D.C. Mun. Regs. tit. 10, r. 10-B3305

Current through Register Vol. 71, No. 36, September 6, 2024

Rule 10-B3305 - CERTIFICATION CRITERIA FOR ELIGIBILITY IN THE PROGRAM

3305.1

A rental housing accommodation which meets all the criteria for a distressed property as defined in § 3302 may be eligible for consideration of tax deferral, moratorium or forgiveness if it also meets the certification criteria of this section.

3305.2

At least fifteen percent (15%) of the units (referred to as "reserved units") in the rental housing accommodation shall be made available at rents which are affordable by lower and moderate income households during the ten (10) year period of the rent regulatory agreement under § 3309. In determining compliance with this requirement, the following shall apply:

(a) Affordable rents shall not exceed an amount to be determined periodically by DHCD which shall be no higher than thirty percent (30%) of. the monthly gross income of lower and moderate income households of appropriate household size in relation to unit size;

(b) In determining the number of units for compliance with the fifteen percent (15%) requirement of this subsection, any fraction of a whole number shall be rounded up to the next highest whole number; and

(c) Where essential utilities are not provided as part of the rent, a reasonable allowance for utilities as determined by DHCD shall be subtracted from the maximum allowable rent in determining compliance with affordable rent requirements.

3305.3

The maximum allowable rents for reserved units including utilities, determined periodically by DHCD pursuant to § 3305.2, shall be based on thirty percent (30%) of one-twelfth (1/12) of annual income limits for very low income families under the Federal Section 8 Program, applied as follows:

Type of Unit	Applicable Section 8 Very Low Income Unit
Efficiency 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom 5 Bedroom	One person limit Two person limit Three person limit Five person limit Seven person limit Eight person limit

3305.4

The housing provider shall certify to DHCD that he or she shall rent all reserved units in the project only to lower and moderate income households.

3305.5

Thirty-five percent (35%) of the units in the project, which shall be in addition to the percentage of units required in § 3305.2, shall be made available on a priority basis for a period of five (5) years to households in possession of a Certificate of Eligibility from DHCD under the Section 8 Existing Housing Program or the Tenant Assistance Program; Provided, that nothing shall prevent the housing provider from renting these units to other households under the following conditions:

(a) The proposed rental rates exceed the maximum rents allowed under the Section 8 or Tenant Assistance Programs;

(b) Insufficient households with certificates actually apply for the units; or

(c) The priority period has expired.

3305.6

The units specified in § 3305.3 shall be considered made available on a priority basis if the housing provider gives advance notice to DHCD of the actual or expected availability of units for the following priority periods:

(a) For units offered for initial occupancy, a period of ninety (90) days; or

(b) For units becoming available after initial occupancy, a period of thirty (30) days.

3305.7

For projects containing forty (40) or more units, not less than fifty percent (50%) of reserved units in the completed project shall contain two (2) or more bedrooms.

3305.8

In determining the number of units for compliance with the fifty percent (50%) requirement, any fraction of a whole number shall be rounded down to the next lowest whole number.

3305.9

The housing provider shall be required to enter into a rent regulatory agreement with DHCD, covering the reserved units, consistent with § 3310.

3305.10

The housing provider shall have certified to DHCD that none of the rental units in the project which are subject to a condominium regime at any time during the term of the rent regulatory agreement, shall be offered for sale or sold during the term of the rent regulatory agreement.

3305.11

The requirement of § 3305.8 may be waived by the Director upon a finding of the following:

(a) There are not a sufficient number of existing two (2) or more bedroom units in the project prior to rehabilitation to meet the requirement; or

(b) It would be physically or economically infeasible for the project to convert existing units to two (2) or more bedrooms to meet the requirement, or that the conversion would displace existing tenants in the project.

3305.12

For projects where the Director has provided a waiver under §§ 3305.11, DHCD may require that all existing two-bedroom or larger units in the project be reserved units.

3305.13

For projects which have lower and moderate income households in residence, adequate provision shall be made in the Plan or application for assistance to assure that rents remain affordable and that relocation assistance is provided for those persons required to move.

3305.14

Funding to provide relocation assistance and affordable rents for existing lower and moderate income tenants shall be assured by the housing provider, and may include, but shall not be limited to, one or more of the following:

(a) If funds are available, a request for funding under the Tenant Assistance Program (TAP), or the Section 8 Rental Rehabilitation or Moderate Rehabilitation Programs, to subsidize the rents of eligible tenants needing assistance in relation to the proposed rents in the Plan (requests for TAP funding under this Program shall receive priority consideration);

(b) Requests for other District or federal funding available to subsidize proposed improvements to the property at a level which will keep rents affordable to existing tenants; or

(c) Provision in the financing plan for internal project subsidies or relocation payments and housing payments.

3305.15

Lower and moderate income tenants living in the property, at the time the Plan under this program is approved, shall be entitled to affordable rents by one or more of the following methods:

(a) Approval and acceptance of subsidies to the tenant(s) under the District's Tenant Assistance Program or the federal Section 8 Program;

(b) Placement of the tenant(s) in a reserved unit, as defined in § 3305.2; Provided, that the rent level of the reserved unit does not exceed thirty percent (30%) of one-twelfth (1/12) of the tenant's annual income;

(c) Assurance that the existing rent level of the tenant shall be maintained for a period of four (4) years; Provided, that the following adjustments to the existing rent level shall be allowed:

(1) If thirty percent (30%) of one-twelfth (1/12) of the tenant 's annual income is higher than the existing rent level, that amount may be charged during the four (4) year period, with allowance for the housing provider making an annual redetermination of income of the tenant during the four (4) year period; and

(2) The existing rent level may be increased during the four (4) year period by the amount of the adjustment of general applicability in the rent ceiling as determined annually pursuant to D.C. Code § 45-2516 (1981); or

(d) Creation of an adequate special fund for the property which provides a subsidy between the rent level required under paragraph (c) of this subsection and the proposed rent level of the unit under the Plan for the four (4) year period.

3305.16

Tenants who are required to move, as determined at the time the Plan is approved, because of housing overcrowding, and who cannot be accommodated by a move within the property or by proposed improvements to the building, shall be entitled to receive the following:

(a) Payment for relocation moving expenses at least equivalent to the assistance payable for displaced tenants under Title VII of the Act as set forth in D.C. Code § 45-2573; and

(b) For lower and moderate income tenants living in the property at the time the Plan under this program is approved, the housing provider shall provide either a TAP or Section 8 Existing Housing Certificate or a housing assistance payment equal to forty-eight (48) times the amount obtained by subtracting the existing rent level of the tenant, or thirty percent (30%) of one twelfth (1/12) of the tenant's annual income if that is higher, from the lesser of the following:

(1) The monthly rent of a comparable replacement dwelling, not to exceed the fair market rent level established by the federal government for the Section 8 existing housing program; or

(2) The monthly rent of the unit the tenant actually moves to; Provided, that the unit is in substantial compliance with the D.C. Housing Code.

3305.17

Housing providers may make the housing assistance payment on a lump sum basis or, with the tenant's consent, on a monthly basis.

3305.18

Low and moderate income tenants who are not required to move under the Plan, but who freely elect to move from the property after approval of the Plan, shall not be eligible for the relocation or other assistance as provided in this section.

3305.19

Tenants who are required to move on a temporary basis to allow for rehabilitation work on the property shall be provided adequate interim housing accommodations at affordable rents consistent with this section.

D.C. Mun. Regs. tit. 10, r. 10-B3305

Final Rulemaking published at 35 DCR 2541, 2547 (April 8, 1988)