Section 8140 - Emergency Reserve Subaccount(a) The department shall establish an emergency reserve subaccount in the Account. Three (3) percent of any allocation made to the Account pursuant to Health and Safety Code section 53130(a) shall be deposited into the emergency reserve subaccount. Excess funds returned to the department pursuant to section 8123(h) and 8117(e)(2)(B) shall be deposited into the emergency reserve subaccount to first, replace the allocated funds in the subaccount on a dollar-for-dollar basis and then to replenish the emergency reserve subaccount. Excess funds received which cause the emergency reserve subaccount to exceed three percent of all allocations to the Account shall transfer to the Account and become available for loans pursuant to this subchapter.(b) The department shall maintain a default reserve subaccount, as a portion of the emergency reserve subaccount, in an amount equal to 2 percent of all allocations to the Account pursuant to Health and Safety Code section 53130(a) for the purpose of avoiding or curing defaults pursuant to section 8136(e).(c) When funds in the emergency reserve subaccount exceed the 2 percent required to be maintained pursuant to subdivision (b), the department shall be authorized to advance funds from the emergency reserve subaccount to defray unanticipated cost increases or revenue shortfalls to the extent necessary to preserve fiscal integrity of any project and to maintain rents in accordance with program requirements. All funds so advanced shall be part of the program loan to the sponsor and subject to the same interest rate and terms of repayment.Cal. Code Regs. Tit. 25, § 8140
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 A Certificate of Compliance must be transmitted to OAL by 4-15-91 or emergency language will be repealed by operation of law on the following day.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 Repealed by operation of law on 4-16-91.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 A Certificate of Compliance must be transmitted to OAL 11-6-91 or emergency language will be repealed by operation of law on the following day.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 A Certificate of Compliance must be transmitted to OAL 3-16-92 or emergency language will be repealed by operation of law on the following day.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 50883.5(b) and 53130, 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).