Section 10-B5801. RESTRICTIONS ON SECURITY DEPOSIT ASSISTANCE

 

5801.1No security deposit assistance shall be provided to the applicant if:

 

(a)Other financial assistance meeting the requirements of the applicant is available on reasonable terms from private sources; or

 

(b)Other financial assistance meeting the requirements of the applicant is available on reasonable terms from federal or District of Columbia government sources.

 

5801.2No security deposit assistance shall be provided to the applicant if the Mayor determines that there exists a reasonable expectation that the Qualified High Technology Company will not perform the covenants and conditions of the lease or any other pertinent agreement.

 

5801.3No security deposit assistance may be provided for a lease the term of which is less than 6 months.

 

5801.4The maximum security deposit assistance that may be provided to any one applicant shall be limited to the least of:

 

(a)10 percent of the retained earnings of the applicant;

 

(b)50% of the amount of the security deposit; or

 

(c)$50,000.

 

5801.5Any security deposit assistance granted to an applicant must be repaid to the District by or on behalf of the grantee no later than two years after the date the security deposit assistance is paid by the District to the recipient designated by the applicant.

 

5801.6The agreement to repay any security deposit assistance provided shall require that:

 

(a)Any amounts released from the security deposit shall first be used to repay the funds advanced by the District;

 

(b)The Qualified High Technology Company shall not receive any portion of the security deposit until the funds advanced by the District have been repaid in full;

 

(c)The funds advanced by the District be repaid in no more than two years following the date on which the funding was approved;

 

(d)Any claims or interests in the security deposit are subordinated to that of the District of Columbia government; and

 

(e)There shall have been no material change in the applicant's financial condition from the information provided in the application.

 

5801.7The Mayor may enter into any other agreements deemed necessary by the Mayor to secure repayment of any security deposit assistance provided under these regulations, including, but not limited to, agreements described in section 5809.

 

5801.8No Qualified High Technology Company may receive the security deposit assistance described in this section more than once.

 

source

Final Rulemaking published at 49 DCR 7502(August 2, 2002).