Section 7307 - Maximum Loan Amounts(a) The loan amount shall not exceed the total eligible costs required, when considered with other available financing and assistance, in order to: (1) enable the acquisition, development and construction or Rehabilitation of the Rental Housing Development;(2) ensure that Rents for Assisted Units comply with Program requirements; and(3) operate in compliance with all other Program requirements.(b) The loan amount is further limited to the sum of: (1) a base amount per Restricted Unit; plus(2) the amount per Restricted Unit required to reduce Rents from 30% of 60% of Area Median Income to the actual maximum restricted Rent for the Unit, assuming that the Rent reduction will be achieved by substituting Program funds for private amortized debt, and calculated by the Department based on private market multifamily rental loan terms available at the time of issuance of each notice of funding availability. The initial base amount shall be $30,000 per Restricted Unit. The Department may periodically adjust this amount as necessary to ensure a sufficient volume of applications that meet the objectives of the Program, as evidenced by high rating scores received under Section 7320(b). In making adjustments to the base amount, the Department shall consider (A) demand evidenced in previous funding rounds; (B) the total amount of Program funds available for award; (C) trends in Project development costs; and (D) trends in the terms and availability of supplemental development funding sources.
(c) For loan limit calculations, Unit count shall include the number of single-family houses plus the number of Units within an apartment building or Residential Hotel regardless of whether bedrooms are rented individually. For Units receiving rental assistance under renewable rental subsidy contracts, the loan amount will be based on the level of income restriction that will apply following the closing of the Program loan.
(d) In each notice of funding availability, the Department shall establish a maximum per Project loan amount. This maximum shall be set at a level that ensures sufficient demand for Program funds while meeting the Program's geographic and other distribution goals, taking into account the demand evidenced in previous funding rounds, the availability of other sources of rental subsidy financing and the total amount of Program funds available for award.Cal. Code Regs. Tit. 25, § 7307
1. New section filed 1-8-2002; operative 1-8-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).
2. Amendment of subsections (b)(2) and (c) filed 9-29-2003; operative 9-29-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 40). Note: Authority cited: Sections 50406(n), 50675.1(c) and 50675.11, Health and Safety Code. Reference: Sections 50675.1 and 50675.6(e), Health and Safety Code.
1. New section filed 1-8-2002; operative 1-8-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).
2. Amendment of subsections (b)(2) and (c) filed 9-29-2003; operative 9-29-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 40).