Section 3630.15 - Capitalized Operating Subsidy Reserve(a) General System Development funds used by the County to establish a Capitalized Operating Subsidy Reserve shall meet the following requirements: (1) Funds for the Capitalized Operating Subsidy Reserve shall be deposited into a County-administered account prior to occupancy of the Project-Based Housing.(2) The amount deposited into the reserve account shall be based on the difference between the anticipated tenant portion of the rent minus revenue lost from anticipated vacancies and the estimated annual operating expenses of the Project-Based Housing. (A) Operating subsidies for subsidized units shall be calculated on a 20-year projection. The calculation may or may not result in actual funds being available for the full 20 years.(B) The amount to be deposited in the reserve shall be included in the work plan required in section 3650, subdivision (a)(6).(b) Capitalized Operating Subsidies may be reduced or terminated under the following circumstances:(1) The tenant occupying the Project-Based Housing has a rental subsidy from another source.(2) The Project-Based Housing receives rental subsidies from non-General System Development funding sources. (A) Project-Based Housing that receive rent or operating subsidy contracts from other sources may receive Capitalized Operating Subsidies for expenses not covered by those subsidy contract(s).(3) The Department or the County determines that the Project-Based Housing program is not following the work plan in the County's approved Three-Year Program and Expenditure Plan and/or update.Cal. Code Regs. Tit. 9, § 3630.15
1. New section filed 12-6-2010; operative 1-5-2011 (Register 2010, No. 50). Note: Authority cited: Section 5898, Welfare and Institutions Code. Reference: Sections 5813.5(a), 5813.5(c), 5813.5(d) and 5878.1(a), Welfare and Institutions Code.
1. New section filed 12-6-2010; operative 1-5-2011 (Register 2010, No. 50).