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Comparable Replacement Housing Gone Wrong

Comparable Replacement Housing Gone Wrong. Joan Morgan, Director, Relocation and Real Estate Division, HUD. Displacement Dwelling. 683 sq. ft. first floor 1 BR apartment Subsidized tenant with Housing Choice Voucher Assistance Contract Rent $750, Utility Allowance $39 = $789 Gross Rent

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Comparable Replacement Housing Gone Wrong

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  1. Comparable Replacement Housing Gone Wrong Joan Morgan, Director, Relocation and Real Estate Division, HUD

  2. Displacement Dwelling • 683 sq. ft. first floor 1 BR apartment • Subsidized tenant with Housing Choice Voucher Assistance • Contract Rent $750, Utility Allowance $39 = $789 Gross Rent • HCV Payment Standard $1132 (incl. Util.) • Tenant Rent $175 net ($214 - $39) – medical deduction of $1927 allowed (30% of NET income)

  3. 1 BR Displacement Unit (first floor) $750 Rent & $39 utilities

  4. Temporary Relocation • Issued a Notice of Nondisplacement and provided temporary relocation • Difficult tenant: physical and mental disabilities • Delayed relocation for about 1 year, insisted on a detached or SF residence (based on disabilities) • Moved to a 1BR duplex, 755 sq. ft.

  5. 1 BR Duplex Temporary Unit $1300 Rent & $47 utilities & $198 storage fee

  6. Temporary Relo Cont’d • Rent for unit $1300 (not including utilities) • HCV EXCEPTION Payment Standard $1245 w. utilities • Lease written for $1160 rent w. $47 utility cost = $1245 • Grantee made side payments to owner of $140 per month to cover “maintenance fee” ($1160 & $140 = $1300) and paid $198 storage fee • Tenant portion $88 - $47 = $41 (Net income went down from $244 because of increased medical, payment based on 10% of gross income)

  7. Temporary Relo. Cont’d • Tenant refused all offers to return to original site (within one year of temporary relocation) based on “disability” need for detached or single family home. • Filed a HUD discrimination complaint regarding failure to provide reasonable accommodation for her disabilities • HUD Letter of Finding issued with Determination of No Reasonable Cause

  8. Notice of Eligibility • Notice of termination of temporary relocation assistance issued (effective 22 months after relo) AND • Tenant was issued a Notice of Relocation Eligibility by grantee • Tenant insisted that comparable be based on the temporary unit (not original unit) • Tenant did not agree with comparable provided and filed a URA complaint with HUD

  9. Single Family 3 BR Comparable Offered $1550 rent & $215 utilities

  10. Last Resort Comparable Offered • 3 BR, 1 BA Single Family house • HCV Exception Payment Standard $1245 • Unit rent $1550 + $215 utilities = $1765 • What’s wrong with this picture?

  11. HUD Determination • Tenant was properly issued a Notice of Nondisplacement • Tenant was offered her own and other units at original project (all were refused) • Tenant ‘s claimed-need for a detached or single family unit to accommodate her disabilities was not a result of the project and therefore a choice—she was not displaced.

  12. HUD Determination Cont’d • Termination of temporary relocation assistance was proper • Tenant could use her HCV to find suitable housing to meet her medical needs • She was not eligible for URA relocation assistance.

  13. 2 Years Later • Tenant still occupies the “temporary” unit • Tenant’s share of the rent to owner is $272 (extra $55 for higher cost housing) plus her utilities = $340/mo. total (33% of gross income) • Increase largely due to decrease in medical deductions and tenant’s obligation to pay rent cost above exception payment standard. • Unknown if she still maintains the off-site storage space on her own.

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