California Department of Housing & Community Development Tenant Preference Policies

• Gov’t Code 7061 creates state policy supporting local tenant preferences for lower income households that are subject to displacement risk within affordable housing projects financed through low-income housing tax credits (LIHTCs) and tax-exempt private activity bonds, provided the policy is implemented and applied in a manner consistent with robust state and federal fair housing laws, including the duty to affirmatively further fair housing.

• Gov’t Code 7061 also creates a state program for local tenant preference policies to be applied to affordable housing developed with LIHTCs, per tax code. Specifically, Internal Revenue Service code requires that LIHTC developments are available for “public use,” but preferences are permitted for members of a specified group under a state program or policy that supports housing for that group.

City of National City Local Preference Policy

Purpose: It is the purpose of the Local Preference Policy to establish a meaningful way to meet local needs for affordable housing in the City of National City (“City”) and prevent displacement often caused by new developments. It is the objective of the Community Housing Commission-Housing Authority of the City of National City (CDC-HA) to ensure that residents of the City of National City are provided an opportunity to rent any CDC-HA assisted new affordable housing in the City.  The Policy explains the CDC-HA assisted new affordable housing project requirements.

Policy: The Local Preference Policy (“Policy”) requirements apply to:

(1) any CDC-HA assisted new affordable housing project (“Project”) in the City of National City;
(2) with restricted units at or below 80% of area median income, and;
(3) is subject to a term of at least 55 years.

• Applicable Projects will give preference to applicant households that are residents of the National City to the maximum extent allowed by law.  
• The Policy applies to the initial lease-up of all the restricted units in the Project. 
• Eligible tenants should be randomly selected for a unit to have an equal chance of being chosen.
• The Project shall include an Affirmative Fair Housing Marketing Plan per 24 CFR 200.610. 
• Once all initial units have been executed for the Project, the local preference shall no longer apply. 
• Projects subject to this Policy may also be subject to other preferences that take precedence, such as Low-Income Housing Tax Credits rules, tax-exempt bond rules, and any other funding-driven restrictions. 
• This Policy is subject to all FHA and related laws. Modifications shall be made as required by law. 
• The Policy is effective as of the date of the CDC-HA Board Resolution adopting the same.