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HomeMy WebLinkAboutHousing & Redevelopment Authority Resolution 10HOUSING AND REDEVELOPMENT AUTHORITY CITY OF PLYMOUTH Pursuant to due call and notice thereof, a Regular meeting of the Housing and Redevelopment Authority of Plymouth, Minnesota was held on the _ h day of December 19_L6. The following members were present: The following members were absent: Chairman Hilde Commiss ne Sr& -c t introduced the following Resolution and moved its adoption: Housing and Redevelopment Authority Resolution #10 ADOPTING A LEASING AND OCCUPANCY POLICY FOR 50 UNITS OF SECTION 8 HOUSING FOR THE PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY WHEREAS, the Housing and Redevelopment Authority of the City of Plyiflo+!th has made . application for 50 units of Section 8 Existing Housing for the purpose of providing low and moderate income persons with suitable housing; and WHEREAS, the HUU Local Area Office hes tentatively approved the Plymouth Housing and Redevelopment Authority Section 8 application; and WHEREAS, one requirement for fulfilling the HUD administrative and statutory requirements is the adoption o` a Leasing and Occupancy Policy for the local Section 8 program; NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF PLYMOUTH, MINNESOTA that the City of Plymouth's Housing and Redevelopment Authority Staff administer the local.Section 8 program consistent with the Leasing and Occupancy Policy as attached hereto. The motion for the adoption of the Commissioner 0gilA following vote n favor thereo Seibold and Spaeth foregoing Resolution was duly seconded by and upon vote being taken thereon, the Acting Chairman Hunt- rQMj3jWnnersfle7_ Whereupon the Resolution was declared duly pas n • Housing Section 8 PL1lMM HOUSING & ,IEDEVEIDPHIff AUnI01111Y REGUINHONS ESTABLIS14ING ADMISSION & OCCUPANCY P01jCIES TABLE OF CO TENTS Part I Determination of Eligibility . . . . . . . . Page(s) 1.-4 Part II Selection of Families . . . . . . . . . . . Page(s) 4-5 Part III Schedule of Gross Family Contributions . . . Page(s) 5-6 Part IV Finders -Keepers" Policy . . . . . . . . . . Page 6 Part V Lease Approval . . . . . . . . . . . . . . . Page 6 Part VI Re-examination . . . . . . . . . . . . . . . Page(s) 6-7 Part VII Ineligible and Over -Income Families. . . . . Page 7 Part VIII Verification of Applicants' Statement: and Income . . . . . . . . . . . . . . . . . . . 1'age(s) 7-8 Part IX Occupancy Standards . . . . . . . . . . . . . Page 8 Part X Misrepresentations . . . . . . . . . . . . . Page 9 Part XI Review and Amendment of Policies . . . . . . Page 9 Part XII Utility Allowance Schedule . . . . . . . . . Page 9 Part XIII Fair Market Rents for Plymouth Page 9 0 Revised .7-6-78 I. DETERMINATION OF ELIGIBILITY. To be eligible for admission an applicant must • meet t e- following requirements: A. The applicant must qualify as a family. A family consists of: 1. two or more persons who have a family -type relationship, or 2. a single person who is: a. eligible, by age, to receive an old age benefit under Title II of the Social Security Act, or b. handicapped within the meaning of Section 202 of the Housing Act of 1959, or c. displaced by urban renewal or other governmental action, or d. disabled within the meaning of Section. 223 of the Social Security Act. A handicapped person is one who has a physical impairment which: a. is expected to be of long -continued and indefinite duration, b. is of such a nature that such ability could be improved by more suitable housing conditions, c. substantially impedes his (her) ability to live independently. • A disabled person is one that has an inability to engage in any substantial. gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or which can be expected to last for a continuous period of not less than twelve months. B. Income Requirements. To be financially eligible, the applicant family must provr, e adequate evidence showing that their income for the twelve month period following occupancy is not anticipated to exceed the income limits for eligibility. Anticipated income will be derived by reviewing reported income for the previous twelve months and estimated income for the next twelve months, and by making adjustments for unusual or temporary income which will not he forthcoming during the next twelve month period. (This income requirement does not apply, however, to applicants who have been making a direct transfer). In a4dition, the family's gross rent, as computed according .o Section III of this policy, must be less than the Fair Market Rent for the unit established for the PHA's jurisdiction by HUD to be eligible for assistance (See Section XIII for the applicable Fair Market Rents.) Low Income Family. A family whose income. does not exceed 80% of the median income for the area determined by HUD. 1- n LJ L very low Income Fa 'l • heAafa as whose determineincome does not exceed 50% of the me xan 3 tiicamie or t For purposes of determining whetherfamily lower income family or a very law income family, income shall. be determined iaccordance with the ,O)Mputation of Annual Income," except where a family has net assets in excess of $5,000, income shall include the actual amount of ince, if any, derived from all of the net family assets or 10% of the value of all such assets, whichever is greater. Nu. of Lower -Income Fami ly Very Low Income Tamil per. ong INCOME LIMITS One Two 11,750 13,450 7,350 8,400 Three 15,100 9,450 Four 16,800 10,500 Five 17,850 11,350 Six 18,900 12,200 g nutation of Annual Income. 1. Except as provided in paragraphh 2 of this section, all payments from g all sources received by thenamity head (even if temporarily otaa minor bsent) and each additional member p minor is definedbeincludedintheannual. income of a family. as a member of the household (excluding under 18ster years of age time full- than the family head or spouse, time student. Income shall include but not be limited to: a. the gross amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses; b. the net income from operation of a business or profession or from rental of real or personal property (for this purpose, expenditures for business expansion or amortization of capitalindebtednessshallnotbedeductedtodeterminethenet ;income from a business); c. interest and dividends; is received from Social Security, d. the full amount of periodic paymen annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts; ty e, payments in lieu of earnings, such sat onsarde severance pay (refer to 2c); compensation, Workmen's Compen nt includes an amun f. public assistance. If the public assistance payment specifically designated for shelter and utilities which is subject toadjustmertbythepublicassistanceagencyinaccordancewiththe actual cost of shelter and utilities, the amount of public assistance income to be included as income shall consist of: 1) the amount of the allowance or grant exclusive of, the amount specifically designated for shelter and utilities, plus 2) the maxim= amount which the public assistance agency could in fact allow for the family for shelter and utilities; 2- Veg Low Income I=amid. A family whose income does not exceed SO% of the median Income tor the area as determined by IIUD. For purposes of determining whether a family is a lower. .income family or a very low income family, income shall be determined in accordance with the "Computation of Annual Income," except where a family !;3s net assets in excess of $5,000, income shall include the actual. amount of income, if any, derived from all of the net family assets or 10% of the value of all such assets, whichever is greater. No. of Lower -Income Very Low Persons Family Income Family INCOME LIMITS One $ 10,850 $ 6800 Two 12,400 7750 lhree 139950 8750 Four 15,500 9700 Five 16,500 10,500 Six 17,450 11,250 Con:2utation of Annual Income. 1. Except as provided in paragraph 2 of this section, all payments from all sources received by the family head (even if temporarily absent) id each additional member of the family household who is not a minor shall. be included in the annual income of a family. A minor is defined as a member of the household (excluding foster children), other than the fainily head or spouse, who is under 18 years of age or is a ful.l.- tim student. Income shall include but not be limited to: a. the gross amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses; b. the net income from operation of a business or profession or from rental of real or personal property (for this purpose, expenditures for business expansion or amortization of capital. in&btedness shall not be deducted to determine the net income iron: a business) ; c. interest and dividends; d. the full amount of periodic payments -received fron. Social. Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of -periodic receipts; e. payments in Lieu of earnings, such as tmempl.oyment• and disability compensation, Workmen'% Compensation and severance pay (refer to 2c); f. public assistance. If tine public assistance payment includes an airaunt specifically designated for shelter and utilities which is subject to adjustmect by the public assistance agency in accordance with the actual coat of shelter and utilities, the amount of public assistance income to be included as income shall consist of: l.) the aruount of the allowance or grant exclusive of th- amount specifically designated for shelter and utilities, ;Jus 2) the maximum amount which the public assistance agency could in fact allow for the family for shelter and utilities; R2_ g. periodic and determinable allowances, such as alimony an'cha.ld • support payments, and regular contribui;ns Qr Rifts received from persons not .residing in the dwelling; h. all Yegular pay, special pay and allowances of a member of the Armed Forces (whether or not living in the dwelling) who is head of the family or sponse (refer to 2e of this section). 2. Tie following items shal ". not be considered as income: a. casual, sporadic or irregular gifts; b. amounts which are specifically for or in reimbursement of the cost of medical expenses; c. lump -sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and Workmen's Compensation), capital gains and settlement for personal or property losses (refer to section regarding assets over $5,000); d. amounts of eezcational scholarships paid directly to the student or to the educational institution, and amount paid by the Government to a veteran for use in meeting the costs of tuition, books, fees, and equipment. Any amounts of such scholarships, or payments to veterans, not used for the above purposes of which are available for subsistence are to be included in income; e. the special pay to a serviceman head of a family away from home and .exposed to hostile fire; f. Relocation payments made pursuant to Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act • of 1970; g. foster chil4 care payments; h. the value of coupon allotments for the purchase of food pursuant to the Food Stamp Act of 1964 which is in excess of the amount actually charged the eligible household; i. payments received pursuant to participation in the following volunteer programs under the ACTION Agency: 1) National Volunteer Anti -poverty Programs which include VISTA, Service Learning Programs and Special Volunteer Programs; 2) National Cider American Volunteer Programs for persons aged 60 years and over which include Retira3 Senior Volunteer Programs, Foster Grandparent Program, Older American Community Services Program, and National Volunteer Program to Assist Sell. Business Experience, Service Corps of Retired Executive SCORE) and Active Corps of Executives (ACC) 3. '[f the circtm tances are such that it is not feasible to reasonably anticipate a level..of :income over a 12 -month period, a shorter period nny be used subject to a redetermination at the eA,J of such period. C. Assets. Ilea. only asset is in conjunction with the determination owiether a -family is a lot,,. - 'n.:•1e fain.ily or a very low income- family in relation to -income as outl -.,.J -n ,ection 4 above. Net family assets mean value of equity in real. pro:,f„',°, savings, stocks, bond:;, and other forms of capital investment. Tht -slue of necessary items such as furniture„ automobiles and clothing shall be excluded. Any applicant; who assigne<3, conveyed, transferred or otherwise disposed of property within the past two years without fair consideration in order to meet the assets limitation as regards income shall be ineligible. D. Families determined to be ineligibl.- shall be notified by letter i Rnediately of, the determination and the reason(s) therefore. The letter shall state that: the applicant has the right within a reasonable time (specified - in the letter) to request an informal hearing. If, after conducting such an informal hearing it is determined that the applicant is still ineligible, it shall so notify the applicant in writing. II. SfLEcrioN of I"AMIL:IES A. Each applicant shall be assigned his/her appropriate place in sequence based upon date and time his application is received, suitable type or size of certificate available, and factors affecting preference, or priority established by the Authority's regulations. The Authority shall make :its seloctions from this w.::it:ing list so that: 1) it will be able to honor all outstanding certificates of: family participation within its Annual Contributions Contract: authorization; 2) at 1cast 30% of the families for whom leases are approved by the Jim are very low income families. B. Certificates of family Particip color, religion, sex or rlatiorkrl its approved unit to remain el. i. Assistance Payments Program exc family wishes to vacate its emit thereto but is required to move lease on the part of the family shall be given a new Certificate housing assistance payments for if: 0 ation shall be made without regard to race, origin. A family must continue to occupy gi.ble for. participation in the. liousing ept under the following conditions. If a. at `the end of the lease term (or prior for reasons other than vi.o 1. a t- i ons of the as determined by the LIRA), the family of Family Participation providing .for occupancy of anuther. approvable unit, 4- 1. the family provides reasonable notice (at least 30 days) to the HRA of its intention to vacate; 2. the 14RA determines that the family is in compliance with the pro- visions of the lease, including provisions requiring notice to the owner, if applicable, 3. the M determines that the family continues to be eligible for such assistance; 4. the HRA has sufficient funds under its Annual Czntr,ibutions Contract. D. Preference in the Selection of Persons to Receive a Certificate. Within the provisxori:. or ct.uon 11, A a ove, in selecting eligible applicants to be issued a l+rrti.ficate, the Authority will give consideration to the following factory in the order shown: 1. Whether the applicant is a displaced family or about to be displaced by urban renewal or other governmental action. 2. Handicapped persons (as defined under Section I of this policy) 3. Families with income that qualifies them as very low income according to Section 8 income limit computation for Hennepin County. Schedule of Gi-jss Family Contributions A. if a family qualifies for any of these categories, they are charged 151 of their monthly gross income for the monthly Gross Family G)ntribution: 1. Very large lower income family. A lower income family which includes eight or dare minors a me -r of the family household except for foster children other than the family head or spouse who is under 18 • years o£:ge or is a full time student.) 2. large very low income family. A very low :income family which includes six nr more minors. 3. family which has exc tional medical or other ex enses. Medical exp 'nnses and/or unusual expenses*; respectively which exceed 25% of i.;_e Annual Income. B. Other than families in the special category in A above. In the case of other a igi a amxl ies, the monthlyGross Fam:i y ' n i.bution shall be 25% of the family's monthly income after allowances Lot in no event less than 15% of the family's monthly gross income. nusual. )expenses. Amounts paid by the family for tine care of minors under 13 ycar,- _n -r irT care of disabled or handicapped farni,ly household members, kit only where such care is necessary to Latabl.e a family member to be gainfully employod and tine amount allowable as unusual expenses shall not exceed the amount of i.n::nme froir such employment. Annual Income After Allowa- noes. The annual.:i.nconlo less: 1. $300 :For each minor, and 2. Medical expenses which excoed 3% of tile. annual income, and • 3. Unusual. e>.nses. 5- Ah C. Sho22inX Incentive - FamilX Credit. If a. family selects a unit (other than a unit receiving the benefit of Federal., State or local subsidy) for which the Owner's proposed Contract Rent plus any applicable allowance for utilities is below the appli,:abl.e Fair Dbrket Rent, the fainil.y will be given credit by a reduction in its required monthly Gross Family Contribution. The amount of the monthly Shopping Imentive Credit shall be the dollar amount equal to that percentage of the Gross Family Contribution which the rent saving is of the fair market rent. The rent saving is the amount by which the fair market rent exceeds the approved contract rent (plus any applicable allowance), exceeds the initially proposed contract rent (plus any applicable allowance), if that be higher than the approved contract rent (plus any applicable allowance). N. "Finders -Keepers" Policy A holder of. a Certificate of family 'Participat ion shall be responsible for finding an existing housing unit suitable to the holder's needs and de4res in any area within the PHA's jurisdiction and within the applicable fair. market -rent. A holder of a certificate may select the dwelling unit which the holder already occupies if the tul.it qualifies as existing housing. By no action, either direct or :indirect, may the PM reduce the family's opportunity to ..hoose among tiie available units in the housing market within its jurisdiction. V: Lease Appraval A. 7lie family shall zubmit to the HRA a Requeit for. Lease Approval, the family's inspection r1sport, the owner's inspec:Jon report, and a. copy of the proposed lease. B. The lease may be approved if: 1. The HRA determines that thy: unit is in decent, safe and saoi.tary condition; 2. The rent is reasonable; 3. 711e proposed lease complies with the requirements of FNA. C. If tf . HRA determines that the lease cannot be approved for any reason listed above, the HRA shall so notify the owner and the family. VI. Re-examination A. Re-examination of the family income, cog)ositi.on and the extent of medical or other unusual expenses incurred by the family shall be made by the LIRA cacti year (Rote: 7be PMA may elect to TO-MmIne elderly every two years.) At that t:i.me, appropriate redeterminations shall be made by the FIRA of the a,nount of Runi ly contribution and the amount of the housing assistance payment, all in accordance with schedules and criteria established by HUD. 6- B. In connection with periodic re-examination of family income, the HRA • shall ascertain whether at least 30% of all the assisted families are very low income families; and where the percentage is ].ower than 30%, the HRA shall issue Certificates of Family Participation only to very low income families on the waiting list until the 30% level is again achieved. C. Once rent is established, such rental rate shall remain in effect until the next annual re-examination or until circumstances occur that warrant a special rent and income review. Anytime any of the following circumstances occur rent and income shall be reviewed and rent adjusted in accordance with the approved schedule of rents. 1. When the tenant requests an adjustment in the amount of gross family contribution due to a change in family circumstances (such as a change in famii), composition, decrease in income, or an increase in medical or other unusual circumstances). 2. When the gross family contribution is decreased in accordance with item number 1, above, the tenant must report all changes in family circumstances which would result in an increased grass family contri- bution which occur prior to his/her regular re-examination in which case the contributions will be .app priately adjusted. 3. When required by changes in HUD regulatims. VII. Ineligible and Over -Income Families • If, at the time of re-examination or a special income and rent review, the amount payable by the family toward the gross rent equals tls; gross rent for the unit it occupies, their eligibility for assistance shall be terminated. This termination shall not affect the family's other rights :ender ito lease nor shall such termination preclude resumption of payments as a result of subsequent changes in income of rents or other relevant circumstances dpring the term of the Contract. VIII. Verification of Applicants' Statements and Income A. Applicants shall be required to furnish proof of their statements when required by the HRA to reasonably assure accuracy. B. Certification by applicants will normally be considered sufficient verification of family composition and residence. Certification is provided by the applicant's signature on the application for a duelling. Certification by signing the application for continued occupancy will, be considered sufficient verification of family composition at re-excunination. C. All. earned income shall be verified at the time of admission or annual re-examination through employers, W-2 forms, check stubs or other means to assure accuracy. .assets shall be verified by savings account passbooks and other photostatic or carbon copies of docLiments in the applicant's pe:%session which substantiates his statements. • 7- D. Unearned incomes shall be verified by viewing checks, certificates of award, or other means to assure accuracy. E. All determinations shall be fully documented in the files. F. A signed statement from the Relocation Officer of the displacing govern- mental agency will be required as proof that an applicant has been, if claimed, displaced or is to be displaced by public action. X. Occupancy Standards A. fn issuing the certificate of family participation the PHA will determine the appropriate 1xAt of size by applying the following cr.i.ter.ia.. 1. The bedroom size assigned should not require more than two persons to occupy the same bedroom. 2. The bedroom size assigned should not require persons of the opposite sex other than husband and wife to occupy the same bedroom other than infants or very young children. These principles result, in the following standards: 0 No. of 1312. Minimum Maximum 1 1. 2 2 2 R 3 Q G 7'he foregoing guidelines are set forth solely for determining the bedroom size to be designated on the certificate of, eligibility. The regulations provide that the family may rent a larger dwelling provided the rent to owner plus any allowances for utilities and other services does not exceed the fair market rent for the bedroom size designated on the certificate of eligibility. Pic family May rent a smaller bedroom size unit provided the unit meets the standard: of accep-tability, i.e. "...at least one sleeping 'room or living/sleep.-Ing room of appropriate size for each two persons." X. Misrepresentations The applicants are .o be notified in writing of any misrepresentations or lease violations revealed through the annual re-examination or other occurrences and any other correct l_'.. -e action required by the Authority. 8- XI. Review and Ar-.7-idment of Policies The foregoing policies are subject to review and amendment by the Commissioners isofthePlymouthHousingandRedevelopmentAuthorityfromtimetotime. XII. Utility Allowance Schedule Where the family pays directly for one or more utilities or services, the following amounts will be deducted from the gross rent in determining the contract rent and is included in the gross family contribution: See utility allowance schedule attached.) XIII. Fair Market Rents for Plymouth Amount Amount Unit Size Unit Type Non-Elev. Elevator 1 BR Existing $232 $242 2 BR Existing 264 291 3 BR Existing 308 373 0 XI. Review and Amendment of Policies The foregoing polis`es are subject to review and amendment by the Commissioners of the Plymouth Housing and Redevelopment Authority from time to time. XII. Utility Allowance Schedule Where the family pays directly fcr one or more utilities or services, tht. following amounts will be deducted from the gross rent in determining the contract rent and is included in the gross family contribution: UTILITY SCHEDULE Cooking + 1 BR $3 + 2 BR 3 + 3 BR 4 + Lights = Tota] 12 = $15 15 - 18 17 21 XIII. Fair Market Rents for Plymouth Unit Size Unit Type 1 BR Existing 2 BR Existing 3 BR Existing 9- Rents 253 298 343