Section 7333 - Legal Documents(a) The provisions of Section 7321(a) shall apply to loans made under this article.(b) The Department shall enter into a Regulatory Agreement with the Sponsor for not less than the original term of the loan that shall be recorded against the Project property title prior to the disbursement of funds. The Regulatory Agreement shall include, but not be limited to, the following: (1) the number, type and income level of Assisted Units pursuant to Section 7331;(2) provisions related to a management plan pursuant to Section 7324;(3) provisions related to a Rent schedule, including initial Rent levels for Assisted Units and non-Assisted Units pursuant to subsections (a) and (b) of Section 7331;(4) conditions and procedures for permitting Rent increases;(5) provisions relating to annual reports, inspections and independent audits pursuant to Section 7325;(6) provisions regarding the deposit and withdrawal of funds to and from reserve accounts;(7) assurances that the Rental Housing Development will be maintained in a safe and sanitary condition in compliance with state and local housing codes and the management plan, pursuant to Section 7324;(8) description of the conditions constituting breach of the Regulatory Agreement and remedies available to the parties thereto;(9) provisions governing use and operation of non-Assisted Units and common areas to the extent necessary to ensure compliance with Program requirements;(10) provisions relating to enforcement of Program requirements by tenants;(11) special conditions of loan approval imposed by the Department;(12) 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 7322;(13) for Projects serving Special Needs Populations and/or providing services to the general tenant population, provisions regarding the implementation and maintenance of services and facilities for the targeted Special Needs Population group and/or general tenant population; and(14) other provisions necessary to assure compliance with the requirements of the Program.(c) 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, § 7333
1. New section filed 1-8-2002; operative 1-8-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2). Note: Authority cited: Sections 50406(n), 50675.1(c) and 50675.11, Health and Safety Code. Reference: Sections 50675.1(c), 50675.6 and 50675.8, Health and Safety Code.
1. New section filed 1-8-2002; operative 1-8-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).