that the monthly rent and utilities bill plus all other current monthly bill payments (for charge accounts, auto loans, etc.) should not exceed 50 percent of the tenant's net effective monthly income. The executive director and staff review all the material in the tenant's application. Criteria used to evaluate tenants for occupancy include: ability to pay rent (and meet projected monthly mort gage payments) using the 35 percent and 50 percent intention and ability to purchase the property eventu- willingness to participate in neighborhood activities. The executive director makes recomendations to the project authority (or a subcommittee) on accepting or rejecting rental applicants. At its regularly scheduled meeting, the full membership of the authority votes on the tenant applications. Applications can be approved outright, approved pending a satisfactory credit report, tabled until submission and review of further information, or disapproved. Occupancy will be granted without regard to race, color, creed, religion, national origin, or sex. An appeal procedure should be developed for rejected applicants, who should have the opportunity to present additional information to the project authority. Applicants who are rejected on the basis of an adverse credit report must be informed of the source of the report in compliance with the Fair Credit Reporting Act. Each approved applicant should be required to attend an orientation session with the executive director prior to signing the sublease. In reviewing with the tenant the contents of the sublease, the executive director should carefully delineate the obligations of both tenant and project authority. Other areas to be covered are: whom to contact for repairs during office hours and in where rental payments are to be sent; how to operate and maintain all appliances and equip- what kinds of improvements can be made to the prop- All tenants should be required to inspect their units prior to occupancy, accompanied by a staff member. Results of the inspection, recorded on a checklist, should be returned to the project authority within a specified period. This procedure is important in assessing financial liability for any repair work that may later be required. Rent Collection Policies and Procedures The rent collection policy for the program should be a combination of reminders and counseling which, if unsuccessful in securing rent payments, will lead to legal actions to evict the tenant. Policies and procedures regarding collection of rents should be clearly communicated to all tenants. Procedures for collection should be applied impartially. Tenants should mail or deliver rent payments to a designated staff person of the project authority. This person is responsible for recording all incoming rent payments and notifying the executive director of those tenants whose rents are overdue. Procedures to be followed in depositing rent payments in the project's financial accounts are described in Chapter IV. Specific procedures should be developed to deal with late rent payments, including phone calls, letters, conferences, and as a last resort, eviction proceedings. Tenants who have not paid their rent within a specified period should be contacted by phone and informed that they must pay a late charge in addition to their rent. If the delinquency continues beyond a second specified date, a letter should be sent assessing an additional late charge. If the overdue rent is not received within a specified time after this written notice, the executive director should arrange an immediate conference with the tenant. During the conference, tenants with budget problems should be referred to a credit counseling agency. Allowances should be made for hardships such as a laid-off or seriously ill tenant. If the "intention to pay" seems sincere, the executive director should attempt to work out individual financial arrangements. Eviction proceedings will be initiated only when the preceding steps have been exhausted and the tenant has not made a satisfactory arrangement with the executive director. The assessment of late charges, acceptance of partial payments and prepayments, and the decision to initiate eviction proceedings should be subject to the express approval of the full project authority. Plans for Tenant-Management Relations Grievance Procedures1 All tenant grievances concerning management services, policies, personnel, or maintenance services, and grievances concerning other residents should receive prompt, efficient attention from the executive director. If the problem cannot be settled by the executive director, it should be referred to the project authority at its next regularly scheduled meeting. Records of maintenance, service, and policy grievances should be kept on file in the authority's office. If the residents are interested in forming a community organization, and are willing to serve as a channel through which grievances can be mediated, such procedures should be encouraged by the authority. Grievances of management toward residents are likely to include such problems as lease violations, vandalism, noise, or other violations of the rules and regulations established by the project authority. If a problem occurs, the executive director will initially ask the tenant to meet with her/him to discuss the incident. The results of the meeting will be recorded in the tenant's folder. Should the incident recur, the executive director will again ask for a conference with the tenant, and a record of the second meeting will be filed in the tenant's folder. If the tenant expresses a desire for help in solving the problem, he or she will be referred to an appropriate neighborhood services program or social services agency. If all else fails, the tenant will be evicted under the terms of the sublease. Service Requests Tenant requests for service should initially be channeled through the project authority's office, where a staff member records the date, time, and nature of the request. When the service has been completed, the employee, who performed the work signs the date and time of completion along with his name. The resident also signs the work ticket as acknowledgement that the work has been performed. If the requested service is not provided within a specified period, and the delay is due to ordering parts or equipment, the tenant should 1Additional information on HUD's Standard Grievance Procedure is available from field offices. and the delay is due to ordering parts or equipment, the tenant should be informed by a phone call and a written memo, and a follow-up system will assure completion of the repair. If a resident feels that he has not received prompt or efficient service at any time, he should have ready access to the executive director or the project authority. Tenant Orientation Approved applicants should be taken on a tour of the development and its recreational and social facilities for an orientation to their new environment. In addition, handouts should be prepared concerning appliance care, office hours, proper payment of rent, rules and regulations of the management, rules and regulations governing other public facilities, and the responsibilities of both management and the tenant. The rent escalation and sales option plan should be explained at this time, including basis of sale, financing, out-of-pocket costs, and time of execution. All approved applicants should have an orientation interview with the executive director. During this meeting, they are exposed to the goals, management guidelines, and background of the project. The applicants are also encouraged to discuss their goals and expectations regarding home ownership in the subdivision. Their interests, needs, and skills are also discussed, and the executive director is encouraged to explain why a resident organization is important to a community and the hope that incoming families will be willing to participate as an active part of the community. Lease Provisions All residents will be required to sign a one-year lease which commences on a specified day of the month. If a tenant moves in on any other day, a prorated share of the rent is assessed and the lease would begin with the first full month of occupancy. All tenants will pay a security deposit, usually in the amount of one month's rent. This deposit will be held until the lease terminates, when it will be returned or forfeited totally or in part, depending on the circumstances. If the tenant intends to move out of the property when his or her lease expires, the project authority must be notified in writing at least 60 days prior to the lease's expiration date. If such notification is not given, the lease is automatically extended from month to month. After the initial one-year lease expires, the monthly rent may be increased by the project authority provided 30 days written notice is given to the tenant. All leases will be printed in the English lar guage. However, if a person cannot read or understand the printed forms, the executive director will assist as far as his ability will allow and, if necessary, will solicit the aid of someone who can communicate in the prospective resident's language. Community Organization The management plan should encourage property owners and tenants to organize formally into a council or association to represent the views and concerns of the residents. Such an organization serves a vital purpose in providing a forum through which the residents and management can discuss and understand their mutual problems, concerns, and objectives, and arrive at agreed solutions to shared problems. The project authority should work with and actively encourage the formation of such community organizations. Programs within the neighborhood services plan should be designed to stimulate the development of activities such as a neighborhood newsletter or special committees to solve particular community problems. As such an organization evolves, the executive director will meet with its executive council or the full membership, as appropriate, to address community problems. It is the project authority's intention to delegate appropriate responsibilities to the community organization gradually, so that important community programs and services are continued after the completion of the Community Stabilization Program. MAINTENANCE PLAN The maintenance plan covers topics such as scheduled maintenance of installed equipment, inspections and inspection reports, painting, trash removal, major repairs, resident requests, and financial responsibility for repairs. The provisions outlined below can serve as a model, which can be modified and augmented to suit requirements in a particular locality. Scheduled Maintenance Scheduled maintenance and repair of installed equipment will be accomplished by the project authority's maintenance crew in accordance with manufacturers' recommendations and the requirements of equipment operating manuals. Scheduled maintenance, which is largely preventive, will entail cleaning or replacement of equipment |