(a) “Rural area” for the purpose of this chapter and Sections 17058 and 23610.5 of the Revenue and Taxation Code, means an area, which, on January 1 of any calendar year satisfies any of the following criteria:

(1) The area is eligible for financing under a multifamily housing program pursuant to Section 3560.1(a)(1) of Title 7 of the Code of Federal Regulations as it read on January 1, 2023, or successor program, of the United States Department of Agriculture Rural Development.

(2) The area is located in a nonmetropolitan area as defined in Section 50090.

(3) The area is any of the following:

(A) An incorporated city having a population of 40,000 or less as identified in the most recent Report E-1 published by the Demographic Research Unit of the Department of Finance.

(B) An unincorporated area that adjoins a city having a population of 40,000 or less, provided that the adjoining unincorporated area is not located within a census tract, block group, or block designated as an urban area by the United States Census Bureau in the most recent decennial census.

(C) An unincorporated area that does not adjoin a city and is not located within a census tract, block group, or block designated as an urban area by the United States Census Bureau in the most recent decennial census.

(b) The department shall assist in determinations of eligibility pursuant to paragraph (3) of subdivision (a) upon request. With respect to areas eligible under paragraphs (2) and (3) of subdivision (a), the committee may rely upon the recommendations made by the department. Any inconsistencies between areas eligible under subdivision (a) shall be resolved in favor of considering the area a rural area. Eligible and ineligible areas need not be established by regulation.

(Amended by Stats. 2023, Ch. 40, Sec. 12. (AB 129) Effective July 10, 2023. Conditionally inoperative as provided in Section 50199.18.)