Section 7104 - Program Income(a) "Program Income" means gross income earned by the grantee from grant-funded activities as defined in 24 CFR Section 570.489(e).(b) Grantees shall account for and disburse program income related to projects financed in whole or in part with grant funds pursuant to 24 CFR Section 570.489(e).(c) Grantees shall account for disbursement of program income annually or more frequently as required by the Department for cause.(d) If CDBG local program income will be used to operate a program such as: housing rehabilitation, homeownership assistance, business financial assistance and micro enterprise financial assistance, the applicant shall submit program guidelines to the Department for approval. No CDBG grant funds or local program income shall be expended to operate a program until the Department has approved the program guidelines in writing.(A) The program guidelines shall describe how the program will be operated and how it will comply with State and federal regulations. In addition, program guidelines shall address the following topics:1. Financing terms and interest rates;2. Underwriting standards;3. Application processing procedures and timing for loan approvals;4. Procedures for resolving disputes between the participant and the CDBG grantee;5. Description of any property restrictions imposed as a condition of receiving the loan (e.g., resale controls, equity sharing);6. Loan servicing policies addressing the issues of: subordination; refinancing; change in occupancy, change in use, assumptions, and verification of payment of taxes and insurance.7. If the program will involve rehabilitation or construction, procedures for developing the scope of work, description of the contractor procurement and payment process, and a description of the conflict resolution process in the event of a dispute between the contractor and the program participantCal. Code Regs. Tit. 25, § 7104
1. Amendment filed 1-19-84; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 84, No. 3).
2. Repealer of subsections (a)-(j), new subsections (a)-(c) and amendment of NOTE filed 7-31-96; operative 7-31-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 31).
3. New subsections (d)-(d)(A)7. filed 8-13-2012; operative 8-13-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 33). Note: Authority cited: Sections 50406(h) and 50406(n), Health and Safety Code. Reference: 24 CFR 570.489(e).
1. Amendment filed 1-19-84; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 84, No. 3).
2. Repealer of subsections (a)-(j), new subsections (a)-(c) and amendment of Note filed 7-31-96; operative 7-31-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 31).
3. New subsections (d)-(d)(A)7. filed 8-13-2012; operative 8-13-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 33).