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<br />the time of initial rental and annually thereafter. The owner must obtain and review documents <br />that demonstrate the prospective renter's total income, such as income tax retums or W-2s for the <br />previous calendar year, and submit such information on a form approved by the City. <br /> <br />A. Selection of Tenants. The owners of rental Inclusionary Units may fill vacant <br />units by selecting income-eligible Households from the Section 8 Housing Choice <br />Voucher Waiting List maintained by the Alameda County Housing Authority or any <br />other list maintained by the City or City's designee. A1tematively, owners may fill <br />vacant units through their own selection process, provided that they publish <br />notices of the availability of Inclusionary Units according to guidelines established <br />by the Community Development Director. <br /> <br />B. Annual Report. The owner shall submit an annual report summarizing the <br />occupancy of each Inclusionary Unit for the year, demonstrating the continuing <br />income-eligibility of the tenant. The Community Development Director may <br />require additional information if he or she deems it necessary. <br /> <br />C. Subsequent Rental to Income-Eliqible Tenant. The owner shall apply the same <br />rental terms and conditions to tenants of Inclusionary Units as are applied to all <br />other tenants, except as required to comply with this Article (for example, rent <br />levels, occupancy restrictions and income requirements) or with other <br />applicable government subsidy programs. Discrimination against persons <br />receiving housing assistance is prohibited. <br /> <br />D. Chanqes in Tenant Income. If, after moving into an Inclusionary Unit, a <br />tenant's Household income exceeds the limit for that unit, the tenant Household <br />may remain in the unit as long as his or her Household income does not exceed <br />140 percent of the income limit. Once the tenant's income exceeds 140 percent <br />of the income limit, the following shall apply: <br /> <br />1. If the tenant's income does not exceed the income limits of other Inclusionary <br />Units in the Residential Development, the owner may, at the owner's option, <br />allow the tenant to remain in the original unit and redesignate the unit as <br />affordable to Households of a higher income level, as long as the next vacant <br />unit is re-designated for the income category previously applicable to the <br />tenant's Household. Otherwise, the tenant shall be given one year's notice to <br />vacate the unit. If during the year, an Inclusionary Unit becomes available and <br />the tenant meets the income eligibility for that unit, the owner shall allow the <br />tenant to apply for that unit. <br /> <br />2. If there are no units designated for a higher income category within the <br />Development that may be substituted for the original unit, the tenant shall be <br />given one year's notice to vacate the unit. If within that year, another unit <br />in the Residential Development is vacated, the owner, at the owner's option, <br />may allow the tenant to remain in the original unit and raise the tenanfs rent to <br />Market-Rate and designate the newly vacated unit as an Inclusionary Unit <br />affordable at the income level previously applicable to the unit converted to <br />market rate. The newly vacated unit must be comparable in size (for <br /> <br />14 <br />