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GENERAL INFORMATION INCOME: The law provides that a tenant must meet certain eligibility requirements before he can receive rent sup- plements. His income must not be more than $3,000 for one person, or $4,000 for two persons. He must also qualify under one of the following categories: {1) Be displaced by government action, such as urban renewal, code enforcement, highway development, etc., (2) Be 62 years of age or older (husband or wife); {3) Be physically handicapped; (4) Be living in substandard housing; (5) His present or former dwelling must have been destroyed or extensively damaged by natural disaster in an area determined by the Small Business Administration since April 1, 1965, to be a disaster area. ASSETS: Total assets cannot exceed $2,000 unless the applicant is 62 years of age or older, in which case assets may not exceed $5,000. The asset limitation is higher for elderly than for other tenants because elderly persons must often rely on savings to supplement social security or other retirement benefits to pay current living expenses. Cash, checking and savings bank accounts, U. S. Savings Bonds, and other bonds and stocks are con- sidered assets. Real estate and automobiles, less indebtedness, are also considered assets. In addition, assets include the ~cash surrender value of life insurance. Unpaid bills for food and medical expenses may be deducted. Furniture, clothing and other such personal property will not be counted as assets for the purpose 6f determining eligibility. NUMBER OF OCCUPANTS: Since the apartments are one bedroom units, the maximum number of persons allowed to occupy each apartment will be limited to two (2). (FHA requirement). LEASE: Basic landlord-tenant relationship will apply in this project, and tenants may be evicted for violation of lease provisions in keeping with local or state law. Each applicant must be willing to sign a one year lease, which cannot be assigned. The housing owners will comply with the provisions of any local or state laws and with FHA regulations prohibiting discrimination in occupancy on the basis of race, color, creed or national origin of applicants. FURNISHINGS: The owners will furnish a stove and refrigerator for each apartment. All other furnishings must be pro- vided by tenants. (carpets and draperies are provided in some instances). RENT SUPPLEMENT AMOUNT: The amount of each rent supplement will be based on the difference between 25 per cent of the income of the eligible family or individual and the FHA approved rental for the living unit occupied. In no case may the rent supplement exceed 70 per cent of the FHA approved rent for the living unit. The economic rent is calculated by FHA for the area concerned. This amount includes heat, lights, snow removal, lawn mowing, garbage service, hot and cold water, decorating and maintenance. EXAMPLES: FHA Allowable INCOME TOTAL RENT PAID BY TENANT PAID BY FHA $1,800 $ 131.25 $ 40.00 $91.25 2,400 131.25 50.00 81.25 3,000 131.25 63.00 68.25 4,000 131.25 83.00 48.25 The above figures are examples only. Final determination of the supplement in each case will be made by FHA. INVESTORS REAL ESTATE FUND, INC.