Cal. Code Regs. tit. 25 § 8095

Current through Register 2024 Notice Reg. No. 50, December 13, 2024
Section 8095 - Project Selection
(a) Projects shall not be eligible for rating and ranking unless the application demonstrates that all of the following conditions exist:
(1) The applicant is an eligible sponsor pursuant to section 8078;
(2) The project involves an eligible project pursuant to section 8077;
(3) All proposed uses of program funds are eligible pursuant to section 8079;
(4) The application is complete pursuant to section 8094;
(5) The project will maintain fiscal integrity consistent with affordable rents in the assisted units.
(6) The project site is free from severe adverse environmental conditions, such as the presence of toxic waste that is economically infeasible to remove, that cannot be mitigated and is reasonably accessible to public transportation, shopping, medical services, recreation, schools, and employment in relation to the needs of the project tenants.
(7) In projects targeting households in need of any direct or supportive tenant services, the project provides those services suitable to the needs of the tenants.
(b) Projects shall not be denied funding solely because projected operating income is insufficient to make interest payments on the program loan.
(c) Where the application meets the requirements of subdivision (a), the proposed project will be rated to determine its compliance with the following priority requirements. The application must receive a minimum of 60 percent of the total possible priority points in order to qualify for funding. Applications receiving 60 percent or more of the total possible points shall be ranked based on their point scores, with applications scoring higher receiving a higher ranking. Applications shall be eligible to receive commitments of available funds in a priority order based on their ranking. If criterion (2) is not applicable to the proposed project, the total number of points possible will be reduced by the number of points in that criterion; and the 60 percent will be calculated on the reduced maximum possible points. The maximum score for each of the following seven criteria is 10:
(1) The extent to which the project maximizes program benefits to eligible households with the lowest incomes as evidenced by the following:
(A) The sum of the number of very low-income units and the number of very low-income nonassisted units, divided by the total number of assisted units.
(B) The proposed length of term of the program regulatory agreement, in excess of the program's minimum regulatory requirement.
(2) The number of assisted units with three or more bedrooms, divided by the total number of assisted units, (not applicable to residential hotels).
(3) Need, in the area, of the proposed project as approved by the department for the type of housing provided by the proposed project. The department shall issue an evaluation of need for market areas within California based on the criteria listed below. The sponsor in its application may submit other or additional information and data to rebut or supplement the department's evaluation with respect to the need within the individual project's area. Where the department determines that the sponsor's data provides a more accurate evaluation of need, it shall base its rating on such data.
(A) Low vacancy rate for rental housing.
(B) Typical local market-rate rents as a high percentage of the income limit for very low-income households. The income limit for very low-income households is provided in section 6932 pursuant to Health and Safety Code section 50105. For example, in Sacramento County the typical market-rate rent for a three-bedroom rental is $750, while the monthly income for a very low-income family of four is $1,562.50. Such a family will pay 48% of their income to rent such a dwelling unit. Since affordable rent is set at 25% of income pursuant to section of title 256922 of title 25, 48% of income is high.
(C) Length of wait for units in comparable subsidized housing developments.
(D) High rental housing development costs, in comparison to costs in other areas of the state.
(4) The extent to which the proposed project complements the implementation of an existing housing program in the local agency in which the proposed project is located. "Local agency" means the same as defined in section 50077 of the Health and Safety Code. Points shall be allocated based upon the following criteria:
(A) The extent to which the local agency has an existing housing program, such as a housing element in compliance with the requirements of article 10.6, commencing with section 65580, of chapter 3, division 1 of title 7 of the Government Code, or a similar plan or policy formally considered by the local city council or board of supervisors. A plan or policy shall ordinarily be deemed to be similarly based upon the extent to which it addresses affordable housing issues such as the following: an assessment of need in the area and an inventory of resources and any constraints on those resources; a statement of the community's goals, objectives and policies relative to the maintenance, preservation, improvement and development of housing; a program which sets forth a schedule of actions which the local government has undertaken, is undertaking and intends to undertake to implement these goals; and a program for preserving existing assisted housing developments. Examples of actions which a local government may have taken, is taking, or may intend to take in implementing the community's goals, objectives and policies include the following: demonstrated performance in support of the development of affordable housing; utilization of federal, state, and local financing and subsidy programs; land use development controls; and regulatory provisions, concessions and incentives.
(B) The extent to which the local agency is providing, or could provide, financial or nonfinancial assistance to the applicant's project. Financial assistance is defined as assistance that is equal to at least five percent of the project development cost, excluding any costs of tax-credit syndication, or $250,000, whichever is less. Nonfinancial assistance includes forms of assistance such as the granting of density bonuses, the modification of development standards, and the fast tracking of local approvals, but does not include simply the provision of technical assistance, consultation or advice.
(5) The program loan amount divided by the sum of the total development cost of all assisted units and lower income nonassisted units. Total development cost does not include any costs of tax-credit syndication.
(6) The degree of the project's economic feasibility, as demonstrated by the following:
(A) The capacity of the applicant, including its board, staff and any consultants, as evidenced by previous development and ownership experience with residential projects and by the applicant's financial, operational and organizational stability.
(B) The readiness of the project to start construction as evidenced by the status of local development approvals and project financing commitments.
(7) The applicant's budget for construction and construction-related expenses, such as architectural, building permit, and local development fees, divided by typical costs for the same sized project, as estimated by the department.

Maximum possible points70

Cal. Code Regs. Tit. 25, § 8095

1. New section filed 12-29-89 as an emergency; operative 12-29-89 (Register 90, No. 3). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 4-30-90.
2. New section refiled 4-26-90 as an emergency; operative 4-26-90 (Register 90, No. 23). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 8-24-90.
3. Amendment refiled 7-23-90 as an emergency; operative 7-23-90 (Register 90, No. 39). A Certificate of Compliance must be transmitted to OAL by 11-20-90 or emergency language will be repealed by operation of law on the following day.
4. New section refiled 8-27-90 as an emergency; operative 8-27-90 (Register 90, No. 42). A Certificate of Compliance must be transmitted to OAL by 12-26-90 or emergency language will be repealed by operation of law on the following day.
5. Amendment refiled 11-16-90 as an emergency; operative 11-16-90 (Register 91, No. 1). A Certificate of Compliance must be transmitted to OAL by 3-18-91 or emergency language will be repealed by operation of law on the following day.
6. New section refiled 12-19-90 as an emergency pursuant to Health and Safety Code section 50771.3; operative 12-19-90 (Register 91, No. 4). A Certificate of Compliance must be transmitted to OAL by 4-18-91 or emergency language will be repealed by operation of law on the following day.
7. Certificate of Compliance as to 11-16-90 and 12-19-90 orders transmitted to OAL 1-4-91; disapproved by OAL 2-4-91 (Register 91, No. 13).
8. New section refiled 2-20-91 as an emergency; operative 2-20-91 (Register 91, No. 13). A Certificate of Compliance must be transmitted to OAL by 6-17-91 or emergency language will be repealed by operation of law on the following day.
9. Certificate of Compliance as to 6-14-91 order including amendment of subsections (a) and (c) transmitted to OAL 5-15-91 and filed 6-14-91 (Register 91, No. 38).
10. Editorial correction of printing errors in subsections (c)(1)(A) and (c)(3)(B) (Register 91, No. 46).

Note: Authority cited: Section 50771.1, Health and Safety Code. Reference: Sections 50735 and 50771.1, Health and Safety Code.

1. New section filed 12-29-89 as an emergency; operative 12-29-89 (Register 90, No. 3). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 4-30-90.
2. New section refiled 4-26-90 as an emergency; operative 4-26-90 (Register 90, No. 23). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 8-24-90.
3. Amendment refiled 7-23-90 as an emergency; operative 7-23-90 (Register 90, No. 39). A Certificate of Compliance must be transmitted to OAL by 11- 20-90 or emergency language will be repealed by operation of law on the following day.
4. New section refiled 8-27-90 as an emergency; operative 8-27-90 (Register 90, No. 42). A Certificate of Compliance must be transmitted to OAL by 12-26-90 or emergency language will be repealed by operation of law on the following day.
5. Amendment refiled 11-16-90 as an emergency; operative 11-16-90 (Register 91, No. 1). A Certificate of Compliance must be transmitted to OAL by 3-18-91 or emergency language will be repealed by operation of law on the following day.
6. New section refiled 12-19-90 as an emergency pursuant to Health and Safety Code section 50771.3; operative 12-19-90 (Register 91, No. 4). A Certificate of Compliance must be transmitted to OAL by 4-18-91 or emergency language will be repealed by operation of law on the following day.
7. Certificate of Compliance as to 11-16-90 and 12-19-90 orders transmitted to OAL 1-4-91; disapproved by OAL 2-4-91 (Register 91, No. 13).
8. New section refiled 2-20-91 as an emergency; operative 2-20-91 (Register 91, No. 13). A Certificate of Compliance must be transmitted to OAL by 6-17-91 or emergency language will be repealed by operation of law on the following day.
9. Certificate of Compliance as to 6-14-91 order including amendment of subsections (a) and (c) transmitted to OAL 5-15-91 and filed 6-14-91 (Register 91, No. 38).
10. Editorial correction of printing errors in subsections (c)(1)(A) and (c)(3)(B) (Register 91, No. 46).