California Code of Regulations › Title 2 - Administration › Division 2 - Financial Operations › Chapter 3 - Department of General Services › Subchapter 6 - Real Estate Division-Relocation Assistance Program › Article 1 - General › Section 1870 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The following terms shall mean:
"Average Annual Net Earnings" means one-half of any net
						earnings of the business or farm operation, before Federal and State income
						taxes, during the two taxable years immediately preceding the taxable year in
						which the business or farm operation moves from the real property acquired, or
						during such other period as the Department determines to be more equitable for
						establishing such earnings, and includes any compensation paid by the business
						or farm operation to the owner, his spouse or his dependents during such
						period. The term "owner" as used in this definition includes the sole
						proprietorship, the principal partners in a partnership, and the principal
						stockholders of a corporation, as determined by the Department. For purposes of
						determining a principal stockholder, stock held by a husband, his wife and
						their dependent children shall be treated as one unit.
"Base Monthly Rent" means the lesser of the average
						monthly rental paid by the displaced person for the three-month period prior to
						initiation of negotiations for the parcel and 25% of the displaced person's
						average monthly income. The economic rent may be considered the average monthly
						rental when the displaced person was the owner-occupant of the acquired
						dwelling or if the rental actually paid was not reasonably equal to market
						rentals for similar dwellings. The "average monthly rental paid" shall include
						any supplements supplied by others, except when required by law, such
						supplement is to be discontinued upon vacation of the property.
"Business" means any lawful activity, excepting a farm
						operation, conducted:
(1) Primarily
					 for the purchase, sale, lease or rental of personal and real property, and for
					 the manufacture, processing, or marketing of products, commodities, or any
					 other personal property; or
(2)
					 Primarily for the sale of services to the public; or
(3) Primarily by a non-profit organization;
					 or
(4) Solely for the purpose of
					 moving and related expenses under Section
					 1873.06, for assisting in the
					 purchase, sale, resale, manufacture, processing, or marketing of products,
					 commodities, personal property, or services by the erection and maintenance of
					 an outdoor advertising display or displays, whether or not such display or
					 displays are located on the premises on which any of the above activities are
					 conducted.
"Comparable Replacement Dwelling" means a dwelling which
						satisfies each of the following standards:
(1) Decent, safe and sanitary (as defined in
					 Section 1872), and comparable to the
					 acquired dwelling with respect to number of rooms, habitable living space and
					 type and quality of construction, but not lesser in rooms or living space than
					 necessary to accommodate the displaced person.
To the extent practicable and consistent with this
						section, the replacement dwelling should be functionally equivalent and
						substantially the same as the acquired dwelling, but not excluding newly
						constructed housing.
(2) In
					 an area not subjected to unreasonable adverse environmental conditions from
					 either natural or man-made sources, and not generally less desirable than the
					 acquired dwelling with respect to public utilities, public and commercial
					 facilities and neighborhood conditions, including schools and municipal
					 services, and reasonably accessible to the displaced person's present or
					 potential place of employment; provided that a potential place of employment
					 may not be used to satisfy the accessibility requirement if the displaced
					 person objects for a reasonable cause.
The Act and these regulations do not require the
						replacement dwelling be generally as desirable as the acquired dwelling with
						respect to environmental characteristics. Though a displaced person does not
						have to accept a dwelling subject to unreasonable adverse environmental
						conditions, neither is the Department required to duplicate environmental
						characteristics, such as scenic vistas or proximity to the ocean, lakes,
						rivers, forests or other natural phenomena.
If the displaced person so requests, every reasonable
						effort shall be made to relocate such person within or near to his existing
						neighborhood. Whenever practicable, the replacement dwelling shall be
						reasonably close to relatives, friends, services or organizations with whom
						there is an existing dependency relationship.
(3) Available on the private market to the
					 displaced person and available to all persons regardless of race, color, sex,
					 marital status, religion, or national origin in a manner consistent with Title
					 VIII of the Civil Rights Act of 1968.
(4) Within the financial means of the
					 displaced person. A replacement dwelling is within the financial means of the
					 displaced person if the monthly housing costs (including payments for mortgage,
					 insurance and property taxes) or rental cost (including reasonably comparable
					 utility and recurring expenses such as gardening, garaging, and similar
					 necessary fees) minus any replacement housing payment available to the person
					 under the provisions of these regulations does not exceed twenty-five percent
					 (25%) of the person's average monthly income. A replacement dwelling is within
					 the financial means of a displaced person also if the purchase price of the
					 dwelling, including related increased interest costs and other reasonable
					 expenses, does not exceed the amount of just compensation provided for the
					 acquired dwelling and the replacement housing payments available to the person
					 under these regulations.
"Conventional Loan" means a promissory note secured by a
						trust deed or mortgage made by a bank or savings and loan associations. A
						conventional loan is not insured or guaranteed by an agency of the State or
						Federal government.
"Counted Room" means that space in a dwelling unit
						containing the usual quantity of household furniture, equipment and personal
						property. It shall include such space as a recreation room, living room,
						library, study, dining room, kitchen, laundry room, basement, bedroom, and
						garage. Rooms or storage areas which contain substantial amounts of personal
						property equivalent to one or more rooms may be counted as additional
						rooms.
"Date of Initiation of Negotiations for the Parcel" means
						the date of the first written offer to purchase the real property.
"Department" means the Department of General Services
						acting in connection with any acquisition by the State Public Works
						Board.
"Displaced Person" means any person who moves from real
						property, or who moves his personal property from real property, either as a
						result of the acquisition of such real property, in whole or in part, by the
						Department or by any person having an agreement with or acting on behalf of a
						public entity, or as the result of a written order from the Department to
						vacate the real property for public use.
A displaced person may or may not qualify as an "eligible
						person," as defined in these regulations.
"Dwelling" means the primary residence of a person,
						including any single-family residence, a single-family unit in a two-family,
						multi-family or multipurpose building, a unit of a condominium or cooperative
						housing project, a nonhousekeeping unit, a mobile home, r any other residential
						unit considered to be part of the real property acquired. A residence need not
						be decent, safe and sanitary to be a dwelling. A second home shall be
						considered to be a dwelling only for the purpose of establishing eligibility
						for payment of moving expense benefits.
"Economic Rent" means the reasonable rental expectancy if
						the property were available for rent or lease on the open market based on the
						rent or lease payment being paid for comparable space as distinguished from
						actual or contract rent or lease payment paid for the acquired property.
"Effective Rate of Interest" means the annual percentage
						rate paid on the debt of a mortgage as a result of including debt service
						charges in the total interest to be paid on the mortgage debt, as an incident
						to the extension of credit, when such debt service charges are normal to the
						market.
"Elderly Household" means a household in which the head
						of household or spouse is 62 years or older.
"Eligible Person" means any displaced person who is, or
						becomes, lawfully entitled to any relocation payment under these
						regulations.
"Existing Patronage" means the net annual average dollar
						volume of business transacted during the two taxable years immediately
						preceding the taxable year in which the business is relocated.
"Family" means two or more individuals, one of whom is
						the head of a household, plus all other individuals regardless of blood or
						legal ties who live with and are considered a part of the family unit. Where
						two or more individuals occupy the same family dwelling with no identifiable
						head of a household, they shall be treated as one family for replacement
						housing payment purposes.
"Farm Operation" means any activity conducted solely or
						primarily for he production of one or more agricultural products or
						commodities, including timber, for sale or home use and customarily producing
						such products or commodities in sufficient quantity to be capable of
						contributing materially to the operator's support.
"Gross Income" means the total annual income of an
						individual, or where a family is displaced, the total annual income of the
						adult members of the household, irrespective of other expenses and voluntary or
						involuntary deductions and including, but not limited to, salaries, wages,
						public assistance payments, tips, commissions, unemployment, rents, royalties,
						dividends, interest, profits, pensions and annuities, less the
						following:
(1) A deduction of $500 for
					 each dependent in excess of three.
(2) A deduction of ten percent (10%) of the
					 total annual income for an elderly or handicapped household.
(3) A deduction for recurring, extraordinary
					 medical expenses (defined for this purpose to mean medical expenses in excess
					 of three percent of total annual income) where not compensated for or covered
					 by insurance or other sources, such as public assistance or tort
					 recovery.
(4) A deduction of
					 reasonable amounts paid for the care of children or sick or incapacitated
					 family members when determined to be necessary to employment of the household
					 head or spouse, except that the amount deducted shall not exceed the amount of
					 income received by the person thus released.
Gross income is divided by twelve (12) to ascertain the
						average monthly income. Relocation and property acquisition payments are not to
						be considered as income for determination of financial means.
"Handicapped Household" means a household in which any
						member is handicapped or disabled.
"Mobile Home" means a structure, transportable in one or
						more sections, which is built on a permanent chassis and designed to be used as
						a dwelling with or without a permanent foundation when connected to the
						required utilities and includes the plumbing, heating, air conditioning, and
						electric systems contained therein. A self-propelled vehicle is not a mobile
						home.
"Mortgage" means such classes of liens, including Deeds
						of Trust as are commonly given to secure advances on, or the unpaid purchase
						price of, real property, under the laws of the State of California, together
						with the credit instruments, if any, secured thereby.
"Moving Expense" means the costs necessary to pack,
						crate, disconnect, dismantle, load, insure, temporarily store, remove,
						transport, unpack, uncrate, reassemble, reconnect, reinstall, and unload
						machinery, equipment, or other personal property (including goods and inventory
						kept for sale) not acquired by the Department, including connection charges
						imposed by public utilities for starting utility service and necessary
						temporary lodging and transportation of eligible persons. Moving expense shall
						not include:
(1) The cost of
					 construction or improvement at the new location to replace property for which
					 compensation was paid in the acquisition;
(2) Any loss of, or damage to, personal
					 property caused by the fault or negligence of the displaced person, his agent,
					 or employee in the process of moving where insurance to cover such loss or
					 damage was available;
(3) Any
					 payment for moving personal property where such property is purchased as part
					 of the acquisition;
(4) Additional
					 expenses incurred because of living in a new location;
(5) Cost of moving structures, improvements
					 or other real property in which the displaced person reserved
					 ownership;
(6) Interest on loans to
					 cover moving expenses;
(7) Loss of
					 goodwill;
(8) Loss of business or
					 profits;
(9) Loss of trained
					 employees;
(10) Personal
					 injury;
(11) Payments for search
					 costs in connection with locating a replacement dwelling.
"Nonprofit Organization" means a corporation,
						partnership, individual or other public or private entity, engaged in a
						business, professional or institutional activity on a nonprofit basis,
						necessitating fixtures, equipment, stock in trade, or other tangible property
						for the carrying on of the business, profession or institutional activity on
						the premises.
"Owner." A person "owns a dwelling" if he:
(1) Holds fee title, a life estate, a fifty
					 (50) year lease, or a lease with not less than twenty (20) years to run from
					 date of acquisition of the property for the project;
(2) Holds an interest in a cooperative
					 housing project which includes the right of occupancy of a dwelling unit
					 therein;
(3) Is the contract
					 purchaser of any of the foregoing estates or interests;
(4) Has a leasehold interest with an option
					 to purchase;
(5) Owns a mobile unit
					 which under State law is determined to be real property, not personal
					 property;
(6) Who has succeeded to
					 any of the foregoing interests by devise, bequest, inheritance or operation of
					 law. In the event of acquisition of ownership by any of the foregoing methods,
					 the tenure of ownership, not occupancy, of the succeeding owner shall include
					 the tenure of the preceding owner.
"Owner-Occupant" means an owner who occupies the
						residential dwelling being acquired by the Department as his primary
						residence.
"Person" means any individual, partnership, corporation
						or association.
"Prepaid Expenses" means items paid in advance by the
						seller of real property and prorated between such seller and the buyer of such
						real property at the close of escrow including, but not limited to real
						property taxes, fire insurance, home owners' association dues and assessment
						payments.
"Primary Residence" means a residential dwelling which is
						occupied as the occupants domicile. A dwelling will qualify as a primary
						residence when:
(1) The occupant has
					 lived in the dwelling to be acquired for more than 50% of the time in the year
					 prior to the State's first written offer; and
(2) The occupant officially acknowledges the
					 residential dwelling as his primary residence by voter registration, address on
					 tax returns, home owners exemption, mailing address, proximity to occupant's
					 work, schools, etc.
"Purchase" as used in connection with claiming
						replacement housing payments with respect to:
(1) Real property means the close of escrow
					 by which the title to replacement property was conveyed to the claimant of a
					 relocation payment; or if no escrow was used, "purchase" means the delivery to
					 such claimant of the deed to the replacement property or the delivery of a
					 completely executed installment contract for purchase.
(2) Mobile homes means the registration of
					 the vehicle with the California Department of Motor Vehicles in the name of the
					 claimant.
(3) For purposes of this
					 Article, the leasing of a condominium or other suitable dwelling for a fifty
					 (50) year period, or for a term which exceeds the life expectancy of the
					 displaced person as determined from the most recent life tables in Vital
					 Statistics of the United States, as published by the Public Health Service of
					 the Department of Health, Education and Welfare, shall be deemed a purchase of
					 a condominium or other dwelling.
"Relocation Payment" means any payment made under the
						provisions of this Article; including, but not limited to, payments for: actual
						or reasonable moving expense, payments made in-lieu of moving expense, purchase
						differential payments, rental differential payments, interest differential
						payments, and payments covering incidental expenses of the acquisition of
						replacement properties.
"Stated Mortgage Interest Rate" means the annual
						percentage rate to be paid on the debt of a mortgage as set forth in the
						mortgage or other credit instrument.
"Tenant-Occupant" means a person who rents or is
						otherwise in lawful possession of a dwelling, including a sleeping room, which
						is owned by another and is the displacee's primary residence.
1.
						Amendment filed 1-18-77 as an emergency; effective upon filing (Register 77,
						No. 4). For prior history, see Register 76, No. 24.
2. Certificate
						of Compliance filed 5-17-77 (Register 77, No. 21).
3. Amendment
						filed 10-18-77; effective thirtieth day thereafter (Register 77, No.
						43).
4. Editorial correction of HISTORY 3 (Register 2008, No.
						37).
Note: Authority cited: Section
						  7267.8,
						  Government Code. Reference: Section
						  7268,
						  Government Code and "Guidelines" adopted by the Commission of Housing and
						  Community Development.