Item 27 - Public Hearing - Approve an Amended and Restated Regulatory Agreement for Garden Court Apartments Rehabilitation Project

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EXHIBIT 1 (d) Recertification of Incomes. Owner shall reexamine the income of each tenant household living in the Restricted Units at the same times as required TCAC regardless if low income tax credits have been allocated to the Project. The maximum monthly rent shall be recalculated by Owner in accordance with the then maximum rent for Existing Restricted Tenants, as defined above, or for 60% Income Households or 80% Income Households, as applicable, as published by TCAC. Any increase in rents for the Restricted Units is subject to the provisions of existing leases with tenants. In any event, Owner must provide tenants of the Restricted Units not less than 30 days prior written notice before implementing any increase in rents, and must comply with any state or local law providing for additional notice requirements. (i) Owner shall make reasonable efforts to verify or cause to be verified that the Gross Household Income for each Eligible Household complies with the requirements of this Agreement. These efforts shall include verification of the income and asset statement provided by an applicant in an income certification is accurate by taking, at a minimum, at least one of the following steps as a part of the verification process: (1) obtain three months consecutive pay stubs for the most recent pay period, (2) obtain an income tax return for the most recent tax year, (3) obtain an income verification form from the applicant's current employer, (4) obtain an income verification form from the Social Security Administration and/or the California Department of Social Services if the applicant receives assistance from either of such agencies, or (5) if the applicant is unemployed and has no such tax return, obtain another form of independent verification. (ii) OHDC agrees to recertify or cause to be recertified household eligibility on the same time frame and on the same forms as required by TCAC. Owner shall provide to City the form of tenant income recertification that is required by TCAC no later than seventy-five (75) days after close of each calendar year. (e) Increases in Tenant Incomes Above 80% Income. (i) Increase from 60% AMI Income to, at or below 80% AMI Income. In the event a tenant of a Restricted Unit no longer qualifies as a 60% Income Household as the result of increases in the income of the household, Owner may increase the rent charged to such tenant to an amount equal to the maximum rent for 80% AMI Units as set forth in Section 2(c)(ii). In addition, to the extent that the number of 60% AMI Units falls below forty-one (41) as the result of an increase in the income of a tenant of a Restricted Unit, Owner shall rent to a 60% Income Household, at Affordable Rent, the next Unit that becomes vacated, such that the total number of 60% Income Units is restored to forty-one (41). (ii) Increase Above 80% AMI Income. In the event a tenant of a Restricted Unit no longer qualifies as an 80% Income Household as the result of increases in the income of the household, Owner may increase the rent charged to such tenant to an amount equal to 30% percent of the tenant's household income. In addition, to the extent that the number of Restricted Units falls to below eighty-three (83) as the result of an increase in the income of a tenant of a Restricted Unit, Owner shall rent the next Unit that becomes vacated, to either a 60% Income Household or an 80% Income Household at Affordable Rent to comply with the requirements of Section 2 above. 2 Error! Unknown document property name.