Comparable Replacement Housing Gone Wrong

Joan Morgan, Director, Relocation and Real Estate Division, HUD

Displacement Dwelling

• 683 sq. ft. first floor 1 BR apartment • Subsidized tenant with Housing Choice

Voucher Assistance• Contract Rent $750, Utility Allowance $39 =

$789 Gross Rent• HCV Payment Standard $1132 (incl. Util.)• Tenant Rent $175 net ($214 - $39) – medical

deduction of $1927 allowed (30% of NET income)

1 BR Displacement Unit (first floor)

$750 Rent & $39 utilities

Temporary Relocation

• Issued a Notice of Nondisplacement and provided temporary relocation

• Difficult tenant: physical and mental disabilities

• Delayed relocation for about 1 year, insisted on a detached or SF residence (based on disabilities)

• Moved to a 1BR duplex, 755 sq. ft.

1 BR Duplex Temporary Unit

$1300 Rent & $47 utilities & $198 storage fee

Temporary Relo Cont’d• Rent for unit $1300 (not including utilities)• HCV EXCEPTION Payment Standard $1245 w.

utilities• Lease written for $1160 rent w. $47 utility cost =

$1245• Grantee made side payments to owner of $140

per month to cover “maintenance fee” ($1160 & $140 = $1300) and paid $198 storage fee

• Tenant portion $88 - $47 = $41 (Net income went down from $244 because of increased medical, payment based on 10% of gross income)

Temporary Relo. Cont’d

• Tenant refused all offers to return to original site (within one year of temporary relocation) based on “disability” need for detached or single family home.

• Filed a HUD discrimination complaint regarding failure to provide reasonable accommodation for her disabilities– HUD Letter of Finding issued with Determination

of No Reasonable Cause

Notice of Eligibility

• Notice of termination of temporary relocation assistance issued (effective 22 months after relo) AND

• Tenant was issued a Notice of Relocation Eligibility by grantee

• Tenant insisted that comparable be based on the temporary unit (not original unit)

• Tenant did not agree with comparable provided and filed a URA complaint with HUD

Single Family 3 BR Comparable Offered$1550 rent & $215 utilities

Last Resort Comparable Offered

• 3 BR, 1 BA Single Family house• HCV Exception Payment Standard $1245• Unit rent $1550 + $215 utilities = $1765• What’s wrong with this picture?

HUD Determination

• Tenant was properly issued a Notice of Nondisplacement

• Tenant was offered her own and other units at original project (all were refused)

• Tenant ‘s claimed-need for a detached or single family unit to accommodate her disabilities was not a result of the project and therefore a choice—she was not displaced.

HUD Determination Cont’d

• Termination of temporary relocation assistance was proper

• Tenant could use her HCV to find suitable housing to meet her medical needs

• She was not eligible for URA relocation assistance.

2 Years Later

• Tenant still occupies the “temporary” unit• Tenant’s share of the rent to owner is $272 (extra

$55 for higher cost housing) plus her utilities = $340/mo. total (33% of gross income)– Increase largely due to decrease in medical

deductions and tenant’s obligation to pay rent cost above exception payment standard.

• Unknown if she still maintains the off-site storage space on her own.