city of santa monica housing division
DESCRIPTION
City of Santa Monica housing Division. Affordable Housing Production Program Inclusionary Housing. Overview: . What is AHPP ? What is a Deed Restriction? What are my responsibilities as the owner or property manager of a Deed Restricted property?. AHPP / Inclusionary Housing . - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/1.jpg)
CITY OF SANTA MONICA HOUSING DIVISION
Affordable Housing Production Program
Inclusionary Housing
![Page 2: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/2.jpg)
Overview: What is AHPP? What is a Deed Restriction? What are my responsibilities as the owner or
property manager of a Deed Restricted property?
![Page 3: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/3.jpg)
AHPP / Inclusionary Housing AHPP = Affordable Housing Production Program
(aka Inclusionary Housing Program) A deed restriction is an agreement that was signed
by the developer of the property and recorded on title. It places restrictions on the property which generally run with the property for a 55 year period. The program was created when residents of Santa Monica passed Proposition R which added Section 630 to the City Charter.
The charter amendment specified that 30% of newly constructed multifamily housing be affordable to low and moderate income households.
![Page 4: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/4.jpg)
Owner Responsibilities
Pre-Lease Up Responsibilities Marketing Plan Lease Income Certification of tenants
Post Lease Up Responsibilities Annual Re-Certification of tenants Submitting annual report to City
![Page 5: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/5.jpg)
Marketing Plan
A Marketing Plan is a brief explanation of how vacancies of deed restricted units will be advertised.
The Marketing Plan should be submitted to the City’s Housing Division for review and approval.
![Page 6: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/6.jpg)
Leases & Rental Agreements The lease or rental agreement being used for the
affordable units needs to be submitted to the Housing Division for review and approval.
If the lease or rental agreement doesn’t include language indicating that the unit is deed restricted and annual certification is required, then an Affordable Housing Addendum needs to accompany the lease or rental agreement.
![Page 7: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/7.jpg)
Filling Vacancies When a vacancy occurs, either contact the City
to pull a tenant from the waiting list and/or implement your Marketing Plan.
You may also list your vacant unit with the Housing Authority to attract a Section 8 tenant.
If you chose to take a Wait List or Section 8 tenant you do not have to certify the household’s income (the City will do this for you)
![Page 8: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/8.jpg)
Filling Vacancies Continued… If you take a Section 8 tenant you may be able
to collect a higher rent than allowed by the AHPP program maximum
If you choose to self select a tenant, be mindful of the local live/work preference requirement and remember that you will be responsible for conducting the income verification for that household
![Page 9: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/9.jpg)
What is Income? Income includes the following:
Employment income including bonuses & commissions Alimony Social security Disability Welfare Unemployment Benefits Pensions Financial Aid Supplementary benefits Support payments (gift from friends & family included) Income from sale of real property Income from assets over $5,000 (not including automobiles and
furniture)
![Page 10: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/10.jpg)
Income Certification Collect income declarations from households
members over 18 years of age. Gather income verification documents to backup
the income declaration. Verification for income can be in the form of pay stubs,
income tax returns, bank account statements, financial statements, stock certificates etc.
The income of a live-in aide is not considered if the tenant can verify the need for a live-in aide.
![Page 11: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/11.jpg)
Income Certification Continued… Add the income of each household member over the age
of 18 and adjust as follows: Deduct $480 for each dependent (household member under 18
years of age) Deduct $400 for any family with a head of household over the
age of 62 years of age Deduct medical expenses in excess of 3% of annual income for
any elderly family. For households whose total assets exceed $5,000, you
must calculate the annual asset income by multiplying the value of the total assets by 10%.
Add this total to the other household income to get the adjusted gross income.
![Page 12: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/12.jpg)
What is an Asset? Assets include the following:
Checking and Savings balances CD and Money Market Accounts Mutual Funds Real Estate Trust Funds 401k/IRA Stocks and Bonds Life Insurance Policies
![Page 13: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/13.jpg)
Asset Testing To determine the value of each asset calculate
the cash value (i.e. what is the asset worth once it’s converted to cash).
If the Assets amount to over $5,000 calculate the value into the household income total.
![Page 14: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/14.jpg)
Annual Recertification & Reporting to the City’s Housing Division
The deed restrictions require annual reporting to the City which involves recertification.
Every year you must certify what the household’s income is to determine whether they have exceeded the maximum allowable income by 140%.
If a household exceeds the maximum allowable income by 140% you may either move them into a different unit or serve them with a one year notice to vacate.
![Page 15: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/15.jpg)
Annual Reporting to City Every year you will receive a letter from the
Housing Division asking you to use your assigned user name and password to log into our online system to submit your annual report.
![Page 16: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/16.jpg)
Annual Report Your Deed Restriction Agreement requires you
to submit an annual report to the City. In an effort to simplify and expedite the reporting
process the City has created an online reporting system which allows you to use your personal username and password and log-in to submit your report electronically.
You will receive a letter every year prompting you to use your log-in information to log-on to the City’s reporting website and submit your report.
![Page 17: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/17.jpg)
Online System Log-In Page
![Page 18: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/18.jpg)
Click on “Login”
![Page 19: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/19.jpg)
![Page 20: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/20.jpg)
![Page 21: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/21.jpg)
![Page 22: City of Santa Monica housing Division](https://reader035.vdocuments.net/reader035/viewer/2022070420/56815e49550346895dccbf2f/html5/thumbnails/22.jpg)
Audits Every year the City will randomly select a certain
percentage of its portfolio to audit.
If you are selected for an audit, you will notified in writing in advance about the date and time of the audit.
City staff will conduct an audit of your tenant files and/or inspection of your unit(s)