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HDC - Item 2 - Revised Tenant Selection Criteria for Garvey Senior Housing ProjectMemorandum To: Bill Crowe, Executive Director From: Stephen Copenhaver, GRC Date: July 17, 2002 Subject: Revised Tenant Selection Criteria for Garvey Senior Housing Project Attached, please find a copy of the tenant selection criteria for the Garvey Senior Housing Project that reflects the discussion at the Board meeting of July 9, 2002. Although Board action on the tenant selection criteria was continued to the July 23rd meeting, the Board expressed interest in exploring the possibility of bringing the selection criteria in conformance with the PRWORA commonly referred to as the Welfare Reform Act. This federal law became effective in August of 1996; however, to date, not all federal departments have adopted administrative regulations for implementing the law. The lack of administrative regulations implementing the law represents some risk that the criteria could be challenged, but Agency Counsel believes that Board's attempt to apply a federal law that has been in place for six years is a reasonable position for the Board to take. The revised tenant selection criteria now contains a provision that requires all applicants for rental units to be U.S. citizens or permanent legal aliens as defined in the Welfare Reform Act. If the revised selection criteria achieves the Board's goals for bringing the selection criteria in compliance with the most recent federal law, the property managers will commence processing applications and selecting tenants in the order that they appear on the waiting list. The property managers have advised us that the vast majority of the applicants on the waiting list are U.S. citizens or permanent legal aliens although preliminary information submitted by the applicants has yet to be verified. This indicates that few, if any, applicants will be impacted by the revised criteria. The waiting list was initiated upon achieving lease up at the Angelus Senior Housing Complex. Since many of the applicants with interest in the project have been in the country and the local area for more than a couple of years, they most likely would meet the criteria in federal law. The property managers believe that lease -up of the complex will require approximately 45 to 60 days and another 30 days or so to accomplish actual move -in. JUL 2 3 2002 ITEM No. HOUSING AGENDA July 17, 2002 Page 2 Attached are the following documents: the revised Tenant Selection Criteria and the original staff report from the July 9" Meeting. Recommendation Direct staff to: a) proceed with pre - leasing efforts verifying incomes following the procedures outlined in the July 9th staff report; and b) approve the attached revised Summary of Tenant Qualifications and Selection Criteria. The following Criteria have been adopted by the RHDC Board to establish the minimum age, income, residency, health standard and the maximum level of financial assets for suitable tenants. These criteria are as follows: Minimum Qualifications • Citizenship/Oualified Alien Status: All applicants shall be U.S. citizens or be qualified aliens, as defined at 8 U.S.C. section 1641, eligible for Federal public benefits under the provisions of the Personal Responsibility and Work Opportunity Reconciliation Act ( "PROWA "), commonly referred to as the Welfare Reform Act. • Age: 62 years or older for at least one occupant and 45 years or older for co- applicants and live -in attendants for the handicapped. • Maximum The maximum income shall be 40% of area median income as adjusted for household size. The minimum income shall be $8,800 per year. For calendar year 2002 the maximum income for a single occupant would be $13,120 and the maximum income for a two- person household would be $15,000. • Residency: Each tenant shall have been a Rosemead resident for six months preceding the application submission date. This criteria shall apply to multiple person households as well as single person households. • Health Suitable for independent apartment living. • Maximum Assets Ownership of no other real estate and no more than $20,000 per individual in liquid assets such as stocks, cash deposits, bonds, etc. • Existin¢ Housing Assistance Applicants shall not have lived in another subsidized unit or benefited from another rental assistance program for one year prior to submitting an application. • Rent: Consistent with the Angelus project at $250 - $300 per month for a one - bedroom and $450 for two- bedroom units. Two bedroom units will be reserved for not less than two occupants. • Handicapped Handicapped adapted units will be reserved for handicapped residents only and be selected in order of filing of applications.