deferred interest, accrued on the program loan. The amount of such payments to the sponsor for a particular year shall not exceed the lesser of (A) the amount of payments applied to the program loan principal for that year; or(B) twice the amount of sponsor distributions allowed pursuant to section 8089(b)(1), where this subdivision is applicable, or twenty-four percent of the sponsor's actual investment in the assisted units, where it is not.(e) Commencing thirty years from the date of the loan, the sponsor shall make annual payments of interest and principal as follows:(1) If the loan term, including any extensions, is fifty years or more, the amount of such payments shall not be less than one-half of net cash flow until the loan is paid in full. Net cash flow shall be calculated as described in subsection (d)(1).(2) If the loan term, including any extensions, is less than fifty years, the amount of such payments shall be the lesser of(A) the full amount of net cash flow, calculated as described in subsection (e)(1); or(B) that amount required to fully amortize the loan during its remaining term.(f) All program loan payments shall be applied first to interest and second to principal.(g) The total amount of the outstanding principal and interest, including deferred interest, shall be due and payable in full to the department at the end of the loan term including any extension granted by the department.(h) Upon request by the sponsor, and providing that any additional resulting debt service will not jeopardize the fiscal integrity of the project or the sponsor's ability to maintain rents in accordance with program requirements, the Department may establish an interest rate for the program loan exceeding three percent.(i) For purposes of this section only, and for projects where distributions from nonassisted units are not limited, in accordance with section 8089(b)(2), operating income shall not include income attributable to nonassisted units or commercial space, and fiscal integrity shall be evaluated without consideration of income or expenses attributed to nonassisted units or commercial space.Cal. Code Regs. Tit. 25, § 8082
1. New section filed 12-29-89 as an emergency; operative 12-29-89 (Register 90, No. 3). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 4-30-90.
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 subsections (c) and (d) transmitted to OAL 5-15-91 and filed 6-14-91 (Register 91, No. 38). Note: Authority cited: Sections 50771.1 and 50771.2, Health and Safety Code. Reference: Sections 50771.1 and 50771.2, Health and Safety Code.
1. New section filed 12-29-89 as an emergency; operative 12-29-89 (Register 90, No. 3). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 4-30-90.
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 subsections (c) and (d) transmitted to OAL 5-15-91 and filed 6-14-91 (Register 91, No. 38).