Cal. Code Regs. tit. 23 § 370

Current through Register 2024 Notice Reg. No. 43, October 25, 2024
Section 370 - Definitions

The following terms shall mean:

"Average Annual Net Earnings" means one-half of any net earnings of the business or farm operation, before Federal and State income taxes, during the two taxable years immediately preceding the taxable year in which the business or farm operation moves from the real property acquired, or during such other period as the Department determines to be more equitable for establishing such earnings, and includes any compensation paid by the business or farm operation to the owner, his spouse or his dependents during such period. The term "owner" as used in this definition includes the sole proprietorship, the principal partners in a partnership, and the principal stockholders of a corporation, as determined by the Department. For purposes of determining a principal stockholder, stock held by a husband, his wife and their dependent children shall be treated as one unit.

"Base Monthly Rent" means the lesser of the average monthly rental paid by the displaced person for the three-month period prior to initiation of negotiations for the parcel and 25% of the displaced person's average monthly income. The economic rent may be considered the average monthly rental when the displaced person was the owner-occupant of the acquired dwelling or if the rental actually paid was not reasonably equal to market rentals for similar dwellings. The "average monthly rental paid" shall include any supplements supplied by others, except when required by law, such supplement is to be discontinued upon vacation of the property.

"Business" means any lawful activity, excepting a farm operation, conducted:

(1) Primarily for the purchase, sale, lease or rental of personal and real property, and for the manufacture, processing, or marketing of products, commodities, or any other personal property; or
(2) Primarily for the sale of services to the public; or
(3) Primarily by a non-profit organization; or
(4) Solely for the purpose of moving and related expenses under Section 370.15, for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display or displays, whether or not such display or displays are located on the premises on which any of the above activities are conducted.

"Comparable Replacement Dwelling" means a dwelling which satisfies each of the following standards:

(1) Decent, safe and sanitary (as defined in Section 370.04), and comparable to the acquired dwelling with respect to number of rooms, habitable living space and type and quality of construction, but not lesser in rooms or living space than necessary to accommodate the displaced person. To the extent practicable and consistent with this section, the replacement dwelling should be functionally equivalent and substantially the same as the acquired dwelling, but not excluding newly constructed housing.
(2) In an area not subjected to unreasonable adverse environmental conditions from either natural or man-made sources, and not generally less desirable than the acquired dwelling with respect to public utilities, public and commercial facilities and neighborhood conditions, including schools and municipal services, and reasonably accessible to the displaced person's present or potential place of employment; provided that a potential place of employment may not be used to satisfy the accessibility requirement if the displaced person objects for a reasonable cause.

The Act and these regulations do not require the replacement dwelling be generally as desirable as the acquired dwelling with respect to environmental characteristics. Though a displaced person does not have to accept a dwelling subject to unreasonable adverse environmental conditions, neither is the Department required to duplicate environmental characteristics, such as scenic vistas or proximity to the ocean, lakes, rivers, forests or other natural phenomena.

If the displaced person so requests, every reasonable effort shall be made to relocate such person within or near to his existing neighborhood. Whenever practicable, the replacement dwelling shall be reasonably close to relatives, friends, services or organizations with whom there is an existing dependency relationship.

(3) Available on the private market to the displaced person and available to all persons regardless of race, color, sex, marital status, religion, or national origin in a manner consistent with Title VIII of the Civil Rights Act of 1968.
(4) Within the financial means of the displaced person. A replacement dwelling is within the financial means of the displaced person if the monthly housing costs (including payments for mortgage, insurance and property taxes) or rental cost (including reasonably comparable utility and recurring expenses such as gardening, garaging, and similar necessary fees) minus any replacement housing payment available to the person under the provisions of these regulations does not exceed twenty-five percent (25%) of the person's average monthly income. A replacement dwelling is within the financial means of a displaced person also if the purchase price of the dwelling, including related increased interest costs and other reasonable expenses, does not exceed the amount of just compensation provided for the acquired dwelling and the replacement housing payments available to the person under these regulations.

"Conventional Loan" means a promissory note secured by a trust deed or mortgage made by a bank or savings and loan association. A conventional loan is not insured or guaranteed by an agency of the State or Federal government.

"Counted Room" means that space in a dwelling unit containing the usual quantity of household furniture, equipment and personal property. It shall include such space as a recreation room, living room, library, study, dining room, kitchen, laundry room, basement, bedroom, and garage. Rooms or storage areas which contain substantial amounts of personal property equivalent to one or more rooms may be counted as additional rooms.

"Date of Initiation of Negotiations for the Parcel" means the date of the first written offer to purchase the real property.

"Department" means the Department of Water Resources.

"Director" means the Director of the Department of Water Resources.

"Displaced Person" means any person who moves from real property, or who moves his personal property from real property, either as a result of the acquisition of such real property, in whole or in part, by the Department or by any person having an agreement with or acting on behalf of a public entity, or as the result of a written order from the Department to vacate the real property for public use.

A displaced person may or may not qualify as an "eligible person," as defined in these regulations.

"Dwelling" means the primary residence of a person, including any single-family residence, a single-family unit in a two-family, multi-family or multipurpose building, a unit of a condominium or cooperative housing project, a nonhousekeeping unit, a mobilehome, or any other residential unit considered to be part of the real property acquired. A residence need not be decent, safe and sanitary to be a dwelling. A second home shall be considered to be a dwelling only for the purpose of establishing eligibility for payment of moving expense benefits.

"Economic Rent" means the reasonable rental expectancy if the property were available for rent or lease on the open market based on the rent or lease payment being paid for comparable space as distinguished from actual or contract rent or lease payment paid for the acquired property.

"Effective Rate of Interest" means the annual percentage rate paid on the debt of a mortgage as a result of including debt service charges in the total interest to be paid on the mortgage debt, as an incident to the extension of credit, when such debt service charges are normal to the market.

"Elderly Household" means a household in which the head of household or spouse is 62 years or older.

"Eligible Person" means any displaced person who is, or becomes, lawfully entitled to any relocation payment under these regulations.

"Existing Patronage" means the net annual average dollar volume of business transacted during the two taxable years immediately preceding the taxable year in which the business is relocated.

"Family" means two or more individuals, one of whom is the head of a household, plus all other individuals regardless of blood or legal ties who live with and are considered a part of the family unit. Where two or more individuals occupy the same family dwelling with no identifiable head of a household, they shall be treated as one family for replacement housing payment purposes.

"Farm Operation" means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use and customarily producing such products or commodities in sufficient quantity to be capable of contributing materially to the operator's support.

"Gross Income" means the total annual income of an individual, or where a family is displaced, the total annual income of the adult members of the household, irrespective of other expenses and voluntary or involuntary deductions and including, but not limited to, salaries, wages, public assistance payments, tips, commissions, unemployment, rents, royalties, dividends, interest, profits, pensions and annuities, less the following:

(1) A deduction of $500 for each dependent in excess of three.
(2) A deduction of ten percent (10%) of the total annual income for an elderly or handicapped household.
(3) A deduction for recurring, extraordinary medical expenses (defined for this purpose to mean medical expenses in excess of three percent of total annual income) where not compensated for or covered by insurance or other sources, such as public assistance or tort recovery.
(4) A deduction of reasonable amounts paid for the care of children or sick or incapacitated family members when determined to be necessary to employment of the household head or spouse, except that the amount deducted shall not exceed the amount of income received by the person thus released.

Gross income is divided by twelve (12) to ascertain the average monthly income. Relocation and property acquisition payments are not to be considered as income for determination of financial means.

"Handicapped Household" means a household in which any member is handicapped or disabled.

"Mobilehome" means a structure, transportable in one or more sections which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities and includes the plumbing, heating, air conditioning, and electric systems contained therein. A self-propelled vehicle is not a mobilehome.

"Mortgage" means such classes of liens, including Deeds of Trust as are commonly given to secure advances on, or the unpaid purchase price of, real property, under the laws of the State of California, together with the credit instruments, if any, secured thereby.

"Moving Expense" means the costs necessary to pack, crate, disconnect, dismantle, load, insure, temporarily store, remove, transport, unpack, uncrate, reassemble, reconnect, reinstall, and unload machinery, equipment, or other personal property (including goods and inventory kept for sale) not acquired by the Department, including connection charges imposed by public utilities for starting utility service and necessary temporary lodging and transportation of eligible persons. Moving expense shall not include:

(1) The cost of construction or improvement at the new location to replace property for which compensation was paid in the acquisition;
(2) Any loss of, or damage to, personal property caused by the fault or negligence of the displaced person, his agent, or employee in the process of moving where insurance to cover such loss or damage was available;
(3) Any payment for moving personal property where such property is purchased as part of the acquisition;
(4) Additional expenses incurred because of living in a new location;
(5) Cost of moving structures, improvements or other real property in which the displaced person reserved ownership;
(6) Interest on loans to cover moving expenses;
(7) Loss of goodwill;
(8) Loss of business or profits;
(9) Loss of trained employees;
(10) Personal injury;
(11) Payments for search costs in connection with locating a replacement dwelling.

"Nonprofit Organization" means a corporation, partnership, individual or other public or private entity, engaged in a business, professional or institutional activity on a nonprofit basis, necessitating fixtures, equipment, stock in trade, or other tangible property for the carrying on of the business, profession or institutional activity on the premises.

"Owner." A person "owns a dwelling" if he:

(1) Holds fee title, a life estate, a fifty (50) year lease, or a lease with not less than twenty (20) years to run from date of acquisition of the property for the project;
(2) Holds an interest in a cooperative housing project which includes the right of occupancy of a dwelling unit therein;
(3) Is the contract purchaser of any of the foregoing estates or interests;
(4) Has a leasehold interest with an option to purchase;
(5) Owns a mobile unit which under State law is determined to be real property, not personal property;
(6) Who has succeeded to any of the foregoing interests by devise, bequest, inheritance or operation of law. In the event of acquisition of ownership by any of the foregoing methods, the tenure of ownership, not occupancy, of the succeeding owner shall include the tenure of the preceding owner.

"Owner-Occupant" means an owner who occupies the residential dwelling being acquired by the Department as his primary residence.

"Person" means any individual, family, partnership, corporation or association.

"Prepaid Expenses" means items paid in advance by the seller of real property and prorated between such seller and the buyer of such real property at the close of escrow including, but not limited to real property taxes, fire insurance, homeowners' association dues and assessment payments.

"Primary Residence" means a residential dwelling which is occupied as the occupant's domicile. A dwelling will qualify as a primary residence when:

(1) The occupant has lived in the dwelling to be acquired for more than 50% of the time in the year prior to the State's first written offer; and
(2) The occupant officially acknowledges the residential dwelling as his primary residence by voter registration, address on tax returns, home owners exemption, mailing address, proximity to occupant's work, schools, etc.

"Purchase" as used in connection with claiming replacement housing payments with respect to:

(1) Real property means the close of escrow by which the title to replacement property was conveyed to the claimant of a relocation payment; or if no escrow was used, "purchase" means the delivery to such claimant of the deed to the replacement property or the delivery of a completely executed installment contract for purchase.
(2) Mobile homes means the registration of the vehicle with the California Department of Motor Vehicles in the name of the claimant.
(3) For purpose of this Article, the leasing of a condominium or other suitable dwelling for a fifty (50) year period, or for a term which exceeds the life expectancy of the displaced person as determined from the most recent life tables in Vital Statistics of the United States, as published by the Public Health Service of the Department of Health, Education and Welfare, shall be deemed a purchase of a condominium or other dwelling.

"Relocation Payment" means any payment made under the provisions of this Article; including, but not limited to, payments for: actual or reasonable moving expense, payments made in-lieu of moving expense, purchase differential payments, rental differential payments, interest differential payments, and payments covering incidental expenses of the acquisition of replacement properties.

"Stated Mortgage Interest Rate" means the annual percentage rate to be paid on the debt of a mortgage as set forth in the mortgage or other credit instrument.

"Tenant-Occupant" means a person who rents or is otherwise in lawful possession of a dwelling, including a sleeping room, which is owned by another and is the displacee's primary residence.

Cal. Code Regs. Tit. 23, § 370

1. Renumbering of Subchapter 1.6 (Articles 1-2, Sections 380-390) to Subchapter 1.7 and new Subchapter 1.6 (Articles 1-3, Sections 370-370.40, not consecutive) filed 1-18-80; effective thirtieth day thereafter (Register 80, No. 3).

Note: Authority cited: Section 7267.8, Government Code. Reference: Section 7268, Government Code and "Guidelines" adopted by the Commission of Housing and Community Development.

1. Renumbering of Subchapter 1.6 (Articles 1-2, Sections 380-390) to Subchapter 1.7 and new Subchapter 1.6 (Articles 1-3, Sections 370-370.40, not consecutive) filed 1-18-80; effective thirtieth day thereafter (Register 80, No. 3).