Cal. Code Regs. tit. 25 § 7671

Current through Register 2024 Notice Reg. No. 18, May 3, 2024
Section 7671 - Definitions

In addition to the definitions found in chapter 2 (commencing with section 50050), of part 1 of division 31 of the Health and Safety Code and subchapter 2 (commencing with section 6910) of chapter 6.5 of this Title, the following definitions shall apply to this subchapter. In the event of a conflict between these definitions and those, these definitions prevail for the purposes of this subchapter:

(a) "Assisted unit" means a dwelling unit, or a residential hotel unit, or a bedroom in a group home or congregate home, designated for occupancy or occupied by eligible households.
(b) "Congregate home" means a single-family house occupied by two or more households, each of which is capable of independent living but which chooses to live in one dwelling unit and to share the household responsibilities, including the maintenance of the structure and other responsibilities.
(c) "Conversion" means the alteration of nonresidential space within an existing structure to dwelling units or residential hotel units in a rental housing development.
(d) "Debt service coverage ratio" means the ratio of (1) operating income less operating expenses to (2) debt service payments, excluding prepayments.
(e) "Direct or supportive tenant services" means meals, transportation, recreational and social activities, independent living training, vocational training, counseling, and similar services provided or organized by the sponsor or its agent.
(f) "Director" means the Director of the Department of Housing and Community Development.
(g) "Distributions" means the amount of cash or other benefits received from the operation of the rental housing development and available to be distributed pursuant to section 7684 to the sponsor or any party having a beneficial interest in the sponsor entity, after payment of all due and outstanding obligations incurred in connection with the rental housing development. Distributions do not include payments for debt service, principal repayment, operations, maintenance, payments to required reserve accounts, property management or other services as set forth in the Regulatory Agreement for the rental housing development.
(h) "Eligible households" means very low-income households or other lower income households.
(i) "Fiscal integrity" means that the total of 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, (3) fully fund for at least twelve consecutive months all reserve accounts (other than the operating reserve account) established pursuant to the Regulatory Agreement, (4) maintain a debt service coverage ratio as specified in the Regulatory Agreement, and (5) pay other extraordinary costs permitted by the Regulatory Agreement. The ability to pay any or all of the annual permitted distribution shall not be considered in determining fiscal integrity.
(j) "Fund" means the same as defined in section 8878.16(c) of the Government Code.
(k) "Group home" means a residential structure or structures where two or more handicapped persons or households reside in a group living arrangement and receive direct and supportive services provided under the supervision or oversight of the local public official responsible for services to the designated tenant population, including a residential facility as defined by section 1502 of the Health and Safety Code. Intermediate care or skilled nursing facilities are not considered group homes and are not eligible for funding. For purposes of this definition "handicapped" means a family in which the head of the household is suffering from an orthopedic disability impairing personal mobility or a physical disability affecting his or her ability to obtain employment or a single person with such an orthopedic or physical disability, where the family or person requires special care or facilities in the home; or person requires special care or facilities in the home; or a family in which the head of household suffers from a developmental disability specified in subdivision (a) of section 4512 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.
(l) "Household income" means the same as "gross income" as defined in section 6914 of this Title.
(m) "Initial operating year" means the first year of operation, or portion thereof, of the rehabilitated rental housing development beginning at the time of initial occupancy of an assisted unit and ending on the last day of the fiscal year of that development.
(n) "Limited equity housing cooperative" means an entity defined by section 50076.5 of the Health and Safety Code. All requirements in this subchapter shall be applicable to units and residents of limited equity housing cooperatives unless the context indicates otherwise.
(o) "Local agency" means the same as defined in section 8878.16(d) of the Government Code.
(p) "Lower income household" means persons or families as defined in section 50079.5 of the Health and Safety Code.
(q) "Nonprofit corporation" or "nonprofit sponsor" means the same as "nonprofit corporation" as defined in section 50091 of the Health and Safety Code.
(r) "Operating expenses" means the amount approved by the department that is necessary to pay for the essential recurring expenses of the project, such as utilities, maintenance, management, taxes, and licenses, and mandatory direct or supportive tenant services but not including debt service, required reserve account deposits, or costs for voluntary direct or supportive tenant services.
(s) "Operating income" means all income generated in connection with the operation of the rental housing development including rental income for assisted and non-assisted units, rental income from nonresidential space, laundry and equipment rental fees, rental subsidy payments, and interest on any accounts related to the rental housing development. "Operating income" does not include security and equipment deposits, payments for direct or supportive tenant services that tenants are not required to pay for as a condition of occupancy, or tax benefits received by the sponsor.
(t) "Potentially hazardous building" means the same as defined in section 8875(a) of the Government Code.
(u) "Program" means the California Housing Rehabilitation Program.
(v) "Project" means a rental housing development, the rehabilitation, or rehabilitation and acquisition, and operation thereof, using program funds, and the financing structure and all agreements and documentation approved in connection therewith.
(w) "Reconstruction" means replacing an existing residential structure with a rental housing development of similar type, with not less than an equal number of units and bedrooms and level of amenities.
(x) "Rehabilitation" means repairs and improvements to a substandard rental housing development necessary to correct defects causing it to be a substandard building pursuant to section 17920.3 of the Health and Safety Code, and to meet rehabilitation standards as defined in section 50097 of the Health and Safety Code. Rehabilitation also includes reconstruction or conversion.
(y) "Rent" means all mandatory charges, other than deposits, paid by the tenant for the use and occupancy of an assisted unit and any mandatory charge for direct or supportive tenant services in a rental housing development, whether the units are rented or operated as a limited equity housing cooperative. In a group home, when mandatory charges include direct or supportive tenant services, "rent" means that amount designated for room charges by the Department of Social Services or other agency responsible for services to the designated tenant population.
(z) "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 rented to its first tenant.
(aa) "Rental housing development" means the same as defined in section 50668.5(h) of the Health and Safety Code and includes housing for the elderly or handicapped as authorized in section 50669 of the Health and Safety Code.
(bb) "Rural area" means the same as defined in section 50101 of the Health and Safety Code.
(cc) "Seismic rehabilitation improvements" means the same as defined in section 50668.5(b)(5) of the Health and Safety Code.
(dd) "Substandard rental housing development" means a structure or structures used or intended to be used as a rental housing development which is a substandard building pursuant to section 17920.3 of the Health and Safety Code.
(ee) "Very low-income household" means persons or families as defined in section 50105 of the Health and Safety Code.

Cal. Code Regs. Tit. 25, § 7671

1. New section filed 6-12-89 as an emergency pursuant to Health and Safety Code section 50668.5(g); operative 6-12-89 (Register 89, No. 24). A Certificate of Compliance must be transmitted to OAL within 120 days or the regulation will be repealed on 10-10-89. For history of former subchapter 8 (sections 7700-7714.5, not consecutive), see Register 85, No. 33.
2. New section refiled 10-6-89 as an emergency pursuant to Health and Safety Code section 50668.5(g) and Government Code section 11346.1(h); operative 10-10-89 (Register 89, No. 42). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 2-7-90.
3. New section refiled 2-5-90 as an emergency pursuant to Health and Safety Code section 50668.5(g) and Government Code section 11346.1(h); operative 2-7-90 (Register 90, No. 12). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 6-7-90.
4. Amendment filed 3-5-90 as an emergency pursuant to Health and Safety Code section 50668.5(g); operative 3-5-90 (Register 90, No. 12). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 7-3-90.
5. Certificate of Compliance as to 2-5-90 and 3-5-90 orders including amendment of subsections (b), (f), (k), (l), (s), (w), (x), (y), (aa), (cc) and (dd) transmitted to OAL 5-22-90 and filed 5-29-90 (Register 90, No. 29).

Note: Authority cited: Section 50668.5, Health and Safety Code. Reference: Chapter 6.5 (commencing with section 50660), part 2, division 31, Health and Safety Code; and chapter 12.45 (commencing with section 8878.15), division 1, Title 2, Government Code.

1. New section filed 6-12-89 as an emergency pursuant to Health and Safety Code section 50668.5(g); operative 6-12-89 (Register 89, No. 24). A Certificate of Compliance must be transmitted to OAL within 120 days or the regulation will be repealed on 10-10-89. For history of former subchapter 8 (sections 7700-7714.5, not consecutive), see Register 85, No. 33.
2. New section refiled 10-6-89 as an emergency pursuant to Health and Safety Code section 50668.5(g) and Government Code section 11346.1(h); operative 10-10-89 (Register 89, No. 42). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 2-7-90.
3. New section refiled 2-5-90 as an emergency pursuant to Health and Safety Code section 50668.5(g) and Government Code section 11346.1(h); operative 2-7-90 (Register 90, No. 12). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 6-7-90.
4. Amendment filed 3-5-90 as an emergency pursuant to Health and Safety Code section 50668.5(g); operative 3-5-90 (Register 90, No. 12). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 7-3-90.
5. Certificate of Compliance as to 2-5-90 and 3-5-90 orders including amendment of subsections (b), (f), (k), (l), (s), (w), (x), (y), (aa), (cc) and (dd) transmitted to OAL 5-22-90 and filed 5-29-90 (Register 90, No. 29).