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preceding year, or are under public control and a lease or a purchase contract is signed for <br />a qualified Iow- to moderate-income household. No vacant property is eligible for CDBG <br />fimding if it xvas introduced into the neighborhood after the grant offer to the City or it <br />was not intended to be a year-round residential unit. <br /> <br />Debris removal is a pre-construction requirement to participate in the housing <br />rehabilitation program. Property owners will be required to clear the exterior and interior <br />rehabilitation site of all identified trash, debris, inoperable vehicles and derelict structures <br />prior to receiving rehabilitation assistance. If the owner is elderly or handicapped and <br />cannot physically clear the property or arrange for the removal of the debris, the work <br />will be added to the rehabilitation work write-up and included as part of the contractors' <br />bid package and the subsequent lien on the property. <br /> <br />C. Eligibility of Owner-Occupied Dwellings <br /> <br />The housing rehabilitation program is available to single-family owner-occupied <br />structures. The applicant must have legally owned the property for the three months prior <br />to submitting an application for assistance and maintain it as his/her principal residence. <br />A principal residence is defined for purposes of this program as the housing unit in which <br />the individual lives for a minimum of nine (9) months out of the year. Owner-occupants <br />are required to maintain sufficient insurance coverage to replace or repair the rehabilitated <br />unit should there be a fire or other disasterl <br /> <br />D. Eligibility of Investor-Owned Dwellings <br /> <br />The rehabilitation program is also available to single-family and multi-family rental <br />structures within the target area. For multi-family structures, at least 51% of the units <br />must be occupied by LMI households. CDBG expenditures will be made only in <br />proportion to the number of units set aside for LMI persons. The applicant must have <br />legally owned the property for the six months prior to submitting an application for <br />assistance. Investor-owners of substandard properties will qualify for assistance <br />regardless of the investor-owner's income. However, the rehabilitated properties must be <br />rented to low- and moderate-income occupants, as defined by current HUD Section 8 <br />Income Guidelines, within three (3) months of rehabilitation completion. Displacement <br />by the investor-owner of any existing tenants not meeting the income standards, in order <br />to make the property eligible for participation in the rehab program, will not be allowed. <br /> <br />A participating investor-owner is prohibited from charging a tenant for rent and utilities <br />in excess of 30 percent of the tenant's adjusted annual income. Investor-owners will also <br />be prohibited from unduly raising their rents for a five- to ten-year period after <br />rehabilitation. An annual percentage increase will be allowed for documented increased <br />cost related to taxes and insurance as long as the rent and utilities charges do not exceed <br />more than 35 percent of the LMI tenant's adjusted gross annual income. The investor- <br />owner will be required to sign an agreement with the City specifying he will abide by <br /> <br /> <br />