Laserfiche WebLink
2 <br />Program Requirements <br />There are a number of requirements outlined in the federal regulations; the following <br />highlights the substantive requirements: <br />- The rehab grant cannot exceed 50% of the total cost of rehab. <br />- The amount of the rehab grant must be at least $300 /unit and may not exceed <br />$5,000 /unit. <br />- Properties must be located in "eligible neighborhoods "; generally described as <br />neighborhoods where median incomes are less than 80% of the area median incomes. <br />- Properties must be in a "substandard condition" in order to be eligible for <br />receipt of the grant dollars. Substandard generally means that some aspect of <br />the building is not in compliance with either the local or state building code, <br />the Department of Housing and Urban Development's Housing Quality Standards, or <br />the State's 1985 Energy Efficiency Standards. <br />- After rehabilitation properties must meet all requirements of HUD's Housing <br />Quality Standards and the State's 1985 Energy Efficiency Standards. <br />- Owners must agree not to convert the property to condominiums and not to <br />discriminate against,subsidized tenants for 10 years. <br />Administrative Requirements <br />Minnesota Housing Finance Agency must comply with a number of standards in <br />administering the program: <br />- The Agency must show a direct benefit of 70% of the funds by lower income <br />families. The Agency monitors that at least 70% of the units after rehab are <br />occupied by lower income families (families having incomes less than 80% of <br />median). The extent to which buildings are occupied by lower income families <br />before rehabilitation is used as a selection criterion by the Agency. <br />- The Agency must demonstrate that priority was shown for large families; 70% of <br />the units after rehabilitation must have at least three bedrooms. <br />- The Agency must demonstrate that rents in at least 80% of the rehabilitated <br />units remain at "affordable" levels for seven years after rehabilitation. <br />Rent controls are prohibited. Failure to meet the affordability standard will <br />cause the Minnesota Housing Finance Agency to have its funding level reduced in <br />subsequent years. <br />- No administrative dollars are appropriated for the program, although municipali- <br />ties may utilize small cities block grant funds for program operation. <br />- Rehabilitation of buildings with 12 units or more requires the administration of <br />Davis -Bacon requirements. <br />40 <br />