N.H. Admin. Code § Cdfa 306.02

Current through Register No. 50, December 12, 2024

Section Cdfa 306.02 - Housing Grants

(a) Eligible housing activities shall include:

(1) Rehabilitating housing which does not meet physical condition standards for HUD housing that is decent, safe, sanitary and in good repair as defined in 24 CFR 5.703;

(2) Improving the efficient use of water and energy;

(3) Inspecting, testing and abating lead-based paint;

(4) Exterior painting;

(5) Providing elderly or handicapped access;

(6) Historic preservation;

(7) Water, sewer, street and sidewalk improvements on privately owned property;

(8) Maintenance of a housing inspection program, including a provision for a housing inspector; and

(9) Any other activity that the authority determines to be consistent with the national objectives in 42 U.S.C. 5304(b) of the federal act.

(b) The following shall be eligible for financial assistance:

(1) Low and moderate income homeowners; and

(2) Landlords.

(c) Landlords shall be eligible to receive financial assistance in order to rehabilitate housing units under the following conditions:

(1) At least 51 percent of the units in the building are occupied or if vacant, shall be reserved for low and moderate income households;

(2) The landlord agrees to rent vacant units rehabilitated with CDBG funds to low and moderate income household(s) for no less than 5 years following completion of the project;

(3) The rent shall meet one of the criteria below:

a.Not exceed 100 percent of the "Fair Market Rent for Existing Housing" published by HUD under 24 CFR 888 in the Federal Register for no less than 5 years following completion of the project; or

b.For rehabilitated housing and infrastructure improvements in combination with capital from entities which target low and moderate income beneficiaries, rents (including utility allowance) for CDBG assisted units shall be as defined by HUD in 42 U.S.C. 1437 a(a)(1) of the United States Housing Act of 1937, as amended for the State of New Hampshire; and

(4) All other units in the same building meet the standards in (k) whether or not all units utilize CDBG funds.

(d) Landlords shall be eligible to receive financial assistance for the housing unit(s) actually rented to a low and moderate income household(s) in a building in which less than 51 percent of the units are occupied by such households, provided that:

(1) The landlord agrees to adhere to the requirements in (c)(2), (3) and (4); and

(2) CDBG funds shall not be used to rehabilitate the units in the building that will not be occupied by low and moderate income households.

(e) Landlords shall be eligible to rent at the full fair market rent level to tenants with section 8 certificates or vouchers.

(f) Landlords shall rent at no more than the fair market rent for a one bedroom unit for an independent group residence, shared or congregate housing unit.

(g) Landlords shall rent at no more than 60 percent of the fair market rent for an efficiency housing unit or a single room occupancy housing unit.

(h) To meet the requirements described in (c)(1) and (2) in the case of a 2 unit structure, only one of the units shall be required to be occupied by a low and moderate income household.

(i) Public housing authorities and private or public nonprofit organizations shall be eligible to receive CDBG financial assistance provided that they meet the criteria in this section.

(j) Low and moderate income households that acquire housing units as a result of a project shall pay no more than 30 percent of their gross income on housing cost that shall include, but not be limited to, the following:

(1) Monthly mortgage payments;

(2) Property taxes;

(3) Insurance; and

(4) Heat.

(k) Housing units rehabilitated with CDBG funds shall meet the following standards:

(1) Housing that is decent, safe, sanitary and in good repair as defined in 24 CFR 5.703, or state and municipal housing or building, electrical and plumbing codes where they exceed the HUD standards;

(2) The state's life safety code pursuant to RSA 153:5 and Saf-C 6000;

(3) The state energy code pursuant to RSA 155-D and Puc 1800; and

(4) Where applicable, the state's architectural barrier free design code pursuant to RSA 275-C:10 through C:18 and Abfd 300.

(l) The relevant rehabilitation standards above shall not apply where the sole activity consists of:

(1) Painting the exterior of residences of low and moderate income households;

(2) Removing material or architectural barriers from the residences of the elderly or handicapped; or

(3) Water, sewer, street and sidewalk improvements on private property in support of housing.

(m) The following funding limits shall apply to housing rehabilitated or assisted with CDBG funds:

(1) For rehabilitation of apartment units, single family and mobile/manufactured homes CDBG funds shall not exceed $18,000 per unit; and

(2) For single room occupancy housing CDBG funds shall be limited to $7,000 per residential unit.

(n) For all buildings with either 8 or more residential units for which a minimum of $100,000 in CDBG funds is proposed, the applicant shall submit a proforma analysis to show revenues and expenses that will be generated from the building. The proforma and supporting information shall be submitted with the application.

(o) The following funding limits shall apply to shared, group and congregate housing rehabilitated with CDBG funds:

(1) For a building of up to 8 units, CDBG funds shall be limited to $40,000 for the building plus $10,000 per unit; and

(2) For a building with 8 or more units, CDBG funds shall be limited to $15,000 per unit after the $40,000 base for the building provided that the applicant shall document financial solvency of the building by submission of a proforma analysis.

(p) Exterior paint programs shall not exceed $300 in CDBG funds per housing unit. Paint and equipment rental shall be the only allowable costs.

(q) The relevant limits of (m) shall not apply where the rehabilitated multi-family housing shall provide a long term benefit primarily to low and moderate income households by:

(1) Providing housing at rent levels specified in (c)(3); or

(2) Providing homeownership opportunities at costs no greater than those described in (j).

(r) The grantee shall place a 5 year lien on any residential building which has been rehabilitated with CDBG funds.

(s) A municipality may operate a revolving loan fund for a housing project provided:

(1) That low as well as moderate income households will benefit;

(2) At least an equal amount of matching loan funds will be available from banks and/or other financial institutions at market or below market interest rates;

(3) The municipality has the long term capability to administer the revolving loan fund after the grant closeout; and

(4) Evidence of such long term capability may be a contract with a bank or administering agency to provide such services.

N.H. Admin. Code § Cdfa 306.02

(See Revision Note at chapter heading for Cdfa 300) #8387, eff 6-29-05; amd by #8515, eff 1-1-06