Resolution Number CRA 05-10-18-01RESOLUTION NO. CRA 05-10-18-01
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SAN JUAN
CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY APPROVING
THE REVISIONS TO THE SAN JUAN CAPISTRANO COMMUNITY
REDEVELOPMENT AGENCY RENTAL SUBS I DY/SECUREM ENT
PROGRAM GUIDELINES & OPERATING PROCEDURES
WHEREAS, the San Juan Capistrano Community Redevelopment Agency
(the "Agency") implemented the Rental Subsidy/Securement Program in 1997; and,
WHEREAS, the Agency provides assistance to very -low income
households with rent payments and tenant education to help households become self-
sufficient; and,
WHEREAS, the Agency's last revised the San Juan Capistrano
Community Redevelopment Agency Rental Subsidy/Securement Program Guidelines &
Operating Procedures on September 17, 2002; and,
WHEREAS, the Rental Subsidy/Securement Program Guidelines &
-- Operating Procedures require revisions to better serve the tenants and to make the
program consistent with the Little Hollywood Affordable Rental Housing Program
Guidelines & Operating Procedures.
NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of
the San Juan Capistrano Community Redevelopment Agency, San Juan Capistrano,
does hereby approve the revisions to the Rental Subsidy/Securement Program
Guidelines & Operating Procedures attached hereto as Exhibit A.
ATTEST:
PASSED, APPROVED, AN[YADOPTEO th}a*, 81h day of October, 2005.
JOE
R. MONAHAN,
10-18-2005
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF SAN JUAN CAPISTRANO )
I, MARGARET R. MONAHAN, appointed Agency Secretary of the Community
Redevelopment Agency of the City of San Juan Capistrano, do hereby certify that the
foregoing Resolution No. CRA 05-10-18-01 was duly adopted by the Board of
Directors of the Community Redevelopment Agency at a regular meeting thereof, held
the 18th day of October 2005, by the following vote:
AYES: DIRECTORS:
NOES DIRECTORS:
ABSENT: DIRECTORS:
-�V/f�AI 'j-`Zii
Bathgate, Hart, Allevato, Swerdlin, & Chairman Soto
None
None
R. MONAHAN, Agency Secretary
SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY
RENTAL SUBSIDY/SECUREMENT PROGRAM
PROGRAM GUIDELINES/OPERATING PROCEDURES
EXHIBIT A
Revised
October 18, 2005
SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY
RENTAL SUBSIDY/SECUREMENT PROGRAM
PROGRAM GUIDELINES/OPERATING PROCEDURES
October 18, 2005
I. INTRODUCTION
The San Juan Capistrano Community Redevelopment Agency has elected to
assist certain eligible very low income families and individuals by establishing a
Rental Subsidy/Securement Program (Program). The Program will enable the
Agency to meet the needs of the participating Tenant Households by providing
monthly rental assistance for up to three -to -five years. In addition, the Agency
will also provide initial rental deposit assistance and emergency rent relief to
income -eligible households.
The Rental Subsidy Program will offer each participating Tenant Household the
freedom to choose within the City an Eligible Rental Unit suitable to its
household size. The Eligible Rental Unit selected by each participating Tenant
Household must meet the Housing Quality Standards (HQS) prescribed for the
Program by HUD, must be rented or leased by only the participating household,
and the rental rate must be reasonable and fall within the Program's established
Payment Standard.
Furthermore, the Program intends to provide intensive case management with
the ultimate goal being family self-sufficiency.
II. ADVERTISING THE PROGRAM
The Consultant shall advertise the Program, as necessary, at the expense of the
Agency. The Agency shall approve all forms of advertisement. As necessary,
the Consultant shall advertise the Program including but not limited to,
newspaper advertisement and distribution of flyers. The Consultant shall use
any existing waiting list held by the Agency or its consultant(s).
III. FAIR HOUSING
The Agency promotes fair housing and makes all of its housing programs
available to income -eligible families regardless of age, race, color, religion, sex,
national origin, sexual preference, marital status, or handicap.
IV. DEFINITIONS
For the purpose of this Program, the following definitions apply:
Rental Subsidy Guidelines
October 18, 2005
Tenant Household — One household per unit occupied by those persons
identified on the executed residential lease.
Extremely Very -Low Income Household — A household with a combined annual
income for all household members 18 years of age or older that does not exceed
30 percent of the Orange County annual median income.
Very -Low Income Household — A household with a combined annual income for
all household members 18 years of age or older that does not exceed 50 percent
of the Orange County annual median income.
Lower -Income Household — A household with a combined annual income for all
household members 18 years of age or older that does not exceed 60 percent of
the Orange County annual median income.
Rental Subsidy Waiting List — A list maintained by the City of San Juan
Capistrano's Planning Services Department of those persons that have
submitted a written request to be added to a waiting list to receive rental
assistance from the Agency.
Tenant Monthly Rent — The total of the tenant's portion of the monthly rent for
use and occupancy of the tenant's housing unit pursuant to the provisions of the
lease agreement.
Utility Allowance — The amount that may be added to the monthly rent each
month for utility services provided by the landlord pursuant to the Utility
Allowance published annually by the County of Orange Housing & Community
Services Development Multi-Family/Affordable Rental Housing Utility Allowance.
V. ELIGIBLE TENANT HOUSEHOLDS
A. US Citizen shio/Permanent Alien Resident Status - Eligible households must
be either a US citizens or a permanent resident alien. A valid social security
card, proof of citizenship, or permanent resident alien status must be
provided for all members of the household.
B. Income Eligibility — For purposes of this program, tenant households must be
certified as income eligible as a lower, very -low, and/or extremely low-income
household.
_ C. Determination of Income - Gross annual income, includes all payments from
all sources that is anticipated to be received by all adult members of the
Tenant Household over the subsequent 12 month period of tenancy (see
Exhibit A).
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Rental Subsidy Guidelines
October 18, 2005
D. Household Priority — The program will assist income -eligible households on
the affordable housing rental subsidy waiting list according to the following
preferences:
• Currently living or working in the City of San Juan Capistrano.
• Homeless - A household that resides in an uninhabitable dwelling unit,
transitional dwelling unit, temporary dwelling unit or no dwelling unit.
• At risk of becoming homeless - A household that currently pays more than
fifty percent (50%) for housing or is residing temporarily in a housing unit
that is occupied by an additional household(s).
• Involuntarily displaced (or about to be displaced) including victims of
domestic violence.
• Household's interview screening process, including willingness and desire
to take action to improve their circumstances towards self-sufficiency
within three -to -five years.
E. Alcoholic and/or Drug Abuse - No person or persons abusing alcohol
and/or using illegal drugs shall be eligible to participate in the program.
F. Criminal Background Check - To determine if a household is abusing
alcohol and/or using illegal drugs, the Agency will conduct a background
check and interview each household during the screening process. A
tenant household can be rejected for a criminal history that includes
physical/sexual abuse, sale or distribution of controlled substances, and
any acts of violence that could affect the health, safety or welfare of other
residents.
G. Eligible Tenant Household - An eligible tenant household consists of one
family per unit occupied by those persons identified on the executed
residential lease. No subletting of a unit is permitted. Those persons
receiving rental assistance through a different local or federal agency shall
not be eligible to participate in the Program.
H. Ownership in a Residential Dwelling Unit - No member of the household
may hold ownership interest in a residential dwelling unit. At the
discretion of the Planning Director, exceptions to this requirement may be
made in the case of a displaced homemaker who owns a home with his or
her spouse but does not reside in the home. A displaced homemaker is
an adult who has not, within the preceding two years, worked on a full-
time basis as a member of the labor force for a consecutive twelve-month
period and who has been unemployed or under -employed, experienced
difficulty in obtaining or upgrading employment and worked primarily
without remuneration to care for his or her home and family.
VI. ELIGIBLE RENTAL UNITS
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Rental Subsidy Guidelines
October 18, 2005
A. Eligible Rental Units - Rental assistance be provided to Tenant
Households seeking to rent the following types of dwelling units: (1)
single-family; (2) condominiums; and (3) multi -family (apartments). In the
case where a household is seeking to rent a mobile home, rental
assistance may only be used to subsidize rent to a landlord for the rent of
the mobile home dwelling unit as opposed to the space rent. Since this is
a limited 2 year program, in the case where a mobile home owner is
seeking relief from space rent and owns the mobile home, this not
considered an eligible rent subsidy as the Program is intended to assist
renter households. Tenant Households receiving Program assistance
from the Agency must reside in an Eligible Rental Unit. An Eligible Rental
Unit must:
Rental unit must be located within the City of San Juan Capistrano
city limits. Program participants who have been accepted into the
program and choose to move outside of the city limits will no longer
be eligible for Agency assistance.
2. Rental unit must not be rented or subrented to any other persons
outside of the participating household.
Rental unit must meet the Federally established Housing Quality
Standards. Units currently occupied by qualified Tenant
Households that are substandard units will require either the
relocation of the eligible Tenant Household or the completion of the
appropriate repairs as determined by the Agency.
4. Rent for the rental unit must not exceed the rents adopted by the
Agency. (See Exhibit B).
5. Rental unit must be privately owned.
6. Tenant household may not be receiving rental assistance from any
other Federal, State or local source (i.e. County of Orange Section
8).
B. Housing Quality - Occupancy Standards - The Eligible Rental unit
shall contain at least one bedroom or living/sleeping room of appropriate
size for each two persons. Persons of opposite sex, other than husband
or wife or very young children, shall not be required to occupy the same
bedroom or living/sleeping room. The occupancy standards set forth
below and in Exhibit B apply.
1.7
In cases where unusual family circumstances apply, the Planning Director
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October 18, 2005
shall have discretion to administratively approve a higher occupancy limit.
VII. AMOUNT OF RENTAL SUBSIDY/TENANT HOUSEHOLD CONTRIBUTION
A. Total Tenant Household Payment. The Monthly Rent payable by a
Lower -Income Household shall not exceed one -twelfth (1/12) of thirty
percent (30%) of sixty percent (60%) of Orange County median income,
as determined by regulation of the State of California, for a household
size appropriate to the unit or the current market rent based upon unit size
in accordance with the Orange County Income and Rents limit issued
annually by the County of Orange, whichever is lower.
The Monthly Rent payable by a Very -Low Income Household shall not
exceed one -twelfth (1/12) of thirty percent (30%) of fifty percent (50%) of
Orange County median income, as determined by regulation of the State
of California, for a household size appropriate to the unit or the current
market rent based upon unit size in accordance with the Orange County
Income and Rents limit issued annually by the County of Orange,
whichever is lower.
The Monthly Rent payable by a Extremely Very -Low Income Household
shall not exceed one -twelfth (1/12) of thirty percent (30%) of thirty percent
(30%) of Orange County median income, as determined by regulation of
the State of California, for a household size appropriate to the unit or the
current market rent based upon unit size in accordance with the Orange
County Income and Rents limit issued annually by the County of Orange,
whichever is lower.
The maximum Monthly Rent chargeable for the Housing Units shall be
annually determined by the Agency in accordance with the foregoing
requirements.
Notwithstanding the foregoing, if a tenant's income exceeds the qualifying
limits for an Extremely -Low or Very -Low Income recertification but
qualifies as a Very -Low or Lower -Income Household, the Agency may
increase the monthly rent payable by such tenant in accordance with the
monthly rental amount for their income category (i.e. Very -Low or Lower
Income).
VIII. LENGTH OF ASSISTANCE
The Agency may provide rental assistance payments for three years from the
date of the execution of the Lease/Participation Agreement, with the possibility of
renewal for two additional one-year periods following recertification of the Tenant
Household's income eligibility and program qualification. The Agency or the
Agency's Consultant shall make the rental assistance payments directly to the
landlord.
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Rental Subsidy Guidelines October 18, 2005
Assistance may be terminated upon verification that:
A. The tenant household is no longer income eligible (i.e. income exceeds
60% of area median income adjusted for household size).
B. The tenant household fails to complete the recertification process.
C. The tenant household has resided in the housing development for three
years and has made no progress towards increasing their income and/or
education. Participating eligible households that have complied with the
guidelines and performance standards set forth in these guidelines may
continue to participate in the Agency's Rental Subsidy Program for three
years, with the possibility of renewal for two additional one-year leases.
To qualify for renewal of up to two additional one year leases, the tenant
household must provide written documentation to the Agency staff each
year that they have made progress towards improving their financial
situation and/or education. The Agency staff shall determine, based upon
the documentation provided, whether the tenant household shall be
approved for participation in the program after three years.
D. A tenant household has resided in the housing development for the
maximum of five years.
E. If it is determined by the Agency that any member of the tenant
household is:
L Using the housing unit or any portion of the housing development
for the illegal sale or use of drugs and other controlled substances
as defined by Penal Code and the Health and Safety Codes of the
State of California.
ii. Convicted during the term of the lease for use, sale, distribution or
delivery of illegal drugs.
iii. Conducting any other illegal activity in violation of Federal, State,
or local laws.
F. The tenant household fails to comply with the program guidelines and
operating procedures.
Rental Subsidy Guidelines
October 18, 2005
G. The tenant household fails to pay the monthly rent on time per the terms
of the residential lease.
AT NO TIME SHALL THE TERM OF AGENCY ASSISTANCE TO THE TENANT
HOUSEHOLD EXCEED FIVE YEARS.
IX. RECERTIFICATION
The Agency will require that the income of each assisted Tenant Household be
recertified annually. This recertification must be completed prior to the
execution of a second, third, fourth, and fifth year lease. Failure on the part of
the Tenant Household to recertify its income eligibility will cause the termination
of any further rental assistance. If a participating Tenant Household's income
exceeds 60% percent of the area's median income during the annual
recertification process, assistance will be terminated.
X. RIGHT TO AN INFORMAL HEARING PROCEDURE
Program participants may appeal a proposed program action that may have an
adverse effect upon them by submitting a written request for a hearing to the City
of San Juan Capistrano Planning Department. The written request shall include
the participating tenant household's objection, the name and relationship of all
potential parties, a list of documents to be presented, and the tenant household's
current address and telephone number.
The San Juan Capistrano Community Redevelopment Agency shall appoint a
hearing officer. Once a hearing officer is appointed, an informal hearing will be
scheduled as soon as possible. The informal hearing shall be conducted in
English. Notice of Informal Hearing will be issued at least ten days prior to the
hearing date. The participating tenant household may bring legal counsel and/or
a translator at participant's expense. The participating tenant household may
bring person(s) to testify and/or documents at the participant's expense. The
participating tenant households may review pertinent file documentation as long
as such documentation does not infringe on any other party's rights.
Within ten business days following the informal hearing, the hearing officer's
official decision will be mailed to the tenant household. The hearing officer's
decision shall be final.
XI. TENANT HOUSEHOLD APPROVAL & RENTAL PAYMENT PROCEDURES
Interested applicants complete applicant interest form to be placed on the
City's waiting list.
Rental Subsidy Guidelines
October 18, 2005
2. After determining if there are adequate funds available, Agency contacts
those on the waiting list to see if they are still interested in participating in the
program.
3. Agency invites interested applicants to complete an application, and the
application is reviewed to determine program eligibility through verification of
the household's annual gross income and residency requirements. A
household's income shall be verified by using employment verifications, most
recent federal tax returns, current pay stubs, and other pertinent
documentation as determined by the Agency. Applications will be ranked by
priority based upon household priority as identified in Section V (D) of these
guidelines.
4. Households that satisfy the basic program criteria will be interviewed, based
upon program priorities and available funding, to determine if the household
members demonstrate a willingness to take steps toward becoming self-
sufficient within three years.
5. Approved households will be provided with a Participation Coupon and a
- - Request for Unit Approval form and directed to search for an eligible unit.
6. Once applicant finds unit, applicant submits Request for Unit Approval
form to the Agency so that a unit inspection can be scheduled.
7. An Agency inspection of the unit is scheduled to determine if the unit meets
the Federally -established Housing Quality Standards.
B. If the unit is approved by the Agency, a Lease between the Tenant
Household and the property owner and a Rent Payment Contract between
the property owner and the Agency is prepared and executed.
9. All original documents shall be maintained in the Agency's Planning
Services Department, including a comprehensive list of all Tenant
Households and the following:
a. Name of each Tenant Household.
b. Address of the rental unit for each Tenant Household.
c. Dollar amount of rental assistance for each Tenant Household.
d. Address of landlord (i.e., where check is to be mailed).
10. The participating household pays their portion of their monthly rent to the
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Rental Subsidy Guidelines October 18, 2005 --
Agency (or the Agency's designated Consultant) no later than the first of
each month.
11. The Agency makes payments to the Agency's Consultant for the Agency's
portion of the rent for each participating tenant. The Consultant makes the
monthly rent payment for the full monthly rent amount for each tenant to the
landlords.
12. The Agency's Consultant shall track payments made to landlords.
13. Agency and/or Consultant shall arbitrate any disputes or issues between
landlord and Tenant Household.
14. Agency or Consultant shall prepare quarterly reports on the progress of
each participating household within 10 days following the completion of the
three-month period. Quarterly reports shall include a review of each of the
criteria listed in Exhibit C and shall be transmitted to the Housing Advisory
Committee at their next scheduled meeting.
15. Two months prior to termination of each tenants' one-year lease, the
tenant's household adjusted income shall be recertified.
16. If the participating tenant's household meets the income requirements, a
new lease and Rent Payment Contract shall be executed with the Tenant
Household, the property owner, and the Agency if the tenant household has
met all other program criteria and requirements.
17. Two months prior to termination of each tenants' third -year lease, the
Agency or the Agency's Consultant shall recertify the household's income
and review other documentation to determine if tenant has made progress
in increasing the household income or increasing their education. If no
progress has been made since the prior year, tenant household shall not be
recertified for the fourth year lease. This process should be repeated for
year five prior to recertification.
18. At the completion of the tenant household's participation, any original files
for the participating tenants or regarding the Agency's program in the
possession of a Consultant shall be returned to the Agency's Planning
Services Department.
19. In no event shall a Consultant make payment directly to a participating
tenant, or reimburse a participating tenant, for costs incurred by the tenant
for home repairs, classes, seminars, or any other expenses except for
overpayment of the monthly rent amount.
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Rental Subsidy Guidelines October 18, 2005
XII. TENANT RULES AND REGULATIONS
A. Subletting of Housing Unit — Subletting of any housing unit by the tenant
household is prohibited and may result in immediate termination from the
program.
B. Maintenance — Tenants are required to maintain their units in a safe, clean,
sanitary, and attractive condition.
C. Homeowners' Association Rules — Tenants shall comply will all regulations
and restrictions imposed by the applicable homeowners' association.
D. Monthly Inspection — Tenant households shall be required to allow access
to their rental unit for monthly site inspections, or as deemed necessary by
the Agency or its designated consultant, to verify household size,
maintenance of the unit, and adherence to the program rules.
E. Nuisances — No noxious or offensive activity (including but not limited to the
repair of motor vehicles) shall be carried on, in or at any housing unit or
- within the housing development common areas. A tenant household shall
not do anything which may be or become an unreasonable annoyance or a
nuisance to any other tenants in the housing development.
F. Courtesy to Other Residents - Residents shall respect the peace and
privacy of others. Tenants shall not make nor permit any disturbing noises.
G. Guests — Occupants must receive written approval from the Agency for
guests staying over fourteen consecutive days within any 90 -day period.
Occupancy by guests, including family members, staying over 14
consecutive days or for 14 days within any 90 -day period, without prior
approval of the Agency, will subject the tenant household to eviction.
H. Program Participation - Each selected Tenant Household shall be required
to participate in the tenant education program as follows:
Tenant Education Courses
Tenant Households shall participate in a tenant education program
provided by either the Agency or a designated agency or Consultant
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that includes the following:
October 18, 2005
a. Work with a case manager in preparing a monthly family budget (to
include all monthly income and expenses) with the goal of saving
25-30 percent of their net income each month in a verifiable
savings account.
b. Submit supporting documents for monthly budget report (i.e. proof
of income, pay stubs, child support documents, notice of action
forms, bills received/paid, merchandise and grocery receipts, etc.).
C. Agree to allow a monthly in-home visit by assigned case manager
or the Agency. Each selected Tenant Household shall be required
to allow access of their rental unit for monthly site inspections by
the Agency or its designated consultant to verify household size,
maintenance of the unit, and adherence to the homeowners'
association rules and regulations.
d. Attend group counseling sessions at a designated location in San
Juan Capistrano.
e. Attend individual counseling, if recommended (parent/marital,
anger management, children and teens evaluations and tutorial
assistance).
f. Attend monthly meetings with an assigned case manager to assess
and evaluate the household's goals.
g. Complete required monthly paperwork (as assigned).
h. Work with case manager to prepare a goals sheet for each adult in
the household.
i. Maintain rental unit in a satisfactory and safe living environment.
2. Community Service
Each Tenant Household shall be required to participate in 5-6 hours of
community service each month (to be coordinated by the Agency and/or _
Consultant).
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3. Referral to Social Service and Other Agencies
October 18, 2005
Specific needs of the Tenant Household will be identified by the Agency or
Consultant and referrals shall be made to a specific resource to address the
Tenant Household need(s). Needs may include: family counseling, child
care, tutors for school-age children, legal advice, budgeting and credit
advice, household items, food distribution, computer learning centers, etc.
Other City residents or persons working within the City limits who are not
eligible to receive rental subsidy from the Agency under this program but
who meet the lower-income requirements, as published by HUD annually,
may be referred to non-profit agencies for assistance with transitional
housing outside of the City limits, food distribution, utility assistance,
transportation needs, holiday gifts and food, and/or computer learning
centers.
4. Crisis Intervention
In the event of a Tenant Household crisis, i.e., loss of job, medical
emergency, landlord/tenant disputes, etc., the Agency and/or Consultant
will work with the Tenant Household to address the problem (i.e. providing
referral services, etc.).
At the Agency's discretion, a tenant household's failure to meet the tenant rules
and regulations may be grounds for termination of the lease.
XIII. RENTAL DEPOSIT ASSISTANCE
The Agency offers security deposit and/or first and last months' rental assistance
to eligible lower-income households in San Juan Capistrano. The amount of
assistance shall be a zero percent interest loan to the household to be paid back
to the Agency over the 12 -month period specified by the rental or lease
agreement.
An eligible household may be approved to receive rental deposit assistance, as
necessary, based upon the following:
1. In no case shall assistance be approved by the Agency if the deposit has
_ already been paid by the household or by any other person on behalf of the
household.
2. Approval of a household shall be in accordance with the eligibility
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Rental Subsidy Guidelines October 18, 2005
requirements set forth in these regulations.
3. The amount of the Agency's deposit assistance shall not exceed the first
and last month's rent for the unit up to a maximum amount of $3,500.
4. The amount of the Agency's assistance shall be repaid directly to the
Agency by the household over an eleven -month period beginning on the
second month of the lease.
5. Monthly repayments by the household shall be made directly to the Agency
by the first of each month.
6. Agency shall track all rental deposit repayments and shall coordinate with
the household, as necessary, to ensure that all repayments continue to be
paid on time.
7. In the event the household is delinquent in repayments, the Agency shall
notify the household that their payment is delinquent. If the household is
participating in the Agency's Rental Subsidy Program, the household will be
notified by the Agency that their rental assistance may be terminated if
payment is not received on time. The Agency shall give 30 days notice to
the tenant household of a decision to terminate future rental assistance due
to failure to make their deposit repayments on time.
For households not participating in the Rental Subsidy Program, the Agency
will enter into an agreement with the landlord authorizing the Agency first
right to the security deposit. If the deposit is repaid to the Agency, the
Agency will authorize the landlord to release the funds to the household.
Non-payment of the loan to the Agency may result in the Agency
prosecuting the household to the fullest extent of the law.
XIV. EMERGENCY RENT RELIEF
The Agency offers emergency rent relief to lower-income eligible households
who reside in San Juan Capistrano. This one-time payment for up to two
months' rent is provided to assist San Juan Capistrano households that have
had an emergency or some other extenuating circumstance that temporarily
prevents the household from being able to pay their mortgage, rent, space rent
or temporary housing. Extenuating circumstances might include temporary loss
of income due to illness, disability, death in the family, and hospitalization. The
emergency rent relief may also be used to assist households with temporary
housing due to displacement resulting from fire or other major structural damage
to their residence.
To be eligible for this assistance, households must meet all the income and
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October 18, 2005
program eligibility requirements identified in Section IV of these guidelines,
except that lower-income property owners may also be eligible for emergency
rent relief assistance.
Upon determination of eligibility and available funding, the applicant shall be
required to submit documentation of payment information to the Agency (i.e.
mortgage, rental lease, space rent, etc). The Agency will process a check
payable directly to the mortgage company or property owner. The Agency's
payment shall not include the cost of utilities, HOA dues, taxes, insurance, etc.
The maximum amount of assistance to be provided for one-time emergency rent
relief shall be $3,000. Funds paid by the Agency for emergency rent relief shall
be considered a grant and are not required to be repaid.
XV. EXCEPTIONS
No exceptions to these guidelines will be authorized without Community
Redevelopment Agency approval.
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EXHIBIT "A"
GROSS ANNUAL INCOME -
SAN JUAN CAPISTRANO RENTAL SUBSIDY/SECUREMENT PROGRAM
GROSS ANNUAL INCOME includes, but is not limited to:
1. The full amount, before any payroll deductions, of wages and salaries, overtime
pay, commissions, fees, tips and bonuses, and other compensation for personal
services;
2. The net income from operation of a business or profession. Expenditures for
business expansion or amortization of capital indebtedness shall not be used as
deductions in determining net income. An allowance for depreciation or assets
used in a business or profession may be deducted, based on straight line
depreciation, as provided in Internal Revenue Service regulations. Any
withdrawal of cash or assets from the operation of a business or profession will
be included in income, except to the extent the withdrawal is reimbursement of
cash or assets invested in the operation by the Family;
3. Interest, dividends, and other net income of any kind from real or personal
property. Expenditures for amortization of capital indebtedness shall not be
used as a deduction in determining net income. An allowance for depreciation is
permitted only as authorized in paragraph (b)(2) of this section. Any withdrawal
of cash or assets from an investment will be included in income, except to the
extent the withdrawal is reimbursement of cash or assets invested by the Family.
Where the Family has Net Family Assets in excess of $5,000, Annual Income
shall include the greater of the actual income derived from all Net Family Assets
or a percentage of the value of such Assets based on the current passbook
savings rate, as determined by HUD;
4. The full amount of periodic payments received from social security, annuities,
insurance policies, retirement funds, pensions, disability or death benefits and
other similar types of periodic receipts, including a lump -sum payment for the
delayed start of a periodic payment;
5. Payments in lieu of earnings, such as unemployment and disability
compensation, worker's compensation and severance pay (but see paragraph
(c)(3) of this section);
6. Welfare Assistance/AFDC. If the Welfare Assistance payment includes an
amount specifically designed for shelter and utilities that is subject to adjustment _
by the Welfare Assistance agency in accordance with the actual cost of shelter
and utilities, the amount of Welfare Assistance income to be included as income
shall consist of:
Rental Subsidy Guidelines
October 18, 2005
(1) The amount of the allowance or grant exclusive of the amount specifically
designated for shelter or utilities, plus
(ii) The maximum amount that the Welfare Assistance agency could in fact
allow the Family for shelter and utilities. If the Family's Welfare Assistance
is ratably reduced from the standard of need by applying a percentage, the
amount calculated under this paragraph (b)(6)(ii) shall be the amount
resulting from one application of the percentage;
7. Periodic and determinable allowances, such as alimony and child support
payments, and regular contributions or gifts received from persons not residing in
the dwelling;
8. All regular pay, special pay and allowances of a member of the Armed Forces
(but see paragraph (c)(7) of this section); and
9. Any earned income tax credit to the extent it exceeds income tax liability.
GROSS ANNUAL INCOME does not include the following:
1. Income from employment of children (including foster children) under the age of
18 years;
2. Payments received for the care of foster children;
3. Lump -sum additions to Family assets, such as inheritances, insurance payments
(including payments under health and accident insurance and worker's
compensation), capital gains and settlement for personal or property losses (but
see paragraph (b)(5) of this section);
4. Amounts received by the Family, that are specifically for, or in reimbursement of,
the cost of medical expenses for any Family member;
5. Income of a live-in aide;
6. Amounts of educational scholarships paid directly to the student or to the
educational institution, and amounts paid by the Government to a veteran, for
use in meeting the costs of tuition, fees, books, equipment, materials, supplies,
transportation, and miscellaneous personal expenses of the student. Any
amount of such scholarship or payment to a veteran not used for the above
purposes that is available for subsistence is to be included in income;
7. The special pay to a Family member serving in the Armed Forces who is
exposed to hostile fire,
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Rental Subsidy Guidelines October 18, 2005
8. (1) Amounts received under training programs funded by HUD;
(ii) Amounts received by a Disabled person that are disregarded for a limited
time for purposes of Supplemental Security Income eligibility and benefits
because they are set aside for used under a Plan to Attain Self -Sufficiency
(PASS); or
(iii) Amounts received by a participant in other publicly assisted programs which
are specifically for or in reimbursement of out-of-pocket expenses incurred
(special equipment, clothing, transportation, child care, etc.) and which are
made solely to allow participation in a specific program;
9. Temporary, nonrecurring or sporadic income (including gifts);
10. For all initial determinations and reexaminations of income carried out on or after
April 23, 1993, reparation payments paid by a foreign government pursuant to
claims filed under the laws of that government by persons who were persecuted
during the Nazi era; or
11. Amounts specifically excluded by any other State or Federal statute from
consideration as income for purposes of determining eligibility or benefits under
a category or assistance programs that includes assistance under the United
States Housing Act of 1937.
Rental Subsidy Guidelines
EXHIBIT "B"
REASONABLE RENTS
(Does not Include Utility Allowance)
October 18, 2005
UNIT SIZE
MAXIMUM RENT
(Without Utilities)
0 BEDROOM
$1,204
1 BEDROOM
$1,288
2 BEDROOM
$1,624
3 BEDROOM
$1,848
4 BEDROOM OR MORE
$2,128
*Based on 2005/2006 average fair market rents in San Juan Capistrano. The maximum rent
shall be increased by the average Consumer Price Index for the preceding year (as
determined per the City's Municipal Code, Title 2, Article 9 (Mobile Home Park Rent Control).
UTILITY ALLOWANCE CHART
For rental rates that include utilities, the maximum rental rates shall be increased by the
amount per household from the Utility Allowance Schedule published annually by the
Orange County Housing Authority for Section 8 Existing Housing.
OCCUPANCY LIMITS
The following occupancy standards apply to the Program:
UNIT SIZE
MINIMUM
MAXIMUM
1 BEDROOM
NUMBER OF PERSONS
NUMBER OF PERSONS
0 BEDROOM
1
2
1 BEDROOM
1
3
2 BEDROOM
2
5
3 BEDROOM
5
7
4 BEDROOM
7
9
5 BEDROOM
8
11
*At the Planning Director's discretion, the occupancy limits may be higher based upon unique household
circumstances.
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Rental Subsidy Guidelines October 18, 2005
EXHIBIT "C"
CRITERIA FOR CONSULTANT QUARTERLY REVIEWS
Consultant shall conduct quarterly reviews of the status of the participating households to determine if they
are satisfying the program's requirements. Each of the following criteria shall be evaluated as part of the
quarterly report:
1. Household size and composition must comply with that approved in contract. The maximum
length of time guests may stay at a participating household's rental unit is fourteen consecutive
days within any 90-day period. Agency or Consultant shall conduct monthly inspections of the
participating household's unit to verify compliance.
2. During annual recertification process, total income for recipient families must comply with the
maximum income limits established by the State of California Department of Housing and
Community Development (60% of the Orange County Median), based upon household size.
3. Tenant shall participate in tenant education program provided by the Agency and/or Consultant
and attend all classes offered. If a class is missed, tenant shall be required to make up the class
before the end of the quarterly reporting period.
4. In the event of a crisis situation, tenant household shall attend counseling sessions with the
Agency, Consultant, or other outside agency referred to by Agency or Consultant. The designated
counselor shall determine the extent and number of counseling sessions required.
5. Each tenant household shall be required to participate in 5-6 hours of community service each
month.
6. All adults in tenant household shall be employed or be a full-time student.
7. Tenant households shall maintain their rental units in a satisfactory and safe living environment.
8. Tenant households shall comply with all homeowners' association rules and regulations.
9. Landlord shall comply with all homeowners' association rules and regulations and payment of
association dues.
10. Tenant households shall comply with all City rules and regulations.
11. Tenant households shall comply with all federal, state, and city laws.
12. Tenant shall make monthly rent payments on time.
13. Tenant shall make monthly installments for repayment of the Agency's security deposit on time.
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