Section 7311 - Over-Income Households(a) If, at the time of recertification, a tenant household's income exceeds the limit for an income level applicable to new tenants that is greater than the income limit designated for the household, and, to the extent a rent increase for the household is permitted by statutes and regulations governing the low income housing tax credit program, the Sponsor: (1) shall redesignate the tenant's Unit as a Unit at the higher income level;(2) shall increase the tenant's Rent to the level applicable to Units at the higher income level; and(3) shall designate the next available comparable Unit as a Unit at the income level originally applicable to the household unit the Unit mix required by the Program regulatory agreement is achieved. A Unit shall be deemed "comparable" if it has the same number of bedrooms as the original Unit. For example, in a Project where the income limits utilized to qualify new tenants are 20%, 40% and 50% of Area Median Income, if the income of a household occupying a Unit designated as a 20% Unit increases to 48% of Area Median Income, the Sponsor must redesignate the household's Unit as a Unit at the 50% level, increase the tenant's Rent to the level applicable to Units at the 50% level, and designate the next available comparable Unit as a Unit at the 20% income level.
(b) If at the time of recertification a tenant household's income exceeds the income limit designated for the household's Unit, but does not exceed the limit for a higher income level applicable to new tenants, the Sponsor may increase the household's Rent to an amount not exceeding the Rent limit applicable to the household's income level at the time of recertification. For purposes of this subsection, income levels shall not be limited to those applicable to new tenants, and shall consist of five percent increments of area median income. Continuing with the example described in the subsection (a), the income levels utilized to establish Rent limits upon recertification would be 20%, 25%, 30%, 35%, etc. A household occupying a Unit in this project with a 20% limit whose income, upon recertification, had increased to 32% of area median income could have their Rent increased to the Rent level applicable to the 35% income level.Cal. Code Regs. Tit. 25, § 7311
1. New section filed 1-8-2002; operative 1-8-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).
2. Repealer and new section filed 9-29-2003; operative 9-29-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 40). Note: Authority cited: Sections 50406(n), 50675.1(c) and 50675.11, Health and Safety Code. Reference: Sections 50675.2(b), 50675.7 and 50675.8, Health and Safety Code.
1. New section filed 1-8-2002; operative 1-8-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).
2. Repealer and new section filed 9-29-2003; operative 9-29-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 40).