Low or Moderate Income Defined

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      California Health & Safety Code      
      Section 50093:

"Persons and families of low or moderate income" means
persons and families whose income does not exceed 120 percent of area
median income
, adjusted for family size by the department in
accordance with adjustment factors adopted and amended from time to
time by the United States Department of Housing and Urban Development
pursuant to Section 8 of the United States Housing Act of 1937.

However, the agency and the department jointly, or either acting with
the concurrence of the Secretary of the Business and Transportation
Agency, may permit the agency to use higher income limitations in
designated geographic areas of the state
, upon a determination that
120 percent of the median income in the particular geographic area is
too low to qualify a substantial number of persons and families of
low or
moderate income who can afford rental or home purchase of
housing
financed pursuant to Part 3 (commencing with Section 50900)
without subsidy.

   "Persons and families of low or moderate income" includes very low
income households, as defined in Section 50105, extremely low income
households, as defined in Section 50106, and lower income households
as defined in Section 50079.5, and includes persons and families of
extremely low income, persons and families of very low income,
persons and families of low income, persons and families of moderate
income, and middle-income families.  As used in this division:

   (a) "Persons and families of low income" or "persons of low income"
means persons or families who are eligible for financial assistance
specifically provided by a governmental agency for the benefit of
occupants of housing financed pursuant to this division.

   (b) "Persons and families of moderate income" or "middle-income
families" means persons and families of low or moderate income whose
income exceeds the income limit for lower income households.


   (c) "Persons and families of median income" means persons and
families whose income does not exceed the area median income, as
adjusted by the department for family size in accordance with
adjustment factors adopted and amended from time to time by the
United States Department of Housing and Urban Development pursuant to
Section 8 of the United States Housing Act of 1937.

   As used in this section, "area median income" means the median
family income of a geographic area of the state, as annually
estimated by the United States Department of Housing and Urban
Development pursuant to Section 8 of the United States Housing Act of
1937.  In the event these federal determinations of area median
income are discontinued, the department shall establish and publish
as regulations income limits for persons and families of median
income for all geographic areas of the state at 100 percent of area
median income, and for persons and families of low or moderate income
for all geographic areas of the state at 120 percent of area median
income
.  These income limits shall be adjusted for family size and
shall be revised annually.

   For purposes of this section, the department shall file, with the
Office of Administrative Law, any changes in area median income and
income limits determined by the United States Department of Housing
and Urban Development, together with any consequent changes in other
derivative income limits determined by the department pursuant to
this section.  These filings shall not be subject to Article 5
(commencing with Section 11346) or Article 6 (commencing with Section
11349) of Chapter 3.5 of Part 1 of Division 3 of Title 2 of the
Government Code, but shall be effective upon filing with the Office
of Administrative Law and shall be published as soon as possible in
the California Regulatory Code Supplement and the California Code of
Regulations.

   The department shall establish and publish a general definition of
income, including inclusions, exclusions, and allowances, for
qualifying persons under the income limits of this section and
Sections 50079.5, 50105, and 50106 to be used where no other federal
or state definitions of income apply.  This definition need not be
established by regulation.

   Nothing in this division shall prevent the agency or the
department from adopting separate family size adjustment factors or
programmatic definitions of income to qualify households, persons,
and families for programs of the agency or department, as the case
may be.
     
           

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