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(a) In general. An owner shall comply with this section before applying for a construction permit. An owner shall:
(1) submit an application to the department detailing the proposed project, which includes the following information:
(A) the legal description and address of the property;
(B) any restrictive covenants or contracts that will require the owner to lease dwelling units at a specific rent for a specific term of years, along with the number of units; and
(C) any other information determined by the director to be necessary to aid in the determination of whether the owner is eligible to participate in the mixed-income housing program;
(2) obtain a certified verification of the building site's market value analysis ("MVA") category;
(3) sign a reserved dwelling unit verification form provided by the department where the owner acknowledges receipt of information regarding the minimum and maximum percentage of reserved dwelling units for that category, states the intended pro-rata distribution of the reserved dwelling units, if applicable, and provides any other pertinent information requested by the director;
(4) acknowledge its intent to participate in the mixed income housing development bonus program.
(b) Reserved dwelling unit verification. A development using a mixed-income development bonus in Division 51A-4.1100
may reserve no more than 50 percent of the dwelling units in each development for households at or below 80 percent of Area Median Family Income. This maximum percentage of reserved dwelling units may be waived for developments that are enrolled in a program administered by the department and authorized by the city council that furthers the public purposes and goals of the city's housing policy.
(c) Conflicts. In case of a conflict between the documents required in this section and the requirements of:
(1) the base zoning district, the base zoning district controls; and
(2) the restrictive covenant, the restrictive covenant controls.
(d) Expiration of market value analysis category, reserved dwelling unit, and participation verifications. Verifications expire one year after the date of issuance if the owner has not filed a mixed-income restrictive covenant in the real property records related to the property for which the verifications were issued and made reasonable progress, as defined in Section 311.3 of Chapter 52 of the Dallas City Code, on the Property that will be subject to the mixed-income restrictive covenant. (Ord. Nos. 31142
; 32195
)
(a) In general. A mixed-income restrictive covenant must be executed and recorded in accordance with this section on a form provided by the city. The instrument must:
(1) be signed by all owners of the Property;
(2) be signed by all lienholders, other than taxing entities, having an interest in the Property;
(3) contain a legal description of the Property;
(4) specify the number of any required reserved dwelling units and the income band applicable to each unit;
(5) be a covenant running with the land;
(6) be for a term of 20 years with one-year automatic renewals (to allow for periods of noncompliance until the full 20-year term is met) and it is terminated by a subsequent written instrument;
(7) state that all signatories agree to defend, indemnify, and hold harmless the City of Dallas from and against all claims or liabilities arising out of or in connection with the instrument;
(8) state that it may only be amended or terminated by a subsequent written instrument that is:
(A) signed by all owners of the Property and all lienholders, other than taxing entities;
(B) approved by the director;
(C) approved as to form by the city attorney; and
(D) recorded and made a part of the deed records of the county or counties in which the Property is located;
(9) state that the owner agrees to comply with all the requirements of this article, including the submission of quarterly unit status reports, maintaining the development in compliance with the city's health and safety ordinances, full cooperation with any audits and inspections conducted pursuant to the mixed-income housing program including providing access to all records required to be maintained in accordance with this article and allowing the physical inspection of the property, compliance with the city's Program Manual maintained by the department, and continued compliance with maintenance of the physical attributes of the property in accordance with this article;
(10) state that the owner agrees to maintain the property in compliance with all federal, state, and local health and safety regulations;
(11) state that the owner agrees to notify the city within 30 days of any change in ownership, default, foreclosure, or bankruptcy;
(12) state that it may be enforced by the City of Dallas;
(13) state that it shall be governed by the laws of the State of Texas; and
(14) be approved by the director and be approved as to form by city attorney.
(b) Commencement and termination of rental affordability period. The rental affordability period begins on the date the first reserved dwelling unit is occupied by an eligible household and continues until the expiration of the term of years stated in the mixed-income restrictive covenant, unless the term has been tolled and extended due to the owner's substantial noncompliance with the mixed-income housing program.
(c) Instrument to be recorded. A true and correct copy of the fully executed mixed-income restrictive covenant must be recorded in the deed records of the county or counties in which the property is located. The instrument will not be considered effective until it is recorded in the deed records in accordance with this article and a recorded copy of the instrument is filed with the director.
(a) Compliance. Except as provided in this article, the owner shall provide reserved units and conduct eligibility determinations in accordance with the handbook, 24 CFR Part 5, "General HUD Program Requirements; Waivers," and the department's program manual. Where the program manual provides specific exceptions to the handbook or to 24 CFR Part 5, the program manual controls with respect to the mixed income housing development bonus program.
(b) Exceptions. The following mandatory items in the handbook do not apply to the mixed-income housing program:
(1) inquiries regarding or documentation of the immigration status of an applicant or eligible household;
(2) use of HUD forms, unless specifically required in this division;
(3) compliance with HUD requirements that are specific to a HUD program and are not generally-applicable; and
(4) use of the Enterprise Income Verification (EIV) system.
(c) Determination of family size. An owner shall use the broad definition of family as defined in 24 CFR §5.403, "Definitions," and may not engage in any discriminatory housing practices as defined in Section 20A-4 of this chapter.
(d) Rent and income limits. The department will annually publish rent and income limits to be used in determining an applicant's eligibility to lease a reserved dwelling unit or a household's eligibility to renew the lease on a reserved dwelling unit. The department shall use the income limits published annually by HUD for the Dallas, TX HUD Metro Fair Market Rent Area, adjusted for family size, as the basis for the department's income limits and use the nine percent housing tax credit limits published annually by the Texas Department of Housing and Community Affairs as the rent limits.
(e) Income bands.
(1) An owner shall ensure that reserved dwelling units are only leased to and occupied by eligible households in accordance with the development bonus restrictive covenant.
(2) Eligible households making less than the minimum AMFI for a particular income band, including voucher holders, may be counted for that income band provided that they are charged an affordable rent.
(f) Affordable rents.
(1) An owner shall ensure that an affordable rent is charged to eligible households occupying reserved dwelling units and shall re-certify eligibility and rent annually.
(2) An owner shall provide a minimum of 30 days written notice to the eligible household before a rent change. The notice must include a summary of how the change was calculated.
(3) The affordable rent must include all monthly charges or fees that are mandatory for all tenants but does not need to include charges or fees for optional amenities. The owner may not impose expenses or fees that are applicable only to reserved dwelling units.
(g) Annual certification of eligibility. An owner shall conduct an annual certification of household income and composition for each eligible household in accordance with the program manual.
(1) An owner shall not conduct a certification on less than an annual basis unless requested to do so by an eligible household. An owner shall conduct the interim certification in the same manner as conducting an annual certification. An owner may charge a reasonable fee to cover the administrative costs associated with conducting an interim certification.
(2) If an owner fails to complete the annual certification within 120 days of the lease anniversary date, the reserved dwelling unit will be considered out of compliance and the mixed-income restrictive covenant term will be extended for the period of non-compliance. The non-compliance can be cured by completing the annual certification or designating another unit as a reserved dwelling unit and leasing it to an eligible household.
(h) Additional requirements and prohibitions.
(1) The reserved dwelling unit for which an applicant is applying to lease, or for which an eligible household leases, must be the applicant's or eligible household's only residence.
(2) An owner may not allow an eligible household to sublease or otherwise accept compensation for allowing a person or persons who are not documented members of the eligible household, pursuant to the owner's lease agreement with the eligible household, to occupy a reserved dwelling unit, regardless of the terms or length of the occupancy.
(3) Any financial assistance that a student receives under the Higher Education Act of 1965, from private sources, or from an institution of higher education that is in excess of the amounts received for tuition shall be included in annual income, except if the student will live with his or her parents and his or her parents are voucher holders.
(4) The department shall conduct regular inspections and monitoring in accordance with the published program manual.
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