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 8 - California Housing Rehabilitation Program › Article 1 - General › Section 7671 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In addition to the definitions found in chapter 2
						(commencing with section 50050), of part 1 of division 31 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 these definitions and those, these definitions
						prevail for the purposes of this subchapter:
(a) "Assisted unit" means a dwelling unit, or
					 a residential hotel unit, or a bedroom in a group home or congregate home,
					 designated for occupancy or occupied by eligible households.
(b) "Congregate home" means a single-family
					 house occupied by two or more households, each of which is capable of
					 independent living but which chooses to live in one dwelling unit and to share
					 the household responsibilities, including the maintenance of the structure and
					 other responsibilities.
(c)
					 "Conversion" means the alteration of nonresidential space within an existing
					 structure to dwelling units or residential hotel units in a rental housing
					 development.
(d) "Debt service
					 coverage ratio" means the ratio of (1) operating income less operating expenses
					 to (2) debt service payments, excluding prepayments.
(e) "Direct or supportive tenant services"
					 means meals, transportation, recreational and social activities, independent
					 living training, vocational training, counseling, and similar services provided
					 or organized by the sponsor or its agent.
(f) "Director" means the Director of the
					 Department of Housing and Community Development.
(g) "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 7684 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, principal
					 repayment, operations, maintenance, payments to required reserve accounts,
					 property management or other services as set forth in the Regulatory Agreement
					 for the rental housing development.
(h) "Eligible households" means very
					 low-income households or other lower income households.
(i) "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, (3) fully fund for at
					 least twelve consecutive months all reserve accounts (other than the operating
					 reserve account) established pursuant to the Regulatory Agreement, (4) maintain
					 a debt service coverage ratio as 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.
(j) "Fund" means the same as defined in
					 section 8878.16(c) of the Government Code.
(k) "Group home" means a residential
					 structure or structures where two or more handicapped persons or households
					 reside in a group living arrangement 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. For purposes of this definition "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 or physical disability, where the family or person requires
					 special care or facilities in the home; or person requires special care or
					 facilities in the home; or a family in which the head of household suffers from
					 a developmental disability specified in subdivision (a) of section 4512 of the
					 Welfare and Institutions 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 first
					 year of operation, or portion thereof, of the rehabilitated rental housing
					 development beginning at the time of initial occupancy of an assisted unit and
					 ending on the last day of the fiscal year of that development.
(n) "Limited equity housing cooperative"
					 means an entity defined by section 50076.5 of the Health and Safety Code. All
					 requirements in this subchapter shall be applicable to units and residents of
					 limited equity housing cooperatives unless the context indicates
					 otherwise.
(o) "Local agency" means
					 the same as defined in section 8878.16(d) of the Government Code.
(p) "Lower income household" means persons or
					 families as defined in section 50079.5 of the Health and Safety Code.
(q) "Nonprofit corporation" or "nonprofit
					 sponsor" means the same as "nonprofit corporation" as defined in section 50091
					 of the Health and Safety Code.
(r)
					 "Operating expenses" means the amount approved by the department that is
					 necessary to pay for the essential recurring expenses of the project, such as
					 utilities, maintenance, management, taxes, and licenses, and mandatory direct
					 or supportive tenant services but not including debt service, required reserve
					 account deposits, or costs for voluntary direct or supportive tenant
					 services.
(s) "Operating income"
					 means all income generated in connection with the operation of the rental
					 housing development including rental income for assisted and non-assisted
					 units, rental income from nonresidential 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.
(t) "Potentially hazardous building" means
					 the same as defined in section 8875(a) of the Government Code.
(u) "Program" means the California Housing
					 Rehabilitation Program.
(v)
					 "Project" means a rental housing development, the rehabilitation, or
					 rehabilitation and acquisition, and operation thereof, using program funds, and
					 the financing structure and all agreements and documentation approved in
					 connection therewith.
(w)
					 "Reconstruction" means replacing an existing residential structure with a
					 rental housing development of similar type, with not less than an equal number
					 of units and bedrooms and level of amenities.
(x) "Rehabilitation" means repairs and
					 improvements to a substandard rental housing development necessary to correct
					 defects causing it to be a substandard building pursuant to section 17920.3 of
					 the Health and Safety Code, and to meet rehabilitation standards as defined in
					 section 50097 of the Health and Safety Code. Rehabilitation also includes
					 reconstruction or conversion.
(y)
					 "Rent" means all mandatory charges, other than deposits, paid by the tenant for
					 the use and occupancy of an assisted unit and any mandatory charge for direct
					 or supportive tenant services in a rental housing development, whether the
					 units are rented or operated as a limited equity housing cooperative. In a
					 group home, when mandatory charges include direct or supportive tenant
					 services, "rent" means that amount designated for room charges by the
					 Department of Social Services or other agency responsible for services to the
					 designated tenant population.
(z)
					 "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.
(aa)
					 "Rental housing development" means the same as defined in section 50668.5(h) of
					 the Health and Safety Code and includes housing for the elderly or handicapped
					 as authorized in section 50669 of the Health and Safety Code.
(bb) "Rural area" means the same as defined
					 in section 50101 of the Health and Safety Code.
(cc) "Seismic rehabilitation improvements"
					 means the same as defined in section 50668.5(b)(5) of the Health and Safety
					 Code.
(dd) "Substandard rental
					 housing development" means a structure or structures used or intended to be
					 used as a rental housing development which is a substandard building pursuant
					 to section 17920.3 of the Health and Safety Code.
(ee) "Very low-income household" means
					 persons or families as defined in section 50105 of the Health and Safety
					 Code.
1. New
						section filed 6-12-89 as an emergency pursuant to Health and Safety Code
						section 50668.5(g); operative 6-12-89 (Register 89, No. 24). A Certificate of
						Compliance must be transmitted to OAL within 120 days or the regulation will be
						repealed on 10-10-89. For history of former subchapter 8 (sections 7700-7714.5,
						not consecutive), see Register 85, No. 33.
2. New section refiled
						10-6-89 as an emergency pursuant to Health and Safety Code section 50668.5(g)
						and Government Code section 11346.1(h); operative 10-10-89 (Register 89, No.
						42). A Certificate of Compliance must be transmitted to OAL within 120 days or
						emergency language will be repealed on 2-7-90.
3. New section
						refiled 2-5-90 as an emergency pursuant to Health and Safety Code section
						50668.5(g) and Government Code section 11346.1(h); operative 2-7-90 (Register
						90, No. 12). A Certificate of Compliance must be transmitted to OAL within 120
						days or emergency language will be repealed on 6-7-90.
4. Amendment
						filed 3-5-90 as an emergency pursuant to Health and Safety Code section
						50668.5(g); operative 3-5-90 (Register 90, No. 12). A Certificate of Compliance
						must be transmitted to OAL within 120 days or emergency language will be
						repealed on 7-3-90.
5. Certificate of Compliance as to 2-5-90 and
						3-5-90 orders including amendment of subsections (b), (f), (k), (l), (s), (w),
						(x), (y), (aa), (cc) and (dd) transmitted to OAL 5-22-90 and filed 5-29-90
						(Register 90, No. 29).
Note: Authority cited: Section 50668.5, Health and
						  Safety Code. Reference: Chapter 6.5 (commencing with section 50660), part 2,
						  division 31, Health and Safety Code; and chapter 12.45 (commencing with section
						  8878.15), division 1, Title 2, Government
						  Code.