Section 50746 Of Article 2. Rental Construction Incentive Program From California Health And Safety Code >> Division 31. >> Part 2. >> Chapter 9. >> Article 2.
50746
. Each contract pursuant to Section 50745 shall be recorded or
referenced in a recorded document in the office of the county
recorder of the county in which the rental housing development is
located, and shall be indexed by the recorder in the grantor index to
the name of the sponsor and in the grantee index to the name of the
State of California. The contract shall contain at least the
following provisions:
(a) The amount and terms of payments to be provided under this
article, including specific items to be covered by such payments.
(b) A description of the way in which the payments will be used to
provide affordable rents to eligible households occupying assisted
units within the rental housing development.
(c) Projected rent levels for all units, and the number of units
to be occupied by eligible households.
(d) Requirements for payment of prevailing wage rates on
construction.
(e) A requirement for a periodic report to be made at least
annually by the agency or local finance entity which shall include,
at a minimum, information on the fiscal condition of the rental
housing development, the maintenance of such development, and the
number of units occupied by eligible households.
(f) A provision for department approval prior to the execution of
the terms of the regulatory agreement to be entered into between the
sponsor and the agency or local finance entity pursuant to Section
50749.
(g) A provision that failure to operate the rental housing
development in accordance with the regulatory agreement shall be
deemed a violation of the regulatory agreement or deed of trust, as
the case may be. In the alternative or in addition, the contract may
contain a lien on the rental housing development for the purpose of
securing performance of the agreement. Such lien shall include a
legal description of the assisted real property which is subject to
the lien and shall specify the duration of the lien upon the assisted
real property.
(h) Standards which govern selection of tenants by housing
sponsors to ensure occupancy by eligible households consistent with
the requirements of Sections 50736 and 50739 and the terms of
occupancy agreements to be used in rental housing developments.
(i) Provisions sufficient to ensure that dwelling units in the
rental housing development available to and occupied by eligible
households in accordance with Section 50736 and in accordance with
the written agreement required by Section 50739 remain available to
such households for a period of not less than 30 years or the
duration of the long-term financing, whichever is greater.
(j) Provisions which specify the timing and manner in which
payments are made by the department so as to ensure the economic
feasibility of the rental housing development and to protect the
interests of the state.
(k) A provision making the covenants and conditions of the
contract binding upon successors in interest of the sponsor.
( l) When the sponsor is not a nonprofit housing sponsor or a
local public entity, a provision limiting distribution of the sponsor'
s earnings to an annual amount no greater than 6 percent of the
sponsor's actual investment (excluding unaccrued liabilities of the
sponsor) in the rental housing development. The department may allow
an earnings distribution of no greater than 10 percent on a
nonelderly rental housing development if the department finds it
necessary to do so to fulfill the requirements of Section 50736. With
respect to such nonelderly rental housing developments, the
department may adopt regulations consistent with this section
governing the conditions under which an earnings distribution over 6
percent but not to exceed 10 percent may be allowed.
(m) A provision which specifies the conditions under which the
department and agency may enforce the regulatory agreement with
respect to a rental housing development financed by the agency.
(n) Provisions necessary for the administration, disbursement, and
protection of annuity fund payments including provisions specifying
the conditions under which the department may recover or reallocate
all or any part of such payments for the benefit of eligible
households in existing or additional assisted units.
(o) Provisions (1) governing the recovery and reallocation by the
department of rent revenues derived by the sponsor from the assisted
units and which are not necessary to defray costs of operation
attributable to such units and (2) specifying the return on the
sponsor's investment pursuant to subdivision (b). Such rent revenue
shall be handled by the department in the same manner as annuity
payments recovered pursuant to subdivision (n).
(p) Authorization for the agency or local finance entity to fix
and alter rents pursuant to the provisions of subdivision (c) of
Section 50749.
(q) Any other provisions necessary to carry out the purposes and
to exercise the powers granted by this chapter.