Whenever a housing sponsor of a rental or cooperative housing development accumulates an earned surplus greater than such operating and replacement reserves as the agency may require, that surplus shall be used to reduce rents within the housing development to a level at which no person or family of low or moderate income occupying the housing development pays more than the affordable rent. Whenever a housing sponsor of a rental or cooperative housing development accumulates an earned surplus greater than such operating and replacement reserves as the agency may require and no person or family of low or moderate income occupying the housing development pays more than the affordable rent, then such surplus shall be transferred to the agency for use in lowering the rents for persons and families of low or moderate income in other housing developments to a level no greater than the affordable rents.
Cal. Health & Safety Code § 51206
Supervision of Housing Sponsors
Known as the Zenovich-Moscone-Chacon Housing and Home Finance Act
The act spans §§ 50000–54913 (995 sections).
Applied in 1 court decision — leading case 37 Cal. App. 4th 1508 - California Housing Finance Agency v. E.R. Fairway Associates I (1995)
Most recently applied in 37 Cal. App. 4th 1508 - California Housing Finance Agency v. E.R. Fairway Associates I (August 1995)
Added by Stats. 1977, Ch. 610.
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.