California Code of Regulations
Title 25 - Housing and Community Development
Division 1 - Housing and Community Development
Chapter 6.5 - Program Operations
Subchapter 3 - California Environmental Quality Act
Article 5 - Application to Developmental Activities
Section 6980 - Exemption for Financial Assistance

(a) Except as provided in subsection (b), CEQA shall not apply to actions taken by the Department to provide financial assistance for the development and construction of residential housing for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code. The Department shall be exempt from CEQA for activities relating to reviewing and acting upon applications and disbursing funds for such financial assistance for land banking and acquisition, predevelopment expenses, project design, housing construction costs, financing, and any other expenses related to the development and construction of such housing. This exemption applies only to actions taken by the Department of Housing and Community Development, and shall not relieve any other public agency, when applying for such financial assistance from the Department, from its responsibility to comply with the provisions of CEQA.

(b) The provisions of CEQA shall apply to actions taken by the Department to provide loans and grants pursuant to its programs if the project which is the subject of the application for financial assistance will not be subject to environmental review pursuant to CEQA by another public agency and if the project is not otherwise exempt from CEQA review by the Department. The Department shall become Lead Agency and take responsibility for preparation of environmental documents only when no other public agency must prepare such documents prior to construction of the housing.