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HomeMy WebLinkAboutRES HA-51RESOLUTION NO. HA- 51 A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY RESCINDING RESOLUTION NO. HA-32, AND AMENDING THE PROCEDURE FOR SETTING RENTAL RATES AND THE IMPLEMENTATION THEREOF WHEREAS, the Palm Desert Housing Authority (the "Housing Authority") wishes to amend the procedure, 1) to set and implement annual rental rates and maximum rent for residential rental units owned and/or operated as affordable by the Palm Desert Housing Authority ("Authority Unit(s)") for the purpose of providing affordable housing to persons and families of low or moderate income and 2) to increase rents charged for Authority Units in accordance with such rates; NOW, THEREFORE, THE PALM DESERT HOUSING AUTHORITY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. Setting Annual Rental Rates and Maximum Rent A. The Executive Director shall set annual rental rate amounts for Authority Units to be effective each year on July 1st or 30 days from the date that the area median income limits are published by the California Department of Housing and Community Development ("HCD"), whichever is later, in the following manner. For Authority Units acquired, developed, rehabilitated, or otherwise assisted, which are required to be available to and occupied by (a) persons and families whose income is between 20 percent and 65 percent of the area median income, or (b) by persons and families of low or moderate income, annual rental rates shall be set in accordance with the terms of that certain Stipulation for Entry of Judgment in Case No. Indio 51143, as subsequently amended (the "Stipulation") to adhere with state regulations adopted pursuant to California Health and Safety Code section 50052.5, 50053, 50079.5, 50093 and 50105 as they existed prior to 1990 and as interpreted at that time by Title 25 California code of Regulations, 6900 et seq., and any amendments made thereto. B. In no event shall the annual rental rate for any Authority Unit exceed the affordable rent for that unit as calculated in accordance with Health and Safety Code Section 50053 and as interpreted by Title 25 California code of Regulations, 6900 et seq., or exceed affordable rent as determined by any state, federal, or other public agency guidelines that provide supplemental rental assistance to the persons of that unit or on behalf of that unit. C. The Executive Director shall set maximum rent concurrently with the annual rental rates each year in the following manner: i. For all Authority Units acquired, developed, rehabilitated, or otherwise RESOLUTION NO. HA - 51 assisted, which are required to be available at affordable housing cost to persons and families of low or moderate income, maximum rent shall be set in accordance with the fair market rents in effect at the time for each unit type as published by the U.S. Department of Housing and Community Development ("HUD") for Riverside County. ii. The Executive Director may conduct at any time, not to exceed more than once every other year, a survey of area market rental rates for rental units similar in size and unit mix to the Authority Units and at its discretion may adjust and set maximum rental rates in accordance with the survey results for the local area. For example, the market rental rate for a two -bedroom unit in a duplex may be established as the maximum rental rate for a two -bedroom Authority Unit in a duplex. iii. The Executive Director may establish maximum rental rates at an amount that is less than the market rental rate to compensate for an unusual property condition. Section 2. Implementation of Rental Increases A. For all Authority Units, after proper notice is given; i. The full amount of the rental rate increase shall be implemented upon vacancy or at lease renewal, except if the unit or the property on which the unit is located is in need of renovations, the rental rate increase may be deferred by the Executive Director until completion of the renovations or the increase(s) may be Tess than otherwise provided for pursuant to this Section. ii. Where the implementation affects public, federal or local rental assistance, or in instances where 12-month leases are required for other purposes, the full amount of the rental rate increase shall be implemented at lease renewal or as may otherwise be required in connection with such rental assistance. Section 3. Tenant income shall be calculated pursuant Title 25 Califomia Code of Regulations, Section 6900 et seq. and adjusted for family size. Tenant income shall be sufficient to pay affordable rent as determined for that unit in accordance with Title 25 California Code of Regulations, Section 6900 et seq., the Stipulation or Health and Safety Code Section 50053. Section 4. Utility Allowances as prescribed in Health and Safety Code Section 50053, shall be set in accordance with the utility allowances in effect at the time the annual rental rates are established in accordance with Section 1 for each unit type as published by the Housing Authority of the County of Riverside ("HARivCO") P6402\0001\869149.6 G:\NOUSING\laulca Gonzales \HOUSING AUTHORITY \ RENTAL RATES\Ru - HA - Amending Reed HA-32 Rental Rat. Pobcy.doc 2 RESOLUTION NO. HA - 51 Section 5. The Executive Director may take any other action which he believes is necessary or desirable to implement the intent of this resolution so long as such action is not inconsistent with the terms hereof. PASSED, APPROVED, and ADOPTED by the Palm Desert Housing Authority, this 14th day of March, 2013, by the following vote, to wit: AYES: BENSON, SPIEGEL, TANNER, WEBER, and HARNIK NOES: NONE ABSENT: NONE ABSTAIN: NONE /1)j n C. Harnik, Chairman ALM DESERT HOUSING AUTHORITY ATTEST: Rachelle D. Klassen, Secretary PALM DESERT HOUSING AUTHO P6402\0001\869149.6 G:\HOUSING\lessica Gonzales\HOUSING AUTHORITY\ RENTAL RATES\Res - HA -Amending Resol HA-32 Rental Rate Policy.doc 3