Chapter 11. Assistance To Small Rural Communities of California Health And Safety Code >> Division 5. >> Part 3. >> Chapter 11.
Unless the context otherwise requires, the definitions in
this section govern the construction of this chapter.
(a) "Community facility" means a public or mutual water system, or
publicly operated waste water system.
(b) "Department" means the Department of Housing and Community
(c) "Eligible grantee" means a local governmental entity or a
private nonprofit organization which has demonstrated capacity to
provide technical assistance on all subjects specified in subdivision
(d) "Low-income community" means a community in which the median
income of the persons in the community, area, or city is less than 70
percent of the median income in the state.
(e) "Rural community" means any community, area, or city with less
than 5,000 population.
(f) "Seed money" means funds granted by the department pursuant to
the provisions of this chapter for project organization and
development, test wells, preliminary engineering, professional fees,
and other costs which are necessary to get a project approved for
financing from local, state, or federal sources.
(g) "Technical assistance" means assistance and advice on all of
the following subjects:
(1) Organization, including formation, financing, and operation,
of public and private nonprofit service entities.
(2) Community responsibilities, including the conduct of meetings,
maintenance of minutes of meetings, preparation and analysis of
budgets, keeping of fiscal records, and supervision of staff.
(3) Operation and maintenance, including schedules and techniques
pertaining to all parts of a facility, and maintenance control
systems and maintenance recordkeeping to assure adequate maintenance,
including schedules and techniques pertaining to all parts of a
facility, and maintenance control systems and maintenance
recordkeeping to assure adequate maintenance is performed on a
(4) Project development, including, but not limited to:
(A) The preparation of plans for needed expansion, creation of
services, and schedules for expected major repairs or replacement
(B) Negotiation of contracts for professional services.
(C) An examination of various funding alternatives, and packaging
applications for assistance.
(D) Review of engineering plans and specifications for development
(E) Compliance with appropriate regulations relative to funding
(5) Financial assistance available from the department in seed
money grants pursuant to this chapter.
The Legislature finds and declares that small rural
communities are unable to take advantage of various local, state, and
federal facility development programs due to their lack of technical
expertise, staff, and seed money. The Legislature finds and declares
that changing state and federal regulations relative to the
provision of domestic water and waste water disposal are creating an
extra hardship upon rural areas. The Legislature further finds and
declares that the provisions of this chapter are necessary in order
to provide assistance to rural areas so that they may take advantage
of existing programs and develop self-help expertise enabling them to
assist themselves in the future.
The department shall establish a Rural Community Facilities
Technical Assistance Program, under which, subject to the
availability of funds therefor, contracts shall be made by the
department with public entities and nonprofit corporations for the
provision of technical assistance to rural and low-income communities
in the operation, maintenance, and development of community
The program shall be administered by the Director of Housing
and Community Development.
The program shall be for the purpose of helping rural and
low-income communities to take advantage of various local, state, and
federal financing programs to develop community facilities, ensuring
that these facilities are developed and operated in such a manner
that the facilities or services last for a normal period of time, as
determined by the department, and ensuring that, wherever possible,
reasonable user rates are charged for use of the facilities. The
department shall provide in the administration of the program that
funds pursuant to this program shall, to the greatest extent
practicable, be used with the greatest amount of matching nonprogram
The Rural Community Facility Grant Fund is hereby created in
the State Treasury. The fund is continuously appropriated, without
regard to fiscal years, notwithstanding Section 13340 of the
Government Code, to the department for expenditure for the purpose of
making grants pursuant to the provisions of this chapter and to pay
the costs incurred by the department in administering the grant
The department shall grant funds by contract with eligible
grantees under the following conditions:
(a) That grantees shall have the ability to provide all aspects of
technical assistance on at least a countywide basis.
(b) That grantees shall use no more than 80 percent of those funds
for staff and administrative costs connected with the provision of
that technical assistance.
(c) That each community designated by a grantee to receive seed
money shall be reviewed and certified by the department as eligible
for those funds.
(d) That any community designated to receive seed money shall also
receive technical assistance.
(e) That no community shall receive seed money which is greater
than the sum of seven thousand five hundred dollars ($7,500) or two
hundred dollars ($200) per family in such community, whichever is
(f) The department and the grantee shall place seed money funds in
a joint savings account which requires both the department and
grantee to give authorization prior to the withdrawal of those funds.
The department shall develop and adopt rules and regulations
to implement the provisions of this chapter.