HOUSING AUTHORITY OF THE COUNTY OF SACRAMENTO CALIFORNIA HOUSING CHOICE VOUCHER PROGRAM DRAFT - ADMINISTRATIVE PLAN 2008 Chapter 1 STATEMENT OF POLICIES AND OBJECTIVES A. PUBLIC HOUSING AUTHORITY MISSION STATEMENT......................................1-1 B. LOCAL OBJECTIVES....................................................................................................1-1 C. PURPOSE OF THE PLAN..............................................................................................1-2 D. FAIR HOUSING POLICY..............................................................................................1-3 E. REASONABLE ACCOMMODATIONS POLICY........................................................1-3 F. FAMILY OUTREACH...................................................................................................1-6 G. PRIVACY RIGHTS.........................................................................................................1-6 H. OWNER OUTREACH....................................................................................................1-7 I. MANAGEMENT ASSESSMENT OBJECTIVES..........................................................1-7 J. RECORDS FOR MONITORING PHA PERFORMANCE............................................1-8 K. LANGUAGE ASSISTANCE FOR LIMITED ENGLISH PROFICIENCY PERSONS.1-9 Chapter 2 ELIGIBILITY FOR ADMISSION A. FACTORS AFFECTING ADMISSION.........................................................................2-1 B. FAMILY COMPOSITION..............................................................................................2-3 C. INCOME LIMITATIONS...............................................................................................2-7 D. MANDATORY SOCIAL SECURITY NUMBERS.......................................................2-7 E. CITIZENSHIP/ELIGIBLE IMMIGRATION STATUS.................................................2-8 F. TENANT SCREENING..................................................................................................2-9 G. CHANGES IN ELIGIBILITY PRIOR TO EFFECTIVE DATE OF THE CONTRACT...................................................................................................2-10 H. INELIGIBLE FAMILIES..............................................................................................2-10 Chapter 3 APPLYING FOR ADMISSION A. OPENING/CLOSING OF THE WAITING LIST...........................................................3-1 B. OVERVIEW OF THE APPLICATION PROCESS........................................................3-2 C. APPLICANT STATUS WHILE ON WAITING LIST...................................................3-3 D. CHANGE IN APPLICANT STATUS.............................................................................3-3 E. VERIFICATION..............................................................................................................3-4 F. FINAL DETERMINATION AND NOTIFICATION OF ELIGIBILITY......................3-5 G. TIME OF SELECTION...................................................................................................3-5 Chapter 4 ESTABLISHING PREFERENCES AND MAINTAINING THE WAITING LIST A. WAITING LIST MANAGEMENT.................................................................................4-1 B. WAITING LIST PREFERENCES…………………………......………….....................4-2 C. INITIAL DETERMINATION OF LOCAL PREFERENCE QUALIFICATION..........4-3 D. REMOVAL FROM WAIT LIST AND PURGING........................................................4-3 E. INCOME TARGETING..................................................................................................4-4 F. TARGETED FUNDING.................................................................................................4-4 G. SPECIAL ADMISSIONS................................................................................................4-4 Chapter 5 SUBSIDY STANDARDS A. DETERMINING FAMILY UNIT (VOUCHER) SIZE..................................................5-1 B. EXCEPTIONS TO SUBSIDY STANDARDS................................................................5-2 C. UNIT SIZE SELECTED..................................................................................................5-3 Chapter 6 FACTORS RELATED TO TOTAL TENANT PAYMENT & FAMILY SHARE DETERMINATION A. MINIMUM RENT...........................................................................................................6-1 B. INCOME AND ALLOWANCES................................................................................... 6-2 C. DISALLOWANCE OF EARNED INCOME FROM RENT DETERMINATIONS (MEID)........................................................................................................................... 6-3 D. OCCUPANCY REQUIREMENTS................................................................................ 6-5 E. REMAINING MEMBER OF TENANT FAMILY – RETENTION OF VOUCHER... 6-9 F. WAGES FROM EMPLOYMENT WITH THE PHA OR RESIDENT ORGANIZATION……………………………………………………………………..6-10 G. AVERAGING INCOME....................................................................................……. 6-10 H. MINIMUM INCOME................................................................................................... 6-10 I. INCOME OF PERSONS PERMANENTLY CONFINED TO A NURSING HOME.6-11 J. REGULAR CONTRIBUTIONS AND GIFTS............................................................. 6-11 K. ALIMONY AND CHILD SUPPORT.......................................................................... 6-11 L. LUMP SUM RECEIPTS.............................................................................................. 6-13 M. CONTRIBUTIONS TO RETIREMENT FUNDS - ASSETS...................................... 6-13 N. ASSETS DISPOSED OF FOR LESS THAN FAIR MARKET VALUE…………… 6-13 O. STUDENT INCOME………………………………………………………………… 6-13 P. CHILD CARE EXPENSES.......................................................................................... 6-14 Q. MEDICAL EXPENSES................................................................................................ 6-15 R. PRORATION OF ASSISTANCE FOR “MIXED” FAMILIES………………..…......6-16 S. INCOME CHANGES RESULTING FROM WELFARE PROGRAM REQUIREMENTS ...................................................................................................................................... 6-17 T. UTILITY ALLOWANCE AND UTILITY REIMBURSEMENT PAYMENTS........ 6-17 Chapter 7 VERIFICATION A. METHODS OF VERIFICATION AND TIME ALLOWED..........................................7-1 B. RELEASE OF INFORMATION.....................................................................................7-3 C. COMPUTER MATCHING ............................................................................................7-4 D. ITEMS TO BE VERIFIED..............................................................................................7-4 E. VERIFICATION OF INCOME.......................................................................................7-5 F. INCOME FROM ASSETS..............................................................................................7-9 G. VERIFICATION OF ASSETS......................................................................................7-10 H. VERIFICATION OF ALLOWABLE DEDUCTIONS FROM INCOME....................7-11 I. VERIFYING NON-FINANCIAL FACTORS..............................................................7-13 Chapter 8 VOUCHER ISSUANCE AND BRIEFINGS A. FUNDING AVAILABILITY..........................................................................................8-1 B. BRIEFING TYPES AND REQUIRED ATTENDANCE...............................................8-1 C. ENCOURAGING PARTICIPATION IN AREAS WITHOUT LOW INCOME OR MINORITY CONCENTRATION...................................................................................8-4 D. ASSISTANCE TO FAMILIES WHO CLAIM DISCRIMINATION.............................8-5 E. SECURITY DEPOSIT REQUIREMENTS.....................................................................8-5 F. VOUCHER ISSUANCE..................................................................................................8-5 G. VOUCHER ISSUANCE DETERMINATION FOR SPLIT HOUSEHOLDS...............8-6 Chapter 9 REQUEST FOR LEASE APPROVAL AND CONTRACT EXECUTION A. REQUEST FOR APPROVAL OF TENANCY..............................................................9-1 B. ELIGIBLE TYPES OF HOUSING.................................................................................9-2 C. LEASE REVIEW.............................................................................................................9-2 D. SEPARATE AGREEMENTS.........................................................................................9-4 E. RENT LIMITATIONS....................................................................................................9-4 F. DISAPPROVAL OF PROPOSED RENT.......................................................................9-5 G. INFORMATION TO OWNERS.....................................................................................9-5 H. CHANGE IN TOTAL TENANT PAYMENT (TTP) PRIOR TO HAP EFFECTIVE DATE.........................................................................................................9-5 I. CONTRACT EXECUTION PROCESS..........................................................................9-6 Chapter 10 HOUSING QUALITY STANDARDS AND INSPECTIONS A. GUIDELINES/TYPES OF INSPECTIONS..................................................................10-1 B. INITIAL HQS INSPECTION........................................................................................10-2 C. ANNUAL HQS INSPECTIONS ..................................................................................10-2 D. MOVE OUT/VACATE.................................................................................................10-3 E. SPECIAL/COMPLAINT INSPECTIONS....................................................................10-4 F. QUALITY CONTROL INSPECTIONS.......................................................................10-4 G. EMERGENCY REPAIR ITEMS..................................................................................10-5 H. CONSEQUENCES IF OWNER IS RESPONSIBLE (NON-EMERGENCY ITEMS).....................................................................................10-6 I. DETERMINATION OF RESPONSIBILITY...............................................................10-7 J. CONSEQUENCES IF FAMILY IS RESPONSIBLE...................................................10-7 Chapter 11 OWNER RENTS, RENT REASONABLENESS, AND PAYMENT STANDARDS A. RENT TO OWNER IN THE HOUSING CHOICE VOUCHER PROGRAM.............11-1 B. MAKING PAYMENTS TO OWNERS........................................................................11-1 C. RENT REASONABLENESS DETERMINATIONS....................................................11-2 D. PAYMENT STANDARDS FOR THE VOUCHER PROGRAM.................................11-4 E. ADJUSTMENTS TO PAYMENT STANDARDS.......................................................11-4 F. EXCEPTION PAYMENT STANDARDS....................................................................11-6 G. OWNER PAYMENT IN THE HOUSING CHOICE VOUCHER PROGRAM...........11-6 Chapter 12 RECERTIFICATION’S A. ANNUAL RECERTIFICATION’S...............................................................................12-1 B. REPORTING INTERIM CHANGES............................................................................12-3 C. OTHER INTERIM REPORTING ISSUES...................................................................12-4 D. NOTIFICATION OF RESULTS OF RECERTIFICATION’S.....................................12-5 E. TIMELY REPORTING OF CHANGES IN FAMILY COMPOSITION ....................12-5 F. CHANGES IN VOUCHER SIZE AS A RESULT OF FAMILY COMPOSITION CHANGES .......................................................................12-7 G. CONTINUANCE OF ASSISTANCE FOR "MIXED" FAMILIES..............................12-7 H. MISREPRESENTATION OF FAMILY CIRCUMSTANCES....................................12-7 I. REPORTING OF CHANGES IN FAMILY COMPOSITION.....................................12-7 Chapter 13 MOVES WITH CONTINUED ASSISTANCE/PORTABILITY A. ALLOWABLE MOVES................................................................................................13-1 B. INTERPROGRAM TRANSFERS…………………………………………...……….13-1 C. RESTRICTIONS ON MOVES......................................................................................13-2 D. PROCEDURE FOR MOVES........................................................................................13-2 E. PORTABILITY.............................................................................................................13-2 F. OUTGOING PORTABILITY.......................................................................................13-3 G. INCOMING PORTABILITY........................................................................................13-4 Chapter 14 CONTRACT TERMINATIONS A. CONTRACT TERMINATION.....................................................................................14-1 B. TERMINATION BY THE FAMILY: MOVES............................................................14-1 C. TERMINATION OF TENANCY BY THE OWNER: EVICTIONS...........................14-2 D. TERMINATION OF THE CONTRACT BY PHA.......................................................14-4 Chapter 15 DENIAL OR TERMINATION OF ASSISTANCE A. GROUNDS FOR DENIAL/TERMINATION...............................................................15-1 B. SCREENING AND TERMINATION FOR DRUG ABUSE AND OTHER CRIMINAL ACTIVITY................................................................................................15-5 C. FAMILY OBLIGATIONS............................................................................................15-7 D. PROCEDURES FOR NON-CITIZENS......................................................................15-10 E. ZERO HAP ASSISTANCE TENANCIES..................................................................15-10 F. OPTION NOT TO TERMINATE FOR MISREPRESENTATION...........................15-11 G. MISREPRESENTATION IN COLLUSION WITH OWNER....................................15-11 H. MISSED APPOINTMENTS AND DEADLINES......................................................15-11 Chapter 16 OWNER DISAPPROVAL AND RESTRICTION A. DISAPPROVAL OF OWNER......................................................................................16-1 Chapter 17 OWNER OR FAMILY DEBTS TO THE PHA A. PAYMENT AGREEMENT FOR FAMILIES..............................................................17-1 B. DEBTS DUE TO MISREPRESENTATION /NON REPORTING OF INCOME.......17-2 C. PAYMENTS FOR PROGRAM FRAUD –OWNERS….……..…………….....……...17-3 D. WRITING OFF DEBTS................................................................................................17-4 Chapter 18 COMPLAINTS AND APPEALS A. COMPLAINTS TO THE PHA......................................................................................18-1 B. PREFERENCE DENIALS............................................................................................18-1 C. INFORMAL REVIEW PROCEDURES FOR APPLICANTS ....................................18-1 D. INFORMAL HEARING PROCEDURES.....................................................................18-3 E. HEARING AND APPEAL PROVISIONS FOR "RESTRICTIONS ON ASSISTANCE TO NON-CITIZENS"...........................................................................18-8 F. MITIGATING CIRCUMSTANCES FOR APPLICANTS/PARTICIPANTS WITH DISABILITIES...................................................................................................18-9 Chapter 19 SPECIAL HOUSING TYPES A. SINGLE ROOM OCCUPANCY...................................................................................19-1 B. CONGREGATE HOUSING.........................................................................................19-2 C. GROUP HOMES...........................................................................................................19-2 D. SHARED HOUSING.....................................................................................................19-4 E. COOPERATIVE HOUSING.........................................................................................19-5 F. MANUFACTURED HOMES.......................................................................................19-6 G. HOMEOWNERSHIP....................................................................................................19-8 H. MODERATE REHABILITATION PROGRAM………………………………….....19-18 GLOSSARY A. ACRONYMS USED IN SUBSIDIZED HOUSING....................................................GL-1 B. GLOSSARY OF TERMS IN SUBSIDIZED HOUSING............................................GL-2 C. GLOSSARY OF TERMS USED IN THE NONCITIZENS RULE...........................GL-13 ADDENDUM #1 - PROGRAM INTEGRITY A. CRITERIA FOR INVESTIGATION OF SUSPECTED ABUSE AND FRAUD..........PI-1 B. STEPS THE PHA WILL TAKE TO PREVENT PROGRAM ABUSE AND FRAUD.................................................................................................................PI-2 C. STEPS THE PHA WILL TAKE TO DETECT PROGRAM ABUSE AND FRAUD.................................................................................................................PI-2 D. OVERPAYMENT TO OWNERS..................................................................................PI-3 E. HOW THE PHA WILL INVESTIGATE ALLEGATIONS OF ABUSE AND FRAUD.................................................................................................................PI-3 F. PLACEMENT OF DOCUMENTS, EVIDENCE AND STATEMENTS OBTAINED BY THE PHA............................................................................................PI-4 G. CONCLUSION OF THE PHA'S INVESTIGATIVE REVIEW....................................PI-4 H. EVALUATION OF THE FINDINGS............................................................................PI-5 I. ACTION PROCEDURES FOR VIOLATIONS WHICH HAVE BEEN DOCUMENTED.................................................................................................PI-6 J..........CODE OF CONDUCT………………………………………………………………...PI-9 ADDENDUM #2 - PROJECT-BASED HOUSING CHOICE VOUCHER PROGRAM 1 OVERVIEW OF PROJECT-BASED VOUCHER PROGRAM..................................PB-1 2. PROPOSAL SELECTION PROCEDURES……………………….…………………PB-3 A. PROPOSAL SELECTION PROCEDURES..…………….……..…………...PB-3 B. PROPOSAL REQUIREMENTS…………………………………………......PB-3 C. PROPOSAL REVIEW PROCESS…...………………..……………………..PB-6 3. SITE SELECTION CRITERIA………..………………………………..…………….PB-7 4. HAP AMENDMENTS, CONTRACT, CONTRACT TERMINATION………...…...PB-9 5. ELIGIBILITY FOR ADMISSION…………………………………………………..PB-15 6 APPLYING FOR ADMISSION…………………………………………………….PB-16 A. OPENING/CLOSING OF THE WAITLIST ……………………...………..PB-16 B. FINAL DETERMINATION AND NOTIFICATION OF ELIGIBILITY.....PB-16 C. TIME OF SELECTION….…….……………………………………..……..PB-16 7. ESTABLISHING PREFERENCES AND MAINTAINING THE WAITING LIST/TENANT SELECTION……………………………………………………….PB-17 A. TYPES OF WAITING LISTS……………………………………………….PB-17 B. DEFINITION OF PREFERENCES…...…………………………………….PB-18 C. MULTIPLE WAITING LISTS……………………..…….…………………PB-19 8. MOVES WITH CONTINUED ASSISTANCE/PORTABILITY………………......PB-22 9. SUPPORTIVE SERVICES…………………………………………………………PB-23 Chapter 1 STATEMENT OF POLICIES AND OBJECTIVES INTRODUCTION The U.S. Housing Act of 1937 authorized local Public Housing Agencies (Public Housing Authorities / PHAs) to be established by individual states. The Sacramento City and County PHA’s are programs administered by the Sacramento Housing and Redevelopment Agency (SHRA). The current Housing Choice Voucher (HCV) program evolved from various acts, amendments and rules. The most recent changes are the Quality Housing and Work Responsibility Act of 1998 (QHWRA) and the 1999 Housing and Urban Development (HUD) rule that provided for the merger of the certificate and voucher programs into one housing choice voucher program. This administrative plan clarifies PHA policies to facilitate the operation of the Housing Choice Voucher Program. Administration of the Housing Choice Voucher program and the functions and responsibilities of the PHA staff shall be in compliance with the PHA's personnel policy, HUD regulations, and all Federal, State and local Fair Housing laws and regulations. A. HOUSING CHOICE VOUCHER PROGRAM MISSION STATEMENT The mission of the HCV Program to promote adequate and affordable housing, economic opportunity and a suitable living environment free from discrimination. We will perform our mission with: Dignity - allowing each applicant and participant a sense of esteem; • Fairness - remaining objective at all times, remembering that there are two sides to every story; • Respect - treating others as we would like to be treated, in a non-judgmental manner; • Sensitivity - demonstrating empathy by ensuring that program information provided is complete and accurate. B. LOCAL OBJECTIVES The Housing Choice Voucher program is designed to achieve these major objectives: To provide access to decent, safe, and sanitary housing for very low-income families while maintaining their rent payments at a fair and affordable level. To promote fair housing and the opportunity for very low-income families of all ethnic backgrounds to have access to the widest possible choice of housing to meet their housing needs; • To encourage self-sufficiency of participant families and assist in the identification of opportunities which address educational and socio-economic needs; • To ensure that all units meet Housing Quality Standards; • To administer an efficient, high-performing Authority through continuous improvement of the PHA’s support systems and commitment to our employees, their development, and the maintenance of high standards and professionalism; To administer a housing program which provides an incentive to private property owners to rent to very low-income families; • To expand affordable housing opportunities in areas outside of a high concentration of poverty; • To create positive public awareness and expand the level of family, owner, and community support in accomplishing the PHA’s mission; • To ensure compliance with Title VI of the Civil Rights Act of 1964 and all other applicable Federal laws and regulations so the admissions and continued occupancy are conducted without regard to race, color, religion, creed, sex, national origin, handicap or familial status; • To promote a safe environment by denying initial or continued assistance to applicants who have demonstrated a history of violent criminal or drug related activity. C. PURPOSE OF THE PLAN The purpose of this Administrative Plan is to establish guidelines for the Public Housing Authority staff to follow in determining eligibility for admission and continued occupancy. These policies are governed by the requirements of the Department of Housing and Urban Development with latitude for local policies and procedures. These policies and procedures for admissions and continued occupancy are binding upon applicants, participants, and the PHA. The PHA is responsible for complying with all changes in HUD regulations pertaining to these programs. If any changes conflict with this Administrative Plan, HUD regulations will have precedence. This Administrative Plan is set forth to define the PHA's local policies for operation of the housing programs in the context of Federal laws and regulations. All issues related to the Housing Choice Voucher program which are not addressed in this document are governed by such Federal regulations, HUD memos, notices, policies, or other applicable law. The PHA Board of Commissioners will approve any significant amendment to this Administrative Plan. Significant amendment to the Administrative Plan is defined in the 2005 PHA Annual Plan D. FAIR HOUSING POLICY It is the policy of the Public Housing Authority to comply fully with all Federal, State, and local nondiscrimination laws and with the rules and regulations governing fair housing and equal opportunity in housing and employment. The PHA shall not deny any family or individual the opportunity to apply for or receive assistance under the Housing Choice Voucher programs on the basis of race, color, sex, religion, creed, national or ethnic origin, age, familial or marital status, disability or sexual orientation. To further its commitment to full compliance with applicable civil rights laws, the PHA will provide Federal/State/local information to voucher holders regarding "discrimination" and any recourse available to them should they be victims of discrimination. Such information will be made available during the family briefing session and placed in their briefing packet. Except as otherwise provided in 24 CFR 8.21(c)(1), 8.24(a), 8.25, and 8.31, no individual with disabilities shall be denied the benefits of, be excluded from participation in, or otherwise be subjected to discrimination because the PHA's facilities are inaccessible to or unusable by persons with disabilities. Posters and housing information are displayed in locations throughout the PHA's offices in such a manner as to be easily readable from a wheelchair. The office of the Housing Choice Voucher & Application Division is accessible to persons with disabilities. Accessibility for the hearing impaired is provided by a TTD/TDY telephone service provider. The Public Housing Authority will provide and review information regarding fair housing rights and responsibilities during family briefing sessions. E. REASONABLE ACCOMMODATIONS POLICY This policy is applicable to all situations described in this Administrative Plan when a family initiates contact with the PHA, when the PHA initiates contact with a family, including when a family applies, and when the PHA schedules or reschedules appointments. An applicant or a participant with a disability must first request a specific accommodation for the disability before the PHA will deviate from standard practice. Most requests will be reviewed by a Reasonable Accommodation Committee. The PHA's policies and practices are intended to afford persons with disabilities equal opportunity to obtain the same result, to gain the same benefit or to reach the same level of achievement, as those who do not have disabilities and is applicable to all situations described in this Administrative Plan. To request a reasonable accommodation due to a disability, an applicant or participant must qualify under the following Americans with Disabilities Act (ADA) definition of disability: • Have a physical or mental impairment that substantially limits one or more of the major life activities of an individual; • Have a record of such impairment; or, • Be regarded as having such impairment. The PHA will fully comply with the obligations found in HUD Notice PIH 2006-13 (HA) [Accessibility Notice: Section 504 of the Rehabilitation Act of 1973; the American with Disabilities Act of 1990; the Architectural Barriers Act of 1968 and the Fair Housing Act of 1988]. Rehabilitated former drug users and alcoholics are covered under the Americans with Disabilities Act. However, a current drug user is not eligible. Individuals are not considered disabled for eligibility purposes solely on the basis of any drug or alcohol dependence. Individuals whose drug or alcohol addiction is a material factor to their disability are excluded from the definition. Individuals are considered disabled if disabling mental and physical limitations would persist if drug or alcohol abuse were discontinued. Methods Used to Certify a Person with a Disability To verify that an applicant is a person with a disability, PHA staff will first check to see whether the applicant is under the age 62 and receives either Social Security or SSI disability income. Some applicants or tenants may be persons with disabilities even though they do not have such income. In these cases, a verification form will be sent to a qualified professional having knowledge of the person’s disability who can verify the person’s status. The PHA staff will work with the individual client to determine the least intrusive or restrictive means for certifying a disability. Methods Used to Certify the Need for a Reasonable Accommodation Once the individual’s disabled status is established, a professional third-party, competent to make an assessment (as referenced in Chapter 7 of this Administrative Plan), must provide written verification that the specific accommodation is due to the disability and the specific change is required for equal access to the housing program. In order to appropriately review some requests a home visit may be conducted by the PHA. The PHA will provide a written decision to the person requesting the accommodation within a reasonable time. If a person is denied the accommodation or feels that the alternative suggestions are inadequate, they may request an informal hearing to review the PHA’s decision. Reasonable accommodation will be made for persons with a disability that requires an advocate or accessible offices. A designee will be allowed to provide information with the written permission of the person with the disability. Reasonable accommodations will be made for persons requesting PHA mailings be available in an accessible format.. Undue Hardship Requests for reasonable accommodation from persons with disabilities will be granted upon verification that they meet the need, and do not create an undue financial or administrative burden. The PHA may deny the request and/or present an alternate accommodation that will still meet the need of the person. An undue administrative burden is one that requires a fundamental alteration of the essential functions of the PHA (i.e., waiving a family obligation) or when considering the available resources of the Agency the requested accommodation would pose a severe financial hardship on the PHA. In determining whether an accommodation would create an undue hardship, the following guidelines will apply: • The nature and cost of the accommodation needed; • The overall current financial resources of the facility, or facilities, involved in the provision of the reasonable accommodation; and • The number of persons currently employed at such facility; • The number of families likely to currently need such accommodation; • The effect on expenses and resources, or • The likely impact on the operation of the facility as a result of the proposed accommodation. F. FAMILY OUTREACH The PHA will publicize and disseminate information to make known the availability of housing assistance and related services for low-income families on a regular basis, when appropriate. When the PHA's waiting list is opened, the PHA will publicize the availability and nature of housing assistance for low-income families in newspapers of general circulation, minority media, and by other suitable means. To reach persons who do not have access to newspapers, the PHA will distribute fact sheets to the broadcasting media, and initiate personal contacts with members of the news media and community service personnel. The PHA may also utilize public service announcements. The PHA will communicate the status of housing availability to other service providers in the community and advise them of housing eligibility factors / guidelines so they can make proper referrals for housing assistance. G. PRIVACY RIGHTS Applicants and participants, including all adults in their households, are required to sign the HUD 9886 Authorization for Release of Information. This document incorporates the Federal Privacy Act Statement and describes the conditions under which HUD / PHA will release family information. The PHA's policy regarding release of information is in accordance with State and local laws that may restrict the release of family information. The PHA will maintain all accommodation records in a confidential manner. Under Federal privacy laws, a PHA is required to keep confidential any personal information about an applicant or tenant, obtained in a confidential manner or from a confidential source. The PHA adheres to the following practices and procedures that are designed to safeguard the privacy of applicants and program participants: All applicant and participant files will be stored in a secure location, which is only accessible by authorized staff. • Files will never be left unattended in common areas. • PHA staff will not discuss family information contained in files unless there is a business reason to do so. Staff persons will be required to disclose whether they have relatives living in PHA housing or receiving assistance from PHA housing programs. H. OWNER OUTREACH The PHA encourages owners of decent, safe and sanitary housing units to lease to Housing Choice Voucher families. The PHA maintains lists of units available, by bedroom size, and updates the lists at least every two weeks. New listings received from owners will be compiled according to bedroom size. The Public Housing Authority will maintain lists of available housing submitted by owners in all neighborhoods within the PHA’s jurisdiction to ensure greater mobility and housing choice to very low-income households. The lists of units will be available in the lobby, provided at the front desk, mailed on request and provided at briefings. This information may also be available on the Agency website. The staff of the PHA responds to and initiates personal contact with private property owners and managers by conducting meetings, formal and informal discussions. Printed material is offered to acquaint owners and managers with the opportunities available under the program. The PHA may also actively participate in a community-based organization(s) comprised of owners and managers of single family and multi-family rental units. The PHA encourages program participation by owners of units located outside areas of poverty or minority concentration. The PHA may periodically evaluate the demographic distribution of assisted families to identify these areas. The purpose of these activities is to provide choices and better housing opportunities to families. Voucher holders are informed of areas where they may lease units inside the PHA’s jurisdiction. They are given a list of landlords or other parties who lease units or help families who desire to live outside areas of poverty or minority concentration. The PHA periodically requests the HUD Field Office to furnish a list of HUD-held, tax credits and HOME properties available for rent. I. MANAGEMENT ASSESSMENT OBJECTIVES The PHA operates its housing assistance programs with efficiency and can demonstrate to HUD auditors that the PHA is using its resources in a manner that reflects its commitment to quality and service. The PHA policies and practices are consistent with the goals and objectives of the following HUD SEMAP indicators: 1. Selection from the Waiting List 2. Reasonable Rent 3. Determination of Adjusted Income 4. Utility Allowance Schedule 5. HQS Quality Control Inspections 6. HQS Enforcement 7. Expanding Housing Opportunities 8. FMR / exception rent & Payment Standards 9. Annual Re-examinations 10. Correct Tenant Rent Calculations 11. Pre-Contract HQS Inspections 12. Annual HQS Inspections 13. Lease-up 14. Family Self-Sufficiency Enrollment 14a. Percent of FSS Participants with Escrow Account Balances 15. Bonus Indicator (Deconcentration) Quality control reviews will be performed by a PHA Supervisor or other qualified person (other than the person who performed the work), as required by HUD, on the following SEMAP factors: • Selection from the waiting list • Rent reasonableness • Determination of adjusted income • HQS enforcement • HQS quality control Samples of files and records will be drawn in an unbiased manner, leaving a clear audit trail. The minimum sample size for review will relate directly to each factor. J. RECORDS FOR MONITORING PHA PERFORMANCE In order to demonstrate compliance with HUD and other pertinent regulations, the PHA will maintain records, reports and other documentation for a time that is in accordance with HUD requirements and in a manner that will allow an auditor, housing professional or other interested party to follow, monitor and or assess the PHA’s operational procedures objectively and with accuracy. The PHA acknowledges that its performance ratings are important to sustain its capacity to maintain flexibility and authority. The PHA intends to diligently manage its current program operations and continuously make efforts to be in full compliance with Housing Choice Voucher / Section Eight Management Assessment Program (SEMAP). The policies and procedures of this program are established so the SEMAP standards are demonstrated and can be objectively reviewed by an auditor whose purpose is to evaluate performance. K. LANGUAGE ASSISTANCE FOR LIMITED ENGLISH PROFICIENCY (LEP) PERSONS It is the goal of the Housing Authority to be accessible to all residents of its jurisdiction, regardless of race, color, or national origin. Therefore, we will endeavor to provide all families the same high quality customer service no matter what language they speak. In order to serve limited English proficiency (LEP) families, the Housing Authority is implementing the following activities: 1) When the adult members of the family are LEP, staff will show them the Language Identification Flashcard, created by the Census Bureau, so the family can identify the language they speak. The Housing Authority has identified staff who Sign American Language, speak Chinese and Spanish to assist clients with these languages. For other languages, an interpreter will be called to assist the staff person in serving the family. 2) The primary language of all LEP families will be identified on the computer, and in their file so appropriate resources can be identified in advance of the family’s needing assistance with an appointment. 3) When the number of families speaking one non-English language exceeds 5% of the number of program participants, the Housing Authority will translate “important” documents into this language. “Important” is defined as those documents addressing safety, participant rights, participant obligations, or communication regarding the loss of housing (i.e., eviction or termination of the voucher). 4) When the number of families speaking one non-English language exceeds 5% of the number of program participants, the Housing Authority will actively recruit staff that speak, read and write this language. 5) The Housing Authority will post signs in public spaces, in languages known to be spoken by LEP families involved with the Agency, telling them that help is available in their primary language.. 6) The Housing Authority will provide training to current and new staff, on an annual basis, about the resources available for LEP families and how to utilize these resources for participating families. Translation of Documents In determining whether or not, it is reasonable to translate documents into other languages; the PHA will consider the following factors: • Number of families in Sacramento County who do not speak English, and speak the other language. • Evaluation of the need for translation by bi-lingual staff, and by agencies that work with the LEP speaking participants. The availability of local organizations to provide translation services for limited or non-English speaking families. Chapter 2 ELIGIBILITY FOR ADMISSION [24 CFR Part 5, Subparts B, D & E; Part 982, Subpart E] INTRODUCTION This chapter defines both HUD and the PHA's criteria for admission and denial of admission to the program. The policy of this PHA is to strive for objectivity and consistency in applying these criteria to evaluate the eligibility of families who apply. The PHA staff will review all information provided by the family carefully and without regard to factors other than those referenced in this chapter. Families will be provided the opportunity to explain their circumstances, to furnish additional information, if needed, and to receive an explanation of the basis for any decision made by the PHA pertaining to their eligibility. A. FACTORS AFFECTING ADMISSION [982.201(b)] The PHA accepts applications only from families whose head or spouse is at least eighteen years of age or an emancipated minor under state law. To be eligible for participation, an applicant must meet HUD's criteria, as well as any additional criteria established by the PHA. Eligibility factors will be verified before the family is issued a voucher. HUD Factors: The HUD eligibility criteria are: • An applicant must be a "family" at admission, as defined in Section B, “Definition of Family”. • An applicant family must be within the appropriate income limits • An applicant family must furnish Social Security numbers for all family members age one and older. • An applicant family must furnish declaration of citizenship or eligible immigrant status and verification where required. • An applicant family will not be admitted to the program if any member of the family has been evicted from federally assisted housing for serious violation of the lease within the past five years. (Except as referenced in Chapter 15, Section B of this Administrative Plan) • At least one member of the applicant family must be either an U.S. citizen or have eligible immigration status before the PHA may provide any financial assistance. • The applicant family must not be in debt to any federally assisted housing program. The PHA may allow for the family to participant in the Housing Choice Voucher Program if they are in good standing regarding any current payment agreement made with another PHA for a debt incurred. • The PHA will permanently deny admission to sex offenders who are subject to a lifetime registration requirement under a state sex offender registration program Reasons for denial of admission are addressed in the "Denial or Termination of Assistance", Chapter 15 of this Administrative Plan. These reasons for denial constitute additional admission criteria. PHA Factors: The PHA will apply the following criteria, in addition to the HUD eligibility criteria, as grounds for denial of admission to the program: • The applicant family must not have violated any family obligation during a previous participation in a federally assisted housing program for five years prior to final eligibility determination. The PHA may make an exception, if the family member who violated the family obligation is not a current member of the household. The PHA may request the family to provide verifiable documentation. • The PHA will deny participation in the program to applicants where the PHA determines there is reasonable cause to believe that any family member is illegally using a controlled substance or engages in drug-related or other criminal activity. The same will apply if it is determined that any family member abuses alcohol in a way that may interfere with the health safety or peaceful enjoyment of the premises by other residents. This includes cases where the PHA determines that there is a pattern of illegal use of controlled substances or a pattern of alcohol abuse. • An applicant family will be denied admission to the program if any member of the family fails to sign and submit consent forms for obtaining information required by the PHA, including Form HUD-9886. • If any applicant family deliberately misrepresents the information on which eligibility or tenant rent is established, the PHA may deny assistance and may refer the family file/record to the proper authorities for appropriate disposition. (See Program Integrity Addendum). • Applicants may be required to meet additional criteria for admissions. • Any applicant who is a current or former conventional public housing resident with the SHRA must pay all debts to the SHRA before a voucher may be issued. • All applicants to the HCV program must be in “Good Standing”. Please see the glossary for a definition of “Good Standing” Reasons for denial of admission are addressed in the "Denial or Termination of Assistance", Chapter 15 of this Administrative Plan. These reasons for denial constitute additional admission criteria. Eligibility factors will be verified before the family is admitted to the program. B. FAMILY COMPOSITION [24 CFR 982.201(d)] Definition of Family (at application) All applicants must qualify as a family. A family may be a single person or a group of persons. Discrimination on the basis of familial status is prohibited, and a group of persons may not be denied solely on the basis that blood, marriage or operation of law does not relate them. For occupancy standards purposes, the applicant may claim a spousal relationship. See “Subsidy Standards”, Chapter 5 of this Administrative Plan. The PHA defines a family of persons as two or more persons who intend to share residency, whose income and resources are available to meet the family's needs, and who will live together in PHA housing. Elderly, disabled, and displaced families are defined by HUD in CFR 5.403. The term "family" also includes, but is not limited to: • A family with or without children; • An elderly family; • A disabled family; • A displaced family; • The remaining member of a participant family; • A single person who is not elderly, displaced, or a person with disabilities, or the remaining member of a participant family; • Two or more elderly or disabled persons living together, or one or more elderly or disabled persons living with one or more live-in aides are a family; • Two or more near-elderly persons living together, or one or more near-elderly person, living with one or more live-in aide. The temporary absence of a child from the home due to placement in foster care shall be considered in determining the family composition and family size. Head of Household The head of household is the adult member of the household who is designated by the family as head, is wholly or partly responsible for paying the rent, and has the legal capacity to enter into a lease under state/local law. Emancipated minors who qualify under state law will be recognized as head of household. Spouse of Head Spouse means the husband or wife of the head. For proper application of the non-citizens rule, the definition of “spouse” is: the marriage partner who, in order to dissolve the relationship, would have to be divorced. It includes the partner in a common law marriage. The term "spouse" does not apply to boyfriends, girlfriends, partner/significant others, or co-heads. Co-Head Is defined as, an individual in the household who is equally responsible for the lease with the head of household. A head of household may have a spouse or co-head, but not both. A co-head never qualifies as a dependent. Student Eligibility No assistance shall be provided to any single Head of Household student who • Is enrolled in an institution of higher education; • Is enrolled in an institution of higher education; • Is under 24 years of age; • Is not a U.S. Veteran; • Is unmarried; • Does not have a dependent child; • Is individually not income eligible and whose parents (individually or jointly) are not income ineligible. UNLESS • The student is individually income eligible AND resides with parents (individually or jointly) who are income eligible for the program; • The student is income eligible and has established a household separate from parents or legal guardians at least one year prior to application for occupancy. Live-in Aide [(982.316)] A live-in aide: • Is determined by the PHA to be essential to the care and well-being of an elderly person, a near-elderly person, or a person with disabilities, • Is not obligated for the support of the person(s), and • Would not be living in the unit except to provide care for the person(s). Relatives are not automatically excluded from being live-in aides, but they must meet all of the elements in the live-in aide as stated above. A live-in aide is not considered to be an assisted family member and has no rights or benefits under the program: • Income of the live-in aide will not be counted for purposes of determining eligibility or level of benefits. • Live-in aides are not subject to Non-Citizen Rule requirements. • Live-in aides may not be considered as a remaining member of the tenant family. A live-in aide may only reside in the unit with the approval of the PHA. Written verification will be required from a reliable, knowledgeable professional, such as a doctor, social worker, or caseworker. The verification provider must certify that a live-in aide is needed for the care of the family member who is elderly, near-elderly (50-61 years of age) or disabled. A specific live-in aide may only reside in the unit with the approval of the PHA. The live-in aide will be subject to the Agency’s normal screening criteria. If the live-in aide or their family members participate in drug-related or criminal activity, the PHA will rescind the aide’s right to occupy the unit. The aide is not entitled to the grievance hearing process of the PHA. An individual approved as a live-in aide may not receive a subsidy from any PHA while residing with another HCV program participant as a live-in aide. If an applicant is issued a voucher and is a live-in aide in another HCV participant’s household, the live-in aide must be removed from the participant’s household prior to the execution of a HAP contract. Split Households Prior to Voucher Issuance When a family on the waiting list splits into two otherwise eligible families due to divorce or legal separation and both families claim the same placement on the waiting list, if there is no court determination, the PHA will make the decision taking into consideration the following factors: Which family member applied as head of household. • Which family unit retains the children or any disabled or elderly members. • Recommendations from social service agencies or qualified professionals, such as Children's Protective Services. Documentation of these factors is the responsibility of the applicant families. If either or both of the families fail to provide the documentation, they may be denied placement on the waiting list for failure to supply information requested by the PHA. Multiple Families in the Same Household When families consisting of two families living together, (such as a mother and father, and a daughter and her husband or children) apply as a family unit, then they will be treated as a family unit. Joint Custody of Children Children who are subject to a joint custody agreement, but live with one parent at least 51% of the time will be considered members of that household. "51% of the time" is defined as 183 days of the year and do not have to run consecutively. The PHA will require a self-certification of families who claim joint custody or temporary guardianship of children. When each parent has a separate application on the waiting list and both share equal custody of the child /children, the parent whose address is listed in the school records will be allowed to claim the school-age child as a dependent. Applicants With Non-Biological Minor Children: An applicant who includes minor children on their application for whom they are not the biological parent must provide documentation to demonstrate they have legal custody or guardianship of the child(ren). A letter of court approved guardianship; placement by the Department of Human Assistance (DHA), or foster care/adoption agency are acceptable forms of documentation. An applicant who is receiving financial assistance for the child(ren) from the DHA will be qualified as the guardian for program eligibility purposes only (not legal). A letter from the biological parent(s) of the child(ren) absent of a letter of court approved guardianship and/or DHA, foster care or adoption agency placement is not acceptable. School records including the applicant’s address may be accepted as a supplement to one of the above mentioned acceptable forms of verification but cannot be the only source of documentation. C. INCOME LIMITATIONS [24 CFR 982.201(b), 982.353] To be eligible for assistance, an applicant must: • Have an annual income at the time of admission that does not exceed the low-income limits for occupancy established by HUD. To be income eligible, the applicant must be a family in any of the following categories: • A very low-income family. • A low-income family that is continuously assisted under the 1937 Housing Act. An applicant is continuously assisted if the family has received assistance under any 1937 Housing Act program within 120 days of voucher issuance. Programs include any housing federally assisted under the 1937 Housing Act. • A low-income family physically displaced by rental rehabilitation activity under 24 CFR part 511, or a low-income family displaced by any government activity. • A low-income non-purchasing family residing in a HOPE 1 or HOPE 2 project. • A low-income non-purchasing family residing in a project, subject to a home- ownership program, under 24 CFR 248.173. • A low-income family or moderate-income family that is displaced as a result of the prepayment of a mortgage or voluntary termination of a mortgage insurance contract under 24 CFR 248.165. • A low-income family that qualifies for Housing Choice Voucher assistance as a non- purchasing family residing in a project that is subject to a resident homeownership program. • A low-income family part of an inter-program transfer from low-income public housing to the Housing Choice Voucher program for the purpose of participating in the Section 8 Homeownership program. Families whose Annual Income exceeds the applicable income limit will be denied admission. Portability: For initial lease-up at admission, families who exercise portability must be within the applicable income limit for the jurisdiction of the receiving PHA in which they want to live. D. MANDATORY SOCIAL SECURITY NUMBERS [24 CFR 5.216, 5.218] Applicants are required to provide verification of Social Security numbers for all family members age one and older prior to admission, if they have been issued a number by the Social Security Administration. This requirement also applies to persons joining the family after admission to the program. Applicants who have not been issued a Social Security number must sign a certification that they have never been issued a Social Security number. Applicants who disclose their Social Security number but cannot provide verification must apply for a Social Security number replacement card which must be received by the SHRA before a voucher is issued to the applicant.. Defaced social security cards will not be accepted. Faillure to furnish verification of social security numbers is grounds for denial of assistance. Participants must disclose their Social Security number if they obtain one at a later date. E. CITIZENSHIP/ELIGIBLE IMMIGRATION STATUS [24 CFR Part 5, Subpart E] In order to receive assistance, a family member must be a U.S. citizen or eligible immigrant. Individuals, who are neither, may elect not to contend their status. Eligible immigrants are persons who are in one of the immigrant categories as specified by HUD. Citizenship/Eligible Immigration Requirement: The citizenship or immigration status of each member of the family is considered individually before the family's status is defined. Mixed Families A family is eligible for assistance as long as at least one member is a citizen or eligible immigrant. Families that include eligible and ineligible individuals are called "mixed". Such applicant families will be given notice that their assistance will be pro-rated and that they may request a hearing if they contest this determination. No Eligible Members Applicant families that include no family members who are citizens or eligible immigrant members are ineligible for assistance. Such families will be denied admission and offered an opportunity for a hearing. Non-Citizen Students As defined by HUD’s Non-Citizen regulations, non-citizen students are not eligible for assistance. Appeals regarding disputes of citizenship/eligible immigration status are the only type for which the applicant is entitled to a hearing exactly like those provided for participants. Verification of Status Before Admission The PHA will not provide assistance to families prior to the verification of eligibility for the individual or at least one member of the family pursuant to this section. F. TENANT SCREENING [24 CFR 982.307] The PHA will not screen family behavior or suitability for tenancy. The PHA will not be liable or responsible to the owner or other persons for the family’s behavior or the family’s conduct in tenancy. In compliance with the Violence Against Women (VAWA) no applicant for the HCV program who has been a victim of domestic violence, dating violence, or stalking shall be denied admission into the program if they are otherwise qualified. (PIH Notice 2006- 42). The owner is responsible for screening and selection of the family to occupy the owner’s unit. At or before PHA approval of the tenancy, the PHA will inform the owner that screening and selection for tenancy is the responsibility of the owner. The owner is responsible for screening families based on their tenancy histories, including such factors as:[24 CFR 982] • Payment of rent and utility bills • Caring for a unit and premises • Respecting the rights of other residents to the peaceful enjoyment of their housing • Drug-related criminal activity or other criminal activity that is a threat to the health, safety or property of others; and • Compliance with other essential conditions of tenancy. The PHA must give the owner the following information: • The family’s current and prior address as shown in the PHA's records; and • The name and address (if known by the PHA) of the landlord at the family’s current and prior address. The PHA may offer the owner other information in the PHA's possession concerning the family, including: • Tenant History • Damage Claims • History of Evictions • Credit History • Monies owed to a PHA The same types of information will be supplied to all owners. The PHA will advise families how to file a complaint if they have been discriminated against by an owner. The PHA will advise the family to make a Fair Housing complaint. The PHA may also report the owner to HUD (Fair Housing/Equal Opportunity) or the local Fair Housing Organization. Transitions Between Subsidized Housing Programs At the family’s first eligibility appointment, when it is determined that the applicant is participating in another subsidized housing program, staff will advise the family that they will terminate the process if the applicant is not in ‘Good Standing.’ See glossary for definition of “Good Standing”. Staff will continue to communicate with conventional housing staff as the family proceeds through the process so that only families in “Good Standing: are allowed to move into the HCV program. The move will be coordinated between the staff of both programs so that the family is not a participant of both programs at the same time. The HCV contract will not begin until the conventional housing lease has been terminated and/or confirmed. G. CHANGES IN ELIGIBILITY PRIOR TO EFFECTIVE DATE OF THE CONTRACT Changes in subsidy standard and Total Tenant Payment which occur during the period between issuance of a voucher and prior to lease-up, may affect the family's eligibility or share of the rental payment. A review and update of the family income and overall eligibility will be completed if necessary when extending an applicant’s voucher. H. INELIGIBLE FAMILIES Families who are determined to be ineligible will be notified in writing of the reason for denial and given an opportunity to request an informal review, or an informal hearing if they were denied due to noncitizen status. See "Complaints and Appeals", Chapter 18 for additional information about reviews and hearings. Chapter 3 APPLYING FOR ADMISSION [24 CFR 982.204] INTRODUCTION The policy of the PHA is to ensure that all families who express an interest in housing assistance are given an equal opportunity to apply, and are treated in a fair and consistent manner. This chapter describes the policies and procedures for completing an initial application for assistance, placement and denial of placement on the waiting list, and limitations on who may apply. The primary purpose of the intake function is to gather information about the family, but the PHA will also utilize this process to provide information to the family so that an accurate and timely decision of eligibility can be made. Applicants will be placed on the waiting list in accordance with this Plan. A. OPENING/CLOSING OF THE WAITING LIST [24 CFR 982.206, 982.54(d)(1)] When the waiting list is open any family asking to be placed on the waiting list for Section 8 rental assistance will be given the opportunity to complete a pre-application. When the PHA opens the waiting list, the PHA will advertise through public notice in the following newspapers, minority publications and media entities. (The PHA may announce the opening and closing dates of the waitlist.) • Local and minority newspapers (such as the Sacramento Bee, the Sacramento Observer, El Hispano, Nichi Bei Times, and Sacramento Spectrum.) • The PHA will distribute fact sheets to broadcast media and may utilize public service announcements, • City and County offices, and • Local community service providers The notice will contain: • The dates, times, and the locations where families may obtain an application • The programs for which applications will be taken • A brief description of the program limitations, if any, on whom may apply The notices will be made in an accessible format, if requested. They will provide potential applicants with information that includes the PHA address and telephone number, how to submit an application, information on eligibility requirements, and the availability of local preferences. Upon request from a person with a disability, additional time will be given as an accommodation for submission of an application after the closing deadline. This accommodation is to allow persons with disabilities the opportunity to submit an application in cases when a social service organization provides inaccurate or untimely information about the closing date. Closing the Waiting List The PHA, at its discretion, may restrict application intake, suspend application intake, and close waiting lists in whole or in part. The PHA may open or close the list by local preference category. The PHA may stop applications if there are enough applicants to fill anticipated openings for the next twenty-four months. The waiting list may not be closed if it would have a discriminatory effect inconsistent with applicable civil rights laws. The PHA will announce the closing of the waiting list by public notice. When the period for accepting applications is over, the PHA will not accept additional pre- applications, nor maintain a list of those who wish to be notified when the waiting list is open. B. OVERVIEW OF THE APPLICATION PROCESS [24 CFR 982.204(b)] Applicants may apply to the HCV program during open waitlist periods. The application process will involve two phases: • The first is the "initial" application for admission (referred to as a pre-application). This first phase is to determine the placement on, the waiting list. Duplicate pre- applications will not be accepted. • The second phase is the "final determination of eligibility for admission" (referred as the full application). The full application takes place when the family reaches the top of the waiting list. At this time the PHA ensures that verification of all HUD and PHA eligibility factors is current in order to determine the family’s eligibility for an offer of a voucher. Pre-applications will not require an interview. The information on the application will not be verified until the applicant has been selected for final eligibility determination. Final eligibility will be determined when the full application process is completed and all information is verified. A confirmation of receipt of pre-application is sent to applicant by first class mail. C. APPLICANT STATUS WHILE ON WAITING LIST [CFR 982.204] Applicants are required to inform the PHA of changes in family composition, income, and address, or preference status in writing (the PHA may accept changes by telephone) within 30 days. Applicants are also required to respond to requests from the PHA to update information on their application, or to determine their interest in assistance. All changes in income and family size that occur prior to the execution of a Housing Assistance Payment (HAP) Contract will be considered. D. CHANGE IN APPLICATION STATUS If the Applicant Head of Household passes away or moves out of the household, the remaining spouse or co-head may retain the position on the waiting list. In the absence of a spouse or co-head, another adult family member may become head of household. Factors to be considered are: • Remaining member has custody of dependent children. • Which family member was the head of household when the voucher was initially issued (listed on the initial application). • The composition of the new family units, and which unit contains elderly or disabled members. • Whether domestic violence was involved in the breakup. • Which family members remain in the unit. • Recommendations of social service professionals. E. COMPLETION OF A FULL APPLICATION Duplicate applications will not be accepted. All preferences claimed on the pre-application or while the family is on the waiting list will be verified after the family is selected from the waiting list and attends an interview, but prior to determining final eligibility. The qualification for preference must exist at the time the preference is verified, regardless of the length of time an applicant has been on the waiting list because the claim of a preference is based on current status. Applicants will be required to: • Complete a full application (including a Personal Declaration Form) in their own handwriting, unless assistance is needed, or a request for accommodation is made by a disabled person. Applicants will then be interviewed by PHA staff to review the information on the full application form. The applicant will sign and certify that all information is complete and accurate. The full application will be mailed to the applicant in advance. Requirement to Attend Interview The PHA utilizes the full application interview to discuss the family's circumstances in greater detail, to clarify information that has been provided by the family, and to ensure that the information is complete. The interview is also used as a vehicle to meet the informational needs of the family by providing information about the application and verification process, as well as to advise the family of other PHA services or programs which may be available. All adult family members are required to attend the interview, and are required to sign the housing application and authorization forms. Exceptions may be made on a case by case basis; accommodations may be made upon request. If an applicant does not respond to the initial letter or fails to appear for a pre-scheduled appointment, the PHA will withdraw the applicant from the waitlist, unless the applicant has requested to be rescheduled prior to the scheduled appointment time. Otherwise, the applicant is sent a formal notice of withdrawal from the HCV waitlist. Reasonable accommodation will be made for persons with a disability that requires an advocate or accessible offices. A designee will be allowed to participate in the interview process, but only with permission of the person with a disability. If an application is denied due to failure to attend the full application interview, the applicant will be notified in writing and offered an opportunity to request an informal review. (See "Complaints and Appeals", Chapter 18 of this Administrative Plan.) All adult members must sign the HUD Form 9886, Release of Information, the application form and all supplemental forms required by the PHA, the declarations and consents related to citizenship/immigration status and any other documents required by the PHA. Applicants will be required to sign specific verification forms for information, which is not covered, by the HUD form 9886. Failure to do so will be cause for denial of the application for failure to provide necessary certifications and release as required by the PHA. Every adult household member must sign a consent form to release criminal conviction records and to allow PHAs to receive records and use them in accordance with HUD regulations. If the PHA determines at or after the interview that additional information or document(s) are needed, the PHA will request the document(s) or information in writing. The family will be given ten days to supply the information. If the information is not supplied in this time period, the PHA will provide the family a notification of denial for assistance. (See "Complaints and Appeals", Chapter 18 of this Administrative Plan) F. VERIFICATION [24 CFR 982.201(e)] Information provided by the applicant will be verified, using the verification procedures described in "Verification” of this Administrative Plan. Family composition, income, allowances and deductions, assets, full-time student status, eligibility and rent calculation factors, and other pertinent information will be verified. Verifications may not be more than sixty days old at the time of issuance of the voucher. G. FINAL DETERMINATION AND NOTIFICATION OF ELIGIBILITY [24 CFR 982.201] After the verification process is completed, the PHA will make a final determination of eligibility. This decision is based upon information provided by the family, the verification completed by the PHA, and the current eligibility criteria in effect. If the family is determined to be eligible, the PHA will mail a notification of eligibility. A briefing will be scheduled for the issuance of a voucher and the family's orientation to the housing program. H. TIME OF SELECTION When funding is available, families will be selected from the waiting list in their determined sequence, regardless of family size, subject to income targeting requirements. When there is insufficient funding available for the family at the top of the list, the PHA will not admit any other applicant until funding is available for the first applicant. Chapter 4 ESTABLISHING PREFERENCES AND MAINTAINING THE WAITING LIST [24 CFR Part 5, Subpart D; 982.54(d)(1); 982.204, 982.205, 982.206] INTRODUCTION It is the PHA's objective to ensure that families are placed on the waiting list in the proper order and selected from the waiting list for admissions in accordance with the policies in this Administrative Plan. This chapter explains the local preferences the PHA has adopted to meet local housing needs, defines the eligibility criteria for the preferences, and explains the PHA's system of applying them. By maintaining an accurate waiting list, the PHA will be able to perform the activities which ensure an adequate pool of qualified applicants will be available so program funds are used in a timely manner. A. WAITING LIST MANAGEMENT [24 CFR 982.204] Cross-Listing of Different Housing Programs and Housing Choice Voucher If an applicant family is placed on a waiting list, they shall be given the option to apply for all other Housing Authority-administered housing programs that also have an open waiting list. Other Housing Assistance The PHA may not take any of the following actions because an applicant has applied for, received, or refused other housing assistance: • Refuse to list the applicant on the PHA waiting list for tenant-based assistance; • Deny any admission preference for which the applicant is currently qualified; Other housing assistance means a federal, state or local housing subsidy, as determined by HUD, including public housing. When the PHA issues an applicant a Housing Choice Voucher, the applicant’s name will be removed from all tenant-based voucher waitlists, but will remain on all other waitlists unless the family makes a written request to withdraw from a particular waitlist. B. WAITING LIST PREFERENCES [24 CFR 982.207] The PHA uses a single waiting list for admission to its Housing Choice Voucher program. Site- based list(s) for project-based assistance may be administratively established in accordance with HUD notices and other requirements. Except for special admissions, applicants will be selected from the PHA waiting list in accordance with policies and preferences and income targeting requirements defined in this Administrative Plan. The waiting list contains the following information for each applicant listed: • Applicant name • Social Security Number • Date of Birth • Family unit size (number of bedrooms family qualifies for under PHA subsidy standards) • Racial or ethnic designation of the head of household • Annual (gross) family income • Targeted program qualifications • Qualification for any local preference A preference does not guarantee admission to the program. Preferences are used to establish the order of placement on the waiting list. Every applicant must meet the PHA’s selection criteria as defined in this Plan. An applicant's certification that they qualify for a preference will be accepted without verification during their pre-application period. When the family is selected from the waiting list for the determination of eligibility, the preference will be verified at the full application. Local Preferences Local preferences will be used to select families from the waiting list. Each preference will receive an allocation of points so that the computer software can put an order to the families on the waiting list. The applicant’s cumulative points will determine the preference status and position on the wait list. • (4 points) Residency preference for families who live, work, or have been hired to work in Sacramento County, or any political subdivision thereof. • (2 points) Permanently disabled preference for families who have a member with a permanent disability. • (1 point) Rent burden preference for participants whose rent burden (documented rent and utilities according to applicable or prorated utility allowance schedule) exceeds 50% of gross income The PHA's method for selecting applicants from a preference category leaves a clear audit trail that can be used to verify that each applicant has been selected in accordance with the method specified in the Administrative Plan. C. INITIAL DETERMINATION OF LOCAL PREFERENCE QUALIFICATION [24 CFR 982.207] If the preference verification indicates that an applicant does not qualify for the preference, the applicant will be returned to the waiting list without the local preference, and will be notified in writing of the determination. If the PHA denies a preference, the PHA will notify the applicant in writing of the reasons why the preference was denied and offer the applicant an opportunity for an informal review (for more information on Complaints and Appeals see Chapter 18 of this Administrative Plan). If the preference denial is upheld, as a result of the review, or the applicant does not request a meeting, the applicant will be placed on the waiting list without the benefit of the preference. Applicants may exercise other rights if they believe they have been discriminated against. If the applicant falsifies documents or knowingly makes false statements in order to qualify for any preference, they will be removed from the waiting list. The PHA will notify the applicant in writing of the reasons why they were removed from the waiting list and offer the applicant an opportunity for a meeting with designated staff through the informal review process. Changes in an applicant’s circumstances while on the waiting list may affect the family’s eligibility for a preference. Applicants are required to notify the PHA, in writing, of relevant changes in their circumstances within 30 days of the change. When an applicant claims an additional preference, the applicant will be placed on the waiting list in the proper order of their newly claimed preference. D. REMOVAL FROM WAITING LIST AND PURGING [24 CFR 982.204(c)] The waiting list will be purged periodically by a mailing to all applicants to ensure that the waiting list is current and accurate. The mailing will ask for current information and confirmation of continued interest. If an applicant fails to respond within fifteen days of the date of the purge letter, the applicant will be removed from the waiting list. If a letter is returned by the Post Office without a forwarding address, the applicant will be removed without further notice and the envelope and letter will be maintained in the file. If an applicant is removed from the waiting list for failure to respond, they will not be entitled to reinstatement unless a person with a disability requests a reasonable accommodation for being unable to reply within the prescribed period. E. INCOME TARGETING In accordance with the Quality Housing and Work Responsibility Act of 1998, each fiscal year the PHA will reserve seventy-five percent of its Housing Choice Voucher Program new admissions for families whose income does not exceed 30 percent of the area median income (AMI). HUD refers to these families as "extremely low income families." The PHA will admit families who are extremely low income to meet the income-targeting requirement. The PHA’s income targeting requirement does not apply to low-income families continuously assisted as provided for under the 1937 Housing Act. The PHA is also exempted from this requirement where the PHA is providing assistance to low- income or moderate-income families entitled to preservation assistance under the tenant-based program as a result of a mortgage prepayment or opt-out. To the extent that the PHA’s admission of extremely low income families in the tenant-based assistance program exceeds seventy-five percent of all admissions during the fiscal year, the PHA may choose to admit less than the minimum forty percent of its extremely low-income families in a fiscal year to its public housing program under QHWRA “fungibility provisions.” F. TARGETED FUNDING [24 CFR 982.203] When HUD awards special funding for certain family types, families who qualify are placed on the regular waiting list. When a specific type of funding becomes available, the waiting list is searched for the first available family by rank meeting the targeted funding criteria. G. SPECIAL ADMISSIONS [24 CFR 982.54(d)(e), 982.203] If HUD awards a PHA program funding that is targeted for families living in specific units, the PHA will admit these families under a special admission procedure. Special admissions families will be admitted outside of the regular waiting list process. They do not have to qualify for any preferences, nor are they required to be on the program waiting list. The PHA maintains separate records of these admissions. The following are examples of types of program funding that may be designated by HUD for families living in a specified unit: • A family displaced because of demolition or disposition of a public or Indian housing project; • A family residing in a multifamily rental housing project when HUD sells, forecloses or demolishes the project; • For housing covered by the Low Income Housing Preservation and Resident Home- ownership Act of 1990; • A family residing in a project covered by a project-based Section 8 HAP contract at or near the end of the HAP contract term; and • A non-purchasing family residing in a HOPE 1 or HOPE 2 project. Applicants, who are admitted under special admissions, rather than from the waiting list, are identified by codes in the automated system. Chapter 5 SUBSIDY STANDARDS [24 CFR 982.54(d)(9)] INTRODUCTION HUD guidelines require that PHA's establish subsidy standards for the determination of family unit size, and that such standards provide for a minimum commitment of subsidy while avoiding overcrowding. The standards used for the unit size selected by the family must be within the minimum unit size requirements of HUD's Housing Quality Standards. This chapter explains the subsidy standards used to determine the voucher size (family unit size) for families of different sizes and compositions. This chapter also establishes the guidelines to be applied when a family's size or composition changes or a family selects a unit size that is different from the voucher size. A. DETERMINING FAMILY UNIT (VOUCHER) SIZE [24 CFR 982.402] The PHA does not determine who shares a bedroom/sleeping room, but there must be at least one person per bedroom on the Voucher. The PHA's subsidy standards for determining voucher size shall be applied in a manner consistent with Fair Housing guidelines. All standards in this section relate to the number of bedrooms on the voucher, not the family's actual living arrangements. The unit size on the voucher remains the same as long as the family composition remains the same, regardless of the actual unit size rented. One bedroom will be assigned to the head of household and spouse or partner, and one bedroom will be assigned for each additional two persons. An unborn child (with verification of pregnancy) will be counted as a family member in determining bedroom size. The subsidy standard will not be increased for additions to the family unless the addition is due to birth, adoption or court-awarded custody. If the household size increases due to the addition of a spouse or partner, the subsidy standard will be increased to accommodate the spouse/partner and the children for whom he/she has legal custody. Adding additional members to the household will not be approved if it causes the family to be under-housed. The family unit size for any family consisting of a single person must be either a zero or a one- bedroom unit. Any foster children or foster adults who are in the home at the time of initial voucher issuance, and who are determined to be in a long-term placement, will be considered as family members in the determination of subsidy size. For the purpose of determining subsidy size, long-term placement is defined as 12 or more months. Child Protective Services The Agency will work cooperatively with Child Protective Services (CPS) in promoting family reunification. If CPS provides written documentation that the child/children will be reunited with their parents and a reunification plan is established, the Agency will increase the bedroom size in accordance with the Agency’s subsidy standard policy. The reunification plan must specify the anticipated date when the children will be reunited. The family must be advised to report any changes in family composition and income immediately. GUIDELINES FOR DETERMINING VOUCHER SIZE Voucher Size Persons in Household Minimum Number Maximum Number 0 Bedroom 1 1 1 Bedroom 1 2 2 Bedrooms 2 6 3 Bedrooms 3 8 4 Bedrooms 4 10 5 Bedrooms 6 12 6 Bedrooms 8 14 B. EXCEPTIONS TO SUBSIDY STANDARDS [24 CFR 982.403(a) & (b)] Live-in Aide The PHA may grant an exception upon request as an accommodation for persons with disabilities. If an exception to the subsidy standards is needed as a reasonable accommodation to make the program accessible to and usable by the family member with a disability, the family may complete a “Request for Reasonable Accommodation” form and submit it to PHA staff or speak with their Housing Specialist. The PHA may approve this request, if necessary, after the need is verified by a health care professional. Exceptions will be made to allow a live-in aide a bedroom, upon approval by the Reasonable Accommodation Committee. The bedroom size will be increased after the PHA has confirmed that the live-in aide has passed background screening. If at the following recertification, the live- in aide has not moved in, the bedroom size will be reduced. Additional bedrooms will not be provided for a live-in aide’s family. Underhoused If a unit does not meet HQS space standards due to an increase in family size, (unit too small), the PHA will terminate the current contract and issue a new voucher of the appropriate size. The PHA will assist the family in locating a suitable unit. Overhoused If a participant has a decrease in the family size, the family has the option to be issued a new voucher or remain in the unit they are currently renting. If the family chooses to remain in the unit, the subsidy standard will be lowered at the next annual re-examination. If the family chooses to move, the voucher issued will be for the correct subsidy standard. The amount the family pays for rent should be affordable and the tenant portion of rent and the current utility allowance cannot exceed 40% of their adjusted income at the time of lease-up. The PHA rent will be based on the payment standard for the number of bedrooms the family is eligible for or the actual number of bedrooms in the unit, whichever is less. In cases where the gross rent is less than the payment standard, it will be used as the payment standard. C. UNIT SIZE SELECTED [24 CFR 982.402(c)] The family may select a different size dwelling unit than that listed on the Voucher. The amount of assistance is based on the authorized or actual bedroom size, whichever is less. The utility allowance is based on the size of unit actually selected. *HQS GUIDELINES FOR UNIT SIZE SELECTED Unit Size Maximum Number in Household 0 Bedroom 1 1 Bedroom 4 2 Bedrooms 6 3 Bedrooms 8 4 Bedrooms 10 5 Bedrooms 12 6 Bedrooms 14 Chapter 6 FACTORS RELATED TO TOTAL TENANT PAYMENT AND FAMILY SHARE DETERMINATION [24 CFR Part 5, Subparts E and F; 24 CFR 982] INTRODUCTION The accurate calculation of annual income and adjusted income will ensure that families are not paying more or less money for rent than their obligation under federal regulations. This chapter defines the allowable expenses and deductions to be subtracted from annual income and how the presence or absence of household members may affect the Total Tenant Payment (TTP). Income and TTP are calculated in accordance with 24 CFR Part 5, Subparts E and F, and further instructions set forth in HUD Notices and Memoranda. The formula for the calculation of TTP is specific and not subject to interpretation. The PHA's policies in this chapter address those areas, which allow the PHA discretion to define terms and to develop standards in order to assure consistent application of the various factors that relate to the determination of the TTP. A. MINIMUM RENT "Minimum rent" is $50. Minimum rent is a minimum Total Tenant Payment. A family whose TTP has been set at the minimum rent may receive a utility reimbursement. Families may request an exception to this policy for hardship when the appropriate form is completed. Hardship Exemption When a family requests a financial hardship exemption, the PHA must suspend the minimum rent requirement beginning the first of the month following the family’s request. The PHA then determines whether the financial hardship exists and whether the hardship is temporary (expected to last ninety days or less) or long-term. To qualify for a hardship exemption, a family must submit a request for a hardship exemption in writing. The request must explain the nature of the hardship and how the hardship has affected the family’s ability to pay the minimum rent. Temporary Hardship If the PHA determines that a qualifying financial hardship is temporary, the PHA must suspend the minimum rent for the 90-day period beginning the first of the month following the date of the family’s request for a hardship exemption. At the end of the 90-day suspension period, the family must resume payment of the minimum rent and must repay the PHA the amounts suspended. HUD requires the PHA to offer a reasonable repayment agreement, on terms and conditions established by the PHA. The PHA also may determine that circumstances have changed and the hardship is now a long-term hardship. Long-Term Hardship If the PHA determines the financial hardship is long-term, the PHA must exempt the family from the minimum rent requirement for so long as the hardship continues. The exemption will apply from the first of the month following the family’s request until the end of the qualifying hardship. When the financial hardship has been determined to be long-term, the family is not required to repay the minimum rent. B. INCOME AND ALLOWANCES Income includes all monetary amounts, which are received on behalf of the family. For purposes of calculating the Total Tenant Payment, HUD defines what is to be calculated and what is to be excluded in the Federal Regulations. In accordance with this definition, all income that is not specifically excluded in the Regulations is counted. Annual income is defined as, “The gross amount of income anticipated to be received by the family during the twelve months after certification or recertification”. Gross income is the amount of income prior to any HUD allowable expenses or deductions, and does not include income that has been excluded by HUD. Annual income is used to determine whether or not applicants are within the applicable income limits. Adjusted income is defined as the annual income minus any HUD allowable expenses and deductions. HUD has five allowable deductions from annual income: • Dependent Allowance: $480 each for family members (other than the head or spouse) who are minors, and for family members who are 18 and older who are full-time students or who are persons with disabilities. • Elderly/Persons with Disabilities Allowance: $400 per family for families whose head or spouse is 62 or over or persons with disabilities. • Allowable Medical Expenses: Deducted for all family members of an eligible elderly/or the families of persons with disabilities family. • Child Care Expenses: Deducted for the care of children under thirteen years of age when child care is necessary to allow an adult member to work, attend school, or actively seek employment. • Allowable Disability Assistance Expenses: Deducted for attendant care or auxiliary apparatus for persons with disabilities if needed to enable the individual or an adult family member to work. C. DISALLOWANCE OF EARNED INCOME FROM RENT DETERMINATIONS MANDATORY EARNED INCOME DISALLOWANCE (MEID) [24 CFR 5.617] Initial Twelve-Month Exclusion The annual income for a qualified family member who is a person with disabilities may not be increased as a result of increases in earned income, beginning on the date on which the increase occurred and continuing for a cumulative 12-month period. If the period of increased income does not last for 12 consecutive months, the disallowance period may be resumed at any time within the 48-month period, and continued until the disallowance has been applied for a total of 12 months (the initial 12-month full exclusion). No earned income disallowance will be applied after the 48-month period following the initial date the exclusion was applied. Second Twelve-Month Exclusion and Phase-in After the expiration of the initial cumulative 12-month period, the PHA must exclude 50 percent of any increase in income of a family member who is a person with disabilities, from the annual income of a qualified family. Maximum Four-Year Disallowance The earned income disallowance is limited to a lifetime 48-month period for each family member who is a person with disabilities. For each family member who is a person with disabilities the disallowance only applies for a maximum of 12 months of full exclusion of incremental increase, and a maximum of 12 months of phase-in exclusion during the 48-month period, starting from the date of the initial exclusion. To qualify for the earned income exclusion a family with a member who is a person with disabilities must be receiving tenant-based rental assistance under the Housing Choice Voucher Program and must meet one or more of the following conditions: • Annual income increases as a result of employment of a family member who is a person with disabilities and who was previously unemployed for one or more years prior to employment; or • Annual income increases as a result of increased earnings by a family member who is a person with disabilities during participation in any economic self-sufficiency or other job training program; or • Annual income increases, as a result of new employment or increased earnings of a family member who is a person with disabilities, during or within six months after receiving assistance, benefits or services under any State program for TANF, provided the total amount over a six-month period is at least $500. The definitions of "Previously Unemployed" and “Economic Self-Sufficiency Program” are available in the glossary of this Administrative Plan. Amounts to be excluded are any earned income increases of a person with disabilities family member during participation in an economic self-sufficiency or job training program and not increases that occur after participation, unless the training provides assistance, training or mentoring after employment. The amount of TANF received in the six-month period includes monthly income and such benefits and services as one-time payments, wage subsidies and transportation assistance. The amount that is subject to the disallowance is the amount of incremental increase in the income of a family member who is a person with disabilities. The incremental increase in income is calculated by comparing the amount of the family member’s income before the beginning of qualifying employment or increase in earned income to the amount of such income after the beginning of employment or increase in earned income. Applicability to Child Care and Disability Assistance Expense Deductions The amount deducted for child care and disability assistance expenses necessary to permit employment shall not exceed the amount of employment income that is included in annual income. Therefore, for families entitled to the earned income disallowance, the amounts of the full and phase-in exclusions from income shall not be used in determining the cap for child care and disability assistance expense deductions. Tracking the Earned Income Exclusion The earned income exclusion will be reported on the HUD 50058 form. Documentation will be included in the family’s file to show the reason for the reduced increase in rent. Such documentation may include: • Date the increase in earned income was reported by the family • Name of the family member whose earned income increased • Reason (new employment, participation in job training program, within 6 months after receiving TANF) for the increase in earned income • Amount of the increase in earned income (amount to be excluded) • Date the increase in income is first excluded from annual income • Date(s) earned income ended and resumed during the initial cumulative twelve month period of exclusion (if any) • Date the family member has received a total of 12 months of the initial exclusion • Date the twelve-month phase-in period began • Date(s) earned income ended and resumed during the second cumulative twelve month period (phase-in) of exclusion (if any) • Ending date of the maximum forty eight month (four year) disallowance period (forty eight months from the date of the initial earned income disallowance) • Date the family member has received a total of 12 months of the phase-in exclusion The PHA will maintain a tracking system to ensure correct application of the earned income disallowance. Interim reexaminations will not be done for income increases. The initial 12-month exclusion will still begin on the date on which the increase in earned income begins. Inapplicability to Admission The earned income disallowance is only applied to determine the annual income of families< with a member who is a person with disabilities, who are participants in the Housing Choice Voucher Program, and therefore does not apply for purposes of admission to the program (including the determination of income eligibility or any income targeting that may be applicable). D. OCCUPANCY REQUIREMENTS The PHA must compute all applicable income of every family member, including those who are temporarily absent (see “Temporary Absence of Family Members” below). It is the responsibility of the head of household to report changes in family composition. Temporary Absence of Family Members Any member of the household who is away from the unit for less than thirty days will be considered temporarily absent. Permanent Absence of Family Members Any member of the household, except minors and full-time students, will be considered permanently absent if s/he is away from the unit for more than thirty consecutive days in a twelve-month period, except as otherwise provided in this chapter. Income of persons permanently absent will not be counted. If the spouse is temporarily absent and in the military, all military pay and allowances (except hazardous duty pay when exposed to hostile fire and any other exceptions to military pay HUD may define) is counted as income. Reporting Absences to the PHA Reporting changes in household composition is both a HUD and a PHA requirement. If a family member leaves the household, the family must report this change to the PHA, in writing, within 30 days of the change and certify as to whether the member is temporarily absent or permanently absent. The PHA may conduct an interim evaluation for changes, which affect the Total Tenant Payment in accordance with the interim policy. Absence of Entire Family These policy guidelines address situations when the family is absent from the unit, but has not moved out of the unit (For information on move out notification, please see Chapter 14 of this Administrative Plan). In cases where the family has moved out of the unit, the PHA may terminate assistance in accordance with appropriate termination procedures contained in this Plan. Families must notify the PHA within seven days after leaving the unit, if they are going to be absent from the unit for more than thirty consecutive days. If the entire family is absent from the assisted unit for more than sixty consecutive days, the unit will be considered to be vacated and the assistance will be terminated. If it is determined that the unit is considered to be vacated, the PHA will terminate the HAP contract, terminate the family’s assistance and immediately stop any future payments. In order to determine if the family is absent from the unit, the PHA may: • Conduct a home visit • Write letters to the family at the unit • Telephone the family at the unit • Interview neighbors • Contact emergency contacts • Verify if utilities are in service • Check with the post office • Obtain written or verbal verification from the Owner A person with a disability may request an extension of time as an accommodation, provided that the extension does not go beyond the HUD-allowed 180 consecutive days limit. If the absence which resulted in termination of assistance was due to a person's disability, and the PHA can verify that the person was unable to notify the PHA in accordance with the family's responsibilities, and if funding is available, the PHA may reinstate the family as an accommodation, if requested by the family. Absence due to Medical Reasons If any family member leaves the household to enter a facility such as hospital, nursing home, or rehabilitation center, the PHA will seek advice from a reliable qualified source as to the likelihood and timing of their return. If the verification indicates that the family member will be permanently confined to a nursing home, the family member will be considered permanently absent. If the verification indicates that the family member will return in less than 120 days consecutive days, the family member will not be considered permanently absent. If the person who is determined to be permanently absent is the sole member of the household, assistance will be terminated in accordance with the PHA's "Absence of Entire Family" policy. Absence Due to Full-time Student Status Full time students under twenty-four years of age, who attend school away from the home, will be considered as part of the household (for calculating subsidy standards) if they live with the family for more than 183 days in a year. Absence due to Incarceration If the sole member is incarcerated for more than thirty consecutive days, s/he will be considered permanently absent and the PHA will stop providing assistance payments. Any member of the household, other than the sole member, will be considered permanently absent if s/he is incarcerated for thirty consecutive days in accordance with the “Permanent Absence of Family Members” section above. The PHA will determine if the reason for incarceration is for drug-related or violent criminal activity and take appropriate action (see “Denial or Termination of Assistance”, Chapter 15 of this Administrative Plan.). Absence due to Military Service Absence of the Head of Household or the spouse or partner, due to military service, will be considered a temporary absence. Absence of Children due to Placement in Foster Care If the family includes a child or children temporarily absent from the home due to placement in foster care, the PHA will determine from the appropriate agency when the child/children will be returned to the home. If the time period is to be greater than six consecutive months from the date of removal of the children, the Voucher size will be reduced. If all children are removed from the home permanently, the voucher size will be reduced in accordance with the PHA's subsidy standards. Caretaker for Children If neither parent remains in the household and the appropriate agency has determined that another adult is to be brought into the assisted unit to care for the children for an indefinite period, the PHA will treat that adult as a visitor for the first ninety days. Any children will then be considered the remaining members of the participant family. If the court has not awarded custody or legal guardianship, but the action is in process, the PHA will secure verification from social services staff or the attorney as to the status. If the appropriate agency cannot confirm the guardianship status of the caretaker, the PHA will review the status at thirty-day intervals. If court-awarded custody or legal guardianship has been awarded to the caretaker, and the caretaker qualifies under all program criteria, the lease may be transferred to the caretaker, who becomes the head of household subject to all program rules. The PHA will work with the appropriate service agencies to provide a smooth transition in these cases. Visitors Any adult not included on the HUD 50058 who has been in the unit more than thirty consecutive days without PHA approval, or a total of thirty days in a twelve month period, will be considered to be living in the unit as an unauthorized household member. The following items may be considered in demonstration of residence in the assisted household: • Absence of evidence of any other address will be considered verification that the visitor is a member of the household. • Statements from neighbors and/or the landlord. • Use of the unit address as the visitor's current residence for any purpose that is not explicitly temporary. The burden of proof that the individual is a visitor rests on the family. In the absence of such proof, the individual will be considered an unauthorized member of the household and the PHA will terminate assistance since prior approval was not requested for the addition. Examples of acceptable methods of proof that the visitor is not a resident are (three are required): • mail • address of record given to any federal, state, or public entity • lease for current residence • utility bills • address of record from employer • credit report history In a joint custody arrangement, if the minor is in the household less than one hundred eighty three (183) days per year, the minor will be considered to be an eligible visitor and not a family member. If both parents are participating in the HCV program, only one parent would be able to claim the child for deductions and for determination for the occupancy standards. Reporting Changes to Owner and PHA Reporting changes in household composition to the PHA is both a HUD and a PHA requirement. The family obligations require the family to request PHA approval to add any other family member as an occupant of the unit and to inform the PHA of the birth, adoption or court-awarded custody of a child. The family must request prior approval of additional household members in writing. If any new family member is added, the income of the additional member will be included in the family income as applicable under HUD regulations. If the family does not obtain prior written approval from the PHA, any person the family has permitted to move in will be considered an unauthorized household member. An interim reexamination will be conducted for any additions to the household. In addition, the lease may require the family to obtain prior written approval from the owner when there are changes in family composition other than birth, adoption or court awarded custody. E. REMAINING MEMBER OF TENANT FAMILY - RETENTION OF VOUCHER Only a current remaining family member may retain the voucher in the event the head of household ceases to be in the home. To be considered the remaining member of the tenant family, the member must have been a part of the household at the time the family began program participation unless, the remaining member is a minor, co-head (upon approval), or an elderly participant previously authorized by the PHA, or has been approved for add-on to the family household due to one of the following reasons: • Marriage or marital-type relation • Minor of the immediate family who had been living elsewhere Notice: A person entering the household who has been assigned through the courts or City, County or State Social Service agency to act as the legal guardian to the remaining minor children household members is not eligible to retain the voucher, except for the period they are assigned to act as the legal guardian. When the person ceases to act as the legal guardian or the children move from the home, the legal guardian has no right to retain the voucher. F. WAGES FROM EMPLOYMENT WITH THE PHA OR RESIDENT ORGANIZATION Upon employment with the PHA or officially recognized Resident Organization, the full amount of employment income received by the person is counted. There is no exclusion of income for wages funded under the 1937 Housing Act Programs, which includes Public Housing and the Housing Choice Voucher program. G. AVERAGING INCOME When annual income cannot be anticipated for a full twelve months, the PHA will average known sources of income that vary to compute an annual income. If there are bonuses or overtime, which the employer cannot anticipate for the next twelve months, bonuses and overtime received the previous year will be used (If not used in the prior year.). Income from the previous year may be analyzed to determine the amount to anticipate when third party or check-stub verification is not available. If by averaging an estimate can be made for those families whose income fluctuates from month to month, this estimate will be used so the tenant rent will not change from month to month. The method used depends on the regularity, source and type of income. H. MINIMUM INCOME There is no minimum income requirement. Families reporting zero income will be required to complete an interim recertification every 90 days. They must provide a written statement regarding their means of basic subsistence, such as food, utilities, transportation, etc. If the family’s expenses exceed their known income, the PHA will make inquiry of the head of household as to the nature of the family’s accessible resources. The PHA will request credit checks for all adult members of families that report zero income. Where credit reports show credit accounts open and payments current, the PHA will take action to investigate the possibility of fraud or program abuse. I. INCOME OF PERSON PERMANENTLY CONFINED TO NURSING HOME If a family member is permanently confined to a hospital or nursing home and there is a family member left in the household, the PHA will exclude the income of the person permanently confined to the nursing home and give the family no deductions for medical expenses of the confined family member. J. REGULAR CONTRIBUTIONS AND GIFTS [24 CFR 5.609(b)(7)] Regular contributions and gifts are counted as income for calculation of the Total Tenant Payment. After 6 months regular loans will be considered income. Any contribution or gift received every three months or more frequently will be considered a "regular" contribution or gift, unless the amount is less than $400 per year. This includes rent and utility payments made on behalf of the family and other cash or non-cash contributions provided on a regular basis. It does not include casual contributions or sporadic gifts. (See "Verification”, for further definition.) If the family's expenses exceed its known income, the PHA will inquire of the family regarding contributions and gifts. K. ALIMONY AND CHILD SUPPORT [24 CFR 5.609(b)(7)] Regular alimony and child support payments are counted as income for calculation of the Total Tenant Payment. If the amount of child support or alimony received is less than the amount awarded by the court, the PHA will use the amount awarded by the court unless the family can verify that they are not receiving the full amount and verification of item(s) below are provided. The PHA will accept verification that the family is receiving an amount less than the award if: • The PHA receives verification from the agency responsible for enforcement or collection. or • The family furnishes documentation of child support or alimony collection action filed through a child support enforcement/collection agency, or has filed an enforcement or collection action through an attorney. It is the family's responsibility to supply a certified copy of the divorce decree. L. LUMP-SUM RECEIPTS [24 CFR 5.609(b)(3) and 24 CFR 5.603(b)] Lump-sum additions to family assets, inheritances, deferred employment income, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains, and settlement for personal or property losses, are not included in income but may be included in assets. Lump-sum payments caused by delays in processing periodic payments such as unemployment or welfare assistance are counted as income. Lump sum payments from Social Security or SSI are excluded from income, but any amount remaining will be considered an asset. Deferred periodic payments which have accumulated due to a dispute will be treated the same as periodic payments which are deferred due to delays in processing. In order to determine the amount of retroactive tenant rent that the family owes as a result of the lump sum receipt, the PHA uses a calculation method which calculates retroactively. Retroactive Calculation Methodology The PHA will go back to the date the lump-sum payment was received, or to the date of admission, whichever is closer. The PHA will determine the amount of income for each certification period, including the lump sum, and recalculate the tenant rent for each certification period to determine the amount due the PHA. The amount owed "retroactive" is due and payable to the PHA. At the PHA's option, the PHA may enter into a repayment agreement with the family. The amount owed by the family is a collectible debt even if the family becomes unassisted. Attorney Fees The family's attorney fees may be deducted from lump-sum payments when computing annual income if the attorney's efforts have recovered a lump-sum compensation, and the recovery paid to the family does not include an additional amount in full satisfaction of the attorney fees. M. CONTRIBUTIONS TO RETIREMENT FUNDS - ASSETS [24 CFR 5.609(b) (3) and 24 CFR 5.603(b)] Contributions to company retirement/pension funds are handled as follows: • While an individual is employed, count as assets only amounts the family can withdraw without retiring or terminating employment. • After retirement or termination of employment, count any amount the employee elects to receive as a lump sum. N. ASSETS DISPOSED OF FOR LESS THAN FAIR MARKET VALUE [24 CFR 5.603(b)] The PHA must count assets disposed of for less than fair market value during the two years preceding initial certification or reexamination. The PHA will count the difference between the market value and the actual payment received in calculating total assets. Assets disposed of as a result of foreclosure or bankruptcy is not considered to be assets disposed of for less than fair market value. Assets disposed of as a result of a divorce or separation is not considered to be assets disposed of for less than fair market value. The PHA's minimum threshold for counting assets disposed of for less than fair market value is $5000. If the total value of assets disposed of within a two-year period is less than $5000, they will not be considered an asset. O. Student Income [Final Rule 5036–F–01] The student must meet all program eligibility and screening criteria. In addition, any financial assistance that the student receives in excess of tuition must be included as income when determining initial and continued eligibility of the student, unless the student is 24 years of age or older with dependent children or the student is within the family with their parents who are applying or are current participants. The following types of financial assistance that must be considered as income are the Pell Grant, The Federal Supplemental Educational Opportunity Grant (FSEOG), Academic Achievement Incentive Scholarship, State assistance under the Leveraging Educational Assistance Partnership Program, the Robert C. Byrd Honors Scholarship Program, and Work Study (FWS) programs. Loans are not considered income for purposes of determining student eligibility for the Housing Choice Voucher Program. Non-tuition financial aid provided for education is counted unless the student is 24 years of age or older with a dependent child. In cases where the student is not considered an “independent student,” both the student’s and parents’ income are considered for eligibility purposes. Independent status must be verified by: • Obtaining address information sufficient to determine that the student has maintained a separate household for at least one year, OR the student must (a) be an orphan or ward of the court through the age of 18, (b) have a dependent parent, or (c) be a graduate or professional student. • Parents’ income tax returns for the past year to determine whether a parent or guardian has claimed the student as a dependent, and • Written confirmation of the level of support provided by the parents to the student, including no financial assistance. The financial support is considered in determining the income eligibility of the student household. . P. CHILD CARE EXPENSES [24 CFR 5.611, 24 CFR 5.609(c)] Non-reimbursable childcare expenses for children under thirteen years of age shall be deducted from annual income if they enable a family member to actively seek employment, to be employed, or to further his or her education to comply with Federal Law. For disabled family members who are children thirteen years of age and older, childcare expenses, which enable a family member to actively seek employment, to be employed, or to further his or her education shall be considered deductible disability expenses. In the case of a child attending private school, only before or after-hours care can be counted as childcare expenses. Childcare expenses must be reasonable. Reasonable is determined by what the average allowance expense rates are in the PHA’s jurisdiction. Allowing deductions for childcare expenses is based on the following guidelines: Childcare to work: The maximum childcare expense allowed must be less than the amount earned by the person enabled to work. The "person enabled to work" will be the adult member of the household who earns the least amount of income from working. Childcare for school: The number of hours claimed for childcare may not exceed the number of hours the family member is attending school (including one hour travel time to and from school). Amount of Expense: The PHA will survey the local care providers in the community and other various surveys to determine what is reasonable. The PHA will use the collected data as a guideline. If the hourly rate materially exceeds the guideline, the PHA may calculate the allowance using the guideline. When the person who is enabled to work is a person with disabilities who receives the earned income disallowance (EID) or a full-time student whose earned income above $480 is excluded, child care costs related to enabling a family member to work may not exceed the portion of the person’s earned income that actually is included in annual income. For example, if a family member who qualifies for the EID makes $15,000 but because of the EID only $5,000 is included in annual income, child care expenses are limited to $5,000. Q. MEDICAL EXPENSES [24 CFR 5.611(a)(3)(i)] To qualify for a deduction, medical expenses must meet two essential critieria: • Must be anticipated, regular, ongoing expenses that a family expects to pay in the 12 months following examination or reexamination; and, • Must be unreimbursed and not covered by an outside source such as insurance. The medical expense deduction is limited to families whose head, spouse, cohead, or sole member is at least 62 years of age or is a person with disabilities (elderly or disabled families). If a family qualifies for medical expense deductions than the expenses of all family members are considered. Medical expenses are expenses anticipated to be incurred during the 12 months following certification or reexamination which are not covered by an outside source such as insurance. The medical allowance is not intended to give a family an allowance equal to last year’s expenses, but to anticipate regular ongoing and anticipated expenses during the coming year. Medical Expenses may include: • Services of doctors and health care professionals; • Services of health care facilities; • Medical insurance premiums; • Prescription/non-prescription medicines (prescribed by a physician and legible receipts submitted); • Transportation to treatment (cab fare, bus fare, mileage); • Dental expenses, eyeglasses, hearing aids, batteries; • Live-in or periodic medical assistance; and • Monthly payment on accumulated medical bills (regular monthly payments on a bill that was previously incurred). The allowance may include only the amount expected to be paid in the coming 12 months. When it is unclear in the HUD rules as to whether or not to allow an item as a medical expense, IRS Publication 502 will be used as a guide. Even if an expense is allowable, in order to be deductible it must be deemed an ongoing expense. Special Calculation for Households Eligible for Disability Assistance and Medical Expenses [HCV Guidebook 5-32] If an elderly family or disabled family has both medical expenses and disability assistance expenses, a special calculation is required to insure the family’s three-percent share of these expenses is applied only one time. Because the allowance for disability assistance expenses is limited by the amount earned by the person free for work, the disability allowance must be calculated before the medical allowance is calculated. When the family has disability assistance expenses greater than or equal to three percent of annual income, an allowance for disability assistance expenses is computed as described above. In such an instance, the allowance for medical expenses will be equal to the family’s total medical expenses. When a family has disability assistance expenses that are less than three percent (3%) of annual income, the family will receive no allowance for disability assistance expense. However, the allowance for medical expenses will be equal to the amount by which the sum of both disability and medical expenses exceeds three percent of annual income. If the disability assistance expense exceeds the amount earned by the person who was freed for work, the allowance for disability assistance will be capped at the amount earned by that individual. When the household is also eligible for a medical expense allowance, the three percent (3%) may have been exhausted in the first calculation it then will not be applied to medical expenses. R. PRORATION OF ASSISTANCE FOR "MIXED" FAMILIES [24 CFR 5.520] Proration of assistance must be offered to any "mixed" applicant or participant family. A "mixed" family is one that includes at least one U.S. citizen or eligible immigrant and any number of ineligible members. "Mixed" families that were participants on June 19, 1995, and do not qualify for continued assistance must be offered prorated assistance. (See "Recertifications", Chapter 12.) Applicants mixed families are entitled to prorated assistance. Families that become mixed after June 19, 1995, by addition of an ineligible member are entitled to prorated assistance. Prorated Assistance Calculation Prorated assistance is calculated by determining the amount of assistance payable if all family members were eligible and multiplying by the percent of the family members who actually are eligible. Calculations for each housing program are performed on the HUD 50058 form. S. INCOME CHANGES RESULTING FROM WELFARE PROGRAM REQUIREMENTS See “Recertifications, Chapter 12 of this Administrative Plan. T. UTILITY ALLOWANCE AND UTILITY REIMBURSEMENT PAYMENTS [24 CFR 982.517] The Agency must review its schedule of utility allowance each year, and must revise its allowances for any category if there is a change of ten 10% or more. The same utility allowance schedule is used for all tenant-based programs. The utility allowance is intended to cover the cost of utilities not included in the rent. The allowance is based on the typical cost of utilities and services paid by energy-conservative households that occupy housing of similar size and type in the same locality. Allowances are not based on an individual family's actual energy consumption. The PHA’s utility allowance schedule, and the utility allowance for an individual family, must include the utilities and services that are necessary in the locality to provide housing that complies with the housing quality standards. The PHA may not provide any allowance for non-essential utility costs, such as costs of cable or satellite television. The PHA must classify utilities in the utility allowance schedule according to the following general categories: space heating, cooking, water heating, water, sewer, trash collection; refrigerator (for tenant supplied refrigerator), range (cost of tenant-supplied range); and other specified services. An allowance for tenant-paid air conditioning will be provided in cases where the majority of housing units in the market have central air conditioning or are wired for tenant installed air conditioners. The PHA will review the utility allowance schedule annually. If the review finds a utility rate has changed by ten percent (10%) or more since the last revision of the utility allowance schedule, the schedule will be revised to reflect the new rate. Revised utility allowances will be applied in a participant family's rent calculation at their next reexamination. The approved utility allowance schedule is given to families along with their voucher. The utility allowance is based on the actual unit size selected. Where families provide their own range and refrigerator, the PHA will establish an allowance adequate for the family to purchase or rent a range or refrigerator, even if the family already owns either appliance. When the calculation on the HUD 50058 results in a utility reimbursement payment due the family, the PHA will provide a utility reimbursement payment for the family each month. The check will be made out directly to the tenant. Chapter 7 VERIFICATION [24 CFR Parts 5, 903, 906 982.516, 982.551 and Notice PIH 2004-18 ] INTRODUCTION HUD regulations require that the factors of eligibility and Total Tenant Payment and Family Share be verified by the PHA. PHA staff will obtain written verification from independent sources whenever possible and will document tenant files whenever third party verifications are not available and why third party verification was impossible to obtain. Applicants and program participants must provide true and complete information to the PHA whenever information is requested. The PHA's verification requirements are designed to maintain program integrity. This chapter explains the PHA's procedures and standards for verification of preferences, income, assets, allowable deductions, family status, and changes in family composition. The PHA will obtain proper authorization from the family before requesting information from independent sources. A. METHODS OF VERIFICATION AND TIME ALLOWED The PHA will verify information through the five methods of verification acceptable to HUD in the following order: • Up Front Verification (when available) • Third-Party Written • Third Party Oral • Review of Tenant Supplied Documents • Tenant Self-Certification The PHA will allow ten (10) days for return of third-party verifications and allow ten days to obtain other types of verifications before going to the next method. The PHA will document the file as to the reason third-party written or oral verification was not used. For applicants, verifications may not be more than sixty days old at the time of the initial voucher issuance. Documents must not be more than thirty calendar days old at time of receipt. The PHA will not delay the processing of an application or recertification beyond a reasonable and appropriate time period because a third party information provider does not return the verification in a timely manner. Upfront Income Verification Upfront Income Verification (UIV) is the highest level of third party verification. The PHA uses a HUD required automated income verification system to verify tenant supplied earned income. If UIV information differs from tenant supplied inf