Section 7820 - Eligibility of Loan Finance Entities(a) Before the Department makes a conditional commitment to a local finance entity, it shall certify after receipt and review of an application that such entity has the capability of: (1) ensuring the feasibility of the rental housing development,(2) monitoring the design and construction of the rental housing development, and(3) monitoring the management of the rental housing development for a period of thirty (30) years or the term of the below market interest financing, if any, whichever is greater.(b) In determining the capability of a local finance entity, the Department shall take into account the following criteria: (1) the entity's ability to provide below market interest financing, as evidenced by the market rating and other relevant factors of bonds issued or to be issued by such entity, or the entity's ability to provide other equivalent assistance, and(2) administrative capability, as evidenced by the experience of such entity or staff or consultants employed or to be employed by such entity, in implementing grant or loan programs for housing rehabilitation or construction and management of government-assisted housing.(c) A local finance entity may be eligible for assistance under the Program notwithstanding that it cannot meet the criteria for certification under this section, if: (1) it is located in a rural area,(2) the Department or an entity approved by the Department contracts or proposes to contract with it to ensure that the terms of the regulatory agreement between it and the sponsor are carried out, and(3) the legislative body of the local finance entity consents to such a contract.(d) A housing authority's eligibility shall be certified in the same manner as a local finance entity.Cal. Code Regs. Tit. 25, § 7820
Note: Authority cited: Section 50737, Health and Safety Code. Reference: Sections 50745, 50750, Health and Safety Code.