2005 California Health and Safety Code Sections 50765-50768 Local Housing Authorities

50765.  The department may contract with local housing authorities
and provide funds which shall be used by such authorities to develop
and construct rental housing developments to be operated by such
housing authorities and to be rented to eligible households.
50766.  Each contract pursuant to Section 50765 shall contain at
least the following provisions:
   (a) The timing, amount, and terms of payments to be provided under
this article, including specific items to be covered by such
payments.
   (b) A description of the way in which the payments will be used to
provide affordable rents to eligible households occupying dwelling
units within the rental housing development.
   (c) A description of the rental housing development, projected
rent levels for all units and the number of units to be occupied by
eligible households.
   (d) Restrictions on occupancy of dwelling units within the rental
housing development, as necessary to meet the requirements of
Sections 50736 and 50739.
   (e) A requirement that prevailing wage rates be paid with respect
to construction of the rental housing development, and that all
contractors and subcontractors use affirmative action in hiring.
   (f) A requirement for periodic reports by the housing authority,
which shall at a minimum include information on the fiscal condition
of the rental housing development, the maintenance of such
development, and the number of units occupied by eligible households.
   (g) Provisions sufficient to ensure that assisted units shall be
available to or occupied by eligible households for a period of not
less than 30 years.
   (h) A provision which specifies the conditions under which the
department and any intended beneficiary may enforce the contract.
   (i) A provision that failure to operate the assisted units in
accordance with  the regulatory agreement shall be deemed a violation
of the regulatory agreement or deed of trust, as the case may be.
In the alternative, or in addition, the contract may contain a lien
on the rental housing development for the purpose of securing
performance of the contract.  Such lien shall include a legal
description of the assisted real property which is subject to the
lien and shall specify the duration of the lien on the assisted
property.
   (j) Provisions necessary for the administration, disbursement, and
protection of annuity fund payments including provisions specifying
the conditions under which the department may recover or reallocate
all or any part of such payments for the benefit of eligible
households in additional or existing assisted units.
   (k) Provisions governing the recovery and reallocation by the
department of rent revenues derived by the sponsor from the assisted
units, which are not necessary to defray the costs of operation
attributable to such units.  Such revenues shall be handled by the
department in the same manner as annuity payments recovered pursuant
to subdivision (j).
   (l) Authorization for the local housing authority to fix and alter
rents pursuant to the provisions of subdivision (a) of Section
50767.
   (m) Any other provisions necessary to carry out the purposes and
exercise the powers granted by this chapter.
   Any contract pursuant to Section 50765 containing a lien shall be
recorded or referenced in a document recorded in the county in which
the real property subject to the lien is located and shall be indexed
by the recorder in the grantor index to the name of the local
housing authority and in the grantee index to the name of the State
of California.
50767.  With respect to assisted units developed and constructed
pursuant to this article, the local housing authority shall, with the
approval of the department:
   (a) Ensure the provision of affordable rents.
   (b) Ensure that the incomes of tenants are recertified annually.
   (c) Ensure that upon income recertification rents are adjusted and
take effect within 30 days of adjustment.
   (d) Determine standards for and ensure fair procedures for, the
selection of tenants by housing sponsors or other management
designated pursuant to Section 50758 to ensure occupancy by eligible
households consistent with the requirements of Sections 50736 and
50739.
   (e) Regulate the terms of tenant occupancy agreements.
50768.  The department shall monitor the operation at the rental
housing development constructed pursuant to this article, to ensure
compliance with grant conditions, contract obligations, and the
provisions of this chapter and regulations adopted pursuant to this
chapter.