Over-Income Tenants

Section 380.610  Over-Income Tenants a)         Developers must verify the Annual Income of each Tenant before the renewal of the Tenant's lease.  If the Annual Income of a Tenant exceeds 35% of the Median Income because of an increase in the Tenant's Annual Income, Rental Assistance shall be terminated no later than 12 months after the date of that increase.  If the increase occurs during the term of an existing lease, the Tenant shall be required to report the increase to the Developer and the existing lease shall be extended for the period of time necessary to allow the Tenant the full 12 months of Rental Assistance.  The Transitional Contribution during this period shall be the Tenant's Tenant Contribution before that increase, plus one-half of the difference between the Tenant Contribution and the current rent for the Unit. b)         If a Tenant's Annual Income initially is within the Severely Low-Income Household limit, and increases above that limit but is still within the Extremely Low-Income Household limit, the Developer shall take all reasonable efforts to ensure that an additional Unit is reserved for a Severely Low-Income Household, if necessary to comply with Section 380.301.