6. Ensuring Properties Remain Low-Income

Section 2866(e)(2) requires the Commission to establish conditions on the installation of SWH systems to ensure that the properties remain low-income residential properties for at least 10 years from the time of installation. Although the LIEE option creates a pathway to participation for single-family homes based on income criteria, it does not ensure the homes receiving incentives remain occupied by low-income residents.

For those applicants whose properties meet the definition of low-income residential property in Section 2861(e), they will by definition remain dedicated to low-income residents. For those applicants that receive low-income SWH incentives solely because they are participating in a Commission-approved gas corporation LIEE program, we will require the PAs to obtain a signed commitment from the applicant that the property will remain a low-income residential property for 10 years from the time of installation of the SWH system. The PAs should create an affidavit or other suitable form that applicants will sign in order to be eligible for incentives. The affidavit should provide information that the property meets one of the following conditions, which are currently used in the SASH program to verify eligibility:

· a documented resale restriction between the homeowner and a public entity or a qualifying nonprofit affordable housing provider;

· a documented equity sharing agreement for which the homeowner does not receive a greater share of equity than described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code, between the homeowner and a public entity or a qualifying nonprofit affordable housing provider;

· a presumed resale restriction that exists because the residence is located in an enterprise zone, including Targeted Employment Areas, as determined by the California Department of Housing and Community Development;

· a presumed resale restriction that exists because the property is located in an area that was included in a neighborhood revitalization strategy as part of the local municipality's consolidated community development plan filed with the federal Department of Housing and Urban Development.