Cal. Civ. Code § 6.04

(1) Amount of Rent.
              (a) Monthly rent shall be charged Tenants of elderly/disabled housing in the following
              manner:
                  1. Where the Tenant does not pay for Utilities, rent shall be 30% of monthly net
                  Household income as determined pursuant to 760 CMR 6.05.
                  2. Where the Tenant pays for some or all Utilities, rent shall be 25% of monthly net
                  Household income as determined pursuant to 760 CMR 6.05.
              (b) Monthly rent shall be charged Tenants of family housing in the following manner:
                  1. Where the Tenant does not pay for Utilities, rent shall be 32% of monthly net
                  Household income as determined pursuant to 760 CMR 6.05.
                  2. Where the Tenant pays for one or more Utilities, but not all, rent shall be 30% of
                  monthly net Household income as determined pursuant to 760 CMR 6.05.
                  3. Where the Tenant pays for all Utilities, rent shall be 27% of monthly net Household
                  income as determined pursuant to 760 CMR 6.05.
              (c) In the event the Tenant Household has been determined to be Overhoused and the
              Tenant has failed or refused to transfer to a unit of appropriate unit size offered by the LHA,
              following any such failure or refusal to transfer, the Tenant's monthly rent shall be 150% of
              the rent which would otherwise have been charged to Tenant.
              (d) An LHA may round the amount of monthly rent to the nearest whole dollar
              notwithstanding the fact that rounding upward will cause rent to slightly exceed the
              applicable percentages set out in 760 CMR 6.04(1)(a), (b) and (c).
              (e) Each Tenant Household shall pay a minimum rent of $5.00 per Household, provided that
              an LHA shall grant an exemption from application of the minimum monthly rent to any
              Tenant unable to pay such amount because of severe financial hardship, which shall include
              situations in which:

1. the family is awaiting an eligibility determination for an application for any federal,
                  state, or local assistance program;
                  2. the Tenant would be evicted as a result of the imposition of the minimum rent
                  requirements;
                  3. the income of the Tenant has decreased because of changed circumstances, including
                  involuntary loss of employment, the occurrence of a death in the Household, and such
                  other severe financial hardship situations as may be determined by the LHA.
                  LHAs shall notify Tenants of their right to seek an exemption. The exemption shall not
              apply to hardships of a temporary nature lasting 90 days or less. If a Tenant requests a
              hardship exemption and the LHA reasonably determines the hardship to be of a temporary
              nature, an exemption shall not apply to the 90 day period beginning upon the day in which
              the request for exemption is made to the LHA; provided that a Tenant may not be evicted
              during such 90 day period for nonpayment of rent. In such a case, if the Tenant thereafter
              demonstrates that the financial hardship is of a long term nature, the LHA shall retroactively
              exempt the Tenant from the applicability of the minimum rent requirements for such 90-day
              period. If a retroactive exemption does not apply, the Tenant shall make payment of the
              minimum rent within 15 days of the end of the 90-day period. Late fees shall not apply to
              minimum rent charged by the LHA while the Tenant is seeking an exemption.

           (2) Rent Payment.
              (a) Tenant shall pay rent monthly in advance on or before the first day of each month. Rent
              for any fraction of a month of occupancy at the beginning or end of the term shall be charged
              on a pro rata basis. The monthly rent shall remain in effect until a new monthly rent shall
              have been re-determined by the LHA in accordance with 760 CMR 6.04(4) or (5).
              (b) During the term while a lease is in effect the LHA shall accept as rent all payments
              which the Tenant shall have designated as rent. The acceptance of such rental payments by
              the LHA shall not constitute a waiver of payment for other amounts due or of any other past,
              present, or future obligation under the Tenant's lease. Following termination of the lease, if
              Tenant fails to vacate, Tenant shall pay monthly, in advance, the fair value of use and
              occupancy of the unit as determined by the LHA, but not less than the rent in effect at the
              time of termination, provided that if the termination is contested in court, no amount higher
              than such rent shall be charged unless and until the termination is upheld or approved by the
              court. Payment for such use and occupancy, however designated, shall not create a new
              tenancy.

           (3) Failure to Pay Rent.
              (a) In the event that a Tenant shall fail to pay all or any part of the rent within seven days
              of its due date, the LHA may declare the unpaid rent delinquent and issue a Notice of
              Termination of lease. Prior to issuing such a notice, except where the Tenant is habitually
              delinquent in paying rent and has had a prior opportunity for discussion within the prior six
              months, the LHA shall provide the Tenant with an opportunity to discuss the reason for the
              late payment.
              (b) In the event that Tenant shall fail to pay all or any part of the rent within 30 days of its
              due date, the LHA shall impose a fee in the amount of $25 for failure to pay rent when due.
              The LHA may also charge Tenant interest in accordance with applicable law and with the
              terms of Tenant's lease. If Tenant shall have shown good cause for late payment to the LHA,
              the LHA in its discretion may waive the interest or fee for late payment. If the LHA and
              Tenant shall have entered a repayment agreement the LHA may waive the interest or fee for
              late payment of the rent which is the subject of the repayment agreement. By charging
              interest or the fee for late payment of rent, the LHA shall not have condoned Tenant's breach
              of Tenant's obligation to pay rent when due, and the LHA shall not thereby waive any rights
              to issue a Notice of Termination of the lease, to bring eviction proceedings against Tenant
              and to collect arrearages, constable fees and costs on account of the Tenant's failure to pay
              rent when due.
              (c) In the event that a Tenant's failure to pay rent due results in a monetary judgment and
              execution for the LHA the LHA may seek to intercept funds which are otherwise payable by
              the Commonwealth to Tenant on or after January 1, 2005, through the Comptroller's Set off
              Debt Collection Program or successor program in the manner provided by the program and
              as may be specified in guidelines issued by EOHLC.

(4) Annual Re-determination.
              (a) The Re-determination Date. The LHA shall re-determine each Tenant's monthly rent
              once annually to be effective on a specific re-determination date which shall be the first day
              of a month. This re-determination date should be the same each year unless the LHA gives
              the Tenant reasonable advance notice of a different date no more than a year subsequent to
              the most recent notice of rent as determined by the LHA.
              (b) The Notice of Re-determination. At least 60 days prior to the re-determination date, the
              LHA shall send the Tenant written notice that rent shall be re-determined effective on the re-
              determination date and in this notice of re-determination shall request pertinent information
              as to the Household's income, employment, continued eligibility, and composition.
              (c) Response by the Tenant. Within 30 days following the date of the notice of re-
              determination, the Tenant shall provide, under pains and penalties of perjury, sufficient
              complete and accurate information for the LHA to make a reliable determination of the
              Household's income, exclusions from income, and applicable deductions.
              (d) The Re-determined Rent. No less than 14 days prior to the re-determination date, the
              LHA shall re-determine rent by computing the applicable percentage of annual net
              Household income. In general, annual net Household income shall be an annualization of
              then current monthly net Household income. However, where annualization of monthly
              income is unlikely to reflect actual annual income, the LHA may use some other method for
              determining the annual amount of income, including use of the prior year's income.
                  If within the time allotted, the Tenant shall have failed to provide sufficient, complete,
              and accurate information in order for the LHA to make a reliable re-determination of the
              Household's monthly net Household income, the LHA may make a re-determination of such
              income based on whatever reliable information which it has or may continue to use its most
              recent income re-determination. The LHA may thereafter make an adjustment of rent
              retroactive to the re-determination date, following receipt of more complete and accurate
              information.
              (e) Notice and Effective Date of the Re-determined Rent. The LHA shall give the Tenant
              no less than 14 days prior written notice of the amount of the rent to be effective on the re-
              determination date. In the event that the information provided by or on behalf of the Tenant
              shall have been incomplete or inaccurate, upon receipt of more complete or accurate
              information, in addition to its other remedies, the LHA shall appropriately adjust the rent.
              Following such adjustment, the LHA shall give the Tenant an amended written notice of the
              re-determined rent which shall be retroactively effective to the re-determination date. Each
              notice of re-determined rent shall set out the monthly gross Household income (1/12 of annual
              gross Household income) and the monthly net Household income (1/12 of annual net
              Household income) on the basis of which the re-determined monthly rent was computed.

           (5) Interim Re-determination of Rent.
              (a) Increases. If in any month the monthly gross Household income of a Tenant Household
              increases by 10% or more from the amount contained in the most recent notice of rent as
              (re)determined by the LHA, the Tenant shall report any such increase, including any changes
              in income, exclusions and deductions. The Tenant shall report the increase to the LHA by
              the seventh day of the month following the month in which the increase occurred, provided
              that if the increase was anticipated in the prior computation of gross Household income, the
              Tenant need not report the increase.
                  The LHA shall require verification of such increase in income. If as a result the amount
              of rent increases, at least 14 days before the effective date of a rent increase, the LHA shall
              give the Tenant a written notice of the re-determined rent. Any such increase in rent shall
              be made effective on the first day of a month. The notice of re-determined rent shall set out
              the monthly gross Household income and the monthly net Household income, on the basis
              of which the re-determined monthly rent was calculated.
                  In the event that a Tenant shall have failed to report such an increase in income by the
              seventh day of the month following the increase, in addition to its other remedies, the LHA,
              upon discovery that increased rent was due, shall make the effective date of the increase in
              rent retroactive to the first day of the second month following the increase in income.

(b) Decreases. If, in any month, the monthly gross Household income of a Tenant
              Household decreases, the Tenant may provide the LHA with verified information
              substantiating the decrease in gross income. Following receipt of such information, the LHA
              shall re-determine rent. The LHA shall give the Tenant written notice of any decrease in rent
              which shall be effective on the first day of the month following receipt of the information or
              at such earlier time as the LHA shall find to be warranted in the event that circumstances
              delayed receipt of verified information. The notice shall set out the monthly gross Household
              income and the monthly net Household income, on the basis of which the re-determined
              monthly rent was calculated.

           (6) Verification. The Tenant shall provide and authorize reasonable verification of information
           regarding income, exclusions from income and deductions (whether at initial determination or
           at any re-determination) in order to insure reliability of the information. For wages, interest,
           dividends, annuities, pensions or recurring lottery winnings, the Tenant shall submit copies of
           the prior year's tax reporting forms received by the Tenant (including W-2 forms, W-2G forms,
           and 1099 forms). For income from a fiduciary, the Tenant shall submit a copy of the prior year's
           K-1 form regarding such income. For self-employment income the Tenant shall submit a copy
           of the prior year's Schedule C of US Form-1040. The Tenant shall also submit copies of other
           tax reporting forms as are appropriate for other types of income.
               The LHA may also require written third party verification (verification by a reliable person
           or entity, other than the Tenant or Household Member, with knowledge of the facts) of one or
           more items of income, exclusions, or deductions in the event that the LHA finds that the
           documentation provided by the Tenant is not adequate. In such a case, the LHA may also verify
           income, exclusions, or deductions by checking with the sources. Verification of income,
           exclusions or deductions, if not complete by the rent re-determination date, may continue until
           completion. The Tenant shall assist the LHA in securing reasonable verification and shall
           promptly provide all written authorizations for such verification upon request by the LHA.
               If the LHA has reasonable cause to believe that any member of the Household is supplying
           false or incomplete information about his or her income, upon request by the LHA the Tenant
           or other Household Member shall sign an appropriate Internal Revenue Service form, to
           authorize the IRS to furnish the LHA with a copy of the first page of the prior year's US Form
           1040 filed by the Tenant or other Household Member. Information which may have been
           provided by the Department of Revenue through a wage and bank match or otherwise may be
           used for verification of income, exclusions, and or deductions.

           (7) Grievances on the Amount of the Re-determined Rent and Time for Payment. In the event
           that a Tenant files a Grievance as to the amount of a re-determined rent within 14 days of the
           LHA's notice of the re-determined rent, the Tenant shall continue to pay the rent then in effect
           (unless the re-determined rent is lower) until disposition of the Grievance. Following disposition
           of the Grievance, the Tenant shall forthwith pay any additional amounts determined to have been
           due but not paid since the effective date set out in the notice of re-determined rent or the LHA
           shall credit the Tenant with any amounts paid but determined not to have been due. In the
           absence of a Grievance, the re-determined rent shall be paid beginning on its effective date.

           (8) Nondisclosure or Misrepresentation of Income. If a Tenant shall misrepresent, fail to
           disclose, or fail to disclose in a timely manner pertinent information which would increase net
           Household income, upon request Tenant shall pay the balance of rent, which otherwise should
           have been paid. Interest on such balance may be charged in accordance with law. Such
           misrepresentation or nondisclosure without good cause shall constitute cause for termination of
           the lease and eviction of the Tenant if the consequent underpayment of rent was 10% or more
           of the monthly rent which should have been paid.

(9) Late Payments of Income. If a Tenant receives any includable income at a date later than
           the date when the income would have been paid in the normal course (such as payment of past
           due workers' compensation benefits for lost wages, past due SSI or SSDI benefits, or retroactive
           salary increases, and if such income has not been included in the determination of Household
           income), Tenant shall report receipt of the income to the LHA within seven days after receipt.
           The LHA shall charge a one time retroactive rent charge on account of any part of such income
           which in the normal course would have been paid at a time when Tenant occupied an LHA unit.
           A Tenant who receives and timely reports receipt of such income shall pay any such retroactive
           rent due on account of such income without interest upon receipt of a bill from the LHA. If
           Tenant shall fail to report such income or shall fail to make such a one time retroactive rent
           payment within 30 days of receipt of a bill, the LHA may charge interest on the additional rent
           due for the period beginning 30 days after receipt of the income at a rate of interest in accordance
           with law and the LHA's rules.