County of Hawai'i Displacement Plan

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• 8924 Federal Register / Vol. 54, No. 40 / Thursday. March 2. 1989 / Rules and Regulations of the common governmentwide rule,to The first issue was the inclusion of the do agree that some tenants voluntaril provide that the payment shall be based coal of utilities in the computation of the elect to spend more than 30 on the remaining term of the mortgage rental assistance Percent o{ a on the displacement dwellingF yment.The their Income for housing when more or the inclusion of utilities has been an ongoing affordable housing is available. actual term of the new mortgage. issue since the Publication of the However.FHWA believes these lifestyle whichever is leas. common rule in 1985.Since that time, choices for convenience,prestige or Many of the same commenters who utility services have been included in other reasons to be the exceptions,not preferred this method did not think that the computation of a rental assistance the rule.Consideration must also be their agency could make the increased payment if they were included at the given to the fact that private lending mortgage interest payments at the time displacement dwellingand/or the of dosing because of their payment comparable dwellinginstitution requirements set the reit as as a part of the the monthly cost of housingafter procedures or the loan processing rent.FHWA recognizes the concerns of purchase of a dwelling at proximately P lending institutions.In the current 14 commenters about the the same level as the 30 percent of I response,the final rule has been revised increased administrative burden for income criteria established for tenants. to provide that the payments must be securing information and the variables The inclusion of a made"at or near"the time of closing. In utility usage due to differing user person'shlrentfigute in However.the implied purpose of the lifestyles.These concerns can be waalsocomputing a opposedbaeby several figure increased mortgage interest costs addressed in various ways.One was also i payment is to reduce the replacement commenter suggested that a schedule be COmmea perceived di The bigget concern wan a mortgage;therefore this payment must devised for utility costs with the in ut of incm difficulty an the verification of be available to lower the amount of the utility companies in the protect area that accept c t and a infoimplrmation ion from a to mortgage in a timely manner,preferably will reflect actual,reasonable costs. displacedcpm'insFHWA same at the time of the closingaccuratepersons.ti believes income that on the Another agency suggested that if true information concerning replacement property.This procedure comparables are used for payment can be obtained from most ff does quire ose[c coordination ationelTith a determinate the absutility their costs shouldosithere is obvious evidence that closingalso be cohas more income than than the amortization method.The should not increase the cost of reported.it is the agencies who thought they would be replacement housing.Relocation from a Agency's prerogative to accept the most successful using the bay-down substandard dwelling to a standard �e reportedi to requesto procedure were those who used escrow dwelling could.in fact,decrease the cost including ncluadditionalgincomeictax returns,o insor accounts to make funds available to of utilities,especially the cog of heat infor�hmi tax then or to displaced persons. unless a larger dwelling is used to meet the person that there Is There were sten several comments the needs of a family.or if all utilities reasonable doubt that the information is about home equity loans and the were not available in the displacement accurate.providedIf the income id as requested. inclusion of these mortgages in the dwelling,as noted by another not or take such as requested, computation of the increased mortgage camtaeater. the Agency may take such action as it Agencies may establish their own interest costs payment.Home equity deems necessary to obtain income loans are valid mortgage liens on P dares to be used for determiningInformation under a uniform agency- residential real property regardless of the cost of utilities If the procedures are wide or area-wide policy. how the proceeds from the loans are used uniformly. Section 24.402(b)171 Manner of FHWA is continuing to include disbursement.Eleven comments were used Therefore,they must be included in the computation. utilities in the monthly base housing received concerning the vesting of the In answer to another comment,the computation because utilities are full amount of the rental assistance mortgage to be used compute the considered to be an integral part of Payment when the displaced tenant mortgage rate to be tot coats monthly housing coats and historically receives the first rental assistance payment when the property ,secured have been treated as such by several payment,either in lump sum or as an with an adjustable pate thFederal programs Including those installment.Most of the comments took withinterest n rate mortgage administered by HUD as a standard exception to the idea of vesting. property athat the date current on theion practice'The existence of adequate The vesting of the full amount of the A er y es computation et of qct increased utilities is a primary requirement for a rental assistance payment le intended to mortgage interest costs of an i b dwelling to he decent,safe,and establish at a definite point in time,the mortgag in die A.as s� full amount of the payment for the 42 in a ded in of commenters.An IBM requested PC The 30 percent figure used in month period after displacement. by a numle computer entesand '0�](2](ti)to determine base Vesting eliminates the red-tape compatible le computer or r program instructions will be monthly rental is considered a requirements of recordkesping, re- financial made avcalcul to instru t reasonable percentage of income to be Inspection.and recertification of the soon as feasible. guidance as applied to rental housing costs under replacement dwellings,and continued current market and economic contacts with the displaced person and Section 24.40.2 Replacement Housing conditions,and is consistent with the the person's landlord that would Payment for S0Day Occupantspercentage of income figures currently otherwise be necessaty.It also Section 21.4Qz1a11Z1(llJ(A).The changebeing used in other subsidized housing eliminates the potential problem of the and related programs of HUD and other additional project costs as rents are made in I 24.401(a)(2](i).concerning deposit estimated just compensation. Several commenters stated increased or new DSS dwellings need to d made of e also. , that,In their experience,many tenants be found for those who no longer live in Section r are now paying40 percent or more of standard housing.FHWA understands lb) Rental assistance their incomas for housing costs.Our that the same pommeeteraere payment.There were numerous concern is that the 40 percent payments concerned About the diversion of.lump comments about the ch4nge,made in , primarily reflect the lack of affordable sum rental aselstanca this aadioa. ymesati for non- rental housing in the current market.We housing uses,and a rn�t return of