Cal. Code Regs. tit. 25 § 7301

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

Section 7301 - Definitions

In addition to the definitions found in Chapter 2 (commencing with Section 50050), of Part 1 of Division 1 of the Health and Safety Code, and Health and Safety Code Section 50675.2, the following definitions and those found in the Uniform Multifamily Regulations (Chapter 7, subchapter 19, Section 8301) shall apply to this subchapter. In the event of a conflict between the following definitions and those cited above, the following definitions prevail for the purposes of these regulations. The defined terms will be capitalized as they appear in the regulation text. References to code sections refer to sections of these regulations unless otherwise noted:

(a) "Affordable Rents" means Rents established for Assisted Units in accordance with Section 7312.

(b) "Area Median Income" means the most recent applicable county median family income published by TCAC.

(c) "Article XXXIV" means the Article of the California Constitution (Health and Safety Code Section 37000) that requires advance voter approval of certain publicly funded low-rent housing Projects.

(d) "Disabled Household" means a household in which a member has an orthopedic disability impairing personal mobility or a physical disability affecting his or her ability to obtain employment, or in which a person requires special care or facilities in the home. "Disabled Household" also includes a household in which a member has a developmental disability specified in subdivision 4512(a) of the Welfare and Institutions Code, or a mental disorder, which would render him or her eligible to participate in programs of rehabilitation or social services conducted by or on behalf of a public agency, or a single person with such a developmental disability or mental disorder.

(e) "Efficiency Unit" means a Dwelling Unit containing only one habitable room. A room in a structure that is a single-family house at the time of application will not be considered to be an Efficiency Unit eligible for program funds.

(f) "Eligible Households" means households whose incomes do not exceed the income limits specified by TCAC or other, lower income limits agreed to by a Project Sponsor and the Department. In non-Special Needs Population Projects, household income will be calculated on the basis of Units in accordance with TCAC rules and procedures. In Special Needs Populations Projects, household income may be calculated on the basis of bedrooms within a single-family house and bedrooms within an apartment Unit, provided all Project Units are located on the same parcel or on contiguous parcels and the bedrooms are:

(1) occupied by a single individual who is a member of a Special Needs Populations, or an individual member of a Special Needs Populations and his or her relatives or caretaker and

(2) subject to an individual rental or occupancy agreement. In transitional Special Needs Populations Projects, household income may be calculated on the basis of each occupant of each bedroom provided all Project Units are located on the same parcel or on contiguous parcels and no more than 2 unrelated persons are occupying a bedroom.

(g) "Fiscal Integrity" means that the total Operating Income plus funds released pursuant to the Regulatory Agreement from the operating reserve account is sufficient to:

(1) pay all current Operating Expenses;

(2) pay all current debt service (excluding deferred interest);

(3) fully fund all reserve accounts (other than the operating reserve account) established pursuant to the Regulatory Agreement; and

(4) pay other extraordinary costs permitted by the Regulatory Agreement. The ability to pay any or all of the permitted annual Distributions shall not be considered in determining Fiscal Integrity.

(h) "Fund" means the Housing Rehabilitation Loan Fund established pursuant to Section 50661 of the Health and Safety Code.

(i) "Initial Operating Year" means the initial period of operation of the Rental Housing Development, beginning at the time of the initial occupancy of the completed Project and ending on the last day of the fiscal year for the development.

(j) "Manager's Unit" means a Unit in which the on-site manager of the Project resides. A Manager's Unit will not be considered to be an MHP Assisted Unit, nor will it be considered to be a Restricted Unit for the purpose of calculating allowable Distributions. A Manager's Unit will be considered to be a Restricted Unit for the purpose of allocating development costs and may qualify for a loan amount up to the amount applicable to the 60% of AMI level.

(k) "Nonprofit Corporation" means the same as defined in Section 50091 of the Health and Safety Code.

(l) "Refinance" means to pay off all or a portion of existing debt secured by the Project with the proceeds of a Program loan or other financing also secured by the Project.

(m)

(n) "Rehabilitation" means the term as defined in Section 50096 of the Health and Safety Code, including improvements and repairs made to a residential structure acquired for the purpose of preserving its affordability.

(o) "Rent" means the same as "gross Rent," as defined in the Internal Revenue Code (26 USC 42(g)(2)(B). It includes all mandatory charges, other than deposits, paid by the tenant for the use and occupancy of an Assisted Unit, plus a utility allowance established in accordance with TCAC regulations. For Units assisted under the HUD Section 8 or similar rental subsidy program, Rent includes only the tenant contribution portion of the contract rent.

(p) "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 yet rented to its first tenant.

(q) "Residential Hotel" means any building that contains 6 or more Residential Hotel Units, where a majority of the Units are Residential Hotel Units. Single-family houses are not considered Residential Hotels.

(r) "Residential Hotel Unit," also referred to as a single room occupancy Unit or an SRO, means an Efficiency Unit that:

(1) is occupied as a primary residence, and

(2) is subject to state landlord-tenant law pursuant to Chapter 2 (commencing with Section 1940) of Title 5 of Part 4 of Division 3 of the Civil Code. The term also includes a Unit in an "SRO Project" as described in California Code of Regulations, Title 4, Section 10325(g)(3).

(s) "Special Needs Populations" means Disabled Households, agricultural workers, single-parent households, survivors of physical abuse, homeless persons or persons at risk of becoming homeless, chronically ill persons including those with HIV and mental illness, displaced teenage parents (or expectant teenage parents), homeless youth as defined in Government Code section 11139.5, individuals exiting from institutional settings, chronic substance abusers, or other specific groups with unique housing needs as determined by the Department. "Special Needs Populations" do not include seniors or the frail elderly unless they otherwise qualify as a Special Needs Population.

(t) "State Median Income" means the most recent total median family income for California issued by the federal Department of Housing and Urban Development ("HUD"). For the purposes of assigning point scores and establishing income limits for Assisted Units, State Median Income percentages will be expressed as a percentage of Area Median Income rounded up to the next highest five percent increment as calculated annually by the Department.

(u) "Substantial Rehabilitation" means a Rehabilitation Project where the contract for Rehabilitation work equals or exceeds $25,000 per Unit.

Cal. Code Regs. Tit. 25, § 7301

1. New section filed 1-8-2002; operative 1-8-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).
2. Amendment filed 9-29-2003; operative 9-29-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 40).

Note: Authority cited: Sections 50406(n), 50675.1(c) and 50675.11, Health and Safety Code. Reference: Sections 50675, 50675.1(c) and 50675.2, Health and Safety Code.