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HEALTH AND SAFETY CODE
SECTION 34310-34334

34310. An authority constitutes a corporate and politic public
body, exercising public and essential governmental functions, and
having all the powers necessary or convenient to carry out the
purposes and provisions of this chapter.


34311. An authority may:
(a) Sue and be sued.
(b) Have a seal and alter it.
(c) Have perpetual succession.
(d) Make and execute contracts and other instruments necessary or
convenient to the exercise of its powers.
(e) Make, amend, and repeal by-laws and regulations, not
inconsistent with this chapter, to carry into effect the powers and
purposes of the authority.


34312. Within its area of operation, an authority may undertake any
of the following:
(a) Prepare, carry out, acquire, lease, and operate housing
projects for persons of low income, as authorized by this chapter,
and housing developments for persons of low income, as authorized by
Part 3 (commencing with Section 50900) of Division 31.
(b) Provide for the construction, reconstruction, improvement,
alteration, or repair of all or part of any housing project.
(c) Provide leased housing to persons of low income.
(d) Provide financing for the acquisition, construction,
rehabilitation, refinancing, or development of dwelling
accommodations for persons of low income, and for other persons when
acting pursuant to the authorization contained in Part 13 (commencing
with Section 37910) of this division or Part 3 (commencing with
Section 50900) of Division 31, subject only to the limitations on
income of borrowers or residents prescribed by the statutory
provisions under which the authority is acting. With respect to
financing activities conducted pursuant to Part 3 (commencing with
Section 50900) or Part 4 (commencing with Section 51600) of Division
31, the authority shall obtain certification as a qualified mortgage
lender pursuant to Section 50094.
(e) Provide counseling, referral, and advisory services to persons
and families of low or moderate income in connection with the
purchase, rental, occupancy, maintenance, or repair of housing.
(f) Provide the security which the authority deems necessary for
the protection of a project and its inhabitants.
(g) Assist housing projects pursuant to Section 34312.3.
(h) Acquire, plan, undertake, construct, improve, develop,
maintain, and operate land on which mobilehomes or a mobilehome park
are, or may be, located, so long as not less than 20 percent of the
mobilehomes are designated for occupancy by, or are occupied by,
persons of low income. For purposes of this subdivision, "mobilehome"
has the meaning specified in Section 18008, and "mobilehome park"
has the meaning specified in Section 18214.

34312.3. (a) Subject to the requirements of this section and of
Article 5 (commencing with Section 34350), an authority may do any of
the following:
(1) Issue revenue bonds for the purpose of financing the
acquisition, construction, rehabilitation, refinancing, or
development of multifamily rental housing and for the provision of
capital improvements in connection with and determined necessary to
the multifamily rental housing.
(2) Make or undertake commitments to make construction loans and
mortgage loans to finance the acquisition, construction,
rehabilitation, refinancing, or development of multifamily rental
housing.
(3) Purchase or undertake, directly or indirectly through lending
institutions, commitments to purchase, construction loans, and
mortgage loans originated in accordance with a financing agreement
with the authority to finance the acquisition, construction,
rehabilitation, refinancing, or development of multifamily rental
housing or make loans to lending institutions under terms and
conditions which, in addition to other provisions determined by the
authority, shall require the lending institutions to use the net
proceeds of the loans for the making, directly or indirectly, of
construction loans or mortgage loans to finance the acquisition,
construction, rehabilitation, refinancing, or development of
multifamily rental housing.
(b) An authority may develop, rehabilitate, or finance housing
projects or participate in the development, rehabilitation, or
financing of housing projects; or purchase, sell, lease, own,
operate, or manage housing projects so assisted, subject to all of
the requirements of this section.
So long as the proceeds of any sale, lease, or other disposition
of real property, net of the cost of sale, are to be used directly to
assist a housing project pursuant to this section for persons of low
income, and the funds in any trust fund established pursuant to
subdivision (f) are used directly to assist housing units for persons
of very low income, an authority may, after a public hearing, sell,
lease, or otherwise dispose of the real property without complying
with any provision of law concerning disposition of surplus property,
including, but not limited to, Sections 34315.5 and 34315.7.
An authority may convey surplus lands it acquires from another
public agency to a nonprofit or private developer for development of
single-family homes where the development will provide for home
ownership for persons and families of low or moderate income, as
defined in Section 50093. This conveyance shall be after a public
hearing. With the exception of subdivisions (b), (c), and (d) of
Section 34315.7, the conveyance need not comply with any law
concerning the disposition of surplus properties, including, but not
limited to, Section 34315.5 or subdivision (a) of Section 34315.7.
The proceeds of any sale or other disposition of surplus land, net of
the cost of sale, shall be used to assist a housing project pursuant
to this section for persons of low income.
(c) (1) (A) Not less than 20 percent of all units in housing
projects assisted by an authority pursuant to this section shall be
available for occupancy on a priority basis to persons of low income.
In the case of housing projects located within a targeted area, as
defined by Section 103(b)(12)(A) of Title 26 of the United States
Code, not less than 15 percent of all units in those housing projects
assisted pursuant to this section shall be for occupancy on a
priority basis by persons of low income.
(B) If the sponsor elects to establish a base rent for units
reserved for lower income households, the base rents shall be
adjusted for household size, as determined pursuant to Section 8 of
the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), or its
successor, for a family of one person in the case of a studio unit,
two persons in the case of a one-bedroom unit, three persons in the
case of a two-bedroom unit, four persons in the case of a
three-bedroom unit, and five persons in the case of a four-bedroom
unit.
(2) (A) Not less than one-half of the units required to be
available for occupancy pursuant to paragraph (1) and financed with
any bonds issued on or after January 1, 1986, shall be occupied by,
or made available to, very low income households, as defined by
Section 50105.
(B) The rental payments for those units paid by the persons
occupying the units (excluding any supplemental rental assistance
from the state, the federal government, or any other public agency to
those persons or on behalf of those units) shall not exceed the
amount derived by multiplying 30 percent times 50 percent of the
median adjusted gross income for the area, adjusted for family size,
as determined pursuant to Section 8 of the United States Housing Act
of 1937 (42 U.S.C. Sec. 1437f), or its successor, for a family of one
person in the case of a studio unit, two persons in the case of a
one-bedroom unit, three persons in the case of a two-bedroom unit,
four persons in the case of a three-bedroom unit, and five persons in
the case of a four-bedroom unit.
(3) Any indebtedness incurred pursuant to a mortgage loan financed
under the terms of this chapter shall be subject to acceleration and
the balance owing declared immediately due and payable upon any sale
of an owner-occupied residence to a purchaser who does not meet the
required qualifications for borrowers as established by the
authority.
(4) The authority shall require the owners of housing projects
assisted pursuant to this section to accept as tenants, on the same
basis as all other prospective tenants, in the units reserved for
very low income households, any very low income households who are
recipients of federal certificates for rent subsidies pursuant to the
existing program under Section 8 of the United States Housing Act of
1937 (42 U.S.C. Sec. 1437f), or its successor. The authority shall
not permit a selection criteria to be applied to Section 8
certificate holders that is any more burdensome than the criteria
applied to all other prospective tenants.
(5) No resident in housing units assisted pursuant to this section
shall be denied continued occupancy or ownership because, after
admission, the resident's family income increases to exceed the
eligibility level. However, the authority shall ensure that
percentage requirements of this section shall continue to be met by
providing the next available unit or units to persons of low income
or by taking other actions to satisfy the percentage requirements of
this section.
(6) In determining whether the percentage requirements of
subdivision (c) have been achieved, the following terms and
conditions shall be applied:
(A) The requirement that 20 percent or 15 percent, as the case may
be, of the housing units assisted by an authority pursuant to this
section shall be available on a priority basis to, or occupied by,
households whose adjusted gross income does not exceed the applicable
limits prescribed by subdivision (c) shall apply to the aggregate
number of units assisted by an authority pursuant to this section.
(B) This section applies only to housing units first assisted
after January 1, 1983, and the percentage requirements of subdivision
(c) shall be complied with by January 1, 1986, and on January 1 of
each even-numbered year thereafter.
(C) The percentage requirements of subdivision (c) shall be
achieved within each of the following categories: (1) rental housing
developments; (2) homeownership developments; and (3) rehabilitation
financing. Housing units provided by rehabilitation financing shall
not be counted within either of the first two categories.
(d) Units required to be reserved for occupancy by subdivision (c)
and financed with the proceeds of bonds issued on or after January
1, 1986, shall remain occupied by, or made available to, those
persons until the bonds are retired.
(e) Multifamily rental housing financed pursuant to this section
shall not be subject to the requirements of subparagraph (B) of
paragraph (1) and paragraph (2) of subdivision (c), and the
requirements of subdivision (d), if all of the following requirements
are fulfilled:
(1) The housing authority offers each tenant a homeownership
opportunity when the bonds are retired.
(2) A special trust fund or account which is funded with bond
issuance proceeds or developer contributions, or both, is established
no later than the time that the multifamily rental housing is first
occupied. The initial funding of the account shall be no less than 5
percent of the face value of the bonds issued for the multifamily
rental housing project. Upon repayment of the bonds, these funds,
and all interest accruing thereon, less any amounts necessary to pay
outstanding claims, shall be used to assist housing units for persons
of very low income.
(3) The requirements of subparagraph (A) of paragraph (1) and
subparagraph (A) of paragraph (2) of subdivision (c) shall remain in
effect for the periods required by Section 103(b)(12)(B) of Title 26
of the United States Code.
(f) It is the intent of the Legislature, and the Legislature
declares, that housing authorities are the local entities with
primary responsibility for providing housing for low-income and very
low income households within their jurisdictions. However,
recognizing that housing projects only for low-income households
cannot be adequately assisted or developed with currently available
funds, and that excess funds from housing projects assisted pursuant
to this section can be utilized to further assist in the provision of
housing for lower income households, it is the intent of the
Legislature that the authorization of this section is to be used to
enhance and supplement the traditional housing authority role of
providing housing only for low-income households.

34312.4. (a) Subject to the requirements of Article 5 (commencing
with Section 34350), for purposes of implementing a home financing
program an authority has the following powers and duties:
(1) To acquire, contract, and enter into advance commitments to
acquire, home mortgages made or owned by lending institutions at the
purchase prices and upon the other terms and conditions as shall be
determined by the authority or other person as it may designate as
its agent, to make and execute contracts with lending institutions
for the origination and servicing of home mortgages and to pay the
reasonable value of services rendered under those contracts. Prior
to executing any contract with a lending institution, an authority
shall adopt regulations establishing criteria for qualification of
lending institutions eligible to originate and service home mortgages
under home financing programs authorized by this section and shall,
with respect to each home financing program, permit each qualified
lending institution which transacts business in the area of operation
of the authority the opportunity to participate in the program on an
equitable basis with other participating lending institutions.
(2) To make loans to lending institutions under terms and
conditions which, in addition to other provisions as determined by
the authority, shall require the lending institutions to use all of
the net proceeds thereof, directly or indirectly, for the making of
home mortgages in an aggregate principal amount equal to the amount
of the net proceeds.
(3) To establish, by rules or regulations, in resolutions relating
to any issuance of bonds or in any documents relating to the
issuance, standards, and requirements applicable to the purchase of
home mortgages or the making of loans to lending institutions the
authority deems necessary or desirable to effectuate the purposes of
this section, which may include without limitation any of the
following:
(A) The time within which lending institutions are required to
make commitments and disbursements for home mortgages.
(B) The location and other characteristics of homes to be financed
by home mortgages.
(C) The terms and conditions of home mortgages to be acquired.
(D) The amounts and types of any insurance coverage required on
homes, home mortgages, and bonds.
(E) The representations and warranties of lending institutions
confirming compliance with the standards and requirements.
(F) Restrictions as to interest rate and other terms of home
mortgages or the return realized therefrom by lending institutions.
(G) The type and amount of collateral security to be provided to
assure repayment of any loans from the authority and to ensure
repayment of bonds.
(H) Any other matters related to the purchase of home mortgages or
the making of loans to lending institutions deemed relevant by the
authority.
(4) To require from each lending institution from which home
mortgages are purchased or to which loans are made the submission of
evidence satisfactory to the authority of the ability and intention
of the lending institution to make home mortgages, and the
submission, within the time specified by the authority for making
disbursements for home mortgages, of evidence satisfactory to the
authority of the making of home mortgages and of compliance with any
standards and requirements established by the authority.
(b) Each authority which finances housing pursuant to this section
shall designate a person or entity to administer the program.
(c) Each authority which finances housing pursuant to this section
shall adopt regulations establishing criteria for the qualification
of persons and families, which may differ among different areas of
operation of authorities to reflect varying economic and housing
conditions. In developing this criteria, factors similar to the
following shall be taken into consideration:
(1) The amount of the income of the person or family that is
available for housing needs.
(2) The size of the household.
(3) The costs and condition of available housing.
(4) The eligibility of the persons or families for federal housing
assistance of any type.
(d) Criteria for qualification of persons and families pursuant to
this section shall include a maximum household income, which maximum
shall not exceed the following:
(1) One hundred twenty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant. Upon the resale of a home for which
financing was originally provided under this paragraph, the maximum
income of persons and families shall also be 120 percent of the
median household income.
(2) The median household income where the purchaser will not be
the first occupant. However, the authority shall ensure that no less
than one-half of the funds allocated for home mortgages where the
purchaser will not be the first occupant shall be for households
whose income does not exceed 80 percent of that median household
income. However, the authority may, by resolution, increase this
income limitation to 90 percent of median household income if the
authority finds that there are insufficient numbers of creditworthy
persons whose income does not exceed 80 percent of median household
income. The resolution is final and conclusive as to the findings
required by this paragraph.
(3) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant in any city, the entire area of which, or
in any county in which a portion of the county, is designated by the
United States Department of Commerce, Economic Development
Administration as a special impact area within a Title IV
redevelopment area, pursuant to Section 401 of the federal Public
Works and Economic Development Act of 1965, as amended, and which is
eligible for Urban Development Action Grant funds under the current
distress standards established for cities and counties by the
Secretary of the United States Department of Housing and Urban
Development pursuant to Section 119 of the Housing and Community
Development Act of 1974, if the homes purchased or improved are
situated within the boundaries of a special impact area as defined by
the Economic Development Administration, and that designation is in
effect on the date of sale of revenue bonds issued under this
section.
As used in this subdivision, "median household income" means the
highest of (A) statewide median household income, (B) countywide
median household income, or (C) median family income for area as
determined by the United States Department of Housing and Urban
Development, with respect to either a standard metropolitan
statistical area or an area outside of a standard metropolitan
statistical area.
(e) Each authority which finances housing pursuant to this section
shall allocate no less than 60 percent of the dollar amount of its
financing from bond proceeds to fund loans for the purchase of homes
where the purchaser will be the first occupant, or for substantial
rehabilitation. As used in this section, "substantial rehabilitation"
means rehabilitation in which the costs of rehabilitation equal or
exceed 20 percent of the value of the structure after rehabilitation.

(f) Each authority which finances housing pursuant to this section
shall require each mortgagor under the program to certify his or her
intention to occupy the home for a minimum of two years after
receiving a home mortgage, with appropriate exceptions in hardship
cases, as determined by the authority.
(g) Notwithstanding Section 711 of the Civil Code, any
indebtedness incurred pursuant to a mortgage financed under the terms
of this section shall be subject to acceleration and the balance
owing declared immediately due and payable upon the sale of the home
to a purchaser who does not meet the required qualifications for
borrowers of subdivision (c) or any more stringent qualifications as
the authority may require.
(h) Each authority may do any and all things necessary to carry
out the purposes and exercise the powers expressly granted by this
part.


34312.5. (a) An authority may provide leased housing to persons of
low income throughout the county in which it operates, except:
(1) No commitment to provide leased housing outside the area of
operation may be made in advance of construction without approval of
the local governing body of the city or, if an unincorporated area,
the county with jurisdiction of the site of construction; and
(2) Leased housing may not be provided within the area of
operation of another authority if the local governing body of the
other authority disapproves in advance.
(b) An authority may contract with the redevelopment agency of any
city within the county to exercise its powers in the city pursuant
to a contract with the redevelopment agency funded from the
redevelopment agency's Low and Moderate Income Housing Fund for the
purpose of increasing or improving the city's supply of low- and
moderate-income housing.

34312.6. The same notice requirements as specified in Section
65863.10 of the Government Code shall apply to multifamily rental
housing that receives financial assistance pursuant to Section
34312.3.


34312.7. (a) (1) When refunding revenue bonds for multifamily
housing which were previously issued pursuant to Section 34312.3, the
authority shall ensure that rental units required, by this chapter
or by applicable federal law at the time the original bonds were
issued, to be reserved for occupancy for low- and very low income
households shall remain occupied by, or made available to, those
persons at least until the later of the following:
(A) The date originally so required.
(B) As long as any bonds remain outstanding with respect to the
development.
(2) For bonds previously issued to finance a development where all
of the units, other than management units, are, at the time of the
refunding, subsidized by a housing assistance payments contract for
new construction and substantial rehabilitation pursuant to Section 8
of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f),
subparagraph (B) of paragraph (1) shall mean a period of time until
the termination of the contract.
(b) The authority may determine that the period set forth in
paragraph (1) of subdivision (a) shall not apply to the refunding of
previously issued revenue bonds for which there is a mandatory
redemption or acceleration as a result of default under the terms of
the existing loan agreement or other security documents.

34313. Except where there existed on September 15, 1945, contracts
for financial assistance between a housing authority and the Federal
Government, no low-rent housing or slum-clearance project shall be
developed, constructed, or owned by an authority after September 15,
1945, except after consultation with the school district in which the
project is located, and until the governing body of the county or
city in which it is proposed to develop, construct, or own the
project, proves it by resolution.

34314. An authority may arrange or contract for the furnishing by
any person or agency, public or private, of services, privileges,
works, or facilities for, or in connection with, a housing project,
or a project assisted pursuant to Section 34312.3, or the occupants
thereof. Notwithstanding anything to the contrary contained in this
chapter or in any other law, an authority may include in any contract
let in connection with a project stipulations requiring that the
contractor and any subcontractors comply with requirements as to
minimum wages and maximum hours of labor and any conditions which the
federal government has attached to its financial aid of the project.

34315. An authority may:
(a) Lease or rent any dwellings, houses, accommodations, lands,
buildings, structures, or facilities embraced in any housing project,
or a project assisted pursuant to Section 34312.3, and establish and
revise the rents or charges for them.
(b) Own, hold, and improve real or personal property.
(c) Purchase, lease, obtain option upon, acquire by gift, grant,
bequest, devise, or otherwise, any real or personal property or any
interest in property.
(d) Acquire any real property by eminent domain.
(e) Sell, lease, exchange, transfer, assign, pledge, or dispose of
any real or personal property or any interest in it.
(f) Insure or provide for the insurance of any real or personal
property or operations of the authority against any risks or hazards.

(g) Lend upon the security of a mortgage or deed of trust,
directly or by purchase from one or more qualified mortgage lenders,
in connection with the sale of real property to persons of low income
and to other persons pursuant to Section 34312.3, moneys for the
financing of construction or rehabilitation pursuant to this part, or
the implementation of government housing and rehabilitation
financing programs for persons of low income and for other persons
when acting pursuant to authorization contained in Section 34312.3,
Part 13 (commencing with Section 37910) of this division, or Part 3
(commencing with Section 50900) of Division 31, subject only to the
limitations on income of borrowers or residents prescribed by the
statutory provisions under which the authority is acting. With
respect to financing activities conducted pursuant to Part 3
(commencing with Section 50900) or Part 4 (commencing with Section
51600) of Division 31, the authority shall obtain certification as a
qualified mortgage lender pursuant to Section 50094.
(h) Procure insurance or guarantees from the federal government or
the California Housing Finance Agency or from any person licensed to
insure mortgages in this state of the payment of all or part of any
debts, whether or not incurred by the authority, secured by mortgages
or deeds of trust on any property included in any of its housing
projects or otherwise financed pursuant to this chapter or secured by
mortgages or deeds of trust pursuant to Part 13 (commencing with
Section 37910) of this division or Part 3 (commencing with Section
50900) of Division 31.

34315.3. An authority may accept financial or other assistance from
any public or private source, and expend any funds so received for
the purposes of this chapter and the activities permitted to
authorities by state law, including leased housing.


34315.5. An authority may transfer real property not needed by the
authority to a fire protection district for fire protection purposes
without consideration if the board determines that such transfer is
necessary or desirable to effectuate the purposes of the authority.

34315.7. Real property owned by an authority which the authority
determines is not required for its foreseeable needs and which is not
transferred pursuant to Section 34315.5, shall be disposed of for
the following purposes, in descending order of priority:
(a) For the purposes, and in accordance with the provisions, of
Article 10 (commencing with Section 50568) of Chapter 2 of Part 1 of
Division 1 of Title 5 of the Government Code.
(b) To public, nonprofit, or private developers for development of
housing for persons and families of low and moderate income, as
defined by Section 50093. Such transfers may not be made at a cost
below the housing authority's acquisition cost but may be made at a
cost below market value if (1) not less than 30 percent of the
housing units to be developed will be enforceably restricted for
occupancy by persons and families of low and moderate income, with at
least 50 percent of the housing units restricted to persons and
families of low income, and (2) a transfer at below market value is
necessary to assure that the housing units restricted for occupancy
by persons and families of low or moderate income will be provided at
affordable housing cost, as defined by Section 50052.5.
(c) To private developers, generally, at market value for
development of housing.
(d) For any purpose, where the sale is at public auction to the
highest bidder.
The Department of Housing and Community Development shall adopt
regulations governing disposal of surplus real property of housing
authorities pursuant to subdivisions (b) and (c). The regulations
shall include requirements for providing public notice of a housing
authority's intent to dispose of real property in accordance with
this section and shall also specify other reasonable requirements to
implement the priorities established by this section.
The deed or other instrument of conveyance shall recite that the
authority has determined the property is not required for its
foreseeable needs and it is being disposed of pursuant to this
section and, if the property is disposed of pursuant to subdivision
(b) or (c), in accordance with regulations adopted by the Department
of Housing and Community Development. Such recital shall be
conclusive in favor of purchasers and encumbrancers for value.
Failure to comply with the provisions of this section shall not
invalidate any right, title or interest acquired by a purchaser or
encumbrancer for value.

34316. An authority may:
(a) Invest any money held in reserves or sinking funds, or any
money not required for immediate disbursement, in property or
securities in which commercial banks may legally invest money subject
to their control.
(b) Purchase its bonds at a price not more than their principal
amount and accrued interest; all bonds so purchased shall be
canceled.


34316.1. The provisions of Article 2 (commencing with Section
53630) of Chapter 4 of Part 1 of Division 2 of Title 5 of the
Government Code shall apply to the deposit of funds of an authority.
Where the term "treasurer" is used in such article, it shall mean
"housing authority" or the official designated by it to act
hereunder, and where the term "local agency" is used in such article,
it shall mean "housing authority."

34316.2. An authority may deposit the money of the authority with
the county treasurer. The county treasurer shall deposit those funds
in the county treasury and disburse them upon warrants of the county
auditor issued at the request of the authority.
The county may require the authority to reimburse the county for
any expenses incurred by the county in performing any of the services
required to be performed by the county by this section.

34316.5. The proceeds of bonds issued pursuant to this part to
finance housing as provided in subdivision (d) of Section 34312,
Section 34312.3, and subdivision (g) of Section 34315 and revenues
accruing to the authority on account of such a program may be
invested in any securities or obligations authorized by the
resolution providing for issuance of the bonds or authorized by its
trust indenture, when the bond proceeds or revenues are not
immediately required to provide financing under the program. Such
investments may include mortgage obligations on single-family
dwellings purchased from a state or federally chartered bank or
savings and loan association pursuant to a repurchase agreement under
which the bank or savings and loan association will repurchase the
mortgage obligation on or before a specified date and for a specified
amount, provided that the mortgage or the repurchase agreement shall
be insured by a mortgage insurance company licensed to insure
mortgages in the State of California and qualified to provide
insurance on mortgages purchased by the Federal Home Loan Mortgage
Corporation or the Federal National Mortgage Association.
The authority provided in this section is additional and
alternative to any other authorization for investment contained in
this part or other provisions of law.

34317. Within its area of operation, an authority may:
(a) Investigate into living, dwelling, and housing conditions and
into the means and methods of improving such conditions.
(b) Determine where slum areas exist or where there is a shortage
of decent, safe, and sanitary dwelling accommodations for persons of
low income.
(c) Make studies and recommendations relating to the problem of
clearing, replanning, and reconstructing of slum areas, and the
problem of providing dwelling accommodations for persons of low
income, and cooperate with the city, the county, the State or any of
its political subdivisions in action taken in connection with such
problems.
(d) Engage in research, studies, and experimentation on the
subject of housing.

34318. Acting through one or more commissioners or other person or
persons designated by it, an authority may:
(a) Conduct investigations, hear testimony, and take proof under
oath at public or private hearings on any matter material for its
information.
(b) Administer oaths, issue subpenas requiring the attendance of
witnesses or the production of books and papers, and issue
commissions for the examination of witnesses who are outside of the
State, unable to attend before the authority, or excused from
attendance.
(c) Make available to appropriate agencies, including those
charged with the duty of abating nuisances or like conditions or of
demolishing unsafe or insanitary structures within its area of
operation, its findings and recommendations with regard to any
building or property where conditions exist which are dangerous to
the public health, morals, safety, or welfare.

34319. An authority may exercise all or any part or combination of
powers granted in Sections 34311 to 34318, inclusive.

34320. No law concerning the acquisition, operation, or disposition
of property by other public bodies is applicable to an authority
unless the Legislature specifically so states.

34320.5. An authority shall provide relocation assistance and shall
make all of the payments required by Chapter 16 (commencing with
Section 7260) of Division 7 of Title 1 of the Government Code,
including the making of such payments financed by the federal
government.
This section shall not be construed to limit any other authority
which an authority may have to make other relocation assistance
payments, or to make any relocation assistance payment in an amount
which exceeds the maximum amount for such payment authorized by
Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of
the Government Code.


34321. It is declared to be the policy of the State that each
authority shall manage and operate its housing projects in an
efficient manner so as to enable it to fix the rentals for dwelling
accommodations at the lowest possible rates consistent with its
providing decent, safe, and sanitary dwelling accommodations, and
that no housing authority shall construct or operate any such project
for profit, or as a source of revenue to the city or the county. To
this end an authority shall fix the rentals for dwellings in its
projects at no higher rates than it finds necessary to produce
revenue which, together with all other available money, income, and
receipts of the authority, will be sufficient for all of the
following:
(a) To pay, when due, the principal and interest on its bonds.
(b) To meet the cost of, and to provide for, maintaining and
operating the projects, including the cost of any insurance, and the
administrative expenses of the authority.
(c) During not less than the six years immediately succeeding its
issuance of any bonds, to create a reserve sufficient to meet the
largest principal and interest payments which will be due on such
bonds in any one year thereafter and to maintain the reserve.
However, this subdivision shall not be construed to prevent an
authority from utilizing any financial aid from the federal
government to the maximum extent available.
This section shall not apply to any person, individual, firm,
partnership, company, association, joint stock association or
corporation other than a public entity having an interest in any
housing project owned in part or constructed or operated by one or
more authorities.

34322. Except as provided by Section 34312.3, in the operation or
management of housing projects, an authority shall:
(a) Rent or lease the dwelling accommodations only to persons of
low income and only at rentals within their financial reach.
(b) Rent or lease to a tenant dwelling accommodations consisting
of the number of rooms which it deems necessary to provide safe and
sanitary accommodations to the occupants, without overcrowding.
(c) Fix income limits for occupancy and rents after taking into
consideration (1) the family size, composition, age, physical
handicaps, and other factors which might affect the rent-paying
ability of the person, and (2) the economic factors which affect the
financial stability and solvency of the project.
(d) Prohibit subletting by tenants.

34322.2. Each authority shall adopt and promulgate regulations
establishing a plan for selection of applicants to assure equal
opportunity and nondiscrimination on grounds of race, color, or
national origin. The plan shall include standards for eligibility,
procedures for prompt notification of eligibility or
disqualification, and procedures for maintaining a waiting list of
eligible applicants for whom vacancies are not immediately available.
Eligible applicants shall be offered available vacancies in order
of application, subject to the following:
(a) Preference categories shall be established to give priority to
persons displaced by public or private action.
(b) Priority shall be given within each preference category to
families of veterans and servicemen.
(c) The authority may establish occupancy standards, offering
available units only to families of appropriate size.
(d) The authority may further limit the offering of available
units to families of appropriate qualifications in order to comply
with state or federal law or regulations, or contractual agreements
with governmental agencies pursuant to such law or regulations.
(e) An applicant may reject, or refuse to promptly occupy,
suitable units at two different locations and still be entitled to
the next available suitable unit.
Nothing in this section shall prevent an authority from suspending
processing of applications of persons of low income unlikely to be
offered units within two years, or requiring annual renewal of
applications, or honoring its obligations to persons of low income
determined to be qualified prior to January 1, 1976.

34322.5. No authority shall require occupants of any project to be
citizens of the United States, provided, however, that in the event
there are insufficient housing units to accommodate the number of
applicants for such units, the authority may give preference to
citizens of the United States.

34323. Nothing contained in Sections 34321 and 34322 shall be
construed as limiting the power of an authority to vest in an obligee
the right, in the event of a default by the authority, to take
possession of a housing project, cause the appointment of a receiver
for it, or acquire title to it through foreclosure proceedings, free
from all the restrictions imposed by such sections.

34324. Any two or more authorities may join or co-operate with one
another in the exercise either jointly or otherwise, of any or all of
their powers for the purpose of financing, including, but not
limited to, the issuance of bonds, notes, or other obligations and
giving security therefor, or planning, undertaking, owning,
constructing, rehabilitating, or operating, or entering into any
contract with respect to, any housing project or projects or other
dwelling accommodations located within the area of operation of any
one or more of such authorities. For any such purpose, one authority
may provide by resolution that another authority with which it has
joined or is co-operating in the exercise of powers is authorized to
act on its behalf with respect to any or all of the powers, as its
agent or otherwise, in its name, the name of such other authority, or
in the names of the authorities which have joined or are
co-operating.


34325. An authority may acquire by eminent domain any real property
which it deems necessary for its purposes under this chapter. Real
property belonging to the city, the county, the state, or any of its
political subdivisions shall not be acquired without its consent.

34326. All housing projects are subject to the planning, zoning,
sanitary, and building laws, ordinances, and regulations applicable
to the locality in which the housing project is situated. In the
planning and location of any housing project, an authority shall take
into consideration the relationship of the project to any larger
plan or long-range program for the development of the area in which
it functions.

34327. An authority may:
(a) Borrow money or accept grants or other financial assistance
from the federal government for or in aid of any housing project
within its area of operation.
(b) Take over, lease, or manage any housing project or undertaking
constructed or owned by the federal government.
(c) Borrow money or accept grants or other financial assistance
from the state or any of its political subdivisions to assist in
providing housing and housing services within its area of operation.

(d) For these purposes, comply with such conditions and enter into
any mortgages, trust indentures, leases, or agreements necessary,
convenient, or desirable.
It is the purpose and intent of this chapter to authorize every
authority to do any and all things necessary or desirable to secure
the financial aid or cooperation of the federal government in the
undertaking, construction, maintenance, or operation of any housing
project by an authority and to secure the financial aid and
cooperation of the state in providing housing and housing services
within its area of operation.


34327.3. County public housing agencies may apply for, process, and
distribute, to the extent that federal funds are available, housing
certificates issued pursuant to Section 8 of the United States
Housing Act of 1937 (Sec. 1437 et seq., Title 42, U.S.C.) to families
deemed eligible pursuant to Section 16517 of the Welfare and
Institutions Code.

34327.5. Whether or not the type, amount, and manner of expenditure
of any funds received by an authority from the Federal Government,
or any funds derived from such funds, are in accordance with the law
or contract under which the funds were received, or any applicable
federal regulations, shall be matters to be determined exclusively by
the federal agency. This section is not intended, and shall not be
construed, to prohibit prosecution and conviction of violation of any
law of this State.

34327.6. All funds of housing authorities not subject to audit by a
federal agency shall be audited at least once each year at the
expense of the housing authority by a certified public accountant or
a public accountant holding a valid permit issued by the California
Board of Accountancy. Audits made by a certified public accountant,
or a public accountant, together with a final balance sheet and
operations statement for the year for all authority funds, shall be
filed for record purposes with the Department of Housing and
Community Development. The authority shall prepare and file with the
Department of Housing and Community Development a budget for the
year for which the audit is taken with each audit prepared or
submitted pursuant to this section.

34328. At least once a year, an authority shall file with the clerk
of the respective city or county and with the Department of Housing
and Community Development a report of its activities for the
preceding year. This report shall contain information adequate for
the city, county, or department to determine that the requirements of
Section 34312.3 have been met for any activity undertaken pursuant
to that section. An authority shall make either directly or through
any national, regional, or state housing association or organization
of which it may be a member, recommendations with reference to
additional legislation or other action which it deems necessary to
carry out the purposes of this chapter, to the respective legislative
bodies having jurisdiction thereof.

34328.1. Every housing authority shall file on the first day of
October of each year with the Department of Housing and Community
Development a complete report of its activities during the previous
fiscal year, with recommendations for needed legislation to carry on
properly a program of housing and community development in
California.
The authority shall provide the Department of Housing and
Community Development funds as requested by the department to
reimburse the department for the cost of processing the report
required by this section.


34328.2. The mayor or any member of the governing body of the city
in the case of a city authority or any member of the governing body
of the county in the case of a county authority shall not have any
direct or indirect interest in any housing project or in any property
included or planned to be included in any project, nor shall such
persons have any direct or indirect interest in any contract or
proposed contract for materials or services to be furnished or used
in connection with the construction, repair, or maintenance of any
housing project. Nothing contained in this section shall prevent the
authority from accepting the lowest bid on a bid contract.
This section has no application to contracts awarded to
corporations in which any such person owns less than 1 percent of the
entire capital stock.

34330. An authority shall have the power to:
(a) Assist in relocating in suitable housing accommodations at
rentals within their means persons of low income who have been or
will be deprived of dwellings within areas or buildings which have
been or will be cleared or demolished. In connection with any
project, an authority shall maintain or provide for the maintenance
of tenant placement service in which there shall be recorded lists of
untenanted, suitable dwellings available to persons of low income
and shall furnish such information to such persons. An authority
shall from time to time make studies and surveys of dwelling units
which may become unoccupied and available to persons of low income
and shall also make arrangements with owners and lessors of such
dwellings for registration thereof with the tenant placement service.
In connection with any project, an authority may pay so much of the
necessary cost of removal of persons of low income, and of business
or commercial tenants, from the area or buildings to be cleared for
the development of the project to suitable locations in such cases
and in such amounts as may be approved by the authority. Removal
costs so paid by an authority shall be included in the project cost.

(b) Exercise the powers set forth in subdivision (a), in
connection with the relocation of persons of low income who are
displaced by any public or private improvement within its area of
operation. The financing of such relocation activities by an
authority shall be arranged by contract with the public or private
agency undertaking the improvement which makes such relocation
necessary.
(c) Admit to a dwelling in any project of the authority any person
or persons residing in an area or building to be cleared or
demolished as described in subdivision (a) or (b), if the probable
aggregate annual income of such person or persons does not exceed the
income limit for continued occupancy established by the authority
for the dwelling to which such person or persons is admitted.

34331. In the operation or management of housing projects an
authority shall not do any of the following:
(a) Evict any tenant without reasonable cause and unless the
tenant has been given a written statement of such cause.
(b) Directly or indirectly subject any tenant to any punitive
action of any kind because of his membership or activity in any
tenant organization.
(c) Require that a tenant, in a lease or rental agreement, waive
his rights under Section 1942 of the Civil Code, or any other rights
as a tenant he might have under California or federal law.
(d) Disclaim liability for injury as a result of its negligence or
failure to repair, in any rental agreement or lease.
(e) Terminate or refuse to renew a lease because a tenant has
complained to any governmental authority of a possible violation of
any building code, health ordinance, or similar regulation or has
attempted lawfully to redress his grievances against the authority.
(f) Hold any tenant liable for property damage for which a private
tenant would not be liable.
(g) File an eviction action for property damage before a decision
has been reached by a grievance panel, if the tenant has requested a
grievance hearing.

34332. An authority shall do all of the following:
(a) Expressly covenant in all of its leases and rental agreements
to repair the premises to comply with all building ordinances
effective at the time of construction of the unit being leased or
rented as to which it has not received an exception from the county
or city in which the unit is situated pursuant to Section 34513 and
not affected by a resolution adopted pursuant to Section 34517.
(b) Within each managed structure of four or more dwelling units
with one or more common entrances, except leased housing, post notice
that a copy of all its leasing and occupancy policies, regulations
and procedures is at each housing project office for inspection
during regular business hours.
(c) Make available public documents and records of the authority
for inspection, except any applications for eligibility and occupancy
which are submitted by prospective or current tenants of the
authority.
(d) Make an inspection of the premises before a tenant moves in
and allow the tenant or prospective tenant the opportunity to examine
the record of inspection.
(e) Hold all of its public meetings at a time convenient to most
tenants and in a public room large enough to accommodate the persons
who may reasonably be expected to attend. Any person may speak at
such a meeting, if such person informs the authority at any time
before the meeting begins that he desires to speak.
(f) Within each managed structure of four or more dwelling units
with one or more common entrances, except leased housing, post notice
of the schedule of regular meetings of the commissioners and of the
posting of changes in schedule and of summary agendas in housing
project offices.
(g) At each project office post a copy of all its leasing and
occupancy policies, regulations and procedures, and post a notice of
each meeting of the commissioners together with a summary agenda for
the meeting at least three days in advance of each meeting.
Unintentional or unavoidable failure to post, or changes in the
agenda, shall not affect the validity of the proceedings.
(h) Distribute as an addendum to its lease form notice of the
availability of: (1) leasing and occupancy policies, regulations and
procedures, (2) notices of meetings, and summary agendas (3)
grievance procedures, (4) any available written translations into
languages other than English of notices, records, or documents
required by this section to be posted or made available to tenants,
and (5) any oral translation services available to tenants not
speaking, reading, or understanding English.

34333. Any attempted waiver in any lease or rental agreement
entered into by the authority of any of the rights granted tenants as
against the authority by Sections 34331 and 34332 shall be void as
against public policy.


34334. No responsibility of a private landlord of leased housing,
or duty of a housing authority to impose a responsibility upon a
private landlord of leased housing, shall be implied from Section
34331 or 34332.

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