Section 7330 - Amounts and Terms for RWD Loans(a) RWD loan amounts shall be limited to the sum of a base amount per Assisted Unit plus the amount required to: (1) reduce Rents from the rent structure for Assisted Units that would apply without RWD assistance to the proposed restricted Rents for Assisted Units, by either substituting Program funds for amortized debt or capitalizing a rent subsidy reserve; and(2) preserve Project cash flow at the level that would be generated without participation in the RWD program. The initial base amount shall be $3,000. The Department may periodically adjust the base amount to equal the lowest amount necessary to ensure sufficient demand for Program funds, taking into account factors such as the previous demand for RWD funds and the total amount of Program funds available for award under the RWD component.
(b) RWD funds may be used to capitalize a reserve only if it is not feasible to reduce Rents and maintain Project cash flow by substituting RWD funds for amortized debt. The amount of the capitalized reserve shall not exceed the amount needed to reduce Rents and preserve cash flow at the level that would apply without RWD assistance for a period of 20 years. Thereafter the Assisted Units shall continue to be occupied by eligible households at affordable Rents for the remaining term of the Regulatory Agreement. The Department shall disburse the funds in a manner to ensure the fiscal integrity of the Project for the 20-year period.(c) Program funds shall be used for post-construction, permanent financing only, except under an agreement with California Housing Finance Agency to provide construction period financing to eligible projects receiving financing from both California Housing Finance Agency and the Program.(d) The interest rate and loan repayment terms shall be as set forth in Section 7308.(e) The initial term of the loan shall be 55 years, commencing on the date of recordation of the Program loan documents.(f) Upon request by the Sponsor, the Department may approve a 10-year extension of the loan term if the Department determines both of the following are met: (1) The Sponsor is in compliance with the Regulatory Agreement and other Program loan documents and agrees to continue to comply during the extended term.(2) The extension is necessary to continue operations consistent with Program requirements. The Department may condition the extension on such terms as it deems necessary to ensure compliance with the requirements of the Program.
(g) The Program loan shall be secured by the Project real property and improvements, subject only to liens, encumbrances and other matters of record approved by the Department.Cal. Code Regs. Tit. 25, § 7330
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)-(c) and (f)(1) filed 9-29-2003; operative 9-29-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 40). Note: Authority cited: 50406(n), 50675.1(c) and 50675.11, Health and Safety Code. Reference: Sections 50675.6 and 50675.8, 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)-(c) and (f)(1) filed 9-29-2003; operative 9-29-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 40).