Section 7689 - Project Selection(a) Projects shall not be considered for funding unless the application demonstrates that all of the following conditions exist: (1) The applicant is an eligible sponsor pursuant to section 7673;(2) The project is eligible pursuant to section 7672;(3) All proposed uses of program funds are eligible pursuant to section 7674;(4) The application is complete pursuant to section 7688;(5) The requested loan amount per unit is consistent with the maximum loan amounts authorized pursuant to section 7677;(6) The estimated loan-to-value ratio is consistent with the requirements of section 7679(a).(b) Subject to the availability of funds, projects that are considered for funding will be rated according to subdivision (c) and ranked pursuant to subdivision (d).(c) When the application meets the requirements of subdivision (a), the application shall be rated according to the following criteria. The application must receive a minimum of 60 percent of the total possible points in order to be ranked pursuant to subdivision (d); and zero points in either criterion (1) or (2) will disqualify the application. If either criterion (4) or (5) is not applicable to the proposed project, the total number of points possible will be reduced by the total number of points possible in that criterion; and 60 percent will be calculated on the reduced maximum possible points:(1) The application demonstrates that the proposed project will maintain fiscal integrity and affordable rents throughout the term of the loan. (30 points)(2) The applicant demonstrates ability or experience in owning, rehabilitating, and operating rental housing, as evidenced by the length and quality of the sponsor's experience and qualifications; the experience and qualifications of individual members of its board, its staff, or consultants. (25 points)(3) The proposed project site is free from severe adverse environmental conditions and is accessible to public transportation, shopping, medical services, recreation, schools, and employment in relation to the needs of the project tenants. (15 points)(4) If applicable, the application contains a relocation plan that minimizes unnecessary cost and extent of relocation. (10 points)(5) In proposed projects targeting households in need of any direct or supportive tenant services, the proposed project provides those services suitable to the needs of the tenants. (10 points)(6) A majority of project costs will be for the correction of health and safety defects. (10 points) Maximum possible points: 100
(d) Where the application meets the requirements of subdivision (c), the proposed project will be ranked to determine its compliance with the following priority requirements. The application must receive a minimum of 60 percent of the total possible priority points in order to qualify for funding. If criterion (2) is not applicable to the proposed project, the total number of points possible will be reduced by the number of points in that criterion; and the 60 percent will be calculated on the reduced maximum possible points. The maximum score for each of the following six criteria is 15:(1) Percentage of total residential units in the proposed project reserved as assisted for occupancy by very low-income households.(2) Percentage of total residential units in the proposed project which are assisted units with three or more bedrooms (not applicable to residential hotels, motels, group homes, congregate homes, and rental housing developments occupied by the handicapped).(3) Need in the area of the proposed project as approved by the department for the type of housing provided by the proposed project, as indicated in the local housing element and other supporting documentation by the following:(A) Low vacancy rate for rental housing as provided by the department through the use of a methodology which ensures uniform rate calculations for all applications.(B) Low vacancy rate in developments comparable to proposed project.(C) Typical local market-rate rents as a high percentage of area median income.(D) Typical comparable market-rate rents as a high percentage of area median income.(E) Length of subsidized housing waiting lists for comparable projects and length of wait for households on these lists.(F) High percentage of substandard rental units in the area of the proposed project.(G) Degree to which local subsidized housing stock serving lower income households has been threatened or lost because of demolition, foreclosure, or subsidy termination.(4) 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, as demonstrated by one of the following. Points shall be allocated based upon the following criteria which are listed in descending order of priority: (A) The local agency has a housing element in substantive compliance with the requirements of law. For the purposes of this subsection, "substantive compliance" is demonstrated by a letter from the department which sets forth findings that the housing element adopted within the timeframes required by section 65588 of the Government Code includes that substance essential to every requirement of article 10.6, commencing with section 65580, of chapter 3 of division 1, of Title 7 of the Government Code. The element identifies the special housing needs which would be served by the applicant's proposed project and the local agency is providing financial or nonfinancial assistance to the applicant's project.(B) The local agency has a housing element in procedural compliance with the law or has an adopted plan or policy for addressing the local housing needs. For the purposes of this subsection, "procedural compliance" means that the local agency has complied with all procedures required by law for the department's review of a draft housing element, local adoption of the element, and submission of the adopted element to the department. The local agency has a program which is providing financial or nonfinancial assistance to the applicant's proposed project.(C) The local agency has a housing element in procedural compliance with the law or has an adopted plan or policy for addressing the local housing needs. There are programs available in the jurisdiction of the local agency in support of lower income housing programs and the programs are providing financial or nonfinancial assistance to the proposed project.(D) The local agency has a housing element in procedural compliance with the law or has an adopted plan or policy for addressing the local housing needs. The local agency has a program which could provide financial or nonfinancial assistance to the proposed project, but which will not provide such assistance.(E) The local agency has no housing element in compliance but has programs in support of lower income housing and is providing financial or nonfinancial assistance to the applicant's proposed project.(F) The local agency has no housing element in compliance but has programs in support of lower income housing which could provide financial assistance to the applicant's proposed project.(G) The local agency has programs in support of lower income housing but there is no assistance available for the applicant's proposed project.(5) To the extent feasible, the proposed project uses available and cost-effective private, local and other funding sources in lieu of program funds.(6) The proposed project maximizes long-term benefit for lower income households, as indicated by the following: (A) Period of time beyond minimum term required by section 7676 that assisted units in the proposed project will be subject to rent and occupancy restrictions similar to program restrictions.(B) The percentage that rents for assisted units in the proposed project are below the program maximum rents for these units. Maximum possible points: 90
(e) Projects which receive 60 percent of the available points shall be recommended for funding to the director of the department. The director shall reject a recommendation for funding if it is determined that the rehabilitation work is insignificant relative to total project costs or that the project is inconsistent with the purposes of the program.Cal. Code Regs. Tit. 25, § 7689
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. 6). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 6-7-90.
4. Amendment of subsections (a)-(c) 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 (a), (c), (d), and (e) 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: Sections 50010, 50053 and 50668.5, Health and Safety 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. 6). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 6-7-90.
4. Amendment of subsections (a)-(c) 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 (a), (c), (d), and (e) transmitted to OAL 5-22-90 and filed 5-29-90 (Register 90, No. 29).