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 5 - Deferred-Payment Rehabilitation Loans › Section 7402 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The following terms and definitions shall apply to this
					 subchapter.
"Ability to afford" means that the total shelter expense
					 does not exceed 30 percent of the gross income of the owner-occupant borrower
					 pursuant to the provisions of this section. Components of shelter expenses may
					 include, but are not limited to, rent, property taxes, owner-paid utilities,
					 insurance, existing mortgage costs, existing home improvement loan payments,
					 and any proposed rehabilitation costs.
"Affordable rent" means rents for low and very low income
					 households as defined in Section 6922.
"Assisted units" means those units which directly benefit
					 from funds from the Fund.
"Borrower" means a property owner receiving
					 deferred-payment loans from a local entity pursuant to provisions of this
					 subchapter.
"Commitment" means a specific fund award from the Housing
					 Rehabilitation Loan Fund.
"Concentrated rehabilitation area" means an area
					 characterized by substantial deterioration of residential structures which is
					 designated as such by the California Housing Finance Agency pursuant to Section
					 51302 of the Health and Safety Code.
"Department" means the California Department of Housing and
					 Community Development.
"Deferred payment loans" means loans made by a local entity
					 to borrowers with funds from the Housing Rehabilitation Loan Fund.
"Director" means the Director of the California Department
					 of Housing and Community Development.
"Elderly" means a family in which the head of the household
					 is 60 years of age or older or a single person who is 60 years of age or
					 older.
"Enforcement agency" means a local entity eligible pursuant
					 to the provisions of this subchapter that is enforcing applicable codes on
					 residential properties and is eligible for loans from the Housing
					 Rehabilitation Loan Fund without interest.
"Fair Market Rent" means rent limits as established by HUD
					 for the Section 8 Existing or Moderate Rehabilitation Housing Assistance
					 Payments Program.
"Fair Rate of Return" means an annual before-tax rate of
					 return not to exceed 8% of cash investment in rental property to for-profit
					 owners.
"Fund" means the Housing Rehabilitation Loan Fund.
"Household" means one or more persons who are (1) low or
					 moderate income household owner-occupants or (2) low income renters.
"Housing development" means a rental or cooperatively-owned
					 residential property, including a residential hotel, eligible to receive loan
					 funds pursuant to the provisions of this subchapter for the primary purpose of
					 providing affordable, decent, safe, and sanitary housing. A housing development
					 may include any buildings, land, equipment, facilities or other real or
					 personal property including, but not limited to, streets, sewers, utilities,
					 and other non-housing facilities such as administrative, health, recreational,
					 educational and child-care facilities which are an integral part of a housing
					 development.
"Loan Agreement" is the lender's agreement between the
					 ultimate borrower and the local entity.
"Loan Committee" means the Rehabilitation and Construction
					 Finance Loan and Grant Committee established pursuant to Section
					 6902(d).
"Local entity" means a local public entity or a non-profit
					 corporation as defined in these regulations.
"Local public entity" includes all entities set forth in
					 Section 50079 of the Health and Safety Code.
"Low-income" means the income limit established by Section
					 6928.
"Moderate-income" means the income limit established by
					 Section 6930.
"Monthly debt service" means the amount of money a borrower
					 must pay each month on a loan for principal and interest.
"Mortgage assistance area" means that area defined in
					 Section 50085 of the Health and Safety Code.
"Net income" means the income of a person or family as
					 defined in Section 6916.
"Nonprofit corporation" means a corporation incorporated
					 pursuant to Part 2 (commencing with Section 5110) of Division 2 of Title I of
					 the Corporations Code governing public benefit corporations or a corporation
					 subject to said Part pursuant to the terms of Section 9912 of the Corporations
					 Code.
"Owner" means any individual, joint venture, partnership,
					 limited partnership, trust, corporation, cooperative, local public entity, or
					 other legal entity or any combination thereof, whether for profit, nonprofit,
					 or organized for limited profit, owning residential property in fee simple
					 pursuant to the provisions of this subchapter.
"Owner-occupant" means an owner of one to four unit
					 residential property who use one of the units as a principal residence.
"Program" means the Deferred Payment Rehabilitation Loan
					 Program.
"Rehabilitation" means repairs and improvements to a
					 substandard structure necessary to make it meet rehabilitation standards and
					 may include common non-commercial areas used by residents of the
					 property.
"Rehabilitation program" means an ongoing program involving
					 construction assistance, financial assistance or technical assistance in the
					 rehabilitation of residential property.
"Rehabilitation standards" means applicable state or local
					 building or housing standards adopted by a city or county pursuant to the State
					 Housing Law, Part 1.5 (commencing with Section 17910) of Division 13 of the
					 Health and Safety Code and specifically Section 17958.8. Rehabilitation
					 standards include room additions necessary to alleviate overcrowding for
					 eligible households.
"Rental unit" means a dwelling in a single-family or
					 multi-family structure of two or more units, including a guest room in a
					 residential hotel, which is rented or leased to a person or household. For
					 purposes of this subchapter, a unit in a stock cooperative or limited-equity
					 housing cooperative is a rental unit.
"Residential hotel" means any building containing six or
					 more guest rooms intended or designed to be used for, or which are occupied
					 for, sleeping purposes by tenants, which is also the primary residence of these
					 tenants, provided that a majority of these rooms are residential hotel
					 units.
"Residential hotel unit" means a room in a residential
					 hotel used or intended or designed to be used as a primary residence, which is
					 subject to the provisions of Chapter 2 (commencing with Section 1940) of Title
					 5 of Part 4 of Division 3 of the Civil Code, but which lacks either or both a
					 self-contained kitchen or bathroom.
"Room addition" means rooms which are added to a structure
					 to alleviate documented overcrowding. "Room addition" shall not include an
					 increase in the number of rooms within the existing living space of an existing
					 structure.
"Rural area" means an area as defined by Section 50101 of
					 the Health and Safety Code.
"Substandard building" means any residential building or
					 any portion of a residential building, including, but not limited to, any
					 dwelling unit, guest room, or suite of rooms, or the premises on which the same
					 is located, in which there exist any of the conditions listed in Section
					 17920.3 of the Health and Safety Code, to the extent that the conditions
					 endanger the life, limb, health, property, safety, or welfare of the public or
					 occupants thereof; violation of any rehabilitation standards adopted by the
					 local public entity or nonprofit corporation as part of its residential
					 rehabilitation program may contribute to the substandard nature of a structure
					 if they are life- or health-endangering.
"Transfer of property" means to sell, convey, transfer, or
					 alienate title, voluntarily or otherwise, to the property, except in the case
					 of the transfer of the property to an owner occupant's spouse as a consequence
					 of death or dissolution.
1. Amendment
					 of subsection (r) filed 6-19-80; effective thirtieth day thereafter (Register
					 80, No. 25).
2. Amendment filed 10-2-81; effective thirtieth day
					 thereafter (Register 81, No. 40).
3. Amendment filed 11-2-82;
					 effective thirtieth day thereafter (Register 82, No. 45).
4.
					 Amendment filed 6-3-85; effective thirtieth day thereafter (Register 85, No.
					 23).
5. Amendment filed 3-17-86; effective thirtieth day thereafter
					 (Register 87, No. 12).
Note: Authority cited: Section 50662, Health and Safety
						Code. Reference: Sections 50660-50668, Health and Safety
						Code.