Section 8139 - Operating Budget(a) Prior to loan closing, the sponsor shall provide the department an initial operating budget for its approval. Such budget shall show all anticipated income, expenses for management, operations, and maintenance, debt service and reserve deposits for the initial operating year.(b) Sixty days prior to the end of each current fiscal year of each project the sponsor shall submit to the department for its approval a proposed operating budget, including an accounting of the housing component, supportive service component, and job training and placement program.(1) The proposed operating budget shall set forth the sponsor's estimate of the operating income, operating expenses, and debt service for the upcoming year associated with the housing component, and any proposed rent increases pursuant to section 8122.(2) The proposed operating budget for the supportive service component shall set forth sponsor's estimate of the operating income and expenses for the upcoming year associated with the provision of supportive services.(3) The proposed operating budget for job training and placement programs shall set forth the sponsor's estimate of the operating income and expenses for the upcoming year associated with the provision of such programs.(c) The Department's approval of the initial and subsequent proposed operating budgets shall be based on its determination that the budget line items are reasonable and necessary in light of costs for comparable rental housing developments and prior operating budgets for the rental housing development. Actual expenditures or withdrawals from reserve funds in excess of the approved budget amount shall be subject to prior written approval of the department.(d) The initial operating budget and subsequent proposed operating budgets shall include periodic deposits, on no less than an annual basis, to: (1) a replacement reserve account for capital improvements, such as replacing structural elements, furniture, fixtures, or equipment of the rental housing development, which are reasonably required to preserve the project; and(2) an operating reserve account in an amount sufficient to offset potential shortfalls in operating the housing component and the required supportive services and the job training and placement programs.(e) Upon initial occupancy, the amount in the operating reserve account shall be at least 2 percent of total project development costs and the replacement reserve shall be at least one percent of the total project development costs.(f) For projects with a child care center, nonassisted units, or commercial space, all budgets submitted pursuant to this section shall show income and uses of income allocated among assisted units, nonassisted units, the child care center, and commercial space. The allocation method used for each budget line item shall be subject to department approval and shall apportion income and expenses in a manner that accurately reflects the particular physical, operational and economic characteristics of the project.Cal. Code Regs. Tit. 25, § 8139
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: Section 50893.7(i), 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).