Sec. 05.04.13.13. Income, Occupancy, and Rental Housing Requirements

A. In order to qualify for Program funds, a rental housing project shall meet the requirements of this regulation.

B. Income Requirements for Tenants.

(1) At least 50 percent of the project units shall be occupied by households whose annual income does not exceed 50 percent of the HUD area median income adjusted for household size.

(2) The remaining project units shall be occupied by households whose annual income does not exceed 80 percent of the HUD area median income adjusted for household size.

(3) Notwithstanding the requirements set forth in §B(2) of this regulation, for buildings with five or more units, 20 percent of the project units may be occupied without regard to household income level.

C. In renting a project unit, the landlord shall give priority to households with children younger than 6 years old.

D. Each project is subject to the requirements set forth in §§B and C of this regulation for a period of at least 3 years, under covenants and restrictions in the form required by the Department.

E. Annual Review.

(1) Owners shall examine the income of each tenant household annually for 3 years. The Program may require owners to report the results.

(2) If noncompliance with the occupancy requirements is caused by an increase in tenant income, all vacancies shall be filled with income eligible households until the noncompliance is corrected.

F. Income Requirements for Owner-Occupants. All owner-occupied units shall be the principal residence of families whose annual income does not exceed 80 percent of the HUD area median income adjusted for household size.

G. Not less than 90 percent of owner-occupied units shall be occupied by a child younger than 6 years old or shall be units where a child younger than 6 years old spends a significant amount of time visiting.

H. Property Maintenance. The owner shall maintain the premises in compliance with all applicable local requirements.