Section 8133 - Legal Documents(a) The department shall enter into a Standard Agreement with each sponsor which shall encumber monies from the Account in an amount sufficient to fund the approved loan amount. The Standard Agreement shall contain the following: (1) a description of the approved project and the permitted uses of program funds;(2) provisions governing the amount and terms of the loan;(3) provisions regarding the regulatory restrictions to be applied to the project through the Regulatory Agreement;(4) provisions governing the construction or rehabilitation work and, as applicable, the acquisition or refinancing of the project site, and the disbursement of loan proceeds;(5) provisions governing the implementation of the job training and placement program pursuant to the requirements of section 8128 and as approved by the department;(6) provisions governing the implementation of the supportive services requirements of section 8127 and as approved by the department during the initial application process;(7) special conditions imposed as part of department approval of the project;(8) requirements for the execution and, the recordation of the agreements and documents required under the program;(9) the approved schedule of the project, including land or building acquisition, if any, commencement and completion of construction or rehabilitation work, and occupancy by eligible households;(10) provisions relating to acquisition or refinancing agreements, bidding and awards to contractors;(11) provisions regarding tenant relocation;(12) bonding and insurance requirements consistent with the requirements of this subchapter;(13) provisions related to a management plan pursuant to section 8137;(14) terms and conditions required by federal or state law;(15) requirements regarding the processing of loan proceeds and requests for funds, and payments thereof;(16) remedies available to the department in the event of a violation, breach, or default of the Standard Agreement, including repayment of all costs of enforcement;(17) other provisions necessary to ensure compliance with the requirements of this program.(b) The department shall enter into a Development Agreement with each sponsor to govern the construction or rehabilitation work of the project and the acquisition or refinancing of the project site, if applicable. The Development Agreement shall be executed prior to the disbursement of funds to the sponsor. The Development Agreement shall contain the following:(1) the approved schedule of the construction or rehabilitation of the project;(2) provisions ensuring that the construction contract is consistent with section 8126 and other program requirements and that all financing agreements are consistent with program requirements;(3) the approved budget for construction or rehabilitation work, land or building acquisition and other project costs, if applicable;(4) provisions relating to the timing, amount, and terms of funds disbursement including any special conditions to funds disbursement imposed by the department;(5) provisions relating to construction or rehabilitation specifications, and disbursement of funds to contractors or others;(6) requirements for reporting to the department;(7) terms and conditions for the inspection and monitoring of the project in order to verify compliance with the Standard Agreement and the Development Agreement;(8) conditions constituting breach of the Development Agreement and remedies available to the parties thereto, including repayment of costs of enforcement;(9) a requirement that the contractor comply with state prevailing wage law, as set forth in Labor Code section 1720 et seq., where program funds are provided as new construction financing; and(10) other provisions necessary to ensure compliance with the requirements of this program.(c) The department shall enter into a Regulatory Agreement with each sponsor for not less than the original term of the loan which shall be recorded against the project property prior to the disbursement of funds. The Regulatory Agreement shall include the following: (1) a description of the rental housing development, including a designation of the number and type of assisted units pursuant to section 8120;(2) standards for tenant selection pursuant to section 8121(a) and provisions regarding recertification of tenant income and the consequences of such recertification pursuant to sections 8121(f) and (g);(3) provisions regulating the terms of the rental agreement pursuant to section 8121(d);(4) provisions related to an annual budget approved by the department pursuant to section 8139;(5) provisions related to a rent schedule, including initial rent levels for assisted units pursuant to section 8122(a) or (b), and nonassisted units;(6) conditions and procedures for permitting rent increases pursuant to section 8122(g) and (h);(7) provisions for limitations on distributions pursuant to section 8123;(8) for community housing developments, provisions regulating the operation of the child care center pursuant to section 8127 (a)(1);(9) provisions regarding the implementation of the job training and placement program pursuant to section 8128(a) and a job training program within the rental housing development pursuant to section 8128(c);(10) for congregate housing developments, provisions regulating the implementation of supportive services pursuant to section 8127(b);(11) for congregate housing developments, provisions requiring the execution of a resident management agreement as described in section 8137(c);(12) provision requiring annual reports, inspections and audits pursuant to section 8138;(13) provisions regarding the withdrawal of funds from project reserve accounts;(14) assurances that sponsor will maintain the rental housing development in a safe and sanitary condition in compliance with state and local housing codes and the management plan pursuant to section 8137;(15) acts or omissions constituting breach of the Regulatory Agreement, including, among others, a breach of the Development Agreement or failure to operate the housing development in accordance with the Regulatory Agreement, and remedies available to the parties thereto;(16) provisions governing use and operation of nonassisted units, common areas, and commercial space to the extent necessary to ensure compliance with program requirements;(17) provisions authorizing enforcement of program requirements by the department and by tenants;(18) special conditions of project operation imposed by the department as conditions of the department's approval of the loan;(19) provisions specifying that the Regulatory Agreement shall be binding on all assigns and successors in interest of the sponsor and that all sales, transfers, and encumbrances of the rental housing development or interests therein shall be subject to section 8135;(20) provisions providing for the continuance of the provisions of the Standard Agreement regarding program compliance for the full term of the Regulatory Agreement;(21) provisions governing the use of operating income pursuant to sections 8117, 8123 and 8139; and(22) other provisions necessary to assure compliance with the requirements of the program.(d) All loans shall be evidenced by a promissory note payable to the department in the principal amount of the loan and stating the terms of the loan consistent with the requirements of the program. The note shall be secured by a deed of trust on the project property naming the department as beneficiary or by other security acceptable to the department; this deed of trust or other security shall be recorded junior only to such liens, encumbrances and other matters of record approved by the department and shall secure the department's financial interest in the project.Cal. Code Regs. Tit. 25, § 8133
1. New section filed 12-14-90 as an emergency; operative 12-14-90 (Register 91, No. 11). A Certificate of Compliance must be transmitted to OAL by 4-15-91 or emergency language will be repealed by operation of law on the following day.
2. Repealed by operation of law on 4-16-91.
3. New section filed 7-19-91 as an emergency; operative 7-19-91 (Register 92, No. 16). A Certificate of Compliance must be transmitted to OAL 11-6-91 or emergency language will be repealed by operation of law on the following day.
4. New section refiled 11-15-91 as an emergency; operative 11-15-91 (Register 92, No. 16). A Certificate of Compliance must be transmitted to OAL 3-16-92 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 11-15-91 order transmitted to OAL 12-12-91 and filed 1-13-92 (Register 92, No. 16). Note: Authority cited: Sections 50406(n), 50884 and 50895, Health and Safety Code. Reference: Sections 50893 and 50893.7, Health and Safety Code.
1. New section filed 12-14-90 as an emergency; operative 12-14-90 (Register 91, No. 11). A Certificate of Compliance must be transmitted to OAL by 4-15-91 or emergency language will be repealed by operation of law on the following day.
2. Repealed by operation of law on 4-16-91.
3. New section filed 7-19-91 as an emergency; operative 7-19-91 (Register 92, No. 16). A Certificate of Compliance must be transmitted to OAL 11-6-91 or emergency language will be repealed by operation of law on the following day.
4. New section refiled 11-15-91 as an emergency; operative 11-15-91 (Register 92, No. 16). A Certificate of Compliance must be transmitted to OAL 3-16-92 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 11-15-91 order transmitted to OAL 12-12-91 and filed 1-13-92 (Register 92, No. 16).