HomeMy WebLinkAbout06.06.1972Or.,.VAt* Pa-<:a'*.)
VILLAGE PLEWOOD
1380 FROST AVENUE MAPLEWOOO, MINNESOTA 55109
Nay 23, 1972
H i s Honor the llayor
Mrs . 0lson & Gentl emen of the Counci I
t4ike Mi l ler
Bai Iey Sei da
Don Ashworth
As a prelude to joining us the "u"n'inE of June 6th to discuss
'i n detail the low to moderate income housing resolution pre-
sented to the Counci 1 in Apri1, we are encl os i ng copi es of
materi al perti nent to 235 and 236, pl us mi nutes of meetings
covering those areas, as requested.
}Je shall iook forward with pleasure to your visit on the 6th.
,hl*,^ /,,---.,."-
Mari a( 14. Larsen, Secretary
I'laplewood Human Rel ati ons-
COMIVISSION
HUMAN
R IGHTS
Commission
tiHRC Monthly Business Meeting 4/4/12
Chai rman Broady, Messrs Ray, Lowery., Jessup, Bransford
Bradford, Pegues; Ms Hughes , Grant & Larsen
C
Present:
Guests:
General
Betty Jones,
Bus i ness
Caro l Bruce & J im Laukkanen HUD
Chairman Broady thanked those that participated in the adult education
program at his church. Wel I accepted.
Membership: Discussion on the possibility of reducing size ofcommission. Consensus; no. Leave at complement of .l5.
Memberships wi ll be discussed as topic for May agenda.
0ur HUD guests had been invited for the March meeting; since they hadnot been able to attend we wel comed them this evening. Follovring isa resume of the eveni ng. Pl ease kee p in mi nd that a'l though a s peci fi csite and request is what started us delving into the 235 and 236 areas,
our basic goal is to implement I our to moderate income housing in
Maplewood; be it the "Priory" site or any other in the future.
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a. Inasmuch as our main concern are supplemental programs that canbe tapped in connection with 235 and 236 programs, are there any
a I terna ti ves to those speci fi c prog rams that we shou ld I ook into
f i rst?A. No! There are other programs e.g. "new communities" conceptbut would not apply to our particular concerns. The "new communi-ties"concept pul ls together all the establ ished programs to create anideal "community"i this is an experimental program with "Jonathan" asprime example. These communities are federa
shares in the "corporation"; ownership is in.not in the individual home. 0ur plan would
ment.
municipal i nvol vement under 235 and 236. A priva
actual i ty, has no "ob 1 i gati on " to approach the mu
"permission" to build. Can s ubmi t app li cati on toit approved and s tart construction; he would only
I lv
thebe a
i ns ured; peopl e buy
tota I devel opment,
"subdi vi sion" deve1op-
el oper, i n
1i ty for
ge office, get
to meet techni-
a. lJould it be feasibie to form a "housing authority" in Maplewood?A. 235 & 236 are geared to "moderate" to "low" income users; housing
authori ty is gea red to stri ctly "low" e.g. your hous i ng "projects".(A village cannot apply for 236 housing. The governing body would set
up housing authority; this would be "arm"of city government and run byfi ve member board; can get direct HUD grants. This would be a public
corporation; housing authority ends up "owning" and operabi ng this housing;
40 year bonds sold on project; contributions made by HUD annually to pay
i nterest on bonds; con tra c t to have project built.) Conversely, theproject can al so be bui 1t compi etely through pri vate methods withoutte dev
n ic i pa
vi I la
needcal standards of municipality by having control of the land and seeingto it that it is properly zoned. The HUD office ends up sneaking in
the back door under those circumstances. In actuality, HUD will not
approve any application for subsidized housing unless they know that
the community and its administrators are aware that the application is
in the HUD offi ce.
a
A
2-MHRC Business Meeting 4/4/72
Does a development of moderate to Iow
assessed va l ue of the property?
No! Tax abatement is down; valuation
there a "supplemental " program that. hook up to water etc.?
Must a community meet "eligibi l ity" requirements?
No! However, "income limits" for each locality
set and there are pri ori ti es th at mus t be met.
mate ri a l attached ).
have b een previous 1Y
(i ncome l imi ts
i ncome housing drop the
'i s not.
can take care of the utilities
\,
q
A
a
A
Is
e.g
Yes
a. Hi ri se developments have not proved feasible; do you con
scattered, low density, housing of paramount importance?
A. Depends! High density in bi9 cities now prohibited by la
elierly feel more at home in high density area;makes for
ori entati on. Project sel ecti on cri teri a i nvoi ves amon g o
resources community has to offer, Iand and space as. distingui
Metro area, public'services, schools, recreat'ion, shopping; a
be taken i nto account to dec i de on a mix of fami 1y ' apartment
townhouses or whatever. HUD involves itself in al I aspects o
ment prior to construction, if the community has commited its
the Iist thing they want to do is to subsidize a "lousy" proi
would give guidance to try to avoid as many pitfalls as possi
A wel I pl anned project mus t proiect us er market.
t.lhat is "low" income?
135% of "moderate " i ncome. ( see attached)
Would you generai 1y ag ree that housing for e1der1y. coul d
way to acceptance by -ommunity of low to moderate income
Yes. Real i sti c approach ; however, woui d not generate any
or express nee d for fami ly housing.
Explain "priorities" Please.Proximity to metro area would be
broades t possibie range of i n come
space etc.
s i de r
w. However ,
commu n i tyther th ings,
shed f rom
I I woul ds andf devel op-
el f , asect. They
bl e.
Y a
A
a
A
well be a
housing?
i nterest
onea
A
a
A
and
a proj ect i on to serve the
personal requirements;
Funds are limited and demand is great; only 20% of the requests can
be served. 0f necessity, HUD must be choosy.
a. Is there any chance for legislation to increase funds?
A. Have no reading. Most proposed legislation has been towards
consolidation of hous i ng authori ti es and agenci es. HUD would
favor such a consol i dati on.
How much subsidation could be given utilities?
1/3.
3-MHRC Business Meeti ng 4/4/72
Paragraph 4, Section l0l. Rent
wi th 235.
a. Shoul d utilities and se rv i ces be oart ofA. Yes. Commitments for all services wouldand part of the comprehensive proqram or
h ave to be consi derbd adequate.
a. Do you review "on s.ite,,? A. yes.
appi i cati on package to HUD?have to be a certai nty
package . Servi ces woul d
Supplement used in conjuncti onComment:
Enables a^developer to rower his rents. 0n top of estabrished 235subsidy,20% of the units jn any given project are.ilgiUju to. unadditional rent s uppl ement. Th; ienter'of those units"has to mee t evenrovrer r n come rimits than those of. puq!ig hous i ng. If qual i fi ed pay nomore . th an 25% of the i r i ncome. Th; d i fference Setween 'the 25% aird" tt ebasic rent is made up di rec y to the owner of the project by federalHUD subsidy. Section l0l cannot be tapped uniess the iommunity govern-i ng body has appro ved a resor ut ion authbri zing-ihe -use-6i iot rent
:uppl ement i n that project. Th is woul d be a nstatement of .i ntent,, .rr a z3b project is bui 1t in l,laplewood and the counci I passes thenecessary resol uti o!(i) ,. the s ponsors of that project cbul d use rentsupplement tn 20% of their units. serve much broider income range thisway.
// / / / // / // // / // // / //// /// // ///
The council has called a public meeting on the Raditz matter forMay llth and would like a statement f16m the MHRC about it.
Resoiution to the counci I was discussed. Mi nor correcti ons were madeand a last "whereas" was inserted. Motion made ana ii."iea tnatsaid.resol utjon.be. presented to the Vi l.l ug" Corn-ii, -io"'
Ir,rei "cons-rderation' Apri l 20th, 1972. As many-commission members as possibleshoui d attend the counci l meeti ng. Also, we shal l h ave ai Ieast oneresource. pers0n to fal r back on to i ntel l igently fi eld questions.No position is to be.taken.by any ag"niy; Secreiary wili-ial l HUD andthe Metro council and..see if-they will iccept an i-nvitation to attendthe Council meeting. We are anxiLus to appeir as wel t preparea aspossible.
Si nce ^a. quorum was I acki ng in March,not officiai 1y approved. -Motion
made
mr nutes be approved as mai Ied.
February 1, 1972
and carri ed this
mi nutes
eveni ng
were
th at
C
Maria Larsen, Secretary
Maplewood Human Rel ati ons Commission
4
VILLAGE OF },,{APLEWOOD
t'
\ \\'
MAPLEWOOD, MINNESOTA 55I09
4/20/72
l'lhereas, the l'la p I ewo
devel opntent of lot't and mo
l'lapl evrood rvhen these deve
physical and sociai devel
l.lhereas, the lletropo
Pro pos a I dated Decentber I
a high pri ori ty area for
Hurnan Relations Conrmission supports the
ate i ncome housi ng in the Vil la ge of
llents are in accorda n ce wi th sound,
ent cri teri a, and
an Counci I l nteri m Hous i ng A1 location
'l 97'l, I jsts the Vi llage of Maplevrood as
devel opment of I ow and moderate i ncome
od
der
I op
opnlir
5,
the
hous i ng, and
t,tiiereas, Section 236 and 235 of the ilational Housing Act of l96B
provides for the construction of housing units for sale or rent to
?amilies of individuals r'r i th limited incotre, and
l'lhereas , under the prov is ion of Secti on l0l of the Hous i ng &
Urban Development Act of l965, the Secretary of [lousing- & Urban
Development is authori zed to enter into contracts to mak e addi tional
rent supplement p ayne n ts to certai n qua 1i fi ed housing owne rs on behalf
of oualifiea torv'iicome famili€S tlId indiv'i duais who are elderly,
handi capped, dispiaced by public acti on, victims of natural disaster,
or occupants of substandard housi ng, and
l{hbreas, provi s i ons of said Secti on l0l cannot be ma de availabie
to housing orvnbrs in certain local ities unless the governing.body of
that Iocuiity has by resolution given approval for such particip.ation
in the Federal Rent Supplement Prog nam, and' llhereas, both the' bepartment 6f Housi ng & Urban Deveiopment and
the Metropolitan Council, r'rh j ch also screens all.applicants for
the l{ousiirg & Urban Deveiopment fund allotnents in the Trvin Cities
area, g.i ve prior.i ty to communities providing l otv and moderate incorne
trousing wheh they evaluate any requbst for Housin9 & Urban Development
monies] for any furpos e e.g. hous i ng, utilities' open space' pub)ic
servi ces, pub lic faciIities;
Now therefore, be it resolved by the Maplervood Human Re lations
Commi s s ion as follotvs:'The I'lapi et'rood l{unan Relations Commiss'i on hereby recomntends the
adoption of a resolution by the I'laplewood Village Counci'l .approving:' I. The devel opment oi federal iy subsjdized hous i ng in the
!tiilage of llapievtood when the housing proposals are in
accordance r'ti th sound, physica1 and social development
criteria;2. Participation in the Federal Rent Supplement Progrant in
order tb make a pont'i on of these federaily subsidized units
avai I abl e to fanlilies and indiViduals of low i ncome.
t::
COMMISSION
HUMAN
RIGHTS
********************
I38O FROST AVENUE
\.#
DSPAP.TJiEN:I OF F.OUSI]IG fu';9 C'.AI';{ DI'T'I.P!':I':I
'I,.jnneapolis_5t' ?aul "''':'l
Cf:lc9
Gri88s lLid'll' !u:--l:nj
1821 U:live.sitY AreiJ', i:is i--il.'Po"r, ul'ule'o:1 55101 '
Febr':nr:/ 1172
sl,tctr0il
I - OtilE,.A!: Sec',ion zii of Ult Ho*sii'a "''L
has been cr:i'bli'\:J lo
' ffit.,,"," and i::iil e t"""l"i--t i'"t'.'I:;-.:-i'::":':,,: ;:..:'::*to buv a ho::' . tc ":::::. i:';::-j;::..::X.;: ";l;".;.;; -.i,.o',' -:',*
poss€s3i:o:l tilat acco:?3!l]'es-"-"aa-rra" il:ni:i-Jf rnco:'-e nec'ssary to cal'y a Ecrtaa5t'
!ei-^t!e..p:f,i.r-.raro-rrs : - - 3. -
f 3llii].,':li;;:"i: ";li!)in'. *"
Section 215, p.o'/icres as rr s!al";."'.r"r;-;';r-;r;-p"
"""." i: U't.
lH::il.:':x:t l:::;:":":T;j-:";: ;i,:.::r.::;ri:;-:::";1,iil::";i,
lli :i::::"i,U:"1{"'}iXl;, ;:;::J'i:i;i;"-i' ::::r:' interest'
taxes, insur3-ncc ' and tho Fd' ;;;i;ttt insurance '"=AT:
fr"
nortsase roan is finarrced ;il";; ":-;;#;r lendl;€ institutio:l-bark '
;;;;;-;-i.* association, or Ecrtsase banker'
2 wllo IS EI-IGIBLE: Eliaibfe epplicanrs aI.e those uho qu'lify as a
-' ;r;;fi?r-that ar so meeti *!"li".""ii"l' i,:;::.*? i::"1"'llitltto:rs'
For the puryose "r .nr" n":::",1;.:, il't,rt=ir"i-",
-i",,
u,l,o o"".,py
'*;:":H."'*il:"""il"11ii3;r;r;";:;;, or a singr-e person 52 vers
of age or older. Apprican;: il";;]";; ace-eptable c'edit record'
l. Er.rg{-Bp--u.ov-s.!-:c, , ,j:y.:";":::"1;i}'r.."i.Fl:".;'i;:,ftltl#}*
:Xi:ii[" ":,:ii:# ;;tFI - ",'i-" :' ff"i-",',, ; " i'ho arc rouna to b e
elt8ible for aBSj.stance.
tEeclr,E-gus+pl ?1,99:-"::';:;; .l'.I333 FJ"li"iloli"io,lij,,DroDeriies consistin4 ol' l our
:;"i;;:- ;"" ;;;- ;;; ;;,;. *. tlix i:T::::"::1"";' Ii uf B.'n?".1"'
in effecL at the '.ili'e thc-apt!
;;":;;; ;";;'
"
-
zi,
- or* i i:'::I. "iri;1*'.::;:;1;;.tTyi:;...pre!:riu'n. i4aKilr.um thirly year
which c'ay bc cash or errt sv ie-':ii-o'":]":l::i::'::.::]""rllil1;="",
this riaT be usec to eav ?r.ir11oa:;;; ;-.";;;;"; J"iirea, u"t :ay
rlay be increased to r_'iuce th€
notbeusedtoobtai:!unt.t"'iti""rproperty'Tcedok'llFaynent
tlay not be borrolied.
SALESPSICE:l6ynotexcee.Ltheatover3xicr:ngfusri2cc'-inc].uci:18
ffi**;-;;;".'-'m"-:'zio'i" to"ue-'sea to r'iuce th3 sellin6 ptice
to the lr,ar.iiiuri rort5a6e. rt' no-it* ray t|'e sellin6 p:'ice exceed
ttre FlLl valuation, includin8 closit€ costs'
4
l.'
G,-
-r-
E. tSqEqS-: Afsets canno'u exceed :,2,occ (,:r,coo for ove. aae 52). Add
55OO for ee.ctr C:r1e:1Ce.1r", plu3 an $un: .qu.il to ap;lica:lt's 3h3fa
o, $oat!,]-je prii.:;it foa olle isti', .}iJ'.etJ ilr'e ccnsi.ie!'ed tc 'c?
lrone7 in *"hi bli:-i, c:l:ckins, s2vr,_1s5, .'"c, stocksr bcnds t_:d eqtiity
lrt reol estate. :lcuscllold fuJr.isi1i.-se, ?.pp1iances, !'ee!ea::o:r
equip::e:rt, etc, a!'e nrt cotsiC3rei a5-!9iJ.
?. Rmgq:r I i-q-.-:ii-Crl pl-!'icl:E: !,1c:1thl.y asrist3.:1.e payr:.nts a.e izcaf-
culated at ti,-.: a:11 ol e3cb t.,ro'i-e3r F.,./i?nt con+"iir.ci t.:[, 'c.rs3d on
the fer,ii.l''s r':. -':'tiii catio:l oi i:l.c::re lid ccnposiij.cn. i-i1e ae.eati-
fLcatio:r lr-ifl ior::: tL3 tl.sis for anlauL3ilcn by thJ Lendsr '-c ;':lie
eny neca3sa-r]' arCjrst:ai'"3 in _.he asslli.-n.e payEen: b'rin3 -:::C.
1'.,, n.ELq.T ? CF R-r:'!-t-LY Ig SIZS O: Lfv:13 Ul:Tt: Sect.i.qr1 215 i3 to bc
adraLnistergd to 3ccc.ci a prefereoca to ihcse faloilles hsvias the
gre&test naaC.
Ihe follol.rina crite.i3 apply to appLlcatioDs for: Sectioi 2J5
5oees.
1. .e.n elde!'Ly o, herdicapped irrd1l'iCual 1s eLigible for a
,ne bedroo:n unit,
2. A tvo or three pe.son fan:tly is eliSibLe for a t','o bediooi
crit. However, if no tlfo bedloor u:dts ,lre.availabfe, the f?-!ri1y
:ould quaLlfy for a thi ee bedroo5 unit.
J. A fou.r person farrity is e118ib1e for a th-ree bedroor trnlt.
4. A five or Eore p€rson fa4ily is eLiaible for a four bedlooo
trtit.
.:!@!E-jE,'I:J.: sectioo 2)5 is liEdted to lore. iico:re fa5.:Lies.
|y statute, the paograi !.,\.rst be a&:rj.stered to give paiority to
.8Ei1ies rihose incci.es are liithin tha lot.tes; },ork1bl. liEts tor
.chievina hcngo',.i:ersbip. fna gross fajljly incor.e 1s adiuslr€d in
;be r.armer describ3d uxder iteE 7 to C--tet-.drie the faarj.lyrs adiusted
lt.urrla]. inco:xs. the ioll owi:ra ia3.,:r:" 1i+ts ale used oa.-Ly
lurinS the jnitial qualifj.ca',io:1 of a bLl'er. fo exceed tirese
Lidits afte! initial occuJancy Cces not :-.t,:essarily tettj.na'-e
tssls'vance peynents. ?ecertification oi incore l,Iilf occur a
ainisu:ir of every tr.ro yeers, e.r,C 6 fanily !rj..l,] cortLilue to pay at
lezst 2Al of thejr incoae.
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Co'.5tt 3a L.3a1rtv
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iiern.piI
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!:ui. - rr or' Pe!.soa.i :r. J-:i:...
= l=, -j::i-=_'-_j_-:._ " si459J ic llj -;-liJ i7:-i jl ..;)'l: .-.iJ ;9i5 5liSr;i?J ;r-.ir o72i0 3?all :.,.)i/C .::..\) 39)!5 ljacCiii?o ii;;j ',1!25 ;iL) :,?riJ .r.-.tl a91,,5 .:,ra.:i
s->c-t i',_i'!.) :.e2), :izj);;jLl .r;__l ,i";j,;..ti
9i59,r t5l:,i :t7 Z,.x 313)-1 -3:7a - ... :. :i",cc sgr-,osl85c ijitr.c :t7.1;.1 :31?o ..ljj.j ii?.) ;9.00 :;a.J$4590 ;5)rri |,729c 378]. l3r7c jarij ;ilt> ;sllx
9 lo
;.)1co ))99J
-:,igcc )irio
a\93co ;);?o
,:)a.:tj ;)))o
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:ii3oc :r9rc
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f:1 cor::"e.rdties of lesJ il-:an 5,500 pop.rlatic:1, a!:d for pro?ertie3located in tural aiear, both the Fa:r:9rs fic:-- ;J:inistrarioa a.laFiIA have autho:.ity tc orj;tnate casas arj obji63te assj.stancepay;ents, f\.rather in:c.m3iio!! on this poriion of ihe program
cen be obtained fron the Local Co,..Lity Su-oerviscr of tire f,irners-.Hotie_,P-Ciinistration. CountT inccne Liniis rot listed abcve rsybe obtaiied froa H.U.D. ,i.ea Office (See letterhead for aaeress).
Iiol.l T0 .!-PPLY: Suyers dc hot appLy directly to the Departdent of}jouilr€ ar.l Urban D.ve1o;i.rnt (H.U.D.)- For bi.:ying eirher ane).jstir€ hore or bldldin6 e ho::a, buyers sho,.r-id foIlo, nolrnal hor,-bt4ring procedules. Contact shou]C be caCe ,ritb lealtcrs, br.Litders,l€nders, etc. In each instance, discuss your needs and ask that they
1""1:t y9! j.n obt€.uin€ a borie th.or€h the special subsidy or-Sectiol 2]5.
lte application to i{.U.D. is &ade by the lenCer. fne buyer stloulddiscuss his sitrEtion lrith the fender early in -"he process of bwj.nga hone.
For tha fa::dly lrith special probl.ecrs or uxusu3l cit,c,fistances,
Please ulite to the ad.Jress on the heading. Direct yo,x, letterti'Lttr full particulars and telepho4e mrnber to Assistint Directorfor Sin€te Failily Orierations.
HU D-FHA ASSISTED PHOGBAM
F0B Low-RENT puBlrc HousrNG pRoGRAM
WHAT IT IS
I A program to help public agencies to provide decent,
sale and sanitary housing for low-income families at
rents they can afford.
CONVENTIONAL CONSTF UCTION
r The LHA acquires a site and contracts with architects
and planners to prepare plans and specifications
covering the proposed projecl.
i Competitive bidding is done on the LHA plans, and
the lowest responsible bidder is awarded the
construction contract,
TURNKEY CONSTRUCTION
r A private developer or builder who has a site or a
site optioo may either approach an LHA with a pro-
posal to build, or respond to an advertisement tor
proposals published by the LHA. ln all cases, LHA'S
will advertise to ensure fair competition.
r Proposals are evaluated by the LHA and HUD with
respect to site. design and construction plans, the
developer's credentials, and costs.I lf a developer's proposal is acceptable to the LHA and
HUD. the LHA enters into a Contract of Sale with the
developer under which it agrees to purchase the
completed development when it is iinished.
COST LIMITATIONS
r Cost limitations are established on a per-room basis
according to regulations established under the United
States Housing Act. They differ with respect to
elderly and nonelderly projects and with respect to
higher and lower cost areas.
FINANCING
r Proiects are financed through the sale of bonds and
notes by the LHA. Federal annual contributions are
provided by HUD and are adequate to cover the debt
service on the bonds and notes iasued.. HUD financial assistance is also provided in the Iorm
oi preliminary loans to the LHA for planning
purposes.
MANAGEMENT
. Overall responsibility for management of proiects is
with the LHA; however, LHA's may contract with
other organizations such as private management
corporations for the operation of specific proiects.
r Projects may also be odministered under a number of
programs which offer the tenants an opportunity for
homeownership.
TENANTS
t Occupants must meet specified income limits and one
of the tollowing: be a "family" as defined by LHA
(there must be concept of family life), or a single
person at least 62 years of age, disabled or
handicapped, or be displaced by urban renewal or
other governmental action, or natural disaster.r Applicants must meet other standards and priorities at
admision, as adopted by the LHA; i.e., housing need,
assets, displaced status, elderly, disability, etc.
Consideration is to be given to achieuing social and
economic mix.
INCOME LIMITS
. Limits are established by the LHA and approved by
HUD for admision and continued occupancy. They
must meet requirements of local, State, and Federal
lau6.I An annual reexamination of the eligibility status of
tenants is made; for elderly families, at the option of
the LHA. it may be biennial.
RENTS
r Bents are established by the LHA and dpproved by
HUD taking into account factors affecting rent-paying
ability of lamilies and financial stability and solvency
of the project. Some LHA's establish special rents for
welfare recipients and ceiling rents for continued
ocrupancy.
r lncome for rent (including allowable deductions and
exemptions) is established by the LHA and approved
by HUD.
r The HUD Act of 1969 provides that rents shall not
exced 25o/o of the family income as defined by the
Secretary.
:t
I
i,l
1
I
NATURE OF PROGRAM
r Financial and technical assistance is provided by HUD
to local housing authorities (LHA's) to plan, build or
acqurre. own and operate lowrent public housing
projects. These housing proiects are provided through
a number of melhods including construction under
the conventional and Turnkey methods and acquisi-
tion with or without rehabilitation. Proposed pro.
grams must be approved by rhe local governing body.
J
LOW.RENT PUBLIC HOUSING-LEASING (SECTION 23)
NATURE OF PROGRAM
- Annual contributions made to auihorized local public
agencies enable them to work with real estate
agencies, owners, and developers in providing housing
for low-income families. Local housing authorities
(LHA's) lease dwellings from private owners and
make them available to low-income families at rents
they can afford. The local governing body must have
passed a resolution approving the application of the
housing program to the locality.
ELIGIBLE HOUSING
r Single family houses. row houses, apartment units in
multi-family structures, mobile homes, and. for the
elderly or handicapped, congregate housing, or a
combination of these may be used.
r All dwellings must be decent, safe, and sanitary, or
improved to that condition by the owner prior to
leasing and conrorm to local code requirements.
r Housing must be situated in a satisfactory residential
neighborhood accessible to public facilities.
MANAGEMENT
r Over-all program managemenl is the responsibility of
LHA's; however, arrangements for management and
maintenance of specific properties is in accordance
with lease terms.
r Properties are to be leased at an amount not higher
than their tair rental value.
. Leases are to be for terms of one to five years and
may be renewable.
TENANTS
t Leases may provide lor owner selection of tenants, tor
owner selection from lists o{ eligible applicants
supplied by an LHA. or for selection by the LHA.
Eligibility determinations must be made by the LHA.
INFORMATION SOURCE
HUD Area Office or HUD-FHA lnsuring OIfice.
ADMINISTERING OFFICE
. Assistant Secretary lor Housing Production and
Mortgage Credit-FHA Commissioner.
)\. }
HUD,92,F(3)
GP0 9t2-306
January 1971
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HU D-FFIA ASSISTED PBSGBAM
F0R RENTAL AND c0-0p HousrNG FoR LowER-rNcoME FAMILIES
SECTION 236, NATIONAL HOUSING ACT
WHAT IT IS
t Privately built rental and cooperative housing for
low- and moderate-income families.
r Provides assistance in the form of monthly Federal
payments to mortgagee, reducing cost to occupant
by paying part of interest on market rate proiect.
ELIGIBLE PROJECT
1, Five or more units -detached (need not be contig-
uous). semi-detached, row, walk-up or elevator
structures.
t Only new structures or existing ones involving ma.
ior rehabilitation.
r May include non-dwelling commercial'must be pre-
dominantly residential.
a Oesigned so that basic rent is less than 25 percent
of maximum income limits.
I An insured limited dividend project purchased by
nonprolit orqanization or co-op.
ELIGIBLE SPONSOBS AND MORTGAGORS
r Private, nonprofit organization. limited dividend
mortgagor, or cooperative housing corporation.
I Consideration given to qualifications of sponsor's
character, integrity, motivation, past successful par,
ticipation in housing, demonstrallle interest in this
type of housing, recognition of continuing responsi-
bility, financial ability, capacity to provide com,
petent management.
PROJECT MANAGEMENT
I Sponsors must have management program - realistic
plan tor providing socially oriented management
and related human services.
r Housing owner expected to assist tenants in applica-
tion preparation.
t Management has fiscal responsibilities-monthly
statements. re.certifications of incomes.
I Management program must be approved by FHA at
least 30 days prior to initial endorsement.
FINANCING ,,
t By private lenders, (nonprofit mortgagors eligible
for GNMA Tandem Plan).
r By State or local governments through loans, or
under State or local program of loan insurance or
Tax abatement.
MOBTGAGE LIMITS
Lesser of the following:
r S 12,500,000 {maximum)
I 90 percent of FHA estimate of cost (100 percent
for nonprojit or cooperative mortgagor).
r The sum o, the per unit-limit under Section 221.
TENANTS AND COOPERATIVE OCCUPANTS
I Must meet specified income requirements and one
of the following: be a lamily {two persons related
by blood, marriage or operation of law), or sinqle
(at least 62 years of age), or handicapped persons
(no age requirement).
t 10 percent of dwelling units may be for single
people under 62 years of age.
! Priorities to those displaced by urban renewal,
government action, national disaster.
TENANT INCOME LIMITS
f Adjusted income cannot exceed 135 percent of
limits applicable to public housing locally.
f Adiusted income is current income from all sources
l)efore taxes of all members of the family occu-
pying unit excluding a 5 percent deduction lor
unusual or temporary income, less 5300 lor each
minor and less earnings of each minor,
t lncome recertified every two years and needed ad-
justment in rental charges made.
r Durin0 initial rent-up tenants over-inconre are re-
quired to pay fair market rental.
MONTHLY RENTAL CHARGES
I After the initial rent-up eligible tenant pays basic
rental or 25 percent of income whichever is greater;
over-income tenant pays 25 percent of income but
not in excess of fair market rental.
r Basic monthly rental charge is based on operation
at 1 percent interest rate mortgage.
I HUD-FHA makes monthly assistance payments to
mortgagee to reduce mortgage payments from mar-
ket rate to an amount required for a 1 percent
mortgage.
f Eligible tenant pays greater of basic rental charqe or
25 percent of adjusted income (a limited number of
tenants may also receive rent supplement assis.
tance).
D Fair market rental (over-income tenants) based on
operation at market interest rate.
I Will include all utilities except telephone.
INFORMATION SOURCE
HUD Area Office or HUD-FHA lnsuring Oltice
ADMINISTERING OFFICE
Assistant Secretary for Housing Production and
irortgage Credit-F HA Commissioner.
,!
January '197'l GPO 91t.37!HUD.90,F13)
WHAT IT IS
. Privately built housing ,or low-income families and
individuals eligible ,or public housing and who are
either displaced by governmental action, 62 years o,
age (or older), physically handicapped, living in
substandard housing- or whose unit was damaged or
destroyed by natural disaster.i Provides assistance in the form of monthly Federat
payment to owner in behalf oJ low-income tenants.
ELIGIBLE PROJECTS
. Only new housing projects or existing ones involving
major rehabilitation,
r Five or more units-detached, semi detached, row,
walk'up, or elevator structures.. Modest design suitable to the market and location..lvust be built in conlormity with FHA minimum
ProPerlY standards.
r Regulaled by FHA esrablished maximum rents, rate
of return, methods of operation. rent supplementr payments.
Must be er'ther part of a workable program lor
community improvement or have local official
approval.
ELIGIBLE SPONSORS AND MORTGAGOBS
r Private nonprofit organization, linlited dividend
mortgagor, or cooperalive housing corporation.. Consideration given to qualificarions of
sponsors-character. integrity, motivation, past
successful participation in housing, demonstrable
interest in this type of housing, recognition of
continuing responsibility, financial ability, capacity to
provide competent management,
PROJECT MANACEMENT
r Success depends on competent project management.r Housing owner expected to assist tenants in
application preparation.r Management has tiscal responsibilities-monthly
statements, re-certifications of incomes.t Management program must be approved by FHA at
least 30 days prior to initial endorsement.
FINANCED BY
' Private lenders (nonprofit mortgagors eligible for
GNMA Tandem Plan).
r By State or local governments, through loans, or
under State or local program oI loan insurance or tax
abatement.
MORTGAGE LIMITS
. Lim;ls and terms dpplicable to Seclion 221 (d){3).
r Maxinrum amount-not in excess of S12,500,000.r Repaynrent-level annuity monthly plan (equal
monthly payments to principal & interest).
HOW ONE BEGINS
r Preliminary conlerence with local HUD-FHA area or
insuring oftice-identirying locality, general site, pro-
posed type and number of living units, need for
housing. type of people to be served, plans {or
management.
r lf pro,ect appears feasible-sponsor will be asked to
submit application for analysis.
. Feasibility analysis and other forms and exhibirs
will not be executed until sponsor has been advised
that rent supplement lunds have been allocated.. Favorable decision resulting from feasibility analysis
{vill result in reservation of rent supplement funds if
available.
r Formal application will be invited (accompanied by
required fee).
ABOUT THE TENANTS
! Eligible tenants described in opening paragraph.
. lncome limits comparable to those of public housing
locally.
. Total assets cannot exceed 52,000 unless applicanr is
62 years or older, in which case assets may total
S5,000 {personal property excluded).r Supplemenl for any tenant mav not exceed 70olo and
must represent at least 10% of the FHA-approved rent
for the unit.
RENT SUPPLEMENT AMOUNT
. Diflerence between 25% o, gross income and
FHA-approved rental for unit represents rent
supplement amount.. R e-certif ication of income required yearl! (except for
elderly).
r Local HUD.FHA area or insuring o{fice will negotiate
rent supplement contracts.
r lt will provide that paymenr of rent supplements for
eligible tenants will be made monthly, by voucher
initiated by housing owner.
${u B-F${A ASS[$TES i]ri$G
TOffi THE RENT SUPPLEMENT PROGRAM
INFORMATION SOURCE
HUD Area Office or HUD-FHA lnsuring Office
ADMINISTEBING OFFICE
January 1971 HUO-91.F(3)
'a
Assistant Secretary for Housing Production and
Mortgage Credit-FHA Commissioner.