Sec. 8201 - Definitions

ยง 8201. Definitions

In addition to the definitions found in 24 CFR Section 92.2, the following definitions shall apply to this subchapter. These definitions are further provided to clarify applicable provisions contained in 24 CFR Section 92.2.

(a) "Administrative subcontractor" means any entity or individual which contracts with the State Recipient or CHDO to provide any portion of administrative services to the local HOME activity. Individuals or groups that are acting in the capacity of developer, owner, or sponsor of a project shall not act as administrative subcontractors for the activity.

(b) "Applicant" is any city, county, or CHDO which submits an application to the Department to operate programs or develop or rehabilitate projects using HOME Funds within a specified jurisdictional boundary. "Applicant" is also any Developer which submits an application to the Department (under the Department administered HOME program,) to develop or rehabilitate projects using HOME Funds within a HOME eligible jurisdiction. A Developer of a project shall not act as administrative subcontractor for the activity.

(c) "Award letter" means a conditional reservation letter signed by the director indicating that the Department has reserved funds for a project or program subject to meeting specific conditions in the regulations.

(d) RESERVED.

(e) "CFR" is the acronym used for the Code of Federal Regulations.

(f) "CHDO" is the acronym for Community Housing Development Organization and means those organizations which meet the criteria set forth in 24 CFR Section 92.2 and are certified by the Department pursuant to Section 8204.1.

(g) "Conditional reservation" means the Department has reserved funds for a project or program subject to meeting specific conditions in the regulations and in the award letter.

(h) "Department" means the State of California, Department of Housing and Community Development, which shall serve as a participating jurisdiction as defined by 24 CFR Section 92.2, for the purposes of this program.

(i) "Developer" - is any legal entity that will provide or arrange for design, financing and construction services in connection with a housing project, including Native American Entities.

(j) "Director" means the director of the Department.

(k) "Family" is a household consisting of an individual or two or more persons who by blood or marriage, or otherwise, live together in a housing unit.

(l) "Federal disbursement and information system" is the computerized system operated by HUD which manages, disburses, collects data and reports on the use of HOME funds.

(m) "First-time homebuyer" means an individual or individuals or an individual and his or her spouse who have not owned a home during the three-year period before the purchase of a home with HOME assistance, except that the following individual or individuals may not be excluded from consideration as a first-time homebuyer under this definition:

(1) a displaced homemaker who, while a homemaker, owned a home with his or her spouse or resided in a home owned by the spouse. A displaced homemaker is an adult who has not, within the preceding two years, worked on a full-time basis as a member of the labor force for a consecutive twelve-month period and who has been unemployed or underemployed, experienced difficulty in obtaining or upgrading employment and worked primarily without remuneration to care for his or her home and family;

(2) a single parent who, while married, owned a home with his or her spouse or resided in a home owned by a spouse. A single parent is an individual who:

1) is unmarried or legally separated from a spouse, and

2) has custody or joint custody of one or more minor children or is pregnant; or

(3) an individual or individuals who owns or owned, as a principal residence during the three-year period before the purchase of a home with HOME assistance, a dwelling unit whose structure is:

(i) not permanently affixed to a permanent foundation in accordance with local or state regulations; or

(ii) not in compliance with state, local, or model building codes and cannot be brought into compliance with such codes for less than the cost of constructing a permanent structure.

(n) "First-time homebuyer program" means HOME funds are provided to a city, county or CHDO to administer a program to assist first-time homebuyers. Eligible uses of these funds consist of:

1) a city or county providing a loan to the homebuyer for acquisition of a dwelling that the homebuyer selects from the open market;

2) a city or county providing a loan and/or grant to the homebuyer for acquisition and rehabilitation of a dwelling provided the work is done after transfer of ownership interest;

3) a CHDO providing assistance for the acquisition and rehabilitation of a dwelling provided that the CHDO is the sole owner of the dwelling during the rehabilitation period; and 4) a city, county or CHDO providing assistance for the construction of scattered site dwellings, with no more than four dwellings on each vacant site, and each site shall be in an existing built-out neighborhood. Such dwellings shall then be sold to first-time homebuyers.

(o) "First-time homebuyer project" means that HOME funds are used to develop a specified number of units to be sold to first-time homebuyers. By the conclusion of construction, the entire HOME investment shall be converted to mortgage assistance to the first-time homebuyers.

(p) "Funding cycle" means the annual period of time during which HUD makes funds available to the Department for distribution pursuant to the Act, and includes the period of time during which the Department solicits applications and makes conditional reservations of funds.

(q) "HOME" is the abbreviation used for the Department-administered Home Investment Partnerships Program.

(r) "HOME fund" means the account established in the U.S. Treasury Account of the HOME Investment Trust Fund, to which funds for the Department's use in the HOME program are allocated.

(s) "Housing" means any structure, which is currently for residential use, or proposed for residential use, in whole or in part, including manufactured housing as defined in Health and Safety Code Section 18007.

(t) "Housing element in substantive compliance" means the local public entity's adopted housing element is in substantive compliance as demonstrated by a letter from the Department which sets forth findings that the housing element adopted within the time frames required by Section 65588 of the Government Code includes that substance essential to every requirement of Article 10.6, commencing with Section 65580, of Chapter 3 of Division I of Title VII of the Government Code.

(u) "HUD" means the United States Department of Housing and Urban Development.

(v) "Leverage" means all documented monetary and non-monetary contributions, other than HOME funds, which have been assigned a measurable value and which are applied to the specific HOME-assisted project. Leverage does not include contributions toward the cost of non-low-income units and commercial space.

(w) "Local account" is an account maintained by the Department, or State Recipient, or CHDO, as may be specified in an agreement between the Department and a State Recipient, or CHDO, which shall include repayments of HOME funds and matching contributions and any payment of interest or other return on the investment of HOME funds and matching contributions.

(x) "Native American Entity" is any Tribal government or Tribally Designated Housing Entity.

(y) "Native American Lands" means real property located within the State of California that meets the following criteria:

(1) it is trust land for which the United States holds title to the tract or interest in trust for the benefit of one or more tribes or individual Indians, or is restricted Indian land for which one or more tribes or individual Indians holds fee title to the tract or interest but can alienate or encumber it only with the approval of the United States; and the land may be leased for housing development and residential purposes under federal law; or

(2) lands outside the jurisdiction of tribal government owned or co-owned by a Native American Entity

(z) "NOFA" is the acronym used for Notice of Funding Availability. The NOFA is the document used by the Department to announce that funds are available and applications may be submitted.

(aa) "Owner-occupied rehabilitation program" means funds are provided to a city or county to administer a program to assist owners of homes that are in need of rehabilitation as defined in Section 8201(bb).

(bb) "Rehabilitation" means repairs and improvements to substandard housing which are necessary to meet rehabilitation standards as defined in Section 50097 of the Health and Safety Code, to eliminate conditions specified in Section 17920.3 of the Health and Safety Code, and to meet housing quality standards as set forth in 24 CFR Section 982.401. Rehabilitation also means repairs and improvements which are necessary to meet any locally-adopted standards used in local rehabilitation programs. Rehabilitation shall include reconstruction.

(cc) "Rental new construction project" means funds are provided to develop a specific multifamily project on a specific site by a specific developer.

(dd) "Rental rehabilitation and/or acquisition program" means funds are provided to a city or county to administer a program to assist owners of multi-unit rental housing that is in need of rehabilitation as defined in 8201(bb) or to assist the purchase and rehabilitation of multi-unit rental housing that is in need of rehabilitation. No one property assisted through this program shall receive more than 40 percent of the activity amount.

(ee) "Rental rehabilitation and/or acquisition projects" means funds are provided to acquire a specific rental housing project, to rehabilitate a specific project without any transfer of ownership, or to both acquire and rehabilitate a specific project.

(ff) "Rural area" means the same as defined in Section 50199.21 of the Health and Safety Code.

(gg) "Set up" means all of the funding conditions required by HUD and the Department have been met and the State Recipient, Developer or CHDO is ready to establish a project-specific account in the federal disbursement and information system.

(hh) "Set-aside" means HOME funds, which are designated to be used for a specific purpose necessary to meet any statutory or regulatory requirement.

(ii) "State Recipient" means a city or county, which is designated to receive an award of HOME funds from the Department.

(jj) "Tenant-based rental assistance program" means funds are provided to a city or county to administer a program to provide rent subsidies to eligible households. State Recipients who administer a tenant-based rental assistance program are eligible only for administrative funds to reimburse expenses eligible under 24 CFR Section 92.207 of the federal HOME regulations.

(kk) "Tribally Designated Housing Entity" The terms 'tribally designated housing entity' and 'housing entity' have the following meaning:

(1) EXISTING Indian Housing Authority (IHA) - With respect to any Indian tribe that has not taken action under subparagraph (2), and for which an IHA--

(i) was established for purposes of the United States Housing Act of 1937 before the date of the enactment of the Native American Housing assistance and Self-Determination Act of 1996 (NAHASDA) that meets the requirements under the United States Housing Act of 1937,

(ii) is acting upon such date of enactment as the Indian housing authority for the tribe, and

(iii) is not an Indian tribe for purposes of NAHASDA, the terms mean such Indian housing authority.

(2) OTHER ENTITIES - With respect to any Indian tribe that, pursuant to NAHASDA, authorizes an entity other than the tribal government to receive grant amounts and provide assistance under NAHASDA, for affordable housing for Indians, which entity is established--

(i) by exercise of the power of self-government of one or more Indian tribes independent of State law, or

(ii) by operation of State law providing specifically for housing authorities or housing entities for Indians, including regional housing authorities in the State of Alaska, the terms mean such entity.

(3) ESTABLISHMENT - A tribally designated housing entity may be authorized or established by one or more Indian tribes to act on behalf of each such tribe authorizing or establishing the housing entity.

(ll) "Consolidated plan" means the plan submitted and approved in accordance with 24 CFR part 91.

(1. New section filed 7-2-92 as an emergency; operative 7-2-92 (Register 92, No. 28). A Certificate of Compliance must be transmitted to OAL 10-30-92 or emergency language will be repealed by operation of law on the following day. 2. New section refiled 10-23-92 as an emergency; operative 10-30-92 (Register 92, No. 43). A Certificate of Compliance must be transmitted to OAL 2-23-93 or emergency language will be repealed by operation of law on the following day. 3. New section refiled 3-2-93 as an emergency; operative 3-2-93 (Register 93, No. 10). A Certificate of Compliance must be transmitted to OAL 6-30-93 or emergency language will be repealed by operation of law on the following day. 4. Certificate of Compliance as to 3-2-93 order including amendment of section and Note transmitted to OAL 5-26-93 and filed 7-7-93 (Register 93, No. 28). 5. Amendment of section and Note filed 3-14-97; operative 3-14-97 pursuant to Government Code section 11343.4(d) (Register 97, No. 11). 6. Amendment of subsection (a) filed 1-14-99; operative 2-13-99 (Register 99, No. 3). 7. Amendment filed 9-9-2004; operative 9-9-2004 pursuant to Government Code section 11343.4 (Register 2004, No. 37). 8. Amendment of subsections (m), (x)-(y) and (ee) and amendment of Note filed 10-10-2011; operative 10-10-2012 pursuant to Government Code section 11343.4(Register 2012, No. 41). 9. Amendment of subsection (b), new subsections (i), (x)-(y) and (kk)-(ll), subsection relettering and amendment of newly designated subsections (aa), (dd) and (gg) filed 10-31-2016; operative 1-1-2017 (Register 2016, No. 45).)

Note: Authority cited: Sections 50406 and 50896.3(b), Health and Safety Code. Reference: 24 CFR Sections 92.2, 92.102(b)(2) and 982.401; and Sections 17920.3, 18007, 50079.5, 50105 and 50199.21, Health and Safety Code.

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