33760. (a) Within its territorial jurisdiction, an agency may
determine the location and character of any residential construction
to be financed under this chapter and may make mortgage or
construction loans to participating parties through qualified
mortgage lenders, or purchase mortgage or construction loans without
premium made by qualified mortgage lenders to participating parties,
or make loans to qualified mortgage lenders, for financing any of the
following:
(1) Residential construction within a redevelopment project area.
(2) Residential construction of residences in which the dwelling
units are committed, for the period during which the loan is
outstanding, for occupancy by persons or families who are eligible
for financial assistance specifically provided by a governmental
agency for the benefit of occupants of the residence.
(3) To the extent required by Section 103A of Title 26 of the
United States Code, as amended, to maintain the exemption from
federal income taxes of interest on bonds or notes issued by the
agency under this chapter, residences located within targeted areas,
as defined by Section 103(b)(12)(A) of Title 26 of the United States
Code. Any loans to qualified mortgage lenders shall be made under
terms and conditions which, in addition to other provisions as
determined by the agency, shall require the qualified mortgage lender
to use all of the net proceeds thereof, directly or indirectly, for
the making of mortgage loans or construction loans in an appropriate
principal amount equal to the amount of the net proceeds. Those
mortgage loans may, but need not, be insured.
(b) (1) Not less than 20 percent (15 percent in target areas) of
the units in any residential project financed pursuant to this
section on or after January 1, 1986, shall be occupied by, or made
available to, individuals of low and moderate income, as defined by
Section 103(b)(12)(C) of Title 26 of the United States Code. If the
sponsor elects to establish a base rent for units reserved for lower
income households, the base rents shall be adjusted for household
size, as determined pursuant to Section 8 of the United States
Housing Act of 1937 (42 U.S.C. Sec. 1437f), or its successor, for a
family of one person in the case of a studio unit, two persons in the
case of a one-bedroom unit, three persons in the case of a
two-bedroom unit, four persons in the case of a three-bedroom unit,
and five persons in the case of a four-bedroom unit.
(2) Not less than one-half of the units described in paragraph (1)
shall be occupied by, or made available to, very low income
households, as defined by Section 50105. The rental payments for
those units paid by the persons occupying the units (excluding any
supplemental rental assistance from the state, the federal
government, or any other public agency to those persons or on behalf
of those units) shall not exceed the amount derived by multiplying 30
percent times 50 percent of the median adjusted gross income for the
area, adjusted for family size, as determined pursuant to Section 8
of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), or
its successor, for a family of one person in the case of a studio
unit, two persons in the case of a one-bedroom unit, three persons in
the case of a two-bedroom unit, four persons in the case of a
three-bedroom unit, and five persons in the case of a four-bedroom
unit.
(c) Units required to be reserved for occupancy as provided in
subdivision (b) and financed with the proceeds of bonds issued on or
after January 1, 1986, shall remain occupied by, or made available
to, those persons until the bonds are retired.
(d) (1) When issuing tax-exempt bonds for purposes of this
section, the regulatory agreement entered into by the agency shall
require that 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 for low- or very low income households and
financed or refinanced with proceeds of bonds issued pursuant to this
section on or after January 1, 2006, 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 the regulatory agreement prior to the date or
expiration or termination, until the earliest of any of the following
occur:
(A) The household's income exceeds 140 percent of the maximum
eligible income specified in the regulatory agreement for reserved
units.
(B) 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.
(C) Thirty years after the date of the commencement of the
qualified project period.
(D) The sponsor pays the relocation assistance and benefits to
tenants as provided in subdivision (b) of Section 7264 of the
Government Code.
(2) As used in this subdivision, "qualified project period" shall
have the meaning 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.
(3) The amendment to this subdivision made during the 2005-06
Regular Session of the Legislature that is set forth in paragraph (1)
is declaratory of existing law.
(e) This section shall become operative January 1, 1996.
33760.5. (a) Notwithstanding the requirements of Section 33760,
agencies which operate within a jurisdiction, the population of which
is in excess of 600,000 persons, as determined by the Department of
Finance, may additionally provide financing for residential
construction of multifamily rental units outside of a redevelopment
project area as set forth in and subject to the limitations of this
section.
(b) Within its territorial jurisdiction, an agency may determine
the location and character of any residential construction to be
financed under this chapter and may make mortgage or construction
loans to participating parties through qualified mortgage lenders, or
purchase mortgage or construction loans without premium made by
qualified mortgage lenders to participating parties for financing
residential construction of multifamily rental units.
(c) Not less than 20 percent (15 percent in target areas) of the
units in each project financed pursuant to this section shall be
occupied by, or made available to, individuals of low and moderate
income, as defined in Section 103(b)(12)(C) of Title 26 of the United
States Code. If the sponsor elects to establish a base rent for
units reserved for lower income households, the base rents shall be
adjusted for household size, as determined pursuant to Section 8 of
the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), or its
successor, for a family of one person in the case of a studio unit,
two persons in the case of a one-bedroom unit, three persons in the
case of a two-bedroom unit, four persons in the case of a
three-bedroom unit, and five persons in the case of a four-bedroom
unit.
(d) Not less than one-half of the low- and moderate-income units
described in subdivision (c) shall be occupied by, or made available
to, very low income households, as defined in Section 50105. The
rental payments for those units paid by the persons occupying the
units (excluding any supplemental rental assistance from the state,
the federal government, or any other public agency to those persons
or on behalf of those units) shall not exceed the amount derived by
multiplying 30 percent times 50 percent of the median adjusted gross
income for the area, adjusted for family size, as determined pursuant
to Section 8 of the United States Housing Act of 1937, (42 U.S.C.
Sec. 1437f), or its successor, for a family of one person in the case
of a studio unit, two persons in the case of a one-bedroom unit,
three persons in the case of a two-bedroom unit, four persons in the
case of a three-bedroom unit, and five persons in the case of a
four-bedroom unit.
(e) No agency may issue any bonds on or after January 1, 1986,
until the information required to be filed pursuant to Section 8855.5
of the Government Code has been filed with the California Debt
Advisory Commission and the Treasurer certifies to the Legislature
that the agency has filed that information.
(f) Units required to be reserved for occupancy by subdivisions
(c) and (d) and financed with the proceeds of bonds issued on or
after January 1, 1986, shall remain occupied by, or made available
to, those persons until the bonds are retired.
(g) This section shall become operative January 1, 1996.
33760.7. The same notice requirements as specified in Section
65863.10 of the Government Code shall apply to multifamily rental
housing that receives financial assistance pursuant to Section 33760
or 33760.5.
33761. An agency may issue revenue bonds for the purpose of
financing residential construction authorized by this chapter and for
the purpose of funding or refunding previously issued revenue bonds.
An agency may also issue revenue bonds for the purpose of refunding
bonds previously issued by another political subdivision of the state
for the purpose of financing residential construction authorized by
this chapter for projects within the jurisdiction of the agency. For
the purposes of this section, "political subdivision" means a city, a
housing authority, or a nonprofit corporation acting on behalf of a
city or a housing authority, all of which operate within the
jurisdiction of the agency. Any savings that accrue to the agency
from refunding bonds previously issued by another political
subdivision shall be limited to the expenditures authorized in
subdivision (e) of Section 33334.2.
33761.5. (a) (1) When refunding revenue bonds for multifamily
housing which were previously issued pursuant to this chapter, the
agency 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 mean a period of time until
the termination of the contract.
(b) The agency 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.
33762. An agency may establish limitations respecting fees,
charges, and interest rates to be used by qualified mortgage lenders
for financing residential construction pursuant to this chapter and
may from time to time revise such fees, charges, and interest rates
to reflect changes in interest rates on the agency's revenue bonds,
losses due to defaults, changes in loan-servicing charges, or other
expenses related to administration of the residential construction
financing program. Any change in interest rate shall conform to the
provisions of Section 1916.5 of the Civil Code, except that paragraph
(3) of subdivision (a) of Section 1916.5 shall not apply and that
the "prescribed standard" specified in Section 1916.5 shall be
periodically determined by the redevelopment agency after hearing
preceded by public notice to affected parties, and shall reflect
changes in interest rates on the agency's bonds, and bona fide
changes in loan servicing charges related to the administration of a
program under the provisions of this chapter. An agency may purchase
mortgage or construction loans made by a qualified mortgage lender
without premium or may itself pay such fees and charges incurred in
lending money for the purpose of residential construction and may
collect and disburse, or may contract to pay any person, partnership,
association, corporation, or public agency for, collection and
disbursal of payments of principal, interest, taxes, insurance, and
mortgage insurance. An agency may hold deeds of trust or mortgages,
including mortgages insured under Title II of the National Housing
Act, as security for financing residential construction and may
pledge or assign the same as security for repayment of revenue bonds.
Such deeds of trust or mortgages may be assigned to, and held on
behalf of the agency by, any bank or trust company appointed to act
as trustee or fiscal agent by the agency in any indenture or
resolution providing for issuance of bonds pursuant to this chapter.
An agency may establish the terms and conditions of financing, which
shall be consistent with the provisions of any applicable federal or
state law under which the financing is to be insured.
33763. (a) No loan shall be made for financing except through a
qualified mortgage lender.
(b) All mortgage loans made for financing pursuant to this chapter
from the proceeds of bonds issued on or before October 1, 1983,
shall be insured or guaranteed, in whole or in part, by any
instrumentality of the United States, or the State of California, or
by any person licensed to insure mortgages in this state. Mortgage
loans made for financing pursuant to this chapter from the proceeds
of bonds issued after October 1, 1983, may be insured or guaranteed,
in whole or in part by those entities or persons. However, nothing in
this subdivision shall impair any contractual rights which may have
vested in bondholders or other persons prior to October 1, 1983.
33763.5. All loans made by a redevelopment agency shall be made
according to a regulation that contains standards, qualifications,
and criteria for the making and approval of loans and that has been
adopted by the redevelopment agency at a public meeting.
33764. An agency may employ engineering, architectural, accounting,
collection, or other services, including services in connection with
the servicing of loans made to participating parties, as may be
necessary in the judgment of the agency for the successful financing
of residential construction pursuant to this chapter. An agency may
pay the reasonable costs of consulting engineers, architects,
accountants, and other experts, if, in the judgment of the agency,
such services are necessary to the successful financing of any
residential construction and if the agency is not able to provide
such services. An agency may employ and fix the compensation of
financing consultants, bond counsel, and other advisers as may be
necessary in its judgment to provide for the issuance and sale of any
revenue bonds of the agency.
33765. In addition to all other powers specifically granted by this
chapter, an agency may do all things necessary or convenient to
carry out the purposes of this chapter.
33766. Revenues and the proceeds of mortgage insurance or guarantee
claims, if any, shall be the sole source of funds pledged by an
agency for repayment of its revenue bonds. Revenue bonds issued under
this chapter do not constitute a debt or liability of the agency or
the state for which the faith and credit of the agency or the state
is pledged but shall be payable solely from revenues and the proceeds
of mortgage insurance or guarantee claims, if any.
33767. All residential construction shall be undertaken or
completed subject to the rules and regulations of the agency. An
agency may acquire by deed, purchase, lease, contract, gift, devise,
or otherwise any real or personal property, structures, rights,
rights-of-way, franchises, easements, and other interests in lands
necessary or convenient for the financing of residential
construction, upon such terms and conditions as it deems advisable,
and may lease, sell, or dispose of the same in such manner as may be
necessary or desirable to carry out the objectives and purposes of
this chapter.
33768. The provisions of Chapter 16 (commencing with Section 7260)
of Division 7 of Title I of the Government Code shall not apply to
owners or tenants of any property acquired by foreclosure, trust
deed, sale or other proceeding resulting from default on a loan made
by the agency.
33769. (a) An agency shall require that any residence that is
constructed with financing obtained under this chapter shall be open,
upon sale or rental of any portion thereof, to all regardless of any
basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926,
12926.1, subdivision (m) and paragraph (1) of subdivision (p) of
Section 12955, and Section 12955.2 of the Government Code. The agency
shall also require that contractors and subcontractors engaged in
residential construction financed under this chapter shall provide
equal opportunity for employment, without discrimination as to any
basis listed in subdivision (a) of Section 12940 of the Government
Code, as those bases are defined in Sections 12926 and 12926.1 of the
Government Code, and except as otherwise provided in Section 12940
of the Government Code. All contracts and subcontracts for
residential construction financed under this chapter shall be let
without discrimination as to any basis listed in subdivision (a) of
Section 12940 of the Government Code, as those bases are defined in
Sections 12926 and 12926.1 of the Government Code and except as
otherwise provided in Section 12940 of the Government Code. It shall
be the policy of an agency financing residential construction under
this chapter to encourage participation by minority contractors, and
the agency shall adopt rules and regulations to implement this
section.
(b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil
Code and subdivisions (n), (o), and (p) of Section 12955 of the
Government Code shall apply to subdivision (a).
33760. (a) Within its territorial jurisdiction, an agency may
determine the location and character of any residential construction
to be financed under this chapter and may make mortgage or
construction loans to participating parties through qualified
mortgage lenders, or purchase mortgage or construction loans without
premium made by qualified mortgage lenders to participating parties,
or make loans to qualified mortgage lenders, for financing any of the
following:
(1) Residential construction within a redevelopment project area.
(2) Residential construction of residences in which the dwelling
units are committed, for the period during which the loan is
outstanding, for occupancy by persons or families who are eligible
for financial assistance specifically provided by a governmental
agency for the benefit of occupants of the residence.
(3) To the extent required by Section 103A of Title 26 of the
United States Code, as amended, to maintain the exemption from
federal income taxes of interest on bonds or notes issued by the
agency under this chapter, residences located within targeted areas,
as defined by Section 103(b)(12)(A) of Title 26 of the United States
Code. Any loans to qualified mortgage lenders shall be made under
terms and conditions which, in addition to other provisions as
determined by the agency, shall require the qualified mortgage lender
to use all of the net proceeds thereof, directly or indirectly, for
the making of mortgage loans or construction loans in an appropriate
principal amount equal to the amount of the net proceeds. Those
mortgage loans may, but need not, be insured.
(b) (1) Not less than 20 percent (15 percent in target areas) of
the units in any residential project financed pursuant to this
section on or after January 1, 1986, shall be occupied by, or made
available to, individuals of low and moderate income, as defined by
Section 103(b)(12)(C) of Title 26 of the United States Code. If the
sponsor elects to establish a base rent for units reserved for lower
income households, the base rents shall be adjusted for household
size, as determined pursuant to Section 8 of the United States
Housing Act of 1937 (42 U.S.C. Sec. 1437f), or its successor, for a
family of one person in the case of a studio unit, two persons in the
case of a one-bedroom unit, three persons in the case of a
two-bedroom unit, four persons in the case of a three-bedroom unit,
and five persons in the case of a four-bedroom unit.
(2) Not less than one-half of the units described in paragraph (1)
shall be occupied by, or made available to, very low income
households, as defined by Section 50105. The rental payments for
those units paid by the persons occupying the units (excluding any
supplemental rental assistance from the state, the federal
government, or any other public agency to those persons or on behalf
of those units) shall not exceed the amount derived by multiplying 30
percent times 50 percent of the median adjusted gross income for the
area, adjusted for family size, as determined pursuant to Section 8
of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), or
its successor, for a family of one person in the case of a studio
unit, two persons in the case of a one-bedroom unit, three persons in
the case of a two-bedroom unit, four persons in the case of a
three-bedroom unit, and five persons in the case of a four-bedroom
unit.
(c) Units required to be reserved for occupancy as provided in
subdivision (b) and financed with the proceeds of bonds issued on or
after January 1, 1986, shall remain occupied by, or made available
to, those persons until the bonds are retired.
(d) (1) When issuing tax-exempt bonds for purposes of this
section, the regulatory agreement entered into by the agency shall
require that 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 for low- or very low income households and
financed or refinanced with proceeds of bonds issued pursuant to this
section on or after January 1, 2006, 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 the regulatory agreement prior to the date or
expiration or termination, until the earliest of any of the following
occur:
(A) The household's income exceeds 140 percent of the maximum
eligible income specified in the regulatory agreement for reserved
units.
(B) 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.
(C) Thirty years after the date of the commencement of the
qualified project period.
(D) The sponsor pays the relocation assistance and benefits to
tenants as provided in subdivision (b) of Section 7264 of the
Government Code.
(2) As used in this subdivision, "qualified project period" shall
have the meaning 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.
(3) The amendment to this subdivision made during the 2005-06
Regular Session of the Legislature that is set forth in paragraph (1)
is declaratory of existing law.
(e) This section shall become operative January 1, 1996.
33760.5. (a) Notwithstanding the requirements of Section 33760,
agencies which operate within a jurisdiction, the population of which
is in excess of 600,000 persons, as determined by the Department of
Finance, may additionally provide financing for residential
construction of multifamily rental units outside of a redevelopment
project area as set forth in and subject to the limitations of this
section.
(b) Within its territorial jurisdiction, an agency may determine
the location and character of any residential construction to be
financed under this chapter and may make mortgage or construction
loans to participating parties through qualified mortgage lenders, or
purchase mortgage or construction loans without premium made by
qualified mortgage lenders to participating parties for financing
residential construction of multifamily rental units.
(c) Not less than 20 percent (15 percent in target areas) of the
units in each project financed pursuant to this section shall be
occupied by, or made available to, individuals of low and moderate
income, as defined in Section 103(b)(12)(C) of Title 26 of the United
States Code. If the sponsor elects to establish a base rent for
units reserved for lower income households, the base rents shall be
adjusted for household size, as determined pursuant to Section 8 of
the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), or its
successor, for a family of one person in the case of a studio unit,
two persons in the case of a one-bedroom unit, three persons in the
case of a two-bedroom unit, four persons in the case of a
three-bedroom unit, and five persons in the case of a four-bedroom
unit.
(d) Not less than one-half of the low- and moderate-income units
described in subdivision (c) shall be occupied by, or made available
to, very low income households, as defined in Section 50105. The
rental payments for those units paid by the persons occupying the
units (excluding any supplemental rental assistance from the state,
the federal government, or any other public agency to those persons
or on behalf of those units) shall not exceed the amount derived by
multiplying 30 percent times 50 percent of the median adjusted gross
income for the area, adjusted for family size, as determined pursuant
to Section 8 of the United States Housing Act of 1937, (42 U.S.C.
Sec. 1437f), or its successor, for a family of one person in the case
of a studio unit, two persons in the case of a one-bedroom unit,
three persons in the case of a two-bedroom unit, four persons in the
case of a three-bedroom unit, and five persons in the case of a
four-bedroom unit.
(e) No agency may issue any bonds on or after January 1, 1986,
until the information required to be filed pursuant to Section 8855.5
of the Government Code has been filed with the California Debt
Advisory Commission and the Treasurer certifies to the Legislature
that the agency has filed that information.
(f) Units required to be reserved for occupancy by subdivisions
(c) and (d) and financed with the proceeds of bonds issued on or
after January 1, 1986, shall remain occupied by, or made available
to, those persons until the bonds are retired.
(g) This section shall become operative January 1, 1996.
33760.7. The same notice requirements as specified in Section
65863.10 of the Government Code shall apply to multifamily rental
housing that receives financial assistance pursuant to Section 33760
or 33760.5.
33761. An agency may issue revenue bonds for the purpose of
financing residential construction authorized by this chapter and for
the purpose of funding or refunding previously issued revenue bonds.
An agency may also issue revenue bonds for the purpose of refunding
bonds previously issued by another political subdivision of the state
for the purpose of financing residential construction authorized by
this chapter for projects within the jurisdiction of the agency. For
the purposes of this section, "political subdivision" means a city, a
housing authority, or a nonprofit corporation acting on behalf of a
city or a housing authority, all of which operate within the
jurisdiction of the agency. Any savings that accrue to the agency
from refunding bonds previously issued by another political
subdivision shall be limited to the expenditures authorized in
subdivision (e) of Section 33334.2.
33761.5. (a) (1) When refunding revenue bonds for multifamily
housing which were previously issued pursuant to this chapter, the
agency 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 mean a period of time until
the termination of the contract.
(b) The agency 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.
33762. An agency may establish limitations respecting fees,
charges, and interest rates to be used by qualified mortgage lenders
for financing residential construction pursuant to this chapter and
may from time to time revise such fees, charges, and interest rates
to reflect changes in interest rates on the agency's revenue bonds,
losses due to defaults, changes in loan-servicing charges, or other
expenses related to administration of the residential construction
financing program. Any change in interest rate shall conform to the
provisions of Section 1916.5 of the Civil Code, except that paragraph
(3) of subdivision (a) of Section 1916.5 shall not apply and that
the "prescribed standard" specified in Section 1916.5 shall be
periodically determined by the redevelopment agency after hearing
preceded by public notice to affected parties, and shall reflect
changes in interest rates on the agency's bonds, and bona fide
changes in loan servicing charges related to the administration of a
program under the provisions of this chapter. An agency may purchase
mortgage or construction loans made by a qualified mortgage lender
without premium or may itself pay such fees and charges incurred in
lending money for the purpose of residential construction and may
collect and disburse, or may contract to pay any person, partnership,
association, corporation, or public agency for, collection and
disbursal of payments of principal, interest, taxes, insurance, and
mortgage insurance. An agency may hold deeds of trust or mortgages,
including mortgages insured under Title II of the National Housing
Act, as security for financing residential construction and may
pledge or assign the same as security for repayment of revenue bonds.
Such deeds of trust or mortgages may be assigned to, and held on
behalf of the agency by, any bank or trust company appointed to act
as trustee or fiscal agent by the agency in any indenture or
resolution providing for issuance of bonds pursuant to this chapter.
An agency may establish the terms and conditions of financing, which
shall be consistent with the provisions of any applicable federal or
state law under which the financing is to be insured.
33763. (a) No loan shall be made for financing except through a
qualified mortgage lender.
(b) All mortgage loans made for financing pursuant to this chapter
from the proceeds of bonds issued on or before October 1, 1983,
shall be insured or guaranteed, in whole or in part, by any
instrumentality of the United States, or the State of California, or
by any person licensed to insure mortgages in this state. Mortgage
loans made for financing pursuant to this chapter from the proceeds
of bonds issued after October 1, 1983, may be insured or guaranteed,
in whole or in part by those entities or persons. However, nothing in
this subdivision shall impair any contractual rights which may have
vested in bondholders or other persons prior to October 1, 1983.
33763.5. All loans made by a redevelopment agency shall be made
according to a regulation that contains standards, qualifications,
and criteria for the making and approval of loans and that has been
adopted by the redevelopment agency at a public meeting.
33764. An agency may employ engineering, architectural, accounting,
collection, or other services, including services in connection with
the servicing of loans made to participating parties, as may be
necessary in the judgment of the agency for the successful financing
of residential construction pursuant to this chapter. An agency may
pay the reasonable costs of consulting engineers, architects,
accountants, and other experts, if, in the judgment of the agency,
such services are necessary to the successful financing of any
residential construction and if the agency is not able to provide
such services. An agency may employ and fix the compensation of
financing consultants, bond counsel, and other advisers as may be
necessary in its judgment to provide for the issuance and sale of any
revenue bonds of the agency.
33765. In addition to all other powers specifically granted by this
chapter, an agency may do all things necessary or convenient to
carry out the purposes of this chapter.
33766. Revenues and the proceeds of mortgage insurance or guarantee
claims, if any, shall be the sole source of funds pledged by an
agency for repayment of its revenue bonds. Revenue bonds issued under
this chapter do not constitute a debt or liability of the agency or
the state for which the faith and credit of the agency or the state
is pledged but shall be payable solely from revenues and the proceeds
of mortgage insurance or guarantee claims, if any.
33767. All residential construction shall be undertaken or
completed subject to the rules and regulations of the agency. An
agency may acquire by deed, purchase, lease, contract, gift, devise,
or otherwise any real or personal property, structures, rights,
rights-of-way, franchises, easements, and other interests in lands
necessary or convenient for the financing of residential
construction, upon such terms and conditions as it deems advisable,
and may lease, sell, or dispose of the same in such manner as may be
necessary or desirable to carry out the objectives and purposes of
this chapter.
33768. The provisions of Chapter 16 (commencing with Section 7260)
of Division 7 of Title I of the Government Code shall not apply to
owners or tenants of any property acquired by foreclosure, trust
deed, sale or other proceeding resulting from default on a loan made
by the agency.
33769. (a) An agency shall require that any residence that is
constructed with financing obtained under this chapter shall be open,
upon sale or rental of any portion thereof, to all regardless of any
basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926,
12926.1, subdivision (m) and paragraph (1) of subdivision (p) of
Section 12955, and Section 12955.2 of the Government Code. The agency
shall also require that contractors and subcontractors engaged in
residential construction financed under this chapter shall provide
equal opportunity for employment, without discrimination as to any
basis listed in subdivision (a) of Section 12940 of the Government
Code, as those bases are defined in Sections 12926 and 12926.1 of the
Government Code, and except as otherwise provided in Section 12940
of the Government Code. All contracts and subcontracts for
residential construction financed under this chapter shall be let
without discrimination as to any basis listed in subdivision (a) of
Section 12940 of the Government Code, as those bases are defined in
Sections 12926 and 12926.1 of the Government Code and except as
otherwise provided in Section 12940 of the Government Code. It shall
be the policy of an agency financing residential construction under
this chapter to encourage participation by minority contractors, and
the agency shall adopt rules and regulations to implement this
section.
(b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil
Code and subdivisions (n), (o), and (p) of Section 12955 of the
Government Code shall apply to subdivision (a).
33760. (a) Within its territorial jurisdiction, an agency may
determine the location and character of any residential construction
to be financed under this chapter and may make mortgage or
construction loans to participating parties through qualified
mortgage lenders, or purchase mortgage or construction loans without
premium made by qualified mortgage lenders to participating parties,
or make loans to qualified mortgage lenders, for financing any of the
following:
(1) Residential construction within a redevelopment project area.
(2) Residential construction of residences in which the dwelling
units are committed, for the period during which the loan is
outstanding, for occupancy by persons or families who are eligible
for financial assistance specifically provided by a governmental
agency for the benefit of occupants of the residence.
(3) To the extent required by Section 103A of Title 26 of the
United States Code, as amended, to maintain the exemption from
federal income taxes of interest on bonds or notes issued by the
agency under this chapter, residences located within targeted areas,
as defined by Section 103(b)(12)(A) of Title 26 of the United States
Code. Any loans to qualified mortgage lenders shall be made under
terms and conditions which, in addition to other provisions as
determined by the agency, shall require the qualified mortgage lender
to use all of the net proceeds thereof, directly or indirectly, for
the making of mortgage loans or construction loans in an appropriate
principal amount equal to the amount of the net proceeds. Those
mortgage loans may, but need not, be insured.
(b) (1) Not less than 20 percent (15 percent in target areas) of
the units in any residential project financed pursuant to this
section on or after January 1, 1986, shall be occupied by, or made
available to, individuals of low and moderate income, as defined by
Section 103(b)(12)(C) of Title 26 of the United States Code. If the
sponsor elects to establish a base rent for units reserved for lower
income households, the base rents shall be adjusted for household
size, as determined pursuant to Section 8 of the United States
Housing Act of 1937 (42 U.S.C. Sec. 1437f), or its successor, for a
family of one person in the case of a studio unit, two persons in the
case of a one-bedroom unit, three persons in the case of a
two-bedroom unit, four persons in the case of a three-bedroom unit,
and five persons in the case of a four-bedroom unit.
(2) Not less than one-half of the units described in paragraph (1)
shall be occupied by, or made available to, very low income
households, as defined by Section 50105. The rental payments for
those units paid by the persons occupying the units (excluding any
supplemental rental assistance from the state, the federal
government, or any other public agency to those persons or on behalf
of those units) shall not exceed the amount derived by multiplying 30
percent times 50 percent of the median adjusted gross income for the
area, adjusted for family size, as determined pursuant to Section 8
of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), or
its successor, for a family of one person in the case of a studio
unit, two persons in the case of a one-bedroom unit, three persons in
the case of a two-bedroom unit, four persons in the case of a
three-bedroom unit, and five persons in the case of a four-bedroom
unit.
(c) Units required to be reserved for occupancy as provided in
subdivision (b) and financed with the proceeds of bonds issued on or
after January 1, 1986, shall remain occupied by, or made available
to, those persons until the bonds are retired.
(d) (1) When issuing tax-exempt bonds for purposes of this
section, the regulatory agreement entered into by the agency shall
require that 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 for low- or very low income households and
financed or refinanced with proceeds of bonds issued pursuant to this
section on or after January 1, 2006, 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 the regulatory agreement prior to the date or
expiration or termination, until the earliest of any of the following
occur:
(A) The household's income exceeds 140 percent of the maximum
eligible income specified in the regulatory agreement for reserved
units.
(B) 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.
(C) Thirty years after the date of the commencement of the
qualified project period.
(D) The sponsor pays the relocation assistance and benefits to
tenants as provided in subdivision (b) of Section 7264 of the
Government Code.
(2) As used in this subdivision, "qualified project period" shall
have the meaning 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.
(3) The amendment to this subdivision made during the 2005-06
Regular Session of the Legislature that is set forth in paragraph (1)
is declaratory of existing law.
(e) This section shall become operative January 1, 1996.
33760.5. (a) Notwithstanding the requirements of Section 33760,
agencies which operate within a jurisdiction, the population of which
is in excess of 600,000 persons, as determined by the Department of
Finance, may additionally provide financing for residential
construction of multifamily rental units outside of a redevelopment
project area as set forth in and subject to the limitations of this
section.
(b) Within its territorial jurisdiction, an agency may determine
the location and character of any residential construction to be
financed under this chapter and may make mortgage or construction
loans to participating parties through qualified mortgage lenders, or
purchase mortgage or construction loans without premium made by
qualified mortgage lenders to participating parties for financing
residential construction of multifamily rental units.
(c) Not less than 20 percent (15 percent in target areas) of the
units in each project financed pursuant to this section shall be
occupied by, or made available to, individuals of low and moderate
income, as defined in Section 103(b)(12)(C) of Title 26 of the United
States Code. If the sponsor elects to establish a base rent for
units reserved for lower income households, the base rents shall be
adjusted for household size, as determined pursuant to Section 8 of
the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), or its
successor, for a family of one person in the case of a studio unit,
two persons in the case of a one-bedroom unit, three persons in the
case of a two-bedroom unit, four persons in the case of a
three-bedroom unit, and five persons in the case of a four-bedroom
unit.
(d) Not less than one-half of the low- and moderate-income units
described in subdivision (c) shall be occupied by, or made available
to, very low income households, as defined in Section 50105. The
rental payments for those units paid by the persons occupying the
units (excluding any supplemental rental assistance from the state,
the federal government, or any other public agency to those persons
or on behalf of those units) shall not exceed the amount derived by
multiplying 30 percent times 50 percent of the median adjusted gross
income for the area, adjusted for family size, as determined pursuant
to Section 8 of the United States Housing Act of 1937, (42 U.S.C.
Sec. 1437f), or its successor, for a family of one person in the case
of a studio unit, two persons in the case of a one-bedroom unit,
three persons in the case of a two-bedroom unit, four persons in the
case of a three-bedroom unit, and five persons in the case of a
four-bedroom unit.
(e) No agency may issue any bonds on or after January 1, 1986,
until the information required to be filed pursuant to Section 8855.5
of the Government Code has been filed with the California Debt
Advisory Commission and the Treasurer certifies to the Legislature
that the agency has filed that information.
(f) Units required to be reserved for occupancy by subdivisions
(c) and (d) and financed with the proceeds of bonds issued on or
after January 1, 1986, shall remain occupied by, or made available
to, those persons until the bonds are retired.
(g) This section shall become operative January 1, 1996.
33760.7. The same notice requirements as specified in Section
65863.10 of the Government Code shall apply to multifamily rental
housing that receives financial assistance pursuant to Section 33760
or 33760.5.
33761. An agency may issue revenue bonds for the purpose of
financing residential construction authorized by this chapter and for
the purpose of funding or refunding previously issued revenue bonds.
An agency may also issue revenue bonds for the purpose of refunding
bonds previously issued by another political subdivision of the state
for the purpose of financing residential construction authorized by
this chapter for projects within the jurisdiction of the agency. For
the purposes of this section, "political subdivision" means a city, a
housing authority, or a nonprofit corporation acting on behalf of a
city or a housing authority, all of which operate within the
jurisdiction of the agency. Any savings that accrue to the agency
from refunding bonds previously issued by another political
subdivision shall be limited to the expenditures authorized in
subdivision (e) of Section 33334.2.
33761.5. (a) (1) When refunding revenue bonds for multifamily
housing which were previously issued pursuant to this chapter, the
agency 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 mean a period of time until
the termination of the contract.
(b) The agency 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.
33762. An agency may establish limitations respecting fees,
charges, and interest rates to be used by qualified mortgage lenders
for financing residential construction pursuant to this chapter and
may from time to time revise such fees, charges, and interest rates
to reflect changes in interest rates on the agency's revenue bonds,
losses due to defaults, changes in loan-servicing charges, or other
expenses related to administration of the residential construction
financing program. Any change in interest rate shall conform to the
provisions of Section 1916.5 of the Civil Code, except that paragraph
(3) of subdivision (a) of Section 1916.5 shall not apply and that
the "prescribed standard" specified in Section 1916.5 shall be
periodically determined by the redevelopment agency after hearing
preceded by public notice to affected parties, and shall reflect
changes in interest rates on the agency's bonds, and bona fide
changes in loan servicing charges related to the administration of a
program under the provisions of this chapter. An agency may purchase
mortgage or construction loans made by a qualified mortgage lender
without premium or may itself pay such fees and charges incurred in
lending money for the purpose of residential construction and may
collect and disburse, or may contract to pay any person, partnership,
association, corporation, or public agency for, collection and
disbursal of payments of principal, interest, taxes, insurance, and
mortgage insurance. An agency may hold deeds of trust or mortgages,
including mortgages insured under Title II of the National Housing
Act, as security for financing residential construction and may
pledge or assign the same as security for repayment of revenue bonds.
Such deeds of trust or mortgages may be assigned to, and held on
behalf of the agency by, any bank or trust company appointed to act
as trustee or fiscal agent by the agency in any indenture or
resolution providing for issuance of bonds pursuant to this chapter.
An agency may establish the terms and conditions of financing, which
shall be consistent with the provisions of any applicable federal or
state law under which the financing is to be insured.
33763. (a) No loan shall be made for financing except through a
qualified mortgage lender.
(b) All mortgage loans made for financing pursuant to this chapter
from the proceeds of bonds issued on or before October 1, 1983,
shall be insured or guaranteed, in whole or in part, by any
instrumentality of the United States, or the State of California, or
by any person licensed to insure mortgages in this state. Mortgage
loans made for financing pursuant to this chapter from the proceeds
of bonds issued after October 1, 1983, may be insured or guaranteed,
in whole or in part by those entities or persons. However, nothing in
this subdivision shall impair any contractual rights which may have
vested in bondholders or other persons prior to October 1, 1983.
33763.5. All loans made by a redevelopment agency shall be made
according to a regulation that contains standards, qualifications,
and criteria for the making and approval of loans and that has been
adopted by the redevelopment agency at a public meeting.
33764. An agency may employ engineering, architectural, accounting,
collection, or other services, including services in connection with
the servicing of loans made to participating parties, as may be
necessary in the judgment of the agency for the successful financing
of residential construction pursuant to this chapter. An agency may
pay the reasonable costs of consulting engineers, architects,
accountants, and other experts, if, in the judgment of the agency,
such services are necessary to the successful financing of any
residential construction and if the agency is not able to provide
such services. An agency may employ and fix the compensation of
financing consultants, bond counsel, and other advisers as may be
necessary in its judgment to provide for the issuance and sale of any
revenue bonds of the agency.
33765. In addition to all other powers specifically granted by this
chapter, an agency may do all things necessary or convenient to
carry out the purposes of this chapter.
33766. Revenues and the proceeds of mortgage insurance or guarantee
claims, if any, shall be the sole source of funds pledged by an
agency for repayment of its revenue bonds. Revenue bonds issued under
this chapter do not constitute a debt or liability of the agency or
the state for which the faith and credit of the agency or the state
is pledged but shall be payable solely from revenues and the proceeds
of mortgage insurance or guarantee claims, if any.
33767. All residential construction shall be undertaken or
completed subject to the rules and regulations of the agency. An
agency may acquire by deed, purchase, lease, contract, gift, devise,
or otherwise any real or personal property, structures, rights,
rights-of-way, franchises, easements, and other interests in lands
necessary or convenient for the financing of residential
construction, upon such terms and conditions as it deems advisable,
and may lease, sell, or dispose of the same in such manner as may be
necessary or desirable to carry out the objectives and purposes of
this chapter.
33768. The provisions of Chapter 16 (commencing with Section 7260)
of Division 7 of Title I of the Government Code shall not apply to
owners or tenants of any property acquired by foreclosure, trust
deed, sale or other proceeding resulting from default on a loan made
by the agency.
33769. (a) An agency shall require that any residence that is
constructed with financing obtained under this chapter shall be open,
upon sale or rental of any portion thereof, to all regardless of any
basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926,
12926.1, subdivision (m) and paragraph (1) of subdivision (p) of
Section 12955, and Section 12955.2 of the Government Code. The agency
shall also require that contractors and subcontractors engaged in
residential construction financed under this chapter shall provide
equal opportunity for employment, without discrimination as to any
basis listed in subdivision (a) of Section 12940 of the Government
Code, as those bases are defined in Sections 12926 and 12926.1 of the
Government Code, and except as otherwise provided in Section 12940
of the Government Code. All contracts and subcontracts for
residential construction financed under this chapter shall be let
without discrimination as to any basis listed in subdivision (a) of
Section 12940 of the Government Code, as those bases are defined in
Sections 12926 and 12926.1 of the Government Code and except as
otherwise provided in Section 12940 of the Government Code. It shall
be the policy of an agency financing residential construction under
this chapter to encourage participation by minority contractors, and
the agency shall adopt rules and regulations to implement this
section.
(b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil
Code and subdivisions (n), (o), and (p) of Section 12955 of the
Government Code shall apply to subdivision (a).
