Section 7205.1 - Limited Partnership Eligibility Requirements(a) To be eligible to apply for funding, a limited partnership shall demonstrate to the Department's satisfaction that it is controlled by a nonprofit public benefit corporation, limited liability company, or a combination of both. If the limited partnership is controlled by a limited liability company, the limited liability company shall demonstrate to the Department's satisfaction that it is controlled by a nonprofit public benefit corporation.(b) In making its determination, the Department shall consider the limited partnership agreement, any limited liability company operating agreement, the articles and bylaws of any nonprofit corporation, and any pertinent side agreements between limited and general partners relating to the management and operations of the limited partnership (collectively, "organizational documents").(c) In order to demonstrate control, a nonprofit corporation or limited liability company must have the authority to perform substantially all of the following functions, as shown in the organizational documents:(1) Employ and maintain a staff that has the experience and ability to perform the responsibilities and functions of the partnership.(2) Rent, maintain and repair the rental housing development or, if such duties are delegated to a property management agent, hire and oversee the work of the property management agent.(3) Hire and oversee the work of all persons necessary to provide services for the management and operation of the limited partnership business.(4) Execute and enforce all contracts executed by the limited partnership.(5) Execute and deliver all partnership documents on behalf of the limited partnership.(6) Prepare or cause to be prepared all reports to be provided to the partners and lenders on a monthly, quarterly, or annual basis consistent with the requirements of the limited partnership agreement.(7) Coordinate all present and future development, construction, or rehabilitation of the rental housing development that is the subject of the limited partnership agreement.(8) Monitor compliance with all government regulations and file or supervise the filing of all required documents with government agencies.(9) Acquire, hold, assign or dispose of partnership property or any interest in partnership property.(10) Borrow money on behalf of the limited partnership, encumber limited partnership assets, place title in the name of a nominee to obtain financing, prepay in whole or in part, refinance, increase, modify or extend any obligation.(11) Pay organizational expenses incurred in the creation of the partnership and all operational expenses.(12) Determine the amount and timing of distributions to partners and establish and maintain all required reserves.Cal. Code Regs. Tit. 25, § 7205.1
1. New section filed 4-2-2008; operative 5-2-2008 (Register 2008, No. 14). Note: Authority cited: Sections 50406 and 50517.5, Health and Safety Code. Reference: Section 50517.5, Health and Safety Code.
1. New section filed 4-2-2008; operative 5-2-2008 (Register 2008, No. 14).