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Iowa City Riverfront Crossings
Affordable Housing Requirement
Administrative Rules
Adopted August 22, 2017
The Iowa City City Council adopted Ordinance 16-4668 on July 5, 2016 to establish an
Affordable Housing Requirement in certain areas of the City. Those requirements are codified in
Iowa City Code of Ordinances 14-2G8. Pursuant to 14-2G-8(I), the City Manager does hereby
establish rules deemed necessary and not inconsistent with 14-2G-8 to assure that the
purposes of the Affordable Housing Requirements are accomplished. These Administrative
Rules shall be placed on file with the City Clerk and made available on the City of Io wa City
website.
I. General Requirements
Rezoning
Upon rezoning property to a Riverfront Crossings zoning designation, the owner will be required
to enter into an agreement with the City to indicate which method or methods it will use to
achieve the affordable housing requirement. Typically this agreement will take the form of a
conditional zoning agreement, which must be executed prior to the close of the public hearing
on the rezoning.
Subdivision
Upon subdividing property in the Riverfront Crossings District, if there is no zoning agreement
indicating the method or methods the owner will use to achieve the affordable housing
requirements, such indication shall be made in the Developer’s Agreement executed
contemporaneously with the final plat approval.
Building Permit
Contemporaneously with an application for a building permit, an owner or developer shall
complete the “Application Regarding Riverfront Crossings Affordable Housing Requirement”,
attached hereto as Exhibit A. This application shall be filed with Neighborhood Development
Services (NDS) with the application for the building permit.
NDS will process this application along with the building permit application, so that the building
permit and an affordable housing agreement can be entered into contemporaneously. No
building permit may be issued unless and until such an agreement has been executed. The
agreement shall take a form substantially similar to that attached hereto as Exhibit B. The City
Manager has the authority to execute this agreement, which shall be recorded in the Johnson
County Recorder’s Office pursuant to 14-2G-8(c).
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II. On-Site Owner-Occupied Affordable Housing
Determining Income
The seller shall be responsible for determining the income of the prospective buyer’s household
to determine eligibility for the affordable owner-occupied units before closing on the sale. If the
sale does not close within six months after the income-eligibility determination has been made,
the seller must re-examine the homebuyer’s income. The City’s consent to the sale is required
and will be granted upon the City’s confirmation that the buyer’s household is income eligible
and the purchase price complies with the ordinance and these rules. At least 30 days prior to
closing, after the seller determines that the buyer is income-eligible, the seller must submit the
requisite income documentation to the Director of Neighborhood Development Services. The
Director or designee will, within 5 business days of the submittal, review the documentation,
request any necessary additional documentation, and confirm or deny the income-qualification
determination This confirmation or denial will be in writing sent to the seller either via email or
through the United States Postal Service at the seller’s discretion.
The seller and the City shall use the annual income definition set forth in the HUD Part 5,
Section 8 regulations found at 24 CFR 5.609, as amended, to determine if the household is
income-eligible. The Part 5 definition of income is the gross amount of income of all adult
household members that is anticipated to be received during the coming 12-month period. In
performing its review of the income qualification, the seller shall submit a completed “Calculating
Part 5 Annual Income” (Exhibit C) detailing the proposed buyer’s income and shall provide the
supporting documentation attached thereto. Income-eligibility must be documented with source
documents such as wage statements (or three months of pay stubs), bank statements, letters
from public assistance agencies that identify assistance amounts (Social Security, welfare
assistance, etc.), and documentation of income received in periodic amounts such as from
retirement funds or pensions.
Exhibit D provides a comprehensive list of income that is included and excluded from the
calculations of annual income under Part 5. There is no asset limitation for the household;
however actual income from assets is recognized under the Part 5 definition, even if the
household elects not to receive the income. For example, if a household elects to reinvest the
interest or dividends from an asset, it is still counted as income.
Median income is based on HUD’s HOME income limits for the Iowa City, IA HUD Metro area,
adjusted annually per household size (current limits identified in Exhibit F). Median income is
based on household size. If a household consists of a parent and child, it is a two person
household. If two unrelated adults share a household, incomes from both must be included as
they would be considered a two person household.
If the homebuyer is a full-time student, the student is eligible if neither parent claims the student
as a dependent on their state or federal taxes. Documentation from both parents must be
submitted to verify, unless extenuating circumstances make such production impossible.
Dwelling Unit Size and Quality
The affordable dwelling units must be comparable to the market rate units of the same type.
The affordable dwelling units shall be at least 80% of the floor area of the market rate units.
The affordable housing dwelling units should have the same number of bedrooms and types of
amenities as the market rate units, unless otherwise approved by the City Manager.
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Location
The affordable housing units shall be distributed throughout the development to avoid
concentration of units, unless a different distribution will result in the provision of additional
affordable housing units. This may be approved on a case by case basis by the City Manager.
Should the City Manager agree to allow the affordable units to be located together, a finding that
such a concentration will result in the provision of additional affordable housing units should be
set forth in the Affordable Housing Agreement. The additional affordable housing units created
to allow this concentration will be subject to the same use restrictions as any other required
affordable housing unit under 14-2G-8.
Sales Restrictions
For newly-constructed owner-occupied affordable housing units, the 2017 maximum sale price
is $214,000, regardless of the number of bedrooms, which is based upon the current HUD
Homeownership Sales Price Limit for Johnson County. The maximum sale price for subsequent
sales of an owner-occupied affordable housing unit during the term of affordability (established
in 14-2G-8) shall not exceed the original purchase amount paid by the original homeowner or
the HUD Homeownership Sales Price Limits for Johnson County, IA, adjusted annually,
whichever is greater, except for those allowable expenses set forth in 14-2G-8D(2)(d).
In all cases where an owner-occupied affordable housing unit is to be sold, the City must
approve the purchase price and the determination that the buyer is income-eligible. The seller
must submit any and all documentation supporting the sales price to the Director of NDS in a
timely manner at least 30 days prior to closing in order for the City to analyze the information
and properly consider the request prior to closing. In determining whether to approve a sale
price, the City will consider the following::
1) “Customary closing costs and costs of sale to be those identified in the Iowa closing
disclosure statement, such as title services, appraisal, recording and loan origination
fees.
2) Permanent Capital Improvements. In cases where the homeowner has installed
capital improvements, the value of these improvements, as documented by receipts
and the building permit documents, may increase the sales price by the amount of the
eligible improvement. A capital improvement increases your home’s value, while a
non-eligible repair returns something to its original condition. Replacing a countertop or
bathroom feature would not be considered an eligible capital improvement. An
example of a capital improvement would be the addition of a bathroom.
At least 30 days prior to closing, the seller must submit the requisite documentation to support
the sale price to the Director of NDS. The Director or designee will, within 5 business days of
the submittal, review the documentation, request any necessary additional documentation, and
confirm or deny the sale price. This confirmation or denial will be in writing sent to the seller
either via email or through the United States Postal Service at the seller’s discretion.
Owners are cautioned about significant capital improvements as the home must be sold to an
income eligible homebuyer under 110% of median income. If the price exceeds the maximum
HUD Homeownership Sales Price Limit, the potential number of income eligible buyers may be
reduced.
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III. On-site Affordable Rental Housing
The initial income qualification process for on-site affordable rental housing shall be the same
process as set forth above for on-site owner-occupied affordable housing, except that an owner
must review the income qualifications for tenants occupying designated affordable housing
dwelling units annually to determine continued compliance. The reexamination shall be
completed annually and before execution of a lease renewal. For lease renewals, the City will
accept a copy of the most recent federal tax form (Form 1040) submitted by all adult members
of the household, as income verification.
If the tenant is no longer income eligible, notwithstanding the location requirement set forth in
the Code and as approved by the Director of NDS, the next available unit with the same
bedroom size or larger in the project property must be rented to an income eligible tenant.
The property owner shall submit an Annual Tenant Housing Report (Exhibit E) for the
designated affordable housing rental units. The report shall be submitted each January 30 for
the preceding calendar year throughout the compliance period. At a minimum, the report shall
include the name of the household, unit number/address, lease dates (most recent lease or
renewal date), rent amount, number of bedrooms, size and income of the household.
Neighborhood Services staff shall verify compliance within 30 days and may request income
documentation for all or a portion of the qualifying tenants.
The property owner shall retain tenant income and rent for the most recent three years, until
three years after the compliance period.
Rental Rate
The monthly rate for the affordable housing units shall not exceed the HOME Fair Market Rent,
per applicable bedroom size, as published by HUD for the Iowa City, IA HUD metro area, as
adjusted annually. These rents may be found online at www.icgov.org/actionplan under HOME
Table of Income Guidelines and Fair Market Rent (2017 rents identified in Exhibit F).
IV. Off-Site Affordable Dwelling Units or Dedication of Land
If the owner desires to satisfy this obligation through off-site affordable housing or through the
dedication of land, the owner must establish that it would be infeasible to provide the affordable
units on-site or to provide a fee in lieu of the on-site units, as reasonably determined by the City.
If the owner is able to establish this, the City’s determination must be reflected in the findings of
the conditional zoning agreement.
If the property is not subject to a conditional zoning agreement already establishing the method
of achieving affordability and the owner desires to satisfy this obligation through off -site
affordable housing or through the dedication of land, the owner must establish that it would be
infeasible to provide the affordable units on-site or to provide a fee in lieu of the on-site units, as
reasonably determined by the City. If the owner is able to establish this, the City’s determination
must be reflected in the findings of the affordable housing agreement.
In reasonably determining whether an owner has established that providing the units on-site or
paying the fee in lieu thereof is not feasible, the City will consider such factors as whether the
cost of constructing the unit exceeds the current maximum sale price for affordable units, as set
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forth in the Code of Ordinances, and whether the common maintenance expenses each owner
would be required to pay would be cost prohibitive for income-qualified households.
The off-site affordable housing units may be satisfied by designating existing or newly
constructed dwelling units in the Riverfront Crossings District, as defined in Iowa City Code 14-
2G-2, as may be amended from time to time, as affordable dwelling units, subject to the use
limitations set forth in 14-2G-8 and herein.
V. Fee-in-Lieu Contribution
As of July 17, 2018, the City Council adopted a resolution setting the fee at $94,652 per unit.
The fee-in-lieu contribution shall be made prior to issuance of any building permit for the
development for which affordable housing is required pursuant to City Code 14-2G-8.
Exhibit
A. Application Regarding Riverfront Crossing Affordable Housing Requirement
B. Affordable Housing Agreement
C. Calculating Part 5 Annual Income
D. Income Inclusions and Exclusions
E. Annual Tenant Housing Report Form
F. Table of Income and Rent Limits
EXHIBIT A
Application Regarding
Riverfront Crossings Affordable Housing Requirement
If you desire a building permit to construct a building containing ten or more residential units on
property zoned a Riverfront Crossings Zoning designation, you are required to provide
affordable housing in accordance with Iowa City Code of Ordinances Section 14-2G. Before you
can get a building permit for your project, you must enter into an Affordable Housing Agreement
with the City detailing how you will satisfy the affordable housing requirements adopted by the
City Council in 2016 (Ord. 16-4668). Please carefully review 14-2G-8 and the Administrative
Rules adopted to govern the details of how this program is to be administered, as they contain
critical information for your development project.
In order to aid in the drafting of the Affordable Housing Agreement, please complete this
application and return to the Director of NDS with your building permit application:
1. Owner name, address and telephone number: ______________________________
__________________________________________________________________________
2. Legal description of the property to be developed, include street address: (can be attached)
3. Total number of residential dwelling units in the project and the type of units you intend to
provide:
Efficiencies One Bedroom Two Bedroom Three Bedroom
Number of Units
4. Has a horizontal property regime been established for the property? ________ If yes, in which
book and page is the Declaration filed in the Johnson County, Iowa Recorder’s Office?
________________.
5. The Affordable Housing Requirement will be met through: Check all that apply.
On-site owner-occupied affordable housing
On- site affordable rental housing
a fee in-lieu contribution to an affordable housing fund
off-site affordable housing
contribution of land
Please note: If you desire to satisfy your affordable housing obligation through off-site affordable
housing or contribution of land, the owner must establish that it cannot feasibly provide the
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affordable units on-site or pay the fee in lieu thereof. See 14-2G-8 and the Administrative Rules
for details.
Project Description
A. On-site owner-occupied affordable housing:
1. Development Requirements:
Of the total number of units, 10% shall be affordable owner-occupied affordable housing units.
Please complete for the total on-site owner-occupied affordable housing units. Because these
particular units will be subject to specific sales restrictions, the specific unit number/address is
required. Please note that the City desires to have the designated affordable housing units
spread throughout the development.
Efficiency One Bedroom Two Bedroom Three Bedroom
Number of Units
Unit
Number/Address
2. Programming Requirements:
See Iowa City Code Section 14-2G-8 and the Administrative Rules for Income Restriction
and Sale Restriction requirements. It shall be your responsibility, as the current owner of
these owner-occupied affordable housing units, to determine whether a potential buyer is
income-eligible to purchase these units, subject to City review and approval prior to
closing. HOME income limits may be found online at www.icgov.org/actionplan under the
HOME Table of Income Guidelines and Fair Market Rent.
The current maximum sales price for a newly-constructed owner-occupied affordable
housing unit is $214,000, regardless of the number of bedrooms. Please list your
proposed sale prices:
Efficiency One Bedroom Two Bedroom Three Bedroom
$ $ $ $
Name and contact information for person administering the programming requirements
on your behalf: ________________________________________________________
____________________________________________________________________
B. On-site affordable rental housing:
1. Development Requirements:
Of the total number of units in the project, 10% shall be affordable rental units. The total
Affordable Rental Housing Units will be:
3
Efficiency One Bedroom Two Bedroom Three
Bedroom
Number of Units
2. Programming Requirements
a. Rental Rate:
The monthly rental rate for the affordable rental units shall be no more than the HOME
Fair Market rent, for the applicable bedroom size, as published by HUD for the Iowa City,
IA HUD Metro FMR Area, as adjusted annually.
Efficiency
One
Bedroom
Two
Bedroom
Three
Bedroom
HOME Fair Market Rent
(effective 6/15/17)
$649 $771 $1,012 $1,473
Your proposed rental rates:
b. Occupancy/Income Restriction: You must rent any designated affordable rental units to
households earning equal to or less than $36,480 for a 1-person household; $41,700 for
a 2-person household; $46,920 for a three-person household; $52,080 for a 4-person
household. See Iowa City Code Section 14-2G-8 and the Administrative Rules for further
details on how this is determined.
c. Income Verification: Name and contact information for the person who will be
performing your income verification requirements, including the filing of the Annual
Tenant Housing Report on or before January 30 of each year: ____________________
______________________________________________________________________
C. Payment of a fee in lieu of providing affordable Housing:
Pursuant to Resolution 18-213, adopted by the City Council on July 17, 2018, if you desire to
satisfy your affordable housing requirement through the payment of a fee, the amount of that fee
is calculated by determining the number of affordable units required and multiplying by $94,652.
Total fee: $__________________.
D. Off-site affordable housing:
1. Description of why it is infeasible to provide the required affordable housing units on-site or pay
the fee in lieu thereof: ______________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
__________________________________________________________________________
2. Location of the proposed off-site affordable housing: __________________________________
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__________________________________________________________________________
3. Legal Description of proposed off-site affordable housing units:
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
__________________________________________________________________________
4. Nature of the units (owner-occupied or rental):
E. Contribution of land:
1. Description of why it is infeasible to provide the required affordable housing units on-site or pay
the fee in lieu thereof: ______________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
__________________________________________________________________________
2. Location of the proposed land contribution:______________________________________
__________________________________________________________________________
3. Legal Description of proposed land contribution:
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
__________________________________________________________________________
ppdadm/agt/affordable housing agreement-building permit.doc 1
Exhibit B
Prepared by: ___________, Neighborhood Services, 410 E. Washington, Iowa City, IA 52240 (319) 356-5230
AFFORDABLE HOUSING AGREEMENT
FOR [INSERT ADDRESS OF PROPERTY AND NAME OF DEVELOPMENT]
THIS AGREEMENT is made between the City of Iowa City, Iowa, a municipal corporation
(hereinafter "City"), ___________ (hereinafter "Owner").
WHEREAS, Owner is the legal title holder of [INSERT LEGAL AND STREET
ADDRESS], within the Riverfront Crossings District; and
WHEREAS, pursuant to Ordinance 16-4668, approved by the City Council on July 5,
2016, the Riverfront Crossings District has an affordable housing requirement in order to further
the goals of increasing opportunities for people of all income levels to work and live near key
employment centers, to promote the construction of housing that is affordable to the
community’s workforce, to promote a balanced community that provides housing for people with
diverse income levels, and other goals as enumerated in City Code Article 14-2G; and
WHEREAS, said property is currently zoned [INSERT NAME OF RIVERFRONT
CROSSINGS ZONING DESIGNATION] (____), pursuant to Ordinance ________ and subject to
a conditional zoning agreement, recorded in Book _____, Page ________, requiring that Owner
satisfy the affordable housing requirement by the __________ method; and
WHEREAS, the Riverfront Crossings District is well-situated to support a mix of housing
due to its close proximity to downtown Iowa City and the University of Iowa campus, its existing
and planned mix of uses, convenient access to public transit and municipal parking facilities,
and it is ripe for higher density development under the Form Based Code; and
WHEREAS, City Code Section 14-2G-8, the Riverfront Crossings Affordable Housing
Requirement, requires that the property owner enter into this Affordable Housing Agreement
with the City detailing how it will satisfy the affordable housing requirements; and
WHEREAS, the Owner desires to obtain a building permit for development of said
property with ten or more dwelling units, and therefore wishes to satisfy its obligations set forth
in Iowa City Code of Ordinances Article 14-2G and the above-referenced conditional zoning
agreement, in accordance with this Agreement.
NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties
agree as follows:
1. Owner is the legal title holder of the property legally described as (insert legal
description).
2. Pursuant to Iowa City Code of Ordinances, Article 14-2G, Owner is required to provide
_______ (insert number) affordable housing dwelling units, as that term is defined in
said Article.
ppdadm/agt/affordable housing agreement-building permit.doc 2
3. Pursuant to Article 14-2G and the above-described Conditional Zoning Agreement,
Owner hereby agrees satisfy this obligation through the following programming and
development details:
a. (See 14-2G-8 for each method’s development and programming requirements)
4. The parties acknowledge that this Agreement shall be deemed to be a covenant running
with the land and with title to the land, and shall remain in full force and effect as a
covenant with title to the land, unless or until released of record by the City of Iowa City.
5. The parties further acknowledge that this agreement shall inure to the benefit of and bind
all successors, representatives, and assigns of the parties. The Owner agrees that in the
event the subject property is transferred, sold, redeveloped, or subdivided, all
redevelopment will conform with the terms of this Agreement.
6. The Owner acknowledge(s) that nothing in this Agreement shall be construed to relieve
the Owner from complying with all other applicable local, state, and federal regulations.
7. This agreement shall be recorded in the Johnson County Recorder’s Office at Owner’s
expense.
Dated this _____ day of _____________________, 20__.
CITY OF IOWA CITY
By: _________________________________
__________________, City Manager
INSERT OWNER
By: ________________________________
_________________, ____________
Approved by:
________________________________
City Attorney’s Office
CITY OF IOWA CITY ACKNOWLEDGEMENT:
STATE OF IOWA )
) ss:
JOHNSON COUNTY )
ppdadm/agt/affordable housing agreement-building permit.doc 3
This instrument was acknowledged before me on __________________, 20__ by
__________________ as City Manager of the City of Iowa City.
Notary Public in and for the State of Iowa
(Stamp or Seal)
Title (and Rank)
CORPORATE ACKNOWLEDGEMENT:
STATE OF IOWA )
) ss:
JOHNSON COUNTY )
This instrument was acknowledged before me on __________________, 20__ by
________________________________ as _________________________ of ___________.
Notary Public in and for said County and State
(Stamp or Seal)
Title (and Rank)
Revised 8/22/2017
EXHIBIT C
Calculating Part 5 Annual Income
1. Name: 2. Household Size: 3. Project Address:
Assets
Family
Member
Asset Description
Current Cash Value
of Assets
Actual Income from
Assets
4. Net Cash Value of Assets ............................... 4.
5. Total Actual Income Assets ........................................................................ 5.
6. If line 4 is greater than $5,000, multiply line by .02 (Passbook Rate) and
enter results here; otherwise, leave blank 6.
Anticipated Annual Income
Family
Members
a. Wages/
Salaries
b. Benefits/
Pensions
c. Public
Assistance
d. Other
Income
e. Asset
Income
Enter the
greater of
lines 5 or 6
from above in
e.
7. Totals a. b. c. d. e.
8. Enter total of items from 7a. through 7e. This is the Annual Income........................ 8.
X
Signature of Agency Representative Date
____________________________________________
Name of Agency Determining Income for Household
Household Income
________________________ % of Median Income
Maximum Income Limit of Household
(See Affordable Housing Agreement): Circle: 60% 80% 110% MFI
INCOME ELIGIBLE: Circle: Yes No
(Attach supporting income documentation to this form. Retain for three years)
Exhibit 5-1
HUD Occupancy Handbook 1 06/07
Chapter 5: Determining Income & Calculating Rent
4350.3 REV-1
Exhibit 5-1: Income Inclusions and Exclusions
24 CFR 5.609(b) and (c)
Examples included in parentheses have been added to the regulatory language for clarification.
INCOME INCLUSIONS
(1) The full amount, before any payroll deductions, of wages and salaries, overtime pay,
commissions, fees, tips and bonuses, and other compensation for personal services;
(2) The net income from operation of a business or profession. Expenditures for business expansion
or amortization of capital indebtedness shall not be used as deductions in determining net income.
An allowance for depreciation of assets used in a business or profession may be deducted, based
on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal
of cash or assets from the operation of a business or profession will be included in income, except
to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the
family;
(3) Interest, dividends, and other net income of any kind from real or personal property. Expenditures
for amortization of capital indebtedness shall not be used as deductions in determining net
income. An allowance for depreciation is permitted only as authorized in paragraph (2) above.
Any withdrawal of cash or assets from an investment will be included in income, except to the
extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family
has net family assets in excess of $5,000, annual income shall include the greater of the actual
income derived from all net family assets or a percentage of the value of such assets based on the
current passbook savings rate, as determined by HUD;
(4) The full amount of periodic amounts received from social security, annuities, insurance policies,
retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts,
including a lump-sum amount or prospective monthly amounts for the delayed start of a **periodic
amount (e.g., Black Lung Sick benefits, Veterans Disability, Dependent Indemnity Compensation,
payments to the widow of a serviceman killed in action). See paragraph (13) under Income
Exclusions for an exception to this paragraph;**
(5) Payments in lieu of earnings, such as unemployment, disability compensation, worker's
compensation, and severance pay, except as provided in paragraph (3) under Income Exclusions;
(6) Welfare Assistance.
(a) Welfare assistance received by the family.
(b) If the welfare assistance payment includes an amount specifically designated for shelter and
utilities that is subject to adjustment by the welfare assistance agency in accordance with the
actual cost of shelter and utilities, the amount of welfare assistance income to be included as
Exhibit 5-1
HUD Occupancy Handbook 2 06/09
Chapter 5: Determining Income & Calculating Rent
4350.3 REV-1 CHG-3
income shall consist of:
(c) The amount of the allowance or grant exclusive of the amount specifically designated for shelter
or utilities; plus
(d) The maximum amount that the welfare assistance agency could in fact allow the family for
shelter and utilities. If the family’s welfare assistance is ratably reduced from the standard of
need by applying a percentage, the amount calculated under this paragraph shall be the
amount resulting from one application of the percentage.
(7) Periodic and determinable allowances, such as alimony and child support payments, and regularr
contributions or gifts received from organizations or from persons not residing in the dwelling; and
(8) All regular pay, special pay, and allowances of a member of the Armed Forces, except as provided
in paragraph (7) under Income Exclusions.
(9) For Section 8 programs only and as provided in 24 CFR 5.612, any financial assistance, in excess
of amounts received for tuition, that an individual receives under the Higher Education Act of 1965
(20 U.S.C. 1001 et seq.), from private sources, or from an institution of higher education (as defined
under the Higher Education Act of 1965 (20 U.S.C. 1002)), shall be considered income to that
individual, except that financial assistance described in this paragraph is not considered annual
income for persons over the age of 23 with dependent children. For purposes of this paragraph
“financial assistance” does not include loan proceeds for the purpose of determining income.
*(Note: This paragraph also does not apply to a student who is living with his/her parents who are
applying for or receiving Section 8 assistance.)*
INCOME EXLCUSIONS:
(1) Income from employment of children (including foster children) under the age of 18 years;
(2) Payments received for the care of foster children or foster adults (usually persons with disabilities
unrelated to the tenant family, who are unable to live alone);
(3) Lump-sum additions to family assets, such as inheritances, insurance payments (including
payments under health and accident insurance and worker’s compensation), capital gains, and
settlement for personal or property losses, except as provided in paragraph (5) under Income
Inclusions;
(4) Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical
expenses for any family member;
(5) Income of a live-in aide, as defined in 24 CFR 5.403;
(6) The full amount of student financial assistance paid directly to the student or to the educational
institution (see Income Inclusions (9), above, for students receiving Section 8 assistance);
(7) The special pay to a family member serving in the Armed Forces who is exposed to hostile fire
(e.g., in the past, special pay included Operation Desert Storm);
(8) (a) Amounts received under training programs funded by HUD (e.g., training received under
Section 3);
Exhibit 5-1
HUD Occupancy Handbook 3 06/07
Chapter 5: Determining Income & Calculating Rent
4350.3 REV-1
(b) Amounts received by a person with a disability that are disregarded for a limited time for
purposes of supplemental security income eligibility and benefits because they are set-aside for
use under a Plan to Attain Self-Sufficiency (PASS);
(c) Amounts received by a participant in other publicly assisted programs that are specifically for or
in reimbursement of out-of-pocket expenses incurred (special equipment, clothing,
transportation, child care, etc.) and which are made solely to allow participation in a specific
program;
(d) Amounts received under a resident service stipend. A resident service stipend is a modest
amount (not to exceed $200 per month) received by a resident for performing a service for the
owner, on a part-time basis, that enhances the quality of life in the project. Such services may
include, but are not limited to, fire patrol, hall monitoring, lawn maintenance, and resident-
initiative coordination. No resident may receive more than one such stipend during the same
period of time; or
(e) Incremental earnings and benefits resulting to any family member from participation in qualifying
state or local employment training programs (including training programs not affiliated with a
local government) and training of a family member as a resident management staff person.
Amounts excluded by this provision must be received under employment training programs with
clearly defined goals and objectives, and are excluded only for the period during which the
family member participates in the employment training program.
(9) Temporary, nonrecurring, or sporadic income (including gifts);
(10) Reparation payments paid by a foreign government pursuant to claims filed under the laws of that
government by persons who were persecuted during the Nazi era. (Examples include payments by
the German and Japanese governments for atrocities committed during the Nazi era);
(11) Earnings in excess of $480 for each full-time student 18 years or older (excluding the head of
household and spouse);
(12) Adoption assistance payments in excess of $480 per adopted child;
(13) Deferred periodic amounts from supplemental security income and social security benefits that are
received in a lump-sum amount or in prospective monthly amounts;
(14) Amounts received by the family in the form of refunds or rebates under state or local law for property
taxes paid on the dwelling unit;
(15) Amounts paid by a state agency to a family with a member who has a developmental disability and is
living at home to offset the cost of services and equipment needed to keep the developmentally
disabled family member at home; or
(16) Amounts specifically excluded by any other federal statute from consideration as income for purposes
of determining eligibility or benefits under a category of assistance programs that includes assistance
under any program to which the exclusions set forth in 24 CFR 5.609(c) apply. A notice will be
published in the Federal Register and distributed to housing owners identifying the benefits that qualify
for this exclusion. Updates will be published and distributed when necessary.
Exhibit 5-1
HUD Occupancy Handbook 4 06/07
Chapter 5: Determining Income & Calculating Rent
4350.3 REV-1
The following is a list of income sources that qualify for that exclusion:
(a) The value of the allotment provided to an eligible household under the Food Stamp Act of 1977 (7
U.S.C. 2017 [b]);
(b) Payments to Volunteers under the Domestic Volunteer Services Act of 1973 (42 U.S.C. 5044(g),
5058) (employment through AmeriCorps, Volunteers in Service to America [VISTA], Retired Senior
Volunteer Program, Foster Grandparents Program, youthful offender incarceration alternatives,
senior companions);
(c) Payments received under the Alaska Native Claims Settlement Act (43 U.S.C. 1626[c])
(d) Income derived from certain submarginal land of the United States that is held in trust for certain
Indian tribes (25 U.S.C. 459e);
(e) Payments or allowances made under the Department of Health and Human Services’ Low-Income
Home Energy Assistance Program (42 U.S.C. 8624[f]);
(f) Payments received under programs funded in whole or in part under the Job Training Partnership
Act (29 U.S.C. 1552[b]; (effective July 1, 2000, references to Job Training Partnership Act shall be
deemed to refer to the corresponding provision of the Workforce Investment Act of 1998 [29 U.S.C.
2931], e.g., employment and training programs for Native Americans and migrant and seasonal
farm workers, Job Corps, veterans employment programs, state job training programs, career
intern programs, Americorps);
(g) Income derived from the disposition of funds to the Grand River Band of Ottawa Indians (Pub. L-
94-540, 90 Stat. 2503-04);
(h) The first $2,000 of per capita shares received from judgment funds awarded by the Indian Claims
Commission or the U. S. Claims Court and the interests of individual Indians in trust or restricted
lands, including the first $2,000 per year of income received by individual Indians from funds
derived from interests held in such trust or restricted lands (25 U.S.C. 1407-1408);
(i) Amounts of scholarships funded under title IV of the Higher Education Act of 1965, including
awards under federal work-study programs or under the Bureau of Indian Affairs student
assistance programs (20 U.S.C. 1087uu);
(j) Payments received from programs funded under Title V of the Older Americans Act of 1985 (42
U.S.C. 3056[f]), e.g., Green Thumb, Senior Aides, Older American Community Service
Employment Program;
(k) Payments received on or after January 1, 1989, from the Agent Orange Settlement Fund or any
other fund established pursuant to the settlement in In Re Agent-product liability litigation, M.D.L.
No. 381 (E.D.N.Y.);
(l) Payments received under the Maine Indian Claims Settlement Act of 1980 (25 U.S.C. 1721);
(m) The value of any child care provided or arranged (or any amount received as payment for such
care or reimbursement for costs incurred for such care) under the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858q);
(n) Earned income tax credit (EITC) refund payments received on or after January 1, 1991, including
advanced earned income credit payments (26 U.S.C. 32[j]);
(o) Payments by the Indian Claims Commission to the Confederated Tribes and Bands of Yakima
Indian Nation or the Apache Tribe of Mescalero Reservation (Pub. L. 95-433);
(p) Allowances, earnings, and payments to AmeriCorps participants under the National and
Community Service Act of 1990 (42 U.S.C. 12637[d]);
Exhibit 5-1
HUD Occupancy Handbook 5 06/07
Chapter 5: Determining Income & Calculating Rent
4350.3 REV-1
(q) Any allowance paid under the provisions of 38 U.S.C. 1805 to a child suffering from spina bifida
who is the child of a Vietnam veteran (38 U.S.C. 1805);
(r) Any amount of crime victim compensation (under the Victims of Crime Act) received through
crime victim assistance (or payment or reimbursement of the cost of such assistance) as
determined under the Victims of Crime Act because of the commission of a crime against the
applicant under the Victims of Crime Act (42 U.S.C. 10602); and
(s) Allowances, earnings and payments to individuals participating in programs under the Workforce
Investment Act of 1998 (29 U.S.C. 2931).
Annual Tenant Housing Report Form – Due January 30th for preceding calendar year EXHIBIT E
Name, Phone Number & Email of Person Completing Form:
Property Address:
Period Covered:
January 1, 2016 to December 31, 2016
Property Owner: Required Number of Units per Ordinance:
Unit #
# of
Bdrms
Last Name or Client ID# Total
Monthly
Rent
(
%
Median Income
Size of Household
(all members)
Start/Renewal of Lease Lease Expiration Date
.
I certify that the information above is, to the best of my knowledge and belief, true, correct and complete. I am aware that the information being provided is subject to verification by
the City of Iowa City.
__________________________________ ________________________________________ __________________
Name (print) Signature Date
Complete and return to:
neighborhoods@iowa-city.org
City of Iowa City, Neighborhood Services
410 E. Washington Street
Iowa City, IA 52240
If you have questions, please call 319.356.5230
Exhibit F
Table of Income and Rent Limits
HOME Investment Partnerships Program (HOME)
Income Limits Effective, June 1, 2018
HOME Fair Market Rent Limits
Household Size
60% Median
Income
80% Median
Income Median Income
110% Median
Income
1 $36,540 $48,750 $60,900 $66,990
2 $41,760 $55,700 $69,600 $76,560
3 $46,980 $62,650 $78,300 $86,130
4 $52,200 $69,600 $87,000 $95,700
5 $56,400 $75,200 $94,000 $103,400
6 $60,600 $80,750 $101,000 $111,100
7 $64,740 $86,350 $107,900 $118,690
8 $68,940 $91,900 $114,900 $126,390
Effective SRO Efficiency 1 BDR 2BDR 3 BDR 4 BDR 5 BDR 6 BDR
6/1/2018 $468 $625 $723 $956 $1,391 $1,684 $1,937 $2,189