1998 Minnesota Statutes

     462A.205 Rent assistance for family stabilization 
  demonstration project. 

    Subdivision 1.    Family stabilization demonstration 
 project.  The agency, in consultation with the department of 
 human services, may establish a rent assistance for family 
 stabilization demonstration project.  The purpose of the project 
 is to provide rental assistance to families who, at the time of 
 initial eligibility for rental assistance under this section, 
 were receiving public assistance, and had a caretaker parent 
 participating in a self-sufficiency program and at least one 
 minor child and to provide rental assistance to families who, at 
 the time of initial eligibility for rental assistance under this 
 section, were receiving public assistance, and had a caretaker 
 parent who had earned income and with at least one minor child.  
 The demonstration project is limited to counties with high 
 average housing costs.  The program must offer two options:  a 
 voucher option and a project-based voucher option.  The funds 
 may be distributed on a request for proposal basis.  

    Subd. 2.    Definitions.  For the purposes of this 
 section, the following terms have the meanings given them. 

    (a) "Caretaker parent" means a parent, relative caretaker, 
 or minor caretaker as defined by the aid to families with 
 dependent children program, sections 256.72 to 256.87, or its 
 successor program. 

    (b) "County agency" means the agency designated by the 
 county board to implement financial assistance for current 
 public assistance programs and for the Minnesota family 
 investment program statewide. 

    (c) "Counties with high average housing costs" means 
 counties whose average federal section 8 fair market rents as 
 determined by the Department of Housing and Urban Development 
 are in the highest one-third of average rents in the state. 

    (d) "Designated rental property" is rental property (1) 
 that is made available by a self-sufficiency program for use by 
 participating families and meets federal section 8 existing 
 quality standards, or (2) that has received federal, state, or 
 local rental rehabilitation assistance since January 1, 1987, 
 and meets federal section 8 existing housing quality standards. 

    (e) "Earned income" for a family receiving rental 
 assistance under this section means cash or in-kind income 
 earned through the receipt of wages, salary, commissions, profit 
 from employment activities, net profit from self-employment 
 activities, payments made by an employer for regularly accrued 
 vacation or sick leave, and any other profit from activity 
 earned through effort or labor. 

    (f) "Family or participating family" means: 

    (1) a family with a caretaker parent who is participating 
 in a self-sufficiency program and with at least one minor child; 

    (2) a family that, at the time it began receiving rent 
 assistance under this section, had a caretaker parent 
 participating in a self-sufficiency program and had at least one 
 minor child; 

    (3) a family with a caretaker parent who is receiving 
 public assistance and has earned income and with at least one 
 minor child; or 

    (4) a family that, at the time it began receiving rent 
 assistance under this section, had a caretaker parent who had 
 earned income and at least one minor child. 

    (g) "Gross family income" for a family receiving rental 
 assistance under this section means the gross amount of the 
 wages, salaries, social security payments, pensions, workers' 
 compensation, reemployment insurance, public assistance 
 payments, alimony, child support, and income from assets 
 received by the family. 

    (h) "Local housing organization" means the agency of local 
 government responsible for administering the Department of 
 Housing and Urban Development's section 8 existing voucher and 
 certificate program or a nonprofit or for-profit organization 
 experienced in housing management. 

    (i) "Public assistance" means aid to families with 
 dependent children, or its successor program, family general 
 assistance, or its successor program, or family work readiness, 
 or its successor program. 

    (j) "Self-sufficiency program" means a program operated by 
 an employment and training service provider as defined in 
 chapter 256J, an employability program administered by a 
 community action agency, or courses of study at an accredited 
 institution of higher education pursued with at least half-time 
 student status. 

    Subd. 3.    Local housing organization.  The agency may 
 contract with a local housing organization to administer the 
 rent assistance under this section.  The agency may pay the 
 local housing organization an administrative fee.  The 
 administrative fee may not exceed $40 per unit per month. 

    Subd. 4.    Amount and payment of rent assistance.  (a) 
 This subdivision applies to both the voucher option and the 
 project-based voucher option.  

    (b) Within the limits of available appropriations, eligible 
 families may receive monthly rent assistance for a 36-month 
 period starting with the month the family first receives rent 
 assistance under this section.  The amount of the family's 
 portion of the rental payment is equal to at least 30 percent of 
 gross income. 

    (c) The rent assistance must be paid by the local housing 
 organization to the property owner. 

    (d) Subject to the limitations in paragraph (e), the amount 
 of rent assistance is the difference between the rent and the 
 family's portion of the rental payment. 

    (e) In no case: 

    (1) may the amount of monthly rent assistance be more than 
 $250 for housing located within the metropolitan area, as 
 defined in section 473.121, subdivision 2, or more than $200 for 
 housing located outside of the metropolitan area; 

    (2) may the owner receive more rent for assisted units than 
 for comparable unassisted units; nor 

    (3) may the amount of monthly rent assistance be more than 
 the difference between the family's portion of the rental 
 payment and the fair market rent for the unit as determined by 
 the Department of Housing and Urban Development. 

    Subd. 4a.    Additional authorized expenses.  In 
 addition to the monthly rent assistance authorized under 
 subdivision 4, rent assistance may include up to $200 for a 
 security deposit for housing located outside the metropolitan 
 area, as defined in section 473.121, subdivision 2, and up to 
 $250 for a security deposit for housing located within the 
 metropolitan area. 

    Subd. 5.    Voucher option.  At least one-half of the 
 appropriated funds must be made available for a voucher option.  
 Under the voucher option, the Minnesota housing finance agency, 
 in consultation with the department of human services, will 
 award a number of vouchers to self-sufficiency program 
 administrators for participating families and to county agencies 
 for participating families with earned income.  Families may use 
 the voucher for any rental housing that is certified by the 
 local housing organization as meeting section 8 existing housing 
 quality standards. 

    Subd. 6.    Project-based voucher option.  A portion of 
 the appropriated funds must be made available for a 
 project-based voucher option.  Under the project-based voucher 
 option, the Minnesota housing finance agency, in consultation 
 with the department of human services, will award a number of 
 vouchers to self-sufficiency program administrators and to 
 county agencies for participating families who live in 
 designated rental property that is certified by a local housing 
 organization as meeting section 8 existing housing quality 
 standards.  

    Subd. 7.    Property owner.  In order to receive rent 
 assistance payments, the property owner must enter into a 
 standard lease agreement with the family which includes a clause 
 providing for good cause evictions only.  Otherwise, the lease 
 may be any standard lease agreement.  The agency and local 
 housing organizations must make model lease agreements available 
 to participating families and property owners.  

    Subd. 8.    Authorized leverage of money.  The agency 
 may leverage federal program money with program money from the 
 family stabilization demonstration project authorized under this 
 section. 

    Subd. 9.    Vouchers for families with a caretaker parent 
 with earned income.  (a) Applications to provide the rental 
 assistance for families with a caretaker parent with earned 
 income under either the voucher or project-based option must be 
 submitted jointly by a local housing organization and a county 
 agency.  The application must include a description of how the 
 caretaker parent participants will be selected. 

    (b) County agencies awarded vouchers must select the 
 caretaker parents with earned income whose families will receive 
 the rental assistance.  The county agency must notify the local 
 housing organization and the agency if: 

    (1) the caretaker parent no longer has earned income and is 
 not in compliance with the caretaker parent's employment plan or 
 job search plan; and 

    (2) for a period of six months, the caretaker parent has no 
 earned income and has failed to comply with the job search 
 support plan or employment plan. 

    (c) The county agency must provide the caretaker parent who 
 has no earned income and is not in compliance with the job 
 search support plan or employment plan with the notice specified 
 in Minnesota Rules, part 4900.3379.  The county agency must send 
 a subsequent notice to the caretaker parent, the local housing 
 organization, and the Minnesota housing finance agency 60 days 
 before the termination of rental assistance. 

    (d) If the local housing organization receives notice from 
 a county agency that a caretaker parent whose initial 
 eligibility for rental assistance was based on the receipt of 
 earned income no longer has earned income and for a period of 
 six months after the termination of earned income has failed to 
 comply with the caretaker parent's job search plan or employment 
 plan, the local housing organization must notify the property 
 owner that rental assistance may terminate and notify the 
 caretaker parent of the termination of rental assistance under 
 Minnesota Rules, part 4900.3380. 

    (e) The county agency awarded vouchers for families with a 
 caretaker parent with earned income must comply with the 
 provisions of Minnesota Rules, part 4900.3377. 

    (f) For families whose initial eligibility for rental 
 assistance was based on the receipt of earned income, rental 
 assistance must be terminated under any of the following 
 conditions: 

    (1) the family is evicted from the property for cause; 

    (2) the caretaker parent no longer has earned income and, 
 after six months, is not in compliance with the parent's job 
 search or employment plan; 

    (3) 30 percent of the family's gross income equals or 
 exceeds the amount of the housing costs for two or more 
 consecutive months; 

    (4) the family has received rental assistance under this 
 section for a 36-month period; or 

    (5) the rental unit no longer meets federal section 8 
 existing housing quality standards, the owner refused to make 
 necessary repairs or alterations to bring the rental unit into 
 compliance within a reasonable time, and the caretaker parent 
 refused to relocate to a qualifying unit. 

    (g) If a county agency determines that a caretaker parent 
 no longer has earned income and is not in compliance with the 
 parent's job search or employment plan, the county agency must 
 notify the caretaker parent of that determination.  The notice 
 must be in writing and must explain the effect of not having 
 earned income or failing to be in compliance with the job search 
 or employment plan will have on the rental assistance.  The 
 notice must: 

    (1) state that rental assistance will end six months after 
 earned income has ended; 

    (2) specify the date the rental assistance will end; 

    (3) explain that after the date specified, the caretaker 
 parent will be responsible for the total housing costs; 

    (4) describe the actions the caretaker parent may take to 
 avoid termination of rental assistance; and 

    (5) inform the caretaker parent of the caretaker parent's 
 responsibility to notify the county agency if the caretaker 
 parent has earned income.  

    HIST: 1991 c 292 art 9 s 27; 1993 c 236 s 7-14; 1994 c 488 s 
 8; 1995 c 224 s 103; 1997 c 200 art 4 s 12