Section 50562 Of Chapter 3.9. Portfolio Restructuring From California Health And Safety Code >> Division 31. >> Part 2. >> Chapter 3.9.
50562
. (a) If a department loan is extended or subordinated, the
department approves the reinstatement of a qualifying unpaid matured
loan, or a new tax credit investment occurs, then the department
shall enter into a new regulatory agreement with the development's
owner, or amend the existing agreement. The agreement shall be
binding upon the development's owner and successors in interest upon
sale or transfer of the development property, regardless of any
prepayment of the loan. The agreement shall be recorded in the office
of the county recorder in the county in which the development is
located. The new or amended regulatory agreement shall:
(1) Set standards for tenant selection to ensure occupancy by the
eligible households.
(2) Govern the terms of occupancy agreements.
(3) Restrict rents for assisted units, consistent with this
chapter.
(4) Provide for periodic inspections by the department.
(5) Require occupancy and financial reports, and financial audits
for the development.
(6) Govern the use of operating income for the development.
(7) Govern the use of reserves for the development.
(8) Have a term for not less than the term of the loan, including
any extension.
(9) Include other provisions necessary to carry out the purposes
of this chapter.
(b) The development's owner shall agree to replace or amend any
other loan document to accomplish the purposes of this chapter.