Cal. Health and Safety Code § 51304

The agency may designate a mortgage assistance area, after soliciting maximum feasible participation by community organizations, if it makes the following findings: (a) It is an area (1) where deterioration has not progressed to the stage where there is a substantial number of residential structures which do not conform to rehabilitation standards, or (2) where a program of concentrated code enforcement has been conducted previously. (b) There is a recent history of mortgage deficiency in the area. (c) Agency activity in the area is likely to prevent or arrest deterioration in the area. (d) Agency activity in the area is economically feasible. (e) Agency activity in the area will inure primarily to the benefit of persons and families of low and moderate income. (f) The area was selected by the legislative body after citizen participation. (g) The local agency in which the area is located has given substantial assurances acceptable to the agency that it will provide those supporting neighborhood public improvements and services determined appropriate by the agency.