50825. It is the intent of the Legislature in enacting this chapter
to ensure that funds allocated to the state pursuant to the federal
State Community Development Block Grant Program (42 U.S.C. 5306(d)),
and administered by the department, be of maximum benefit in meeting
the housing and economic development needs of persons and families of
low or moderate income. The Legislature intends that these funds be
provided to eligible cities and counties that encourage new housing
developments and economic development and which need the funds to
support those developments. It is the intent of the Legislature to
reaffirm established state policy that each eligible city or county
contribute to meeting the statewide housing goals, or contribute to
meeting the state's urgent need to halt the flow of jobs out of
California by working to retain and expand existing businesses and
attract new businesses that provide jobs to low- and moderate-income
persons and families, or do both, and that funds allocated pursuant
to this chapter be distributed accordingly.
50826. As used in this chapter:
(a) "Eligible city or county" means an area which is not a
metropolitan city or part of an urban county, as defined by
paragraphs (4) and (6), respectively, of subsection (a) of Section
5302 of Title 42 of the United States Code.
(b) "NOFA" means notice of funding availability, a public
announcement that an estimated amount of funding will be awarded by a
department program according to specified criteria and schedules.
(c) "Persons and families of low or moderate income" means persons
and families whose income does not exceed 80 percent of the area
median income, adjusted for family size, as determined pursuant to
regulations adopted by the department.
(d) "Program" means the State Community Development Block Grant
Program created pursuant to federal law (42 U.S.C. 5301, et seq.).
50827. Thirty percent of the annual allocation of federal Small
Cities Community Development Block Grant funds shall be set aside for
economic development projects and programs specified in Sections
50832, 50832.1, 50833, and 50834. All funds made available pursuant
to the program shall, consistent with the requirements of subsection
(c) of Section 5301 of Title 42 of the United States Code, be
utilized to provide decent housing, a suitable living environment,
and expanding economic opportunities, principally for persons and
families of low or moderate income.
50828. Not less than 51 percent of the funds made available to the
department pursuant to the program shall be utilized by the
department to make grants to eligible cities or counties for the
purpose of providing or improving housing opportunities for persons
and families of low or moderate income or for purposes directly
related to the provision or improvement of housing opportunities for
persons and families of low or moderate income, including, but not
limited to, the construction of infrastructure.
50829. As a condition of receiving funds pursuant to this chapter,
an eligible city or county shall submit a housing element to the
department in accordance with the requirements of Article 10.6
(commencing with Section 65580) of Chapter 3 of Division 1 of Title 7
of the Government Code. However, except as otherwise provided in
Section 50830, no application for funds shall be denied because of
the content of the housing element or because of the findings made by
the department pursuant to Section 65585 of the Government Code.
50830. (a) Except as otherwise provided in subdivisions (b) and
(c), no city or county shall be eligible to receive funds pursuant to
this chapter if the city or county has adopted a general plan,
ordinance, or other measure which directly limits, by number, either
of the following:
(1) The building permits that may be issued for residential
construction.
(2) The buildable lots which may be developed for residential
purposes.
(b) Subdivision (a) shall not apply to either of the following:
(1) An ordinance adopted by a city or county which does any of the
following:
(A) Imposes a moratorium, to protect the public health and safety,
on residential construction for a specified period of time, if,
under the terms of the ordinance, the moratorium will cease when the
public health and safety is no longer jeopardized by the
construction.
(B) Creates agricultural preserves pursuant to Chapter 7
(commencing with Section 51200) of Part 2 of Division 1 of Title 5 of
the Government Code.
(C) Was adopted pursuant to a specific requirement of a state or
multistate board, agency, department, or commission.
(2) A city or county which has a housing element that the
department has found to be adequate pursuant to subdivision (c) of
Section 65585 or which is deemed to be in compliance with the
requirements of Article 10.6 (commencing with Section 65580) of
Chapter 3 of Division 1 of Title 7 of the Government Code pursuant to
Section 65586 of the Government Code at the time the city or county
applies for funds under the program, unless a final order has been
issued by a court in which the court determined that the housing
element is not in compliance with Article 10.6 (commencing with
Section 65580) of Chapter 3 of Division 1 of Title 7 of the
Government Code.
(c) A city or county which has adopted a general plan, ordinance,
or other measure subject to the restrictions of subdivision (a),
which are not exempted by subdivision (b), may, notwithstanding
subdivision (a), receive funds pursuant to this chapter if the use of
the funds is restricted for housing for persons and families of low
or moderate income. However, applications from cities or counties
which have not adopted a general plan, ordinance, or other measure
subject to the restrictions of subdivision (a) shall, to the extent
that eligible applications for grants exceed the amount available for
distribution pursuant to this chapter, have priority over
applications from cities or counties which have adopted such a
general plan, ordinance, or other measure which are not exempted by
subdivision (b).
50831. One and one-fourth percent of the funds made available to
the department under the program shall be utilized by the department
to make grants to cities and counties who apply to the department for
those funds on behalf of Indian tribes that do not fall within the
meaning of Indian tribe, as defined by paragraph (17) of subsection
(a) of Section 5302 of Title 42 of the United States Code. Those
funds shall be utilized by those Indian tribes for the same purposes
as those specified in Section 50828.
50832. (a) In order to ensure that a city or county may apply for
both economic development and general program grants pursuant to this
chapter in the same year, each applicant shall have a maximum grant
request limitation as determined by the department and announced in
the applicable NOFA, excluding general allocation planning and
technical assistance grants and economic development allocation
planning and technical assistance grants made available under Section
50833, of which a maximum amount as determined by the department and
announced in the applicable NOFA, per year may be used for either
general program or economic development applications. These
limitations may be waived for the economic development allocation
based upon available economic development funds after September 1 of
each year. The department shall aggressively inform eligible cities
and counties of the eligibility criteria and requirements under this
section and in Section 50833.
(b) Except for applications specified in Section 50832.1,
applications for all activities or set-asides under this section and
Section 50833 shall be evaluated on a first-in, first-served basis.
(c) For all economic development applications under this section
or Section 50833, including economic development assistance grants,
the department shall develop project standards and rating factors
which meet the minimum requirements of federal statutes, including a
jobs-for-dollars test of thirty-five thousand dollars ($35,000) per
job created or retained. In addition to the low- and moderate-income
persons or families criteria established in subdivision (b) of
Section 50826 and Sections 50827 and 50828, the department shall also
utilize as criteria for the economic development allocation the
federal standards of "blight" and "urgent need" under this section,
Section 50832.1, and Section 50833.
(d) A jurisdiction may submit multiyear proposals for a period not
exceeding three years in duration.
50832.1. (a) The department is authorized to utilize specified
amounts of the economic development set aside for a reservation of
funds program to establish or enhance local revolving loan fund
programs.
(b) To the extent that the department determines that some local
communities lack capacity to apply for and administer projects under
this section and Section 50832, the department may utilize federal
training dollars to provide training services to those communities.
In providing training, the department may contract with training
entities, provide the training directly, or make stipends available
for that training.
(c) Utilizing only existing Community Development Block Grant
administrative funds, the department shall make every effort to
assist communities unable to demonstrate compliance with federal
regulations to come into compliance, which may include providing
communities training in revolving loan fund administration through
outside contractors.
50833. (a) The department shall determine and announce in the
applicable NOFA the percentage of the total amount of the State Block
Grant Program funds set aside for economic development that shall be
allocated to make economic development planning and technical
assistance grants to eligible small cities or counties for business
attraction, retention, and expansion programs for the development of
local economic development strategies, predevelopment grant
feasibility studies, and downtown revitalization programs. Eligible
small cities or counties may contract with public agencies or
nonprofit economic development corporations and other eligible
subgrantees or for-profit corporations or entities to provide these
services. Each applicant shall be required to provide a cash match of
up to 25 percent of the total amount requested. A technical
assistance grant received under this set-aside is in addition to the
city or county ceiling, under Section 50832, or its ability to apply
under the economic development or general program set-asides. The
department shall determine and announce in the applicable NOFA the
maximum per year grant amount. Each applicant shall not receive more
than two grants per year and shall be eligible to apply each year,
although no applicant shall receive grants in excess of the maximum
amount determined by the department and announced in the applicable
NOFA in any one year. Funds not applied for or allocated under this
section may be used for other economic development purposes under
Sections 50832 and 50832.1.
(b) The department shall determine and announce in the applicable
NOFA the percentage of the total amount of the State Block Grant
Program funds not used for economic development that shall be set
aside to make technical assistance grants to eligible small cities or
counties for purposes including, but not limited to: inventory of
housing needing rehabilitation in the district, income surveys of
area residents, and any general studies of housing needs in the
district. Each applicant shall be required to provide a cash match of
up to 25 percent of the total amount requested. A technical
assistance grant received under this set-aside is in addition to the
city or county ceiling or its ability to apply under the economic
development or general program set-asides. Unexpended funds allocated
under this section shall revert to the general program, but not to
the economic development set-aside. The department shall determine
and announce in the applicable NOFA the maximum grant amount per
application. Each applicant shall not receive more than two grants
per year and shall be eligible to apply each year, although no
applicant shall receive grants in excess of the maximum amount
determined by the department and announced in the applicable NOFA in
any one year.
(c) If, under federal law, the economic development planning and
technical assistance grants and the general allocation planning and
assistance grants are considered to be administrative expenditures,
the department may reduce the percentages of the set-asides by up to
the amount necessary to remain within the allowable limits for
administrative expenditures.
(d) Two or more jurisdictions may pool their funds and make a
joint application for the same project.
(e) General administrative activity planning studies shall not be
counted against allocations under this section.
50833.1. (a) In the event that the department is allocated
supplemental funds in excess of the state's annual program allocation
pursuant to subdivision (d) of Section 5306 of Title 42 of the
United States Code to meet an extraordinary need, including funds
provided to serve as an economic stimulus to the economy of
California, or in the event that federal funds are required to be set
aside from the department's annual allocation pursuant to federal
law or regulation, the department may distribute these supplemental
or federally mandated set-aside funds pursuant to guidelines to be
set forth in a special Notice of Funding Availability.
(b) The distribution of supplemental or federally mandated
set-aside funds under this section shall not be subject to the
requirements of Sections 50831, 50832, and 50833, and shall be made
notwithstanding any special allocations specified in Subchapter 2
(commencing with Section 7050) of Chapter 7 of Division 1 of Title 25
of the California Code of Regulations.
(c) The guidelines for the distribution of supplemental
allocations and federally mandated set-aside funds shall not be
subject to any provision of Subchapter 2 (commencing with Section
7050) of Chapter 7 of Division 1 of Title 25 of the California Code
of Regulations that the department determines to be in conflict with
the purpose of, or impair the achievement of the goals of, the
supplemental allocation or the federally mandated set-aside funds.
(d) The department may adopt emergency regulations to implement
this section. The adoption of any emergency regulations to implement
this section that are filed with the Office of Administrative Law
within one year of the effective date of the federal act that
allocates these supplemental funds shall be deemed to be an emergency
and necessary for the immediate preservation of the public peace,
health and safety, or general welfare.
50834. (a) The department shall prepare a separate and discrete
training manual and request for proposal for the economic development
set-aside. The department shall ensure that it can respond to
requests for grants as rapidly as possible. Once an economic
development project award is approved by the director, a contract
shall be executed and funds made available as soon as possible.
(b) Any program income received by a city or county grantee, or
any loan repayments made by a beneficiary to a grantee, may be
utilized by the city or county grantee for any activity currently
eligible under federal law and regulations, provided that the
department determines that the beneficiary or grantee has complied
reasonably with the terms and conditions described in the contract
between the grantee and the department.
(c) Any economic development set-aside of funds not encumbered for
funding of a project by the end of the federal contract period shall
revert to the general program and be set aside for use if approved
projects for which no funds are available are pending.
(d) The department shall conditionally commit economic development
allocations to projects that meet the requirements of this chapter
up front, contingent upon the applicant receiving those other funding
commitments necessary to complete the project.
50825. It is the intent of the Legislature in enacting this chapter
to ensure that funds allocated to the state pursuant to the federal
State Community Development Block Grant Program (42 U.S.C. 5306(d)),
and administered by the department, be of maximum benefit in meeting
the housing and economic development needs of persons and families of
low or moderate income. The Legislature intends that these funds be
provided to eligible cities and counties that encourage new housing
developments and economic development and which need the funds to
support those developments. It is the intent of the Legislature to
reaffirm established state policy that each eligible city or county
contribute to meeting the statewide housing goals, or contribute to
meeting the state's urgent need to halt the flow of jobs out of
California by working to retain and expand existing businesses and
attract new businesses that provide jobs to low- and moderate-income
persons and families, or do both, and that funds allocated pursuant
to this chapter be distributed accordingly.
50826. As used in this chapter:
(a) "Eligible city or county" means an area which is not a
metropolitan city or part of an urban county, as defined by
paragraphs (4) and (6), respectively, of subsection (a) of Section
5302 of Title 42 of the United States Code.
(b) "NOFA" means notice of funding availability, a public
announcement that an estimated amount of funding will be awarded by a
department program according to specified criteria and schedules.
(c) "Persons and families of low or moderate income" means persons
and families whose income does not exceed 80 percent of the area
median income, adjusted for family size, as determined pursuant to
regulations adopted by the department.
(d) "Program" means the State Community Development Block Grant
Program created pursuant to federal law (42 U.S.C. 5301, et seq.).
50827. Thirty percent of the annual allocation of federal Small
Cities Community Development Block Grant funds shall be set aside for
economic development projects and programs specified in Sections
50832, 50832.1, 50833, and 50834. All funds made available pursuant
to the program shall, consistent with the requirements of subsection
(c) of Section 5301 of Title 42 of the United States Code, be
utilized to provide decent housing, a suitable living environment,
and expanding economic opportunities, principally for persons and
families of low or moderate income.
50828. Not less than 51 percent of the funds made available to the
department pursuant to the program shall be utilized by the
department to make grants to eligible cities or counties for the
purpose of providing or improving housing opportunities for persons
and families of low or moderate income or for purposes directly
related to the provision or improvement of housing opportunities for
persons and families of low or moderate income, including, but not
limited to, the construction of infrastructure.
50829. As a condition of receiving funds pursuant to this chapter,
an eligible city or county shall submit a housing element to the
department in accordance with the requirements of Article 10.6
(commencing with Section 65580) of Chapter 3 of Division 1 of Title 7
of the Government Code. However, except as otherwise provided in
Section 50830, no application for funds shall be denied because of
the content of the housing element or because of the findings made by
the department pursuant to Section 65585 of the Government Code.
50830. (a) Except as otherwise provided in subdivisions (b) and
(c), no city or county shall be eligible to receive funds pursuant to
this chapter if the city or county has adopted a general plan,
ordinance, or other measure which directly limits, by number, either
of the following:
(1) The building permits that may be issued for residential
construction.
(2) The buildable lots which may be developed for residential
purposes.
(b) Subdivision (a) shall not apply to either of the following:
(1) An ordinance adopted by a city or county which does any of the
following:
(A) Imposes a moratorium, to protect the public health and safety,
on residential construction for a specified period of time, if,
under the terms of the ordinance, the moratorium will cease when the
public health and safety is no longer jeopardized by the
construction.
(B) Creates agricultural preserves pursuant to Chapter 7
(commencing with Section 51200) of Part 2 of Division 1 of Title 5 of
the Government Code.
(C) Was adopted pursuant to a specific requirement of a state or
multistate board, agency, department, or commission.
(2) A city or county which has a housing element that the
department has found to be adequate pursuant to subdivision (c) of
Section 65585 or which is deemed to be in compliance with the
requirements of Article 10.6 (commencing with Section 65580) of
Chapter 3 of Division 1 of Title 7 of the Government Code pursuant to
Section 65586 of the Government Code at the time the city or county
applies for funds under the program, unless a final order has been
issued by a court in which the court determined that the housing
element is not in compliance with Article 10.6 (commencing with
Section 65580) of Chapter 3 of Division 1 of Title 7 of the
Government Code.
(c) A city or county which has adopted a general plan, ordinance,
or other measure subject to the restrictions of subdivision (a),
which are not exempted by subdivision (b), may, notwithstanding
subdivision (a), receive funds pursuant to this chapter if the use of
the funds is restricted for housing for persons and families of low
or moderate income. However, applications from cities or counties
which have not adopted a general plan, ordinance, or other measure
subject to the restrictions of subdivision (a) shall, to the extent
that eligible applications for grants exceed the amount available for
distribution pursuant to this chapter, have priority over
applications from cities or counties which have adopted such a
general plan, ordinance, or other measure which are not exempted by
subdivision (b).
50831. One and one-fourth percent of the funds made available to
the department under the program shall be utilized by the department
to make grants to cities and counties who apply to the department for
those funds on behalf of Indian tribes that do not fall within the
meaning of Indian tribe, as defined by paragraph (17) of subsection
(a) of Section 5302 of Title 42 of the United States Code. Those
funds shall be utilized by those Indian tribes for the same purposes
as those specified in Section 50828.
50832. (a) In order to ensure that a city or county may apply for
both economic development and general program grants pursuant to this
chapter in the same year, each applicant shall have a maximum grant
request limitation as determined by the department and announced in
the applicable NOFA, excluding general allocation planning and
technical assistance grants and economic development allocation
planning and technical assistance grants made available under Section
50833, of which a maximum amount as determined by the department and
announced in the applicable NOFA, per year may be used for either
general program or economic development applications. These
limitations may be waived for the economic development allocation
based upon available economic development funds after September 1 of
each year. The department shall aggressively inform eligible cities
and counties of the eligibility criteria and requirements under this
section and in Section 50833.
(b) Except for applications specified in Section 50832.1,
applications for all activities or set-asides under this section and
Section 50833 shall be evaluated on a first-in, first-served basis.
(c) For all economic development applications under this section
or Section 50833, including economic development assistance grants,
the department shall develop project standards and rating factors
which meet the minimum requirements of federal statutes, including a
jobs-for-dollars test of thirty-five thousand dollars ($35,000) per
job created or retained. In addition to the low- and moderate-income
persons or families criteria established in subdivision (b) of
Section 50826 and Sections 50827 and 50828, the department shall also
utilize as criteria for the economic development allocation the
federal standards of "blight" and "urgent need" under this section,
Section 50832.1, and Section 50833.
(d) A jurisdiction may submit multiyear proposals for a period not
exceeding three years in duration.
50832.1. (a) The department is authorized to utilize specified
amounts of the economic development set aside for a reservation of
funds program to establish or enhance local revolving loan fund
programs.
(b) To the extent that the department determines that some local
communities lack capacity to apply for and administer projects under
this section and Section 50832, the department may utilize federal
training dollars to provide training services to those communities.
In providing training, the department may contract with training
entities, provide the training directly, or make stipends available
for that training.
(c) Utilizing only existing Community Development Block Grant
administrative funds, the department shall make every effort to
assist communities unable to demonstrate compliance with federal
regulations to come into compliance, which may include providing
communities training in revolving loan fund administration through
outside contractors.
50833. (a) The department shall determine and announce in the
applicable NOFA the percentage of the total amount of the State Block
Grant Program funds set aside for economic development that shall be
allocated to make economic development planning and technical
assistance grants to eligible small cities or counties for business
attraction, retention, and expansion programs for the development of
local economic development strategies, predevelopment grant
feasibility studies, and downtown revitalization programs. Eligible
small cities or counties may contract with public agencies or
nonprofit economic development corporations and other eligible
subgrantees or for-profit corporations or entities to provide these
services. Each applicant shall be required to provide a cash match of
up to 25 percent of the total amount requested. A technical
assistance grant received under this set-aside is in addition to the
city or county ceiling, under Section 50832, or its ability to apply
under the economic development or general program set-asides. The
department shall determine and announce in the applicable NOFA the
maximum per year grant amount. Each applicant shall not receive more
than two grants per year and shall be eligible to apply each year,
although no applicant shall receive grants in excess of the maximum
amount determined by the department and announced in the applicable
NOFA in any one year. Funds not applied for or allocated under this
section may be used for other economic development purposes under
Sections 50832 and 50832.1.
(b) The department shall determine and announce in the applicable
NOFA the percentage of the total amount of the State Block Grant
Program funds not used for economic development that shall be set
aside to make technical assistance grants to eligible small cities or
counties for purposes including, but not limited to: inventory of
housing needing rehabilitation in the district, income surveys of
area residents, and any general studies of housing needs in the
district. Each applicant shall be required to provide a cash match of
up to 25 percent of the total amount requested. A technical
assistance grant received under this set-aside is in addition to the
city or county ceiling or its ability to apply under the economic
development or general program set-asides. Unexpended funds allocated
under this section shall revert to the general program, but not to
the economic development set-aside. The department shall determine
and announce in the applicable NOFA the maximum grant amount per
application. Each applicant shall not receive more than two grants
per year and shall be eligible to apply each year, although no
applicant shall receive grants in excess of the maximum amount
determined by the department and announced in the applicable NOFA in
any one year.
(c) If, under federal law, the economic development planning and
technical assistance grants and the general allocation planning and
assistance grants are considered to be administrative expenditures,
the department may reduce the percentages of the set-asides by up to
the amount necessary to remain within the allowable limits for
administrative expenditures.
(d) Two or more jurisdictions may pool their funds and make a
joint application for the same project.
(e) General administrative activity planning studies shall not be
counted against allocations under this section.
50833.1. (a) In the event that the department is allocated
supplemental funds in excess of the state's annual program allocation
pursuant to subdivision (d) of Section 5306 of Title 42 of the
United States Code to meet an extraordinary need, including funds
provided to serve as an economic stimulus to the economy of
California, or in the event that federal funds are required to be set
aside from the department's annual allocation pursuant to federal
law or regulation, the department may distribute these supplemental
or federally mandated set-aside funds pursuant to guidelines to be
set forth in a special Notice of Funding Availability.
(b) The distribution of supplemental or federally mandated
set-aside funds under this section shall not be subject to the
requirements of Sections 50831, 50832, and 50833, and shall be made
notwithstanding any special allocations specified in Subchapter 2
(commencing with Section 7050) of Chapter 7 of Division 1 of Title 25
of the California Code of Regulations.
(c) The guidelines for the distribution of supplemental
allocations and federally mandated set-aside funds shall not be
subject to any provision of Subchapter 2 (commencing with Section
7050) of Chapter 7 of Division 1 of Title 25 of the California Code
of Regulations that the department determines to be in conflict with
the purpose of, or impair the achievement of the goals of, the
supplemental allocation or the federally mandated set-aside funds.
(d) The department may adopt emergency regulations to implement
this section. The adoption of any emergency regulations to implement
this section that are filed with the Office of Administrative Law
within one year of the effective date of the federal act that
allocates these supplemental funds shall be deemed to be an emergency
and necessary for the immediate preservation of the public peace,
health and safety, or general welfare.
50834. (a) The department shall prepare a separate and discrete
training manual and request for proposal for the economic development
set-aside. The department shall ensure that it can respond to
requests for grants as rapidly as possible. Once an economic
development project award is approved by the director, a contract
shall be executed and funds made available as soon as possible.
(b) Any program income received by a city or county grantee, or
any loan repayments made by a beneficiary to a grantee, may be
utilized by the city or county grantee for any activity currently
eligible under federal law and regulations, provided that the
department determines that the beneficiary or grantee has complied
reasonably with the terms and conditions described in the contract
between the grantee and the department.
(c) Any economic development set-aside of funds not encumbered for
funding of a project by the end of the federal contract period shall
revert to the general program and be set aside for use if approved
projects for which no funds are available are pending.
(d) The department shall conditionally commit economic development
allocations to projects that meet the requirements of this chapter
up front, contingent upon the applicant receiving those other funding
commitments necessary to complete the project.
50825. It is the intent of the Legislature in enacting this chapter
to ensure that funds allocated to the state pursuant to the federal
State Community Development Block Grant Program (42 U.S.C. 5306(d)),
and administered by the department, be of maximum benefit in meeting
the housing and economic development needs of persons and families of
low or moderate income. The Legislature intends that these funds be
provided to eligible cities and counties that encourage new housing
developments and economic development and which need the funds to
support those developments. It is the intent of the Legislature to
reaffirm established state policy that each eligible city or county
contribute to meeting the statewide housing goals, or contribute to
meeting the state's urgent need to halt the flow of jobs out of
California by working to retain and expand existing businesses and
attract new businesses that provide jobs to low- and moderate-income
persons and families, or do both, and that funds allocated pursuant
to this chapter be distributed accordingly.
50826. As used in this chapter:
(a) "Eligible city or county" means an area which is not a
metropolitan city or part of an urban county, as defined by
paragraphs (4) and (6), respectively, of subsection (a) of Section
5302 of Title 42 of the United States Code.
(b) "NOFA" means notice of funding availability, a public
announcement that an estimated amount of funding will be awarded by a
department program according to specified criteria and schedules.
(c) "Persons and families of low or moderate income" means persons
and families whose income does not exceed 80 percent of the area
median income, adjusted for family size, as determined pursuant to
regulations adopted by the department.
(d) "Program" means the State Community Development Block Grant
Program created pursuant to federal law (42 U.S.C. 5301, et seq.).
50827. Thirty percent of the annual allocation of federal Small
Cities Community Development Block Grant funds shall be set aside for
economic development projects and programs specified in Sections
50832, 50832.1, 50833, and 50834. All funds made available pursuant
to the program shall, consistent with the requirements of subsection
(c) of Section 5301 of Title 42 of the United States Code, be
utilized to provide decent housing, a suitable living environment,
and expanding economic opportunities, principally for persons and
families of low or moderate income.
50828. Not less than 51 percent of the funds made available to the
department pursuant to the program shall be utilized by the
department to make grants to eligible cities or counties for the
purpose of providing or improving housing opportunities for persons
and families of low or moderate income or for purposes directly
related to the provision or improvement of housing opportunities for
persons and families of low or moderate income, including, but not
limited to, the construction of infrastructure.
50829. As a condition of receiving funds pursuant to this chapter,
an eligible city or county shall submit a housing element to the
department in accordance with the requirements of Article 10.6
(commencing with Section 65580) of Chapter 3 of Division 1 of Title 7
of the Government Code. However, except as otherwise provided in
Section 50830, no application for funds shall be denied because of
the content of the housing element or because of the findings made by
the department pursuant to Section 65585 of the Government Code.
50830. (a) Except as otherwise provided in subdivisions (b) and
(c), no city or county shall be eligible to receive funds pursuant to
this chapter if the city or county has adopted a general plan,
ordinance, or other measure which directly limits, by number, either
of the following:
(1) The building permits that may be issued for residential
construction.
(2) The buildable lots which may be developed for residential
purposes.
(b) Subdivision (a) shall not apply to either of the following:
(1) An ordinance adopted by a city or county which does any of the
following:
(A) Imposes a moratorium, to protect the public health and safety,
on residential construction for a specified period of time, if,
under the terms of the ordinance, the moratorium will cease when the
public health and safety is no longer jeopardized by the
construction.
(B) Creates agricultural preserves pursuant to Chapter 7
(commencing with Section 51200) of Part 2 of Division 1 of Title 5 of
the Government Code.
(C) Was adopted pursuant to a specific requirement of a state or
multistate board, agency, department, or commission.
(2) A city or county which has a housing element that the
department has found to be adequate pursuant to subdivision (c) of
Section 65585 or which is deemed to be in compliance with the
requirements of Article 10.6 (commencing with Section 65580) of
Chapter 3 of Division 1 of Title 7 of the Government Code pursuant to
Section 65586 of the Government Code at the time the city or county
applies for funds under the program, unless a final order has been
issued by a court in which the court determined that the housing
element is not in compliance with Article 10.6 (commencing with
Section 65580) of Chapter 3 of Division 1 of Title 7 of the
Government Code.
(c) A city or county which has adopted a general plan, ordinance,
or other measure subject to the restrictions of subdivision (a),
which are not exempted by subdivision (b), may, notwithstanding
subdivision (a), receive funds pursuant to this chapter if the use of
the funds is restricted for housing for persons and families of low
or moderate income. However, applications from cities or counties
which have not adopted a general plan, ordinance, or other measure
subject to the restrictions of subdivision (a) shall, to the extent
that eligible applications for grants exceed the amount available for
distribution pursuant to this chapter, have priority over
applications from cities or counties which have adopted such a
general plan, ordinance, or other measure which are not exempted by
subdivision (b).
50831. One and one-fourth percent of the funds made available to
the department under the program shall be utilized by the department
to make grants to cities and counties who apply to the department for
those funds on behalf of Indian tribes that do not fall within the
meaning of Indian tribe, as defined by paragraph (17) of subsection
(a) of Section 5302 of Title 42 of the United States Code. Those
funds shall be utilized by those Indian tribes for the same purposes
as those specified in Section 50828.
50832. (a) In order to ensure that a city or county may apply for
both economic development and general program grants pursuant to this
chapter in the same year, each applicant shall have a maximum grant
request limitation as determined by the department and announced in
the applicable NOFA, excluding general allocation planning and
technical assistance grants and economic development allocation
planning and technical assistance grants made available under Section
50833, of which a maximum amount as determined by the department and
announced in the applicable NOFA, per year may be used for either
general program or economic development applications. These
limitations may be waived for the economic development allocation
based upon available economic development funds after September 1 of
each year. The department shall aggressively inform eligible cities
and counties of the eligibility criteria and requirements under this
section and in Section 50833.
(b) Except for applications specified in Section 50832.1,
applications for all activities or set-asides under this section and
Section 50833 shall be evaluated on a first-in, first-served basis.
(c) For all economic development applications under this section
or Section 50833, including economic development assistance grants,
the department shall develop project standards and rating factors
which meet the minimum requirements of federal statutes, including a
jobs-for-dollars test of thirty-five thousand dollars ($35,000) per
job created or retained. In addition to the low- and moderate-income
persons or families criteria established in subdivision (b) of
Section 50826 and Sections 50827 and 50828, the department shall also
utilize as criteria for the economic development allocation the
federal standards of "blight" and "urgent need" under this section,
Section 50832.1, and Section 50833.
(d) A jurisdiction may submit multiyear proposals for a period not
exceeding three years in duration.
50832.1. (a) The department is authorized to utilize specified
amounts of the economic development set aside for a reservation of
funds program to establish or enhance local revolving loan fund
programs.
(b) To the extent that the department determines that some local
communities lack capacity to apply for and administer projects under
this section and Section 50832, the department may utilize federal
training dollars to provide training services to those communities.
In providing training, the department may contract with training
entities, provide the training directly, or make stipends available
for that training.
(c) Utilizing only existing Community Development Block Grant
administrative funds, the department shall make every effort to
assist communities unable to demonstrate compliance with federal
regulations to come into compliance, which may include providing
communities training in revolving loan fund administration through
outside contractors.
50833. (a) The department shall determine and announce in the
applicable NOFA the percentage of the total amount of the State Block
Grant Program funds set aside for economic development that shall be
allocated to make economic development planning and technical
assistance grants to eligible small cities or counties for business
attraction, retention, and expansion programs for the development of
local economic development strategies, predevelopment grant
feasibility studies, and downtown revitalization programs. Eligible
small cities or counties may contract with public agencies or
nonprofit economic development corporations and other eligible
subgrantees or for-profit corporations or entities to provide these
services. Each applicant shall be required to provide a cash match of
up to 25 percent of the total amount requested. A technical
assistance grant received under this set-aside is in addition to the
city or county ceiling, under Section 50832, or its ability to apply
under the economic development or general program set-asides. The
department shall determine and announce in the applicable NOFA the
maximum per year grant amount. Each applicant shall not receive more
than two grants per year and shall be eligible to apply each year,
although no applicant shall receive grants in excess of the maximum
amount determined by the department and announced in the applicable
NOFA in any one year. Funds not applied for or allocated under this
section may be used for other economic development purposes under
Sections 50832 and 50832.1.
(b) The department shall determine and announce in the applicable
NOFA the percentage of the total amount of the State Block Grant
Program funds not used for economic development that shall be set
aside to make technical assistance grants to eligible small cities or
counties for purposes including, but not limited to: inventory of
housing needing rehabilitation in the district, income surveys of
area residents, and any general studies of housing needs in the
district. Each applicant shall be required to provide a cash match of
up to 25 percent of the total amount requested. A technical
assistance grant received under this set-aside is in addition to the
city or county ceiling or its ability to apply under the economic
development or general program set-asides. Unexpended funds allocated
under this section shall revert to the general program, but not to
the economic development set-aside. The department shall determine
and announce in the applicable NOFA the maximum grant amount per
application. Each applicant shall not receive more than two grants
per year and shall be eligible to apply each year, although no
applicant shall receive grants in excess of the maximum amount
determined by the department and announced in the applicable NOFA in
any one year.
(c) If, under federal law, the economic development planning and
technical assistance grants and the general allocation planning and
assistance grants are considered to be administrative expenditures,
the department may reduce the percentages of the set-asides by up to
the amount necessary to remain within the allowable limits for
administrative expenditures.
(d) Two or more jurisdictions may pool their funds and make a
joint application for the same project.
(e) General administrative activity planning studies shall not be
counted against allocations under this section.
50833.1. (a) In the event that the department is allocated
supplemental funds in excess of the state's annual program allocation
pursuant to subdivision (d) of Section 5306 of Title 42 of the
United States Code to meet an extraordinary need, including funds
provided to serve as an economic stimulus to the economy of
California, or in the event that federal funds are required to be set
aside from the department's annual allocation pursuant to federal
law or regulation, the department may distribute these supplemental
or federally mandated set-aside funds pursuant to guidelines to be
set forth in a special Notice of Funding Availability.
(b) The distribution of supplemental or federally mandated
set-aside funds under this section shall not be subject to the
requirements of Sections 50831, 50832, and 50833, and shall be made
notwithstanding any special allocations specified in Subchapter 2
(commencing with Section 7050) of Chapter 7 of Division 1 of Title 25
of the California Code of Regulations.
(c) The guidelines for the distribution of supplemental
allocations and federally mandated set-aside funds shall not be
subject to any provision of Subchapter 2 (commencing with Section
7050) of Chapter 7 of Division 1 of Title 25 of the California Code
of Regulations that the department determines to be in conflict with
the purpose of, or impair the achievement of the goals of, the
supplemental allocation or the federally mandated set-aside funds.
(d) The department may adopt emergency regulations to implement
this section. The adoption of any emergency regulations to implement
this section that are filed with the Office of Administrative Law
within one year of the effective date of the federal act that
allocates these supplemental funds shall be deemed to be an emergency
and necessary for the immediate preservation of the public peace,
health and safety, or general welfare.
50834. (a) The department shall prepare a separate and discrete
training manual and request for proposal for the economic development
set-aside. The department shall ensure that it can respond to
requests for grants as rapidly as possible. Once an economic
development project award is approved by the director, a contract
shall be executed and funds made available as soon as possible.
(b) Any program income received by a city or county grantee, or
any loan repayments made by a beneficiary to a grantee, may be
utilized by the city or county grantee for any activity currently
eligible under federal law and regulations, provided that the
department determines that the beneficiary or grantee has complied
reasonably with the terms and conditions described in the contract
between the grantee and the department.
(c) Any economic development set-aside of funds not encumbered for
funding of a project by the end of the federal contract period shall
revert to the general program and be set aside for use if approved
projects for which no funds are available are pending.
(d) The department shall conditionally commit economic development
allocations to projects that meet the requirements of this chapter
up front, contingent upon the applicant receiving those other funding
commitments necessary to complete the project.
