52075. (a) Subject to the limitations of this chapter, any city or
county may, in addition to any other power conferred by this part,
issue revenue bonds as provided in Chapter 4 (commencing with Section
52030) for the purpose of financing the acquisition, construction,
rehabilitation, refinancing, or development of multifamily rental
housing and for the provision of capital improvements in connection
with and determined necessary to that multifamily rental housing.
(b) For this purpose, the term "home mortgage," as used in Chapter
4 (commencing with Section 52030), and as defined by Section 52013,
shall be further defined to include construction loans and mortgage
loans to housing sponsors to finance the acquisition, construction,
rehabilitation, refinancing, or development of multifamily rental
housing and for the provision of capital improvements in connection
with and determined necessary to the multifamily rental housing.
(c) To the extent possible, Chapter 4 (commencing with Section
52030) shall be construed in a manner that enables a city or county
to comply with the purpose and requirements of this chapter.
52075.1. As used in this chapter, "city or county" includes any
city and county.
52076. Subject to the limitations prescribed in this chapter, a
city or county may make, or undertake commitments to make,
construction loans and mortgage loans to housing sponsors to finance
the acquisition, construction, rehabilitation, refinancing, or
development of multifamily rental housing. For this purpose, the city
or county shall enter into regulatory contracts and other agreements
with housing sponsors receiving loans under this chapter to assure
all requirements of this chapter are satisfied.
52077. Subject to the limitations prescribed in this chapter, a
city or county may purchase, or undertake, directly or indirectly
through lending institutions, commitments to purchase, construction
loans and mortgage loans originated in accordance with a financing
agreement with the city or county to finance the acquisition,
construction, rehabilitation, refinancing, or development of
multifamily rental housing and may make loans to lending institutions
under terms and conditions which, in addition to other provisions
determined by the city or county, shall require the lending
institutions to use the net proceeds of the loans for the making,
directly or indirectly, of construction loans or mortgage loans to
finance the acquisition, construction, rehabilitation, refinancing,
or development of multifamily rental housing.
52078. For the purposes of this chapter, a city or county shall
have the power to issue its bonds to defray, in whole or in part, the
costs of studies and surveys, insurance premiums, underwriting fees,
legal, accounting, and marketing services incurred in connection
with the issuance and sale of bonds, including bond and mortgage
reserve accounts; trustee, custodian, and rating agency fees, and any
other costs which are reasonably related to the foregoing.
52079. A city or county may, in conjunction with the financing of
multifamily rental housing pursuant to this chapter, finance the
acquisition, construction, rehabilitation, refinancing, or
development of commercial property for lease, subject to all of the
following conditions:
(a) No more than 10 percent of the proceeds of any revenue bonds
issued pursuant to this chapter may be used to develop the commercial
property for lease.
(b) The commercial property developed will be located on the same
parcel or on a parcel adjacent to a multifamily rental housing
development.
(c) As a condition of the financing, any lease payments collected
in excess of payments necessary for debt service, operating expenses
and any required reserves related to that property, shall be used to
reduce rents on units reserved for occupancy by lower income
households and very low income households in a multifamily rental
housing development.
52080. (a) (1) A multifamily rental housing development financed,
or for which financing has been extended or committed pursuant to
this chapter from the proceeds of sale of each bond issue, shall at
all times during the qualified project period meet the requirement of
subparagraph (A) or (B), whichever is elected by the issuer at the
time of issuance of the issue for each development:
(A) Twenty percent or more of the residential units in the
development shall be occupied by individuals whose income is 50
percent or less of area median income.
(B) Forty percent or more of the residential units in the
development shall be occupied by individuals whose income is 60
percent or less of area median income.
As used in this section, "qualified project period," "income," and
"area median income" shall have the meanings specified in, and shall
be determined in accordance with the provisions of, subsection (d)
of Section 142 of the Internal Revenue Code of 1986, as amended, and
United States Treasury regulations and rulings promulgated pursuant
thereto.
With respect to a development for which the issuer has elected to
meet the requirement of subparagraph (A), the rental payments paid by
the occupants of the units meeting the requirement of subparagraph
(A) (excluding any supplemental rental assistance from the state, the
federal government, or any other public agency to those occupants or
on behalf of those units) shall not exceed 30 percent of 50 percent
of area median income. With respect to a development for which the
issuer has elected to meet the requirement of subparagraph (B), the
rental payments paid by the occupants of the units meeting the
requirement of subparagraph (B) (excluding any supplemental rental
assistance from the state, the federal government, or any other
public agency to those occupants or on behalf of those units) shall
not exceed 30 percent of 60 percent of area median income.
(2) The governing body shall ensure that the local agency issuing
permits for the acquisition, construction, rehabilitation,
refinancing, or development of the multifamily rental housing
development shall consider opportunities to contribute to the
economic feasibility of the units and to the provision of units for
very low income households through concessions and inducements
including, but not limited to, the following:
(A) Reductions in construction and design requirements.
(B) Reductions in setback and square footage requirements and the
ratio of vehicular parking spaces that would otherwise be required.
(C) Granting density bonuses.
(D) Providing expedited processing of permits.
(E) Modifying zoning code requirements to allow mixed use zoning.
(F) Reducing or eliminating fees and charges for filing and
processing applications, petitions, permits, planning services, water
and sewer connections, and other fees and charges.
(G) Reducing or eliminating requirements relating to monetary
exactions, dedications, reservations of land, or construction of
public facilities.
(H) Other financial incentives or concessions for the multifamily
rental housing development which result in identifiable cost
reductions, as determined by the governing body. The governing body
shall ensure that the local agency issuing permits for the
development considers its responsibilities under this section and
makes a good faith effort to enhance the feasibility of the project
and to provide housing for lower income households and very low
income households.
(3) The governing body shall not permit a selection criteria to be
applied to certificate holders under Section 8 of the United States
Housing Act of 1937 (42 U.S.C. Sec. 1437f) that is more burdensome
than the criteria applied to all other prospective tenants.
(4) It is the intent of the Legislature that the governing body
finance projects that assist in meeting the urgent need for providing
shelter for lower income households, very low income households, and
persons and families of low or moderate income. To that end, the
quality of materials and the amenities provided should not be
excessive so as to hinder the prospect of achieving the stated goal.
(5) It is the intent of the Legislature that the governing body
finance projects that assist in meeting the urgent need for providing
housing for families. To that end, developments with three- and
four-bedroom units affordable to larger families shall have priority
over competing developments.
(b) As a condition of financing pursuant to this chapter, the
housing sponsor shall enter into a regulatory agreement with the city
or county providing that units reserved for occupancy by lower
income households remain available on a priority basis for occupancy
until the bonds are retired. As a condition of financing provided by
bonds issued on or after January 1, 1991, the housing sponsor shall
enter into a regulatory agreement with the city or county providing
that units reserved for occupancy by lower income households remain
available on a priority basis for occupancy for the qualified project
period. The regulatory agreement shall contain a provision making
the covenants and conditions of the agreement binding upon successors
in interest of the housing sponsor. The regulatory agreement shall
be recorded in the office of the county recorder of the county in
which the multifamily rental housing development is located. The
regulatory agreement shall be recorded in the grantor-grantee index
to the name of the property owner as grantor and to the name of the
city or county as grantee.
(c) The governing body shall ensure that units occupied by lower
income households are of comparable quality and offer a range of
sizes and number of bedrooms comparable to the units that are
available to other tenants.
(d) (1) The city or county shall give priority to processing
construction loans and mortgage loans or may take other steps such as
reducing loan fees or other local fees for multifamily rental
developments which incorporate innovative and energy-efficient
techniques that reduce development or operating costs and that have
the lowest feasible per unit cost, as determined by the city or
county, based on efficiency of design or the elimination of
improvements that are not required by applicable building standards.
(2) The city or county shall give equal priority to processing
construction loans and mortgage loans or may take other steps such as
reducing loan fees or other local fees on multifamily rental housing
developments that do any of the following:
(A) Utilize federal housing or development assistance.
(B) Utilize redevelopment funds or other local financial
assistance, including, but not limited to, contributions of land.
(C) Are sponsored by a nonprofit housing organization.
(D) Provide a significant number of housing units, as determined
by the city or county, as part of a coordinated jobs and housing plan
adopted by the city or county.
(E) Exceeds the ratios specified in subparagraph (A) or (B) of
paragraph (1) of subdivision (a) or restricts the occupancy for these
units for the longest period beyond the required minimum number of
years.
(e) (1) New and existing rental housing developments may be
syndicated after prior written approval of the governing body. The
governing body shall grant that approval only after the city or
county determines that the terms and conditions of the syndication
comply with this section.
(2) The terms and conditions of the syndication shall not reduce
or limit any of the requirements of this chapter or regulations
adopted or documents executed pursuant to this chapter. No
requirements of the city or county shall be subordinated to the
syndication agreement. A syndication shall not result in the
provision of fewer assisted units, or the reduction of any benefits
or services, than were in existence prior to the syndication
agreement.
(f) At the option of the city or county, the amendments to this
subdivision made by Chapter 907 of the Statutes of 1983 may be made
applicable to any multifamily rental housing development financed by
the issuance, on or after September 3, 1982, of bonds authorized by
this chapter.
(g) Following the expiration or termination of the qualified
project period, except in the event of foreclosure and redemption of
the bonds, deed in lieu of foreclosure, eminent domain, or action of
a federal agency preventing enforcement, units required to be
reserved for occupancy pursuant to subdivision (a) and financed or
refinanced with proceeds of bonds issued pursuant to this section on
or after January 1, 1991, or refinanced with the proceeds of bonds
issued pursuant to Section 53583 of the Government Code or any
charter city authority on or after January 1, 2007, shall remain
available to any eligible household occupying a reserved unit at the
date of expiration or termination, at a rent not greater than the
amount set forth by subdivision (a), until the earliest of any of the
following occur:
(1) The household's income exceeds 140 percent of the maximum
eligible income specified in subdivision (a).
(2) The household voluntarily moves or is evicted for "good cause."
"Good cause" for the purposes of this section, means the nonpayment
of rent or allegation of facts necessary to prove major, or repeated
minor, violations of material provisions of the occupancy agreement
which detrimentally affect the health and safety of other persons or
the structure, the fiscal integrity of the development, or the
purposes or special programs of the development.
(3) Thirty years after the date of the commencement of the
qualified project period.
(4) The sponsor pays the relocation assistance and benefits to
tenants as provided in subdivision (b) of Section 7264 of the
Government Code.
(5) The amendment to this subdivision made during the 2005-06
Regular Session of the Legislature is declaratory of existing law.
(h) During the three years prior to expiration of the qualified
project period, the sponsor shall continue to make available to
eligible households reserved units that have been vacated to the same
extent that nonreserved units are made available to noneligible
households.
(i) This section shall not be construed to require a city or
county to monitor the sponsor's compliance with the provisions of
subdivision (g).
(j) The requirements of subdivisions (g) to (i), inclusive, shall
be contained in a regulatory agreement required pursuant to
subdivision (b).
(k) Notwithstanding Section 1461 of the Civil Code, the provisions
of this section shall run with the land and may be enforced either
in law or in equity by any resident, local agency, entity, or by any
other person adversely affected by an owner's failure to comply with
this section.
52080.5. (a) (1) When refunding revenue bonds for multifamily
housing which were previously issued pursuant to Section 52080, the
city, county, or city and county shall ensure that rental units
required, by this chapter or by applicable federal law at the time
the original bonds were issued, to be reserved for occupancy for low-
and very low income households shall remain occupied by, or made
available to, those persons at least until the later of the
following:
(A) The date originally so required.
(B) As long as any bonds remain outstanding with respect to the
development.
(2) For bonds previously issued to finance a development where all
of the units, other than management units, are, at the time of the
refunding, subsidized by a housing assistance payments contract for
new construction and substantial rehabilitation pursuant to Section 8
of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f),
subparagraph (B) of paragraph (1) shall refer to a period of time
until the termination of the contract.
(b) The city, county, or city and county may determine that the
period set forth in paragraph (1) of subdivision (a) shall not apply
to the refunding of previously issued revenue bonds for which there
is a mandatory redemption or acceleration as a result of default
under the terms of the existing loan agreement or other security
documents.
52081. For purposes of this article, "housing sponsor" means a
person as defined in Section 52016.
52085. The primary purpose of this chapter is to meet the
multifamily rental housing needs of persons and families of low or
moderate income. The exercise of the powers granted by this division
shall be in all respects for the benefit of the people of this state
and for their health and welfare. Therefore, any bonds issued by a
city, county, or city and county pursuant to this chapter, their
transfer, and the income therefrom shall at all times be free from
taxation by the state or any political subdivision or other
instrumentality of the state, excepting inheritance and gift taxes.
52086. Two or more cities in the same county, or a county and one
or more cities within the county, or two or more counties, may enter
into an agreement to join or cooperate with one another in the
exercise jointly, or otherwise, of any or all of their powers for the
purpose of financing multifamily rental housing development pursuant
to this chapter.
52087. The same notice requirements specified in Section 65863.10
of the Government Code shall apply to multifamily rental housing that
receives financial assistance pursuant to this chapter.
52075. (a) Subject to the limitations of this chapter, any city or
county may, in addition to any other power conferred by this part,
issue revenue bonds as provided in Chapter 4 (commencing with Section
52030) for the purpose of financing the acquisition, construction,
rehabilitation, refinancing, or development of multifamily rental
housing and for the provision of capital improvements in connection
with and determined necessary to that multifamily rental housing.
(b) For this purpose, the term "home mortgage," as used in Chapter
4 (commencing with Section 52030), and as defined by Section 52013,
shall be further defined to include construction loans and mortgage
loans to housing sponsors to finance the acquisition, construction,
rehabilitation, refinancing, or development of multifamily rental
housing and for the provision of capital improvements in connection
with and determined necessary to the multifamily rental housing.
(c) To the extent possible, Chapter 4 (commencing with Section
52030) shall be construed in a manner that enables a city or county
to comply with the purpose and requirements of this chapter.
52075.1. As used in this chapter, "city or county" includes any
city and county.
52076. Subject to the limitations prescribed in this chapter, a
city or county may make, or undertake commitments to make,
construction loans and mortgage loans to housing sponsors to finance
the acquisition, construction, rehabilitation, refinancing, or
development of multifamily rental housing. For this purpose, the city
or county shall enter into regulatory contracts and other agreements
with housing sponsors receiving loans under this chapter to assure
all requirements of this chapter are satisfied.
52077. Subject to the limitations prescribed in this chapter, a
city or county may purchase, or undertake, directly or indirectly
through lending institutions, commitments to purchase, construction
loans and mortgage loans originated in accordance with a financing
agreement with the city or county to finance the acquisition,
construction, rehabilitation, refinancing, or development of
multifamily rental housing and may make loans to lending institutions
under terms and conditions which, in addition to other provisions
determined by the city or county, shall require the lending
institutions to use the net proceeds of the loans for the making,
directly or indirectly, of construction loans or mortgage loans to
finance the acquisition, construction, rehabilitation, refinancing,
or development of multifamily rental housing.
52078. For the purposes of this chapter, a city or county shall
have the power to issue its bonds to defray, in whole or in part, the
costs of studies and surveys, insurance premiums, underwriting fees,
legal, accounting, and marketing services incurred in connection
with the issuance and sale of bonds, including bond and mortgage
reserve accounts; trustee, custodian, and rating agency fees, and any
other costs which are reasonably related to the foregoing.
52079. A city or county may, in conjunction with the financing of
multifamily rental housing pursuant to this chapter, finance the
acquisition, construction, rehabilitation, refinancing, or
development of commercial property for lease, subject to all of the
following conditions:
(a) No more than 10 percent of the proceeds of any revenue bonds
issued pursuant to this chapter may be used to develop the commercial
property for lease.
(b) The commercial property developed will be located on the same
parcel or on a parcel adjacent to a multifamily rental housing
development.
(c) As a condition of the financing, any lease payments collected
in excess of payments necessary for debt service, operating expenses
and any required reserves related to that property, shall be used to
reduce rents on units reserved for occupancy by lower income
households and very low income households in a multifamily rental
housing development.
52080. (a) (1) A multifamily rental housing development financed,
or for which financing has been extended or committed pursuant to
this chapter from the proceeds of sale of each bond issue, shall at
all times during the qualified project period meet the requirement of
subparagraph (A) or (B), whichever is elected by the issuer at the
time of issuance of the issue for each development:
(A) Twenty percent or more of the residential units in the
development shall be occupied by individuals whose income is 50
percent or less of area median income.
(B) Forty percent or more of the residential units in the
development shall be occupied by individuals whose income is 60
percent or less of area median income.
As used in this section, "qualified project period," "income," and
"area median income" shall have the meanings specified in, and shall
be determined in accordance with the provisions of, subsection (d)
of Section 142 of the Internal Revenue Code of 1986, as amended, and
United States Treasury regulations and rulings promulgated pursuant
thereto.
With respect to a development for which the issuer has elected to
meet the requirement of subparagraph (A), the rental payments paid by
the occupants of the units meeting the requirement of subparagraph
(A) (excluding any supplemental rental assistance from the state, the
federal government, or any other public agency to those occupants or
on behalf of those units) shall not exceed 30 percent of 50 percent
of area median income. With respect to a development for which the
issuer has elected to meet the requirement of subparagraph (B), the
rental payments paid by the occupants of the units meeting the
requirement of subparagraph (B) (excluding any supplemental rental
assistance from the state, the federal government, or any other
public agency to those occupants or on behalf of those units) shall
not exceed 30 percent of 60 percent of area median income.
(2) The governing body shall ensure that the local agency issuing
permits for the acquisition, construction, rehabilitation,
refinancing, or development of the multifamily rental housing
development shall consider opportunities to contribute to the
economic feasibility of the units and to the provision of units for
very low income households through concessions and inducements
including, but not limited to, the following:
(A) Reductions in construction and design requirements.
(B) Reductions in setback and square footage requirements and the
ratio of vehicular parking spaces that would otherwise be required.
(C) Granting density bonuses.
(D) Providing expedited processing of permits.
(E) Modifying zoning code requirements to allow mixed use zoning.
(F) Reducing or eliminating fees and charges for filing and
processing applications, petitions, permits, planning services, water
and sewer connections, and other fees and charges.
(G) Reducing or eliminating requirements relating to monetary
exactions, dedications, reservations of land, or construction of
public facilities.
(H) Other financial incentives or concessions for the multifamily
rental housing development which result in identifiable cost
reductions, as determined by the governing body. The governing body
shall ensure that the local agency issuing permits for the
development considers its responsibilities under this section and
makes a good faith effort to enhance the feasibility of the project
and to provide housing for lower income households and very low
income households.
(3) The governing body shall not permit a selection criteria to be
applied to certificate holders under Section 8 of the United States
Housing Act of 1937 (42 U.S.C. Sec. 1437f) that is more burdensome
than the criteria applied to all other prospective tenants.
(4) It is the intent of the Legislature that the governing body
finance projects that assist in meeting the urgent need for providing
shelter for lower income households, very low income households, and
persons and families of low or moderate income. To that end, the
quality of materials and the amenities provided should not be
excessive so as to hinder the prospect of achieving the stated goal.
(5) It is the intent of the Legislature that the governing body
finance projects that assist in meeting the urgent need for providing
housing for families. To that end, developments with three- and
four-bedroom units affordable to larger families shall have priority
over competing developments.
(b) As a condition of financing pursuant to this chapter, the
housing sponsor shall enter into a regulatory agreement with the city
or county providing that units reserved for occupancy by lower
income households remain available on a priority basis for occupancy
until the bonds are retired. As a condition of financing provided by
bonds issued on or after January 1, 1991, the housing sponsor shall
enter into a regulatory agreement with the city or county providing
that units reserved for occupancy by lower income households remain
available on a priority basis for occupancy for the qualified project
period. The regulatory agreement shall contain a provision making
the covenants and conditions of the agreement binding upon successors
in interest of the housing sponsor. The regulatory agreement shall
be recorded in the office of the county recorder of the county in
which the multifamily rental housing development is located. The
regulatory agreement shall be recorded in the grantor-grantee index
to the name of the property owner as grantor and to the name of the
city or county as grantee.
(c) The governing body shall ensure that units occupied by lower
income households are of comparable quality and offer a range of
sizes and number of bedrooms comparable to the units that are
available to other tenants.
(d) (1) The city or county shall give priority to processing
construction loans and mortgage loans or may take other steps such as
reducing loan fees or other local fees for multifamily rental
developments which incorporate innovative and energy-efficient
techniques that reduce development or operating costs and that have
the lowest feasible per unit cost, as determined by the city or
county, based on efficiency of design or the elimination of
improvements that are not required by applicable building standards.
(2) The city or county shall give equal priority to processing
construction loans and mortgage loans or may take other steps such as
reducing loan fees or other local fees on multifamily rental housing
developments that do any of the following:
(A) Utilize federal housing or development assistance.
(B) Utilize redevelopment funds or other local financial
assistance, including, but not limited to, contributions of land.
(C) Are sponsored by a nonprofit housing organization.
(D) Provide a significant number of housing units, as determined
by the city or county, as part of a coordinated jobs and housing plan
adopted by the city or county.
(E) Exceeds the ratios specified in subparagraph (A) or (B) of
paragraph (1) of subdivision (a) or restricts the occupancy for these
units for the longest period beyond the required minimum number of
years.
(e) (1) New and existing rental housing developments may be
syndicated after prior written approval of the governing body. The
governing body shall grant that approval only after the city or
county determines that the terms and conditions of the syndication
comply with this section.
(2) The terms and conditions of the syndication shall not reduce
or limit any of the requirements of this chapter or regulations
adopted or documents executed pursuant to this chapter. No
requirements of the city or county shall be subordinated to the
syndication agreement. A syndication shall not result in the
provision of fewer assisted units, or the reduction of any benefits
or services, than were in existence prior to the syndication
agreement.
(f) At the option of the city or county, the amendments to this
subdivision made by Chapter 907 of the Statutes of 1983 may be made
applicable to any multifamily rental housing development financed by
the issuance, on or after September 3, 1982, of bonds authorized by
this chapter.
(g) Following the expiration or termination of the qualified
project period, except in the event of foreclosure and redemption of
the bonds, deed in lieu of foreclosure, eminent domain, or action of
a federal agency preventing enforcement, units required to be
reserved for occupancy pursuant to subdivision (a) and financed or
refinanced with proceeds of bonds issued pursuant to this section on
or after January 1, 1991, or refinanced with the proceeds of bonds
issued pursuant to Section 53583 of the Government Code or any
charter city authority on or after January 1, 2007, shall remain
available to any eligible household occupying a reserved unit at the
date of expiration or termination, at a rent not greater than the
amount set forth by subdivision (a), until the earliest of any of the
following occur:
(1) The household's income exceeds 140 percent of the maximum
eligible income specified in subdivision (a).
(2) The household voluntarily moves or is evicted for "good cause."
"Good cause" for the purposes of this section, means the nonpayment
of rent or allegation of facts necessary to prove major, or repeated
minor, violations of material provisions of the occupancy agreement
which detrimentally affect the health and safety of other persons or
the structure, the fiscal integrity of the development, or the
purposes or special programs of the development.
(3) Thirty years after the date of the commencement of the
qualified project period.
(4) The sponsor pays the relocation assistance and benefits to
tenants as provided in subdivision (b) of Section 7264 of the
Government Code.
(5) The amendment to this subdivision made during the 2005-06
Regular Session of the Legislature is declaratory of existing law.
(h) During the three years prior to expiration of the qualified
project period, the sponsor shall continue to make available to
eligible households reserved units that have been vacated to the same
extent that nonreserved units are made available to noneligible
households.
(i) This section shall not be construed to require a city or
county to monitor the sponsor's compliance with the provisions of
subdivision (g).
(j) The requirements of subdivisions (g) to (i), inclusive, shall
be contained in a regulatory agreement required pursuant to
subdivision (b).
(k) Notwithstanding Section 1461 of the Civil Code, the provisions
of this section shall run with the land and may be enforced either
in law or in equity by any resident, local agency, entity, or by any
other person adversely affected by an owner's failure to comply with
this section.
52080.5. (a) (1) When refunding revenue bonds for multifamily
housing which were previously issued pursuant to Section 52080, the
city, county, or city and county shall ensure that rental units
required, by this chapter or by applicable federal law at the time
the original bonds were issued, to be reserved for occupancy for low-
and very low income households shall remain occupied by, or made
available to, those persons at least until the later of the
following:
(A) The date originally so required.
(B) As long as any bonds remain outstanding with respect to the
development.
(2) For bonds previously issued to finance a development where all
of the units, other than management units, are, at the time of the
refunding, subsidized by a housing assistance payments contract for
new construction and substantial rehabilitation pursuant to Section 8
of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f),
subparagraph (B) of paragraph (1) shall refer to a period of time
until the termination of the contract.
(b) The city, county, or city and county may determine that the
period set forth in paragraph (1) of subdivision (a) shall not apply
to the refunding of previously issued revenue bonds for which there
is a mandatory redemption or acceleration as a result of default
under the terms of the existing loan agreement or other security
documents.
52081. For purposes of this article, "housing sponsor" means a
person as defined in Section 52016.
52085. The primary purpose of this chapter is to meet the
multifamily rental housing needs of persons and families of low or
moderate income. The exercise of the powers granted by this division
shall be in all respects for the benefit of the people of this state
and for their health and welfare. Therefore, any bonds issued by a
city, county, or city and county pursuant to this chapter, their
transfer, and the income therefrom shall at all times be free from
taxation by the state or any political subdivision or other
instrumentality of the state, excepting inheritance and gift taxes.
52086. Two or more cities in the same county, or a county and one
or more cities within the county, or two or more counties, may enter
into an agreement to join or cooperate with one another in the
exercise jointly, or otherwise, of any or all of their powers for the
purpose of financing multifamily rental housing development pursuant
to this chapter.
52087. The same notice requirements specified in Section 65863.10
of the Government Code shall apply to multifamily rental housing that
receives financial assistance pursuant to this chapter.
52075. (a) Subject to the limitations of this chapter, any city or
county may, in addition to any other power conferred by this part,
issue revenue bonds as provided in Chapter 4 (commencing with Section
52030) for the purpose of financing the acquisition, construction,
rehabilitation, refinancing, or development of multifamily rental
housing and for the provision of capital improvements in connection
with and determined necessary to that multifamily rental housing.
(b) For this purpose, the term "home mortgage," as used in Chapter
4 (commencing with Section 52030), and as defined by Section 52013,
shall be further defined to include construction loans and mortgage
loans to housing sponsors to finance the acquisition, construction,
rehabilitation, refinancing, or development of multifamily rental
housing and for the provision of capital improvements in connection
with and determined necessary to the multifamily rental housing.
(c) To the extent possible, Chapter 4 (commencing with Section
52030) shall be construed in a manner that enables a city or county
to comply with the purpose and requirements of this chapter.
52075.1. As used in this chapter, "city or county" includes any
city and county.
52076. Subject to the limitations prescribed in this chapter, a
city or county may make, or undertake commitments to make,
construction loans and mortgage loans to housing sponsors to finance
the acquisition, construction, rehabilitation, refinancing, or
development of multifamily rental housing. For this purpose, the city
or county shall enter into regulatory contracts and other agreements
with housing sponsors receiving loans under this chapter to assure
all requirements of this chapter are satisfied.
52077. Subject to the limitations prescribed in this chapter, a
city or county may purchase, or undertake, directly or indirectly
through lending institutions, commitments to purchase, construction
loans and mortgage loans originated in accordance with a financing
agreement with the city or county to finance the acquisition,
construction, rehabilitation, refinancing, or development of
multifamily rental housing and may make loans to lending institutions
under terms and conditions which, in addition to other provisions
determined by the city or county, shall require the lending
institutions to use the net proceeds of the loans for the making,
directly or indirectly, of construction loans or mortgage loans to
finance the acquisition, construction, rehabilitation, refinancing,
or development of multifamily rental housing.
52078. For the purposes of this chapter, a city or county shall
have the power to issue its bonds to defray, in whole or in part, the
costs of studies and surveys, insurance premiums, underwriting fees,
legal, accounting, and marketing services incurred in connection
with the issuance and sale of bonds, including bond and mortgage
reserve accounts; trustee, custodian, and rating agency fees, and any
other costs which are reasonably related to the foregoing.
52079. A city or county may, in conjunction with the financing of
multifamily rental housing pursuant to this chapter, finance the
acquisition, construction, rehabilitation, refinancing, or
development of commercial property for lease, subject to all of the
following conditions:
(a) No more than 10 percent of the proceeds of any revenue bonds
issued pursuant to this chapter may be used to develop the commercial
property for lease.
(b) The commercial property developed will be located on the same
parcel or on a parcel adjacent to a multifamily rental housing
development.
(c) As a condition of the financing, any lease payments collected
in excess of payments necessary for debt service, operating expenses
and any required reserves related to that property, shall be used to
reduce rents on units reserved for occupancy by lower income
households and very low income households in a multifamily rental
housing development.
52080. (a) (1) A multifamily rental housing development financed,
or for which financing has been extended or committed pursuant to
this chapter from the proceeds of sale of each bond issue, shall at
all times during the qualified project period meet the requirement of
subparagraph (A) or (B), whichever is elected by the issuer at the
time of issuance of the issue for each development:
(A) Twenty percent or more of the residential units in the
development shall be occupied by individuals whose income is 50
percent or less of area median income.
(B) Forty percent or more of the residential units in the
development shall be occupied by individuals whose income is 60
percent or less of area median income.
As used in this section, "qualified project period," "income," and
"area median income" shall have the meanings specified in, and shall
be determined in accordance with the provisions of, subsection (d)
of Section 142 of the Internal Revenue Code of 1986, as amended, and
United States Treasury regulations and rulings promulgated pursuant
thereto.
With respect to a development for which the issuer has elected to
meet the requirement of subparagraph (A), the rental payments paid by
the occupants of the units meeting the requirement of subparagraph
(A) (excluding any supplemental rental assistance from the state, the
federal government, or any other public agency to those occupants or
on behalf of those units) shall not exceed 30 percent of 50 percent
of area median income. With respect to a development for which the
issuer has elected to meet the requirement of subparagraph (B), the
rental payments paid by the occupants of the units meeting the
requirement of subparagraph (B) (excluding any supplemental rental
assistance from the state, the federal government, or any other
public agency to those occupants or on behalf of those units) shall
not exceed 30 percent of 60 percent of area median income.
(2) The governing body shall ensure that the local agency issuing
permits for the acquisition, construction, rehabilitation,
refinancing, or development of the multifamily rental housing
development shall consider opportunities to contribute to the
economic feasibility of the units and to the provision of units for
very low income households through concessions and inducements
including, but not limited to, the following:
(A) Reductions in construction and design requirements.
(B) Reductions in setback and square footage requirements and the
ratio of vehicular parking spaces that would otherwise be required.
(C) Granting density bonuses.
(D) Providing expedited processing of permits.
(E) Modifying zoning code requirements to allow mixed use zoning.
(F) Reducing or eliminating fees and charges for filing and
processing applications, petitions, permits, planning services, water
and sewer connections, and other fees and charges.
(G) Reducing or eliminating requirements relating to monetary
exactions, dedications, reservations of land, or construction of
public facilities.
(H) Other financial incentives or concessions for the multifamily
rental housing development which result in identifiable cost
reductions, as determined by the governing body. The governing body
shall ensure that the local agency issuing permits for the
development considers its responsibilities under this section and
makes a good faith effort to enhance the feasibility of the project
and to provide housing for lower income households and very low
income households.
(3) The governing body shall not permit a selection criteria to be
applied to certificate holders under Section 8 of the United States
Housing Act of 1937 (42 U.S.C. Sec. 1437f) that is more burdensome
than the criteria applied to all other prospective tenants.
(4) It is the intent of the Legislature that the governing body
finance projects that assist in meeting the urgent need for providing
shelter for lower income households, very low income households, and
persons and families of low or moderate income. To that end, the
quality of materials and the amenities provided should not be
excessive so as to hinder the prospect of achieving the stated goal.
(5) It is the intent of the Legislature that the governing body
finance projects that assist in meeting the urgent need for providing
housing for families. To that end, developments with three- and
four-bedroom units affordable to larger families shall have priority
over competing developments.
(b) As a condition of financing pursuant to this chapter, the
housing sponsor shall enter into a regulatory agreement with the city
or county providing that units reserved for occupancy by lower
income households remain available on a priority basis for occupancy
until the bonds are retired. As a condition of financing provided by
bonds issued on or after January 1, 1991, the housing sponsor shall
enter into a regulatory agreement with the city or county providing
that units reserved for occupancy by lower income households remain
available on a priority basis for occupancy for the qualified project
period. The regulatory agreement shall contain a provision making
the covenants and conditions of the agreement binding upon successors
in interest of the housing sponsor. The regulatory agreement shall
be recorded in the office of the county recorder of the county in
which the multifamily rental housing development is located. The
regulatory agreement shall be recorded in the grantor-grantee index
to the name of the property owner as grantor and to the name of the
city or county as grantee.
(c) The governing body shall ensure that units occupied by lower
income households are of comparable quality and offer a range of
sizes and number of bedrooms comparable to the units that are
available to other tenants.
(d) (1) The city or county shall give priority to processing
construction loans and mortgage loans or may take other steps such as
reducing loan fees or other local fees for multifamily rental
developments which incorporate innovative and energy-efficient
techniques that reduce development or operating costs and that have
the lowest feasible per unit cost, as determined by the city or
county, based on efficiency of design or the elimination of
improvements that are not required by applicable building standards.
(2) The city or county shall give equal priority to processing
construction loans and mortgage loans or may take other steps such as
reducing loan fees or other local fees on multifamily rental housing
developments that do any of the following:
(A) Utilize federal housing or development assistance.
(B) Utilize redevelopment funds or other local financial
assistance, including, but not limited to, contributions of land.
(C) Are sponsored by a nonprofit housing organization.
(D) Provide a significant number of housing units, as determined
by the city or county, as part of a coordinated jobs and housing plan
adopted by the city or county.
(E) Exceeds the ratios specified in subparagraph (A) or (B) of
paragraph (1) of subdivision (a) or restricts the occupancy for these
units for the longest period beyond the required minimum number of
years.
(e) (1) New and existing rental housing developments may be
syndicated after prior written approval of the governing body. The
governing body shall grant that approval only after the city or
county determines that the terms and conditions of the syndication
comply with this section.
(2) The terms and conditions of the syndication shall not reduce
or limit any of the requirements of this chapter or regulations
adopted or documents executed pursuant to this chapter. No
requirements of the city or county shall be subordinated to the
syndication agreement. A syndication shall not result in the
provision of fewer assisted units, or the reduction of any benefits
or services, than were in existence prior to the syndication
agreement.
(f) At the option of the city or county, the amendments to this
subdivision made by Chapter 907 of the Statutes of 1983 may be made
applicable to any multifamily rental housing development financed by
the issuance, on or after September 3, 1982, of bonds authorized by
this chapter.
(g) Following the expiration or termination of the qualified
project period, except in the event of foreclosure and redemption of
the bonds, deed in lieu of foreclosure, eminent domain, or action of
a federal agency preventing enforcement, units required to be
reserved for occupancy pursuant to subdivision (a) and financed or
refinanced with proceeds of bonds issued pursuant to this section on
or after January 1, 1991, or refinanced with the proceeds of bonds
issued pursuant to Section 53583 of the Government Code or any
charter city authority on or after January 1, 2007, shall remain
available to any eligible household occupying a reserved unit at the
date of expiration or termination, at a rent not greater than the
amount set forth by subdivision (a), until the earliest of any of the
following occur:
(1) The household's income exceeds 140 percent of the maximum
eligible income specified in subdivision (a).
(2) The household voluntarily moves or is evicted for "good cause."
"Good cause" for the purposes of this section, means the nonpayment
of rent or allegation of facts necessary to prove major, or repeated
minor, violations of material provisions of the occupancy agreement
which detrimentally affect the health and safety of other persons or
the structure, the fiscal integrity of the development, or the
purposes or special programs of the development.
(3) Thirty years after the date of the commencement of the
qualified project period.
(4) The sponsor pays the relocation assistance and benefits to
tenants as provided in subdivision (b) of Section 7264 of the
Government Code.
(5) The amendment to this subdivision made during the 2005-06
Regular Session of the Legislature is declaratory of existing law.
(h) During the three years prior to expiration of the qualified
project period, the sponsor shall continue to make available to
eligible households reserved units that have been vacated to the same
extent that nonreserved units are made available to noneligible
households.
(i) This section shall not be construed to require a city or
county to monitor the sponsor's compliance with the provisions of
subdivision (g).
(j) The requirements of subdivisions (g) to (i), inclusive, shall
be contained in a regulatory agreement required pursuant to
subdivision (b).
(k) Notwithstanding Section 1461 of the Civil Code, the provisions
of this section shall run with the land and may be enforced either
in law or in equity by any resident, local agency, entity, or by any
other person adversely affected by an owner's failure to comply with
this section.
52080.5. (a) (1) When refunding revenue bonds for multifamily
housing which were previously issued pursuant to Section 52080, the
city, county, or city and county shall ensure that rental units
required, by this chapter or by applicable federal law at the time
the original bonds were issued, to be reserved for occupancy for low-
and very low income households shall remain occupied by, or made
available to, those persons at least until the later of the
following:
(A) The date originally so required.
(B) As long as any bonds remain outstanding with respect to the
development.
(2) For bonds previously issued to finance a development where all
of the units, other than management units, are, at the time of the
refunding, subsidized by a housing assistance payments contract for
new construction and substantial rehabilitation pursuant to Section 8
of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f),
subparagraph (B) of paragraph (1) shall refer to a period of time
until the termination of the contract.
(b) The city, county, or city and county may determine that the
period set forth in paragraph (1) of subdivision (a) shall not apply
to the refunding of previously issued revenue bonds for which there
is a mandatory redemption or acceleration as a result of default
under the terms of the existing loan agreement or other security
documents.
52081. For purposes of this article, "housing sponsor" means a
person as defined in Section 52016.
52085. The primary purpose of this chapter is to meet the
multifamily rental housing needs of persons and families of low or
moderate income. The exercise of the powers granted by this division
shall be in all respects for the benefit of the people of this state
and for their health and welfare. Therefore, any bonds issued by a
city, county, or city and county pursuant to this chapter, their
transfer, and the income therefrom shall at all times be free from
taxation by the state or any political subdivision or other
instrumentality of the state, excepting inheritance and gift taxes.
52086. Two or more cities in the same county, or a county and one
or more cities within the county, or two or more counties, may enter
into an agreement to join or cooperate with one another in the
exercise jointly, or otherwise, of any or all of their powers for the
purpose of financing multifamily rental housing development pursuant
to this chapter.
52087. The same notice requirements specified in Section 65863.10
of the Government Code shall apply to multifamily rental housing that
receives financial assistance pursuant to this chapter.
