Health and Safety Code — Part 77 | HSC — United States — California law | Esheria

Health and Safety Code

Part 77 of 87 · provisions 15,201–15,400

This section says the act is to be known as the Health and Safety Code.

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The Legislature states findings supporting a unified, single-payer-style health care financing system for all Californians. The State Department of Health Services is renamed the State Department of Health Care Services, and its retained functions continue with the renamed department. The Director of Health Care Services is appointed by the Governor with Senate confirmation, the director receives a salary set by law, and the Governor may appoint up to two chief deputies on the director’s recommendation. The director has the powers of a department head under the cited Government Code chapter. The Department of Health Services has a Division of Rural Health, and that division must administer specified chapters and sections.

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Provisions of Health and Safety Code

Showing 200 of 17,333

  1. 50650.1.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6. CalHome Program [50650 - 50650.8] ( Chapter 6 added by Stats. 2000, Ch. 84, Sec. 2. )

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    This chapter is called the CalHome Program and may be cited by that name.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6. CalHome Program [50650 - 50650.8] ( Chapter 6 added by Stats. 2000, Ch. 84, Sec. 2. ) ## 50650.1. This chapter shall be known and may be cited as the CalHome Program. (Added by Stats. 2000, Ch. 84, Sec. 2. Effective January 1, 2001.)
  2. 50650.2.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6. CalHome Program [50650 - 50650.8] ( Chapter 6 added by Stats. 2000, Ch. 84, Sec. 2. )

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    The department must administer this chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6. CalHome Program [50650 - 50650.8] ( Chapter 6 added by Stats. 2000, Ch. 84, Sec. 2. ) ## 50650.2. The department shall administer this chapter. (Added by Stats. 2000, Ch. 84, Sec. 2. Effective January 1, 2001.)
  3. 50650.3.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6. CalHome Program [50650 - 50650.8] ( Chapter 6 added by Stats. 2000, Ch. 84, Sec. 2. )

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    This section directs CalHome funds toward helping low- and very low-income households become or remain homeowners and toward disaster relief, and it sets rules for how grants and loans may be used.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6. CalHome Program [50650 - 50650.8] ( Chapter 6 added by Stats. 2000, Ch. 84, Sec. 2. ) ## 50650.3. (a) Funds appropriated for purposes of this chapter shall be used to enable low- and very low income households to become or remain homeowners as provided in paragraphs (1) and (2), and to provide disaster relief assistance to households at or below 120 percent of the area median income as provided in paragraph (3). Funds shall be provided by the department to local public agencies or nonprofit corporations as any of the following: (1) Grants for programs that assist individual households. (2) Loans that assist development projects involving multiple home ownership units, including single-family subdivisions. (3) Grants for programs that assist individual households as provided in subdivision (d). (b) (1) Grant funds may be used for any of the following: (A) Programs that assist individual households with first-time homebuyer mortgage assistance. (B) Home rehabilitation, including the installation or retrofit of ignition resistant exterior components on existing manufactured homes, mobilehomes, and accessory structures required pursuant to Article 2.3 (commencing with Section 4200) of Subchapter 2 of Chapter 3 of Division 1 of Title 25 of the California Code of Regulations. (C) Homebuyer counseling. (D) Home acquisition and rehabilitation. (E) Construction, repair, reconstruction, or rehabilitation, in whole or in part, of accessory dwelling units, as defined in subdivision (a) of Section 66313 of the Government Code, or junior accessory dwelling units, as defined in subdivision (d) of Section 66313 of the Government Code. (F) Self-help mortgage assistance programs. (G) Technical assistance for self-help and shared housing home ownership. (2) Home rehabilitation funding for the purpose of installing ignition resistant components on manufactured homes, mobilehomes, or accessory structures pursuant to this subdivision shall not be conditioned upon the rehabilitation of additional or unrelated home components unless that rehabilitation is required pursuant to Article 2.3 (commencing with Section 4200) of Subchapter 2 of Chapter 3 of Division 1 of Title 25 of the California Code of Regulations. In administering funding for this purpose, local public agencies and nonprofit corporations may consider the condition and age of the manufactured home or mobilehome, including whether the home was constructed on or after June 15, 1976, in accordance with federal standards and whether the available funds could be more effectively used to replace the manufactured home or mobilehome. (3) Except as provided in paragraph (4), financial assistance provided to individual households shall be in the form of deferred payment loans, repayable upon sale or transfer of the homes, when they cease to be owner-occupied, or upon the loan maturity date. Financial assistance may be provided in the form of a secured forgivable loan to an individual household to rehabilitate, repair, or replace manufactured housing located in a mobilehome park and not permanently affixed to a foundation. The loan shall be due and payable in 20 years, with 10 percent of the original principal to be forgiven annually for each additional year beyond the 10th year that the home is owned and continuously occupied by the borrower. Not more than 10 percent of the funds available for the purposes of this chapter in a fiscal year shall be used for financial assistance in the form of secured forgivable loans. (4) Notwithstanding any other law, the department may, in its discretion, permit the mortgage assistance loan to be subordinated to refinancing if it determines that the borrower has demonstrated hardship, subordination is required to avoid foreclosure, and the new loan meets the department’s underwriting requirements. The department may permit subordination on those terms and conditions as it determines are reasonable, however subordination shall not be permitted if the borrower has sufficient equity to repay the loan. (5) All loan repayments shall be used for activities allowed under this section, and shall be governed by a reuse plan approved by the department. Those reuse plans may provide for loan servicing by the grant recipient or a third-party local government agency or nonprofit corporation. (6) Notwithstanding paragraph (3), loans provided pursuant to the CalHome Program Disaster Assistance for Imperial County that have been made for the purpose of rehabilitation, reconstruction, or replacement of lower income owner-occupied manufactured homes shall be due and payable in 10 years, with 20 percent of the original principal to be forgiven annually for each additional year beyond the fifth year that the manufactured home is owned and continuously occupied by the borrower. (c) (1) Except as provided in paragraph (6) of subdivision (b), loan funds may be used for purchase of real property, site development, predevelopment, construction period expenses incurred on home ownership development projects, and permanent financing for mutual housing or cooperative developments. (2) Units within home ownership development projects that receive CalHome funds shall initially be sold to, and occupied by, a lower income household, as defined in Section 50079.5. (3) Ownership units shall initially be sold to and occupied by a qualified household and shall be subject to a recorded covenant for at least 30 years that includes one or more of the following: (A) A resale restriction. (B) Recapture of the CalHome funds upon resale. (C) Equity sharing upon resale. (4) Upon completion of construction, the department may convert project loans into grants. (5) For home ownership development projects that include construction of accessory dwelling units or junior accessory dwelling units, neither this chapter nor any administrative rule or guideline implementing the CalHome Program precludes those dwelling units from being separately conveyed to separate lower income households on separate parcels created pursuant to Section 66411, 66411.1, or 66411.5 of the Government Code, as applicable. (d) Notwithstanding any other provision of this chapter, the department may use funds appropriated pursuant to this chapter to make grants to local agencies or nonprofit corporations to assist households at or below 120 percent of the area median income that are victims of a disaster, if one of the following occurs with respect to the county in which the household’s residence is located: (1) The Governor has proclaimed a state of emergency, pursuant to Section 8625 of the Government Code, resulting from a disaster, as defined in Section 8680.3 of the Government Code. (2) A special appropriation of federal emergency supplemental assistance or a presidential declaration of disaster has occurred. (e) The department shall review, adopt, amend, and repeal guidelines to implement the making of grants pursuant to subparagraph (E) of paragraph (2) of subdivision (b) and making grants pursuant to subdivision (d). Any guidelines adopted to implement subparagraph (E) of paragraph (2) of subdivision (b) and subdivision (d) shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. In the event of inconsistency regarding the requirements of qualified applicants and eligibility of accessory dwelling units and junior accessory dwelling units, and rents associated with them between those guidelines and any regulations otherwise enacted pursuant to this chapter, those guidelines shall prevail. (f) The changes made to this section by the act adding this subdivision shall be implemented by the department into program guidelines and notices of funding availability released after December 31, 2024. (Amended by Stats. 2024, Ch. 7, Sec. 27. (SB 477) Effective March 25, 2024.)
  4. 50650.35.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6. CalHome Program [50650 - 50650.8] ( Chapter 6 added by Stats. 2000, Ch. 84, Sec. 2. )

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    When allocating CalHome grants for new home ownership construction, the department must consider higher per-unit and project allocations, especially where local development costs justify it.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6. CalHome Program [50650 - 50650.8] ( Chapter 6 added by Stats. 2000, Ch. 84, Sec. 2. ) ## 50650.35. (a) In allocating grants to local public agencies or nonprofit corporations for new construction of home ownership units, the department shall consider setting higher per-unit and total project allocations based on local development costs when appropriate. (b) The department shall consider adjustments to the maximum unit and project allocations for each new round of funding for new construction of home ownership units. (Added by Stats. 2022, Ch. 207, Sec. 1. (AB 2217) Effective January 1, 2023.)
  5. 50650.4.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6. CalHome Program [50650 - 50650.8] ( Chapter 6 added by Stats. 2000, Ch. 84, Sec. 2. )

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    Local public agencies and nonprofit corporations must show organizational stability and capacity to qualify for a grant or loan, and they cannot change CalHome underwriting guidelines or reject applications on the listed housing-type or location grounds without the required department review and approval.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6. CalHome Program [50650 - 50650.8] ( Chapter 6 added by Stats. 2000, Ch. 84, Sec. 2. ) ## 50650.4. (a) To be eligible to receive a grant or loan, local public agencies or nonprofit corporations shall demonstrate sufficient organizational stability and capacity to carry out the activity for which they are requesting funds, including, where applicable, the capacity to manage a portfolio of individual loans over an extended time period. Capacity may be demonstrated by substantial successful experience performing similar activities, or through other means acceptable to the department. In administering the CalHome program, the department may permit local agencies and nonprofit corporations to apply their own underwriting guidelines when evaluating CalHome rehabilitation loan applications, following prior review and approval of those guidelines by the department. The local agency or nonprofit corporation shall not subsequently alter its underwriting guidelines with respect to the use of CalHome funds without review and approval by the department, including how the local agencies and nonprofit corporations will ensure participation by low-income households if making loans in response to a disaster as described in paragraph (1) of subdivision (g) of Section 50650.3. In allocating funds, the department shall utilize a competitive application process, using weighted evaluation criteria, including, but not limited to, the extent that the program or project utilizes volunteer or self-help labor, trains youth and young adults in construction skills, creates balanced communities, involves community participation, or whether the program or project contributes toward community revitalization. To the extent feasible, the application process shall ensure a reasonable geographic distribution of funds. (b) In administering department funds received pursuant to subdivision (a), local public agencies and nonprofit corporations shall not deny the funding application of, or apply different underwriting guidelines to, a housing program or project solely on the basis of either of the following: (1) The home is a manufactured home or mobilehome, as defined in Sections 18007 and 18008. (2) The home is located in a mobilehome park or in a manufactured housing community, as defined in Sections 18210.7 and 18214. (Amended by Stats. 2019, Ch. 159, Sec. 17. (AB 101) Effective July 31, 2019.)
  6. 50650.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6. CalHome Program [50650 - 50650.8] ( Chapter 6 added by Stats. 2000, Ch. 84, Sec. 2. )

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    This section sets rules for CalHome assistance for mutual housing, community land trusts, and limited equity cooperatives, including financing limits and development requirements.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6. CalHome Program [50650 - 50650.8] ( Chapter 6 added by Stats. 2000, Ch. 84, Sec. 2. ) ## 50650.5. For the purposes of this chapter, all of the following shall apply: (a) Mutual housing, community land trusts, and limited equity cooperative housing shall be deemed to be forms of home ownership and developments of those types of housing, as defined in subdivision (b), shall be eligible to receive assistance under the CalHome Program. The department may require that mutual housing, community land trust, or limited equity cooperative applicants not simultaneously apply for and receive funding through the department’s rental housing programs for the same projects for which CalHome assistance is sought. For mutual housing, community land trust projects that do not convey an interest in real estate to the homebuyer, and limited equity cooperative projects, all of the following shall apply: (1) Program funds shall be used for permanent financing only. (2) The department shall enter into a regulatory agreement limiting occupant incomes, occupancy charges, and share purchase terms for 55 years. (3) Notwithstanding Section 50650.3, program assistance shall be provided in the form of a deferred payment loan. (b) As used in this section, “mutual housing development” means a housing development owned and sponsored by a nonprofit corporation or a limited partnership in which the nonprofit corporation is the sole general partner, and all of the following requirements are met: (1) The nonprofit corporation is exempt from taxes under Section 501(c)(3) of the Internal Revenue Code or subdivision (b) of Section 23701 of the Revenue and Taxation Code. (2) The nonprofit corporation has as one of its principal purposes the advancement of mutual housing. (3) A majority of the board of directors of the nonprofit corporation sponsor are residents or former residents of developments sponsored by the nonprofit corporation. (4) The nonprofit corporation agrees to assist the residents of the development in setting up a resident council, and the operating budget for the development provides for ongoing financial support to allow the resident council to carry out its activities. (c) Lower income participants in a qualified mutual housing development that is assisted pursuant to this chapter shall not be required to have a vested ownership interest in the property. (d) (1) Funds provided under this chapter may be used to finance either of the following: (A) The purchase of land beneath a manufactured home or mobilehome by the owner of the home. (B) The purchase of both the land beneath a manufactured home or mobilehome and the home. (2) (A) A loan to purchase a subdivided lot in a manufactured housing community or mobilehome park, or both a subdivided lot and the manufactured home or mobilehome that is located on the lot, may be secured either by the land alone or by both the land and the manufactured home or mobilehome. (B) A loan to purchase an interest in an entity that owns a manufactured housing community or mobilehome park may be secured by an interest in the entity, a manufactured home, or a mobilehome, or both an interest in the entity and the home. (3) A manufactured home or mobilehome shall not be required to be placed on a permanent foundation as a condition of receiving financing under this chapter. (4) Funds provided under this chapter shall not be used for a loan to purchase the first lot or space in a manufactured housing community or mobilehome park at the time of the initial conversion of the park to resident ownership unless the conversion meets the two-thirds signature requirement in subdivision (a) of Section 66428.1 of the Government Code, or the transfer of the park to resident ownership has qualified for the change of ownership exclusion under Section 62.1 of the Revenue and Taxation Code. (5) For purposes of this subdivision, “land beneath a manufactured home or mobilehome” means either a subdivided lot in a manufactured housing community or mobilehome park or a membership, share, certificate, or other interest in the entity that owns the manufactured housing community or mobilehome park, including, but not limited to, a limited equity cooperative, community land trust, or mutual housing association. (e) Subdivision (a) shall not apply to the financing of an interest in a manufactured housing community or mobilehome park that is organized as mutual housing or a limited equity cooperative. (f) For purposes of this section, “community land trust” has the same definition as that term is defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code, as amended by the act adding this subdivision. (Amended by Stats. 2024, Ch. 580, Sec. 3. (AB 2897) Effective January 1, 2025.)
  7. 50650.6.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6. CalHome Program [50650 - 50650.8] ( Chapter 6 added by Stats. 2000, Ch. 84, Sec. 2. )

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    The department may spend up to 5% of the funds for this chapter on administering the program.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6. CalHome Program [50650 - 50650.8] ( Chapter 6 added by Stats. 2000, Ch. 84, Sec. 2. ) ## 50650.6. The department may use up to 5 percent of the funds appropriated for the purposes of this chapter for its costs in administering the program. (Added by Stats. 2000, Ch. 84, Sec. 2. Effective January 1, 2001.)
  8. 50650.7.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6. CalHome Program [50650 - 50650.8] ( Chapter 6 added by Stats. 2000, Ch. 84, Sec. 2. )

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    The department may administer CalHome funds by guidelines, with different APA treatment depending on whether an appropriation is $15 million or less or exceeds that amount.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6. CalHome Program [50650 - 50650.8] ( Chapter 6 added by Stats. 2000, Ch. 84, Sec. 2. ) ## 50650.7. For appropriations of fifteen million dollars ($15,000,000) or less, the department may administer the funds using guidelines that shall not be subject to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2 of the Government Code). If an appropriation exceeds that amount, the department may administer the funds using guidelines for 24 months, during which time those guidelines shall not be subject to the Administrative Procedure Act. The guidelines and any regulations governing the CalHome Program shall include, among other things, loan terms and limits, underwriting standards, home price limits, application procedures and selection criteria, loan and grant documentation requirements, and monitoring requirements. (Added by Stats. 2000, Ch. 84, Sec. 2. Effective January 1, 2001.)
  9. 50650.8.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6. CalHome Program [50650 - 50650.8] ( Chapter 6 added by Stats. 2000, Ch. 84, Sec. 2. )

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    This section defines “local public agencies” and “local government agencies” to include certain tribal governing bodies and tribally designated housing entities, and defines “nonprofit corporations” to include tribally designated housing entities.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6. CalHome Program [50650 - 50650.8] ( Chapter 6 added by Stats. 2000, Ch. 84, Sec. 2. ) ## 50650.8. (a) For purposes of this chapter, the term “local public agencies” or “local government agencies” includes, but is not limited to, the duly constituted governing body of an Indian reservation or rancheria or a tribally designated housing entity as defined in Section 4103 of Title 25 of the United States Code and Section 50104.6.5. (b) For purposes of this chapter, the term “nonprofit corporations” includes, but is not limited to, a tribally designated housing entity as defined in Section 4103 of Title 25 of the United States Code and Section 50104.6.5. (Added by Stats. 2019, Ch. 660, Sec. 9. (AB 1010) Effective January 1, 2020.)
  10. 50651.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.4. Tribal Housing Reconstitution and Resiliency Act [50651 - 50651.4] ( Chapter 6.4 added by Stats. 2024, Ch. 295, Sec. 3. )

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    This section defines key terms used in the chapter, including Department, eligible applicant, eligible development partnership, housing, Indian area, and the advisory committee.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.4. Tribal Housing Reconstitution and Resiliency Act [50651 - 50651.4] ( Chapter 6.4 added by Stats. 2024, Ch. 295, Sec. 3. ) ## 50651. For purposes of this chapter, all of the following definitions apply: (a) “Department” means the Department of Housing and Community Development. (b) “Eligible applicant” means all of, or a combination of, the following: (1) The duly constituted governing body of a California-based federally recognized Indian reservation or rancheria. (2) A tribally designated housing entity delegated by a California-based federally recognized Indian reservation or rancheria to perform housing and housing-related activities on behalf of one or more Indian tribes. (3) A consortium of one or more of the following: (A) California-based federally recognized Indian reservations or rancherias. (B) Tribally designated housing entities. (4) An eligible development partnership between the duly constituted governing body of a California-based federally recognized Indian reservation or rancheria or tribally designated housing entity with a nonnative nonprofit housing sponsor. (c) “Eligible development partnership” means the partnership of a duly constituted governing body of a California-based federally recognized Indian reservation or rancheria or tribally designated housing entity with a nonnative nonprofit housing sponsor, evinced by a development agreement, joint venture agreement, or other type of agreement with equitable and fair terms to the tribal entity. The agreement must specify the development, ownership, and management responsibilities between the parties and the tribal entity shall receive no less than 50 percent of the developer fee, including upfront developer fee and deferred developer fee, and hold a controlling or at least equivalent interest in the ownership entity or if the owner is a low-income housing tax credit limited partnership for the purposes of syndicating tax credits, have a first option to acquire the property at the end of the tax credit compliance period. (d) “Essential families” means families or individuals whose presence is determined to be essential to the well-being of the reservation or rancheria, as defined in Section 201(b)(3) of NAHASDA. (e) “Federally recognized tribe” means any Indian tribe, band, nation, or other organized group or community of Indians that is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians pursuant to the Indian Self-Determination and Education Assistance Act (Public Law 93-638). (f) “Housing” means home ownership housing and rental housing that may be single-family units, attached units such as duplexes and triplexes, multifamily housing projects, permanent supportive housing for the homeless, single room occupancy units, mobile or manufactured homes, group homes for persons with special needs such as the elderly and disabled, congregate housing, transitional housing, halfway housing, domestic violence shelters, and homeless emergency shelters. (g) “Indian” means any person who is a member of an Indian tribe. (h) “Indian area” means the area within which an Indian tribe operates affordable housing programs or the area in which a tribally designated housing entity, as authorized by one or more Indian tribes, operates affordable housing programs. Whenever the term is used in this chapter, it shall mean the Indian area of a California-based Indian reservation or rancheria. (i) “Indian tribe” means a tribe that is a federally recognized tribe. (j) “NAHASDA” means the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. Sec. 4101 et seq.). (k) “Nonprofit housing sponsor” means a nonprofit corporation incorporated pursuant to Division 2 (commencing with Section 5000) of Title 1 of the Corporations Code. (l) “Median income for the area” means for purposes of this chapter, the greater of the following: (1) The median income of the county or counties in which the Indian area is located. (2) The median income for the United States. (m) “Rancheria” means a small tract of California Indian land under federal trust. (n) “Tribally designated housing entity” means an entity as that term is defined in Section 50104.6.5. (o) “Tribal housing grant program trust fund advisory committee” means a state advisory body established pursuant to Section 15990 of the Government Code to represent tribal interests in state housing programs, including providing guidance to the department on proposed guidelines and making recommendations. Committee composition shall consist of at least 51 percent tribal housing staff, tribal leaders, and a tribal attorney and shall include diverse representation from tribes in terms of geographic location, size of tribe, and revenue from sources other than NAHASDA. (Added by Stats. 2024, Ch. 295, Sec. 3. (SB 1187) Effective January 1, 2025.)
  11. 50651.1.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.4. Tribal Housing Reconstitution and Resiliency Act [50651 - 50651.4] ( Chapter 6.4 added by Stats. 2024, Ch. 295, Sec. 3. )

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    This section creates a trust fund for tribal housing grants, requires the department to administer and allocate it, and sets conditions for tribal governments and recipients to get funds.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.4. Tribal Housing Reconstitution and Resiliency Act [50651 - 50651.4] ( Chapter 6.4 added by Stats. 2024, Ch. 295, Sec. 3. ) ## 50651.1. There is hereby created in the State Treasury the Tribal Housing Grant Program Trust Fund to be administered by the department. All interest or other increments resulting from the investment of moneys in the fund shall be deposited in the fund, notwithstanding Section 16305.7 of the Government Code. (a) Moneys in the Tribal Housing Grant Program Trust Fund shall not be subject to transfer to any other fund pursuant to any provision of Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, except to the Surplus Money Investment Fund. (b) Both of the following shall be paid and deposited in the fund: (1) Any moneys appropriated and made available by the Legislature through the annual Budget Act for purposes of the fund. (2) Ten percent of any moneys that will be appropriated and made available by the Legislature to the department through the annual Budget Act for the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675)), Infill Infrastructure Grant Program of 2019 (Part 12.5 (commencing with Section 53559)), Veterans Housing and Homeless Prevention Act of 2014 (Article 3.2 (commencing with Section 987.001) of Chapter 6 of Division 4 of the Military and Veterans Code), and Joe Serna, Jr. Farmworker Housing Grant Program (Chapter 3.2 (commencing with Section 50515.2)). The use of moneys deposited into the fund pursuant to this subdivision shall only be subject to this chapter, regardless of any other law governing the use of the balance of the funds appropriated to programs governed by this division. (c) Separate from the fund, and subject to appropriation by the Legislature, moneys made available to the department through voter-approved bonds for the Multifamily Housing Program, Infill Infrastructure Grant Program of 2019, Veterans Housing and Homelessness Prevention Program, and Joe Serna, Jr. Farmworker Housing Grant Program may be made available as tribal set-asides in alignment with the eligible uses of those funds. (d) The department shall monitor the balance of the fund. When the department determines that sufficient moneys are available in the fund to allocate, the department shall allocate the moneys as follows: (1) Ninety-five percent of deposits into the fund pursuant to subdivision (b) shall be made available on an entitlement basis to the duly constituted governing body of a California-based federally recognized Indian reservation or rancheria in accordance with a formula allocation to be determined by the department. The formula shall be based on input and guidance from Indian tribes and the tribal housing grant program trust fund advisory committee, which may include, but not be limited to, a specific formula or factors to be used in a formula for allocation. Funds shall be provided in the form of multipurpose block grants for eligible uses in support of housing and housing-related planning, program, project predevelopment, operating subsidies, staffing, and administrative activities as specified in this chapter. (2) Five percent of deposits into the fund shall be available for technical assistance to eligible tribes and tribally designated housing entities to build their capacity to independently plan, design, apply for, implement, and operate affordable housing programs and projects. (e) Recipients that receive an allocation pursuant to paragraph (1) of subdivision (d) shall use no more than 20 percent of that allocation for costs related to the administration of funds received on an entitlement basis, unless the recipient receives approval by the department. (f) To receive moneys pursuant to this section, tribal governments shall do both of the following: (1) Annually submit a plan to the department detailing the way allocated funds will be used by the tribe in a manner consistent with this section. (2) Submit an annual report to the department that provides ongoing tracking of the uses and expenditures of any allocated funds. (g) The department shall ensure geographic equity in the distribution and expenditure of funds allocated pursuant to this section. (h) In close consultation with California tribes and a tribal housing grant program trust fund advisory committee, the department shall adopt guidelines to implement this section, including determining allocation methodologies. Thereafter, the department may adopt, amend, or repeal guidelines for the administration and implementation of this chapter, in consultation with California tribes and a tribal housing grant program trust fund advisory committee. (Added by Stats. 2024, Ch. 295, Sec. 3. (SB 1187) Effective January 1, 2025.)
  12. 50651.2.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.4. Tribal Housing Reconstitution and Resiliency Act [50651 - 50651.4] ( Chapter 6.4 added by Stats. 2024, Ch. 295, Sec. 3. )

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    Fund money allocated to eligible applicants may be spent only on the listed housing, project, management, and administrative purposes.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.4. Tribal Housing Reconstitution and Resiliency Act [50651 - 50651.4] ( Chapter 6.4 added by Stats. 2024, Ch. 295, Sec. 3. ) ## 50651.2. The moneys in the fund allocated in accordance with Section 50651.1 to eligible applicants may be expended for all of the following purposes: (a) Housing and housing-related program services for affordable housing that include, but are not limited to, all of the following: (1) Home buyer assistance, such as first-time home buyer loans, downpayment assistance, closing costs, and mortgage subsidies. (2) Owner-occupied home rehabilitation loans and grants. (3) Homeowner, home buyer, and renter counseling, including credit counseling. (4) Rental assistance, student rental assistance, emergency rental assistance, move-in and utility expenses, and rental subsidies, including tenant-based rental assistance to individual tribal members, or similar assistance. (5) Energy audits, retrofits to achieve greater energy efficiencies, water conservation measures, resident training, and other activities related to climate resilience, fire protection, and sustainability, or similar activities. (6) Improvements to remediate lead-based paint, mold, and other hazards. (7) Improvements to increase physical accessibility for elderly and disabled persons, including universal design. (8) Wrap-around services, including childcare, after school programs, and job training for tribal members living in affordable housing. (9) Community outreach to tribal members experiencing homelessness. (10) Model activities that provide creative approaches to solving affordable housing activities. (11) Other affordable housing program services permissible under NAHASDA. (b) Housing and community development project costs including, but not limited to, all of the following: (1) The acquisition, new construction, reconstruction, or moderate or substantial rehabilitation of affordable multifamily and single-family housing projects for rent or ownership, including real property acquisition, demolition, and relocation. (2) The conversion of nonresidential buildings into affordable housing. (3) Site preparation, including grading and drainage improvements, development and rehabilitation of utilities, including sewer, water, and electrical systems, and other necessary infrastructure. (4) Site amenities, including recreational areas, playgrounds, and on-site streets and sidewalks for affordable housing units. (5) The construction or rehabilitation of community-serving amenities, including childcare centers, health services, supportive services space, or other activities and services that are colocated with an affordable housing project. (6) The construction or rehabilitation of commercial uses that create job or economic development opportunities for tribal members that is colocated with an affordable housing project. (7) Other predevelopment costs including, but not limited to, administration and planning of affordable housing projects, market studies, soils, engineering, and architectural plans, grant writers contracted to work on project funding applications, and finance professionals to assist with financial packaging of state and nonstate housing assistance programs. (8) Other affordable housing project development costs permissible under NAHASDA. (c) Management services for affordable housing, including preparation of work specifications, loan processing, inspections, tenant selection, management of tenant-based rental assistance, the costs of operation and maintenance of units developed with funds provided under this chapter, all activities related to maintaining compliance with housing loan or grant sources, and management of affordable housing projects. (d) Allowable administrative costs shall include, but not be limited to, all of the following: (1) Comprehensive housing and community development activities. (2) Overhead subject to a federally negotiated indirect cost rate and the salaries and benefits of individuals engaged in overall program administration and management of affordable housing activities assisted with funds allocated under this chapter. (3) Grant writers contracted to work on program applications to prospective funders. (4) Monitoring, data collection, evaluation, and preparation of annual performance reports to the department. (5) A recipient may request the department’s approval for use of more than 20 percent of entitlement funds allocated under Section 50651.1 to help cover administrative costs. (Added by Stats. 2024, Ch. 295, Sec. 3. (SB 1187) Effective January 1, 2025.)
  13. 50651.3.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.4. Tribal Housing Reconstitution and Resiliency Act [50651 - 50651.4] ( Chapter 6.4 added by Stats. 2024, Ch. 295, Sec. 3. )

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    Fund money allocated to eligible applicants must be used only for the benefit of specified eligible beneficiaries.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.4. Tribal Housing Reconstitution and Resiliency Act [50651 - 50651.4] ( Chapter 6.4 added by Stats. 2024, Ch. 295, Sec. 3. ) ## 50651.3. The moneys in the fund allocated to eligible applicants in accordance with Section 50651.1 shall only be expended for the benefit of one or more of the following eligible beneficiaries: (a) Indian and essential families and individuals residing in an Indian area. (b) Households residing in an Indian area with annual incomes up to 80 percent of the median income for the area for rental housing programs and projects and up to 120 percent of median income for the area for home ownership programs and projects. (c) In high-cost areas, tribes may provide financial assistance to households with incomes up to 150 percent of median income for the area for home ownership programs and projects provided the total dollar amount of assistance does not exceed more than 10 percent of total funds allocated. (Added by Stats. 2024, Ch. 295, Sec. 3. (SB 1187) Effective January 1, 2025.)
  14. 50651.4.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.4. Tribal Housing Reconstitution and Resiliency Act [50651 - 50651.4] ( Chapter 6.4 added by Stats. 2024, Ch. 295, Sec. 3. )

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    Recipients must spend grant funds within 5 years for programs and services and within 7 years for projects; the department may approve extensions and may reallocate, reduce, or withdraw an award if activities are not completed in time.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.4. Tribal Housing Reconstitution and Resiliency Act [50651 - 50651.4] ( Chapter 6.4 added by Stats. 2024, Ch. 295, Sec. 3. ) ## 50651.4. (a) (1) Recipients shall have five years from the date of execution of a funding agreement with the department to expend all funds allocated to programs and services. (2) Recipients shall have seven years from the date of execution of a funding agreement with the department to expend all funds allocated to projects. (3) An extension to expend funds may be approved by the department when the recipient demonstrates significant progress toward completing the approved activities and a reasonable plan to complete them within the extension period. (b) If it is determined, on the basis of a review of the recipient’s annual reports, that the eligible activities have not been completed or are unlikely to be completed in the required timeframes, the award may be reallocated to another eligible activity, reduced, or withdrawn except that funds already expended on eligible activities shall not be recaptured. A reallocation of an award will not be made until the recipient has submitted an explanation as to why the original eligible activity will not proceed and has requested reallocation to another eligible activity. A reduction or withdrawal of an award will not be made until the recipient has been provided notice, and only then if the recipient has not made an appropriate and timely response which may include submittal of revised implementation schedules and plans to achieve the eligible activities. (Added by Stats. 2024, Ch. 295, Sec. 3. (SB 1187) Effective January 1, 2025.)
  15. 50660.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    The Legislature states that deferred-payment rehabilitation loans are needed to help owners rehabilitate housing and meet rehabilitation standards.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50660. The Legislature finds and declares that the rehabilitation of existing housing is necessary to the continued viability of neighborhoods, the elimination of health and safety hazards, the prevention of the overcrowding and the continued availability of a dwindling stock of low-cost housing. Economic conditions have not provided sufficient incentive to home improvement and elimination of substandard conditions, and financial assistance in the form of deferred-payment rehabilitation loans is necessary for those owners of residential real property who would otherwise be unable to obtain sufficient public or private financing to bring their properties into compliance with rehabilitation standards. Deferred-payment loans provide a means of financing rehabilitation which the owner could not otherwise afford. Such assistance is particularly necessary where local agencies are undertaking concentrated or systematic enforcement programs to require compliance with rehabilitation standards, and where persons or families of low or moderate income are affected. (Amended by Stats. 1979, Ch. 1043.)
  16. 50660.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    Local governments may adopt ordinances after disasters to speed up permit processing for disaster-related repairs.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50660.5. (a) It is the intent of the Legislature to encourage local governments to assist residents to repair and rebuild housing in a cost-efficient and expeditious manner following a disaster. To this end, the Legislature recognizes that local governments may enact ordinances following disasters to expedite the permit process. These ordinances may include, but not be limited to, ordinances waiving fees and streamlining requirements affecting disaster-related repairs. (b) The Legislature finds and declares that homeowners and owners of rental housing who apply for assistance pursuant to Sections 50662.7, 50671.5, and 50671.6 may be unable to utilize expedited procedures or liberalized standards because loan approval and repair may occur after the expiration of the local ordinance. It is, therefore, the intent of the Legislature to encourage local governments to extend the application of these local ordinances to homeowners and owners of rental housing who are utilizing disaster assistance programs, including the respective loan programs authorized by Sections 50662.7, 50671.5, and 50671.6, so that housing can be repaired or rebuilt in a cost-efficient and expeditious manner. (Amended by Stats. 2006, Ch. 538, Sec. 408. Effective January 1, 2007.)
  17. 50661.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    This section creates the Housing Rehabilitation Loan Fund and directs how money in it must be handled and used.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50661. (a) There is hereby created in the State Treasury the Housing Rehabilitation Loan Fund. All interest or other increments resulting from the investment of moneys in the Housing Rehabilitation Loan Fund shall be deposited in the fund, notwithstanding Section 16305.7 of the Government Code. Notwithstanding Section 13340 of the Government Code, all money in the fund is continuously appropriated to the department for the following purposes: (1) For making deferred-payment rehabilitation loans for financing all or a portion of the cost of rehabilitating existing housing to meet rehabilitation standards as provided in this chapter. (2) For making deferred payment loans as provided in Sections 50668.5, 50669, and 50670. (3) For making deferred payment loans pursuant to Sections 50662.5 and 50671. (4) Subject to the restrictions of Section 53131, if applicable, for administrative expenses of the department made pursuant to this chapter, Article 3 (commencing with Section 50693) of Chapter 7.5, and Chapter 10 (commencing with Section 50775). (5) For related administrative costs of nonprofit corporations and local public entities contracting with the department pursuant to Section 50663 in an amount, if any, as determined by the department, to enable the entities and corporations to implement a program pursuant to this chapter. The department shall ensure that not less than 20 percent of the funds loaned pursuant to this chapter shall be allocated to rural areas. For purposes of this chapter, “rural area” shall have the same meaning as in Section 50199.21. (6) To the extent no other funding sources are available, ten million dollars ($10,000,000), as provided in Section 4 of Chapter 3 of the Statutes of 2014, may be used for the purposes of Section 34085. (7) To the extent that funds are made available by the Legislature, moneys in the fund may be used for the purposes described in Chapter 4 (commencing with Section 34090) of Part 1.6 of Division 24. Any funds made available for these purposes that are not encumbered on or before June 30, 2017, shall revert to the General Fund. (b) There shall be paid into the fund the following: (1) Any moneys appropriated and made available by the Legislature for purposes of the fund. (2) Any moneys that the department receives in repayment of loans made from the fund, including any interest thereon. (3) Any other moneys that may be made available to the department for the purposes of this chapter from any other source or sources. (4) Moneys transferred or deposited to the fund pursuant to Sections 50661.5 and 50778. (5) Transfers from the Infrastructure Stabilization Fund, pursuant to Section 13106 of the Government Code. Any moneys transferred from the Infrastructure Stabilization Fund shall be used only for infrastructure, as defined in Section 13101 of the Government Code, within the Multifamily Housing Program established by Chapter 6.7 (commencing with Section 50675). (c) Notwithstanding any other law, any interest or other increment earned by the investment or deposit of moneys appropriated by subdivision (b) of Section 3 of Chapter 2 of the Statutes of the 1987–88 First Extraordinary Session, or Section 7 of Chapter 4 of the Statutes of the 1987–88 First Extraordinary Session, shall be deposited in a special account in the Housing Rehabilitation Loan Fund and shall be used exclusively for purposes of Sections 50662.5 and 50671. (d) Notwithstanding any other law, effective with the date of the act adding this subdivision, appropriations authorized by the Budget Act of 1996 for support of the Department of Housing and Community Development from the California Disaster Housing Repair Fund and the California Homeownership Assistance Fund shall instead be authorized for expenditure from the Housing Rehabilitation Loan Fund. (e) Effective July 1, 2014, the California Housing Trust Fund in the State Treasury is abolished and any remaining balance, assets, liabilities, and encumbrances shall be transferred to, and become part of, the Housing Rehabilitation Loan Fund. Notwithstanding Section 13340 of the Government Code, all transferred amounts are continuously appropriated to the department for the purpose of satisfying any liabilities and encumbrances and the purposes specified in this section. (f) Notwithstanding any other law, any remaining funds deposited on or before July 1, 2020, into the Housing Rehabilitation Loan Fund from the Deferred-Payment Rehabilitation Loan Program established by this chapter, the Rental Housing Construction Program established by Chapter 9 (commencing with Section 50735), and the Family Housing Demonstration Program established by Section 5 of Chapter 30 of the Statutes of 1988 may be transferred to the General Fund, upon order of the Department of Finance. (Amended by Stats. 2020, Ch. 15, Sec. 19. (AB 83) Effective June 29, 2020.)
  18. 50661.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    This section creates the California Disaster Housing Repair Fund and directs how money in it must be used, transferred, and deposited. It also sets deadlines for a deficiency request and for applications for disaster victims.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50661.5. (a) There is hereby created in the State Treasury the California Disaster Housing Repair Fund, into which shall be paid all moneys appropriated by the Legislature pursuant to subdivision (b) or transferred pursuant to subdivision (c) for housing repair loans pursuant to Sections 50662.7, 50671.5, and 50671.6. All interest or other increments resulting from the investment of moneys in the California Disaster Housing Repair Fund shall be deposited in the fund, notwithstanding Section 16305.7 of the Government Code. Notwithstanding Section 13340 of the Government Code, all money in that fund is continuously appropriated to the department for the following purposes: (1) For making deferred payment loans and predevelopment loans pursuant to Sections 50662.7, 50671.5, and 50671.6. (2) For related administrative expenses of the department. (3) For related administrative expenses of any entity contracting with the department, pursuant to Sections 50662.7, 50671.5, and 50671.6 in an amount, if any, as determined by the department, to enable the entities to implement a program pursuant to those sections. (4) For providing loan guarantees for disaster-related loans made by private institutional lending sources. (b) There shall be paid into the fund the following: (1) Any moneys appropriated and made available by the Legislature for purposes of the fund. (2) Any moneys transferred from the Special Fund for Economic Uncertainties prior to July 1, 1996, pursuant to subdivision (c). (3) Any other moneys which may be made available to the department prior to July 1, 1996, for the purposes of this section from any other source or sources. (4) The director may authorize the sale of the beneficiary interest of loans made pursuant to Section 50662.7. The proceeds from that sale prior to July 1, 1996, shall be deposited into the California Disaster Housing Repair Fund. Proceeds from that sale after July 1, 1996, shall be deposited in the General Fund. (c) (1) To the extent that funds are not available, the Department of Housing and Community Development shall submit to the Department of Finance, within 90 days after a disaster, a deficiency request based on a minimum funding level based on a damage survey completed by the Office of Emergency Services and the Federal Emergency Management Agency. The request shall distinguish between owner-occupied housing of one to four units and rental housing of five or more units. (2) Upon receipt of the deficiency request from the Department of Housing and Community Development pursuant to paragraph (1), the Department of Finance shall make a funding determination and notify the Legislature of the approval or disapproval of the deficiency amount. Any deficiency amount approved shall distinguish between owner-occupied housing of one to four units and rental housing of five or more units. (3) Any payments made pursuant to this subdivision from funds made available under Section 50671.5 shall be matched by a corresponding and equal payment from funds made available under Section 50671.6, except that, upon the determination of the Director of Finance that one of the two rental repair programs has excess funds, moneys from that fund may be used for either of the other two disaster repair programs. (d) In the event of a natural disaster, as defined in Section 8680.3 of the Government Code, the Director of Finance may transfer moneys from the Special Fund for Economic Uncertainties established by Section 16418 of the Government Code to the California Disaster Housing Repair Fund, provided the transfer is not made sooner than 30 days after notification in writing of the necessity therefor is provided to the Joint Legislative Budget Committee. (e) Notwithstanding any other provision of law, on or after July 1, 1996, the unencumbered fund balance and reserves shall be transferred to the Housing Rehabilitation Loan Fund and subsequent income and other resources payable pursuant to Sections 50662.7, 50671.5, and 50671.6, shall be deposited to the Housing Rehabilitation Loan Fund, except that payments of principal and interest on loans issued pursuant to Sections 50662.7, 50671.5, and 50671.6 shall be deposited in the General Fund. (f) In making funds available to disaster victims pursuant to Sections 50662.7, 50671.5, and 50671.6, the department shall impose a one-year deadline for submission of applications. (g) Any changes made on or after January 1, 1994, to any program funded by the California Disaster Housing Repair Fund shall not apply to applications submitted on or before December 31, 1993. The department may administer the program in accordance with guidelines until regulations are adopted. (Amended by Stats. 2013, Ch. 352, Sec. 378. (AB 1317) Effective September 26, 2013. Operative July 1, 2013, by Sec. 543 of Ch. 352.)
  19. 50661.7.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    The Director of the Department of Housing and Community Development may move funds between two specified loan programs when one program lacks enough funding and the other has an uncommitted balance.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50661.7. The Director of the Department of Housing and Community Development may transfer moneys appropriated or otherwise made available for the purposes of the programs established under Sections 50662.7 and 50671.5 between those programs when there is insufficient funding to meet the loan demand in either of those programs and an uncommitted funding balance in the other program. (Added by Stats. 1989, 1st Ex. Sess., Ch. 6, Sec. 5. Effective November 7, 1989.)
  20. 50662.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    The department must adopt regulations for deferred-payment rehabilitation loans, including loan terms, interest rules, renewal standards, and related exceptions.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50662. The department shall adopt regulations establishing terms upon which deferred-payment rehabilitation loans may be made. The amount of a deferred-payment rehabilitation loan shall in no case exceed the costs of meeting rehabilitation standards. The amount, when combined with other financing provided, shall in no case exceed the combined costs of meeting rehabilitation standards and refinancing existing indebtedness. Except for loans made to local agencies pursuant to Section 50664, deferred-payment rehabilitation loans shall bear interest at the rate of 3 percent per annum on the unpaid principal balance. In the discretion of the department, which may differentiate among the types of programs specified in Section 50663, such interest shall either be payable periodically as it accrues during the term of the loan or payment of interest shall be deferred until payment of the principal is due. However, regulations of the department may provide for waiver of interest payments when a local public entity or nonprofit corporation contracting pursuant to Section 50663 remits to the department in advance on behalf of the borrower a sum equal to not less than 15 percent of the original principal balance, which may be in lieu of interest. The regulations of the department may also provide for payment of interest as accrued, in circumstances determined appropriate by the department to serve the purposes of this chapter. In the case of a deferred-payment rehabilitation loan to an elderly person who is the owner of an owner-occupied one-to-four family residence, the note and deed of trust securing the loan shall require payment of the obligation upon transfer of the property. Notwithstanding any other provisions of this chapter, the department may permit the making of a deferred-payment rehabilitation loan to an elderly person of low income who is the owner of an owner-occupied dwelling without requiring that other financing be provided to the extent of the owner’s ability to afford the cost of such other financing. In the case of a deferred-payment rehabilitation loan to a nonelderly person who is the owner of an owner-occupied one-to-four family residence, payment shall be required after five years or upon transfer of the property, whichever first occurs. However, the loan may be renewed for additional five-year terms so long as the property is not transferred and the owner is unable to refinance the obligation when the debt comes due. In the case of a deferred-payment rehabilitation loan to an owner of a residence other than an owner-occupied one-to-four family residence, payment shall be required after five years unless it is determined by the department that a longer term is required to ensure the economic feasibility of obtaining other rehabilitation financing or accepting subsidies. The loan may be renewed for up to five additional five-year terms so long as persons of low income residing in the residence will benefit. The department shall establish standards and determine eligibility for renewal. Regulations of the department shall permit the assumption of a deferred-payment rehabilitation loan authorized by this section when the property which has been rehabilitated by such loan is transferred to a person who meets the eligibility requirements of this section, as determined by the department. (Amended by Stats. 1982, Ch. 1020, Sec. 4.)
  21. 50662.2.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    Deferred-payment loans may be made to help finance rehabilitation costs for mobilehome parks that meet rehabilitation standards and are occupied by lower-income households.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50662.2. Deferred-payment loans may be made to finance actual costs incurred to meet rehabilitation standards for rehabilitation of mobilehome parks, as defined in Section 18214, for occupancy by lower income households. (Added by Stats. 1988, Ch. 1174, Sec. 3.)
  22. 50662.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    This section allows disaster-relief rehabilitation loans for certain earthquake-damaged owner-occupied homes, with special conditions and loan limits.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50662.5. For the purpose of providing disaster relief to those owners of owner-occupied single-family dwellings that were damaged or destroyed as a result of the Los Angeles-Whittier Narrows Earthquake on October 1, 1987, or subsequent aftershocks, resulting in a state of emergency proclaimed by the Governor pursuant to Section 8625 of the Government Code, financial assistance may be provided to disaster victims as prescribed in this chapter under the following special conditions, which shall prevail over conflicting provisions of this chapter and administrative regulations: (a) The loans shall be provided in the counties proclaimed by the Governor to be in a state of disaster (1) to persons who do not qualify for loan assistance from an agency of the United States for rehabilitation of the damage caused by the earthquakes of October 1987, (2) to the extent that federally provided or assisted financing may be insufficient to accomplish the necessary rehabilitation, and (3) to the extent required to enable the recipient to obtain and afford loan assistance from an agency of the United States to finance the necessary rehabilitation. The loans shall be made only to households that are victims of the earthquakes specified in this section and only to the extent that other federal, state, local, or private resources are not available or do not provide the assistance or coverage needed to rehabilitate or reconstruct their homes. (b) The loans shall be for the purpose of rehabilitating, including reconstruction, of single-family dwellings that are owner-occupied or would be owner-occupied but for the damage caused by the earthquake or earthquakes. (c) The maximum loan amount shall not exceed twenty thousand dollars ($20,000), except that the department may waive this limitation in individual cases to permit compliance with health and safety standards or to restore the dwelling to a condition substantially similar to its condition prior to the earthquakes. (d) The loan, together with any existing indebtedness encumbering the security property, shall not exceed 100 percent of the after-rehabilitation value of the property, except that the department may waive this limitation in individual cases to permit compliance with health and safety standards or to restore the dwelling to a condition substantially similar to its condition prior to the earthquakes. (e) The department shall impose no income criteria or other means test as a prerequisite to obtaining a loan under this section. (f) Repayment of the principal amount of a loan under this section and interest thereon shall not be required until the borrower transfers ownership of the rehabilitated property. Payments of principal and interest on the loans shall, notwithstanding Section 50661, be deposited in the General Fund. (g) The adoption by the department of rules for implementation of this chapter shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (h) No commitments of loan funds under this section may be made after December 31, 1990. (i) Section 50668 does not apply to loans made pursuant to this section. (Added by Stats. 1987, 1st Ex. Sess., Ch. 2, Sec. 2. Effective November 16, 1987.)
  23. 50662.7.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    This section lets the department provide disaster-relief rehabilitation loans for damaged owner-occupied dwellings, subject to listed conditions and limits.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50662.7. For the purpose of providing disaster relief to those owners of owner-occupied dwellings that were damaged or destroyed as a result of a natural disaster defined by Section 8680.3 of the Government Code, resulting in a state of emergency proclaimed by the Governor pursuant to Section 8625 of the Government Code, financial assistance may be provided to disaster victims as prescribed in this chapter under the following special conditions, which shall prevail over conflicting provisions of this chapter and administrative regulations: (a) (1) The loans shall be provided in any city, county, or city and county proclaimed by the Governor to be in a state of disaster: (A) to persons who do not qualify for loan assistance from an agency of the United States for repair of the damage caused by a natural disaster, (B) to the extent that federally provided or assisted financing may be insufficient to accomplish the necessary repair, and (C) to the extent required to enable the recipient to obtain and afford loan assistance from an agency of the United States to finance the necessary repair. (2) The loans shall be made only to households that are victims of a natural disaster and only to the extent that other federal and state resources, private insurance proceeds, or private institutional lending sources, are not available or do not provide the assistance or coverage needed to rehabilitate or reconstruct their homes. (3) This subdivision shall not be construed to prevent the processing of a loan application once a person or household has received loan approval from a federal, state, or private institutional lending source, nor shall this subdivision be construed to prevent the funding of short-term loans until other federal, state, or private loan proceeds become available. (4) In allocating grants and loans, the department shall in no event provide a loan to a family with an annual income in excess of 150 percent of statewide median income, adjusted for family size. This paragraph shall apply to any disaster that occurs on or after January 18, 1994. (b) (1) The loans shall be for the purpose of repairing, including reconstructing, dwellings that are owner-occupied or would be owner-occupied but for the damage caused by the natural disaster and for rental dwelling units of one to four units. Loan funds shall be used to fund work necessary to repair damaged dwellings and to correct serious, life-threatening violations of the state or local building code or housing standards that are required to be corrected prior to occupancy, including ensuring compliance with applicable seismic safety standards and related property improvements or to finance the reconstruction of dwellings destroyed as a result of the natural disaster up to a maximum of fifty thousand dollars ($50,000) per unit. The department shall limit the square footage of units repaired or reconstructed using funds provided pursuant to this section to the predisaster size of the unit. (2) In the case of manufactured housing or mobilehomes, loan funds shall be used to bring the manufactured home or mobilehome into compliance with the standards set forth in Chapter 4 (commencing with Section 18025) of Part 2 of Division 13. (3) For the purposes of this section: (A) “Owner-occupied dwellings” include single-family units, attached owner-occupied units, condominiums, townhouses, cooperatives, and manufactured homes, including mobilehomes. (B) “Rental dwelling of one to four units” includes single-family units, condominiums, townhouses, cooperatives, duplexes, and manufactured homes, including mobilehomes. (c) The loan, together with any existing indebtedness encumbering the secured property, shall not exceed the after-repair value of the property, except that the department may waive this limitation in individual cases to ensure, when necessary, correction of serious, life-threatening violations of the state or local building code or housing standards, seismic safety standards, and general property improvements relating to these standards pursuant to subdivision (b). (d) (1) The outstanding balance of a loan provided under this section, including principal and accrued interest thereon, shall be due and payable, after 30 years or when either of the following occurs: (A) the borrower transfers ownership of the rehabilitated property, or (B) fails to occupy the rehabilitated property as his or her principal place of residence, whichever comes first. For rental dwellings, the term of the loan shall be 20 years. (2) After the initial recordation of the deed of trust securing the department’s loan, the department shall not subordinate its deed of trust to additional or other financing except in cases of extreme hardship necessary to protect the health or safety of the occupants or to the extent that the total principal of loans senior to the department’s loan is unchanged or decreased and the department’s security interest is not jeopardized, as determined by the department. (e) The department may make loans directly to borrowers, or contract for the administration under this section of loans with one or more entities that it determines to have the necessary experience to successfully administer the loan program, including, but not limited to, local public agencies and private organizations. The department may authorize, under that contract, the payment of expenses incurred by the entities in administering the loan program and may prescribe the conditions pursuant to which the entities shall administer the loans. (f) Sections 50663 and 50668 do not apply to loans made pursuant to this section. (g) The department may set aside or use funds that are made available for the purposes of this section for the purpose of curing or averting an owner’s default on the terms of any loan or other obligation where that default would jeopardize the department’s security in the owner-occupied housing assisted pursuant to this section. The payment or advance of funds by the department pursuant to this subdivision shall be exclusively within the department’s discretion, and no person shall be deemed to have any entitlement to the payment or advance of those funds. The amount of any funds expended by the department pursuant to this subdivision shall be added to the loan amount secured by the deed of trust and shall be payable to the department upon demand. (h) Any rule, policy, or standard of general application employed by the Department of Housing and Community Development in implementing this section shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (i) Fund allocations made pursuant to this section shall not be subject to review or approval by the Loan Committee of the Department of Housing and Community Development operating pursuant to Subchapter 1 (commencing with Section 6900) of Chapter 6.5 of Title 25 of the California Code of Regulations. (j) (1) In order to be eligible for one or more loans pursuant to this section, the borrower shall agree to all of the following conditions: (A) All buildings shall be connected to their foundation systems as necessary to meet the seismic requirements of the 1973 Edition of the Uniform Building Code of the International Conference of Building Officials in a manner approved by the department, which may include seismic strengthening of foundation cripple walls and affixing or bolting sill plates to the foundation. (B) All water heaters shall be braced, anchored, or strapped to resist falling or horizontal displacement due to earthquake motion. (C) Hazard insurance shall be obtained and maintained as required by the department. (2) As a condition of receipt of assistance under this section, owners of rental dwellings shall agree, in writing, to all of the restrictions set forth in this subdivision. (3) The loan shall include an amount sufficient to meet the requirements of subparagraphs (A) and (B) of paragraph (1). (k) Initial rents for rental housing rehabilitated under this section shall not exceed the rent charged immediately prior to the natural disaster. The department may allow for adjustments to the predisaster rents due to cost-of-living increases or increases necessary for debt service. ( l) The department shall adopt regulations establishing terms and conditions upon which repair loans may be made. These regulations shall be made available to the public by the department. The department may set interest rates for individual loans for each disaster at a rate that shall not exceed the rate for veterans’ home loans established pursuant to Section 987.87 of the Military and Veterans Code on the date the Governor declares a state of emergency for that disaster, plus up to one-half percent for administrative costs not included in the interest rate. The Department of Housing and Community Development shall prepare an annual audit of administrative costs for the Department of Finance. All loans for each disaster shall bear the same interest rate. The department may also require periodic payments of interest, or principal and interest, or provide incentives for earlier repayment of principal and interest on owner-occupied dwellings. Incentives may include reduction of interest rates to a minimum of 3 percent for repayment that occurs within three years of the closing of the loan. (m) Prior to full loan approval, the department may make loans not exceeding five thousand dollars ($5,000) per loan to pay for the costs of predevelopment activity which must be undertaken prior to making eligible repairs if, in the opinion of the department, the borrower is unable to pay for these costs in advance of full loan approval. These loans shall bear interest at the rate of 6 percent simple interest per annum and shall be evidenced by a promissory note secured by a deed of trust. At the time of full loan approval, the predevelopment loan shall be canceled, and the principal amount of the loan and all accrued interest shall be included in the amount of the full loan and shall be subject to the same interest rate and terms and conditions as the full loan. For purposes of computing the maximum loan amount, the amount of any predevelopment loan shall be included. (Amended by Stats. 1994, Ch. 96, Sec. 1. Effective January 1, 1995.)
  24. 50662.8.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    The department may allow certain loan assumptions and delay foreclosure for owner-occupied dwellings, but only under stated conditions. It must also send annual borrower statements, adopt application guidelines, and notify applicants of decisions within 60 days.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50662.8. (a) Notwithstanding paragraph (1) of subdivision (d) of Section 50662.7, the department may allow the assumption of any loan made pursuant to subdivision (b) of that section for owner-occupied dwellings subject to all of the following conditions: (1) The original borrower dies. (2) The assumption is by a member of the original borrower’s household and is a spouse, domestic partner, or child of the original borrower. (3) The person assuming the loan has legal ownership of the home. (4) The person assuming the loan will continuously reside in the home as his or her principal place of residence and will not transfer the home to any other person or entity. If the person assuming the loan moves to another residence or transfers the home to any other person or entity, the loan shall become immediately due and payable. (5) The total income of the household assuming the loan is at or below 120 percent of the area median income, adjusted for household size. (6) The department determines that requiring immediate repayment of the loan upon the borrower’s death would be an economic hardship for the person assuming the loan. (7) The assumption is for a period of time necessary to permit the person assuming the loan to repay the loan without economic hardship. (b) The department may not permit subordination of a loan made pursuant to subdivision (b) of Section 50662.7 for owner-occupied dwellings except under the following circumstances: (1) The total household income of the borrower’s household is at or below 80 percent of the area median income, or, in the case of extreme hardship, where borrowing becomes necessary to either protect the health and safety of the occupants, or pay health care costs for the borrower’s immediate family. (2) The total principal of the loans senior to the department’s loan is unchanged or decreased and the department’s security interest is not jeopardized, as determined by the department. (c) With respect to any loans made pursuant to subdivision (b) of Section 50662.7 for owner-occupied dwellings, the department shall do all of the following: (1) Annually mail, by the end of January, to any borrower who has an outstanding balance a statement that provides all of the following information: (A) The principal loan balance. (B) The interest accrued to the date of the statement. (C) The interest percentage rate. (D) Payment instructions with a disclaimer that a payment may not be required until the outstanding loan balance is due and payable. (E) Contact information, including a telephone number and mailing address for borrower inquiries. (2) By July 1, 2005, adopt a written application process and evaluation guidelines to authorize the transfer of the borrower’s loan obligations described in subdivision (a) or the subordination of the deed of trust. The department shall provide a summary of this process and the guidelines with all statements mailed on or before February 1, 2006. (3) Mail to the party that applies to the department to subordinate or assume the loan, the department’s decision to approve or deny the application within 60 days of receipt, along with a statement of reasons for any denial. (d) With respect to any loans made pursuant to subdivision (b) of Section 50662.7 for owner-occupied dwellings, the department may delay the foreclosure of the loan if the department determines that its security interest is not jeopardized. (e) The department may adopt guidelines for implementation of this section. These guidelines shall not be considered to be regulations as defined in Section 11342.600 of the Government Code and therefore shall not be subject to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Division 3 of Title 2 of the Government Code). (Added by Stats. 2004, Ch. 569, Sec. 1. Effective January 1, 2005.)
  25. 50663.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    The department may contract with a local public entity or nonprofit corporation to use uncommitted Housing Rehabilitation Loan Fund money for deferred-payment rehabilitation loans.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50663. The department may contract with a local public entity or nonprofit corporation to provide any portion of uncommitted funds in the Housing Rehabilitation Loan Fund for making deferred-payment rehabilitation loans through such local public entity or nonprofit corporation in aid of a (a) rehabilitation loan program conducted in a concentrated rehabilitation area designated pursuant to Section 51302; (b) residential rehabilitation financing program conducted pursuant to Part 13 (commencing with Section 37910) of Division 24; (c) systematic enforcement program for which the California Housing Finance Agency has allocated funds for mortgage loans pursuant to Section 51311; (d) code enforcement agency repairing substandard dwellings following the owner’s failure to commence work following a final notice or order from the enforcement agency; (e) program conducted by the agency in a mortgage assistance area, provided such area is located in a rural area; or (f) rehabilitation or code enforcement program being undertaken by a local public entity or nonprofit corporation in an area in which federal funds are being used or will be used in conjunction with the program established pursuant to this chapter. Eligibility for such loans shall be governed by the provisions of Sections 50664, 50665, 50666, 50667, 50667.5, or 50668. (Amended by Stats. 1979, Ch. 1045. Note: Conditional amendment by Stats. 1994, Ch. 94, was repealed by Stats. 1997, Ch. 580.)
  26. 50664.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    Deferred-payment rehabilitation loans may be made to local agencies for repairing substandard dwellings, but the agreements must cap the loan amount at actual rehabilitation costs and require repayment to the Housing Rehabilitation Loan Fund.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50664. Deferred-payment loans may be made to local agencies for repair of substandard dwellings through a master agreement and fund commitment. Such agreements shall limit the amount of deferred-payment rehabilitation loans to actual rehabilitation costs to the local agency, shall require that the full amount of rehabilitation costs be made a special assessment against the property involved, and shall require that the full amount collected, including any interest attributable to delinquency, be promptly repaid to the Housing Rehabilitation Loan Fund. However, loans made pursuant to this section shall not otherwise bear any interest. (Added by Stats. 1978, Ch. 884.)
  27. 50665.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    Certain eligible owners may receive deferred-payment rehabilitation loans, subject to location and affordability conditions.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50665. In residential rehabilitation areas designated pursuant to Section 37921, or in conjunction with financing of residential rehabilitation outside such areas as provided in Section 37922.1 or 37924.5, a person or family of low or moderate income that is the owner of an owner-occupied one-to-four dwelling unit property may receive a deferred-payment rehabilitation loan for the excess of the cost of meeting rehabilitation standards over the amount of financing the local agency is able to provide without exceeding the owner’s ability to afford the monthly payments required. Owners of rental residences may receive deferred-payment rehabilitation loans if they have agreed to limit rent increases as provided in Section 37922.5, and if such loans are necessary in addition to financing otherwise provided in order to avoid increases in monthly debt service which would result in rent increases causing permanent displacement of persons of low income residing in the residence prior to rehabilitation. Such owners may also receive deferred-payment rehabilitation loans in the amount, if any, necessary to avoid such increases in monthly debt service as would make it economically infeasible to accept subsidies available to provide affordable rents to persons of low income, if the owner agrees to accept such subsidies. (Added by Stats. 1978, Ch. 884.)
  28. 50666.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    Certain low- or moderate-income owners may receive deferred-payment rehabilitation loans, and owners of rental housing may also qualify if the loan terms prevent displacement, limit rent increases, or make subsidy-based affordable rents feasible.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50666. In concentrated rehabilitation areas designated pursuant to Section 51302, a person or family of low or moderate income who is the owner of an owner-occupied residential structure of one to four units may receive a deferred-payment rehabilitation loan for the excess of the cost of meeting rehabilitation standards over the amount of the neighborhood improvement loan the administering agency, local public entity, or qualified mortgage lender is able to provide without exceeding the owner’s ability to afford the monthly payments required. Owners of rental housing may receive deferred-payment rehabilitation loans if necessary to avoid increases in monthly debt service which would result in rent increases causing permanent displacement of persons of low income residing in the residential structure prior to rehabilitation and if the owner contracts during the term of the loan not to raise residential rentals except as permitted by regulations of the agency pursuant to subdivision (g) of Section 51307. Owners of rental housing may also receive deferred-payment rehabilitation loans in the amount, if any, necessary to avoid such increases in monthly debt service as would make it economically infeasible to accept subsidies available to provide affordable rents to persons of low income, if the owner agrees to accept such subsidies. (Added by Stats. 1978, Ch. 884.)
  29. 50667.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    Certain low- and moderate-income owners in specified counties and cities may receive deferred-payment rehabilitation loans, subject to affordability and rental-housing conditions.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50667. In those counties and cities in which the California Housing Finance Agency has allocated funds for mortgage loans for rehabilitation of housing developments pursuant to Section 51311, a person or family of low or moderate income who is the owner of an owner-occupied housing development may receive a deferred-payment rehabilitation loan for the excess of the cost of meeting rehabilitation standards over the amount of mortgage-loan financing the agency is able to provide without exceeding the owner’s ability to afford the monthly payments required. Owners of rental housing developments in such counties and cities may receive deferred payment loans if necessary to avoid increases in monthly debt service which would result in rent increases causing permanent displacement of persons of low income residing in the housing development prior to rehabilitation, and if the owner accepts a mortgage loan from the agency with its limitation of rents and profits. Owners of rental housing developments in such counties and cities may also receive deferred-payment rehabilitation loans in the amount, if any, necessary to avoid such increases in monthly debt service as would make it economically infeasible to accept subsidies available to provide affordable rents to persons of low income if the owner agrees to accept such subsidies. (Added by Stats. 1978, Ch. 884. Note: Conditional amendment by Stats. 1994, Ch. 94, was repealed by Stats. 1997, Ch. 580.)
  30. 50667.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    Certain low-income owners may receive deferred-payment rehabilitation loans in specified program areas, and the department may adopt regulations for agreements tied to rental-housing loans.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50667.5. In areas in which a local public entity or nonprofit corporation is undertaking a rehabilitation or code enforcement program for which federal funds are being used or will be used in conjunction with the program established pursuant to this chapter, a person or family of low income who is the owner of an owner-occupied one-unit to four-unit dwelling may receive a deferred-payment rehabilitation loan for the excess of the cost of meeting rehabilitation standards over the amount of financing or assistance the local public entity or nonprofit corporation is able to provide without exceeding the owner’s ability to afford the monthly payments required. Owners of rental housing in such areas may receive deferred-payment loans if necessary to avoid increases in monthly debt service which would result in rent increases causing permanent displacement of persons of low income residing in such housing and if the owner enters into an agreement with the local public entity or nonprofit corporation which provides for the regulation of rents, consistent with a fair rate of return for the owner, if such owner is not a nonprofit corporation, and consistent with the provision of affordable rents, to assure that the purposes of this chapter are carried out. Such agreement shall be binding on any successor in interest of the sponsor. The department may adopt regulations which govern the terms of such agreements. Owners of rental housing in such areas may also receive deferred-payment rehabilitation loans in the amount necessary to avoid such increases in monthly debt service as would make it economically infeasible to accept subsidies available to provide affordable rents to persons of low income if the owner agrees to accept such subsidies. (Amended by Stats. 1979, Ch. 1045.)
  31. 50668.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    Deferred-payment loans are generally allowed only through specified agreements, and the department may make direct loans in limited circumstances.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50668. (a) Except as provided in subdivision (b) or in Section 50664, deferred-payment loans may be made only through agreements between the local public entity which has received a fund commitment and the owner of the dwelling unit or rental housing development or through agreements approved by the local public entity between a nonprofit corporation which has received a fund commitment and the owner of the dwelling unit or rental housing development. The agreements shall regulate contractor selection, work to be done, and the schedule of contractor payments, and shall require that the loan be secured by a deed of trust or other adequate security. Agreements regarding housing other than owner-occupied one- to four-family dwellings shall have the prior approval of the department. (b) The department may provide deferred payment loans directly to the owner-occupant of a dwelling unit or owner of a rental housing development if it has been determined by the department that the dwelling unit to be assisted is located in an eligible geographical area pursuant to the provisions of this chapter and no eligible local public entity exists in that area. (c) All moneys received by the department in repayment of loans made pursuant to this chapter, including interest and payments in advance in lieu of future interest, shall be deposited in the Housing Rehabilitation Loan Fund. (Amended by Stats. 1981, Ch. 1165.)
  32. 50668.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    This section sets special rules for deferred-payment rehabilitation loans made with specified bond proceeds, including application ranking, department review powers, reserve funds, interest treatment, and affordability requirements.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50668.5. For the purpose of providing financial assistance pursuant to this chapter utilizing bond proceeds transferred to the Housing Rehabilitation Loan Fund pursuant to paragraph (2) of subdivision (a) of Section 53130, paragraph (2) of subdivision (b) of Section 53130, and Sections 8878.20 and 8878.21 of the Government Code, deferred payment loans made with these funds shall be subject to all of the following special provisions, which shall prevail over conflicting provisions of this chapter: (a) (1) Applications for fund commitments shall be accepted by the department at any time. Fund commitments shall be based on a ranking of applications, which shall occur at least once every three months until there are insufficient funds available to commit according to this ranking. In making this ranking for rental housing developments, priority shall be given to those projects which (A) serve the greater number of eligible households as defined in Section 50105 with the lowest incomes, (B) provide the greater number of units with three or more bedrooms, (C) are located in areas where the housing need is great as determined by the department, taking into consideration, among other factors, low vacancy rates, high market rents, long waiting lists for subsidized housing, the stock of substandard housing, and the potential loss of subsidized rental housing to market-rate housing through demolition, foreclosure, or subsidy termination, (D) complement the implementation of an existing housing program, (E) maximize private, local, and other funding sources, and (F) maximize long-term benefits for eligible households, as defined in Sections 50079.5 and 50105. Subparagraph (B) above shall not apply to applications for fund commitments submitted pursuant to Section 50670 or to any application for residential hotels and motels. In making this ranking for owner-occupied housing, priority shall be given to those applications which (A) serve the greater number of eligible households, as defined in Section 50105, with the lowest income, (B) provide the greater number of units with three or more bedrooms, (C) are located in areas where the need for rehabilitation is great as determined by the department, taking into consideration, among other factors, the amount of substandard owner-occupied housing, low vacancy rates, and limited availability of affordable housing, (D) complement the implementation of an existing housing program, and (E) maximize available and appropriate private, local, and other funding sources. The department shall also evaluate the capability of the sponsor to rehabilitate, own, and manage the rental housing development or the capability of the applicant for funding for owner-occupied housing to implement the proposed program. (2) Loans for rental housing developments may be reviewed, approved, and funded by the department directly to the sponsor. In these cases, the department shall ensure that the sponsor notifies the local legislative body of the sponsor’s loan application prior to a funding award. Loans to owner-occupants may be made by local public entities or nonprofit corporations which have received fund commitments from the department. The department shall ensure that the local public entity or nonprofit corporation applying for fund commitments for loans to owner-occupants notifies the local legislative body of the application prior to a funding award. When the department certifies a local public entity or nonprofit corporation as being capable of making these loans, the department shall delegate responsibility for reviewing and approving these loans to the local public entity or nonprofit corporation. If it is determined by the department that the local public entity or nonprofit corporation is no longer capable of making or managing these loans, the department may, at its sole discretion, revoke that delegation of responsibility or cancel the funding commitment to the local public entity or nonprofit corporation, or both. The department’s regulations shall include procedures and standards for certification and decertification. (3) A sponsor may apply for loans for one or more rental housing developments. (b) (1) A housing development may utilize any combination of federal, state, local, and private financial resources necessary to make the development affordable, for the term of the state’s regulatory agreement, to the eligible households. Notwithstanding the requirements of Section 50663, rental housing developments and owner-occupied units assisted by the program may be located anywhere in the state. (2) In the case of loans for rental housing developments awarded to nonprofit sponsors, the total secured debt in a superior position to the department’s loan, plus the department’s loan, shall not exceed 100 percent of the after rehabilitation value of the property, as determined by an appraisal of the property conducted pursuant to guidelines established in regulations of the department. (3) The maximum loan amounts per unit established in regulations pursuant to Section 50670 shall also apply to rental housing developments rehabilitated or acquired and rehabilitated pursuant to paragraph (1) of subdivision (a) of Section 50661, except that there shall not be a maximum loan amount established per project. These dollar limitations may be increased by the department, as necessary, in high-cost areas of the state or where the correction of severe health and safety defects or the provisions of handicapped accessibility standards necessitate greater assistance. The department, by regulation, may specify unit loan limits for loans made for owner-occupied housing and the circumstances under which it may grant exceptions to, or variances from, these limits. (4) (A) Loans made to sponsors of rental housing developments for acquisition and rehabilitation shall be for terms of not less than 30 years. Loans made to sponsors of rental housing developments for rehabilitation only shall be for terms of not less than 20 years. However, the term shall not exceed the useful life of the rental housing development for which the loan is made. The sponsor may elect to begin to repay the loan at any time in accordance with the prepayment plan established in accordance with paragraph (6), if it is determined by the department, that the sponsors can continue to maintain the rents at levels affordable to eligible households. (B) The term of the loan and the time for repayment may be extended by the department for additional terms as long as the rental housing development is operated in a manner consistent with the regulatory agreement and the sponsor requires an extension in order to continue to operate in a manner consistent with this chapter. Each extension shall be for a period of not less than 10 years and the total term of the revised loan shall not exceed 55 years. (5) (A) In the case of loans made for rental housing developments, eligible costs shall include those costs relating to (i) real property acquisition, including refinancing of existing debt to the extent necessary to reduce debt service to a level consistent with the provision of affordable rents and the fiscal integrity of the project; (ii) rehabilitation or reconstruction, including the conversion of nonresidential structures to residential use; (iii) general property improvements which are necessary to correct unsafe, unhealthy, or unsanitary conditions, including renovations and remodeling, including, but not limited to, remodeling of kitchens and bathrooms, installation of new appliances, landscaping, and purchase or installation of central air conditioning; (iv) necessary and related onsite improvements; (v) reasonable administrative expenses in connection with the planning and execution of the project, as determined by the department; (vi) reasonable consulting costs; (vii) rent-up costs; (viii) seismic rehabilitation improvements; and (ix) any other costs of rehabilitation authorized by the department. “Rent-up costs,” as used in this section, means costs incurred while a unit is on the housing market but not rented to its first tenant. “Seismic rehabilitation improvements,” as used in this section, means improvements which are designed to increase seismic structural safety in accordance with a plan developed by a civil engineer, a structural engineer, or an architect for a particular building that has been identified as hazardous by the city or county in which the building is located in accordance with the criteria established by the Seismic Safety Commission pursuant to Section 8875.1 of the Government Code or in accordance with a previously adopted city or county seismic safety ordinance adopted pursuant to Section 19163. (B) In the case of loans made for owner-occupied housing, eligible costs shall include those costs relating to (i) rehabilitation work expenses; (ii) cost of room additions necessary to alleviate overcrowding; (iii) costs of general property improvements including renovations and remodeling, including, but not limited to, remodeling of kitchens and bathrooms, installation of new appliances, landscaping and purchase or installation of central air conditioning, to the extent that they are necessary to correct unsafe, unhealthy, or unsanitary conditions; (iv) costs related to necessary architectural, engineering, and other technical consultants; (v) costs of preliminary reports, title policies, credit reports, appraisal reports, and fees for recording documents related to the department’s loans; (vi) costs of building permits and other governmental fees; and (vii) if in conjunction with other rehabilitation work, costs for improvements related to making the housing accessible to the handicapped. (C) Notwithstanding the provisions of Section 53130 which limit the use of allocated proceeds with respect to project operating costs, and Sections 53131 and 53133, the department may set aside or use any amounts available in the fund to establish a rental housing development default reserve for the purpose of curing or avoiding a sponsor’s defaults on the terms of any loan or other obligation which jeopardizes the financial integrity of a rental housing development or the department’s security in the rental housing development. The payment or advance of funds by the department pursuant to this subparagraph shall be solely within the discretion of the department and no sponsor shall be entitled to or have any right to payment of these funds. Funds advanced pursuant to this subparagraph shall be added to the loan amount secured by the deed of trust and shall be payable to the department upon demand. (D) Notwithstanding the provisions of Section 53130 which limit the use of allocated proceeds with respect to project operating costs, or Sections 53131 and 53133, the department may set aside or use proceeds in the fund in an amount not to exceed 3 percent of the amount of encumbrances for loans for owner-occupied housing to establish an owner-occupied housing default reserve for the purpose of curing or avoiding an owner’s default on the terms of any loan or other obligation which jeopardizes the department’s security in the owner-occupied housing. The payment or advance of funds by the department pursuant to this subparagraph shall be solely within the discretion of the department, and no homeowner shall be entitled to, or have any right to payment of, these funds. Funds advanced pursuant to this subparagraph shall be added to the loan amount secured by the deed of trust and shall be payable to the department upon demand. Interest payments from loans for owner-occupied housing shall be allocated by the department into this reserve to replace the allocated proceeds until the percent established by the department is achieved solely with interest payments. (6) Upon request of the sponsor, the department may permit repayment of a sponsor’s loan on the basis of net cashflow. The department shall develop a prepayment plan in conjunction with the sponsor which will ensure the maintenance of affordable rents and the fiscal integrity of the rental housing development. As an incentive to encourage the prepayment of loans, the department may permit the sponsor to retain one-half of the net cashflow. The department shall determine the method for calculating net cashflow, which may include a factor for excess debt service coverage or a return on cash investment to the sponsor. (7) If a loan is made pursuant to this chapter for both seismic rehabilitation improvements and other eligible rehabilitation costs, only those costs related to the seismic rehabilitation improvements shall be counted and included for purposes of the fund reservation made by Section 8878.20 of the Government Code. (c) Principal and accumulated interest is due and payable upon completion of the term of the loan. The loan shall bear interest at the rate of 3 percent per annum on the unpaid principal balance. However, the department shall reduce or eliminate interest payments on a loan for any year or, alternatively, defer interest until the deferred payment loan is repaid, if necessary to provide affordable rents to households of very low and low income. The ability to pay all or part of the 3 percent simple annual interest shall not be considered in determining the fiscal integrity of the rental housing development at the time of the rating and ranking of an application. (1) “Maintain affordable rent levels,” as used in this section, means rents may be automatically increased by the sponsor on an annual basis pursuant to an inflation index to be determined by the department. The inflation index shall reflect anticipated annual changes in rental housing development operating costs from a base year when the rents are initially established. Any sponsor may appeal to the department for a greater adjustment in rents necessary to ensure the fiscal integrity of the rental housing development. If the department does not respond within 60 days, the request shall be deemed approved. A 30-day written notice shall be given to each eligible household prior to an adjustment in the amount of rent. (2) (A) Upon prior written approval by the department, a sponsor may set income limits for incoming tenants at a level below the limit specified in Section 50079.5. If a tenant’s income exceeds this income limit established by the sponsor, but does not exceed the limit specified in Section 50079.5, that fact alone shall neither constitute cause for the tenant’s eviction, nor be a violation of the sponsor’s loan agreement. If a tenant’s income exceeds the income limit for a household specified in Section 50079.5, the tenant shall be required to vacate the assisted unit within six months from the date of income recertification or notice to the sponsor of an increase in income over the permissible income level. That period may be extended by the sponsor for an additional six-month period in high cost rental areas with low vacancy rates, as determined by the department. Any vacant units shall be rented to eligible households until the required residency by eligible households is attained. (B) In the case of limited equity housing cooperatives, the provisions of this paragraph shall apply, except that tenants whose incomes, upon recertification, exceed the limit specified in Section 50079.5 shall not be required to vacate their units. Instead, and upon six months’ notice, these tenants shall be required to pay rent in an amount equal to the market rate rent for comparable units, as determined by the department. When a tenant’s income exceeds the limit specified in Section 50079.5, the next available membership share for occupancy in a comparable unit shall be sold to a household with an income at or below this limit. (3) When operating income as defined by the department is greater than operating expenses, debt service, deposits required for reserve accounts, payments pursuant to paragraph (6) of subdivision (b) if elected by the sponsor, approved annual distributions, and any other disbursements approved by the department, these excess funds shall be paid into an account established in the fund. Funds in this account shall be appropriated to the department for use to assist rental housing developments funded pursuant to this section with proceeds of bonds issued pursuant to Chapter 27 of the Statutes of 1988, Chapter 30 of the Statutes of 1988, or Chapter 48 of the Statutes of 1988, subject to the following requirements: (i) Excess funds in the account shall be allocated first into the rental housing development default reserve established pursuant to subparagraph (C) of paragraph (5) of subdivision (b). The balance of this default reserve shall not exceed the maximum level of funding established by regulations adopted by the department. (ii) After the rental housing development default reserve is fully funded with these excess funds, the department shall use all additional excess funds in the account for payment of either unforeseen capital improvements, the cost of which would jeopardize the fiscal integrity and affordability of a rental housing development, or to further reduce rents in a rental housing development. The department may adopt regulations which specify the procedures and standards for application for, and use of, these funds. Those payments used for capital improvements shall be added to the loan amount secured by the deed of trust and shall be payable to the department upon demand. (d) Prior to disbursement of any funds for loans to rental housing developments made pursuant to this section, the department shall enter into a regulatory agreement with the sponsor in accordance with subdivision (d) of Section 50670, except that (1) the term of the regulatory agreement shall be for the original term of the loan and the agreement shall be binding upon the sponsor and successors in interest upon sale or transfer of the rental housing development or prepayment of the loan and (2) a nonprofit sponsor, other than a governmental agency, may maintain a debt service coverage ratio of 115 percent and distribute earnings in an amount no greater than 8 percent of the nonprofit sponsor’s actual investment. The regulatory agreement also shall contain provisions requiring annual inspections and review of year-end fiscal audits and related reports by the department and provisions to maintain affordable rent levels to serve eligible households. (e) Where loans will be used in conjunction with federal or other housing assistance or tax credits and a conflict exists between the other state or federal program requirements and those of this chapter with respect to the calculation of rents, the requirements of the Deferred Payment Rehabilitation Loan Program and the Special User Housing Rehabilitation Program may be waived only to the extent necessary to permit federal or other state financial participation or eligibility for tax credits. (f) “Sponsor,” for purposes of this section, has the same meaning as defined in subdivision (c) of Section 50669. (g) (1) The department shall adopt emergency regulations to implement this chapter and to amend the maximum loan amounts per unit established in regulations adopted pursuant to Section 50670, with respect to loans made with funding subject to this section. The regulations shall be conclusively presumed to be necessary for the immediate preservation of the public peace, health, safety, or general welfare within the meaning or purposes of Section 11346.1 of the Government Code. (2) Notwithstanding conflicting provisions of this chapter, the department may elect to make the regulations referred to in paragraph (1) additionally applicable until December 31, 1993, to all other deferred payment loan programs authorized by this chapter, except the programs specified in Sections 50662.5 and 50671, if the department determines that the uniformity achieved thereby will avoid significant additional administrative costs. (h) For purposes of this section, “rental housing development” means a single family house or a multifamily structure or structures containing two or more dwelling units, including efficiency units. One or more of the dwelling units in a rental housing development shall be rented or leased or otherwise occupied as a primary residence by a person or household who is not the owner of the structure or structures. For the purposes of this section, motels operated pursuant to subdivision (b) of Section 50669, residential hotels, group or congregate homes, and limited equity housing cooperatives are rental housing developments. Except for motels, the limitations concerning types of residents and minimum number of units set forth in subdivision (b) of Section 50669 shall not apply. (i) “Affordable rent” for the purposes of this section shall be established by the department in the regulations authorized by subdivision (g). However, the initial rents shall be established by the department based on a designated family size for each unit size, and those initial rents shall not exceed 30 percent of 50 percent of the area median income adjusted by that designated family size for units restricted to occupancy by very low income households; or 30 percent of 60 percent of area median income adjusted by that designated family size for units restricted to occupancy by low-income households. In establishing affordable rent levels, the department shall make provision in its regulations for projects serving the physically and mentally handicapped persons. (Amended by Stats. 2011, Ch. 239, Sec. 11. (SB 562) Effective January 1, 2012.)
  33. 50669.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    This section defines key terms for deferred-payment rehabilitation loans, including what counts as a deferred-payment loan, a rental housing development, a sponsor, and a local public entity.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50669. As used in Section 50670: (a) “Deferred-payment loan” means a loan for acquisition and rehabilitation of a rental housing development that (1) has a term of not more than 30 years, but that shall not in any event exceed the useful life of the rental housing development for which the loan is made, as determined by the department, whichever is less, and (2) is repaid in a single payment upon refinancing of the development at the end of the term of the loan. Those loans shall bear interest at the rate of 3 percent per annum on the unpaid principal balance, provided, however, that the department shall reduce or eliminate interest payments on a loan for any year or, alternatively, defer interest payments until the deferred-payment loan is repaid, if necessary to provide affordable rents to households of very low and low income. The ability to pay all or part of the 3-percent simple annual interest shall not be considered in determining the fiscal integrity of the rental housing development at the time of the rating and ranking of an application. (b) “Rental housing development” means a residential structure or structures containing five or more rental dwelling units for the elderly or handicapped, provided that each unit is equipped with a kitchen and bathroom, or a structure or structures intended for use as a group home by five or more handicapped individuals or a residential hotel for any low or very low income household. “Residential hotel” shall have the same meaning as used in paragraph (1) of subdivision (b) of Section 50519 but, for purposes of this subdivision, there shall be an additional requirement that a majority of the guestrooms in the hotel be residential hotel units. A “residential hotel unit” means a room used or intended to be used as a primary residential unit by a person or persons, that is subject to Chapter 2 (commencing with Section 1940) of Title 5 of Part 4 of Division 3 of the Civil Code, but that does not have either a self-containing kitchen or bathroom, or both. A “residential hotel unit” also includes an efficiency unit as defined in Section 17958.1. “Rental housing development” also means a residential structure or structures in operation or previously operated as a motel and subject to subdivision (b) of Section 1940 of the Civil Code, which will contain five or more dwelling units for any low or very low income households. Eligible rehabilitation costs relative to motels may include costs associated with adding self-containing kitchens and bathrooms in each unit. (c) “Sponsor” means any individual, joint venture, partnership, limited partnership, trust, corporation, cooperative, local public entity, duly constituted governing body of an Indian reservation or rancheria, or other legal entity, or any combination thereof, certified by the department as qualified to own, manage, and rehabilitate a rental housing development. A sponsor may be organized for profit or limited profit or be nonprofit. (d) “Local public entity” includes, but is not limited to, a tribally designated housing entity as specified in Sections 50079 and 50104.6.5. (Amended by Stats. 2019, Ch. 660, Sec. 10. (AB 1010) Effective January 1, 2020.)
  34. 50670.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    The department must create a housing rehabilitation loan program, set loan and rent controls, and use regulatory agreements before funds are disbursed.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50670. (a) The department shall establish a Special User Housing Rehabilitation Program under which it may make deferred-payment loans to sponsors for the rehabilitation or the acquisition and rehabilitation of rental housing developments to be occupied by eligible households of very low and low income. The department may make such loans in an amount necessary to acquire and rehabilitate a rental housing development and to provide affordable rents, when considered in conjunction with other financing on or assistance to such development, for eligible households of very low and low income for the term of the regulatory agreement pursuant to subdivision (d). In no event, may the amount of the loan exceed 90 percent of the combined amount of the fair market value of the rental housing development and the cost of rehabilitation work to be undertaken. However, with respect to a nonprofit sponsor or local public entity, the department may loan up to 100 percent of such combined amount. (b) In making a loan pursuant to this section, the department may disburse funds in a manner and in accordance with a schedule which ensures the economic feasibility of the rental housing development and the completion of the rehabilitation work and which protects the interests of the state. (c) Prior to making a loan commitment pursuant to this section, the department shall do all of the following: (1) Inspect the rental housing development to be assisted pursuant to this section to determine the economic feasibility of rehabilitating such development. (2) Approve a plan submitted by the sponsor which includes a plan for occupancy of the development, a description of the nature and costs of rehabilitation to be undertaken, and projections as to rental levels in such development. (d) Prior to disbursement of any funds pursuant to this section, the department shall enter into a regulatory agreement with the sponsor which provides for the limitation on profits in the operation of the rental housing development. When the sponsor is not a nonprofit sponsor or a local public entity, the regulatory agreement with the sponsor shall limit the distribution of the sponsor’s earnings to an annual amount no greater than 8 percent of the sponsor’s actual investment (excluding unaccrued liabilities of the sponsor) in the rental housing development. The regulatory agreement shall also set standards for tenant selection to ensure occupancy by eligible households of very low and low income for the term of such agreement, govern the terms of occupancy agreements, and contain other provisions necessary to carry out the purposes of this section. Upon recordation of the agreement in the office of the county recorder in the county in which the real property subject to such agreement is located, the agreement shall be binding upon the sponsor and successors in interest for the original term of the loan, as determined by the department, but for a period of not more than 30 years. (e) The department shall fix and alter, from time to time, a schedule of rents on each development as may be necessary to provide residents of the rental housing development with affordable rents, to the extent consistent with the financial integrity of such development. No sponsor shall increase the rent on any unit without the prior permission of the department which shall be given only if the sponsor affirmatively demonstrates that such increase is required to defray necessary operating costs or to avoid jeopardizing the fiscal integrity of the housing development. However, in the event that the department does not act upon a request for a rent increase within 60 days from documented receipt of the request, such increase shall be deemed approved. (f) The department may annually inspect rental housing developments assisted pursuant to this section to ensure compliance with the terms of the regulatory agreement and may require such audits, financial statements, and other documents as are necessary to ensure compliance with the terms of the regulatory agreement and to ensure occupancy by eligible households of very low and low income. (g) With respect to rental housing developments rehabilitated pursuant to this section: (1) The department shall make payments and shall provide advisory assistance to persons and families permanently displaced as a result of such rehabilitation in accordance with the requirements of subdivisions (b) and (e) of Section 7265.3 of the Government Code. (2) The department shall provide affordable temporary housing to eligible households of very low and low income who reside in a rental housing development prior to rehabilitation or acquisition and rehabilitation of such housing development, who are required to move during the period of rehabilitation, and who occupy a unit in such development upon completion of rehabilitation. Such temporary housing shall be provided until units in the rental housing development are available for occupancy by such households. (3) For the purposes of subdivision (f) of Section 7265.3 of the Government Code, moneys appropriated for purposes of this chapter on and after the effective date of the amendments to this section enacted by the Statutes of the 1983 Regular Session of the Legislature, and by Chapter 1043 of the Statutes of 1979, whether or not reappropriated for transfer to the Housing Rehabilitation Loan Fund, shall constitute available state funds. (4) Eligible households of very low and low income displaced as a result of rehabilitation pursuant to this section shall be accorded first priority in occupying units in the rental housing development, from which they were displaced, subsequent to rehabilitation. (Amended by Stats. 1983, Ch. 682, Sec. 2. Effective September 11, 1983.)
  35. 50671.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    This section sets special disaster-relief rules for certain rental-housing rehabilitation loans and assistance after the 1987 earthquake.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50671. For the purpose of providing disaster relief to owners of rental housing and the tenants residing in rental housing that was damaged or destroyed as a result of the Los Angeles-Whittier Narrows Earthquake on October 1, 1987, or subsequent aftershocks, resulting in a state of emergency proclaimed by the Governor pursuant to Section 8625 of the Government Code, financial assistance may be provided to disaster victims as prescribed in this chapter under the following special conditions, which shall prevail over conflicting provisions of this chapter and administrative regulations: (a) Funds may be used for the purpose of rehabilitating, including reconstruction of, rental housing developments, including residential hotels, which were damaged or destroyed as a result of the earthquake. (b) Rental housing developments, as otherwise defined in subdivision (b) of Section 50669, need not contain a minimum of five rental dwelling units. One rental dwelling unit shall be sufficient. (c) The loans need not be made in support of the programs specified in Section 50663. (d) As a condition of assistance to sponsors of rental housing developments, the department may establish those rent levels for units assisted pursuant to this section as it may determine (1) are necessary to alleviate hardship in the disaster area, (2) provide for affordable rents or rents not exceeding those charged prior to the earthquakes, and (3) are consistent with the economic feasibility of the assisted rental housing development. In addition to the other requirements of this chapter, the department may require terms and conditions as it determines necessary to meet the needs of the disaster area and its victims, to ensure the fiscal integrity of the rental housing development and to protect the interests of the state. The department shall require that priority in occupancy in any unit assisted pursuant to this section shall be given first to occupants of rental units assisted pursuant to this section who were displaced by the earthquakes or resulting rehabilitation of the assisted rental units. After no additional displaced persons qualify for, or remain in, any assisted units, these units shall be available to on a priority basis, or occupied by, very low income households and lower income households. (e) In allocating funds to local public entities and nonprofit corporations, the department shall consider the availability of other resources to assist rental housing and the occupants of that rental housing and shall give priority to those applicants in jurisdictions with the greatest housing need resulting from the disaster and the fewest resources to address those needs. (f) The department may waive the maximum loan amounts and per-unit loan amounts established by regulation as it determines necessary to serve the disaster victims. (g) A loan to a nonprofit corporation or a limited partnership in which a nonprofit corporation is a general partner which owns or will acquire a rental housing development shall not exceed 100 percent of the combined costs of rehabilitation and refinancing existing indebtedness or rehabilitation and acquisition costs. (h) A loan may be made to a local housing authority or community development commission to rehabilitate vacant rental housing that it owns and operates. (i) When a loan will be used in conjunction with federal or other state housing assistance or tax credits and a conflict exists between the other state or federal program requirements and this chapter with regard to determining maximum allowable rents, the requirements of this chapter may be waived only to the extent necessary to permit the federal or other state financial participation or eligibility for tax credits. (j) Eligible rehabilitation or reconstruction costs may include the costs of temporary relocation where damage caused by the earthquake or rehabilitation or reconstruction of the rental housing development necessitates temporarily displacement of the tenants. The amount of monthly relocation assistance provided to eligible households temporarily displaced shall not exceed the difference between monthly rent paid by the tenant prior to the earthquake and rent in the replacement housing located by the local public entity or nonprofit corporation until rehabilitation is completed, but in no case shall, the total amount exceed one thousand dollars ($1,000). Prior to providing relocation assistance payments, the local public entity or nonprofit corporation shall ensure that displaced tenants have applied for any and all other financial assistance for which the tenants are eligible that is provided by any other federal, state, or local programs. (k) The department may provide funds to local public entities and nonprofit corporations for related administrative expenses in an amount not to exceed 5 percent of the total loan commitments subject to this section from the Housing Rehabilitation Loan Fund. ( l) No funds shall be committed pursuant to this section on or after January 1, 1990. (Amended by Stats. 1988, Ch. 1291, Sec. 2. Effective September 26, 1988.)
  36. 50671.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    The department may provide disaster-relief housing loans, but only under specified conditions and with limits on how the money is used.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50671.5. For the purpose of providing disaster relief to owners of rental housing and the tenants residing in rental housing that was damaged or destroyed as a result of a natural disaster as defined by Section 8680.3 of the Government Code, resulting in a state of emergency proclaimed by the Governor pursuant to Section 8625 of the Government Code, financial assistance may be provided to disaster victims as prescribed in this chapter under the following special conditions, which shall prevail over conflicting provisions of this chapter and administrative regulations: (a) (1) Funds may be used to make loans for (A) repair or (B) refinancing in conjunction with repair, of rental housing developments that were damaged or destroyed as a result of the natural disaster. For purposes of this section, “repair” includes reconstruction. (2) The loans shall only be made in a city, county, or city and county proclaimed by the Governor to be in a state of disaster to assist rental housing developments that are damaged or destroyed by a natural disaster and only to the extent that other federal and state resources, private insurance proceeds, or private institutional lending sources, are not available or do not provide the assistance or coverage needed to rehabilitate or reconstruct that housing. (3) The loans may be provided (A) to persons who do not qualify for loan assistance from an agency of the United States for repair of the damage caused by a natural disaster, or, (B) to the extent that federally provided or assisted financing may be insufficient to accomplish the necessary repair or would require rent increases above the rent charged for the units prior to the disaster. (4) As to damaged rental housing, the loan funds shall be used to correct serious, life-threatening violations of the state or local building code or housing standards which are required to be corrected prior to occupancy, and to bring the property into compliance with seismic safety standards. If reconstruction is precluded on the original project site due to documented soil, geological, or other conditions which cannot be mitigated at a reasonable cost or the cost of the repair or reconstruction would exceed 110 percent of the value after reconstruction, the department may approve reconstruction on a comparable site in the immediate neighborhood. However, loan funds shall not be used for acquisition of real property. (b) (1) Rental housing developments, for this purpose, shall include, but not be limited to, multifamily rental dwellings, apartments, residential hotels, rental mobilehomes, mobilehome parks, group homes for senior citizens or the disabled, buildings of mixed residential rental and commercial use, and buildings of mixed owner-occupant and rental use, that are made available for permanent residency of tenants. Rental housing developments shall contain five or more units. For buildings of mixed residential rental and commercial use, funds may be used for the repair of commercial as well as residential space. (2) To be eligible for funds under this section, the owner of any rental housing development set forth above, shall have been the owner of record at the time of the natural disaster. (c) In addition to the other requirements of this chapter, the department may require terms and conditions as it determines necessary to meet the needs of the disaster area and its victims, to ensure the fiscal integrity of the rental housing development, and to protect the interests of the state. The department shall require that priority in occupancy in any unit assisted pursuant to this section shall be given first to occupants of rental units assisted pursuant to this section who were displaced by the natural disaster or the resulting repair of the assisted rental units. Second priority shall be given to other persons who were displaced from housing as a result of the natural disaster. (d) In allocating funds, the department shall consider the availability of other resources to assist rental housing and the occupants of that rental housing and shall give priority to those applicants in jurisdictions with the greatest housing need resulting from the disaster and the fewest resources to address those needs. In allocating funds, the department shall also consider the availability of program funds and may give first priority to a loan request for repair only, and second priority to a loan request for refinancing and repair. (e) (1) The department may waive the maximum loan amounts and per-unit loan amounts established by regulation as it determines necessary to serve the disaster victims. Loans made pursuant to this section for repair shall have a term of up to 20 years. Upon the request of the borrower, the department may permit repayment of the principal amount of any loan provided under this section, or of any interest on that loan, before the end of the loan term. This section shall not be construed to authorize any deferrals on the payment of principal or interest, unless the department determines that temporary deferral is necessary for fiscal integrity or to prevent foreclosure. The deferral period may be extended for an additional 12 months if the extension is authorized by the director. (2) The department may set interest rates as specified in subdivision (m) of Section 50662.7. (f) A loan shall not exceed the combined costs of refinancing existing indebtedness and repair. However, the total secured debt in a superior position to the department’s loan, plus the department’s loan, shall not exceed 100 percent of the after-repair value of the property, except that the department may waive this limitation in individual cases when necessary to ensure correction of serious, life-threatening violations of the state or local building code or housing standards which are required to be corrected prior to occupancy, seismic safety standards, and general property improvements relating to these standards, pursuant to subdivision (a). (g) Prior to full loan approval, the department may make loans not exceeding five thousand dollars ($5,000) per loan to pay for the costs of predevelopment activity which must be undertaken prior to making eligible repairs if, in the opinion of the department, the borrower is unable to pay for these costs in advance of full loan approval. These loans shall bear interest at the rate of 6 percent simple interest per annum and shall be evidenced by a promissory note secured by a deed of trust. At the time of full loan approval, the predevelopment loan shall be canceled, and the principal amount of the loan and all accrued interest shall be included in the amount of the full loan and shall be subject to the same interest rate and terms and conditions as the full loan. For purposes of computing the maximum loan amount, the amount of the predevelopment loan shall be included. (h) Tenants of rental housing developments repaired with assistance provided under this section who are displaced as a result of either the natural disaster or the repair work, or both the natural disaster and the subsequent repair work, shall be entitled to relocation benefits pursuant to, and subject to, the requirements of Section 7265.3 of the Government Code. Sponsors of assisted rental housing developments shall be responsible for providing the benefits and assistance. The costs of the benefits and the assistance provided to tenants shall be eligible for funding by a loan provided pursuant to this section. Benefits and assistance provided hereunder shall not duplicate benefits or assistance for temporary housing received by tenants from any other public source or from insurance proceeds. (i) The department may make loans directly to owners of rental housing, or contract for the administration of loans under this section with entities that it determines to have the necessary experience to successfully administer the loan program, including, but not limited to, local public agencies and private organizations. The department may authorize, under that contract, the payment of expenses incurred by the entities in administering the loan program and may prescribe the conditions pursuant to which the entities shall administer the loans. (j) To the extent that any housing unit or other structure that was damaged or destroyed is reconstructed pursuant to this section with substantially the same number of units, it shall be deemed to be “existing housing” for purposes of subdivision (d) of Section 37001.5. (k) The department may set aside or use funds that are made available for the purposes of this section for the purpose of curing or averting a housing sponsor’s default on the terms of any loan or other obligation where that default would jeopardize the financial integrity of a rental housing development or the department’s security in the rental housing development assisted pursuant to this section. The payment or advance of funds by the department pursuant to this subdivision shall be exclusively within the department’s discretion, and no person shall be deemed to have any entitlement to the payment or advance of those funds. The amount of any funds expended by the department pursuant to this subdivision shall be added to the loan amount secured by the deed of trust and shall be payable to the department upon demand. ( l) Any rule, policy, or standard of general application employed by the Department of Housing and Community Development in implementing the provisions of this section shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (m) The department shall adopt regulations establishing terms and conditions upon which repair loans may be made. These regulations shall be made available to the public by the department. (n) Fund allocations made pursuant to this section shall not be subject to review or approval by the Local Assistance Loan and Grant Committee of the Department of Housing and Community Development operating pursuant to Subchapter 1 (commencing with Section 6900) of Chapter 6.5 of Title 25 of the California Code of Regulations. (o) (1) In order to be eligible for one or more loans pursuant to this section, the borrower shall agree to all of the following: (A) All buildings shall be connected to the foundation systems except those of unreinforced masonry wall construction as necessary to meet the seismic requirements of the 1973 Edition of the Uniform Building Code of the International Conference of Building Officials in a manner approved by the department, which may include seismic strengthening of foundation cripple walls, and affixing or bolting sill plates to the foundation. (B) For all buildings of unreinforced masonry wall construction, all repairs and seismic retrofits shall comply with earthquake hazard mitigation programs established pursuant to Chapter 12.2 (commencing with Section 8875) of Division 1 of Title 2 of the Government Code. (C) All water heaters shall be braced, anchored, or strapped to resist falling or horizontal displacement due to earthquake motion. (2) The loans shall include an amount sufficient to meet the requirements of paragraph (1). (Amended by Stats. 1993, Ch. 1105, Sec. 4. Effective January 1, 1994.)
  37. 50671.6.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. )

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    This section lets the department provide disaster-related housing loans for rental housing rehabilitation, subject to special conditions and rent affordability requirements.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.5. Deferred-Payment Rehabilitation Loans [50660 - 50671.6] ( Chapter 6.5 added by Stats. 1978, Ch. 884. ) ## 50671.6. For the purpose of preserving or expanding the supply of rental housing affordable to low- and very low-income tenants in cities or counties affected by a natural disaster as defined by Section 8680.3 of the Government Code, resulting in a state of emergency proclaimed by the Governor pursuant to Section 8625 of the Government Code, financial assistance may be provided as prescribed in this chapter under the following special conditions, which shall prevail over conflicting provisions of this chapter and administrative regulations: (a) Funds may be used for the purpose of repair or refinancing in conjunction with rehabilitation of rental housing developments. For purposes of this section, rehabilitation may include reconstruction. The loans shall only be made in a city, county, or city and county proclaimed by the Governor to be in a state of disaster and only when the Director of the Department of Housing and Community Development has determined that the disaster has decreased the supply of low-income rental housing. The loan funds may be used to repair disaster related damage, bring the housing into compliance with applicable health and safety and seismic safety standards, and to make property improvements that are related to that compliance. If reconstruction is precluded on the original project site due to documented soil, geological, or other conditions that cannot be mitigated at a reasonable cost, or the cost of the rehabilitation or reconstruction would exceed 110 percent of the value after reconstruction, the department may approve reconstruction on a comparable site in the immediate neighborhood. (b) (1) Rental housing developments, for this purpose, shall include, but not be limited to, multifamily rental dwellings, apartments, residential hotels, mobilehome parks, group homes for senior citizens or the disabled, buildings of mixed residential rental and commercial use, and buildings of mixed owner-occupant and rental use that are made available for permanent residency of tenants. Rental housing developments must contain five or more units. For buildings of mixed residential rental and commercial use, funds may be used for costs directly attributable to the residential space or the conversion of commercial space to residential space or a pro-rata share, based on gross floor area mix at the time of the disaster, if costs cannot be directly attributable to either commercial or residential space. (2) Eligible cost shall include those costs relating to all of the following: (A) Refinancing of existing debt to the extent necessary to reduce debt service to a level consistent with the provision of affordable rents and the fiscal integrity of the project. (B) Rehabilitation or reconstruction. (C) General property improvements that are necessary to correct unsafe, unhealthy, or unsanitary conditions, including renovations and remodeling, including, but not limited to, remodeling of kitchens and bathrooms, installation of new appliances, landscaping, and purchase or installation of central air conditioning. (D) Necessary and related onsite improvements. (E) Reasonable administrative expenses in connection with the planning and execution of the project, as determined by the department. (F) Reasonable consulting costs. (G) Rent-up costs. (H) Seismic rehabilitation improvements. (I) Any other costs of rehabilitation authorized by the department. (3) (A) “Rent-up costs,” as used in this section, means costs incurred while a unit is on the housing market but not rented to its first tenant. (B) “Seismic rehabilitation improvements,” as used in this section, means improvements that are designed to increase seismic structural safety in accordance with a plan developed by a civil engineer, a structural engineer, or an architect for a particular building that has been identified as hazardous by the city or county in which the building is located in accordance with the criteria established by the Seismic Safety Commission pursuant to Section 8875.1 of the Government Code or in accordance with a previously adopted city or county seismic safety ordinance adopted pursuant to Section 19163. (4) Eligible activities, not fundable under the program, shall include those costs relating to both of the following: (A) Acquisition of property. (B) Conversion of nonresidential structures to residential use. (c) The loans need not be made in support of the programs specified in Section 50663. (d) As a condition of assistance under this section, sponsors of rental housing developments shall agree to the restrictions set forth in this subdivision with respect to assisted units. The proportion of assisted units shall at least be equal to the proportion of project costs financed pursuant to this section to the total after-rehabilitation value of the rental housing development. (1) For any loan under this section for the rehabilitation of units, the borrower must maintain affordable rent levels for low-income households, as defined by Section 50079.5, for assisted units for the term of the loan. (2) “Maintain affordable rent levels,” as used in this section, means rents may be automatically increased by the sponsor on an annual basis pursuant to increases in the median income of the county in which the rental housing development is located. Any sponsor may appeal to the department for a greater adjustment in rents necessary to ensure the fiscal integrity of the rental housing development. If the department does not respond within 60 days, the request shall be deemed approved. A 30-day written notice shall be given to each eligible household prior to an adjustment in the amount of rent. (3) (A) Upon prior written approval by the department, a sponsor may set income limits for incoming tenants at a level below the limit specified in Section 50079.5. If a tenant’s income exceeds this income limit established by the sponsor, but does not exceed the limit specified in Section 50079.5, that fact alone shall neither constitute cause for the tenant’s eviction, nor be a violation of the sponsor’s loan agreement. If a tenant’s income exceeds the income limit for a household specified in Section 50079.5, the tenant shall be required to vacate the assisted unit within six months from the date of income recertification or notice to the sponsor of an increase in income over the permissible income level. That period may be extended by the sponsor for an additional six-month period in high cost rental areas with low vacancy rates as determined by the department. Any vacant units shall be rented to eligible households until the required residency by eligible households is attained. (B) In the case of limited equity housing cooperatives, the provisions of this paragraph shall apply, except that tenants whose incomes, upon recertification, exceed the limit specified in Section 50079.5 shall not be required to vacate their units. Instead, and upon six months’ notice, these tenants shall be required to pay rent in an amount equal to the market rate rent for comparable units, as determined by the department. When a tenant’s income exceeds the limit specified in Section 50079.5, the next available membership share for occupancy in a comparable unit shall be sold to a household with an income at or below this limit. (4) Any rental housing development assisted pursuant to this section shall be governed by a regulatory agreement between the sponsor and the department. The agreement shall, at a minimum, contain all of the restrictions set forth in this subdivision. The regulatory agreement shall be recorded, or referenced in a document recorded, in the office of the county recorder for the county in which the rental housing development is located. The regulatory agreement shall be deemed a covenant running with the land and shall be binding upon the sponsor and any and all successors-in-interest in case of sale or transfer of the rental housing development for the original term of the loan, and any extensions thereof, regardless of any prepayment of the loan. (5) If any unit undergoing rehabilitation or reconstruction pursuant to funding under this section is subject to a currently applicable regulatory agreement between the department and a housing sponsor, that agreement shall prevail over this subdivision. (6) In addition to the other requirements of this chapter, the department may require terms and conditions as it determines necessary to meet the needs of the disaster area and its victims, to ensure the fiscal integrity of the rental housing development, and to protect the interests of the state. The department shall require that priority in occupancy in any unit assisted pursuant to this section shall be given first to those occupants who were displaced by the natural disaster or the resulting rehabilitation of the assisted rental units. Second priority shall be given to other persons who were displaced from housing as a result of the natural disaster. (e) (1) When the requirements of subdivision (a) have been met, the department shall announce the availability of funds and accept applications for fund commitments until any deadline established pursuant to subdivision (e) of 50661.5 has expired. Fund commitments shall be based on a ranking of applications, which shall occur at least once for each new disaster. In making this ranking for rental housing developments, priority shall be given to those projects that: (A) serve the greater number of eligible households, as defined in Section 50105, with the lowest incomes; (B) suffered substantial damage as a result of the natural disaster; (C) are located in areas where the housing need is great as determined by the department, taking into consideration, among other factors, low vacancy rates, high market rents, long waiting lists for subsidized housing, the stock of substandard housing, and the potential loss of subsidized rental housing to market-rate housing through demolition, foreclosure, or subsidy termination; (D) complement the implementation of an existing housing program; (E) maximize private local and other funding sources; and (F) maximize long-term benefits for eligible households, as defined in Sections 50079.5 and 50105. (2) The department shall also evaluate the capability of the sponsor to rehabilitate, own, and manage the rental housing development. (f) (1) The department may waive the maximum loan amounts and per-unit loan amounts established by regulation as it determines necessary to serve the disaster victims. Loans made pursuant to this section for rehabilitation, shall have a term of up to 20 years. Loans made pursuant to this section for rehabilitation, or refinancing and rehabilitation shall have a term of up to 30 years. (2) Upon request of the sponsor, the department may permit repayment of a sponsor’s loan on the basis of net cash-flow. The department shall develop a prepayment plan in conjunction with the sponsor that shall ensure the maintenance of affordable rents and the fiscal integrity of the rental housing development. As an incentive to encourage the prepayment of loans, the department may permit the sponsor to retain one-half of the net cash-flow. The department shall determine the method for calculating net cash-flow, which may include a factor for excess debt service coverage or a return on cash investment to the sponsor. (3) Principal and accumulated interest is due and payable upon completion of the term of the loan. The loan shall bear interest at the rate of three percent per annum on the unpaid principal balance. However, the department shall reduce or eliminate interest payments on a loan for any year or, alternatively, defer interest until the deferred payment loan is repaid, if necessary to provide affordable rents to households of very low-income and low-income. The ability to pay all or part of the three percent simple annual interest shall not be considered in determining the fiscal integrity of the rental housing development at the time of the rating and ranking of an application. (g) When a loan will be used in conjunction with federal or other state housing assistance or tax credits, and a conflict exists between the other state or federal program requirements and this chapter with regard to determining maximum allowable rents, the requirements of this chapter may be waived only to the extent necessary to permit the federal or other state financial participation or eligibility for tax credits. (h) Tenants of rental housing developments rehabilitated with assistance provided under this section who are displaced as a result of either the rehabilitation work, or both the natural disaster and the subsequent rehabilitation work, shall be entitled to relocation benefits pursuant to, and subject to, the requirements of Section 7265.3 of the Government Code. The costs of the benefits and the assistance provided to tenants shall be eligible for funding by a loan provided pursuant to this section. Benefits and assistance provided hereunder shall not duplicate benefits or assistance for temporary housing received by tenants from any other public source or from insurance proceeds. (i) The department may make loans directly to owners of rental housing, or contract for the administration of loans under this section with entities that it determines to have the necessary experience to successfully administer the loan program, including, but not limited to, local public agencies and private organizations. The department may authorize, under that contract, the payment of expenses incurred by the entities in administering the loan program and may prescribe the conditions pursuant to which the entities shall administer the loans. (j) To the extent that any housing unit or other structure that was damaged or destroyed is reconstructed pursuant to this section with substantially the same number of units, it shall be deemed to be ”existing housing” for purposes of subdivision (d) of Section 37001.5. (k) Any rule, policy, or standard of general application employed by the Department of Housing and Community Development in implementing this section shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. ( l) The department shall adopt regulations establishing terms and conditions upon which repair loans may be made. These regulations shall be made available to the public by the department. (m) Fund allocations made pursuant to this section shall not be subject to review or approval by the Local Assistance Loan and Grant Committee of the Department of Housing and Community Development operating pursuant to Subchapter 1 (commencing with Section 6900) of Chapter 6.5 of Title 25 of the California Code of Regulations. (n) (1) In order to be eligible for one or more loans pursuant to this section, the borrower shall agree to all of the following: (A) All buildings shall be connected to the foundation systems, except those of unreinforced masonry wall construction, as necessary to meet the seismic requirements of the 1973 Edition of the Uniform Building Code of the International Conference of Building Officials in a manner approved by the department, that may include seismic strengthening of foundation cripple walls, and affixing or bolting sill plates to the foundation. (B) For all buildings of unreinforced masonry wall construction, all repairs and seismic retrofits shall comply with earthquake hazard mitigation programs established pursuant to Chapter 12.2 (commencing with Section 8875) of Division 1 of Title 2 of the Government Code. (C) All water heaters shall be braced, anchored, or strapped to resist falling or horizontal displacement due to an earthquake motion. (2) The loans shall include an amount sufficient to meet the requirements of paragraph (1). (Added by Stats. 1993, Ch. 1105, Sec. 5. Effective January 1, 1994.)
  38. 50672.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.6. Loans and Grants to Qualified Rental Housing Developments [50672 - 50672.3] ( Chapter 6.6 added by Stats. 2021, Ch. 111, Sec. 17. )

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    The Legislature states that this chapter is intended to speed up housing developments that got committed funds from certain multifamily housing direct loan programs but cannot move forward because tax credit and bond allocations are competitive.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.6. Loans and Grants to Qualified Rental Housing Developments [50672 - 50672.3] ( Chapter 6.6 added by Stats. 2021, Ch. 111, Sec. 17. ) ## 50672. It is the intent of the Legislature in enacting this chapter to expedite the construction and production of housing developments that have received a commitment of funds from multifamily housing direct loan programs administered by the department, but are unable to proceed due to the competitiveness of tax credit and bond allocations. (Amended by Stats. 2022, Ch. 70, Sec. 14. (SB 197) Effective June 30, 2022.)
  39. 50672.1.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.6. Loans and Grants to Qualified Rental Housing Developments [50672 - 50672.3] ( Chapter 6.6 added by Stats. 2021, Ch. 111, Sec. 17. )

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    This section defines terms used in the chapter, including “Department,” “multifamily housing program,” “Program,” “rental housing development,” and “qualified rental housing development.”

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.6. Loans and Grants to Qualified Rental Housing Developments [50672 - 50672.3] ( Chapter 6.6 added by Stats. 2021, Ch. 111, Sec. 17. ) ## 50672.1. For purposes of this chapter: (a) “Department” means the Department of Housing and Community Development. (b) “Multifamily housing program” includes, but is not limited to, all of the following programs: (1) The Joe Serna, Jr. Farmworker Housing Grant Program (Chapter 3.2 (commencing with Section 50515.2)). (2) The CalHome Program (Chapter 6 (commencing with Section 50650)). (3) The Multifamily Housing Program administered under Chapter 6.7 (commencing with Section 50675). (4) The Infill Incentive Grant Program of 2007 (Section 53545.13). (5) The Infill Infrastructure Grant Program of 2019 (Part 12.5 (commencing with Section 53559)). (6) The Transit-Oriented Development Implementation Program (Part 13 (commencing with Section 53560)). (7) Housing for a Healthy California Program (Part 14.2 (commencing with Section 53590)). (8) The Veterans Housing and Homeless Prevention Act of 2014 (Article 3.2 (commencing with Section 987.001) of Chapter 6 of Division 4 of the Military and Veterans Code). (9) The Affordable Housing and Sustainable Communities Program (Part 1 (commencing with Section 75200) of Division 44 of the Public Resources Code). (10) The No Place Like Home Program (Part 3.9 (commencing with Section 5849.1) of Division 5 of the Welfare and Institutions Code). (11) The HOME Investment Partnership Program (42 U.S.C. Sec. 12721 et seq.) (12) The National Housing Trust Fund established pursuant to the Housing and Economic Recovery Act of 2008 (Public Law 110-289), and implementing federal regulations. (c) “Program” means the program established under this chapter. (d) “Rental housing development” means a “qualified low-income housing project,” as defined in subsection (g) of Section 42 of the federal Internal Revenue Code (26 U.S.C. Sec. 42). (e) “Qualified rental housing development” means a rental housing development that received an award letter from any multifamily housing direct loan program administered by the department prior to July 1, 2022. (Amended by Stats. 2022, Ch. 70, Sec. 15. (SB 197) Effective June 30, 2022.)
  40. 50672.2.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.6. Loans and Grants to Qualified Rental Housing Developments [50672 - 50672.3] ( Chapter 6.6 added by Stats. 2021, Ch. 111, Sec. 17. )

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    The department may award forgivable loans or grants for qualified rental housing developments, and funded loans must carry 0% interest. A recipient development must start construction within 180 days, though the department can extend that deadline by up to 90 days in limited cases.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.6. Loans and Grants to Qualified Rental Housing Developments [50672 - 50672.3] ( Chapter 6.6 added by Stats. 2021, Ch. 111, Sec. 17. ) ## 50672.2. (a) (1) Upon appropriation by the Legislature for purposes of this chapter, the department may award a forgivable loan or grant to a qualified rental housing development to replace federal and state low-income housing credit equity contained in the application for which the development received the original award letter or, if applicable, a subsequent application to the California Tax Credit Allocation Committee. (2) The department may, in its sole discretion, adjust the grant or loan amount to account for reduction of fees associated with tax credit syndication, reasonable cost increases, including unforeseeable cost overruns or gaps in financing due to changed market conditions, or other financing sources obtained by the sponsor of the development. (3) If funds provided under this chapter are provided as a loan, the loan shall have an interest rate of 0 percent. (b) (1) A rental housing development that receives a grant or loan under this chapter shall commence construction within 180 days of issuance of an award letter for funds provided pursuant to this chapter. (2) The department may, within its sole discretion, extend the 180-day requirement based on conditions beyond the control of the development sponsor, provided the revised construction commencement date is not more than 90 days beyond the 180-day period. (c) (1) The department shall determine the terms under which a loan or grant is subject to repayment. (2) The terms established by the department shall include, but not be limited to, conversion of the development to market rate housing or sale or refinancing of the development with a distribution of net equity. (3) Repayments shall be deposited into the Housing Rehabilitation Loan Fund established by Section 50661 and shall be used for the purposes of the Multifamily Housing Program established by Chapter 6.7 (commencing with Section 50675). (d) (1) The department may establish an application fee for the program. (2) A loan or grant awarded pursuant to this chapter shall not be subject to any annual monitoring fees, except for the monitoring fees associated with the original multifamily housing program loan or loans provided by the department. (Amended by Stats. 2022, Ch. 70, Sec. 16. (SB 197) Effective June 30, 2022.)
  41. 50672.3.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.6. Loans and Grants to Qualified Rental Housing Developments [50672 - 50672.3] ( Chapter 6.6 added by Stats. 2021, Ch. 111, Sec. 17. )

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    The department may adopt guidelines to administer this chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.6. Loans and Grants to Qualified Rental Housing Developments [50672 - 50672.3] ( Chapter 6.6 added by Stats. 2021, Ch. 111, Sec. 17. ) ## 50672.3. In order to expedite the development of qualified rental housing developments that are ready to proceed to construction except for obtaining tax credit or bond allocations from the California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee, the department may adopt guidelines to administer this chapter. Guidelines adopted pursuant to this chapter shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (Added by Stats. 2021, Ch. 111, Sec. 17. (AB 140) Effective July 19, 2021.)
  42. 50675.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. )

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    This section states legislative findings about California renters’ housing needs and expresses the Legislature’s intent to create a single multifamily housing program that replaces several existing department programs.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. ) ## 50675. The Legislature finds and declares all of the following: (a) Large numbers of California’s renters face excessive housing costs and live in overcrowded or substandard units. Many of these renters also have special housing needs arising from their employment status, age, or disability, and live in communities suffering from a lack of investment. (b) In previous years, the state has attempted to address the needs of California renters through a series of small programs operated by the Department of Housing and Community Development, each offering financing targeted at a specific population or building type. These programs were typically highly successful in addressing local housing and community development needs. However, because each individual program came with a unique set of rules, the programs were often costly and time consuming to administer, for both the state and program users. (c) A more efficient method to address renter housing needs would be to operate one omnibus multifamily housing program modeled upon an existing successful program. This omnibus program would provide a standardized set of program rules and features applicable to all housing types. As particular needs are identified, it may be easily and quickly customized to meet those needs. (d) It is the intent of the Legislature that the Multifamily Housing Program created by this chapter constitute this omnibus multifamily housing program, and that it be based on the department’s existing California Housing Rehabilitation Program as established and described in Subchapter 8 (commencing with Section 7670) of Chapter 7 of Part 1 of Title 25 of the California Code of Regulations. (e) The Multifamily Housing Program is intended to take the place of the following department programs: (1) The Deferred-Payment Rehabilitation Loan Program established by Chapter 6.5 (commencing with Section 50660). (2) The Rental Housing Construction Program established by Chapter 9 (commencing with Section 50735). (3) The Family Housing Demonstration Program established by Section 5 of Chapter 30 of the Statutes of 1988. Repeal of the statutes establishing these programs would be administratively problematic because the department still administers a portfolio of loans from these programs. Therefore, in lieu of repeal, it is the Legislature’s intent that no further allocation of funds be made to these programs and that any and all future funds that would have been appropriated to these programs shall be appropriated instead to the Multifamily Housing Program. (Added by Stats. 1999, Ch. 637, Sec. 2. Effective January 1, 2000.)
  43. 50675.1.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. )

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    This section names the Multifamily Housing Program and sets rules for how the department must administer assistance, award senior-housing funding proportionally, and report on awards.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. ) ## 50675.1. (a) This chapter shall be known and may be cited as the Multifamily Housing Program. (b) Assistance provided to a project pursuant to this chapter, excluding assistance provided pursuant to Section 50675.1.1 or 50675.1.3, shall be provided in the form of a deferred payment loan to pay for the eligible costs of development as hereafter described, or as otherwise specified in subdivision (b) of Section 50675.15. (c) Except as provided in paragraph (3), on and after January 1, 2008, of the total assistance provided under this chapter, the percentage that is awarded for units restricted to senior citizens, as defined in paragraph (1) of subdivision (b) of Section 51.3 of the Civil Code, shall be proportional to the percentage of lower income renter households in the state that are lower income elderly renter households, as reported by the United States Department of Housing and Urban Development on the basis of the most recent American Community Survey or successor survey conducted by the United States Census Bureau. (1) The department shall be deemed to have met its obligation under this subdivision if the assistance awarded is not less than 1 percent below the proportional share. (2) This subdivision does not require the department to provide loans to projects that fail to meet minimum threshold requirements under subdivision (b) of Section 50675.7. (3) Assistance for projects funded pursuant to Section 50675.1.1 or 50675.1.3, and assistance for projects meeting the definition in paragraph (3) of subdivision (b) of Section 50675.14 shall be excluded from the total assistance calculation under this subdivision. (4) The department shall determine the time period over which it will measure compliance with this section, but that period shall not be less than one year or two funding cycles, whichever period is longer. (5) If, at the end of the time period determined by the department, the total amount of funding for which sponsors have submitted qualified applications is lower than the proportional share, the department may award the remaining funds to units that are not restricted to senior citizens. (6) The department’s annual report to the Legislature submitted under Section 50408 shall include a breakdown of funding awards between units restricted to senior citizens and units that are not age-restricted. (d) This chapter shall be administered by the department and the department shall establish the terms upon which loans or grants may be made consistent with the provisions of this chapter. (e) In any notice of funding availability offered pursuant to this chapter, or for any funding that is to be offered by using rating and ranking criteria that is consistent with the Multifamily Housing Program or the CalHome program authorized by Chapter 6 (commencing with Section 50650), the department may require applicants to specify the source and amount of funding being applied for. The requirement may be set forth in either the application materials or notice of funding availability. Any requirement imposed by the department pursuant to this subdivision shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Division 3 of Title 2 of the Government Code. (f) Any reference outside this chapter to rating and ranking applications in a manner consistent with the Multifamily Housing Program or CalHome Program authorized by Chapter 6 (commencing with Section 50650), or administering funds consistent with the Multifamily Housing Program or CalHome Program, shall not be interpreted to authorize funding criteria or requirements that conflict with those that are or were approved by the voters through a statewide initiative or referendum. (g) This section shall become operative on January 1, 2022. (Amended by Stats. 2022, Ch. 655, Sec. 3. (AB 2483) Effective January 1, 2023.)
  44. 50675.1.1.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. )

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    The department must distribute certain 2020 housing funds under the Multifamily Housing Program, may issue spending guidelines, and must report on fund use by April 1, 2021.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. ) ## 50675.1.1. (a) Notwithstanding any other law, including subdivision (b) of Section 50675.1, funds appropriated in the 2020 Budget Act or an act related to the 2020 Budget Act, including, but not limited to, moneys received from the Coronavirus Relief Fund established by the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act (Public Law 116-136), to provide housing for individuals and families who are experiencing homelessness or who are at risk of homelessness, as defined in Section 578.3 of Title 24 of the Code of Federal Regulation, and who are impacted by the COVID-19 pandemic, shall be disbursed in accordance with the Multifamily Housing Program, including as grants to cities, counties, and other local public entities, as necessary, created by this chapter for the following uses, consistent with applicable federal law and guidance: (1) Acquisition or rehabilitation of motels, hotels, or hostels. (2) Master leasing of properties. (3) Acquisition of other sites and assets, including purchase of apartments or homes, adult residential facilities, residential care facilities for the elderly, manufactured housing, and other buildings with existing residential uses that could be converted to permanent or interim housing. (4) Conversion of units from nonresidential to residential in a structure with a certificate of occupancy as a motel, hotel, or hostel. (5) The purchase of affordability covenants and restrictions for units. (6) Relocation costs for individuals who are being displaced as a result of rehabilitation of existing units. (7) Capitalized operating subsidies for units purchased, converted, or altered with funds provided by this section. (b) Where possible, the funds described in subdivision (a) shall be allocated by the department in a manner that takes into consideration all of the following: (1) Need geographically across the state. (2) Areas with high unsheltered populations and high COVID-19 infection rates. (3) The demonstrated ability of the applicant to fund ongoing operating reserves. (4) The creation of new permanent housing options. (5) The potential for state funding for capitalized operating reserves to make additional housing units financially viable through this program. (c) Any conflict between the other requirements of the Multifamily Housing Program created by this chapter and this section shall be resolved in favor of this section, as may be set forth in the guidelines authorized by this section. (d) The Department of Housing and Community Development may adopt guidelines for the expenditure of the funds appropriated to the department. The guidelines shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (e) Up to 2 percent of the funds appropriated for this section may be expended for the costs to administer this program. (f) On or before April 1, 2021, the Department of Housing and Community Development, in coordination with the Business, Consumer Services, and Housing Agency, shall report to the chairs of each fiscal committee and each relevant policy committee of the Legislature on the use of the funds described in this section. The report shall include, but not be limited to, all of the following: (1) The amount of funds expended for the uses described in this section. (2) The location of any properties for which the funds are used. (3) The number of useable housing units produced, or planned to be produced, using the funds. (4) The number of individuals housed, or likely to be housed, using the funds. (5) The number of units, and the location of those units, for which operating subsidies have been, or are planned to be, capitalized using the funds. (6) An explanation of how funding decisions were made for acquisition, conversion, or rehabilitation projects, or for capitalized operating subsidies, including what metrics were considered in making those decisions. (7) Any lessons learned from the use of the funds. (g) Any project that uses funds received from the Coronavirus Relief Fund for any of the purposes specified in subdivision (a) shall be deemed consistent and in conformity with any applicable local plan, standard, or requirement, and allowed as a permitted use, within the zone in which the structure is located, and shall not be subject to a conditional use permit, discretionary permit, or to any other discretionary reviews or approvals. (h) A report to be submitted pursuant to subdivision (f) shall be submitted in compliance with Section 9795 of the Government Code. (Added by Stats. 2020, Ch. 15, Sec. 21. (AB 83) Effective June 29, 2020.)
  45. 50675.1.3.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. )

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    This section requires specified housing funds to be spent through the Multifamily Housing Program, sets reporting and timing rules, reserves at least 8% for homeless youth projects, and allows up to 5% for program administration in some cases.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. ) ## 50675.1.3. (a) Notwithstanding any other law, including subdivision (b) of Section 50675.1, funds appropriated to provide housing for individuals and families who are experiencing homelessness or who are at risk of homelessness, as defined by this section, and who are inherently impacted by or at increased risk for medical diseases or conditions due to the COVID-19 pandemic or other communicable diseases, shall be disbursed in accordance with the Multifamily Housing Program, including as grants to cities, counties, cities and counties, and all other state, regional, and local public entities, including councils of government, metropolitan planning organizations, and regional transportation planning agencies designated in Section 29532.1 of the Government Code, as necessary, for the following uses: (1) Acquisition or rehabilitation, or acquisition and rehabilitation, of motels, hotels, hostels, or other sites and assets, including apartments or homes, adult residential facilities, residential care facilities for the elderly, manufactured housing, commercial properties, and other buildings with existing uses that could be converted to permanent or interim housing. (2) Master leasing of properties for noncongregant housing. (3) Conversion of units from nonresidential to residential. (4) New construction of dwelling units. (5) The purchase of affordability covenants and restrictions for units. (6) Relocation costs for individuals who are being displaced as a result of rehabilitation of existing units. (7) Capitalized operating subsidies for units purchased, converted, or altered with funds provided by this section. (b) Where possible, the funds described in subdivision (a) shall be allocated by the department in a manner that takes into consideration all of the following: (1) Need geographically across the state. (2) The demonstrated ability of the applicant to fund ongoing operating reserves. (3) The creation of new permanent housing options. (4) The potential for state, federal, or local funding for capitalized operating reserves to make additional housing units financially viable through this program. (c) Not less than 8 percent of the funds described in subdivision (a) shall be available for projects serving homeless youth, or youth at risk of homelessness, as defined in Part 578.3 of Title 24 of the Code of Federal Regulations. (d) Any conflict between the other requirements of the Multifamily Housing Program created by this chapter and this section shall be resolved in favor of this section, as may be set forth in the guidelines authorized by this section. (e) The Department of Housing and Community Development may adopt guidelines for the expenditure of the funds appropriated to the department, and for the administration of this program. The guidelines shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (f) Up to 5 percent of the funds received from the Coronavirus State Fiscal Recovery Fund established by the federal American Rescue Plan Act of 2021 (ARPA) (Public Law 117-2) and appropriated for purposes of this section may be expended for the costs to administer the program, to the extent authorized by federal law. (g) Up to 5 percent of any General Fund moneys appropriated for purposes of this section may be expended for the costs to administer this program. (h) The department’s annual report to the Legislature submitted under Section 50408 shall include, but not be limited to, all of the following: (1) The amount of funds expended for the uses described in this section. (2) The location of any properties for which the funds are used. (3) The number of usable housing units produced, or planned to be produced, using the funds. (4) The number of individuals housed, or likely to be housed, using the funds. (5) The number of units, and the location of those units, for which operating subsidies have been, or are planned to be, capitalized using the funds. (6) An explanation of how funding decisions were made for acquisition, conversion, or rehabilitation projects, or for capitalized operating subsidies, including what metrics were considered in making those decisions. (7) Any lessons learned from the use of the funds. (8) Proposed changes to the program to address lessons learned. (i) Any project that uses funds received for any of the purposes specified in subdivision (a) shall be deemed consistent and in conformity with any applicable local plan, standard, or requirement, and any applicable coastal plan, local or otherwise, and allowed as a permitted use, within the zone in which the structure is located, and shall not be subject to a conditional use permit, discretionary permit, or any other discretionary reviews or approvals. (j) A report to be submitted pursuant to subdivision (h) shall be submitted in compliance with Section 9795 of the Government Code. (k) Upon an appropriation by the Legislature for the purposes described in this section, the department shall administer funding according to the timeline set forth below, subject to any modifications set forth by the guidelines: (1) The department may accept funding applications and issue awards on a continuous, over-the-counter basis until the funding has been exhausted or as otherwise required by law. (2) Each award shall be expended on the uses authorized at subdivision (a), and in accordance with all relevant representations and descriptions in the application, within eight months of the date of the award. Applicants may ask the department for an extension of this timeframe on the grounds and according to the procedures set forth in the guidelines. The director shall have reasonable discretion to approve or deny such an extension upon conducting a full and good faith review of the applicant’s extension request. (l) For purposes of this section, “individuals and families who are homeless or who are at risk of homelessness” means persons and families that meet the qualifying definitions under Part 578.3 of Title 24 of the Code of Federal Regulations. (m) To advance the objectives specified in Section 50675.1.1 or this section, the department may expand the population served beyond the population specified in subdivision (l) as specified by the guidelines authorized by this section. (Amended by Stats. 2022, Ch. 70, Sec. 17. (SB 197) Effective June 30, 2022.)
  46. 50675.1.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. )

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    This section lets qualifying housing projects be approved as a use by right and receive streamlined, ministerial review if they meet listed criteria.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. ) ## 50675.1.5. (a) (1) Notwithstanding any other law, projects to provide housing pursuant to paragraph (1) or (2) of subdivision (a) of Section 5965.04 of the Welfare and Institutions Code, shall be a use by right and shall be subject to the streamlined, ministerial review process, pursuant to subdivision (b), if it meets all of the following criteria: (A) It is located in a zone where multifamily residential use, office, retail, or parking are a principally permitted use. (B) At least 75 percent of the perimeter of the site adjoins parcels that are developed with urban uses. (C) It satisfies the requirements specified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4 of the Government Code. (D) It is not on a site or adjoined to any site where more than one-third of the square footage on the site is dedicated to industrial use. (E) The development will meet the following objective zoning standards, objective subdivision standards, and objective design review standards: (i) The applicable objective standards shall be those for the zone that allows residential use at a greater density between the following: (I) The existing zoning designation for the parcel if existing zoning allows multifamily residential use. (II) The zoning designation for the closest parcel that allows residential use at a density deemed appropriate to accommodate housing for lower income households in that jurisdiction as specified in paragraph (3) of subdivision (c) of Section 65583.2 of the Government Code. (ii) The applicable objective standards shall be those in effect at the time that the development application is submitted to the local government pursuant to this section. (iii) A development proposed pursuant to this section shall be eligible for the same density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios applicable to a project that meets the criteria specified in subparagraph (G) of paragraph (1) of subdivision (b) of Section 65915 of the Government Code. (F) No housing units were acquired by eminent domain. (G) The housing units will be in decent, safe, and sanitary condition at the time of their occupancy. (H) The project meets the labor standards contained in Sections 65912.130 and 65912.131 of the Government Code. (I) The project provides housing for persons who meet the criteria specified in subdivision (a) of Section 5830 of the Welfare and Institutions Code and their families. (J) Long-term covenants and restrictions require the housing units to be restricted to persons who meet the criteria specified in subdivision (a) of Section 5830 of the Welfare and Institutions Code for no fewer than 30 years. (2) (A) For purposes of this subdivision, parcels only separated by a street or highway shall be considered to be adjoined. (B) For purposes of this subdivision, “dedicated to industrial use” means any of the following: (i) The square footage is currently being used as an industrial use. (ii) The most recently permitted use of the square footage is an industrial use. (iii) The site was designated for industrial use in the latest version of a local government’s general plan adopted before January 1, 2022. (b) The project shall be subject to the following streamlined, ministerial review process: (1) (A) If the local government determines that a development submitted pursuant to this section is consistent with the objective planning standards specified in this section, it shall approve the development. (B) If a local government determines that a development submitted pursuant to this section is in conflict with any of the objective planning standards specified in this section, it shall provide the development proponent written documentation of which standard or standards the development conflicts with, and an explanation for the reason or reasons the development conflicts with that standard or standards, within the following timeframes: (i) Within 60 days of submission of the development proposal to the local government if the development contains 150 or fewer housing units. (ii) Within 90 days of submission of the development proposal to the local government if the development contains more than 150 housing units. (C) If the local government fails to provide the required documentation pursuant to subparagraph (B), the development shall be deemed to satisfy the required objective planning standards. (D) (i) For purposes of this section, a development is consistent with the objective planning standards if there is substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards. (ii) For purposes of this section, a development is not in conflict with the objective planning standards solely on the basis that application materials are not included, if the application contains substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards. (E) The determination of whether a proposed project submitted pursuant to this section is or is not in conflict with the objective planning standards is not a “project” as defined in Section 21065 of the Public Resources Code. (2) Design review of the development may be conducted by the local government’s planning commission or any equivalent board or commission responsible for design review. That design review shall be objective and be strictly focused on assessing compliance with criteria required for streamlined, ministerial review of projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submittal of the development to the local government, and shall be broadly applicable to developments within the jurisdiction. That design review shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable: (A) Within 90 days of submittal of the development proposal to the local government pursuant to this section if the development contains 150 or fewer housing units. (B) Within 180 days of submittal of the development proposal to the local government pursuant to this section if the development contains more than 150 housing units. (c) Division 13 (commencing with Section 21000) of the Public Resources Code shall not apply to actions taken by the Department of Housing and Community Development, the State Department of Health Care Services, or a local agency to provide financial assistance or insurance for the development and construction of projects built pursuant to this section. (d) The applicant shall file a notice of exemption with the Office of Planning and Research and the county clerk of the county in which the project is located in the manner specified in subdivisions (b) and (c) of Section 21152 of the Public Resources Code. (e) For purposes of this section, the following definitions shall apply: (1) “Objective zoning standards,” “objective subdivision standards,” and “objective design review standards” mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal. These standards may be embodied in alternative objective land use specifications adopted by a city or county, and may include, but are not limited to, housing overlay zones, specific plans, inclusionary zoning ordinances, and density bonus ordinances. (2) “Use by right” means a development project that satisfies both of the following conditions: (A) The development project does not require a conditional use permit, planned unit development permit, or other discretionary local government review. (B) The development project is not a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. (Added by Stats. 2023, Ch. 789, Sec. 1. (AB 531) Effective January 1, 2024.)
  47. 50675.10.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. )

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    The department may set aside up to 1.5% of chapter funds as a default reserve and use it for certain default, foreclosure, repair, or maintenance purposes.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. ) ## 50675.10. (a) The department may designate an amount not to exceed 1.5 percent of funds appropriated for use pursuant to this chapter for the purposes of curing or averting a default on the terms of any loan or other obligation by the recipient of financial assistance, or bidding at any foreclosure sale where the default or foreclosure sale would jeopardize the department’s security in the rental housing development assisted pursuant to this chapter. The funds so designated shall be known as the “default reserve.” (b) The department may use default reserve funds made available pursuant to this section to repair or maintain any rental housing development assisted pursuant to this chapter that was acquired to protect the department’s security interest. (c) The payment or advance of funds by the department pursuant to this section shall be exclusively within the department’s discretion, and no person shall be deemed to have any entitlement to the payment or advance of those funds. The amount of any funds expended by the department for the purposes of curing or averting a default shall be added to the loan amount secured by the rental housing development and shall be payable to the department upon demand. (Amended by Stats. 2018, Ch. 37, Sec. 41. (AB 1817) Effective June 27, 2018.)
  48. 50675.11.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. )

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    The department may administer chapter funds with guidelines. If the appropriation is $20 million or less, the guidelines are not subject to Chapter 3.5. If the appropriation exceeds $20 million, the department may use guidelines for 15 months, and they are also exempt from Chapter 3.5 during that time.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. ) ## 50675.11. If an appropriation is made by the Legislature for the purposes of this chapter in an amount of twenty million dollars ($20,000,000) or less, the department may administer the funds with guidelines that shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2 of the Government Code. If an appropriation exceeds twenty million dollars ($20,000,000), the department may administer the funds with guidelines for 15 months, during which time the guidelines shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2 of the Government Code. (Added by Stats. 1999, Ch. 637, Sec. 2. Effective January 1, 2000.)
  49. 50675.12.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. )

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    The department must report specific program information each year and, after each funding notice, review whether certain projects can compete for funding and make needed adjustments if they cannot.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. ) ## 50675.12. (a) The department shall include in the annual report required by Section 50408 information that describes all of the following: (1) The number of projects assisted through the program. (2) The types of units assisted through the program. (3) The location and geographical distribution of the projects and units assisted. (4) The average cost per project, and cost per unit. (5) The number of projects and units that have been assisted that serve special needs populations and information related to the types of special needs populations served. (b) After each Notice of Funding Availability issued for the distribution of funds pursuant to the program, the department shall evaluate the ability of projects that serve families or special needs populations to competitively access the program. Based on its analysis, if the department determines that those projects are not able to apply for or to successfully compete for funding, the department shall make the adjustments it deems appropriate to ensure that these populations are adequately served in subsequent Notices of Funding Availability. These adjustments may include, but are not limited to, making adjustments to threshold requirements, evaluative criteria, or the timing of the issuance of Notices of Funding Availability to ensure that reasonable funding remains available for more complex projects that include the supportive services necessary to serve families and special needs populations. (Added by Stats. 2000, Ch. 667, Sec. 1. Effective January 1, 2001.)
  50. 50675.13.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. )

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    The department must give reasonable priority points to projects that fit listed housing and development priorities, and it may use other factors in rural areas to encourage infill development.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. ) ## 50675.13. (a) With respect to funds made available under this chapter, the department shall award reasonable priority points for projects to prioritize any of the following: (1) Infill development. (2) Adaptive reuse in existing developed areas served with public infrastructure. (3) Projects in proximity to public transit, public schools, parks and recreational facilities, or job centers. (4) Sustainable building methods that are either of the following: (A) Established in accordance with the criteria listed under paragraph (8) of subdivision (c) of Section 10325 of Title 4 of the California Code of Regulations, or any successor regulation. (B) Established by the department, in consultation with the California Building Standards Commission for the purposes of funding developments subject to this section and are more stringent than those in subparagraph (A). (b) The department may utilize other factors in rural areas to promote infill development. (Amended by Stats. 2007, Ch. 710, Sec. 1. Effective January 1, 2008.)
  51. 50675.14.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. )

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    This section limits certain supportive housing rules to projects funded with supportive housing appropriations, requires at least 40% of units in those developments to target specified populations, and lets a sponsor restrict some occupancy to veterans if stated conditions are met.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. ) ## 50675.14. (a) This section applies only to projects funded with funds appropriated for supportive housing projects. (b) For purposes of this section, the following terms have the following meanings: (1) “May restrict occupancy to persons with veteran status” means that the sponsor may limit occupancy to persons meeting the criteria of paragraphs (1) and (2) of subdivision (j) with respect to either of the following: (A) Any unit in the development that has not been previously occupied. (B) Any unit in the development that subsequently becomes vacant, for a period of not more than 120 days following the vacancy. (2) (A) “Target population” means persons, including persons with disabilities, and families who are “homeless,” as that term is defined by Section 11302 of Title 42 of the United States Code, or who are “homeless youth,” as that term is defined by paragraph (2) of subdivision (e) of Section 12957 of the Government Code. (B) Individuals and families currently residing in supportive housing meet the definition of “target population” if the individual or family was “homeless,” as that term is defined by Section 11302 of Title 42 of the United States Code, when approved for tenancy in the supportive housing project in which they currently reside. (c) (1) The department shall ensure that at least 40 percent of the units in each development funded under the supportive housing program are targeted to one or more of the following populations: (A) Individuals or families experiencing “chronic homelessness,” as defined by the United States Department of Housing and Urban Development’s Super Notice of Funding Availability for Continuum of Care or Collaborative Applicant Program. (B) “Homeless youth,” as that term is defined by paragraph (2) of subdivision (e) of Section 12957 of the Government Code. (C) Individuals exiting institutional settings, including, but not limited to, jails, hospitals, prisons, and institutes of mental disease, who were homeless when entering the institutional setting, who have a disability, and who resided in that setting for a period of not less than 15 days. (2) The department may decrease the number of units required to meet the criteria identified in paragraph (1) if the department determines that the program is undersubscribed after issuing at least one Notice of Funding Availability. (3) Individuals and families currently residing in supportive housing meet the qualifications under this subdivision if the individual or family met any of the criteria specified in subparagraph (A), (B), or (C) of paragraph (1) when approved for tenancy in the supportive housing project in which they currently reside. (d) Supportive housing projects shall provide or demonstrate collaboration with programs that provide services that meet the needs of the supportive housing residents. (e) The criteria, established by the department, for selecting supportive housing projects shall give priority to supportive housing projects that include a focus on measurable outcomes and a plan for evaluation, which evaluation shall be submitted by the borrowers, annually, to the department. (f) The department may provide higher per-unit loan limits as reasonably necessary to provide and maintain rents that are affordable to the target population. (g) In an evaluation or ranking of a borrower’s development and ownership experience, the department shall consider experience acquired in the prior 10 years. (h) (1) A borrower shall, beginning the second year after supportive housing project occupancy, include the following data in their annual report to the department. However, a borrower who submits an annual evaluation pursuant to subdivision (e) may, instead, include this information in the evaluation: (A) The length of occupancy by each supportive housing resident for the period covered by the report and, if the resident has moved, the reason for the move and the type of housing to which the resident moved, if known. (B) Changes in each supportive housing resident’s employment status during the previous year. (C) Changes in each supportive housing resident’s source and amount of income during the previous year. (D) The tenant’s housing status prior to occupancy, including the term of the tenant’s homelessness. (2) The department shall include aggregate data with respect to the supportive housing projects described in this section in the report that it submits to the Legislature pursuant to Section 50675.12. (i) The department shall consider, commencing in the second year of the funding, the feasibility and appropriateness of modifying its regulations to increase the use of funds by small projects. In doing this, the department shall consider its operational needs and prior history of funding supportive housing facilities. (j) Notwithstanding any other provision of law, the sponsor of a supportive housing development may restrict occupancy to persons with veteran status if all the following conditions apply: (1) The veterans possess significant barriers to social reintegration and employment that require specialized treatment and services that are due to a physical or mental disability, substance abuse, or the effects of long-term homelessness. (2) The veterans are otherwise eligible to reside in an assisted unit. (3) The sponsor also provides, or assists in providing, the specialized treatment and services. (Amended by Stats. 2023, Ch. 780, Sec. 3. (SB 482) Effective January 1, 2024.)
  52. 50675.15.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. )

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    This section defines key terms and requires the department to award incentives and coordinate with health care services for qualifying housing projects.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. ) ## 50675.15. (a) For purposes of this section, the following definitions shall apply: (1) “Eligible individual” means an individual who meets both of the following criteria: (A) The individual is experiencing homelessness, as defined in this chapter. (B) The individual or head of household is eligible to receive qualifying services. (2) “Experiencing homelessness” means the same as “homeless” and “homelessness,” as those terms are each defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 1, 2022, except that people who were homeless upon admission to an institutional setting shall continue to be considered homeless upon discharge, regardless of the length of time residing in the institutional setting. For the purposes of this paragraph, people who have lost their housing as a result of institutionalization, including, but not limited to, institutionalization in skilled nursing facilities, acute care hospitals, psychiatric facilities, jails, and prisons, and have no home to live in upon discharge are considered homeless regardless of the length of time residing in the institutional setting. (3) “Qualifying services” includes all of the following: (A) Services received under the Assisted Living Waiver pursuant to state law and Section 1915(c) of the federal Social Security Act (42 U.S.C. Sec. 1396n(c)). (B) Services received under the Home and Community-Based Alternatives Waiver pursuant to state law and Section 1915(c) of the federal Social Security Act (42 U.S.C. Sec. 1396n(c)). (C) Services received under the Program of All-Inclusive Care for the Elderly (PACE) pursuant to Chapter 8.75 (commencing with Section 14591) of Part 3 of Division 9 of the Welfare and Institutions Code. (b) By December 31, 2023, the department shall do both of the following: (1) With respect to funds made available under this chapter, award incentives listed in subdivision (c) to project applicants that agree to all of the following: (A) Set aside at least 20 percent of the project’s units for eligible individuals. If the project includes more than 100 units, the applicant shall agree to set aside no more than 50 percent of the project’s units for eligible individuals. (B) Demonstrate viability of linking the units to qualifying services. (C) Accept referrals from local coordinated entry systems. (2) Partner with the State Department of Health Care Services to determine the most effective way to align qualifying services in housing projects funded under this chapter, including, but not limited to, expediting enrollment, prioritizing waiver and PACE programs for eligible individuals, reducing administrative barriers to using qualifying services in publicly subsidized housing, creating partnerships between developers and providers of qualifying services, and developing sample memoranda of understanding or contracts between developers and providers of qualifying services. (c) The department shall offer project applicants the following incentives: (1) Loan limits for impacted units that are higher than offered to other units for people experiencing homelessness. (2) An exemption for project applicants to submit a services plan for units set aside under this section, so long as the project applicant has completed an executed agreement with a provider of qualifying services to offer services in set aside units. The department shall determine whether the qualifying services are provided in a manner that complies with the applicable requirements of Section 8255 of the Welfare and Institutions Code, and that services provided in each project are meeting applicable department requirements governing staff-to-client ratios. (3) Based on data and a best practice analysis, providers may receive a higher services cap or an exemption from services caps the department imposes. (4) Allowing project applicants to use funds made available under this chapter for creating alternative care sites for projects aligning with PACE or other service space to offer other qualifying services to eligible individuals. Alternative care sites shall be funded to operate in a manner consistent with state law, department regulations, and program guidelines. (d) The department shall engage a consultant to examine to what extent caps are needed on the amount of supportive services that can be paid through project operating budgets on any project funded under this chapter. (e) No later than 180 days following the first year of operation of a representative sample of projects, with respect to projects receiving incentives under subdivision (b), the department shall assess tenant outcomes and engage with an evaluator to identify both of the following: (1) The number and demographics, including age, race, or ethnicity, and presubsidy housing status, of people being served. (2) Housing retention rates. (Added by Stats. 2022, Ch. 655, Sec. 5. (AB 2483) Effective January 1, 2023.)
  53. 50675.16.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. )

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    This section limits negative actions against certain owners or management agents when income verification happens after lease signing for unhoused households, if specified cure, posting, and coordination conditions are met.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. ) ## 50675.16. (a) (1) In the City and County of Los Angeles, where the federal Department of Housing and Urban Development has granted an authority, as defined in Section 34203, a waiver effective August 17, 2024, to allow household income verifications to occur after a lease contract is signed for unhoused populations seeking entry into projects pursuant to or in connection with Section 5.110 of Title 24 of the Code of Federal Regulations, if an owner or a management agent leases a subsidized unit to an unhoused person and subsequently learns and verifies that the unhoused person does not meet applicable income requirements, then the department and the California Tax Credit Allocation Committee shall not take any negative actions against the owner or management agent if both of the following conditions are met: (A) The owner or management agent has cured the noncompliance within 24 months of discovery of the violation. (B) The local housing authority and continuum of care have developed and posted on their respective internet websites a plan describing how the local housing authority and continuum of care will coordinate with the owner or management agent to move tenants that do not meet applicable income requirements into affordable housing where the tenant is eligible for occupancy within 24 months of discovery of the violation. Income ineligible tenants shall retain their unhoused targeting eligibility. (2) For purposes of this subdivision, “negative actions” include, but are not limited to, both of the following: (A) Issuing negative points on a current or future application. (B) Imposing a financial penalty. (b) If an agreement between the owner or management agent and the authority, the department, or the California Tax Credit Allocation Committee restricts a unit to a tenant earning no more than 30 percent of the area median income, the tenant shall be deemed to satisfy the income requirements of this program during the 24-month period described in paragraph (1) of subdivision (a) if all of the following conditions are met: (1) The tenant experienced homelessness prior to moving into the unit. For purposes of this paragraph, “homelessness” has the same meaning as “homeless,” as that term is defined in Section 578.3 of Title 24 of the Code of Federal Regulations. (2) The tenant self-certified household income at no more than 30 percent of the area median income. (3) A third-party verification shows that the tenant has household income of no more than 50 percent of the area median income, unless the tenant is otherwise eligible pursuant to federal income eligibility requirements. (4) The tenant’s income certification is fully verified in accordance with the program rules within 90 days of the date the tenant took possession of the unit. (5) At least 50 percent of the assisted units restricted to 30 percent area median income are occupied by verified, income-eligible households. (6) The issuing housing authority and continuum of care, in coordination with other public agencies, coordinate with an owner or a management agent and move a tenant found to have a household income of more than 50 percent of the area median income following third-party verification described in paragraph (3) within 24 months of discovery of the violation to an affordable housing unit for which the tenant is eligible without reliance upon the same waiver described in subdivision (a). Income ineligible tenants shall retain their unhoused targeting eligibility. (c) (1) This section does not modify any other eligibility requirements attached to assistance provided by the Department of Housing and Community Development. (2) Tenant self-certified date of birth shall be accepted so long as the agreement between the department and the owner does not impose age-based demographic targeting requirements. (3) If the conditions described in subdivision (b) are met, absent any rent setting methodology from subsidy programs, a tenant whose adjusted income at move-in exceeded 30 percent area median income shall have an effective rent limit for their unit be redesignated to 50 percent of area median income or, if the tenant’s verified income is higher than 50 percent of area median income, an effective rent limit for their unit be redesignated to an area median income level commensurate with the income level. (4) Owner or management agents shall discontinue use of the waiver as described in subdivision (a) in the event that more than 50 percent of the assisted units restricted to 30 percent area median income are occupied by households with adjusted incomes at move-in over 30 percent area median income. (d) This section shall become inoperative on July 31, 2025, or the final expiration date of a waiver as described in subdivision (a), whichever is later, and, as of January 1 of the following year, is repealed. (Added by Stats. 2024, Ch. 491, Sec. 3. (SB 1500) Effective January 1, 2025. Conditionally inoperative on or after July 31, 2025, as prescribed by its own provisions. Conditionally repealed, by its own provisions.)
  54. 50675.2.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. )

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    This section defines key terms for the Multifamily Housing Program and sets a few operating rules, including rent consistency, income limits for assisted units, and a six-month minimum for transitional housing assistance recirculation.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. ) ## 50675.2. The definitions of this section shall apply to all activities conducted pursuant to this chapter. Except as otherwise provided in this chapter, or unless the context requires otherwise, the definitions contained in Chapter 2 (commencing with Section 50050) of Part 1 shall also apply to this chapter. (a) “Affordable rent” shall be established by the department to be consistent with the rent limitations imposed by the Low-Income Housing Tax Credit Program, as administered by the California Tax Credit Allocation Committee. (b) “Assisted unit” means a unit that is affordable to a lower income household as a result of a loan provided pursuant to this chapter. In order to ensure consistency with the Low-Income Housing Tax Credit Program, occupancy of assisted units shall be limited to households whose income does not exceed the limits specified by the California Tax Credit Allocation Committee. (c) “Maintain affordable rent levels” means rents may be increased by the sponsor on an annual basis in the amount that would be allowed if the project was subject to the requirements of the Low-Income Housing Tax Credit Program established pursuant to Section 42 of the federal Internal Revenue Code. (d) “Rental housing development” means a structure or set of structures with common financing, ownership, and management, and which collectively contain five or more dwelling units, including efficiency units. No more than one of the dwelling units may be occupied as a primary residence by a person or household who is the owner of the structure or structures. (e) “Rehabilitation,” in addition to the meaning set forth in Section 50096, includes improvements and repairs made to a residential structure acquired for the purpose of preserving its affordability. (f) “Rent-up costs” means costs incurred while a unit is on the housing market but not rented to its first tenant. (g) “Sponsor” has the same meaning as defined in subdivision (c) of Section 50669, and also includes a limited partnership in which the sponsor or an affiliate of the sponsor is a general partner. (h) “Supportive housing” means housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community. (i) “Transitional housing” and “transitional housing development” means buildings configured as rental housing developments, but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some predetermined future point in time, which shall be no less than six months. (Amended by Stats. 2023, Ch. 780, Sec. 1. (SB 482) Effective January 1, 2024.)
  55. 50675.3.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. )

    Verify source ↗

    Money appropriated for this chapter and loan repayments received by the department must be deposited in the Housing Rehabilitation Loan Fund and used for this chapter’s purposes.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. ) ## 50675.3. Any moneys appropriated and made available by the Legislature for the purposes of this chapter and all moneys received by the department in repayment of loans made pursuant to this chapter, including interest and payments in advance in lieu of future interest, shall be deposited in the Housing Rehabilitation Loan Fund established by Section 50661. These moneys shall be used for the purposes of this chapter, including the implementation and operation of the program created by this chapter, and the administrative expenses of the department shall not exceed 5 percent of the funds appropriated by the Legislature for the purposes of this chapter. (Added by Stats. 1999, Ch. 637, Sec. 2. Effective January 1, 2000.)
  56. 50675.4.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. )

    Verify source ↗

    A project can qualify for a loan only if it fits certain housing project types and the sponsor agrees to keep assisted rents affordable and pay prevailing wages for assisted construction.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. ) ## 50675.4. (a) To be eligible to receive a loan, a proposed project shall involve one or more of the following activities: (1) The development and construction of a new transitional or rental housing development. (2) The rehabilitation, or acquisition and rehabilitation, of a transitional or rental housing development. (3) The conversion of a nonresidential structure to a transitional or rental housing development. (b) In the case of rehabilitation projects, to be eligible to receive a loan, the loan shall be necessary to avoid increases in monthly debt service that have either of the following effects: (1) Result in rent increases causing permanent displacement of persons of lower income residing in the development prior to rehabilitation. (2) Make it economically infeasible to accept subsidies available to provide affordable rents to persons of lower income, if the sponsor agrees to accept the subsidies. (c) To be eligible to receive a loan, the sponsor shall agree to both of the following: (1) To set and maintain affordable rent levels for assisted units. (2) To the payment of prevailing wage rates with respect to construction assisted through the program. In implementing this paragraph, it is the intent of the Legislature that this requirement apply to construction work that is dependent on the commitment of program funds in order for construction to proceed. Notwithstanding any other provision of law, the department’s enforcement responsibilities shall be limited to the imposition of this requirement through the lending documents. The department shall require, as a condition of loan closing, a signed certificate that prevailing wages have been, or will be, paid in conformance with the requirements of Chapter 1 (commencing with Section 1720) of Part 7 of the Labor Code and that labor records shall be made available to any enforcement agency upon request. The requirements of this paragraph shall not apply to projects for which program funds are used exclusively to achieve lower rents and to pay associated administrative costs. (Amended by Stats. 2000, Ch. 957, Sec. 1. Effective January 1, 2001.)
  57. 50675.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. )

    Verify source ↗

    The department must offer capitalized operating reserves to supportive housing units after developers have sought reserves from other funding sources, and it may use or offer reserves for certain rent subsidies and grants.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. ) ## 50675.5. (a) Eligible costs shall include the cost of developing dwelling units, transitional housing, and childcare, and after school care and social service facilities integrally linked to the assisted dwelling units. (b) Eligible cost categories shall include all of the following: (1) Real property acquisition, including refinancing of existing debt to the extent necessary to reduce debt service to a level consistent with the provision of affordable rents and the fiscal integrity of the project. (2) New construction or rehabilitation, including the conversion of nonresidential structures to residential use. (3) General property improvements that are necessary to correct unsafe, unhealthy, or unsanitary conditions, including renovations and remodeling, including, but not limited to, remodeling of kitchens and bathrooms, installation of new appliances, landscaping, and purchase or installation of central air-conditioning. (4) Necessary and related onsite and offsite improvements. (5) Reasonable developer fees. (6) Reasonable consulting costs. (7) Initial operating costs for housing units. (8) Capitalized reserves for replacement and operation. The department shall offer capitalized operating reserves to supportive housing units after developers have sought capitalized reserves from other potential funding sources. The department may allow capitalized operating reserves to eligible projects to be used for rent subsidies for assisted units reserved for occupancy by households with incomes below limits determined by the department, which shall not exceed the income limit for very low income households. Assisted units may include, but not be limited to, supportive housing units. The department may offer capitalized reserves for operations and supportive services in the form of a grant. To determine project eligibility for capitalized operating reserves, the department may consider all of the following: (A) The availability of funds. (B) The individual financial needs of the project. (C) Whether developers have sought rent or operating subsidies from other potential funding sources. (D) Any other factors the department deems appropriate. (9) Any other costs of rehabilitation or new construction authorized by the department. (Amended by Stats. 2023, Ch. 780, Sec. 2. (SB 482) Effective January 1, 2024.)
  58. 50675.6.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. )

    Verify source ↗

    Sponsors may apply for certain housing loans, while the department controls loan restructuring, interest, payment timing, fees, and loan limits.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. ) ## 50675.6. (a) A sponsor may apply for loans for one or more rental or transitional housing developments. A housing development may utilize any combination of federal, state, local, and private financial resources necessary to make the development affordable, for the term of the state’s regulatory agreement, to the eligible households. (b) (1) Loans made pursuant to subdivision (f) of Section 50675.7 to sponsors by a local public entity as part of its code enforcement efforts for rental housing developments involving rehabilitation shall only be for terms of not less than 20 years. All other loans shall be for a term of not less than 55 years. (2) For loans made pursuant to this chapter, the department may approve an extension of an existing loan, the subordination of an existing loan to new debt, or an investment of tax credit equity, as long as the rental housing development is being operated in a manner consistent with the regulatory agreement and the development requires an extension in order to continue to operate in a manner consistent with this chapter. Each extension shall be for a period of not less than 10 years and each extension shall not exceed 55 years or, if needed to match the term of tax credit restrictions, exceed 58 years. The interest rate for the extension shall be 3 percent simple interest, or such interest rate as authorized by the department pursuant to Section 50406.7. All loan payments shall be deferred for the full term of the loan, except for residual receipts payments. These residual receipts payments shall be structured to avoid reducing the amount of payments on local public agency loans resulting solely from changes in the payment terms on the department’s loan, and not resulting from fees or other payments to the borrower, and shall otherwise be consistent with the department’s uniform multifamily regulations (Subchapter 19 (commencing with Section 8300) of Chapter 7 of Division 1 of Title 25 of the California Code of Regulations) or successor regulations. The department may charge a transaction fee to cover its costs for processing such restructuring transactions. The department may waive or defer some or all of this fee, if it determines that a particular development or class of developments does not have the ability to make these payments. (c) Principal and accumulated interest is due and payable upon completion of the term of the loan. The loan shall bear simple interest at the rate of 3 percent per annum on the unpaid principal balance. The department may forgive that portion of that loan that is used to cover costs of developing child care facilities. The department shall require annual loan payments in the minimum amount necessary to cover the costs of project monitoring. For the first 30 years of the loan term, the amount of the required loan payments shall not exceed forty-two hundredths of 1 percent (.42%) per annum. (d) The department may establish maximum loan-to-value requirements for some or all of the types of projects that are eligible for funding under this chapter. (e) The department shall establish per-unit and per-project loan limits for all project types. (Amended by Stats. 2017, Ch. 418, Sec. 8. (AB 1714) Effective January 1, 2018.)
  59. 50675.7.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. )

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    The department must use a project selection process for loans and meet several threshold and evaluation requirements, with some discretionary authority to create alternate processes, grants, and set-asides.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. ) ## 50675.7. Loans shall be provided using a project selection process established by the department that meets all of the following requirements: (a) To the extent feasible, this process shall be coordinated with the processes of other major housing funding sources, including that of the California Tax Credit Allocation Committee, and shall ensure a reasonable geographic distribution of funds. (b) The process shall require that applications for projects meet minimum threshold requirements, including, but not limited to, all of the following: (1) The proposed project shall be located within reasonable proximity to public transportation and services. (2) Development costs for the proposed project shall be reasonable compared to costs of comparable projects in the local area. (3) The proposed project shall be feasible. (4) The sponsor shall have the capacity to own and develop the proposed project. (c) Projects that meet threshold requirements shall be evaluated for funding based on weighted underwriting and evaluative criteria that give consideration to projects that meet the following criteria: (1) Serve households at the lowest income levels, consistent with long-term feasibility, considering regional variations. (2) Address the most serious identified local housing needs. (3) Will be developed and owned by entities with substantial and successful experience. (4) Contain a significant percentage of units for families or special needs populations. (5) Leverage other funds in those jurisdictions where they are available. (d) The department may establish alternate project selection processes, threshold requirements, and priorities for funds appropriated for special purposes. These alternate processes, requirements, and priorities shall be tied to the specific needs and objectives for which the funds have been appropriated. (e) Loans for rental housing developments and transitional housing may be reviewed, approved, and funded by the department directly to the sponsor. The department shall ensure that the sponsor notifies the local legislative body of the sponsor’s loan application prior to application submission. (f) The department may make grants to local public entities using funds reserved by the Legislature for rehabilitation, or acquisition and rehabilitation, in support of code enforcement. The local entities shall then make the funds available as loans, and they may be allowed to collect and retain loan repayments, provided that these repayments are reloaned in accordance with the requirements of this chapter, as it relates to funds used in support of code enforcement. (g) The department may establish set-asides for specific project types or projects that serve specific target populations. (h) This section shall become operative on January 1, 2022. (Repealed (in Sec. 5) and added by Stats. 2020, Ch. 192, Sec. 6. (AB 434) Effective January 1, 2021. Section operative January 1, 2022, by its own provisions.)
  60. 50675.8.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. )

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    Before loan funds are disbursed for certain rental housing developments, the department must make a regulatory agreement with the sponsor.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. ) ## 50675.8. (a) Prior to disbursement of any funds for loans to rental housing developments made pursuant to this chapter, the department shall enter into a regulatory agreement with the sponsor that provides for all of the following: (1) Sets standards for tenant selection to ensure occupancy of assisted units by eligible households of very low and low income for the term of the agreement. (2) Governs the terms of occupancy agreements. (3) Contains provisions to maintain affordable rent levels to serve eligible households. (4) Provides for periodic inspections and review of yearend fiscal audits and related reports by the department. (5) Permits a sponsor to distribute earnings in an amount established by the department and based on the number of units in the rental housing development. (6) Has a term for not less than the original term of the loan. (7) Contains any other provisions necessary to carry out the purposes of this chapter. (b) The agreement shall be binding upon the sponsor and successors in interest upon sale or transfer of the rental housing development regardless of any prepayment of the loan. (c) The agreement shall be recorded in the office of the county recorder in the county in which the real property subject to the agreement is located. (Added by Stats. 1999, Ch. 637, Sec. 2. Effective January 1, 2000.)
  61. 50675.9.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. )

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    The department may waive chapter requirements when federal funding or tax credits create minor inconsistencies and a waiver is needed to avoid unnecessary administrative burden.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.7. Multifamily Housing Program [50675 - 50675.16] ( Chapter 6.7 added by Stats. 1999, Ch. 637, Sec. 2. ) ## 50675.9. Where the requirements of federal funding for a project, or the requirements of the low-income housing tax credits used in a project, would cause a violation of the requirements of this chapter, the requirements of this chapter may be modified as necessary to ensure program compatibility. Where the requirements of federal funding or tax credits create what are deemed to be minor inconsistencies as determined by the director of the department, the department may waive the requirements of this chapter as deemed necessary to avoid an unnecessary administrative burden. (Added by Stats. 1999, Ch. 637, Sec. 2. Effective January 1, 2000.)
  62. 50676.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.8. Federal Housing Trust Fund [50676 - 50676.1] ( Chapter 6.8 added by Stats. 2015, Ch. 686, Sec. 2. )

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    The department administers federal Housing Trust Fund money for affordable rental housing, with limited support allowed for homeownership and administration.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.8. Federal Housing Trust Fund [50676 - 50676.1] ( Chapter 6.8 added by Stats. 2015, Ch. 686, Sec. 2. ) ## 50676. (a) The department is hereby designated as the state agency responsible for administering funds received by the state from the federal Housing Trust Fund pursuant to the Housing and Economic Recovery Act of 2008 (Public Law 110-289), and implementing federal regulations. The department may use up to 10 percent of the federal Housing Trust Fund annual grant award for expenses of administering these funds. (b) The department shall administer the funds through any existing or newly created programs that produce, preserve, rehabilitate, or support the operation of rental housing for extremely low income and very low income households, except that up to 10 percent of funding may be used to support home ownership for extremely low income and very low income households. Any rental project funded from the federal Housing Trust Fund shall restrict affordability for 55 years through a recorded and enforceable affordability covenant. Any home ownership program funded from the federal Housing Trust Fund shall restrict affordability for 30 years through either a recorded and enforceable affordability covenant or a recorded and enforceable equity recapture agreement. (c) The department shall collaborate with the California Housing Finance Agency to develop an allocation plan to demonstrate how the funds shall be distributed, based on the priority housing needs identified in the state’s consolidated plan prepared in accordance with Part 91 (commencing with Section 91.1) of Subtitle A of Title 24 of the Code of Federal Regulations. The department shall submit the plan to the Assembly Committee on Housing and Community Development and the Senate Transportation and Housing Committees 30 days after receipt of the federal funds. (d) The allocation plan and guidelines shall give priority to projects based on: (1) Geographic diversity. (2) The extent to which rents are affordable, especially to extremely low income households. (3) The merits of a project. (4) Applicants readiness. (5) The extent to which projects will use nonfederal funds. (e) The department shall award funds to projects serving people experiencing homelessness, to the extent that a sufficient number of projects exist. The department may alter priority for funding to align eligibility for possible benefits, including Medi-Cal benefits intended to fund services for people experiencing homelessness. (Amended by Stats. 2021, Ch. 396, Sec. 1. (AB 816) Effective January 1, 2022.)
  63. 50676.1.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.8. Federal Housing Trust Fund [50676 - 50676.1] ( Chapter 6.8 added by Stats. 2015, Ch. 686, Sec. 2. )

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    The departments must hold a stakeholder process for the allocation plan, and the department may issue, change, or repeal guidelines to implement the chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 6.8. Federal Housing Trust Fund [50676 - 50676.1] ( Chapter 6.8 added by Stats. 2015, Ch. 686, Sec. 2. ) ## 50676.1. (a) The departments shall convene a stakeholder process to inform the development of the allocation plan. Stakeholders represented shall include, but not be limited to, organizations that provide rental housing for extremely low income households and very low income households or assist extremely low income households and very low income households to become homeowners. (b) The department may adopt, amend, or repeal guidelines to implement this chapter. Any guidelines adopted to implement this chapter shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (Added by Stats. 2015, Ch. 686, Sec. 2. (AB 90) Effective January 1, 2016.)
  64. 50680.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. )

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    The Legislature says the department is given authority to obtain federal housing subsidies for housing for persons requiring supportive services.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. ) ## 50680. (a) The Legislature finds and declares that recent deemphasis of programs of institutional care for persons with developmental and physical disabilities and persons with mental health disorders has resulted in participation by many of those persons in programs of rehabilitation, education, and social services within the community. Because of the outpatient status of persons enrolled in those programs, there is a need to provide housing for them that will aid in accomplishment and maintenance of the objectives of those programs, thereby minimizing the numbers of persons with developmental and physical disabilities and persons with mental health disorders in public institutions and improving the quality of life for those persons. In order to assist in providing the variety of living arrangements required for this purpose, it is necessary that the state cooperate with cities, counties, cities and counties, and nonprofit corporations in obtaining federal housing subsidies therefor. (b) It is the intent of the Legislature in enacting this chapter to vest in the department authority to obtain federal housing subsidies for housing for persons requiring supportive services, as defined in this part. (Amended by Stats. 2014, Ch. 144, Sec. 40. (AB 1847) Effective January 1, 2015.)
  65. 50681.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. )

    Verify source ↗

    In this chapter, “department” means the Department of Housing and Community Development.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. ) ## 50681. As used in this chapter, “department” means the Department of Housing and Community Development. (Added by Stats. 1981, Ch. 1165.)
  66. 50682.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. )

    Verify source ↗

    This section defines “developmentally disabled” for this chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. ) ## 50682. As used in this chapter, “developmentally disabled” means affected by a disability specified in subdivision (a) of Section 4512 of the Welfare and Institutions Code rendering the affected person eligible to participate in programs of rehabilitation, education, or social services conducted by or on behalf of a public agency, and also means persons affected by such a disability. (Amended by Stats. 1982, Ch. 1020, Sec. 6.)
  67. 50683.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. )

    Verify source ↗

    In this chapter, “local agency” means a city, county, or city and county.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. ) ## 50683. As used in this chapter, “local agency” means a city, county, or city and county. (Added by Stats. 1981, Ch. 1165.)
  68. 50684.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. )

    Verify source ↗

    This section defines “persons with a mental health disorder” for use in this chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. ) ## 50684. As used in this chapter, “persons with a mental health disorder” means a person who is affected by a mental health disorder rendering the individual eligible to participate in programs of rehabilitation, education, or social services conducted by or on behalf of a public agency. (Amended by Stats. 2014, Ch. 144, Sec. 41. (AB 1847) Effective January 1, 2015.)
  69. 50685.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. )

    Verify source ↗

    This section defines “physically disabled” for this chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. ) ## 50685. As used in this chapter, “physically disabled” means affected by a physical disability rendering the affected persons eligible to participate in programs of rehabilitation, education, or social services conducted by or on behalf of a public agency, and also means persons affected by such a physical disability. (Amended by Stats. 1982, Ch. 1020, Sec. 8.)
  70. 50685.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. )

    Verify source ↗

    This section defines “persons requiring supportive services” for this chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. ) ## 50685.5. As used in this chapter, “persons requiring supportive services” means persons who are eligible to receive housing assistance pursuant to federal law because of financial inability to provide adequate housing for themselves or persons dependent upon them, who are or will be participating in programs of rehabilitation, education, or social services, and who meet any of the following criteria: (a) The person shall have been determined to have a developmental disability, but not to require institutional care, by the State Department of Developmental Services, a regional center established pursuant to Section 4620 of the Welfare and Institutions Code, or by the designated representative thereof. (b) The person shall have been determined to have a mental health disorder, but not to require institutional care, by a local director of mental health services, by the State Department of Health Care Services, or by the designated representatives thereof. (c) The person shall have been determined to have a physical disability by the Department of Rehabilitation or by the designated representatives thereof. (Amended by Stats. 2014, Ch. 144, Sec. 42. (AB 1847) Effective January 1, 2015.)
  71. 50686.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. )

    Verify source ↗

    The department has the same powers as housing authorities for obtaining U.S. financial subsidies or assistance to provide leased housing for persons needing supportive services.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. ) ## 50686. Notwithstanding any other provision of law, the department shall have all the powers granted to housing authorities pursuant to Part 2 (commencing with Section 34200) of Division 24 for the purpose of obtaining financial subsidies or assistance from any agency of the United States to provide leased housing pursuant to this chapter for persons requiring supportive services. (Amended by Stats. 1982, Ch. 1020, Sec. 10.)
  72. 50686.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. )

    Verify source ↗

    Public housing authorities may apply for federal housing subsidies. The department must later transfer covered contracts to public housing authorities, and housing authorities must file annual Aftercare reports that are open to public comment and review.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. ) ## 50686.5. (a) Notwithstanding any other provision of law, any public housing authority created pursuant to Part 2 (commencing with Section 34200) of Division 24 which is providing, or proposes to provide, housing for persons requiring supportive services may apply to the federal Department of Housing and Urban Development for federal housing subsidies therefor. (b) (1) On or after July 1, 1994, the department, with the approval of the federal Department of Housing and Urban Development, shall transfer, in accordance with subdivision (c), all contracts entered into under this section to public housing authorities created by Part 2 (commencing with Section 34200) of Division 24. Prior to the transfer of vouchers and certificates that are specifically designated for the use of persons with disabilities, the public housing authority shall deliver to the department a letter attesting to its intent to maintain the vouchers and certificates for the use of persons with disabilities, including the maintenance of a separate list of eligible voucher and certificate applicants to the extent allowed by federal law. The list shall be specially coded and identified as a local preference for Aftercare eligible certificate and voucher holders. The department shall make copies of the letters of intent available to any person who requests that information. (2) Each housing authority shall be required to annually report on its Aftercare activities in its annual Section 8 Certificate and Voucher Program report submitted to the federal Department of Housing and Urban Development and the department and to any representative of the disabled community that requests that information. All information in the annual Aftercare report shall be subject to public comment and review at a properly noticed Housing Authority Commission meeting. (c) The transfers authorized pursuant to paragraph (1) of subdivision (b) shall not occur unless and until the federal Department of Housing and Urban Development, prior to March 1, 1994, has notified the department, in writing, that the transfer can be structured so that the Aftercare vouchers and certificates will continue to serve the program’s existing and future clients. (Amended by Stats. 1994, Ch. 198, Sec. 2. Effective July 18, 1994.)
  73. 50687.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. )

    Verify source ↗

    The department may contract with U.S. agencies and with local entities to obtain and disburse housing funds and subsidies for housing serving persons needing supportive services.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. ) ## 50687. Notwithstanding the provisions of Section 50688, for the purposes of this chapter the department may do any or all of the following: (a) Enter into contracts with any agency of the United States for the purpose of obtaining funds for dispersal to local agencies, nonprofit corporations, and owners and developers of housing to subsidize housing for persons requiring supportive services. (b) Enter into contracts with local agencies, nonprofit corporations, and owners and developers of housing for persons requiring supportive services for the purpose of disbursing federal housing subsidies. (Amended by Stats. 1982, Ch. 1020, Sec. 12.)
  74. 50687.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. )

    Verify source ↗

    The department may change regulations for this chapter after consulting specified state departments, and it must submit applications for federal housing subsidies for persons needing supportive services.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. ) ## 50687.5. The department, after consultation with the State Department of Developmental Services, the Department of Rehabilitation, or the State Department of Health Care Services, may adopt, amend or repeal regulations for the administration of this chapter. The department shall submit applications for federal housing subsidies for persons requiring supportive services. (Amended by Stats. 2012, Ch. 34, Sec. 29. (SB 1009) Effective June 27, 2012.)
  75. 50688.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. )

    Verify source ↗

    People who got housing under Section 50680 may keep receiving rental housing assistance payments subsidies after leaving certain rehabilitation, education, or social services programs, if they meet federal criteria.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. ) ## 50688. The Legislature finds and declares that proper housing serves as a stabilizing factor and is an important facet of any program designed to rehabilitate persons with mental and physical disabilities and persons who have mental health disorders and that the disruption of continued occupancy in a dwelling could cause a setback in treatment in particular cases. It is, therefore, the intent of the Legislature that persons who have received housing under a program established pursuant to Section 50680 shall be allowed to continue to receive rental housing assistance payments subsidies after termination of participation in a public program of rehabilitation, education, or social services if the persons meet the criteria established by federal regulations governing low-rent housing programs. (Amended by Stats. 2014, Ch. 144, Sec. 43. (AB 1847) Effective January 1, 2015.)
  76. 50689.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. )

    Verify source ↗

    The department must create a housing assistance program for people with developmental or physical disabilities or mental health disorders, and participating local agencies or nonprofits must follow income, rent, unit, occupancy, and time-limit rules.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. ) ## 50689. (a) It is the intent of the Legislature in enacting this section to provide housing assistance for persons with developmental and physical disabilities and persons with mental health disorders where that assistance is for the purpose of providing a transition from an institutional to an independent setting, and where that assistance is administered in the context of ongoing local programs leading to rehabilitation and independence. (b) The department shall establish a program for the purpose of housing assistance for persons with developmental and physical disabilities and persons with mental health disorders. The department shall contract with local agencies or nonprofit corporations incorporated pursuant to Part 1 (commencing with Section 9000) of Division 2 of Title 1 of the Corporations Code that provide supportive services for those individuals, where those services are designed to provide a transition to independent living. The local agencies or nonprofit corporation shall ensure that recipients of housing assistance are income qualified under guidelines for programs of the federal Department of Housing and Urban Development under Section 8 of the United States Housing Act of 1937, as amended (42 U.S.C. Sec. 1437(f)), and shall not contract for housing that exceeds those guidelines for fair market rents for the Section 8 program. Public and private agencies participating in the program established pursuant to this section shall be those whose program philosophies and activities conform substantially to the principles of community living under Chapter 12 (commencing with Section 4830) of Division 4.5, community residential treatment under Chapter 5 (commencing with Section 5450) of Part 1 of Division 5, and independent living under Chapter 8 (commencing with Section 19800) of Part 2 of Division 10, of the Welfare and Institutions Code. (c) A local agency applying to the department for housing assistance payments shall, in its application, explain how the housing assistance payments are part of its ongoing programs to establish independent living for its clientele. The department, in reviewing these applications, may consult with the Department of Developmental Disabilities, the State Department of Health Care Services, and the Department of Rehabilitation. (d) In order to receive housing assistance payments for a specific structure pursuant to the provisions of this section, the local agency or nonprofit corporation shall not contract for rental of more than 12 units, or for rental of space for more than 24 persons, in the structure. No individual shall remain in a payment assisted unit for more than 18 months. (Amended by Stats. 2014, Ch. 144, Sec. 44. (AB 1847) Effective January 1, 2015.)
  77. 50689.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. )

    Verify source ↗

    Housing and housing programs developed or assisted under this chapter must be consistent with the local housing element of the general plan.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7. Special Housing Programs for the Developmentally Disabled, Mentally Disordered, and Physically Disabled [50680 - 50689.5] ( Chapter 7 added by Stats. 1981, Ch. 1165. ) ## 50689.5. Housing and housing programs developed or assisted pursuant to this chapter shall be consistent with the housing element, as required by Section 65302 of the Government Code, of the general plan of the jurisdiction in which the housing is proposed. (Added by Stats. 1981, Ch. 1165.)
  78. 50690.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 1. Findings and Declarations [50690 - 50691.1] ( Article 1 added by Stats. 1978, Ch. 1354. )

    Verify source ↗

    The Legislature states that housing information and technical assistance are needed, and that private enterprise and self-help can help meet housing goals.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 1. Findings and Declarations [50690 - 50691.1] ( Article 1 added by Stats. 1978, Ch. 1354. ) ## 50690. The Legislature finds and declares that the attainment of the national and state goal of providing every American family with a decent home and a suitable living environment is complicated by a lack of information and technical assistance regarding housing planning, design, rehabilitation, construction, and financing; alternative housing options for owners and renters; building codes and standards and housing codes; site acquisition and development; and building materials and methods and their costs and availability. The Legislature further finds and declares that the attainment of the national and state housing goal can be achieved, in part, through the fullest practicable utilization of the resources and capabilities of private enterprise and of individual and group self-help techniques. A significant number of persons and families of low or moderate income are capable of building or rehabilitating their own homes, in whole or in part, with considerable savings to themselves and benefits to the public. (Added by Stats. 1978, Ch. 1354.)
  79. 50691.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 1. Findings and Declarations [50690 - 50691.1] ( Article 1 added by Stats. 1978, Ch. 1354. )

    Verify source ↗

    This section states the chapter’s purposes: to promote private and self-help housing rehabilitation and construction, increase affordable housing supply, and show that low- and moderate-income housing improvements can be financially feasible.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 1. Findings and Declarations [50690 - 50691.1] ( Article 1 added by Stats. 1978, Ch. 1354. ) ## 50691. The purposes of this chapter are the following: (1) To encourage and foster the utilization of the resources and capabilities of private enterprise and of individual and group self-help techniques in the rehabilitation and replacement of deteriorated and dilapidated housing and in the construction of additional housing in both urban and rural areas. (2) To stimulate housing rehabilitation and construction so as to increase the supply of decent, affordable housing. (3) To demonstrate that improved housing conditions, ownership, and maintenance are within the financial capabilities of persons and families of low or moderate income through the reduced costs of owner-building, owner-rehabilitation and other self-help-oriented alternatives. Nothing in this chapter shall be construed as preventing participation of renters in such housing alternatives. (Added by Stats. 1978, Ch. 1354.)
  80. 50691.1.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 1. Findings and Declarations [50690 - 50691.1] ( Article 1 added by Stats. 1978, Ch. 1354. )

    Verify source ↗

    The Legislature declares that self-help housing is important, and says this chapter’s purposes include expanding affordable housing, homeownership opportunities, and community self-reliance for low- and moderate-income people.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 1. Findings and Declarations [50690 - 50691.1] ( Article 1 added by Stats. 1978, Ch. 1354. ) ## 50691.1. The Legislature finds and declares that self-help housing generates self-reliance and a sense of community for participants, and that it is an important and proven source of housing for many low- and moderate-income California residents. The Legislature further finds and declares that the California Self-Help Housing Program has been very successful in its goal of stimulating the production and rehabilitation of housing with the use of several self-help housing techniques, and that the program should be expanded to assist more low- and moderate-income residents throughout this state. In addition to the purposes specified in Section 50691, the purposes of this chapter include all of the following: (1) Expansion of the production of decent and affordable housing for low- and moderate-income people through the use of self-help methods of rehabilitation and construction. (2) Expansion of homeownership opportunities for those to whom it would otherwise not be available without the cost savings achieved by the self-help method. (3) Encouragement of self-reliance, pride of ownership, and sense of community for those who participate. (Amended by Stats. 1985, Ch. 1001, Sec. 2. Effective September 26, 1985.)
  81. 50692.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 2. Definitions [50692- 50692.] ( Article 2 added by Stats. 1978, Ch. 1354. )

    Verify source ↗

    This section defines “owner-builder,” “owner-building,” “self-help rehabilitator,” and “self-help rehabilitation.”

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 2. Definitions [50692- 50692.] ( Article 2 added by Stats. 1978, Ch. 1354. ) ## 50692. As used in this chapter: (a) “Owner-builder” means any person or family who provides all, or a substantial amount, as determined by the department, of the labor necessary to build a housing unit that will be the principal residence of that person or family. (b) “Owner-building” means the process engaged in by owner-builders in the construction of a principal residence. (c) “Self-help rehabilitator” means any person or family who provides all, or a substantial amount, as determined by the department, of the labor necessary to rehabilitate, renovate, or improve that person’s or family’s principal residence. (d) “Self-help rehabilitation” means the process engaged in by self-help rehabilitators in the rehabilitation, renovation or improvement of their principal residences. (Amended by Stats. 1985, Ch. 1001, Sec. 3. Effective September 26, 1985.)
  82. 50693.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 3. General Provisions [50693 - 50698] ( Article 3 added by Stats. 1978, Ch. 1354. )

    Verify source ↗

    This section establishes a California Self-Help Housing Program within the department.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 3. General Provisions [50693 - 50698] ( Article 3 added by Stats. 1978, Ch. 1354. ) ## 50693. There is hereby established, within the Division of Community Affairs of the department, a California Self-Help Housing Program. (Amended by Stats. 1985, Ch. 1001, Sec. 4. Effective September 26, 1985.)
  83. 50694.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 3. General Provisions [50693 - 50698] ( Article 3 added by Stats. 1978, Ch. 1354. )

    Verify source ↗

    The California Self-Help Housing Program must carry out several housing support activities, including providing information, research, training, and technical assistance.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 3. General Provisions [50693 - 50698] ( Article 3 added by Stats. 1978, Ch. 1354. ) ## 50694. The California Self-Help Housing Program shall do all of the following: (a) Be a clearinghouse for owner-building and self-help rehabilitation information. (b) Conduct research projects and training projects pertaining to owner-building and self-help rehabilitation. (c) Provide information and technical assistance to, and between, public and private agencies, community groups, and present and prospective owner-rehabilitators and self-help rehabilitators. (d) Prepare, publish, and disseminate educational information relating to, and encouraging, owner-building and self-help rehabilitation. (e) Encourage and facilitate the effective use of available housing resources by existing and potential owner-builders and self-help rehabilitators and other persons seeking to improve their principal residences. (f) Encourage and assist the formation and operation of neighborhood organizations and community design centers to assist owner-builders and self-help rehabilitators. (Amended by Stats. 1985, Ch. 1001, Sec. 5. Effective September 26, 1985.)
  84. 50695.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 3. General Provisions [50693 - 50698] ( Article 3 added by Stats. 1978, Ch. 1354. )

    Verify source ↗

    The California Self-Help Housing Program must provide potential and actual owner-builders and self-help rehabilitators with specified information and technical assistance.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 3. General Provisions [50693 - 50698] ( Article 3 added by Stats. 1978, Ch. 1354. ) ## 50695. The California Self-Help Housing Program shall provide potential and actual owner-builders and self-help rehabilitators all of the following information and technical assistance: (a) The cost savings of owner-building and self-help rehabilitation. (b) Construction materials and methods. (c) The identity of local material sources and technical resources. (d) Financing requirements and opportunities. (e) Site acquisition. (f) Insurance and legal requirements. (g) Energy and water conservation. (h) Building codes and standards and housing codes. (i) Other available housing alternatives. (j) Any other information or technical assistance determined by the department to further the purposes of this chapter. (Amended by Stats. 1985, Ch. 1001, Sec. 6. Effective September 26, 1985.)
  85. 50696.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 3. General Provisions [50693 - 50698] ( Article 3 added by Stats. 1978, Ch. 1354. )

    Verify source ↗

    The California Self-Help Housing Program may provide technical assistance and may contract for housing assistance, while the department must not contract with entities that deny benefits or discriminate, and may set monthly housing cost standards up to 30% of gross monthly income.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 3. General Provisions [50693 - 50698] ( Article 3 added by Stats. 1978, Ch. 1354. ) ## 50696. (a) The California Self-Help Housing Program may provide the information and technical assistance required by Section 50695 in conjunction with federal and state energy and water conservation programs, and federal and state neighborhood preservation and urban homesteading programs, including local programs carried on in federally assisted community development neighborhoods, neighborhood preservation areas, redevelopment project areas, urban homesteading areas, and residential rehabilitation areas. (b) The California Self-Help Housing Program may contract with public entities and private nonprofit corporations to provide assistance to persons and families of low or moderate income who are owner-builders or self-help rehabilitators, as defined in subdivisions (a) and (c) of Section 50692. These contracts shall provide grant funds for any of the following activities: (1) To cover the costs of developing, conducting, administering, or coordinating programs of technical or supervisory assistance which will aid persons and families of low or moderate income in carrying out owner-building or self-help rehabilitation housing efforts. (2) To write down the development costs of the participant’s housing. (3) To reduce monthly mortgage payments by reducing the interest cost to the participant through supplemental payments of those grant funds, reducing principal, or deferring all or a portion of the payments until the housing is sold or refinanced. (c) The primary emphasis of the California Self-Help Housing Program and local self-help housing programs shall be to expand and improve the housing stock available to lower income households. The program shall give priority to those applications received by the program which serve the highest proportion of lower income households. (d) The department shall not contract with any public entity or private nonprofit corporation pursuant to subdivision (b) if that entity or corporation denies the benefits of this chapter, or discriminates in the provision of assistance pursuant to this chapter, in violation of Section 11135 of the Government Code, as determined by the department. (e) Notwithstanding Section 50052.5, the department may establish a standard for monthly housing costs that does not exceed 30 percent of the gross monthly income of persons eligible for assistance pursuant to subdivision (b) of Section 50696. (Amended by Stats. 1985, Ch. 1001, Sec. 7. Effective September 26, 1985.)
  86. 50697.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 3. General Provisions [50693 - 50698] ( Article 3 added by Stats. 1978, Ch. 1354. )

    Verify source ↗

    The department must support self-help housing programs, adopt implementing regulations, and may seek funding and local agency commitments.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 3. General Provisions [50693 - 50698] ( Article 3 added by Stats. 1978, Ch. 1354. ) ## 50697. (a) The department shall encourage or support all self-help housing program activities in the state and shall do so in accordance with the policies, goals, and objectives of the California Statewide Housing Plan. (b) The department may seek commitments, on a matching or other basis, from local agencies for the financial support of local self-help housing programs. (c) The department may seek, obtain, and utilize public and private funds to carry out the purposes and general provisions of this chapter. (d) The department shall adopt procedures and regulations necessary to implement this chapter. The regulations shall include, but need not be limited to, both of the following requirements: (1) A maximum mortgage subsidy limit. (2) Guidelines which either encourage resale to lower income households or provide assistance to new self-help households. These guidelines shall include, but need not be limited to, permitting assumption of department mortgage subsidies or permitting partial or total forgiveness of mortgage subsidies after a specified period of occupancy by eligible households. If a household receiving assistance sells to a household which is not an eligible household, the regulations shall provide for repayment of the mortgage subsidy and may provide for payment of interest on the mortgage subsidy. The guidelines shall also provide that, if the market value at the time of resale to either an eligible or ineligible household is less than the total of outstanding mortgages, liens, and the value of the self-help equity, the amount due in repayment of the mortgage subsidy shall be reduced by the difference between that total and the market value. (e) Any assistance provided pursuant to this chapter shall be considered a purchase or rehabilitation loan for the purposes of Section 711.5 of the Civil Code. (Amended by Stats. 1985, Ch. 1001, Sec. 8. Effective September 26, 1985.)
  87. 50697.1.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 3. General Provisions [50693 - 50698] ( Article 3 added by Stats. 1978, Ch. 1354. )

    Verify source ↗

    Creates the Self-Help Housing Fund in the State Treasury and limits how its money may be transferred and used.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 3. General Provisions [50693 - 50698] ( Article 3 added by Stats. 1978, Ch. 1354. ) ## 50697.1. (a) The Self-Help Housing Fund is hereby created in the State Treasury. Notwithstanding Section 13340 of the Government Code, all moneys in the fund are continuously appropriated for contracts entered into pursuant to subdivision (b) of Section 50696 and for costs incurred by the California Self-Help Housing Program in administering the program. The moneys in the fund are not subject to transfer to any other fund pursuant to Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, except the Surplus Money Investment Fund. The department may require the transfer of moneys in the fund to the Surplus Money Investment Fund for investment pursuant to Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government Code. Notwithstanding Section 16305.7 of the Government Code, all interest, dividends, and pecuniary gains from the investments shall accrue to the fund. (b) The Self-Help Housing Fund shall consist of all of the following: (1) Any moneys appropriated to the fund by the Legislature. (2) Any moneys which the California Self-Help Housing Program receives in repayment or return of the funds, including any interest on those moneys. (3) Any other moneys which may be made available to the California Self-Help Housing Program for the purposes of subdivision (b) of Section 50696 from any other source or sources. (Amended by Stats. 1996, Ch. 201, Sec. 20. Effective July 22, 1996.)
  88. 50698.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 3. General Provisions [50693 - 50698] ( Article 3 added by Stats. 1978, Ch. 1354. )

    Verify source ↗

    The director’s last annual report before January 1, 1982 must include recommendations about improving, continuing, or ending the California Housing Advisory Service.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 7.5. Housing Advisory Service [50690 - 50698] ( Chapter 7.5 added by Stats. 1978, Ch. 1354. ) ## ARTICLE 3. General Provisions [50693 - 50698] ( Article 3 added by Stats. 1978, Ch. 1354. ) ## 50698. The director’s last annual report to the Governor and the Legislature prior to January 1, 1982, shall include recommendations for improvement, continuation, or termination of the California Housing Advisory Service. (Added by Stats. 1978, Ch. 1354.)
  89. 5070.

    ## Health and Safety Code - HSC ## DIVISION 5. SANITATION [4600 - 6127] ( Division 5 enacted by Stats. 1939, Ch. 60. ) ## PART 3. COMMUNITY FACILITIES [4600 - 6127] ( Heading of Part 3 amended by Stats. 1970, Ch. 420. ) ## CHAPTER 5. Sewer Revenue Bonds [4950 - 5072] ( Chapter 5 enacted by Stats. 1939, Ch. 60. ) ## ARTICLE 9. Annexation and Exclusion [5070 - 5072] ( Article 9 added by Stats. 1951, Ch. 629. )

    Verify source ↗

    An annexed territory that uses the district’s works becomes subject to the district’s rates and charges if the district has authorized bonds under this chapter.

    ## Health and Safety Code - HSC ## DIVISION 5. SANITATION [4600 - 6127] ( Division 5 enacted by Stats. 1939, Ch. 60. ) ## PART 3. COMMUNITY FACILITIES [4600 - 6127] ( Heading of Part 3 amended by Stats. 1970, Ch. 420. ) ## CHAPTER 5. Sewer Revenue Bonds [4950 - 5072] ( Chapter 5 enacted by Stats. 1939, Ch. 60. ) ## ARTICLE 9. Annexation and Exclusion [5070 - 5072] ( Article 9 added by Stats. 1951, Ch. 629. ) ## 5070. Territory which has become annexed to a district which has authorized the issuance of bonds pursuant to this chapter, and which territory shall use the works, shall become subject to the rates and charges imposed by the district for the use and maintenance of the works. (Added by Stats. 1951, Ch. 629.)
  90. 50700.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8. Housing-Related Parks Program [50700 - 50704.5] ( Chapter 8 added by Stats. 2008, Ch. 641, Sec. 1. )

    Verify source ↗

    This section defines key terms used in the Housing-Related Parks Program chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8. Housing-Related Parks Program [50700 - 50704.5] ( Chapter 8 added by Stats. 2008, Ch. 641, Sec. 1. ) ## 50700. For the purposes of this chapter, the following terms have the following meanings, unless the context clearly requires otherwise: (a) “Designated time period” means the time period designated in the Notice of Funding Availability required under subdivision (b) of Section 50702. (b) “Disadvantaged community,” for the purposes of this program, means an area within a city, county, or city and county that is composed solely of those census tracts designated by the United States Department of Housing and Urban Development as having at least 51 percent of its residents of low- or moderate-income levels, using the most recent United States Department of Census data available at the time of the Notice of Funding Availability. (c) “Infill project” means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 75 percent of the perimeter of the site adjoins parcels that are developed with urban uses. For these purposes, a property is adjoining the side of a project site if the property is separated from the project site only by an improved public right-of-way. (d) “Park and recreation facility” means a facility that provides benefits to the community and includes, but is not limited to, places for organized team sports, outdoor recreation, and informal turf play; nonmotorized recreational trails; permanent play structures; landscaping; community gardens; places for passive recreation; multipurpose structures designed to meet the special recreational, educational, vocational, and social needs of youth, senior citizens, and other population groups; recreation areas created by the redesign and retrofit of urban freeways; community swim centers; regional recreational trails; and infrastructure and other improvements that support these facilities. (e) “Parks deficient community” means a community that has less than three acres of usable parkland per 1,000 residents. (f) “Regional blueprint plan” means a regional plan that implements statutory requirements intended to foster comprehensive planning, as defined in Section 65041.1 of, Chapter 2.5 (commencing with Section 65080) of Division 1 of Title 7 of, and Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of, the Government Code. The regional blueprint plan articulates regional consensus and performance outcomes on a more efficient land use pattern that supports improved mobility and reduces dependency on single-occupant vehicle trips; accommodates an adequate supply of housing for all income levels; reduces impacts on valuable farmland, natural resources, and air quality; includes the reduction of greenhouse gas emissions; increases water and energy conservation and efficiency; and promotes a prosperous economy and safe, healthy, sustainable, and vibrant neighborhoods. (g) “Urbanized area” means an incorporated city or an urbanized area or urban cluster as defined by the United States Census Bureau. For unincorporated areas outside of an urban area or urban cluster, the area shall be within a designated urban service area that is designated in the local general plan for urban development and is served by public sewer and water. (h) “Urban use” means any residential, commercial, industrial, public institutional, transit, transportation passenger facility, or retail use, or any combination of those uses. (Amended by Stats. 2012, Ch. 779, Sec. 1. (AB 1672) Effective January 1, 2013.)
  91. 50701.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8. Housing-Related Parks Program [50700 - 50704.5] ( Chapter 8 added by Stats. 2008, Ch. 641, Sec. 1. )

    Verify source ↗

    The Housing-Related Parks Program is established and administered by the department to provide grants for park and recreation facilities.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8. Housing-Related Parks Program [50700 - 50704.5] ( Chapter 8 added by Stats. 2008, Ch. 641, Sec. 1. ) ## 50701. There is hereby established in state government the Housing-Related Parks Program, to be administered by the department, using funds allocated, upon appropriation, under subdivision (d) of Section 53545, for the purpose of providing grants for the creation, development, or rehabilitation of park and recreation facilities to cities, counties, and cities and counties based on the issuance of building permits for new housing units, or housing units substantially rehabilitated, acquired, or preserved with committed assistance from the city, county, or city and county, that are affordable to very low or low-income households. (Amended by Stats. 2012, Ch. 779, Sec. 2. (AB 1672) Effective January 1, 2013.)
  92. 50702.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8. Housing-Related Parks Program [50700 - 50704.5] ( Chapter 8 added by Stats. 2008, Ch. 641, Sec. 1. )

    Verify source ↗

    The department must set a base grant amount and publish annual funding availability for eligible jurisdictions, with grant amounts tied to per-bedroom incentives and reduced proportionally if funding is oversubscribed.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8. Housing-Related Parks Program [50700 - 50704.5] ( Chapter 8 added by Stats. 2008, Ch. 641, Sec. 1. ) ## 50702. (a) To the extent that funds are available for this purpose, the department shall determine a base grant amount to be provided under this chapter to any city, county, or city and county that meets all of the following criteria: (1) On or before the end of the period covered by the Notice of Funding Availability required under subdivision (b), the jurisdiction has adopted a housing element that the department, pursuant to Section 65585 of the Government Code, has found to be in substantial compliance with the requirements of Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code, and the jurisdiction submitted to the department the annual progress report required under Section 65400 of the Government Code for the preceding 12-month calendar year. (2) The jurisdiction can document either of the following: (A) The issuance of building permits for new housing units that are affordable to very low or low-income households within the designated time period and that meet either of the following criteria: (i) In the case of rental units, the development is subject to a regulatory agreement recorded against the property that obligates the owner to maintain rents on the restricted units at levels affordable to very low or low-income households for at least 55 years. (ii) In the case of ownership housing, units in the development are initially sold to households of very low or low income at an affordable housing cost. If public funds are used to achieve an affordable housing cost, then upon the sale of an assisted unit to a very low or low-income household, the public entity shall ensure the repayment of the public funds and reuse of those funds for affordable housing for a period of at least 20 years. The proposed mechanism for restrictions of ownership units shall be consistent with criteria established by the department and specified in the Notice of Funding Availability. (B) The issuance of a certificate of occupancy or other evidence of readiness for occupancy within the designated time period for units that meet the requirements of paragraph (2) of subdivision (c) of Section 65583.1 of the Government Code, except that the city, county, or city and county may have committed assistance at any time during the projection period. (b) For each year that funds are available, the department shall issue a Notice of Funding Availability for building permits issued during the designated time period. The department shall accept applications at the close of the designated period. Grant amounts shall be based on a per-bedroom incentive for each unit restricted for very low and low-income households. For the purposes of this section, single-room occupancies and studio apartments shall be considered one-bedroom units. (c) If eligibility for funds exceeds the amount of funding available for the program, the department shall reduce all grants proportionally. (Amended by Stats. 2012, Ch. 779, Sec. 3. (AB 1672) Effective January 1, 2013.)
  93. 50703.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8. Housing-Related Parks Program [50700 - 50704.5] ( Chapter 8 added by Stats. 2008, Ch. 641, Sec. 1. )

    Verify source ↗

    The department must award bonus funds on top of the base grant and determine the bonus amount under this chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8. Housing-Related Parks Program [50700 - 50704.5] ( Chapter 8 added by Stats. 2008, Ch. 641, Sec. 1. ) ## 50703. (a) The department shall award bonus funds in addition to the base grant award for applicants that meet the requirements under Section 50702. The department shall determine the amount of the bonus funds to be awarded pursuant to this chapter. (b) The amount of the bonus funds to be awarded shall be established in the Notice of Funding Availability. (c) Substantial bonus funds shall be awarded for any of the following: (1) Jurisdictions that demonstrate that grant funds will be spent to improve a park or community recreational facility that will serve a disadvantaged community, as defined in subdivision (b) of Section 50700. (2) Jurisdictions that demonstrate that grant funds will be spent to create a new park or community recreational facility that will serve a disadvantaged community, as defined in subdivision (b) of Section 50700. (3) Jurisdictions that meet the definition of a park deficient community, as defined in subdivision (e) of Section 50700. (4) Qualifying new housing units. (d) Additional bonus funds shall be awarded for any of the following: (1) Qualifying units that are affordable to extremely low income households. (2) Qualifying units that are developed in infill projects. (3) Jurisdictions that have met or exceeded housing production thresholds established by the department, in consultation with the Department of Finance. (4) Those jurisdictions that can demonstrate that grant funds will be spent to create or improve a park or community recreational facility to support infill development, or development within a jurisdiction that has conformed its general plan to the regional blueprint, as determined by the council of governments. (Amended by Stats. 2012, Ch. 779, Sec. 4. (AB 1672) Effective January 1, 2013.)
  94. 50704.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8. Housing-Related Parks Program [50700 - 50704.5] ( Chapter 8 added by Stats. 2008, Ch. 641, Sec. 1. )

    Verify source ↗

    Cities, counties, and city and county governments may get a grant only if they meet the permit-based minimum, with a limited option to delay and combine permit counts if they fall short.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8. Housing-Related Parks Program [50700 - 50704.5] ( Chapter 8 added by Stats. 2008, Ch. 641, Sec. 1. ) ## 50704. (a) (1) Except as authorized under paragraph (2), a city, county, or city and county shall not receive a grant unless it qualifies, based on building permits issued during the period designated in the Notice of Funding Availability, for a grant in an amount of seventy-five thousand dollars ($75,000) or more. (2) If a city, county, or city and county is not able to meet the minimum qualification amount under paragraph (1), it may delay application, combine the number of building permits issued during the designated period described in paragraph (1) with the number of building permits issued during one or more subsequent Notice of Funding Availability periods, and apply once it is able to meet the minimum qualification amount by using the combined amount of building permits issued. (b) Grants provided pursuant to this chapter shall be used for the costs of park and recreation facility creation, development, or rehabilitation, including, but not limited to, the acquisition of land for the purposes of those activities, consistent with the requirements set forth in Section 16727 of the Government Code. (c) Funds awarded pursuant to this chapter shall supplement, not supplant, other available funding. (d) A city, county, or city and county that receives funds under this chapter may subcontract through a recreation and park district formed under Chapter 4 (commencing with Section 5780) of Division 5 of the Public Resources Code, or a district formed pursuant to Section 5500 or 35100 of the Public Resources Code, for the creation or improvement of a park or recreational facility, or any nonprofit organization described in Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. Sec. 501(c)(3)), that is exempt from taxation under Section 501(a) of that code (26 U.S.C. Sec. 501(a)), and that has among its purposes the conservation of natural or cultural resources. (Amended by Stats. 2012, Ch. 779, Sec. 5. (AB 1672) Effective January 1, 2013.)
  95. 50704.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8. Housing-Related Parks Program [50700 - 50704.5] ( Chapter 8 added by Stats. 2008, Ch. 641, Sec. 1. )

    Verify source ↗

    The department must adopt guidelines for operating the program.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8. Housing-Related Parks Program [50700 - 50704.5] ( Chapter 8 added by Stats. 2008, Ch. 641, Sec. 1. ) ## 50704.5. The department shall adopt guidelines for the operation of the program. The guidelines shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Division 3 of Title 2 of the Government Code. (Added by Stats. 2008, Ch. 641, Sec. 1. Effective January 1, 2009.)
  96. 50704.80.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.2. Excess Site Local Government Matching Grants Program [50704.80 - 50704.83] ( Chapter 8.2 added by Stats. 2021, Ch. 111, Sec. 22. )

    Verify source ↗

    This section defines key terms for the Excess Sites Local Government Matching Grants Program.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.2. Excess Site Local Government Matching Grants Program [50704.80 - 50704.83] ( Chapter 8.2 added by Stats. 2021, Ch. 111, Sec. 22. ) ## 50704.80. For purposes of this chapter, the following definitions shall apply: (a) “Department” means the Department of Housing and Community Development. (b) “Local government” means a city, county, city and county, public housing authority, joint powers authority, or an authority created pursuant to Section 8169.4 of the Government Code. (c) “Program” means the Excess Sites Local Government Matching Grants Program established under to this chapter. (d) “Selected developer” means a development partner selected under the Executive Order No. N-06-19 program to enter a ground lease with the state to create affordable housing on excess state-owned property. (Amended by Stats. 2022, Ch. 70, Sec. 18. (SB 197) Effective June 30, 2022.)
  97. 50704.81.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.2. Excess Site Local Government Matching Grants Program [50704.80 - 50704.83] ( Chapter 8.2 added by Stats. 2021, Ch. 111, Sec. 22. )

    Verify source ↗

    This section establishes the Excess Sites Local Government Matching Grants Program and directs the department to administer it and award grants to selected developers.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.2. Excess Site Local Government Matching Grants Program [50704.80 - 50704.83] ( Chapter 8.2 added by Stats. 2021, Ch. 111, Sec. 22. ) ## 50704.81. (a) (1) The Excess Sites Local Government Matching Grants Program is hereby established for the purpose of providing selected developers with one-time grants for development activities to enable development on excess state-owned property. (2) Upon appropriation by the Legislature, thirty million dollars ($30,000,000) shall be allocated under the program in accordance with this chapter. (b) The department shall administer the program and, consistent with the requirements of this chapter, award grants to selected developers for predevelopment and development costs to accelerate housing production on excess state-owned properties, and to match local government contributions for predevelopment and development costs for selected developers. (c) Of the total amount of any moneys appropriated under this chapter, the department shall set aside up to 5 percent for program administration, including state operations expenditures and technical assistance. (Added by Stats. 2021, Ch. 111, Sec. 22. (AB 140) Effective July 19, 2021.)
  98. 50704.82.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.2. Excess Site Local Government Matching Grants Program [50704.80 - 50704.83] ( Chapter 8.2 added by Stats. 2021, Ch. 111, Sec. 22. )

    Verify source ↗

    This section makes matching grants available to selected developers working on affordable housing on excess state-owned property, with local government contribution required for eligibility.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.2. Excess Site Local Government Matching Grants Program [50704.80 - 50704.83] ( Chapter 8.2 added by Stats. 2021, Ch. 111, Sec. 22. ) ## 50704.82. Excess sites local government matching grants shall be available to selected developers that will receive contributions from local governments in accordance with the following: (a) The moneys appropriated under this chapter shall be allocated to selected developers that will receive contributions from a local government in support of affordable housing development on excess state-owned properties. (b) (1) A local government and a selected developer may jointly apply for a grant pursuant to this section by submitting an application, in the form and manner prescribed by the department, that includes the following information: (A) A budget including all sources, approved by local government resolution, demonstrating the amount of local government contribution to the selected developer for predevelopment and development costs for affordable housing on excess state-owned property, and the requested amount from the program. (B) An explanation of how proposed amounts from local government and the program will support and accelerate housing production on excess state-owned property by the selected developer. (C) A commitment and strategy from the local government to support the selected developer in a community outreach plan and lease up for the affordable housing development on the excess state-owned property. (2) The department shall review an application submitted pursuant to this subdivision in an expeditious manner. Upon approval of an application for funds pursuant to this section, the department shall award the moneys for which the selected developer qualifies. (c) A selected developer that receives an allocation of funds pursuant to this section shall use those moneys to accelerate housing production on the excess state-owned property, as follows: (1) Allocating moneys directly to the predevelopment and development costs of housing and infrastructure that will accelerate housing production on excess state-owned property in a way that aligns with state planning priorities, housing, transportation, equity, and climate goals. Predevelopment costs may include environmental remediation and mitigation, geotechnical assessment, and activities related to the seismic retrofitting of existing improvements. Development costs may include improvements associated with an adaptive reuse project. (2) Developing and implementing a community outreach and engagement plan, or lease-up strategy. (3) Covering the costs of temporary staffing or consultant needs associated with the activities described in paragraphs (1) and (2). (d) The maximum program contribution that a selected developer may receive pursuant to this subdivision shall not exceed ten million dollars ($10,000,000). When evaluating applications and determining awards, the department shall take into consideration factors including, but not limited to, all of the following: (1) Value of the local government contribution. (2) Need geographically across the state. (3) The creation of new permanent housing options. (4) The potential for state funding for, and local contributions to make, additional housing units financially viable through this program. (5) The availability of other replacement funding sources and the feasibility of securing such funding. (e) Notwithstanding subdivision (d), the department may award a program contribution to a selected developer in excess of ten million dollars ($10,000,000) when taking into consideration the factors listed in subdivision (d) and other factors, including, but not limited to, all of the following: (1) The size, scale, and historical uses of the site. (2) The presence and condition of existing improvements. (3) The availability of other replacement funding sources and the feasibility of securing that funding. (Amended by Stats. 2022, Ch. 70, Sec. 19. (SB 197) Effective June 30, 2022.)
  99. 50704.83.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.2. Excess Site Local Government Matching Grants Program [50704.80 - 50704.83] ( Chapter 8.2 added by Stats. 2021, Ch. 111, Sec. 22. )

    Verify source ↗

    A selected developer that gets a grant must file a report by December 31 of the next year and then every year after that. The department must keep and publish certain grant information, and it may ask for more information, monitor compliance, seek repayment, and issue program forms and guidance.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.2. Excess Site Local Government Matching Grants Program [50704.80 - 50704.83] ( Chapter 8.2 added by Stats. 2021, Ch. 111, Sec. 22. ) ## 50704.83. (a) (1) A selected developer that receives a grant pursuant to this chapter shall submit a report, in a form and manner prescribed by the department, by December 31 of the year following the receipt of those funds, and annually thereafter, that contains the following information: (A) The status of the proposed expenditures and uses of the local government contribution and the grant moneys as listed in the application for funding. (B) The corresponding impact on the affordable housing development on excess state-owned property, categorized based on the eligible uses specified in subdivision (c) of Section 50704.82. (2) The department may request additional information, as needed, to meet other applicable reporting or audit requirements. (b) The department shall maintain records of the following and provide that information publicly on its internet website: (1) The name of each applicant for grant moneys and the status of that entity’s application. (2) The number of applications for grant moneys received by the department. (3) The information described in subdivision (a) for each recipient of grant moneys. (c) The department may monitor expenditures and activities of an applicant and grantee, as the department deems necessary, to ensure compliance with program requirements. (d) The department may, as it deems appropriate or necessary, request the repayment of funds from an applicant or grantee, or pursue any other remedies available to it by law, for failure to comply with program requirements. (e) The department may implement the program through the issuance of forms, guidelines, and one or more notices of funding availability, as the department deems necessary, to exercise the powers and perform the duties conferred on it by this chapter. Any forms, guidelines, and notices of funding availability adopted pursuant to this section are hereby exempted from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (f) The department’s decision to approve or deny an application or request for grant moneys pursuant to the program, and its determination of the amount of funding to be provided, shall be final. (g) For development projects on property leased pursuant to this section, any requests for qualifications or requests for proposals issued shall identify the project as a public work for which prevailing wages shall be paid for purposes of Article 1 (commencing with Section 1720) of Chapter 1 of Part 7 of Division 2 of the Labor Code. (Amended by Stats. 2023, Ch. 40, Sec. 18. (AB 129) Effective July 10, 2023.)
  100. 50705.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.3. Affordable Housing Revolving Development and Acquisition Program [50705 - 50708] ( Heading of Chapter 8.3 renumbered from Chapter 8.5 (as added by Stats. 2007, Ch. 652) by Stats. 2010, Ch. 610, Sec. 7. )

    Verify source ↗

    The department must create and run the Affordable Housing Revolving Development and Acquisition Program, adopt guidelines for it, and adopt regulations before issuing any request for qualifications funded with loan repayments or other sources.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.3. Affordable Housing Revolving Development and Acquisition Program [50705 - 50708] ( Heading of Chapter 8.3 renumbered from Chapter 8.5 (as added by Stats. 2007, Ch. 652) by Stats. 2010, Ch. 610, Sec. 7. ) ## 50705. (a) The Affordable Housing Revolving Development and Acquisition Program is hereby established for the purpose of funding the acquisition of property to develop or preserve affordable housing. The program will be comprised of a Loan Fund. (b) The department shall adopt guidelines for the operation of the program. The guidelines shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. The department shall adopt regulations for the program prior to issuing any request for qualifications funded with loan repayments or any other sources. (Amended by Stats. 2012, Ch. 784, Sec. 1. (AB 1951) Effective January 1, 2013.)
  101. 50706.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.3. Affordable Housing Revolving Development and Acquisition Program [50705 - 50708] ( Heading of Chapter 8.3 renumbered from Chapter 8.5 (as added by Stats. 2007, Ch. 652) by Stats. 2010, Ch. 610, Sec. 7. )

    Verify source ↗

    The department must seek a private fund manager for the Loan Fund, and applicants must meet detailed eligibility and project-support requirements to get loans for affordable housing property purchases.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.3. Affordable Housing Revolving Development and Acquisition Program [50705 - 50708] ( Heading of Chapter 8.3 renumbered from Chapter 8.5 (as added by Stats. 2007, Ch. 652) by Stats. 2010, Ch. 610, Sec. 7. ) ## 50706. (a) (1) The department shall issue a request for qualification to select a private sector entity to manage the Loan Fund for a period of five years, and the agreement may be extended in additional five-year increments. The selected fund manager shall be responsible for reviewing and approving loan applications, originating and servicing loans, and establishing terms and conditions for loan applications. The fund manager shall meet all of the following criteria: (A) Be a nonprofit lender with experience making similar loans in this state. (B) Have originated and serviced loans in the aggregate amount of not less than thirty million dollars ($30,000,000) that were used to develop or acquire affordable housing, including at least ten million dollars ($10,000,000) or more in acquisition loans. (C) Have at least twenty-five million dollars ($25,000,000) of its own capital invested in loans to affordable housing developers whose characteristics are similar to the criteria the fund manager will be implementing under the new gap acquisition fund. (D) Be the originator of loans in the aggregate amount of twenty-five million dollars ($25,000,000) or more using bank or other investor capital. (2) Applicants for fund manager shall submit a detailed business plan describing how the entity intends to meet the requirements of the Loan Fund. The business plan shall include a description of appropriate financial and internal controls and underwriting standards and procedures. The plan shall also demonstrate how the lender will close loans quickly. (b) Applicants may apply to the fund manager for loans to purchase real property for the development or preservation of housing affordable to low-income households. Loans made under this section shall be for a maximum term of five years. (c) Applicants shall demonstrate all of the following: (1) The support of the local government in which the real property is located for the proposed development project. Support may be demonstrated through a letter from the governing board or the manager of the housing or community development department. (2) Availability of additional funds equal to three times the loan amount. (3) Sufficient organizational stability and capacity to carry out the proposed development project for which the property is being purchased. Capacity may be demonstrated by substantial successful experience performing similar activities, or through other means acceptable to the department. (4) Completion of not less than five housing development projects, with each project having not less than 40 percent of the units sold at an affordable housing cost, as defined in Section 50052.5, or rented at an affordable rent, as defined by Section 50053. (d) The guidelines and regulations, at a minimum, shall do all of the following: (1) Establish the minimum criteria required of the fund manager and applicants. (2) Establish a point system for prioritizing requests in the event that requests exceed the funds available for the program in any given year. (3) Give priority to applicants that propose development projects with the greatest level of affordability. (4) Provide that any equity not originally contributed by the borrower shall return to the state for the purposes of this program if the property is sold or transferred for purposes other than affordable housing. (5) Establish a reasonable fund manager administrative fee. (e) Funds not lent by the fund manager within 48 months after availability to the fund manager shall be disencumbered and transferred to the Self-Help Housing Fund established under Section 50697.1, to be expended for the purposes of the CalHome Program established under Chapter 6 (commencing with Section 50650). (Added by Stats. 2007, Ch. 652, Sec. 2. Effective October 13, 2007.)
  102. 50708.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.3. Affordable Housing Revolving Development and Acquisition Program [50705 - 50708] ( Heading of Chapter 8.3 renumbered from Chapter 8.5 (as added by Stats. 2007, Ch. 652) by Stats. 2010, Ch. 610, Sec. 7. )

    Verify source ↗

    The department must collect specified information from each borrower and summarize it in its last annual report to the Legislature due on or before December 31, 2013.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.3. Affordable Housing Revolving Development and Acquisition Program [50705 - 50708] ( Heading of Chapter 8.3 renumbered from Chapter 8.5 (as added by Stats. 2007, Ch. 652) by Stats. 2010, Ch. 610, Sec. 7. ) ## 50708. The department shall collect all of the following from each borrower and include a summary of this information in its last annual report submitted to the Legislature on or before December 31, 2013, pursuant to Section 50408: (a) A general description of activities undertaken pursuant to this chapter. (b) For each property acquired, the acquisition price; the amount and terms of the nonstate funds leveraged, and a statement as to whether the state acquisition funds were essential to the leveraging of these other acquisition funds; a description of the expiration date of the project’s rent or sales restrictions; the number of assisted units created or preserved; the amount of state funds required for each assisted unit created or preserved; and the level of affordability maintained. (c) If any borrower sells any property acquired with assistance through these state funds, a description of the name and location of the purchaser, the purchase price, and the total transaction costs. (d) An overall assessment of the effectiveness of these funds as tools in creating and preserving affordable housing. (Amended by Stats. 2012, Ch. 784, Sec. 3. (AB 1951) Effective January 1, 2013.)
  103. 5071.

    ## Health and Safety Code - HSC ## DIVISION 5. SANITATION [4600 - 6127] ( Division 5 enacted by Stats. 1939, Ch. 60. ) ## PART 3. COMMUNITY FACILITIES [4600 - 6127] ( Heading of Part 3 amended by Stats. 1970, Ch. 420. ) ## CHAPTER 5. Sewer Revenue Bonds [4950 - 5072] ( Chapter 5 enacted by Stats. 1939, Ch. 60. ) ## ARTICLE 9. Annexation and Exclusion [5070 - 5072] ( Article 9 added by Stats. 1951, Ch. 629. )

    Verify source ↗

    A territory that has withdrawn from a district and keeps using the works must still pay its pro rata share of the district’s rates and charges for those works.

    ## Health and Safety Code - HSC ## DIVISION 5. SANITATION [4600 - 6127] ( Division 5 enacted by Stats. 1939, Ch. 60. ) ## PART 3. COMMUNITY FACILITIES [4600 - 6127] ( Heading of Part 3 amended by Stats. 1970, Ch. 420. ) ## CHAPTER 5. Sewer Revenue Bonds [4950 - 5072] ( Chapter 5 enacted by Stats. 1939, Ch. 60. ) ## ARTICLE 9. Annexation and Exclusion [5070 - 5072] ( Article 9 added by Stats. 1951, Ch. 629. ) ## 5071. Territory which has been withdrawn from a district which has authorized the issuance of bonds pursuant to this chapter, and which territory continues to use the works, shall remain liable for the payment of its pro rata share of the rates and charges imposed by the district for the use and maintenance of the works. (Added by Stats. 1951, Ch. 629.)
  104. 50710.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. )

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    The Director of Housing and Community Development may contract for migrant worker housing and related services, adopt needed regulations, and make advance payments up to 20% of annual operating costs if contractors have no outstanding prior advance balances.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. ) ## 50710. The Director of Housing and Community Development may contract with school districts, housing authorities, health agencies, and other appropriate local public and private nonprofit agencies, for the procurement, or construction of housing or shelter and to obtain services for migratory agricultural workers in the fields of education and sanitation, to obtain day care services for the children of those workers, and the director may adopt regulations as the director deems necessary in order to provide that housing service. Notwithstanding any other provision of law, contracts made pursuant to this chapter are deemed to be for local assistance. Notwithstanding any other law, the director may provide for advance payments of up to 20 percent of annual operating costs of the migrant farm labor center to contractors, provided that the contractors do not have outstanding advance balances from the prior contract periods. (Amended by Stats. 2017, Ch. 372, Sec. 3. (AB 571) Effective September 29, 2017.)
  105. 50710.1.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. )

    Verify source ↗

    This section lets the department approve higher rents in limited funding situations, but limits certain rent increases, requires reserve funds and reporting, and sets rules for extended occupancy periods.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. ) ## 50710.1. (a) If all the development costs of any migrant farm labor center assisted pursuant to this chapter are provided by federal, state, or local grants, and if inadequate funds are available from any federal, state, or local service to write-down operating costs, the department may approve rents for that center that are in excess of rents charged in other centers assisted by the Office of Migrant Services. However, notwithstanding any other provision of law, commencing with the 2006 growing season, the department shall not increase rents for residents of any facility assisted by the Office of Migrant Services to a level that exceeds 30 percent of the average annualized household incomes of residents of the facility without specific legislative authorization. Prior to approving these rents, the department shall consider the adequacy of evidence presented by the entity operating the center that the rents reimburse actual, reasonable, and necessary costs of operation. (b) At the end of each fiscal year, any entity operating a migrant farm labor center pursuant to this chapter shall establish a capital reserve account comprised of the excess funds provided through the annual operating contract received from the department if the department certifies there is no need to address reasonable general maintenance requirements or repairs, rehabilitation, and replacement needs of the requesting migrant farm labor center which affect the immediate health and safety of residents. The cumulative balance of the reserve account shall not exceed 10 percent of the annual operating funds annually committed to the entity by the department unless authorized by the department, and shall be reported annually to the department. Funds in the reserve account shall be used only for capital improvements such as replacing or repairing structural elements, furniture, fixtures, or equipment of the migrant farm labor center, the replacement or repair of which are reasonably required to preserve the migrant farm labor center. An entity shall first use the available capital reserve funds for required improvements or repairs before requesting additional funding from the department for that use. Withdrawals from the reserve account shall be made only upon the written approval of the department of the amount and nature of expenditures. (c) A migrant farm labor center governed by this chapter may be operated for an extended period prior to or beyond the standard 180-day period, as further provided in paragraph (8) below, after approval by the department, provided that all of the following conditions are satisfied: (1) No additional subsidies provided by the department are used for the operation or administration of the migrant farm center during the extended occupancy period except to the extent that state funds are appropriated or authorized for the purpose of funding all or part of the cost of subsidizing extended occupancy periods. (2) Rents are not to be increased above the rents charged during the standard 180-day occupancy period unless the department finds that an increase is necessary to cover the difference between reasonable operating costs necessary to keep the center open during the extended occupancy period and the amount of state funds available pursuant to paragraph (1) and any contributions from agricultural employers or other federal, local, or private sources. These contributions shall not be used to reduce the amount of state funds that otherwise would be made available to the center to subsidize rents during an extended occupancy period. (3) In no event shall the rent during the extended occupancy period exceed the average daily operating cost of the center, less any subsidy funds available pursuant to paragraph (1) or (2). With respect to an extended occupancy beyond the standard 180-day period, households representing at least 25 percent of the units in the center shall have indicated their desire and intention to remain in residency by signing a petition to the local entity to keep the center open for an extended period at rents that are the same or higher than rents during the regular period of occupancy. Each household shall receive a clear bilingual notice describing the extended occupancy options attached to the lease. The Legislature finds and declares that because the number of residents may be substantially reduced during the extended occupancy period, a rent increase may be necessary to cover operating costs. It is the intent of the Legislature that the public sector, private sector, and farmworkers should each play an important role in ensuring the financial viability of this important source of needed housing. (4) An extended occupancy period is requested by an entity operating the migrant farm labor center and received by the department no earlier than 30 days and no later than 15 days prior to the center’s scheduled opening or closing date. The department shall notify the entity and petitioning residents of the final decision no later than seven days prior to the center’s scheduled opening or closing date. During the extended occupancy period, occupancy shall be limited to migrant farmworkers and their families who resided or intended to reside at a migrant center during the regular period of occupancy. (5) Before approving or denying an early opening or an extension and establishing the rents for the extended occupancy period, both of which shall be within the sole discretion of the department, the department shall take into consideration all of the following factors: (A) The structural and physical condition of the center, including water and sewer pond capacity and the capacity and willingness of the local entity to operate the center during the extended occupancy period. (B) Whether local approvals are required, and whether there are competing demands for the use of the center’s facilities. (C) Whether there is adequate documentation that there is a need for residents of the migrant center to continue work in the area, as confirmed by the local entity. (D) The climate during the extended occupancy period. (E) The amount of subsidy funds available that can be allocated to each center to subsidize rents below the operating costs and the cost of operating each center during the extended occupancy period. (F) The extended occupancy period is deemed necessary for the health and safety of the migrant farmworkers and their families. (G) Other relevant factors affecting the migrant farmworkers and their families and the operation of the centers. (6) The rents collected during the extended occupancy period shall be remitted to the department. However, based on financial records to the satisfaction of the department, the department may reduce the amount to be remitted by an amount it determines the local entity has expended during the extended occupancy period that is not being reimbursed by department funds. (7) The occupancy during the extended occupancy period represents a new tenancy and is not subject to existing and statutory and regulatory limitations governing rents. Prior to the beginning of the extended occupancy period, residents shall be provided at least two days’ advance written notice of any rent increase and of the expected length of the extended occupancy period, including the scheduled date of the beginning of the extended occupancy period and closure of the center. Prior to being eligible for residency during the extended occupancy period, residents shall sign rental documents deemed necessary by the department. (8) Notwithstanding anything to the contrary contained in this section, the standard 180-day occupancy period combined with any extended occupancy periods shall not exceed a cumulative operating period of 275 days in any calendar year. (d) The Legislature finds and declares that variable annual climates and changing agricultural techniques create an inability to accurately predict the end of a harvest season for the purposes of housing migrant farmworkers and their families. Because of these factors, in any part of this state, and in any specific year, one or more migrant farmworker housing centers governed by this chapter need to open early or remain open up to a total of 275 days to allow the residents to provide critical assistance to growers in harvesting crops while also fulfilling work expectations that encouraged them to migrate to the areas of the centers. In addition, if the centers close prematurely or open late, the migrant farmworkers often must remain or reside in the areas to work. During this time they will not be able to obtain decent, safe, and affordable housing and the health and safety of their families and the surrounding community will be threatened. The Legislature therefore finds and declares that, for the purposes of any public or private right, obligation, or authorization related to the use of property and improvements thereon as a 180-day migrant center, an extended use of any housing center governed by this chapter pursuant to this section is deemed to be the same as the 180-day use generally authorized by this chapter. (e) Because of the presumed income levels of the occupants of migrant farm labor centers, an entity operating a migrant farm labor center shall be deemed eligible for the California Alternative Rates for Energy program established pursuant to Sections 382 and 739.1 of the Public Utilities Code. Any savings from a reduction in energy rates shall be passed on to the occupants of the migrant farm labor center. (Amended by Stats. 2018, Ch. 999, Sec. 1. (AB 2887) Effective January 1, 2019.)
  106. 50710.2.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. )

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    The department must allow an operating-contract entity to use a flexible opening date when the listed yearly conditions are met.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. ) ## 50710.2. The department shall allow, in an operating contract, the entity operating the contract to have flexibility in its opening date if needed to adjust for variable seasonal or climate changes if all of the following occur every operating year: (a) A majority of the residents council, at the last meeting of the operating period, vote in favor of having a flexible opening date rather than a set opening date. (b) The residents council, at the last meeting of the operating period, determines the amount of notice required before an opening date and the method of outreach to residents. (c) The entity operating the migrant center outlines how the flexible opening date will interact with the admission priorities of the center. (d) There are no competing demands for use of the center. (e) At least 25 percent of the units will be occupied upon opening. (Added by Stats. 2018, Ch. 999, Sec. 2. (AB 2887) Effective January 1, 2019.)
  107. 50710.3.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. )

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    The department must gather stakeholder feedback by January 1, 2026 on updating the definition of “migratory agricultural worker,” including distance from residence.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. ) ## 50710.3. (a) By January 1, 2026, the department shall engage and solicit feedback from stakeholders on the definition of “migratory agricultural worker” for the purposes of updating the definition, including distance from residence. (b) Stakeholders shall include, but not be limited to, all of the following: (1) Representatives from all 24 Office of Migrant Services centers. (2) Wherever feasible, the children or dependents of current and former Office of Migrant Services center residents. (3) The Office of Migrant Services. (4) Qualified interpreters, promotoras, or promotores with demonstrated experience with legal terminology in both Spanish and English. (5) Housing authorities or operators acting as property managers, also known as camperos. (6) The Office of the Speaker of the Assembly. (7) The Migrant Education Program. (8) K-12 schools serving the children of current and former migratory farmworker residents. (Added by Stats. 2024, Ch. 523, Sec. 2. (AB 2240) Effective January 1, 2025.)
  108. 50710.4.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. )

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    The department may make multiyear operating contracts with entities and give annual funding through contract amendments. The director must review annual report data when assessing resident needs and improvements. The section cannot be read to allow an operating period longer than what this chapter authorizes.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. ) ## 50710.4. (a) The department may enter into multiyear operating contracts with entities, and provide funding annually by making an amendment to that contract. (b) The director shall consider the data contained in the annual reports, pursuant to Section 50717, to determine the needs of the residents served at the migrant farm labor centers and how to better serve those needs in operating contracts and annual amendments. (c) This section shall not be interpreted to allow an operating period to exceed a term that is otherwise authorized by this chapter. (Added by Stats. 2018, Ch. 999, Sec. 3. (AB 2887) Effective January 1, 2019.)
  109. 50710.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. )

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    Certain housing authority personnel are not civilly liable for specified lead-paint injuries, and housing authorities must promptly notify the department if sued over such injuries.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. ) ## 50710.5. (a) Notwithstanding any other provision of law, no housing authority, housing authority commissioner, housing authority officer, or housing authority employee, acting in good faith, shall be civilly liable for any injury caused by the presence of lead-based paint, prior to January 1, 1989, in or upon any housing units or related facilities owned by an agency of the state and operated by the housing authority pursuant to a contract authorized by Section 50710 by and between the housing authority and the department. (b) Subdivision (a) does not, however, limit or expand any liability which the state or the United States may have under other laws on account of an injury specified in this subdivision. (c) Subdivision (a) does not limit or expand any liability which arose prior to January 1, 1988. (d) Any housing authority made a defendant in a civil action alleging civil liability on account of any alleged injury specified in subdivision (a), including injuries for which liability may exist under subdivision (c), shall immediately notify the department thereof and may request the state to provide legal representation to defend the housing authority in the litigation. In the event the Attorney General fails to provide legal representation pursuant to the housing authority’s request, the department shall indemnify the housing authority for reasonable attorney fees and costs incurred by the housing authority to defend the lawsuit. (e) Notwithstanding any other provision of law, any contract let by a housing authority to determine the existence of, or mitigate, potential health hazards which existed as of April 1, 1988, and caused by lead-based paint in or upon housing units and facilities specified in subdivision (a), shall not be subject to competitive bidding requirements. (Added by Stats. 1988, Ch. 112, Sec. 1. Effective May 24, 1988.)
  110. 50710.6.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. )

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    The department must prepare, submit, and publish a report on turning migrant services housing units into year-round housing.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. ) ## 50710.6. (a) (1) The department shall develop a report that analyzes the feasibility and impact of transitioning housing units at Office of Migrant Services centers to year-round availability. (2) In developing the report required by this subdivision, the department may appoint a third-party consultant to facilitate a comprehensive report, pursuant to subdivision (b). (3) In developing the report required by this subdivision, the department shall engage and solicit feedback from the stakeholders listed in Section 50710.3. (b) By July 1, 2027, the department shall submit the report and recommendations to the Assembly Committee on Housing and Community Development and the Senate Committee on Housing. The report shall include: (1) The quantity of housing units at each center, with each housing unit individually identified, that could be made available year round without any rehabilitation or improvements. (2) The quantity of housing units at each center, with each housing unit individually identified, that require upgrades to be made available year round, including a description of upgrades needed by unit at each center that includes scope of work and cost estimates. (3) (A) A description of the order in which units may be renovated. (B) A plan to ensure that no center shuts down more than 30 percent of units during the regular operating season when planning for improvements. (C) Direction on planning for upgrades during academic breaks, or whenever feasible throughout the year. (4) Information about the regional K–12 schools’ academic calendars to assist with planning upgrades during academic breaks necessary. (5) Information on the infrastructure that serves the migrant farm labor centers, including wastewater systems, water systems, stormwater systems, drainage systems, electrical systems, and gas or propane systems. Information shall include the current capacity of the systems and cost estimates to expand the infrastructure to allow for year-round housing. (6) (A) Assessment of the initial capital needed to convert centers to year-round housing. (B) The amount of Office of Migrant Services operating and capital subsidy for each center based on an 180-day occupancy period. (C) The amount of Office of Migrant Services ongoing operating and capital subsidy for each center needed to operate year round. (D) Identification of impediments to converting a center to year-round housing, including federal occupancy requirements to serve migratory farmworkers, fee owner lease requirements to serve migratory farmworkers, or lack of water rights that would need to be negotiated and established with fee owners. (7) Demographic information about migrant farmworker families served through the Office of Migrant Services. (8) Identification of assessments that document the demand for migrant and year-round farmworker housing. (9) Fiscal impacts, including rent increases, and other impacts to migrant farmworkers and their families from converting the centers to year-round housing and strategies to reduce negative impacts, including other housing solutions. (10) Current and projected housing needs for migrant farmworkers and their families surrounding each center. (11) Analysis and identification of alternative solutions to addressing farmworker housing beyond conversion of centers to year-round farmworker housing. (c) The department shall publish and make available to the public on its internet website the report created pursuant to this section. (d) (1) The report to be submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code. (2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2031. (Added by Stats. 2024, Ch. 523, Sec. 3. (AB 2240) Effective January 1, 2025. Repeal operative January 1, 2031, by its own provisions.)
  111. 50710.7.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. )

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    The department must work with other agencies to identify available excess sites near migrant farm labor centers by December 31, 2028, and then prioritize those locations for permanent farmworker housing.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. ) ## 50710.7. (a) By December 31, 2028, the department shall, following the completion of the report under Section 50710.6, coordinate with the Department of General Services and the Department of Food and Agriculture to identify available excess sites in proximity to migrant farm labor centers. For the purposes of this section, “available excess sites” refers to those sites identified pursuant to Section 14684.3 of the Government Code. (b) The department shall, in collaboration with the Department of General Services, the California Housing Finance Agency, and the Department of Food and Agriculture, prioritize the locations identified in subdivision (a) for the development of permanent farmworker housing, with the highest prioritization to the areas with the greatest need for permanent farmworker housing, as identified in the report under Section 50710.6. (Amended by Stats. 2025, Ch. 203, Sec. 6. (AB 1529) Effective January 1, 2026.)
  112. 50710.8.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. )

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    This section requires migrant farm labor centers to meet health, safety, and habitability standards, be inspected annually, and limits who may be housed there.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. ) ## 50710.8. (a) All communications to migratory farmworkers from the department and the entity operating a migrant farm labor center shall be delivered in culturally and linguistically appropriate means. Whenever feasible, entities operating a migrant farm labor center shall collaborate with promotoras or trusted messengers to disseminate relevant information to migratory farmworkers. (b) (1) The entity operating a migrant farm labor center shall ensure that each housing unit complies with all applicable local health and safety laws and is habitable with regard to cooling, clean water, sewer pond, garbage, and other systems necessary for the health and safety of the occupants. (2) The department shall conduct an annual inspection of each migrant farm labor center to determine whether health, safety, and infrastructure standards are properly met. (c) The entity operating a migrant farm labor center shall not condition residency on the willingness of a potential tenant to occupy a unit year round or preference year-round residents over residents wishing to rent a unit for any length of stay less than one year. (d) A migratory farmworker, including the immediate family and dependents residing in the same housing unit, with at least one schoolage child, may be exempted from the requirement to have resided outside a 50-mile radius of the migrant farm labor center for the purposes of eligibility to reside in an Office of Migrant Services housing unit. The migratory farmworker shall, upon enrollment, provide to the migrant farm labor center proof of enrollment of their child or children in the local school district for grades K–12. (e) (1) A migratory farmworker who has entered into a prior residential tenancy agreement for housing at a migrant farm labor center shall be eligible for an interview pass for an available unit upon returning to that center for housing following a break in occupancy. (2) Wherever feasible, a migrant farm labor center shall offer to a migratory farmworker the option to return to the same unit in which they previously resided, provided that the farmworker’s household continues to meet the occupancy standards for the unit. (f) Except for families and dependents of migratory farmworkers residing in the same unit, the entity operating a migrant farm labor center shall not rent a housing unit to a person who is not a migratory farmworker. (Added by Stats. 2024, Ch. 523, Sec. 5. (AB 2240) Effective January 1, 2025.)
  113. 50711.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. )

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    The Director of Housing and Community Development has possession and control of certain records and papers previously held by the Director of Employment Development.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. ) ## 50711. The Director of Housing and Community Development shall have possession and control of all records and papers held previously by the Director of Employment Development relating to the purposes and activities of Section 7100 of the Government Code as it read prior to January 1, 1982. (Added by Stats. 1981, Ch. 1165.)
  114. 50711.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. )

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    This section creates the Napa County Farmworker Centers Account and sets rules for county funding, annual matching grants, and use of the money.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. ) ## 50711.5. (a) The Napa County Farmworker Centers Account is hereby established, to be administered by the Department of Housing and Community Development, through its Office of Migrant Services pursuant to the authority granted in Sections 50406 and 50710, to assist in the financing, maintenance, and operation of the Napa County Housing Authority’s Farmworker Centers for year-round use by migrant or nonmigrant farm labor employees. The Napa County Housing Authority shall continue to own and operate the farmworker centers pursuant to the local ordinances, regulations, or bylaws currently applicable thereto. (b) The department shall award, annually, up to two hundred fifty thousand dollars ($250,000) in matching funds, pursuant to this section, to the Napa County Housing Authority upon demonstration that the Napa County Housing Authority is capable of continuing to effectively serve the housing needs of migrant or other farmworkers in Napa County. To be eligible for funding, the Napa County Housing Authority shall provide equal or greater funds from local sources to support financing, maintenance, and operations of the housing assisted under this section. The Napa County Housing Authority shall also demonstrate its capability, upon receiving the funds awarded pursuant to this section, of ensuring the fiscal integrity of the farmworker centers and maintaining the project in a decent, safe, and sanitary manner for at least 25 years. (c) The year-round use provided for in subdivision (a) for farmworker centers may be interrupted, as necessary, to close the housing for maintenance purposes, to allow new migrant farmworkers to obtain housing, or for any other purpose the Napa County Housing Authority deems necessary. (d) The department shall use funds allocated from the Building Homes and Jobs Trust Fund pursuant to clause (ii) of subparagraph (C) of paragraph (2) of subdivision (b) of Section 50470, as provided by Senate Bill 2 of the 2017–18 Regular Session, if that bill is enacted. If Senate Bill 2 of the 2017–18 Regular Session is not enacted, this section shall be inoperative until a funding source is identified. Funds made available pursuant to this subdivision may be used for the costs permitted by or pursuant to subdivisions (b) to (e), inclusive, of Section 50712.5. For purposes of soliciting and awarding funds pursuant to this section, the department shall not be required to promulgate regulations. (Added by Stats. 2017, Ch. 469, Sec. 1. (AB 317) Effective January 1, 2018.)
  115. 50712.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. )

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    County, city, and other local agencies may enter into certain contracts if they are already authorized by law to do the activity involved.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. ) ## 50712. Any county, city, or other local agency may enter into contracts of the nature described in Section 50710, to the extent that such an agency is otherwise authorized by law to engage in the activity which it contracts to undertake. (Added by Stats. 1981, Ch. 1165.)
  116. 50712.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. )

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    The department must help develop and support migrant farm labor centers, and it may fund and authorize dormitory-style housing in some cases.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. ) ## 50712.5. (a) The Department of Housing and Community Development, through its Office of Migrant Services, pursuant to the authority granted in subdivision (n) of Section 50406 and this chapter shall assist in the development, construction, reconstruction, rehabilitation, or operation of migrant farm labor centers. The department shall encourage and assist in the development of family units, or dormitory-style units, as may be appropriate, in migrant farm labor centers in any county or counties where there is a substantial unmet need for migrant farmworker housing. It is the intent of the Legislature in permitting the development of dormitory-style housing that family households not be mixed with single person households unless the contractor or sponsor can make reasonable accommodations to provide separate living and sleeping areas in the dormitory to those family households. (b) The department may use funds appropriated for the purposes of the Office of Migrant Services to maximize the utility of any other local, federal, state, or private funds or other assistance made available for the purposes of this section. These appropriated funds may be used for costs including, but not limited to, the following items: (1) Predevelopment costs incurred in the process of securing construction or long-term financing site acquisition development, architectural, engineering, or legal expenses, or construction costs, including construction interest, or both. These costs shall not be subject to reimbursement from construction or permanent financing, as the case may be, if the reimbursement would contribute to, or result in, rents substantially in excess of those in other migrant farm labor centers assisted by the Office of Migrant Services, as determined by the department. (2) A grant or deferred payment loan for acquisition, development, and related infrastructure costs, including construction, reconstruction, rehabilitation, or operation, which may be forgiven, matching or supplementing the permanent financing or grant made available by a federal, state, or local housing assistance program. (3) Operating cost reductions to the extent necessary to ensure that the rents in the migrant farm center are not substantially in excess of those in other migrant farm labor centers operated by the Office of Migrant Services. (c) The department shall seek the maximum possible contribution of funds, land, and other incentives from local, federal, state, and private sources for all the purposes described in subdivision (b). Funds transferred pursuant to Part 8 (commencing with Section 53130) shall not be used in a manner inconsistent with this part. Migrant farm labor centers shall be eligible for energy conservation assistance, including the assistance provided in programs established pursuant to Section 381 of the Public Utilities Code and administered either by a utility or a local or other entity. In the funding and evaluation of energy conservation assistance pursuant to this section, the California Public Utilities Commission shall consider improvements in habitability and the need to bring migrant housing up to adequate standards of comfort through energy efficient mechanical and lighting systems. (d) To the extent that any migrant farm labor center assisted pursuant to this section is financed or otherwise assisted by the United States Farmers Home Administration, and to the extent the Farmers Home Administration requires compliance with construction, operating, term of use, or residency standards which differ from those required by the department pursuant to regulations adopted to implement and interpret this chapter, those Farmers Home Administration standards shall supersede the department’s regulations. (e) The Office of Migrant Services may authorize the use of dormitory-style housing in a migrant farm labor center. (Amended by Stats. 2004, Ch. 671, Sec. 3. Effective January 1, 2005.)
  117. 50713.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. )

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    The department may use necessary instruments to help procure or develop housing or shelter for migratory agricultural workers.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. ) ## 50713. For the purposes of procuring or developing housing or shelter for migratory agricultural workers pursuant to this chapter, the department may execute instruments necessary or convenient for the exercise of its powers and functions, including, but not limited to, pledges, encumbrances, transfers, or assignments of leaseholds of any real or personal property necessary for the procurement or development of the housing or shelter. (Added by Stats. 1985, Ch. 986, Sec. 1. Effective September 26, 1985.)
  118. 50714.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. )

    Verify source ↗

    This section creates the San Diego County Farmworker Housing Account and requires the department to administer it, fund eligible projects, and apply specific conditions for project sponsors and the housing they develop.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. ) ## 50714. (a) The San Diego County Farmworker Housing Account is hereby established, to be administered by the Department of Housing and Community Development, through its Office of Migrant Services pursuant to the authority granted in Sections 50406 and 50710, to assist in the financing, development, and operation of up to 500 family housing units for year-round use by migrant or nonmigrant farm labor employees and their families. The sponsor shall seek federal, state, and local financial and in-kind assistance in the development of this housing, but the lack of that assistance shall not be a prerequisite for obtaining financing under this section for the development and operation of family housing units. (b) The department shall ensure that the housing is operated on the same basis as other state-financed housing assisted pursuant to this chapter, except that there shall be no limitation set on the term of tenancy if the project is operated for nonmigrant farmworkers. (c) The department shall award funds pursuant to this section to project sponsors who demonstrate that they are capable of effectively serving the housing needs of migrant or other farmworkers in San Diego County. The year-round use required by subdivision (a) for migrant centers may be interrupted as necessary to close the housing for maintenance purposes and to allow new migrant farmworker families to obtain housing. The project sponsor shall also demonstrate his or her capability of ensuring the project’s fiscal integrity and maintaining the project in a decent, safe, and sanitary manner for at least 25 years. (d) The department shall use funds appropriated by the Legislature for purposes of this section. The appropriated funds may be used for the costs permitted by, or pursuant to, subdivisions (b) to (e), inclusive, of Section 50712.5. For purposes of soliciting and awarding funds pursuant to this section, the department is not required to promulgate regulations. (e) To be eligible for funding, a project sponsor shall make a contribution to the housing assisted under this section. However, if the housing sponsor can demonstrate that it does not have the capability to make that contribution, no contribution shall be required. A contribution, for purposes of this subdivision, may be in the form of a writedown of land costs, fee waiver, direct equivalent financial contribution, or any other incentives of financial value. (f) The department shall accept proposals from project sponsors commencing November 15, 1989, and until all funds reappropriated for the purpose of this section are awarded. The department shall award grants to project sponsors commencing September 1, 1990. (Amended by Stats. 1990, Ch. 1509, Sec. 2. Effective September 30, 1990.)
  119. 50714.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. )

    Verify source ↗

    This section creates a farmworker housing account and lets the director use it for housing projects in San Diego County, with conditions for recipients and reporting rules for sponsors.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. ) ## 50714.5. (a) (1) The Director’s San Diego County Farmworker Housing Discretionary Account is hereby established in the Office of Migrant Services in the department. The director may make loans or grants from this account for innovative farmworker housing projects providing housing for migrant or nonmigrant farmworkers in San Diego County. There shall be no maximum limitation set on the term of tenancy if the project is operated for farmworkers. (2) All grants or loans from the account shall be made to local public entities or private community-based nonprofit agencies which agree to both of the following: (A) To own and operate the farmworker housing project for at least 10 years from the date funds are first advanced to the sponsor under the grant or loan. (B) To provide and operate the project in compliance with statutes or regulations applicable to rent in state-owned migrant farm labor centers assisted by the Office of Migrant Services and in compliance with the habitability, licensing, and inspection requirements of the Employee Housing Act (Part 1 (commencing with Section 17000) of Division 13). (3) If the department finds that the sponsor of a project to which funds have been granted under this section has violated either or both of the terms of paragraph (2), the grant shall be deemed a loan and the sponsor shall be liable to the account for repayment of the amount granted, plus interest, in accordance with paragraph (4) or (5). (4) If the department finds that the sponsor of a project to which funds have been loaned under this section, or a sponsor of a project to which funds have been granted under this section and to whom or to which paragraph (3) is applicable, has violated either or both of the terms of paragraph (2), the sponsor shall be liable to the account for repayment of the amount granted or loaned, plus interest, in accordance with the following: (A) If the department finds that the violation of either or both of the terms of paragraph (2) has occurred before the date on which six years will have elapsed from the date funds were first advanced to the sponsor under the grant or loan, the sponsor shall be liable to the account for repayment of the full amount of the grant or the full amount of the outstanding balance of the loan, plus interest thereon at the rate of 9 percent per year. (B) If the department finds that the violation of either or both of the terms of paragraph (2) has occurred on or after the date on which six years will have elapsed, but before the date on which seven years will have elapsed, from the date funds were first advanced to the sponsor under the grant or loan, the sponsor shall be liable to the account for repayment of 80 percent of the amount of the grant or 80 percent of the outstanding balance of the loan, plus interest thereon at the rate of 9 percent per year. (C) If the department finds that the violation of either or both of the terms of paragraph (2) has occurred on or after the date on which seven years will have elapsed, but before the date on which eight years will have elapsed, from the date funds were first advanced to the sponsor under the grant or loan, the sponsor shall be liable to the account for repayment of 60 percent of the amount of the grant or 60 percent of the outstanding balance of the loan, plus interest thereon at the rate of 9 percent per year. (D) If the department finds that the violation of either or both of the terms of paragraph (2) has occurred on or after the date on which eight years will have elapsed, but before the date on which nine years will have elapsed, from the date funds were first advanced to the sponsor under the grant or loan, the sponsor shall be liable to the account for repayment of 40 percent of the amount of the grant or 40 percent of the outstanding balance of the loan, plus interest thereon at the rate of 9 percent per year. (E) If the department finds that the violation of either or both of the terms of paragraph (2) has occurred on or after the date on which nine years will have elapsed, but before the date on which 10 years will have elapsed, from the date funds were first advanced to the sponsor under the grant or loan, the sponsor shall be liable to the account for repayment of 20 percent of the amount of the grant or 20 percent of the outstanding balance of the loan, plus interest thereon at the rate of 9 percent per year. (5) Notwithstanding paragraph (4), when the sponsor of a project to which funds have been granted or loaned under this section has agreed to own and operate the farmworker housing project for 11 or more years from the date funds are first advanced to the sponsor under the grant or loan, and the department finds that a violation of either or both of the terms of paragraph (2) has occurred at any time after the funds have been advanced to the sponsor, the sponsor shall be liable to the account for repayment of a principal amount, and interest thereon, to be determined in the discretion of the director. The principal amount repaid pursuant to this paragraph shall not exceed the amount actually loaned or granted to the sponsor, and the interest shall not exceed the rate of 9 percent per year. (6) On or before October 1 of each year, the sponsor of a project to which funds are granted or loaned under this section shall submit to the department a written report that includes sufficient information on occupancy, income, and maintenance levels to enable the department to assess whether the sponsor is complying with the terms and conditions of the program and this chapter. (7) In selecting sponsors, the director may make awards for projects serving the needs of single farmworkers, but preference shall be given to those projects primarily serving families. Funds may be used under this section for farmworker housing on either a permanent foundation or nonpermanent foundation, including manufactured housing or mobilehomes. (b) The department shall use funds appropriated by the Legislature for purposes of this section to maximize the utility of any other local, federal, state, or private funds or other assistance made available for the purposes of this section. For purposes of soliciting and awarding funds pursuant to this section, the department is not required to promulgate regulations. (c) To be eligible for funding, a project sponsor shall make a contribution to the housing assisted under this section. However, if the housing sponsor can demonstrate that it does not have the capability to make that contribution, no contribution shall be required. A contribution, for purposes of this subdivision, may be in the form of a write down of land costs, fee waiver, direct equivalent financial contribution, or any other incentives of financial value. (d) For purposes of this section, “account” means the Director’s San Diego County Farmworker Housing Discretionary Account. (Amended by Stats. 1992, Ch. 604, Sec. 1. Effective September 9, 1992.)
  120. 50715.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. )

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    Certain housing under this chapter may be used as emergency shelter only in winter months, and funds and contracts are restricted after January 1, 2020.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. ) ## 50715. (a) Housing operated pursuant to this chapter may be used for the purposes set forth in Chapter 11.5 (commencing with Section 50800), provided that no funds appropriated for the purposes of this chapter shall be used for the operation or administration of this housing as emergency shelter pursuant to Chapter 11.5, and provided further that this housing may be made available as emergency shelter pursuant to Chapter 11.5 only during the months of November to March, inclusive. (b) (1) Notwithstanding any other provision of this chapter, except as provided in paragraph (2), housing operated pursuant to this chapter shall not include any housing that is rented, sold, or subleased to an agricultural employer, as defined in Section 1140.4 of the Labor Code, or its agent, or a farm labor contractor, as defined in Section 1682 of the Labor Code, or its agent, who employs at least one H-2A worker as defined in 50205, until the expiration of the regulatory agreement or affordability covenant, as applicable. The department or a city, county, or other local agency shall not enter into any contract pursuant to Section 50710 or 50712, respectively, or provide any financial assistance under this chapter on or after January 1, 2020. A person or entity who receives financial assistance under this chapter on or after January 1, 2020, and expends any of those funds for any housing that is rented, sold, or subleased to an agricultural employer, as defined in Section 1140.4 of the Labor Code, or its agent, or a farm labor contractor, as defined in Section 1682 of the Labor Code, or its agent, who employs at least one H-2A worker, as defined in Section 50205, until the expiration of the regulatory agreement or affordability covenant, as applicable, shall reimburse the department as provided in paragraph (2) of subdivision (b) of Section 50205. (2) This subdivision shall not apply to any contract entered into or any financial assistance provided pursuant to this chapter prior to January 1, 2020. (3) A person or entity who receives funds under this chapter on and after January 1, 2020, and expends any of those funds for the purpose of funding predevelopment of, developing, or operating any housing shall submit a declaration to the department declaring the following: (A) (i) The person or entity is not an agricultural employer, as defined in Section 1140.4 of the Labor Code, or its agent, or a farm labor contractor, as defined in Section 1682 of the Labor Code, or its agent, who employs at least one H-2A worker, as defined in Section 50205. (ii) The person or entity will not rent, sell, or sublease any housing funded pursuant to this chapter to an agricultural employer, as defined in Section 1140.4 of the Labor Code, or its agent, or a farm labor contractor, as defined in Section 1682 of the Labor Code, or its agent, who employs at least one H-2A worker, as defined in Section 50205, until the expiration of the regulatory agreement or affordability covenant, as applicable. (B) The declaration described in subparagraph (A) can be met through the inclusion in a regulatory agreement, contract, or affordability covenant, as applicable, with the department that is signed by the person or entity receiving funds pursuant to this chapter. (Amended by Stats. 2020, Ch. 264, Sec. 18. (AB 107) Effective September 29, 2020.)
  121. 50716.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. )

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    The department must make Office of Migrant Services centers available for rent to qualifying persons and families, and it may adopt guidelines to carry out the section.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. ) ## 50716. (a) Notwithstanding any other law, to respond to the state of emergency proclaimed by the Governor on January 17, 2014, the department shall, directly or through contracts, make the Office of Migrant Services centers available for rent by persons or families experiencing economic hardships or rendered homeless or at risk of becoming homeless as a result of the drought. This may include, but is not limited to, extending the period of occupancy prior to or beyond the standard 180-day period and redefining persons and families eligible to occupy the centers. To the extent feasible, the department shall give preference to persons and families that meet existing program criteria. (b) The department may adopt program guidelines to implement this section. Any rule, policy, or standard of general application employed by the department in implementing the provisions of this section shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (Amended by Stats. 2015, Ch. 25, Sec. 40. (SB 84) Effective June 24, 2015.)
  122. 50717.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. )

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    A migrant farm labor center operator must file an annual report with the Office of Migrant Services, and the report must be aggregate and anonymous. The Migrant Education Program must also share certain student-registration information with the Department of Housing and Community Development.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. ) ## 50717. (a) On or before January 1, 2019, and on or before January 1 of each year thereafter, an entity operating a migrant farm labor center shall provide a report to the Office of Migrant Services that contains the data specified in subdivision (b) about the agricultural workers that resided at the migrant farm labor center during the most recently concluded contract period. This data shall be reported in an aggregate, anonymous format, without any individual identifiable information. (b) The report shall include the following information: (1) Where the migratory agricultural workers are migrating from. (2) Household incomes. (3) Race or ethnicity of members of each household. (4) Genders of the members of each household. (5) (A) Number of schoolaged children, including number of participants in the Migrant Education Program, and the number of residents enrolled in K–12 programs. (B) Information regarding the intended schooling for the children once the migrant farm labor center closes. (6) Where members of the household reside when not in the migrant farm labor center and whether they own or rent. (7) If members of households are elderly or disabled. (8) If the migrant farm labor center has an approved proposal allowing for an exemption pursuant to subparagraph (A) of paragraph (1) of subdivision (b) of Section 50710.3, the number and percentage of units allocated to nonmigrant agricultural workers, and the number of children enrolled in the local school district, grades K–12. (c) The Migrant Education Program shall share information with the Department of Housing and Community Development regarding the number of students utilizing a migrant farm labor center address to register, as recorded in the State’s Migrant Education Program database. This information shall be reported in an aggregate, anonymous format, without any individual identifiable information. (Added by Stats. 2018, Ch. 48, Sec. 6. (SB 850) Effective June 27, 2018.)
  123. 50718.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. )

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    A migrant farm labor center operator must screen applicants for eligibility and ask whether they want to occupy a unit in certain funded properties. The department may give admission priority to eligible migrant farmworkers meeting the listed housing-history condition.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.5. Special Housing Program for Migratory Workers [50710 - 50718] ( Chapter 8.5 added by Stats. 1981, Ch. 1165. ) ## 50718. (a) An entity operating a migrant farm labor center shall prescreen Office of Migrant Services program applicants for eligibility in farmworker-restricted units on properties funded by the Joe Serna, Jr. Farmworker Housing Grant Program (Chapter 3.2 (commencing with Section 50515.2)). The entity operating a migrant farm labor center shall also determine if the applicant desires to occupy a unit in those properties. (b) The department may prioritize admission in farmworker-restricted units in properties funded by the Joe Serna, Jr. Farmworker Housing Grant Program (Chapter 3.2 (commencing with Section 50515.2)) for eligible migrant farmworkers that occupy a housing unit, or occupied a housing unit within the preceding 36 months, at an Office of Migrant Services center. (Added by Stats. 2024, Ch. 523, Sec. 6. (AB 2240) Effective January 1, 2025.)
  124. 5072.

    ## Health and Safety Code - HSC ## DIVISION 5. SANITATION [4600 - 6127] ( Division 5 enacted by Stats. 1939, Ch. 60. ) ## PART 3. COMMUNITY FACILITIES [4600 - 6127] ( Heading of Part 3 amended by Stats. 1970, Ch. 420. ) ## CHAPTER 5. Sewer Revenue Bonds [4950 - 5072] ( Chapter 5 enacted by Stats. 1939, Ch. 60. ) ## ARTICLE 9. Annexation and Exclusion [5070 - 5072] ( Article 9 added by Stats. 1951, Ch. 629. )

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    A city with annexed territory that still uses the works may contract with the district to make annual or other periodic payments instead of having owners or residents pay the district’s rates and charges.

    ## Health and Safety Code - HSC ## DIVISION 5. SANITATION [4600 - 6127] ( Division 5 enacted by Stats. 1939, Ch. 60. ) ## PART 3. COMMUNITY FACILITIES [4600 - 6127] ( Heading of Part 3 amended by Stats. 1970, Ch. 420. ) ## CHAPTER 5. Sewer Revenue Bonds [4950 - 5072] ( Chapter 5 enacted by Stats. 1939, Ch. 60. ) ## ARTICLE 9. Annexation and Exclusion [5070 - 5072] ( Article 9 added by Stats. 1951, Ch. 629. ) ## 5072. A city to which any territory has been annexed, whether or not said territory has been withdrawn from a district which has authorized the issuance of bonds pursuant to this chapter, and which territory continues to use the works, may contract with the district to pay the district annually or at lesser intervals a sum or sums in lieu of the payment by the owners or residents within said territory of the rates and charges imposed by the district for the use and maintenance of the works. (Added by Stats. 1951, Ch. 629.)
  125. 50720.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.6. Foreclosure Intervention Housing Preservation Program [50720 - 50720.12] ( Chapter 8.6 added by Stats. 2021, Ch. 111, Sec. 23. )

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    Creates the Foreclosure Intervention Housing Preservation Program, administered by the department, to preserve affordable housing and support resident or nonprofit ownership of residential property.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.6. Foreclosure Intervention Housing Preservation Program [50720 - 50720.12] ( Chapter 8.6 added by Stats. 2021, Ch. 111, Sec. 23. ) ## 50720. The Foreclosure Intervention Housing Preservation Program is hereby created for the purpose of preserving affordable housing and promoting resident ownership or nonprofit organization ownership of residential real property. The program shall be administered by the department and shall provide loans and grants as described in this chapter. (Added by Stats. 2021, Ch. 111, Sec. 23. (AB 140) Effective July 19, 2021.)
  126. 50720.10.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.6. Foreclosure Intervention Housing Preservation Program [50720 - 50720.12] ( Chapter 8.6 added by Stats. 2021, Ch. 111, Sec. 23. )

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    A loan made under the program may be partially or fully converted to a grant.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.6. Foreclosure Intervention Housing Preservation Program [50720 - 50720.12] ( Chapter 8.6 added by Stats. 2021, Ch. 111, Sec. 23. ) ## 50720.10. A loan made pursuant to the program may be partially or fully converted to a grant. (Added by Stats. 2021, Ch. 111, Sec. 23. (AB 140) Effective July 19, 2021.)
  127. 50720.12.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.6. Foreclosure Intervention Housing Preservation Program [50720 - 50720.12] ( Chapter 8.6 added by Stats. 2021, Ch. 111, Sec. 23. )

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    The department must adopt program guidelines and may include borrower procedures for converting part or all of a loan into a grant.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.6. Foreclosure Intervention Housing Preservation Program [50720 - 50720.12] ( Chapter 8.6 added by Stats. 2021, Ch. 111, Sec. 23. ) ## 50720.12. (a) The department shall adopt guidelines for the administration of the program. The guidelines shall comply with all of the following: (1) The guidelines shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (2) The guidelines shall not be subject to the requirements of Chapter 8.3 (commencing with Section 50705) of Part 2 of Division 31. (3) The guidelines shall ensure that loan interest rates on loans made pursuant to the program are no higher than those of other loan programs for affordable housing overseen by the department. (4) The guidelines shall ensure that a loan made pursuant to the program can be obtained within the timeline necessary for an eligible bidder in a trustee’s sale pursuant to Section 2924m of the Civil Code to successfully acquire real property using a loan from the program. (5) The guidelines shall ensure, to the extent possible, geographic equity in allocating funding across the state. (b) The department may include in the guidelines reasonable procedures for a borrower to apply for all or a portion of its loan to be converted to a grant and to verify eligibility for such a conversion pursuant to this section. (Added by Stats. 2021, Ch. 111, Sec. 23. (AB 140) Effective July 19, 2021.)
  128. 50720.2.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.6. Foreclosure Intervention Housing Preservation Program [50720 - 50720.12] ( Chapter 8.6 added by Stats. 2021, Ch. 111, Sec. 23. )

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    The department must run the Foreclosure Intervention Housing Preservation Program and report to legislative budget chairs by May 15, 2023; fund managers must keep program repayments in reuse accounts and use them for the program.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.6. Foreclosure Intervention Housing Preservation Program [50720 - 50720.12] ( Chapter 8.6 added by Stats. 2021, Ch. 111, Sec. 23. ) ## 50720.2. (a) The Foreclosure Intervention Housing Preservation Program is hereby established. The department shall administer the program for the purpose of preserving affordable housing and promoting resident ownership or nonprofit organization ownership of residential real property. (b) (1) Upon appropriation by the Legislature, the program shall be administered by the department to provide loans and grants to eligible borrowers to support the acquisition of 1 to 25 unit properties meeting any of the following criteria: (A) Real property subject to a trustee’s sale pursuant to Section 2924m of the Civil Code wherein an eligible bidder has made a bid or represents an intention to bid using funds from the program. (B) Real property subject to a preforeclosure intervention sale. (C) Real property subject to a foreclosure risk intervention sale. (D) Real property subject to a recorded notice of default. (2) Eligible borrowers shall be any one of the following: (A) Eligible bidders in Section 2924m of the Civil Code other than “prospective owner-occupants” as defined in paragraph (1) of subdivision (a) of Section 2924m of the Civil Code. (B) An organization whose primary activity is the development and preservation of affordable housing that is at least one of the following: (i) An incorporated nonprofit organization as described in Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. Sec. 501(c)(3)) that is exempt from taxation under Section 501(a) of that code (26 U.S.C. Sec. 501(a)). (ii) A nonprofit corporation as that term is defined in Section 50091. (C) A limited liability company that satisfies both of the following criteria: (i) A community land trust holds a controlling interest in the company. (ii) A community land trust is the managing member of the company. (3) Up to 20 percent of the funds appropriated for this program may be expended for the costs to administer the program. Costs to administer the program include, but are not limited to, all of the following: (A) Costs to develop the guidelines required by this chapter, which may include, but is not limited to, the following: (i) Department staffing expenses incurred in developing the guidelines. (ii) Contracting with one or more program fund managers to develop the guidelines. (iii) Contracting with third-party consultants to develop guidelines. (B) Costs to develop lending criteria. (C) Costs to advertise the program. (D) Costs to develop technical assistance tools to support qualified entities in navigating the requirements and processes to apply for funding including, but not limited to, the following: (i) Training modules. (ii) Acquisition-rehabilitation specific financing templates and guidance, such as pro formas and worksheets. (iii) Best practice guides for engaging tenants before and after property acquisition, managing safe and accessible rehabilitation of occupied buildings, facilitating resident ownership, and any other topic deemed appropriate by the department. (iv) Technical assistance with resident engagement and education, property assessment and due diligence, affordable housing operations management, acquisition-rehabilitation project financial assistance, construction, and property management. (E) Administrative costs of fund managers to implement the program pursuant to Section 50720.6. (4) Funds not committed to fund managers pursuant to Section 50720.6 as of December 31, 2025, or any funds returned from fund managers, shall be deposited into the Housing Rehabilitation Loan Fund to be made available for loans authorized by Chapter 5.5 (commencing with Section 50606) or for loans authorized by Chapter 6.7 (commencing with Section 50675). Notwithstanding the requirements of Chapter 5.5, uncommitted or returned funds made available for purposes of Chapter 5.5 may be used to assist projects funded by the department or other public entities. (5) Not later than May 15, 2023, the department shall report to the chairs of the Assembly Committee on Budget and the Senate Committee on Budget and Fiscal Review on the implementation of this program, including the amount of funding disbursed and number, location, and cost of acquired properties, as well as the number of units acquired. (c) All repayments of program funds to fund managers, including loan principal and any interest collected on those loans, and any interest earned on the funds held by the fund managers shall be deposited into separately maintained reuse accounts held by fund managers for purposes of the program. Fund managers shall use funds held in those reuse accounts for purposes of the program, which may include, but not be limited to, loans and grants to pay for repairs, maintenance, or improvements on properties acquired pursuant to the program. (Amended by Stats. 2024, Ch. 580, Sec. 4. (AB 2897) Effective January 1, 2025.)
  129. 50720.4.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.6. Foreclosure Intervention Housing Preservation Program [50720 - 50720.12] ( Chapter 8.6 added by Stats. 2021, Ch. 111, Sec. 23. )

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    This section defines several terms used in the Foreclosure Intervention Housing Preservation Program.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.6. Foreclosure Intervention Housing Preservation Program [50720 - 50720.12] ( Chapter 8.6 added by Stats. 2021, Ch. 111, Sec. 23. ) ## 50720.4. As used in this chapter: (a) “Capitalized operating subsidy reserve” means funds that are set aside before a property is acquired pursuant to this chapter to cover the property’s operating expenses over time. (b) “Community land trust” has the same definition as that term is defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code, as amended by the act adding this subdivision. (c) “Department” means the Department of Housing and Community Development. (d) “Foreclosure risk intervention sale” means a sale of a 1 to 25 unit residential real property that is not owner occupied and that exhibits indicators of foreclosure risk at the time of sale including, but not limited to, the following: (1) There is a mortgage delinquency of at least 90 days. (2) There is a delinquency on two or more property tax payments. (3) The owner of the property is a debtor in a bankruptcy proceeding. (4) There is tenant-initiated litigation against the owner of the property on the basis of lack of habitability. (5) A local government body responsible for enforcing building codes has deemed the property partially or fully uninhabitable. (6) There are other indicators that the department may prescribe in the guidelines adopted pursuant to this chapter. (e) “Preforeclosure intervention sale” means a sale of a 1 to 25 unit residential real property that is subject to a recorded notice of default by a trustee representing a beneficiary at the time of the sale. (f) “Program” means the Foreclosure Intervention Housing Preservation Program. (g) “Property acquisition costs” means direct real property acquisition costs such as payment of the purchase price and any liens on eligible properties in addition to repairs required to ensure a property and its structures are in compliance with all applicable habitability, health, and safety laws. (h) “Transaction costs” means costs related to acquiring a property, which may include property appraisal, transfer taxes, financing costs, underwriting, project management, broker fees, and legal fees. (Amended by Stats. 2024, Ch. 580, Sec. 5. (AB 2897) Effective January 1, 2025.)
  130. 50720.6.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.6. Foreclosure Intervention Housing Preservation Program [50720 - 50720.12] ( Chapter 8.6 added by Stats. 2021, Ch. 111, Sec. 23. )

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    The department must give funds to fund managers to run the program, and fund managers must meet listed criteria and handle applications, loans, and compliance.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.6. Foreclosure Intervention Housing Preservation Program [50720 - 50720.12] ( Chapter 8.6 added by Stats. 2021, Ch. 111, Sec. 23. ) ## 50720.6. (a) The department shall grant funds to one or more fund managers to implement the program until June 30, 2026, which shall include funds for all of the following: (1) Capitalized operating subsidy reserves. (2) Loans or grants awarded pursuant to this chapter. (3) Administrative costs authorized pursuant to paragraph (3) of subdivision (b) of Section 50720.2. (b) A contract between the department and a fund manager to carry out the provisions of this chapter may be amended past June 30, 2026, if funds are available and if deemed appropriate by the department. (c) The fund manager or managers shall, in compliance with the guidelines adopted pursuant to this chapter, be responsible for all of the following: (1) Reviewing and approving loan or grant applications. (2) Originating and servicing loans or grants, including capitalized operating subsidy reserves. (3) Establishing terms and conditions for loan or grant applications pursuant to the guidelines adopted pursuant to this chapter. (4) Ensuring compliance with loan or grant terms and conditions. (d) The fund manager or managers shall meet all of the following criteria: (1) Be a nonprofit lender with experience making real estate loans in this state, or be a housing trust fund operated by a city, a county, a city and county, or a joint powers authority as described in Article I (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code operated for the purpose of funding the development, acquisition, rehabilitation, or preservation of affordable housing for low- or moderate-income residents. (2) Have originated and serviced loans to develop, maintain, improve, or acquire affordable housing, including at least five million dollars ($5,000,000) in acquisition loans. (3) Demonstrate an ability to process loans for property acquisitions in an expedient manner sufficient to deploy loans necessary to purchase real property in trustee’s sales pursuant to the time constraints described in Section 2924m of the Civil Code. (e) The department may, but is not required to, contract with one or more third-party consultants to assist with administering the program. (1) Any third-party consultant contracted with by the department pursuant to this subdivision must demonstrate expertise in a variety of property ownership and stewardship models, such as rental housing, home ownership, community land trusts, limited-equity housing cooperatives, workforce housing cooperative trusts, or nonprofit affordable housing cooperatives. (2) In contracting with a third-party consultant pursuant to this subdivision the department shall prioritize to third-party consultants that demonstrate a commitment to and experience in advancing racial equity. (Amended by Stats. 2022, Ch. 70, Sec. 22. (SB 197) Effective June 30, 2022.)
  131. 50720.8.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.6. Foreclosure Intervention Housing Preservation Program [50720 - 50720.12] ( Chapter 8.6 added by Stats. 2021, Ch. 111, Sec. 23. )

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    Borrowers or grantees receiving program funds may use the money only for the listed housing-related purposes, must restrict vacant units in one of the stated ways, and mixed-income occupied properties may seek a limited exemption for over-income units until turnover.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 8.6. Foreclosure Intervention Housing Preservation Program [50720 - 50720.12] ( Chapter 8.6 added by Stats. 2021, Ch. 111, Sec. 23. ) ## 50720.8. (a) A borrower or grantee that receives funds from a loan or grant made pursuant to the program shall only use the funds as follows: (1) To pay for property acquisition, rehabilitation, and repair costs and associated transaction costs for real property purchased through one of the following: (A) A trustee’s sale pursuant to Section 2924m of the Civil Code. (B) A preforeclosure intervention sale. (C) A foreclosure risk intervention sale. (2) To pay for transaction costs, so long as no more than 10 percent of a single loan or grant funded by the program is used toward transaction costs. (3) To pay operating expenses from any capitalized operating subsidy reserve established pursuant to Section 50720.6. (b) A borrower or grantee that receives funds from a loan or grant made pursuant to this program shall ensure that all vacant units are restricted in one of the following ways: (1) By those conditions of a contract described in paragraph (10) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code. (2) By those conditions of a contract described in paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code. (3) (A) To persons and families of extremely low, very low, low, or moderate income, with an affordable housing cost or an affordable rent, as defined in Sections 50052.5 and 50053, respectively, for a minimum of 55 years, or a longer duration as the department may require. (B) A property may be restricted pursuant to this paragraph by recording a lease agreement, ground lease agreement, or other recorded contractual agreement between a borrower or grantee and the residents of the property, or between a borrower or grantee and a resident-controlled corporation or association. (C) Any agreement made between a borrower or grantee and a resident-controlled corporation or association pursuant to subparagraph (B) shall ensure that the housing units are affordable to lower income households, as defined in Section 50079.5 (c) Occupied properties having a mix of incomes among tenants or owners may seek exemption from restrictions under subdivision (b) for units with over-income occupants, only until the unit is vacated due to natural turnover and available to be rerented or resold. (Amended by Stats. 2022, Ch. 570, Sec. 10. (AB 157) Effective September 27, 2022.)
  132. 50735.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. )

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    This section defines key terms for the rental housing construction program and requires the department to issue regulations for rent calculation and qualifying development costs.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. ) ## 50735. The following definitions shall apply to all activities conducted pursuant to this chapter. Except as otherwise provided in this article or unless the context otherwise requires, the definitions contained in Chapter 2 (commencing with Section 50050) of Part 1 of this division shall also apply to this chapter. (a) “Assisted unit” means a unit which is affordable to an eligible household as a result of a payment made by the department pursuant to Article 2 (commencing with Section 50745), 3 (commencing with Section 50755), 4 (commencing with Section 50765) or 6 (commencing with Section 50771.1), or as a result of establishment of, or assistance from, an annuity trust fund or both. The department shall adopt regulations which establish a method for computing rents for eligible households. (b) “Below-market interest financing” means any of the following: (1) A long-term loan made by the agency with below-market interest, as defined by Section 50056. (2) A long-term loan made by a local finance entity at a below-market interest rate no higher than that established from time to time by the department, provided such rate shall not exceed by more than 1 1/2 percent the interest rate on long-term loans, if any, made by the agency for rental housing development proposals being submitted or processed for department assistance under this chapter at the same time. (3) The use of subsidies, assistance, or financing, other than as provided in paragraphs (1) and (2), which reduce rent levels by an amount equivalent to that enabled by long-term loans at the interest rate established for purposes of paragraph (2). (4) Subsidies, assistance, or financing provided to the sponsor by or through the agency or local finance entity and which is a loan made at below-market interest by an agency of the federal government. (c) “Development costs” means the aggregate of all costs incurred in connection with construction of a rental housing development pursuant to this chapter, including (1) the cost of land acquisition, whether by purchase or lease, (2) the cost of construction, (3) the cost of overhead including architectural, legal, and accounting fees incurred in connection with the construction of the rental housing development, (4) the cost of related offsite improvements, such as sewers, utilities, and streets, and (5) the cost of necessary and related onsite improvements. The department shall adopt regulations consistent with this section specifying the expenses qualifying as development costs for which a payment may be made pursuant to Section 50745. (d) “Eligible households” means lower income households, as defined by Section 50079.5, including very low income households, as defined by Section 50105. (e) “Local finance entity” means a redevelopment agency, housing authority, duly constituted governing body of an Indian rancheria, city, county, or city and county, or any combination thereof, which, in connection with the program established pursuant to this chapter, provides or utilizes financing, at below-market interest or the equivalent under subdivision (b) of Section 50745, for development of rental housing developments eligible for assistance under this chapter. (f) “Rental housing development” means a development of five or more rental or cooperative units, on one or more sites and includes a mobilehome park with five or more mobilehome spaces. (g) “Sponsor” means any individual, joint venture, partnership, limited partnership, trust, corporation, cooperative, local public entity, duly constituted governing body of an Indian rancheria, or other legal entity, or any combination thereof, certified by the department and the agency or the department and a local finance entity as the case may be, to own and manage or construct a rental housing development assisted pursuant to this chapter. A sponsor may be organized for profit or limited profit or be nonprofit. (Amended by Stats. 1989, Ch. 1346, Sec. 1.5. Effective October 2, 1989.)
  133. 50736.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. )

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    This section requires certain rental housing developments to reserve specified shares of units for eligible, very low income, lower income, elderly, handicapped, and rural-area purposes, and requires sponsors to run approved affirmative marketing programs.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. ) ## 50736. (a) Not less than 30 percent of the units in each rental housing development consisting of 10 or more units which receives any funds pursuant to this chapter shall be available on a priority basis to or occupied by eligible households pursuant to the agreement required by Section 50739, and not less than 20 percent of all the units in each rental housing development shall be available on a priority basis to, or occupied by, very low income households. (b) Every sponsor shall, with respect to assisted units, conduct an affirmative marketing program, on a continuous basis, which program has been approved by the department or by the agency in cases where the agency provides financing. For the purposes of this subdivision, “affirmative marketing program” means any program approved by the department that is designed to achieve greater access to housing opportunities created by this chapter for eligible households. Such program shall include educational, promotional, and other appropriate activity designed to secure greater housing opportunities for those households. Where a significant number of persons in a community have limited fluency in the English language, publications implementing an affirmative marketing program in that community shall be provided in the native language of those persons. (c) Of all assisted units, under this chapter, not less than two-thirds shall be allocated to very low income households and the balance for lower income households. (d) Elderly or handicapped households shall be allocated not less than 20 percent, nor more than 30 percent, of the assisted units provided pursuant to this chapter. Other handicapped households shall be eligible for assisted units pursuant to this subdivision or subdivision (a), (b), (c), or (e) if they otherwise meet the requirements imposed by those provisions. (e) Not less than 20 percent of the funds loaned pursuant to this chapter after November 1988 shall be allocated to rural areas. For the purposes of this section “rural area” shall have the same meaning as defined in Section 50199.21. (Amended by Stats. 1992, Ch. 496, Sec. 1. Effective January 1, 1993.)
  134. 50737.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. )

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    The department must adopt rules and regulations for administering this chapter and must prioritize certain rental housing developments when allocating funds.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. ) ## 50737. The department shall adopt rules and regulations, in accordance with the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, for the administration of this chapter. The rules and regulations shall give priority in the allocation of funds available for the purposes of this chapter to the following: (a) Rental housing developments which are of the lowest possible cost, given local market conditions. (b) Rental housing developments which incorporate innovative or energy-efficient design and construction techniques and higher densities that will result in lower costs while retaining quality. (c) Rental housing developments which complement the implementation of a local housing program of increased housing supply for persons and families of low or moderate income. (d) Rental housing developments for which the housing sponsor, whether public or private, has contributed or received funds, services, or land or for which Community Development Block Grant Funds have been allocated under Title I of Federal Public Law 93-383 for eligible expenditures, including, but not limited to, rent subsidies, site acquisition, development costs, or construction costs. (e) Rental housing developments which utilize available funds in the most efficient manner to produce the maximum number of housing units. (f) To the extent feasible and consistent with the other priorities contained in this section, rental housing developments which are located within existing public transit corridors as defined in Section 50093.5. However, this priority shall not apply to rental housing developments located in rural areas which are assisted pursuant to this chapter. (Amended by Stats. 1980, Ch. 1154, Sec. 3.2.)
  135. 50737.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. )

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    The department must allocate funds for this chapter statewide based on identified housing needs.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. ) ## 50737.5. Funds available for the purposes of this chapter shall be allocated by the department throughout the state in accordance with identified housing needs. (Added by Stats. 1979, Ch. 1043.)
  136. 50738.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. )

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    The department may make certain housing program payments and related assistance only when they will produce affordable rents for eligible households.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. ) ## 50738. The department may make payments pursuant to Article 2 (commencing with Section 50745), 3 (commencing with Section 50755), or 4 (commencing with Section 50765) or contract to make annuity fund payments, or both, only if such payments or trust fund assistance result in affordable rents in assisted units for eligible households. The payments may be provided as loans to be repaid and payments of principal or interest may be deferred or made payable over a period of time. The payments may also be provided to acquire rights of occupancy or leaseholds, or to write down the development costs of a rental housing development. In addition to making payments to provide assisted units for eligible households, the department may provide funds if necessary to ensure the economic feasibility of, and to enable the construction of, rental housing developments assisted under this chapter, but no more than 10 percent of the moneys appropriated to the Rental Housing Construction Fund may be used for this purpose. (Amended by Stats. 1980, Ch. 1154.)
  137. 50738.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. )

    Verify source ↗

    The department must create and run an annuity fund for rental housing developments, oversee its use, and require reports and audits.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. ) ## 50738.5. (a) The department shall establish and administer an annuity fund and may, notwithstanding any other provision of this chapter, make commitments to provide annuity payments from the fund directly to sponsors of rental housing developments which will receive construction or mortgage financing, or both, from the Farmers Home Administration to ensure affordable rents to eligible households. (b) The department shall require annual reports on the use of annuity funds and any audits necessary to ensure the proper use of moneys from the annuity fund. The department shall review all complaints received concerning those funds and shall have all powers necessary to assure the lawful application of those funds. (c) Any rental housing development assisted pursuant to this section shall be governed by a regulatory agreement between the sponsor and the department. The regulatory agreement shall meet all of the requirements imposed by subdivisions (b), (c), (d), and (e) of Section 50757. The regulatory agreement shall also contain restrictions on the occupancy of the dwelling units within the rental housing development necessary to meet the requirements of subdivisions (a), (b), (c), and (e) of Section 50736 and Section 50739. In addition, elderly or physically handicapped households shall be allocated not less than 20 percent, or more than 50 percent, of the assisted units provided pursuant to this section. Other handicapped households shall be eligible for assisted units pursuant to this subdivision or subdivision (a), (b), (c), or (e) of Section 50736 if they otherwise meet the requirements imposed by those provisions. (d) The department may utilize up to 2 1/2 percent of the moneys appropriated for purposes of this section for administrative costs incurred in administering this section. (e) The department shall make requests for proposals available to all potential sponsors of rental housing developments to be financed by the Farmers Home Administration who request them. The department shall encourage nonprofit sponsors and public agency sponsors to submit proposals. The request for proposals shall provide information about the availability of annuity payments to ensure affordable rents in rental housing developments financed by the Farmers Home Administration, the department’s criteria for making commitments of its annuity funds, and the appropriate application procedure. The applicant shall be required by the department to concurrently submit a preapplication for financing to the Farmers Home Administration. The department shall submit to the Farmers Home Administration those applications for which the department has made commitments for annuity payments under this section. This section does not prohibit a sponsor of a rental housing development from applying directly to the Farmers Home Administration for financing and for federal rental assistance payments. (f) “Rental housing development,” as used in this section, includes farm labor housing developments financed or insured by the Farmers Home Administration pursuant to Section 1484, 1485, or 1486 of Title 42 of the United States Code. (Amended by Stats. 1985, Ch. 697, Sec. 1.)
  138. 50739.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. )

    Verify source ↗

    When the department makes certain payments or annuity fund commitments, it must have a written agreement setting unit counts for different household income groups; it may also reduce assisted units below 30% only if needed to preserve fiscal integrity.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. ) ## 50739. At the time the department makes a payment pursuant to Article 2 (commencing with Section 50745), 3 (commencing with Section 50755), or 4 (commencing with Section 50765) or contracts to make annuity fund payments in connection with a rental housing development, or both, a written agreement between the department and the agency, local finance entity, or local public entity shall be executed, designating the number of units within the rental housing development available to, or occupied by, very low income households, other lower income households, and other households. If the number of units occupied by very low income households or other lower income households in any housing development ever falls below the number agreed to by the department and agency, local finance entity, or local public entities, then units which become available for occupancy shall be made available on a priority basis to very low income households or other lower income households, as required, until the number of units so occupied equals at least the number specified in the agreement. The department and the agency, local finance entity, or local public entity, may reduce the number of assisted units to less than 30 percent of a rental housing development only if necessary to maintain the development’s fiscal integrity. Any reduction in the number of assisted units shall be reviewed annually to determine whether it is necessary to continue that reduction in the number of assisted units. (Amended by Stats. 1985, Ch. 375, Sec. 2.)
  139. 50740.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. )

    Verify source ↗

    This section renames the fund, directs how its money must be handled and transferred, and allows the Controller to use fund money for loans to the General Fund.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. ) ## 50740. (a) The Rental Housing Construction Incentive Fund established in the State Treasury is hereby renamed the Rental Housing Construction Fund. Notwithstanding Section 13340 of the Government Code, all moneys in the fund are hereby continuously appropriated to the Department of Housing and Community Development, and, except as provided in subdivisions (b) and (c), shall be utilized for purposes of this chapter, Section 50775.5, and Chapter 15 (commencing with Section 50880). All interest or other increment resulting from investment or deposit of moneys in the fund shall be deposited in the fund, notwithstanding Section 16305.7 of the Government Code. Except as described in subdivision (d), moneys in the fund shall not be subject to transfer to any other fund pursuant to Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, except the Surplus Money Investment Fund. (b) An amount not to exceed four million dollars ($4,000,000) of the moneys from the fund utilized by the agency for development costs which is repaid to the agency or disencumbered on or after July 1, 1983, shall be deposited in a separate account and utilized and apportioned in accordance with the following percentages as it becomes available: (1) Fifty percent of the moneys shall be transferred by the agency to the department and deposited in the Housing Rehabilitation Loan Fund, established pursuant to Section 50661, and utilized for making deferred payment loans for residential hotels as authorized by subdivision (b) of Section 50661 and for purposes of subdivision (c) of that section. (2) Twenty-five percent of the moneys shall be transferred by the agency to the department for deposit in the Emergency Housing and Assistance Fund, established pursuant to Section 50800.5. (3) Twenty-five percent of the moneys shall be transferred by the agency to the department for deposit in the annuity fund, established pursuant to Section 50738.5. (c) Notwithstanding any other provision of law, effective with the date of the act adding this subdivision, appropriations authorized for support of the department from the Family Housing Demonstration Account shall instead be authorized for expenditure from the Rental Housing Construction Fund. (d) Notwithstanding any other law, the Controller may use the moneys in the Rental Housing Construction Fund for loans to the General Fund as provided in Sections 16310 and 16381 of the Government Code. However, interest shall be paid on all moneys loaned to the General Fund from the Rental Housing Construction Fund. Interest payable shall be computed at a rate determined by the Pooled Money Investment Board to be the current earning rate of the fund from which loaned. This subdivision does not authorize any transfer that will interfere with the carrying out of the object for which the Rental Housing Construction Fund was created. (Amended by Stats. 2009, 3rd Ex. Sess., Ch. 9, Sec. 15. Effective February 20, 2009.)
  140. 50740.7.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. )

    Verify source ↗

    If committed money cannot be used by the local finance entity or housing authority, the department may reallocate those funds to other eligible housing developments.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. ) ## 50740.7. If money committed by the department prior to the effective date of the act which enacted this section cannot be used by the local finance entity or housing authority to which funds are committed, the department may allocate these funds to assist any other housing developments, including those financed by the agency, eligible under this chapter. (Added by Stats. 1981, Ch. 102.)
  141. 50741.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. )

    Verify source ↗

    Rental housing developments are eligible for assistance only if construction begins at least six months after the chapter’s effective date.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. ) ## 50741. Only rental housing developments on which construction is commenced on or after six months from the effective date of this chapter shall be eligible for assistance under this chapter. (Added by Stats. 1979, Ch. 1043.)
  142. 50742.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. )

    Verify source ↗

    A city, county, or city and county may issue revenue bonds for below-market financing of a rental housing development, and may act jointly with other local governments.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. ) ## 50742. For purposes of acting as a local finance entity pursuant to this chapter, a city, county, or city and county may, pursuant to an enabling ordinance of its legislative body, issue revenue bonds to provide below-market interest financing of a rental housing development. Any city, county, or city and county may act jointly with one or more other cities, counties, or cities and counties in the exercise of powers under this section. The proceeds of local revenue bonds issued pursuant to this section shall be used solely to finance rental housing developments containing assisted units, for any and all costs of administering such finance program and for complying with mandated reserve requirements. Any interest or other increment received by a local finance entity acting under the authority of this section from the investment or reinvestment of the proceeds of such revenue bonds, any payments of principal or interest on financing provided by the local finance entity or part of such program, and any other revenues received by the local finance entity in connection with, or for purposes of, such program shall be held and applied solely for the purposes of such program. (Amended by Stats. 1980, Ch. 1154.)
  143. 50744.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. )

    Verify source ↗

    A local finance entity or local public entity may, with department approval, name a substitute payee in writing for certain annuity fund payments, and the department must pay that person directly until the designation is revoked or rescinded by agreement.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. ) ## 50744. Where a local finance entity or local public entity is authorized to receive payments from the annuity fund established pursuant to Section 50748, under a written agreement with the department, the local finance entity or local public entity may with the approval of the department designate in writing either the project sponsor or the sponsor’s approved management agent for the rental housing development as a substitute payee for these payments. Upon the approval of the department and the local finance entity or local public entity, the department shall make the authorized payments directly to the designated payee until the entity and the department agree to revoke or rescind the designation. (Added by Stats. 1987, Ch. 1034, Sec. 3.)
  144. 50744.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. )

    Verify source ↗

    Rental housing developments that receive financial assistance under this chapter must follow the same notice requirements as Government Code Section 65863.10.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 1. Definitions and General Provisions [50735 - 50744.5] ( Article 1 added by Stats. 1979, Ch. 1043. ) ## 50744.5. The same notice requirements as specified in Section 65863.10 of the Government Code shall apply to rental housing developments that receive financial assistance pursuant to this chapter. (Added by Stats. 1988, Ch. 1563, Sec. 4.)
  145. 50745.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 2. Rental Construction Incentive Program [50745 - 50750] ( Article 2 added by Stats. 1979, Ch. 1043. )

    Verify source ↗

    The department may contract with an agency or local finance entity to cover some development costs for certain rental housing projects, and the agency or entity must then meet department-set criteria for feasibility, design, construction, and management oversight.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 2. Rental Construction Incentive Program [50745 - 50750] ( Article 2 added by Stats. 1979, Ch. 1043. ) ## 50745. (a) Upon application by the agency or a local finance entity, the department may contract with the agency or local finance entity to pay all or a portion of the development costs incurred by a sponsor in connection with the construction of a rental housing development which is financed, or otherwise assisted pursuant to subdivision (b), by the agency, local finance entity, or a federal agency. (b) In lieu of providing financing of a rental housing development at below-market interest, a local finance entity to be eligible for assistance under this article, may utilize other types of subsidies including, but not limited to, federal funds, as authorized by law, which reduce by an equivalent amount the rental levels of a rental housing development. (c) Pursuant to such a contract the agency or local finance entity shall, in accordance with criteria established by the department, (1) ensure the feasibility of the proposed rental housing development to be financed and assisted pursuant to this chapter, (2) supervise the design and construction of the rental housing development to be financed by it and assisted pursuant to this chapter, and (3) supervise the management of such rental housing development while the financing thereof remains outstanding and unpaid or for a period of 30 years, whichever is greater. The department shall adopt criteria to ensure that a local finance entity has the capability of performing such functions prior to entering a contract pursuant to this section. (Amended by Stats. 1979, Ch. 1045.)
  146. 50745.1.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 2. Rental Construction Incentive Program [50745 - 50750] ( Article 2 added by Stats. 1979, Ch. 1043. )

    Verify source ↗

    The department may fund and control certain rental housing assistance in Anaheim, set rent-related conditions, and require priority occupancy for displaced low-income households and other disaster victims.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 2. Rental Construction Incentive Program [50745 - 50750] ( Article 2 added by Stats. 1979, Ch. 1043. ) ## 50745.1. (a) Notwithstanding any other provision or requirement of this chapter, and any regulations adopted thereunder, the department may contract with the agency, a local finance entity, or a sponsor to pay all or any portion of the development costs incurred in connection with the construction of a rental housing development consistent with the requirements of this section. (b) Pursuant to this section, funds may be utilized only to assist the development of rental housing developments in Anaheim where the department determines that such assistance is necessary to alleviate hardship resulting from the destruction of rental units in Anaheim caused by a fire which resulted in a state of emergency proclaimed on April 23, 1982, by the Governor, as provided by Section 8625 of the Government Code. (c) Any rental housing development assisted pursuant to this section shall not be governed by the percentage requirements contained in Section 50736, nor shall units assisted pursuant to this section be used in determining compliance with the percentage requirements contained in Section 50736. (d) As a condition of assistance provided pursuant to this section, the department may establish such rent levels as the department may determine are necessary to alleviate hardship in the disaster area consistent with the economic feasibility of the assisted rental housing development. Contracts and agreements governing the provision of financial assistance pursuant to this section shall not be subject to the requirements of Sections 50746 and 50749. The department may require such terms and conditions as it determines are necessary to meet the needs of the disaster area and its victims, to ensure fiscal integrity of the rental housing development and to protect the interests of the state. The terms and conditions required by the department, including the restrictions on rent levels for assisted units, shall remain binding on sponsors of developments assisted pursuant to this section, and heirs, successors, and assigns, for a period of at least 20 years or such a longer term as the department may require. The department shall require that priority in occupancy of any units in a development assisted pursuant to this section shall be given first to households of low income, as defined in Section 50093, who have been displaced from their dwelling units as a result of this disaster, and, secondly, to any other victim of this disaster. After no additional victims of this disaster qualify for, or remain in, any assisted units, these units shall be available to, on a priority basis, or occupied by households of low income. (e) The department may allocate funds to an annuity fund established pursuant to Section 50748, or utilize existing annuity funds, to ensure that the rent levels established by the department are maintained consistent with the fiscal integrity of the rental housing development. (f) The department may require funds utilized pursuant to this section to be returned to the Rental Housing Construction Fund from the present allocation of funds to the agency. Any repayment of funds originating from the Rental Housing Construction Fund and utilized pursuant to this section shall be utilized by the department pursuant to this chapter. (g) Any rule, policy or standard of general application employed by the department in implementing the provisions of this section, shall not be subject to the requirements of the Administrative Procedure Act, Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (Added by Stats. 1982, Ch. 312, Sec. 8. Effective June 28, 1982.)
  147. 50746.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 2. Rental Construction Incentive Program [50745 - 50750] ( Article 2 added by Stats. 1979, Ch. 1043. )

    Verify source ↗

    Contracts under Section 50745 must be recorded in the county recorder’s office and include specified terms.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 2. Rental Construction Incentive Program [50745 - 50750] ( Article 2 added by Stats. 1979, Ch. 1043. ) ## 50746. Each contract pursuant to Section 50745 shall be recorded or referenced in a recorded document in the office of the county recorder of the county in which the rental housing development is located, and shall be indexed by the recorder in the grantor index to the name of the sponsor and in the grantee index to the name of the State of California. The contract shall contain at least the following provisions: (a) The amount and terms of payments to be provided under this article, including specific items to be covered by such payments. (b) A description of the way in which the payments will be used to provide affordable rents to eligible households occupying assisted units within the rental housing development. (c) Projected rent levels for all units, and the number of units to be occupied by eligible households. (d) Requirements for payment of prevailing wage rates on construction. (e) A requirement for a periodic report to be made at least annually by the agency or local finance entity which shall include, at a minimum, information on the fiscal condition of the rental housing development, the maintenance of such development, and the number of units occupied by eligible households. (f) A provision for department approval prior to the execution of the terms of the regulatory agreement to be entered into between the sponsor and the agency or local finance entity pursuant to Section 50749. (g) A provision that failure to operate the rental housing development in accordance with the regulatory agreement shall be deemed a violation of the regulatory agreement or deed of trust, as the case may be. In the alternative or in addition, the contract may contain a lien on the rental housing development for the purpose of securing performance of the agreement. Such lien shall include a legal description of the assisted real property which is subject to the lien and shall specify the duration of the lien upon the assisted real property. (h) Standards which govern selection of tenants by housing sponsors to ensure occupancy by eligible households consistent with the requirements of Sections 50736 and 50739 and the terms of occupancy agreements to be used in rental housing developments. (i) Provisions sufficient to ensure that dwelling units in the rental housing development available to and occupied by eligible households in accordance with Section 50736 and in accordance with the written agreement required by Section 50739 remain available to such households for a period of not less than 30 years or the duration of the long-term financing, whichever is greater. (j) Provisions which specify the timing and manner in which payments are made by the department so as to ensure the economic feasibility of the rental housing development and to protect the interests of the state. (k) A provision making the covenants and conditions of the contract binding upon successors in interest of the sponsor. ( l) When the sponsor is not a nonprofit housing sponsor or a local public entity, a provision limiting distribution of the sponsor’s earnings to an annual amount no greater than 6 percent of the sponsor’s actual investment (excluding unaccrued liabilities of the sponsor) in the rental housing development. The department may allow an earnings distribution of no greater than 10 percent on a nonelderly rental housing development if the department finds it necessary to do so to fulfill the requirements of Section 50736. With respect to such nonelderly rental housing developments, the department may adopt regulations consistent with this section governing the conditions under which an earnings distribution over 6 percent but not to exceed 10 percent may be allowed. (m) A provision which specifies the conditions under which the department and agency may enforce the regulatory agreement with respect to a rental housing development financed by the agency. (n) Provisions necessary for the administration, disbursement, and protection of annuity fund payments including provisions specifying the conditions under which the department may recover or reallocate all or any part of such payments for the benefit of eligible households in existing or additional assisted units. (o) Provisions (1) governing the recovery and reallocation by the department of rent revenues derived by the sponsor from the assisted units and which are not necessary to defray costs of operation attributable to such units and (2) specifying the return on the sponsor’s investment pursuant to subdivision (b). Such rent revenue shall be handled by the department in the same manner as annuity payments recovered pursuant to subdivision (n). (p) Authorization for the agency or local finance entity to fix and alter rents pursuant to the provisions of subdivision (c) of Section 50749. (q) Any other provisions necessary to carry out the purposes and to exercise the powers granted by this chapter. (Amended by Stats. 1980, Ch. 1154.)
  148. 50747.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 2. Rental Construction Incentive Program [50745 - 50750] ( Article 2 added by Stats. 1979, Ch. 1043. )

    Verify source ↗

    The department may pay development costs for rental housing projects, but not above 100% of those costs or more than what is needed to keep the occupancy restrictions economically feasible.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 2. Rental Construction Incentive Program [50745 - 50750] ( Article 2 added by Stats. 1979, Ch. 1043. ) ## 50747. The development cost payments provided by the department pursuant to this article shall not exceed 100 percent of the development costs of a rental housing development, and shall not exceed the amount required, when considered with any subsidy or assistance provided by the agency, local finance entity or housing sponsor, including below-market interest financing, to ensure the economic feasibility of restricting occupancy of the rental housing development in accordance with Sections 50736 and 50739. The department may defray all or a portion of development costs as they are incurred, or in accordance with a schedule developed pursuant to subdivision (j) of Section 50746. (Added by Stats. 1979, Ch. 1043.)
  149. 50748.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 2. Rental Construction Incentive Program [50745 - 50750] ( Article 2 added by Stats. 1979, Ch. 1043. )

    Verify source ↗

    The department may create and run an annuity fund for assisted rental housing developments, and it must require reports, audits, and complaint review to protect fund use.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 2. Rental Construction Incentive Program [50745 - 50750] ( Article 2 added by Stats. 1979, Ch. 1043. ) ## 50748. (a) The department may establish and administer an annuity fund, with respect to rental housing developments assisted under this article or Article 3 (commencing with Section 50755) or Article 4 (commencing with Section 50765) for the purpose of reducing rent levels to ensure occupancy by eligible households pursuant to Sections 50736 and 50739. The annuity funds shall be structured so that the principal and interest accumulated thereon is not depleted prior to the expiration of the agreements or contracts required by Section 50749. (b) Payments made by the department pursuant to this section shall not constitute a subsidy under subdivision (b) of Section 50745, and shall not constitute an advance payment within the meaning of state law restricting advance payments under state contracts. (c) The department shall require annual reports on the use of annuity funds and such audits as may be required to ensure the proper use of moneys from the annuity fund. The department shall review all complaints received concerning such trust funds and shall have all powers necessary to assure the lawful application of such funds. (d) When the amount of moneys made payable from an annuity fund pursuant to this section exceeds the amount necessary to ensure that eligible households in a rental housing development assisted under this chapter are paying affordable rents, or if payments from the annuity fund become unnecessary for such purpose, the department may by contract (1) require that such unneeded moneys be paid into the Rental Housing Construction Incentive Fund or (2) authorize use of such moneys to reduce rents to an affordable level for additional eligible households in the rental development. (e) Not less than 20 percent of the moneys appropriated for the purposes of this chapter shall be utilized pursuant to this section. However, moneys transferred to the Rental Housing Construction Fund pursuant to subdivision (d) shall be used for any purpose authorized by this chapter. (Amended by Stats. 1989, Ch. 1346, Sec. 2. Effective October 2, 1989.)
  150. 50748.1.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 2. Rental Construction Incentive Program [50745 - 50750] ( Article 2 added by Stats. 1979, Ch. 1043. )

    Verify source ↗

    The department controls how certain housing-fund money is invested, can direct transfers for investment, and can request a transfer of up to $5,000,000 to the Predevelopment Loan Fund.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 2. Rental Construction Incentive Program [50745 - 50750] ( Article 2 added by Stats. 1979, Ch. 1043. ) ## 50748.1. (a) The department shall from time to time direct the Treasurer to invest moneys set aside or otherwise deposited in the annuity fund established by Section 50748 as an account in the Rental Housing Construction Fund, which are not required for its current needs, in the eligible securities specified in Section 16430 of the Government Code that are designated by the department. The department may direct the Treasurer to deposit moneys in interest-bearing accounts in state or national banks or other financial institutions having principal offices in this state, or in other investments which are consistent with state policy and achieve returns adequate to fulfill the requirements of this chapter. The department may alternatively require the transfer of moneys in the annuity fund to the Surplus Money Investment Fund for investment pursuant to Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government Code. All interest or other increment resulting from the investment or deposit shall be deposited in the annuity fund account, notwithstanding Section 16305.7 of the Government Code. Moneys in the fund are not subject to transfer to any other fund pursuant to Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, except the Surplus Money Investment Fund. (b) Upon request of the department, the Controller shall transfer from the annuity fund account in the Rental Housing Construction Fund, an aggregate amount not exceeding five million dollars ($5,000,000) to the Predevelopment Loan Fund. The department shall determine the respective amount to be deposited in these funds. Transfers made pursuant to this subdivision shall be treated as advances and shall be repaid, with interest specified in this subdivision, within three years of the effective date of transfer of the moneys, except that the department may defer repayment if (1) the balance of moneys in the annuity fund account is sufficient to meet current or anticipated financial obligations and (2) the financial integrity of any component or fund of the Rental Housing Construction Program is not at risk. Moneys advanced pursuant to this subdivision shall be repaid with interest at the rate of 7 percent. (Amended by Stats. 2001, Ch. 395, Sec. 13. Effective October 1, 2001.)
  151. 50749.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 2. Rental Construction Incentive Program [50745 - 50750] ( Article 2 added by Stats. 1979, Ch. 1043. )

    Verify source ↗

    Assisted rental housing developments must operate under a recorded regulatory agreement, and the agreement must include rent, occupancy, wage, hiring, and enforcement terms.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 2. Rental Construction Incentive Program [50745 - 50750] ( Article 2 added by Stats. 1979, Ch. 1043. ) ## 50749. Any rental housing development assisted pursuant to this article shall be governed by a regulatory agreement between the sponsor and the agency or local finance entity. Such regulatory agreements shall be recorded or referenced in a recorded document in the office of the county recorder for the county in which the rental housing development is located. The regulatory agreements shall contain at least all of the following: (a) Restrictions on occupancy of dwelling units within the rental housing development, as necessary to meet the requirements of Sections 50736 and 50739. (b) A requirement that prevailing wage rates be paid with respect to construction of the rental housing development, and that all contractors and subcontractors use affirmative action in hiring. (c) The authorization for the agency or local finance entity to fix and alter, from time to time, a schedule of rents such as may be necessary to provide residents of the rental housing development with affordable rents, to the extent consistent with the maintenance of the financial integrity of the rental housing development. With respect to rental housing developments financed by the agency, no housing sponsor may increase rents except in accordance with the provisions of Section 51200. With respect to units under the supervision of a local finance entity, no housing sponsor shall increase the rent without the prior permission of such entity which shall be given only if the sponsor affirmatively demonstrates that such increase is required to defray necessary operating costs or to avoid jeopardizing the fiscal integrity of the rental housing development. Prior to the time any rent increase is effective, the housing sponsor shall notify every affected tenant, in writing, of informal meetings with the housing sponsor to review the proposed rent increase. Each tenant, upon request, shall be provided the information submitted to the local housing finance entity pursuant to this subdivision. Notwithstanding Section 51200 with respect to rental housing developments assisted under this article, if the agency or local finance entity does not act upon a request for a rent increase within 60 days from documented receipt of the request, such increase shall be deemed approved. Thirty days’ notice of any rent increase shall be given in writing. (d) Provisions implementing standards governing selection of tenants by sponsors to ensure initial and continued occupancy by eligible households consistent with the requirements of Sections 50736 and 50739. (e) Provisions implementing the terms of occupancy agreements. (f) Provisions necessary for the administration and protection of annuity trust funds established pursuant to Section 50748 and for recovery and reallocation of annuity fund payments and rent revenues pursuant to subdivisions (n) and (o) of Section 50746. (g) Any other provisions necessary to carry out the purposes and to exercise the powers granted by this chapter. The regulatory agreement shall remain in effect so long as any financing for the rental housing development provided by the agency or local finance entity remains outstanding, but in any event not less than 30 years. The regulatory agreement shall be enforceable as specified in subdivision (m) of Section 50746 by the department, the agency or local finance entity or by any intended beneficiary of housing assisted under this chapter as against the sponsor or any successor in interest of the sponsor. (Amended by Stats. 1980, Ch. 1154.)
  152. 50750.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 2. Rental Construction Incentive Program [50745 - 50750] ( Article 2 added by Stats. 1979, Ch. 1043. )

    Verify source ↗

    The department may contract with a rural local finance entity, but only if the city or county legislative body consents.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 2. Rental Construction Incentive Program [50745 - 50750] ( Article 2 added by Stats. 1979, Ch. 1043. ) ## 50750. Upon consent of the legislative body of the city or county in which a rental housing development is or will be located, the department may contract with a local finance entity located in a rural area to ensure that the terms of the agreement between such entity and a sponsor entered into pursuant to Section 50749 are carried out. (Amended by Stats. 1980, Ch. 1154.)
  153. 50755.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 3. Contracts with Local Public Entities [50755 - 50760] ( Heading of Article 3 amended by Stats. 1985, Ch. 375, Sec. 1. )

    Verify source ↗

    The department may contract with local public entities to fund occupancy rights or leaseholds for eligible households, but the payment cannot exceed development costs.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 3. Contracts with Local Public Entities [50755 - 50760] ( Heading of Article 3 amended by Stats. 1985, Ch. 375, Sec. 1. ) ## 50755. The department may contract with local public entities to provide funds to be used by those entities to obtain a right of occupancy or leasehold for eligible households in some or all of the units in a rental housing development. In order to maximize the number of units for which a right of occupancy or leasehold is obtained, the payment made by the local public entity in obtaining the right or leasehold shall not exceed the costs of developing the unit. The local public entity may be authorized by the department to pay the entire amount of the development costs as soon as the unit is available for occupancy. Any contract executed pursuant to this article which provides for a right of occupancy or leasehold in favor of a local public entity shall be recorded or referenced in a recorded document in the office of the county recorder of the county in which the real property is located. The contract shall particularly describe the real property subject to the right of occupancy or leasehold, designate the specific rental units or proportion of the rental housing development subject to the right of occupancy or leasehold, and specify the period for which the right of occupancy or leasehold extends. (Amended by Stats. 1985, Ch. 375, Sec. 3.)
  154. 50756.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 3. Contracts with Local Public Entities [50755 - 50760] ( Heading of Article 3 amended by Stats. 1985, Ch. 375, Sec. 1. )

    Verify source ↗

    Contracts under Section 50755 must be recorded or referenced and indexed in the county recorder’s office, and they must include specified provisions.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 3. Contracts with Local Public Entities [50755 - 50760] ( Heading of Article 3 amended by Stats. 1985, Ch. 375, Sec. 1. ) ## 50756. Each contract pursuant to Section 50755 shall be recorded or referenced in a recorded document in the office of the county recorder of the county in which the rental housing development is located, and shall be indexed by the recorder in the grantor index to the name of the sponsor and in the grantee index to the name of the State of California. The contract shall contain all of the following provisions: (a) The amount and terms of payments to be provided under this article. (b) A description of the way in which the payments will be used to provide affordable rents to eligible households occupying dwelling units within the rental housing development. (c) A description of the rental housing development, projected rent levels for all units, and the number of units to be occupied by eligible households. (d) A requirement for periodic reports by the local public entity, which shall at a minimum include information on the fiscal condition of the rental housing development, the maintenance of the development, and the number of units occupied by eligible households. (e) The terms of the regulatory agreement to be entered into between the sponsor and the local public entity pursuant to Section 50757 after the department’s approval. (f) Standards which govern selection of tenants by housing sponsors to ensure occupancy by eligible households consistent with the requirements of Sections 50736 and 50739 and the terms of occupancy agreements to be used in rental housing developments. (g) Provisions sufficient to ensure that dwelling units shall be available to, or occupied by, eligible households for a period of not less than 30 years. (h) Provisions which specify the timing and manner in which payments are made by the department so as to ensure the economic feasibility of the rental housing development and to protect the interests of the state. (i) A provision which specifies the conditions under which the department and any intended beneficiary may enforce the regulatory agreement. (j) A provision that failure to operate the assisted units in accordance with the regulatory agreement shall be deemed a violation of the regulatory agreement or deed of trust, as the case may be. In the alternative, or in addition, the agreement may contain a lien on the rental housing development for the purpose of securing performance of the agreement. That lien shall include a legal description of the assisted real property which is subject to the lien and shall specify the duration of the lien on the assisted property. (k) Provisions necessary for the administration, disbursement, and protection of annuity fund payments, including provisions specifying the conditions under which the department may recover or reallocate all or any part of those payments for the benefit of eligible households in additional or existing assisted units. ( l) Provisions that do both of the following: (1) Govern the recovery and reallocation by the department of rent revenues, derived by the sponsor from the assisted units which are not necessary to defray costs of operation attributable to the units. (2) Specify the allowable return on the sponsor’s investment. Those rent revenues shall be handled by the department in the same manner as annuity payments recovered pursuant to subdivision (k). (m) Authorization for the local public entity to fix and alter rents pursuant to subdivision (a) of Section 50759. (n) Any other provisions necessary to carry out the purposes and to exercise the powers granted by this chapter. (Amended by Stats. 1985, Ch. 375, Sec. 4.)
  155. 50757.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 3. Contracts with Local Public Entities [50755 - 50760] ( Heading of Article 3 amended by Stats. 1985, Ch. 375, Sec. 1. )

    Verify source ↗

    Assisted rental housing developments must be governed by a regulatory agreement between the sponsor and the local public entity.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 3. Contracts with Local Public Entities [50755 - 50760] ( Heading of Article 3 amended by Stats. 1985, Ch. 375, Sec. 1. ) ## 50757. Any rental housing development assisted pursuant to this article shall be governed by a regulatory agreement between the sponsor and the local public entity. The regulatory agreements shall contain all of the following: (a) Restrictions on occupancy of the dwelling units within the rental housing development necessary to meet the requirements of Sections 50736 and 50739. (b) A requirement that all contractors and subcontractors use affirmative action in hiring. (c) Provisions implementing the terms of tenant selection standards and occupancy agreements. (d) Provisions necessary for the administration and protection of annuity funds established pursuant to Section 50748 and for recapture and reallocation of annuity fund payments and rent revenues pursuant to subdivisions (k) and ( l) of Section 50756. (e) Any other provisions necessary to carry out the purposes and to exercise the powers granted by this chapter. (Amended by Stats. 1985, Ch. 375, Sec. 5.)
  156. 50758.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 3. Contracts with Local Public Entities [50755 - 50760] ( Heading of Article 3 amended by Stats. 1985, Ch. 375, Sec. 1. )

    Verify source ↗

    A local public entity may manage certain units or hire others to manage them, but any management contract needs department approval.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 3. Contracts with Local Public Entities [50755 - 50760] ( Heading of Article 3 amended by Stats. 1985, Ch. 375, Sec. 1. ) ## 50758. With respect to units for which a local public entity has obtained a leasehold or right of occupancy, the local public entity may manage the units or may contract for management of the units with the housing sponsor or other persons designated by the local public entity, with the approval of the department. (Amended by Stats. 1985, Ch. 375, Sec. 6.)
  157. 50759.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 3. Contracts with Local Public Entities [50755 - 50760] ( Heading of Article 3 amended by Stats. 1985, Ch. 375, Sec. 1. )

    Verify source ↗

    For assisted units under this article, the local public entity must ensure affordable rents, annual tenant income recertification, timely rent adjustments, fair tenant selection procedures, and regulation of tenant occupancy agreements.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 3. Contracts with Local Public Entities [50755 - 50760] ( Heading of Article 3 amended by Stats. 1985, Ch. 375, Sec. 1. ) ## 50759. With respect to assisted units developed pursuant to this article, the local public entity shall do all of the following: (a) Ensure the provision of affordable rents. (b) Ensure that the incomes of tenants are recertified annually. (c) Ensure that upon income recertification rents are adjusted and take effect within 30 days of adjustment. (d) Determine standards for, and ensure fair procedures for, the selection of tenants by housing sponsors or other management designated pursuant to Section 50758 to ensure occupancy by eligible households consistent with the requirements of Sections 50736 and 50739. (e) Regulate the terms of tenant occupancy agreements. (Repealed and added by Stats. 1987, Ch. 1034, Sec. 6.)
  158. 50760.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 3. Contracts with Local Public Entities [50755 - 50760] ( Heading of Article 3 amended by Stats. 1985, Ch. 375, Sec. 1. )

    Verify source ↗

    For units developed under this article, the local public entity may act, and must do so when directed by the department, to inspect, supervise, and order needed repairs.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 3. Contracts with Local Public Entities [50755 - 50760] ( Heading of Article 3 amended by Stats. 1985, Ch. 375, Sec. 1. ) ## 50760. With respect to units developed pursuant to this article, the local public entity may, and at the direction of the department shall, do any of the following: (a) Through its agents or employees enter upon and inspect the lands, buildings, equipment, and books and records of the rental housing development at any time before, during, or after construction of the units assisted pursuant to this article. Entry or inspection of any occupied unit is subject to Section 1954 of the Civil Code. (b) Supervise the operation and maintenance of any housing assisted pursuant to this section and order any repairs necessary to protect the public interest or the health, safety, or welfare of occupants of the housing. (Amended by Stats. 1985, Ch. 375, Sec. 8.)
  159. 50765.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 4. Contracts for Development and Construction by Local Housing Authorities [50765 - 50768] ( Article 4 added by Stats. 1979, Ch. 1043. )

    Verify source ↗

    The department may contract with local housing authorities and provide funds for rental housing developments for eligible households.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 4. Contracts for Development and Construction by Local Housing Authorities [50765 - 50768] ( Article 4 added by Stats. 1979, Ch. 1043. ) ## 50765. The department may contract with local housing authorities and provide funds which shall be used by such authorities to develop and construct rental housing developments to be operated by such housing authorities and to be rented to eligible households. (Added by Stats. 1979, Ch. 1043.)
  160. 50766.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 4. Contracts for Development and Construction by Local Housing Authorities [50765 - 50768] ( Article 4 added by Stats. 1979, Ch. 1043. )

    Verify source ↗

    Contracts under Section 50765 must include specified terms about payments, rents, occupancy, reports, enforcement, liens, and long-term affordability.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 4. Contracts for Development and Construction by Local Housing Authorities [50765 - 50768] ( Article 4 added by Stats. 1979, Ch. 1043. ) ## 50766. Each contract pursuant to Section 50765 shall contain at least the following provisions: (a) The timing, amount, and terms of payments to be provided under this article, including specific items to be covered by such payments. (b) A description of the way in which the payments will be used to provide affordable rents to eligible households occupying dwelling units within the rental housing development. (c) A description of the rental housing development, projected rent levels for all units and the number of units to be occupied by eligible households. (d) Restrictions on occupancy of dwelling units within the rental housing development, as necessary to meet the requirements of Sections 50736 and 50739. (e) A requirement that prevailing wage rates be paid with respect to construction of the rental housing development, and that all contractors and subcontractors use affirmative action in hiring. (f) A requirement for periodic reports by the housing authority, which shall at a minimum include information on the fiscal condition of the rental housing development, the maintenance of such development, and the number of units occupied by eligible households. (g) Provisions sufficient to ensure that assisted units shall be available to or occupied by eligible households for a period of not less than 30 years. (h) A provision which specifies the conditions under which the department and any intended beneficiary may enforce the contract. (i) A provision that failure to operate the assisted units in accordance with the regulatory agreement shall be deemed a violation of the regulatory agreement or deed of trust, as the case may be. In the alternative, or in addition, the contract may contain a lien on the rental housing development for the purpose of securing performance of the contract. Such lien shall include a legal description of the assisted real property which is subject to the lien and shall specify the duration of the lien on the assisted property. (j) Provisions necessary for the administration, disbursement, and protection of annuity fund payments including provisions specifying the conditions under which the department may recover or reallocate all or any part of such payments for the benefit of eligible households in additional or existing assisted units. (k) Provisions governing the recovery and reallocation by the department of rent revenues derived by the sponsor from the assisted units, which are not necessary to defray the costs of operation attributable to such units. Such revenues shall be handled by the department in the same manner as annuity payments recovered pursuant to subdivision (j). ( l) Authorization for the local housing authority to fix and alter rents pursuant to the provisions of subdivision (a) of Section 50767. (m) Any other provisions necessary to carry out the purposes and exercise the powers granted by this chapter. Any contract pursuant to Section 50765 containing a lien shall be recorded or referenced in a document recorded in the county in which the real property subject to the lien is located and shall be indexed by the recorder in the grantor index to the name of the local housing authority and in the grantee index to the name of the State of California. (Amended by Stats. 1980, Ch. 1154.)
  161. 50767.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 4. Contracts for Development and Construction by Local Housing Authorities [50765 - 50768] ( Article 4 added by Stats. 1979, Ch. 1043. )

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    For assisted units under this article, the local housing authority must get department approval and ensure affordable rents, annual tenant income recertification, timely rent adjustments after recertification, fair tenant-selection procedures, and regulated tenant occupancy terms.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 4. Contracts for Development and Construction by Local Housing Authorities [50765 - 50768] ( Article 4 added by Stats. 1979, Ch. 1043. ) ## 50767. With respect to assisted units developed and constructed pursuant to this article, the local housing authority shall, with the approval of the department: (a) Ensure the provision of affordable rents. (b) Ensure that the incomes of tenants are recertified annually. (c) Ensure that upon income recertification rents are adjusted and take effect within 30 days of adjustment. (d) Determine standards for and ensure fair procedures for, the selection of tenants by housing sponsors or other management designated pursuant to Section 50758 to ensure occupancy by eligible households consistent with the requirements of Sections 50736 and 50739. (e) Regulate the terms of tenant occupancy agreements. (Repealed and added by Stats. 1987, Ch. 1034, Sec. 8.)
  162. 50768.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 4. Contracts for Development and Construction by Local Housing Authorities [50765 - 50768] ( Article 4 added by Stats. 1979, Ch. 1043. )

    Verify source ↗

    The department must monitor the operation of the rental housing development to ensure compliance with grant conditions, contract obligations, and this chapter’s provisions and regulations.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 4. Contracts for Development and Construction by Local Housing Authorities [50765 - 50768] ( Article 4 added by Stats. 1979, Ch. 1043. ) ## 50768. The department shall monitor the operation at the rental housing development constructed pursuant to this article, to ensure compliance with grant conditions, contract obligations, and the provisions of this chapter and regulations adopted pursuant to this chapter. (Added by Stats. 1979, Ch. 1043.)
  163. 50770.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 5. Reserve Account [50770- 50770.] ( Heading of Article 5 amended by Stats. 1980, Ch. 1154. )

    Verify source ↗

    The department may use reserve-account funds for debt service payments, foreclosure bids, or assistance to rental housing developments, but only under stated default, necessity, and affordability conditions.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 5. Reserve Account [50770- 50770.] ( Heading of Article 5 amended by Stats. 1980, Ch. 1154. ) ## 50770. Four percent of the funds appropriated for the purposes of this chapter shall be set aside in a Management Reserve Account in the Rental Housing Construction Fund, which is hereby created. All interest or other increment resulting from investment or deposit of moneys in the account shall be deposited in the account. The department may expend moneys in the account to provide debt service payments or bid at a foreclosure sale, where a loan that is superior to the loan of the department is in default, in order to protect the security or regulatory interest of the department against default, so that, to the extent feasible, the rental charges to eligible households remain affordable. The department may provide assistance from the fund to a rental housing development if the agency or local finance entity affirmatively demonstrates that assistance is necessary to avoid jeopardizing the fiscal integrity of the rental housing development while maintaining affordable rents and if the department determines that assistance is necessary to offset unavoidable increases in costs to protect the security or regulatory interests of the department. (Amended by Stats. 1987, Ch. 1034, Sec. 9.)
  164. 50771.1.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 6. Program Requirements [50771.1 - 50771.3] ( Article 6 added by Stats. 1988, Ch. 30, Sec. 4. )

    Verify source ↗

    This section sets special rules for rental housing construction loans, application ranking, loan terms, rent limits, reserve funds, and regulatory agreements.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 6. Program Requirements [50771.1 - 50771.3] ( Article 6 added by Stats. 1988, Ch. 30, Sec. 4. ) ## 50771.1. For the purpose of providing deferred payment loans pursuant to this chapter for the development costs of rental housing developments utilizing moneys transferred to the Rental Housing Construction Fund pursuant to paragraph (1) of subdivision (a) of Section 53130 and paragraph (1) of subdivision (b) of Section 53130, the following special provisions shall prevail over conflicting provisions of this chapter: (a) (1) Applications for fund commitments shall be accepted by the department at any time. Fund commitments shall be based on a ranking of applications which shall occur at least once every three months until there are insufficient funds available to make commitments according to the ranking. In making this ranking, notwithstanding Sections 50737 and 50737.5, priority shall be given to projects which (A) maximize program benefits to eligible households, as defined in Section 50105 with the lowest incomes, (B) maximize program benefits to eligible households needing assisted units with three or more bedrooms, (C) are located in areas where the housing need is great, as determined by the department, taking into consideration, among other factors, variations in local development costs, low vacancy rates, high market rents, and long waiting lists for subsidized housing, (D) complement the implementation of an existing housing program, (E) maximize private, local, and other funding sources, (F) are economically feasible given local market conditions, and (G) maximize the number of units which can be assisted under the program, relative to variances in market conditions for the development of rental housing. Subparagraph (B) above does not apply to applications for residential hotels. (2) All loans shall be made directly from the department to the housing sponsor which applies to the department and will own, operate, and develop the housing development. The sponsor shall notify the local legislative body of its loan application prior to the funding award. (3) A sponsor may apply for awards for one or more rental housing developments. (4) The department shall evaluate the capability of the sponsor to own, construct, and manage the rental housing development. (b) (1) A rental housing development may utilize any combination of federal, state, local, and private financial resources necessary to make the development affordable, for the term of the state’s regulatory agreement, to eligible households. (2) (A) Loans to sponsors of housing developments shall be for a term not less than 40 years. After 30 years from the time the loan is made, the sponsor shall begin to repay the loan in accordance with a payment plan, as determined by the department, that will maintain the rents affordable to eligible households. (B) The term of the loan and the time for repayment may be extended by the department for additional terms as long as the rental housing development is operated in a manner consistent with the regulatory agreement and the sponsor requires an extension in order to continue to operate in a manner consistent with this chapter. Each extension shall be for a period of not less than 10 years and the total term of the revised loan shall not exceed 55 years. (C) Loans provided under this section shall bear an interest rate of 3 percent per annum. The department, by regulations, shall establish the conditions under which the interest may be reduced, waived, or deferred. At the request of the sponsor, the department may charge a higher interest rate. (3) (A) Development costs shall include reasonable consulting fees, and other reasonable administrative expenses in connection with the planning and execution of the rental housing development, as determined by the department, and initial funding of emergency reserves, as required by the department. The development costs also shall further include the acquisition and completion of construction of a rental housing development where construction has halted due to financial distress, as determined by the department. (B) A rental housing development shall include residential hotels, as defined in subdivision (b) of Section 50669, and group homes. (4) The sponsor shall maintain an emergency reserve to defray unanticipated cost increases or revenue shortfalls to maintain the fiscal integrity of the rental housing development and maintain affordable rents for eligible households. (5) The department, by regulation, shall specify minimum equity requirements not to exceed 10 percent of total project development costs. This requirement does not apply to proposed projects where assisted units are less than 80 percent of the total number of units. The department, by regulation, shall define “equity” for the purposes of this section, which shall include, but shall not be limited to, cash, real property, items of personal property having monetary value contributed by the sponsor and applied toward project costs, and the capitalized value of any exemption from local taxes on real property. (6) The department, by regulation, may specify per-unit loan limits and circumstances under which it may grant exceptions to, or variances from, these limits. The loan amount shall not exceed either 100 percent of the development costs attributable to the assisted units or the amount necessary to maintain affordable rents for the assisted units, as determined by the department. (c) (1) Initial rents, including a reasonable utility allowance, for assisted units reserved for occupancy by very low income households, and for all assisted units in residential hotels and group homes, shall not exceed 30 percent of 35 percent of area median income, adjusted by unit size. Initial rents, including a reasonable utility allowance, for assisted units reserved for occupancy by lower income households shall not exceed 30 percent of 60 percent of area median income, adjusted by unit size. The department, by regulation, shall specify the method for adjusting rents by unit size and for computing allowances for utility costs. (2) The department shall develop an inflation index reflecting the annual anticipated changes in rental housing development operating costs from a base year. The inflation index shall be used by the sponsor to adjust the initial rent of each unit occupied by an eligible household to determine the annual rent. Any sponsor may appeal to the department for a greater adjustment in rents necessary to ensure the fiscal integrity of the housing development. If the department does not respond within 60 days, the request shall be deemed approved. A 30-day written notice shall be given to each eligible household prior to an adjustment in the amount of rent. (3) Upon prior written approval by the department, a sponsor may set income limits for occupancy of assisted units designated for lower income households at a level below the limit specified in Section 50079.5. If a tenant’s income exceeds this income limit established by the sponsor, but does not exceed the limit specified in Section 50079.5, that fact alone shall neither constitute cause for the tenant’s eviction, nor be a violation of the sponsor’s loan agreement. (4) The monthly rent including a reasonable utility allowance may be reduced by the sponsor, to make the units affordable to the lowest income household possible as long as the project remains economically feasible. (5) (A) If a household’s income exceeds the standard pursuant to which it was accepted for tenancy, that fact alone shall neither constitute cause for the household’s immediate eviction nor be a violation of the owner’s or sponsor’s loan agreement. (B) If, after annual income certification, an assisted unit becomes occupied by a household which does not meet the income limits specified in Section 50105, that household shall be permitted to continue to occupy that assisted unit. When there is a vacancy in an assisted unit formerly occupied by a household which meets the income limits specified in Section 50079.5, that unit shall be rented to a household which meets the income limits specified in Section 50105. (C) If, after annual income certification, an assisted unit becomes occupied by a household which does not meet the income limits specified in Section 50079.5, that household shall be provided a six-month notice of termination. That period may be extended for an additional six-month period in high cost rental areas with low vacancy rates, as determined by the department. That household shall have first right of refusal to occupy any nonassisted unit which becomes available during both periods. (D) In the case of limited equity housing cooperatives, the provisions of subparagraph (C) shall apply, except that tenants whose incomes, upon recertification, exceed the limit specified in Section 50079.5 shall not be required to vacate their units. Instead, and upon six months’ notice, these tenants shall be required to pay rent in an amount equal to the market rate rent for comparable units, as determined by the department. When a tenant’s income exceeds the limit specified in Section 50079.5, the next available membership share for occupancy in a comparable unit shall be sold to a household with an income at or below this limit. (d) (1) The department may contract with the sponsor to pay all or a portion of the development costs incurred in connection with the construction of a rental housing development consistent with the requirements of this article. The department shall include such provisions in the contract as are necessary to ensure compliance with the requirements of the program. Any rental housing development assisted pursuant to this article shall be governed by a regulatory agreement between the sponsor and the department. The regulatory agreement shall be recorded or referenced in a recorded document in the office of the county recorder for the county in which the rental housing development is located. The regulatory agreement shall contain at least all of the following: (A) Restrictions on occupancy of dwelling units within the rental housing development, to meet the requirements of Section 50736 and this section for a period of at least 40 years. (B) Provisions governing standards for tenant selection to ensure occupancy by eligible households of very low and low income for the term of the regulatory agreement. (C) Provisions governing occupancy standards and rental agreements. (D) Provisions for setting initial rents and rent increases consistent with paragraph (1) of subdivision (c) of Section 50771.1. Prior to the time any rent increase is effective, the sponsor shall notify every affected tenant, in writing, of the availability of informal meetings with the sponsor to review the proposed rent increase. Each tenant, upon request, shall be provided the information submitted to the department pursuant to this subdivision. (E) A requirement that the sponsor submit to the department for review and approval, annual operating budgets and periodic reports, which shall at a minimum include information on the fiscal condition of the rental housing development, the maintenance of the development, and the number of units occupied by eligible households. (F) Provisions limiting distribution of sponsor’s earnings as specified in paragraph (4). (G) A provision which specifies the conditions under which the department and any intended beneficiary may enforce the regulatory agreement. (H) Any other provisions necessary to carry out the purposes and to exercise the powers granted by this chapter. The regulatory agreement shall be recorded against the property and shall be deemed a covenant running with the land and shall be binding upon the sponsor and any and all successors in interest in case of sale or transfer of the rental housing development for the original term of the loan, and any extensions thereof, regardless of any prepayment of the loan. The department, by regulation, may require such other documents, instruments, and agreements as are reasonable and necessary to ensure compliance with the program requirements. (2) The contract for the award of development funds to be provided as construction financing for a rental housing development shall contain at a minimum the provisions specified in Section 50766, excluding therefor subdivisions (j), (k), and (l). (3) All state contracts and regulatory or development agreements subject to this article shall contain provisions requiring that assisted units remain affordable to eligible households for 40 years plus any permitted extension. (4) A nonprofit sponsor, other than a governmental agency, may maintain a debt service coverage ratio of not more than 115 percent and distribute earnings from both assisted and nonassisted units in an amount no greater than 8 percent of the nonprofit sponsor’s actual investment in the rental housing development. A for-profit sponsor may choose between the following options: (A) It may distribute earnings from both assisted and nonassisted units in an annual amount no greater than 8 percent of its actual investment in the rental housing development. (B) It may forego distribution of earnings from assisted units, and not be subject to any limitation on the amount of distributions it receives from nonassisted units. (e) Where loans will be used in conjunction with federal and other state housing assistance or tax credit and a conflict exists between the other state and federal program requirements and this chapter regarding the test for determining a qualified low-income housing project, the requirements of the Rental Housing Construction Program may be waived only to the extent necessary to permit the federal or other state financial participation or eligibility for tax credits. (f) (1) The department shall establish specific minimum development criteria to (A) ensure that the useful life of the rental housing development is at least equal to the term of the loan; (B) enhance the physical security of the tenants; (C) minimize long-term operating and maintenance costs; and (D) ensure that project design features and amenities are modest. (2) No energy standards shall be required of any housing development in excess of the energy standards required for housing developments financed by conventional funding sources. (3) The department shall employ a licensed architect or an experienced building inspector, or both, to review plans, inspect, and monitor construction of, rental housing developments. (g) A sponsor of a housing development may receive payments from the annuity fund pursuant to Section 50738 to the extent that there are unobligated moneys available in the fund. (h) The department shall establish an emergency reserve account in the Rental Housing Construction Fund established pursuant to Section 50740 equal to 3 percent of the moneys transferred to that fund pursuant to Section 53130. Moneys transferred to the fund pursuant to Section 53130 shall not be subject to the requirements of Section 50770 or be used to ensure economic feasibility or enable construction pursuant to Section 50738. Notwithstanding the provisions of Sections 53130 and 53133, the department may expend moneys in the account to defray unanticipated cost increases or revenue shortfalls not covered by a rental housing development emergency reserve to the extent necessary to maintain the fiscal integrity of a rental housing development and maintain affordable rents for eligible households. Notwithstanding the provisions of Section 53130 which limit the use of allocated proceeds with respect to project operating costs, and Section 53133, the department may use any amounts available in the account for the purpose of curing or avoiding a sponsor’s defaults on the terms of any loan or other obligation which will jeopardize the financial integrity of a rental housing development or the department’s security in the rental housing development. The payment or advance of any funds by the department pursuant to this subdivision shall be solely within the discretion of the department, and no sponsor shall be entitled to, or have any right to, payment of these funds. Funds advanced pursuant to this subdivision shall be added to the loan amount secured by the deed of trust and shall be payable to the department upon demand. (Amended by Stats. 2011, Ch. 239, Sec. 12. (SB 562) Effective January 1, 2012.)
  165. 50771.2.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 6. Program Requirements [50771.1 - 50771.3] ( Article 6 added by Stats. 1988, Ch. 30, Sec. 4. )

    Verify source ↗

    The department may allow prepayment of a sponsor’s loan based on net cash flow, and it must develop a prepayment plan that protects affordable rents and the project’s financial integrity.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 6. Program Requirements [50771.1 - 50771.3] ( Article 6 added by Stats. 1988, Ch. 30, Sec. 4. ) ## 50771.2. (a) As an alternative to the loan provisions of paragraph (2) of subdivision (b) of Section 50771.1 and the regulatory agreement provisions of subdivision (d) of Section 50771.1, the department may permit the prepayment of a sponsor’s loan anytime on the basis of net cash flow. (b) The department shall develop a prepayment plan in conjunction with the sponsor which will ensure the maintenance of affordable rents and the fiscal integrity of the rental housing development. As an incentive to encourage the prepayment of loans, the department may permit the sponsor to retain one-half of the net cash flow. The department shall determine the method for calculating net cash flow, which may include a factor for excess debt service coverage or a return on cash investment to the sponsor. (Added by Stats. 1988, Ch. 30, Sec. 4. Effective March 14, 1988.)
  166. 50771.3.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 6. Program Requirements [50771.1 - 50771.3] ( Article 6 added by Stats. 1988, Ch. 30, Sec. 4. )

    Verify source ↗

    The department may adopt, amend, or repeal emergency regulations to implement this chapter for certain loans, and that authority lasts only until June 30, 1992.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 9. Rental Housing Construction Program [50735 - 50771.3] ( Chapter 9 added by Stats. 1979, Ch. 1043. ) ## ARTICLE 6. Program Requirements [50771.1 - 50771.3] ( Article 6 added by Stats. 1988, Ch. 30, Sec. 4. ) ## 50771.3. The department may adopt, amend, or repeal emergency regulations to implement this chapter with respect to loans made with funds allocated pursuant to Section 53130. The adoption, amendment, or repeal of these regulations shall be conclusively presumed to be necessary for the immediate preservation of the public peace, health, safety, or general welfare within the meaning or purposes of Section 11346.1 of the Government Code. This authority shall remain in effect only until June 30, 1992. (Added by Stats. 1991, Ch. 100, Sec. 4. Effective July 1, 1991.)
  167. 50775.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 10. Homeownership Assistance [50775 - 50778] ( Chapter 10 added by Stats. 1979, Ch. 1043. )

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    The department may provide homeownership financial assistance to eligible households and may set maximum purchase prices, but the assistance cannot exceed 49% of the purchase price or reduce the buyer’s downpayment below 3%.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 10. Homeownership Assistance [50775 - 50778] ( Chapter 10 added by Stats. 1979, Ch. 1043. ) ## 50775. (a) The department may provide financial assistance, in accordance with this chapter, to households residing in rental housing, or a mobilehome park in which those households rent spaces, which is to be converted to condominium ownership, planned development ownership, as defined in Section 11003 of the Business and Professions Code, or ownership by a stock cooperative corporation, as defined in Section 11003.2 of the Business and Professions Code, for the purpose of assisting those households in acquiring a dwelling unit or a share in the stock cooperative corporation which entitles those households to occupancy of a dwelling unit. (b) The department may also provide financial assistance for the purpose of assisting households to purchase a mobilehome, as defined in Section 18008, which is located outside a mobilehome park, as defined in Section 18214, and which is affixed to a permanent foundation system. (c) The financial assistance provided pursuant to subdivision (a) or (b) shall not exceed 49 percent of the purchase price paid by the household for the dwelling unit, mobilehome, or share in the stock cooperative, and in no event shall that assistance be used to reduce the purchaser’s downpayment below 3 percent of the total purchase price. (d) The department may establish maximum purchase prices for such units, mobilehomes, or shares. (e) Eligibility for that financial assistance shall be limited to households which meet all of the following conditions: (1) Their incomes are no greater than the median for the county. (2) The households do not currently own residential property and have not owned any residential property, other than a mobilehome not affixed to a permanent foundation, for at least three years. (3) The households have not previously received any assistance pursuant to this chapter. (4) The households, without financial assistance pursuant to this section, would be unable to acquire a dwelling unit, mobilehome, or a share in a stock cooperative. (f) As used in this chapter, “dwelling unit” means the dwelling unit that the household occupies, or another dwelling unit not being purchased by its existing tenant within the same rental housing development or mobilehome park. “Dwelling unit” includes a space in a mobilehome park, as defined in Section 18214, and includes a mobilehome rented with the space. “Dwelling unit” also includes factory-built housing, as defined by Section 19971, whether the household occupied that factory-built housing or other factory-built housing in the same rental housing development or mobilehome park. (Amended by Stats. 1984, Ch. 1406, Sec. 4.5. Effective September 26, 1984.)
  168. 50775.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 10. Homeownership Assistance [50775 - 50778] ( Chapter 10 added by Stats. 1979, Ch. 1043. )

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    The department may provide disaster-relief financial assistance to displaced Anaheim residents, with special rules and an income cap.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 10. Homeownership Assistance [50775 - 50778] ( Chapter 10 added by Stats. 1979, Ch. 1043. ) ## 50775.5. For the purposes of disaster relief to those households displaced as a result of the Anaheim fire resulting in a state of emergency proclaimed on April 23, 1982, by the Governor, pursuant to Section 8625 of the Government Code, financial assistance may be provided to displaced Anaheim residents as prescribed in this chapter, consistent with the following exceptions: (a) Condominium, planned development, as defined in Section 11003 of the Business and Professions Code, or stock cooperative units to be purchased with state financial assistance may include existing condominium, planned development, or cooperative units. (b) Households receiving state assistance to purchase condominium, planned development, or cooperative units need not have resided in such units prior to the purchase thereof. (c) Eligibility for state financial assistance shall be limited to households which have incomes no greater than 150 percent of the median for the county. (d) The housing assisted by this section shall not be governed by the percentage requirements in Section 50778, nor shall units assisted pursuant to this section be used in determining compliance with the percentage requirements contained in Section 50778. (e) Any rule, policy, or standard of general application employed by the department in implementing the provisions of this section shall not be subject to the requirements of the Administrative Procedure Act, Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. Any repayment of funds originating from the Homeownership Assistance Fund allocated pursuant to this section shall be utilized by the department pursuant to this chapter. The provisions of Sections 14 and 15 of Chapter 312 of the Statutes of 1982 shall be applicable to this section as amended by the Statutes of 1983. (Amended by Stats. 1983, Ch. 13, Sec. 2. Effective April 7, 1983.)
  169. 50776.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 10. Homeownership Assistance [50775 - 50778] ( Chapter 10 added by Stats. 1979, Ch. 1043. )

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    The department may provide homeownership financial assistance directly or through certified partners, but assistance contracts must require repayment on sale or transfer and other specified protections.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 10. Homeownership Assistance [50775 - 50778] ( Chapter 10 added by Stats. 1979, Ch. 1043. ) ## 50776. (a) Financial assistance pursuant to Section 50775 may be provided directly by the department or through a governmental agency or mortgage lender certified by the department to participate in the program authorized by Section 50775. The mortgage lender may be a bank or trust company, mortgage banker, federal-chartered or state-chartered savings and loan association, or other financial institution, including a credit union, deemed capable by the department, pursuant to regulations adopted in accordance with the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, of providing services or mortgage loans in conjunction with dwelling units, mobilehomes, or shares in stock cooperatives for which the financial assistance is provided. (b) The department, governmental agency, or mortgage lender shall enter into a contract with each recipient of financial assistance under Section 50775, requiring the recipient, upon sale or transfer of the dwelling unit, mobilehome, or share for which the assistance was provided, to pay to the department an amount proportionate to the percentage of the initial purchase price which was paid with financial assistance provided under Section 50775. The contract may provide that the department shall not receive less than the amount of assistance provided under Section 50775. However, if the recipient has made improvements to the dwelling unit or mobilehome, as the case may be, the increase in the fair market value of the unit or mobilehome arising from the improvement shall be added to the fair market value of the recipient’s share in that unit or mobilehome immediately before these improvements are made, to determine the recipient’s relative financial participation for the purpose of calculating the amount to be paid to the department. Improvements which may be added to the purchase price for this purpose shall be defined by regulations of the department, adopted in accordance with Chapter 3.5 (commencing with Section 11430) of Part 1 of Division 3 of Title 2 of the Government Code, and shall be limited to substantial repairs, renovations, or additions undertaken with respect to the dwelling unit or mobilehome assisted, which increase the value of the dwelling unit or mobilehome, or which bring that dwelling unit or mobilehome into conformance with local or state building or housing standards. (c) Any contract pursuant to this section may permit the recipient of financial assistance to terminate the contract upon payment to the department of the amount which would be owed the department if the dwelling unit, mobilehome or share were sold at fair market value at the time of the repayment. These contracts, subject to regulations adopted by the department, may also permit partial repayments prior to sale or transfer. (d) Contracts pursuant to this section shall require payment of the full amount of property taxes, insurance, and costs of normal maintenance by the household receiving assistance pursuant to Section 50775, and compliance with restrictions on occupancy, including owner-occupancy, as required by the department. Every contract required by this section shall be secured by a deed of trust, security, or other interest determined adequate by the department to protect the interests of the state. These deeds of trust, security, or other instruments shall be recorded in the office of the county recorder of the county in which the dwelling unit is located. (e) The contract shall require the recipient of financial assistance to comply with all terms and conditions of, and to make all payments required by, any instrument secured by the dwelling unit. (f) (1) The department may set aside or use funds that are made available pursuant to this chapter for the purposes of curing or averting a default on the terms of any loan or other obligation by the recipient of financial assistance, or bidding at any foreclosure sale, where the default or foreclosure sale would jeopardize the department’s security in the dwelling unit assisted pursuant to this chapter. (2) The department may set aside or use funds made available pursuant to this chapter to repair or maintain any dwelling unit assisted pursuant to this chapter which was acquired to protect the department’s security interest in the dwelling unit. (3) The payment or advance of funds by the department pursuant to this subdivision shall be exclusively within the department’s discretion, and no person shall be deemed to have any entitlement to the payment or advance of those funds. The amount of any funds expended by the department for purposes of curing or averting a default shall be added to any loan amount secured by the deed of trust and shall be payable to the department upon demand. (Amended by Stats. 1992, Ch. 1022, Sec. 3. Effective January 1, 1993.)
  170. 50777.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 10. Homeownership Assistance [50775 - 50778] ( Chapter 10 added by Stats. 1979, Ch. 1043. )

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    The department may provide financial assistance for certain mobilehome park and stock cooperative purchases, subject to conditions and repayment rules.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 10. Homeownership Assistance [50775 - 50778] ( Chapter 10 added by Stats. 1979, Ch. 1043. ) ## 50777. (a) The department, directly or through a government agency or mortgage lender, and subject to the provisions of subdivision (a) of Section 50776, may provide financial assistance to nonprofit corporations and stock cooperative corporations to enable these corporations to develop or purchase a mobilehome park, ownership of which will be transferred within a reasonable time to shareholders or owners who are persons and families of low or moderate income. Such financial assistance shall not exceed 49 percent of the purchase price or development costs of the mobilehome park which may be directly attributed to the number or ratio of persons or families with incomes, not in excess of the median income of the county, who will occupy the park. Assistance pursuant to this subdivision shall not render a person or household ineligible for assistance pursuant to subdivision (b). (b) The department, directly or through a governmental agency or mortgage lender, and subject to the provisions of subdivision (a) of Section 50776, may provide financial assistance to persons or families with incomes not in excess of the median income for the county in which the mobilehome park is located to enable such persons or families to purchase a share in a stock cooperative corporation which owns a mobilehome park. In order to be eligible for assistance pursuant to this section, these persons and families in addition shall be limited to households (1) which do not currently own residential property and have not owned any residential property, other than a mobilehome not affixed to a permanent foundation, for at least three years, (2) which have not previously received any assistance pursuant to this chapter and (3) which, without financial assistance pursuant to this section, would be unable to acquire a dwelling unit, mobilehome, or a share in a stock cooperative. Such assistance shall not exceed 49 percent of the purchase price paid by the household for the share in the stock cooperative. The department may establish a maximum purchase price for such shares. Upon sale or transfer of a share the purchase of which is assisted pursuant to this section, the shareholder shall pay to the department an amount proportionate to the percentage of the initial purchase price which was paid with financial assistance provided by the department pursuant to this section, as adjusted for improvements made by the corporation or shareholder. The contract for assistance may require that the department not receive in repayment less than the amount of assistance originally provided. The adjustment for improvements shall be made as set forth in Section 50776. (c) In no event shall the assistance provided pursuant to subdivision (a) or (b) be used to reduce the purchaser’s downpayment below 3 percent of the total purchase price. (d) Upon sale or transfer of a mobilehome park assisted pursuant to this section, the corporation which owns such park shall pay to the department an amount proportionate to the percentage of the initial purchase price or development cost which was paid by the department pursuant to this section, as adjusted for improvements made by the corporation. The contract for assistance may require that the department not receive in repayment less than the amount of assistance originally provided. The adjustment for improvements shall be made as set forth in Section 50776. For this purpose “improvements” shall be defined by regulations of the department, adopted in accordance with the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and shall be limited to substantial repairs, renovations or additions which increase the value of the mobilehome park or of the shares of the corporation or which bring such mobilehome parks or mobilehomes within mobilehome parks assisted pursuant to this section into conformance with local or state building or housing standards. (e) Financial assistance shall be provided pursuant to a contract which requires, among other things, restrictions on occupancy, including owner occupancy maintenance and payment of the full amount of taxes and insurance by the shareholders. Every contract required by this section shall be secured by a deed of trust, security, or other interest determined adequate by the department to protect the interests of the state. The deeds of trust, security, or other instruments shall be recorded in the office of the county recorder of the county in which such mobilehome park is located. (f) Any contract pursuant to this section may permit the recipient of financial assistance to terminate the contract required by this section upon payment to the department of the amount which would be owed to the department if the mobilehome park or share in a stock cooperative, as the case may be, were sold at fair market value at the time of such repayment. These contracts, subject to regulations adopted by the department, may also permit partial repayments prior to sale or transfer. (g) Contracts pursuant to this section shall also require that the recipient comply with all terms and conditions of, and make all payments required by, any instrument secured by the park or shares in the stock cooperative. (Amended by Stats. 1982, Ch. 1020, Sec. 16.)
  171. 50778.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 10. Homeownership Assistance [50775 - 50778] ( Chapter 10 added by Stats. 1979, Ch. 1043. )

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    The section creates the Homeownership Assistance Fund, directs how money in it must be used, limits transfers out of it, and lets the department retain or move funds in specified ways.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 10. Homeownership Assistance [50775 - 50778] ( Chapter 10 added by Stats. 1979, Ch. 1043. ) ## 50778. (a) The Homeownership Assistance Fund is hereby created in the State Treasury and, notwithstanding Section 13340 of the Government Code, is continually appropriated to the department for purposes of this chapter, including Section 50775.5, and for the purposes of Section 50745.1. Any moneys received by the department pursuant to this chapter shall be deposited in such fund. All interest or other increment resulting from investment or deposit of moneys in the fund shall be deposited in the fund, notwithstanding Section 16305.7 of the Government Code. Moneys in the fund shall not be subject to transfer to any other fund pursuant to any provisions of Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, excepting the Surplus Money Investment Fund. (b) Not less than 50 percent of the moneys in the fund shall be used to assist lower income households. Not less than 20 percent of the units assisted shall be in rural areas. (c) Funds available for the purpose of this chapter shall be allocated by the department throughout the state in accordance with identified housing needs. (d) (1) Notwithstanding any other provision of law, commencing on July 1, 1992, the department shall not be required to make loans pursuant to this chapter. (2) The department may retain within the fund moneys necessary for administration and monitoring of loans made prior to July 1, 1992, to make loans pursuant to loan commitments made prior to July 1, 1992. The department may also retain reserves for curing or averting a default that would jeopardize any security interest of the department. (3) Notwithstanding any other provision of law, on or after July 1, 1996, the unencumbered fund balance and reserves shall be transferred to the Housing Rehabilitation Loan Fund. Subsequent income and resources shall be deposited to the Housing Rehabilitation Loan Fund. (Amended by Stats. 1996, Ch. 201, Sec. 22. Effective July 22, 1996.)
  172. 50780.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. )

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    This section says the Legislature wants to support conversion of mobilehome parks to resident, nonprofit, or local public entity ownership.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. ) ## 50780. (a) The Legislature finds and declares as follows: (1) That manufactured housing and mobilehome parks provide a significant source of homeownership for California residents, but increasing costs of mobilehome park development and construction, combined with the costs of manufactured housing, the costs of financing and operating these parks, the low vacancy rates, and the pressures to convert mobilehome parks to other uses increasingly render mobilehome park living unaffordable, particularly to those residents most in need of affordable housing. (2) That state government can play a role in addressing the problems confronted by mobilehome park residents with available financing that makes it possible for mobilehome park residents to acquire the mobilehome parks in which they reside and convert them to resident ownership. (3) That a significant number of older mobilehome parks exist in California, the residents of which may collectively lack the experience or other qualifications necessary to successfully own and operate their parks; that these parks provide low-cost housing for their residents that would be difficult to replace if the parks were converted to other uses; and that these parks are more likely than other parks to be threatened by physical deterioration or conversion to other uses. (b) Therefore, it is the intent of the Legislature, in enacting this chapter, to encourage and facilitate the conversion of mobilehome parks to resident ownership or ownership by qualified nonprofit housing sponsors or by local public entities, to protect low-income mobilehome park residents from both physical and economic displacement, to obtain a high level of private and other public financing for mobilehome park conversions, and to help establish acceptance for resident-owned, nonprofit-owned, and government-owned mobilehome parks in the private market. (Amended by Stats. 2022, Ch. 70, Sec. 24. (SB 197) Effective June 30, 2022.)
  173. 50781.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. )

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    This section defines key terms for the Mobilehome Park Purchase Fund chapter and sets a few interpretation rules for the department and resident organizations.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. ) ## 50781. Unless the context otherwise requires, the following definitions given in this section shall control construction of this chapter: (a) “Affordable” means that, where feasible, low-income residents should not pay more than 30 percent of their monthly income for housing costs. (b) “Costs” includes all of the following: (1) The cost of the acquisition, conversion, rehabilitation, reconstruction, and replacement of a mobilehome park, including costs for planning and processing, increasing space capacity, and any expenditures required by a governmental agency or lender for the project. Costs may also include funds to ensure the long-term sustainability of the mobilehome park. (2) If the condition of a mobilehome park jeopardizes the health and safety of its residents or the mobilehome park has had its permit to operate suspended or revoked, or both, the cost of repairs necessary to restore the permit to operate or to restore the minimum health and safety standards in the park, including on-site and off-site work, as needed. (3) In the case of individual mobilehome owners: (A) The cost to repair, correct health and safety deficiencies, make accessibility and energy efficiency upgrades, or replace the mobilehome. (B) In the case of individual mobilehomes or mobilehome spaces, the cost of an individual interest in the mobilehome park. (c) “Department” means the Department of Housing and Community Development. (d) “Fund” means the Mobilehome Park Rehabilitation and Purchase Fund created pursuant to Section 50782. (e) “Housing costs” means the total cost of owning, occupying, and maintaining a mobilehome and a lot or space in a mobilehome park. The department’s guidelines shall specify the factors included in these costs and may, for the purposes of calculating affordability, establish reasonable allowances. (f) “Individual interest in a mobilehome park” means any interest that is fee ownership or a lesser interest that entitles the holder to occupy a lot or space in a mobilehome park for a period of not less than either 15 years or the life of the holder. Individual interests in a mobilehome park include, but are not limited to, the following: (1) Ownership of a lot or space in a mobilehome park or subdivision. (2) A membership or shares in a stock cooperative, as defined in Section 11003.2 of the Business and Professions Code, or a limited equity housing cooperative, as defined in Section 817 of the Civil Code. (3) Membership in a nonprofit mutual benefit corporation that owns, operates, or owns and operates the mobilehome park. (g) “Low-income resident” means an individual or household that is a lower income household, as defined in Section 50079.5. However, personal assets shall not be considered in the calculation of income, except to the extent that they actually generate income. (h) “Low-income spaces” means those spaces in a mobilehome park operated by a resident organization, a qualified nonprofit housing sponsor, or a local public entity that are occupied by low-income residents. (i) “Mobilehome park” means a mobilehome park, as defined in Section 18214, or a manufactured home subdivision created by the conversion of a mobilehome park, as defined in Section 18214, including a senior park, to resident ownership or ownership by a qualified nonprofit housing sponsor or local public entity. (j) “Program” means the Manufactured Housing Opportunity and Revitalization (MORE) Program. (k) “Qualified nonprofit housing sponsor” means a nonprofit public benefit corporation, as defined in Part 2 (commencing with Section 5110) of Division 2 of the Corporations Code, that (1) has received its tax-exempt status under Section 501(c)(3) of the Internal Revenue Code, (2) is not affiliated with or controlled by a for-profit organization or individual, (3) has extensive experience with the development and operation of publicly subsidized affordable housing, (4) the department determines is qualified by experience and capability to own and operate a mobilehome park that provides housing affordable to low-income households, and (5) has formal arrangements for ensuring resident participation or input in the management of the park that may include, but not be limited to, membership on the board of directors. “Qualified nonprofit housing sponsor” also means a limited partnership where all of the general partners are nonprofit mutual or public benefit corporations that meet the requirements of paragraphs (1) to (5), inclusive. (l) “Resident organization” means a group of mobilehome park residents who have formed a nonprofit corporation, cooperative corporation, or other entity or organization for the purpose of acquiring the mobilehome park in which they reside and converting the mobilehome park to resident ownership. The membership of a resident organization shall include at least two-thirds of the households residing in the mobilehome park, or in each park of a combination of parks where the residents of two or more parks combine to form a single resident organization. The two-thirds of households in the resident organization at the time of funding the park need not be the same households that were residing in the park when the application for assistance was submitted to the department. A household’s membership in the resident organization when the application was submitted to the department shall not be a requirement for that household to receive a loan or assistance under this chapter. (m) “Resident ownership” means, depending on the context, either the ownership by a resident organization of an interest in a mobilehome park that entitles the resident organization to control the operations of the mobilehome park for a term of no less than 15 years, or the ownership of individual interests in a mobilehome park, or both. (Amended by Stats. 2022, Ch. 70, Sec. 25. (SB 197) Effective June 30, 2022.)
  174. 50782.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. )

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    This section creates the Mobilehome Park Rehabilitation and Purchase Fund, puts it in the State Treasury, and limits how the money may be used or transferred.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. ) ## 50782. (a) The Mobilehome Park Rehabilitation and Purchase Fund is hereby created in the State Treasury and, notwithstanding Section 13340 of the Government Code or any other law, is continuously appropriated to the department for the purpose of providing loans pursuant to this chapter and for related administrative costs of the department. Notwithstanding Section 16305.7 of the Government Code, any moneys received by the department pursuant to this chapter, and any other sources, repayments, interest, or new appropriations, shall be deposited in the fund. Except as described in subdivision (b), moneys in the fund shall not be subject to transfer to any other fund pursuant to any provision of Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, except the Surplus Money Investment Fund. The department may require the transfer of moneys in the fund to the Surplus Money Investment Fund for investment pursuant to Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government Code. Notwithstanding Section 16305.7 of the Government Code, all interest, dividends, and pecuniary gains from the investments shall accrue to the fund. (b) Notwithstanding any other law, the Controller may use the moneys in the fund for loans to the General Fund as provided in Sections 16310 and 16381 of the Government Code. However, interest shall be paid on all moneys lent to the General Fund from the fund. Interest payable shall be computed at a rate determined by the Pooled Money Investment Board to be the current earning rate of the fund from which lent. This subdivision does not authorize any transfer that will interfere with the carrying out of the object for which the fund was created. (Amended by Stats. 2022, Ch. 70, Sec. 26. (SB 197) Effective June 30, 2022.)
  175. 50783.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. )

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    The department may make loans from the fund for mobilehome park acquisition and related purposes, but the loans must meet specified interest-rate, cost-sharing, affordability, and borrower-condition limits.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. ) ## 50783. (a) (1) The department may make loans from the fund to resident organizations, qualified nonprofit housing sponsors, and local public entities for the purpose of financing mobilehome park acquisition, conversion, rehabilitation, reconstruction, and replacement. (2) Loans provided pursuant to this subdivision shall be for a duration, interest rate, and other terms, as determined by the department to be equitable and necessary. Interest rates shall be no more than 3 percent per annum, and the department shall allow loan repayments to be deferred for the full term of the loan, with principal and accumulated interest due and payable upon completion of the term of the loan. (3) Loans provided pursuant to this subdivision shall be for the minimum amount necessary to enable a resident organization, qualified nonprofit housing sponsor, or local public entity to acquire, convert, rehabilitate, reconstruct, or replace, or any combination thereof, the mobilehome park. To the extent possible, the loan amount shall not exceed 50 percent of the approved costs. However, the loan amount may be for up to 95 percent of the approved costs attributable to the low-income households in the park when approved by the department. (4) The department may grant approval to exceed 50 percent of the approved costs only if both of the following are demonstrated: (A) That the applicant has made an effort to secure additional funds from other sources and these funds are not available. (B) That the project would not be feasible, as determined by the department, without a waiver of the 50-percent financing limitation. (5) The total secured debt in a superior position to the department’s loan plus the department’s loan shall not exceed 115 percent of the value of the collateral securing the loan plus the costs related to the acquisition, conversion, rehabilitation, reconstruction, or replacement, or any combination thereof, of the project. (6) Funds provided pursuant to this subdivision may be used to finance the costs of reestablishing a mobilehome park, including relocating mobilehomes, to a more suitable site within the same jurisdiction if the department determines that the cost of the reestablishment, including any and all relocation costs to the affected households, is a more prudent expenditure of funds than the costs of needed or repetitive repairs to the existing park. Funds provided pursuant to this section shall not be used to relieve a park owner of any responsibility for covering the costs of mitigating the impacts of a park closure, as may be provided for by local ordinance or pursuant to Section 65863.7 or 66427.4 of the Government Code. (b) (1) Upon appropriation by the Legislature of funding for this purpose, the department may make loans from the fund to mobilehome parks to correct health and safety deficiencies and to mobilehome parks that have received a notice of revocation or suspension of their permit to operate or do not currently have a permit to operate in order to make repairs necessary to obtain or restore the permit to operate, including any on-site or off-site needs for utility connections or other essential health and safety purposes. Mobilehome parks owned by resident organizations, qualified nonprofit housing sponsors, local public entities, and private park owners shall be eligible for loans for the purposes of this subdivision. For purposes of this subdivision, the department may make loans from the fund to private mobilehome park owners if the owner owns only the mobilehome park for which they are applying for a loan and no other mobilehome park, and if the department determines both of the following: (A) The loan will have a substantial benefit for lower income residents. (B) The park owner does not have access to other financing or resources necessary to complete the repairs. (2) Loans provided pursuant to this subdivision shall be for the minimum amount necessary to restore the park to a condition meeting all health and safety standards and shall be subject to other requirements specified in the guidelines. (3) For loans made pursuant to this subdivision, the borrower shall agree to use restrictions, affordability restrictions, and displacement protections, as specified in the guidelines. (4) (A) Notwithstanding any applicable local rent control ordinances, parks shall be subject to affordability restrictions at a housing cost affordable to households making less than 80 percent of the area median income or where rents charged are 30 percent below market rents for a comparable unit, whichever results in the lowest monthly rents charged, for no less than 30 years, subject to the following park sizes: (i) Parks with 10 spaces or fewer shall not be subject to this paragraph, except that local rent control ordinances shall apply. (ii) Parks with 11 to 25 spaces shall restrict at least 10 percent of their units to affordable rents. (iii) Parks with 26 to 50 spaces shall restrict at least 25 percent of their units to affordable rents. (iv) Parks with 51 spaces or more shall restrict at least 50 percent of their units to affordable rents. (B) For loans made pursuant to this subdivision, the borrower shall agree to offer resident organizations, nonprofit housing sponsors, and public entities the option to purchase before any other purchasers for a period of no less than 60 calendar days. If no resident organizations, nonprofit housing sponsors, or public entities demonstrate a desire to purchase, then the borrower may sell the park without regard to this subparagraph. (C) The department shall specify borrower commitments in guidelines. In specifying borrower commitments, the department may vary borrower commitments for different levels of funding, and may require more rigorous standards for use and may restrict rents at deeper affordability levels to be commensurate with larger public investments. (5) Loans provided pursuant to this subdivision shall be for a duration, interest rate, and other terms, as determined by the department to be equitable and necessary, and shall not jeopardize the financial stability of the fund, as specified in the guidelines. (c) (1) The department may make loans from the fund to nonprofit corporations and local public entities for the purpose of financing the purchase or rehabilitation of mobilehomes, subject to affordability restrictions and other conditions, as specified in the guidelines. (2) Loans provided pursuant to this subdivision shall be for a duration, interest rate, and other terms, as determined by the department to be equitable and necessary, as specified in the guidelines. Any interest rate established pursuant to this paragraph shall not exceed 3 percent per annum. (d) If, six months following the issuance of the first notice of funding availability, 55 percent or more of funds remain uncommitted, the department may revise eligibility requirements in paragraph (1) of subdivision (b) by increasing the number of mobilehome parks a private park owner may own to no more than three. (Amended by Stats. 2023, Ch. 770, Sec. 19. (AB 1764) Effective January 1, 2024.)
  176. 50784.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. )

    Verify source ↗

    The department may make loans and grants from the fund for specified mobilehome housing purposes, including financing resident interests, repairs, accessibility upgrades, energy-efficiency upgrades, and replacements, subject to stated limits and guidelines.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. ) ## 50784. (a) The department may make loans from the fund to individual low-income residents of mobilehome parks to finance any individual interest in the mobilehome park. The purpose of providing loans pursuant to this section is to reduce the monthly housing costs for low-income residents to an affordable level. (1) Loans provided pursuant to this section shall be for a duration, interest rate, and other terms, as determined by the department to be equitable and necessary, and shall not jeopardize the financial stability of the fund, as specified in the guidelines. Any interest rate established pursuant to this paragraph shall not exceed 3 percent per annum. (2) The department shall establish flexible repayment terms for loans provided pursuant to this section to reduce the monthly housing costs for low-income residents to an affordable level, provided that the terms do not represent an unacceptable risk to the security of the fund. (3) Loans provided to low-income residents pursuant to this section shall be for the minimum amount necessary to reduce the borrower’s monthly housing costs to an affordable level. All of the following shall apply to loans to finance individual interests pursuant to this section: (A) To the extent possible, loan amounts shall not exceed 50 percent of the acquisition costs of the individual interests in the mobilehome parks. However, the loan amounts may be for up to 100 percent of the acquisition costs of the individual interests in the mobilehome parks when approved by the department. (B) The department may grant approval to exceed 50 percent of the acquisition costs of the individual interests only if both of the following are demonstrated: (i) That the low-income resident has made an effort to secure additional funding from other sources and these funds are not available. (ii) That the low-income resident would be unable to purchase an individual interest without a waiver of the 50-percent financing limitation. (C) The total indebtedness of the loan provided pursuant to this section plus any senior debt upon individual interests shall not exceed 100 percent of the value of the collateral securing the loan, plus the amount of costs incidentally, but directly, related to the acquisition, conversion, rehabilitation, reconstruction, and replacement. (b) (1) The department may make loans or grants to a resident organization, qualified nonprofit housing sponsor, or local public entity from the fund for the purpose of assisting lower income homeowners to do any of the following: (A) Make repairs to their mobilehomes. (B) Make accessibility upgrades to their mobilehomes. (C) Make energy efficiency upgrades to their mobilehomes. (D) Replace their mobilehomes. (2) Loans and grants made pursuant to paragraph (1) shall require the applicant entity to demonstrate sufficient organizational stability and capacity to manage a portfolio of individual loans over an extended time period. This capacity may be demonstrated by substantial successful experience performing similar activities or through other means acceptable to the department. (3) For loans issued to an individual, lower income homeowner pursuant to this section, loan repayments, interest rates, and other terms shall be as specified in the guidelines. (4) The department may require annual loan payments in the minimum amount necessary to cover the costs of project monitoring. (c) The department may make loans or grants from the fund to mobilehome owners whose income is at or below 60 percent of area median income to correct health and safety conditions and make accessibility or energy efficiency upgrades, or both, to restore the condition of the mobilehome, including replacement of a mobilehome. (1) For loans issued to an individual, lower income homeowner pursuant to this section, loan principal and accrued interest shall be forgiven over a period of time, as specified in the guidelines, provided that an eligible household remains in compliance with the loan agreement. (2) Loans or grants pursuant to this section may be administered by a local public entity or nonprofit corporation, as approved by the department. (Amended by Stats. 2022, Ch. 70, Sec. 28. (SB 197) Effective June 30, 2022.)
  177. 50784.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. )

    Verify source ↗

    The department may make loans from the fund and may reimburse certain pre-fund purchases or health-and-safety costs, if the stated eligibility conditions are met.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. ) ## 50784.5. (a) The department may make loans from the fund to a qualified nonprofit housing sponsor or a local public entity pursuant to subdivision (a) of Section 50783, provided the following conditions are satisfied: (1) No less than 30 percent of residents at the time that the loan application is filed are low income. (2) Loans may be provided pursuant to this section if either of the following applies: (A) The park has significant outstanding violations of the Mobilehome Parks Act (Part 2.1 (commencing with Section 18200)) that threaten the long-term viability of the park and that will be remedied by the purchaser. (B) The department determines that the loan will have a substantial benefit to low- and moderate-income homeowners and that the nonprofit housing sponsor or local public entity agrees to maintain rents at levels affordable to lower income households. (b) If a resident organization, qualified nonprofit housing sponsor, or local public entity purchased a mobilehome park in advance of the availability of funds in order to maintain affordability of rents the cost of the purchase may be reimbursed, provided an application for funds is submitted within a timeframe deemed reasonable by the department, as further specified in the guidelines or notice of funding availability. (c) If a resident organization, qualified nonprofit housing sponsor, or local public entity expended funds to address health and safety issues in advance of the availability of funds, the costs may be reimbursed, provided the costs would otherwise have been eligible costs under this chapter and an application for funds is submitted within a timeframe determined reasonable by the department, as further specified in the guidelines or request of notice of funding availability. (d) All of the following shall apply to loans provided pursuant to this section: (1) Loan amounts shall be for up to 95 percent of the costs attributable to the low-income spaces. (2) Funds shall not be used to assist residents who are not of low income or to reduce monthly housing costs for low-income residents to less than 30 percent of their monthly income. (e) In determining the eligibility for and amount of loans pursuant to this section, the department shall take into consideration, among other factors, all of the following: (1) The current health and safety conditions in the park and the likelihood that conditions would be remedied without the loan. (2) The degree to which the loan will benefit lower income homeowners. (3) The age of the park and the age of the infrastructure that will be rehabilitated with the loan proceeds. (f) Before providing financing pursuant to this section, the department shall require provision of, and approve, at least all of the following: (1) Verification that either no park residents shall be involuntarily displaced as a result of the purchase or that the impacts of the displacement shall be mitigated as required under state and local law. For purposes of this requirement, compliance with Section 66427.5 of the Government Code shall be conclusively presumed to have mitigated economic displacement. (2) Projected costs and sources of funds for all purchase and rehabilitation activities. (3) Projected operating budget for the park after the purchase. (4) A management plan for the operation of the park. (Amended by Stats. 2022, Ch. 70, Sec. 29. (SB 197) Effective June 30, 2022.)
  178. 50784.6.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. )

    Verify source ↗

    The department may make loans from the fund for a new mobilehome park after a disaster, but only if the listed resident-protection and affordability conditions are met.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. ) ## 50784.6. (a) The department may make loans from the fund to a qualified nonprofit housing sponsor, resident organization, or a local public entity for the acquisition and construction of a new mobilehome park or a part of a mobilehome park if all of the following apply: (1) The mobilehome park or part of the mobilehome park is to replace a mobilehome park or part of a mobilehome park that was destroyed by a natural disaster and is located on the site of the partially or wholly destroyed mobilehome park or within 20 miles from the destroyed mobilehome park. (2) The low-income residents of the destroyed mobilehome park that were displaced by the natural disaster are provided the right of first refusal to occupy mobilehomes in the new mobilehome park. The applicant shall provide notice to the former residents in a manner most likely to provide actual notice to the displaced residents. The right of first refusal shall be at least for a 180-day period following written notice to the former resident of their right of first refusal prior to the offering of spaces at the newly constructed mobilehome park to the public. The terms and conditions of the right of first refusal shall be subject to department approval to protect displaced residents. (3) The low-income residents of the new mobilehome park are provided lease or rental terms that are affordable or, to the extent possible, equivalent to those in effect at the destroyed mobilehome park. (4) No less than 50 percent of the spaces in the new mobilehome park will be made affordable to and occupied by households with incomes not exceeding 80 percent of the area median income of the county in which the destroyed mobilehome park was located. The department may establish more restrictive provisions in guidelines. (b) Loans issued pursuant to this section shall be for a duration, interest rate, and other terms, as determined by the department to be equitable and necessary, as specified in the guidelines. Interest rates shall be no more than 3 percent per annum, and the department shall allow loan repayments to be deferred for the full term of the loan, with principal and accumulated interest due and payable upon completion of the term of the loan. Loan amounts shall be for an amount reasonable and necessary to ensure project feasibility as determined by the department, not to exceed 95 percent of the costs attributable to the low-income spaces. (c) Before providing financing pursuant to this section, the department shall require verification that the qualified nonprofit housing sponsor or local public entity shall comply with all state and local laws protecting mobilehome park residents, including, but not limited to, any local rental control ordinances and Section 65863.7 of the Government Code. (d) “Natural disaster” means a natural disaster for which a state of emergency is declared by the Governor, pursuant to Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code. (Amended by Stats. 2022, Ch. 70, Sec. 30. (SB 197) Effective June 30, 2022.)
  179. 50785.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. )

    Verify source ↗

    The department must consider specified factors when deciding loan eligibility and loan amounts, and must allocate chapter funds statewide according to housing needs, seeking to set aside at least 20% for rural areas.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. ) ## 50785. (a) In determining the eligibility for and amount of loans pursuant to this chapter, the department shall take into consideration, among other factors, all of the following: (1) The reasonableness of the costs relating to repairs, rehabilitation, construction, or other costs. (2) Any administrative and security factors affecting the department’s program operation and administration. (3) Whether or not the projects complement the implementation of a local housing program to preserve or increase the supply of housing for persons and families of low or moderate income. (4) Whether or not state funds are utilized in the most efficient and effective manner. (5) In the case of a loan to a qualified nonprofit housing sponsor or to a local public entity, evidence of resident participation in the conversion and management of the park, in the form of either resident participation on the board of directors of the entity that acquires ownership of the park, or the establishment of, and consultation with, a permanent resident advisory board. (b) To the extent consistent with requests for assistance, the department shall allocate funds available for the purposes of this chapter throughout the state in accordance with identified housing needs, including seeking to allocate not less than 20 percent to rural areas. (Amended by Stats. 2022, Ch. 70, Sec. 32. (SB 197) Effective June 30, 2022.)
  180. 50786.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. )

    Verify source ↗

    The department may make and manage guidelines and loans for this chapter, but it must secure loans, record required documents when applicable, and impose approval conditions before financing resident organizations.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. ) ## 50786. (a) The department may adopt, amend, or repeal guidelines for the administration and implementation of this chapter, in consultation with stakeholders. Any guidelines adopted to implement this chapter shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (b) The department may offer one or more types of loans or activities authorized by this chapter through a notice of funding availability. (c) The department shall obtain the best available security for loans made pursuant to this chapter. The security may include a note, deed of trust, assignment of lease, or other form of security on real or personal property that the department determines is adequate to protect the interests of the state. To the extent applicable, these documents and any regulatory provisions shall be recorded or referenced in a recorded document in the office of the county recorder of the county in which the mobilehome park is located. (d) The degree of continuing regulatory control with respect to park operations and resident loans exercised by the department in making loans pursuant to this chapter shall be commensurate with the level of financial assistance provided and in all cases shall be adequate to protect the state’s security interest and ensure the accomplishment of the purposes of the program authorized by this chapter. The regulatory requirements shall be set forth in a regulatory agreement, deed of trust, or other lien, and any violation of these requirements shall be considered a violation of a security document. If loans are made to a qualifying nonprofit housing sponsor or local public entity, a regulatory agreement shall be recorded against the mobilehome park. This regulatory agreement shall contain provisions limiting occupancy, rents, and park operation for the entire loan term. The department may release individual spaces from the regulatory agreement only if they are purchased by residents who occupy them. (e) Before providing financing to a resident organization pursuant to subdivision (a) of Section 50783, the department shall require provision of, and approve, at least all of the following: (1) Verification at the time of application and prior to funding that at least two-thirds of the households residing in the mobilehome park support the plans for acquisition and conversion of the park. (2) Verification that either no park residents shall be involuntarily displaced as a result of the park conversion or the impacts of the displacement shall be mitigated as required under state and local law. For purposes of this requirement, compliance with Section 66427.5 of the Government Code shall be conclusively presumed to have mitigated economic displacement. (3) Verification that the conversion is consistent with local zoning and land use requirements, other applicable state and local laws, and regulations and ordinances. (4) Projected costs and sources of funds for all conversion activities. (5) Projected operating budget for the park during and after the conversion. (6) A management plan for the conversion and operation of the park. (7) If necessary, a relocation plan for residents not participating that is in compliance with Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code. (f) The department shall, to the greatest extent feasible, do all of the following: (1) Require participation by cities and counties in loan applications submitted pursuant to this chapter. (2) Contract with private lenders or local public entities to provide program administration and to service loans and grants made pursuant to this chapter. (3) Give priority to applications for resident-owned parks. (g) The department may provide technical assistance to loan applicants, or may contract with a qualified nonprofit entity to provide that technical assistance, and may include the reasonable costs of the technical assistance as a part of the loan principal. (Amended by Stats. 2022, Ch. 70, Sec. 33. (SB 197) Effective June 30, 2022.)
  181. 50786.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. )

    Verify source ↗

    The department may not require more than a simple majority of park households to buy or escrow interests or spaces as a condition for disbursing certain loan funds.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. ) ## 50786.5. Notwithstanding any other provision of this chapter, where a city, county, or other local governmental entity has acquired a mobilehome park for the purpose of converting the park to resident ownership, and the department has entered into a binding agreement for the commitment of funds to the project, the department shall not require that more than a simple majority of households residing in the park actually purchase, or have opened escrow to purchase, interests or spaces in the park as a condition of disbursement of funds for loans made pursuant to Section 50784 to qualified individual households. (Amended by Stats. 1999, Ch. 473, Sec. 7. Effective January 1, 2000.)
  182. 50787.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. )

    Verify source ↗

    The department may contract directly with eligible nonprofit corporations or nonprofit lenders to support mobilehome park residents and related housing activities, but fund money may not be used for eminent domain takings of mobilehome parks.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11. Mobilehome Park Purchase Fund [50780 - 50787] ( Chapter 11 added by Stats. 1984, Ch. 1692, Sec. 2. ) ## 50787. (a) In addition to the other uses of the fund and activities authorized by this chapter, the department may contract directly with nonprofit corporations that have significant experience working with mobilehome park residents, or acquiring, rehabilitating, and preserving affordable housing, and have statewide or regional capacity to deliver technical assistance to mobilehome park residents or community-based nonprofit corporations in order to assist them in acquiring, financing, operating, and improving mobilehome parks occupied by low- and moderate-income households, including reasonable administrative costs for the grant recipient or recipients. Notwithstanding any other provision of this chapter, moneys in the fund may be used for grants to provide services for initial terms of no more than three years. (b) No funds provided pursuant to subdivision (a) shall be used for the purposes of taking a mobilehome park by the state, county, or city by eminent domain pursuant to Section 19 of Article I of the California Constitution. (c) The department may contract directly with one or more nonprofit lenders to administer loans or grants authorized by this chapter. (d) Notwithstanding any other provision of law, a contract entered into pursuant to this section shall be deemed to be for local assistance. (Amended by Stats. 2022, Ch. 70, Sec. 34. (SB 197) Effective June 30, 2022.)
  183. 50800.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. )

    Verify source ↗

    The Legislature states the intent to expand shelter and related services for homeless people and creates the Emergency Housing and Assistance Program.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. ) ## 50800. (a) It is the intent of the Legislature to encourage the provision of shelter, with effective personal rehabilitation and self-sufficiency development services, to homeless persons at as low a cost and as quickly as possible, without compromising the health and safety of shelter occupants. It is also the intent of the Legislature to encourage the move of homeless persons from shelters to a self-supporting environment as soon as possible, to encourage provision of services for as many persons at risk of homelessness as possible, to encourage compatible and effective funding of homeless services, and to encourage coordination among public agencies that fund or provide services to homeless individuals, as well as agencies that discharge people from their institutions, including, but not limited to, child welfare agencies, health care programs, and jails and prisons. Because many communities currently provide shelter and limited services to individuals who are unable or unwilling to comply with traditional housing programs only during cold and wet weather and because year-round shelter will encourage these individuals to accept services and move toward permanent housing, it is also the intent of the Legislature to increase the availability of year-round shelter to meet the special needs of those individuals, including a Safe Haven that provides supportive housing for seriously mentally ill homeless persons. (b) There is hereby created the Emergency Housing and Assistance Program. (c) To the extent possible, the Emergency Housing and Assistance Program shall not conflict with the federal Stewart B. McKinney Homeless Assistance Act, as approved on July 22, 1987, cited as Public Law 100-77, as it is, from time to time, amended, and regulations promulgated thereunder by the United States Department of Housing and Urban Development, or its successor. (Amended by Stats. 2000, Ch. 667, Sec. 2. Effective January 1, 2001.)
  184. 50800.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. )

    Verify source ↗

    This section creates the Emergency Housing and Assistance Fund and sets rules for how its money may be used, transferred, and invested.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. ) ## 50800.5. (a) There is hereby created in the State Treasury the Emergency Housing and Assistance Fund. Notwithstanding Section 13340 of the Government Code, all money in the fund is continuously appropriated to the department to carry out the purposes of this chapter. Any repayments, interest, or new appropriations shall be deposited in the fund, notwithstanding Section 16305.7 of the Government Code. Money in the fund shall not be subject to transfer to any other fund pursuant to any provision of Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, except to the Surplus Money Investment Fund. (b) All moneys in the Emergency Housing and Assistance Fund, created pursuant to Section 50800.5 as it existed prior to the effective date of the act that adds this chapter, shall be transferred, on the effective date of the act that adds this chapter, to the Emergency Housing and Assistance Fund created by subdivision (a). (c) The department may require the transfer of moneys in the Emergency Housing and Assistance Fund to the Surplus Money Investment Fund for investment pursuant to Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government Code. All interest, dividends, and pecuniary gains from these investments shall accrue to the Emergency Housing and Assistance Fund, notwithstanding Section 16305.7 of the Government Code. (d) To the extent funds are made available by the Legislature, moneys in the fund may be used for the purposes of Chapter 19 (commencing with Section 50899.1) of Part 2 of Division 31 of the Health and Safety Code. (e) The Department of Housing and Community Development may transfer any unobligated Proposition 46 and Proposition 1C bond funds to the Housing Rehabilitation Loan Fund, less any funds needed for state operations to support outstanding awards as determined by the Department of Housing and Community Development, to be expended for the Multifamily Housing Program authorized by Chapter 6.7 (commencing with Section 50675), to be used for supportive housing for the target population identified in Section 50675.14. (Amended by Stats. 2016, Ch. 714, Sec. 26. (SB 944) Effective January 1, 2017.)
  185. 50801.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. )

    Verify source ↗

    This section defines chapter terms and says no individual or household may be denied emergency shelter because they cannot pay.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. ) ## 50801. As used in this chapter: (a) “Department” means the Department of Housing and Community Development. (b) “Designated local board” means a group, including social service providers and a representative of local government, that has met department requirements for distribution of grants allocated by the department pursuant to this chapter. (c) “Director” means the Director of Housing and Community Development. (d) “Eligible organization” means an agency of local government or a nonprofit corporation that provides, or contracts with community organizations to provide, emergency shelter or transitional housing, or both. (e) “Emergency shelter” means housing with supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. No individual or household may be denied emergency shelter because of an inability to pay. (f) “Nonurban county” means any county with a population of less than 200,000, as published in the most recent edition of Population Estimates of California Cities and Counties, E-1, prepared by the Department of Finance, Demographic Research Unit. (g) “Region” means a county or a consortium of counties voluntarily banding together by action of a designated local board. (h) “Safe Haven” means supportive housing for seriously mentally ill homeless persons, many of whom have cooccurring substance abuse problems, that have been unable or unwilling to participate in high demand housing programs. (i) “Transitional housing” means housing with supportive services for up to 24 months that is exclusively designated and targeted for recently homeless persons. Transitional housing includes self-sufficiency development services, with the ultimate goal of moving recently homeless persons to permanent housing as quickly as possible, and limits rents and service fees to an ability-to-pay formula reasonably consistent with the United States Department of Housing and Urban Development’s requirements for subsidized housing for low-income persons. Rents and service fees paid for transitional housing may be reserved, in whole or in part, to assist residents in moving to permanent housing. (j) “Urban county” means any county that is not a nonurban county. (Amended by Stats. 2025, Ch. 514, Sec. 2. (SB 340) Effective January 1, 2026.)
  186. 50801.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. )

    Verify source ↗

    The department must adopt regulations for the Emergency Housing and Assistance Program, and those regulations must control fund distribution, local delegation, program administration, and shelter/service access rules.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. ) ## 50801.5. (a) The department shall adopt regulations for the administration of the Emergency Housing and Assistance Program. The regulations shall govern the equitable distribution of funds in accordance with the intent and provisions of this chapter, and shall ensure that the program is administered in an effective and efficient manner. The regulations shall provide for reasonable delegation of authority to designated local boards, ensure that local priorities and criteria are reasonably designed to address the needs of homeless people, and ensure that designated local boards meet reasonable standards of inclusiveness, accountability, nondiscrimination, and integrity. (b) The regulations adopted pursuant to this section shall ensure that emergency shelter and services will be provided on a first-come-first-served basis for whatever time periods are established by the shelter. No individual or household may be denied shelter or services because of an inability to pay. Nothing in this provision shall be construed to preclude a shelter from accepting payment vouchers provided through any other public or private program so long as no shelter beds are reserved beyond sundown for that purpose. Notwithstanding Section 11135 of the Government Code or any other provision of law, nothing in this section shall be construed to preclude a provider of emergency shelter or transitional housing from restricting occupancy on the basis of any of the following: (1) Sex. (2) In the case of an emergency shelter or transitional housing offered exclusively to persons 24 years of age or younger pursuant to Section 11139.3 of the Government Code, on the basis of age. (3) Military veteran status, if the veterans served possess significant barriers to social reintegration and employment due to a physical or mental disability, substance abuse, or the effects of long-term homelessness that require specialized treatment and services and the provider of emergency shelter or transitional housing also provides the specialized treatment and services. However, in the case of families, providers of emergency shelter or transitional housing shall provide, to the greatest extent feasible, adequate facilities within their range of services so that all members of a family may be housed together, regardless of age and gender. (Amended by Stats. 2003, Ch. 776, Sec. 2. Effective January 1, 2004.)
  187. 50802.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. )

    Verify source ↗

    The department must allocate at least 20% of the Emergency Housing and Assistance Fund to nonurban counties each fiscal year and follow specific rules for reallocating, distributing, and capping funds.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. ) ## 50802. (a) The department shall ensure that not less than 20 percent of the moneys in the Emergency Housing and Assistance Fund shall be allocated to nonurban counties during any given fiscal year. If the funds designated for facilities operation that are allocated to nonurban counties are not awarded by the end of that fiscal year, then those unencumbered funds shall be allocated in the next fiscal year to urban counties. Funds for capital development that are not awarded by the end of the second fiscal year shall be awarded in the subsequent fiscal year to urban counties. (b) The amount of funds that the department allocates from the Emergency Housing and Assistance Fund to each region, excluding funds allocated pursuant to subdivision (a), shall be based upon a formula that accords at least 20 percent weight to each of the following factors: (1) The relative number of persons in the region below the poverty line according to the most recent federal census, updated, if possible, with an estimate by the Department of Finance, compared to the total of the urban counties. (2) The relative number of persons unemployed within each region, based on the most recent one-year period for which data is available, compared to the total of the urban counties. (c) Grant funds shall be disbursed as expeditiously as possible by the department. (d) The department shall use not more than 5 percent of the amount available for funds pursuant to this chapter to defray the department’s administrative costs pursuant to this chapter. (e) Notwithstanding any other provision of this chapter, the department shall distribute funds appropriated for purposes of the activities specified in paragraphs (2) and (7) of subdivision (a) of Section 50803 as grants in the form of forgivable deferred loans, subject to all of the following: (1) (A) Funding shall be made available to each project as a loan with a term of five years for rehabilitation, seven years for substantial rehabilitation, 10 years for acquisition and rehabilitation or new construction, or 20 years for conversion to permanent supportive housing for homeless families and individuals. Each deferred loan shall be secured by a deed of trust and promissory note. Repayment of the loan shall be deferred as long as the project is used as an emergency shelter, permanent supportive housing, or transitional housing. At the completion of the specified year term, the loan shall be forgiven. If a transfer or conveyance of the project property, however, occurs prior to that time that results in the property no longer being used as an emergency shelter, permanent supportive housing, or transitional housing, the department shall terminate the grant and require the repayment of the deferred loan in full. (B) If the property is transitioned from an emergency shelter or transitional housing to permanent supportive housing, and serves people who are homeless or at risk of homelessness, the loan may also be deferred and forgiven according to subparagraph (A), as if it had remained an emergency shelter or transitional housing. Prior to a transition, a project shall obtain department approval to transition to permanent supportive housing to ensure that the proposed transition is consistent with this subdivision. In considering whether to approve a transition, the department shall evaluate the following factors: the suitability of the building for use as permanent supportive housing and project financial feasibility. A project transitioned to permanent supportive housing pursuant to this subdivision shall have a loan term of 20 years from the beginning of its approved use as permanent supportive housing for people who are homeless or at risk of homelessness. If a transitioned project property is no longer being used as permanent supportive housing for people who are homeless or at risk of homelessness, the department shall terminate the loan and require repayment of the deferred loan in full. (i) For purposes of this subparagraph, “permanent supportive housing” has the same meaning as the term “supportive housing,” as defined in paragraph (2) of subdivision (b) of Section 50675.14. (ii) For purposes of this subparagraph, “people who are homeless” means individuals described in Section 11302 of Title 42 of the United States Code, and paragraph (2) of subdivision (e) of Section 11139.3 of the Government Code. (2) Applications for funding shall be made pursuant to department-issued statewide “Notices of Funding Availability” without the need for additional regulations. (3) The department shall set forth the criteria for evaluating applications in the “Notices of Funding Availability” and shall make deferred loans based on those applications that best meet the criteria. (4) The department shall specify in the “Notice of Funding Availability” both maximum and minimum grant amounts that may be varied for urban and nonurban counties. (5) Contracts for projects that have not begun construction within the initial 12-month period shall be terminated and funds reallocated. The department, however, may extend this period by a period not to exceed 12 months. (Amended by Stats. 2013, Ch. 495, Sec. 1.5. (AB 1109) Effective January 1, 2014.)
  188. 50802.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. )

    Verify source ↗

    This section tells the department and designated local boards how to announce, review, rank, contract for, and limit grants under the Emergency Housing and Assistance Program.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. ) ## 50802.5. (a) The department shall issue a notice or notices of funding availability to potential applicants and designated local boards, as applicable, as soon as possible after funding becomes available for the Emergency Housing and Assistance Program. Each notice of funding availability shall indicate the amounts and types of funds available under this program. (b) A designated local board, or the department in the absence of a designated local board, shall solicit, receive, and select among applications for grants pursuant to this chapter from eligible organizations through an open, fair, and competitive process. These applications shall be ranked and selected by a designated local board, or by the department in the absence of a designated local board. (c) Notwithstanding subdivision (b), the department may restrict a designated local board from selecting any application requesting a grant for capital developments if the amount requested by the application exceeds the limits determined by the department, and the department determines that the designated local board is not qualified to evaluate the application. The department shall establish criteria for distinguishing between a designated local board that may be so restricted and a designated local board that would not be so restricted. A designated local board may appeal to the director, or to the director’s designee, any decision made by the department pursuant to this subdivision. The department, by June 30, 2001, shall consider increasing the maximum grant limits to three hundred thousand dollars ($300,000) for operating grants and five hundred thousand dollars ($500,000) for capital grants. (d) The department, or the designated local board, as applicable, shall not grant more than one million dollars ($1,000,000) to any eligible organization within a region in a funding round even if the eligible organization has filed multiple applications. (e) The department shall determine requirements of the grant contract and shall contract directly with the grant recipient. The department shall not delegate this function to the designated local boards. Eligible designated local boards may use a percentage of the regional award funds to defray administrative costs. The department shall establish this percentage, which shall not exceed 2 percent. (f) The designated local board shall regulate the performance of any grant contract within their region, subject to department oversight and requirements established by the department. (g) The department shall not perform a secondary rating or ranking review on those grant applications that have been solicited, received, and selected by a designated local board according to a local ranking criterion that has been approved by the department. (h) Notwithstanding any other provision of this chapter, if the Housing and Emergency Shelter Trust Fund Act of 2002 is approved by the voters, funds allocated pursuant to paragraph (2) of subdivision (a) of Section 53533 shall be administered by the department in a manner consistent with the restrictions and authorizations contained in provision 3 of Item 2240-105-0001 of the Budget Act of 2000, except that any appropriations in that item shall not apply. The competitive system used by the department shall incorporate priorities set by the designated local boards and their input as to the relative merits of submitted applications from within the designated local board’s county in relation to those priorities. In addition, the funding limitations contained in this section shall not apply to the appropriation in that budget item. (Amended by Stats. 2002, Ch. 26, Sec. 1.7. Effective April 22, 2002. Operative after November 5, 2002 (Prop. 46 was adopted) by Sec. 9 of Ch. 26.)
  189. 50803.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. )

    Verify source ↗

    Grant recipients must use these grants for eligible activities, and the department must set loan limits and an administrative-cost cap.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. ) ## 50803. (a) Grants awarded by the department pursuant to this chapter shall be used by a grant recipient to defray costs of eligible activities defined in department regulations or guidelines, including, but not limited to, any of the following activities: (1) Operating facilities, including, but not limited to, operations staff salaries, maintenance, repair, utilities, equipment, and debt reduction. (2) Providing for capital development programs, such as acquisition, leasing, construction, and rehabilitation of sites for emergency shelter and transitional housing for homeless persons. (3) Administrative costs. (4) Operating expenses relating to supervising and counseling clients. (5) Providing residential rental assistance. (6) Leasing or renting rooms for provision of temporary shelter. (7) Capital development loans for the conversion of emergency shelter or transitional housing to permanent supportive housing for homeless families or individuals. The department shall establish the maximum loan limits for the loans in the notice of funding availability. (8) Providing effective approaches to rapidly rehouse homeless clients. Eligible activities include, but are not limited to, homeless system assessments, street outreach and housing and services engagement efforts, coordinated care services, housing location and stabilization services, and rental assistance costs, including deposits and costs necessary for occupancy. (b) Funds allocated to a nonurban county pursuant to subdivision (a) of Section 50802 may be used to pay the cost of leasing or renting individual units, hotel rooms, or motel rooms for use as emergency shelters. No more than 15 percent of the funds allocated to a region other than a nonurban county shall be expended for this purpose. (c) By regulation, the department shall establish a level, not to exceed 5 percent of a grant award, which any eligible recipient may use to defray administrative costs. (Amended by Stats. 2013, Ch. 488, Sec. 2. (AB 873) Effective January 1, 2014.)
  190. 50803.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. )

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    Each designated local board must provide an appeals process for its decisions and comply with this chapter and its regulations.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. ) ## 50803.5. Each designated local board shall provide a process for appeal of its decisions and comply with the requirements of this chapter and the regulations promulgated hereunder. (Repealed and added by Stats. 1993, Ch. 1022, Sec. 2. Effective October 11, 1993.)
  191. 50804.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. )

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    Designated local boards must submit a local emergency shelter strategy to the department for approval, and the department must set rules and a deadline for submission.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. ) ## 50804. (a) Each designated local board shall submit to the department for approval, a local emergency shelter strategy for its region, describing the procedures for complying with requirements pursuant to this chapter and the regulations promulgated thereunder. The department shall establish, by regulation, the types of information that each designated local board shall include in the strategy, including, but not limited to, each of the following: (1) A statement of goals and how goals will be achieved. (2) A statement of priorities and how the priorities complement the local continuum of care planning process. (3) A description of the application process and ranking criteria for the Emergency Housing and Assistance Program. (4) Copies of application forms for the Emergency Housing and Assistance Program that the designated local board will use to evaluate requests for grants. (5) A statement of how grant recipients shall be encouraged to develop year-round emergency shelters and transitional housing to meet the diverse needs of the homeless populations that include families, youth, and persons with physical and mental disabilities, people who are addicted to alcohol and drugs, people living with HIV/AIDS, veterans, the elderly, and pregnant women. Also, a description of how the local plan serves the needs of individuals and families at risk of homelessness as a result of eviction. (b) The department shall establish a deadline, by which date the designated local board shall be required to submit a strategy for the department’s review. (c) Upon the department’s approval of a strategy, the designated local board shall make the strategy broadly available to shelter and service providers and to other interested persons in its region. (Amended by Stats. 2000, Ch. 667, Sec. 7. Effective January 1, 2001.)
  192. 50804.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. )

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    The department may set different time periods or dollar limits for distributing capital development funds than for noncapital development funds.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. ) ## 50804.5. (a) Project budgets may be changed, within limits established by the department. (b) Funds allocated to a region shall remain available for funding applications within the region for a time period or dollar limit to be specified by department regulations. The department may designate a time period or dollar limit for the distribution of capital development funds that is different from the time period or dollar limit for the distribution of noncapital development funds. When the designated local board is unable to distribute funds during the time period designated by the department, the funds shall revert to the fund for distribution. (Added by Stats. 1993, Ch. 1022, Sec. 2. Effective October 11, 1993.)
  193. 50805.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. )

    Verify source ↗

    The director must create a statewide advisory body on emergency and transitional housing, and the department must consult it when developing certain regulations and guidance.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. ) ## 50805. (a) The director shall establish a statewide advisory body on emergency and transitional housing. The department shall consult with the advisory body in the development of regulations and guidelines for certification of designated local boards, requirements for the local emergency shelter strategies, assessment of statewide needs of homeless persons and providers of services to homeless persons, coordination of services and funds of state agencies, and general guidance and direction related to this chapter. The director shall establish, and the department shall begin consulting with, the advisory body within 30 days of the operative date of the act that adds this chapter. (b) The advisory body established pursuant to this section shall be appointed by, and serve at the pleasure of, the director and shall represent a broad range of representatives of designated local boards, emergency shelter providers, and transitional housing providers from throughout the state. There shall be at least one member who is homeless or formerly homeless; at least one member who represents a statewide nonprofit advocacy organization concerned with homelessness and low-cost affordable housing; one member who represents a designated local board; one member who represents a federal interagency council concerned with homeless issues; one member representing state services for homeless persons; one member who is a residential building owner or manager; one member who is a commercial building owner or manager; and one member of the public. The department shall not use funds made available pursuant to this chapter to fund the activities of the advisory body. (Repealed and added by Stats. 1993, Ch. 1022, Sec. 2. Effective October 11, 1993.)
  194. 50806.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. )

    Verify source ↗

    The department may adopt emergency regulations to implement this chapter before the first funding availability notice, and it must identify any resulting regulatory changes in that notice.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.5. Emergency Housing and Assistance Program [50800 - 50806.5] ( Chapter 11.5 repealed and added by Stats. 1993, Ch. 1022, Sec. 2. ) ## 50806.5. The department may adopt emergency regulations to implement this chapter, with respect to award of funds and the administration of the program, to the extent necessary before the department issues the first notice of funding availability pursuant to Section 50802.5. The adoption of emergency regulations shall be conclusively presumed to be necessary for the immediate preservation of the public peace, health, safety, or general welfare within the meaning, or purposes, of Section 11346.1 of the Government Code. Any changes in regulations made by the department pursuant to this section shall be identified in the notice of funding availability published by the department pursuant to Section 50802.5. (Added by Stats. 1993, Ch. 1022, Sec. 2. Effective October 11, 1993.)
  195. 50807.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.7. Transitional Housing Program [50807- 50807.] ( Chapter 11.7 added by Stats. 2019, Ch. 27, Sec. 15. )

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    The Department of Housing and Community Development must allocate transitional housing funding to county child welfare agencies, and agencies that accept money must report specified data annually.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.7. Transitional Housing Program [50807- 50807.] ( Chapter 11.7 added by Stats. 2019, Ch. 27, Sec. 15. ) ## 50807. (a) Subject to an appropriation in the annual Budget Act, the Department of Housing and Community Development shall allocate funding to county child welfare agencies to help young adults who are 18 to 24 years of age, inclusive, secure and maintain housing, with priority given to young adults formerly in the state’s foster care or probation systems. (b) The department shall consult with the State Department of Social Services, the Department of Finance, and the County Welfare Directors Association of California to develop an allocation schedule for purposes of distributing funds allocated to counties pursuant to subdivision (a). (c) If a child welfare agency accepts any distribution of money, it shall report the following data to the Department of Housing and Community Development on an annual basis: (1) The number of homeless youth served. (2) The number of former foster youth served. For purposes of this paragraph, “former foster youth” means a child or nonminor dependent, as defined by Section 475 of Title IV-E of the Social Security Act (42 U.S.C. Sec. 675(8)) and subdivision (v) of Section 11400 of the Welfare and Institutions Code, who had been removed by the juvenile court from the custody of their parent, legal guardian, or Indian custodian pursuant to Section 361 or 726 of the Welfare and Institutions Code, ordered into a placement described in paragraphs (2) to (9), inclusive, of subdivision (e) of Section 361.2 of, or paragraph (4) of subdivision (a) of Section 727 of, the Welfare and Institutions Code, and for whom juvenile court jurisdiction was terminated while the youth remained in placement. (3) The number of homeless youth who exited homelessness into temporary housing. (4) The number of homeless youth who exited homelessness into permanent housing. (d) For a child welfare agency that accepts any distribution of money for the Transitional Housing Program pursuant to this chapter and the Housing Navigation and Maintenance Program pursuant to Chapter 11.8 (commencing with Section 50811), the department shall accept one county board resolution and one allocation acceptance form, and execute one standard agreement, for both programs. (Amended by Stats. 2022, Ch. 50, Sec. 5. (SB 187) Effective June 30, 2022.)
  196. 50811.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.8. Housing Navigation and Maintenance Program [50811- 50811.] ( Heading of Chapter 11.8 amended by Stats. 2022, Ch. 50, Sec. 6. )

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    The department must fund county child welfare agencies for housing navigators, counties must prioritize young adults in or formerly in foster care, and participating agencies must train staff and report annual data.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.8. Housing Navigation and Maintenance Program [50811- 50811.] ( Heading of Chapter 11.8 amended by Stats. 2022, Ch. 50, Sec. 6. ) ## 50811. (a) Subject to an appropriation in the annual Budget Act to the Department of Housing and Community Development to continue the housing navigator program established as a result of the allocation in Provision (3) of Item 2240-103-0001 of the Budget Act of 2019, which is hereby renamed the Housing Navigation and Maintenance Program, the department shall allocate funding to county child welfare agencies to provide housing navigators to help young adults who are 18 to 24 years of age, inclusive, secure and maintain housing. A county that receives an allocation pursuant to this subdivision shall give priority to young adults currently or formerly in the foster care system. (b) The department shall consult with the State Department of Social Services, the Department of Finance, and the County Welfare Directors Association of California to develop an allocation schedule for purposes of distributing funds allocated to counties pursuant to subdivision (a). (c) The housing navigation and maintenance program for a county that accepts an allocation of money pursuant to this section shall provide training to its child welfare agency social workers and probation officers who serve nonminor dependents. The training shall address an overview of the housing resources available through the local coordinated entry system, homeless continuum of care, and county public agencies, including, but not limited to, housing navigation, permanent affordable housing, THP-Plus, and housing choice vouchers. The training shall also address how to access and receive a referral to existing housing resources, the social worker’s and probation officer’s role in identifying unstable housing situations for youth, and referring youth to housing assistance programs. (d) If a child welfare agency accepts any distribution of money, it shall report the following data to the Department of Housing and Community Development on an annual basis: (1) The number of homeless youth served. (2) The number of foster youth served. For purposes of this paragraph, “foster youth” means a child or nonminor dependent, as defined by Section 475 of Title IV-E of the Social Security Act (42 U.S.C. Sec. 675(8)) and subdivision (v) of Section 11400 of the Welfare and Institutions Code, who has been removed from the custody of their parent, legal guardian, or Indian custodian pursuant to Section 361 or 726 of the Welfare and Institutions Code, and who has been ordered into any placement described in paragraphs (2) to (9), inclusive, of subdivision (e) of Section 361.2 of, or paragraph (4) of subdivision (a) of Section 727 of, the Welfare and Institutions Code. (3) The number of former foster youth served. For purposes of this paragraph, “former foster youth” means a child or nonminor dependent, as defined by Section 475 of Title IV-E of the Social Security Act (42 U.S.C. Sec. 675(8)) and subdivision (v) of Section 11400 of the Welfare and Institutions Code, who had been removed by the juvenile court from the custody of their parent, legal guardian, or Indian custodian pursuant to Section 361 or 726 of the Welfare and Institutions Code, ordered into a placement described in paragraphs (2) to (9), inclusive, of subdivision (e) of Section 361.2 of, or paragraph (4) of subdivision (a) of Section 727 of, the Welfare and Institutions Code, and for whom juvenile court jurisdiction was terminated while the youth remained in placement. (4) The number of homeless youth who exited homelessness into temporary housing. (5) The number of homeless youth who exited homelessness into permanent housing. (e) For a child welfare agency that accepts any distribution of money for the Housing Navigation and Maintenance Program pursuant to this chapter and the Transitional Housing Program pursuant to Chapter 11.7 (commencing with Section 50807), the department shall accept one county board resolution and one allocation acceptance form, and execute one standard agreement, for both programs. (Amended by Stats. 2022, Ch. 50, Sec. 7. (SB 187) Effective June 30, 2022.)
  197. 50820.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.9. THP-Plus Housing Supplement Program [50820- 50820.] ( Chapter 11.9 added by Stats. 2021, Ch. 86, Sec. 14. )

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    This section creates the THP-Plus Housing Supplement Program and directs the Department of Housing and Community Development to allocate funds to eligible counties, while participating counties must meet spending, payment, bed-capacity, and funding-maintenance requirements.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 11.9. THP-Plus Housing Supplement Program [50820- 50820.] ( Chapter 11.9 added by Stats. 2021, Ch. 86, Sec. 14. ) ## 50820. (a) The THP-Plus Housing Supplement Program is hereby established. Subject to an appropriation in the annual Budget Act for this purpose, the Department of Housing and Community Development shall allocate and distribute funds to up to 11 counties pursuant to this section. (b) A county shall be eligible to receive funding pursuant to this section if the fair market rent, as defined in paragraph (4) of subdivision (i) of Section 11403.3 of the Welfare and Institutions Code, for a two-bedroom apartment in the county is one of the 11 most expensive in the state during the 2020–21 federal fiscal year. (c) A county that elects to receive funding pursuant to this section shall comply with all of the following requirements: (1) Expend all funds the county is required to maintain pursuant to paragraph (4) before using funding provided pursuant to this subdivision. (2) Pay a monthly rate to Transitional Housing Program-Plus providers, as defined in subdivision (s) of Section 11400 of the Welfare and Institutions Code, that is no less than two thousand eight hundred eighty-two dollars ($2,882) per youth per month or the rate paid per youth per month on July 1, 2021, whichever is greater. (3) Maintain the bed capacity for the Transitional Housing Program-Plus that the county contracted for as of July 1, 2021. (4) Maintain funding for the Transitional Housing Program-Plus from the Protective Services Subaccount within the Support Services Account of the county’s County Local Revenue Fund 2011 at the amount listed for the county on page 25 of the State Department of Social Service’s County Fiscal Letter No. 11/12-18, issued on September 16, 2011. (d) (1) A county that receives funding pursuant to this section shall receive an amount that is the difference between the amount of funding the county is required to maintain pursuant to paragraph (4) of subdivision (c) and the amount required to maintain the bed capacity required by the county’s contracts with Transitional Housing Program-Plus providers as of July 1, 2021, at a rate of two thousand eight hundred eighty-two dollars ($2,882) per youth per month. (2) A county shall not receive funding pursuant to this section if the amount of funding the county is required to maintain pursuant to paragraph (4) of subdivision (c) is sufficient to maintain the bed capacity required by the county’s contracts with Transitional Housing Program-Plus providers as of July 1, 2021, at a rate of two thousand eight hundred eighty-two dollars ($2,882) per youth per month. (3) If, due to point-in-time differences in the data, the dollar amount provided in the Budget Act for the purpose of this section is less than or more than the dollar amount necessary to fund the THP-Plus Housing Supplement Program for eligible counties using the methodology described in this subdivision, the department shall determine how to adjust the amounts distributed to counties to accommodate a funding shortfall or additional funding in consultation with stakeholders, including representatives from the State Department of Social Services, the Department of Finance, the County Welfare Directors Association of California, and John Burton Advocates for Youth. (Added by Stats. 2021, Ch. 86, Sec. 14. (AB 153) Effective July 16, 2021.)
  198. 50825.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 12. Community Development Block Grant Program Funds [50825 - 50834] ( Chapter 12 added by Stats. 1983, Ch. 963, Sec. 1. )

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    This section says state block grant funds should be prioritized for the most effective activities that benefit low- and moderate-income people and families, and funded activities must align with the state consolidated plan.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 12. Community Development Block Grant Program Funds [50825 - 50834] ( Chapter 12 added by Stats. 1983, Ch. 963, Sec. 1. ) ## 50825. It is the intent of the Legislature in enacting this chapter to ensure that funds allocated to the state pursuant to the federal State Community Development Block Grant Program (42 U.S.C. Sec. 5306(d)), and administered by the department, be prioritized for the most effective activities in order to provide maximum benefit in meeting the housing and economic development needs of persons and families of low or moderate income. The Legislature intends that these funds be provided to eligible cities and counties that develop and preserve decent affordable housing and suitable living environments and expand economic development opportunities. It is the intent of the Legislature to reaffirm established state policy that each eligible city or county contribute to meeting the statewide housing goals, or contribute to meeting the state’s urgent need to halt the flow of jobs out of California by working to retain and expand existing businesses and attract new businesses that provide jobs to low- and moderate-income persons and families, or do both, and that funds allocated pursuant to this chapter be distributed accordingly. It is the intent of the Legislature that program funding be prioritized for the most effective activities in order to provide that taxpayer contributions are efficiently deployed to foster housing and economic development. All funded eligible activities shall be consistent with the state’s consolidated plan and any annual update to the consolidated plan that is provided to the United States Department of Housing and Urban Development, which details how the State of California intends to use federal program funds. (Amended by Stats. 2017, Ch. 96, Sec. 3. (SB 106) Effective July 21, 2017.)
  199. 50826.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 12. Community Development Block Grant Program Funds [50825 - 50834] ( Chapter 12 added by Stats. 1983, Ch. 963, Sec. 1. )

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    This section defines key terms used in the chapter, including “consolidated plan,” “eligible city or county,” “NOFA,” “persons and families of low or moderate income,” and “program.”

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 12. Community Development Block Grant Program Funds [50825 - 50834] ( Chapter 12 added by Stats. 1983, Ch. 963, Sec. 1. ) ## 50826. As used in this chapter: (a) “Consolidated plan” means the five-year action plan that results from the process set by the United States Department of Housing and Urban Development (HUD) that assesses affordable housing and community development needs and market conditions, allows the prioritization of development needs, and makes data-driven, place-based investment decisions for federal funding provided by HUD. (b) “Eligible city or county” means an area which is not a metropolitan city or part of an urban county, as defined by Section 5302(a)(4) and (6), respectively, of Title 42 of the United States Code. (c) “NOFA” means notice of funding availability, a public announcement that an estimated amount of funding will be awarded by a department program according to specified criteria and schedules. (d) “Persons and families of low or moderate income” means persons and families whose income does not exceed 80 percent of the area median income, adjusted for family size, as determined pursuant to regulations or subsequent guidelines adopted by the department. (e) “Program” means the State Community Development Block Grant Program created pursuant to federal law (42 U.S.C. 5301, et seq.). (Amended by Stats. 2017, Ch. 96, Sec. 4. (SB 106) Effective July 21, 2017.)
  200. 50826.1.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 12. Community Development Block Grant Program Funds [50825 - 50834] ( Chapter 12 added by Stats. 1983, Ch. 963, Sec. 1. )

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    The department may adopt guidelines for this program and must follow a stakeholder process, reporting, and transition rules tied to those guidelines.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT [50400 - 50899.7] ( Heading of Part 2 amended by Stats. 1981, Ch. 996. ) ## CHAPTER 12. Community Development Block Grant Program Funds [50825 - 50834] ( Chapter 12 added by Stats. 1983, Ch. 963, Sec. 1. ) ## 50826.1. (a) Notwithstanding any other law, the department may adopt guidelines to implement this chapter. Any guideline, rule, policy, or standard of general application employed by the department in implementing this chapter shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The department shall convene a stakeholder process to inform the development of guidelines for the implementation of the program pursuant to this chapter no later than September 1, 2017. Until guidelines are adopted, the department shall administer the program pursuant to adopted regulations. Upon adoption of guidelines, previously adopted regulations are repealed. The repeal of previously adopted regulations pursuant to this section shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (b) On or before June 30, 2018, and notwithstanding Section 10231.5 of the Government Code, as part of the guidelines adoption process, the department shall analyze and report on its award process, contract management processes and policies, and fiscal processes for the federal State Community Development Block Grant Program, identifying efficiencies that can be implemented to improve the processing of applications, contract management and fiscal processes, and communications with local agencies. The department shall identify requirements previously adopted by the state that are in excess of the minimum requirements applicable to eligible activities under the federal Community Development Block Grant Program that, if eliminated, facilitate greater subscription of program funds and reduce state administrative workload. The department shall provide the results of that report to the Department of Finance and budget committees of both houses of the Legislature. Any subsequent amendments to the guidelines shall be reported to the Department of Finance and the Joint Legislative Budget Committee. (Added by Stats. 2017, Ch. 96, Sec. 5. (SB 106) Effective July 21, 2017.)

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