INCOME TARGETING
POLICY & PROCEDURES
Policy:The property will comply with Income-Targeting requirements as expressed in the HUD Handbook 4350.3, Chapter 4, Paragraph 4.5.
Requirement:“… The Owner must lease not less than 40% of the dwelling units assisted under the contract that become available for occupancy in any project fiscal year to extremely low-income families.”
Procedure:In order to determine whether the current waiting list process enables the owner to achieve the income-targeting requirement, the manager must review the income levels of current waiting list applicants on an annual basis. Therefore, this monitoring process begins anew each January and is to be maintained through the end of each December.
A.If it is determined that morethan 50% of admissions are Extremely-Low Income,then, subject to ongoing monitoring, no additional steps are necessary to satisfy the 40% target.
B.If it is determined that less than 50% of admissions are Extremely-Low Income, then the following process must be implemented to ensure compliance with the 40% target.
1. Method 1: Alternate between the first Extremely -Low Income applicant and the applicant at the top of the waiting list.
a. This method may mean “skipping over” some applicants with higher incomes.
b. If the on-going monitoring process indicates that Method 1 fails to sustain compliance with the 40% target, then Method 2 must be implemented.
2.Method 2: Admit only Extremely-Low Income families until the 40% target is met.
a. Once target is reached, Method 1 can be used again going forward.
b. It is essential to continually utilize the monitoring process to confirm compliance with the 40% target requirement. Reversion to Method 2 is always an option if leasing becomes non-compliant.
C.Monitoring Process
Using the Admissions Tracking Log, enter all required information and monitor the percentage of Extremely-Low Income move-ins on an on-going basis. The Admission Tracking Log is to be kept with the Waiting List for the property.
D.File Retention
The Income Targeting Logs for each year must be retained in an
accessible file for review at any time.
INCOME TARGETING
ADMISSIONS TRACKING LOG
INSTRUCTIONS
The following steps are to be taken to complete the Admissions Tracking Log.
The required information should be completed at the time of move-in.
1.Admission Type
-If the normal Waiting List order is used, enter WL
-If Method 1 is used, enter either ELI for an Extremely-Low Income move-in or TOL if the next applicant at the top of the list is used.
-If Method 2 is used, enter ELI
2.M/I Date
Enter the date of the move-in using the mm/dd/yy format.
3.Unit #
Enter the applicable unit number.
4.Resident Name
Enter the family name of the 1st Head-of-Household appearing on the Lease or 50059.
5/6.ELI or VLI/LI
Mark with an “X”, the appropriate box, confirming the income level of the move-in.
7.ELI %
On an on-going basis, determine the % of ELI move-ins by dividing the total number of ELI families by the total number of families’ admitted.
F:\Affordable\Lease Development\Income Targeting Policy.doc Revised: January 20, 2005
INCOME TARGETING POLICY
ADMISSIONS TRACKING LOG
(1) / (2) / (3) / (4) / (5) / (6) / (7)Admission Type / M/I Date / Unit # / Resident Name / ELI / VLI/
LI / ELI %
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F:\Affordable\Lease Development\Income Targeting Policy.doc Revised: January 20, 2005