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 4 - Multifamily Housing Program › Article 5 - Rent Write-down Loans › Section 7331 - Occupancy and Rent Requirements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Upon initial occupancy, Assisted Units
					 shall be restricted to one or more of the following income levels: 20%, 30%,
					 35%, or 40% of State Median Income, expressed as a percentage of Area Median
					 Income. Rents for Assisted Units shall not exceed 30% of the applicable income
					 limit.
(b) No more than 30% of the
					 total Units in a Project assisted with a RWD loan may be funded as Assisted
					 Units.
(c) The Sponsor shall
					 provide relocation benefits and assistance for tenants directly displaced as a
					 result of RWD funds.
(d) Assisted
					 Units shall not differ substantially in size or amenity level from non-Assisted
					 Units with the same number of bedrooms, and Units shall not differ in size or
					 amenity level on the basis of income-level restrictions. Assisted Units shall
					 not be segregated from non-Assisted Units, and Units shall not be segregated
					 from each other on the basis of income-level restriction. Within these limits,
					 Sponsors may change the designation of a particular Unit from Assisted to
					 non-Assisted or from one income-restriction to another over time. For Projects
					 involving Rehabilitation or conversion, the Department may permit certain Units
					 to be designated as exclusively market-rate Units where necessary for Fiscal
					 Integrity and where all other Program requirements are satisfied.
(e) The number, size, type, and amenity level
					 of Assisted Units shall not be fewer than the number nor different from the
					 size, type and amenity level described in the Regulatory Agreement for the full
					 loan term.
(f) Sponsors shall
					 select only Eligible Households as tenants of Assisted Units, and shall
					 annually recertify household income and size to determine continued
					 eligibility. If, at the time of tenant recertification, a household's income
					 exceeds the income limit designated for the household's Unit by more than 10%
					 of State Median Income, the Sponsor shall increase the household's Rent to the
					 level applicable to other households with similar incomes, and shall designate
					 the next available Unit as an Assisted Unit restricted for occupancy by
					 households at the income level formerly applicable to the first Unit until the
					 mix required by the Regulatory Agreement is achieved.
1. New
						section filed 1-8-2002; operative 1-8-2002 pursuant to Government Code section
						11343.4 (Register 2002, No. 2).
2. Amendment of subsection (a) filed
						9-29-2003; operative 9-29-2003 pursuant to Government Code section 11343.4
						(Register 2003, No. 40).
Note: Authority cited: Sections 50406(n), 50675.1(c)
						  and 50675.11, Health and Safety Code. Reference: 50675.2(b) and (c) and
						  50675.8, Health and Safety Code.