Cal. Code Regs. tit. 4 § 5191

Current through Register 2024 Notice Reg. No. 44, November 1, 2024

Section 5191 - Income and Rent Restrictions

All Qualified Residential Rental Projects must meet the following minimum income and rent restrictions, which will be included in the Committee Resolution.

(a) Minimum Income Restrictions. A minimum of ten percent (10%) of the units in a Qualified Residential Rental Project must have Gross Rents that are restricted to households with incomes no greater than fifty percent (50%) of the AMI. The rent restricted units that meet this requirement, with the exception of Mixed Income Projects, acquisition rehabilitation projects already subject to a Residential Rental Regulatory Agreement or a federal, state, or local operating or rental assistance agreement, and units located on the upper level floors of high-rise developments, shall be generally distributed in terms of location and number of bedrooms throughout the Project. All projects shall offer a range of sizes and number of bedrooms comparable to those units that are available to other tenants.

(b) Minimum Rent Restrictions. Except for projects subject to an existing Residential Rental Regulatory Agreement that propose tenant paid rents and income targeting not exceeding one hundred-five percent (105%) of the current rents and targeting and operate with a vacancy rate of no more than five percent (5%), for single room occupancy and special needs housing a vacancy rate of no more than ten percent (10%) as demonstrated by a market study completed pursuant to 26 U.S.C. Section 42(m)(1)(A)(iii); the proposed tenant paid rents for each Restricted Rental Unit type (defined by bedroom count) in the proposed development shall be at least ten percent (10%) below the weighted average rent for comparable market rate units and each Restricted Rental Unit's value ratio (dollars per square foot) shall be at or below the weighted average unit value ratio for comparable market rate units as demonstrated in a Rent Comparability Matrix meeting the requirements of article 4 of this chapter.

(c) Utility Allowance Evidence. All Projects shall be subject to the use of Gross Rent as defined by Section 5170 and shall provide evidence in one of the following forms:

(1) A letter from the local public housing authority that includes a current utility allowance schedule, certifies that the proposed Project is located within its jurisdiction and itemizes which components of the utility allowance schedule applies to the Project. Projects that are subject to a Department of Housing and Urban Development (HUD) Section 8 Housing Assistance Payments Program do not require a housing authority certification and may rely solely on the utility allowance included in a HUD rent schedule provided the schedule specifically identifies the name of the Project.

(2) If a Project is to be substantially retrofitted for energy conservation or will be newly constructed with substantial energy conservation, the Applicant may submit revised utility allowances based on the projected reduction in utility costs after construction or retrofit. The revised utility allowances shall be validated by either of the following:

(A) A letter from the public utility or housing authority having jurisdiction over the Project that validates the revised utility allowances based on the proposed use of energy conservation materials, or

(B) A current utility allowance estimate consistent with 26 CFR section 1.42-10 (4-1-17), which is hereby incorporated by reference. The Applicant must indicate which components of the utility allowance schedule apply to the Project. For buildings that are using an energy consumption model utility allowance estimate, the estimate shall be calculated using the most recent version of the California Utility Allowance Calculator (CUAC) developed by the California Energy Commission; and in accordance with the California Tax Credit Allocation Committee's minimum requirements for utility allowance estimates, Title 4, Division 17, Chapter 1, Section 10322(h)(21).

Cal. Code Regs. Tit. 4, § 5191

1. New section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.
3. New section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 4-1-2011 order, including amendment of subsection (a) and repealer and new subsection (b), transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).
5. Amendment of subsection (b) filed 11-9-2015 as an emergency pursuant to Government Code section 8869.94; operative 11-9-2015 (Register 2015, No. 46). A Certificate of Compliance must be transmitted to OAL by 5-9-2016 or emergency language will be repealed by operation of law on the following day.
6. Certificate of Compliance as to 11-9-2015 order transmitted to OAL 1-27-2016 and filed 3-10-2016 (Register 2016, No. 11).
7. Editorial correction of HISTORY 6 (Register 2016, No. 25).
8. Amendment filed 12-15-2016 as an emergency pursuant to Government Code section 8869.94; operative 12-15-2016 (Register 2016, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-13-2017 or emergency language will be repealed by operation of law on the following day.
9. Amendment refiled 5-30-2017 as an emergency pursuant to Government Code section 8869.94; operative 6-14-2017 (Register 2017, No. 22). A Certificate of Compliance must be transmitted to OAL by 9-12-2017 or emergency language will be repealed by operation of law on the following day.
10. Reinstatement of section as it existed prior to 12-15-2016 emergency amendment by operation of Government Code section 11346.1(f) (Register 2017, No. 38).
11. Amendment filed 10-13-2017; operative 10-13-2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 41).
12. New subsections (c)-(c)(2)(B) filed 12-1-2017 as an emergency; operative 12-1-2017 (Register 2017, No. 48). A Certificate of Compliance must be transmitted to OAL by 5-30-2018 or emergency language will be repealed by operation of law on the following day.
13. Amendment of subsections (c)-(c)(2)(B) refiled 5-25-2018 as an emergency, including further nonsubstantive amendment to subsection (c); operative 5-31-2018 (Register 2018, No. 21). A Certificate of Compliance must be transmitted to OAL by 8-29-2018 or emergency language will be repealed by operation of law on the following day.
14. Certificate of Compliance as to 5-25-2018 order transmitted to OAL 8-9-2018 and filed 9-21-2018 (Register 2018, No. 38).
15. Amendment of subsections (a) and (c) filed 2-1-2021 as an emergency pursuant to Governmental Code section 8869.94; operative 2-1-2021. Emergency expiration extended 60 days (Executive Order N-40-20) plus an additional 60 days (Executive Order N-71-20) (Register 2021, No. 6). A Certificate of Compliance must be transmitted to OAL by 11-30-2021 or emergency language will be repealed by operation of law on the following day.
16. Refiling of 2-1-2021 orders on 12-3-2021 as an emergency; operative 12-3-2021 (Register 2021, No. 49). A Certificate of Compliance must be transmitted to OAL by 3-3-2022 or emergency language will be repealed by operation of law on the following day.
17. Certificate of Compliance as to 12-3-2021 order transmitted to OAL 4-11-2022 and filed 5-23-2022 (Register 2022, No. 21).

Note: Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

1. New section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.
3. New section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 4-1-2011 order, including amendment of subsection (a) and repealer and new subsection (b), transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).
5. Amendment of subsection (b) filed 11-9-2015 as an emergency pursuant to Government Code section 8869.94; operative 11-9-2015 (Register 2015, No. 46). A Certificate of Compliance must be transmitted to OAL by 5-9-2016 or emergency language will be repealed by operation of law on the following day.
6. Certificate of Compliance as to 2-4-2016 order, including nonsubstantive amendment of section, transmitted to OAL 1-27-2016 and filed 3/10/2016 (Register 2016, No. 11).
7. Editorial correction of History 6 (Register 2016, No. 25).
8. Amendment filed 12-15-2016 as an emergency pursuant to Government Code section 8869.94; operative 12-15-2016 (Register 2016, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-13-2017 or emergency language will be repealed by operation of law on the following day.
9. Amendment refiled 5-30-2017 as an emergency pursuant to Government Code section 8869.94; operative 6-14-2017 (Register 2017, No. 22). A Certificate of Compliance must be transmitted to OAL by 9-12-2017 or emergency language will be repealed by operation of law on the following day.
10. Reinstatement of section as it existed prior to 12-15-2016 emergency amendment by operation of Government Code section 11346.1(f) (Register 2017, No. 38).
11. Amendment filed 10-13-2017; operative 10/13/2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 41).
12. New subsections (c)-(c)(2)(B) filed 12-1-2017 as an emergency; operative 12-1-2017 (Register 2017, No. 48). A Certificate of Compliance must be transmitted to OAL by 5-30-2018 or emergency language will be repealed by operation of law on the following day.
13. Amendment of subsections (c)-(c)(2)(B) refiled 5-25-2018 as an emergency, including further nonsubstantive amendment to subsection (c); operative 5/31/2018 (Register 2018, No. 21). A Certificate of Compliance must be transmitted to OAL by 8-29-2018 or emergency language will be repealed by operation of law on the following day.
14. Certificate of Compliance as to 5-25-2018 order transmitted to OAL 8-9-2018 and filed 9/21/2018 (Register 2018, No. 38).
15. Amendment of subsections (a) and (c) filed 2-1-2021 as an emergency pursuant to Governmental Code section 8869.94; operative 2/1/2021. Emergency expiration extended 60 days (Executive Order N-40-20) plus an additional 60 days (Executive Order N-71-20) (Register 2021, No. 6). A Certificate of Compliance must be transmitted to OAL by 11-30-2021 or emergency language will be repealed by operation of law on the following day.
16. Refiling of 2-1-2021 orders on 12-3-2021 as an emergency; operative 12/3/2021 (Register 2021, No. 49). A Certificate of Compliance must be transmitted to OAL by 3-3-2022 or emergency language will be repealed by operation of law on the following day.
17. Certificate of Compliance as to 12-3-2021 order transmitted to OAL 4-11-2022 and filed 5/23/2022 (Register 2022, No. 21).