Section 7462 - Regulatory AgreementBefore any funds may be disbarred from the Fund, the Department shall enter into a Regulatory Agreement with sponsors, which shall include, but not be limited to:
(a) standards for tenant selection to ensure occupancy by eligible households;(b) a rent schedule established by the Department at levels affordable to low income households to the extent consistent with the financial integrity of the rental housing development;(c) conditions and procedures for permitting rent increases;(d) limitations on profits allowed for-profit and limited-profit sponsors to a fair rate of return. No return shall be allowed non-profit and public entity sponsors;(e) assurances that the sponsor will maintain the rental housing development in a safe and sanitary condition in compliance with state and local housing codes;(f) conditions and a schedule for reporting to the Department by the sponsor;(g) conditions relating to Departmental review and inspections;(h) a schedule for project implementation, including a timetable for ownership of the rental housing development, commencement of rehabilitation work, and occupancy of the project by eligible households;(i) conditions relating to completion of rehabilitation work, fund disbursements, and reporting of progress;(j) provisions relating to the term and amount of the loan, repayment to the Fund, payment of interest, assumptions of the loan, refinancing and sale of the rental housing development;(k) terms and conditions with respect to default, late repayment and collection of loans;(l) terms and conditions relating to breach of the regulatory agreement and remedies therefore;(m) provisions regulating the terms of the occupancy agreement between the sponsor and tenants of the rental housing development, including terms requiring good cause for any eviction, the establishment of a grievance procedure for hearing complaints of tenants and providing for notice to tenants of proposed rent increases;(n) provisions ensuring that the relocation requirements of Section 50670(g) of the Health and Safety Code will be adhered to;(o) provisions requiring the approval of the Department for all general contracts for approved rehabilitation work; such contracts shall include provisions which require, pursuant to state or federal law, the use of affirmative action in hiring by contractors and subcontractors;(p) provisions limiting encumbrances against the rental housing development without prior Department approval;(q) provisions relating to a replacement reserve;(r) provisions relating to requirements for proper management of the rental housing development, including approval by the Department for any management contract or master lease; and(s) other provisions necessary to assure compliance with the intent of the program.Cal. Code Regs. Tit. 25, § 7462
1. Amendment of subsections (d) and (r) filed 4-5-84; effective thirtieth day thereafter (Register 84, No. 14).
2. Amendment of subsection (n) filed 6-9-87; operative 7-9-87 (Register 87, No. 25). Note: Authority cited: Section 50662, Health and Safety Code; Reference: Sections 50669-50670, Health and Safety Code.
1. Amendment of subsections (d) and (r) filed 4-5-84; effective thirtieth day thereafter (Register 84, No. 14).
2. Amendment of subsection (n) filed 6-9-87; operative 7-9-87 (Register 87, No. 25).