HomeMy WebLinkAbout22-1773RESOLUTION NO. 22-1773
A RESOLUTION OF THE CITY OF DENTON, TEXAS, APPROVING THE AMENDEDDEVELOPMENT FEE GRANT PROGRAM; ESTABLISHING THE AMENDEDGUIDELINES FOR THE PROGRAM AND THE AMENDED PROVISIONS FORENFORCEMENT THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Denton, finds that affordable housing and
nonprofit facilities within the City limits contribute to a stronger economy and better quality of
life for residents; and
WHEREAS, the City of Denton recognizes the need to support low-income households in
securing safe, sanitary, and affordable housing; and
WHEREAS, the City of Denton recognizes the need to encourage the preservation of
existing and construction of new accessible public facilities in Denton to support low-income
households with access to supportive services; and
WHEREAS, the City of Denton recognizes that financial support of nonprofit
organizations serves a public purpose; and
WHEREAS, pursuant to initiatives adopted by the City Council of the City of Denton as
part of the Consolidated Plan for Housing and Community Development, staff has developed a
development fee grant program to assist with the building permits and utility fees, including road,
water and wastewater impact fees for facilities that provide social and supportive services to
Denton residents; and
WHEREAS, the City of Denton has previously adopted resolutions authorizing aDevelopment Fee Grant Program with Ordinance 20-263; and
WHEREAS, the City of Denton now desires to amend the Development Fee Grant Programguidelines; NOW, THEREFORE
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and recitations contained in the preamble of this resolution are
incorporated herein by reference.
SECTION 2. The City Council approves the Revised Development Fee Grant Program
Guidelines, which are attached hereto and made a part of this resolution for all purposes, and
authorizes the City Manager and the department of Community Services of the City of Denton to
distribute funds and undertake any administrative actions necessary to implement this program.
The attached guidelines shall replace and supersede any previous Development Fee Incentive
Grant Program Guidelines adopted by the City Council.
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SECTION 3. This resolution shall become effective immediately upon its passage and
approval.
Th, m,ti,. t, ,pp„,, thi, „„1„ti,n \„, made by %tM Mk and seconded
by Jesse Dauis , the resolution was passed and approved by the
following vote Ul - A :
Aye
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Nay Abstain Absent
Gerard Hudspeth, Mayor:
Vicki Byrd, District 1 :
Brian Beck. District 2:
Jesse Davis. District 3 :
Alison Maguire, District 4:
Brandon Chase McGee, At Large Place 5 :
Chris Watts, At Large Place 6:
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PASSED AND APPROVED thi, th, INh day of OC+Dber 2022
GERAR'D/H &PETH. MAYOR
ATTEST: DePUTy&OSAneS. CITY SECRETARY
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APPROVED AS TO LEGAL FORM:
MACK REINWAND, CITY ATTORNEY
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DEVELOPIVIENT FEE
GRANT PROGRAIVI
PURPOSE AND SCOPE
Pursuant to initiatives adopted by the City Council of the City of Denton as part of the Consolidated Plan
for Housing and Community Development, the City of Denton recognizes that safe, decent, affordable
housing and accessible public facilities are an important part of a community development strategy. The
purpose of the Development Fee Grant (the “Program”) is to assist with the development and
preservation of affordable housing and with the delivery of supportive services that are essential to
quality of life and that support resilient, stable and diverse neighborhoods.
There are two categories of projects eligible for this Development Fee Grant:
1. DEVELOPMENT FEE GRANT – AFFORDABLE HOUSING PROJECrs
In collaboration and partnerships with local nonprofits, the City is offering the Program as an
incentive for single-family affordable housing to:
• Reduce the housing cost burden for income-qualified families;
• Increase homeownership opportunities for income-qualified families; and
• Encourage preservation of existing and construction of new affordable housing in Denton.
2. DEVELOPMENT FEE GRANT – Nonprofit Facility Projects
In collaboration and partnerships with local nonprofits, the City is offering the Program as an
incentive for supportive services provision to:
• Reduce barriers to residents in need to receive assistance through supportive services;
• Increase access to supportive services;
• Encourage preservation of existing and construction of new accessible public facilities in Denton.
The Program, provided as a reimbursement grant, will assist eligible organizations and building projects
with the cost of building permits and development fees, including utility, road, water and wastewater
impact fees. This document sets forth the administrative process for the application, implementation
and compliance requirements of the Program.
DEVELOPMENT FEE GRANT PROGRAM
01. QUALIFIED NONPROFIT ORGANIZATION
The entity must be an organization exempt from taxation pursuant to26 U.S.C. Section 501(c)(3); and
• Have a corporate purpose that meets the definition of charitable
as set forth in 26 U.S.C. Section 501(c)(3) that is stated in its articlesof incorporation, by-laws, or charter;
• Have been incorporated in this state of Texas for at least two years;
• Have none of its earnings inured to any private shareholder or
individual;
Have at least one-fourth of its board of directors residing in Denton;
Engage primarily in services for low- to moderate-income individuals and families.
Who is Eligible?
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SINGLE-FAMILY AFFORDABLE HOUSING PROJECrs
Grantee must be a Qualified Nonprofit Organization; or
Grantee must be an income-qualified homeowner eligible for housing programs supported by
the City’s CDBG or HOME funds.
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NONPROFIT FACILITY PROJECTS
The Qualified Nonprofit Organization facility must provide housing or human services to Denton
residents inside the building; and
NONPROFIT FACILITY PRIORITIES
Projects will be reviewed and ranked with the following considerations.
-->Facility provides low-barrier access to permanent supportive housing for persons
experiencing homelessness.
Facility provides low-barrier access to transitional or emergency housing for persons
experiencing homelessness.
Facility provides housing and/or supportive services for persons experiencing or at-risk ofhomelessness.
Facility provides physical health, mental health and/or behavioral health care to uninsured
and other income-qualified persons.
Facility provides services to victims of abuse or neglect.
Facility provides sliding scale or other fees subsidized quality child care program for children
and youth.
Facility provides services to the elderly or infirm.
Facility provides services to persons with disabilities.
All other facilities that do not provide direct services to people but are a Qualified Nonprofit
Organization.
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DEVELOPMENT FEE GRANT PROGRAM
02. ASSISTANCE
The Program will assist Qualified Nonprofit Organizations with a
reimbursement grant for the cost of permits and development fees,
including but not limited to
Building permit fees including plan•
temporary power and fence permits;
Roadway Impact Fees; and•
Utility Fees including water and wastewater impact fees•
review, building permits,
What Assistance?
To be eligible the Single-Family Affordable Housing Unit or Nonprofit Facility must meet the
requirements of all applicable City Codes, Zoning, and related development regulations. In addition, the
following requirements apply.
SINGLE-FAMILY AFFORDABLE HOUSING PROJECTS
The Affordable Housing unit must be a new single-family residential unit developed by a Qualified
Nonprofit Developer and/or a new or existing single-family residential unit qualifying for a housing
program supported by the City’s CDBG or HOME funds.
NONPROFIT FACILITY PROJECTS
The Qualified Nonprofit Organization building must be open to the public and provide housing or
supportive services to Denton residents inside the building.
}3. AIVIOUNT
The total grant funds available for the Program shall be limited to an
amount set by City Council on an annual basis. All Program grants will
be approved or denied solely at the discretion of the City of Denton,
subject to the Program requirements and the availability of funds.
Each request will be considered on a case-by-case basis until grant
funds are expended.
':' SINGLE.FAMILY AFFORDABLE HOUSING PROJECTS
Qualified Nonprofit Developers of Affordable Housing units and eligible homeowners participating
in housing programs supported by the City’s Community Development Block Grant (“CDBG") and/or
HOME Investment Partnership (“HOME”) funds may be eligible for a grant award up to a maximum
cost of $12,000 per unit.
$ NONPROFIT FACILITY PROJECTS
Qualified Nonprofit Organizations may be eligible for a grant award for some or all the development
fees up to a maximum per project cost of $50,000.
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DEVELOPMENT FEE GRANT PROGRAM
04. MONITORING AND COMPLIANCE
Once the grant is approved, to avoid repayment of fees, the project
must meet the minimum compliance requirements and the City
reserves the right to periodically monitor the Affordable Housing Unitor Public Facility to ensure ongoing compliance during the 5-year
compliance period. The following sources of verification may be used:• Income Verifications.
• Compliance with applicable City Municipal Codes and Ordinances.
Title report search.•
Lien and ownership search in the applicable County Clerk’s Office online records.
Ownership verification in applicable tax office appraisal records.
Scheduled Onsite Visit and/or Inspection.
What Compliance?
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05. LllVlITATIONS
To ensure the program funds are dispersed equitably and are available
for a variety of projects, the following limits apply:
No grant applications will be accepted for work that has alreadybeen started or completed, or for work that is covered byinsurance.
Grants are awarded on a reimbursement basis once completed
work has been verified by City staff as compliant with the project
proposed in the approved application.
or another city debt.
The Qualified Nonprofit Organization will not be eligible for the Program if the entity owes city
ad valorem taxes, other city debt, or has code or other accessibility violations on any previous
units, facilities, or projects.
The project cannot be in partnership with a for-profit entity.
The applicant cannot have any unexpended/open grant funds from any other City grant for the
same Affordable Housing or Public Facility project.
Duplication of Benefits: A duplication of benefits (DOB) occurs when a person, household,
business, government, or other entity receives financial assistance from multiple sources for the
same purpose, and the total assistance received for that purpose is more than the total need for
assistance. In other words, you may not be eligible for these funds if you have already received
assistance from other federal, local or private sources to the extent that other assistance covers
any portion of your request.
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Homeowners will not be eligible for the Program if the homeowner owes city ad valorem taxes
What Limitations?
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AFFORDABLE HOUSING GEOGRAPHIC LIMITATIONS
The City of Denton seeks to encourage an equitable distribution of Affordable Housing in all parts of
Denton. A Qualified Nonprofit Developer seeking the Development Fee Grant for an affordable housing
project must demonstrate it has made reasonable attempts to reduce the isolation of income groups
within a geographic area by expanding and dispersing affordable housing units throughout the City
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DEVELOPMENT FEE GRANT PROGRAM
Preference in the grant program will be given to projects that promote the spatial deconcentration of
affordable housing. Projects that do not promote an equitable distribution of Affordable Housing may
be eligible for the Program if the Qualified Nonprofit Developer demonstrates that there are limited
options for geographic deconcentration due to limited availability of affordable parcels of land, owner
choice for location of home, projects retain a property already affordable, etc.
06. PROCESS
Qualified Nonprofit Organizations requesting to participate in the
Program must submit a completed Development Fee Grant Application
and submit it to the City of Denton. Applicants receiving the grant will
be required to enter into an agreement with the City of Denton that
require the applicant to comply with the Program Requirements.
What is the Process?
The process is described in Parts A, B and C below.
PART A. APPLICATION SUBMISSION REQUIREMENTS
An application for participation in the Program is available online or can be obtained from and returned
to Community Development, located at 401 N Elm St, Denton, TX 76201. The application must be
completed in its entirety, signed, and submitted together as described. Application must be provided to
Community Development at least 2 weeks prior to application for applicable permits.
1.TO APPLY
(a) Complete the Application Packet including all required Attachments:
1) Documentation of incorporation and 501(c)(3) nonprofit status including Articles of
Incorporation, and letter from Secretary of State’s Office showing corporation
currently in good standing and any documentation from internal revenue service
showing tax exempt, non-profit status.
2) List of Board of Directors members and officers including contact information.
3) Project budget including a list of all financing sources. Include copies of award letters
or other documentation of secured financing.
4) Project timeline including the date by which construction will be completed.
5) Estimates detailing the construction costs.
6) Site Plan with Building Elevations
7) Title search &/or Title Policy, Deed
8) Affordable Housing: also include unit price schedule and estimated sales price
(b) The fees eligible under the Program are:
1) Building Permit Fees:
• Plan review;
• Building permits;
• Temporary power; and
• Fence permits;
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DEVELOPMENT FEE GRANT PROGRAM
2) Roadway Impact Fees, when applicable; and
3) Utility Fees, including Water and Wastewater Impact Fees.
2.APPLICATION REVIEW PROCESS
(a) The Program grant approval will be based upon verification that the proposed project and
the applicant are eligible for the Program.
1) Applications must be complete and contain all required information.
2) Applicant must be a Qualified Nonprofit Organization (PART B. DEFINITIONS).
3) Affordable Housing Unit (PART B. DEFINITIONS) must be an owner-occupied single
family residential home owned by or sold to an income qualified household.
4) Public Facility (PART B. DEFINITIONS) must be owned and operated by the Qualified
Nonprofit Organization or the Qualified Nonprofit Organization must have a long-term
lease agreement that extends beyond the 10-year compliance requirement.
5) Public Facility must be open to the public and have the primary purpose to serve
Denton residents with housing or human services.
6) Project cannot be in partnership with a for-profit entity.
7) All development projects must meet current City building standards and codes, as well
as building permit requirements. Project must be properly zoned and be situated
within the city limits of Denton.
8) The project will not be eligible for the Program if the homeowner owes city ad valorem
taxes or another city debt or the Qualified Nonprofit Organization if the entity owes
city ad valorem taxes, other city debt, or has code or other accessibility violations on
any previous units, facilities, or projects.
9) No grant applications will be accepted for work that has already been started or
completed, or for work that is covered by insurance.
10) Applicant cannot have any unexpended/open grant funds from any other City grant
for the same Affordable Housing or Public Facility project.
11) Project timeline should include the ability to commence construction within ninety
(90) days from the date the grant is approved and complete construction within
fifteen (15) months from the date the grant is approved
(b) After review by City staff for compliance with the Program, an agreement will be prepared
by Community Development and presented to City Council for approval. The Denton City
Council has the final discretion regarding funding and reserves the right to modify or
reject any project or elements of any project.
(c) Upon approval of City Council, the City Manager will execute the agreement documents.
The applicants will receive the agreement and the Authorization Form as verification of
the grant award.
3. APPROVED APPLICATIONS
(a) The applicant is required to obtain all applicable City permits and City approvals required
for the construction if a grant is awarded.
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DEVELOPMENT FEE GRANT PROGRAM
(b) Applicants receiving approval shall commence construction described within the
application within ninety (90) days from the date the grant is awarded. All
applicants must complete the construction described in the application within
fifteen (15) months from the date the grant is approved.
If the applicant is unable to commence construction within ninety (90) days from the
date the grant is approved or complete construction within fifteen (15) months from
the date the grant is approved, the applicant may submit a written request for an
extension for the commencement date or completion date provided the extension
request is made prior to the ninety (90) day or fifteen (15) month time limit.
The City shall not be obligated to allow extensions but may do so for good cause
determined solely by the entity that authorized the grant. The extensions, if granted,
shall be for the term and for the conditions determined exclusively by the entity that
authorized the grant. An extension denial cannot be appealed and shall be final.
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4. DENIED APPLICATIONS
An applicant whose application has not been approved by the Denton City Council shall not
be eligible to re-submit a grant application for six (6) months from the date the prior
application was declined by the Denton City Council.
5. COMPLAINTS AND APPEALS
The Program has developed a complaint and appeals process, which can be provided to an
Applicant upon request.
6.REIMBURSEMENT
When the full development project or a portion of the project has been satisfactorily
completed and work inspected, the applicant shall present the Community Development
office with a copy of the Authorization Form and copies of all paid invoices, including copies
of cancelled checks and/or credit card receipts, for reimbursement of the funds up to the
maximum approved grant funding. In addition, the applicant must complete a City of Denton
Vendor Form and a Form 1099 to receive payment from the City. Vendor forms and 10995
will be provided by the Community Development office.
7.INTERNAL TRANSFER
Upon request, program grant funds may also be transferred by Community Development to
the appropriate City department upon issuance of an Authorization Form . Community
Development staff will provide the Authorization Form to the Building Official identifying the
service addresses of the Affordable Housing unit or Public Facility selected to receive grant.
The Authorization Form approving the grant funding must be provided before the issuance of
a building permit authorizing the start of construction.
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DEVELOPMENT FEE GRANT PROGRAM
8.MONITORING/COMPLIANCE
To avoid repayment of fees, the project must meet the minimum requirements, including:
(a) As a condition of the grant, the applicant consents and shall allow City staff to request
City inspections to determine that the grant, if awarded, will not be used for construction
on any building that is not in compliance with the City Municipal Codes and Ordinances
that are applicable to the construction contemplated in the application.
(b) Complete repair/renovation/construction within fifteen (15) months of the issuance of
the Authorization Form.
(c) Provide records and reports as requested by the City through the term of the agreement.
(d) Properties receiving a grant will be offered this assistance that is secured by a lien on the
property. The lien will be removed upon compliance with the program terms and
conditions and completion of the Affordability Period. Properties that currently have
affordability requirements through the State of Texas (for example, TDHCA) or Federal
Government (for example, HUD) may not be subject to lien requirements.
Properties that can document the required affordability period is consistent with these
program guidelines will not be subject to a property lien.
(e) if the Single-Family Affordable Housing Unit or Nonprofit Facility does not comply with
the terms of the agreement, note, and deed of trust, the applicant is required to repay
the grant to the City.
(f) Single-Family Affordable Housing Units eligible for the program must meet the following
requirements:
1) The Affordable Housing unit must be a new single-family residential unit developed
by a Qualified Nonprofit Developer and/or a new or existing single-family residential
unit qualifying for a housing program supported by the City’s CDBG or HOME funds.
2) The Affordable Housing unit must meet the requirements of all applicable City Zoning,
Codes and other applicable regulations.
3) The price set for the Affordable Housing unit must meet affordability requirements as
defined in PART B. DEFINITIONS.
4) Owner must be an income-qualified individual or household as defined in PART B.
DEFINITIONS
5) Homebuyer(s) and homeowner(s) must own and live in the affordable housing unit
for at least five (5) years.
6) Compliance with these provisions will be secured by a lien on the property with a five-
year term beginning on the date of execution of the grant agreement.
7) Provide prior to sale of newly constructed:
• Verification of the homebuyer’s income eligibility and defined in PART C.
SELECTION OF PROPERTY OWNERS/SCREENING PROCESS;
Copy of new home contract indicating final cost of the single-family residential
unit and affordability period at least 10 years; and
Copy of Homebuyer’s Mortgage Commitment Letter.
Copy of Final Title search &/or Title Policy, Deed
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DEVELOPMENT FEE GRANT PROGRAM
(g) A Nonprofit Facility eligible for the program must meet the following requirements:
1) At the date of project completion, provide supportive services to income eligible
residents for a period of 5 years in the assisted facility.
2) All housing, buildings and property must meet the requirements of all applicable City
Codes, Zoning and development regulations.
3) Compliance with these provisions will be secured by a lien on the property with a
term beginning on the date of execution of the grant agreement and ending five
years after the date of project completion.
(h) City reserves the right to periodically monitor the Single-Family Affordable Housing Unit
or Nonprofit Facility to determine if it was transferred, sold or no longer providing the
same services in the same location as when the reimbursement grant was provided. The
following sources of verification may be used:
• Title report search
• Lien and ownership search in the applicable County Clerk’s Office online
records
Ownership verification in applicable tax office appraisal records
Scheduled Onsite Visit and/or Inspection
(i) if the assisted property is sold, transferred, or ownership interest in the property is
conveyed during five (5) year compliance period, the grant amount of assistance will
become immediately due and payable. To avoid repayment of fees:
1) if a Single-Family Affordable Housing Unit can be resold to an income eligible
household, repayment of fees will not be required. Income information for any new
homeowners that will occupy the assisted unit must be available for review by the
Community Development staff.
2) if the Nonprofit Facility is sold or transferred to another Qualified Nonprofit who wiI
be providing a service as described in Section 0 1. Nonprofit Facilities Priorities
repayment of fees will not be required.
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PART B. DEFINITIONS
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shall have the meanings ascribed to them in this section, except where the context clearly indicates a
different meaning:
A. Affordable Housing:
Affordable Housing means owner-occupied single family residential homes owned or sold to a
family that qualifies for the City of Denton CDBG and HOME housing assistance programs or has
a purchase price and gn estimated appraised value at acquisition that does npt exceed value
limits established and published annually by U.S. Department of Housing and Urban
Development in Section 92.254(a)(2)(iii) of the Final Rule of the HOME regulations, as amended.
B. Income Qualified Individuals and Families:
An individual or family whose annual income is less than eighty percent (80%) of the area median
income, with allowable adjustments, as determined and annually updated by U.S. Department
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DEVELOPMENT FEE GRANT PROGRAM
of Housing and Urban Development. Household income cannot exceed eighty (80) percent of the
Area Median Income Limits, adjusted for family size.
C.Public Facility:
Buildings and property which are owned, leased for a period that extends beyond the grant’s 5-
year required compliance period and operated by a Qualified Nonprofit; or project funded by a
governmental body or public entity for the purpose of providing affordable housing or supportive
services to people in need of assistance.
D.Qualified Nonprofit:
A nonprofit organization that develops housing for income qualified individuals and families
as a primary activity to promote community-based revitalization of the municipality; or
A nonprofit corporation described by 26 U.S.C. Section 501(c)(3) that:
a. has been incorporated in this state of Texas for at least two years;
b. has a corporate purpose to develop affordable housing that is stated in its articles of
incorporation, by-laws, or charter;
c. has at least one-fourth of its board of directors residing in Denton; and
d. for a Qualified Nonprofit Developer, it must engage primarily in the building, repair, or
sale of housing for income qualified individuals and families.
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E. Single Family Residential:
A stand-alone single-unit family residence detached from other housing structures and does not
include a multi-family residential dwelling.
PART C. SELECrION OF OWNERS/SCREENING PROCESS FOR AFFORDABLE HOUSING PROJECTS
For all Affordable Housing projects, an income packet for participation must be submitted to Community
Development Division, located at 401 N Elm Street, Denton, TX 76201. The packet must be completed in
its entirety and submitted together with the following documentation:
1. Household Application Form
2. Social Security Card & Photo ID – a copy of SS card for each household member plus a copy
of a state issued photo ID or driver’s license for all household members 18 years and older
3. General Certification of Income - to be completed by all household members 18 years andolder
4. Income Tax Return – Current Year – Signed copy with W-2’s and attachments - for each
member of household that filed a Tax Return.
• if self-employed a signed copy with W-2s and attachments will be needed for most
current 3 years.
5. Did Not File an Income Tax - to be completed by all household members 18 years and older
who did not file a Tax Return.
6.Paycheck Stubs for the last 4 Weeks - for all household members 18 years and older
7. Verification of Employment – completed by each working household member 18 years and
older
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DEVELOPMENT FEE GRANT PROGRAM
8. Social Security Income Statement - current year that states income received for each
individual and a signed Consent for Release of Information form by all household members
receiving Social Security Benefits.
9. Retirement/Pension Benefit Statement – that states current income received or a signed
Employment Retirement Request form by all household members receiving
retirement/pension benefits
10. Complete Bank Statements (Checking/Savings) for the last 2 Months for all householdmembers who have bank accounts, an explanation of all deposits is required, with
explanations dated and initialed by applicant.
11. Other Income Information - for all household members who have any other type of income
ex: Child Support, Insurance Policies, Self-Employment, TANF, Stocks, Bonds, 401K, Annuity,
interest income, etc.
12. Additional items as reasonably requested by the City.
Current eligible income limits: https://www.huduser.gov/portal/datasets/il.html
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