Section 7478 - Funding Priorities and Loan Distribution Policies(a) Priorities for allocation of Special User Housing Rehabilitation Program funds shall be given to applications which: (1) address a major unmet local housing need, as evidenced by indicators such as low vacancy rates and high market rents in comparable unsubsidized developments and long waiting lists for comparable subsidized developments, and as evidenced by specific provisions in a local public entity's adopted Housing Element, Housing Assistance Plan or Redevelopment Plan which identifies needs and implementation strategies directly related to the type of project for which the application was submitted;(2) prevent or minimize permanent displacement of existing residents;(3) show evidence of local support in the form of financial assistance or assistance in the rehabilitation process;(4) demonstrate superior ability to manage the development after rehabilitation, as evidenced by relevant factors such as experience managing comparable developments, qualifications of the management team, and the quality of the sponsor's plans for management;(5) involve projects located on sites appropriate to the needs of prospective residents;(6) maximize long-term benefit for very low income households;(7) demonstrate superior ability to acquire and rehabilitate the project, as demonstrated by relevant factors such as previous development experience, general qualifications of the development team, and financial stability;(8) correct major health and safety code violations rather than make only general property improvements;(9) use Program funds in a cost-effective manner, as measured by such relevant indicators of cost-effectiveness as the per-unit allocation of Program funds and the ratio of Program funds to other funds used on the project;(10) provide for after-rehabilitation rents below the local market average; and(11) meet other priorities that may be established administratively by the Department.(b) At least twenty percent of the total value of loans provided from the Fund to the Special User Housing Rehabilitation Program shall be for rental housing developments located in rural areas.(c) At least twenty-five percent of the total value of loans provided from the Fund to the Program for rental housing developments other than residential hotels shall benefit handicapped households.Cal. Code Regs. Tit. 25, § 7478
1. Amendment filed 4-5-84; effective thirtieth day thereafter (Register 84, No. 14).
2. Editorial correction of subsections (a)(4), (a)(7) and (a)(9) filed 4-23-84; designated effective 5-5-84 (Register 84, No. 17). Note: Authority cited: Section 50662, Health and Safety Code; Reference: Sections 50669-50670, Health and Safety Code.
1. Amendment filed 4-5-84; effective thirtieth day thereafter (Register 84, No. 14).
2. Editorial correction of subsections (a)(4), (a)(7) and (a)(9) filed 4-23-84; designated effective 5-5-84 (Register 84, No. 17).