CCLME.ORG - DIVISION 1. HOUSING AND COMMUNITY DEVELOPMENT
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On each occasion that the property is improved, a new value for E shall be determined by applying the formula. The value of E thus determined will be used as E 1 the next occasion on which improvements are made. The amount to which the household shall be entitled on sale or termination of state financial assistance shall be the sale price or fair market value multiplied by the value of E at the time of sale or termination.
(2) Where the improvements made do not increase the value of the dwelling but bring the dwelling into conformance with local and state building or housing standards, the adjustment for improvements under Section 7914(c) (4) and (d) (5) shall be calculated in accordance with Section 7928(c), except that the value for "R" shall be the actual costs of improvements as supported through receipts, plus the cost to the recipient of an appraisal.
(c) Improvements shall not be the basis for a readjustment of the proportional amounts to which the Department and recipient are entitled upon sale of an assisted unit unless the costs to the recipient of making such improvements is at least five hundred dollars ($500.00).
(d) Whenever there is an adjustment to the proportional amounts to which the Department and recipient are entitled upon sale, the servicer of State loans shall ensure that a record of such an adjustment is kept and shall forward a copy to the Department and the governmental agency.


Note: Authority cited: Sections 50406, 50776 and 50777, Health and Safety Code. Reference: Sections 50776 and 50777, Health and Safety Code.








s 7928. Partial Repayment.
(a) A purchaser of property assisted under the Program may repay a portion of the financial assistance provided by the state and increase its equity in the property if:
(1) the State requires or approves such partial repayment;
(2) no more than one partial repayment is made within any period of twelve (12) months; and

(3) such partial repayment is not less than one thousand dollars ($1,000).
(b) Where a purchaser wishes to increase its equity in the assisted property, the entitlements of the purchaser and the Department respectively shall be calculated in accordance with the following formula:


E = (V x E R) + R
---------------
V


E is the proportion of the value of the property to which the purchaser is entitled after partial repayment V is the value of the property at the time of the partial repayment E R is the proportion of the value of the property to which the purchaser is entitled immediately before the partial repayment is made R is the amount of the partial repayment plus the cost to the recipient of an appraisal
On each occasion that a partial repayment is made, a new value for E shall be determined by applying the formula. The value of E thus determined will be used as E R the next occasion on which a part repayment is made or as the proportion of the purchaser's equity in the property at sale or transfer. The amount to which a household shall be entitled on sale or termination of state financial assistance shall be the sale price or fair market value multiplied by the value of E at the time of sale or termination.
(c) Whenever there is an adjustment to the proportional amounts to which the Department and purchaser are entitled upon sale, a servicer of State loans shall keep a record of such an adjustment and shall forward a copy to the Department and governmental agency.


Note: Authority cited: Section 50406, Health and Safety Code. Reference: Sections 50775, 50776 and 50777, Health and Safety Code.










s 7930. Determination of Fair Market Value.
(a) For the purpose of the Program, "fair market value" means the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no compulsion to do so; and a buyer, being ready, willing and able to buy but under no compulsion to do so; each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available, as set forth in Section 1263.320 of the California Code of Civil Procedure.
(b) The fair market value of assisted property shall be determined by an appraisal or other method expressly approved in advance by the Department. The appraisal shall be conducted by an appraiser accredited with one of the major testing and certifying appraisal societies, including the society of Real Estate Appraisers, the American Society of Appraisers and the American Institute of Real Estate Appraisers.
(c) Any appraisal shall be documented on a form specified by the Department.


Note: Authority cited: Section 50406, Health and Safety Code. Reference: Sections 50775, 50776 and 50777, Health and Safety Code.








s 7932. Maximum Purchase Prices.
(a) The Committee may by resolution adopt maximum purchase prices for converted rental units, and mobilehomes on permanent foundations not located within mobilehome parks.
(b) In adopting such maximum purchase prices, the Committee may take into account:
(1) the need to make the optimum use of Program funds by providing financial assistance to as many households as possible;
(2) the extent to which the beneficiaries of financial assistance under the Program are able to obtain financing and make loan or other necessary payments with respect to housing assisted under the Program;
(3) comparative land and housing costs in the region and locality for which the financial assistance is proposed; and
(4) such other matters as the Committee considers appropriate.


Note: Authority cited: Section 50406, Health and Safety Code. Reference: Section 50775, Health and Safety Code.








s 7934. Affirmative Marketing Plan.
(a) Governmental agencies, stock cooperative corporations, and nonprofit corporations shall be responsible for development and implementation of an affirmative marketing plan to attract eligible purchasers of all minority and non-minority groups to participate in the Program. One purpose of this plan is to assure that any group (s) or persons normally not likely to apply for the housing without special outreach efforts (due to sales prices, existing neighborhood racial or ethnic patterns, and/or other factors) are made aware of the availability of financial assistance, encouraged to apply, and have the opportunity to purchase using financial assistance under this Program.
(b) The plan shall set out the minimum number of households to receive financial assistance under this Program with incomes below eighty (80) percent and between eighty (80) and one hundred (100) percent of the median for the county; the methods and media for advertising the availability of assistance under the Program; names of community groups/organizations located in the housing market area which the governmental agency will establish and maintain contact with as part of its outreach efforts; and any other efforts the applicant is proposing to attract eligible households to participate in the Program.
(c) The requirements of this Section shall not apply to a duly constituted government body of an Indian reservation or rancheria.


Note: Authority cited: Section 50406, Health and Safety Code. Reference: Sections 50775, 50776 and 50777, Health and Safety Code.








s 7936. Recertification of Eligibility.
(a) Except where assistance is provided to a nonprofit corporation or stock cooperative corporation, a servicer of State loans shall be responsible for recertifying household eligibility and reevaluating the need for State assistance. Total or partial repayment to the state shall be required if the ratio of current housing costs to the purchaser's current gross monthly income has decreased by more than ten (10) percentage points below that ration which existed at the time of purchase of the assisted unit. Total repayment shall be required if the purchaser has acquired residential real property in addition to the property being assisted under the Program.
(b) The amount and method of repayment shall be determined jointly by the servicer of State loans and purchaser. Absent agreement by both parties, repayment shall not result in the proportion of the purchaser's income applied towards total monthly housing costs, exceeding that proportion in existence at the time of purchase. Repayment for the purpose of this section shall be conducted in accordance with Section 7928.
(c) The recertification and reevaluation shall be conducted every five (5) years until the State is either totally repaid or the assisted property is sold or its title transferred, whichever comes first. During the initial five (5) year period an additional review shall be conducted at the end of the second year.


Note: Authority cited: Section 50406, Health and Safety Code. Reference: Sections 50775, 50776 and 50777, Health and Safety Code.








s 7938. Foreclosure.
(a) Whenever a notice of default and intent to sell an assisted dwelling unit is issued pursuant to Civil Code Section 2924 alleging that a recipient has defaulted in performing its obligations under the agreements required by Section 7914, the recipient shall be notified in writing of its right to contest the grounds for declaring such a default in a hearing before the Department.
(b) The notice of right to a hearing shall be issued concurrently with the issuance of a notice of default. The notice of right to a hearing shall include a form prescribed by the Department which the recipient shall use to notify the Department of its intention to contest the basis for declaring a default. The notice of hearing shall provide as follows:
(1) it shall require the recipient to specify in the prescribed form the grounds upon which the recipient relies in disputing the alleged default;
(2) it shall specify a date by which the prescribed form must be postmarked or returned to the Department and must allow the recipient at least fourteen (14) days to respond; and
(3) it shall specify that if the prescribed form is not received or postmarked by the specified date, the recipient shall have waived its right to a hearing before the Department.
(c) Upon receipt of a request for a hearing, the Department shall immediately notify the recipient of the date set for the hearing. The notice of hearing shall be mailed at least fourteen (14) days prior to the date set for the hearing and shall inform the recipient of the following;

(1) the date, time and place for the hearing;
(2) the right of the recipient to present at the hearing any evidence or arguments in support of its position;
(3) the right of the recipient to examine or copy, at the recipient's expense, all documents, records, and regulations relating to the disputed default;
(4) the right to be represented by counsel or other person chosen by the recipient as its personal representative; and
(5) the right of the recipient to submit its evidence and arguments in writing prior to the hearing date in lieu of a personal appearance at the hearing.
(d) The hearing shall be conducted informally by the General Counsel of the Department or the General Counsel's designee. The following procedures shall govern hearings before the Department:
(1) The recipient shall be given the opportunity to confront or examine and controvert all witnesses and documents upon which the claimed default is based. The opportunity to confront a witness is not required where both parties have expressly agreed in writing that the appearance of such a witness is unnecessary.
(2) Oral or documentary evidence relevant to the facts and issues raised by the recipient may be received without regard to admissibility under judicial rules of evidence, but with appropriate regard to credibility, authenticity, relevance and materiality.
At the conclusion of the hearing the General Counsel shall review all the evidence and arguments presented and, within seven (7) days thereafter, shall prepare a tentative ruling on the issue of default which shall be submitted to the Director for a final determination.
(e) In the event a recipient fails to appear at a hearing, the Department may decide that the recipient has waived its right to a hearing and the General Counsel may proceed to make his/her findings and recommendation to the Director.
(f) After receipt of a tentative ruling, the Director shall review the record of the proceedings and the findings of the General Counsel and shall decide whether the recipient has defaulted in its obligations and whether the notice of default shall be rescinded.
(1) If the Director finds there is no default by the recipient, the notice of default shall immediately be rescinded and the contested action to foreclose terminated.
(2) If the Director finds that the recipient has defaulted in performance of its obligations under Section 7914:
(A) the notice of default shall remain effective and the action to foreclose shall continue; or
(B) the Director, in his/her discretion, may permit the recipient to cure its default and have the notice of default rescinded.
(g) The provisions of this section shall not apply to any mortgage lender making loans to recipients in conjunction with the State, but not utilizing the same note and deed of trust as the State is using to secure its loan. Where the State and a mortgage lender are making a joint mortgage loan utilizing the same note and deed of trust this section shall be applicable, except that the Director may not exercise his/her discretion under subdivision (f)(2)(b) when the recipient has defaulted in its obligation to make payments on the mortgage lender's portion of the assisted loan or defaulted in its obligation to make required tax and insurance payments in connection with the assisted unit and the mortgage lender will not agree to permit the recipient to cure.


Note: Authority cited: Section 50406, Health and Safety Code. Reference: Sections 50775, 50776 and 50777, Health and Safety Code.








s 7950. Definitions.
"Allowable costs" mean expenditures for eligible activities. See Section 7961.
"Capital Development Grant" means a grant of up to $150,000 from the EHAF made to defray costs of capital development activities such as the acquisition, construction, conversion, expansion, reconstruction or rehabilitation of real property or the purchase of equipment for emergency shelter or transitional housing where the combined cost of these activities at a single site exceeds $20,000. See section 7966.
"Client" is the person or household provided client housing or rental assistance funded by a program grant.
"Client housing" is the general term used in these regulations to describe emergency shelter, transitional housing, or vouchers provided to the client to meet emergency or transitional housing needs pursuant to this subchapter.
"Construction" means building a new structure, or expanding an existing structure, which will provide emergency shelter and/or transitional housing.
"Construction or service contractor" refers to the parties with whom a grantee contracts for construction services or equipment.
"Conversion" means the alteration of nonresidential space within an existing structure to create space for emergency shelter and/or transitional housing.
"Day" means calendar day.
"Department" means the California Department of Housing and Community Development.
"Director" means the Director of the Department of Housing and Community Development.
"DLB" is the acronym for "designated local board" which is a group, including social service providers and a representative of local government, that has met Department requirements for distribution of grants allocated by the Department pursuant to chapter 11.5 of the Health and Safety Code. See section 7952.
"EHAF" is the acronym for the "Emergency Housing and Assistance Fund established by section 50800.5 of the Health and Safety Code.
"EHAP" is the acronym for the "Emergency Housing and Assistance Program" established by Health and Safety Code section 50800.
"Eligible activities" mean those activities upon which program funds may be expended. See section 7961.
"Eligible organization" means an agency of local government or a nonprofit corporation that provides, or contracts with community organizations to provide, emergency shelter or transitional housing, or both. See section 7959.
"Emergency shelter" means housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person and that is not withheld due to a client's inability to pay.
"Grant" or "program grant" means a grant of monies from the Emergency Housing and Assistance Fund.
"Grantee" is the recipient of a grant, who enters into a Standard Agreement with the Department to provide specified eligible activities.
"Interested party or parties" means, for Department or DLB purposes, anyone who has informed the Department or the DLB, respectively, that they wish to receive information concerning the Department's or the DLB's EHAP activities and shall include any person who has spoken at a meeting of the Department or the DLB regarding EHAP or communicated in writing with the Department or the DLB concerning its EHAP activities during the prior year.
"LESS" is the acronym for "local emergency shelter strategy," a planning and evaluation document which is developed for a region by a DLB and which provides the basis for the selection of grantees and for monitoring subsequent grantee activities. See section 7955.
"Local organization" is the local group eligible to apply to the Department for designation as a DLB. See sections 7952 and 7953.
"Milestone" means a measurable objective toward the achievement of the project or program goals.
"NOFA" is the acronym for a "notice of funding availability" described in section 7958.
"Nonurban county" means any county with a population of less than 200,000, as published in the most recent edition of Population Estimates of California Cities and Counties, E-1, prepared by the Department of Finance, Population Research Unit.
"Operating Facility Grant" means a grant of up to $50,000 in program funds made to defray costs of eligible activities including facility operations and administration, residential rental assistance, leasing or renting rooms for provision of temporary shelter, and up to $20,000 per site in capital development-type activities, as described in Health and Safety Code section 50803 and in section 7963.
"Program" means the Emergency Housing and Assistance Program (EHAP).
"Rank" means the order of eligible applications for funding based only on the rating established pursuant to the applicable grant selection criteria.
"Rating" means the process by which eligible applications are evaluated and given an overall numerical or relative value based on the numerical or relative value(s) assigned to each of the identified selection criteria described in the NOFA to which the applicant is responding.
"Reconstruction" means replacing an existing structure with a structure of similar size and type, which will be used to provide emergency shelter and/or transitional housing.
"Region" means a county or a consortium of counties voluntarily banding together by action of a designated local board.
"Rehabilitation" means making repairs or improvements to a building necessary to correct substandard conditions as defined by section 17920.3 of the Health and Safety Code. As used in these regulations, rehabilitation may include reconstruction or conversion.
"RTE" is the acronym for "responsible technical entity", an entity determined by the Department to have the expertise in housing construction and development necessary to make determinations about the feasibility of a proposed capital development project for which program funding is sought. See section 7954.
"Site" means a given parcel or contiguous parcel(s) of land, generally distinguished by a tax assessor's parcel number(s), developed or to be developed with emergency shelter and/or transitional housing.
"Transitional housing" means housing with supportive services that is limited to occupancy of up to 24 months that is exclusively designated and targeted for recently homeless persons. Transitional housing includes self-sufficiency development services, with the ultimate goals of moving recently homeless persons to permanent housing as quickly as possible, and limits rents and service fees to an ability-to-pay formula reasonably consistent with the United States Department of Housing and Urban Development's requirements for subsidized housing for low-income persons.
"Urban county" means any county that is not a "nonurban county."


Note: Authority cited: Sections 50402, 50801.5 and 50806.5, Health and Safety Code. Reference: Sections 50800 through 50804.5, Health and Safety Code.








s 7951. Program Organization and Administration.
(a) Applications for program funds shall be solicited through NOFAs. The Department shall issue a Statewide NOFA and DLBs shall issue regional NOFAs as described in section 7958.
(b) The Department shall designate local boards, pursuant to the process described in section 7953, which shall solicit and review applications and select grantees from among eligible applications in their region.
(c) A DLB's activities shall be based upon the provisions of its LESS.
(d) The Department shall review applications and select grantees for those regions without DLBs.
(e) The activities of grantees shall be monitored pursuant to section 7975 to ensure compliance with the provisions of this subchapter and the standard agreement.
(f) Should a new federal homeless program be enacted by the federal government and be administered by the Department, for efficiency of operations the Department may administer EHAP to complement the new federal program.


Note: Authority cited: Sections 50402, 50800(c), 50801.5 and 50806.5, Health and Safety Code. Reference: Sections 50802(c), 50802.5 and 50804, Health and Safety Code.








s 7952. Designated Local Board.
(a) A region shall have no more than one DLB at any time.
(b) The membership of the DLB shall be representative of the local community, as described in section 7953(d).
(c) Upon designation by the Department pursuant to section 7953 each DLB shall prepare or amend its LESS pursuant to sections 7955 and 7956 and approved by the Department pursuant to section 7956.
(d) A DLB shall be responsible for the selection of operating grant(s) within the region and shall monitor the subsequent performance of each grantee.
(e) A DLB shall be responsible for the selection of capital development grants only if the DLB has obtained from the Department a designation as an "RTE", pursuant to the requirements of section 7954.
(f) A DLB shall not initiate the local grant selection process until the Department has approved the DLB's LESS for the funding period.
(g) In the event of the termination of designation or the failure of the DLB to obtain approval of the LESS as required, the Department shall assure the continuation of EHAP funding to the region by issuing a separate regional NOFA and evaluating the subsequent applications pursuant to subsections 7967(b) and (c).
(h) A DLB shall comply fully with the requirements of the California Public Records Act (Government Code sections 6250 through 6267) and the Bagley-Keene Open Meeting Act (Government Code sections 11120 through 11132.)
(i) A DLB shall notify the Department of any change in its membership. Within thirty days of the announced resignation of a DLB member, the DLB shall select a replacement member who ensures that the DLB's membership continues to represent the local community.
(j) Pursuant to its evaluation of a DLB per section 7976, the Department may place conditions on a designation in order to correct any deficiencies in the performance of a DLB.


Note: Authority cited: Sections 50402, 50801.5 and 50806.5, Health and Safety Code. Reference: Sections 50801(b), 50801.5(a) and 50804, Health and Safety Code; and Section 11121.2, Government Code.








s 7953. Local Board Designation Process.
(a) In order to apply for designation as a DLB, a local organization shall submit to the Department a written application containing the information identified in subsection (b).
(b) The written application for designation shall include the following information:
(1) The membership of the local organization;

(2) The address of the local organization;
(3) The proposed regional boundaries;
(4) An explanation of each potential member's experience and expertise relevant to program activities;
(5) The demonstrations and certifications required by section 7954, if applicable;
(6) An explanation and supporting documentation of how the requirements of subsections (c) and (d) will be or have been met, including proof of publication of notice pursuant to subsection (c)(1); and
(7) The certifications required by subsection (e).
(c) The local organization shall provide notice of the application for designation as a DLB to the public within the region and shall invite the public to submit comments to the Department about the application pursuant to all of the following:

(1) Notice shall be provided through publication in at least one newspaper of general circulation in each county in the region.
(2) Notice shall be mailed to all interested parties.
(3) Notice shall be provided prior to submittal of the application.
(4) The notice shall provide the name, address, and telephone number of a person the public can contact for further information.
(5) The notice shall provide the public with thirty days within which to submit comments to the Department about the application.
(6) The thirty-day comment period shall begin the day after the notice is mailed or the day after the notice is published, whichever is later.
(d) The membership of the local organization and of the subsequent DLB shall be representative of the local community, and shall:
(1) Provide a range of community representation and expertise; and

(2) Represent such interests as shelter providers, local funding agencies, public officials, private industry, mental health groups, law enforcement, the courts, planning agencies, social services, and homeless advocates.
(e) Within its application to the Department for designation, the proposed DLB shall certify in writing that it:
(1) Accepts responsibility for the distribution and re-distribution of funds allocated to the region;
(2) Will monitor grantee performance;
(3) Will comply with all requirements of this subchapter;
(4) Will provide any data or information required by the Department for the evaluation of the performance of the DLB; and
(5) Will comply with and enforce the conflict of interest restrictions set forth in subsection (f).
(f) No individual, including DLB staff and any DLB subcommittee member, participating in determining eligibility, feasibility, readiness, rating or ranking of grant applications shall be a board member, an officer, employee, or agent of any eligible organization applying for funds nor have any financial interest in any eligible organization applying for funds.
(g) Within fifteen days of the receipt of an application for designation, the Department shall notify the applicant in writing if the application is incomplete and identify the information and/or certifications that are missing.
(h) Within thirty days of the receipt of a complete application, the Department shall provide the applicant with written notice as to whether the local organization has received the Department's designation as a DLB. If an applicant has not received designation, the written notice shall provide each specific reason for not designating the local organization as a DLB.
(i) The Department shall withdraw the designation of a DLB if the activities of the DLB do not comply fully with the requirements of this subchapter.
(1) The Department shall provide the DLB with written notification of the withdrawal of designation and of the effective date of the withdrawal. The written notification shall identify each compliance issue upon which the withdrawal of designation is based.
(2) If a former DLB chooses to protest the Department's decision to withdraw designation and/or the findings upon which the decision was based, the DLB shall submit a written petition for a hearing to the Department, within fifteen days of the date of the Department's written notification.
(3) The petition shall request a hearing and shall provide a clear, concise statement of the reasons the hearing is being requested, the information and/or activities under discussion, and the remedy sought by the former DLB.
(4) Within fifteen days of the date the petition is received by the Department, the Department shall schedule a hearing and shall provide the petitioner with written notice of the date, time and place of the hearing. The date of the hearing shall be within forty-five days of the date of the Department's written notification of the withdrawal of designation and no sooner than ten days after the date of the hearing notice.
(5) The hearing shall provide the petitioner with the opportunity to be heard and to show cause why the withdrawal of designation should be modified or repealed.

(6) Within fifteen days of the hearing, the Department shall provide the petitioner with a written decision that repeals, modifies, or sustains the Department's decision to withdraw designation. The written decision shall respond specifically to each issue commented upon by the petitioner.
(j) A former DLB shall surrender custody of all program records, including applications, correspondence, and related documentation, to the Department within seven days of the effective date of the Department's withdrawal of designation, or at the conclusion of the appeal process when it maintains the Department's decision to withdraw the designation.


Note: Authority cited: Sections 50402, 50801.5 and 50806.5, Health and Safety Code. Reference: Sections 50801(b) and 50801.5(a), Health and Safety Code.








s 7954. Responsible Technical Entity.
(a) The following types of entities are eligible to demonstrate to the Department for designation as an RTE compliance with the requirements of subsections (d) through (g):
(1) A DLB;
(2) A Local government entity;
(3) A nonprofit corporation; and

(4) A private, for-profit entity.
(b) In order to be designated as an RTE and be responsible for the selection of capital development grants, a DLB shall:
(1) Demonstrate to the Department that the DLB membership meets the requirements of an RTE as set forth in subsections (d) through (g); or
(2) Provide the certification required by subsection (h) that the DLB has delegated feasibility determinations involving capital development grants to an entity which has demonstrated to the Department that it meets the requirements of an RTE as set forth in subsections (a) and (d) through (g).
(c) The demonstration shall consist of written evidence of compliance with the requirements of subsections (a) and (d) through (g) and written certification by the proposed RTE of acceptance of these requirements.
(d) An RTE shall have direct experience with the development of emergency shelter and/or transitional housing projects in the region, whether new construction, conversion, or rehabilitation. Staff persons committed to the task shall cumulatively possess experience and expertise in construction, real estate, finance, and the development of housing projects.
(e) An RTE shall commit to assist the DLB with the selection of capital development projects for funding by determining the feasibility and readiness of the projects proposed in all eligible capital development grant applications.
(f) For the purpose of reviewing, ranking, or selecting applications for funding, each member of the RTE or DLB subcommittee shall comply with subsection 7953(f).
(g) An RTE shall commit to provide the DLB with advice about project acquisition, construction and/or rehabilitation, during capital development grant monitoring and close-out activities.
(h) Where separate entities, the RTE and the DLB shall each certify in writing to a statement which delegates to the RTE the responsibilities stated in subsections (d) through (g).
(i) The demonstrations and certifications required by this section shall be provided with the local organization's application for designation as a DLB. The timeframes for the Department's review shall be the same as those provided in subsections 7953(g) and (h).
(j) If a DLB enters into an agreement pursuant to subsection (h) with an entity other than the original RTE approved by the Department, the entity shall apply for Department approval pursuant to the requirements of this section. The new entity shall not participate in review and selection activities of the DLB until the Department provides written notice of approval of the entity as an RTE.
(k) In regions with no RTE, or where an RTE fails to complete its duties pursuant to this subchapter, the Department shall receive, review and select all applications for capital development grants.


Note: Authority cited: Sections 50402, 50801.5 and 50806.5, Health and Safety Code. Reference: Section 50802.5(c), Health and Safety Code.








s 7955. Local Emergency Shelter Strategy.
Each LESS shall include:
(a) An assessment of the needs within the region for client housing.
(b) A summary of the existing resources available within the region to meet the needs identified pursuant to subsection (a). To the extent practical, the summary shall identify each existing program by the type and amount of client housing provided, and the geographical area served.
(c) A statement of the regional goals for addressing the identified client housing needs not met by existing resources.
(d) A description of each local priority and restriction that will be placed on the distribution of program funds including:
(1) The anticipated apportionment of the local county allocation between operating facility grants and capital development grants;
(2) Each category of client housing for which the local distribution of funds may have a priority or a restriction (for example, emergency shelter rather than transitional housing);
(3) Any other restrictions that may be placed on grant applications, such as a minimum or maximum grant level or a limit on the number of grants that will be funded.
(e) A description of the grant application process, including:
(1) The anticipated schedule for the solicitation, receipt, review and selection of applications;

(2) The procedures for notifying potential applicants of the availability of funds and the eligibility requirements;
(3) The procedures that will apply to the submission of applications;
(4) A list of the anticipated documentation, in addition to that required by section 7960, that will be required for each application;
(5) A description of all technical assistance available to applicants;
(6) The procedures for determining applicant and application eligibility pursuant to the requirements of sections 7959, 7960, and 7961;
(7) The procedures for reviewing, rating, ranking and selecting eligible applications for grant awards;
(8) The process for awarding funds to eligible applicants in accordance with the requirements of section 7967;
(9) Where applicable, the process for DLB selection of capital development grants, including the process of RTE participation where the RTE is a different entity than the DLB, and including the provisions of sections 7966 and 7967;
(10) The procedures, including those required by section 7967, for providing applicants with notice of whether their respective applications were selected for funding;
(11) The anticipated process for the redistribution of any unawarded funds.
(f) The procedures that will be employed to ensure that the activities of the DLB are conducted in an open, fair and competitive manner including procedures for:
(1) Providing adequate public notice of the activities of the DLB, by, for example, publishing notices in newspapers of general circulation, posting notices in designated places, and mailing notices to interested parties who have requested such information; and
(2) Providing notice to all interested parties no less than ten days in advance of each scheduled meeting or hearing, in accordance with Government Code sections 11120 through 11132.
(g) A description of the local process for applicants to appeal grant selection or other DLB activities, in a fair manner and in accordance with the requirements of section 7968 and including:
(1) The timeframes for each step of the process, which cumulatively ensure the timely consideration of the petition and which do not exceed the timeframes set in subsection 7968(a);
(2) Who will make the initial determination on an appeal; and
(3) How an appellant can make a subsequent appeal to the Department for review of local determinations involving DLB procedures.
(h) The procedures that will be followed by the DLB, and the RTE, if applicable, to monitor and evaluate the performance of grantees including:
(1) Monitoring grantee progress in relationship to established milestones;
(2) Procedures for monitoring the execution and completion of grant contractors and scheduled draw-down of program funds;

(3) Procedures for the periodic review of grantee expenditures to ensure compliance with the requirements for the use of program funds;
(4) Periodic review of each grantee's record-keeping effort;
(5) Any local grantee reporting requirements.
(i) The following attachments:
(1) The mailing list of service providers that has been and will be used by the DLB to provide notice as required throughout this subchapter;
(2) A copy of the DLB's latest application for designation including the certifications required by subsection 7953(e);
(3) Copies of application forms and any other documents that the DLB will require for use or will use to determine eligibility, to evaluate applications and/or to select applications for funding;
(4) A summary of the region's awards for the prior funding round(s), including who was funded, and for what amounts and activities.

(5) A copy of the current written notice of designation issued to the DLB by the Department, pursuant to section 7953;
(6) A copy of the most recent DLB evaluation performed by the Department pursuant to section 7976;
(7) Agreements and conditions regarding the RTE, where applicable;
(8) A summary of all public meetings held pursuant to section 7956(b), including copies of the notices published and mailed; and
(9) A copy of all written comments submitted regarding the LESS and a summary of all oral comments received during the public meetings, and a summary of the DLB's responses to the public comments received.


Note: Authority cited: Sections 50402, 50801.5 and 50806.5, Health and Safety Code. Reference: Sections 50802.5, 50803.5 and 50804, Health and Safety Code.










s 7956. Local Emergency Shelter Strategy Preparation, Review and Approval Process.
(a) Each DLB shall submit two copies of its proposed LESS or LESS amendments to the Department for approval no later than the first day of September each year unless otherwise notified in writing by the Department.
(b) Prior to submitting the LESS to the Department, the DLB shall conduct at least one noticed public meeting within each county within the region. During each meeting, the DLB members shall explain the contents of the proposed LESS and shall provide an opportunity for and shall receive public comments about the contents of the LESS.
(c) The Department shall review each LESS to ensure that it includes all the information required pursuant to this section and section 7955, and that it demonstrates that the DLB process will be open, fair, and competitive.
(d) Within thirty days of the receipt of a request to approve a LESS, the Department shall notify the DLB in writing if the request is incomplete, pursuant to the requirements of this section and section 7955, and identify the specific information that is missing or needs clarification.
(e) Within twenty days of the date of the Department's notice, the DLB shall provide the requested information.
(f) Within 30 days after receipt of a complete LESS per section 7955, the Department shall provide the DLB with a written determination of the result of the Department's review of the LESS.
(1) The Department's determination shall be one of the following:
(A) Approved,

(B) Approved with conditions, or
(C) Disapproved.
(2) For a determination other than an approval pursuant to subsection (f)(1)(A), the Department's written notice shall explain each of the reasons for the determination.
(g) If a LESS is not approved, or is approved with conditions, the DLB may revise the LESS and resubmit it with a request for the Department's approval no later than fifteen days after the date of the Department's notice of non-approval.
(h) An amendment to an approved LESS may be prepared subject to the following requirements and procedures:
(1) The DLB's request for the Department's approval of a LESS amendment shall include a written statement providing the reasons why the LESS must be amended, and justification for the terms of the proposed amendment.

(2) Where policy or procedural changes are proposed, the DLB shall propose the amendment pursuant to the meeting requirements listed in subsection (b) and shall include in its request for approval the information listed in section 7955(i)(8) and (9).
(3) Within thirty days of the receipt of a complete amendment submittal, the Department shall provide the DLB with a written determination of whether the amendment is:
(A) Approved,
(B) Approved with conditions, or
(C) Disapproved.
(4) With the exception of a determination that approves an amendment as provided in subsection (h)(3)(A), the Department's written determination shall include a detailed explanation of the reasons for the determination.
(i) In any case where the LESS or any provision thereof conflicts with the program statute or regulations, the statute or regulations, respectively, prevail.


Note: Authority cited: Sections 50402, 50801.5 and 50806.5, Health and Safety Code. Reference: Section 50804, Health and Safety Code.








s 7957. Allocation and Distribution of Funds.
(a) The allocation to urban counties shall not exceed eighty percent of the funds available each fiscal year. Urban county allocations shall be based solely upon the following two factors:
(1) The ratio of: the number of persons in the urban county living below the poverty line to the total number of persons living below the poverty line in all urban counties of the State according to the most recent federal census, updated, if possible, with an estimate by the California Department of Finance; and

(2) The ratio of: the number of persons unemployed in the urban county to the total number of persons unemployed in all urban counties of the State based on the most recent one-year period for which data is available.
(b) Each allocation to an urban county shall be determined based upon the sum of the urban county's ratios as calculated per subsection (a).
(1) All urban counties shall be ranked in the order of the highest ratio sum to the lowest ratio sum, and urban counties with equal ratio sums shall be grouped.
(2) A minimum allocation of $10,000 shall be made available to each urban county within the group with the lowest ratio sum.
(3) Each ratio sum, other than the lowest sum, shall be converted to a percentage, with the sum of the percentages equaling 100%.
(4) Following the deduction of the minimum allocations from the funds available, the balance of the funds shall be divided into groups in proportion to the percentages determined by the calculation required by subsection (b)(3).

(5) The amount of funds available to each group shall be allocated in equal proportions to each of the urban counties within the group.
(c) The allocation to nonurban counties shall not be less than twenty percent of the funds available each fiscal year. Nonurban regional allocations shall be based solely upon the following two factors:
(1) The ratio of: the number of persons in the nonurban county living below the poverty line to the total number of persons living below the poverty line in all nonurban counties of the State according to the most recent federal census, updated, if possible, with an estimate by the California Department of Finance; and
(2) The ratio of: the number of persons unemployed in the nonurban county to the total number of persons unemployed in all nonurban counties of the State, based on the most recent one-year period for which data is available.
(d) Each allocation to a nonurban county shall be determined based upon the sum of the nonurban county's ratios for persons living below the poverty line and for persons unemployed as calculated per subsection (c).

(1) All nonurban counties shall be ranked in the order of the highest ratio sum to the lowest ratio sum, and nonurban counties with equal ratio sums shall be grouped.
(2) A minimum allocation of $10,000 shall be made available to each nonurban county within the group with the lowest ratio sum.
(3) Each ratio sum, other than the lowest sum, shall be converted to a percentage, with the sum of the percentages equaling 100%.
(4) Following the deduction of the minimum allocations from the funds available, the balance of the funds shall be divided into groups in proportion to the percentages determined by the calculation required by subsection (d)(3).
(5) The amount of funds available to each group shall be allocated in equal proportions to each of the nonurban counties within the group.
(e) If two or more counties form a consortium under a DLB, the total allocation for that subsequent region shall be the sum of the individual county allocations available as described in the Statewide NOFA. Each county shall receive its respective share of the allocation in client housing and/or rental assistance.
(f) The Department may designate, the eligible use(s) for which a specified allocation of funds is restricted when:
(1) The original source of the funds allocated to the Department restricts the use of those funds (e.g., bond funds for capital development); or
(2) The Department identifies a particular Statewide need among eligible activities and facilities for funding; or
(3) The total allocation to the Department for program use is less than the amount needed to fund the minimum allocation of $10,000 per county.
(g) The Department shall provide a written explanation of the necessity for designating the eligible use of a specific allocation. This explanation shall appear in the NOFA issued by the Department for the specific allocation, pursuant to section 7958.
(h) The allocation term is two years, beginning the date the Department issues the Statewide NOFA for the specific allocation.
(i) At the end of the two-year allocation term, any allocation balance not encumbered shall be returned to the Emergency Housing and Assistance Fund for allocation as part of the next Statewide NOFA.
(j) For any county without a DLB, when there are no applicants, the allocation balance will revert to the EHAF and be allocated as part of the next Statewide NOFA.
(k) The minimum grant is $10,000 except as follows:
(1) For counties with an allocation greater than $20,000, one grant less than $10,000 may be awarded if necessary to fully utilize the county's allocation.
(2) For counties with an allocation of up to $20,000, up to two grants of less than $10,000 may be awarded.
(l) The maximum grant amounts are as stated in sections 7963 and 7966, or, for regions with a DLB, such lesser amounts as a DLB has established in its approved LESS.


Note: Authority cited: Sections 50402, 50801.5 and 50806.5, Health and Safety Code. Reference: Sections 50802 and 50802.5(a), Health and Safety Code.








s 7958. Notices of Funding Availability.
(a) A Statewide or regional NOFA is the document issued by the Department or the DLB, respectively, which notifies all interested persons,
(1) That the program has been allocated funds;
(2) The types and amounts of funds available for specified eligible activities;
(3) That the funds will be distributed to eligible applicants through a competitive process;

(4) The specified minimum and maximum grant amount(s) consistent with this subchapter, and, for regional NOFAs, with the LESS:
(5) The specified timeframes which apply to the application and grant selection processes, including the deadline for filing of applications;
(6) That copies of EHAP's governing statutes and regulations can be obtained from a contact person whose name, address and telephone number are provided; and
(b) In addition to the items listed in subsection (a), a Statewide NOFA shall include:
(1) A list of the allocations available to each county;
(2) Identification of the counties for which the Department shall receive and review eligible applications, select applications for grant awards, and fully monitor the performance of grantees;
(3) The name, address and telephone number of a contact person within the Department, who can provide further information and the application package for counties the Department will serve;
(4) Identification of the regions and corresponding counties for which DLBs shall receive and review eligible applications, select applications for grant awards, and monitor the subsequent performance of grantees; and (continued)