§ 34-45-11 - Rights of tenants.
SECTION 34-45-11
§ 34-45-11 Rights of tenants. – (a) As used in this section the following words shall have the followingmeanings:
(1) "Assistance required action" means any prepayment of amortgage obligation secured by a development or an owner's failure to renew a§ 8 assistance contract to the full extent of owner's renewal rightsthereunder.
(2) "Assisted household" means an individual or individualswho occupy a rental unit in a development and whose gross annual income doesnot exceed upper income limits imposed by any federal, state, or localgovernment program providing financial assistance to a development.
(3) "Assisted units" means all the dwelling units in afederally insured or assisted development subject to regulatory requirementswith respect to:
(i) The rents chargeable by the owner; or
(ii) The maximum annual income of the tenant occupying theunit, which may depend upon the income of the tenant where a given percentageof the total number of units are required to be occupied by income qualifyingtenants.
(4) "Designated household" means any of the followinghouseholds:
(i) An assisted household which includes a senior citizen ora person with a disability, provided that the senior citizen or the person witha disability has been a member of the household for a period of at least twelve(12) months preceding the giving of the notice of intent required by thissection; or
(ii) An assisted household which includes any child under theage of ten (10) years.
(5) "Person with a disability" means a person within thedefinition of handicapped person in 42 U.S.C. § 1437a(b)(3).
(6) "Owner" or "property owner" means the person orcombination of persons who hold legal title to a development.
(7) "Relocation expenses" means costs incurred to:
(i) Hire contractors, labor, vehicles, or equipment totransport personal property;
(ii) Pack and unpack personal property;
(iii) Disconnect and reconnect utilities such as water,telephone, gas, electricity, and related services; and
(iv) Disconnect and install personal property.
(8) "Senior citizen" means a person who is at least sixty-two(62) years old on the date that the notice of intent is given.
(9) "Tenant protection assistance" means the payments to, andextension of leases for, the occupant or former occupant of any assisted unitin connection with an assistance required action as required under this section.
(b) This section does not apply if, prior to any assistancerequired action, the owner or purchaser records a covenant running with theland on which the development is located, in a form satisfactory to thecorporation, which continues for the development the existing low and moderateincome rental restrictions of the federal housing program:
(1) For the duration of the term remaining as of the date ofprepayment of any mortgage secured by a development; and
(2) For the duration of the remaining term as of the date oftermination, including all stated and unexercised renewal terms of any rentalassistance agreement described in § 34-45-5.
(c) Not less than ninety (90) days before the effective dateof any assistance required action, the owner of a development shall give awritten notice of intent in accordance with the provisions of this section.
(2) The notice of intent to be sent to each assistedhousehold shall contain a brief summary of the assistance required action, andshall include:
(i) A summary statement of the assisted household's rightsand obligations under this section;
(ii) Notice that the corporation may have additionalinformation regarding the anticipated assistance required action; and
(iii) The name, address, and phone number of the owner'sagent to whom the assisted household may apply for tenant protection assistanceunder this section.
(d) The owner shall provide the tenant protection assistanceby:
(1) Paying to each assisted household, an amount equal to thesum of:
(i) The lesser of five hundred dollars ($500) or an amountequal to any security deposit tenant is required to make and first month's rentand any part of the last month's rent tenant is required to pay in advance forthe tenant's new residence no later than the date on which the assistedhousehold vacates the unit; and
(ii) Reimbursement to the assisted household for relocationexpenses up to four hundred fifty dollars ($450) which are actually andreasonably incurred; and
(2) Offering to each assisted household which is current inits rent payment and has not violated any other material term of its lease, alease extension for a period of at least one year from the date of theassistance required action.
(e) The portion of rent for the extended lease undersubdivision (d)(2) that the tenant is obligated to pay from tenant's own incomemay not exceed thirty percent (30%) of the tenant's income, and may only beincreased on the anniversary of the commencement date of the assistedhouseholder's then current lease.
(2) Any such increase may not exceed the lesser of:
(i) the amount of increase permitted by applicable federal,state, or local law; and
(ii) an amount determined by multiplying the amount requiredto be contributed by the assisted household for rent for the preceding year bythe percentage increase for the applicable U.S. consumer price index, asselected by the corporation, for the most recent twelve (12) month period.
(3) Except as permitted or required by the corporation, allother terms, conditions, and procedures governing the extended lease shall bethe same as the lease in effect on the day preceding the giving of the noticeof intent.
(f) An owner may not take an assistance required actionaffecting any unit in an assisted project occupied by a designated householdwithout offering to the assisted household which is the tenant of the unit alease extension for a period of at least two (2) years from the date of theassistance required action, if the designated household:
(1) Is current in its rent payment and has not violated anyother material term of its lease;
(2) Has provided the owner, within thirty (30) days after thegiving of the notice of intent, with a written notice:
(i) Stating that the designated household is applying for anextended lease under this section; and
(ii) Setting forth facts, as applicable, showing that:
(A) A member of the household is either a person with adisability or a senior citizen who has been a member of the household for atleast twelve (12) months preceding the giving of the notice of intent; or
(B) A member of the household is a child under the age of ten(10) years; and
(3) Has executed an extended lease and returned it to theowner within thirty (30) days after the giving of the notice of intent.
(g) The owner shall deliver to each assisted householdentitled to receive the notice of intent, simultaneously with the notice ofintent:
(1) An application on which may be included all of theinformation required by subdivision (f)(2);
(2) A lease containing the terms required by this section andclearly indicating that the lease will be effective only if the assistedhousehold executes and returns the lease not later than thirty (30) days afterthe giving of the notice of intent; and
(3) A notice setting forth the rights and obligations of theassisted household under this section.
(h) Within forty-five (45) days after the giving of thenotice of intent, the owner shall notify each assisted household whether itmeets the applicable criteria for an extended lease under subdivision (d)(2)and such notice shall include the approximate ending date of the extended leaseand each designated household which submits to the owner the documentationrequired by subdivisions (f)(2) and (3) shall be entitled to notification bythe owner as to the following:
(1) Whether the household meets the applicable criteria ofsubsection (f), and, if not, an explanation of which criteria have not beenmet; and
(2) Whether the extended lease has been effective undersubsection (f).
(i) The extended lease of a designated household shallprovide for a term commencing on the date of the assistance required action andterminating not less than two (2) years from that date.
(2) The initial rate of rent for the extended lease may notexceed an amount which requires the tenant to contribute more than thirtypercent (30%) of the tenant's income.
(3) Annually, on the anniversary of the commencement date ofthe extended lease of a designated household, the rental fee for the unit maybe increased.
(ii) The increase may not exceed an amount determined bymultiplying the amount required to be contributed by the household for annualreport for the preceding year by the percentage increase for the applicableU.S. consumer price index, as selected by the secretary, for the most recenttwelve (12) month period.
(4) Except as this section otherwise permits or requires, theextended lease of a designated household shall contain the same terms andconditions as the lease in effect on the day preceding the giving of the noticeof intent.
(j) The extended tenancy provided for in this section shallcease upon the occurrence of any of the following:
(1) Ninety (90) days after the death of the last survivingmember of the assisted household who was residing in the unit at the date ofthe notice of intent, or ninety (90) days after the last member of the assistedhousehold at the date of the notice of intent has moved from the unit;
(2) Eviction for failure to pay rent due in a timely fashionor violation of a material term of the lease; or
(3) Voluntary termination of the lease by the designatedhousehold.
(k) No later than the date on which the designated householdvacates the unit, the owner shall pay relocation expenses in accordance withthis section.
( l ) In connection with any assistance required action:
(1) An owner may not terminate or alter the terms andconditions of any leases entered into before the effective date of theassistance required action, or otherwise take any action to interfere with anyexisting rights of tenants to occupy their units of the assisted project underexisting leases or under any applicable federal, state, or local law;
(2) All tenants shall cooperate with the owner in providinginformation necessary to certify eligibility for housing subsidy payments,including execution of all necessary documents.
(m) Notwithstanding any provision of subsections (e) or (f)to the contrary, in the event that an owner is unable to obtain from the U.S.department of housing and urban development an extension of existing rentalsubsidies to cover the lease extension, the owner shall only be required toprovide for each assisted household, whether or not occupied by a designatedhousehold, a lease extension of a period of one year from the date of theassistance required action; provided, however, that an owner may withdraw fundsfrom existing reserve and residual accounts of the development to pay anydeficit in the debt service or operating expenses of the development resultingfrom the tenant's obligation to pay as rent only, a sum not more than thirtypercent (30%) of the tenant's income as provided in subsection (e), but only tothe extent that the withdrawal is approved by the corporation, approval to begiven if adequate funds remain in reserve and residual accounts, for themaintenance and repair of the development in accordance with the standards ofthe corporation.
(n) The owner shall inform those assisted households whichthe owner has deemed not to meet the applicable criteria for an extended leaseof the reasons the households failed to meet the criteria, and of their rightto appeal the decision to the corporation. Any assisted household may appealthe decision of an owner to deny the household an extended lease undersubdivision (d)(2) or subsection (f) to the corporation by requesting inwriting an informal hearing before the corporation within ten (10) days of theowner's decision. The corporation shall hear and resolve the appeal within ten(10) days of receiving the hearing request, by either affirming the owner'sdecision or ordering the owner to execute the appropriate extended lease withthe assisted household.