Cal. Code Regs. tit. 25 § 7876

Current through Register 2024 Notice Reg. No. 50, December 13, 2024

Section 7876 - Interagency Operating Agreement

The Department and the Agency shall enter into an Interagency Operating Agreement which shall specify their respective obligations. The Interagency Operating Agreement shall include, but not be limited to, the following items:

(a) The Department shall establish an allocation plan which shall provide the Department with a mechanism for balancing the Program's requirements while providing flexibility to the Agency to seek to balance its overall production in order to meet its statutory requirements. The plan, prepared at regular intervals by the Department, shall establish allocations for the number, type, geographic distribution and other relevant criteria of assisted units to be submitted to the Department for approval within a specified period.

(b) In accordance with the allocation plan, the Agency shall, on a project-by-project basis, select projects after considering the program priorities and their consistency with other Program requirements and objectives.

(c) The Department and Agency shall specify the means by which the Department may enforce the breach of any Agreement between the Agency and a Sponsor.

(d) The Agency and Department shall agree to a method of resolving any differences of opinion as to the requirements, objectives, or intent of the Program.

(e) The Department shall agree to set aside forty percent (40%) of the moneys in the fund as of July 1, 1980, to assist rental housing developments financed by or through the Agency. Such funds shall be approved for expenditure by application approval within two (2) years after promulgation of the initial allocation plan; funds remaining at that time shall become available to local finance entities, housing authorities, or the Agency on an equal basis.

(f) Prior to any disbursement of funds to the Agency, the Agency and Department shall enter into a state contract for each development in accordance with Section 7882. The state contract shall be recorded or referenced in the office of the county recorder as set forth in Section 7882 (e).

(g) At the time of Department approval of an application, the Department shall transfer to the Agency a sum equivalent to 120% of the amount of assistance approved for a specific development, or such lesser amount as requested by the Agency. Within one year thereafter unless an extension is granted by the Department, the agency shall fund the loan for the development; if the loan is not funded within the approved term, the sum and all interest collected thereon shall be transferred to the Department.

(h) Upon receipt of the funds from the Department, the Agency shall establish an appropriate project account and, pending disbursements by the Agency, shall invest the funds in an interest-bearing account or security. Funds from the account shall not be disbursed for the development except as permitted by this subchapter, the Interagency Agreement, and the state contract.

(i) The Agency may apply to the Department for funds not to exceed an amount proportionate to its set-aside from the feasibility account and the management reserve account pursuant to the procedure set forth in Section 7878 except that the application shall contain only that information reasonably required by the Department and relevant to the specific application.

(j) The Agency and Department shall agree that any excess funds returned to or retained by the Agency shall be promptly returned to the Department for deposit in the Agency set-aside.

Cal. Code Regs. Tit. 25, § 7876

1. Amendment filed 11-13-80 as an emergency; effective upon filing (Register 80, No. 46). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 3-13-81.
2. Certificate of Compliance transmitted to OAL 3-13-81 and filed 4-14-81 (Register 81, No. 16).

Note: Authority cited: Section 50737, Health and Safety Code. Reference: Sections 50739, 50740, Health and Safety Code.