1. (a) Sponsors of projects where more than 80 percent of all units are assisted units must provide equity in an amount not less than ten percent of total development costs, excluding costs of syndication. Sponsors of other projects shall not be subject to any minimum equity requirement.

2. (b) Equity, for purposes of this subdivision, includes cash and land, whether contributed by the sponsor from its own resources or granted to the sponsor by another party. Equity also includes other items of monetary value contributed by the sponsor and applied towards project costs, including

   1. (1) personal property;
   2. (2) the capitalized value of any exemption from local taxes on real property. The amount of the exemption shall be established by the department prior to loan closing based on its estimate of the probable assessed value of the rental housing development and its interpretation of state law governing eligibility for exemptions, as set forth in Revenue and Taxation Code section 214, et seq.; and
   3. (3) the value of any administrative expenses not funded by the program, but which would have been eligible for funding pursuant to section 8085(d).

Note: Authority cited: Section 50771.1, Health and Safety Code. Reference: Section 50771.1, Health and Safety Code.

History

1. New section filed 12-29-89 as an emergency; operative 12-29-89 (Register 90, No. 3). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 4-30-90.

2. New section refiled 4-26-90 as an emergency; operative 4-26-90 (Register 90, No. 23). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 8-24-90.

3. New section refiled 8-27-90 as an emergency; operative 8-27-90 (Register 90, No. 42). A Certificate of Compliance must be transmitted to OAL by 12-26-90 or emergency language will be repealed by operation of law on the following day.

4. New section refiled 12-19-90 as an emergency pursuant to Health and Safety Code section 50771.3; operative 12-19-90 (Register 91, No. 4). A Certificate of Compliance must be transmitted to OAL by 4-18-91 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 12-19-90 order transmitted to OAL 1-4-91; disapproved by OAL 2-4-91 (Register 91, No. 13).

6. New section refiled 2-20-91 as an emergency; operative 2-20-91 (Register 91, No. 13). A Certificate of Compliance must be transmitted to OAL by 6-17-91 or emergency language will be repealed by operation of law on the following day.

7. Certificate of Compliance as to 6-14-91 order including amendment of subsection (b) transmitted to OAL 5-15-91 and filed 6-14-91 (Register 91, No. 38).