Section 8132 - 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 8113;(2) The project involves an eligible project pursuant to section 8112;(3) All proposed uses of program funds are eligible pursuant to section 8114;(4) The application is complete pursuant to section 8131;(5) The project will maintain fiscal integrity consistent with meeting the requirements of the program.(6) The project site is free from severe adverse environmental conditions that cannot be mitigated -- such as the presence of toxic waste that is economically infeasible to remove -- and is reasonably accessible to public transportation, shopping, medical services, recreation, schools, and employment in relation to the needs of the project tenants.(b) Projects shall not be denied funding solely because projected operating income is insufficient to make 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 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 consistent with the standards of subdivisions (e), (f) and (g) of section 8130. The maximum score for each of the following seven criteria is 15: (1) The extent to which the project serves the greater number of eligible households with the lowest incomes for the greatest period of time 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 units.(B) The proposed length of term of the regulatory agreement, in excess of the program's minimum requirement as described in section 8115(b).(2) Need in the area of the proposed project 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 that are 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.(3) 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 similar 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 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's development cost, excluding any costs of 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.(4) The extent of sponsor participation or participation of other funding sources, as determined by the product of the program loan amount divided by the sum of the total development cost of all assisted units and lower-income nonassisted units in the project. Total development cost does not include any costs of syndication.(5) The extent to which the proposed project maximizes the use of other private and public sources of funding and other services to assist in providing supportive services and job training and placement services as evidenced by the following: (A) the sum of all operating subsidy funds for supportive services and job training and placement services and the estimated value of in-kind services, committed to the project for the project's first year of operation divided by the number of assisted units; and(B) the feasibility of the plans for supportive services and job training and placement services considering the size, nature, and location of the proposed project.(6) The capacity of the applicant, including its board, staff and any consultants to own, construct or rehabilitate, and manage the rental housing development, as evidenced by: (A) the applicant's current financial, operational and organizational stability;(B) the applicant's previous development and ownership experience with residential projects; and(C) the applicant's previous experience at operating similar supportive services and job training and placement programs.(7) The degree of the project's economic feasibility demonstrated by the readiness of the project to start construction, evidenced by the following: (A) the status of local development approvals; and(B) the status of all project financing commitments. Maximum possible points 105
Cal. Code Regs. Tit. 25, § 8132
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 50889.5 and 50891(a), 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).