Cal. Code Regs. tit. 25 § 8121

Current through Register 2024 Notice Reg. No. 50, December 13, 2024

Section 8121 - Tenancy Standards

(a) Sponsors shall select only eligible households as tenants of assisted units, and shall annually verify household income and size to determine continued eligibility and appropriate unit size. As part of the management plan required by section 8137(e), the sponsor shall develop a tenant selection plan for assisted units which shall be subject to the approval of the department. Any change to the plan shall be subject to the approval of the department. The plan shall include the following:

(1) an affirmative marketing plan for eligible households which shall include policies and steps to ensure equal access to all housing units in the rental housing development for all persons in any category protected by federal, state or local laws governing discrimination. Where a significant number of persons in the area of the rental housing development have limited fluency in English, the plan shall require that publications implementing the affirmative marketing plan be provided in the native languages of those persons;

(2) reasonable criteria for selection or rejection of applicants which shall not discriminate in violation of any federal, state or local laws or base tenant selection on any other arbitrary factor. Reasonable criteria shall include:

(A) for each rental housing development, a priority to applicants who are employed at nearby facilities or who potentially could be employed at nearby facilities through publicly assisted or other job- training or entry-level employment programs and who are willing to participate in the job training and placement program provided pursuant to section 8128(a); and

(B) for each congregate housing development, the willingness and ability of an applicant to enter into a resident management agreement as described in section 8137;

(C) for each community housing development, a priority to applicants who are employed in the management and operation of the community housing development or its child care center.

(3) a prohibition of local residency requirements; and

(4) tenant selection procedures that include the following requirements:

(A) selection of tenants based on order of application, lottery, or other reasonable method approved by the department;

(B) notification to a tenant applicant of either;

(1) eligibility to occupy an assisted unit and, based on turnover history, the approximate date when a unit may be available;

(2) ineligibility to occupy an assisted unit, the reason for the ineligibility, and the right to appeal this determination pursuant to section 8121(e); and

(C) maintenance of a waiting list of eligible households which have applied to occupy assisted units which if applicable, distinguishes between lower- and very low-income applicants, and elderly households and families with children.

(5) for community housing developments, tenant occupancy standards that shall be used by the sponsor upon both initial occupancy and annual recertification to determine the size of a unit to be occupied by a tenant, as follows:

Unit Size		No. of Persons in Household Minimum	Maximum
	0-BR	1	2
	1-BR	1	3
	2-BR	2	5
	3-BR	4	7
	4-BR	6	9
	5-BR	8	11

(A) A sponsor may assign a unit other than that specified above if the sponsor reasonably determines that special circumstances warrant a variance and the reasons are documented in the tenant's file.

(B) If, upon annual recertification, the tenant's household size has changed and no longer meets the occupancy standards of this subdivision, the household shall be required to move to the next available unit which will meet the requirements of this subdivision.

(6) for congregate housing developments, tenant occupancy standards that require no less than one person and no more than three persons per bedroom, except as approved by the department subsequent to review of unique design features, such as flexible walls.

(b) Upon prior written approval by the department, the sponsor may establish income limits for lower-income units at a level below the upper limit for lower-income households.

(c) In housing cooperatives, share purchase terms for assisted units shall be limited as follows:

(1) For each initial member household, the total share purchase price shall not be more than two-and-one-half percent (2.5%) of the prorated development cost of the unit.

(2) For each subsequent member household, the total share purchase price shall not be more than the sum of the total share purchase price previously charged to the member household selling the share and any share appreciation due to the member household selling the share. Share appreciation shall be at a simple interest rate approved by the department, not to exceed eight percent (8%) per annum of the portion of the total share purchase price actually paid in by the member household selling the share.

(3) Upon occupancy by an initial member household or subsequent member household, the required cash contribution to be applied towards the total share purchase price shall not exceed the lesser of either ten percent (10%) of the member household's income for the calendar year prior to occupancy or the total share purchase price; and in no event shall the cash contribution required upon initial occupancy be less than two times the monthly rent for the unit.

(4) The sponsor may loan members of the housing cooperative the difference between the total share purchase price and the member household's cash contribution. The terms and conditions of such loans shall be subject to department approval.

(d) The sponsor shall submit for department approval the form of the rental or occupancy agreement for assisted units prior to its use. The form shall include the following:

(1) provisions requiring good cause for termination of tenancy. One or more of the following constitutes "good cause":

(A) failure by the tenant to maintain eligibility under the program;

(B) noncompliance by the tenant with material provisions of the rental or occupancy agreement, including one or more substantial violations of the rental or occupancy agreement or habitual minor violations of the rental or occupancy agreement which

1. adversely affect the health and safety of any person or the right of any tenant to the quiet enjoyment of the leased premises and related project facilities;

2. substantially interfere with the management, maintenance, or operation of the rental housing development;

3. substantially interfere with the supportive service component or the job training and placement component of the project, other than failure to participate, as set forth in section 8127 and 8128, respectively; or

4. result from the failure or refusal to pay, in a timely fashion, rent or other permitted charges when due. Failure or refusal to pay, in a timely fashion, is a minor violation if payment is made during the three-day notice period;

(C) substantial failure or repeated minor failure by a tenant to carry out material obligations under state or local law;

(D) subletting, by the tenant, of all or any portion of the assisted unit;

(E) substantial failure or repeated minor failure by a tenant in a congregate housing development to comply with material provisions of the resident management agreement described in section 8137 or with any rules established by the mutual agreement of the residents of the congregate housing development and the sponsor; or

(F) any other action or conduct of the tenant constituting significant problems which can be reasonably resolved only by eviction of the tenant, provided that the sponsor has previously notified the tenant that the conduct or action in question would be considered cause for eviction. Examples of action or conduct in this category include the refusal of a tenant, after written notice, to accept reasonable rules or any reasonable changes in the rental or occupancy agreement or the refusal to recertify income or household size;

(2) a provision requiring that the facts constituting the grounds for any eviction be set forth in the notice to quit provided to the tenant pursuant to state law;

(3) notice of the appeal and grievance procedures established by the sponsor pursuant to subdivision (e) and incorporation of the procedure by reference;

(4) notice of the right to an informal hearing with the sponsor to review any proposed rent increase pursuant to section 8122;

(5) a requirement that the tenant annually recertify household income and size;

(6) for congregate housing developments, a requirement that the tenant comply with the resident management agreement described in 8137(c).

(e) Each sponsor shall adopt an appeal and grievance procedure to resolve grievances filed by tenants and allow appeals of actions taken by the sponsor with respect to tenants' occupancy in the rental housing development and prospective tenants' applications for occupancy.

(1) the appeal and grievance procedure shall be included in the sponsor's management plan described in section 8137(e) and shall, at a minimum, include the following:

(A) a requirement for delivery of a written copy of the appeal and grievance procedure to each tenant and applicant;

(B) procedures for informal dispute resolution;

(C) a right to a hearing before an impartial body, which shall consist of one or more persons, with the power to render a final decision on the appeal or grievance;

(D) procedures for the appointment of the impartial hearing body;

(E) procedures for conducting such hearing, including the right to present evidence without regard to formal rules of evidence, the right to be represented by any other person and the right to a written decision from the hearing body which shall be based solely on evidence presented at the hearing; and

(F) a requirement that the sponsor extend any time period imposed pursuant to a formal eviction procedure, including any filing in a court of competent jurisdiction, during the pendency of the hearing.

(2) Neither utilization of nor participation in any aspect of the appeal and grievance procedure shall constitute a waiver of or affect the rights of the tenant, prospective tenant, or sponsor to a trial de novo or judicial review in any judicial proceeding which may thereafter be brought in the matter.

(f) If, upon annual recertification, a tenant's household income exceeds the eligibility limit for lower-income households, the tenant's rental or occupancy agreement for the unit as an assisted unit shall terminate six months after the notice of termination which sponsor must provide within one month of recertification.

(1) The sponsor may approve one additional six-month extension of the rental or occupancy agreement if the rental housing development is located in a market area where:

(A) the vacancy rate for rental housing is less than five percent; and

(B) the Fair Market Rent exceeds the average of the Fair Market Rents for all metropolitan statistical areas in California. For purposes of this subsection, "Fair Market Rent" means the most current Fair Market Rent for Existing Housing for two-bedroom units, as published annually in the "Federal Register" by the U.S. Department of Housing and Urban Development pursuant to section 8(c)(1) of the United States Housing Act of 1937.

(2) In rental housing developments containing nonassisted units, the tenant shall have the right of first refusal for any available nonassisted unit of a size consistent with the occupancy standards set forth in section 8121(a)(5) and (6). This right shall begin upon recertification and shall expire upon termination of the tenant's rental or occupancy agreement of the assisted unit.

(3) If the tenant provides to the sponsor additional evidence which establishes income eligibility prior to the expiration of the tenant's rental or occupancy agreement, the tenant's lease shall not be terminated.

(4) If the assisted unit is subject to state or federal rules governing low-income housing tax credits as referenced in section 8111(x) or other federal or state housing assistance, those eligibility provisions shall govern continued eligibility for occupancy, if necessary to permit participation in such programs.

(5) If the tenant's income exceeds the limit for lower-income units established by the sponsor pursuant to subdivision (b), that fact alone shall not be cause for termination of the tenant's rental or occupancy agreement or for requiring the tenant to vacate its unit, if the tenant's income remains below the eligibility limit for lower-income households.

(6) In a limited equity housing cooperative where the household income of a cooperative member occupying an assisted unit exceeds the upper limit for lower-income households, the member shall not be required to vacate the assisted unit.

(A) After recertification and determination of ineligibility, the sponsor shall immediately notify the member that the carrying charge will increase to a market rate payment six months after said notification. Market rate payment shall be the carrying charge paid for a comparable nonassisted unit, without an allowance for utilities, or where there are no comparable nonassisted units, the rent charged for comparable units in the area. This market rate payment shall be subject to department approval.

(B) The next available membership share for occupancy in a comparable unit shall be sold to an eligible household until the mix between lower and very low-income units required by the Regulatory Agreement is achieved.

(g) If the income of a household residing in a very low-income unit changes from very low-income to other lower-income at the time of recertification, the following shall apply:

(1) The household shall not be required to vacate the unit;

(2) The sponsor shall charge rent that does not exceed the current rent allowed for any comparable lower-income unit pursuant to section 8122, or where there are no such units, the maximum rent which would be allowed pursuant to section 8122;

(3) The sponsor shall designate the unit as a lower-income unit; and

(4) The sponsor shall designate the next available comparable assisted unit as a very low-income unit until the mix between lower-income and very low-income units required by the Regulatory Agreement as provided in section 8133(c) is achieved.

Cal. Code Regs. Tit. 25, § 8121

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 50893.7 and 50894, Health and Safety Code.