534

HAWAII ADMINISTRATIVE RULES TITLE 17 DEPARTMENT OF HUMAN SERVICES SUBTITLE 5 HAWAII HOUSING AUTHORITY CHAPTER 534 STATE HOMELESS HALE KOKUA PROGRAM

Subchapter 1 General Provisions §17-534-1 Purpose §17-534-2 Definitions 517-534-3 Income limits §17-534-4 Assets §17-534-5 Asset limits §17-534-6 Asset transfer §17-534-7 Occupancy standards §17-534-8 Verification of information §17-534-9 Ineligibility $j17-534-10 Exceptions §17-534-11 Contract with provider agency $§17-534-12 to 17-534-19 (Reserved)

Subchapter 2 Tenant Eligibility and Selection §17-.534-20 Tenant application 517-534-21 Tenant eligibility for participation §17-534-22 Tenant preference §17-534-23 Notification of ineligibility §17-534-24 Reexamination §§17-534-25 to 17-534-29 (Reserved)

Subchapter 3 Owner Eligibility and Selection §17-534-30 Owner application §17-534-31 Rental unit requirements §17-534-32 Qualified owners §17-534-33 Owner preference 517-534-34 Notification of ineligibility

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S$17-534-35 to 17-534-39 (Reserved)

Subchapter 4 Construction Grants §17-534-40 Construction application §17-534-41 Grant amount §17-534-42 Restriction on use of dwelling units §17-534-43 Construction liability exception §17-534-44 Termination of participation §17-534-45 Construction grant agreement §§17-534-46 to 17-534-49 (Reserved)

Subchapter 5 Rent Assistance s17-534-50 Rent assistance application s17-534-51 Fair monthly rent §17-534-52 Rent adjustment §17-534-53 Rent assistance payments 517-534-54 Security deposits s17-534-55 Rent assistance agreement - owner S17-534-56 Rent assistance agreement - tenant s17-534-57 Authority not responsible §17-534-58 Rent assistance agreement termination s17-534-59 (Reserved)

Subchapter 6 Operations S17-534-60 Selection of tenant 517-534-61 Social services agreement S17-534-62 Eviction §§17-534-63 to 17-534-69 (Reserved)

Subchapter 7 Contested Cases §17-534-70 Contested cases; applicability §17-534-71 Commencement of case 517-534-72 Contents of petition s17-534-73 Action by authority s17-534-74 Response s17-534-75 Notice §17-534-76 Burden of proof; evidence §17-534-77 Procedure at hearing §17-534-78 Proposed findings of fact and conclusions of law

534-2

1158 l

517-534-Z

s17-534-79 Authority's final decisions, orders, findings of fact, and conclusions of law §17-534-80 Procedure before a hearings officer; transmittal to authority

Subchapter 8 Miscellaneous Provisions $j17-534-81 Severability §17-534-82 Number

SUBCHAPTER 1 GENERAL PROVISIONS

S17-534-1 Purnose. This chapter governs the requirements for participation by eligible families and individuals and by housing owners in the state homeless hale kokua program as admin. housing authority. [Eff &%"ti'iplg "';' ;;::i-~ SLH 1992, Act 279, S3(12); HRS S356-10) (Imp: SLH 1992, Act 279 SZ)

§17-534-2 Definitions. As used in this chapter: "Adjusted income" means income as defined by 24 C.F.R. S813.102 and set forth in Exhibit A, dated 4/l/92, located at the end of this chapter. "Annual Income" means income as defined by 24 C.F.R. S813.106 and set forth in Exhibit A, dated .4/l/92, located at the end of this chapter. w~Applicant I@means a homeless family or homeless individual who submits an application to participate as a tenant in the program. wwAssetswwmeans the net cash value after deducting reasonable costs that would be incurred in disposing of real property, savings, stocks, bonds, and other forms of capital investment. "Authority I1 means the Hawaii housing authority, a public body and body corporate and politic of the State of Hawaii. "Building@' means the same as constructing. "C.F.R." means the U.S. Code of Federal Regulations. "Chairperson'@-means the duly selected chair of the authority or designated representative. 534-3

.

§17-534-2

wwConstructing WImeans building a new dwelling unit to be used as a rental unit. wwCoordinatorww means the state homeless programs coordinator appointed by the executive director of the authority to develop and implement the program. "Dwelling unit" means a house, apartment or group of rooms, intended for residential occupancy as separate living quarters with each unit having direct access from either the outside of the building or through a common hall and each unit being equipped with a kitchen and bathroom facilities for the exclusive use of the occupant. wwExecutive directo?? means the executive director of the Hawaii housing authority or the designated representative. "Fair monthly rent " means the maximum rent which may be charged by an owner for a rental unit. wwFamilyww means a group of persons regularly living together consisting of two or more persons related by blood; marriage, or adoption and including foster children and hanai children with at least one dependent person under eighteen years of age. "Hanai children" means a person or persons, under eighteen years of age, for whom an applicant or tenant has provided food, nourishment, and support for a minimum period of at least a year prior to the time of application and who is acknowledged as the applicant's or tenant's child among friends, relatives, and the community. wwHomelesswwmeans the following: (1) An individual or family who lacks a fixed, regular, and adequate nighttime residence; or (2) An individual or family who has a primary nighttime residence that is: (A) A supervised publicly or privately operated shelter designed to provide temporary living accommodations; or (B) An institution that provides temporary residence for individuals intended to be institutionalized; or (Cl A public or private place not designed for or ordinarily used as sleeping accommodations for human beings. wwHomeless assistance unit" means the same as rental unit. wwImproving WImeans the same as renovating. wwMonthly adjusted incomeww means income as defined by 24 C.F.R. S813.102 and set forth in Exhibit A, dated 4/l/92 I and located at the end of this chapter. 534-4 ?

517-534-4

wwOwnerww means the owner of a dwelling unit that is in existence or will be constructed or re,novated and may include the agent of the owner of a dwelling unit. wwProgramwwmeans the state homeless hale kokua program administered by the Hawaii housing authority. "Provider agency WImeans an organization, including the board and officers and any employees, contractor, or agents that is: (1) A profit organization incorporated under the laws of the State or a nonprofit organization determined by the Internal Revenue Service to be exempt from the federal income tax; or (2) A nonprofit organization, with a governing board whose members have no material conflict of interest and serve without compensation with bylaws or policies that describe the manner in which business is conducted and policies that relate to nepotism and management of potential conflict of interest situations. wwRenovatingww means improving an existing structure so that such structure will meet the requirements of a dwelling unit and will be used as a rental unit. wwRentwwmeans the monthly charge to a tenant for use of a rental unit. "Rental unit" means a dwelling unit that is available to be rented by a tenant,in the program. wwRespondentww means the party against whom a petition is filed, the party .against whom relief is sought or, any party who contests or controverts a proceeding. wwStatewwmeans the State of Hawaii. wwTenantwwmeans an eligible homeless family or homeless individual who is participating in the program. [Eff (ImbYN 3 0 1994 1 (Auth: SLH 19921 Act 279, s3(12 SLH 1992, Act 279, S2)

S17-534-3 Jncome limits. To be eligible to participate or to continue to participate in the program, an applicant's or tenant's annual income and assets shall not exceed the lower income limits as defined by 24 C.F.R. 5813.102 and set forth in Exhibit A, dated 4/l/92, located at the end of this chapter.

S17-534-4 Assets. All assets held by an 534-5

§17-534-4

applicant or a tenant shall be determined as defined by 24 C.F.R. 3813.102 and set forth in Exhibit A, dated 4/3C1W23~~ted,at(~~hpnd of this chapter. [Eff SLH 1992, Act 279, S3(12 (Imp: SLH 1992, Act 279, SZ)

§17-534-5 Asset limits. An applicant or a tenant having assets which are valued at more than one and one-half times the income limit set forth in section 17-534-3, shall be ineligible to participate or to articipate in the program. [Eff ""~~jin!$eoi9"9% ] (Auth: SLH 1992, Act 279, fs3(12 (Imp: SLH 1992, Act 279, SZ)

§17-534-6 Asset transfer. (a) All assets transferred or assigned to another person, within a three month period prior to submitting an application to participate, or for the purpose of continuing to qualify for participation in the program shall be included in determining an applicant's or tenant's assets. (b) The value of the asset shall be based on its fair market value. [Eff 3 0 19% 1 (Auth: SLH 1992, Act 279, §3(12 (I SLH 1992, Act 279, SZ)

S17-534-7 Occunancv standards. Eligible applicants or tenants shall occupy the rental unit in accordance with the ordinances of the count the rental unit is located. [Eff (Auth: SLH 1992, Act 279, S3(12 Act 279, SZ)

§17-534-8 Verification of information. (a) The authority shall require an applicant, tenant, or owner to provide documentation to verify information relating to participation in the program. This documentation may include, but not be limited to, employment, financial, housing status, and property information. (b) An applicant or owner that fails to comply with the requirement to provide documentation shall be ineligible to participate in the program. (c) A tenant that fails to comply with.the requirement to provide documentation shall be to participate in the program. (Auth: SLH 1992, Act 279, 534-6

517-534-11

s3(12 (Imp: SLH 1992, Act 279, 52)

517-534-g Ineliaibilitv. (a) Any applicant, tenant or owner that has been determined to be ineligible by the authority may request an informal hearing before the executive director to reconsider the determination of the authority. Any request for hearing for reconsideration shall be made in writing and shall be filed with the executive director within ten days of the determination of the authority. The request shall state the grounds for the request for reconsideration. (b) Upon receipt of the request, the executive director shall schedule a hearing. Notice shall be provided to all parties upon the scheduling of a hearing. (c) The executive director shall render a decision within thirty days after the hearing. If the decision is adverse to the party requesting the hearing, then such party may request a contested case hearing pursuant to subchapter 7. The notice of a request for a contested case hearing shall be filed with the authority within ten days of the decision by the executive director., ,;[Eff SLH 1992, Act 279, s3(12)'). (Imp.'JUNS%! !&#Z,'Ac%: I 52)

517-534-10 Excentions. The executive director may for good cause grant an exception to any provision in this chapter to the extent permitted by law where: . (1) The applicant, tenant or owner has otherwise demonstrated the necessary qualifications; and (2) Each such exception shall be in writing and shall be supported by documentation of the -pertinent facts and grounds. ] (Auth: 5302 (Imp: SLH 1992, Act 279,'SZ)

517-534-11 Contract with orovider aaencv. The authority may contract with a provider agency to of its duties under this chapter. (Eff per~~37!i%% ] (Auth: SLH 1992, Act 279, 52 (Imp: SLI-i 1992, Act 279, 52)

534-7

r

517-534-12

SS17-534-12 to 17-534-19 (Reserved)

SUBCHAPTER 2 TENANT ELIGIBILITY AND SELECTION

517-534-20 Tenant annlication. (a) An applicant seeking to participate in the program shall submit an application form, as prescribed by the authority. The form shall be completed to the satisfaction of the authority and shall include, but not be limited to, the applicant's name, age, address, marital status, name of spouse, present housing status, employment status, income and asset information, citizenship status, and family composition information. (b) An applicant shall submit documentation as required by the authority and shall execute a release of information form for any other information required by the authority to verify the applicant's eligibility or continued eligibility. (c) An applicant shall execute a waiver of information disclosure form in order for the authority to release such information to an owner in the selection process. (Eff N 30 1994 I (-a: SLH 1992, Act 279, 53(Z SLH 1992, Act, 279, s3(2 517-534-21 Tenant eliuibilitv for narticioation. (a) To be eligible to participate or to continue to participate in the program, the applicant or tenant shall: (1) Submit a completed application; (2) Qualify as a homeless family or homeless individual; (3) Have family or individual income and assets which do not exceed the income limits and asset limits established by section 17-534-3 and section 17-534-5 respectively; (4) Have earning capabilities or have a financial situation which gives reasonable assurance of meeting the rental payments on time as they become due; (5) Not have an outstanding 'debt owed to the authority or to a county public housing (6) ,"zeizzioyed at least nineteen hours per week; 534-8

..

§17-534-23

(7) Not have had a record of conduct or behavior for two years prior to the date of the application or reexamination that is harmful, destructive, or unlawful which may cause a threat to owners; and (8) Agree to actively comply with the social services agreement established by section 17- 534-61. (b) A tenant shall be.immediately ineligible to. continue participation . - in the program upon _ termination of the social services agreement for such tenant. (Eff -JUN301994 J (Auth: SLH 1992, Act 279, S3(2 (Imp: SLH 1992, Act 279, §3(2 S17-534-22 Tenant oreference. (a) Eligible applicants shall be given preference for participation in the program in the followina order: (1) tiomeless family residing in a transitional shelter subject to chapter 358D, Hawaii Revised Statutes; (2) Homeless individuals residing in a transitional shelter subject to chapter 358D, Hawaii Revised Statutes; (3) Homeless family whose nighttime residence is in a public area; (4) Homeless individual whose nighttime residence is in a public area; (5) Homeless family whose nighttime residence is other than a public area; and (6) Homeless individual whose nighttime residence is other than a public area. W In any one of the above categories, priority shall be given to eligible applicants in such category according to the length of time prior to the date of the application that such applicant was homeless in the state. [Eff JUN 301994 ] (Auth: SLH 1992, Act 279, S3 (2) 1 (Imp: SLH 1992, Act 279, S3(2 S17-534-23 Notification of ineliuibilitv. An applicant or tenant determined to be ineligible for participating or continuing to participate in the program shall be notified in writing of the determination, the reasons thereof and hearing by the authority. [Eff JUN ??t &ifht, to a (Auth: SLH 1992, Act 279, S3(2 (Imp: SLH 1992, Act 279, S3(2 * -

534-9

§17-534-24

§17-534-24 Reexamination. (a) The authority shall annually reexamine a tenant's annual income, assets, family composition, financial and employment record, conduct and behavior record, and any other matter necessary to determine a tenant's eligibility. The tenant shall be responsible for continuing to meet the eligibility requirements of section 17-534-21. (b) The tenant shall be notified in writing by the authorit of the reexamination results. [Eff JUN 3 0 dk 3 (Auth: SLH 1992, Act 279, S3(2 (Imp: SLH 1992, Act 279, S3(2 §§17-534-25 to 17-534-29 (Reserved)

SUBCHAPTER 3 OWNER ELIGIBILITY AND SELECTION

S17-534-30 Owner aonlication. (a) An owner seeking to participate in the program shall submit an application form, as prescribed by the authority. The form shall include, but not be limited to, the owner's name, address, agent's name, ownership information, property information, unit information, and rent information. (b) An owner shall submit documentation as required by the authority and shall execute a release of information form in order for the authority to verify the owner's eligibility. (c) An owner shall execute an agreement that any tenant information disclosed to the owner shall be held in confidence and shall not be released to anyone in any form. (d) In the event an owner does not have a dwelling unit that meets the requirements of section 17-534-31, then such owner may apply for a construction grant pursuant to subchapter 4. [Eff JUN 301994 ] (Auth: SLH 1992, Act 279, S3(3 (Impi SLH 1992, Act. 279, S3(3 S17-534-31 Rental unit reouirements. A dwelling unit approved by the authority for use as a rental unit shall meet the following requirements: (1) Have its own sanitary facilities which are in proper-operating condition, can be used in 534-10

s17-534-33

privacy, and are adequate for personal cleanliness and the disposal of human waste; (2) Have suitable equipment to prepare, serve, and store foods in a sanitary manner; Provide adequate space and security; I:; Be structurally sound so as not to pose any threat to the health and safety of the occupants; (5) Be usable and capable of being maintained without unauthorized use of other private properties, and the unit shall provide an alternate means of egress in case of fire; (6) Be in a sanitary condition and free of vermin and rodent infestation; and (7) Comply with all laws, ordinances, rules and regulations of the federal, codes, * state;;,., and county governments. CEff UN $orn;j4 3 (Auth: SLH 1992, Act 279, $3(3 ) SLH 1992, Act 279, S3(3 S17-534-32 Qualified owners. To qualify to participate in the program, an owner shall: (1) Submit a completed application; (2) Have an existing rental unit or intend to renovate or construct a rental unit; (3) Have the rental unit located in a census tract that has less than five other rental units in such census tract; (4) Not have an outstanding debt owed to the authority or to a county public housing agency; and (5) Not have had a record of conduct or behavior for two years prior to the date of the application that is harmful, destructive, or unlawful whit cause a threat to tenants. [Eff JUN 3&r@@ ] (Auth: SLH 1992, Act 279, §§I, 3(3), 5) (Imp: SLH 1992, Act 279, ss1, 3(3), 5)

S17-534-33 Owner Preference. Qualified owners shall be given preference for participation in the program in the followinu order: (1) Owners who are not applying for construction grant funds provided by the authority; (2) Owners who are in a census tract with the least number of rental units in such census tract; and 534-11

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§17-534-33

(3) Owners whose rental units have the largest floor area. [Eff I&- SLH 1992, Act 279, : SLB 1992, Act 279, SSl, 3(3), 5)

§17-534-34 Notification of ineliaibilitv. An owner determined to be ineligible to participate in the program shall be notified in writing of the determination, the reasons thereof and the right to a hearing by the authority. (Auth: SLH 1992, Act 279, lEff S3(3 -J#!m$o'g%I : 19!2 I Act 279, §3(3 §§17-534-35 to 17-534-39 (Reserved)

SUBCHAPTER 4 CONSTRUCTION GRANTS

s17-534-40 Construction aoolication. (a) m owner seeking to receive a construction grant for constructing or renovating a dwelling unit to be used as a rental unit shall submit an application form, as prescribed by the authority. The form shall include, but not be limited to, the owner's name, address, ownership information, property information, contractor information, financial cost information, county regulatory information, and dwelling information. (b) The owner shall submit documentation as required by the authority in order to verify the ;wnP =%e&pqq& 'ty to receive a construction grant. ] (Auth: SLB 1992, Act 279, SS3(5), 5) (Imp: SLH 1992, Act 279, SS3(5), 5)

s17-534-41 Grant amount. (a) The authority shall pay to the owner, or authorized agent, up to the amounts defined by and set forth in Exhibit B, dated 2/l/94, located at the end of this chapter, for the applicable rental unit size and extent of construction, who has: (1) Submitted a completed application; (2) Become a qualified owner; and (3) Executed a construction grant agreement. (b) The owner shall submit documentation that is 534-12

§17-534-43

satisfactory to the authority that the owner has expended amounts at least equal to the construction grant amount for constructing or renovating a dwelling unit. (c) Any construction grant funds received by the owner which are in excess of the amount expended by the owner for constructing or renovating a dwelling unit shall be reimbursed to the authority. tEff JU ] (Auth: SLH 1992, Act 279, 5) (Imp: SLH 1992, Act 279, SS3(5), 5)

§17-534-42 Restriction on use of dwelling units. (a) A dwelling unit that has been constructed or renovated using construction grant funds shall be used or available for use as a rental unit for applicants or tenants at all times during the five year period commencing on the date such unit is ready for occupancy after the construction or renovation is completed. (b) The owner or owners of the real property on which a dwelling unit has been constructed or renovated using construction grant funds shall record in the bureau of conveyances of the State of Hawaii, or if the real property is subject to land court registration under chapter 501, Hawaii Revised Statutes, shall record in the land court, a covenant that the owner or owners, or the heirs, successors or assigns of the owner or owners shall use the dwelling unit for applicants or tenants as provided by this section. The covenant shall be recorded on a form approved by the authority and may contain such terms as the authority deems necessary to ensure its enforceability. (c) At the end of the five year period of restriction on use of the dwelling unit, the authority shall execute a release of covenant and shall record eau of conveyances or the land ::::tfel;;:: wjtia 3v1w ] (Auth: SLH 1992, Act 279, §§3(5), 5) (Imp: SLH 1992, Act 279, SS3(5), 5) I

s17-534-43 ConstNction liabilitv exceotion. (a) An owner who receives a construction grant from the authority for constructing or renovating a dwelling unit shall not hold the authority liable for any civil damages resulting from the authority's acts or omissions relating to the grant. (b) The owner shall defend, indemnify, and execute a waiver of liability holding the authority harmless from all claims made by third parties against 534-13

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§17-534-43

the authority resulting from constructing or renovating the dwelling unit. rEff (I-: JUN &K@&2,~Acfl~f sLH 1992, Act 279, §§3(4 §3(4 §17-534-44 Termination of narticination. (a) a owner who receives a construction grant from the authority for constructing or renovating a dwelling unit and terminates participation in the program prior to the end of the five year period provided in section 17-534-42(a) shall reimburse the authority for all amounts received by the owner as a construction grant within ninety days after the date of termination. Upon reimbursement of the construction grant, the authority shall release the covenant on restriction of use pursuant to section 17-534-42(c). (b) An owner who does not reimburse the authority pursuant to this section shall pay for any attorney's fees and costs, as determined by a court of competent jurisdiction to be reasonable, that are incurred by the authority in collecting the amounts owed to the authority. The authority may file a lien upon the property where the rental unit is located, in the amount of the construction grant that has not been reimbursed to the authority. (c) An owner shall give the authority at least forty-five days written notice prior to the date.tha the owner will withdraw from the program. [Eff JUN 10 1gg4 ] (Auth: SLH 1992, Act 279, S6) (Imp:- SLH 1992, Act 279, S6)

s17-534-45 Construction grant aareement. A construction grant agreement shall be executed between the authority and the owner who receives a construction grant for constructing or renovating a dwelling unit to be used as a rental unit for tenants in the program. The agreement shall include, but not be limited to, the owner's name, address, ownership information, dwelling unit information, financial cost information, construction grant amounts, restriction on use of the dwelling unit, indemnification of the authority during construction, liability insurance, and the o the authority's responsibilities. [Eff $yti@@nd] (Auth: SLH 1992, Act 279, SS3(5), 5) (Imp: SLH 1992, Act 279, SS3(5), 5)

534-14

§17-534-53

SS17-534-46 to 17-534-49 (Reserved)

SUBCHAPTER 5 RENT ASSISTANCE

S17-534-50 Rent assistance auolication. (a) m owner seeking to receive rent assistance for a rental unit shall submit an application form, as prescribed by the authority. The form shall include, but not be limited to, the owner's name, address, ownership information, property information, dwelling unit information, and rent information. (b) The owners shall submit documentation as required by the authority in order to verify the ility to receive rent assistance. [Eff Owne$# Sb%@ ] (Auth: SLH 1992, Act 279, SS 3(5), 5) -(Imp: SLH 1992, Act 279, S53(5),5)

S17-534-51 Fair monthlv rent. The fair monthly rent for the rental unit shall not be greater than ninety percent of the fair market rent for the same unit size as defined by 24 C.F.R. S888.113 and set forth in Exhibit A, dated 4 1 92 located at the end of this chapter. [Eff jUN 361494' J (Auth: SLH 1992, Act 279, §3(3 (Imp: SLH 1992, Act 279, §3(3 517-534-52 Rent adjustment. The fair monthly rent for the rental unit may be adjusted by the owner as defined by 24 C.F.R. S882.108 and set forth in Exhibit A, dated 4 ocated at the end of this chapter. [Eff ad%"1@# J (Auth: SLH 1992, Act 279, S3(3 (Imp: SLH 1992, Act 279, S3(3 S17-534-53 Rent assistance oavments. (a) The authority shall pay directly to the owner, or authorized agent, on behalf of a tenant, a monthly rent assistance amount that is subject to subsection (d) and is the difference between the fair monthly rent for the rental unit and the tenant's allowable share of rent as defined by 24 C.F.R. S813.107 and set forth in Exhibit A, dated 4/l/92, located at the end of this chapter. (b) Rent assistance payments shall be made on behalf of a tenant for the period that the rental unit is occupied. 534-15

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517-534-53

(c) Vacated rental units will receive rent assistance payments under the following conditions: (1) If the tenant vacates the rental unit without proper notice, rent assistance payments shall be continued to the time that the tenancy could legally be terminated or to the date that the rental unit is re-rented, or to the last day of the month that the tenant vacated the rental unit and rent assistance payment was already made, whichever comes first; or (2) If the tenant has had his social services agreement terminated by the authority and is ineligible to participate in the program, rent assistance payments shall be continued for ninety days from the effective date of termination of the social services agreement or to the date the rental unit is re-rented, whichever comes first. (d)The rent assistance shall be limited up to the amounts as defined by and set forth in Exhibit B, dated 2/l/94, located at the end of this chapter. [Eff (IpN 3 0 1994 I (Auth: SLH 1992, Act 279, $53(5), 5) : SLH 1992, Act 279, §§3(5), 5)

517-534-54 Securitv deDosits. No portion of the rent assistance payments by the authority shall be applied or allocated to any security deposit demanded by an owner. The authority shall not be responsible for nor be required to pay an owner for the security deposit. [Eff N 301994 ] (Auth; SLB 1992, Act 279, 553(5), 5) . SLH 1992, Act 279, 553(5), 5)

517-534-55 Rent assistance agreement - owner. (a) A rent assistance agreement shall be executed between the authority and owner who receives rent assistance and rents to tenants in the program. The form shall include but not be limited to, an acknowledgement of the tenancy between the owner and the eligible applicant or tenant, the amount of the fair monthly rent and the rent assistance, date that the rent assistance payment is due, to whom payment is to be made, and the owner's and authority's responsibilities. (b) Amendments to the rent assistance agreement shall be made in writing, by the owner or agent, and

534-16

517-534-58

approved by the authority. [Eff 1 (Auth: SLH 1992, Act 279, 553(5), #N 3f$94: SLH 1992, Act 279, 553(5), 5)

517-534-56 Rent assistance agreement - tenant. (a) The eligible applicant shall execute a rent assistance agreement with the authority prior to participating in the program. The agreement shall include, but not be limited to, an acknowledgement of the tenancy between the owner and the eligible applicant, the amount of the fair monthly rent and the rent assistance, and the eligible applicant's and authority's responsibilities. (b) The rent assistance agreement between the authority and eligible applicant shall set forth the conditions of participation in the program. ’JY$m$-j ‘C&X&l;~~;ct”~g19;f; (if ;;% 553 (5) ,‘“8 I I I

517-534-57 Authoritv not resDonsible. Other than the agreed to rent assistance for the fair monthly rent, the authority shall not be held responsible to the owner for any portion of the tenant's allocable share of the rent, or be held responsible to the owner or tenant for any damages, breakage or losses to the rental unit or any portion thereof, or to the furnishings, fixtures, and appliances where the same may have been ca causes. [Eff ~~d+&&ia ~;::;h:wn=9;:he:ct 279, §§3(5), 5) (Imp: SLH 1992, Act 279, §§3(5), 5)

$17-534-58 Rent assistance aoreement termination. (a) A tenant shall give the authority at least thirty days written notice prior to the date that the tenant will withdraw from participation in the program. (b) The authority may terminate a tenant's participation in the program when a tenant has: (1) Submitted false or misleading information or willfully withheld important information from the authority; or (2) Violated any provision of these rules or SLH 1992, Act 279, as related to this program; or (3)' Had the tenancy terminated by the owner; or (4) Had the social services agreement terminated by the authority. (c) A tenant found to be ineligible for continued 534-17

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517-534-58

participation in the program shall be so notified in kiting-pursuant to section 17-534-23. (d) The owner may continue to rent to the tenant notwithstanding the termination of the rent assistance agreement and the ineligibility of the tenant E continued participation in the program. [Eff %'i 3 0 1994 ] (Auth: SLH 1992; Act 279, 553(5), 5) (Imp: SLH 1992, Act 279, 553(5), 5)

517-534-59 (Reserved)

SUBCHAPTER 6 OPERATIONS

517-534-60 Selection of tenant. (a) The authority shall provide a qualified owner with a list of up to five eligible applicants. The list of eligible applicants shall be taken in the order of preference as provided in section 17-534-22. (b) The owner shall interview the eligible applicants from the list of applicants provided by the authority and may select an eligible applicant from such list to be the tenant for the rental unit. If the eligible applicants are unsatisfactory to the owner, then the owner may request a new list from the authority. The owner shall be provided a maximum of three lists by the authority and shall choose a eligible applicant from such lists. [Eff JUN Qo1994 ] (Auth: SLH 1992, Act 279, 53(4 (Imp: SLH 1992, Act 279, 53(4 517-534-61 Social services aureement. (a) The eligible applicant that has been selected by an owner to be a tenant for a rental unit shall enter into a social services agreement with the authority. The agreement shall include, but not be limited to, the following: (1) An individualized assessment of the financial, health, housing, vocational, educational, and social needs of the tenant and tenant's family members, if applicable; (2) Identification of goals and objectives to address the tenant's assessed needs; (3) Identification of timeline, activities, and 534-18

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517-534-71

tasks to accomplish the tenant's goals and objectives. (b) The authority shall monitor the tenant in order to evaluate the progress of the tenant in accomplishing the social services agreement. (c) The authority may terminate the social services agreement of the tenant if the tenant does not comply with or meet the goals and objectives of the social services agreement as determined by the authority. [Eff JUN 301994 ] (Auth: SLH 1992, Act 279, SS3(2), 3(7 (Imp: SLH 1992, Act 279, ss3w, 3(7 .

517-534-62 Eviction. The owner may evict a tenant provided the requirements of chapter 521, Hawaii Revised Statutes, have been complied with. The owner must notify the authority, in writing, of the commencement of procedures for termination of the tenancy at the same time that the owner gives notice to the tenan un er chapter 521 Hawaii Revised Statutes. [Eff &N 08% (Auth: &I 1992, Act 279, 53(3, (Imp:. SLH 1992, Act 279, 53(3 .

5517-534-63 to 17-534-69 (Reserved)

SUBCHAPTER7 CONTESTED CASES

517-534-70 Contested cases: aDDliCabilitY. The right to a contested case hearing shall exist where provided for by this chapter or where required by law. The right to hearing shall only be afforded to the person affected by the action or decision of the authority, unless otherwise provided by law. [Eff JLJN 30 1994 I (Auth: SLH 1992, Act 279, 52) (Imp: HRS 5591-14; SLH 1992, Act 279, 52)

517-534-71 Commencement of case. A contested case shall commence by the filing of a petition for a permitted relief with the authority. Unless otherwise provided by law, the petition shall be filed within thirty days of the action or decision for which contested case hearing is sought. Upon the filing of a 534-19

.

517-534-71

petition, the authority shall docket the petition and assign a docket number to the petition. ,[Eff 27&J# 0 19% I (Auth: HRS 5591-g; SLH 1992, Act I (Imp: SLH 1992, Act 279, 52)

517-534-72 Contents of oetition. (a) The petition shall state the following: (1) Name, address, telephone number of the petitioner and the petitioner's legal counsel, if any, which shall be updated by the petitioner at all times; (2) A brief and concise factual statement of the petitioner's claim; (3) The law or rule involved; (4) The names of all respondents or identities against whom the petition is brought; and (5) A brief statement of the relief sought by the petitioner. (b) If the petitioner is not in substantial compliance with part (a), the authority may refuse to file the petition and may request the petitioner to submit an ame ded petition in compliance thereto. [Eff juN 3 0 d , (Au-: SLH 1992, Act 279, 52) (Imp: HRshs91-2; SLH 1992, Act 279, 52)

517-534-73 Action bv authority. Upon the filing of the petition, the chairperson of the authority shall: (1) Assign the petition for further proceedings before the authority or assign the matter to a hearings officer; and (2) Afford all parties in the matter an opportunity for hearin notice. [Eff #p 3 ifM!!e~ r~;zEb'&H 1992, Act 279, . ~ (Imp: HRS 591-g; SLH 1992, Act 279, 52)

517-534-74 Resnonse. Each respondent may file with the authority or hearings officer if the case has been assigned to one, a written response to the petition which shall state briefly a counter-statement of the facts, circumstances, law, rules, or reasons in defense thereof, and which shall specifically admit or deny the allegations of the petition. The response shall be filed at least five working days prior to the

534-20

517-534-77

hearing. [Eff &N 301994 ] (Auth: SLB 1992, Act 279, 52) (Imp: SLH 1992, Act 279, 52)

517-534-75 Notice. The authority or hearings officer shall, as soon as possible, provide notice to all parties of the scheduled hearing in such form and manner as provided by law. (Auth: SLH 1992, Act 279, 52) lEff(Im#JN ~Jg~91-~, 91- 9.5; SLH 1992, Act 279, 52)

517-534-76 Burden of proof: evidence. Except as otherwise provided by law, the party initiating the proceeding shall have the burden of proof, including the burden of producing evidence as well as the burden of persuasion. 1992, Act 279, 52) rEff(Imp?U%8@8-10(&);(?~i99~~Act 279, 52)

517-534-77 Procedure at hearina. Unless otherwise stipulated by the parties, which stipulation is approved by the authority or the hearings officer, all hearings shall proceed as follows: (1) The parties shall have the opportunity to make opening statements before any evidence is presented, unless they waive the opportunity. The opening statement shall be heard in the following order: (A) Petitioner's opening statement; and (B) Respondent's opening statement, unless respondent chooses to reserve same until after presentation of petitioner's evidence; (2) The petitioner's evidence shall be presented first and shall be followed by the presentation of evidence by respondent; (3) After presentation of the evidence in support of their respective cases, the parties shall have the opportunity to introduce rebuttal evidence. Rebuttal evidence shall be introduced in the same order as was followed with respect to the- introduction of evidence in support of their respective cases; (4) Each witness shall first be sworn under oath and shall be examined first by the party calling-the witness before cross-examination by the opposing party; 534-21

.- \I ,7 ,..

. 2%:

517-534-77

(5) After all evidence, including rebuttal evidence, has been presented, the parties shall have the opportunity to make,final argument. Final argument shall proceed as follows: (A) Petitioner's final argument; (B) Respondent's final argument; and (C) Petitioner's final argument in rebuttal which shall be limited to countering matters raised in respondent's final argument; and (6) The hearing shall be deemed closed after completion of all final arguments or upon filing of all permitted memoranda and other post-hearing submissions or upon the expiration of the time allowed for filing submissions, unless the time is extended, or upon the completion of taking further evidence, whichever is later. [Eff JUN 301994 ] (Auth: SLH 1992, Act 279, 52) (Imp: HRS 5591-9, 91-10; SLB 1992, Act 279, 52)

517-534-78 ProDosed findinos of fact and conclusions of law. Proposed findings of fact, conclusions of law, decisions, and orders shall be filed with the authority no later than seven business days after the day the proceedings were concluded, or such other time as may be established by the authority or hearings officer. [E;fmp JUN 3 0 19% ] (Auth: SLH 1992, Act 279, 52) r SLH 1992, Act 279, 52)

517-534-79 Authority's final decisions, orders, findings of fact, and conclusions of law. (a) The authority shall issue its final decision and order together with findings of fact and conclusions of law. The findings of fact, conclusions of law, final decisions, and orders shall be based upon the whole record and shall be supported by reliable, probative, and substantial evidence, including facts on which the authority properly took judicial notice. (b) If the proceedings were held before a hearings officer and exceptions were filed to the recommended decision, the authority shall afford the parties oral argument as to the exceptions, prior to the authority adoption of a decision and order and " findings of fact and conclusions of law. 534-22

517-534-80

(c) If any party has timely filed proposed findings of fact, the authority shall incorporate in its decision a ruling upon each proposed finding so presented, provided that a separate ruling on each proposed finding shall not be required. (d) The authority shall cause to have a certified copy of the decision and order and accompanying findings and conclusions, delivered or mailed within a reasonable time after their adoption by the authority, to each party or the party's authorized representative. (e) Appeal of the authority's final decision, order, ruling, or action may be made to the ' court as provided by law. [Eff (ImpJUN 3 0 199vrC;it (Auth: SLH 1992, Act 279, 52) : HRS 5591-11, 91- 12; SLH 1992, Act 279, 52)

517-534-80 Procedure before a hearinus officer; transmittal to authoritv. The following procedures shall apply before a hearings officer: (a) Upon conclusion of the proceedings before the hearings officer and following the timely submittal of proposed findings of fact, conclusions of law, and decision and order, the hearings officer shall prepare a recommended decision in the matter before the authority. (b) If the recommended decision is adverse to any party to the proceeding other than the authority, the recommended decision shall contain a statement of the reasons therefor and shall include a determination of each issue of fact or law necessary to the recommended decision, and it shall be served upon all parties. Any party adversely affected by the recommended decision may file exceptions thereto an may submit written argument in support of the exceptions to the authority, provided that the exceptions and argument shall be filed within ten days of the service of the recommended decision, or within such other time as may be designated by the hearings officer. (c) Following the expiration of the time specified in (b) above, or if not applicable, foilowing preparation of the recommended decision, the hearings officer shall transmit the entire record to the authority for action together with the recommended decision, any timely filed exceptions thereto, and any timely submitted written arguments in support of the exceptions. [Eff JUN 3(Jl994 ] (Auth: SLH 1992, Act 279, 52) (Imp: HRS sgl-11; SLH 1992, Act 279, S2)

534-23

.

§17-534-81

SUBCHAPTER8 MISCELLANEOUS PROVISIONS

$17-534-81 Severabilitv. If any part, section, sentence, clause, or phrase of this chapter, or its application to any person or transaction or other circumstances is for any reason held to be unconstitutional or invalid, the remaining parts, sections, sentences, clauses, and phrases of this chapter, or the application of this chapter to other persons or transactions or circumstances shall not be affected. [Eff N 3 0 19yImpl W-&;;,,““,c:‘;;4 Act 279, §3(12); HRS S# 6-10) : I I ~302); HRS §356-ld)

'§17-534-82 Number. The use of all words used in the singular shall extend to and include the plural. [Eff #j~$3~$9~o, 1 (;r: SLH l-2, Act 279, s3(12);. : SLH 1992, Act 279, S3(12); HRS 5356-10)

534-24

24 CFRCh. VIII (4-l-91 Ldlflor’ g 813.102 offlco of the AssIstant Soerotary, HUD (21 That has Handicapped As&- ment’ between the members and the Handicapped Person A Person estahllshes deflnltlons, ante Expenses greater than or equal &veratlve. havlng a physlcal or mental JmPti- procedures related to to three percent of Annual Income, au ---_ ment that (a) ls expected to be Of a DePiend&. A member of the Family and the determlnatlon allOWMCefor Handicapped Asslstan~ hnUSe hold texcludlng foster chlldrenl long-continued and lndeflnlte dura- income and rent for ap- Expenses computed ln accordance :;iir - ___than the Family head or spouse. tlon, tb) substantially hnpedes his or tenants ln housing asslst- with Paragraph (cl of thls se&Ion. plu ;;i;b’ Launder 18 years of age or ls a her ablllty to llve Independently, and an allowance for Medical Expenses DEabled Person or Handicapped (cl is of such a nature that such ablUtY could be improved by more suitable that ls equal to the Family’s Medical Person,or is a Full-time Student. Expenses: maabled person A person who ls housing condltlons. ant Rent, Total Tenant (31 That has Handicapped As&t. under a dlsablllty as defined ln section Zndfan Any person recoenlzed as Y Allowance and Utlll- ante Expensesthat are less than three 233 of the Social Security Act (42 being an Indtan or Alaska Natlve by t found hi 5 813.102 percent of Annual Income, an allow- U.S.C.4231,or who has a developmen- an lndlan tribe, the Federal Clovem- lies as&ted under ance for combined Handlcapped As. tal dlsablllty as defined ln se&Jon ment. or any State. aWancc Expenses and Medical Ex- 102(I) of the Developmental Dlsabll- Indian Housing Authorttr Air entltY pensesthat ls equal to the amount by itlen ASSIS~M~X and Bill of Rights A& that ls authorized to engage ln or which the sum of these expenses et iii-Ii&c. 6001(711. &r&t ln the development or operation ceedsthree percent of Annual Income: EZderty famtty. A Fnmfly whose head -- al lower income housing for Indlami and or spouse(or sole member) ls an Elder- that ls established either (a) by exer- (elf11 Chlld care expenses:or (2) ln ly, Disabled. or Handicapped Person. elseof the power of self-government of the case of famllles as&ted by Indian It may include two or more Elderly, an Indlan tribe independent of State housing author&s. the greater of (11 Disabled. or HandRapped Persons law; or fbl by operation of State law child care expenses, or ffll excessive llvlng together, or one or more of provldlng speclflcally for houslrur au- travel expenses.not to exceed $25 per these Persons lfvlng with one or more thorltles for Indlans, lncludlng region- family per week, for employment or i,lve-In Alder+.. $lk~lng authorltles In the State of education related travel. E&f&v pcmon. A person who by at Annual fncome See f813.106. mst 62 years of age. Indian tribe Any tribe, band, CTitZdcare erpenaea Amounts anthl- PamfIw.See deflnltlon ln Part 812 of pueblo, group, community. or natlOn pated to be pald by the Family for the this chapter. of Indians or Alaska Natives. . care of children under 13 years of age Full-time rtudent A person who ls Live-k aide A person who resides during the period of which Anuual canylng a subject load that ls consld- with an Elderly, Disabled. or Handl- Income ls computed, but only where ered full-tlme for day students under cappedPerson or Persons and who- such care ls necessary to enable a the standards and practlcea of the (a) Is detennlned to be essential to Family member to be gainfully em- educatlonal lnstltutlon attended. An klmny and well-b&g of the 6 813.102Dcflnltiona ployed or to further his or her educa- educatlonal lnstltutlon includes a vo- AdWted Income. Annual Income tlon and are only to the extent such catlonal school wlth a diploma or cer- tb) Is dot obligated for the support less the followlne allowances, deter- amounts not rehnbursed. The amount deducted shall reflect reasona- ___..~~ DNM’8IIL tuicate 86 well M an imt1tu- of the Personfsl; and mined ln accordance with BUD ln- ble tlon of&lng a college degree. (19 Would not be llvlng ln the unlt stmctIons: charges for child care. and. in the Groa8mnC The total montly cost of except to provide the necwrary sup- (a) $480for each Dependent: csse of child care necessary to- pennlt houslng an ellglble WY, which lil portlve servlcea fbl$400 for any Elderly Family; employment, the amount deducted the sum of the Contract Rent and MY (See (81LlOOfdl for troattnent of a (cl For any Family that ls not an El- shall not exceedthe amount of income Utlllty Allowance. In the caseof rental I&e-In Alde’a lncome.1 derly Famll~ but has a Bandlcapped received Contact from such employment. rent. The total amount of of only a manufactured home space. Lower Znconu Fa?nW. A Bmlly or Dlsabled member other than the rent speclfled Cross Rent also includes the I%d~‘s head of household or spouse, Handl- ante Paymentsln (HAP1 the Housing Assist monthIy payment to atnortlm the PUN- whose Annual Income does not extid capped Assistance Expenses ln excess payable Contract *as chsse price of the manufactured 66 percent of the median income for the area, as detenulned by HUD with of three percent of Annual Income and by HUD to the owner by the Family. home. but this allowance may not exceedthe 1~‘sbehalf. Inorthe the PHA on the Faml- Handicapped Addance ESP8WCr. adjustment8famllles. _......~ for smaller and larger ~. HUD may establish lncomf? employment income received by OXUY caseof the rental of Reasonable expensea that are &lCl- Family members who are 18 years of i tract Rent ls the totalhome a manufactured space,Con- pated, during the period for which llmtte hlgher or lower than 80 percent rent speclfled age or older as a result of the asslst- the HAP Contract as payable by the ln Annual Income la computed, for at- of the median income for the area on the bssls of Its flndlng that such oari- ance to the Handicapped or Disabled i.PHA and the lordly to the Owner for tendant care and auxDhrY apparatus ations are necessary because of the Person: for a Hlurdl~t~Ped or Dleabled MY prevahlng levels of constructlon costs fdl For MY Elderly Family rental of the space, lncludlng fees or member, and--that are neceasarY to or unusually charges for management and malnte- enable a Family member tlncludlng high or low family Ln- (11 That has no Handicapped Asslst- name services awe Expenses,an allowance for Medl- wfth respect to the the Handlcapped or Dlsabled member) comes. Medicat ezpendea.Those medical ex- cal Exuensesequal to the amount by space. but excluding utlllty charges for the manufactured home. In the csse to be employed, provided that the ex- penses are nelther paid to a memberf ptmses, lncludlng medical insurance l’!!which the Medical Expenses exceed Of a cooperative, Contract Rent means of the Family nor reimbursed by an1 premiums. that are antlcipated during hree percent of Annual Income; charges under the occupancy agree- the period for whfch Annual Income Is d outslde source. w 63 00

.

II

24 CFR Ch. VIII (4-I-91 Edition) 1 Office of the Assistant Socrotary, HUD

f-m under the Rent~~R~h&ilitation Dem- under the Rental Rehabliitation Dem- onstration Program; onstration Program. a3 I * . 9 ’ (2) Need for admission of a broader (d) Action on rewed for ezceptfon. 0 813.106Annus!income. range of tenants to preserve the finan- Whether to grant any request for ex- clal or management viabiiity of a ception is a matter committed by law (a) Annual income is the anticipated project becausethere is an insufficient to BUD’s sole discretion, and no impll- total Income from al! sources received number of potential applicants who cation is h&ended to be created that by the F%uuilyhead and spouse (even are Very Low-Income Families: the Department will seek to grant ap- if temporarily absent) and by each ad- (4) Commltment of an Owner to at- provals up to the maxhnum limits per- ditlonal member of the Family. lnciud- taining occupancy by Famiiies with a mitted by statute, nor is any presump- lna all net income dertved from assets under the foll broad rsnge of incomes, as evidenced tion of an entitlement to an exception for the la-month uerlod following the or which the effectlv in the application for develoPment.An created by the speciflcatlon of certain effective date of certification of application citing this basis should be grounds for exceptlon that BUD may Income. exclusive of certain types of supported by evidence that the Owner consider. HUD will review exceptions hicome as provided in paragraph tc) of is pursuing thJs goal throughout its 88. granted to Ownem or PHAs at regular this section. eitmce Payments Program for slated projects Ln the community; and intervaia BUD may withdraw permis- fb) Annual Income Includes, but is Construdtlon): (5) ProJect supervision by a State sion to exercise those exceptions for not lhnited to: (2) Part 881 G3ectlon 8 Housing sihance Payments Pro&ram for Sub- stantial Rehabllitatlon); occupancy . Houslnn Finance Agency havine a of by families with a ranxe of mcomes.supported by program applicants at any thne that (1) The full amount. before any pay- exceptions are not being used or after roll deductions, of wages and salaries, a perhdic revlew. based on the fmd- overtime pay, commissions. fees, tips (3) Part 882. subparts D and E (Sec- In&aof the review. and bonuses, and other compensation tion 8 Houslno Assistance Payments te) Rcportfng. PBAs and Owners for personal services: Program, Moderate Rehabllitatlon); shall comply with BBD-prescribed re- (2) The net income from operation (4) Part 883 (Section 8 Housing As- porting requlremenla that will permit of a busmeasor profession. Expendi- ristance Payments Proeram~tate ~~toinaintam reasonably current tures for business expansion or amor- Housing Agencies); : tixation of capltai indebtness shail not (5) Part 884 U3ectlon 8 Housing As- (1) The number of dwelMg units be used as deductions in determhiing &.ance Payments Program- New Con- that are subJect to paragraph (a) of net income. An aliowance for deprecia- structlon Set-Aalde for Se&Ion 615 this section; tion of assetsused In a businessor pro- Rural Rental Housing ProJects); (2) The number of dwelling units fesslon may be deducted, based on (6) Part 685 (Loans for Housing for that are subfect to paragraph tc) of straight lme depreciation, as provided the Elderly or Handicapped); this section for which HAP Contracts In Internal Revenue Service reguia- (7) Part 886, subpart A Wction 8 were first effective under part 882. tlons. Any withdrawal of cash or assets Housing Assistance Payments Pro- subpart B of this chapter on or after from the operation of a business or gram-Speclai Auocations (Loan Man- October 1, 1981 tincludlne new BAP profession will be included in Income. agementSet-Aside :or Contracts for Families for whom BAP except to the extent the withdrawal is (8) Part 886,subpart B or C (Sectlon Contracts had been ln effect before reimbursement of cash or assets in- 8 Housmg Assistance Payments Pro- whose participation vested in the operation by the Family; gram-Special Allocatlons (Disposition the Program has been continuous, and . that date for a dlfferent unit): of HUD-Owned ProJectsB. Uil) that wants to move to another (3) The number of Famllles occupy- (3) Interest, dividends, and other net (b) Request for exceatfon A request dwelling unit with continued partlcl- untta described in paragraph te)(l) income of any klnd from real or per- by a PBA or Owner for approval of ad- patlon in the Sectlon 8 ExJsting HOUS- is sectlon that were admitted to sonal property. Expenditures for am- mission of Lower Income Families LngProgram under IiJ82.2OBtm). tS on or after July 1. lB84 and ortlxatlon of capltai indebtednessshall other than Very LOW-InCOme FeUnllieS (2) A request by a PBA for BUD air- Very Low-Income Families not be used as a deduction in deter-’ I to units described in Paragraph (a) of prowl to pant a Certificate of Family mining net income. An allowance for this section must state the basis for re- Partlcipatlon under part 882, subparts ber of Famllles OWU~Y- depreciation is permitted only as au. auesting the exception and provide A and B or F, of this chapter on or ed hi paragraph ten% thorized In paragraph (b)(2) of this &pportii data Bases for exceptions after July 1. lB84 to Lower Income of this section h Certificates Issued se&ion. Any withdrawal of cash or ’ that may be considered by HUD in- Families other than Very Low-Income and were not assets from an investment will be in- clude th6 following: Families must state the basis for re- es when such cluded ln mcome,except to the extent (1) Lower Income Famllies that questing the exception and provide the withdrawal is rehnbursement of would otherwise be displaced from supporting data. One basis for excep- cash or assetsinvested by the Family. Section 8 Substantial Rehabilitation tion that may be consideredby BUD is Where the Femliy has Net Family or Moderate Rehabllltatlqn proJec& that Lower Income Families would Assets Ln excess of $6.000. Annuai (2) Lower Income Famihes that are otherwise be displaced or are actuaily Income shall include the greater of displaced as a result of Rental Reha- displaced as a result of Rental Reha- the actual income derived from ail Net W biiitatlon or Development activities as- bilitation or Development activities as- Family Assets or a percentage of the value of such Assetsbasedon the cur- -- UC 66 67 00

24 CFRCh. VIII (I-l* Fdition) offIce of tbo Aoststant Souotary, HUD 0 813.109 a result oE (I) Application of the per- &ram. or the Section 2SProgram on or DenclaP on the effective dak of the facton referred to In paramnpha (cl eenkeea in subsection tb) of this sec- after October 1,lBSl. and betore Otto. first reexamlnatton uslno the 1984re- (2) through (6) of this section. tion. -and (II) appllcatlon of the ber 1, lQ84, whose head of household, vised deflnltlonx of Income, shall not (8) The 1bnltatloN contrlned ln changedLnthe deflnltlons conklned In spouse or sole memberwsa 62 peara of be Increasedby more than 10 percent P~iimphs (cl (2) through (6) of this I( SlflO2 Md 813.106from deflnltiona age or older on the date of Canverslou duti& MY ll-month period as a result EtctlOn do not apply to Pamllles eub- of comparable terma In reaulationa Ln and that continued to reside In the of the converslon, and application of lect to Paragraph taMa) of thb rection f;fe$ lmmedlately prior to July 1, ssme prolect on November30.1983.At the changes ln the deflnltlons con- when the welfare agency includes as the fint regularly scheduled or lnkr- tained In llSlS.102 Md 813.106lrom the houslne component of the Paml- (3iSo long u a FWnlly whose Lalttal hn reexsmlnatlon for such Famlly defln&lOMOfcomparableterms In reg. ~Y’II &rant an amount equal to the lenxe was effective on or after August uslnq the 1984 revised deflnltlona o! uiatlow In effect ImmedJatelyprior to Tokl Tenant Payment, wtthout teduc- Llas2. but which wasIn occupancyon Income, the PLU or Owner shall r& July 1.1984. If a Family to which thla tlon. June 90, lB84, continues to reside Ln compuk the contrlbutlon due from panllrrph (c) l) would otherwise (10) In order to faellttak l dmlnlstra- the same project, Its Total Tenant such Family for the period from De. rpplY vacaks a unlt after November tlon of the llmttatlona provided In Payment shall not be Increased by cember 1. 1883,or ‘the date of conver- 30, lBg2. xnd before the Zlmt reexam- PUrgraDhs (cl (2) through (0 Md (0 more than 18 parcent dutig My It sion, whichever la later. to the effeG Lnrtlon ~lne the 1084 revtued deflni- of thla sectton. upon any regular or In- month period as a result of apptication ttve date of such reexamination. Such MOMof. income, the PRA or Owner kthn reexunlnatlon of a Fkmlly of the chMge6 ln the definitions con- recomputation shall be bssedon M a$- wlil notify the Fclmlty of the posslbllt- which WM in oceu~ancy on June 30. klned In I) 813.102and 813.108from rumptlon that the Famll~‘8 contrlbu- ty of a rent WJJNtment for the period 1084,the PRA or Owner ahall contln- definltlons of comparableterms ln tep tlon hnmedlakty prior to conversion commenclnoDecember1,1983 tor the ue k WUeCt Md Verify InfOrnWlOn ulsttona Lnettect lmmedlaklY prior to was the lesser of (1) the actual contrl- date of converston. If later). In order which would have beea Wen lnto ac- July 1.1984. butlon charged to the FamllY. or (II) to obtain a refund, euch a Funfly must count In calculating Annual Income 14) Sn the CUKIof a Furrily recelvinr 25% of xuch Rmlly’a Annual Income sub& twfthln 60 days of recetvh~gthe Md Annual Income After AUowMcea, ren atudsknce under Sectton 621(a) Afkr Allowances as dekrmlned as of notlr& 8 request therefor, huWUn6 a aa dellned In te6ulatlonx La effect lin- ol tY e Ho~lng Act of 1640on Novem- the date of converston or, It no reex- current addrexa to which any refund medlakly prior to July 1, 1984.is If ber 30. 1882.whose assistanceIs con- amfnatlon wax conducted ea of such canbesent.XbranyFunUymaking such reeulatiom were La effect at the verte& to Se&Ion 6 es&ance on or date. aa determIned at the first reex- such a timely tcquat. the PRA or data of xuch teexamlnatlon. after such dak. the Total Tenant Parr- amlnatloa thereafkr. The contribu. Owner will make all calculatIona nec- (11) The Umftatlonr ptexcrlbed In bent payible b;psuch IWnlly shall nit tton of ouch mny for perloda tollow- cssuy to dekrmlns whether an ad- ~upa@a tc) (2) throuqh (61,of this be iucreawl by more than 10 percent lne conversion and prior to the etfeo JustmentIr due k the Pam@+under mtloa, rhall be applkd ha accordance dmino MY llaonth period 01 a renult ilve dik of the tlist reexamluatlao tblr paragraph tcW6) end, U eo, the with proceduresprescribed by HUD. of (Oiucli convenlo& and (1) If such urdng the 1684 tevbsed deflnlttonx of amount of any mch adjNtDlellt will (Approvedby tbr Offlcs of Uwement FMIUY wu ln OCCUPM~Y on June aa. Income,shell be recomputedon a bulr llrst be Offm agairut my UDounta snd&aet UndeYemltrot ol?mberam- 1084.ind conthmei ta iexlde Ln thti whtch providea that such contrlbutton due from the Funny and mg 6ectlon same prolect. l ppllcitlon of the la not huzeaxed by more thaa 10% 8 damage and rent claltna HUD hu changesln the deflnltlons conk&d In durkg tiy 12.month petlod aaa result pald to the Owner on the FWnUy% ii612.102 and 819.106from defhdttona of convetion. If the cantrlbutlon rehr: behalf,and any balance wlff be mfund- ol comparable km8 in reeulatlom ln allo chav6ed to such PamW durlnl d to the Rkmllg. ;;\Wt immediakly prior to July 1, the period commenolag December C (7) For the purpo8m of pammap la82 tot the dak of converxloa. tl (d (1) tbrou&h (6) of tbla sectlen. t& t&i Thh pam6raph (aHI) appltex to later) exti the maslmum UUOUII! “same proJeW includes- ey IjkmJ!y that Fu eont$ted to +c- chargeable accordIn to euch recomp* 0) For the Publle Ho* Section tlon 8 asslstanmfrom aaslstanceUIIdet t&Ion, the exwm unount CoUcCkd lo(e), Sectlost11. and 6ectlon 6 &I&.- the Rent Supplement Pro6run. the rhnll tlrst be offset mt ral ku Roe @tndcts-Keeue~l and Bectlon 386 RenW As&knee Pro- uuounk duo fmy the IWWI&‘~to jh! tkderak Rehabllltatlou Program& grun, or the 8eetlon 22 Profitam on or PHA or Owner and any rem8Wn6 bal unltrInthesunetwogmmof l PHA after October 1, 1964.whose head of lace ahall be the amount due to the Ma la the CMe of M ltlvolunkry household, spouseor sole member was Family, This amount due the FemQ mom lmtk In any of a PHA’a pro. 62 years of age or older on the date of may be paid to the Funfly. or It maI Inmr;Md convenlon. So long as such IFkmlly be applied as a credit k the Tenral (11)For all other pro6ramm.unik la coattnues to reside In the came Rent due lmmedlatety afkr the effoo . proJect, lte Total Tenant Pxyment ttve date of such reexamlnatlon. If tbl bulldlapl located la adjacent rttex that shall not be lncressedby more thM 10 amount of My such credit to a Pamlll M manreed 91one pro&&. percent durlne sny 12.month period ax exceeb IS percent of the TOW (8) The Umltattoar coatalned Irr a result of ruch conversion. Tenant Payment due from ~UCII p-~hs (cl (2) through (6) of thla (6) This Paragraph tcW3) l p ltes to Family, such credit may be applted Ia Wlon do aot apply to portlana of In. MY l?amUy that waa converte8 k Sec- not more thsn four Installmenta. d ~aiea In Tow Tenant Payment tion 8 assistancefrom assistanceunder long sa such FMIUY continues I which ue attdbukble to incresses ln r_ the Rent Supplement Program. the reside In the same prolect, Its To& hme or chrnges ln Dually compost- Section 236 Rental Assisknce Pro- Tenant Payment for Perlods corn Uonor clrcumstancw unrelated to the e en 70 71 00

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0” 0

-...-- “I . ..v ~..I.lYlll arnorory, nuu 5 888.113 6 888.1 IS 24 CFR C’ II (Cl-91 EdItion) --- frcm Census or American Housing Fair Market Rent applicable to the ed homes under the Sec- Survey MIS) data are used to estab- unit size being leas&, for examule. a elude all utlUtles but does Include the ,.tlficate Pmlmm (Dart 882. llsh 46th percent&e rents for efflclen- four-bedroom unit U the reaidence highest cost utlllty. use the appropti- the Se&n 6 Moderate cles and one-bedroom u&s. Higher contalns four bedmcma ate factor shown on the bnsic sched- Promam tDlUt 882.sub- Percentage relationshlps are provided ule. for unIta that contain three or more 8886.116 Fair market renti for erlatlng (3) If the ‘Contract Rent doesnot tn. bedrooms. Manufactured home space hourlng and mode&8 &ablUwLo~lr elude any utllltles or Includes some F’MRs are establlshed for slngle-wlde Mumer af publlcatlon. utllltles but not the highest cost utlJI. and double-tide apaces. F’alr market rents w&Ube publlshd ty. use the Annual AdJustment Factor (d) Dala base HUD uses the most at least annufally In the Fcucn~I. RR)- $&,Contract Rent (Excluding Utul- recent Census and American Houslng mm!. The Department will pmpose . Survey MEIS) data to develop base F%dR.and pmotde a comment period (b) The adJustedmonthly amount of tents that correspond to the deslgnat- of at least 30 days. Once the comments the Contract Rent of a dwelling unit ed 46th percentile, standard uuaUty, are considered the Department will rhaU be determlned by multlprJrtng 8885.113Fdr market renta lor ullng recent-mover FMR standard Zor each publish a final not&e 8nnounclu2 the Contract Rent in Effect on the an- howlng snd modarrte nhsbllltsdonr market area These base renta are UD- FbtRs. These FMBa MI be effective niversary date of the contract by the Methodology. dated to the most recent possible date on publkutlon In the m Rune- aupllcable Automatlo Annual Adjust. (a) C?enmzLThe crlterla used to de- through use of avallable Consumer m, meut Factor (see parqraph (a) of thh termlnc the Existing HousIng FMRs Prlce.Index (CPI) data for rents, and se&Ion) and rounding the result to the are M foUow6:(1) The 46th percentlIe for fuel and utllltles. The updated rent next Ngher whole dollar amount. -at of standard quality rental hour- estlmates then arc trended fonvard to ag unlfd (Cc, the rent below which 46 a designated %a of” date by using rent percent of the standard quallty tental lnflatlon factors based on the CPI houslng uulta with@ each market area data for the most recent available 12- .- Is dlatributedX (21 renta for unIti occu- month period. In establIshhw FMRa -. pled by recent tuovctd (households each pear, HUD will use the m&t ac- 6868.20( Rwkion to the wtomtik who moved In the two pears precedlno curatb data available, which maY h- annual adJurtmnt factors. the data of the durver data tied In thi elude such things as new census data If the apDllCrrtiOnOf the Annual Ad- alculaUonak and (2) excluston from or addlt1one.l data developed in re- justment IFgctors results In rents that the data base of all pub& housing sponse t.a sudden chances in market are 8ubstanthtlly _- lower than renti u&s and recently completed housing cOndlttons. Any addltiokl data used (tmlta built ln the two years preceding will be described ln the FanxaU Rcurs- the survey date). The erlterlon used to xxx publication of the proposed FMRs calwlate FIURa for mahufactured for comment. home spaceaIs based on the 46th per- tei SpccUtc categoriw-co7nuulo- centlle rent for manufactured home tton (11 The FMRs for the Moderate rrp-. RehabUJtatlon Program are 120 Per- (b) GeoeraoMc atia (1) The Fair cent of the FMRs pubUshed for the Market Rk& for exlstlnr housing are temhr EMstIng Houslno Program. appropdata to the establlshed for all Metropolitan Statls- (2) Fslr Market Rents for manufac- revlwd factme me 4 88g.fW. tlcal Areas (MSAs) Primary Metropoll- tured home spaces are derived from tan Statlstkal Areas WMSAs). nonme- the use of a single rent lnflatlon factor t4? FR 00608,Nov.111,lsn, u sawded at tropolltan counties, and county developed from the CPI In a manner ;; P’R~~‘“, Do+ 20.1019:47PR 4353.Jan. -whlentd ln the United States. the slmllar to that used for the regular . krict of Columbia Puerto Ric& the Exlstlng Housing Program, but exclud- 8865.203u8ooleoatwctrwt8nbmatk rllrgln Islands, and CWam.FMRs also lng data pertding to fuel and utffl- sanud odjuema ledmm. are estsbllshed for aonmetropolltan t&A. parta of counttea In the New England (3) The Fair Market Rent for each (a) To compute an adjustment to a states. Slugle Room Occu~ancrrunit 1576 per- Contract Rent, find the schedule of (2) FMRs for manufaotured home gzetof the zero-b&&m EWr bfarket Automatic AImual Acmltalent WC- suaees are established lot all MSAs. tax for the appmarlate Census l%fSAs, ‘selected nonmettopolltati (4I’The Fats Market Rent Ior each Region or Standa& Metmuolltan Sta- countles, and the residual nonmetm- Congregate Housing unit Is the same tlstkal.Area- wUtan mrtion of each State. as for zero-bedroomu&s, except that (1) If the Contract Rent Includes all tc) dttcgorles. Exitlne houstng If the unit consists of two or more pri- utllltiee. uec.the factor showu on the FMRs are established by unit size (Ce. vate rooms. the Fsir Market Rent Is basic schedule for the rent bracket number of bedrooms). &se rents rud the same&for a one-bedroom Unit. wUhln which the par%lcular Contract establIshedfor two-bedroomunits. and (5) The Fair Market Rent for sn In- Rent falls and for the applkable sfie pe#$age relationships developed dependent aroup Residence is the e 44 so9 610 PR 00

EXHIBIT B OWNER ASSISTANCE AMOUNTS

CONSTRUCTION GRANTS

Constructing Improving and and Buildina Renovatinq

0 Bedroom $6,000.00 $4,500.00

1 or more Bedroom(s) $7,500.00 $6,000.00

RENT ASSISTANCE LIMITS

0 Bedroom $200.00

1 or more Bedrooms $300.00

1’758