760 CMR 38.00:
DEPARTMENT OF MENTAL HEALTH RENTAL SUBSIDY PROGRAM

38.01: Scope and Purpose
38.02: Definitions
38.03: Eligible Housing Unit
38.04: Eligible Property
38.05: Eligible Resident
38.06: Selection of Residents; Continued Occupancy
38.07: Contract Rent; Occupancy Charge
38.08: Operating Documents
38.09: Responsibilities of the LHA
38.10: Waiver

38.01 Scope and Purpose; Effective Date

(1) 760 CMR 38.00 is promulgated to establish standards and procedures for the provision of rental assistance to units occupied by persons who require supportive residential services.

(2) The following regulations are applicable: 760 CMR 5.00 Eligibility and Selection Criteria 760 CMR 6.00 Occupancy Standards and Tenant Participation for State Aided Housing.

38.02: Definitions

Agency - the Department of Mental Health (DMH) within the Executive Office of Health and Human Services for the Commonwealth of Massachusetts. DMH is responsible for selecting Service Provider Agencies and for allocating rental assistance subsidy funds.

Department - the Department of Housing and Community Development.

Department of Mental Health Rental Subsidy Program - a program to assist low-income households to live in a residential community setting through the provision of consistent residential services. Such services may include medical or mental health and educational services.

Household - a single individual, or two or more persons who live regularly together and whose income and resources are available to meet their mutual needs.

Immediate Family - the owner's spouse, their children, parents, their grandparents, aunts, uncles, nieces and nephews, brothers, or sisters, brother or sister-in-law.

Local Housing Agency (LHA) - a local housing authority established under M.G.L. c. 121B, s.3 or comparable special act, or a non-profit corporation under contract to the Department to administer occupancy of a unit.

Maximum Allowable Rent - the maximum rent which may be paid to the owner of a unit according to policies or guidelines issued from time-to-time by the Department.

Occupancy Charge - the monthly charge to occupy a unit determined pursuant to 760 CMR 38.07.

Rental Assistance - the subsidy program authorized by M.G.L. c. 121B, ss. 42-44A, and St. 1991, C. 138, Line Item 5046-1000, and as thereafter amended.

Resident - an eligible resident pursuant to 760 CMR 38.05.

Service Provider Agency (SP) - a non-profit corporation under contract to DMH, to provide services to households in need of supportive residential services. DMH reserves the right to act as the Service Provider.

State Sanitary Code - 105 CMR 410.00, Minimum Standards of Fitness for Human Habitation.

Unit - an eligible unit pursuant to 760 CMR 38.03.

38.03: Eligible Housing Unit

An eligible housing unit is one or more rooms or an apartment which:

(1) is located in an eligible property pursuant to 760 CMR 38.04;

(2) is leased for occupancy by an eligible resident pursuant to 760 CMR 38.05;

(3) is in compliance with the requirements of the State Sanitary Code and any other applicable state statute, regulations, code or local ordinance.

38.04: Eligible Property

An eligible property is a building, development, rooming, lodging, or boarding house, or private residence which:

(1) is inspected and approved by the LHA:

(2) is certified at initial occupancy by the local Board of Health or other code enforcement agency as in compliance with the State Sanitary Code and where required, with state and local building and fire safety codes;

(3) has one or more eligible units;

(4) is in compliance with local zoning requirements or is exempt from such requirements;

(5) is not owned by the LHA or any public agency.

38.05: Eligible Resident

An Eligible Resident is a Household which is:

(1) financially eligible pursuant to 760 CMR 5.00 (Eligibility and Selection Criteria), as determined by the LHA;

(2) in need of supportive residential services as determined by or pursuant to regulations or program requirements of the Agency;

(3) eligible to participate or participating in a Residential Services Program;

(4) not the owner or manager of the eligible property, or a member of the owner's Immediate Family.

38.06: Selection of Residents; Continued Occupancy

(1) The SP shall select residents to occupy eligible units pursuant to Agency Regulations, policies, and procedures.

(2) Continued occupancy by the resident is determined by the SP pursuant to Agency regulations, policies, and procedures.

(3) The Service Provider shall notify the LHA, in writing, anytime there will be a change in occupancy.

38.07 Contract Rent; Occupancy Charge

(1) The LHA shall determine and authorize the amount of the Contract Rent for the unit. The Contract Rent may include the cost of utilities (except telephone) and shall not exceed the Maximum Allowable Rent for a Unit

(2) The Contract Rent is exclusive of:

(a) any charge for meals, laundry, or other services provided by the SP or the owner;

(b) any charge for residential services, counseling, training, therapy or treatment provided to the resident.

(3) Each Resident shall pay to the SP an Occupancy Charge which shall be 30% of the Resident's net household income if the Resident shall pay for any or all of the following utilities: electricity and any other fuel for heat, hot water or cooking, or which shall be 35% of the Resident's net household income if the Resident shall not pay for any of those utilities. Net household income shall be determined in the manner provided in 760 CMR 6.05(2), (3) and (4). The Occupancy Charge shall be paid monthly and determined re- determined and verified in the manner provided in 760 CMR 6.04 (2)-(9).

(4) The Occupancy Charge shall be paid monthly to the SP which shall promptly forward it to the Owner. The LHA will pay the subsidy portion of the rent (Contract rent minus Occupancy Charge) directly to the Owner.

38.08 Operating Documents

(1) There shall be a written Lease with the owner of the Unit in the form provided from time-to-time by the Department.

(2) The LHA and the SP shall enter into an Agreement for Financial Assistance for the Unit in the form provided from time-to-time by the Department.

38.09: Responsibilities of the LHA

The LHA shall:

(1) enter into a Lease and an Agreement for Financial Assistance for the Unit;

(2) ensure that the eligible property and unit satisfy the requirements of 760 CMR 38.04;

(3) determine the financial eligibility of residents in accordance with 760 CMR 5.00, and determine Occupancy Charges in accordance with 760 CMR 38.07;

(4) determine the appropriate Contract Rent for the unit, in accordance with policies and guidelines issued by the Department;

(5) inspect the Unit on an annual basis.

38.10: Waiver

The provisions of 760 CMR 38.00 may be waived, in whole or in part, provided that the request is in the public interest and not inconsistent with M.G.L. c. 121B.

REGULATORY AUTHORITY
760 CMR 38.00: M.G.L. c.121B, ss.29, 34, 43; c.23B