Cal. Code Regs. tit. 4 § 5144

Current through Register 2024 Notice Reg. No. 43, October 25, 2024

Section 5144 - Annual Applicant Public Benefits and On-Going Compliance Self-Certification

(a) All Projects that receive an Allocation and are within an existing regulatory period and/or compliance period shall be monitored for compliance with the applicable terms and conditions of the Committee Resolution by the Applicant (Issuer) and CDLAC. The new Issuer takes responsibility of reporting on projects that have resyndicated after Year 15. Upon request, CDLAC will review and approve a termination of the original bond regulatory agreement with the requirement that the new agreement include affordability requirements that are at least as restrictive as those in the original agreement.

(b) The self-certification must be submitted by the Applicant to CDLAC no later than March 1 of each year (or at such other time as requested by the Committee). The requirement shall be enforceable by the Committee through an action for specific performance or other available remedy affecting the Applicant including but not limited to disqualification from the program.

(1) For Projects receiving an Allocation prior to December 31, 2016, the Applicant shall complete and submit the Annual Applicant Public Benefits and On-going Compliance Self Certification, via the online compliance certification system annually for the longer of the period the bonds remain outstanding or the period of restriction for QRRP projects outlined in Section 5192.

(2) For Projects receiving allocation after December 31, 2016, the Applicant shall complete and submit the Annual Applicant Public Benefits and On-going Compliance Self Certification via the online compliance certification system every year until the completion of the project and then if the project is subject to a Regulatory Period and/or Compliance Period every three years thereafter or sooner upon a termination of the Regulatory Period and/or Compliance Period.

(c) For all QRRP projects receiving allocations after December 31, 2016, Sponsors shall be required to utilize CTCAC's Compliance Online Reference Manual, specifically Section IV: Qualify Tenants for Low Income Housing Tax Credit Units, to verify tenant income in conjunction with initial occupancy. Additionally, Project Sponsors shall be required to prepare and forward a CTCAC Project Status Report (PSR) or equivalent documentation to the Applicant annually in conjunction with the Annual Applicant Public Benefits and On-going Compliance Self Certification. Sponsors shall retain information pertaining to the income verification process for 10 years.

(d) For all QRRP projects receiving allocation after December 31, 2016, compliance with the income and rental requirements of the Federally Bond-Restricted Units identified in the Committee Resolution and the Bond Regulatory Agreement must be demonstrated by the Applicants initial review of 20% of all management files associated with the Federally Bond-Restricted units and subsequent review every three years of 20% of all management files associated with the Federally Bond-Restricted units. Federally Bond-Restricted units will include a distribution of unit locations, sizes and income levels (if applicable) and must be identified in the PSR. For this 20% of files, Applicants must review each initial or subsequent occupant/s and their associated TIC in conjunction with the supporting income verification documentation of each occupant's initial occupancy and make a determination if the project is complying with the income and affordability standards. Additionally, Applicants must ensure a lease is in place and executed. This review may be performed on-site or may be performed through an electronic file audit. Completion of this task in addition to a valid Certification of Compliance II or equivalent form will provide Issuers with the ability to report annually to CDLAC regarding compliance with the Federally Bond-Restricted unit restrictions. Information pertaining to the income verification process will be kept on file for 10 years. Applicants must retain documentation memorializing review and determination of income eligibility for 10 years. Source income documentation must be retained for 1 year. These guidelines rely on the compliance monitoring process and procedures in place for CTCAC. To the extent CTCAC is to alter their compliance policies and procedures, these guidelines shall be reviewed by CDLAC for consistency and changes made where appropriate.

(e) For all QRRP projects receiving allocation after December 31, 2016, Sponsors requesting an allocation of bonds absent the receipt of a CTCAC reservation will be identified at the time of application and will have the following compliance options which will be represented in the Committee Resolution:

(1) Applicants that can demonstrate to the Executive Director's satisfaction experience and current capacity to conduct on-site physical and file inspections through their Compliance Policies will be required to conduct the 20% review of the Federally Bond-Restricted units files on-site and perform a site inspection consistent with their Bond Compliance Policy every 3 years after the Qualified Project Period has commenced.

(2) Applicants that cannot demonstrate to the Executive Director's satisfaction capacity to conduct on-site physical and file inspections through their Compliance Policies will be required to enter into an agreement with a private third party compliance firm, approved by CDLAC, who must conduct the 20% review of Federally Bond-Restricted units files on-site and perform a site inspection consistent with their current policies and procedures every 3 years after the Qualified Project Period has commenced.

(3) A Sponsor can enter into contract with CDLAC or a designee to monitor the Federally Bond-Restricted units for consistency with the bond regulatory agreement and the Committee Resolution. The charge for this service will be equivalent to the compliance fee charged by CTCAC at the time the project submits their application to CDLAC.

(4) The election of the option will be included in the Committee Resolution.

Cal. Code Regs. Tit. 4, § 5144

Note: Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a), 8869.85(b) and 8869.86(c), Government Code.

1. New section filed 7-1-2011; operative 7-1-2011 (Register 2011, No. 26).
2. Repealer and new section heading, section and Note filed 12-9-2011 as an emergency; operative 12-9-2011 (Register 2011, No. 49). A Certificate of Compliance must be transmitted to OAL by 6-6-2012 or emergency language will be repealed by operation of law on the following day.
3. Repealer and new section heading, section and Note refiled 6-1-2012 as an emergency; operative 6-1-2012 (Register 2012, No. 22). A Certificate of Compliance must be transmitted to OAL by 8-30-2012 or emergency language will be repealed by operation of law on the following day.
4. Repealer and new section heading, section and Note refiled 8-29-2012 as an emergency; operative 8-29-2012 (Register 2012, No. 35). A Certificate of Compliance must be transmitted to OAL by 11-27-2012 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 8-29-2012 order transmitted to OAL 11-26-2012 and filed 1-8-2013 (Register 2013, No. 2).
6. Amendment filed 7-10-2014 as an emergency; operative 7/10/2014 (Register 2014, No. 28). A Certificate of Compliance must be transmitted to OAL by 1-6-2015 or emergency language will be repealed by operation of law on the following day.
7. Certificate of Compliance as to 7-10-2014 order, including further amendment of section, transmitted to OAL 11-26-2014 and filed 1-13-2015; amendments effective 1/13/2015 pursuant to Government Code section 11343.4(b)(3) (Register 2015, No. 3).
8. Amendment filed 2-4-2016 as an emergency pursuant to Government Code section 8869.94; operative 2-4-2016 (Register 2016, No. 6). A Certificate of Compliance must be transmitted to OAL by 8-2-2016 or emergency language will be repealed by operation of law on the following day.
9. Certificate of Compliance as to 2-4-2016 order transmitted to OAL 5-4-2016 and filed 6-14-2016 (Register 2016, No. 25).
10. Amendment filed 12-15-2016 as an emergency pursuant to Government Code section 8869.94; operative 12-15-2016 (Register 2016, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-13-2017 or emergency language will be repealed by operation of law on the following day.
11. Amendment refiled 5-30-2017 as an emergency pursuant to Government Code section 8869.94; operative 6-14-2017 (Register 2017, No. 22). A Certificate of Compliance must be transmitted to OAL by 9-12-2017 or emergency language will be repealed by operation of law on the following day.
12. Reinstatement of section as it existed prior to 12-15-2016 emergency amendment by operation of Government Code section 11346.1(f) (Register 2017, No. 38).
13. Amendment filed 10-13-2017; operative 10/13/2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 41).
14. Amendment of subsection (a), including redesignation of portion of subsection (a) and former subsections (a)(1)-(2) as new subsections (b) and (b)(1)-(2) and subsection relettering filed 12-1-2017 as an emergency; operative 12-1-2017 (Register 2017, No. 48). A Certificate of Compliance must be transmitted to OAL by 5-30-2018 or emergency language will be repealed by operation of law on the following day.
15. Amendment of subsection (a), including redesignation of portion of subsection (a) and former subsections (a)(1)-(2) as new subsections (b) and (b)(1)-(2) and subsection relettering refiled 5-25-2018 as an emergency; operative 5/31/2018 (Register 2018, No. 21). A Certificate of Compliance must be transmitted to OAL by 8-29-2018 or emergency language will be repealed by operation of law on the following day.
16. Certificate of Compliance as to 5-25-2018 order transmitted to OAL 8-9-2018 and filed 9/21/2018 (Register 2018, No. 38).
17. Amendment of subsection (c) filed 5-22-2020 as an emergency pursuant to Government Code section 8869.94; operative 5/22/2020 (Register 2020, No. 21). A Certificate of Compliance must be transmitted to OAL by 1-19-2021 or emergency language will be repealed by operation of law on the following day.
18. Emergency filed 5-22-2020 extended 60 days (Executive Order N-40-20) and an additional 60 days pursuant to Executive Order N-66-20 (Register 2020, No. 21). A Certificate of Compliance must be transmitted to OAL by 1-19-2021 or emergency language will be repealed by operation of law on the following day.
19. Editorial correction of History 17 and History 18 (Register 2020, No. 44).
20. Repealer of 5-22-2020 emergency amendments by operation of Government Code section 11346.1(f) (Register 2021, No. 17).
21. Refiling of 5-22-2020 order, including amendment of subsection (c), on 12-3-2021 as an emergency; operative 12/3/2021 (Register 2021, No. 49). A Certificate of Compliance must be transmitted to OAL by 3-3-2022 or emergency language will be repealed by operation of law on the following day.
22. Certificate of Compliance as to 12-3-2021 order transmitted to OAL 4-11-2022 and filed 5/23/2022 (Register 2022, No. 21).
23. Amendment of subsection (c) filed 8-1-2022 as an emergency; operative 8/1/2022 (Register 2022, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-30-2023 or emergency language will be repealed by operation of law on the following day.
24. Amendment of subsection (c) refiled 2-9-2023 as an emergency; operative 2/9/2023 (Register 2023, No. 6). A Certificate of Compliance must be transmitted to OAL by 5-10-2023 or emergency language will be repealed by operation of law on the following day.
25. Certificate of Compliance as to 2-9-2023 order, including further amendment of subsection (c), transmitted to OAL 4-18-2023 and filed 5-31-2023; amendments effective 5/31/2023 pursuant to Government Code section 11343.4(b)(3) (Register 2023, No. 22).
26. Amendment of subsections (d), (e) and (e)(3) filed 9-26-2024; operative upon adoption by the California Debt Limit Allocation Committee on 8/6/2024 pursuant to Government Code section 8869.94(c). Submitted to OAL for filing and printing only pursuant to Government Code section 11343.8 (Register 2024, No. 39).