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 19 - Uniform Multifamily Regulations › Section 8301 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The following definitions govern this subchapter.
(a) "Assisted Unit" means a Unit that is
				  subject to the Program's rent and/or occupancy restrictions as a result of the
				  financial assistance provided by the Program, as specified in the Regulatory
				  Agreement.
(b) "CalHFA" means the
				  California Housing Finance Agency.
(c) "Commercial Space" means any
				  nonresidential space located in or on the property of a Rental Housing
				  Development that is, or is proposed to be, rented or leased by the owner of the
				  Project, the income from which shall be included in Operating Income.
(d) "CPI" means the Consumer Price Index for
				  All Urban Consumers, West Region, All Items, as published by the Bureau of
				  Labor Statistics, United States Department of Labor.
(e) "Debt Service Coverage Ratio" means the
				  ratio of (1) Operating Income less the sum of Operating Expenses and required
				  reserves to (2) debt service payments, excluding voluntary prepayments and
				  non-mandatory debt service. In calculating Debt Service Coverage Ratio, the
				  Department may include all Operating Income, and may exclude Operating Income
				  that cannot be reasonably underwritten by lenders making amortized loans or
				  that is approved by the Department to be deposited into a reserve account to
				  defray projected operating deficits.
(f) "Department" means the Department of
				  Housing and Community Development.
(g) "Developer Fee" means the same as the
				  definition of that term in California Code of Regulations, Title 4, Section
				  10302.
(h) "Distributions" means
				  the amount of cash or other benefits received from the operation of a Rental
				  Housing Development and available to be distributed pursuant to Section 8314 to
				  the Sponsor or any party having a beneficial interest in the Sponsor or the
				  Project, after payment of all due and outstanding obligations incurred in
				  connection with the Rental Housing Development. Distributions do not include
				  payments for: deferred Developer Fee up to the limit set forth in Section 8312,
				  approved partnership and asset management fees, mandatory debt service,
				  approved reserve accounts established to prevent tenant displacement resulting
				  from the termination of rent subsidies, operations, maintenance, payments to
				  approved reserve accounts, land lease payments to parties that do not have a
				  beneficial interest in the Sponsor entity, or payments for property management
				  or other services as set forth in the Regulatory Agreement for the Rental
				  Housing Development. Distributions include releases to the Sponsor or any other
				  party of reserve funds, where the use of these funds have not been approved by
				  the Department for Project costs.
(i) "Eligible Households" for MHP means
				  "eligible household" as defined in Section 7301, for HOME this term means the
				  same as "low income families" as defined in 24 CFR 92.2, and for JSJFWHG this
				  term means the same as "agricultural household" as defined in Section
				  7202.
(j) "Native American Lands"
				  means real property located within the geographic boundary of the State of
				  California that meets both the following criteria: it is trust land for which
				  the United States holds title to the tract or interest in trust for the benefit
				  of one or more Indian 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; and the land may be leased for housing development and
				  residential purposes under federal law.
(k) "Operating Expenses" means the amount
				  approved by the Department that is necessary to pay for the recurring expenses
				  of the Project, such as utilities, maintenance, management, taxes, licenses,
				  and Supportive Services Costs, but not including debt service or required
				  reserve account deposits.
(l)
				  "Operating Income" means all income generated in connection with operation of
				  the Rental Housing Development including rental income for Assisted Units and
				  non-Assisted Units, rental income for Commercial Space or commercial use,
				  laundry and equipment rental fees, rental subsidy payments, and interest on any
				  accounts, other than approved reserve accounts, related to the Rental Housing
				  Development. "Operating Income" does not include security and equipment
				  deposits, payments to the Sponsor for Supportive Services not included in the
				  Department-approved operating budget, cash contributed by the Sponsor, or tax
				  benefits received by the Sponsor.
(m) "Program" means the Department funding
				  program or programs providing assistance to the Project.
(n) "Project" means a Rental Housing
				  Development, and includes the development, the construction or rehabilitation,
				  and the operation thereof, and the financing structure and all agreements and
				  documentation approved in connection therewith.
(o) "Regulatory Agreement" means the written
				  agreement between the Department and the Sponsor that will be recorded as a
				  lien on the Rental Housing Development to control the use and maintenance of
				  the Project, including restricting the rent and occupancy of the Assisted
				  Units.
(p) "Rental Housing
				  Development" means a structure or set of structures which collectively contains
				  5 or more Units (except that HOME projects may contain fewer than 5 Units.).
				  "Rental Housing Development" does not include any "health facility" as defined
				  by Section 1250 of the Health and Safety Code or any "alcoholism or drug abuse
				  recovery or treatment facility" as defined by Section 11834.02 of the Health
				  and Safety Code.
(q) "Restricted
				  Unit" means any Assisted Unit and any Unit that is subject to Rent and
				  occupancy restrictions that are comparable to those applicable to Assisted
				  Units. Restricted Units include Units subject to a TCAC regulatory agreement,
				  and all Units subject to similar long-term, low-income or occupancy
				  restrictions imposed by other public agencies.
(r) "Rural Area" means the same as defined in
				  Section 50199.21 of the Health and Safety Code.
(s) "Sponsor" means the legal entity or
				  combination of legal entities with continuing control of the Rental Housing
				  Development. Where the borrowing entity is or will be organized as a limited
				  partnership, Sponsor includes the general partner or general partners who have
				  effective control over the operation of the partnership, or, if the general
				  partner is controlled by another entity, the controlling entity. Sponsor does
				  not include the seller of the property to be developed as the Project, unless
				  the seller will retain control of the Project for the period of time necessary
				  to ensure Project feasibility as determined by the Department.
(t) "Supportive Services" means social,
				  health, educational, income support and employment services and benefits,
				  coordination of community building and educational activities, individualized
				  needs assessment, and individualized assistance with obtaining services and
				  benefits.
(u) "Supportive Services
				  Costs" means the costs of providing tenants service coordination, case
				  management, and direct resident and Supportive Services. It includes:
(1) the cost of providing tenants with
				  information on and referral to social, health, educational, income support and
				  employment services and benefits, coordination of community building and
				  educational activities, individualized needs assessment, and individualized
				  assistance with obtaining services and benefits;
(2) salaries, benefits, contracted services,
				  telecommunication expenses, travel costs, supplies, office expenses, staff
				  training, maintenance of on-site equipment used in services programs, such as
				  computer labs, incidental costs related to resident events, and other similar
				  costs approved by the Department.