California Code of Regulations
Title 4 - Business Regulations
Division 11 - California Pollution Control Financing Authority
Article 7 - Capital Access Program for Small Businesses
Section 8078.15 - Definitions

Universal Citation: 4 CA Code of Regs 8078.15

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

In addition to the definitions in Section 8070, the following definitions shall apply only to the California Seismic Safety Capital Access Loan Program, Sections 8078.15 to 8078.21 inclusive. To the extent the definitions contained herein conflict with definitions contained in Section 8070, the definitions in this section shall control for purposes of the Program.

(a) "CalCAP/Seismic Safety Contribution" means the Contribution(s) made by the Authority from the California Seismic Safety Capital Access Loan Program Fund established pursuant to Section 44559.14(c)(1) of the Health and Safety Code.

(b) "Cost Estimate" means a written proposal or estimate of the Eligible Costs of materials, services, and other expenses identified to complete the Seismic retrofit construction for each Eligible project as provided by an engineer, architect or a licensed contractor.

(c) "Earthquake-Resistant Bracing System" means a bracing system, certified by the Department of Housing and Community Development, designed and constructed for the purpose of protecting the health and safety of the occupants and reducing damage in the event of an earthquake.

(d) "Eligible Costs" means and includes all or any part, as defined in Section 44559.14(b)(2) of the Health and Safety Code, the costs paid or incurred on or after January 1, 2017, for an Eligible project, including any engineering or architectural design work necessary to permit or complete the Eligible project less the amount of any grant provided by a public entity for the Eligible project. "Eligible Costs" do not include costs paid or incurred for any of the following:

(1) Maintenance, including abatement of deferred or inadequate maintenance, and correction of violations unrelated to the seismic retrofit construction.

(2) Repair, including repair of earthquake damage.

(3) Seismic retrofit construction required by local building codes as a result of addition, repair, building relocation, or change of use or occupancy.

(4) Other work or improvement required by local building or planning codes as a result of the intended seismic retrofit construction.

(5) Rent reductions or other associated compensation, compliance actions, or other related coordination involving the qualified residential property owner or qualified small business and any other party, including a tenant, insurer, or lender.

(6) Replacement of existing building components, including equipment, except as needed to complete the seismic retrofit construction.

(7) Bracing or securing nonpermanent building contents.

(8) The offset of costs, reimbursements, or other costs transferred from the Qualified residential property owner or Qualified small business to others.

(e) "Eligible project" means Seismic retrofit construction that is necessary to ensure that the Qualified building is capable of substantially mitigating seismic damage, and the financing necessary to pay Eligible Costs of the project.

(f) "Program", "CalCAP/Seismic Safety Financing Program" and "CalCAP/Seismic Safety Program" means the California Seismic Safety Capital Access Loan Program established pursuant to the Section 44559.14 of the Health and Safety Code. Where the term "Program" is used in Sections 8078.15 to 8078.21 inclusive, the definition provided in this subdivision shall be used instead of the definition provided in Section 8070(p).

(g) "Qualified building" means a residential or commercial building in California that is identified by the local building code official for the jurisdiction in which the building is located as a building in need of seismic retrofitting and is either a building of a type that is potentially vulnerable in the event of a catastrophic earthquake or a building constructed before 1981. A "Qualified building" may be a single-family residence, multiunit housing building, multiunit housing building with commercial space, or mobilehome, manufactured home, and multifamily manufactured home installed in accordance with Section 18613 of the Health and Safety Code.

(h) "Qualified Loan" means a loan or portion of a loan as defined in Section 44559.1(j) of the Health and Safety Code or a loan made to a Qualified residential property owner, where the proceeds of the loan or portion of the loan are limited to the Eligible Costs for an Eligible project under this Program, and where the loan or portion of the loan does not exceed two hundred fifty thousand dollars ($250,000), and where the term of loss coverage for each qualified loan is no more than ten years. "Qualified Loan" does not include any of the following:

(1) Any loan or portion thereof to the extent the same loan or portion thereof has been, is being, or will be enrolled in any other government program substantially similar to the Program; and

(2) Any loan where the total amount or value of loans enrolled in the Program by the Borrower exceeds $250,000.

(i) "Qualified small business" means a business referred to in subdivisions (i) and (m) of Section 44559.1 of the Health and Safety Code that owns a Qualified building regardless of owner occupancy, notwithstanding the restriction on passive real estate ownership in subparagraph (B) of paragraph (2) of subdivision (j) of Section 44559.1.

(j) "Qualified residential property owner" means either an owner of a residential building that is a Qualified building or a Qualified small business that owns one or more residential buildings, including a multiunit housing building, that is a Qualified building, notwithstanding the restriction on passive real estate ownership in subparagraph (B) of paragraph (2) of subdivision (j) of Section 44559.1.

(k) "Qualified commercial property owner" means either an owner of a commercial building that is a Qualified building or a Qualified small business that owns one or more commercial buildings that is a Qualified building.

(l) "Recapture" means the withdrawal of CalCAP/Seismic Safety Contribution amounts on an annual basis when enrolled loans mature or after one-hundred twenty (120) months from the date of enrollment, whichever occurs first. Recapture is not applicable for Contributions on charged off loans for which a claim has been approved.

(m) "Registered mobilehome" means a mobilehome or manufactured home that is currently registered with the Department of Housing and Community Development and the Borrower's name is on the Department of Housing and Community Development registration for that mobilehome or manufactured home.

(n) "Seismic retrofit construction" means alteration performed on or after January 1, 2017, of a Qualified building or its components to substantially mitigate seismic damage. Seismic retrofit construction includes, but is not limited to, all of the following:

(1) Anchoring the structure to the foundation.

(2) Bracing cripple walls.

(3) Bracing water heaters.

(4) Installing automatic gas shutoff valves.

(5) Repairing or reinforcing the foundation to improve the integrity of the foundation against seismic damage.

(6) Anchoring fuel storage.

(7) Installing an Earthquake-Resistant Bracing System for mobilehomes or manufactured homes that are registered with the Department of Housing and Community Development.

(8) Strengthening a building's lateral load resisting system.

1. New section filed 12-22-2016 as an emergency; operative 12-22-2016 (Register 2016, No. 52). This filing is deemed an emergency pursuant to Health and Safety Code section 44520(b) and 44559.14(e). A Certificate of Compliance must be transmitted to OAL by 6-20-2017 or emergency language will be repealed by operation of law on the following day.
2. Certificate of Compliance as to 12-22-2016 order, including amendment of subsection (i), transmitted to OAL 6-19-2017 and filed 7-26-2017; amendments operative 7-26-2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 30).
3. Change without regulatory effect amending subsections (g), (i), (j) and (k) and new subsection (n)(8) filed 11-20-2018 pursuant to section 100, title 1, California Code of Regulations (Register 2018, No. 47).

Note: Authority cited: Sections 44520, 44559.5, 44559.11 and 44559.14, Health and Safety Code. Reference: Sections 18613, 18613.4, 18613.5, 18613.7, 44559.1, 44559.3, 44559.5 and 44559.11, Health and Safety Code; and Section 13340, Government Code.

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