Hurricane Katrina Response
Information for Housing Credit Property Owners
Participate in National Registry for Rental Properties
Questions and Answers for Rental Property Owners
Information for Housing Credit Property Owners
The N.C. Housing Finance Agency is seeking vacancy information from owners. Those interested in participating should contact Susan Westbrook at (919) 877-5647 or swestbrook@nchfa.com; or Theresa McSorley at (919) 877-5664 or tamcsorley@nchfa.com. Potential residents may have difficulty paying rent in the near term, and typically need to be within walking distance of public transit. For general information owners and management companies should refer to the National Multi Housing Council website.
Management companies should first determine if displaced households are income qualified. The Agency accepts self-affidavits of income (will need to comply with HUD 4350.3 instructions on income verification as an alternative means). No waivers or special approvals are required for income-qualified tenants with non-transient lease terms (at least six (6) months). See an example of an acceptable self-affidavit.
If the household is over income, or if the lease term is transient, the owner will need to utilize IRS Notice 2005-69 (“Notice”), which partially waives these two requirements. The Agency approves every low-income housing tax credit property for the relief described in the Notice, and has determined that the appropriate period of temporary housing is until September 30, 2006. In order to qualify for either or both these waivers:
- the displaced individual must have resided in an area of Alabama, Louisiana or Mississippi designated by FEMA for Individual Assistance (owners have several options to document this, see below),
- owners must maintain certain information for each individual (see the Notice), and
- the property must be listed at www.swern.gov (see other sites below).
Owners should refer to the Notice itself and consult with legal counsel.
Suggested documentation of previous residence, in order of preference:
1. FEMA Certification of Displacement, or
2. Copy of a Drivers License or other valid ID that includes address (compare the county to the FEMA list) and an affidavit that the applicant is displaced (previous housing no longer habitable), or
3. Copy of a bill or piece of mail to corroborate former address (compare the county to the FEMA list) and an affidavit that the applicant is displaced (previous housing no longer habitable), or
4. An affidavit that the applicant is displaced (previous housing no longer habitable). (Compare the county to the FEMA list.)
The Agency will consider displaced households as income-qualified for the purposes of the state housing tax credit and loan programs (including RPP). Displaced households will also meet the lowest income and occupancy level required for that property under the applicable Qualified Allocation Plan.
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Participate in National Registry for Rental Properties
Register Rental Properties Immediately
The N.C. Housing Finance Agency asks owners and managers of rental properties to register available units with both the National Emergency Resource Registry and NCHousingSearch.org as soon as possible.
For the NERR site you will need to click on "North Carolina," then "List a Property" (bar at top), and then "Register." Please inform the Agency once you have registered a property with these sites by sending an email to compliancehelp@nchfa.com.
Owners seeking to take advantage of IRS Notice 2005-69 will need to register properties (necessary for over-income households or transient leases; for more information, see section above).
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Questions and Answers for Rental Property Owners
These questions may arise when providing housing to displaced households. The answers are intended only as a reference; owners and management agents must refer to applicable rules, regulations and statutes. This information is not a substitute for legal advice and does establish any lawyer-client relationship.
Q. How do I provide evacuees with housing?
A. The N.C. Housing Finance Agency is seeking owners willing to have their property management staff process move-ins at the evacuee shelters. Those interested in participating should contact Susan Westbrook at (919) 877-5647 or swestbrook@nchfa.com; or Theresa McSorley at (919) 877-5664 or tamcsorley@nchfa.com. Potential residents may have difficulty paying rent in the near term, and typically need to be within walking distance of public transit. Owners should also list available units on the registries linked above.
Q. Can I give preferential treatment for disaster victims?
A. Giving preferential treatment to disaster victims is not a Fair Housing violation. If you allow a Katrina evacuee to live in a unit for free, you should still require a lease so that the term and other issues are clear.
Q. What are some examples?
A. The Agency encourages owners to offer short-term leases (if desired by the household), and waive move-in expenses such as security deposits and application fees. Also please consider offering free or reduced rent and providing towels, sheets and personal hygiene items. While screening of applicants will be difficult (and financial considerations such as credit history should be waived), we suggest you make every effort to check criminal history if this is part of your regular screening criteria.
Q. How do I check backgrounds?
A. You may ask applicants for copies of bank statements or pay stubs to establish income. Some information may be available on the Internet. Allowing Katrina evacuees to provide less proof than other applicants is not a Fair Housing violation. If you routinely check credit and criminal histories, you may continue to do so for Katrina evacuees. Many will have relocated to North Carolina due to having family members in the area, and thus may be able to have others co-sign their obligations.
Q. What are FEMA vouchers?
A. FEMA may issue housing vouchers to pay for some or all of the housing costs of Katrina evacuees. During past disasters, some property owners asked residents to sign a lease addendum specifying that if some or all of the rent is to be paid by a FEMA voucher or other assistance, the assistance will be signed over to the property owner.
Q. How do I treat Katrina evacuees who terminate a lease early?
A. While you have the same legal remedies for breach against Katrina evacuees that are available against any breaching resident, there is no requirement to seek recovery of damages.
These questions and answers were adapted from information provided by The National Apartment Association.
Owners and property managers may contact the following N.C. Housing Finance Agency staff members with other questions:
Betty Ballentine: (919) 877-5646 or bballentine@nchfa.com
Gwen Belcredi: (919) 877-5648 or sbelcredi@nchfa.com
Theresa McSorley: (919) 877-5664 or tamcsorley@nchfa.com
Mark Shelburne: (919) 877-5645 or mshelburne@nchfa.com
Susan Westbrook: (919) 877-5647 or swestbrook@nchfa.com
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