HomeMy WebLinkAboutRES HA-62RESOLUTION NO. HA- 62
A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY
RESCINDING RESOLUTION NO. HA-51, 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. For
tenants that receive such supplemental rental assistance and whose
maximum rent, calculated by the assistance provider, is less than the
maximum or market rent established by this policy, the rent calculated by the
assistance provider shall be the maximum amount changed for that unit.
C. The Executive Director shall set maximum rents concurrently with the annual
rental rates each year as follows.
RESOLUTION NO. HA - 6?
i. For all Authority Units, which are required to be available at an
affordable housing cost to persons and families of low or moderate
income, maximum rent shall be set by unit type in an amount equal to
the lesser of:
a. The Fair Market Rents in effect at the time the annual rental
rates are set, pursuant to Section 1. A. of this Resolution, as
published by the U.S. Department of Housing and Community
Development ("HUD") for Riverside County; or
b. The Housing Authority of the County of Riverside ("HARivCo")
Voucher Payment Standards, including any reasonableness
adjustments.
ii. The Executive Director may establish and/or revise market rents (the
"Authority Market Rents") by unit type for the Authority Units based on
either:
a. A survey of current rents for units within the City, which are
comparable to the Authority Units, using newspapers, internet
research, property owner interviews, property manager
interviews, published market analysis for the area, or rental
magazines, that indicates the maximum rent for any unit,
established according to C.i. above, exceeds the rent that is
comparable for the area by 10% or more for a studio or 1
bedroom unit or by 15% or more for a 2 or more bedroom unit;
or
b. A professionally prepared comparative area market analysis of
rental rates for rental units similar in size and unit mix to the
Authority Units.
iii. The Executive Director may reduce rental rates below the Authority's
Market Rate for any Authority Unit to compensate for the unusual
property condition of such unit.
Section 2.
Implementation of Rental Increases
A. For each Authority Unit, after proper notice is given;
i. Any increase in the annual rental rate established pursuant to Section
1. A. of this Resolution 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
Section 1. A. of this Resolution.
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
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RESOLUTION NO. HA - 62
implemented at lease renewal or as may otherwise be required in
connection with such rental assistance, including any calculations
pursuant to Section 1. B. of this Resolution.
iii. The Executive Director, in his or her sole discretion, may determine
that the full amount of the maximum rent increase pursuant to Section
1. C. i. should not be implemented and that such increase should
instead be phased in pursuant to an implementation plan, which
implements a series of reasonable increases until the full maximum
rent increase has been realized or until vacancy of the unit.
Section 3. Tenant income shall be calculated pursuant Title 25 California 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.A. for each unit type as published
by HARivCO.
Section 5. The Executive Director may take any other action which he deems
necessary to facilitate, modify, establish and 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
27th day of March, 2014, by the following vote, to wit:
AYES: BENSON, HARNIK, SPIEGEL, WEBER, and TANNER
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
Van G. Tanner, Chairman
PALM DESERT HOUSING AUTHORITY
ATTEST:
R. -helle D. ' lassen, Secretary
PALM DESERT HOUSING AUTHORIT
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