§ 34-45-11. Rights of tenants.
(a) As used in this section the following words shall have the following meanings:
(1) "Assistance required action� means any prepayment of a mortgage obligation secured
by a development or an owner's failure to renew a § 8 assistance contract to the full
extent of owner's renewal rights thereunder.
(2) "Assisted household� means an individual or individuals who occupy a rental unit in
a development and whose gross annual income does not exceed upper income limits imposed
by any federal, state, or local government program providing financial assistance
to a development.
(3) "Assisted units� means all the dwelling units in a federally insured or assisted development
subject to regulatory requirements with respect to:
(i) The rents chargeable by the owner; or
(ii) The maximum annual income of the tenant occupying the unit, which may depend upon
the income of the tenant where a given percentage of the total number of units are
required to be occupied by income qualifying tenants.
(4) "Designated household� means any of the following households:
(i) An assisted household which includes a senior citizen or a person with a disability,
provided that the senior citizen or the person with a disability has been a member
of the household for a period of at least twelve (12) months preceding the giving
of the notice of intent required by this section; or
(ii) An assisted household which includes any child under the age of ten (10) years.
(5) "Person with a disability� means a person within the definition of handicapped person
in 42 U.S.C. § 1437a(b)(3).
(6) "Owner� or "property owner� means the person or combination of persons who hold legal
title to a development.
(7) "Relocation expenses� means costs incurred to:
(i) Hire contractors, labor, vehicles, or equipment to transport personal property;
(ii) Pack and unpack personal property;
(iii) Disconnect and reconnect utilities such as water, telephone, gas, electricity, and
related services; and
(iv) Disconnect and install personal property.
(8) "Senior citizen� means a person who is at least sixty-two (62) years old on the date
that the notice of intent is given.
(9) "Tenant protection assistance� means the payments to, and extension of leases for,
the occupant or former occupant of any assisted unit in connection with an assistance
required action as required under this section.
(b) This section does not apply if, prior to any assistance required action, the owner
or purchaser records a covenant running with the land on which the development is
located, in a form satisfactory to the corporation, which continues for the development
the existing low and moderate income rental restrictions of the federal housing program:
(1) For the duration of the term remaining as of the date of prepayment of any mortgage
secured by a development; and
(2) For the duration of the remaining term as of the date of termination, including all
stated and unexercised renewal terms of any rental assistance agreement described
in § 34-45-5.
(c)(1) Not less than ninety (90) days before the effective date of any assistance required
action, the owner of a development shall give a written notice of intent in accordance
with the provisions of this section.
(2) The notice of intent to be sent to each assisted household shall contain a brief summary
of the assistance required action, and shall include:
(i) A summary statement of the assisted household's rights and obligations under this
section;
(ii) Notice that the corporation may have additional information regarding the anticipated
assistance required action; and
(iii) The name, address, and phone number of the owner's agent to whom the assisted household
may apply for tenant protection assistance under this section.
(d) The owner shall provide the tenant protection assistance by:
(1) Paying to each assisted household, an amount equal to the sum of:
(i) The lesser of five hundred dollars ($500) or an amount equal to any security deposit
tenant is required to make and first month's rent and any part of the last month's
rent tenant is required to pay in advance for the tenant's new residence no later
than the date on which the assisted household vacates the unit; and
(ii) Reimbursement to the assisted household for relocation expenses up to four hundred
fifty dollars ($450) which are actually and reasonably incurred; and
(2) Offering to each assisted household which is current in its rent payment and has not
violated any other material term of its lease, a lease extension for a period of at
least one year from the date of the assistance required action.
(e)(1) The portion of rent for the extended lease under subdivision (d)(2) that the tenant
is obligated to pay from tenant's own income may not exceed thirty percent (30%) of
the tenant's income, and may only be increased on the anniversary of the commencement
date of the assisted householder's then current lease.
(2) Any such increase may not exceed the lesser of:
(i) the amount of increase permitted by applicable federal, state, or local law; and
(ii) an amount determined by multiplying the amount required to be contributed by the assisted
household for rent for the preceding year by the percentage increase for the applicable
U.S. consumer price index, as selected by the corporation, for the most recent twelve
(12) month period.
(3) Except as permitted or required by the corporation, all other terms, conditions, and
procedures governing the extended lease shall be the same as the lease in effect on
the day preceding the giving of the notice of intent.
(f) An owner may not take an assistance required action affecting any unit in an assisted
project occupied by a designated household without offering to the assisted household
which is the tenant of the unit a lease extension for a period of at least two (2)
years from the date of the assistance required action, if the designated household:
(1) Is current in its rent payment and has not violated any other material term of its
lease;
(2) Has provided the owner, within thirty (30) days after the giving of the notice of
intent, with a written notice:
(i) Stating that the designated household is applying for an extended lease under this
section; and
(ii) Setting forth facts, as applicable, showing that:
(A) A member of the household is either a person with a disability or a senior citizen
who has been a member of the household for at least twelve (12) months preceding the
giving of the notice of intent; or
(B) A member of the household is a child under the age of ten (10) years; and
(3) Has executed an extended lease and returned it to the owner within thirty (30) days
after the giving of the notice of intent.
(g) The owner shall deliver to each assisted household entitled to receive the notice
of intent, simultaneously with the notice of intent:
(1) An application on which may be included all of the information required by subdivision
(f)(2);
(2) A lease containing the terms required by this section and clearly indicating that
the lease will be effective only if the assisted household executes and returns the
lease not later than thirty (30) days after the giving of the notice of intent; and
(3) A notice setting forth the rights and obligations of the assisted household under
this section.
(h) Within forty-five (45) days after the giving of the notice of intent, the owner shall
notify each assisted household whether it meets the applicable criteria for an extended
lease under subdivision (d)(2) and such notice shall include the approximate ending
date of the extended lease and each designated household which submits to the owner
the documentation required by subdivisions (f)(2) and (3) shall be entitled to notification
by the owner as to the following:
(1) Whether the household meets the applicable criteria of subsection (f), and, if not,
an explanation of which criteria have not been met; and
(2) Whether the extended lease has been effective under subsection (f).
(i)(1) The extended lease of a designated household shall provide for a term commencing on
the date of the assistance required action and terminating not less than two (2) years
from that date.
(2) The initial rate of rent for the extended lease may not exceed an amount which requires
the tenant to contribute more than thirty percent (30%) of the tenant's income.
(3)(i) Annually, on the anniversary of the commencement date of the extended lease of a designated
household, the rental fee for the unit may be increased.
(ii) The increase may not exceed an amount determined by multiplying the amount required
to be contributed by the household for annual report for the preceding year by the
percentage increase for the applicable U.S. consumer price index, as selected by the
secretary, for the most recent twelve (12) month period.
(4) Except as this section otherwise permits or requires, the extended lease of a designated
household shall contain the same terms and conditions as the lease in effect on the
day preceding the giving of the notice of intent.
(j) The extended tenancy provided for in this section shall cease upon the occurrence
of any of the following:
(1) Ninety (90) days after the death of the last surviving member of the assisted household
who was residing in the unit at the date of the notice of intent, or ninety (90) days
after the last member of the assisted household at the date of the notice of intent
has moved from the unit;
(2) Eviction for failure to pay rent due in a timely fashion or violation of a material
term of the lease; or
(3) Voluntary termination of the lease by the designated household.
(k) No later than the date on which the designated household vacates the unit, the owner
shall pay relocation expenses in accordance with this section.
(l) In connection with any assistance required action:
(1) An owner may not terminate or alter the terms and conditions of any leases entered
into before the effective date of the assistance required action, or otherwise take
any action to interfere with any existing rights of tenants to occupy their units
of the assisted project under existing leases or under any applicable federal, state,
or local law;
(2) All tenants shall cooperate with the owner in providing information necessary to certify
eligibility for housing subsidy payments, including execution of all necessary documents.
(m) Notwithstanding any provision of subsections (e) or (f) to the contrary, in the event
that an owner is unable to obtain from the U.S. department of housing and urban development
an extension of existing rental subsidies to cover the lease extension, the owner
shall only be required to provide for each assisted household, whether or not occupied
by a designated household, a lease extension of a period of one year from the date
of the assistance required action; provided, however, that an owner may withdraw funds
from existing reserve and residual accounts of the development to pay any deficit
in the debt service or operating expenses of the development resulting from the tenant's
obligation to pay as rent only, a sum not more than thirty percent (30%) of the tenant's
income as provided in subsection (e), but only to the extent that the withdrawal is
approved by the corporation, approval to be given if adequate funds remain in reserve
and residual accounts, for the maintenance and repair of the development in accordance
with the standards of the corporation.
(n) The owner shall inform those assisted households which the owner has deemed not to
meet the applicable criteria for an extended lease of the reasons the households failed
to meet the criteria, and of their right to appeal the decision to the corporation.
Any assisted household may appeal the decision of an owner to deny the household an
extended lease under subdivision (d)(2) or subsection (f) to the corporation by requesting
in writing an informal hearing before the corporation within ten (10) days of the
owner's decision. The corporation shall hear and resolve the appeal within ten (10)
days of receiving the hearing request, by either affirming the owner's decision or
ordering the owner to execute the appropriate extended lease with the assisted household.