Section 7862 - Appeal and Grievance Procedures(a) Each sponsor shall submit, together with its affirmative marketing program, proposed appeal and grievance procedures for resolving complaints by the sponsor concerning the sponsor's tenants and by its present or prospective tenants concerning the sponsor or the sponsor's other tenants. The proposed procedures shall be reviewed by and be subject to the approval of the Department, which shall require such modifications as may be necessary and appropriate. The procedures shall include feasible informal and formal mechanisms for dispute resolution as are appropriate given the nature of the housing sponsor, the size and nature of the development, and the characteristics of the tenants (including English language fluency). Where appropriate, the procedure shall provide that unresolved grievances or additional appeals shall be directed to the responsible agency for review and recommendation. The Department shall be the final authority for purpose of interpretation of the requirements of the Program, upon a written request for interpretation.(b) A written copy of the approved grievance and appeal procedures shall be given to each tenant at the time of admission and thereafter as changes are approved, and to each prospective tenant upon rejection.(c) Any grievance, including a contractual dispute, of a sponsor with another sponsor or its responsible agency shall be addressed first with the executive officer of that agency. If the matter is not resolved to the satisfaction of the sponsor, it may be addressed in writing to the Director of the Department.(d) At a minimum, the tenant appeal and grievance procedure must include the following: (1) Oral or written request for informal hearing written a reasonable time after the basis for appeal or grievance arose;(2) A prompt informal hearing and written decision to the tenant including the right to a formal hearing;(3) Oral or written request for a formal hearing within a reasonable time after such request and before an impartial person jointly selected by the sponsor and tenant. If they cannot agree on such a person, each may appoint a representative who, together, shall appoint a third person who shall comprise the hearing panel.(4) The hearing be held in a manner to ensure fairness and the provision of basic safeguards of due process after at least three days written notice to the parties. The decision shall be based solely on a preponderance of evidence presented at the hearing.(5) If the tenant or sponsor fails to appear at the hearing, the hearing officer or panel may, in its discretion, either postpone the matter for no more than five days or make a determination that the absent party waived the right to the hearing.(6) Within two weeks of the request for the hearing, the hearing officer or panel shall prepare a written decision to be sent to the sponsor, tenant, responsible agency and Department.(e) If the hearing relates to an eviction or termination, in addition to the requirements of subdivision (d), the procedure must include a requirement that the housing sponsor must first make a showing of "good cause" for eviction and must thereafter sustain the burden of proof as to that issue.(f) Neither utilization of nor participation in any of the dispute resolution procedures in this section shall constitute a waiver of, or affect in any manner whatsoever, any rights of the tenant, prospective tenant, or sponsor may have to a trial de novo or judicial review in any judicial proceedings which may thereafter be brought in the matter.Cal. Code Regs. Tit. 25, § 7862
Note: Authority cited: Section 50737, Health and Safety Code. Reference: Sections 50746, 50749, 50756 and 50767, Health and Safety Code.