Cal. Civ. Code § 0770-03-02-.10

(1) Applicability.

(a) The provisions of this section apply to all decisions by an Owner to terminate the tenancy of a
Family residing in a unit under Contract during or at the end of the Family’s lease term.

(2) Entitlement of Families to Occupancy.

(a) General. The Owner may not terminate any tenancy except upon the following grounds:

1. Material noncompliance with the lease;

2. Material failure to carry out obligations under any State landlord and tenant act, or

3. Other good cause, which may include the refusal of a Family to accept an approved
modified lease form (see Rule 0770-3-2-.10(4)). No termination by an Owner will be
valid to the extent it is based upon a lease or a provision of State law permitting
termination of a tenancy solely because of expiration of an initial or subsequent renewal

term. All terminations must also be in accordance with the provisions of any State and
local landlord tenant law and Rule 0770-3-2-.10(3).

(b) Notice of Good Cause. The conduct of a tenant cannot be deemed “other good cause” under
Rule 07703-2-.10(2)(a)3 unless the Owner has given the Family prior notice that the grounds
constitute a basis for termination of tenancy. The notice must be served on the Family in the
same manner as that provided for termination notices under State and local laws.

(c) Material Noncompliance. The term material noncompliance with the lease includes:

1. one or more substantial violations of the lease; or

2. repeated minor violations of the lease which disrupt the livability of the building,
adversely affect the health or safety of any person or the right of any tenant to the quiet
enjoyment of the leased premises and related facilities, interfere with the management of
the building or have an adverse financial effect on the building. Nonpayment of rent or
any other financial obligation due under the lease (including any portion thereof) beyond
any grace period permitted under State law will constitute a material noncompliance with
the lease. The payment of rent or any other financial obligation due under the lease after
the due date but within the grace period permitted under State law will constitute a minor
violation.

(3) Termination Notice.

(a) The Owner must give the Family a written notice of any proposed termination of tenancy, stating
the grounds and that the tenancy is terminated on a specified date and advising the Family that it
has an opportunity to respond to the Owner.

(b) When a termination notice is issued for other good cause, the notice will be effective, and it will
so state, at the end of a term and in accordance with the termination provisions of the lease, but
in no case earlier than 30 days after receipt by the Family of the notice. Where the termination
notice is based on material noncompliance with the lease or material failure to carry out
obligations under the Tennessee Tenant Act pursuant to Rule 0770-3-2-.10 (2) (a) 1 or 2, the
time of service must be in accord with the lease and State law.

(c) In any judicial action instituted to evict the Family, the Owner may not rely on any grounds
which are different from the reasons set forth in the notice. A copy of the notice must be
furnished simultaneously to the Agency and the Agency will determine that the proposed
termination is being performed in accordance with the procedures required in this section.

(4) Modification of Lease Form.

(a) The Owner may, with the prior approval of the Agency, modify the terms and conditions of the
lease form effective at the end of the initial term or a successive term, by serving an appropriate
notice on the Family, together with the offer of a revised lease or an addendum revising the
existing lease. This notice and offer must be received by the Family at least 30 days prior to the
last date on which the Family has the right to terminate the tenancy without being bound by the
modified terms and conditions. The Family may accept the modified terms and conditions by
executing the offered revised lease or addendum, or may reject the modified terms and
conditions by giving the Owner written notice in accordance with the lease that he/she intends to
terminate the tenancy. Any increase in rent must in all cases be governed by 24 C.F.R. 882.41
and other applicable HUD regulations.

(5) Continued Assistance.

(a) Should the Family be evicted in accordance with this Section, the Agency will have no
obligation to continue assistance to the Family under the Moderate Rehabilitation Program.

Authority: T.C.A. §13-23-115(18). Administrative History: Original rule filed July 13, 1982; effective August 12,
1982.