CalHFA provides financing for multifamily projects through the sale of its tax-exempt revenue bonds. As required by Internal Revenue Code, the operation and management of each project financed through the issuance of tax-exempt bonds must be monitored throughout the Qualified Project Period to ensure compliance with the applicable provisions of State and federal law and with the Regulatory Agreement.
The agency oversees the multifamily projects in order to preserve their value, provide long term, quality affordable housing to tenants, protect the agency's assets and bondholder's investments. The project owners and agents are subject to the Regulatory Agreement and all other Loan Documents related to the project.
The California Department of Housing and Community Development (HCD) and the California Housing Finance Agency (CalHFA) have launched a joint Audited Financial Statements Handbook for projects administered under both Departments either jointly or individually. Audits submitted to HCD or CalHFA after July 1, 2013 must adhere to this joint Audited Financial Statements Handbook. Audits are still required to be submitted to both HCD and CalHFA for jointly funded projects and to the respective department for individually funded projects.
CalHFA Regulatory Agreement requires the submission of an annual operating budget. The annual budget anticipates income, operating expenses and capital improvements for the project. The budget serves as a financial operating plan and helps determine the need for a rent adjustment. Owners and Agents should refer to the project's Regulatory Agreement for specific requirement.
CalHFA offers tax-exempt financing to multifamily rental projects in which at least 20% of the units are set aside for low-income household for a specific period of time under the "80/20" program. Under the 80/20 program, the agency has two types of projects: Pre 1986 and Post 1986.