California Code of Regulations
Title 25 - Housing and Community Development
Division 1 - Housing and Community Development
Chapter 7 - Department of Housing and Community Development Programs
Subchapter 15 - Rental Housing Construction Program-Proposition 84
Article 1 - General
Section 8076 - Definitions

Universal Citation: 25 CA Code of Regs 8076

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

In addition to the definitions found in chapter 2 (commencing with section 50050), of part 1 of division 1 of the Health and Safety Code and subchapter 2 (commencing with section 6910) of chapter 6.5 of this title, the following definitions shall apply to this subchapter. In the event of a conflict between the following definitions and those recited above, the following definitions prevail for the purposes of this subchapter:

(a) "Article XXXIV approval" means the approval by local electors which must be obtained before a low rent housing project can be developed, constructed, or acquired in any city, town or county in California. This approval is required by section 1 of article XXXIV of the Constitution of California.

(b) "Assisted unit" means a dwelling unit, or a residential hotel unit, or a bedroom in a group home, designated for occupancy or occupied by eligible households in accordance with a Regulatory Agreement between the department and the sponsor entered into pursuant to section 8096(c).

(c) "Debt service coverage ratio" means the ratio of (1) operating income less operating expenses to (2) debt service payments, excluding voluntary prepayments.

(d) "Department" means the Department of Housing and Community Development.

(e) "Director" means the Director of the Department of Housing and Community Development.

(f) "Distributions" means the amount of cash or other benefits received from the operation of the rental housing development and available to be distributed pursuant to section 8089 to the sponsor or any party having a beneficial interest in the sponsor entity, after payment of all due and outstanding obligations incurred in connection with the rental housing development. Distributions do not include payments for debt service, voluntary loan prepayments, operations, maintenance, payments to required reserve accounts, incentive payments pursuant to section 8082, land lease payments to parties that do not have a beneficial interest in the sponsor entity, or payments for property management or other services as set forth in the Regulatory Agreement for the rental housing development.

(g) "Eligible households" means very low-income households or other lower income households.

(h) "Fiscal integrity" means that the total of operating income plus funds released pursuant to the Regulatory Agreement from the operating reserve account is sufficient to:

(1) pay all current operating expenses,

(2) pay all current debt service (excluding deferred interest),

(3) fully fund all reserve accounts (other than the operating reserve account) established pursuant to the Regulatory Agreement,

(4) maintain a debt service coverage ratio, where specified in the Regulatory Agreement, and

(5) pay other extraordinary costs permitted by the Regulatory Agreement. The ability to pay any or all of the annual permitted distribution shall not be considered in determining fiscal integrity.

(i) "Fund" means the Rental Housing Construction Fund.

(j) "Group home" means a residential structure or structures, including a residential hotel, where five or more handicapped persons or households reside, share common facilities and receive direct and supportive services provided under the supervision or oversight of the local public official responsible for services to the designated tenant population, including a residential facility as defined by section 1502 of the Health and Safety Code. Intermediate care or skilled nursing facilities are not considered group homes and are not eligible for funding.

(k) "Handicapped" means a family in which the head of the household is suffering from an orthopedic disability impairing personal mobility or a physical disability affecting his or her ability to obtain employment or a single person with such an orthopedic disability or a physical disability, where the family or person requires special care or facilities in the home. "Handicapped" also includes a family in which the head of household suffers from a developmental disability specified in subdivision (a) of section 38010 of the Health and Safety Code or a mental disorder which would render him or her eligible to participate in programs of rehabilitation or social services conducted by or on behalf of a public agency, or a single person with such a developmental disability or mental disorder.

(l) "Household income" means the same as "gross income" as defined in section 6914 of this title.

(m) "Initial operating year" means the initial period of operation of the rental housing development, beginning at the time of the initial occupancy of the first assisted unit in the development and ending on the last day of the fiscal year of the development.

(n) "Limited equity housing cooperative" means an entity defined by section 50076.5 of the Health and Safety Code. Except as otherwise provided, all requirements in this subchapter shall be applicable to limited equity housing cooperatives assisted pursuant to this subchapter.

(o) "Lower income household" means persons or families as defined in section 50079.5 of the Health and Safety Code.

(p) "Lower income nonassisted unit" means a dwelling unit, or a residential hotel unit, or a bedroom in a group home, other than an assisted unit, which is regulated by virtue of participation in the federal tax credit program (section 42, title 26 U.S.C.) or state tax credit program (chapter 166, California Statutes of 1990), the HUD section 202 program (section 1701q, title 12 U.S.C.), the HUD section 8 program (section 1437f, title 42 U.S.C.), or other governmental program where the occupancy and rent requirements, and the term of the occupancy and rent requirements are equal to or greater than the requirements of the federal tax credit program referenced above.

(q) "Lower income unit" means an assisted unit designated for occupancy or occupied by any lower income household.

(r) "Nonprofit corporation" means the same as defined in section 50091 of the Health and Safety Code.

(s) "Operating expenses" means the amount approved by the department that is necessary to pay for the recurring expenses of the project, such as utilities, maintenance, management, taxes, and licenses, but not including debt service, required reserve account deposits, or costs for direct or supportive tenant services that tenants are not required to pay for as a condition of occupancy.

(t) "Operating income" means all income generated in connection with operation of the rental housing development including rental income for assisted and nonassisted units, rental income for commercial space, laundry and equipment rental fees, rental subsidy payments, and interest on any accounts related to the rental housing development. "Operating income" does not include security and equipment deposits, payments for direct or supportive tenant services that tenants are not required to pay for as a condition of occupancy, or tax benefits received by the sponsor.

(u) "Other lower income household" means persons or families as defined in section of title 256928 of title 25.

(v) "Program" means the Rental Housing Construction Program.

(w) "Project" means a rental housing development, the development, construction and operation thereof, using program funds, and the financing structure and all agreements and documentation approved in connection therewith.

(x) "Rent" means all mandatory charges, other than deposits, paid by the tenant for the use and occupancy of an assisted unit. In a group home, when mandatory charges include direct and supportive tenant services, "rent" means that portion of the tenant's payment required to pay for debt service, reserves required by the department, and operating expenses, excluding expenses for the mandatory direct and supportive tenant services. Direct and supportive tenant services means meals, transportation, housekeeping services, recreational and social activities, independent living training, vocational training, counseling, and similar services provided or organized by the sponsor or its agent.

(y) "Rent-up costs" means costs incurred in connection with marketing and preparing an assisted unit for occupancy while the unit is on the housing market but not rented to its first tenant.

(z) "Rental housing development" means a development of five or more rental or limited equity housing cooperative units on one or more sites and includes a mobilehome park with five or more mobilehome units, a group home, and a residential hotel.

(aa) "Residential hotel" means any building which contains six or more residential hotel units where a majority of the units are residential hotel units.

(bb) "Residential hotel unit", also referred to as a "single room occupancy" unit or an SRO, means a room used for sleeping purposes that:

(1) is occupied as a primary residence,

(2) lacks, in the unit itself, either or both a kitchen or bathroom, and

(3) is subject to state landlord-tenant law pursuant to chapter 2 (commencing with section 1940) of title 5 of part 4 of division 3 of the Civil Code.

(cc) "RHCP" means the Rental Housing Construction Program.

(dd) "Rural area" means the same as defined in section 50101 of the Health and Safety Code.

(ee) "Single room occupancy" unit or "SRO" means the same as "residential hotel unit."

(ff) "Very low-income household" means persons or families as defined in section 50105 of the Health and Safety Code.

(gg) "Very low-income nonassisted unit" means a lower income nonassisted unit in which occupancy is limited to very low-income households and rents are limited to an amount not exceeding thirty percent of the maximum income for a very low-income household, less a reasonable utility allowance.

(hh) "Very low-income unit" means an assisted unit designated for occupancy or occupied by a very low-income household.

1. New section filed 12-29-89 as an emergency; operative 12-29-89 (Register 90, No. 3). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 4-30-90.
2. New section refiled 4-26-90 as an emergency; operative 4-26-90 (Register 90, No. 23). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 8-24-90.
3. New subsections (n) and (cc) filed 7-23-90 as an emergency; operative 7-23-90 (Register 90, No. 39). A Certificate of Compliance must be transmitted to OAL by 11-20-90 or emergency language will be repealed by operation of law on the following day.
4. New section refiled 8-27-90 as an emergency; operative 8-27-90 (Register 90, No. 42). A Certificate of Compliance must be transmitted to OAL by 12-26-90 or emergency language will be repealed by operation of law on the following day.
5. New subsections (n) and (cc) refiled 11-16-90 as an emergency; operative 11-16-90 (Register 91, No. 1). A Certificate of Compliance must be transmitted to OAL by 3-18-91 or emergency language will be repealed by operation of law on the following day.
6. New section refiled 12-19-90 as an emergency pursuant to Health and Safety Code section 50771.3; operative 12-19-90 (Register 91, No. 4). A Certificate of Compliance must be transmitted to OAL by 4-18-91 or emergency language will be repealed by operation of law on the following day.
7. Certificate of Compliance as to 11-16-90 and 12-19-90 orders transmitted to OAL 1-4-91; disapproved by OAL 2-4-91 (Register 91, No. 13).
8. New section refiled 2-20-91 as an emergency; operative 2-20-91 (Register 91, No. 13). A Certificate of Compliance must be transmitted to OAL by 6-17-91 or emergency language will be repealed by operation of law on the following day.
9. Certificate of Compliance as to 6-14-91 order including amendment of section transmitted to OAL 5-15-91 and filed 6-14-91 (Register 91, No. 38).

Note: Authority cited: Section 50771.1, Health and Safety Code. Reference: Sections 33007.5, 50010, 50079.5, 50735, 50736, 50766, 50771.1, 50771.2, 50894, 53130 and 53133, Health and Safety Code. Sections 7260, 7261, 7262, 7264, 7264.5, 7269, 7269.1, 7272 and 7272.3, Government Code.

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