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Home My WebLink About1717 ResolutionVED AS 0 FO Gre3 Rubs ello Pasci ity Attorney RESOLUTION No. 1717 A RESOLUTION establishing revised rules for the LID Assistance Program. WHEREAS, the LID Assistance Program was established to assist lower-income households within the City affected by an LID assessment; and WHEREAS, federal requirements for the use of block grant funds have been amended since the City last established rules for its LID Assistance Programs; and WHEREAS, the rules set forth in attachment "A” hereto, conform to the changes in the federal block grant regulations and establish a proper procedure for program administration, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DOES HEREBY RESOLVE AS FOLLOWS: The LID Assistance Program rules set forth in Attachment "A" hereto are hereby adopted by the Pasco City Council and shall apply to all LID Assistance given hereafter by the City under its LID Assistance Program funded with federal block grant funds. These rules supercede all prior rules approved by the City regulating its LID Assistance Program. PASSED this 2 day of April, 1986. ON, Mayor „. CITY OF PASCO STATEMENT OF POLICY FOR 1986 LID ASSISTANCE PROGRAM FUNDED WITH COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS WHO IS ELIGIBLE"' Any lower-income household which has occupied and owned (or purchased) a single-family dwelling as of the date of final assessment roll for its LID area, and which has an outstanding LID assessment shall be deemed an eligible household if the household meets the income limits established below. Any such household which is more than two years delinquent in LID payments and therefore, on the city's foreclosure list shall be given priority eligibility. LID assistance shall first be offered to priority eligible households. Any unspent funds, after processing priority eligible households, will be offered to eligible households, in accordance with the ranking/criteria set forth below. The income levels set by H.U.D.* to qualify for a subsidy vary with family size and are as follows for Pasco: PERSONS IN FAMILY LI 1 2 3 4 5 6 7 8 — — — 17,850 20,400 22,950 25,500 27,100 28,700 30,300 31,900 (*Section 8 Rent Subsidy Income Limits, 1983-1986) Applicants must certify that their income is below the maximum established above for the size of household. This certification will be legally binding; if it is discovered a person has not told the truth about his/her income, the amount of subsidization must be reimbursed to the City and the LID assessment will be so adjusted. Section 8, Rent Subsidy Income Limits are subject to revision and, if changed the above limits will change with those revisions, and be effective as of the date stipulated by H.U.D. RANKING/CRITERIA Ranking Criteria 1 Very Low Income (VLI) Elderly* Household 2 VLI Non-Elderly Family** w/SHH*** 3 VLI Non-Elderly Household 4 Lower Income (LI) Elderly* Household 5 LI Non-Elderly* Family** w/SHH*** 6 LI Non-Elderly Household *"Elderly" means at least one and 50% of the owners are 60 or more years of age. **"Family" means any household with one or more dependent children under the age of 18 years. ***"SHH" (Single Head of Household) means a parent/guardian. family with only one INCOME ELIGIBILITY A homeowner's total income must not exceed federal income limits for Section 8 Rent subsidy for the Pasco area. Household income is defined as the total income received by all household members but excludes income from dependent minor children and does not include deductions for unusual expenses. These unusual expenses include: 1) Medical expenses which exceed 3% of the annual household income and which were not covered by insurance. 2) Annual expenditures for child care to enable employment by a member of the household. 3) Cost of care of disabled or handicapped family member(s), to the extent not covered by insurance. The following sources of income and any other income which must be reported as taxable income under the Internal Revenue Code must be considered in determining gross family income: 1) Wages and salaries including all compensation for regular overtime; all other earnings and compensation for personal services; such as commissions, fees, tips, etc. Gross income will be the income used; this includes the full amount of earnings before payroll deductions are made for any purpose. 2) Net profits from the operation of a business or profession. 3) The full amount received from Social Security, pensions, annuities, and retirement income, and other similar types of periodic receipts. 4) Payments in lieu of earnings, such as unemployment compensation, other Social Security benefits, dismissal wages, benefits in lieu of earnings other than lump-sum payments under health and accident insurance, and workman's compensation other than lump-sum payment. 5) Periodic and determinable allowances, alimony, contributions, child support and gifts; 6) Interest, dividends and net earnings of any kind from real or personal property, including, but not limited to capital gains; 7) Substance allowances for receipts in connection with education or training, and; 8) All payments made to or on behalf of any person under the provision of the equal opportunity, or any other anti-poverty program. The following items shall not be considered as income: 1) Earnings or minors under 18 years of age and full-time students other than the head of the household or spouse. 2) Family assets, or lump-sum additions, family assets such as inheritance, insurance payments, including lump-sum workman's compensation settlements and settlements for personal or property damages; 3) Relocation payments made pursuant to Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (PL-9-646, 84 Stat. 1984); 4) Payments received by residents who are participants in the volunteer program provided for the Older Americans Act PL-93-113); 5) The amount of educational scholarship or Veterans educational benefits directly to student or to educational institution to the extent that these benefits are used in meeting the cost of tuition and books; and 6) Casual and irregular gifts. NOTE: The applicant's income must be verified. In most circumstances, review of the average annual gross income as reported in federal income tax returns for the previous three years, including any other source of a regular income not reported on federal income returns will be required to verify income. Any household which has ceased wage earnings and is permanently on fixed income shall be deemed eligible, regardless of prior income years so long as the fixed income amount does not exceed the applicable household income limit. LIMITATION ON ASSISTANCE The purpose of this program is to assist those lower-income households directly affected by an LID assessment (owner-occupied single-family dwellings). Because of delinquency in payments, some households face imminent foreclosure and shall first be offered assistance. Assistance will apply only to the property used as the owner's primary place of residence; assistance cannot be applied to vacant lot(s), even if adjacent their residence, if the lot(s) meet minimum zoning requirements for separate development. INTEREST/PENALTIES Federal regulations prohibit the use of these funds to defray interest or penalty costs. Therefore, assistance under this program will apply only to the principal portion of an assessment. Any interest or penalty costs must be paid by the owner. The city will pay 100% of the outstanding principal balance if the owner pays all interest and penalty which has accrued to the date of payment.