Section 8122 - Rent Standards(a) The department shall establish initial rents for assisted units in each community housing development in accordance with the tables in section 6932 and the following: (1) At the time of initial occupancy of a unit, monthly rents for very low-income units in a community housing development shall not exceed 30 percent of 35 percent of area median income, divided by 12, adjusted by unit size pursuant to subdivision (a)(3), and with an allowance for utility costs pursuant to subdivision (c). The unit size adjustment in subdivision (a)(3) is selected by identifying the size of the unit for which rent must be determined and reading across to determine the applicable household size for that unit. Area median income is determined by selecting from the tables provided in section 6932 for the county in which the unit is located, the amount of income provided as the very low income standard for the "number of persons in the family," which equates with the "applicable household size" identified in subdivision (a)(3).(2) At the time of initial occupancy of a unit, monthly rents for lower-income units in a community housing development shall not exceed 30 percent of 60 percent of area median income, divided by 12, adjusted by unit size pursuant to subdivision (a)(3), and with an allowance for utility costs pursuant to subdivision (c). The unit size adjustment in subdivision (a)(3) is selected by identifying the size of the unit for which rent must be determined and reading across to determine the applicable household size for that unit. Area median income is determined by selecting from the tables provided in section 6932 for the county in which the unit is located, the amount of income provided as the lower-income standard for the "number of persons in the family," which equates with the "applicable household size" identified in subdivision (a)(3).(3) Maximum rent calculated pursuant to (a)(1) and (a)(2) above shall be adjusted by unit size as follows: Unit Size | Applicable Household Size to Determine Rent Limit |
| 0 bedroom | | 1 person |
| 1 bedroom | | 2 persons |
| 2 bedrooms | | 3 persons |
| 3 bedrooms | | 4 persons |
| 4 bedrooms | | 6 persons |
| 5 bedrooms | | 8 persons |
(b) The department shall establish initial rents for assisted units in each congregate housing development in accordance with the tables in section 6932 and the following: (1) At the time of initial occupancy of a unit, monthly rents for very low-income units in a congregate housing development shall not exceed 30 percent of 35 percent of area median income adjusted by unit size pursuant to subdivision (a)(3), divided by 12 and with an allowance for utility costs pursuant to subdivision (d). For the purpose of determining initial rents, the sponsor shall configure the congregate housing development into enough units so that two to ten households can be accommodated in accordance with the occupancy requirements contained in subdivision 8121 (a)(6) and as approved by the department. The unit size adjustment in subdivision (a)(3) is selected by identifying the size of the unit for which rent must be determined and reading across to determine the applicable household size for that unit. Area median income is determined by selecting from the tables provided in section 6932 for the county in which the unit is located, the amount of income provided as the very low-income standard for the "number of persons in the family," which equates with the "applicable household size" identified in subdivision (a)(3).(2) At the time of initial occupancy of a unit, monthly rents for lower-income units in a congregate housing development shall not exceed 30 percent of 60 percent of area median income adjusted by unit size pursuant to subdivision (a)(3), divided by 12 and with an allowance for utility costs pursuant to subdivision (d). For the purpose of determining initial rents, the sponsor shall configure the congregate housing development into enough units so that two to ten households can be accommodated in accordance with the occupancy requirements contained in subdivision 8121 (a)(6) and as approved by the department. The unit size adjustment in subdivision (a)(3) is selected by identifying the size of the unit for which rent must be determined and reading across to determine the applicable household size for that unit. Area median income is determined by selecting from the tables provided in section 6932 for the county in which the unit is located, the amount of income provided as the lower-income standard for the "number of persons in the family," which equates with the "applicable household size" identified in subdivision (a)(3).(c) The maximum rent to be charged to tenants in assisted units in community housing developments shall be determined by deducting from the maximum amounts calculated pursuant to (a)(1), (a)(2), and (a)(3) a utility allowance for the appropriate unit size. The utility allowance shall be the allowance for monthly utility costs made or approved by the U.S. Department of Housing and Urban Development pursuant to 24 CFR § 813.102 . In order to obtain the current utility allowances for cities and unincorporated areas located in the following counties, please contact the Department of Housing and Community Development, Attention: Housing Assistance Program, Post Office Box 952054, Sacramento, CA 94252-2054 or phone (916) 324-7696: | Amador | Calavaras | Colusa | El Dorado |
| Glenn | Inyo | Lassen | Lake |
| Mendocino | Modoc | Mono | Nevada |
| Placer | Sierra | Siskiyou | Trinity |
| Tuolumne | | | |
Utility allowances for the balance of cities and unincorporated areas in California not located in the above noted counties may be obtained by contacting the Housing Authority established for that county pursuant to section 34240 of the Health and Safety Code.
(1) Where a tenant does not directly pay for utilities, the utility allowance deduction shall be zero.(2) Upon demonstration by the sponsor that the amount of utility cost per unit anticipated for the proposed project differs from the amount of the utility allowance per unit derived pursuant to subdivision (c), the department shall allow as a utility allowance use of the utility cost per unit demonstrated by the sponsor. The demonstration by the sponsor shall consist of the submittal of actual utility usage cost data per unit for an existing project constructed within the last five years, of the same type of construction as the proposed project, and with the same type of tenant population as the proposed project.(d) The maximum rent to be charged to tenants in assisted units in congregate housing developments shall be determined by deducting from the maximum amounts calculated pursuant to (b)(1) and (b)(2), a utility allowance determined according to a methodology approved by the department prior to loan closing and based on the allocation of probable actual cost of utilities to households residing in the congregate housing development. Such methodology shall incorporate actual utility usage cost data per unit for an existing project constructed within the last five years, of the same type of construction as the proposed project, and with the same type of tenant population as the proposed project.(e) For projects involving the rehabilitation of a rental housing development, the after-rehabilitation rent for an assisted unit occupied by an eligible household at the time of initial application to the program may not exceed the greater of the rent charged at the time of initial program application, or twenty-five percent (25%) of the subject tenant household's monthly gross income. In no event is the rent to exceed that which would be charged pursuant to subdivisions (a) and (b), or (c) and (d) above.(f) As used in this section "rent" does not include any payment to a sponsor under section 8 of the United States Housing Act of 1937 or any comparable federal or state rental assistance program.(g) After the initial operating year, rents for assisted units may be adjusted no more often than annually. The amount of adjustment shall be in accordance with the following: (1) Rents may be increased at a rate not to exceed the most recent annual average percentage change in the Western Region for residential rents for all urban consumers as published by the United States Department of Labor, Bureau of Labor Statistics in the monthly publication, "CPI Detailed Report," multiplied by the ratio of the previous year's budgeted operating expenses attributed to assisted units, plus required reserves attributed to assisted units, to the previous year's budgeted operating income attributed to assisted units.(2) In addition to the rent increase allowed pursuant to subdivision (g)(1), rents for assisted units shall be increased by an amount not to exceed the amount necessary to increase the operating income to cover changes in debt service (A) on an adjustable rate loan secured by a mortgage on the rental housing development, which was approved by the department as part of the original project; or(B) resulting from a refinancing of a loan for the project approved by the department pursuant to subsection 8135(c).(3) Notwithstanding the provisions of subsections (g)(1) and (g)(2), rents shall be decreased, or the amount of the otherwise allowable increase reduced, if there is a reduction in the amount of required payments on an adjustable rate loan secured by a mortgage on the rental housing development due to a decrease in the interest rate for that loan or a reduction in operating costs. The aggregate monthly amount of this rent decrease, or reduction in an otherwise allowable increase, shall be equal to the amount of the monthly payment reduction attributable to assisted units.(4) Any rent adjustment at the end of the initial operating year shall be prorated based on the length of the initial operating year.(h) The sponsor shall be allowed to implement a greater rent increase for assisted units than that allowed in subdivision (g) if the sponsor can demonstrate, to the department's satisfaction, that the increase is necessary to pay for unusual or unforeseeable increases in costs related to the assisted units and to preserve fiscal integrity. The sponsor shall not receive a greater rent increase on the grounds that fiscal integrity is threatened by a shortfall in income, unanticipated expenses or other financial problems attributable to commercial space, nonassisted units, any supportive service, or the job training and placement program.(i) Any allowable rent increase or portion thereof not implemented in assisted units by the sponsor in any given year shall not be accumulated for implementation in subsequent years.(j) Where the assisted units are rent restricted as a condition of receiving low-income housing tax credits or other state or federal rent subsidy programs, the initial rent for assisted units and subsequent rent increases shall be the lower of those permitted under this section or those permitted under the applicable tax credit or other program.(k) The sponsor shall submit requests for rent adjustments pursuant to subdivision (g) or (h) above as part of the annual operating budget pursuant to section 8138. If the department doesn't respond within sixty days of receipt of the request, the request is deemed approved.(l) Sixty days prior to the time any rent adjustment is effective, the sponsor shall provide written notice to eligible households of the adjustment and the availability of informal meetings with the sponsor to review the proposed rent adjustment. Upon request by any affected tenant, the sponsor shall provide, in a timely manner, the information submitted to the department pursuant to subdivision (g), (h) and (k).Cal. Code Regs. Tit. 25, § 8122
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 50881.5(b) and 50893.7(h), Health and Safety 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).