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 15 - Rental Housing Construction Program-Proposition 84 › Article 1 - General › Section 8076 - 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 1 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 the following definitions and those recited above,
						the following definitions prevail for the purposes of this subchapter:
(a) "Article XXXIV approval" means the
					 approval by local electors which must be obtained before a low rent housing
					 project can be developed, constructed, or acquired in any city, town or county
					 in California. This approval is required by section 1 of article XXXIV of the
					 Constitution of California.
(b)
					 "Assisted unit" means a dwelling unit, or a residential hotel unit, or a
					 bedroom in a group home, designated for occupancy or occupied by eligible
					 households in accordance with a Regulatory Agreement between the department and
					 the sponsor entered into pursuant to section 8096(c).
(c) "Debt service coverage ratio" means the
					 ratio of (1) operating income less operating expenses to (2) debt service
					 payments, excluding voluntary prepayments.
(d) "Department" means the Department of
					 Housing and Community Development.
(e) "Director" means the Director of the
					 Department of Housing and Community Development.
(f) "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 8089 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, voluntary
					 loan prepayments, operations, maintenance, payments to required reserve
					 accounts, incentive payments pursuant to section 8082, 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.
(g) "Eligible households" means very
					 low-income households or other lower income households.
(h) "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 (excluding deferred interest),
(3) fully fund all reserve accounts (other
					 than the operating reserve account) established pursuant to the Regulatory
					 Agreement,
(4) maintain a debt
					 service coverage ratio, where 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.