Loading (50 kb)...'

(continued)
_____ YES _____ NO _______ If "YES," state:
Amount of Bond: $ __________
Name of Bonding Co.:
b. If "NO," is the Organization eligible for a fidelity bond?

_____ YES _____ NO
c. Does the Organization carry at its expense any other insurance for protection of owner's interests? If so, what?
11. Describe planned on-site staff for the project being applied for, including duties and work hours:
12. Describe your plans to train staff to manage the development in accordance with the requirements of the California Housing Rehabilitation Program:
13. Attach a copy of the Organization's most recent financial statement.
(c) A complete application shall consist of the following:
(1) a fully completed form HCD 779, "Rental Loan Application, California Housing Rehabilitation Program (CHRP)," 12/89, accompanied by all attachments relevant to the project under consideration; and
(2) any other information the department may require in order to determine the eligibility or feasibility of the proposed project, to evaluate or rank the proposed project, or to determine that the applicant is capable of owning, managing and rehabilitating a rental housing development.


Note: Authority cited: Section 50668.5, Health and Safety Code. Reference: Sections 50661, 50668.5, and 50669, Health and Safety Code.








s 7689. Project Selection.
(a) Projects shall not be considered for funding unless the application demonstrates that all of the following conditions exist:
(1) The applicant is an eligible sponsor pursuant to section 7673;
(2) The project is eligible pursuant to section 7672;
(3) All proposed uses of program funds are eligible pursuant to section 7674;

(4) The application is complete pursuant to section 7688;
(5) The requested loan amount per unit is consistent with the maximum loan amounts authorized pursuant to section 7677;
(6) The estimated loan-to-value ratio is consistent with the requirements of section 7679(a).
(b) Subject to the availability of funds, projects that are considered for funding will be rated according to subdivision (c) and ranked pursuant to subdivision (d).
(c) When the application meets the requirements of subdivision (a), the application shall be rated according to the following criteria. The application must receive a minimum of 60 percent of the total possible points in order to be ranked pursuant to subdivision (d); and zero points in either criterion (1) or (2) will disqualify the application. If either criterion (4) or (5) is not applicable to the proposed project, the total number of points possible will be reduced by the total number of points possible in that criterion; and 60 percent will be calculated on the reduced maximum possible points:

(1) The application demonstrates that the proposed project will maintain fiscal integrity and affordable rents throughout the term of the loan. (30 points)
(2) The applicant demonstrates ability or experience in owning, rehabilitating, and operating rental housing, as evidenced by the length and quality of the sponsor's experience and qualifications; the experience and qualifications of individual members of its board, its staff, or consultants. (25 points)
(3) The proposed project site is free from severe adverse environmental conditions and is accessible to public transportation, shopping, medical services, recreation, schools, and employment in relation to the needs of the project tenants. (15 points)
(4) If applicable, the application contains a relocation plan that minimizes unnecessary cost and extent of relocation. (10 points)
(5) In proposed projects targeting households in need of any direct or supportive tenant services, the proposed project provides those services suitable to the needs of the tenants. (10 points)

(6) A majority of project costs will be for the correction of health and safety defects. (10 points)
Maximum possible points: 100
(d) Where the application meets the requirements of subdivision (c), the proposed project will be ranked to determine its compliance with the following priority requirements. The application must receive a minimum of 60 percent of the total possible priority points in order to qualify for funding. If criterion (2) is not applicable to the proposed project, the total number of points possible will be reduced by the number of points in that criterion; and the 60 percent will be calculated on the reduced maximum possible points. The maximum score for each of the following six criteria is 15:
(1) Percentage of total residential units in the proposed project reserved as assisted for occupancy by very low-income households.
(2) Percentage of total residential units in the proposed project which are assisted units with three or more bedrooms (not applicable to residential hotels, motels, group homes, congregate homes, and rental housing developments occupied by the handicapped).

(3) Need in the area of the proposed project as approved by the department for the type of housing provided by the proposed project, as indicated in the local housing element and other supporting documentation by the following:
(A) Low vacancy rate for rental housing as provided by the department through the use of a methodology which ensures uniform rate calculations for all applications.
(B) Low vacancy rate in developments comparable to proposed project.
(C) Typical local market-rate rents as a high percentage of area median income.
(D) Typical comparable market-rate rents as a high percentage of area median income.
(E) Length of subsidized housing waiting lists for comparable projects and length of wait for households on these lists.
(F) High percentage of substandard rental units in the area of the proposed project.

(G) Degree to which local subsidized housing stock serving lower income households has been threatened or lost because of demolition, foreclosure, or subsidy termination.
(4) The extent to which the proposed project complements the implementation of an existing housing program in the local agency in which the proposed project is located, as demonstrated by one of the following. Points shall be allocated based upon the following criteria which are listed in descending order of priority:
(A) The local agency has a housing element in substantive compliance with the requirements of law. For the purposes of this subsection, "substantive compliance" is demonstrated by a letter from the department which sets forth findings that the housing element adopted within the timeframes required by section 65588 of the Government Code includes that substance essential to every requirement of article 10.6, commencing with section 65580, of chapter 3 of division 1, of Title 7 of the Government Code. The element identifies the special housing needs which would be served by the applicant's proposed project and the local agency is providing financial or nonfinancial assistance to the applicant's project.

(B) The local agency has a housing element in procedural compliance with the law or has an adopted plan or policy for addressing the local housing needs. For the purposes of this subsection, "procedural compliance" means that the local agency has complied with all procedures required by law for the department's review of a draft housing element, local adoption of the element, and submission of the adopted element to the department. The local agency has a program which is providing financial or nonfinancial assistance to the applicant's proposed project.
(C) The local agency has a housing element in procedural compliance with the law or has an adopted plan or policy for addressing the local housing needs. There are programs available in the jurisdiction of the local agency in support of lower income housing programs and the programs are providing financial or nonfinancial assistance to the proposed project.
(D) The local agency has a housing element in procedural compliance with the law or has an adopted plan or policy for addressing the local housing needs. The local agency has a program which could provide financial or nonfinancial assistance to the proposed project, but which will not provide such assistance.

(E) The local agency has no housing element in compliance but has programs in support of lower income housing and is providing financial or nonfinancial assistance to the applicant's proposed project.
(F) The local agency has no housing element in compliance but has programs in support of lower income housing which could provide financial assistance to the applicant's proposed project.
(G) The local agency has programs in support of lower income housing but there is no assistance available for the applicant's proposed project.
(5) To the extent feasible, the proposed project uses available and cost-effective private, local and other funding sources in lieu of program funds.
(6) The proposed project maximizes long-term benefit for lower income households, as indicated by the following:
(A) Period of time beyond minimum term required by section 7676 that assisted units in the proposed project will be subject to rent and occupancy restrictions similar to program restrictions.

(B) The percentage that rents for assisted units in the proposed project are below the program maximum rents for these units.
Maximum possible points: 90
(e) Projects which receive 60 percent of the available points shall be recommended for funding to the director of the department. The director shall reject a recommendation for funding if it is determined that the rehabilitation work is insignificant relative to total project costs or that the project is inconsistent with the purposes of the program.


Note: Authority cited: Section 50668.5, Health and Safety Code. Reference: Sections 50010, 50053 and 50668.5, Health and Safety Code.








s 7690. 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 rehabilitation work and, as applicable, the acquisition or refinancing, and the disbursement of loan proceeds;
(5) special conditions imposed as part of department approval of the project;
(6) requirements for the execution and, where appropriate, 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; and

(10) other provisions necessary to ensure compliance with the requirements of this program.
(b) The department shall enter into a Rehabilitation Loan 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 transfer of ownership, if any, commencement and completion of rehabilitation work, and occupancy by eligible households;
(2) provisions ensuring that the construction contract is consistent with section 7686 and other program requirements and that all financing agreements are consistent with program requirements;
(3) the approved budget for rehabilitation work and acquisition and refinancing, if applicable;
(4) provisions relating to fund disbursement;

(5) provisions relating to acquisition or refinancing agreements, preparation of rehabilitation 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 Rehabilitation Loan Agreement and remedies available to the parties thereto, including repayment of costs of enforcement.
(11) 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 re corded against the project property prior to the disbursement of funds. The Regulatory Agreement shall include the following:
(1) designation of assisted units;
(2) standards for tenant selection pursuant to section 7682(a);
(3) provisions regulating the terms of the rental agreement pursuant to section 7682(b);
(4) provisions related to an annual budget approved by the department pursuant to section 7696;
(5) provisions related to a management plan pursuant to section 7694;
(6) provisions related to a rent schedule, including initial rent levels for assisted and non-assisted units pursuant to section 7683(a);
(7) conditions and procedures for permitting rent increases pursuant to section 7683(b);
(8) provisions for limitations on profit pursuant to section 7684;
(9) provision requiring annual reports, inspections and audits pursuant to section 7695;
(10) provisions regarding the withdrawal of funds from a reserve account 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 7694;
(12) conditions constituting breach of the Regulatory Agreement and remedies available to the parties thereto;
(13) provisions governing use and operation of unassisted 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 7692; 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 secure the department's financial interest in the project and the performance of sponsor's program obligations.


Note: Authority cited: Section 50668.5, Health and Safety Code. Reference: Sections 50668.5, 50670 and 53130, Health and Safety Code.








s 7691. Disbursement of Loan Funds.
(a) The sponsor shall request funds from the department for actual expenditures in accordance with the schedule and the authorized amounts in the approved project budget in the Rehabilitation Loan Agreement. The information on any request for funds shall be subject to verification by the department. Requests shall be made on form HCD 780, "California Housing Rehabilitation Program-Rental Component, Request For Funds," dated 12/89, as set forth in subsection (b). This form is provided by the department.
(b) Text of form HCD 780, "California Housing Rehabilitation Program -Rental Component, Request for Funds," dated 12/89:
HCD 780, 12/89
CALIFORNIA HOUSING REHABILITATION PROGRAM RENTAL COMPONENT REQUEST FOR FUNDS

1. BORROWER (Payee): ___________________________________
2. ADDRESS: ____________________________________________
3. CONTRACT NUMBER: ________________
4. DATE: ________
5.

Total Amount
Approved Amount Per Previously
Loan Amount This Request Approved Balance

$ ________ $ ________ $ ________ $ ________


6. USE OF FUNDS REQUESTED:
a. Acquisition/Refinance costs $_________________________
b. Rehabilitation (Construction) costs $_____________________
c. Non-Construction Development costs $______________________
7. DRAW CHECK IN TOTAL AMOUNT OF: $ ________________
8. SEND CHECK TO: Department of Housing and Community Development Accounting Office P.O. Box 952050 Sacramento, CA 94252-2050
9. CERTIFICATION: I, the undersigned, do hereby certify that (1) the funds requested above were or will be used in performance of the above numbered State Contract.
Signed: ______________________________________

Title: ________________________________________
DO NOT WRITE BELOW THIS LINE

____________________________________________
The work performed for which this request for disbursement is presented is in accordance with all provisions of Contract Number ________ between ________________ and the Department of Housing and Community Development, and is hereby approved for payment.
Program Manager: __________________ Date: ____________
(c) Prior to the disbursement of funds, the sponsor shall provide or execute all required documents which the department determines are necessary to verify the claimed expenditure.
(d) The department may enter into agreements with other lenders or public or private entities to disburse funds and monitor construction and may make direct payments to such third party contractors on behalf of sponsors.
(e) Upon execution of required documents, compliance with all applicable conditions therein, and submittal of the sponsor's request for funds to commence the project, the department may disburse an advance payment to a sponsor which is a nonprofit corporation or government entity for payment of approved administrative costs. In order to qualify for an advance payment, the sponsor must certify that it does not have adequate funds to commence the project. The advance payment shall not exceed 25 percent of the approved administrative costs, and subsequent disbursements shall be made only to reimburse the sponsor for actual eligible costs incurred.


Note: Authority cited: Section 50668.5, Health and Safety Code. Reference: Section 50668.5, Health and Safety Code.








s 7692. Sales, Transfers, and Encumbrances.
(a) A sponsor shall not sell, assign, transfer, or convey the rental housing development, or any interest therein or portion thereof, without the express prior written approval of the department. A sale, transfer or conveyance shall be approved only if all of the following requirements are met:
(1) the existing sponsor is in compliance with the Regulatory Agreement or the sale, transfer or conveyance will result in the cure of any existing violations;

(2) the successor-in-interest to the sponsor agrees to assume all obligations of the existing sponsor pursuant to the Regulatory Agreement and this program;
(3) the successor-in-interest is an eligible sponsor and demonstrates to the department's satisfaction that it can successfully own and operate the rental housing development and comply with all program requirements; and
(4) no terms of the sale, transfer, or conveyance jeopardize either the department's security or the successor's ability to comply with all program requirements.
(b) The Department may grant its approval of such sale, assignment, transfer, or conveyance subject to such terms and conditions as may be necessary to preserve or establish the fiscal integrity of the project. Such conditions may include:
(1) the deposit of sales proceeds, or a portion thereof, to maintain required reserves, or to offset negative cash flow;
(2) the recapture of syndication proceeds or other funds in accordance with special conditions included in the Standard Agreement or any other agreement executed by the sponsor;
(3) such conditions as may be necessary to ensure compliance with the program requirements.
(c) The sponsor shall not encumber, pledge, or hypothecate the rental housing development, or any interest therein or portion thereof, or allow any lien, charge, or assessment against the rental housing development without the prior written approval of the department. The department may permit refinancing of existing liens or additional financing secured by the rental housing development to the extent necessary to maintain or improve the fiscal integrity of the project or to maintain affordable rents.


Note: Authority cited: Section 50668.5, Health and Safety Code. Reference: Section 50668.5, Health and Safety Code.








s 7693. Defaults and Loan Cancellations.
(a) In the event of a breach or violation by the sponsor of any of the provisions of the Regulatory Agreement, the Standard Agreement, the Rehabilitation Loan Agreement, the promissory note, or the deed of trust, or any other agreement pertaining to the project, the department may give written notice to the sponsor to cure the breach or violation within a period of not less than 15 days. If the breach or violation is not cured to the satisfaction of the department within the specified time period, the department, at its option, may declare a default under the relevant document and may seek legal remedies for the default including the following:
(1) The department may accelerate all amounts, including outstanding principal and interest, due under the loan and demand immediate repayment thereof. Upon a failure to repay such accelerated amount in full, the department may proceed with a foreclosure in accordance with the provisions of the deed of trust and state law regarding foreclosures.
(2) The department may seek, in a court of competent jurisdiction, an order for specific performance of the defaulted obligation or the appointment of a receiver to complete the project or operate the rental housing development in accordance with program requirements.
(3) The department may seek such other remedies as may be available under the relevant agreement or any law.
(b) In the event that the breach or violation involves charging tenants rent or other charges in excess of those permitted under the Regulatory Agreement, the department may demand the return of such excess rents or other charges to the affected households. In any action to enforce the provisions of the Regulatory Agreement, the department may seek as additional remedy, the repayment of such overcharges.
(c) Loan commitments may be cancelled by the department under any of the following conditions:
(1) the objectives and requirements of the program cannot be met;
(2) implementation cannot proceed in a timely fashion in accordance with the approved plans and schedules;
(3) special conditions have not been fulfilled within required time periods;
(4) the rehabilitation work has not commenced within one year of the date of loan approval;
(5) there has been a material change in the principals or management of the sponsor or project, which was not approved by the department.
The department, in writing and upon demonstration by the sponsor of good cause, may extend the date for compliance with any of the conditions in this subdivision.
(d) Upon receipt of a notice of intent to cancel the loan from the department, the sponsor shall have the right to appeal to the Director.
(e) The department may use amounts available in the fund pursuant to section 7697(b) for the purpose of curing, or avoiding, a sponsor's defaults on the terms of any loan or other obligation which jeopardize completion of rehabilitation, the fiscal integrity of a project or the department's security in the project. Such defaults include defaults or impending defaults in payments on mortgages, failures to pay taxes, or failures to maintain insurance or required operating reserves. The payment or advance of funds by the department pursuant to this subdivision shall be solely within the discretion of the department and no sponsor shall be entitled to or have any right to payment of these funds. All funds so advanced shall be part of the deferred payment loan to the sponsor and, upon demand, due and payable to the department. Where it becomes necessary to use the fund for the purpose of assisting a project to avoid threatened defaults or foreclosures, the department shall take those actions necessary, including but not limited to, foreclosure or forced sale of the project property, to prevent similar occurrences and insure compliance with the terms of the applicable agreements.


Note: Authority cited: Section 50668.5, Health and Safety Code. Reference: Section 50668.5, Health and Safety Code.








s 7694. Management and Maintenance.
(a) The sponsor shall be responsible for all management functions of the rental housing development including selection of the tenants, annual recertification of household income and size, evictions, and collection of rent.
(b) The sponsor is responsible for all repair and maintenance functions of the rental housing development, including ordinary maintenance and replacement of capital items. The sponsor shall maintain residential units, nonresidential space and common areas in accordance with local health, building, and housing codes and the management plan.
(c) The sponsor, with the prior approval of the department, may contract with a management agent for the performance of the services or duties required in subdivision (a) and (b). However, such an arrangement does not relieve the sponsor of responsibility for proper performance of these duties. Such contract shall contain a provision allowing the sponsor to terminate the contract upon thirty days' notice. The sponsor shall terminate said contract as directed by the department upon determination that management does not comply with program requirements.
(d) The sponsor shall develop a management plan subject to department approval prior to loan closing. The plan shall be consistent with this subchapter and shall include the following:
(1) the role and responsibility of the sponsor and its delegation of authority, if any, to the managing agent;
(2) personnel policy and staffing arrangements;

(3) plans and procedures for publicizing and achieving early and continued occupancy;
(4) procedures for determining tenant eligibility and for certifying and annually recertifying household income and size;
(5) plans for carrying out an effective maintenance and repair program;
(6) rent collection policies and procedures;
(7) program for maintaining adequate accounting records and handling necessary forms and vouchers;
(8) plans for tenant-management relations;
(9) management agreement, if any;
(10) description of direct or supportive tenant services, if any; and
(11) provisions for periodic update of management plan.


Note: Authority cited: Section 50668.5, Health and Safety Code. Reference: Section 50668.5, Health and Safety Code.








s 7695. Reporting and Inspections.
(a) No later than 60 days after the end of each fiscal year, the sponsor shall report to the department on form HCD 781, "California Housing Rehabilitation Program Rental Component, Annual Report," dated 12/89, as set forth in subsection (b). This form is provided by the department.
HCD 781 12/89
CALIFORNIA HOUSING REHABILITATION PROGRAM

RENTAL COMPONENT

ANNUAL REPORT

Sponsor: _____________________________________________
Project Name: _________________________________________
Project Address _______________________________________
Contract Number ________________________________________
I hereby submit the following items for the fiscal year beginning ________ and ending ________.
[ ] CHRP Interest Payment in the amount of $______.
[ ] Principal Prepayment in the amount of $______.
[ ] Residual Receipts Payment in the amount of $______

[ ] Financial Statement.
[ ] Income & Expense Statements (plus attachments).
[ ] Report on Account Balances.
[ ] Management Report )plus attachments.
[ ] Copy of current Hazard Insurance Policy.
CERTIFICATION: I hereby certify that I am responsible for the above submittals and, furthermore, to the best of my knowledge, the information included is true and complete.
By:__________________________________________
Signature

________________________________________
Name and Title


__________ __________
Date Phone Number


AT: _____________________________
City

Contract No.: ________
Fiscal Year: ________
A. PROJECT INCOME:
1. a. Attach an Occupancy and Rent Schedule for all residential rents labeled A.1. using the format attached. (See example attached.) Also attach another schedule showing the nonresidential occupancy and rent schedules if CHRP money was used to rehabilitate the nonresidential portion of the building.

2. Report of Actual Annual Income:

Residential Non-Residential Total
Income Income Income
a. Rental Income $ _____ $ _____ $ _____
b. Rent Subsidies $ _____ $ _____ $ _____
c. Laundry Income $ _____ $ _____ $ _____
d. Interest Income $ _____ $ _____ $ _____
e. Security Deposits
Withheld $ _____ $ _____ $ _____
f. Other:_____ $ _____ $ _____ $ _____
g. Total Income: $ _____ $ _____ $ _____


B. OPERATING EXPENSES: Attach a description of each expense and relevant invoices, payrolls, etc.

Non-

Residential + Residential =Total
1. MANAGEMENT
a. Sponsor's Overhead $ _____ $ _____ $ _____
b. Contracted Management
fee $ _____ $ _____ $ _____
c. Total Management $ _____ $ _____ $ _____
2. ADMINISTRATION
a. Marketing Expense $ _____ $ _____ $ _____
b. Audit $ _____ $ _____ $ _____
c. Legal $ _____ $ _____ $ _____
d. Miscellaneous $ _____ $ _____ $ _____
e. TOTAL $ _____ $ _____ $ _____
3. SPONSORS SALARIES AND BENEFITS
(include value of rent discounts)
a. On-/Off Site Manager $ _____ $ _____ $ _____
b. Assistant Manager $ _____ $ _____ $ _____
c. Assistant Manager $ _____ $ _____ $ _____
d. Grounds & Maintenance Personnel $ _____ $ _____ $ _____
e. Janitorial Personnel $ _____ $ _____ $ _____
f. Housekeepers $ _____ $ _____ $ _____
g. Service Staff $ _____ $ _____ $ _____

h. Other (specify) $ _____ $ _____ $ _____
i. TOTAL SALARIES
AND BENEFITS $ _____ $ _____ $ _____
4. MAINTENANCE
a. Supplies $ _____ $ _____ $ _____
b. Elevator Maintenance $ _____ $ _____ $ _____
c. Pest Control $ _____ $ _____ $ _____
d. Grounds Contract $ _____ $ _____ $ _____
e. Painting & Decorating
(Interior Only) $ _____ $ _____ $ _____
f. Other: $ _____ $ _____ $ _____
g. TOTAL
MAINTENANCE $ _____ $ _____ $ _____
5. UTILITIES (Not paid for by tenants)
a. Trash Removal $ _____ $ _____ $ _____
b. Electricity $ _____ $ _____ $ _____
c. Water and Sewer $ _____ $ _____ $ _____
Non-
Residential + Residential Total
=
d. Gas $ _____ $ _____ $ _____

e. TOTAL $ _____ $ _____ $ _____
6. INSURANCE
a. Property and
Liability Insurance $ _____ $ _____ $ _____
7. TAXES
a. Real Estate Taxes $ _____ $ _____ $ _____
b. Business Licenses $ _____ $ _____ $ _____
c. TOTAL TAXES $ _____ $ _____ $ _____
8. OTHER
a. Food $ _____ $ _____ $ _____
b. Support Services $ _____ $ _____ $ _____
c. $ _____ $ _____ $ _____
d. $ _____ $ _____ $ _____
e. TOTAL OTHER $ _____ $ _____ $ _____
9. DEPOSITS TO RESERVE ACCOUNT
a. Replacement Reserve $ _____ $ _____ $ _____
b. Operating Reserves $ _____ $ _____ $ _____
c. Other $ _____ $ _____ $ _____
d. TOTAL $ _____ $ _____ $ _____
10. DEBT SERVICE
a. CHRP (Attached) $ _____ $ _____ $ _____

b. $ _____ $ _____ $ _____
c. $ _____ $ _____ $ _____
d. TOTAL DEBT SERVICE $ _____ $ _____ $ _____
11. TOTAL OPERATING, RESERVE
& DEBT SERVICE
EXPENSES $ _____ $ _____ $ _____
C. PROJECT SUMMARY
1. Total Income
(from A.1.g.) $ _____ $ _____ $ _____
2. Less Total Operating, Reserve
& Debt Service Expenses ($ _____) ($ _____) ($ _____)
(from B.11.)
3. Net Cash Available for Distributions
or Payments ($ _____) ($ _____) ($ _____)
4. Less Distribution
5. Less Loan Prepayments (Attached)
6. Less Incentive Payments
7. Residual Receipts (Attached


D. REPORT ON ACCOUNT BALANCES: (copies of Bank Statements should be attached.) Only complete the nonresidential summary if CHRP funds were used for any of the nonresidential rehabilitation. Copies of invoices or explanations supporting all withdrawals from the Replacement Reserve or Operating Reserve Accounts must be attached.


[Note: The following TABLE/FORM is too wide to be displayed on one screen.
You must print it for a meaningful review of its contents. The table has been
divided into multiple pieces with each piece containing information to help you
assemble a printout of the table. The information for each piece includes: (1)
a three line message preceding the tabular data showing by line # and
character # the position of the upper left-hand corner of the piece and the
position of the piece within the entire table; and (2) a numeric scale
following the tabular data displaying the character positions.]
*******************************************************************************
******** This is piece 1. -- It begins at character 1 of table line 1. ********
*******************************************************************************

Beginning Budgeted Actual

Residential Balance Deposits Deposits [FNa1] Withdrawals
1. Replacement Reserves: $________ $_______ $______________ $__________
2. Operating Reserves: _________ ________ _______________ ___________
3. Security Deposits: _________ ________ _______________ ___________
4. Operating Account: _________ ________ _______________ ___________
5. _________ ________ _______________ ___________
1...+...10....+...20....+...30....+...40....+...50....+...60....+...70....+.

*******************************************************************************
******* This is piece 2. -- It begins at character 77 of table line 1. ********
*******************************************************************************

Interest Net Increase Ending
Earned [FNaa1] (Decrease) Balance
$_____________ $___________ $______
______________ ____________ _______
______________ ____________ _______
______________ ____________ _______
______________ ____________ _______
77......+...90....+....0....+...10....




[Note: The following TABLE/FORM is too wide to be displayed on one screen.
You must print it for a meaningful review of its contents. The table has been
divided into multiple pieces with each piece containing information to help you
assemble a printout of the table. The information for each piece includes: (1)
a three line message preceding the tabular data showing by line # and
character # the position of the upper left-hand corner of the piece and the
position of the piece within the entire table; and (2) a numeric scale
following the tabular data displaying the character positions.]
*******************************************************************************
******** This is piece 1. -- It begins at character 1 of table line 1. ********
*******************************************************************************

Beginning Budgeted Actual
Nonresidential Balance Deposits Deposits [FNa1] Withdrawals
1. Replacement Reserves: $____ $____ $____ $____
2. Operating Reserves: ____ ____ ____ ____
3. Security Deposits: ____ ____ ____ ____

4. Operating Account: ____ ____ ____ ____
5. ____ ____ ____ ____
1...+...10....+...20....+...30....+...40....+...50....+...60....+...70....+..

*******************************************************************************
******* This is piece 2. -- It begins at character 78 of table line 1. ********
*******************************************************************************

Interest Net Increase Ending
Earned [FNaa1] (Decrease) Balance
$____ $____ $____
____ ____ ____
____ ____ ____
____ ____ ____
____ ____ ____
78.....+...90....+....0....+...10....+


[FNa1] "Actual Deposits" should reflect the same amount as shown under Section B. Operating Expenses, item 9.

[FNaa1] "Interest Earned" should reflect the same amount as shown under Section A. Project Income, item 2.d.
E. CHRP Interest Payment Summary

(1) Interest due on CHRP loan for this fiscal year $___________
(2) Less interest payment made on CHRP loan for
this fiscal year (check attached) $___________
(3) Equals interest deferred for this fiscal year = $___________
(4) Plus interest deferred from previous fiscal years + $___________
(5) Less interest payment made on CHRP loan for
prev. fiscal years (attached) - $___________
(6) Equals total outstanding CHRP interest owed
HCD as of = $___________


F. MANAGEMENT REPORT: (Attach additional comments if necessary).
1. Describe any notice or citation for violation of local housing codes:

2. Describe any major purchases or maintenance work undertaken in the reporting year.
3. Describe any major repair or maintenance work still needed:
4. Number of evictions during the year? ___________ Explain reasons for each eviction and show unit number for each
5. Determine vacancy rate: (a) Total number of units:
(a) Total number of units: x 12 months = unit months
(b) Number of vacant units during the year:
(c) Number of months vacant:

(b) ________ x (c) ________ = ________ (d)
(d) ________ + (a) ________ = ________% vacancy rate



6. Describe the nature of vacancies that occurred:
7. Describe any problems which arose in filling vacancies and steps taken to address them.
8. How many names are currently on the waiting list?____
9. Has the project experienced any problems with nonpayment of rent, bad debts, etc.? If so, describe and indicate steps taken to alleviate such problems.
10. Describe any additional management problems that occurred during the past fiscal year, and steps taken to solve management problems.
11. Have there been any changes in property management staff responsible for the project? If so, identify new staff and indicate their qualifications.


A.1. Occupancy and Rent Schedule



[Note: The following TABLE/FORM is too wide to be displayed on one screen.
You must print it for a meaningful review of its contents. The table has been
divided into multiple pieces with each piece containing information to help you
assemble a printout of the table. The information for each piece includes: (1)
a three line message preceding the tabular data showing by line # and
character # the position of the upper left-hand corner of the piece and the
position of the piece within the entire table; and (2) a numeric scale
following the tabular data displaying the character positions.]
*******************************************************************************
******** This is piece 1. -- It begins at character 1 of table line 1. ********
*******************************************************************************

(A) (B) (C) (D) (E)

Unit Unit Market Rent (or Subsidy Tenant's No. of
Number Type Basic (if Portion Months
Unit Rent)Approved any) of Rent Occupd

Dsgntn CHRP Rent over
CHRP
Rent
--------------------------------------------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
1...+...10....+...20....+...30....+...40....+...50....+...60....+...70....

*******************************************************************************
******* This is piece 2. -- It begins at character 75 of table line 1. ********
*******************************************************************************

(F) (G) For CHRP Assisted

Units
---------------------
Total Total Gross No. of
Rent Rent Hsehld Occupants
Rec'd Sbsdy Income
(BxE) (CxE)

--------------------------------------
--------------------------------------
--------------------------------------
--------------------------------------
--------------------------------------
--------------------------------------
--------------------------------------
--------------------------------------
--------------------------------------
--------------------------------------
--------------------------------------
75..80....+...90....+....0....+...10..



(c) At any time during the term of the loan and upon reasonable notice, the department may enter and inspect the physical premises and inspect all accounting records pertaining to the rehabilitation or operation of the rental housing development.
(d) The department may perform or cause to be performed audits of any and all phases of the sponsor's activities related to the project. At the department's request, the sponsor shall provide, at its own expenses, an audit of the financial condition of the project prepared by a certified public accountant.


Note: Authority cited: Section 50668.5, Health and Safety Code. Reference: Section 50668.5, Health and Safety Code.








s 7696. Operating Budget.
(a) Prior to loan closing, the sponsor shall provide the department an initial operating budget for its approval. Such budget shall show all anticipated income and expenses for management, operations, and maintenance for the first year and the projected debt service coverage ratio.
(b) Sixty days prior to the end of each fiscal year, the sponsor shall submit to the department a proposed operating budget for its approval. The proposed operating budget shall set forth the sponsor's estimate of the project's operating income, operating expenses, debt service for the upcoming year, and any proposed rent increases pursuant to section 7683.
(c) The initial operating budget and subsequent proposed operating budgets shall include:
(1) annual deposits to a replacement reserve account for capital improvements such as replacing structural elements, furniture, fixtures, or equipment of the rental housing development which are reasonably required to preserve the project; and
(2) an operating reserve account in an amount sufficient to offset operating shortfalls.


Note: Authority cited: Section 50668.5, Health and Safety Code. Reference: Sections 50668.5 and 50670, Health and Safety Code.








s 7697. Residual Receipts Account.
(a) The department shall establish a residual receipts account in the fund. Two percent of any allocation made to the fund shall be deposited into the account. Excess funds returned to the department pursuant to section 7684(f) shall be deposited into the account to replace the allocated funds in the account on a dollar for dollar basis. Funds so replaced shall remain in the fund available for loans pursuant to this subchapter.
(b) The department shall maintain a reserve in the account in an amount equal to two percent of all allocations to the fund for the purpose of avoiding or curing defaults pursuant to section 7693(e).
(c) When funds in the account exceed the two percent default reserve required pursuant to subdivision (b), the department may advance funds from the account for the following:
(1) payment of the cost of unforeseen capital improvements necessary to preserve fiscal integrity and maintain affordable rents; and
(2) reduction of rents of assisted units.
(d) All funds advanced pursuant to subdivision (c) shall be part of the deferred payment loan to the sponsor and subject to the same interest rate and terms of repayment.


Note: Authority cited: Section 50668.5, Health and Safety Code. Reference: Section 50668.5, Health and Safety Code.








s 7700. Introduction.


Note: Authority cited: Sections 50406(n) and 50701, Health and Safety Code. Reference: Sections 50700-50706, Health and Safety Code.





s 7702. Definitions.


Note: Authority cited: Sections 50406(n) and 50701, Health and Safety Code. Reference: Sections 50700-50706, Health and Safety Code.








s 7704. Program Requirements.









s 7706. Loan Requirements.


Note: Authority cited: Sections 50406(n) and 50701, Health and Safety Code. Reference: Sections 50700-50706, Health and Safety Code.








s 7708. Disbursements for Specified Sites.


Note: Authority cited: Sections 50406(n) and 50701, Health and Safety Code. Reference: Sections 50701, 50702 and 50704, Health and Safety Code.








s 7710. Disbursements for Unspecified Sites.


Note: Authority cited: Sections 50406(n) and 50701, Health and Safety Code. Reference: Sections 50701, and 50703, Health and Safety Code.








s 7712. Reports and Term.


Note: Authority cited: Sections 50406(n) and 50701, Health and Safety Code. Reference: Sections 50701, 50703 and 50706 Health and Safety Code.








s 7714. Termination and Repayment.


Note: Authority cited: Sections 50406(n) and 50701, Health and Safety Code. Reference: Sections 50701-50704, Health and Safety Code.








s 7714.5. Application Review.


Note: Authority cited: Sections 50407 (n) and 50701, Health and Safety Code. Reference: Sections 50701-50704, Health and Safety Code.








s 7715. Purpose and Scope.
(a) These regulations implement and interpret Chapter 6 (commencing with Section 50650) of Part 2 of Division 31, Health and Safety Code, which establishes the CalHome Program.
(b) These regulations establish terms, conditions and procedures for the award and disbursement of funds allocated to the CalHome Program.


Note: Authority cited: Sections 50406(n), 50650.2 and 50650.7, Health and Safety Code. Reference: Sections 50650.3, 50650.4, 50650.5 and 50650.7, Health and Safety Code.








s 7716. Definitions.
In addition to the definitions found in Chapter 2 (commencing with Section 50050) of Part 1 of Division 31 of the Health and Safety Code, the following definitions shall apply to this subchapter. References to code sections refer to the sections of these regulations unless otherwise noted.
(a) "Affordable" as it describes a specific financial obligation, means that obligation can be paid by the person or household, along with all of other financial responsibilities, without endangering the financial stability of the household.
(b) "After-rehabilitation value" means the appraised value of the property including completed rehabilitation work.
(c) "Applicant" is the locality or nonprofit corporation, which submits an application to the Department to operate a local program, develop a homeownership project, or provide self-help technical assistance to a homeownership project. (continued)