A household that must move because it can no longer afford housing costs after completion of a Federally-funded activity is considered displaced, such as when rents are raised after HOME or CDBG funds are used to rehabilitate a rental project.
To avoid displacement by rehabilitation under the HOME and CDBG Programs, any increased rents that are the result of the CDBG or HOME activity cannot exceed the following:
For low-income households, the greater of:
- 30 percent of monthly "adjusted income";
- 10 percent of monthly "annual (gross) income"; or
- Welfare rent (which applies only to welfare recipients in as-paid localities).
For households above the low-income limit, 30 percent of monthly "adjusted income"
Replacement Housing Payments to Displaced Households
Among other assistance, displaced renter households are entitled to replacement housing payments. In concept, the replacement housing payments are intended to make up the difference between the family's old base monthly rent and the amount the family must pay for housing at its new location.
Go to the HOME Front module "Relocation: 'Just in Time' Assistance" for specific information on determining a household's eligibility for, and the amount of, assistance required under the Uniform Relocation Act (URA) or Section 104(d).