Cal. MVC § 987.300 — California Code / Code mvc / Division 4 / Chapter 6 / Article 3.3 / Section 987.300
Section 987.300
Status: in_force

(a) If a qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit within 28 days of the qualified unit becoming available, the qualified entity shall be eligible to match secondary tenants to the qualified units and the California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee shall treat secondary tenants as eligible for the qualified unit.

(b) If, subsequent to the 14 days of the unit becoming available to secondary tenants, the qualified entity is unable to locate, match, or otherwise place either a qualified tenant or a secondary tenant in a qualified unit, the qualified entity shall be eligible to match a veteran experiencing homelessness with an income at or below 60 percent of area median income to the qualified unit and the California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee shall treat the tenants as eligible for the qualified unit.

(c) If a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a secondary tenant or other tenant who is a veteran experiencing homelessness with an income between 30 and 60 percent of area median income pursuant to subdivision (a) or (b), that unit shall be redesignated to an area median income level commensurate with the income level of the secondary tenant and the secondary tenant shall pay rent commensurate with their household income’s percentage of the area median income.

(d) Beginning 12 months after a secondary tenant or other tenant who is a veteran experiencing homelessness has been placed pursuant to subdivision (a) or (b), if a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a tenant with an income between 30 and 60 percent of area median income pursuant to subdivision (a) or (b), the next available comparable unit shall then be rented to a qualified tenant at 30 percent of the area median income with the goal of returning the project into compliance with the unit mix required by the project regulatory agreement.

(e) (1) The qualified entity tasked with making referrals to qualified units shall make a good faith effort to match a qualified tenant with an extremely low income, shall document these good faith efforts, and shall make this documentation available to the housing sponsor, who shall include the documentation in the tenant file, and, upon request, to the California Housing Finance Agency, the Department of Housing and Community Development, and the Department of Veterans Affairs. Documentation of these good faith efforts shall include, but not be limited to, the following:

(A) Efforts to advertise to the community at least 90 days prior to the lease-up of the building.

(B) Efforts to work in partnership with local homeless services providers, including those that serve veterans experiencing homelessness.

(C) Efforts to coordinate with the local continuum of care to identify veterans experiencing homelessness with extremely low incomes.

(D) Efforts to coordinate with the United States Department of Veterans Affairs to identify veterans experiencing homelessness with extremely low incomes.

(E) Documentation of contact with veterans experiencing homelessness with extremely low incomes and their case managers who were matched to the available unit and chose not to lease the unit.

(2) The California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee may adopt regulations to establish additional documentation standards for demonstrating a good faith effort.

(f) If a qualified entity has submitted a petition to the departments pursuant to Section 987.005 for a unit that is a qualified unit under both this section and Section 987.003, the outcome of the petition submitted pursuant to Section 987.005 shall determine whether the qualified entity is able to refer secondary tenants.

(g) For purposes of this section, the following definitions apply:

(1) “Extremely low income” has the same meaning as defined in Section 50106 of the Health and Safety Code.

(2) “Homeless” has the same meaning as defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019.

(3) “Qualified entity” means an entity that is responsible for making referrals of qualified tenants to qualified units.

(4) “Qualified tenant” means an extremely low income veteran who is homeless.

(5) “Qualified unit” means a supportive housing unit restricted to extremely low income veterans pursuant to a regulatory agreement with the California Tax Credit Allocation Committee or with a bond issuer under the private activity bonds program administered by the California Debt Limit Allocation Committee.

(6) “Secondary tenants” means a veteran who is homeless and has an income of up to 60 percent of the area median income.

(7) “Supportive housing unit” has the same meaning as defined in Section 987.003.

(8) “Veteran” has the same meaning as defined in Section 987.003.