1. (a) Local entities that are eligible to receive funds for administrative costs of operating the program are limited to:

   1. (1) Local public entities that are not jurisdictions designated as entitlement grantees under HUD's Community Development Block Grant program, and that will operate the program and make loans in rural areas.
   2. (2) Nonprofit corporations that will operate the program and make loans in rural areas.
2. (b) The Department may provide grant funds to eligible local entities for costs of administering the program in an amount up to 15 percent of the total loan commitment from the Fund.

3. (c) Eligible costs may include, but are not limited to, personal services, operating expenses, and rental of equipment. Proposed items of administration and other costs shall be set forth in the application. Only those costs specifically approved by the Department may be reimbursed from the Fund. Administrative costs will be accounted for on a direct cost basis unless an indirect cost rate has been approved by the Department.

   1. (1) Personal services include:

      1. (A) Staff salaries, wages and benefits; and
      2. (B) Contract services in administration of the program.

   2. (2) Operating expenses and equipment include:

      1. (A) Office supplies, printing and copying and telephone charges;
      2. (B) Travel;
      3. (C) Office rent and utilities related to the program operation;
      4. (D) Rented office equipment; and
      5. (E) Insurance and fidelity bonds.
4. (d) Ineligible costs include costs to be included in loans to borrowers as set forth in Section 7414(b).

The following conditions shall apply to awards for related administrative costs.

Note: Authority cited: Section 50662, Health and Safety Code. Reference: Sections 50661, 50662 and 50663, Health and Safety Code.

History

1. Amendment filed 10-2-81; effective thirtieth day thereafter (Register 81, No. 40).

2. Amendment of subsections (c) and (e) filed 11-2-82; effective thirtieth day thereafter (Register 82, No. 45).

3. Amendment of subsection (d) filed 6-3-85; effective thirtieth day thereafter (Register 85, No. 23).