SECTIONS 51225-51232

51225.  In selecting proposals for financing, the agency shallbalance its activity between urban metropolitan, nonmetropolitan, andrural metropolitan areas of the state in general proportion to theneeds identified in the California Statewide Housing Plan. Insofar as feasible, the agency shall attempt to provide financingfor housing specifically designed for occupancy by particular typesof lower income households in general proportion to the proportionateneed identified in the California Statewide Housing Plan and shallconcentrate financing of construction and rehabilitation andfinancing for the sale of existing housing in areas of need asidentified in the California Statewide Housing Plan or pursuant toregulations adopted pursuant to subdivision (g) of Section 50462. The agency may also give priority consideration to, and reservefunds for use in connection with, large urban revitalizationprograms. To facilitate the implementation of that portion of the agency'smandate to serve nonmetropolitan and rural metropolitan areas of thestate in general proportion to the needs identified in the statewidehousing plans, the agency shall, in nonmetropolitan and ruralmetropolitan areas, actively and aggressively pursue the developmentand financing of projects in communities of various sizes in generalproportion to the communities' needs. The annual reports required ofthe agency pursuant to Section 51005 shall specifically enumerate theagency's progress towards meeting its mandate to servenonmetropolitan and rural metropolitan areas, and shall assess anyobstacles or problems which it has encountered in meeting thismandate, and suggest legislative and administrative solutions toovercome these obstacles or problems. In enumerating its progress, the agency shall separately assessits progress in meeting the rehabilitation needs of rural areas andthe new construction needs of rural areas, and separately assess itsprogress as to single and multifamily units. The agency shall includein its report an enumeration of its progress in meeting the housingneeds of communities of various sizes in rural areas. In order to facilitate implementation of local housing allocationplans, the agency may contract with a local public entity to reservea portion of available credit and subsidy assistance for that areafor one year. These contracts may be renewed annually by mutualagreement.51226.  (a) Subject to the availability of adequate subsidies, notless than 30 percent of the combined total units financed by mortgageloans and property improvement loans pursuant to this part duringeach fiscal year shall be made available on a priority basis to verylow income households. Subject to the availability of adequatesubsidies, not less than 20 percent of the units in each housingdevelopment shall be made available on a priority basis to very lowincome households, except that such requirement shall not apply tohousing developments of less than 12 units where the agency finds itis not necessary to make units available in the development for verylow income households to meet the requirement of making 30 percent oftotal units available to very low income households. In housingdevelopments for which the agency provides a construction loan butnot a mortgage loan, not less than 20 percent of the units shall bemade available on a priority basis to lower income households. Unitsrequired to be made available on a priority basis pursuant to thissection, shall be offered exclusively to those within the prioritygroup unless or until the agency permits the unit to be offered toother potential occupant groups. (b) In rental housing developments for which the agency providesinsurance but not construction or mortgage loans, not less than 10percent of the units shall be made available on a priority basis tolower income households. These units shall be of comparable qualityand offer a range of sizes and number of bedrooms comparable to therange of those units which are available for other tenants. (c) The agency shall actively and aggressively pursue allavailable federal housing programs and utilize fully all availablesubsidies in order to achieve the purposes of this section.51226.5.  (a) Notwithstanding the provisions of Section 51226, ineach housing development financed by the agency and insured under afederal multifamily insurance program, the agency shall enter into aloan commitment only in conformance with the following requirements: (1) With respect to housing developments financed on or afterJanuary 1, 1985, not less than 25 percent of the units shall be madeavailable on a priority basis for very low income households. (2) With respect to housing developments financed on or afterJanuary 1, 1985, an additional 10 percent or more of the units shallbe made available on a priority basis for other lower incomehouseholds if a subsidy for the housing development is providedthrough the agency or directly by the federal government. (b) Not less than 75 percent of the units in a housing developmentfinanced by the agency and insured under a federal multifamilyinsurance housing program shall be made available on a priority basisfor persons and families of low or moderate income. (c) The agency may provide financing for housing developments forthe elderly that are insured under a federal insurance program whenthe requirements of subdivisions (a) and (b) are met and (1) aminimum of 35 percent of the units in the development are madeavailable for lower income households, or (2) a majority of the unitsin the housing development which are to be made available for lowincome households are reserved for nonelderly households. This section shall become operative January 1, 1985.51227.  At the close of each fiscal year the agency shall ascertainthat not less than 25 percent of the total units financed by mortgageloans during the preceding 12 months pursuant to this part were madeavailable to very low-income households. At the close of each fiscalyear the agency shall ascertain that not less than 25 percent of allunits financed pursuant to this part by mortgage loans are occupiedor available to very low-income households.51227.7.  It shall be a goal of the agency that not less than 80percent of the dollar amount of financing from proceeds of bondsissued after December 31, 1979, be used to fund loans for the newconstruction or substantial rehabilitation of housing. In no eventshall the agency allocate less than 60 percent of the dollar amountof its financing from bond proceeds to fund loans (1) for newconstruction and substantial rehabilitation and (2) to make availablesubsidized rental units. This requirement shall apply to loans madeafter December 31, 1979, and shall be cumulative. As used in this section, "substantial rehabilitation" meansrehabilitation in which the costs of rehabilitation equal or exceed20 percent of the value of the structure after rehabilitation.51228.  At the time a mortgage loan commitment is made to financeany rental or cooperative housing development, a written agreementbetween the agency and housing sponsor shall be executed, designatingthe number of units to be made available on a priority basis withinsuch housing development to very low income households, to otherpersons and families of low or moderate income, and to otherhouseholds. If the number of units occupied by very low incomehouseholds in any housing development ever falls below the numberagreed to by the agency and housing sponsor, then units which becomeavailable for occupancy shall, subject to available subsidies be madeavailable on a priority basis to very low income households untilthe number of units so occupied equals at least the number specifiedin the agreement. The agency may from time to time review agreementsdesignating the allocation of units and, subject to agreement withthe housing sponsor, may increase the number of units to be madeavailable to very low income households if consistent withmaintenance of the financial integrity of the housing development andcontinuance of permitted earnings distributions, or may establishminimum rents or minimum incomes for occupancy of units becomingvacant and not otherwise allocated to very low income households ifnecessary to the financial integrity of the housing development andcontinuance of permitted earnings distributions.51230.  Not less than 30 percent nor more than 40 percent of theunits financed by the agency during each fiscal year for verylow-income households shall be designed specifically for occupancy byelderly persons. The agency shall in each fiscal year, finance atleast that number of rental units designed for occupancy andaccessibility by persons with orthopedic disabilities necessary tomake such units equal to the same percentage relationship to thetotal number of rental units as such persons comprise when comparedto the total population of the state. The percentage shall only,however, relate to those persons qualified by income and thepercentage relationship shall be verified according to submarketareas within the state.51231.  The agency shall assist housing sponsors in obtainingsubsidies. In selecting housing to be given assistance under thisdivision, the agency shall give priority to those which are able toobtain subsidies but cannot obtain alternative financing in order toutilize such subsidies. The agency shall make every effort to obtainsubsidy funds and nothing in this division shall preclude the agencyfrom meeting the eligibility requirements for obtaining federalhousing subsidy allocations.51232.  To implement the purposes of this division, the agency shalldevelop or require housing sponsors to develop, pursuant toregulations of the agency, resident selection plans. Residentselection plans for housing developments financed by mortgage loansfrom the agency, which shall provide that preference be given tohouseholds displaced by a housing development, public action, ornatural disaster. Such plans shall include criteria for residentselection, which shall establish income limits for residents, and mayinclude a counseling program designed to promote the financialsuccess of the housing development or the health, safety, and welfareof residents of the housing development. The agency may makeparticipation in such a counseling program a condition orprecondition of occupancy of a housing development. The agency maydevelop or require housing sponsors to develop, pursuant toregulations of the agency, resident selection plans for large urbanrevitalization programs which recognize a need to attract a fullrange of income groups for housing developments in central-cityareas.