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 5 - Deferred-Payment Rehabilitation Loans
Section 7402 - Definitions
The following terms and definitions shall apply to this subchapter.
"Ability to afford" means that the total shelter expense does not exceed 30 percent of the gross income of the owner-occupant borrower pursuant to the provisions of this section. Components of shelter expenses may include, but are not limited to, rent, property taxes, owner-paid utilities, insurance, existing mortgage costs, existing home improvement loan payments, and any proposed rehabilitation costs.
"Affordable rent" means rents for low and very low income households as defined in Section 6922.
"Assisted units" means those units which directly benefit from funds from the Fund.
"Borrower" means a property owner receiving deferred-payment loans from a local entity pursuant to provisions of this subchapter.
"Commitment" means a specific fund award from the Housing Rehabilitation Loan Fund.
"Concentrated rehabilitation area" means an area characterized by substantial deterioration of residential structures which is designated as such by the California Housing Finance Agency pursuant to Section 51302 of the Health and Safety Code.
"Department" means the California Department of Housing and Community Development.
"Deferred payment loans" means loans made by a local entity to borrowers with funds from the Housing Rehabilitation Loan Fund.
"Director" means the Director of the California Department of Housing and Community Development.
"Elderly" means a family in which the head of the household is 60 years of age or older or a single person who is 60 years of age or older.
"Enforcement agency" means a local entity eligible pursuant to the provisions of this subchapter that is enforcing applicable codes on residential properties and is eligible for loans from the Housing Rehabilitation Loan Fund without interest.
"Fair Market Rent" means rent limits as established by HUD for the Section 8 Existing or Moderate Rehabilitation Housing Assistance Payments Program.
"Fair Rate of Return" means an annual before-tax rate of return not to exceed 8% of cash investment in rental property to for-profit owners.
"Fund" means the Housing Rehabilitation Loan Fund.
"Household" means one or more persons who are (1) low or moderate income household owner-occupants or (2) low income renters.
"Housing development" means a rental or cooperatively-owned residential property, including a residential hotel, eligible to receive loan funds pursuant to the provisions of this subchapter for the primary purpose of providing affordable, decent, safe, and sanitary housing. A housing development may include any buildings, land, equipment, facilities or other real or personal property including, but not limited to, streets, sewers, utilities, and other non-housing facilities such as administrative, health, recreational, educational and child-care facilities which are an integral part of a housing development.
"Loan Agreement" is the lender's agreement between the ultimate borrower and the local entity.
"Loan Committee" means the Rehabilitation and Construction Finance Loan and Grant Committee established pursuant to Section 6902(d).
"Local entity" means a local public entity or a non-profit corporation as defined in these regulations.
"Local public entity" includes all entities set forth in Section 50079 of the Health and Safety Code.
"Low-income" means the income limit established by Section 6928.
"Moderate-income" means the income limit established by Section 6930.
"Monthly debt service" means the amount of money a borrower must pay each month on a loan for principal and interest.
"Mortgage assistance area" means that area defined in Section 50085 of the Health and Safety Code.
"Net income" means the income of a person or family as defined in Section 6916.
"Nonprofit corporation" means a corporation incorporated pursuant to Part 2 (commencing with Section 5110) of Division 2 of Title I of the Corporations Code governing public benefit corporations or a corporation subject to said Part pursuant to the terms of Section 9912 of the Corporations Code.
"Owner" means any individual, joint venture, partnership, limited partnership, trust, corporation, cooperative, local public entity, or other legal entity or any combination thereof, whether for profit, nonprofit, or organized for limited profit, owning residential property in fee simple pursuant to the provisions of this subchapter.
"Owner-occupant" means an owner of one to four unit residential property who use one of the units as a principal residence.
"Program" means the Deferred Payment Rehabilitation Loan Program.
"Rehabilitation" means repairs and improvements to a substandard structure necessary to make it meet rehabilitation standards and may include common non-commercial areas used by residents of the property.
"Rehabilitation program" means an ongoing program involving construction assistance, financial assistance or technical assistance in the rehabilitation of residential property.
"Rehabilitation standards" means applicable state or local building or housing standards adopted by a city or county pursuant to the State Housing Law, Part 1.5 (commencing with Section 17910) of Division 13 of the Health and Safety Code and specifically Section 17958.8. Rehabilitation standards include room additions necessary to alleviate overcrowding for eligible households.
"Rental unit" means a dwelling in a single-family or multi-family structure of two or more units, including a guest room in a residential hotel, which is rented or leased to a person or household. For purposes of this subchapter, a unit in a stock cooperative or limited-equity housing cooperative is a rental unit.
"Residential hotel" means any building containing six or more guest rooms intended or designed to be used for, or which are occupied for, sleeping purposes by tenants, which is also the primary residence of these tenants, provided that a majority of these rooms are residential hotel units.
"Residential hotel unit" means a room in a residential hotel used or intended or designed to be used as a primary residence, which is subject to the provisions of Chapter 2 (commencing with Section 1940) of Title 5 of Part 4 of Division 3 of the Civil Code, but which lacks either or both a self-contained kitchen or bathroom.
"Room addition" means rooms which are added to a structure to alleviate documented overcrowding. "Room addition" shall not include an increase in the number of rooms within the existing living space of an existing structure.
"Rural area" means an area as defined by Section 50101 of the Health and Safety Code.
"Substandard building" means any residential building or any portion of a residential building, including, but not limited to, any dwelling unit, guest room, or suite of rooms, or the premises on which the same is located, in which there exist any of the conditions listed in Section 17920.3 of the Health and Safety Code, to the extent that the conditions endanger the life, limb, health, property, safety, or welfare of the public or occupants thereof; violation of any rehabilitation standards adopted by the local public entity or nonprofit corporation as part of its residential rehabilitation program may contribute to the substandard nature of a structure if they are life- or health-endangering.
"Transfer of property" means to sell, convey, transfer, or alienate title, voluntarily or otherwise, to the property, except in the case of the transfer of the property to an owner occupant's spouse as a consequence of death or dissolution.
1. Amendment of subsection (r) filed 6-19-80; effective thirtieth day thereafter (Register 80, No. 25).
2. Amendment filed 10-2-81; effective thirtieth day thereafter (Register 81, No. 40).
3. Amendment filed 11-2-82; effective thirtieth day thereafter (Register 82, No. 45).
4. Amendment filed 6-3-85; effective thirtieth day thereafter (Register 85, No. 23).
5. Amendment filed 3-17-86; effective thirtieth day thereafter (Register 87, No. 12).
Note: Authority cited: Section 50662, Health and Safety Code. Reference: Sections 50660-50668, Health and Safety Code.
