Cal. Code Regs. Tit. 25, § 7806 - Calculation of Affordable Rents

(a) For the purposes of the Program, rent for the assisted units shall include all regular charges paid to a sponsor or local housing authority by an eligible household for the use and occupancy of an assisted unit in a rental housing development.

(b) Rent payable for assisted units occupied by very low income households shall be deemed affordable for the purposes of the Program if, including an allowance for utility costs, it does not exceed the greater of:

(1) A "base rent" of twenty-five percent (25%) of the amount payable to specific household sizes pursuant to Section 11453 of the Welfare and Institutions Code, as adjusted annually pursuant to Section 11453 of the Welfare and Institutions Code, and the size of the unit, as set forth below

1-BR Unit-2 person household

2-BR Unit-2 person household

3-BR Unit-4 person household

4-BR Unit-6 person household

5-BR Unit-8 person household

or, if higher,

(2) twenty-five percent (25%) of the income of such household.

(c) Rent payable for assisted units occupied by other lower income households shall be deemed affordable for the purposes of the Program if, including an allowance for utility costs, it does not exceed the greater of:

(1) a "base rent" of twenty-five percent (25%) of fifty percent (50%) of the area median income adjusted for family size of the geographical area in which the rental housing development is located, or, if higher,

(2) twenty-five percent (25%) of the income of such household.

(d) For the purposes of this section, "utilities" include garbage collection, sewer, water, gas, electricity and other heating, cooling or refrigeration fuels which are billed separately from the rent but do not include the cost of telephone service.

(e) The allowance for utility costs shall be calculated as follows: An estimate of utility usage and costs will be prepared for each assisted unit. Such estimate will be based on a reasonable use of utilities by a typical household and will take into account the size and energy efficiency of each unit, and the cost of such utilities then current with respect to the development, considering any subsidies to which the typical eligible household may be entitled. This estimate shall be the allowance for determination of affordable rent pursuant to subdivisions (b) and (c) for the first year of occupancy of the assisted unit. This estimate shall be reviewed annually, taking into account changes in utility costs, and the allowance for utility costs after approval by the Agency or responsible agency shall be adjusted accordingly and implemented pursuant to Sections 7864 and 7888.

(f) Notwithstanding any provision of this section, an eligible household shall not be entitled to receive any payment or "negative rent" if its allowance for utilities exceeds the amount specified in subdivisions (b)(1) or (b)(2) or (c)(1) or (c)(2).

(g) Notwithstanding any other provision of this Section, where assisted units are receiving subsidies under Section 8 of Title II of the Housing and Community Development Act of 1974 as amended, then the rents payable by tenants of such assisted units pursuant to the rules and regulations governing the Section 8 Program shall be deemed affordable for the purpose of this Program.

(h) Where the responsible agency or the Agency is authorized to fix and alter a schedule of rents necessary to provide residents of non-assisted units with affordable rents, to the extent consistent with the maintenance of the financial integrity of the rental housing development, the affordable rents, if any, will be determined by the responsible agency or the Agency on a case-by-case basis consistent with the calculation of rental income necessary to ensure the financial feasibility of the particular rental housing development.

Notes

Cal. Code Regs. Tit. 25, § 7806

Note: Authority cited: Section 50737, Health and Safety Code. Reference: Sections 50749 and 50759, Health and Safety Code.

1. Amendment of subsections (b), (c) and new subsection (g) filed 11-13-80 as an emergency; effective upon filing (Register 80, No. 46). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 3-13-81.
2. Certificate of Compliance transmitted to OAL 3-13-81 and filed 4-14-81 (Register 81, No. 16).
3. Amendment filed 10-25-82; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 82, No. 44).