California Code of Regulations › Title 4 - Business Regulations › Division 9.5 - California Debt Limit Allocation Committee › Chapter 2 - Qualified Residential Rental Projects › Article 1 - Definitions › Section 5170 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In addition to the definitions set forth in Government Code
					 section
					 8869.82
					 and unless otherwise required by the context, the following terms as used in
					 this chapter are defined as follows:
"Adaptive Reuse" means the retrofitting and repurposing of
					 existing buildings that create new Qualified Residential Rental Project units
					 for the market, and expressly excludes any Project that involves rehabilitation
					 or any construction affecting existing residential rental units.
"AMI" or "Area Median Income" means the median family
					 income of a county as set by the U.S. Department of Housing and Urban
					 Development.
"At Risk Project" means a property that is at risk of
					 conversion as defined by Revenue and Taxation Code section
					 17058(c)(4)
					 and by section
					 of Title
					 410325(g) of Title 4 of the
					 California Code of Regulations; or a property that otherwise meets all
					 requirements of Revenue and Taxation Code section
					 17058(c)(4)
					 and section
					 of Title
					 410325(g) of Title 4 of the
					 California Code of Regulations, except that the federal assistance due to
					 expire within five (5) calendar years of application to the Committee may
					 include a tax-exempt private activity Bond regulatory agreement.
"BIPOC Entity" means an entity that is at least 51% owned
					 by one or more Black, Indigenous, or Other People of Color or by a non-profit
					 organization with a Black, Indigenous, or Other Person of Color executive
					 director/Chief Executive Officer (CEO) and board membership that is comprised
					 of at least 51% Black, Indigenous, and Other People of Color. For purposes of
					 this paragraph, Black, Indigenous, or Other People of Color means a person who
					 checked the Black or African American, American Indian and Alaska Native,
					 Asian, or Native Hawaiian and Other Pacific Islanders race category or who
					 answered yes to the Hispanic Origin question on the 2020 United States
					 Census.
"BIPOC Project" means a Qualified Residential Rental
					 Project for which the sponsor is a BIPOC Entity. A BIPOC Project may be a New
					 Construction Project, Rural Project, Preservation Project, or Other
					 Rehabilitation Project. A BIPOC Project does not include a project for which
					 any principal, partner, or member of the sponsor entity is eligible to receive
					 maximum General Partner Experience points pursuant to Section
					 10325(c)(1)(A) of
					 the CTCAC regulations unless those points are awarded to a principal of the
					 BIPOC Entity who no longer is employed by the developer of, or has an ownership
					 interest in, the project(s) which form the basis of the experience
					 points.
"Bond and State Credit Allocation" means the Allocation
					 plus any California State Tax Credits requested from CTCAC for an individual
					 QRRP Project.
"Capital Needs Assessment" means a document containing the
					 information defined in section
					 5212.
"Community Revitalization Area" means one of the following
					 areas for which a comprehensive Community Revitalization Plan has been adopted
					 and efforts specific to that plan have occurred:
1) a Distressed Community;
2) a Federal Opportunity Zone, Choice
				  Neighborhood, or HUD-approved Neighborhood Revitalization Strategy Area;
				  or
3) a Disadvantaged Community as
				  identified by the California Environmental Protection Agency's CalEnviroScreen
				  map.
"Community Revitalization Plan" means a plan for
					 contributing to concerted community revitalization efforts as demonstrated by a
					 letter from a local government official. The letter shall explain how the
					 proposed project will contribute to the community's planned revitalization and
					 include, but is not limited to, a description of the following community
					 engagement, investment, and other revitalization efforts:
1. Community enhancement services in the
				  area, including, but not limited to, job training and after-school enrichment
				  programs.
2. Funds, not including
				  funds for the proposed project, that have been expended in the past five (5)
				  years or are being expended or committed to be expended to improve the
				  community infrastructure, including, but not limited to, parks, storm water
				  systems, sewer systems, and streets.
3. Projects, not including the proposed
				  project, that have been completed within the past five (5) years or are
				  underway or committed to be completed that contribute to community
				  revitalization, including, but not limited to, retail, office, and housing
				  projects.
"CTCAC/HCD Opportunity Area Map" shall have the same
					 meaning as in Section
					 10302(zz) of the
					 CTCAC regulations. An applicant may choose to utilize the census tract or
					 census block group resource designation, as applicable, from the CTCAC/HCD
					 Opportunity Maps in effect when the initial site control was obtained up to
					 seven calendar years prior to the application. Projects located in map areas
					 designated as "Missing/Insufficient Data" or similar designation shall be
					 considered to be in the resource area that most frequently surrounds the
					 perimeter of the Project's map area.
"Energy Star" means the certification satisfying the
					 requirements of 42 U.S.C.
					 section 6294(a).
"Federal Promise Zone" means any area with a continuous
					 boundary and a population of not more than 200,000 that is nominated by a local
					 government or Indian tribe and designated by the U.S. Department of Housing and
					 Urban Development to receive priority for Federal funding on the basis of its
					 unemployment, poverty, vacancy, and crime rates.
"FHA" means Federal Housing Administration.
"FHA Financed Project" means a project financed under
					 221(d)3, 221(d)4, 223(f) Federal Housing Administration insurance program, or
					 the Section
					 202 or
					 811 Capital Advance program, or any
					 HUD- sponsored capital financing pilot program.
"Final and Conclusive Determination Letter" means a written
					 confirmation from the Department of Finance (DOF) that its determination of an
					 enforceable obligation as approved in a recognized obligation payment schedule
					 is final and conclusive, and reflects DOF's approval of subsequent payments
					 made pursuant to the enforceable obligation.
"Gross Rent" means gross rent as defined by
					 26 U.S.C. section
					 42(g)(2)(B). Utility
					 allowances, as provided by 26 U.S.C. section
					 42(g)(2)(B)(ii), will be
					 included for purposes of this calculation. Projects that are At Risk Projects
					 or Projects that request low income housing tax credits are required to use
					 Gross Rents for the calculation of restricted rents.
"Hard Costs" means the cost of the work specified in a
					 construction contract, including site work, excluding contractor profit,
					 general requirements and contractor overhead.
"HUD" means the United States Department of Housing and
					 Urban Development.
"HUD Development Acknowledgement Letter" means HUD
					 correspondence outlining that a project has submitted an application for FHA
					 financing, that the application has been deemed complete, and that HUD is
					 committed to providing the project with a Firm Commitment Letter prior to the
					 issuance expiration date of the project's Allocation.
"HUD Firm Commitment Letter" means a HUD loan commitment
					 for FHA financing.
"MAP Lender" means a HUD-qualified lender that prepares FHA
					 forms and performs preliminary underwriting for certain FHA loan
					 applications.
"Native American Lands" means real property located within
					 the State of California that meets both the following criteria:
(a) is trust land for which the United States
				  holds title to the tract or interest in trust for the benefit of one or more
				  tribes or individual Indians, or is restricted Indian land for which one or
				  more tribes or individual Indians holds fee title to the tract or interest but
				  can alienate or encumber it only with the approval of the United
				  States.
(b) the land may be leased
				  for housing development and residential purposes under federal law.
"New Construction Project" means a QRRP project applying
					 for an allocation of tax-exempt private activity bonds that meets at least one
					 of the following:
(1) 100% of its units
				  constitute new units to the market,
(2) involves the demolition or rehabilitation
				  of existing residential units that increase the unit count by either 25 units
				  or 50% of the existing units, whichever is greater, or
(3) adaptive re-use of non-residential
				  structures, including hotels and motels that were converted to residential use
				  within the previous five (5) years from the date of the application.
"Other Rehabilitation Project" means a QRRP Project
					 applying for an allocation of tax-exempt private activity bonds from the
					 General Pool that is not eligible for treatment as a New Construction Project
					 or a Preservation Project. In a Competitive Application Process, an Other
					 Rehabilitation Project shall meet all of the following criteria:
1. Shall complete at least $60,000 in hard
				  construction costs per unit, as defined in CTCAC Regulation Section
				  10320(x);
				  and
2. At least 60% of hard
				  construction costs shall be expended only on immediate health and safety
				  improvements, seismic and accessibility improvements, and/or the replacement of
				  major systems with a remaining useful life of less than ten years, as evidenced
				  by a CTCAC Capital Needs Assessment.
"Permanent Supportive Housing" means a QRRP Project
					 receiving points pursuant to Section
					 5230(g) as a
					 Special Needs Project for which the minimum required percentage of special
					 needs units are designated as "supportive housing" as that term is defined in
					 Health and Safety Code Section
					 50675.14(b)(2).
					 The project shall comply with the core components of Housing First, as defined
					 in Welfare and Institutions Code Section
					 8255(b),
					 with respect to the units designated as supportive housing.
"Preservation Project" means a QRRP Project applying for an
					 allocation of tax-exempt bonds that is not a New Construction project and meets
					 at least one of the following:
(1) has
				  a pre-1999 HCD loan that is being restructured pursuant to Health and Safety
				  Code section
				  50560
				  (AB 1699 projects);
(2) is a
				  replacement or rehabilitation project approved by HUD pursuant to a Section
				  18 or Section
				  22 Demolition/Disposition
				  authorization;
(3) is an At-Risk
				  project that is not subject to a regulatory agreement imposing a rent
				  restriction with a remaining term that is greater than five years from the year
				  in which the application is filed that restricts income and rents on the
				  residential units to an average no greater than 60% of the area median income;
				  or
(4) is a project being
				  rehabilitated under the HUD Rental Assistance Demonstration (RAD)
				  Program.
"Qualified Project Period" shall mean the same as defined
					 in 26 U.S.C. section
					 142(d)(2)(A) and regulations
					 promulgated thereunder, except that the minimum term shall be consistent with
					 Section 5192.
"Rent Comparability Matrix" means the form by which the
					 third party that has completed the Market Study provides information comparing
					 the Project to comparable properties in the Project's market area and evidences
					 that each of the Project's unit types has met the requirements of Section
					 5191(b).
"Residential Rental Regulatory Agreement" means a covenant
					 recorded against the title of a subject property by a government entity
					 limiting the property's use to rental housing and restricting tenant incomes
					 and rents to no more than 80% of the Area Median Income of the County in which
					 the property is located.
"Scattered Site Project" means multiple location Projects
					 that:
(a) except where a single
				  existing project-based Section
				  8 contract is in effect that covers
				  all locations, consist of no more than five (5) locations; and
(b) are not contiguous except for the
				  interposition of a road, street, stream or similar property; and
(c) are proposed to be financed through a
				  single pooled bond transaction; and
(d) all locations are:
(1) subject to a Residential Rental
				  Regulatory Agreement or subject to a federal, state, or local rental or
				  operating assistance agreement:
(A) within the
				  boundaries of the same city, or
(B)
				  within a 10-mile diameter circle within the same county, or
(C) within the same county if no location is
				  within a city having a population of five-hundred thousand (500,000) or more;
				  or