§ 5100. Definitions.

In addition to the definitions set forth in Government Code section 8869.82 and unless otherwise required by the context, the following terms as used in this chapter are defined as follows:

“Acquisition/Rehabilitation Project” means a QRRP Project applying for an allocation of tax-exempt private activity bonds from the General Pool that is not eligible for treatment as a New Construction Project.

“Adaptive Reuse” means the retrofitting and repurposing of existing buildings that create new Qualified Residential Rental Project units for the market, and expressly excludes any Project that involves rehabilitation or any construction affecting existing residential rental units.

“AMI” or “Area Median Income” means the median family income of a county as set by the U.S. Department of Housing and Urban Development.

“At Risk Project” means a property that is at risk of conversion as defined by Revenue and Taxation Code section 17058(c)(6) and by section 10325(g) of Title 4 of the California Code of Regulations; or a property that otherwise meets all requirements of Revenue and Taxation Code section 17058(c)(4) and section 10325(g) of Title 4 of the California Code of Regulations, except that the federal assistance due to expire within five (5) calendar years of application to the Committee may include a tax-exempt private activity Bond regulatory agreement.

“BIPOC Entity” means an entity that is at least 51% owned, managed, and controlled by one or more Black, Indigenous, or Other People of Color or by a non-profit organization with a Black, Indigenous, or Other Person of Color executive director/Chief Executive Officer (CEO) and board membership that is comprised of at least 51% Black, Indigenous, and Other People of Color. For purposes of this paragraph, Black, Indigenous, or Other People of Color means a person who checked the Black or African American, American Indian and Alaska Native, Asian, or Native Hawaiian and Other Pacific Islanders race category or who answered yes to the Hispanic Origin question on the 2020 United States Census.

t is comprised of at least 51% Black, Indigenous, and Other People of Color. For purposes of this paragraph, Black, Indigenous, or Other People of Color means a person who checked the Black or African American, American Indian and Alaska Native, Asian, or Native Hawaiian and Other Pacific Islanders race category or who answered yes to the Hispanic Origin question on the 2020 United States Census.

“BIPOC Project” means a Qualified Residential Rental Project for which the sponsor is a Qualified BIPOC Entity. A BIPOC Project may be a New Construction Project, Rural Project, Acquisition/Rehabilitation Project. The partnership agreement of a BIPOC Project must allocate at least 51% developer fee, cash flow, and net sale proceeds to the BIPOC Entity and provide the BIPOC Entity an option to purchase the development. A BIPOC Project does not include a project for which any principal, partner, affiliate, parent organization, or member of the sponsor entity is eligible to receive maximum General Partner Experience points pursuant to Section 10325(c)(1)(A) of the CTCAC regulations unless (a) those points are awarded to a principal of the BIPOC Entity who no longer is employed by the developer of, or has an ownership interest in, the project(s) which form the basis of the experience points, or (b) those points are available to a nonprofit managing general partner that is (1) eligible under 501(c)(3) of the Internal Revenue Code and (2) not receiving more than 10% of the economic interests of the Project, which include developer fee, cash flow, and net sale proceeds and (3) the BIPOC Entity receives General Partner experience points pursuant to Section 5105(f)(1)(C). All BIPOC Projects shall be prequalified under Section 5106(c) and the BIPOC Entity must remain in the BIPOC Project ownership for a minimum of three years from the date the BIPOC Project is placed into service.

“Bond and State Credit Allocation” means the Allocation plus any California State Tax Credits requested from CTCAC for an individual QRRP Project.

“Bond Regulatory Agreement” means the agreement between the Issuer, Project Sponsor, and any third party related to the ownership, financing, and management of a proposed Qualified Residential Rental Project that binds the parties to the commitments made in the Application that resulted in the Allocation for the Project and any other requirements mandated by 26 U.S.C. section 142.

“Capital Needs Assessment” means the physical needs assessment required for all acquisition/rehabilitation projects as defined in Section 10302(k) of the CTCAC Regulations.

“Community Revitalization Area” means one of the following areas for which a comprehensive Community Revitalization Plan has been adopted and efforts specific to that plan have occurred: 1) a Distressed Community; 2) a Federal Opportunity Zone, Choice Neighborhood, or HUD-approved Neighborhood Revitalization Strategy Area; or 3) a Disadvantaged Community as identified by the California Environmental Protection Agency's CalEnviroScreen map.

the following areas for which a comprehensive Community Revitalization Plan has been adopted and efforts specific to that plan have occurred: 1) a Distressed Community; 2) a Federal Opportunity Zone, Choice Neighborhood, or HUD-approved Neighborhood Revitalization Strategy Area; or 3) a Disadvantaged Community as identified by the California Environmental Protection Agency's CalEnviroScreen map.

“Community Revitalization Plan” means a plan for contributing to concerted community revitalization efforts as demonstrated by a letter from a local government official or the plan’s lead agency. The letter shall explain how the proposed project will contribute to the community's planned revitalization and include, but is not limited to, a description of the following community engagement, investment, and other revitalization efforts:

• (a) Community enhancement services in the area, including, but not limited to, job training and after-school enrichment programs.

• (b) Funds, not including funds for the proposed project, that have been expended in the past five (5) years or are being expended or committed to be expended to improve the community infrastructure, including, but not limited to, parks, storm water systems, sewer systems, and streets.

• (c) Projects, not including the proposed project, that have been completed within the past five (5) years or are underway or committed to be completed that contribute to community revitalization, including, but not limited to, retail, office, and housing projects.

“CTCAC/HCD Opportunity Area Map” shall have the same meaning as in Section 10302(ccc) of the CTCAC regulations. An applicant may choose to utilize the census tract or census block group resource designation, as applicable, from the CTCAC/HCD Opportunity Maps in effect when the initial site control was obtained up to seven calendar years prior to the application. Projects located in map areas designated as “Missing/Insufficient Data” or similar designation with site control prior to December 11, 2024, shall be considered to be in the resource area that most frequently surrounds the perimeter of the Project’s map area.

“Extremely Low/Very Low-Income (ELI/VLI) Set-Aside” means a New Construction Project that has an average AMI of 50% or below and has received either:

(a) an award of funding from the California Department of Housing and Community Development (HCD), including from the Multifamily Housing Program, the Affordable Housing and Sustainable Communities Program, the Transit Oriented Development Program, the Joe Serna Jr. Farmworker Housing Grant Program, the No Place Like Home Program, Housing for a Healthy California and the Veterans Housing and Homelessness Prevention Program. The income restrictions shall be at least as restrictive as those for which the applicant received an award from HCD. Awards made directly by the department do not include Alternative County Process awards; or

(b) an award of public funds, as defined in Section 10325(c)(9)(A)(i) of the CTCAC regulations, equivalent to 15% or more of the Project’s total development cost, provided that the project meets the following criteria, as applicable:

(1) If the project receives points as a Large Family project pursuant to Section 5105(g) and is located in a High Segregation and Poverty Area as specified on CTCAC/HCD Opportunity Area Map, the project shall have income restrictions with a range of at least 30% AMI between the highest and lowest 10% of incomerestricted units.

(2) If the project receives points as a Large Family project pursuant to Section 5105(g) and is located in a High or Highest Resource Area as specified on CTCAC/HCD Opportunity Area Map, the project shall have income restrictions that meet the requirements of Section 5105(i)(1)(A).

(3) If the project does not receive points as a Large Family project pursuant to Section 5105(g) or is located in a Moderate, or Low Resource Area as specified on CTCAC/HCD Opportunity Area Map, the project receives maximum points for exceeding minimum income restrictions pursuant to Section 5105(d).

“FHA” means Federal Housing Administration.

“FHA Financed Project” means a project financed under 221(d)3, 221(d)4, 223(f) Federal Housing Administration insurance program, or the Section 202 or 811 Capital Advance program, or any HUD- sponsored capital financing pilot program.

“Final and Conclusive Determination Letter” means a written confirmation from the Department of Finance (DOF) that its determination of an enforceable obligation as approved in a recognized obligation payment schedule is final and conclusive, and reflects DOF’s approval of subsequent payments made pursuant to the enforceable obligation.

“Gross Rent” means gross rent as defined by 26 U.S.C. section 42(g)(2)(B). Utility allowances, as provided by 26 U.S.C. section 42(g)(2)(B)(ii), will be included for purposes of this calculation. Projects that are At Risk Projects or Projects that request low income housing tax credits are required to use Gross Rents for the calculation of restricted rents.

“Hard Construction Costs” means the amount of the construction contract, excluding contractor profit, general requirements and contractor overhead.

“Homeless Set-Aside Project” means a New Construction Project in which the greater of 15 units or 25% of the tax credit units are designated for homeless households as defined in Section 10302(kk) of the CTCAC regulations at affordable rents consistent with Section 10325(g)(3) of the CTCAC regulations.

“HUD” means the United States Department of Housing and Urban Development.

“HUD Development Acknowledgement Letter” means HUD correspondence outlining that a project has submitted an application for FHA financing, that the application has been deemed complete, and that HUD is committed to providing the project with a Firm Commitment Letter prior to the issuance expiration date of the project’s Allocation.

“HUD Firm Commitment Letter” means a HUD loan commitment for FHA financing.

“MAP Lender” means a HUD-qualified lender that prepares FHA forms and performs preliminary underwriting for certain FHA loan applications.

“Market Study” means a comprehensive document prepared by a third party which contains information related to the Project's market area.

“Mixed Income Project” means a Qualified Residential Rental Project that is a New Construction project and either (1) is not utilizing the Average Income test of Internal Revenue Code Section 42 (g)(1)(C) and has 50% or fewer of its total units designated as Restricted Rental Units, or (2) is part of the California Housing Finance Agency Mixed-Income Program. In a Competitive Application Process, a Mixed Income Project may only apply for an allocation of tax-exempt bonds if the ratio of tax-exempt bonds, not including recycled bonds, to aggregate depreciable basis plus land basis is less than or equal to the ratio of units that will be restricted pursuant to a CTCAC regulatory agreement.

“Native American Lands” means real property located within the State of California that meets both the following criteria:

• (a) 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.

• (b) the land may be leased for housing development and residential purposes under federal law.

“New Construction Project” means a QRRP project applying for an allocation of tax-exempt private activity bonds that meets at least one of the following: (1) 100% of its units constitute new units to the market, (2) involves the demolition or rehabilitation of existing residential units that increase the unit count by either 25 units or 50% of the existing units, whichever is greater, unless, for existing SRO projects, waived by the Executive Director provided that the applicant demonstrates that full compliance would be impractical, or (3) adaptive re-use of non-residential structures, including hotels and motels that were converted to residential use within the previous five (5) years from the date of the application.

“Neighborhood Change Map” means the Final 2024 Neighborhood Change Map, and any subsequent updates, developed by HCD to identify neighborhoods that have undergone rapid racial/ethnic change and economic change, which present a risk of exacerbating challenges to Affirmatively Furthering Fair Housing. An applicant may choose to utilize the census tract or census block group resource designation from the Neighborhood Change Map in effect when the initial site control was obtained up to seven calendar years prior to the application.

“Permanent Supportive Housing” means a QRRP Project receiving points pursuant to Section 5105(g) as a Special Needs Project for which the minimum required percentage of special needs units are designated as “supportive housing” as that term is defined in Health and Safety Code section 50675.14(b). The project shall comply with the core components of Housing First, as defined in Welfare and Institutions Code section 8255(b), with respect to the units designated for homeless households.

05(g) as a Special Needs Project for which the minimum required percentage of special needs units are designated as “supportive housing” as that term is defined in Health and Safety Code section 50675.14(b). The project shall comply with the core components of Housing First, as defined in Welfare and Institutions Code section 8255(b), with respect to the units designated for homeless households.

“Public Transit Corridor” means an existing or planned public mass transit guide way or bus way station, or multimodal transportation terminal serving public mass transit operations within one-third mile of the Project.

“Qualified Project Period” shall mean the same as defined in 26 U.S.C. section 142(d)(2)(A) and regulations promulgated thereunder, except that the minimum term shall be consistent with Section 5107.

"Recycled Bonds" means previously issued Allocation that meets the requirements of IRC section 146(i)(6).

“Rent Comparability Matrix” means the form by which the third party that has completed the Market Study provides information comparing the Project to comparable properties in the Project’s market area and evidences that each of the Project’s unit types has met the requirements of Section 5107(a)(2).

“Residential Rental Regulatory Agreement” means a covenant recorded against the title of a subject property by a government entity limiting the property’s use to rental housing and restricting tenant incomes and rents to no more than 80% of the Area Median Income of the County in which the property is located.

“Restricted Rental Units” means tenant occupied units within a Qualified Residential Rental Project that are restricted to households earning 60% or less of the applicable median family income pursuant to a Bond Regulatory Agreement.

“Rural Project” means a Qualified Residential Rental Project that is a New Construction Project located in a rural area as defined by Health and Safety Code section 50199.21 but shall not include a Mixed Income Project.

“Rural Project Pool” means a reserve within the Qualified Residential Rental Project Pool that may be established by the Committee.

“Scattered Site Project” means multiple location Projects that:

• (a) except where a single existing project-based Section 8 contract is in effect that covers all locations, consist of no more than five (5) locations; and

• (b) are not contiguous except for the interposition of a road, street, stream or similar property; and

• (c) are proposed to be financed through a single pooled bond transaction; and

• (d) all locations are: (1) subject to a Residential Rental Regulatory Agreement or subject to a federal, state, or local rental or operating assistance agreement:

  • (A) within the boundaries of the same city, or

  • (B) within a 10-mile diameter circle within the same county, or

  • (C) within the same county if no location is within a city having a population of five-hundred thousand (500,000) or more; or

• (2) All projects not described within (d)(1) must be within a one (1) mile diameter.

“Standard QRRP Application” means the Application for an Allocation of the Qualified Residential Rental Project Pool titled “Application for an Allocation of the State Ceiling on Qualified Private Activity Bonds for a Qualified Residential Rental Project (QRRP)” (Revised 05-31-2018), which is hereby incorporated by reference.

“Supplemental Allocation” means the award of allocation to a Qualified Residential Rental Program Applicant for a Project that received previous Allocation.

“Supplemental Allocation Pool” means the reserve of the State Ceiling established by the Committee for supplemental allocation on Qualified Residential Rental Projects.

NOTE: Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

§ 5101. Announcement of Qualified Residential Rental Project Pools, Set-Asides, and Minimum Points.

(a) There shall exist within the Qualified Residential Rental Project Pool the following pools and set-asides:

• (1) New Construction Pool for New Construction Projects that are not Rural Projects:

  • (A) Homeless Set-Aside Projects within the New Construction Pool

  • (B) ELI/VLI Set-Aside within the New Construction Pool

  • (C) Mixed-Income Set-Aside within the New Construction

(2) Rural Project Pool for Rural Projects, not to exceed ten percent (10%) of the total Qualified Residential Rental Project Pool

• (3) Acquisition/Rehabilitation Pool

• (4) BIPOC Pool for BIPOC Projects

• (5) Supplemental Allocation Pool for Supplemental Allocation Requests

(b) As soon as practicable after the beginning of each calendar year, and before any Applications are considered, the Committee shall determine and announce what amount of the Qualified Residential Rental Project Pool shall be available in each Allocation Round to each of the Qualified Residential Rental Project Pool pools and setasides.

(c) The Committee shall establish a minimum point threshold for the New Construction, Rural, Acquisition/Rehabilitation and BIPOC Pools

(d) For the purpose of allocating bonds available under the New Construction Pool, annual apportionments of bonds shall be made in approximately the amounts shown below:

NOTE: Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.