1. (a) To be eligible for funding, a proposed project must involve the development and construction of a new rental housing development.

2. (b) Except as specified in subdivision (c), proposed projects are ineligible if construction work, excluding:

   1. (1) site improvements intended for public dedication,
   2. (2) demolition,
   3. (3) site preparation, and
   4. (4) grading, has begun prior to the date that the department awards a commitment of program funds.

3. (c) Where construction work, other than that allowed pursuant to subdivision (b), has begun on the rental housing development prior to the date that the Department awards a commitment of program funds, proposed projects are eligible only under the following circumstances:

   1. (1) construction has been halted, and the project property has been foreclosed upon or is in foreclosure;
   2. (2) construction has been halted, and the project property has been deeded to a lender in lieu of foreclosure; or
   3. (3) construction has been halted, and there is a substantial likelihood that a lender will initiate foreclosure due to the inability of the project's developer to complete construction.

4. (d) Proposed projects involving the demolition of residential rental units are eligible only under the following circumstances:

   1. (1) the units to be demolished are substandard, and not economically feasible to rehabilitate or if the number of assisted units in the new project is at least twice the total number of units in the demolished structures; and
   2. (2) the sponsor complies with the relocation requirements set forth in section 8091.
5. (e) To be eligible for funding, a proposed group home project must have the support of the local official responsible for services to the designated tenant population, such as the Mental Health Director or Regional Center Director, in the jurisdiction in which the proposed project is located, and must be designated by the local official as being an intrinsic part of that agency's established social service delivery system.

Note: Authority cited: Section 50771.1, Health and Safety Code. Reference: Sections 50010, 50735 and 50771.1, Health and Safety Code.

History

1. New section filed 12-29-89 as an emergency; operative 12-29-89 (Register 90, No. 3). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 4-30-90.

2. New section refiled 4-26-90 as an emergency; operative 4-26-90 (Register 90, No. 23). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 8-24-90.

3. Amendment of subsection (d) filed 7-23-90 as an emergency; operative 7-23-90 (Register 90, No. 39). A Certificate of Compliance must be transmitted to OAL by 11-20-90 or emergency language will be repealed by operation of law on the following day.

4. New section refiled 8-27-90 as an emergency; operative 8-27-90 (Register 90, No. 42). A Certificate of Compliance must be transmitted to OAL by 12-26-90 or emergency language will be repealed by operation of law on the following day.

5. Amendment of subsection (d) refiled 11-16-90 as an emergency; operative 11-16-90 (Register 91, No. 1). A Certificate of Compliance must be transmitted to OAL by 3-18-91 or emergency language will be repealed by operation of law on the following day.

6. New section refiled 12-19-90 as an emergency pursuant to Health and Safety Code section 50771.3; operative 12-19-90 (Register 91, No. 4). A Certificate of Compliance must be transmitted to OAL by 4-18-91 or emergency language will be repealed by operation of law on the following day.

7. Certificate of Compliance as to 11-16-90 and 12-19-90 orders transmitted to OAL 1-4-91; disapproved by OAL 2-4-91 (Register 91, No. 13).

8. New section refiled 2-20-91 as an emergency; operative 2-20-91 (Register 91, No. 13). A Certificate of Compliance must be transmitted to OAL by 6-17-91 or emergency language will be repealed by operation of law on the following day.

9. Certificate of Compliance as to 6-14-91 order transmitted to OAL 5-15-91 and filed 6-14-91 (Register 91, No. 38).