the cap because the investor fee is generally investor and sponsor fees, especially since this this amount is subject to an annual escalator and applies only to payments made on a priority basis. SF Use local government per §8315(c) (3) as the HCD agrees that local government more “total assistance” “total assistance” base for calculating percentage split, and include local operating accurately captures the contributions made by local governments, subsidies. which are not limited to loans, and has revised subsection (a)(2)(A) accordingly. By this same logic, the measure of HCD assistance has also been expanded, to include grants as well as loans. HCD disagrees with the notion that operating subsidy contracts should be factored into the equation. Operating subsidy contracts are typically structured to create breakeven operation, leaving no residual payments to allocate. In addition, and in contrast to development assistance, there is not a general expectation that operating subsidies will be used as a mechanism to direct excess cash flow back to the public subsidy sources. SF Allow more than $30,000 for combined asset management See response to second BH comment above. and partnership fees, to align with local policies, and defer to these policies, as allowed under the existing regulations. For clarity, in the HCD concluded that this reference is unnecessary, and is now define “otherwise permitted payments” second sentence of subsection (c). proposing to delete it. (The provision allowing priority payment of accrued fees has been moved to (a)(1)(b)(II).) SA Count local contributions in the form of air rights leases, as The reference to ground leases has been deleted, and well as ground leases. replaced with a reference total local government assistance, which is defined in Section §8315 in a manner that does not exclude air rights leases. Subsection (a)(2)(B) has been revised to allow adjustment Allow the 50% sponsor share to be adjusted downward to based on leases as well as loans. be consistent with local agency lease terms, as well as loan terms.
the cap because the investor fee is generally investor and sponsor fees, especially since this this amount is subject to an annual escalator and applies only to payments made on a priority basis. SF Use “total local government assistance” per §8315(c) (3) as the base for calculating percentage split, and include local operating subsidies. HCD agrees that “total local government assistance” more accurately captures the contributions made by local governments, which are not limited to loans, and has revised subsection (a)(2)(A) accordingly. By this same logic, the measure of HCD assistance has also been expanded, to include grants as well as loans. HCD disagrees with the notion that operating subsidy contracts should be factored into the equation. Operating subsidy contracts are typically structured to create breakeven operation, leaving no residual payments to allocate. In addition, and in contrast to development assistance, there is not a general expectation that operating subsidies will be used as a mechanism to direct excess cash flow back to the public subsidy sources. SF Allow more than $30,000 for combined asset management and partnership fees, to align with local policies, and defer to these policies, as allowed under the existing regulations. For clarity, define “otherwise permitted payments” in the second sentence of subsection (c). See response to second BH comment above. HCD concluded that this reference is unnecessary, and is now proposing to delete it. (The provision allowing priority payment of accrued fees has been moved to (a)(1)(b)(II).) SA Count local contributions in the form of air rights leases, as well as ground leases. Allow the 50% sponsor share to be adjusted downward to be consistent with local agency lease terms, as well as loan terms. The reference to ground leases has been deleted, and replaced with a reference total local government assistance, which is defined in Section §8315 in a manner that does not exclude air rights leases. Subsection (a)(2)(B) has been revised to allow adjustment based on leases as well as loans.