Section 7470 - Departmental Review of Rehabilitation and Operations(a) The Department shall issue administrative standards governing inspection, preparation of rehabilitation specifications, bidding, awards to contractors, disbursement of funds to contractors or others, and monitoring procedures during the process of rehabilitation.(b) At any time during the acquisition, rehabilitation, and the term of the loan, the Department may initiate a review or a financial or physical audit of any and all phases of the sponsor's activities under the Program. The sponsor shall promptly provide any requested documentation related to such activities.(c) The sponsor shall submit a certified report annually to the Department in a form approved by the Department. The report shall contain such information as the Department may require, including but not limited to:(1) Certification by the sponsor as to the financial condition of the rental housing development, as evidenced by a financial statement including a balance sheet and profit and loss statement indicating surplus or deficits in operating accounts and the amounts of any fiscal reserves;(2) Certification of any substantial physical defects in the rental housing development, including a description of any notice or citation for violations of local housing codes or any major repair or maintenance work undertaken or needed in the reporting year;(3) the occupancy of the rental housing development indicating: (A) for rental housing developments other than residential hotels, the number of elderly, handicapped or elderly and handicapped households currently residing in the rental housing development;(B) the incomes of current residents;(C) current rents charged residents and what utilities, if any, are included in the rents.(4) general management performance, including occupancy rates, management problems, tenant relations, and other relevant information;(5) other information deemed necessary by the Department to monitor compliance with the regulatory agreement.(d) At the Department's request, the sponsor shall provide, at its own expense, an audit of the financial condition of the rental housing development certified by a Certified Public Accountant or other person designated by the Department.(e) Any person may request the Department to review any phase of implementation or operation of the sponsor's program. Grievances may relate to, but not be limited to, eligibility, terms of tenancy, or authorized expenditures. Review undertaken by the Department under this section may be informal or, at the Department's discretion, may follow the procedures outlined in Government Code, Sections 1180 et seq. Failure to petition the Department shall not limit a complainant's right to seek judicial review, nor shall such review replace a complainant's right to seek de novo judicial review.Cal. Code Regs. Tit. 25, § 7470
1. Amendment of subsections (b) and (c)(2)-(c)(5) filed 4-5-84; effective thirtieth day thereafter (Register 84, No. 14). Note: Authority cited: Section 50662, Health and Safety Code; Reference: Sections 50669-50670, Health and Safety Code.
1. Amendment of subsections (b) and (c)(2)-(c)(5) filed 4-5-84; effective thirtieth day thereafter (Register 84, No. 14).