Read the full stored bill text
SECOND REGULAR SESSION
HOUSE BILL NO. 2491
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE WEBER.
4365H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o repeal sections 215.300, 215.305, 215.307, 215.31 1, 215.314, 215.316, and 215.327,
RSMo, and to enact in lieu thereof seven new sections relating to senior rental housing
projects.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 215.300, 215.305, 215.307, 215.31 1, 215.314, 215.316, and
2 215.327, RSMo, are repealed and seven new sections enacted in lieu thereof, to be known as
3 sections 215.300, 215.305, 215.307, 215.31 1, 215.314, 215.316, and 215.327, to read as
4 follows:
215.300. As used in sections 215.300 to 215.318, the following terms mean:
2 (1) "Additional subsidies", subsidies provided by the Missouri housing development
3 commission to the owner of a subsidized multifamily rental housing project or senior rent al
4 housing pro ject pursuant to section 215.31 1;
5 (2) "Administering agency", the Missouri housing development commission;
6 (3) "Af fordable rent", a rent amount less than or equal to thirty percent of a family's
7 income;
8 (4) "Expand affor dability", to reduce the cost of the housing to one or more low
9 income tenants;
10 (5) "HUD", the United States Department of Housing and Urban Development, and
11 shall include the Federal Housing Administration and a local housing authority when it is
12 acting to administer a HUD program;
13 (6) "Low income tenant", a tenant who is a person or group of persons residing in the
14 same housing accommodation so long as the total income for all such persons for the most
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
15 recent twelve-month period is less than or equal to fifty percent of the median income for the
16 area, as defined by HUD, in accordance with section 1437a, T itle 42, United States Code;
17 (7) "Low income unit", a housing unit for which the annual rental char ge is less than
18 or equal to thirty percent of the maximum annual income for a low income tenant;
19 (8) "Middle income senior tenant", a tenant who meets the requi rem ents
20 established in 24 CFR Subpart E or a gro up of persons r esiding in the same housing
21 accommodation headed by a person who meets the req uiremen ts established in 24 CFR
22 Subpart E, so long as the total income for all such persons for the most recen t twelve-
23 month period is mor e than eighty per cent but less than or equal to one hundred twenty-
24 five per cent of the median income for the ar ea, as defined by HUD, in accordance with
25 Section 1437a, T itle 42, U.S.C.;
26 (9) "Middle income senior unit", a housing unit for which the annual rent al
27 charge is less than or equal to thirty per cent of the maximum annual income for a
28 middle income senior tenant;
29 (10) "Moderate income tenant", a tenant who is a person or group of persons residing
30 in the same housing accommodation so long as the total income for all such persons for the
31 most recent twelve-month period is more than fifty percent but less than or equal to eighty
32 percent of the median income for the area, as defined by HUD, in accordance with section
33 1437a, T itle 42, United States Code;
34 [ (9) ] (1 1) "Moderate income unit", a housing unit for which the annual rental char ge
35 is less than or equal to thirty percent of the maximum annual income for a moderate income
36 tenant;
37 [ (10) ] (12) "Mortgage prepayment", repayment of outstanding debt on a loan issued
38 pursuant to a federal mortgage insurance program, prior to the maturity date of the loan;
39 [ (1 1) ] (13) "Multifamily rental housing project", a building or buildings under
40 common ownership and containing four or more rental units that were constructed or
41 substantially rehabilitated pursuant to a federal mortgage insurance program;
42 [ (12) ] (14) "Prepayment restriction", any limitation imposed by the federal
43 government with regard to the repayment of outstanding debt on a loan issued pursuant to
44 a federal mortgage insurance program, prior to the maturity date of the loan, without the prior
45 approval of the secretary of the Department of Housing and Urban Development ;
46 (15) "Senior ren tal housing pr oject", a building or buildings under common
47 ownership and containing four or mor e rent al units that wer e constructed or
48 substantially r ehabilitated pursuant to a federal mortgage insurance progra m and are
49 r estricted to tenants who meet the requ irem ents established in 24 CFR Subpart E or a
50 gr oup of persons r esiding in the same housing accommodation headed by a person who
51 meets the re quir ements established in 24 CFR Subpart E .
HB 2491 2
215.305. The provisions of sections 215.300 to 215.318 shall apply to all multifamily
2 rental housing projects and senior r ental housing pr ojects in any city or town in this state
3 constructed or substantially rehabilitated pursuant to sections 236 and 221(d)(3) of the
4 National Housing Act, as amended.
215.307. Any owner of a multifamily housing project or senior rent al housing
2 pr oject subject to the provisions of sections 215.300 to 215.318 which is or will become
3 eligible for mortgage prepayment without the prior approval of the secretary of the
4 Department of Housing and Urban Development shall be eligible for additional subsidies
5 under the provisions of sections 215.300 to 215.318.
215.31 1. 1. An owner of a multifamily rental housing project or senior rent al
2 housing pr oject seeking additional subsidies for the property shall file with the Missouri
3 housing development commission a request for subsidies in such form and manner as the
4 Missouri housing development commission shall prescribe. Upon receipt of a notice of
5 intent, the Missouri housing development commission shall provide the owner with such
6 information as the owner needs to prepare a plan to expand af fordability , which information
7 shall include a description of the state incentives authorized under sections 215.300 to
8 215.318 and the affor dability restrictions placed on properties whose owners are granted the
9 additional subsidies. The owner may submit the plan to expand af fordability to the Missouri
10 housing development commission in such form and manner as the Missouri housing
11 development commission shall prescribe.
12 2. The plan to expand af fordability shall include:
13 (1) A description of any incentive that the owner is requesting from the state or local
14 government agencies as determined by prior consultation between the owner and any
15 appropriate state or local agencies;
16 (2) An assessment of the ef fect of the grant of the proposed incentives on present and
17 future tenants dwelling at the property , including, but not limited to, af fordability and
18 maintenance of units of the property;
19 (3) Any other information that the Missouri housing development commission
20 determines is necessary to achieve the purposes of sections 215.300 to 215.318.
21 3. The owner may from time to time revise and amend the plan of action as may be
22 necessary to obtain approval of the plan under this section.
23 4. After receiving a plan of action from an owner of a multifamily rental housing
24 project or senior ren tal housing pr oject , the Missouri housing development commission
25 may enter into such agreements as are necessary to satisfy the criteria for approval under
26 section 215.314.
HB 2491 3
27 5. Such agreements may include the provision to the owner by the state or local
28 government of one or more of the following incentives that the Missouri housing
29 development commission determines to be necessary including:
30 (1) State income tax credits, pursuant to section 32.1 15;
31 (2) Recommendations to local governments to grant property tax abatements;
32 (3) Financing for second mortgages from the housing development fund as
33 established by section 215.050;
34 (4) Grants from the housing development fund as established by section 215.050.
215.314. The Missouri housing development commission shall not make additional
2 subsidies to a multifamily rental housing project or senior r ental housing pro ject unless the
3 owner enters into such agreements with the state or local government agency as are necessary
4 to assure that:
5 (1) The housing will be retained as housing af fordable for low income families or
6 persons, [ and ] moderate income families or persons , and middle income senior -headed
7 families or seniors for the remaining term of the mortgage or until the term of any subsidy
8 contract expires or an additional twenty years, whichever is longer , and throughout such
9 extended period, adequate expenditures shall be made for maintenance and operation of the
10 housing;
11 (2) The owner shall not char ge or attempt to char ge rents in excess of those deemed
12 af fordable to low income families for forty percent of those units becoming available to new
13 tenants following vacation of a subsidized unit by previous tenants, and the owner shall not
14 char ge or attempt to char ge rents in excess of those deemed affor dable to moderate income
15 families for the remaining sixty percent of the subsidized units becoming available following
16 vacation by previous tenants;
17 (3) Following any vacation of a moderate or low income unit by its occupants the
18 owner shall rent the unit to a household that qualifies as a low income household or moderate
19 income household on its initial occupancy of the unit;
20 (4) (a) The owner shall not charge or attempt to charge r ents at a senior r ental
21 housing pro ject in excess of those deemed affordable to low income families for thirty
22 per cent of units becoming available to new tenants following vacation of a subsidized
23 unit by pr evious tenants;
24 (b) The owner shall not charge or attempt to charge r ents in excess of those
25 deemed affordable to moderate income families for thirty per cent of the subsidized units
26 becoming available following vacation by pr evious tenants; and
27 (c) The owner shall not charge or attempt to charge rent s in excess of those
28 deemed affordable to middle income senior tenants for the re maining forty perc ent of
29 the subsidized units becoming available following vacation by pr evious tenants;
HB 2491 4
30 (5) Following any vacation of a middle income senior unit by its occupants, the
31 owner shall ren t the unit to a tenant who qualifies as a middle income senior tenant on
32 the tenant's initial occupancy of the unit;
33 (6) The owner shall not increase rents on additional subsidy units more than one time
34 every twelve months nor by more than a percentage amount equal to the percentage increase
35 in the CPI for the preceding year unless the administering agency approves a greater increase
36 due to extraordinary circumstances;
37 [ (5) ] (7) The owner shall seek to retain, renew , extend and utilize, to the greatest
38 extent feasible, any financing or subsidy arrangements available to the project which would
39 expand the affor dability of the housing;
40 [ (6) ] (8) The owner shall not refuse to accept housing vouchers and section 8 existing
41 housing certificates from tenants in partial payment of rent due;
42 [ (7) ] (9) The owner shall not discriminate against any household desiring to rent a
43 subsidized unit on the basis of the household's receipt of any public assistance payments or
44 utilization of housing vouchers or section 8 existing housing certificates;
45 [ (8) ] (10) Each year following grant of the additional subsidies, no later than sixty
46 days following the anniversary date of the first grant of additional subsidies, the owner of the
47 multifamily rental housing project or senior ren tal housing project shall submit a written
48 certification to the administering agency on a form provided by the administering agency
49 which set forth the rent of each additional subsidy unit held by the owner as of the date of the
50 certification and which certifies to the administering agency that the occupants of each
51 additional subsidy unit qualified as a low income household or moderate income household
52 on the date of initial occupancy of the additional subsidy unit by that household;
53 [ (9) ] (1 1) Any tenant residing in a multifamily rental housing project or senior r ental
54 housing pr oject receiving additional subsidies may petition the administering agency for a
55 downward adjustment of rent, if the tenant is paying rent in excess of thirty percent of his
56 income.
215.316. Prior to entering agreements to grant additional subsidies to the owner of a
2 subsidized multifamily rental housing project or senior rent al housing pr oject , the Missouri
3 housing development commission shall consult with the owner , the tenants, the local
4 government, and HUD and shall hold a public hearing. The Missouri housing development
5 commission shall give due consideration to any comments submitted by the tenants and the
6 local government with regards to the expansion of af fordability .
215.327. After August 28, 1994, before the commission approves any assistance for
2 multifamily rental housing or senior rent al housing of twelve or more units, the commission
3 shall notify the chief elected of ficial of the city or , if not within a city , notify the chief elected
4 of ficial of the county in which proposed site is located, of the request to the commission for
HB 2491 5
5 assistance for multifamily rental housing or senior rent al housing and invite written
6 comments from the chief elected of ficial of the city or county within thirty days before taking
7 action on the assistance request.
✔
HB 2491 6