2005 California Health and Safety Code Sections 50050-50106 CHAPTER 2. DEFINITIONS

50050.  Unless otherwise indicated by the context, the definitions
contained in this chapter shall govern the construction of this
division.
50051.  "Affirmative action" means any program created pursuant to
rules and regulations of the agency to create greater job
opportunities for members of disadvantaged racial, sexual, religious,
ancestral, or national-origin groups.  Such program shall include
educational, promotional, and other appropriate activity designed to
secure greater employment opportunity for the members of such groups.
50052.  "Affirmative marketing program" means any program approved
by the agency that is designed to achieve greater access to housing
opportunities created by this division for members of disadvantaged
racial, sexual, religious, ancestral, or national-origin groups.
Such program shall include educational, promotional, and other
appropriate activity designed to secure greater housing opportunities
for the members of such groups.  Where a significant number of
persons in a community have limited fluency in the English language,
publications implementing an affirmative marketing program in that
community shall be provided in the native language of such persons.
50052.5.  (a) For any owner-occupied housing that receives
assistance prior to January 1, 1991, and a condition of that
assistance is compliance with this section, "affordable housing cost"
with respect to lower income households may not exceed 25 percent of
gross income.
   (b) For any owner-occupied housing that receives assistance on or
after January 1, 1991, and a condition of that assistance is
compliance with this section, "affordable housing cost" may not
exceed the following:
   (1) For extremely low households the product of 30 percent times
30 percent of the area median income adjusted for family size
appropriate for the unit.
   (2) For very low income households the product of 30 percent times
50 percent of the area median income adjusted for family size
appropriate for the unit.
   (3) For lower income households whose gross incomes exceed the
maximum income for very low income households and do not exceed 70
percent of the area median income adjusted for family size, the
product of 30 percent times 70 percent of the area median income
adjusted for family size appropriate for the unit.  In addition, for
any lower income household that has a gross income that equals or
exceeds 70 percent of the area median income adjusted for family
size, it shall be optional for any state or local funding agency to
require that affordable housing cost not exceed 30 percent of the
gross income of the household.
   (4) For moderate-income households, affordable housing cost shall
not be less than 28 percent of the gross income of the household, nor
exceed the product of 35 percent times 110 percent of area median
income adjusted for family size appropriate for the unit.  In
addition, for any moderate-income household that has a gross income
that exceeds 110 percent of the area median income adjusted for
family size, it shall be optional for any state or local funding
agency to require that affordable housing cost not exceed 35 percent
of the gross income of the household.
   (c) The department shall, by regulation, adopt criteria defining,
and providing for determination of, gross income, adjustments for
family size appropriate to the unit, and housing cost for purposes of
determining affordable housing cost under this section.  These
regulations may provide alternative criteria, where necessary to be
consistent with pertinent federal statutes and regulations governing
federally assisted housing.  The agency may, by regulation, adopt
alternative criteria, and pursuant to subdivision (f) of Section
50462, alternative percentages of income may be adopted for
agency-assisted housing development.
   (d) With respect to moderate- and lower income households who are
tenants of rental housing developments and members or shareholders of
cooperative housing developments, or limited equity cooperatives
"affordable housing cost" has the same meaning as affordable rent, as
defined in Section 50053.
   (e) Regulations of the department shall also include a method for
determining the maximum construction cost, mortgage loan, or sales
price that will make housing available to an income group at
affordable housing cost.
   (f) For purposes of this section, "area median income" shall mean
area median income as published by the department pursuant to Section
50093.
   (g) For purposes of this section, "moderate income household"
shall have the same meaning as "persons and families of moderate
income" as defined in Section 50093.
   (h) For purposes of this section, and provided there are no
pertinent federal statutes applicable to a project or program,
"adjusted for family size appropriate to the unit" shall mean for a
household of one person in the case of a studio unit, two persons in
the case of a one-bedroom unit, three persons in the case of a
two-bedroom unit, four persons in the case of a three-bedroom unit,
and five persons in the case of a four-bedroom unit.
50053.  (a) For any rental housing development that receives
assistance prior to January 1, 1991, and a condition of that
assistance is compliance with this section, "affordable rent" with
respect to lower income households shall not exceed the percentage of
the gross income of the occupant person or household established by
regulation of the department that shall not be less than 15 percent
of gross income nor exceed 25 percent of gross income.
   (b) For any rental housing development that receives assistance on
or after January 1, 1991, and a condition of that assistance is
compliance with this section, "affordable rent," including a
reasonable utility allowance, shall not exceed:
   (1) For extremely low income households the product of 30 percent
times 30 percent of the area median income adjusted for family size
appropriate for the unit.
   (2) For very low income households, the product of 30 percent
times 50 percent of the area median income adjusted for family size
appropriate for the unit.
   (3) For lower income households whose gross incomes exceed the
maximum income for very low income households, the product of 30
percent times 60 percent of the area median income adjusted for
family size appropriate for the unit.  In addition, for those lower
income households with gross incomes that exceed 60 percent of the
area median income adjusted for family size, it shall be optional for
any state or local funding agency to require that affordable rent be
established at a level not to exceed 30 percent of gross income of
the household.
   (4) For moderate-income households, the product of 30 percent
times 110 percent of the area median income adjusted for family size
appropriate for the unit.  In addition, for those moderate-income
households whose gross incomes exceed 110 percent of the area median
income adjusted for family size, it shall be optional for any state
or local funding agency to require that affordable rent be
established at a level not to exceed 30 percent of gross income of
the household.
   (c) The department's regulation shall permit alternative
percentages of income for agency-assisted rental and cooperative
housing developments pursuant to regulations adopted under
subdivision (f) of Section 50462.  The department shall, by
regulation, adopt criteria defining and providing for determination
of gross income, adjustments for family size appropriate to the unit,
and rent for purposes of this section.  These regulations may
provide alternative criteria, where necessary, to be consistent with
pertinent federal statutes and regulations governing federally
assisted rental and cooperative housing.  The agency may, by
regulation, adopt alternative criteria, and pursuant to subdivision
(f) of Section 50462, alternative percentages of income may be
adopted for agency-assisted housing developments.
   For purposes of this section, "area median income," "adjustments
for family size appropriate to the unit," and "moderate-income
household" shall have the same meaning as provided in Section
50052.5.
50054.  "Agency" means the California Housing Finance Agency.
50055.  "Assisted housing" means housing financed by a below-market
interest rate mortgage insured or purchased, or a loan made, by the
Secretary of the United States Department of Housing and Urban
Development or by the Farmers Home Administration of the United
States Department of Agriculture; or a market-interest-rate mortgage
insured or purchased, or a loan made in combination with, or as
augmented by, a program of rent supplements or subsidies, interest
subsidies, leasing, contributions or grants, or other programs as are
now or hereafter authorized by federal law to serve persons and
families of low or moderate income; or a mortgage or loan made
pursuant to this division; or a mortgage or loan from any private or
public source with an interest rate and terms satisfactory to the
agency and which will meet the requirements and purposes of this
division.
50056.  "Below-market interest" means a below-market interest rate
adequate to return to the agency sufficient income to meet its
obligations, reserve requirements, and expenses connected with a loan
financed by the agency for which such interest rate is established
as determined by the agency at the time of commitment of funds, for
the permanent financing.
50057.  "Board" means the board of directors of the agency.
50058.  "Bonds" means bonds, notes (including bond anticipation
notes and construction loan notes), debentures, interim or other
certificates, or other evidences of financial indebtedness issued by
the agency pursuant to Part 3 (commencing with Section 50900) or Part
6 (commencing with Section 52500).
50058.5.  "Buy-down mortgage plan" is a program by which the
effective interest cost to the purchaser of a real property is
reduced below market rates through supplemental payments by the
agency to a qualified mortgage lender in return for which the agency
shall obtain from the purchaser an interest-bearing note secured by a
subordinated mortgage on the property which is purchased.
50059.  "Cause" means gross neglect of duties, fraud, or violation
of Section 50904 or 50905.
50060.  "Citizen participation" means action by the local agency
that is approved by the agency as sufficient to provide persons who
will be affected by financing or loan insurance assistance within a
neighborhood preservation area, under the provisions of Chapter 6
(commencing with Section 51300) of Part 3 of this division or under
Part 4 (commencing with Section 51600) of this division, with
opportunities to be involved in planning and carrying out the
financing or loan insurance assistance program.  "Citizen
participation" shall include, but not be limited to, all of the
following and in the order provided below:
   (a) Holding a public meeting prior to the hearing by the
legislative body considering selection of the area for designation as
a neighborhood preservation area.
   (b) Consultation with an elected or appointed citizen advisory
board, composed of representatives of both owners of property in, and
residents of, a proposed neighborhood preservation area, in
developing a plan for public improvements and the rules and
regulations for implementation of the proposed assistance program.
   (c) Dissemination at least seven days prior to the original
hearing by mailing to property owners within the proposed
neighborhood preservation area at the address shown on the latest
assessment roll and by distributing to residents of the proposed
neighborhood preservation area by a manner determined appropriate by
the local agency, of information relating to the time and location of
the hearing, boundaries of the proposed area, and a general
description of the proposed assistance program.
   In addition to the requirements of subdivisions (a) to (c),
inclusive, any other means of citizen involvement determined
appropriate by the legislative body may be implemented.
   In lieu of initiating a new process of citizen participation,
local agencies which have conducted or are conducting a
citizen-participation process as part of an existing housing
community development program, may substitute such
citizen-participation process if the board approves such process as
meeting the requirements of this section.
   Public meetings and consultations held to implement the
requirements of citizen participation shall be conducted by a
planning or rehabilitation official designated by the legislative
body.  Public meetings shall be held at times and places convenient
to residents and property owners.
50061.  "Commission" means the Commission of Housing and Community
Development.
50061.5.  Any reference in this division to the Commission of
Housing and Community Development shall be deemed to be to the
Department of Housing and Community Development and the department
may exercise all the powers and shall perform all the duties of the
commission.
50062.  "Concentrated rehabilitation area" means an area
characterized by substantial deterioration of residential structures
and which is designated by the agency pursuant to Section 51302.
50062.5.  "Congregate housing for the elderly" means a housing
development, as defined by Section 50073.5,  which is planned,
designed, and managed to include facilities and common space that
allow for direct services and support services  that maximize the
residents' potential for independent living and which is occupied by
elderly or handicapped persons or households, as defined in Sections
50067 and 50072.  Direct services and support services which are
provided or made  available shall relate to the nutritional, social,
recreational, housekeeping, and personal needs of the residents and
shall be provided or made available at a level necessary to assist
the residents to function independently.
   "Direct services," as used in this section, means meals,
housekeeping services, transportation services, and planned
recreational and social activities which shall be provided to the
residents directly by the management of the congregate housing.
   "Support services," as used in this section, means social
services, day-care services, and in-home services which the
management of the congregate housing shall assist the residents in
obtaining, at the request of the residents.
50063.  "Construction loan" means a short-term loan secured by real
property, made for development costs incurred in construction or
rehabilitation of a housing development or residential structure.
50064.  "Department" means the Department of Housing and Community
Development.
50065.  "Development costs" means the aggregate of all costs
incurred in connection with a housing development which are approved
by the agency as reasonable and necessary, including, but not limited
to, the following:
   (a) The cost of refinancing or acquiring land and any buildings
thereon, including payments for commissions, options, deposits, or
contracts to purchase properties on a proposed housing development
site or payments for the purchase of such properties.
   (b) The cost of site preparation, demolition, and clearing.
   (c) Architectural, engineering, legal, accounting, consulting, and
other fees paid or payable in connection with the planning,
execution, and financing of a housing development and the finding of
an eligible mortgagee for a housing development.
   (d) The cost of necessary studies, surveys, plans, and permits.
   (e) The cost of insurance, interest and financing, tax and
assessment costs, and other operating and carrying costs incurred
during construction or rehabilitation.
   (f) The cost of construction, rehabilitation, reconstruction and
fixtures, medical facilities, furnishings, equipment, machinery,
apparatus, and similar facilities and equipment related to the real
property.
   (g) The cost of land improvements, including, but not limited to,
landscaping, site preparation and streets, sewers, utilities, and
other offsite improvements, whether or not such costs are paid in
cash or in a form other than cash.
   (h) A reasonable profit and risk fee, as defined in regulations of
the agency, in addition to job overhead to the general contractor
and, if applicable, to a limited-dividend housing sponsor.
   (i) An allowance established by the agency for working capital and
for reasonable reserves set aside to defray unanticipated additional
development costs.
   (j) Necessary expenses incurred in connection with initial
occupancy of a housing development, including reserves for any
anticipated operating deficits to be incurred during the construction
period and the initial year of occupancy.
   (k) Repayment of a development loan.
   (l) The cost of modifying a housing development or structure so
that it is accessible to and convenient for the elderly or
handicapped.
   (m) The cost of such other items, including tenant and homeowner
relocation and tenant and homeowner counseling, as the agency shall
determine to be reasonable and necessary for the development of a
housing development.
   The statement of a specific cost item within this section shall in
no way imply a requirement that the agency finance that item in
making a loan on any housing development.  Development costs shall
not include any greater portion of the total cost of a housing
development owned by a limited-dividend housing sponsor than is
consistent with an equity investment sufficient to ensure a
substantial and continuing interest by such sponsor in the housing
development.
50066.  "Development loan" means a loan, made prior to the granting
of a construction loan, for planning, acquisition of land and
improvements thereon, and site preparation for a housing development
or residential structure.  A development loan may include costs of
architectural, engineering, legal and consulting services, the cost
of necessary studies, surveys and governmental permits, and the cost
of any other items that the agency deems reasonable and necessary for
the initial preparation for construction or rehabilitation of a
housing development or residential structure.
50067.  "Elderly" means a family in which the head of the household
is 60 years of age or older, a single person who is 60 years of age
or older, or an elderly or handicapped household as defined in
Section 19903 and subject to Part 4.5 (commencing with Section 19902)
of Division 13.  The age may be adjusted by the agency to facilitate
participation in other municipal, state, or federal programs.
50068.  "Financial interest" has the same meaning as specified in
Section 87103 of the Government Code.
50068.5.  "First-time home buyer" means a person who is a purchaser
of an owner-occupied housing unit and who neither has, nor has had, a
present ownership in a principal residence at any time during the
three-year period prior to the date on which the mortgage pursuant to
this division is executed, except that this limitation shall not
apply to a purchaser of a principal residence in a targeted area.
50068.6.  "First-Time Home Buyers Fund" is a fund in the General
Fund, distinguished from the California Housing Finance Fund, which
is created by Section 52504.
50068.7.  "First-Time Home Buyers Policy Committee" or "policy
committee" is the committee which performs certain policy functions
and makes certain policy determinations pursuant to Part 6
(commencing with Section 52500), and which is established pursuant to
Section 52502.
50069.  "Fund" means the California Housing Finance Fund.
50070.  "Governmental agency" means the United States of America,
the State of California, any city, county, or city and county within
this state and any department, division, public corporation, or
public agency of this state or of the United States, or two or more
of such entities acting jointly, or the duly constituted governing
body of an Indian reservation or rancheria.
50071.  "Guaranteed taxable bonds" means bonds secured by a pledge
of the full faith and credit of the United States for the payment of
the principal and interest on bonds issued under the authority of
this division and on which the interest is not exempted from federal
income taxes.  Where the federal guarantees are for less than 75
percent of the liability, municipal, state, or private guarantees,
bond insurance, or mortgage insurance shall be obtained in order that
the amount of all such guarantees aggregate not less than 75 percent
of the principal and interest on such bonds.
50072.  "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 a physical
disability, where the family or person requires special care or
facilities in the home.  "Handicapped" also includes a family in
which the head of household suffers from a developmental disability
specified in subdivision (a) of Section 38010 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.  "Handicapped" also includes an
elderly or handicapped household, as defined in Section 19903 and
subject to Part 4.5 (commencing with Section 19902) of Division 13.
50073.  "Housing development", for the purpose of housing assisted
by the department, means any work or undertaking of new construction
or rehabilitation, or the acquisition of existing residential
structures in good condition, for the provision of housing which is
financed pursuant to the provisions of this division for the primary
purpose of providing decent, safe, and sanitary housing for persons
and families of low or moderate income.  "Housing development" also
means housing financed pursuant to this part for rental occupancy of,
for resale to, or sold to, persons and families of low or moderate
income.  Notwithstanding other provisions of this section, "housing
development" does not include a work or undertaking financed by a
neighborhood improvement loan.  A housing development may include
housing for other economic groups as part of an overall plan to
develop new or rehabilitated communities or neighborhoods, where
housing for persons and families of low or moderate income is a
primary goal.  A housing development may include any buildings, land,
equipment, facilities, or other real or personal property which the
agency determines pursuant to its rules and regulations to be
necessary or convenient in connection with the provision of housing
pursuant to this division, including, but not limited to, streets,
sewers, utilities, parks, site preparation, landscaping, and other
nonhousing facilities, such as administrative, community, health,
recreational, educational, commercial facilities, and child-care
facilities which the agency determines are an integral part of a
housing development or developments.
   "Housing development" includes the acquisition of a residential
structure by a nonprofit housing sponsor, whether or not including
rehabilitation, for the purpose of forming a limited-equity housing
cooperative as defined in Section 33007.5.
50073.5.  "Housing development," for the purpose of the California
Housing Finance Agency, means any existing structure of five or more
dwelling units or any work or undertaking of five dwelling units or
more of new construction or rehabilitation for the provision of
housing financed pursuant to the provisions of this division for the
primary purpose of providing decent, safe, and sanitary housing for
persons and families of low or moderate income. A housing development
may include housing for other economic groups as part of an overall
plan to develop new or rehabilitated communities or neighborhoods,
where housing for persons and families of low or moderate income is a
primary goal.  A housing development may include any buildings,
land, equipment, facilities, or other real or personal property which
the agency determines pursuant to its rules and regulations to be
necessary or convenient in connection with the provision of housing
pursuant to this division, including, but not limited to, streets,
sewers, utilities, parks, site preparation, landscaping, and other
nonhousing facilities, such as administrative, community, health,
recreational, educational, commercial facilities, and child-care
facilities which the agency determines are  an integral part of a
housing development or developments.
50074.  "Housing sponsor", for the purpose of housing assisted by
the department, means any individual, joint venture, partnership,
limited partnership, trust, corporation, limited equity housing
cooperative, cooperative, local public entity, duly constituted
governing body of an Indian reservation or rancheria, or other legal
entity, or any combination thereof, certified by the agency pursuant
to rules and regulations of the agency as qualified to either own,
construct, acquire or rehabilitate a housing development, whether for
profit, nonprofit, or organized for limited profit, and subject to
the regulatory powers of the agency pursuant to rules and regulations
of the agency and other terms and conditions set forth in this
division.  "Housing sponsor" includes persons and families of low or
moderate income who are approved by the agency as eligible to own and
occupy a housing development and individuals and legal entities
receiving property improvement loans through the agency.
50074.5.  "Housing sponsor," for the purpose of the California
Housing Finance Agency, means any individual, joint venture,
partnership, limited partnership, trust, corporation, cooperative,
local public entity, duly constituted governing body of an Indian
reservation or rancheria, or other legal entity, or any combination
thereof, approved by the agency as qualified to either own,
construct, acquire or rehabilitate a housing development, or a
residential structure other than an owner-occupied single unit
whether for profit, nonprofit, or limited profit.
50075.  "Legislative body" means the city council, board of
supervisors, or other legislative body of the local agency.
50076.  "Limited-dividend housing sponsor" means any sponsor which
owns a housing development and whose profit or cash return is limited
pursuant to Section 51202 and regulations adopted by the board
pursuant thereto.
50076.5.  "Limited equity housing cooperative" means a corporation
organized pursuant to Section 33007.5 of this code and Section
11003.4 of the Business and Professions Code.  For purposes of this
division, a limited equity housing cooperative is a nonprofit
corporation or nonprofit housing sponsor.  However, a limited equity
housing cooperative shall not be deemed to be nonprofit for the
purpose of Chapter 10 (commencing with Section 50775).
50076.6.  "Loan," for purposes of provisions relating to the agency,
means an obligation to repay funds advanced by the agency for the
purpose of financing housing that is evidenced by a promissory note
or other instrument in writing and that may or may not be secured by
real or personal property.
50077.  "Local agency" means a city, county, or city and county and
includes any governmental agency or local public entity to which such
city, county, or city and county may, after a public hearing,
delegate functions under this division.
50078.  "Local housing agent" means a city, county, city and county,
or combination thereof acting jointly, or the duly constituted
governing body of an Indian reservation or rancheria which is
certified by the department pursuant to Section 51252 to review
applications by prospective housing sponsors for loans made or
assisted under this division for housing developments proposed within
the territorial boundaries of the local housing agent.
50079.  "Local public entity" means any county, city, city and
county, the duly constituted governing body of an Indian reservation
or rancheria, redevelopment agency organized pursuant to Part 1
(commencing with Section 33000) of Division 24, or housing authority
organized pursuant to Part 2 (commencing with Section 34200) of
Division 24, and also includes any state agency, public district or
other political subdivision of the state, and any instrumentality
thereof, which is authorized to engage in or assist in the
development or operation of housing for persons and families of low
or moderate income.  "Local public entity" also includes two or more
local public entities acting jointly.
50079.5.  (a) "Lower income households" means persons and families
whose income does not exceed the qualifying limits for lower income
families as established and amended from time to time pursuant to
Section 8 of the United States Housing Act of 1937.  The limits shall
be published by the department in the California Code of Regulations
as soon as possible after adoption by the Secretary of Housing and
Urban Development.  In the event the federal standards are
discontinued, the department shall, by regulation, establish income
limits for lower income households for all geographic areas of the
state at 80 percent of area median income, adjusted for family size
and revised annually.
   (b) "Lower income households" includes very low income households,
as defined in Section 50105, and extremely low income households, as
defined in Section 50106.  The addition of this subdivision does not
constitute a change in, but is declaratory of, existing law.
   (c) As used in this section, "area median income" means the median
family income of a geographic area of the state.
50080.  "Market interest" means the interest rate determined by the
agency to be the interest rate generally available in the private
market for similar housing loans.
50081.  "Market rent" means the monthly rent established by the
agency as competitive according to its own regulations, except where
federal regulations provide a required method of determining market
rent.  Determination of market rent may be reviewed annually upon
application by the mortgagor, subject to applicable federal
regulations, if any.
50082.  "Metropolitan area" means a standard metropolitan
statistical area as established by the United States Office of
Management and Budget.
50082.7.  "Mobilehome park" shall have the same meaning as such term
is defined in Section 18214.
50083.  "Mortgage" means a mortgage, deed of trust, or other
instrument that may be a lien on real property.  "Mortgage" includes
the note secured by such an instrument.
50084.  "Mortgage deficient area" means an area where private
lenders have failed to provide sufficient mortgage credit for
financing or refinancing of new, existing, or rehabilitated housing
developments, and such practices have caused or threaten to cause a
decline in the condition or quality of the housing stock in the area.
50085.  "Mortgage assistance area" means an area characterized by a
deficiency of available mortgage financing but in which general
deterioration of residential structures has not occurred, and which
is designated by the agency pursuant to Section 51304.
50086.  "Mortgage loan" means a loan that is secured by a mortgage
and is made for financing, including refinancing of existing mortgage
obligations as authorized by regulation of the agency, to create or
preserve the long-term affordability of a housing development or a
residential structure in the state, or a buy-down mortgage loan
secured by a mortgage as authorized by regulation of the agency, of
an owner-occupied unit in this state.
50087.  "Mutual self-help housing" means assisted housing for which
persons and families of low or moderate income contribute their own
labor in individual or group efforts to provide decent, safe, and
sanitary housing for themselves, their families, and others occupying
the housing.
50089.  "Neighborhood preservation area" means any concentrated
rehabilitation area, scattered-site rehabilitation area, or mortgage
assistance area.
50090.  "Nonmetropolitan area" means an area not included in a
metropolitan area.
50091.  "Nonprofit housing sponsor" or "nonprofit corporation" means
a nonprofit corporation incorporated pursuant to Division 2
(commencing with Section 5000) of Title 1 of the Corporations Code or
a corporation or association which is, or will be qualified as, a
cooperative housing corporation for purposes of subdivision (a) of
Section 17265 of the Revenue and Taxation Code, a nonprofit student
housing cooperative, or a limited equity housing cooperative and
which is certified by the agency as qualified to own a housing
development if financed or assisted by the agency.  However, a
limited equity housing cooperative shall not be deemed to be
nonprofit for the purpose of Chapter 10 (commencing with Section
50775).
50092.  "Owner-occupied housing development", for the purpose of
housing assisted by the department, means a housing development
containing not more than four residential units, one of which is
occupied by the owner of the housing development.
50092.1.  "Owner-occupied housing unit", for the purpose of Part 6
(commencing with Section 52500), means a single-family dwelling
situated in California which is occupied by the owner, and includes a
dwelling unit in a stock cooperative, as defined by Section 11003.2
of the Business and Professions Code, a community apartment project,
as defined by Section 11004 of the Business and Professions Code, or
a condominium project, as defined by subdivision (c) of Section
11004.  5 of the Business and Professions Code.
50093.  "Persons and families of low or moderate income" means
persons and families whose income does not exceed 120 percent of area
median income, adjusted for family size by the department in
accordance with adjustment factors adopted and amended from time to
time by the United States Department of Housing and Urban Development
pursuant to Section 8 of the United States Housing Act of 1937.
However, the agency and the department jointly, or either acting with
the concurrence of the Secretary of the Business and Transportation
Agency, may permit the agency to use higher income limitations in
designated geographic areas of the state, upon a determination that
120 percent of the median income in the particular geographic area is
too low to qualify a substantial number of persons and families of
low or moderate income who can afford rental or home purchase of
housing financed pursuant to Part 3 (commencing with Section 50900)
without subsidy.
   "Persons and families of low or moderate income" includes very low
income households, as defined in Section 50105, extremely low income
households, as defined in Section 50106, and lower income households
as defined in Section 50079.5, and includes persons and families of
extremely low income, persons and families of very low income,
persons and families of low income, persons and families of moderate
income, and middle-income families.  As used in this division:
   (a) "Persons and families of low income" or "persons of low income"
means persons or families who are eligible for financial assistance
specifically provided by a governmental agency for the benefit of
occupants of housing financed pursuant to this division.
   (b) "Persons and families of moderate income" or "middle-income
families" means persons and families of low or moderate income whose
income exceeds the income limit for lower income households.
   (c) "Persons and families of median income" means persons and
families whose income does not exceed the area median income, as
adjusted by the department for family size in accordance with
adjustment factors adopted and amended from time to time by the
United States Department of Housing and Urban Development pursuant to
Section 8 of the United States Housing Act of 1937.
   As used in this section, "area median income" means the median
family income of a geographic area of the state, as annually
estimated by the United States Department of Housing and Urban
Development pursuant to Section 8 of the United States Housing Act of
1937.  In the event these federal determinations of area median
income are discontinued, the department shall establish and publish
as regulations income limits for persons and families of median
income for all geographic areas of the state at 100 percent of area
median income, and for persons and families of low or moderate income
for all geographic areas of the state at 120 percent of area median
income.  These income limits shall be adjusted for family size and
shall be revised annually.
   For purposes of this section, the department shall file, with the
Office of Administrative Law, any changes in area median income and
income limits determined by the United States Department of Housing
and Urban Development, together with any consequent changes in other
derivative income limits determined by the department pursuant to
this section.  These filings shall not be subject to Article 5
(commencing with Section 11346) or Article 6 (commencing with Section
11349) of Chapter 3.5 of Part 1 of Division 3 of Title 2 of the
Government Code, but shall be effective upon filing with the Office
of Administrative Law and shall be published as soon as possible in
the California Regulatory Code Supplement and the California Code of
Regulations.
   The department shall establish and publish a general definition of
income, including inclusions, exclusions, and allowances, for
qualifying persons under the income limits of this section and
Sections 50079.5, 50105, and 50106 to be used where no other federal
or state definitions of income apply.  This definition need not be
established by regulation.
   Nothing in this division shall prevent the agency or the
department from adopting separate family size adjustment factors or
programmatic definitions of income to qualify households, persons,
and families for programs of the agency or department, as the case
may be.
50093.5.  "Public transit corridor" means that area within
one-quarter mile of a route on which the level of service is at or
above the average for the transit system as a whole, according to the
transit operator serving the area, and on which regularly scheduled
public mass transit service stops are located, or within one-quarter
mile of an existing or planned public mass transit guideway or busway
station, or within one-quarter mile of a multimodal transportation
terminal serving public mass transit operations.  "Level of service,"
unless otherwise defined by the transit operator, means the
frequency of headways and the number of vehicles per day.
50093.6.  "Property improvement loan" means an advance of money,
evidenced by a note, to finance rehabilitation and general repairs
and improvements to a residence consistent with the purposes of this
division.  A property improvement loan may, but need not be, secured
by a deed of trust.  However, a property improvement loan made
outside a neighborhood preservation area shall be unsecured and shall
not exceed fifteen thousand dollars ($15,000).
50094.  (a) Except as otherwise provided in subdivision (b),
"qualified mortgage lender" means a mortgage lender certified by the
agency, pursuant to rules and regulations thereof, to do business
with the agency or a housing authority certified by the agency as
capable of financing the construction or rehabilitation of
residential structures.
   (b) "Qualified mortgage lender", as used in Part 6 (commencing
with Section 52500), means a mortgage lender certified by the policy
committee, pursuant to agency rules and regulations adopted by the
policy committee, to do business with the agency as capable of
financing the construction or purchase of dwellings.
   (c) A qualified mortgage lender, as defined in subdivision (a) or
(b), may be a bank or trust company, mortgage banker, federal- or
state-chartered savings and loan association, service corporation, or
other financial institution or governmental agency which is deemed
capable of providing service or otherwise aiding in the financing of
construction loans and mortgage loans, and nothing in any other
provisions of state law shall prevent such a lender or governmental
agency from serving as a qualified mortgage lender under this
division.  A "qualified mortgage lender" that is determined by the
agency to have violated state law of the terms of any agreement with
the agency shall be promptly decertified.
50095.  "Real property" means all lands, including improvements and
fixtures thereon, and property of any nature appurtenant thereto or
used in connection therewith, and every estate, interest, and right,
legal or equitable, therein, including leaseholds, terms of years,
and liens by way of judgment, mortgage, or otherwise.
50096.  "Rehabilitation" means repairs and improvements to a
substandard residential structure necessary to make it meet
rehabilitation standards.  As used in this section, "substandard
residential structure" has the same meaning as the term "substandard
building," as defined in subdivision (f) of Section 17920.
50097.  "Rehabilitation standards" means applicable state or local
building or housing standards adopted pursuant to the State Housing
Law, Part 1.5 (commencing with Section 17910) of Division 13, or
continued in effect pursuant thereto.
   For the purposes of Chapter 6.5 (commencing with Section 50660) of
Part 2, "rehabilitation standards"  (a) includes room additions
necessary to prevent overcrowding of low-income or moderate-income
households and (b) additionally, includes changes in grade, drainage
facilities, or other improvements related to flood control and
required by local ordinance or regulation as a condition to continued
operation of a mobilehome park applying for or receiving a loan
pursuant to Section 50662.2.
50098.  "Rents" means the charges paid by the persons and families
of low or moderate income for occupancy in a housing development
assisted under this division whether the units are rented or operated
as a cooperative.
50099.  "Residential structure", for the purpose of housing assisted
by the department, means a real property improvement used, or
intended to be used, for residential or mixed residential and
commercial purposes, or for commercial purposes if, in the judgment
of the department, it is an integral part of a residential
neighborhood.
50099.5.  "Residential structure," for the purpose of the California
Housing Finance Agency, means any existing structure of one to four
units or any work or undertaking of one to four dwelling units of new
construction or rehabilitation for the provision of housing financed
pursuant to the provisions of this division for the primary purpose
of providing decent, safe, and sanitary housing for persons and
families of low or moderate income.  "Residential structure" may
include any buildings, land, equipment, facilities, or other real or
personal property which the agency determines to be necessary or
convenient in connection with the provision of housing pursuant to
this division, and including, but not limited to, streets, sewers,
utilities, parks, site preparation, landscaping, and other nonhousing
facilities including, but not limited to, administrative, community,
health, recreational, educational, commercial, and child care
facilities which the agency determines are an integral part of a
residential neighborhood.
50100.  "Rules", "regulations", or "rules and regulations" mean
regulations as defined in Chapter 3.5 (commencing with Section 11340)
of Part 1 of Division 3 of Title 2 of the Government Code. All
regulations of the department and agency shall be subject to such
provisions.
50101.  "Rural area" means any open country or any place, town,
village, or city which by itself and taken together with any other
places, towns, villages, or cities that it is part of or associated
with:  (a) has a population not exceeding 10,000; or (b) has a
population not exceeding 20,000 and is contained within a
nonmetropolitan area.  "Rural area" additionally includes any open
country, place, town, village, or city located within a Standard
Metropolitan Statistical Area if the population thereof does not
exceed 20,000 and the area is not part of, or associated with, an
urban area and is rural in character.  This definition may be changed
by the department or the agency, as the case may be, to conform to
changes in federal programs.
50102.  "Rural mortgage area" means an area outside any city,
metropolitan area or urban county, as such terms are defined by
Section 102 of the Housing and Community Development Act of 1974
(P.L. 93-383).
50103.5.  "Statistical area" means an area established by action of
the policy committee for purposes of determining the maximum
acquisition costs for an owner-occupied housing unit to be financed
pursuant to Part 6 (commencing with Section 52500).  Such areas shall
be any one of the following:
   (a) A metropolitan area.
   (b) A county which is not within a metropolitan area.
   (c) A grouping of counties as determined by the policy committee,
which are not within a metropolitan area, if insufficient recent
statistical data exists for the purposes of this division for any
county within such grouping.
50104.  "Subsidy" means any financial assistance specifically
provided by a governmental agency for the benefit of persons and
families of low or moderate income, which is paid to an occupant of
housing financed pursuant to this part for housing costs or which
reduces such occupant's housing costs.  "Subsidy" shall not include
any benefit resulting from a loan made by the agency nor any benefit
derived from the abatement of taxes levied by the state or a
political subdivision thereof.
50104.5.  "Systematic enforcement" means the enforcement of
rehabilitation standards in accordance with a systematic program of
making inspections of dwelling structures in accordance with
objective criteria for selection or order of selection of dwelling
structures to be inspected.  Systematic enforcement may be limited to
rental or multifamily dwellings.  It does not refer to a policy of
responding only to complaints and requests for inspections.  It does
not include inspections where violations are not cited. It does not
include the concentrated enforcement of rehabilitation standards in a
designated geographic area within the jurisdiction.
50104.6.  "Targeted area", for the purposes of Part 6 (commencing
with Section 52500), means a census tract as designated by the United
States Secretary of Commerce, in which 70 percent or more of the
families have an income which is 80 percent or less of the statewide
median family income, or is an area of economic distress as
determined by the policy committee based on the criteria for
establishing such areas contained in the second Section 6a. 103A-1
(b) (3) of Title 26 of the Code of Federal Regulations (See 46 FR
4315, dated July 1, 1981).
50104.7.  "Urban area" means any portion of a county or the state
which is not a rural area.
50105.  (a) "Very low income households" means persons and families
whose incomes do not exceed the qualifying limits for very low income
families as established and amended from time to time pursuant to
Section 8 of the United States Housing Act of 1937.  These qualifying
limits shall be published by the department in the California Code
of Regulations as soon as possible after adoption by the Secretary of
Housing and Urban Development.  In the event the federal standards
are discontinued, the department shall, by regulation, establish
income limits for very low income households for all geographic areas
of the state at 50 percent of area median income, adjusted for
family size and revised annually.
   (b) "Very low income households" includes extremely low income
households, as defined in Section 50106.  The addition of this
subdivision does not constitute a change in, but is declaratory of,
existing law.
   (c) As used in this section, "area median income" means the median
family income of a geographic area of the state.
50106.  "Extremely low income households" means persons and families
whose incomes do not exceed the qualifying limits for extremely low
income families as established and amended from time to time by the
Secretary of Housing and Urban Development and defined in Section
5.603(b) of Title 24 of the Code of Federal Regulations.  These
limits shall be published by the department in the California Code of
Regulations as soon as possible after adoption by the Secretary of
Housing and Urban Development.  In the event the federal standards
are discontinued, the department shall, by regulation, establish
income limits for extremely low income households for all geographic
areas of the state at 30 percent of area median income, adjusted for
family size and revised annually.  As used in this section, "area
median income" means the median family income of a geographic area of
the state.