Title
a. Receive a report on rental income generated by the Kents Court affordable housing development; and,
b. Recommend that the Board of Supervisors approve basing Kents Court rents on annual tenant certified incomes.
Body
RECOMMENDATION:
It is recommended that the Health, Housing, Homelessness, and Human Services Subcommittee:a.
a. Receive a report on rental income generated by the Kents Court affordable housing development; and,
b. Recommend that the Board of Supervisors approve basing Kents Court rents on annual tenant certified incomes.
SUMMARY:
The Health, Housing, Homelessness, and Humans Services Committee is being asked to receive a report on how rents at the County owned Kents Court residential property are currently structured and make a recommendation to the full Board of Supervisors on a new rent structure. The current rent structure is based on requirements developed more than 15-years ago to repay a state loan used to purchase the manufactured homes and is inconsistent with the requirements of Section 50053(b) of the California Health and Safety Code, which defines affordable rents. The recommended changes to the rent structure will bring the property into compliance with the Health and Safety Code and generate additional revenue to finance ongoing property maintenance. The staff recommendation is to establish individual tenant rents based on annual certified household incomes with a reasonable allowance for tenant-purchased utilities.
DISCUSSION:
Kents Court is a 19-unit manufactured home community owned by the County and located in Pajaro. The County took ownership of the community in 2010, in-lieu of foreclosing on a loan by the Redevelopment Agency of the County of Monterey to South County Housing (SCH). The Agency loan and California Housing Finance Agency (CalHFA) were used to purchase the manufactured units and make necessary site improvements. SCH made the required payments for the Agency to retire the CalHFA debt, b...
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