51300-51311

HEALTH AND SAFETY CODE
SECTION 51300-51311




51300.  This chapter empowers the agency to designate neighborhood
preservation areas, and to enter into agreements with local agencies.
It does not limit agency powers to provide construction loans and
mortgage loans as provided in Chapter 5 (commencing with Section
51100) of this part.



51301.  The agency shall, after public hearings, establish
priorities for the allocation of financing assistance pursuant to
this chapter among eligible areas and counties and cities throughout
the state. In so doing, the agency shall take into account the
following factors, to the extent applicable:
   (a) The impact of financing assistance in upgrading substandard
residential structures to decent, safe, and sanitary condition.
   (b) The impact of financing assistance in stablilizing urban
neighborhoods and preventing or arresting the process of
deterioration.
   (c) The impact of financing assistance in effectuating the
efficient utilization of commitments of housing subsidies, thereby
increasing housing opportunities for lower income households and very
low income households.
   (d) The impact of financing assistance in complementing the local
utilization of community development funds made available pursuant to
Title 1 of the Housing and Community Development Act of 1974 (Public
Law 93-383).
   (e) The availability and feasibility of alternative means to
achieve substantially the same results as financing assistance
provided pursuant to this chapter.
   (f) The availability of efficient and effective public mass
transit service for the residents of the neighborhood assisted. Other
things being equal, preference shall be given to preserving
neighborhoods where efficient and effective public mass transit
service exists.



51302.  Upon application by a local agency supplying such supporting
information and data as the agency may require, the agency may
designate an area within a city or county as a concentrated
rehabilitation area if it makes the following findings:
   (a) The area was selected by the legislative body after citizen
participation.
   (b) The area is an area of substantial deterioration of
residential structures, as evidenced by a significant number of older
and deteriorating residential structures in such area requiring
rehabilitation.
   (c) Rehabilitation assistance is necessary to enable and encourage
residents in such area to cooperate in a local program of
concentrated enforcement of rehabilitation standards.
   (d) Rehabilitation of residential structures will arrest
deterioration in the area.
   (e) Rehabilitation of residential structures in the area is
economically feasible.
   (f) The local agency has offered to contract with the agency to
(1) provide necessary supporting neighborhood public improvements and
services, such as street improvements, landscaping and acquisition
of open space, undergrounding of utility lines, and construction of
drainage facilities in the area for which eligibility has been
requested, and (2) provide concentrated and continuing enforcement of
rehabilitation standards in such area.
   (g) The local agency has agreed to make every effort to prevent
unnecessary displacement in accomplishing rehabilitation and has an
adequate program of relocation advisory assistance for persons
unavoidably displaced due to rehabilitation.
   (h) The supply of housing available to very low income households
at affordable rents and the supply of housing available to other
persons and families of low or moderate income at affordable rents
will not be reduced within the area because those displaced will
receive relocation payments and be able to obtain standard housing in
the area. Alternatively, standard housing will be available at
affordable rents in equally desirable neighborhoods, expanding the
range of housing opportunities for minorities and lower income
households.
   (i) The local agency has adopted a housing element in compliance
with Section 65302 of the Government Code, and with housing element
guidelines, which sets forth an effective plan for systematic
enforcement of state and local building and housing standards
throughout its jurisdiction.
   (j) The application is consistent with local housing assistance
plans adopted pursuant to the Housing and Community Development Act
of 1974 (Public Law 93-383).
   (k) The local agency has satisfied such other pertinent criteria
as the agency may by regulation require.
   ( l) The local agency has investigated the current and planned
levels of public transit service for the area.



51304.  The agency may designate a mortgage assistance area, after
soliciting maximum feasible participation by community organizations,
if it makes the following findings:
   (a) It is an area (1) where deterioration has not progressed to
the stage where there is a substantial number of residential
structures which do not conform to rehabilitation standards, or (2)
where a program of concentrated code enforcement has been conducted
previously.
   (b) There is a recent history of mortgage deficiency in the area.
   (c) Agency activity in the area is likely to prevent or arrest
deterioration in the area.
   (d) Agency activity in the area is economically feasible.
   (e) Agency activity in the area will inure primarily to the
benefit of persons and families of low and moderate income.
   (f) The area was selected by the legislative body after citizen
participation.
   (g) The local agency in which the area is located has given
substantial assurances acceptable to the agency that it will provide
those supporting neighborhood public improvements and services
determined appropriate by the agency.


51305.  Upon approval of an application for designation of an area
as a concentrated rehabilitation area, the agency may, with respect
to such area, do any one of the following:
   (a) Enter into an agreement with the applicant local agency or
another local public entity for purchase by the agency of bonds and
notes issued pursuant to Chapter 3 (commencing with Section 37930) of
Part 13 of Division 24; or
   (b) Enter into an agreement with the applicant local agency or
another local public entity for a program of rehabilitation
assistance as provided in Section 51306, to be administered by the
local agency or other local public entity; or
   (c) Enter into an agreement with the local agency for a program of
rehabilitation assistance as provided in Section 51306, to be
administered by the agency, except that the agency shall make
mortgage loans only under the conditions of Chapter 5 (commencing
with Section 51100).
   In addition, or instead, the agency may provide loan insurance
assistance in such areas, which may include insurance of loans
provided pursuant to this chapter or of other loans or bonds as
provided in Part 5 (commencing with Section 51600) of this division.



51306.  Financing assistance for housing developments in
concentrated rehabilitation areas may include any or all of the
following types of loans:
   (a) Development loans to prepare for rehabilitation.
   (b) Mortgage loans for purchase of housing developments.
   (c) Construction loans for rehabilitation, or for rehabilitation
with acquisition or refinancing.
   (d) Mortgage loans for rehabilitation, or for rehabilitation with
acquisition or refinancing, where the cost of acquisition and
rehabilitation or the cost of rehabilitation without refinancing
exceeds the financial capability of the owner, or would result in
rents which are not competitive for the area, as determined by the
agency. For owner-occupied housing developments, the terms and
interest rates of such mortgage loans shall be commensurate with
ability to pay, as established by regulations of the agency.




51308.  Financing assistance may include mortgage loans for the
acquisition of housing developments and residential structures in any
mortgage assistance area, or any other neighborhood preservation
area which the agency finds to be mortgage deficient.




51310.  Relocation payments shall be made to persons and families
displaced in making a site or a residential structure available for
rehabilitation or construction financed under this chapter, and
relocation advisory assistance provided, as set forth in Section
51063. Relocation payments shall also be made to owners involuntarily
displaced because of inability to afford costs of compliance
required pursuant to this chapter.



51311.  Upon application by a local public entity the agency may
agree to allocate funds for property improvement loans or mortgage
loans for rehabilitation of residential structures or housing
developments as required in a citywide or countywide program of
systematic enforcement of rehabilitation standards. The agreement
between the local public entity and the agency shall provide for
notice to potentially affected owners and tenants and for an
opportunity for participation by them in the determination of
criteria for selection or order of selection of dwelling units to be
inspected and rehabilitated. Such assistance may be administered by
the local public entity or the agency.