Cal. Code Regs. tit. 25 § 8111

Current through Register 2024 Notice Reg. No. 50, December 13, 2024
Section 8111 - Definitions

In addition to the definitions found in Chapter 2 (commencing with section 50050), of Part 1 of Division 31 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. "Account" means the Family Housing Demonstration Account.
b. "Affordable rent" means rent for an assisted unit, determined pursuant to section 8122.
c. "Approved eligible costs" are those eligible costs approved by the Department prior to loan closing.
d. "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.
e. "Assisted unit" means a dwelling unit in a community housing development or the personal living space in a congregate housing development which may include one or more bedrooms depending on family size and characteristics. An "assisted unit" is affordable to an eligible household as a result of a payment made by the department pursuant to this subchapter and is both designated for occupancy by an eligible household and either available on a priority basis to, or occupied by, an eligible household in accordance with a Regulatory Agreement between the department and the sponsor entered into pursuant to section 8133(c).
f. "Commercial space" means space used for commercial purposes, excluding space used for a child care center operated pursuant to section 8127.
g. "Community Housing Development" means a development of 20 or more rental or cooperative units on one or more sites which includes the supportive service requirements pursuant to section 8127 and the job training and placement program requirements pursuant to section 8128.
h. "Congregate Housing Development" means a new or rehabilitated, multi-bedroom structure with common living areas, large enough to accommodate two to ten households who share child care, cleaning, cooking and other household responsibilities pursuant to a resident management agreement as described in section 8137.
i. "Conversion" means the alteration of nonresidential space within an existing structure to create a rental housing development.
j. "Debt service coverage ratio" means the ratio of (1) operating income less operating expenses to (2) debt service payments, excluding voluntary prepayments.
k. "Department" means the Department of Housing and Community Development.
l. "Development costs" are the costs of planning, funding and constructing the project as approved by the Department prior to loan closing.
m. "Director" means the Director of the Department of Housing and Community Development.
n. "Distributions" means the amount of cash received from the operation of a rental housing development and available to be distributed pursuant to section 8123 to the sponsor of that rental housing development, or any party having a beneficial interest in the sponsor entity. Distributions do not include payments for debt service, voluntary loan prepayments, operations, maintenance, payments to required 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.
o. "Elderly" means the same as defined in section 50067 of the Health and Safety Code.
p. "Eligible households" means very low-income households or other lower-income households.
q. "FHDP" means Family Housing Demonstration Program.
r. "Fiscal integrity" means that the total of operating income plus funds released from the operating reserve account pursuant to the Regulatory Agreement is sufficient to:
(1) pay all current operating expenses,
(2) pay all current debt service (excluding deferred interest),
(3) fully fund all reserve accounts established pursuant to the Regulatory Agreement (other than the operating reserve account),
(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.
s. "Handicapped" means the same as defined in section 50072 of the Health and Safety Code.
t. "Household income" means the same as "gross income" as defined in section 6914 of this Title.
u. "Housing cooperative" means the same as "stock cooperative" as defined in section 1351(m) of the Civil Code.
v. "Initial operating year" means the initial period of operation of a rental housing development beginning when the local enforcement agency issues a certificate of occupancy and ending on the last day of the fiscal year of that development.
w. "Lower-income household" means a person or family as defined in section 50079.5 of the Health and Safety Code.
x. "Lower-income nonassisted unit" means a dwelling unit other than an assisted unit which is regulated by virtue of participation in the federal tax credit program (section 42, Title 26 U.S.C.) or state tax credit program (Revenue and Taxation Code, sections 17057.5, 17058, 23610.4 and 23610.5), the HUD Section 202 program (section 1701q, Title 12 U.S.C.), the HUD Section 8 program (section 1437f, Title 42 U.S.C.), or other governmental program where the occupancy and rent restrictions and the term of the occupancy and rent restrictions are equal to or greater than the requirements of the federal tax credit program referenced above.
y. "Lower-income unit" means an assisted unit both designated for occupancy by a low-income household and either available on a priority basis to, or occupied by, a lower-income household.
z. "Nonprofit corporation" means the same as defined in section 50091 of the Health and Safety Code.
aa. "Operating expenses" means the amount annually approved by the department as necessary to pay for the recurring expenses of a rental housing development, such as utilities, maintenance, management, taxes, licenses, supportive services provided pursuant to section 8127, and job training and placement programs provided pursuant to section 8128. Operating expenses does not include debt service, distributions, extraordinary expenses permitted by the Regulatory Agreement or required reserve account deposits.
bb. "Operating income" means all income generated on an annual basis in connection with operation of a rental housing development including rental income for assisted and nonassisted units; rental income for commercial space, laundry and equipment rental fees; rental subsidy payments; payments associated with supportive services provided pursuant to 8127; payments associated with job training and placement programs provided pursuant to 8128; and interest on any accounts related to the rental housing development, with the exception of reserve accounts. "Operating income" does not include draws from the operating reserve fund, security and equipment deposits; or payments for direct or supportive tenant services, other than those provided pursuant to section 8127(a) and (b), that tenants are not required to pay for as a condition of occupancy.
cc. "Other lower-income household" means persons or families as defined in subsection of Title 256928(c) of Title 25.
dd. "Prior to loan closing" is that period of time following the notification of approval for funding pursuant to section 8130(c)(2) and prior to the recording of the legal documents on the project property.
ee. "Program" means the Family Housing Demonstration Program.
ff. "Project" means a rental housing development using program funds; the development, new construction or rehabilitation, and operation thereof; and the financing structure and all agreements and documentation approved in connection therewith.
gg. "Reconstruction" means replacing an existing residential structure with a rental housing development of similar type, amenity level, range of unit sizes, and with not less than an equal number of units.
hh. "Rehabilitation" means repairs or improvements to a substandard rental housing development necessary to correct defects causing it to be a substandard building pursuant to section 17920.3 of the Health and Safety Code, and to meet rehabilitation standards. Rehabilitation also includes reconstruction or conversion.
ii. "Rehabilitation Standards" means
(a) the applicable state or local building or housing standard adopted pursuant to the State Housing Law, Part 1.5 (commencing with section 17910) of Division 13, or continued in effect pursuant thereto, and
(b) room additions necessary to prevent overcrowding of lower-income households.
jj. "Rent" means all mandatory charges, other than deposits, paid by the tenant for the use and occupancy of an assisted unit. For housing cooperatives, "rent" includes, but is not limited to, the carrying charges paid by a member of a housing cooperative.
kk. "Rent-up costs" means costs incurred in connection with marketing and preparing an assisted unit for occupancy while the unit is on the housing market but not rented to its first tenant.
ll. "Rental housing development" means a community housing development or a congregate housing development.
mm. "Residential structure" means a structure or structures used primarily as the place of permanent or customary abode of a person or persons, including a single family dwelling, a multifamily dwelling, a single room occupancy hotel, a condominium or cooperative housing project, or other form of residential occupancy.
nn. "Rural area" means the same as defined in section 50101 of the Health and Safety Code.
oo. "Seismic rehabilitation improvements" means the same as defined in section 50668.5(b)(5).
pp. "Substandard rental housing development" means a structure or structures used or intended to be used as a rental housing development which is a substandard building pursuant to section 17920.3 of the Health and Safety Code.
qq. "Unit" means either a dwelling unit in a community housing development or the personal living space in a congregate housing development, which may include one or more bedrooms depending on family size and characteristics.
rr. "Very low-income household" means a person or family as defined in section 50105 of the Health and Safety Code.
ss. "Very low-income nonassisted unit" means a dwelling unit other than an assisted unit, which is regulated by virtue of participation in a federal or state tax credit program, the HUD section 202 program, or other governmental programs where the occupancy and rent restrictions and the term of occupancy and rent restrictions are equal to or greater than the requirements for very low-income units contained in the federal tax credit program.
tt. "Very low-income unit" means an assisted unit both designated for occupancy by a very low-income household and either available on a priority basis to, or occupied by, a very low-income household.

Cal. Code Regs. Tit. 25, § 8111

1. New section filed 12-14-90 as an emergency; operative 12-14-90 (Register 91, No. 11). A Certificate of Compliance must be transmitted to OAL by 4-15-91 or emergency language will be repealed by operation of law on the following day.
2. Repealed by operation of law on 4-16-91.
3. New section filed 7-19-91 as an emergency; operative 7-19-91 (Register 92, No. 16). A Certificate of Compliance must be transmitted to OAL 11-6-91 or emergency language will be repealed by operation of law on the following day.
4. New section refiled 11-15-91 as an emergency; operative 11-15-91 (Register 92, No. 16). A Certificate of Compliance must be transmitted to OAL 3-16-92 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 11-15-91 order transmitted to OAL 12-12-91 and filed 1-13-92 (Register 92, No. 16).

Note: Authority cited: Sections 50406(n), 50884 and 50895, Health and Safety Code. Reference: Sections 50880, 50881.5, 50882, 50883.5, 50887, 50888.3, 50888.5, 50888.7, 50889.5, 50891, 50891.5, 50893, 50893.3, 50893.5, 50893.7, 50893.9, 50894, 50895, 53130 and 53133, Health and Safety Code; Chapter 16 (commencing with section 7260), division 7, title 1, Government Code.

1. New section filed 12-14-90 as an emergency; operative 12-14-90 (Register 91, No. 11). A Certificate of Compliance must be transmitted to OAL by 4-15-91 or emergency language will be repealed by operation of law on the following day.
2. Repealed by operation of law on 4-16-91.
3. New section filed 7-19-91 as an emergency; operative 7-19-91 (Register 92, No. 16). A Certificate of Compliance must be transmitted to OAL 11-6-91 or emergency language will be repealed by operation of law on the following day.
4. New section refiled 11-15-91 as an emergency; operative 11-15-91 (Register 92, No. 16). A Certificate of Compliance must be transmitted to OAL 3-16-92 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 11-15-91 order transmitted to OAL 12-12-91 and filed 1-13-92 (Register 92, No. 16).