Cal. Civ. Code § 8-37ee-802

(a) If the housing agency finds, at any time, that there is an insufficient number of least likely to apply applicants due to a lack of evidence of efforts of good faith affirmative fair housing marketing, it shall have the right to require additional marketing by the entity until such time as the housing agency determines that a sufficient effort has been expended or a sufficient number of applicants is available. Such additional marketing may delay the initial creation of a waitlist.

(b) Where the housing agency determines that sufficient evidence of good faith efforts exists and there is still an insufficient number of eligible applicants who are least likely to apply, the housing agency may permit the entity to rent or sell units or extend participation in the program administered by the entity to other eligible applicants.

(c) The housing agency’s determination of the entity’s good faith efforts shall include, without limitation, substantiating: that the dissemination of information to potential applicants included in its affirmative fair housing marketing plan was actually completed; that such efforts met time and durational requirements; that the marketing approach was amended or enhanced when found deficient; and that there were particular local, regional, or market reasons for the failure of the affirmative fair housing marketing plan to attract a sufficient pool of applicants who are least likely to apply. The entity shall develop and maintain adequate documentation of its good faith efforts in a manner prescribed by the housing agency.