Jurris.COM
Article 2. Financing of California Health And Safety Code >> Division 31. >> Part 3. >> Chapter 6.7. >> Article 2.
Subject only to the limitations of this chapter, the agency
may, in addition to any other power conferred by this part, issue
revenue bonds as provided in Chapter 7 (commencing with Section
51350) for the purpose of financing the acquisition, construction,
rehabilitation, refinancing, or development of multifamily rental
housing and for the provision of capital improvements in connection
with, and determined necessary to, such multifamily rental housing.
Subject only to the limitations prescribed in this chapter,
the agency, in addition to any other power conferred by this part
with respect to multifamily rental housing and housing developments,
may make or undertake commitments to make loans to housing sponsors
to finance the acquisition, construction, rehabilitation,
refinancing, or development of multifamily rental housing. For this
purpose, the agency shall enter into regulatory contracts and other
agreements with housing sponsors receiving loans pursuant to this
chapter to ensure compliance with this chapter.
Subject only to the limitations prescribed in this chapter,
the agency, in addition to any other power conferred by this part,
may purchase, or undertake, directly or indirectly through lending
institutions, commitments to purchase, construction loans and
mortgage loans originated in accordance with a financing agreement
with the agency to finance the acquisition, construction,
rehabilitation, refinancing, or development of multifamily rental
housing and for the provision of capital improvements in connection
with, and determined necessary to, such multifamily rental housing.
For the purposes of this chapter, the agency shall have the
power to issue its bonds to defray, in whole or in part, the costs of
studies and surveys, insurance premiums, underwriting fees, legal,
accounting and marketing services incurred in connection with the
issuance and sale of bonds, including bond and mortgage reserve
accounts, trustee, custodian, and rating agency fees, and such other
costs as are reasonably related to the foregoing.
The agency may, in conjunction with the financing of
multifamily rental housing pursuant to this chapter, finance the
development of commercial property for lease, subject to all of the
following conditions:
(a) No more than 10 percent of the proceeds of any revenue bonds issued pursuant to this chapter may be used to develop the commercial property for lease.
(b) The commercial property developed will be located on the same parcel or on a parcel adjacent to a multifamily rental housing development.
(c) As a condition of such financing, any lease payments collected in excess of payments necessary for debt service, operating expenses and any required reserves related to such property, shall be used to reduce rents on units reserved for occupancy by lower-income households and very low income households in a multifamily rental housing development.
(a) No more than 10 percent of the proceeds of any revenue bonds issued pursuant to this chapter may be used to develop the commercial property for lease.
(b) The commercial property developed will be located on the same parcel or on a parcel adjacent to a multifamily rental housing development.
(c) As a condition of such financing, any lease payments collected in excess of payments necessary for debt service, operating expenses and any required reserves related to such property, shall be used to reduce rents on units reserved for occupancy by lower-income households and very low income households in a multifamily rental housing development.
(a) (1) Not less than 20 percent of the total number of
units in a multifamily rental housing development financed, or for
which financing has been extended or committed, pursuant to this
chapter from the proceeds of sale of each bond issuance of the agency
shall be for occupancy on a priority basis by lower income
households. If a multifamily rental housing development is located
within a targeted area, as defined by Section 143(j) of Title 26 of
the United States Code, not less than 15 percent of the total number
of units financed, or for which financing has been extended or
committed pursuant to this chapter, shall be for occupancy on a
priority basis by lower income households. Not less than one-half of
the units required for occupancy on a priority basis by lower income
households shall be for occupancy on a priority basis for very low
income households.
The rental payments on the units required for occupancy by very
low income households paid by the persons occupying the units
(excluding any supplemental rental assistance from the state, the
federal government, or any other public agency to those persons or on
behalf of those units) shall not exceed 30 percent of 50 percent of
area median income. If the sponsor elects to establish a base rent
for all or part of the units for lower income households and very low
income households, the base rents shall be adjusted for household
size. In adjusting rents for household size, the agency shall assume
that one person will occupy a studio unit, two persons will occupy a
one-bedroom unit, three persons will occupy a two-bedroom unit, four
persons will occupy a three-bedroom unit, and five persons will
occupy a four-bedroom unit.
(2) The local agency issuing permits for the development of the multifamily rental housing development shall consider opportunities to contribute to the economic feasibility of the units and to the provision of units for very low income households through concessions and inducements such as the following:
(A) Reductions in construction and design requirements.
(B) Reductions in setback and square footage requirements and the ratio of vehicular parking spaces that would otherwise be required.
(C) Granting density bonuses.
(D) Providing expedited processing of permits.
(E) Modifying zoning code requirements to allow mixed use zoning.
(F) Reducing or eliminating fees and charges for filing and processing applications, petitions, permits, planning services, water and sewer connections, and other fees and charges.
(G) Reducing or eliminating requirements relating to monetary exactions, dedications, reservations of land, or construction of public facilities.
(H) Other financial incentives or concessions for the multifamily rental housing development which result in identifiable cost reductions, as determined by the agency. The agency shall ensure that the local agency issuing permits for the development considers its responsibilities under this section and makes a good faith effort to enhance the feasibility of the project and to provide housing for lower income households and very low income households.
(3) The agency shall not permit a selection criteria to be applied to certificate holders under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f) that is any more burdensome than the criteria applied to all other prospective tenants.
(4) It is the intent of the Legislature that the agency finance projects that assist in meeting the urgent need for providing shelter for lower income households, very low income households, and persons and families of low or moderate income. To that end, the quality of materials and the amenities provided should not be excessive so as to hinder the prospect of achieving the stated goal. The Legislature finds and declares that the design standards utilized by the agency in the past including, but not limited to, the design requirements adopted to govern the new construction program under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), are substantially in excess of those required for a decent, healthy, and safe residential unit and intends, by the amendment adding this paragraph to this section by the Statutes of 1985, that the agency finance multifamily rental developments with substantially less costly design requirements than those required by the agency prior to January 1, 1986.
(5) It is the intent of the Legislature that the agency finance projects that assist in meeting the urgent need for providing shelter for families. To that end, developments with three- and four-bedroom units affordable to larger families shall have priority over competing developments.
(b) As a condition of financing pursuant to this chapter, the housing sponsor shall enter into a regulatory agreement with the agency providing that units reserved for occupancy by lower income households remain available on a priority basis for occupancy until the bonds are retired. The regulatory agreement shall contain a provision making the covenants and conditions of the agreement binding upon successors in interest of the housing sponsor and, notwithstanding any other provision of law, these burdens of the regulatory agreement shall run with the land. The regulatory agreement shall be recorded in the office of the county recorder of the county in which the multifamily rental housing development is located. The regulatory agreement shall be recorded in the grantor-grantee index to the name of the property owner as grantor and to the name of the agency as grantee.
(c) The agency shall ensure that units occupied by lower income households are of comparable quality and offer a range of sizes and number of bedrooms comparable to those units which are available to other tenants.
(d) (1) The agency shall give priority to processing construction loans and mortgage loans or may take other steps such as reducing loan fees for multifamily rental housing developments which incorporate innovative and energy-efficient techniques which reduce development or operating costs and which have the lowest feasible per unit cost, as determined by the agency, based on efficiency of design, the elimination of improvements that are not required by applicable building standards, or a reduction in the amount of local fees imposed on the development.
(2) The agency shall give equal priority to processing construction loans and mortgage loans or may take other steps such as reducing loan fees on multifamily rental housing developments which do any of the following:
(A) Utilize federal housing or development assistance.
(B) Utilize redevelopment funds or other local financial assistance, including, but not limited to, contributions of land, or for which local fees have been reduced.
(C) Are sponsored by a nonprofit housing organization.
(D) Provide a significant number of housing units, as determined by the agency, as part of a coordinated jobs and housing plan adopted by a local government.
(E) Exceed a ratio whereby 20 percent of the units are reserved for occupancy by lower income households, or whereby 10 percent of the units are reserved for occupancy by very low income households, or which provide units for lower income households or very low income households for the longest period of time beyond the minimum number of years.
(e) (1) New and existing rental housing developments may be syndicated after prior written approval of the agency. The agency shall grant that approval only after the agency determines that the terms and conditions of the syndication comply with this section.
(2) The terms and conditions of the syndication shall not reduce or limit any of the requirements of this chapter or regulations adopted or documents executed pursuant to this chapter. No requirements of the state shall be subordinated to the syndication agreement. A syndication shall not result in the provision of fewer assisted units, or the reduction of any benefits or services, than were in existence prior to the syndication agreement.
(f) At the option of the agency, the amendments to this section made by Chapter 907 of the Statutes of 1983 may be made applicable to any multifamily rental housing development financed by the issuance, on or after September 3, 1982, of bonds authorized by this chapter.
(2) The local agency issuing permits for the development of the multifamily rental housing development shall consider opportunities to contribute to the economic feasibility of the units and to the provision of units for very low income households through concessions and inducements such as the following:
(A) Reductions in construction and design requirements.
(B) Reductions in setback and square footage requirements and the ratio of vehicular parking spaces that would otherwise be required.
(C) Granting density bonuses.
(D) Providing expedited processing of permits.
(E) Modifying zoning code requirements to allow mixed use zoning.
(F) Reducing or eliminating fees and charges for filing and processing applications, petitions, permits, planning services, water and sewer connections, and other fees and charges.
(G) Reducing or eliminating requirements relating to monetary exactions, dedications, reservations of land, or construction of public facilities.
(H) Other financial incentives or concessions for the multifamily rental housing development which result in identifiable cost reductions, as determined by the agency. The agency shall ensure that the local agency issuing permits for the development considers its responsibilities under this section and makes a good faith effort to enhance the feasibility of the project and to provide housing for lower income households and very low income households.
(3) The agency shall not permit a selection criteria to be applied to certificate holders under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f) that is any more burdensome than the criteria applied to all other prospective tenants.
(4) It is the intent of the Legislature that the agency finance projects that assist in meeting the urgent need for providing shelter for lower income households, very low income households, and persons and families of low or moderate income. To that end, the quality of materials and the amenities provided should not be excessive so as to hinder the prospect of achieving the stated goal. The Legislature finds and declares that the design standards utilized by the agency in the past including, but not limited to, the design requirements adopted to govern the new construction program under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), are substantially in excess of those required for a decent, healthy, and safe residential unit and intends, by the amendment adding this paragraph to this section by the Statutes of 1985, that the agency finance multifamily rental developments with substantially less costly design requirements than those required by the agency prior to January 1, 1986.
(5) It is the intent of the Legislature that the agency finance projects that assist in meeting the urgent need for providing shelter for families. To that end, developments with three- and four-bedroom units affordable to larger families shall have priority over competing developments.
(b) As a condition of financing pursuant to this chapter, the housing sponsor shall enter into a regulatory agreement with the agency providing that units reserved for occupancy by lower income households remain available on a priority basis for occupancy until the bonds are retired. The regulatory agreement shall contain a provision making the covenants and conditions of the agreement binding upon successors in interest of the housing sponsor and, notwithstanding any other provision of law, these burdens of the regulatory agreement shall run with the land. The regulatory agreement shall be recorded in the office of the county recorder of the county in which the multifamily rental housing development is located. The regulatory agreement shall be recorded in the grantor-grantee index to the name of the property owner as grantor and to the name of the agency as grantee.
(c) The agency shall ensure that units occupied by lower income households are of comparable quality and offer a range of sizes and number of bedrooms comparable to those units which are available to other tenants.
(d) (1) The agency shall give priority to processing construction loans and mortgage loans or may take other steps such as reducing loan fees for multifamily rental housing developments which incorporate innovative and energy-efficient techniques which reduce development or operating costs and which have the lowest feasible per unit cost, as determined by the agency, based on efficiency of design, the elimination of improvements that are not required by applicable building standards, or a reduction in the amount of local fees imposed on the development.
(2) The agency shall give equal priority to processing construction loans and mortgage loans or may take other steps such as reducing loan fees on multifamily rental housing developments which do any of the following:
(A) Utilize federal housing or development assistance.
(B) Utilize redevelopment funds or other local financial assistance, including, but not limited to, contributions of land, or for which local fees have been reduced.
(C) Are sponsored by a nonprofit housing organization.
(D) Provide a significant number of housing units, as determined by the agency, as part of a coordinated jobs and housing plan adopted by a local government.
(E) Exceed a ratio whereby 20 percent of the units are reserved for occupancy by lower income households, or whereby 10 percent of the units are reserved for occupancy by very low income households, or which provide units for lower income households or very low income households for the longest period of time beyond the minimum number of years.
(e) (1) New and existing rental housing developments may be syndicated after prior written approval of the agency. The agency shall grant that approval only after the agency determines that the terms and conditions of the syndication comply with this section.
(2) The terms and conditions of the syndication shall not reduce or limit any of the requirements of this chapter or regulations adopted or documents executed pursuant to this chapter. No requirements of the state shall be subordinated to the syndication agreement. A syndication shall not result in the provision of fewer assisted units, or the reduction of any benefits or services, than were in existence prior to the syndication agreement.
(f) At the option of the agency, the amendments to this section made by Chapter 907 of the Statutes of 1983 may be made applicable to any multifamily rental housing development financed by the issuance, on or after September 3, 1982, of bonds authorized by this chapter.
For purposes of this article, "housing sponsor" means a
person as defined in Section 50074.
