Current through Register 2024 Notice Reg. No. 38, September 20, 2024
In order to obtain financing in the form of a construction or mortgage loan from the agency or from a qualified mortgage lender for a rental housing development to be constructed, a housing sponsor or other person applying to be certified as a housing sponsor pursuant to Section 11101 of this article shall submit to the agency such information as is required by the agency to enable the agency to make the determinations required by this section.
(a) Mandatory Requirements. No application for a construction or mortgage loan shall be approved unless the agency is assured:
(1) That the proposed housing development will be economically feasible, and
(2) That the proposed housing sponsors and prospective tenants will be eligible for financial assistance under the Act, and
(3) That the proposed housing development is consistent with the current housing objectives of the agency, and
(4) That the proposed housing development has or will have sufficient access to supporting social services, transportation, schools, employment and retail merchants, and
(5) That the location of the proposed housing development is consistent with the agency's policies of dispersing housing developments throughout communities and avoiding undue concentrations of persons and families of low income except where overriding considerations of economic need necessitate modifying these requirements in order to accomplish the housing objectives of the agency in concentrated rehabilitation areas and participating mortgage funds assistance areas, and
(6) That the proposed housing development will provide safe, sanitary and decent housing meeting the requirements of all applicable building standards, and
(7) That the housing sponsor is prepared to meet any relocation obligations imposed by the Act.
(b) Priorities in Selection of Developments for Financing. Various sections of the Act designate housing priorities to be reflected in the agency's activities. Necessarily, the emphasis on particular priorities, as reflected in the agency's current housing objectives, will change over time due to circumstances and conditions. Within these parameters, the agency will give priority consideration in approving loan commitments to housing developments which:
(1) Assist the agency in making full use of available federal subsidies;
(2) Are consistent with the agency's objective of providing that not less than 30% of the units for which commitments are made are for very low income households;
(3) Assist the agency in balancing its financing activities among rural, metropolitan and nonmetropolitan areas of the state in general proportion to the relative needs for housing assistance in those areas identified in the California Statewide Housing Plan adopted by the Legislature. In the absence of such an adopted plan the agency will consider data relating to such needs developed by the Department of Housing and Community Development.
(4) Reflect the housing needs of identifiable groups of persons such as but not limited to the elderly, handicapped, large households, and persons displaced from housing by governmental actions or natural disasters, as those needs are identified in an adopted California Statewide Housing Plan adopted by the Legislature. In the absence of such an adopted plan the agency will consider data relating to such needs developed by the Department of Housing and Community Development.
(5) Whether the housing development is consistent with local governmental housing needs and priorities as reflected in areawide and local housing elements, housing assistance plans, housing allocation plans, and comments from A-95 clearinghouse(s).
(c) Additional Objectives. In addition to the foregoing mandatory requirements and priorities in selecting housing developments for approval, the agency shall review the following factors in determining whether a loan commitment shall be approved.
(1) Whether the housing development is superior in terms of amenities, scale of the development, architectural treatment and aesthetic impact on the surrounding community;
(2) Whether the housing development will contribute to employment opportunities; is located in an area with low vacancy rates; whether the development will promote the recovery and growth of economically depressed businesses located in areas of minority concentration and in mortgage deficient areas;
(3) Whether the housing development will increase the range of housing choices for minorities of low income and low-income persons rather than increasing the impaction of low-income areas.
