Section 8096 - Legal Documents(a) The department shall enter into a Standard Agreement with the sponsor which shall encumber monies from the fund in an amount sufficient to fund the approved loan amount. The Standard Agreement shall contain the following: (1) A description of the approved project and the permitted uses of program funds;(2) provisions governing the amount and terms of the loan;(3) provisions regarding the regulatory restrictions to be applied to the project through the Regulatory Agreement;(4) provisions governing the construction work and, as applicable, the acquisition of the project site, and the disbursement of loan proceeds;(5) special conditions imposed as part of department approval of the project;(6) requirements for the execution and the recordation of the agreements and documents required under the program;(7) terms and conditions required by federal or state law;(8) requirements regarding the establishment of escrow accounts for the deposit of documents and the disbursement of loan proceeds;(9) remedies available to the department in the event of a violation, breach, or default of the Standard Agreement to ensure compliance with program requirements for the full term of the Regulatory Agreement, including repayment of all costs of enforcement;(10) other provisions necessary to ensure compliance with the requirements of this program.(b) The department shall enter into a Development Agreement with the sponsor which shall be executed prior to the disbursement of funds to the sponsor, govern the performance of the project, and include the following: (1) The approved schedule of the project, including land acquisition, if any, commencement and completion of construction work, and occupancy by eligible households;(2) provisions ensuring that the construction contract is consistent with section 8092 and other program requirements and that all financing agreements are consistent with program requirements;(3) the approved budget for construction work, land acquisition and other project costs, if applicable;(4) provisions relating to fund disbursement;(5) provisions relating to acquisition agreements, preparation of construction specifications, bidding, awards to contractors, and disbursement of funds to contractors, or others;(6) requirements for reporting to the department;(7) terms and conditions for the inspection and monitoring of the project in order to verify compliance with the Standard Agreement and this agreement;(8) provisions regarding tenant relocation;(9) bonding and insurance requirements consistent with the requirements of this subchapter;(10) conditions constituting breach of the Development Agreement and remedies available to the parties thereto, including repayment of costs of enforcement;(11) a requirement that the contractor comply with state prevailing wage law, as set forth in Labor Code section 1720 et seq., where program funds are provided as construction financing; and(12) other provisions necessary to ensure compliance with the requirements of this program.(c) The department shall enter into a Regulatory Agreement with the sponsor for not less than the original term of the loan which shall be recorded against the project property prior to the disbursement of funds. The Regulatory Agreement shall include the following: (1) designation of the number and type of assisted units pursuant to section 8086;(2) standards for tenant selection pursuant to section 8087(a);(3) provisions regulating the terms of the rental agreement pursuant to section 8087(c);(4) provisions related to an annual budget approved by the department pursuant to section 8102;(5) provisions related to a management plan pursuant to section 8100;(6) provisions related to a rent schedule, including initial rent levels for assisted and nonassisted units pursuant to section 8088(a);(7) conditions and procedures for permitting rent increases pursuant to section 8088(b);(8) provisions for limitations on distributions pursuant to section 8089;(9) provision requiring annual reports, inspections and audits pursuant to section 8101;(10) provisions regarding the withdrawal of funds from reserve accounts and additional payments by the department;(11) assurances that sponsor will maintain the rental housing development in a safe and sanitary condition in compliance with state and local housing codes and the management plan pursuant to section 8100;(12) conditions constituting breach of the Regulatory Agreement and remedies available to the parties thereto;(13) provisions governing use and operation of nonassisted units and common areas to the extent necessary to ensure compliance with program requirements;(14) provisions authorizing enforcement of program requirements by tenants;(15) special conditions of loan approval imposed by the department;(16) provisions specifying that the Regulatory Agreement shall be binding on all assigns and successors in interest of the sponsor and that all sales, transfers, and encumbrances shall be subject to section 8099; and(17) other provisions necessary to assure compliance with the requirements of the program.(d) All loans shall be evidenced by a promissory note payable to the department in the principal amount of the loan and stating the terms of the loan consistent with the requirements of the program. The note shall be secured by a deed of trust on the project property naming the department as beneficiary or by other security acceptable to the department; this deed of trust or other security shall be recorded junior only to such liens, encumbrances and other matters of record approved by the department and shall secure the department's financial interest in the project and the performance of sponsor's program obligations.Cal. Code Regs. Tit. 25, § 8096
1. New section filed 12-29-89 as an emergency; operative 12-29-89 (Register 90, No. 3). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 4-30-90.
2. New section refiled 4-26-90 as an emergency; operative 4-26-90 (Register 90, No. 23). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 8-24-90.
3. New section refiled 8-27-90 as an emergency; operative 8-27-90 (Register 90, No. 42). A Certificate of Compliance must be transmitted to OAL by 12-26-90 or emergency language will be repealed by operation of law on the following day.
4. New section refiled 12-19-90 as an emergency pursuant to Health and Safety Code section 50771.3; operative 12-19-90 (Register 91, No. 4). A Certificate of Compliance must be transmitted to OAL by 4-18-91 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 12-19-90 order transmitted to OAL 1-4-91; disapproved by OAL 2-4-91 (Register 91, No. 13).
6. New section refiled 2-20-91 as an emergency; operative 2-20-91 (Register 91, No. 13). A Certificate of Compliance must be transmitted to OAL by 6-17-91 or emergency language will be repealed by operation of law on the following day.
7. Certificate of Compliance as to 6-14-91 order including amendment of subsections (a) and (b) transmitted to OAL 5-15-91 and filed 6-14-91 (Register 91, No. 38). Note: Authority cited: Section 50771.1, Health and Safety Code. Reference: Sections 50771.1 and 53130, Health and Safety Code.
1. New section filed 12-29-89 as an emergency; operative 12-29-89 (Register 90, No. 3). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 4-30-90.
2. New section refiled 4-26-90 as an emergency; operative 4-26-90 (Register 90, No. 23). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 8-24-90.
3. New section refiled 8-27-90 as an emergency; operative 8-27-90 (Register 90, No. 42). A Certificate of Compliance must be transmitted to OAL by 12-26-90 or emergency language will be repealed by operation of law on the following day.
4. New section refiled 12-19-90 as an emergency pursuant to Health and Safety Code section 50771.3; operative 12-19-90 (Register 91, No. 4). A Certificate of Compliance must be transmitted to OAL by 4-18-91 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 12-19-90 order transmitted to OAL 1-4-91; disapproved by OAL 2-4-91 (Register 91, No. 13).
6. New section refiled 2-20-91 as an emergency; operative 2-20-91 (Register 91, No. 13). A Certificate of Compliance must be transmitted to OAL by 6-17-91 or emergency language will be repealed by operation of law on the following day.
7. Certificate of Compliance as to 6-14-91 order including amendment of subsections (a) and (b) transmitted to OAL 5-15-91 and filed 6-14-91 (Register 91, No. 38).