California Code of Regulations
Title 25 - Housing and Community Development
Division 1 - Housing and Community Development
Chapter 7 - Department of Housing and Community Development Programs
Subchapter 5.5 - Special User Housing Rehabilitation Program
Section 7462 - Regulatory Agreement

(a) standards for tenant selection to ensure occupancy by eligible households;

(b) a rent schedule established by the Department at levels affordable to low income households to the extent consistent with the financial integrity of the rental housing development;

(c) conditions and procedures for permitting rent increases;

(d) limitations on profits allowed for-profit and limited-profit sponsors to a fair rate of return. No return shall be allowed non-profit and public entity sponsors;

(e) assurances that the sponsor will maintain the rental housing development in a safe and sanitary condition in compliance with state and local housing codes;

(f) conditions and a schedule for reporting to the Department by the sponsor;

(g) conditions relating to Departmental review and inspections;

(h) a schedule for project implementation, including a timetable for ownership of the rental housing development, commencement of rehabilitation work, and occupancy of the project by eligible households;

(i) conditions relating to completion of rehabilitation work, fund disbursements, and reporting of progress;

(j) provisions relating to the term and amount of the loan, repayment to the Fund, payment of interest, assumptions of the loan, refinancing and sale of the rental housing development;

(k) terms and conditions with respect to default, late repayment and collection of loans;

(l) terms and conditions relating to breach of the regulatory agreement and remedies therefore;

(m) provisions regulating the terms of the occupancy agreement between the sponsor and tenants of the rental housing development, including terms requiring good cause for any eviction, the establishment of a grievance procedure for hearing complaints of tenants and providing for notice to tenants of proposed rent increases;

(n) provisions ensuring that the relocation requirements of Section 50670(g) of the Health and Safety Code will be adhered to;

(o) provisions requiring the approval of the Department for all general contracts for approved rehabilitation work; such contracts shall include provisions which require, pursuant to state or federal law, the use of affirmative action in hiring by contractors and subcontractors;

(p) provisions limiting encumbrances against the rental housing development without prior Department approval;

(q) provisions relating to a replacement reserve;

(r) provisions relating to requirements for proper management of the rental housing development, including approval by the Department for any management contract or master lease; and

(s) other provisions necessary to assure compliance with the intent of the program.