75B - PH AMEDNING CH 41 HOO - Laserfiche WebLink

Home Browse Search

1. project reserve accounts for replacement or operating reserves, and operating subsidies; 2. payment of impact fees; 3. land banking; 4. emergency repair or weatherization programs; 5. commercial properties; 6. temporary shelters; or 7. project -based rental assistance. Affordability Rea uirements HUD provides the following maximum HOME rent limits. The maximum HOME rents are the lesser of. 1. The fair market rent for existing housing for comparable units in the area as established by HUD; or 2. A rent that does not exceed 30 percent of the adjusted income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD will include average occupancy permit and adjusted income assumptions. In rental projects with five or more HOME -assisted rental units, twenty (20) percent of the HOME -assisted units must be occupied by very low-income families and meet one of following rent requirements: 1. The rent does not exceed 30 percent of the annual income of a family whose income equals 50 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. HUD provides the HOME rent limits which include average occupancy permit and adjusted income assumptions. However, if the rent determined under this paragraph is higher than the applicable rent under 24 CFR 92252(a), then the maximum rent for units under this paragraph is that calculated under 24 CFR 92.252(a). 2. The rent does not exceed 30 percent of the family's adjusted income. If the unit receives Federal or State project -based rental subsidy and the very low-income family pays as a contribution toward rent not more than 30 percent of the famdy's adjusted income, then the maximum rent (i.e., tenant contribution plus project -based rental subsidy) is the rent allowable under the Federal or State project -based rental subsidy program. To ensure that HOME investments yield affordable housing over the long term, HOME imposes rent and occupancy requirements over the length of an affordability period. For homebuyer and rental projects, the length of the affordability period depends on the amount of HOME assistance to the project or buyer, and the nature of the activity funded. Table 1-1: Determining the HOME Period of Affordability: HOME Assistance er Unit or Buyer Length of the Affordabili Period Less than $15'000 5 years $15,000 - $40,000 10 years Affordable Housing Funds Policies and Procedures Page 30 75B-95