HOUSING AUTHORITY OF THE COUNTY OF SACRAMENTO CALIFORNIA HOUSING CHOICE VOUCHER PROGRAM ADMINISTRATIVE PLAN 2010 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 ....................................................... 2-8 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..............................................................................................2-11 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. COMPLETION OF A FULL APPLICATION……………………………………........ 3-3 F. VERIFICATION.............................................................................................................. 3-5 G. FINAL DETERMINATION AND NOTIFICATION OF ELIGIBILITY ...................... 3-5 H. 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 ........................................................ 4-4 E. INCOME TARGETING..................................................................................................4-4 F. TARGETED FUNDING ................................................................................................. 4-5 G. SPECIAL ADMISSIONS................................................................................................4-5 Chapter 5 SUBSIDY STANDARDS A. DETERMINING FAMILY UNIT (VOUCHER) SIZE .................................................. 5-1 B. EXCEPTIONS TO SUBSIDY STANDARDS................................................................ 5-4 C. UNIT SIZE SELECTED.................................................................................................. 5-5 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….6-10 F. WAGES FROM EMPLOYMENT WITH THE PHA OR RESIDENT ORGANIZATION………………………………………………………………………6-10 G. AVERAGING INCOME………………………………………………………………..6-10 H. MINIMUM INCOME…………………………………………………………………...6-11 I. INCOME OF PERSONS PERMANENTLY CONFINED TO A NURSING HOME.....6-11 J. REGULAR CONTRIBUTIONS AND GIFTS………………………………….............6-11 K. ALIMONY AND CHILD SUPPORT…………………………………………………...6-12 L. LUMP SUM RECEIPTS……………………………………………………………...... 6-12 M. CONTRIBUTIONS TO RETIREMENT FUNDS – ASSETS…………………………..6-13 N. ASSETS DISPOSED OF FOR LESS THAN FAIR MARKET VALUE……………….6-13 O. STUDENT INCOME……………………………………………………………………6-14 P. CHILD CARE EXPENSES……………………………………………………………..6-14 Q. MEDICAL EXPENSES…………………………………………………………………6-15 R. PRORATION OF ASSISTANCE FOR “MIXED” FAMILIES………………..…….....6-17 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 ............... 8-7 Chapter 9 REQUEST FOR LEASE APPROVAL AND CONTRACT EXECUTION A. REQUEST FOR TENANCY APPROVAL..................................................................... 9-1 B. ELIGIBLE TYPES OF HOUSING ................................................................................. 9-2 C. LEASE AND TENANCY ............................................................................................... 9-3 D. SEPARATE AGREEMENTS ......................................................................................... 9-4 E. RENT LIMITATIONS .................................................................................................... 9-5 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.........................................................................................................9-6 I. CONTRACT EXECUTION PROCESS.......................................................................... 9-6 J. CHANGE IN UTILITY/APPLIANCE RESPONSIBILITY……………………………9-7 Chapter 10 HOUSING QUALITY STANDARDS AND INSPECTIONS A. GUIDELINES/TYPES OF INSPECTIONS.................................................................. 10-1 B. INITIAL HQS INSPECTION........................................................................................ 10-2 C. ANNUAL HQS INSPECTIONS .................................................................................. 10-3 D. SPECIAL/COMPLAINT INSPECTIONS .................................................................... 10-4 E. QUALITY CONTROL INSPECTIONS ....................................................................... 10-4 F. SINGLE CYLINDER DEAD BOLT LOCK……………………………………….….10-5 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 ................................................... 10-8 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.................................................... 11-3 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..................................................................................................... 11-6 Chapter 12 RECERTIFICATION’S A. ANNUAL RECERTIFICATIONS ................................................................................ 12-1 B. REPORTING INTERIM CHANGES............................................................................ 12-3 C. OTHER INTERIM REPORTING ISSUES................................................................... 12-4 D. NOTIFICATION OF RESULTS OF RECERTIFICATION ........................................ 12-5 E. TIMELY REPORTING OF CHANGES IN FAMILY COMPOSITION .................... 12-6 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 ............................................................................................................. 13-3 F. OUTGOING PORTABILITY ....................................................................................... 13-3 G. INCOMING PORTABILITY........................................................................................13-4 Chapter 14 CONTRACT TERMINATIONS A. CONTRACT TERMINATION ..................................................................................... 14-1 B. TERMINATION BY THE FAMILY ............................................................................ 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. AUTOMATIC TERMINATION OF HAP CONTRACT……………………………15-11 F. ZERO HAP ASSISTANCE TENANCIES.................................................................. 15-11 G. OPTION NOT TO TERMINATE FOR MISREPRESENTATION ........................... 15-11 H. MISREPRESENTATION IN COLLUSION WITH OWNER.................................... 15-11 I. MISSED APPOINTMENTS AND DEADLINES ...................................................... 15-12 Chapter 16 OWNER DISAPPROVAL AND RESTRICTION A. DISAPPROVAL OF OWNER ...................................................................................... 16-1 B. OWNER/AGENT RESTRICTIONS…………………………………………………..16-3 Chapter 17 OWNER OR FAMILY DEBTS TO THE PHA A. REPAYMENT OF DEBT TO THE PHA ..................................................................... 17-1 B. PROGRAM FRAUD………………………………...….……..…………….....……...17-2 C. WRITING OFF DEBTS ................................................................................................ 17-3 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-4 F. PLACEMENT OF DOCUMENTS, EVIDENCE AND STATEMENTS OBTAINED BY THE PHA............................................................................................PI-4 G. CONCLUSION OF THE PHA'S INVESTIGATIVE REVIEW....................................PI-5 H. EVALUATION OF THE FINDINGS............................................................................PI-5 I. FAMILY – CAUSED ERRORS AND PROGRAM ABUSE .......................................PI-5 J. CODE OF CONDUCT…………….…………………………………………………...PI-7 K. FRAUD AND/OR MISREPRESENTATION COMMITTED BY A PERSON OR GROUP ……………………………………………………………………………….PI-8 ADDENDUM #2 - PROJECT-BASED HOUSING CHOICE VOUCHER PROGRAM 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, AND CONTRACT TERMINATION…….....PB-9 5. ELIGIBILITY FOR ADMISSION…………………………………………………..PB-14 APPLYING FOR ADMISSION……………………………………………………..PB-15 A. OPENING/CLOSING OF THE WAITLIST ……………………...………..PB-15 B. FINAL DETERMINATION AND NOTIFICATION OF ELIGIBILITY......PB-15 7. ESTABLISHING PREFERENCES AND MAINTAINING THE WAITING LIST/TENANT SELECTION……………………………………………………….PB-16 A. TYPES OF WAITING LISTS……………………………………………….PB-16 B. DEFINITION OF PREFERENCES…...…………………………………….PB-17 C. MULTIPLE WAITING LISTS……………………..…….…………………PB-18 8. HOUSING QUALITY STANDARD AND INSPECTION (HQS)…………………PB-21 9. MOVES WITH CONTINUED ASSISTANCE/PORTABILITY………………......PB-22 10. SUPPORTIVE SERVICES…………………………………………………………PB-24 Chapter 1 – Statement of Policies and Objectives 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 and State laws as well as all Federal, State and local Fair Housing laws and regulations. A. HOUSING CHOICE VOUCHER PROGRAM MISSION STATEMENT The mission of the HCV Program is 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. 1-1 2010 Draft Administrative Plan Chapter 1 – Statement of Policies and Objectives • 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 1-2 2010 Draft Administrative Plan Chapter 1 – Statement of Policies and Objectives 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 2010 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, including but not limited to 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. 1-3 2010 Draft Administrative Plan Chapter 1 – Statement of Policies and Objectives An applicant or a participant with a disability must first request an 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]. As referenced in 24 CFR 9.103, “(2) The term ``individual with disabilities'' does not include: An individual who is currently engaging in the illegal use of drugs…[t]his exclusion, however, does not exclude an individual [whose drug use is their only disability] with disabilities who-- (A) Has successfully completed a supervised drug rehabilitation program, and is no longer engaging in the illegal use of drugs, or has otherwise been rehabilitated successfully, and is no longer engaging in such use; (B) Is participating in a supervised rehabilitation program, and is no longer engaging in such use”.” Methods Used to Certify a Person with a Disability and the Need for a Reasonable Accommodation 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. 1-4 2010 Draft Administrative Plan Chapter 1 – Statement of Policies and Objectives Once the individual’s disabled status is established, a professional third-party, competent to make an assessment, 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 (such as when a family requests an additional bedroom for medical equipment) 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. When the request for accommodation is denied, the denial letter will indicate that the applicant may contact staff to discuss alternative modifications. Additionally, the applicant may submit another request for accommodation at any 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 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. 1-5 2010 Draft Administrative Plan Chapter 1 – Statement of Policies and Objectives 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. 1-6 2010 Draft Administrative Plan Chapter 1 – Statement of Policies and Objectives 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 PHA 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 owners 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 1-7 2010 Draft Administrative Plan Chapter 1 – Statement of Policies and Objectives 7. Expanding Housing Opportunities 8. FMR / exception rent & Payment Standards 9. Annual Reexaminations 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. 1-8 2010 Draft Administrative Plan Chapter 1 – Statement of Policies and Objectives 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, Spanish, Russian and Vietnamese 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. 7) When at least 5% of the population of Sacramento County speak a non-English language, the Housing Authority will ensure that any outreach to the general community (i.e. when a waiting list opens) is done in those languages, in both written and verbal media. 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. 1-9 2010 Draft Administrative Plan Chapter 1 – Statement of Policies and Objectives • 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. 1-10 2010 Draft Administrative Plan Chapter 2 - Eligibility for Admission 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 six 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) 2-1 2010 Draft Administrative Plan Chapter 2 - Eligibility for Admission • 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). • Any applicant who is a current or former conventional public housing resident with SHRA must pay all debts to SHRA before a voucher may be issued. 2-2 2010 Draft Administrative Plan Chapter 2 - Eligibility for Admission • All applicants to the HCV program must be in “Good Standing”. Please see the glossary for a definition of “Good Standing”. • If a family incurred a debt to SHRA, and has the debt discharged through bankruptcy court, the PHA cannot require them to repay the debt. 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. 2-3 2010 Draft Administrative Plan Chapter 2 - Eligibility for Admission 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 Assistance shall be denied to any single Head of Household student who • 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 not individually 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 OR the student meets the Department of Education definition of independent student. 2-4 2010 Draft Administrative Plan Chapter 2 - Eligibility for Admission • The student is not claimed as a dependent by a parents or a legal guardian pursuant to IRS regulations • The student must obtain a certification which states the amount of financial assistance that will be provided by the parents, signed by the individual providing the support. The certification is required even if no assistance will be provided. 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). • May not be a spouse or co-head. • Must be at least 18 years old, unless they are an emancipated minor. An existing household member may not be approved as a Live-in Aide. 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. 2-5 2010 Draft Administrative Plan Chapter 2 - Eligibility for Admission 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. A person who owes a debt to SHRA may not be approved as a live-in aide. A Live-in Aide has no residual rights to the voucher in the event the head of household or other adult family members cease to participate in the program. 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. 2-6 2010 Draft Administrative Plan Chapter 2 - Eligibility for Admission Applicants with Non-Biological Minor Children: An applicant or participant household who wishes to include a non-biological child(ren) must provide documentation they are authorized to act as a guardian to the child(ren). Documentation may include: 1. A notice from the Department of Human Assistance verifying the child is in the home of the applicant/participant; 2. A letter of placement from a foster care or adoption agency; or 3. A notarized letter from the parent of the child stating the applicant/participant has been granted custody of the child; and a letter from each school aged child’s school verifying the address at which the child is registered and the person who is listed as the guardian. 4. A court ordered guardianship order. If SHRA receives information contradicting documentation provided by applicant/participant or other parties related to the custody of the child(ren), SHRA may refuse to add the child(ren) to the household until it receives conclusive evidence of guardianship such as letters of guardianship from the courts or a letter from an agency known to provide verification, such as the Department of Human Assistance. 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. 2-7 2010 Draft Administrative Plan Chapter 2 - Eligibility for Admission • 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 six years and older. This requirement also applies to persons joining the family after admission to the program. A Social Security number must be received by SHRA before a voucher is issued to the applicant. Defaced social security card will not be accepted. Failure to furnish verification of social security numbers is grounds for denial of assistance. E. CITIZENSHIP/ELIGIBLE IMMIGRATION STATUS [24 CFR Part 5, Subpar0t 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. 2-8 2010 Draft Administrative Plan Chapter 2 - Eligibility for Admission 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 Act (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). SHRA will provide all applicants and participant information about their rights under the VAWA at the initial program briefing. 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: 2-9 2010 Draft Administrative Plan Chapter 2 - Eligibility for Admission • 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 owner 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. 2-10 2010 Draft Administrative Plan Chapter 2 - Eligibility for Admission 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 non-citizen status. See "Complaints and Appeals", Chapter 18 for additional information about reviews and hearings. 2-11 2010 Draft Administrative Plan Chapter 3 -Applying For Admission 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 3-1 2010 Draft Administrative Plan Chapter 3 -Applying For Admission 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. “Duplicate Pre-Application” is defined in the glossary. • Pre-applications submitted that meet the income limit and HCV Preference requirements will be submitted through a computerized random lottery selection process and placed on the waiting list. • The assigned lottery number is used to determine the family’s placement on the waiting list. • 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 are current. 3-2 2010 Draft Administrative Plan Chapter 3 -Applying For Admission • 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 or electronically if the application is completed online. 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 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 the spouse or cohead, another adult who is on the original application may become the head of household. SHRA will consider the following when making a decision about who will retain the position on the waitlist or the voucher: • 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. 3-3 2010 Draft Administrative Plan Chapter 3 -Applying For Admission 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 may be mailed to the applicant. 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 scheduled appointment, the PHA will withdraw the applicant from the waitlist. If the applicant contacts the PHA within 10 days of the missed appointment the PHA may reschedule the appointment with “good cause”(as defined in the Glossary of this Admin Plan). 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. 3-4 2010 Draft Administrative Plan Chapter 3 -Applying For Admission 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. 3-5 2010 Draft Administrative Plan Chapter 4 - Establishing Preferences and Maintaining the Waiting List 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. 4-1 2010 Draft Administrative Plan Chapter 4 - Establishing Preferences and Maintaining the Waiting List 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. The family must meet the waitlist preferences at the time the family is selected from the waitlist regardless of the amount of time the family has been on the waitlist. 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. 4-2 2010 Draft Administrative Plan Chapter 4 - Establishing Preferences and Maintaining the Waiting List • (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 will attempt to verify the information provided by the applicant, in order to determine the applicant’s qualification for the rent burden preference. In the absence of a rental lease or contract with supporting rent receipts, the PHA will employ one of the following methods, listed in order of preference, to estimate the applicant cost for rent or utilities: 1. Accept the amount the applicant claims to be paying for rent and utilities when there is a written notice from the person from whom they are renting and it is accompanied with cancelled checks, money order receipts or cashier’s check stubs; 2. Accept the amount listed on the Housing Need Declaration with supporting payment documentation, including cancelled checks and money order receipts, or cashier’s check stubs; or 3. In the absence of all documentation, accept the rental amount to be the established local Fair Market Rent (FMR) for the bedroom size the applicant is renting. 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. 4-3 2010 Draft Administrative Plan Chapter 4 - Establishing Preferences and Maintaining the Waiting List 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 the purge letter is returned to SHRA by the Post Office, the letter will be maintained in the file. If the applicant contacts SHRA within fifteen days from the purge deadline to report a change in address, they will be given the opportunity to update their address and be reinstated. .If an applicant is removed from the waiting list for failure to respond after the fifteen day grace period, they will not be reinstated. 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.” 4-4 2010 Draft Administrative Plan Chapter 4 - Establishing Preferences and Maintaining the Waiting List 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. 4-5 2010 Draft Administrative Plan Chapter 5 - Subsidy Standards 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. The subsidy standard will not be increased for additions to the family unless the addition is due to birth, adoption or court-awarded custody. A family that consists of a pregnant woman (with no other persons) must be treated as a two person family. The family unit size for any family consisting of a single person must be either a zero or a one- bedroom unit. 5-1 2010 Draft Administrative Plan Chapter 5 - Subsidy Standards Spousal/Partner Additions If the household size increases due to the addition of children with a spouse or partner, the subsidy standard will be increased to accommodate them as long as the spouse/partner has legal custody, in accordance with this Chapter. The family is not required to move unless the addition of family members creates an underhoused condition, as defined in the HQS guidelines for determining unit size, as indicated in Section C of this Chapter, “Unit Size Selected”. Adding Additional Members to the Household All additions except for birth, adoption and court-awarded custody must have the prior approval of the owner and the PHA. Such additions will be subject to verification as outlined in Chapter 2 of this Administrative Plan, “Applicants with Non-Biological Minor Children”. Approvable additions may include a: • Spouse or partner, and their minor children • Minor who had been part of the assisted household who moved out and is returning to the household • PHA pre-approved live-in aide • Mother, father, brother, sister, child, grandchild or grandparent to the head or spouse. The PHA will not approve these additions if they consist of more than one person. Additions to the family may be approved without increasing the bedroom size unless the addition is due to birth, adoption or court-awarded custody. A request to add additional members to the household will be denied if it causes the family to be under-housed unless the addition is due to a spousal addition, birth, adoption or court-awarded custody. Foster Children For Applicants: 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 six or more months. For Participants: A family may request at any time to have foster children or foster adults, the HA will add such members to the family composition, however the addition will not be reflected in subsidy calculation, until they have been verified as being in the household for six months. 5-2 2010 Draft Administrative Plan Chapter 5 - Subsidy Standards Before any foster child or foster adult can be added to the household, the owner of the property must have agreed to allow them to reside in their unit. Any participant or applicant that has foster children or adults will be required to report within 30 days of any foster child or foster adult coming into or leaving the home, just as any change in household composition must be reported within 30 days. They will be required to sign an acknowledgement noting that they are aware of this requirement. 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 are expected to be reunited with their parents within six months 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 and written confirmation must be submitted to the PHA within 30 days of the children’s return to the home. Any changes that occur regarding family composition and income must be reported to the PHA immediately. Incoming Portability All families exercising portability into the PHA’s jurisdiction are subject to the receiving PHA’s subsidy standards. The RA approval granted by the initial PHA does not transfer with the family when the family moves into the PHA jurisdiction. Reasonable Accommodation Requests: A person with disabilities may request a reasonable accommodation in any format, verbally, in writing, and in person. The Agency will then provide a copy of the Request for Reasonable Accommodation form to the applicant/participant if appropriate. All requests for exceptions to the subsidy standards as a reasonable accommodation for a person with disabilities must be submitted to the Reasonable Accommodation Committee (RA Committee) of SHRA. The RA Committee will review the family’s request and the information from the health care provider and make a decision. If the reasonable accommodation request is approved, the bedroom size will be increased at an interim recertification, effective the first day of the month following the date of the decision, or the date that the live-in aide passes the background check, whichever comes last. If the reasonable accommodation request is denied, the applicant is sent a letter regarding the reason for the denial. The applicant may contact staff to discuss alternative modifications and may submit a revised request for a modification. 5-3 2010 Draft Administrative Plan Chapter 5 - Subsidy Standards 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)] 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 may include, but are not limited to, the following: Live-in Aide and Medical Equipment/Supplies The RA Committee may approve an additional bedroom for a live-in aide or medical equipment and/or supplies. The additional bedroom for the live-in aide will be increased after the PHA has confirmed that the live-in aide has passed background screening. A live-in aide will be added to the household the first day of the following month that the Reasonable Accommodation was approved and the background check was passed. An interim recertification will be done to add the live-in aide and an extra bedroom, unless the annual recertification has already been completed for that same effective date. In that case, the annual recertification will be corrected to add the extra bedroom and live in aide. 5-4 2010 Draft Administrative Plan Chapter 5 - Subsidy Standards An additional bedroom will not be approved for multiple aides who provide service to a participant(s) on a rotating or part-time basis. Once approved, the live-in aide must use the subsidized unit as his/her sole and primary place of residence. An additional bedroom will not be provided for the family of a live-in aide. An additional bedroom to accommodate the medical equipment and/or supplies will be effective the first day of the month following the month in which the Reasonable Accommodation was approved. When an additional bedroom has been approved for a Reasonable Accommodation (RA) and SHRA later finds that the room is not being utilized for its intended purpose, the RA approval may be rescinded and the bedroom size may be reduced. 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. Overhoused At the recertification, if a participant has had a decrease in the family size, the family has the option to be issued a new voucher to relocate or to remain in the unit which they are currently renting and incur the increase in their portion of rent. If the family chooses to remain in the unit, the subsidy standard will be lowered and the family’s rent portion may be increased. If the family chooses to move, the voucher issued will be for the correct subsidy standard. The tenant portion of rent and the current utility allowance cannot exceed 40% of the family’s adjusted income. 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, gross rent will be used as the payment standard. 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 as soon as the underhoused situation is identified. 5-5 2010 Draft Administrative Plan Chapter 5 - Subsidy Standards *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 5-6 2010 Draft Administrative Plan Chapter 6 - Factors Related to Total Tenant Payment & Family Share Determination 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. 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. Participants who are approved for a minimum rent or hardship exemption will receive a mandatory income review every ninety days. The PHA may request a credit report after ninety days once a participant has been approved for a minimum rent or hardship exception. 6-1 2010 Draft Administrative Plan Chapter 6 - Factors Related to Total Tenant Payment & Family Share Determination 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. 6-2 2010 Draft Administrative Plan Chapter 6 - Factors Related to Total Tenant Payment & Family Share Determination 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. 6-3 2010 Draft Administrative Plan Chapter 6 - Factors Related to Total Tenant Payment & Family Share Determination 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 6-4 2010 Draft Administrative Plan Chapter 6 - Factors Related to Total Tenant Payment & Family Share Determination • 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 at 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 full-time students and foster children, 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 by approved exception. Minors will be considered permanently absent if they are away from the household for 90 days or more, except for court-awarded custodial arrangement. If the spouse is out of the residence solely for the purpose of employment, the spouse will not be considered absent and their income will be counted. 6-5 2010 Draft Administrative Plan Chapter 6 - Factors Related to Total Tenant Payment & Family Share Determination 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 Head of Household may be required to provide supporting documentation that the family member who has left the home has established a separate residence. 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. A family must notify the PHA in advance of their absence from the unit if the family anticipates that they will be gone for more than thirty consecutive days. The PHA may not approve absences of a family from the unit for 60 consecutive days or more, except as described below. If the entire family is absent from the assisted unit for more than thirty consecutive days, without prior notification to the PHA, the unit will be considered to be vacated. If it is determined that the unit is considered to be vacated, the PHA will, immediately stop any future payments, and may terminate the HAP contract and the family’s assistance. Absences in excess of thirty days must be documented in writing by the family with the PHA. Extended absences do not negate the family’s obligations (e.g. to attend appointments, or return paperwork). 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 6-6 2010 Draft Administrative Plan Chapter 6 - Factors Related to Total Tenant Payment & Family Share Determination • 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 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 • If the verification indicates that the family member will return in less than 120 consecutive days, the family member will not be considered permanently absent. • In the case where the PHA verifies the family member has been away from the home in excess of 120 days, the PHA will require additional verification from a health care professional requesting verification of the anticipated return date to the home. • If the family member has not returned to the home within 30 days from the anticipated return to the home date, the PHA may issue a notice of termination. 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 and does not notify the Housing Authority, 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 6-7 2010 Draft Administrative Plan Chapter 6 - Factors Related to Total Tenant Payment & Family Share Determination 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.). If the PHA determines that any family member has been incarcerated for more than 30 days and did not notify the PHA within 30 days of the incarceration date, a termination of the family’s assistance may be issued. If the reason for the absence is due to an incarceration, the family member who was incarcerated may undergo a new criminal background check. 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. The parent will be required to provide a letter to the PHA that includes the anticipated return date of the child(ren) in order to be considered for a larger voucher size. 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 only remaining member/s of the assisted family is/are minor(s), the PHA may, at its discretion and subject to all eligibility criteria, allocate the former voucher holder’s HCV assistance to a person who was not previously part of the assisted family, but who has gained legal custody of the minor(s). If legal custody or guardianship cannot be established within 60 days of the date the voucher holder left the unit, or if the person obtaining custody, or guardianship of the minor/s does not meet program eligibility criteria, the PHA will notify the family residing in the unit that the housing assistance and the HAP contract are being terminated. 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 6-8 2010 Draft Administrative Plan Chapter 6 - Factors Related to Total Tenant Payment & Family Share Determination 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. Visitors Any adult or minor child 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 owner. • 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 6-9 2010 Draft Administrative Plan Chapter 6 - Factors Related to Total Tenant Payment & Family Share Determination 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 A spouse or co-head will inherit the voucher in the absence of the Head. In the absence of a spouse or co-head, an original family member may retain the voucher if that member has been part of the household for the past 12 months. A household member may inherit the voucher even if they were not part of the original household as long as they have been part of the household for the past 12 months and they are: • a minor, or • an elderly person. 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. 6-10 2010 Draft Administrative Plan Chapter 6 - Factors Related to Total Tenant Payment & Family Share Determination 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 and an income checklist at each interim recertification until the household ceases to report zero income. The PHA will also require the family to provide written explanation of the sources of funds which are being used to maintain any credit account payments. 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 remaining family member, the PHA will exclude the income of the person permanently confined to the nursing home and give the family no deductions for medical expenses for the confined family member The remaining family member’s voucher size eligibility will be reassessed at the next annual recertification. J. REGULAR CONTRIBUTIONS AND GIFTS [24 CFR 5.609(b)(7)] 6-11 2010 Draft Administrative Plan Chapter 6 - Factors Related to Total Tenant Payment & Family Share Determination Regular contributions and gifts are counted as income for calculation of the Total Tenant Payment. Loans that occur regularly for six months will be considered contributions. 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. Military Pay Income Military pay and allowances (except hazardous duty pay when exposed to hostile fire and any other exceptions to military pay HUD may define) shall be counted as income. L. LUMP-SUM RECEIPTS [24 CFR 5.609(c)(3)] 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. 6-12 2010 Draft Administrative Plan Chapter 6 - Factors Related to Total Tenant Payment & Family Share Determination 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 income derived from a 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. 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. 6-13 2010 Draft Administrative Plan Chapter 6 - Factors Related to Total Tenant Payment & Family Share Determination 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 are not considered to be assets disposed of for less than fair market value. Assets disposed of as a result of a divorce or separation are 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 [24 CFR 5.609B (9)] The student must meet all program eligibility and screening criteria. Any financial assistance received in excess of amounts received for tuition shall be considered income, except amounts received by a person over the age of 23 with dependent children.. Financial assistance does not include loan proceeds. 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 • 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. 6-14 2010 Draft Administrative Plan Chapter 6 - Factors Related to Total Tenant Payment & Family Share Determination 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. SHRA will require the family to provide verification of childcare expenses. Such verification may include but is not limited to: • Cancelled checks and/or money order receipts from a licensed or unlicensed childcare service; or • Receipts from a licensed agency providing the childcare service. Q. MEDICAL EXPENSES [24 CFR 5.611(a)(3)(i)] To qualify for a deduction, medical expenses must meet two essential criteria: 6-15 2010 Draft Administrative Plan Chapter 6 - Factors Related to Total Tenant Payment & Family Share Determination • 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, co-head, 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. SHRA will require the family to provide verification of expenses. Verification may include but is not limited to print outs and statements from a doctor certifying the anticipation of the medication and/or treatment costs for the next twelve months. Special Calculation for Households Eligible for Disability Assistance and Medical Expenses [HCV Guidebook 5-32] 6-16 2010 Draft Administrative Plan Chapter 6 - Factors Related to Total Tenant Payment & Family Share Determination 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.) Applicant 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. 6-17 2010 Draft Administrative Plan Chapter 6 - Factors Related to Total Tenant Payment & Family Share Determination 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. If the tenant and owner agree to any changes in the lease, such changes must be in writing. In order to change the utility or appliance responsibility, a 60-day written notice must be submitted 6-18 2010 Draft Administrative Plan Chapter 6 - Factors Related to Total Tenant Payment & Family Share Determination to the PHA and has to be approved prior to taking effect. Once approved, a new HAP contract must be issue 6-19 2010 Draft Administrative Plan Chapter 7 - Verification 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. 7-1 2010 Draft Administrative Plan Chapter 7 - Verification 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 information by greater than $200 per month or UIV information does not exist, the PHA must request another form of verification. Third-Party Written Verification Third-party verification is used to verify information directly with the source. Third-party written verification forms will be sent and returned via first class mail, e-mail or fax. The family will be required to sign an authorization for the information source to release the specified information. Verifications received electronically directly from the source are considered third party written verifications. The PHA will accept verifications delivered by the family as third-party (if they can be verified by other means) from agencies, including but not limited to: • Social Security Administration • Veterans Administration • Welfare Assistance • Unemployment Compensation Board • City or County Courts • Pharmacy (in regard to prescription drugs) • A Local, State or Federal Court • The Work Number • State Wage/ Income Collection Agency • TANF Third-Party Oral Verification When third-party oral verification is used, staff will be required to complete a Certification of Document Viewed or Person Contacted Form, noting with whom they spoke, the date of the conversation, and the facts provided. If provided by telephone, the PHA must originate the call. 7-2 2010 Draft Administrative Plan Chapter 7 - Verification Review of Tenant Supplied Documents In the event that third-party written or oral verification is unavailable, or the information has not been verified by the third-party within the timeline, the PHA will utilize documents provided by the family as the primary source if the documents provide complete information. All such documents, excluding government checks, will be photocopied and retained in the applicant file. In cases where documents are viewed which cannot be photocopied, staff viewing the document(s) will complete a Certification of Document Viewed or Person Contacted Form or document. In absence of third-party written or oral verification, the PHA will accept the following documents from the family provided that the document is such that tampering would be easily noted: • Printed wage stubs • Computer printouts from the employer • Other documents noted in this chapter as acceptable verification The PHA may accept faxed documents and photocopies If third-party verification is received after documents have been accepted as provisional verification, and there is a discrepancy, the PHA will utilize the third party verification. Tenant Self-Certification When verification cannot be made by third-party verification or review of documents, families will be required to submit a self-certification. Self-certification means a statement signed under penalty of perjury which must be witnessed by a staff person. In cases where self-certification is engaged, an affidavit will be provided to the tenant and signed in the presence of the staff person. B. RELEASE OF INFORMATION [24 CFR 982.516 AND 982.551, 24 CFR 5.230] All adult family members will be required to sign the HUD 9886 Release of Information/Privacy Act form. In addition, adult family members will be required to sign specific authorization forms when information is needed that is not covered by the HUD form 9886, Authorization for Release of Information/Privacy Act Notice. 7-3 2010 Draft Administrative Plan Chapter 7 - Verification Each member requested to consent to the release of specific information will be provided with a copy of the appropriate forms for their review and signature. Family refusal to cooperate with the HUD prescribed verification system will result in denial of admission or termination of assistance, it is a family obligation to supply any information and to sign consent forms requested by the PHA or HUD. C. COMPUTER MATCHING The PHA may employ computer matching with various local, State and Federal agencies. D. ITEMS TO BE VERIFIED • All income. • Full-time student status of all students who are eighteen year of age or older. • Current assets including assets disposed of for less than fair market value in the preceding two years. • Child care expense where it allows an adult family member to be employed or actively seeking employment to further his/her education. • Total medical expenses of all family members in households whose head or spouse is elderly or disabled. • Disability assistance expenses to include only those costs associated with attendant care or auxiliary apparatus for a disabled member of the family, which allow an adult family member to be employed. • Disability for determination of preferences, allowances or deductions. • U.S. citizenship/eligible immigrant status • Social security numbers for all family members. • "Preference" status. • Familial or Marital status. • Verification of Reduction in Benefits for Noncompliance 7-4 2010 Draft Administrative Plan Chapter 7 - Verification The PHA will obtain written verification from the welfare agency stating that the family's benefits have been reduced for fraud or noncompliance before denying the family's request for rent reduction. • Legal Identity The following items are considered acceptable forms of legal identity: a. A valid state or federally issued identification or driver license displaying a photo of the individual, for persons at least 18 years or older. b. Birth certificates for minors. c. Documents including a photo issued by the INS. • Family Composition E. VERIFICATION OF INCOME This section defines the methods the PHA will use to verify various types of income. Employment Income PHA verification forms request the employer to specify the following: • Dates of employment • Amount and frequency of pay • Date of the last pay increase • Likelihood of change of employment status and effective date of any known salary increase during the next 12 months • Year to date earnings • Estimated income from overtime, tips, bonus pay expected during next 12 months Acceptable methods of verification include, in this order: • Employment verification form completed by the employer. 7-5 2010 Draft Administrative Plan Chapter 7 - Verification • Check stubs or earning statements, which indicate the employee's gross pay, frequency of pay or year to date earnings. • W-2 forms and income tax return forms. • Income tax returns signed by the family may be used for verifying self-employment income, or income from tips and other gratuities. • Credit Checks Applicants and program participants may be required to sign an authorization for release of information from the Internal Revenue Service for further verification of income. In cases where there are questions about the validity of information provided by the family, the PHA will require the most recent Federal income tax statements. Where doubt regarding income exists, a referral to IRS for confirmation will be made. Social Security, Pensions, Supplementary Security Income (SSI), Disability Income Acceptable methods of verification include, in this order: • Benefit verification form completed by agency providing the benefits. • Award or benefit notification letters prepared and signed by the providing agency. • Computer report electronically obtained or in hard copy. • Bank statements for direct deposit Unemployment Compensation Acceptable methods of verification include, in this order: • PHA verification form completed by the unemployment compensation agency. • Computer report electronically obtained or in hard copy, from unemployment office stating payment dates and amounts. • Payment stubs. Welfare Payments or General Assistance Acceptable methods of verification include, in this order: 7-6 2010 Draft Administrative Plan Chapter 7 - Verification • PHA verification form completed by payment provider. • Written statement from payment provider indicating the amount of grant/payment, start date of payments, and anticipated changes in payment in the next twelve months. • Computer-generated Notice of Action. • Computer-generated list of recipients from Welfare Department. Alimony or Child Support Payments Acceptable methods of verification include, in this order: • PHA verification form completed by payment provider. • Copy of latest check and/or payment stubs from Court Trustee. PHA must record the date, amount, and number of the check. • Oral verification from the District Attorney Child Support Hotline. • Copy of a separation or settlement agreement or a divorce decree stating amount and type of support and payment schedules. • Family's self-certification of amount received and of the likelihood of support payments being received in the future, or that support payments are not being received. • A written accounting or other statement from a local child support agency. If payments are irregular, the family must provide: • PHA verification form completed by parent provider. • A welfare notice of action showing amounts received by the welfare agency for child support. • A written statement from an attorney certifying that a collection or enforcement action has been filed. Net Income from a Business In order to verify the net income from a business, the PHA will view IRS and financial documents from prior years and use this information to anticipate the income for the next twelve months. Acceptable methods of verification include IRS Form 1040, including: 7-7 2010 Draft Administrative Plan Chapter 7 - Verification • Schedule C (Small Business) • Schedule E (Rental Property Income) • Schedule F (Farm Income) If accelerated depreciation was used on the tax return or financial statement, an accountant's calculation of depreciation expense, computed using straight-line depreciation rules. • Audited or un-audited financial statements of the business. • Credit report or loan application. • Documents such as manifests, appointment books, cashbooks, bank statements, and receipts will be used as a guide for the prior six months (or lesser period if not in business for six months) to project income for the next twelve months. The family will be advised to maintain these documents in the future if they are not available. • Family's self-certification as to net income realized from the business during previous years. Child Care Business If an applicant/participant is operating a licensed day care business, income will be verified as with any other business. If the applicant/participant is operating a "cash and carry" operation (which may or may not be licensed), the PHA will require that the applicant/participant complete a form for each customer which indicates: name of person(s) whose child (children) is/are being cared for, phone number, number of hours child is being cared for, method of payment (check/cash), amount paid, and signature of person providing care. If the family has filed a tax return, the family will be required to provide it. If childcare services were terminated, a third-party verification may be sent to the parent whose child was cared for. Recurring Gifts • The family must furnish a self-certification, which contains the following information: • The person who provides the gifts • The value of the gifts 7-8 2010 Draft Administrative Plan Chapter 7 - Verification • The regularity (dates) of the gifts • The purpose of the gifts Zero Income Status Families claiming to have no income will be required to execute verification forms to determine that forms of income such as unemployment benefits, TANF, SSI, etc. are not being received by the household. There will be a review of income every 90 days. Recertifications will be processed for any change in income. After 120 days of zero reported income, if there is no change in income, the PHA will run a credit report. Full-time Student Status Only the first $480 of the earned income of full-time dependent students will be counted toward family income. This $480 is disregarded for dependents, netting zero. Verification of full-time student status includes written verification from the registrar's office or other school official, indicating enrollment for sufficient number of credits to be considered a full-time student by the educational institution. Any financial assistance received in excess of amounts received for tuition shall be considered income, except amounts received by a person over the age of 23 with dependent children. Financial assistance does not include loan proceeds. F. INCOME FROM ASSETS Acceptable methods of verification include, in this order: 1. Savings Account Interest Income and Dividends • PHA verification form to be completed by relevant financial institution. • Account statements, passbooks, and/or certificates of deposit. • Broker's statements showing value of stocks or bonds and the earnings credited the family. Earnings can be obtained from current newspaper quotations or broker's oral verification. • IRS Form 1099 from the financial institution provided that the PHA must adjust the information to project earnings expected for the next twelve months. 7-9 2010 Draft Administrative Plan Chapter 7 - Verification 2. Interest Income from Mortgages or Similar Arrangements • Amortization schedule showing interest for the twelve months following the effective date of the certification or recertification. • A letter from an accountant, attorney, real estate broker, the buyer, or a financial institution stating interest due for next twelve months. (A copy of the check paid by the buyer to the family is not sufficient unless a breakdown of interest and principal is shown.) • If the family has filed a tax return they will be required to provide it. 3. Net Rental Income from Property Owned by Family • IRS Form 1040 with Schedule E (Rental Income). • Documentation of allowable operating expenses of the property: tax statements, insurance invoices, bills for reasonable maintenance and utilities, and bank statements or amortization schedules showing monthly interest expense. • Copies of latest rent receipts, leases, or other documentation of rent amounts. G. VERIFICATION OF ASSETS Family Assets The PHA will require the information necessary to determine the current cash value of the family's assets, (the net amount the family would receive if the asset were converted to cash). Acceptable verification may include any of the following: • Verification forms, letters, or documents from a financial institution or broker. • Passbooks, checking account statements, certificates of deposit, bonds, or financial statements completed by a financial institution or broker. • Quotes from a stock broker or realty agent as to net amount family would receive if they liquidated securities or real estate. • Real estate taxes statements if the approximate current market value can be deduced from assessment. • Financial statements for business assets. 7-10 2010 Draft Administrative Plan Chapter 7 - Verification • Copies of closing documents showing the selling price and the distribution of the sales proceeds. • Appraisals of personal property held as an investment. • Family's self-certification describing assets or cash held at the family's home or in safe deposit boxes. Assets Disposed of for Less than Fair Market Value (FMV) During Two Years Preceding Effective Date of Certification or Recertification For all certifications and recertifications, the PHA will obtain the family's certification as to whether any member has disposed of assets for less than fair market value within the past two years of the effective date of the certification or recertification. 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. 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. If the family certifies that they have disposed of assets for less than fair market value, verification self-certification is required that shows: (a) all assets disposed of for less than FMV, (b) the date they were disposed of, (c) the amount the family received, and (d) the market value of the assets at the time of disposition. Third party verification will be obtained wherever possible. Assets disposed of as a result of foreclosure or bankruptcies are not considered to be assets disposed of for less than fair market value. Assets disposed of as a result of a divorce or separations are not considered to be assets disposed of for less than fair market value. H. VERIFICATION OF ALLOWABLE DEDUCTIONS FROM INCOME Child Care Expenses Families must provide certification as to whether any of those payments have been or will be paid or reimbursed by outside sources. Written verification from the person who receives the payments is required. If the child care provider is an individual, s/he must provide a statement of the amount they are charging the family for their services. Verifications must specify the child care provider's name, address, telephone number, social security number, the names of the children cared for, the number of hours the child care occurs, the rate of pay, and the typical yearly amount paid, including school and vacation periods. 7-11 2010 Draft Administrative Plan Chapter 7 - Verification Acceptable Forms of childcare expense verification include a Childcare Provider Verification form in addition to one or more of the following: • Cancelled Checks • Money Order Receipts • Receipts from a state licensed childcare provider or center Medical Expenses Families, whose head or co-head is elderly or disabled are eligible to claim medical expenses will be required to submit a certification as to whether or not any expense payments have been, or will be, reimbursed by an outside source. One or more of the methods listed below will verify all expense claims: • Written verification by a doctor, hospital or clinic personnel, dentist, pharmacist, of: (a) the anticipated medical costs to be incurred by the family and regular payments due on medical bills; and (b) extent to which those expenses will be reimbursed by insurance or a government agency. • Written confirmation by the insurance company or employer of health insurance premiums to be paid by the family. • Written confirmation from the Social Security Administration of Medicare premiums to be paid by the family over the next twelve months. A computer printout will be accepted. • For attendant care, a knowledgeable professional's certification that the assistance of an attendant is necessary as a medical expense and a projection of the number of hours the care is needed for calculation purposes. The PHA may request the attendant's written confirmation of hours of care provided and amount and frequency of payments received from the family or agency (or copies of canceled checks the family used to make those payments) or stubs from the agency providing the services. • Receipts, canceled checks, or pay stubs that verify medical costs and insurance expenses likely to be incurred in the next twelve months. • Copies of payment agreements or most recent invoice that verify payments made on outstanding medical bills that will continue over all or part of the next twelve months. • Receipts or other record of medical expenses incurred during the past twelve months that can be used to anticipate future medical expenses. PHA may use this approach for "general medical expenses" such as non-prescription drugs and regular visits to 7-12 2010 Draft Administrative Plan Chapter 7 - Verification • doctors or dentists, but not for one time, nonrecurring expenses from the previous year. • The PHA will use mileage at the IRS rate, or cab, bus fare, or other public transportation cost for verification of the cost of transportation directly related to medical treatment. Assistance to Persons with Disabilities In All Cases: • Written certification from a reliable, knowledgeable professional that the person with disabilities requires the services of an attendant and/or the use of auxiliary apparatus to permit him/her to be employed or to function sufficiently independently to enable another family member to be employed. • Family's certification as to whether they receive reimbursement for any of the expenses of disability assistance and the amount of any reimbursement received. Attendant Care: • Certification of family and attendant and/or copies of canceled checks family used to make payments. • Attendant's written certification of amount received from the family, frequency of receipt, and hours of care provided. Auxiliary Apparatus: • Receipts for purchases or proof of monthly payments and maintenance expenses of or auxiliary apparatus. • In the case where the person with disabilities is employed, a statement from the employer that the auxiliary apparatus is necessary for employment. I. VERIFYING NON-FINANCIAL FACTORS Verification of Legal Identity In order to prevent program abuse, the PHA will require applicants to furnish verification of legal identity for all family members. The documents listed below will be considered acceptable verification of legal identity for adults. If a document submitted by a family is illegible or otherwise questionable, more than one of these documents may be required. • Current Driver's license or State Identification Card 7-13 2010 Draft Administrative Plan Chapter 7 - Verification • Certificate of Birth, naturalization papers • Church issued baptismal certificate • U.S. military discharge (DD 214), • U.S. Passport • Department of Human Assistance Identification Card • Company/Agency Identification Card Documents considered acceptable for the verification of legal identity for minors may be one or more of the following: • Certificate of Birth or Naturalization • Adoption papers • Custody agreement • Department of Human Assistance ID • School ID cards • Passport • Current State Identification Card or Drivers License Familial Relationships Self-certification will normally be considered sufficient verification of family relationships. In cases where reasonable doubt exists, the family may be asked to provide verification. The following verifications will be accepted: 1. Verification of relationship: • Birth Certificates • Baptismal certificates 2. Verification of guardianship: • Court-ordered assignment 7-14 2010 Draft Administrative Plan Chapter 7 - Verification • Affidavit of parent • Verification from social services agency • School records 3. Verification of Marital Status • Certificate of Marriage • Divorce Decree • Court Records Verification of Permanent Absence of Family Member If an adult member who was formerly a member of the household is reported permanently absent by the family, the PHA will consider any of the following as verification: • Husband or wife institutes divorce action, and proof of another home address. • Husband or wife institutes legal separation, and proof of another home address. • Order of protection/restraining order obtained by one family member against another. • Proof of another home address, such as utility bills, canceled checks for rent, driver’s license, or lease or rental agreement. • Statements from other agencies such as social services or a written statement from the owner or manager that the adult family member is no longer living at that location. • If the adult family member is incarcerated, a document from the Court or correctional facility should be obtained stating how long they will be incarcerated. • If no other proof can be provided, the PHA will accept a self-certification from the head of household or the spouse or co-head, if the head is the absent member. Verification of Change in Family Composition The PHA may verify changes in family composition (either reported or unreported) through letters, telephone calls, utility records, inspections, owners, neighbors, credit data, school or DMV records, IRS tax returns and other sources. 7-15 2010 Draft Administrative Plan Chapter 7 - Verification Verification of Disability Verification of disability may be receipt of SSI or SSA disability payments under Section 223 of the Social Security Act or 102(7) of the Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6001(7) or verified by appropriate diagnostician such as physician, psychiatrist, psychologist, therapist, rehabilitation specialist, or licensed social worker, using the HUD language as the verification format. This threshold is not used for determination of reasonable accommodation, (refer to Chapter 1). Verification of Citizenship/Eligible Immigrant Status Ineligible family members have either been determined ineligible or elect not to contest their status. To be eligible for assistance, individuals must be U.S. citizens or eligible immigrants. Individuals who are neither may elect not to contend their status. Eligible immigrants must fall into one of the categories specified by the regulations and must have their status verified by Immigration and Naturalization Service (INS). Each family member must declare his or her status once. Assistance cannot be delayed, denied, or terminated while verification of status is pending except that assistance to applicants may be delayed while the PHA hearing is pending. The PHA will not require citizens to provide documentation of citizenship. Citizens or Nationals of the United States are required to sign a declaration under penalty of perjury. Eligible Immigrants who were Participants and 62 or over on June 19, 1995, are required to sign a declaration of eligible immigration status and provide proof of age. Non-citizens with eligible immigration status must sign a declaration of status and verification consent form and provide their original immigration documents which are copied front and back and returned to the family. The PHA verifies the status through the INS SAVE system. If this primary verification fails to verify status, the PHA must request within ten days that the INS conduct a manual search. Ineligible family members who do not claim to be citizens or eligible immigrants must be listed on a statement of ineligible family members signed by the head of household or spouse. Non-citizen students on student visas are ineligible members even though they are in the country lawfully. They must provide their student visa but their status will not be verified and they do not sign a declaration but are listed on the statement of ineligible members. Failure to Provide If an applicant or participant family member fails to sign required declarations and consent forms or provide documents, as required they must be listed as an ineligible member. If the entire 7-16 2010 Draft Administrative Plan Chapter 7 - Verification family fails to provide and sign as required, the family may be denied or terminated for failure to provide required information. Time of Verification For applicants, verification of U.S. citizenship/eligible immigrant status occurs at the same time as verification of other factors of eligibility at the time of initial application. For family members added after other members have been verified, the verification occurs before the new family member may move in. Once verification has been completed for any covered program, it need not be repeated except that, in the case of port-in families, if the initial PHA does not supply the documents, the PHA must conduct the determination. Extensions of Time to Provide Documents The PHA will grant an extension of thirty days for families to submit evidence of eligible immigrant status. Acceptable Documents of Eligible Immigration The regulations stipulate that only the following documents are acceptable unless changes are published in the Federal Register. • Resident Alien Card (I-551) • Alien Registration Receipt Card (I-151) • Arrival-Departure Record (I-94) • Temporary Resident Card (I-688) • Employment Authorization Card (I-688B) • Receipt issued by the Bureau of Citizenship and Immigration Service, (formerly INS) for issuance of replacement of any of the above documents that shows individual's eligibility has been verified A birth certificate is not acceptable verification of status. All documents in connection with U.S. citizenship/eligible immigrant status must be kept five years. Verification of Social Security Numbers [24 CFR 5.216] Social security cards must be provided as a condition of eligibility for all family members age six and older. Verification of social security numbers will be done through a social security card issued by the Social Security Administration. 7-17 2010 Draft Administrative Plan Chapter 7 - Verification New family members will be required to have a social security card This information is to be provided at the time the change in family composition is reported to the PHA. If a participant is able to disclose the social security number but cannot meet the documentation requirements, the participant will be given 60 days from when the document was requested, to produce the social security card. If an applicant or family member does not have a Social Security card, they will have 60 days to provide the social security card. No assistance will be provided until appropriate verification can be produced. If they fail to provide this documentation, the household’s eligibility, will be terminated. In the case of an individual at least sixty-two years of age, the PHA may grant extensions in 60day increments for a total of 120 days. If, at the end of this time, the elderly individual has not provided documentation, the individual’s assistance will be terminated and the family subsidy will be pro-rated. 7-18 2010 Draft Administrative Plan Chapter 8 – Voucher Issuance and Briefings Chapter 8 VOUCHER ISSUANCE AND BRIEFINGS [24 CFR 982.301, 982.302] INTRODUCTION The PHA's goals and objectives are designed to assure that families selected to participate are equipped with the tools necessary to locate an appropriate housing unit. Families are provided sufficient knowledge and information regarding the program and how to achieve maximum benefit while complying with program requirements. When eligibility has been determined, the PHA will conduct a mandatory briefing to ensure that families are provided clear information on how the program works. The briefing will provide a broad description of owner and family responsibilities, PHA procedures, and how to lease a unit. The family will also receive a briefing packet that provides more detailed information about the program including the benefits of moving outside areas of poverty and minority concentration. This chapter describes how briefings will be conducted, the information that will be provided to families, and the policies for how changes in the family composition will be handled. A. FUNDING AVAILABILITY When funding is available, the PHA will issue vouchers to applicants whose eligibility has been determined. The number of vouchers issued must ensure that the PHA stays as close as possible to 100 percent lease-up. The PHA performs a monthly calculation to determine whether applications can be processed, the number of vouchers that can be issued, and to what extent the PHA can over-issue (issue more vouchers than the budget allows to achieve lease-up). The PHA may over-issue vouchers only to the extent necessary to meet leasing goals. All vouchers that are over-issued may be honored. If the PHA finds it is over-leased, it must adjust future issuance of vouchers in order not to exceed the ACC budget limitations over the fiscal year. B. BRIEFING TYPES AND REQUIRED ATTENDANCE [24 CFR 982.301] Initial Applicant Briefing A full HUD-required briefing will be conducted for applicant families who are determined to be eligible for assistance. The briefings will be conducted in groups. Families who attend group briefings and still have the need for individual assistance will be referred to designated staff. The purpose of the briefing is to explain how the program works and to explain the documents in the voucher holder's packet to families so that they are fully informed about the program. This 8-1 2010 Draft Administrative Plan Chapter 8 – Voucher Issuance and Briefings will enable families to utilize the program to their advantage, and it will prepare them to discuss the benefits of the program with potential owners and property managers. The PHA will not issue a voucher to a family unless the head of household has attended a briefing and signed the voucher. Applicants who provide prior notice of inability to attend a briefing will automatically be scheduled for the next briefing. Applicants who fail to attend two scheduled briefings, without prior notification and approval of the PHA, may be denied admission based on failure to supply information needed for certification. The PHA will conduct individual briefings for families with disabilities at their home, upon request by the family, if required for reasonable accommodation. Briefing Packet [24 CFR 982.301(b)] The documents and information provided in the briefing packet for the voucher program will comply with all HUD requirements. The family is provided with the following information and materials: • The term of the voucher, and the PHA policy for requesting extensions or suspensions of the voucher (referred to as tolling). • A description of the method used to calculate the housing assistance payment for a family, including how the PHA determines the payment standard for a family; how the PHA determines total tenant payment for a family and information on the payment standard and utility allowance schedule. How the PHA determines the maximum allowable rent for an assisted unit. Where the family may lease a unit. For family that qualifies to lease a unit outside the PHA jurisdiction under portability procedures, the information must include an explanation of how portability works. • The HUD required tenancy addendum, which must be included in the lease. • The form the family must use to Request For Tenancy Approval (RFTA), and a description of the procedure for requesting approval for a tenancy. • A statement of the PHA policy on providing information about families to prospective owners. • The PHA Subsidy Standards including when and how exceptions are made and how the voucher size relates to the unit size selected. • The HUD brochure on how to select a unit and the HUD brochure "A Good Place to Live" on how to select a unit that complies with HQS. • The HUD pamphlet on lead-based paint entitled Protect Your Family From Lead in Your Home. Information on Federal, State and local equal opportunity laws and a copy of the housing discrimination complaint form. The PHA will also include the pamphlet "Fair Housing: It's Your Right" and other information about fair housing 8-2 2010 Draft Administrative Plan Chapter 8 – Voucher Issuance and Briefings laws and guidelines and the phone numbers of the local fair housing agency and the HUD enforcement office. • A list of owners or other parties willing to lease to assisted families or help in the search of known units available for the voucher issued. The list includes owners or other parties who are willing to lease units or help families find units outside areas of poverty or minority concentration. • If the family includes a person with disabilities, notice that the PHA will provide a list of available accessible units known to the PHA. • The family obligations under the program. • The grounds on which the PHA may terminate assistance for a participant family because of family action or failure to act. • Notification of their rights under Violence Against Women Act (VAWA), which includes the existence of the “Certification of Domestic Violence, Dating Violence, or Stalking” form, HUD-50066, and the right to confidentiality and limits thereof. • PHA informal hearing procedures including when the PHA is required to offer a participant family the opportunity for an informal hearing, and how to request the hearing. • Information packet including an explanation of how portability works, including a list of neighboring housing agencies with the name, address and telephone number of a portability contact person at each for use by families who move under portability. (required for PHAs in MSAs) • A map showing areas representing various income levels of the jurisdiction and surrounding areas for the purpose of expanding housing opportunities for families. (required for PHAs in MSAs) • A list of properties or property management organizations that own or operate housing units outside areas of poverty or minority concentration (required for PHAs in MSAs). • The family’s rights as a tenant, and a program participant. • Requirements for reporting changes between annual recertifications. • A Reasonable Accommodation brochure. • A flyer stating a family is no longer a participant when the voucher expires if the voucher is not associated with a unit. 8-3 2010 Draft Administrative Plan Chapter 8 – Voucher Issuance and Briefings If the family includes a person with disabilities, the PHA will ensure compliance with CFR 8.6 to ensure effective communication. Move Briefing A move briefing may be held for participants who will be reissued a voucher to move. This briefing includes incoming and outgoing portable participants. The PHA will require a recertification within 120 days of a move. The PHA will perform a recertification before approving a move if the recertification is scheduled within 150 days of the request to move. Owner Briefing Briefings are held for owners monthly. The purpose of the briefing is to assure successful owner participation in the program. The briefing covers the responsibilities and roles of the owner, the family, and the PHA. C. ENCOURAGING PARTICIPATION IN AREAS WITHOUT LOW- INCOME OR MINORITY CONCENTRATION At the briefing, families are encouraged to search for housing in non-impacted areas and the PHA will provide assistance to families who wish to do so. The PHA has areas of poverty and minority concentration clearly delineated in order to provide families with information and encouragement in seeking housing opportunities outside highly concentrated areas. The PHA has maps that showing areas outside of poverty and minority concentration and has assembled information regarding the characteristics of these areas (such as job opportunities, schools, transportation, and other services) to use in briefings to inform voucher holders of the full range of areas to search for housing. The PHA will analyze when voucher holders are experiencing difficulties locating or obtaining housing units outside areas of concentration. The assistance provided to such families includes: • Providing families with a search record form to gather and record information; • Direct contact with owners; • Providing information about services in various non-impacted areas; • Formal or informal discussions with owner groups; 8-4 2010 Draft Administrative Plan Chapter 8 – Voucher Issuance and Briefings • Formal or informal discussions with social service agencies; • Meeting with rental referral companies or agencies; • Meeting with fair housing groups or agencies. D. ASSISTANCE TO FAMILIES WHO CLAIM DISCRIMINATION The PHA will give participants a copy of HUD Form 903 to file a complaint. E. SECURITY DEPOSIT REQUIREMENTS [24 CFR 982.313] The owner is not required to, but may collect a security deposit from the tenant. Security deposits charged by owners may not exceed two times the rent for an unfurnished apartment or three times the rent for a furnished apartment. For lease-in-place families, responsibility for first and last month's rent is not considered a security deposit issue. In these cases, the owner should settle the issue with the tenant prior to the beginning of assistance. F. VOUCHER ISSUANCE [24 CFR 982.204(d), 982.54(d)(2)] During the briefing session, each household will be issued a voucher that authorizes the family to search for a suitable unit. The voucher is evidence that the PHA has determined the family eligible for the program and plans to subsidize the family if the family selects a unit that can be approved under program requirements. The voucher specifies the unit size for which the family is qualified for and briefly describes how the program works and explains the family obligations under the program. Admission to the program occurs when the lease and contract become effective. After the issuance of the voucher, the subsidy standard will not be increased for additions to the family except as described in Chapter 5, under the “Exceptions to Subsidy Standards” section of this Administrative Plan. Term of Voucher [24 CFR 982.303, 982.54(d)(11)] Vouchers will be issued for a term of 60 days. The family must submit a Request for Tenancy Approval and Lease Approval within this period. 8-5 2010 Draft Administrative Plan Chapter 8 – Voucher Issuance and Briefings The effective day of the voucher will be the date the family is scheduled for the briefing. The family will be scheduled for a briefing as soon as: • They give notice of their intent to move to the PHA, • The recertification has been completed; and, • All outstanding debts have been paid to the PHA. The voucher lists the issue date and the expiration date. Voucher Extensions The PHA may approve a 30-day extension to the voucher term. All requests for an extension must be received in writing, prior to the expiration of the voucher. Any request received after the voucher has expired may be denied. Any additional extension requires a Supervisor’s approval. The PHA may request a copy of the family search record in order to grant any additional extension. To make the program accessible to a family member who is a person with disabilities additional extension options may be considered. The PHA, at its discretion, may cease granting voucher extensions for an indefinite period except if necessary as a reasonable accommodation. Tolling / Suspension of Search Time The voucher term will be suspended (the clock on the family's voucher is stopped) from the date a Request for Tenancy Approval is received until the PHA approves or denies the request. If the tenant voids a RFTA, no tolling time will be allowed. Additional time will be given to the family to choose an appropriate size unit following a reasonable accommodation decision. Expiration of the Voucher If the family does not turn in a RFTA during the term of the voucher, including any approved suspensions or extension, the voucher expires and the family is no longer eligible to participate in the Housing Choice Voucher program. The family may be mailed a letter informing them their participation in the Housing Choice Voucher program has been terminated when the voucher expired. There are no hearing rights associated with: • The expiration of the voucher, • The PHA’s refusal to extend the term of the voucher, and • The PHA’s refusal to suspend the term of the voucher. 8-6 2010 Draft Administrative Plan Chapter 8 – Voucher Issuance and Briefings A family is eligible to find a unit and receive a subsidy until the voucher expires. Once the voucher expires, including any time associated with extensions and/or tolling, they are no longer eligible for rental assistance. Assistance to Voucher Holders Families who require additional assistance during their search may call the PHA Office to request assistance. Voucher holders will be notified at their briefing session that the PHA periodically updates the listing of available units and how the updated list may be obtained. The PHA will assist families with negotiations with owners and provide other assistance related to the families' search for housing. G. VOUCHER ISSUANCE DETERMINATION FOR SPLIT HOUSEHOLDS [24 CFR 982.315] In those instances when a family assisted under the Section 8 program or an applicant becomes divided into two otherwise eligible families due to divorce, legal separation, or the division of the family, and the new families cannot agree as to which new family unit should continue to receive the assistance; lacking a determination by a court, the supervisor shall consider the following factors to determine which of the families will continue to be assisted: • Which of the two new family units 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 Documentation of these factors will be the responsibility of the requesting parties. If documentation is not provided, the PHA will terminate assistance on the basis of failure to provide information necessary for a recertification. 8-7 2010 Draft Administrative Plan Chapter 9 – Request for Tenancy Approval and Contract Execution Chapter 9 REQUEST FOR TENANCY APPROVAL AND CONTRACT EXECUTION [24 CFR 982.302] INTRODUCTION The PHA’s program operations are designed to utilize available resources in a manner that is efficient and provides eligible families with timely assistance based on the number of units that have been budgeted. The PHA’s objectives include maximizing HUD funds by providing assistance to as many eligible families and for as many eligible units as the budget will allow. After families are issued a voucher, they may search for a unit anywhere within the jurisdiction of the PHA, or outside of the PHA's jurisdiction if they qualify for portability. The family must find an eligible unit under the program rules, with an owner/owner who is willing to enter into a Housing Assistance Payments Contract with the PHA. This chapter defines the types of eligible housing, the PHA's policies that pertain to initial inspections, lease requirements, owner disapproval, and the processing of Requests for Tenancy Approval (RFTA)s. A. REQUEST FOR TENANCY APPROVAL [24 CFR 982.302, 982.305(b); 982.508] The Request for Tenancy Approval (RFTA) and a copy of the proposed lease, including the HUD prescribed tenancy addendum, must be submitted by the family during the term of the voucher. The family must submit the RFTA in the form and manner required by the PHA. The RFTA must be signed by both the owner and voucher holder. The PHA will not permit the family to submit more than one RFTA at a time. The PHA will review the Request for Tenancy Approval documents to determine whether or not it is approvable. The request will be approved if: • The unit is an eligible type of housing; • The rent to owner is reasonable; • The security deposit is approvable in accordance with any limitations in this plan; • The proposed lease complies with HUD and PHA requirements (See "Lease Review", Section C of this Chapter); • The owner is approved, and there are no conflicts of interest (See "Owner Disapproval", Chapter 16 of this Administrative Plan); and 9-1 2010 Draft Administrative Plan Chapter 9 – Request for Tenancy Approval and Contract Execution • At the time the PHA approves a tenancy for initial occupancy of a dwelling unit by a family with tenant-based assistance under the program, and where the gross rent of unit exceeds the applicable payment standard for the family, the family share must not exceed 40 percent (40%) of the family’s adjusted monthly income. Disapproval of RFTA by PHA If the PHA determines that the request cannot be approved for any reason, the owner and the family will be notified in writing. When a RFTA is not approved and the voucher has not expired, the PHA will furnish another RFTA form to the family along with the notice of disapproval so that the family can continue to search for eligible housing. Disapproval of RFTA by Owner or Participant If a RFTA is approvable but the participant or prospective owner elects to void/disapprove the RFTA, then the voiding party is responsible for the notification of all involved parties. The PHA will also send a void confirmation letter to the tenant/landlord. B. ELIGIBLE TYPES OF HOUSING [24 CFR 982.353] The PHA will approve any of the following types of housing: • All structure types can be utilized. • Manufactured homes where the tenant leases the mobile home and the pad. • Manufactured homes where the tenant owns the mobile home and leases the pad. • Group homes • Congregate facilities (only the shelter rent is assisted) • Single room occupancy • Units owned (but not subsidized) by the PHA (following HUD-prescribed requirements). A family can own a rental unit but cannot reside in it while being assisted, except in the case when the tenant owns the mobile home and leases the pad. A family may lease in and have an interest in a cooperative housing development. The PHA may not permit a voucher holder to lease a unit, which is receiving HUD project-based Housing Choice Voucher assistance or any duplicative rental subsidies. 9-2 2010 Draft Administrative Plan Chapter 9 – Request for Tenancy Approval and Contract Execution C. LEASE AND TENANCY [24 CFR 982.308] The tenant must have legal capacity to enter a lease under State and local law If the owner uses a standard lease form for the rental unassisted tenants in the County of Sacramento, the same lease must be used for HCV program units (with the addition of the HUD Tenancy addendum and the PHA’s Lease Supplemental Agreement). The Lease Supplemental Agreement, together with the HUD-prescribed tenancy addendum, will be part of the PHA-approved lease form provided by the Owner, if any, and collectively will be the Lease between Owner and Tenant. In the event of a conflict between the terms and conditions set out in the documents comprising the Lease, the Lease Supplemental Agreement shall supersede any conflicting provisions. If the owner does not use a standard lease form for rental to unassisted tenants, the owner may use another form of lease, such as a PHA model lease. The lease and/or Lease Supplemental Agreement must specify: • The names of the owner and tenant family members; • The address of the unit rented. • The term of the lease. • The amount of the monthly rent to owner; • The utilities and appliances to be supplied by the owner; • The utilities and appliances to be supplied by the family. The HUD prescribed tenancy addendum must be included in the lease word-for-word before the lease is executed. The PHA may review the lease to determine if the lease complies with State and local law, and may decline to approve the tenancy if the PHA determines that the lease does not comply with State or local law. Effective September 15, 2000, the owner's lease must include the Lead Warning Statement and disclosure information required by 24 CFR 35.92(b). Actions Before Lease Term The following must always be completed prior to the beginning the initial term of the lease for a unit: • The PHA has inspected the unit and has determined that the unit satisfies HQS; • The owner and the tenant have executed the lease, including the HUD-prescribed tenancy addendum; 9-3 2010 Draft Administrative Plan Chapter 9 – Request for Tenancy Approval and Contract Execution • The tenant must be in possession of the unit and the tenant may not have more than one active HAP contract except as covered in Chapter 13, under the Procedure for Moves section of this Administrative Plan. • The PHA must have approved leasing of the unit in accordance with program requirements; • When the gross rent exceeds the applicable payment standard for the family, the PHA must determine that the family share (total family contribution) will not be more than forty percent (40%) of the family's monthly adjusted income. D. SEPARATE AGREEMENTS Illegal Side Agreements (Side Payments) Families and owners will be advised that it is a violation of the terms of the HAP contract to enter into illegal side payment agreements. Illegal side payments may be described as but, are not limited to any payments charged by the owner or accepted from the tenant, in excess of the rent approved on the HAP contract. The family is not liable under the lease for unpaid charges for items covered by separate illegal side agreements and nonpayment of these agreements cannot be cause for eviction. Separate Agreements Approval by PHA Owners and families may execute separate agreements for services, appliances (other than range and refrigerator) and other items that are not included in the lease if the agreement is in writing and approved by the PHA. Any appliances, services or other items, which are routinely provided to unassisted families as part of the lease (such as air conditioning, dishwasher or garage) or are permanently installed in the unit, cannot be put under separate agreement. For there to be a separate agreement, the family must have the option of not utilizing the service, appliance or other item. If the family and owner have come to a written agreement on the amount of allowable charges for a specific item, so long as those charges are reasonable and not a substitute for higher rent, they will be allowed. All agreements for special items or services must be attached to the lease approved by the PHA. If agreements are entered into at a later date, they must be approved by the PHA and attached to the lease. 9-4 2010 Draft Administrative Plan Chapter 9 – Request for Tenancy Approval and Contract Execution E. RENT LIMITATIONS [24 CFR 982.507] The PHA will make a determination as to the reasonableness of the proposed rent in relation to comparable units available for lease on the private unassisted market, and the rent charged by the owner for a comparable unassisted unit in the building or premises. By accepting each monthly housing assistance payment from the PHA, the owner certifies that the rent to owner is not more than rent charged by the owner for comparable unassisted units in the premises. The owner is required to provide the PHA with information requested on rents charged by the owner on the premises or elsewhere. At all times during the tenancy, the rent to owner may not be more than the most current reasonable rent as determined and approved by the PHA. F. DISAPPROVAL OF PROPOSED RENT [24 CFR 982.502] In any of the programs, if the proposed gross rent is not reasonable, at the family’s request; the PHA will negotiate with the owner to reduce the rent to a reasonable rent. If, in the voucher program, the rent is not affordable because the family share would be more than forty percent of the family’s monthly adjusted income, the PHA may negotiate with the owner to reduce the rent to an affordable rent for the family. If the rent can be approved after negotiations with the owner, the PHA will continue processing for tenancy approval and lease. If the owner does not agree on the rent to owner, the PHA will disapprove the RFTA.. (See “Disapproval of RFTA”, Section A, of this chapter.) G. INFORMATION TO OWNERS [24 CFR 982.307(b), 982.54(d)(7)] In accordance with HUD requirements , the PHA will furnish prospective owners with the family’s current address as shown in the PHA’s records and, if known to the PHA, the name and address of the owner at the family’s current and prior address. The PHA will make an exception to this requirement if the family's whereabouts must be protected due to domestic abuse or witness protection. The PHA will inform owners that it is the responsibility of the owner to determine the suitability of prospective tenants. Owners will be encouraged to screen applicants for rent payment history, payment of utility bills, eviction history, respecting the rights of other residents, damage to units, 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. 9-5 2010 Draft Administrative Plan Chapter 9 – Request for Tenancy Approval and Contract Execution A statement of the PHA’s policy on release of information to prospective owners will be included in the briefing packet, which is provided to the family. Only the designated staff may provide this information. The PHA's policy on providing information to owners is included in the briefing packet and will apply uniformly to all families and owners. H. CHANGE IN TOTAL TENANT PAYMENT (TTP) PRIOR TO HAP EFFECTIVE DATE When the family reports changes in factors that will affect the total family share prior to the effective date of the HAP contract the information will be verified and the total family share will be recalculated. (See Chapter 12, Part B, Interim Changes.) I. CONTRACT EXECUTION PROCESS [24 CFR 982.305(c)] The PHA makes every effort to execute the HAP contract before the commencement of the lease term. The HAP contract may not be executed more than 60 days after commencement of the lease term and no payments will be made until the contract is executed. The owner must provide: • a current residential address (not a Post Office box). • a home telephone number and business number, if applicable. • an employer identification number or social security number. • proof of ownership of the property, such as grant deed, certified settlement statement, or letter from title company with date recorded, new owner name & property address. • a copy of the management agreement, if agent is acting on behalf of owner. The PHA will not approve a HAP contract to any relative of the tenant who is the property owner (See Owner Disapproval, Chapter 16, of this Administrative Plan) unless the lease was effective prior to June 17, 1998, or the relative owner purchased the home while the tenant resided in unit in accordance with program rules. The PHA may waive this restriction as a reasonable accommodation for a family member who is a person with a disability 9-6 2010 Draft Administrative Plan Chapter 9 – Request for Tenancy Approval and Contract Execution J. CHANGE IN UTILITY/ APPLIANCE RESPONSIBILITY (24 CFR 982.308) If the tenant and owner agree to any changes in the lease, such changes must be in writing. In order to change the utility or appliance responsibility, a 60-day written notice must be submitted to the PHA and has to be approved prior to taking effect. Once approved, a new HAP contract must be issued. Tenant-based assistance shall not be continued unless the PHA has approved a new tenancy in accordance with program requirements and has executed a new HAP contract with the owner. 9-7 2010 Draft Administrative Plan Chapter 10 -Housing Quality Standards and Inspections Chapter 10 HOUSING QUALITY STANDARDS AND INSPECTIONS [24 CFR 982.401] INTRODUCTION Housing Quality Standards (HQS) are the HUD minimum quality standards for tenant-based programs. The Housing Authority requires additional housing standards, which are identified later in this chapter. Housing inspections conducted by the PHA will check for any items in violations of either set of standards. HQS inspections are required both at initial occupancy and during the term of the lease. HQS applies to the building and premises, as well as the unit. Newly leased units must pass the HQS inspection before the beginning date of the assisted lease and HAP contract. The PHA will inspect each unit under contract at least annually. The PHA will also perform quality control inspections on the number of units required for file sampling by SEMAP annually to maintain the PHA’s required standards and to assure consistency in the PHA’s program. This chapter describes the PHA's procedures for performing HQS and other types of inspections, and PHA standards for the timeliness of repairs. It also explains the responsibilities of the owner and family, and the consequences of non-compliance with HQS requirements for both families and owners. The use of the term "HQS" in this Administrative Plan refers to the combination of both HUD and PHA requirements. A. GUIDELINES/TYPES OF INSPECTIONS [24 CFR 982.401(a), 982.405] Effort will be made at all times to encourage owners to provide housing above HQS minimum standards. The PHA will not promote any additional acceptability criteria which are likely to adversely affect the health or safety of participant families, or severely restrict housing choice. All utilities must be in service prior to the inspection. If the utilities are not in service at the time of inspection, the inspector will notify the tenant or owner (whomever is responsible for the utilities according to the RFTA) to have the utilities turned on. If the tenant is responsible for supplying the stove and/or the refrigerator, the PHA will allow the stove and refrigerator to be placed in the unit after the unit has passed all other HQS. The family must then certify after move-in that the appliances are in the unit and working. The PHA will not conduct a re-inspection. There are four types of inspections: 1. Initial/Move-in: Will be conducted prior to the initial term of the lease. 2. Annual: Will be conducted within twelve months of the last annual inspection. 10-1 2010 Draft Administrative Plan Chapter 10 -Housing Quality Standards and Inspections 3. Special: Will be conducted as needed to determine if the unit meets HQS. 4. Quality Control: Will be to ensure that inspections conducted by the PHA are accurate and complete. B. INITIAL HQS INSPECTION [24 CFR 982.401(a), 982.305(b)(2)] Timely Initial HQS Inspection When a complete Request for Tenancy Approval (RFTA) is received, the PHA will contact the landlord to schedule an inspection appointment within 15 days. The 15 day period is suspended during any period the unit is not available for inspection. The PHA will make every reasonable effort to conduct the initial HQS inspections for the family and owner in a manner that is time-efficient and indicative of good customer service. The PHA will review the average time required for a family and owner to have a unit inspected from the time the RFTA is submitted by the family and owner to the PHA. The Initial Inspection will be conducted to: • Determine if the unit and property meet the HQS defined in this Plan. • Document the information to be used for determination of rent-reasonableness. If the unit fails the initial Housing Quality Standards inspection, the owner will be given up to 10 days to complete repairs and contact the PHA to schedule a re-inspection appointment. The owner will be allowed one re-inspection for repair work to be completed. A second re- inspection may be authorized only with Supervisor approval. If the time period given by the PHA to correct the repairs has lapsed, or the maximum number of failed re-inspections has occurred, the RFTA will be voided. A new voucher will be issued to the family with any eligible tolling time and the family must submit the new RFTA before their voucher expiration date. A passed initial inspection is good for up to 30 days. If the effective date of the lease and contract is between 30 and 90 days after the unit passed HQS inspection, another inspection is not necessary as long as the owner certifies in writing that: 1) The unit has not been occupied since the date the unit passed the HQS inspection; and 2) The unit remains in the same rent-ready condition as when it passed HQS inspection. If the date the unit passed HQS inspection is more than 90 days from the effective date of the lease and contract, the unit must be reinspected before the lease and contract may begin. 10-2 2010 Draft Administrative Plan Chapter 10 -Housing Quality Standards and Inspections C. ANNUAL HQS INSPECTIONS [24 CFR 982.405(a)] The PHA inspects each assisted unit annually at least fifteen days before the last annual inspection as required by SEMAP. If an additional room has been granted as a reasonable accommodation, at the annual inspection, the PHA will verify that the additional bedroom is being used as approved. If the additional bedroom is verified as not being used as intended, the voucher size may be reduced. “Reasonable Hours to Conduct an Inspection” are defined as the hours between 8:00 a.m. and 5:00 p.m. Inspections will be conducted only on business days unless authorized by the Assistant Director. Inspection: The family and owner are notified of the date and time of the inspection appointment by mail or phone. If the family is unable to be present, they must reschedule the appointment so that the inspection is completed within seven days of the date originally scheduled for the inspection. If the family misses two inspection appointments, the PHA will consider the family to have violated a family obligation and their assistance may be terminated. The family must allow the PHA to inspect the unit at reasonable times with reasonable notice. [24 CFR 982.551(d)] The owner must correct HQS deficiencies that cause a unit to fail, unless the tenant is responsible for the repairs. For tenant-caused damages, the tenant must correct the repairs within the specified timeline (See Time Standards for Repairs below). If the tenant fails to complete repairs timely, the PHA will consider the family to have violated a family obligation and their assistance may be terminated. Re-inspection(s) The family and owner are provided a notice of the inspection appointment by phone or mail. If the family is not at home for the re-inspection appointment, a notice will be left at the unit and another appointment is automatically scheduled. The appointment letter contains a warning of abatement (in the case of owner responsibility), and a notice of the owner's responsibility to notify the family in case of owner-caused abatement. Program Eligibility may also be jeopardized for missed inspections which the tenant is responsible for. The family is notified that it is a family obligation to allow the PHA to inspect the unit. Time Standards for Repairs Emergency items must be corrected within twenty-four hours of notification. 10-3 2010 Draft Administrative Plan Chapter 10 -Housing Quality Standards and Inspections Repairs for non-emergency items must be made within thirty days of the inspection fail date. An extension beyond the thirty day period may be approved by a Principal Analyst or a Supervisor upon written request from the owner, with verifiable documentation. D. SPECIAL/COMPLAINT INSPECTIONS [24 CFR 982.405(c)] Special inspections may be scheduled between anniversary dates. The PHA will notify the family and the owner of the special inspection date and time in writing or by phone. If, at any time the family or owner notifies the PHA that the unit does not meet Housing Quality Standards, the PHA may conduct an inspection. Before conducting a special inspection for a tenant or owner complaint, the PHA may request verification that the owner or tenant has been notified of the deficiency and has not completed repair within a reasonable time. Reasonable time for non-emergency items is 30 days. The PHA will consider complaints and any other information brought to the attention of the PHA, including information from third parties such as neighbors or public officials. The PHA will inspect only the items which were reported, but if the inspector notices additional deficiencies that would cause the unit to fail HQS, the responsible party will be required to make the necessary repairs. If the annual inspection due date is within ninety days of a scheduled special inspection, the special inspection will be categorized as annual and all annual procedures will be followed. A move-out inspection will be performed for Moderate Rehabilitation units only, at the owner’s request. E. QUALITY CONTROL INSPECTIONS [24 CFR 982.405(b)] Quality control inspections will be conducted by the supervisor or other designated staff, and will be based upon the SEMAP defined minimum file sample size. The purpose of quality control inspections is to ascertain that each inspector is conducting accurate and complete inspections, and to ensure that there is consistency among inspectors in the application of the HQS. The sampling of files will include recently completed inspections (within the prior 3 months), a cross-section of neighborhoods, and a cross-section of inspectors. 10-4 2010 Draft Administrative Plan Chapter 10 -Housing Quality Standards and Inspections F. SINGLE CYLINDER DEAD BOLT LOCKS The PHA requires that the owner must install an operable single cylinder dead bolt lock on each main swinging entry door of a dwelling unit. The dead bolt lock must be installed in conformance with manufacturer’s specifications. These doors include exterior doors which allow access to the unit. The following swinging doors must have a single cylinder dead bolt lock: • The front door • The back door • The door from the garage to the house • Any door that allows direct access to the unit Security doors and screen doors are not main entrance doors. Single cylinder locks installed on security doors do not satisfy the requirement. G. EMERGENCY REPAIR ITEMS [24 CFR 982.404(a)] The following items are considered to be emergency repairs and must be corrected by the owner or tenant (whoever is responsible) within twenty-four hours of notice by the PHA: • Lack of security for the unit • Severe structural damage (i.e. collapsed ceilings, walls, or floors) • Major plumbing leaks (i.e. those causing flooding or significant hazards) • Natural gas leak or fumes • Electrical problem which could result in shock or fire (i.e. exposed stripped wires) • No running water • Shattered glass where someone could be injured • Lack of a functioning toilet in the unit • Lack of one working smoke detector per floor In those cases where there is leaking gas or potential of fire or other threat to public safety, and the responsible party cannot be reached or it is impossible for the responsible party to make the repairs, the proper authorities will be notified by the PHA. If the emergency repair item(s) are not corrected in the time period required by the PHA, and the owner is responsible, the housing assistance payment will be abated and the HAP contract will be terminated. 10-5 2010 Draft Administrative Plan Chapter 10 -Housing Quality Standards and Inspections If the emergency repair item(s) are not corrected in the time period required by the PHA, and it is an HQS breach that is a family obligation, the PHA will terminate the assistance to the family. Smoke Detectors [24 CFR 982.401 (n)] Inoperable smoke detectors are a serious health threat and are treated by the PHA as an emergency (24-hour) fail item. If the smoke detector is not operating properly the PHA will contact the owner by phone and request the owner to repair the smoke detector within twenty-four hours. The PHA will reinspect the unit the following business day. If the PHA determines that the family has disconnected the smoke detector (by removing batteries or other means), the family will be required to repair the smoke detector within twenty- four hours and the PHA will re-inspect the unit the following business day. The PHA will also issue a warning to the tenant for HQS non-compliance. If the dwelling unit is occupied by any hearing-impaired person, smoke detectors must have an alarm system, designed for hearing-impaired person as specified in NFPA 72 (or successor standards.) H. CONSEQUENCES IF OWNER IS RESPONSIBLE (NON-EMERGENCY ITEMS) [24 CFR 982.404, 982.453] When it has been determined that a unit on the program fails to meet Housing Quality Standards, the owner is responsible for completing the necessary repair(s) in the time period specified by the PHA. The PHA must take prompt action to enforce owner obligations. PHA remedies for such breech of the Housing Quality Standards may include abatement of the HAP or termination of the HAP contract. Abatement Should circumstances arise which warrant abatement, a notice of abatement of the housing assistance payment will be sent to the owner, and the abatement will be effective the first of the month following the specified correction period. The housing assistance payment will be abated for no more than a period of thirty (30) days at which time the contract will be terminated if the required repairs are not made and verified by the PHA. When repairs can be verified by other means, i.e. verbal or written documentation from utility companies (gas, water, electric), code enforcement or city/county inspector, signed work orders, receipts, invoices showing work has been completed, etc., a physical re-inspection will not be required. If re-inspection is necessary, the PHA will inspect abated units within seven calendar days of the owner's notification that the work has been completed. 10-6 2010 Draft Administrative Plan Chapter 10 -Housing Quality Standards and Inspections If the owner makes repairs during the abatement period, payment will resume on the day the unit passes inspection. No retroactive payments will be made to the owner for the period of time the rent was abated and the unit did not comply with HQS. The notice of abatement states that the tenant is not responsible for the PHA's portion of rent that is abated. Extensions on Abatements A PHA supervisor may grant an extension in lieu of abatement in the following cases: • There is an unavoidable delay in completing repairs due to difficulties in obtaining parts or contracting for services. • The repairs must be delayed due to climate conditions. The extension will be made for a period of time not to exceed thirty days. At the end of that time, if the work is not completed, the PHA will begin the abatement. Termination of Contract If the owner is responsible for repairs, and fails to correct all the deficiencies cited prior to the end of the abatement period, the HAP Contract will be terminated. A notice of termination will be mailed to owner and tenant, if tenant is still in unit. I. DETERMINATION OF RESPONSIBILITY [24 CFR 982.404, 982.54(d)(14)] Certain HQS deficiencies are considered the responsibility of the family: • Tenant-paid utilities not in service • Failure to provide or maintain tenant-supplied appliances • Damage to the unit or premises caused by a household member or guest beyond normal wear and tear ("Normal wear and tear" is defined as items which could not be charged against the tenant's security deposit under State law or court practice). The owner is responsible for all other HQS violations. The owner is responsible for vermin infestation, even if caused by the family's living habits. If such infestation is serious and repeated, it may be considered a lease violation and the owner may evict for serious or repeated violation of the lease. The PHA may terminate the family's assistance on that basis. The inspector will make a determination of owner or family responsibility during the inspection. 10-7 2010 Draft Administrative Plan Chapter 10 -Housing Quality Standards and Inspections If the family is responsible, but the owner carries out the repairs, the owner may bill the family for the cost of the repairs and the family's file will be noted. J. CONSEQUENCES IF FAMILY IS RESPONSIBLE [24 CFR 982.404(b)] If non-emergency violations of HQS are determined to be the responsibility of the family, the PHA will require the family to make any repair(s) or corrections within thirty days. The family will be required to make repairs or corrections to tenant-responsible emergency violations within 24 hours. If the repair(s) or correction(s) are not made in this time period, the PHA will terminate assistance to the family, after providing an opportunity for an informal hearing. The owner's rent will not be abated for items which are the family's responsibility. If the tenant is responsible and corrections are not made, the HAP contract will terminate when assistance is terminated. 10-8 2010 Draft Administrative Plan Chapter 11 - Owner Rents, Rent Reasonableness, and Payment Standards Chapter 11 OWNER RENTS, RENT REASONABLENESS, AND PAYMENT STANDARDS [24 CFR 982.502, 982.503, 982.504, 982.505, 982.507] INTRODUCTION The PHA will determine rent reasonableness in accordance with 24 CFR 982.507(a). It is the PHA's responsibility to ensure that the rents charged by owners are reasonable based upon unassisted comparables in the rental market, using the criteria specified in 24 CFR 982.507(b). This chapter explains the PHA's procedures for determination of rent-reasonableness, payments to owners, adjustments to the payment standards, and rent adjustments. A. RENT TO OWNER IN THE HOUSING CHOICE VOUCHER PROGRAM [(24 CFR 982.508)] All HAP contracts will begin the later of: • the date the unit passes inspection • the date the family moves in • the date the voucher is issued • the day after the lease-end date of the previous unit Exceptions may be granted by Program Manager approval. The tenant will be responsible for any rent prior to start date. The owner will be responsible for collecting any rent owed prior to start date. The rent to owner is limited by rent reasonableness. The PHA must demonstrate that the rent to owner is reasonable in comparison to rent for other comparable unassisted units. Another limitation on rent to owner is the maximum rent standard at initial occupancy (24 CFR 982.508). At the time a family initially receives tenant-based assistance for occupancy of a dwelling unit, whether it is a new admission or a move to a different unit, if the gross rent for the unit exceeds the applicable payment standard for the family, the family share may not exceed 40 percent (40%) of the family's monthly adjusted income. During the initial term of the lease, the owner may not raise the contract rent to the participant family. 11-1 2010 Draft Administrative Plan Chapter 11 - Owner Rents, Rent Reasonableness, and Payment Standards B. MAKING PAYMENTS TO OWNERS [24 CFR 982.451] Once the HAP contract is executed, the PHA begins processing payments to the owner. A HAP Register will be used as a basis for monitoring the accuracy and timeliness of payments. Changes are made to the HAP Register for the following month. Checks are disbursed by the Finance Division to the owner each month. Checks may not be picked up by owner at the PHA. Exceptions may be made with the approval of a Supervisor in cases of hardship. Checks that are not received will not be replaced until a request has been received from the payee and a stop payment has been placed on the check. A request for stop payment will be processed no earlier than ten days after the check issuance date. Excess Payments The total of rent paid by the tenant plus the PHA housing assistance payment to the owner may not be more than the contract rent. The owner must immediately return any excess payment to the PHA. Owners who do not return excess payments will be subject to penalties as outlined in the "Owner or Family Debts to the PHA", Chapter 17 of this Administrative Plan. Late Payments to Owners It is a local business practice in Sacramento for property managers and owners to charge tenants a reasonable late fee for rents not received by the owner or property manager by the due date. Therefore, in keeping with generally accepted practices in the local housing market, the PHA must make housing assistance payments to the owner promptly and in accordance with the HAP contract. The PHA may pay a maximum $35.00 late fee to the owner for housing assistance payments that are not mailed to the owner by the fifth day of the month, if requested by the owner and due to no fault of the owner, excluding the first two calendar months of the HAP contract term. Late fees will not be paid when any portion of the housing assistance payment has been issued timely. Proof of "Mailed to" date will be the date of the check on the HAP register. The PHA will not be obligated to pay any late payment penalty if HUD determines that late payment is due to factors beyond the PHA's control, such as a delay in the receipt of program funds from HUD. The PHA will not use any program funds for the payment of late fee penalties to the owner. 11-2 2010 Draft Administrative Plan Chapter 11 - Owner Rents, Rent Reasonableness, and Payment Standards C. RENT REASONABLENESS DETERMINATIONS [24 CFR 982.507] The PHA will determine and document on a case-by-case basis that the approved rent is reasonable in comparison to rent for other comparable unassisted units in the market. This applies to all programs. The PHA will not approve a lease until the PHA determines that the initial rent to owner is a reasonable rent. The PHA must reassess rent reasonability before any increase in the rent to owner. The PHA must also reassess rent reasonability if there is a five percent decrease in the published FMR in effect sixty days before the contract anniversary (for the unit size rented by the family) as compared with the FMR in effect one year before the contract anniversary. The PHA must reassess rent reasonableness if directed by HUD and based on a need identified by the PHA's auditing system. The PHA may elect to reassess rent reasonableness at any other time. At all times during the assisted tenancy, the rent to owner may not exceed the reasonable rent as most recently determined or reassessed by the PHA The owner will be advised that by accepting each monthly housing assistance payment s/he will be certifying that the rent to owner is not more than rent charged by the owner for comparable unassisted units in the premises. If requested, the owner must give the PHA information on rents charged by the owner for other units in the premises or elsewhere. The PHA may request information on the owner's units elsewhere if: • the PHA has cause to believe the owner charges higher rents to program participants, or • needed for rent reasonableness on comparable units. The data for other unassisted units may be gathered from newspapers, realtors, professional associations, inquiries of owners, market surveys, and other available sources. The market areas for rent reasonableness are zip codes/subdivisions/census tracts/neighborhoods within the PHA's jurisdiction. The following items may be used for rent reasonableness documentation: • Size (number of Bedrooms/square footage) • Location • Quality • Amenities (bathrooms, dishwasher, air conditioning, etc.) • Housing Services • Age of unit 11-3 2010 Draft Administrative Plan Chapter 11 - Owner Rents, Rent Reasonableness, and Payment Standards • Unit Type • Maintenance • Utilities Rent Reasonableness Methodology The PHA uses an "appraisal" method and tests the subject unit against selected units with similar characteristics. Adjustments are made for differences between the subject unit and comparable units on the market. The PHA maintains an automated database, which includes data on unassisted units for use by staff in making rent reasonableness determinations. The data is updated on an ongoing basis and purged when it is more than eighteen (18) months old. D. PAYMENT STANDARDS FOR THE VOUCHER PROGRAM [24 CFR 982.503] The Payment Standard is used to calculate the housing assistance payment for a family. In accordance with HUD regulation, and at the PHA's discretion, the Voucher Payment Standard amount is set by the PHA between ninety percent and 110 percent of the HUD published FMR. This is considered the basic range. The PHA reviews the appropriateness of the Payment Standard annually when the FMR is published. In determining whether a change is needed, the PHA will ensure that the Payment Standard is always within the range of ninety percent to 110 percent of the new FMR, unless an exception payment standard has been approved by HUD. The PHA will establish a single voucher payment standard amount for each FMR area in the PHA jurisdiction. The PHA will establish payment standard amounts for each "unit size". The PHA may have a higher payment standard within the PHA's jurisdiction if needed to expand housing opportunities outside areas of minority or poverty concentration, as long as the payment standard is within the 90-110% of FMR range. The PHA may approve a higher payment standard within the basic range, if required as a reasonable accommodation for a family that includes a person with disabilities. However, the payment standard cannot be approved over 110% of the Fair Market Rent. E. ADJUSTMENTS TO PAYMENT STANDARDS [24 CFR 982.503] Payment Standards may be adjusted, within HUD regulatory limitations, to increase Housing Assistance Payments in order to keep families' rents affordable. The PHA will not raise Payment Standards solely to make "high end" units available to Voucher holders. The PHA may use some or all of the measures below in making its determination whether an adjustment should be made to the Payment Standards. 11-4 2010 Draft Administrative Plan Chapter 11 - Owner Rents, Rent Reasonableness, and Payment Standards Assisted Families' Rent Burdens The PHA may review its voucher payment standard amounts annually to determine whether more than forty percent (40%) of families in a particular unit size are paying more than thirty percent (30%) of their annual adjusted income for rent. Quality of Units Selected The PHA will review the quality of units selected by participant families when making the determination of the percent of income families are paying for housing, to ensure that Payment Standard increases are only made when needed to reach the mid-range of the market. PHA Decision Point The PHA will review the average percent of income of families on the program. If more than twenty-five percent of families are paying more than thirty percent of monthly adjusted income, the PHA will determine whether there is a difference by voucher size, whether families are renting units larger than their voucher size, and whether families are renting units which exceed HUD's HQS and any additional standards added by the PHA in the Administrative Plan. If families are paying more than thirty percent of their income for rent due to the selection of larger bedroom size units or luxury units, the PHA may decline to increase the payment standard. If these are not the primary factors for families paying higher rents, the PHA will continue increasing the payment standard. Time to Locate Housing The PHA may consider the average time period for families to lease-up under the Voucher program. If more than fifty percent of Voucher holders are unable to locate suitable housing within the term of the voucher and the PHA determines that this is due to thirty percent of rents in the jurisdiction being unaffordable for families even with the presence of a voucher the Payment Standard may be adjusted. Lowering of the Payment Standard Lowering of the FMR may require an adjustment of the Payment Standard. Additionally, statistical analysis may reveal that the Payment Standard should be lowered. In any case, the Payment Standard will not be set below ninety percent of the FMR without authorization from HUD. Financial Feasibility Before increasing the Payment Standard, the PHA may review the budget to determine the impact projected subsidy increases would have on funding available for the program and number of families served. 11-5 2010 Draft Administrative Plan Chapter 11 - Owner Rents, Rent Reasonableness, and Payment Standards For this purpose, the PHA will compare the number of families who could be served under a higher Payment Standard with the number assisted under current payment standards. File Documentation The PHA will retain a file for at least three years to document the analysis and findings to justify whether or not the Payment Standard was changed. F. EXCEPTION PAYMENT STANDARDS If the dwelling unit is located in an exception area, the PHA must use the appropriate payment standard amount established by the PHA for the exception area in accordance with regulation at 24 CFR 982.503(c). If needed to prevent financial hardship for families, and increase housing choice opportunities, the PHA should request approval from the local HUD office to establish payment standards of up to 120% of the FMR. G. OWNER PAYMENT [24CFR 982.308(g)] The owner is required to notify the tenant and PHA, in writing, at least sixty days before any change in the amount of proposed contract rent. Any requested change in rent to owner will be subject to rent reasonableness requirements and available PHA funding. Contract Rent Increases [24.CFR 982.519] Requests for rent increases will not be approved: 1. If the unit is in an initial lease term. 2. If the tenant and PHA have not received proper notice. 3. If the unit is in a failed condition. If approved, any increase will be effective on the first of the month following the 60-day notice. Upon approval of a rental increase, the new contract rent amount will remain effective for a period of 12 months. Owners may request rent increases no more than once every 12 months. 11-6 2010 Draft Administrative Plan Chapter 12 - Recertifications Chapter 12 RECERTIFICATIONS [24 CFR 982.516] INTRODUCTION In accordance with HUD requirements, the PHA will reexamine the income and household composition of all families at least annually. Families will be provided accurate annual and interim rent adjustments. Recertifications and interim examinations will be processed in a manner that ensures families are given reasonable notice of rent increases. All annual activities will be coordinated in accordance with HUD regulations. It is a HUD requirement that families report all changes in household composition. Between regular annual recertifications, HUD requires that families report all changes in household composition, but the PHA decides what other changes must be reported and the procedures for reporting them. This chapter defines the PHA's policy for conducting annual recertifications and coordinating annual activities. It also explains the interim reporting requirements for families, and the standards for timely reporting. The terms annual recertification and annual reexamination are synonymous. A. ANNUAL RECERTIFICATION [24 CFR 982.516] The PHA will recertify each family’s continuing eligibility at least annually. Recertification Notice to the Family The PHA will maintain a recertification tracking system and the household will be notified by mail at least ninety days in advance of the anniversary date, however, documents may be due prior to the anniversary date. The PHA may require that a family attend a recertification appointment. If requested as an accommodation by a person with a disability, the PHA will provide the notice in an accessible format. The PHA will also mail the notice to a third party, if requested as reasonable accommodation for a person with disabilities. Completion of Annual Recertification The PHA will have all recertifications for families completed within 12 months of the last annual recertification. This includes notifying the family of any increases in tenant rent at least thirty days before the effective date of change. Failure to Respond to Notification to Recertify The written notification must state the due date the completed recertification documents are required. The family may call to request an extended due date in case of emergency (as defined in the Glossary). 12-1 2010 Administrative Plan Chapter 12 - Recertifications If the family does not respond by the due date, the recertification documents will be sent a second time or the family may be scheduled for a second appointment. At this point the PHA may opt to complete the recertification by appointment. If the family responds to a second notice or appointment, a formal warning will be issued. If the family fails to respond to the second notice the PHA will mail the family a notice of proposed termination of eligibility, and an informal hearing request form. Exceptions to these policies may be made by supervisory or designated staff if the family is able to document an emergency situation that prevented them from recertification or attending the appointment or if requested as a reasonable accommodation for a person with a disability. Verification of Information All information affecting the family's continued eligibility for the program, and the family's Total Tenant Payment (TTP) will be verified in accordance with the verification procedures and guidelines described in this Policy. Verifications used for recertification must be less than 120 days old. All verifications will be placed in the file, which has been established for the family. When the information has been verified, it will be analyzed to determine: • The continued eligibility of the participant as a family or as the remaining member of a family; • The unit size required by the family; and • The amount of rent the family should pay. Tenant Rent Increases If the tenant rent increases, a notice of the change will be mailed to the family at least 30 days prior to the effective date of change. If less than thirty days are remaining before the scheduled effective date of the annual recertification, the tenant rent increase will be effective on the first of the month following at least a thirty-day notice. If there has been a misrepresentation or a material omission by the family, or if the family causes a delay in the recertification processing, there will be a retroactive increase in rent to the scheduled effective date of the annual recertification. Tenant Rent Decreases If tenant rent decreases, it will be effective on the anniversary date. If the family causes a delay so that the processing of the recertification is not complete by the anniversary date, rent change will be effective on the first day of the month following completion of the recertification processing by the PHA. 12-2 2010 Administrative Plan Chapter 12 - Recertifications If the participant experiences a decrease in income and the participant reports the change after reporting the annual reexamination but prior to the effective date of the annual recertification, the change will be treated as an early annual reexamination. The change will be effective the first of the following month that the family reported the change. The next annual reexamination date (anniversary date) will be one year from the effective date of the early annual reexamination. B. REPORTING INTERIM CHANGES [24 CFR 982.516] Program participants must report all changes in household composition to the PHA within thirty (30) days of the change. This includes additions due to birth, adoption and court-awarded custody. The family must obtain PHA approval prior to all other additions to the household. If any new family member is added, family income must include any income of the new family member. The PHA will conduct a recertification to determine such additional income and will make the appropriate adjustments in the housing assistance payment and family unit size. The U.S. citizenship/eligible immigrant status of additional family members must be declared and verified as required prior to moving in to the unit. Increases in Income The PHA will conduct interim recertifications when families have an increase in income above $200 per month. Families must report any increase in income and assets to the PHA within thirty (30) days of the change. Decreases in Income Participants may report a decrease in income and other changes that would reduce the amount of tenant rent, such as an increase in allowances or deductions. The PHA must calculate the change if a decrease in income of at least $50 per month is reported. The PHA will process the rent adjustment unless the PHA confirms that the decrease in income will last less than thirty days from the date of reported and verified change, or when the PHA confirms that the decrease in income is less than $50 per month. PHA Errors If the PHA makes a calculation error, an interim recertification will be conducted, if necessary to correct the error, but the family will not be charged retroactively. Families will be given decreases, when applicable, retroactive to when the decrease for the change would have been effective if calculated correctly. 12-3 2010 Administrative Plan Chapter 12 - Recertifications C. OTHER INTERIM REPORTING ISSUES [24 CFR 5.615] The PHA counts imputed welfare income (defined below) for families whose welfare assistance is reduced specifically because of: • Welfare fraud; or • Failure to participate in an economic self-sufficiency program; or • Noncompliance with a work activities requirement. However, the PHA will count actual welfare income if the welfare assistance reduction is a result of: • The expiration of a lifetime time limit on receiving benefits; or • A situation where the family has complied with welfare program requirements but cannot or has not obtained employment, such as: • The family has complied with welfare program requirements, but the duration time limit; such as a cap on the length of time a family can receive benefits, and causes the family to lose their welfare benefits. Definition of "Imputed Welfare Income" Imputed Welfare income is the amount of annual income projected but, not actually received by a family as a result of a specified welfare benefit reduction. The amount of imputed welfare income is determined by the PHA, based on written information supplied to the PHA by the welfare agency, including: • The amount of the benefit reduction • The term of the benefit reduction • The reason for the reduction • Subsequent changes in the term or amount of the benefit reduction The family's annual income will include the imputed welfare income, as determined at the family's annual or interim recertification, during the term of the welfare benefits reduction (as specified by the welfare agency). The amount of imputed welfare income will be offset by the amount of additional income the family receives that commences after the sanction was imposed. When additional income from other sources is at least equal to the imputed welfare income, the imputed welfare income will be reduced to zero. If the family was not an assisted participant when the welfare sanction began, imputed welfare income will not be included in annual income. 12-4 2010 Administrative Plan Chapter 12 - Recertifications If the family claims the amount of imputed welfare income has been calculated incorrectly, designated staff will review the calculation for accuracy. If the imputed welfare income amount is correct, the PHA will provide a written notice to the family that includes: • A brief explanation of how the amount of imputed welfare income was determined; • A statement that the family may request an informal hearing if they do not agree with the PHA determination. Family Dispute of Amount of Imputed Welfare Income If the family disputes the amount of imputed income and the PHA denies the family’s request to modify the amount, the PHA will provide the tenant with a notice of denial, which will include: • An explanation for the PHA’s determination of the amount of imputed welfare income • A statement that the tenant may request an informal hearing. A statement that the grievance information received from the welfare agency cannot be disputed at the informal hearing, and the issue to be examined at the informal hearing will be the PHA’s determination of the amount of imputed welfare income, not the welfare agency’s determination to sanction the welfare benefits. Verification of Welfare Before Denying a Request to Reduce Rent The PHA will obtain written verification from the welfare agency stating that the family’s benefits have been reduced due to fraud or noncompliance with welfare agency economic self- sufficiency or work activities requirements before denying the family’s request for rent reduction. The PHA will rely on the welfare agency’s written notice to the PHA regarding welfare sanctions. D. NOTIFICATION OF RESULTS OF RECERTIFICATION: The HUD Form 50058 will be completed and transmitted as required by HUD. The Notice of Rent Change is mailed to the owner and the tenant. Staff is not required to sign these notices by the PHA. If the family disagrees with the rent adjustment, they may request an informal hearing (see Chapter 18, Section D for hearing request procedures). 12-5 2010 Administrative Plan Chapter 12 - Recertifications E. TIMELY REPORTING OF CHANGES IN FAMILY COMPOSITION Changes in family composition require an interim recertification and may result in a change to the tenant rent. The bedroom size may be changed at the next annual recertification. Standard for Timely Reporting of Changes The PHA requires that the family report in writing any change to family composition to the PHA within thirty days of when the change occurs. If the change is not reported within the required time period, or if the family fails to provide documentation or signatures, it will be considered untimely reporting. Procedures When the Change is Reported in a Timely Manner The PHA will notify the family and the owner of any change in the Housing Assistance Payment to be effective according to the following guidelines: • Increases in the Tenant Rent are effective on the first of the month following at least thirty days' notice. • Decreases in the Tenant Rent are effective the first of the month, following the month in which the PHA is provided adequate written documentation. However, no rent reductions will be processed until all the facts have been verified, even if a retroactive adjustment results. Procedures When the Change is Not Reported by the Family in a Timely Manner If the family does not report the change as described under Timely Reporting, or provide requested verification within the given timeframe, the family will be considered to have caused a delay in the interim recertification processing and the following guidelines will apply: Increase in Tenant Rent will be effective retroactive to the date it would have been effective had it been reported on a timely basis. The family will be liable for any overpaid housing assistance and will be required to pay the debt in full within 60 days. Decrease in Tenant Rent will be effective on the first of the month following completion of processing by the PHA and not retroactively. Procedures When the Change is Not Processed by the PHA in a Timely Manner "Processed in a timely manner" means that the change goes into effect on the date it should when the family reports the change in a timely manner. If the change cannot be made effective on that date, the change is not processed by the PHA in a timely manner. In this case, an increase will be effective after the required thirty-days notice prior to the first of the month after completion of processing by the PHA. 12-6 2010 Administrative Plan Chapter 12 - Recertifications If the change resulted in a decrease, the overpayment by the family will be calculated retroactively to the date it should have been effective, and the family will be credited for the amount. F. CHANGES IN VOUCHER SIZE AS A RESULT OF FAMILY COMPOSITION CHANGES Irrespective of any increase or decrease in the payment standard amount, if the family unit size increases or decreases during the HAP contract term, the new family unit size must be used to determine the payment standard amount for the family beginning at the family's first regular reexamination following the change in family unit size. Exceptions to this policy include: • An increase in voucher size made as a result of a Reasonable Accommodation will be effective the month following the month of approval. • A decrease in voucher size based on untimely reporting of household composition changes will be made effective immediately following a 30 day notice to owner and tenant. The tenant may also be required to repay any amount owed. G. CONTINUANCE OF ASSISTANCE FOR "MIXED" FAMILIES Under the Non-citizens Rule, "mixed" families are families that include at least one citizen or eligible immigrant and any number of ineligible members. The Non-citizens Rule was implemented on or after November 29, 1996, and mixed families may receive prorated assistance only. H. MISREPRESENTATION OF FAMILY CIRCUMSTANCES If any participant deliberately misrepresents the information on which eligibility or tenant rent is established, the PHA may terminate assistance and may refer the family file/record to the proper authorities for appropriate disposition. (See Program Integrity Addendum.) I. REPORTING OF CHANGES IN FAMILY COMPOSITION All changes in family composition must be reported within thirty days of the occurrence. 12-7 2010 Administrative Plan Chapter 13 - Moves With Continued Assistance / Portability Chapter 13 MOVES WITH CONTINUED ASSISTANCE/PORTABILITY [24 CFR 982.314, 982.353, 982.355(a)] INTRODUCTION HUD regulations permit families to move with continued assistance to another unit within the PHA's jurisdiction, or to a unit outside of the PHA's jurisdiction under portability procedures. The regulations also allow the PHA the discretion to develop policies, which define any limitations or restrictions on moves. This chapter defines the procedures for moves, both within and outside of, the PHA's jurisdiction, and the policies for restriction and limitations on moves. A. ALLOWABLE MOVES A family may move to a new unit with continued assistance if: • The assisted lease for the old unit has terminated because the PHA has terminated the HAP contract for owner breach, or the lease was terminated by mutual agreement of the owner and the family with PHA approval. • The owner has given the family 90 days notice to vacate for moves without cause or has obtained a court judgment or other process allowing the owner to evict the family (Unless assistance to the family will be terminated, see “Denial or Termination of Assistance”, Chapter 15 of the Administrative Plan ); or • The family has given proper notice of lease termination (assuming that the family has met the requirements to terminate the lease on notice to owner). • The Violence Against Women Reauthorization Act (VAWA) of 2005 provides that “a family may receive a voucher from a public housing agency and move to another jurisdiction under the tenant-based assistance program if the family has complied with all other obligations of the Section 8 Program and has moved out of the assisted dwelling unit in order to protect the health or safety of an individual who is or has been a victim of domestic violence, dating violence, or stalking and who reasonably believed he or she was imminently threatened by harm from further violence if he or she remained in the assisted dwelling unit.” B INTERPROGRAM TRANSFERS HCV Program participants may, with approval of the PHA’s Director, be accepted into PHA owned properties if: 13-1 2010 Draft Administrative Plan Chapter 13 - Moves With Continued Assistance / Portability • Transfers meet all eligibility/suitability criteria • Vacancies permit C. RESTRICTIONS ON MOVES [24 CFR 982.314, 982.552(a)] The PHA will deny permission to move: • During the initial term of the lease. • If the family owes any PHA or SHRA money, or is not current with payments as specified in a PHA repayment agreement. • If the unit is in fail status for tenant-responsible items. • If the family’s annual recertification is due within 120 days • If there is insufficient funding for continued assistance. Families will only be permitted to move once every 12 months,. The supervisor may consider exceptions to these restrictions if there is an emergency justification for the move over which the participant has no control. Emergency is defined in the glossary of this Administrative Plan. D. PROCEDURE FOR MOVES [24 CFR 982.314] Issuance of Voucher Subject to the restrictions on moves, the PHA may require the family to attend a briefing and will issue the authorization (voucher) to move. (See Chapter 8, of this Administrative Plan, Section F.) If the family does not locate a new unit, they may remain in the current unit so long as the owner permits. The HAP will terminate on the date identified in the Notice to Vacate unless a Notice to Rescind or a Notice to Extend the vacate date is delivered to the PHA. Notice Requirements The family must give the owner thirty days written notice of intent to vacate as specified by applicable law and must simultaneously give a copy to the PHA. 13-2 2010 Draft Administrative Plan Chapter 13 - Moves With Continued Assistance / Portability Time of Contract Change A move within the same building or project, or between buildings owned by the same owner, will be processed like any other move except that there will be no overlapping assistance. In a move, assistance stops at the old unit at the end of the month in which the tenant ceased to occupy, unless proper notice was given to end a lease midmonth. Assistance will start on the new unit on the effective date of the lease and contract. Assistance payments may overlap with Supervisor approval E. PORTABILITY [24 CFR 982.353] Portability applies to families moving out of or into the PHA's jurisdiction within the United States and its territories. F. OUTGOING PORTABILITY [24 CFR 982.353, 982.355] Within the limitations of the regulations and this policy, a participant family has the right to receive tenant-based voucher assistance to lease a unit outside the PHA's jurisdiction. The PHA will allow the family to exercise its right to portability anywhere in the United States where there is a PHA with a tenant-based program. When a family requests to move outside of the PHA's jurisdiction, the family’s written request must specify the area to which the family wants to move. This PHA will identify the receiving PHA and approve or deny the request, submitting a written response to the family. If there is more than one PHA in the area in which the family has selected a unit, the PHA may choose the receiving PHA. Restrictions on Portability [24 CFR 982.353] Applicants: If neither the head nor spouse had a domicile (legal residence) in the PHA's jurisdiction at the date of their initial application for assistance, the family will not be permitted to exercise portability upon initial issuance of a voucher, unless the PHA at its discretion approves such a move. For admission to the program a family must be income eligible in the area where the family initially leases a unit with assistance under the program. Participants: The receiving PHA does not re-determine eligibility for a portable family that was already receiving assistance in the initial PHA Housing Choice Voucher Program. . 13-3 2010 Draft Administrative Plan Chapter 13 - Moves With Continued Assistance / Portability After a participant has leased-up in the jurisdiction of the initial housing agency, they cannot exercise portability during the first term of assisted occupancy, except in the following circumstances and upon verification. • The family's move relates to an opportunity for education, job training or employment • Documented medical reason • Documented life-threatening emergencies The PHA will not permit families to exercise portability: • If the family is in violation of a family obligation • If the family has moved out of its assisted unit in violation of the lease. • Other reasons as listed in Part C of this Chapter. G. INCOMING PORTABILITY [24 CFR 982.354, 982.355] Absorption or Administration The receiving PHA will accept a family with a valid voucher from another jurisdiction and administer or absorb the voucher. If administering, the family will be issued a "portable" voucher by the PHA. The term of the voucher will not expire before the expiration date of the initial PHA voucher. The family must submit a request for approval of tenancy for an eligible unit to the receiving PHA during the term of the receiving PHA voucher. The receiving PHA may grant extensions in accordance with this Administrative Plan. However, if the family decides not to lease-up in the receiving PHA's jurisdiction, they must contact the initial PHA to request an extension. To ensure SHRA has sufficient time to process a family exercising portability into its jurisdiction, SHRA shall require the family to have at least 30 days available on the voucher. If less than thirty day remain on the voucher, SHRA will contact the initial PHA with a request to extend the voucher. SHRA will not process the family if the initial PHA’s voucher has expired. When the receiving PHA does not absorb the incoming voucher, it will administer the initial PHA's voucher and the receiving PHA's policies will prevail. The receiving PHA will determine the family unit size for the portable participant family and will issue a “portable voucher” in accordance with the subsidy standards of the receiving PHA. 13-4 2010 Draft Administrative Plan Chapter 13 - Moves With Continued Assistance / Portability Incoming Portability and Criminal Background Checks Families who port into this jurisdiction should be held to the same standard as current HCV participants. Families porting into Sacramento County will have a criminal background check run and their request to port into this jurisdiction may be denied if they do not meet the standards described in Chapter 15 where screening for criminal activity is discussed. In order to be consistent with the PHA’s policy to check the criminal background of anyone requested to be added to the household, the PHA will conduct a criminal background check on all family members who are at least 18 years or older who chooses to “port” their voucher into Sacramento County. If the results of the criminal background check includes drug or violent criminal activity that has occurred within the last 5 years since arriving in Sacramento County, the PHA may: a. Deny the family’s request to port into this jurisdiction and provide them with a copy of the criminal report, b. Notify the initial PHA of the results in the criminal background report and provide the initial PHA with a copy of the criminal background report, c. Allow the family to rescind their request to exercise portability into the receiving PHA’s jurisdiction and return the portability paperwork with the 52665 to the initial PHA indicating the family has elected not to exercise portability into the receiving PHA’s jurisdiction. The PHA’s decision to conduct a current criminal background check will not cause a delay in the processing of the family’s portability or a loss of the family’s right to exercise portability. Income and Total Tenant Payment of Incoming Portables [CFR 982.355(d)] SHRA will request the initial PHA to conduct an annual or an interim for families that exercise portability into the jurisdiction of SHRA when a change in income occurs prior to the execution of a Housing Assistance Payment. An updated 50058 will be requested from the initial PHA. If the initial PHA does not make the change, SHRA will complete the change SHRA will not approve additions of household members while the family is in the process of port-in. Addition of household members will be subject to the policy to add members described in Chapter 5 after initial lease-up. Reasonable Accommodation Requests and Incoming Portability: A reasonable accommodation approved by an initial PHA does not transfer to SHRA with the family. Upon the request of the family, SHRA will verify the need for the reasonable accommodation through the Reasonable Accomodation Committee. Requests for Tenancy Approval A briefing is required for incoming portability families. 13-5 2010 Draft Administrative Plan Chapter 13 - Moves With Continued Assistance / Portability Incoming portable families are subject to the receiving PHA’s subsidy standards. SHRA may extend the voucher of a family and notify the initial PHA. The extension will be granted within the billing date of the initial PHA. If the initial PHA informs SHRA it is not willing to extend the voucher in consideration of future billing, SHRA will deny the extension. If the family leases up successfully, the PHA will notify the initial PHA within ten days, and the billing process will commence. If the receiving PHA denies assistance to the family, the receiving PHA will notify the initial PHA within ten days and the family will be offered a review or hearing. When the family submits a Request for Tenancy Approval, it will be processed using the receiving PHA's policies. If the family does not submit a Request for Tenancy Approval or does not execute a lease, the receiving PHA will notify the initial PHA if the family fails to submit a request for approval of tenancy for an eligible unit within the term of the voucher. The receiving PHA will notify the family of its responsibility to contact the initial PHA if the family wishes to move outside the receiving PHA's jurisdiction under continued portability. Regular Program Functions The receiving PHA will perform all program functions applicable to the tenant-based assistance program, such as: • Annual recertifications of family income and participant family composition; • Annual inspection of the unit; and • Interim recertifications when requested or deemed necessary by the PHA Terminations The receiving PHA will notify the initial PHA in writing of any termination of assistance within twenty-one days of the termination or the hearing decision being rendered. If an informal hearing is required and requested by the family, the hearing will be conducted by the receiving PHA. A copy of the hearing decision will be furnished to the initial PHA. The initial PHA will be responsible for collecting amounts owed by the family for claims paid and for monitoring repayment. If the initial PHA notifies the receiving PHA that the family is in arrears or the family has refused to sign a payment agreement, the receiving PHA will terminate assistance to the family. Required Documents As receiving PHA, the PHA will require the documents listed on the HUD Portability Billing Form 52665 from the initial PHA. 13-6 2010 Draft Administrative Plan Chapter 13 - Moves With Continued Assistance / Portability Billing Procedures The receiving PHA, will bill the initial PHA monthly for housing assistance payments if the family has not been absorbed. The billing cycle for other amounts, including administrative fees and special claims, will be monthly unless requested otherwise by the initial PHA. The receiving PHA will bill 100% of the housing assistance payment, (100% of special claims) and 80% of the administrative fee (at the initial PHA's rate) for each "portability" voucher leased as of the first day of the month. The receiving PHA will notify the initial PHA of changes in subsidy amounts and will expect the initial PHA to notify the receiving PHA of changes in the administrative fee amount to be billed. 13-7 2010 Draft Administrative Plan Chapter 14 -Contract Terminations Chapter 14 CONTRACT TERMINATIONS [24 CFR 982.311, 982.314] INTRODUCTION The Housing Assistance Payments (HAP) contract is the contract between the owner and the PHA that defines the responsibilities of both parties. This chapter describes the circumstances under which the contract can be terminated by the PHA and the owner, and the policies and procedures for such terminations. A. CONTRACT TERMINATION [24 CFR 982.311] The term of the HAP contract is the same as the term of the lease. The contract between the owner and the PHA may be terminated by the PHA or by the owner. No future subsidy payments on behalf of the family will be made by the PHA to the owner after the month in which the contract is terminated. The owner must reimburse the PHA for any subsidies paid by the PHA for any period after the contract termination date. If the family continues to occupy the unit after the Housing Choice Voucher contract is terminated, the family is responsible for the total amount of rent due to the owner. The owner will have no right to claim compensation from the PHA for vacancy loss under the provisions of certificate HAP contracts effective before October 1st, 1996, with the exception of Moderate Rehabilitation (Mod Rehab) and Project-Based units which may claim compensation for vacancy loss. After a contract termination, if the family meets the criteria for a move with continued assistance, the family may lease-up in another unit. The contract for the new unit may begin during the month in which the family moved from the previous unit. B. TERMINATION BY THE FAMILY [24 CFR 982.314(c)(2)] Family termination of the lease must be in accordance with the terms of the lease. Families are required to notify the PHA before they move out of a unit. 14-1 2010 Draft Administrative Plan Chapter 14 -Contract Terminations C. TERMINATION OF TENANCY BY THE OWNER [24 CFR 982.310, 982.455, 5.105] The owner must provide the tenant a written notice specifying the grounds for termination of tenancy, at or before the commencement of the eviction action. The notice may be included in, or may be combined with, any owner eviction notice to the tenant. The owner eviction notice means a notice to vacate, or a complaint, or other initial pleading used under State or local law to commence an eviction action, During the term of the lease, the owner may not terminate the tenancy except for the grounds stated in the HUD regulations and State or local law. The owner must provide the PHA with a copy of the termination notice. During the term of the lease the owner may terminate tenancy for: • Serious or repeated violations of the lease, including but not limited to failure to pay rent or other amounts due under the lease, or repeated violation of the terms and conditions of the lease. • Violations of Federal, State or local law that imposes obligations on the tenant in connection with the occupancy or use of the premises. • Criminal activity by the tenant, any member of the household, a guest or another person under the tenant's control that threatens the health, safety or right to peaceful enjoyment of the premises by the other residents, by persons residing in the immediate vicinity of the premises. • Any drug-related criminal activity on or near the premises. • Tenant history of disturbance of neighbors, destruction of property, or behavior resulting in damage to the premises. • Other good cause (when in accordance with Federal, State, and local law). The eviction notice must specify the cause for the eviction. During the initial term of the lease, the owner may not terminate the tenancy for “other good cause” unless the owner is terminating the tenancy because of something the family did or failed to do. For example, the following are NOT grounds for termination of tenancy during the initial lease term: • Failure by family to accept offer of new lease or lease revision; • Owner’s desire to use unit for personal or other use; or • Business or economic reason. 14-2 2010 Draft Administrative Plan Chapter 14 -Contract Terminations After the initial term of the lease, other good cause includes: • Business or economic reason for regaining possession; • Owner’s desire to repossess unit for personal use; or • Tenant’s refusal to accept offer of a new lease. The owner may not terminate tenancy if the PHA fails to pay the housing assistance payment or pays it late. PHA failure to make the housing assistance payment is not a violation of the lease between the family and the owner. The following provisions regarding foreclosure expire on December 31, 2012: • During the term of the lease, the tenant has a right to remain in the unit and cannot be evicted, except for actions that constitute good cause. • If the lease ends in less than 90 days, the new owner may not evict the tenant without giving the tenant at a minimum 90 days notice. • At the end of the term of the lease, the new owner may terminate the tenancy if the new owner provides a 90-day notice. • The new owner may terminate the tenancy if the owner will occupy the unit as a primary residence, and has provided the tenant a notice to vacate at least 90 days before the effective date of such notice. This is the only exception to the rule that the tenant may not be evicted during the term of the lease. Evidence of Criminal Activity The owner may terminate tenancy and evict by judicial action a family for criminal activity by a family member if the owner determines they have engaged in the criminal activity: • Regardless of arrest or conviction. • Without satisfying the standard of proof used for a criminal conviction. Exclusion of Culpable Household Member The owner may require a tenant to exclude a household member in order for the family to continue to reside in the assisted unit. Consideration of Rehabilitation 14-3 2010 Draft Administrative Plan Chapter 14 -Contract Terminations When determining whether to terminate the tenancy for illegal drug use or alcohol abuse, the owner may consider whether the family member: • Is no longer participating in the drug and or alcohol abuse. • Has successfully completed a supervised drug or alcohol rehab program. • Has otherwise been successfully rehabilitated. The owner may require the tenant to submit evidence of any of the three (above). Actions of termination by the owner must be consistent with the fair housing and equal opportunities as stated in 24 CFR 5.105. Housing assistance payments are paid to the owner under the terms of the HAP contract. If the owner has begun eviction and the family continues to reside in the unit, the PHA must continue to make housing assistance payments to the owner until the owner has obtained a court judgment or other process allowing the owner to evict the tenant, unless the family moves or other reasons for termination apply. If the action is finalized in court, the owner must provide the PHA with the documentation, including notice of the lockout date. D. TERMINATION OF THE CONTRACT BY PHA [24 CFR 982.404(a), 982.453, 982.454, 982.552(a)(3)] The term of the HAP contract terminates when the lease terminates, when the PHA terminates program assistance for the family, and/or when the owner has breached the HAP contract. (See "Owner Disapproval and Restriction", Chapter 16 of this Administrative Plan) The PHA may also terminate the contract if: • The PHA terminates assistance to the family. • The family is required to move from a unit when the unit does not meet the HQS space standards because of an increase in family size or a change in family composition. • Funding is no longer available under the Annual Contributions Contract. • Family vacates without notice • Family self-terminates from HCV participation. The contract will terminate when 180 days pass since the last housing assistance payment to the owner. 14-4 2010 Draft Administrative Plan Chapter 15- Denial or Termination of Assistance Chapter 15 DENIAL OR TERMINATION OF ASSISTANCE [24 CFR 5.902, 5.902, 5.903, 5.905, 982.4, 982.54, 982.552, 982.553] INTRODUCTION The PHA may deny or terminate assistance for a family because of the family's action or failure to act. The PHA will provide families with a written description of the family obligations under the program, the grounds under which the PHA can deny or terminate assistance, and the PHA's informal hearing procedures. This chapter describes when the PHA is required to deny or terminate assistance, and the PHA's policies for the denial of a new commitment of assistance and the grounds for termination of assistance under an outstanding HAP contract. A. GROUNDS FOR DENIAL/TERMINATION [24 CFR 982.54, 982.552, 982.553] If denial or termination is based upon behavior resulting from a disability, the PHA will delay the denial or termination in order to determine if there is an accommodation that would negate the behavior resulting from the disability. HUD Denial and Termination [24 CFR 982.54 (d), 982.552(b), 982.553(a), 982.553(b)] The PHA must terminate assistance for participants if the family is under contract and 180 days have elapsed since the PHA's last housing assistance payment was made. (See "Contract Terminations", Chapter 14 of this Administrative Plan.) The PHA will notify the family of their hearing rights prior to termination. The PHA must permanently deny assistance to applicants, and terminate the assistance of a family under the program if the PHA determines that any member of the household has ever been convicted of manufacturing or producing methamphetamine on the premises of federally assisted housing. The PHA may deny admission to the program for applicants, and terminate assistance for program participants if the PHA determines that any household member is currently engaging in illegal use of a drug. (See Section B of this chapter for the PHA’s established standards) The PHA may deny admission to the program for applicants, and terminate assistance for program participants if the PHA determines that it has reasonable cause to believe that a household member’s illegal drug use or a pattern of illegal drug use may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents. See Section B of this chapter for the PHA’s established standards. The PHA must deny admission to an applicant if the PHA determines that any member of the household is subject to a lifetime registration requirement under a State sex offender registration 15-1 2010 Draft Administrative Plan Chapter 15- Denial or Termination of Assistance program. See Section B of this chapter for the PHA’s established standards regarding criminal background investigation and determining whether a member of the household is subject to a lifetime registration requirement under a State sex offender registration program. The PHA must terminate program assistance for a family evicted from housing assisted under the program for serious violation of the lease. The PHA must deny admission to the program for an applicant or terminate program assistance for a participant if any member of the family fails to sign and submit consent forms for obtaining information in accordance with CFR Part 5, subparts B and F. The PHA must deny admission or terminate assistance when required under the regulations to establish citizenship or eligible immigration status. The PHA must deny or terminate assistance if the family member fails to meet the eligibility requirements concerning individuals enrolled at an institution of higher educations as specified in 24 CFR 5.612. Grounds for Denial or Termination of Assistance [24 CFR 982.551, 982.552(c);982.553] The PHA may deny program assistance for an applicant, or terminate program assistance for a participant, for any of the following reasons: • If any family member violates any family obligation under the program as listed in 24 CFR 982.551. • Physical abuse or violence may be cause for termination. HCV clients who are victims of certain types of violence may be protected under the Violence Against Women Act (VAWA) of 2005 from termination. Clients cannot be terminated from assistance solely because of domestic violence and/or abuse by a partner unless there is other cause for termination (such as non-payment of rent). The abuser may be removed from the voucher while allowing the rest of the household to remain. • The family pays an amount for rent to the owner not approved by the Housing Authority. • Any request to add a person to the household who is on either probation or parole will be denied. • If any member of the family has engaged in or threatened abusive or violent behavior toward PHA personnel, contractors, customers on the premises. This includes but is not limited to: verbal abuse, physical abuse, violence or acts of intimidation. Use of expletives that are generally considered insulting, racial epithets, or other language, written or oral, that is customarily used to insult or intimidate, may be cause for termination or denial. "Threatening" refers to oral or written threats or physical gestures that communicate the intent to abuse or commit violence. If any family member engages in behavior which creates a need for police to be summoned to the 15-2 2010 Draft Administrative Plan Chapter 15- Denial or Termination of Assistance HA premises. This may include, but is not limited to refusing to leave when asked by HA staff or Contractors. • If the entire family is absent from the assisted unit for more than 30 consecutive days, the unit will be considered to be vacated and the assistance will be terminated. • If a member of the household has been indicted, convicted, or otherwise sought by the courts and is fleeing to avoid prosecution, custody, or confinement. • If the family self-terminates from HCV Program participation. • Eviction. • If the family fails to give the PHA a copy of any termination of tenancy notice (which may include but it is not limited to a 30-Day Notice to Vacate or a 3-Day Notice to Pay or Quit) within 15 days. • If the family is not eligible for admission, refer to "Eligibility for Admission", Chapter 2 of this Administrative Plan, for further information. Notice of Proposed Termination of Assistance In any case where the PHA decides to terminate assistance to the family, the PHA must give the family written notice which states: • The reason(s) for the proposed termination. • The effective date of the termination. • The family's right to request an Informal Hearing to be held before termination of assistance. • The date by which a request for an informal hearing must be received by the PHA. If the PHA proposes to deny or terminate assistance for criminal activity as shown by a criminal record, the PHA will provide the subject of the record and the tenant with a copy of the criminal record. Termination of housing assistance will be effective at the end of the month, following a 30-day notice of adverse action. The PHA will provide written notice of the contract termination to the owner so that it will coincide with the Termination of Assistance, unless the family has vacated the subsidized unit, or the termination date allows the owner to receive overlapping HAPs for two tenants in the same unit. The Notice to the owner will not include any details regarding the reason for termination of assistance. 15-3 2010 Draft Administrative Plan Chapter 15- Denial or Termination of Assistance Methods of Termination Termination of assistance for a participant may include but is not limited to any or all of the following: • Refusing to enter into a HAP contract or approve a request for tenancy (RFTA). • Terminating housing assistance payments under an outstanding HAP contract • Refusing to process or provide assistance under portability procedures. Confidentiality of Criminal Records The PHA will ensure that any criminal record received is maintained confidentially, not misused or improperly disseminated, and destroyed once the purpose for which it was requested is accomplished. All criminal reports, while needed by staff for screening for criminal behavior, will be housed in a secured location with access restricted to individuals responsible for such screening. Misuse of the above information by any employee will be grounds for termination of employment. Penalties for misuse are contained in Personnel Policies. If the family is determined eligible for initial or continued assistance, the PHA's copy of the criminal report shall be shredded as soon as the information is no longer needed for eligibility or continued assistance determination. If the family's assistance is denied or terminated, the criminal record information shall be shredded immediately upon completion of the review or hearing procedures and a final decision has been made. The PHA will document in the family's file that the family was denied admission or the tenancy was terminated due to findings in the Criminal History Report. B. SCREENING AND TERMINATION FOR DRUG ABUSE AND OTHER CRIMINAL ACTIVITY [24CFR 982.553] Purpose All federally assisted housing is intended to provide a place to live and raise families, not a place to commit crime, to use or sell drugs or terrorize neighbors. It is the intention of the PHA to fully endorse and implement a policy designed to: • Help create and maintain a safe and drug-free community • Keep our program participants free from threats to their personal and family safet 15-4 2010 Draft Administrative Plan Chapter 15- Denial or Termination of Assistance Administration All screening and termination of assistance procedures shall be administered fairly and in such a way as not to violate rights to privacy or discriminate on the basis of race, color, nationality, religion, familial status, disability, sex, or other legally protected groups. The privacy policy will be posted on the bulletin boards of the PHA’s area management offices (including 701 12th street) and copies will be made readily available to applicants upon request. To the maximum extent possible, the PHA will encourage other community and governmental entities in the promotion and enforcement of this policy. Screening of Applicants Criminal Background screening will apply to any member of the household who is 18 years of age or older, or an emancipated minor. Disclosure of Criminal Records to the Family If the PHA takes any adverse action based on a criminal conviction record, the applicant or participant will be provided with a copy of the criminal record and an opportunity to dispute the record. Applicants will be provided an opportunity to dispute the record at an informal review. Standard for Violation The PHA will consider the illegal use of a controlled substance or alcohol abuse to be a pattern if there is more than one arrest or conviction, during the previous 18 months. "Engaged in or engaging in" violent criminal activity means any act within the past 5 years by an applicant or participant or household member which involved criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force substantial enough to cause, or be reasonably likely to cause, serious bodily injury or property damage, which resulted in the arrest and/or conviction of the applicant, participant, or household member. In evaluating evidence of negative past behavior, the PHA will give fair consideration to the seriousness of the activity with respect to how it would affect other residents, and/or likelihood of favorable conduct in the future which could be supported by evidence of rehabilitation. Applicants will be denied assistance if they have been convicted of violent criminal activity within the last 5 years prior to the date of the certification interview. If an applicant is denied admission to the program for the reasons detailed in this section, the applicant retains the right to appeal. (See “Complaints and Appeals”, Chapter 18 of this Administrative Plan) 15-5 2010 Draft Administrative Plan Chapter 15- Denial or Termination of Assistance Other Criminal Activity The PHA will deny participation in the program to applicants or may terminate participants from the program where the PHA determines there is reasonable cause to believe that the person is/has illegally used a controlled substance or engaged in other criminal activity as defined in the Glossary. Sex Offenders The PHA will deny admission or terminate continued assistance if any member of the household is subject to a lifetime registration requirement under a State sex offender registration program, if appropriate. In screening applicants, the PHA will perform criminal history background checks to determine whether any household member is subject to a lifetime sex offender registration requirement. Drug-Related Criminal Activity or Violent Criminal Activity [24 CFR 982.553] Denial: Persons evicted from federally assisted housing because of drug-related criminal activity are ineligible for admission to the Section 8 program for a 5 year period beginning on the date of such eviction. However, the household may be admitted if, after considering the individual circumstances of the household, the PHA determines that: • The evicted household member who engaged in drug-related criminal activity has successfully completed a supervised drug rehabilitation program approved by the PHA. • The circumstances leading to eviction no longer exist because the criminal household member has died or is imprisoned. Termination: Under the family obligations listed at 24 CFR 982.551, the members of the household must not engage in drug-related criminal activity or violent criminal activity or other criminal activity that threatens the health, safety or right to peaceful enjoyment of other residents and persons residing in the immediate vicinity of the premises. HUD regulations at 24 CFR 982.553(b) requires the PHA to establish standards for termination of assistance when this family obligation is violated. The PHA has established the following standards for termination of assistance for the family when a household member has violated the family obligation to refrain from participating in drug-related or violent criminal activity. The PHA may waive the requirement regarding drug-related criminal activity if: • The person demonstrates successful completion of a credible rehabilitation program approved by the PHA, o 15-6 2010 Draft Administrative Plan Chapter 15- Denial or Termination of Assistance • In appropriate cases, the PHA may permit the family to continue receiving assistance provided that family members determined to have engaged in the proscribed activities, excluding Head of Household, Spouse or Co-Head, will not reside in the unit. If the violating member is a minor, the PHA may consider individual circumstances with the advice of Juvenile Court officials. For an adult, the PHA will require the family to sign a written certification the family member is no longer in the home, and will request documentation verifying the offending family member’s new residential address. Terminating Assistance for Alcohol Abuse by Household Members Under the family obligations listed at 24 CFR 982.551, the members of the household must not abuse alcohol in a way that threatens the health, safety or right to peaceful enjoyment of other residents and persons residing in the immediate vicinity of the premises. Assistance will be terminated due to violation of a family obligation if the PHA determines that a member of the household has demonstrated a pattern of alcohol abuse that threatens the health, safety or right to peaceful enjoyment of other residents and persons residing in the immediate vicinity of the premises. This includes cases where the PHA determines that there is a pattern of illegal use of controlled substances or a pattern of alcohol abuse. C. FAMILY OBLIGATIONS [24 CFR 982.551] The family must supply any information that the PHA or HUD determines is necessary in the administration of the program, including submission of required evidence of citizenship or eligible immigration status (as provided by 24 CFR 982.551). "Information" includes any requested certification, release or other documentation. The family must disclose and verify Social Security Numbers (as provided by 24 CFR 5.216) and must sign and submit consent forms for obtaining information in accordance with 24 CFR 5.230. All information supplied by the family must be true and complete. The family is responsible for an HQS breach caused by the family as described in 982.404(b). The family must allow the PHA to inspect the unit at reasonable times and after reasonable notice. The family may not commit any serious or repeated violations of the lease. The family must notify the owner and, at the same time, notify the PHA before the family moves out of the unit or terminates the lease-upon notice to the owner. The family must promptly give the PHA a copy of any owner eviction notice. The family must use the assisted unit for residence by the family. The unit must be the family's only residence. 15-7 2010 Draft Administrative Plan Chapter 15- Denial or Termination of Assistance The PHA must approve the composition of the assisted family residing in the unit. The family must notify the PHA of the birth, adoption or court-awarded custody of a child within thirty days. The family must request PHA’s approval prior to adding any other person to the household, including a foster child or a live in aide. (Refer to Chapter 5) The family must notify the PHA within thirty days if any family member no longer resides in the unit. Members of the household may engage in legal profit-making activities in the unit, but only if such activities are incidental to primary use of the unit as a residence by members of the family. The family must not sublease the unit. The family must not assign the lease or transfer the unit. The family must supply any information or certification requested by the PHA to verify that the family is living in the unit, or relating to family absence from the unit, including any PHA- requested information or certification on the purposes of family absences. The family must cooperate with the PHA for this purpose. The family must promptly notify the PHA of absence from the unit. The family must not own or have any interest in the unit. The members of the family must not commit fraud, bribery or any other corrupt or criminal act in connection with any Federal housing program. The household members and/or guests may not engage in drug-related criminal activity or violent criminal activity, nor may they engage in any criminal activity that threatens the health, safety or right to peaceful enjoyment of other residents and persons residing in the immediate vicinity of the premises. The members of the household must not abuse alcohol in a way that threatens the health, safety or right to peaceful enjoyment of other residents and persons residing in the immediate vicinity of the premises. An assisted family, or members of the family, may not receive assistance through the Housing Choice Voucher Program while receiving another housing subsidy, for the same unit or for a different unit, under any duplicative (as determined by HUD or in accordance with HUD requirements) Federal, State or local housing assistance program. Public Housing Authority Discretion [24 CFR 982.552(c)] In deciding whether to deny or terminate assistance because of action or failure to act by members of the family, the PHA has discretion to consider all of the circumstances in each case, including the seriousness of the case. The PHA will use its discretion in reviewing the extent of participation or culpability of individual family members and the length of time since the violation occurred. The PHA may also review the family’s more recent history and record of 15-8 2010 Draft Administrative Plan Chapter 15- Denial or Termination of Assistance compliance and the effects that denial or termination of assistance may have on other family members who were not involved in the action or failure to act. The PHA may impose, as a condition of continued assistance for other family members, a requirement that family members who participated in, or were culpable for the action or failure to act, will not reside in the unit. The PHA may permit the other members of a family to continue in the program. Enforcing Family Obligations Explanations and Terms The term "promptly" when used with the family obligations always means "within 30 days." Denial or termination of assistance is always optional except where this Administrative Plan or the 24CFR state otherwise. HQS Breach The assigned Inspector will determine if an HQS breach as identified in 24 CFR 982.404 (b) is the responsibility of the family. Families may be given extensions to cure HQS breaches by the Principal Analyst or Supervisor. Lease Violations The following criteria will be used to decide if a serious or repeated violation of the lease will result in termination of assistance: • If the owner terminates tenancy for serious or repeated violations of the lease. • If there are police reports, neighborhood complaints or other third party information, that has been verified by the PHA. • Nonpayment of rent is considered a serious violation of the lease. Family Member Moves Out Families are required to notify the PHA if any family member leaves the assisted household. When the family notifies the PHA, they must furnish the following information: • The date the family member moved out. • The new address, if known, of the family member. • A statement as to whether the family member is temporarily or permanently absent. 15-9 2010 Draft Administrative Plan Chapter 15- Denial or Termination of Assistance Limitation on Profit-Making Activity in Unit If the PHA determines that the use of the unit as a business is not incidental to its use as a dwelling unit, it will be considered a program violation. If the PHA determines the business is not legal, it will be considered a program violation. Interest in Unit The owner may not reside in the assisted unit regardless of whether (s)he is a member of the assisted family, unless the family owns the mobile home and rents the pad, excluding shared housing; unless the client is a participant in the Homeownership Program. In determining fraud, the PHA will consider which family members were involved, the circumstances, and any hardship that might be caused to innocent members. D. PROCEDURES FOR NON-CITIZENS [24 CFR 5.514, 5.516, 5.518] Denial or Termination due to Ineligible Immigrant Status Applicant or participant families in which all members are neither U.S. citizens nor eligible immigrants are not eligible for assistance and must have their assistance terminated. The PHA must offer the family an opportunity for a hearing. (See "Eligibility for Admission", Chapter 3, section on Citizenship/Eligible Immigration Status.) Assistance may not be terminated while verification of the participant family's eligible immigration status is pending. Procedure for Denial or Termination If the family (or any member) claimed eligible immigrant status and the INS primary and secondary verifications failed to document the status, the family may make an appeal to the INS and request a hearing with the PHA either after the INS appeal or in lieu of the INS appeal. After the PHA has made a determination of ineligibility, the family will be notified of the determination and the reasons and informed of the option for prorated assistance (if applicable). E. AUTOMATIC TERMINATION OF HAP CONTRACT [24 CFR 982.455 (a)] The HAP contract terminates automatically 180 calendar days after the last housing assistance payment to the owner. 15-10 2010 Draft Administrative Plan Chapter 15- Denial or Termination of Assistance F. ZERO HAP ASSISTANCE TENANCIES The family may remain in the unit at $0 assistance for 180 days after the last HAP payment and then the assistance will be reviewed for continued assistance or termination. If, within the 180day timeframe, the PHA receives notice that the family incurs a decrease in their income, which would cause the family to be eligible for a housing assistance payment, the PHA will complete a review of the family’s income and resume assistance payments for the family if the review process verifies the family continues to be eligible for the program. In order for a family to move to another unit during the 180 days of receiving zero assistance, the rent for the new unit would have to be high enough to necessitate a housing assistance payment G. OPTION NOT TO TERMINATE FOR MISREPRESENTATION [24 CFR 982.551, 982.552(c)] If the family has misrepresented any facts that caused the PHA to overpay assistance, the PHA may choose not to terminate. H. MISREPRESENTATION IN COLLUSION WITH OWNER [24 CFR 982.551, 982.552 (c)] If the family intentionally, willingly, and knowingly commits fraud or is involved in any other illegal scheme with the owner, the PHA will deny or terminate assistance. I. MISSED APPOINTMENTS AND DEADLINES [24 CFR 982.551, 982.552 (c)] It is a family obligation to supply information, documentation, and certification as needed for the PHA to fulfill its responsibilities. The PHA schedules appointments and sets deadlines in order to obtain the required information. The Obligations also require that the family allows the PHA to inspect the unit, and appointments are made for this purpose. An applicant or participant who fails to keep an appointment, or to supply information required by a deadline without notifying the PHA, may be sent a Notice of Denial or Termination of Assistance for failure to provide required information, or for failure to allow the PHA to inspect the unit. The family will be given information about the requirement to keep appointments and the number of times appointments will be rescheduled, as specified in this Plan. Appointments will be scheduled and time requirements will be imposed for the following events and circumstances: 15-11 2010 Draft Administrative Plan Chapter 15- Denial or Termination of Assistance • Eligibility for Admissions • Verification Procedures • Certificate/Voucher Issuance and Briefings • Housing Quality Standards and Inspections • Recertifications • Appeals Acceptable reasons for missing appointments or failing to provide information by deadlines are for Good Cause, as defined in the Glossary. Procedure when Information Not Provided or Appointments are Missed For most purposes in this Plan, the family will be given two opportunities to address a breach before being issued a notice of termination or denial for breach of a family obligation. These opportunities may be Appointments, written requests for information or both. After issuance of the termination notice, if the family offers to correct the breach within the time allowed to request a hearing, the termination may be rescinded only after the family cures the breach. 15-12 2010 Draft Administrative Plan Chapter 16- Owner Disapproval and Restriction Chapter 16 OWNER DISAPPROVAL AND RESTRICTION [24 CFR 982.54, 982.306, 982.453] INTRODUCTION It is the policy of the PHA to recruit owners to participate in the Voucher program. The PHA will provide owners with prompt and professional service in order to maintain an adequate supply of available housing throughout the jurisdiction of the PHA. The regulations define when the PHA must disallow an owner participation in the program, and they provide the PHA discretion to disapprove or otherwise restrict the participation of owners in certain categories. This Chapter describes the criteria for owner disapproval and the various penalties for owner violations. A. DISAPPROVAL OF OWNER [24 CFR 982.306, 982.54(d)(8)] The owner does not have a right to participate in the program. For purposes of this section, “owner” includes a principal or other interested party. The PHA will disapprove the owner for the following reasons: • HUD or other agency directly related has informed the PHA that the owner has been disbarred, suspended, or subject to a limited denial of participation under 24 CFR part 24. • HUD has informed the PHA that the Federal government has instituted an administrative or judicial action against the owner for violation of the Fair Housing Act or other Federal equal opportunity requirements and such action is pending. • HUD has informed the PHA that a court or administrative agency has determined that the owner has violated the Fair Housing Act or other Federal equal opportunity requirements. • Unless their lease was effective prior June 17, 1998, the owner may not be a relative of any family member. The PHA may waive this restriction as a reasonable accommodation for a family member who is a person with a disability if there is a nexus between the disability-related need and the provisions included in the rental property. • In cases where the owner and tenant bear the same last name, the PHA may, at its discretion, require the family and or owner to certify whether they are related to each 16-1 2010 Draft Administrative Plan Chapter 16- Owner Disapproval and Restriction other in any way. • The owner has violated the terms of the housing assistance payments contract. This includes, but is not limited to, charging the tenant, or accepting from the tenant, payments in excess of the approved contract rent for rent of the contract unit (called “side payments”). • The owner has violated any obligation under the HAP contract for the dwelling unit, including the owner’s obligations to maintain the unit to HQS, including any standards the PHA has adopted in this policy. • The owner has committed fraud, bribery or any other corrupt act in connection with any Federal housing program. • The owner has engaged in drug trafficking. • The owner has a history or practice of non-compliance with the HQS for units leased under the tenant-based programs or with applicable housing standards for units leased with project-based Section 8 assistance or leased under any other Federal housing program. • The owner has a history or practice of renting units that fail to meet State or local housing codes. • The owner has not paid State or local real estate taxes, fines or assessments. • The owner has failed to comply with regulations, the mortgage or note, or the regulatory agreement for projects with mortgages insured by HUD or loans made by HUD. • The owner has engaged in or threatened abusive or violent behavior toward PHA personnel. “Abusive or violent behavior” includes verbal as well as physical epithets or other language, written or oral, that is customarily used to intimidate, may be cause for termination or denial. “Threatening” refers to oral or written threats or physical gestures that communicate intent to abuse or commit violence. • The PHA will not approve a HAP contract to any relative owner, except when needed as a reasonable accommodation for disability. B. OWNER/AGENT RESTRICTIONS [24 CFR 982.306] Where it is determined that an owner or agent has violated the terms of the HAP contract, the PHA may do the following: 16-2 2010 Draft Administrative Plan • Conduct an Owner or Agent conference to determine the extent of the violation; • Issue a warning against further program violations • Recommend program disbarment for a period of up to 5 years or permanent disbarment. In the case where the PHA determines that there has been an overpayment of HAP to the owner, the PHA will issue a repayment notice for any outstanding HAP. 16-3 Chapter 17 - Owner or Family Debts to the PHA Chapter 17 OWNER OR FAMILY DEBTS TO THE PHA [24 CFR 982.552] INTRODUCTION This chapter describes the PHA's policies for the recovery of monies that have been overpaid for families and to owners. It describes the methods that will be utilized for collection of monies and the guidelines for different types of debts. It is the PHA's policy to meet the informational needs of owners and families, and to communicate the program rules in order to avoid owner and family debts. Before a debt is assessed against a family or owner, the file must contain documentation to support the PHA's claim that the debt is owed. The file must further contain written documentation of the method of calculation, in a clear format for review by the owner, the family or other interested parties. When families or owners owe money to the PHA, the PHA will make every effort to collect it. The PHA may use a variety of collection tools to recover debts including, but not limited to: • Requests for lump sum payments • Civil suits • Abatements • Reductions in HAP to owner • Collection agencies • Credit bureaus • Income tax refund intercept • U.S. Department of Housing and Urban Development (HUD) A. REPAYMENT OF DEBT TO THE PHA Family When a family is determined to have incurred a debt to the PHA, the PHA will meet with the family to inform them of the money owed and the process used to determine the debt. The family will be given the opportunity to make full restitution at this time. The PHA will propose termination of eligibility, effective sixty days from the date of the notice. If the family fails to repay the money owed in full during the sixty days, a termination notice will be issued. If the 17-1 2010 Draft Administrative Plan Chapter 17 - Owner or Family Debts to the PHA family repays all money owed before the date of termination, the PHA will rescind the termination. However, if the amount of the debt owed exceeds $5000.00 the PHA will not enter into a repayment agreement but will terminate the family’s assistance and refer the case to the OIG’s office for prosecution. A move will not be processed until the debt is paid in full, unless approved by the Assistant Director or designee. Owner If an owner has an overpayment on a HAP check and has other HAP contracts, the overpayment amount will be deducted from the next monthly HAP check. If an owner does not have any other active HAP contracts, the owner has ten (10) working days to: • Issue a personal check for the amount of the overpayment payable to the PHA; or • Return the un-cashed HAP check The owner will be subject to collections if the overpayment has not been paid in full. B. PROGRAM FRAUD [24 CFR 982.163, [24 CFR 982.453(b)] ] HUD's definition of program fraud and abuse is a single act or pattern of actions that: • Constitutes false statement, omission, or concealment of a substantive fact, made with intent to deceive or mislead, and • Results in payment of Section 8 program funds in violation of program requirements. Repayment For Program Fraud – Families The Housing Authority will: • Seek immediate repayment of money owed by families due to program fraud; • Review the case to determine future eligibility; and • Refer the case to HUD Office of Inspector General (OIG) for collection or criminal prosecution, if appropriate. Repayment for Program Fraud - Owners If the PHA determines that the owner has retained housing assistance or claim payments the owner is not entitled to, the PHA may reclaim the amounts from future housing assistance or claim payments owed by the owner for any units under contract. 17-2 2010 Draft Administrative Plan Chapter 17 - Owner or Family Debts to the PHA If future housing assistance or claim payments are insufficient to reclaim the amounts owed, the PHA may: • Require the owner to pay the amount in full within thirty days. • Pursue collections through a collection agency. • Restrict the owner from future participation. C. WRITING OFF DEBTS Debts will not be written off. 17-3 2010 Draft Administrative Plan Chapter 18 – Complaints and Appeals Chapter 18 COMPLAINTS AND APPEALS INTRODUCTION The informal hearing requirements defined in HUD regulation are applicable to participating families who disagree with an action, decision, or inaction of the PHA. This chapter describes the policies, procedures and standards to be used when families disagree with a PHA decision. The procedures and requirements are explained for preference denial meetings, informal reviews and hearings. It is the policy of the PHA to ensure that all families have the benefit of all protections due to them under the law. A. COMPLAINTS TO THE PHA The PHA will respond promptly to complaints from families, owners, and members of the public. Complaints will be referred to the Principal Analyst or Supervisor as appropriate. The PHA may request that complaints be put in writing. Complaints received relating to non-HCV matters will be routed to the appropriate staff. The PHA’s hearing procedures will be distributed to families, in their briefing packets. B. PREFERENCE DENIALS When the PHA denies a preference to an applicant, the family will be notified in writing of the specific reason for the denial and will be offered the opportunity to request an informal review. The family will have ten days to request the informal review in writing. The person who conducts the meeting will be an employee of the PHA who is at or above the level of Housing Specialist, but not the employee who made the decision. C. INFORMAL REVIEW PROCEDURES FOR APPLICANTS [24 CFR 982.54(d)(12), 982.554] Reviews are provided for applicants who are denied assistance before the effective date of the HAP contract. The exception is that when an applicant is denied assistance for citizenship or eligible immigrant status, the applicant is entitled to an informal hearing. When the PHA determines that an applicant is ineligible for the program, the family must be notified of their ineligibility in writing. The notice must contain: 18-1 2010 Draft Administrative Plan Chapter 18 – Complaints and Appeals • The reason(s) they are ineligible; • The procedure for requesting a review if the applicant does not agree with the decision, and; • The time limit for requesting a review. When denying admission for criminal activity as shown by a criminal record, the PHA will provide the subject of the record and the applicant with a copy of the criminal record upon which the decision to deny was based. The PHA must provide applicants with the opportunity for an informal review of decisions denying: • Qualification for preference • Issuance of a voucher • Participation in the program • Assistance under portability procedures • Non-Citizen Eligibility Informal reviews are not required for established policies and procedures and PHA determinations such as: • Discretionary administrative determinations by the PHA • General policy issues or class grievances • A determination of the family unit size under the PHA subsidy standards • Refusal to extend or suspend a voucher • Voucher Expiration • A PHA determination not to grant a request for tenancy • Determination that unit is not in compliance with HQS • Determination that unit is not in accordance with occupancy standards due to family size or composition 18-2 2010 Draft Administrative Plan Chapter 18 – Complaints and Appeals Procedure for Informal Review A request for an informal review must be received in writing no later than ten days from the date of the PHA's notification of denial. The informal review will be scheduled within thirty days from the date the request is received. The informal review may not be conducted by the person who made or approved the decision under review, nor a subordinate of such person. The applicant will be given the option of presenting oral or written objections to the decision. Both the PHA and the family may present evidence and witnesses. The family may use an attorney or other representative to assist them at their own expense. The review may be conducted by mail and/or telephone if acceptable to both parties. A notice of the review findings will be provided in writing to the applicant within fifteen days after the review. It shall include the decision of the review, and an explanation of the reasons for the decision. All requests for a review, supporting documentation and a copy of the final decision will be retained in the family's file. D. INFORMAL HEARING PROCEDURES [24 CFR 982.555(a-f), 982.54(d)(13)] When the PHA makes a decision regarding the eligibility and/or the amount of assistance, applicants and participants must be notified in writing. The PHA will give the family prompt notice of such determinations, which will include: • The proposed action or decision of the PHA; • The family's right to an explanation of the basis for the PHA's decision. • The procedures for requesting a hearing if the family disputes the action or decision; • The time limit for requesting the hearing. • To whom the hearing request should be addressed • A copy of the PHA's hearing procedures The PHA must provide participants with the opportunity for an informal hearing for decisions related to any of the following PHA determinations: • Determination of the family's annual or adjusted income and the computation of the housing assistance payment • Appropriate utility allowance used from schedule 18-3 2010 Draft Administrative Plan Chapter 18 – Complaints and Appeals • Family unit size determination under PHA subsidy standards • Determination to terminate assistance for any reason. • Determination to terminate a family's FSS contract, withhold supportive services, or propose forfeiture of the family's escrow account. • Housing Assistance termination due to having been at zero HAP for 180 days. • Denial of a reasonable accommodation. The PHA must always provide the opportunity for an informal hearing before termination of assistance. Informal hearings are not required for established policies and procedures and PHA determinations such as: • Discretionary administrative determinations by the PHA • General policy issues or class grievances • Establishment of the PHA schedule of utility allowances for families in the program • A PHA determination not to approve an extension or suspension of a voucher term • A PHA determination not to approve a unit or lease • A PHA determination that an assisted unit is not in compliance with HQS (PHA must provide hearing for family breach of HQS because that is a family obligation determination) • A PHA determination that the unit is not in accordance with HQS because of the family size • A PHA determination to exercise or not exercise any right or remedy against the owner under a HAP contract. • Voucher expiration Procedure for Requesting an Informal Hearing for Participants A request for an informal hearing must be received in writing no later than 15 days from the date of the PHA's notification of adverse action. The informal hearing will be scheduled within 45 days from the date the request is received. If the complainant does not request an informal hearing within 15 days of the date of written notice, s/he waives his/her right to a hearing, and the PHA's proposed disposition of the grievance will become final. 18-4 2010 Draft Administrative Plan Chapter 18 – Complaints and Appeals This section in no way constitutes a waiver of the complainant's right to contest the Authority's disposition in an appropriate judicial proceeding. Notification of Informal Hearing It is the PHA's objective to resolve disputes at the lowest possible level. The PHA will ensure that applicants and participants will receive all of the protections and rights afforded by the law and the regulations. When the PHA receives a request for an informal hearing, a hearing shall be scheduled within 45 days from the date the request is received. The notification of hearing will give at least 15 days notice and will contain: • The date and time of the hearing • The location where the hearing will be held • The family's right to bring evidence, witnesses, legal or other representation at the family's expense • The right to view any documents or evidence in the possession of the PHA upon which the PHA based the proposed action and, at the family's expense, to obtain a copy of such documents prior to the hearing. Requests for such documents or evidence must be received no later than three days before the hearing date. • A notice to the family that the PHA will request a copy of any documents or evidence the family will use at the hearing. Requests for such documents or evidence must be received no later than three days before the hearing date. The PHA's Hearing Process After a hearing date is scheduled, the family may request to reschedule a hearing only upon showing "good cause," which is defined as an unavoidable conflict which seriously affects the health, safety or welfare of the family. Families have the right to: • Present written or oral objections to the PHA's determination. • Examine the documents in the file which are the basis for the PHA's action, and all documents submitted to the Hearing Officer; • Copy any relevant documents at their expense; • Present any information or witnesses pertinent to the issue of the hearing; except documents which the PHA has not been given at least three full business day to examine (to include making a copy at PHA expense), at PHA offices, prior to the 18-5 2010 Draft Administrative Plan Chapter 18 – Complaints and Appeals hearing. Such documents should not be left in drop boxes and must clearly be marked as Hearing Documents. In accordance with 24 CFR 982.555, if the family does not make the document available for examination on request of the PHA, the family may not rely on the document at the hearing. • Request that PHA staff be available or present at the hearing to answer questions pertinent to the case; and • Be represented by legal counsel, advocate, or other designated representative at their own expense. If the family requests copies of documents relevant to the hearing, the PHA will make the copies for the family and assess a reasonable fee. In no case will the family or their representative, including legal counsel, be allowed to remove the file from the PHA's office. In addition to other rights contained in this Chapter, the PHA has a right to: • Present evidence and any information pertinent to the issue of the hearing; • Be notified if the family intends to be represented by legal counsel, advocate, or another party; • Examine and copy any documents to be used by the family prior to the hearing; • Have its attorney present; and • Have staff persons and other witnesses familiar with the case present. The informal hearing shall be conducted by the Hearing Officer appointed by the PHA who is neither the person who made or approved the decision, nor a subordinate of that person. The PHA appoints only qualified hearing officer(s). The hearing shall concern only the issues for which the family has received the opportunity for hearing. Evidence presented at the hearing may be considered without regard to admissibility under the rules of evidence applicable to judicial proceedings. Evidence not presented at the time of the hearing may not be accepted, unless such evidence was unavailable at the time of the hearing due to circumstances beyond the client’s control. The decision to allow evidence not available at the time of the hearing will be decided at the hearing officer’s discretion. The opposing party will always be given an opportunity to submit a written or oral response. No documents may be presented which have not been provided to the other party before the hearing if requested by the other party. "Documents" includes records and regulations. The Hearing Officer(s) may ask the family for additional information and/or might adjourn the hearing in order to reconvene at a later date, before reaching a decision. The hearing may be conducted by mail and/or telephone if acceptable to both parties. 18-6 2010 Draft Administrative Plan Chapter 18 – Complaints and Appeals If the family misses an appointment or deadline or is more than 15 minutes late for an appointment, they will be required to show “good cause” (as defined in the Glossary) or the action of the PHA shall take effect and another hearing will not be granted. The Hearing Officer(s) will determine whether the action, inaction or decision of the PHA is legal in accordance with HUD regulations and this Administrative Plan based upon the evidence and testimony provided at the hearing. Factual determinations relating to the individual circumstances of the family will be based on a preponderance of the evidence presented at the hearing. A notice of the hearing findings shall be provided in writing to the PHA and the family within 14 days and shall include: • A clear summary of the decision and reasons for the decision; • Notice that the Code of Civil Procedure, Sec 1094.6 governs the time within which judicial review must be sought. • The date the decision goes into effect. • If the PHA’s decision is upheld by the Hearing Officer, a notice of termination of subsidy will be sent effective 30 days from the date of the notice. The PHA is not bound by hearing decisions: • Which concern matters in which the PHA is not required to provide an opportunity for a hearing; • Which conflict with or contradict HUD regulations or requirements; • Which conflict with or contradict Federal, State or local laws; or • Which exceed the authority of the person conducting the hearing. The PHA shall send a letter to the participant if it determines the PHA is not bound by the Hearing Officer(s)'s determination within ten days. The letter shall include the PHA's reasons for the decision. All requests for a hearing, supporting documentation and a copy of the final decision will be retained in the family's file. Expedited Hearing Procedures The PHA may expedite a hearing at its sole discretion. All the rights and obligations of the family and the PHA stated in this Chapter shall apply except as follows: • PHA shall provide a hearing within 30 days after receipt of family's request for a hearing; and 18-7 2010 Draft Administrative Plan Chapter 18 – Complaints and Appeals • The Hearing Officer shall provide both the family and the PHA a written decision within 14 days after the hearing. Transcripts Either party may arrange, in advance and at the expense of the party making the arrangement, for a transcript of the hearing. Any interested party may purchase a copy of such transcript. Agreement The parties may agree in writing to follow a different procedure in the resolution of a grievance. E. HEARING AND APPEAL PROVISIONS FOR "RESTRICTIONS ON ASSISTANCE TO NON-CITIZENS" [24 CFR Part 5, Subpart E] Assistance to the family may not be delayed, denied or terminated on the basis of immigration status at any time prior to the receipt of the decision on the INS appeal. Assistance to a family may not be terminated or denied while the PHA hearing is pending but assistance to an applicant may be delayed pending the PHA hearing. INS Determination of Ineligibility If an applicant, participant or any family member declares him or herself to be an eligible immigrant and the status is not verified by the INS SAVE or manual verification search system, the PHA will notify the head of household. The notice will be in writing and will include: 1. The name(s) of the person for whom the eligible immigration status was not verified. 2. A statement that their financial assistance will be terminated, if they are a current participant. 3. A statement of the family’s eligibility for proration of assistance if the application includes eligible and ineligible family members which is considered a mixed family. 4. A statement of the eligibility for proration and temporary deferral of assistance, if eligible. 5. The right to appeal to the INS within thirty days of the PHA’s decision and the right to request an informal hearing within ten days of written notice. The family’s right to request an informal hearing with the PHA is in lieu of or subsequent to the INS appeal. If the family appeals to the INS, they must give the PHA a copy of the appeal and proof of mailing or the PHA may proceed to deny or terminate. The time period to request an appeal may be extended by the PHA for good cause. 18-8 2010 Draft Administrative Plan Chapter 18 – Complaints and Appeals After receipt of a request for an informal hearing, the hearing is conducted as described in this chapter for both applicants and participants. If the hearing officer(s) decides that the individual is not eligible, and there are no other eligible family members the PHA will: • Deny the applicant family. • Defer termination if the family is a participant and qualifies for deferral. • Terminate the participant if the family does not qualify for deferral. If there are eligible member(s) in the family, the PHA will offer to prorate assistance or give the family the option to remove the ineligible member(s). All other complaints related to eligible citizen/immigrant status: • If any family member fails to provide documentation or certification as required by the regulation, that member is treated as ineligible. If all family members fail to provide the required documentation, the family will be denied or terminated for failure to comply. • Participants whose termination is carried out after temporary deferral may not request a hearing since they had an opportunity for a hearing prior to the termination. • Participants whose assistance is prorated (either based on their statement that some members are ineligible or due to failure to verify eligible immigration status for some members after exercising their appeal and hearing rights described above) are entitled to a hearing based on the right to a hearing regarding determinations of tenant rent and Total Tenant Payment. • Families denied or terminated for fraud in connection with the non-citizens rule are entitled to a review or hearing in the same way as terminations for any other type of fraud. • The PHA will terminate assistance if it is determined a family has knowingly permitted an ineligible person to live in the assisted unit without authorization. F. MITIGATING CIRCUMSTANCES FOR APPLICANTS/PARTICIPANTS WITH DISABILITIES [24 CFR 982.552(c)] When applicants are denied placement on the waiting list, or the PHA is terminating assistance, the family will be informed that the presence of a disability may be considered as a mitigating circumstance during the informal review process. Disability status does not affect the Non- Citizenship statute. 18-9 2010 Draft Administrative Plan Chapter 19 – Special Housing Types Chapter 19 SPECIAL HOUSING TYPES [24 CFR 982.601] INTRODUCTION The PHA will permit the use of the following special housing types in its program: • Single Room Occupancy Housing • Group Homes • Congregate Housing • Shared Housing • Cooperative Housing • Manufactured Homes • Homeownership • Mod Rehabilitation Program A. SINGLE ROOM OCCUPANCY [24 CFR 982.602] HUD has determined that there is a demand for Single Room Occupancy (SRO) in this area. Therefore, a single person may reside in an SRO housing unit. The PHA will use a separate lease and housing assistance payment contract for each assisted person residing in an SRO. [24 CFR 982.603] SRO Rent and Housing Assistance Payment [24 CFR 982.604] The PHA SRO payment standard is seventy-five percent (75%) of the zero bedroom payment standard schedule. For a person residing in an exception area the payment standard is seventy- five percent (75%) of the HUD-approved zero bedroom exception payment standard amount. While an assisted person resides in SRO housing, the SRO payment standard must be used to calculate the housing assistance payment. Utility Allowance The utility allowance for an assisted person residing in SRO housing is 75 percent (75%) of the zero bedroom utility allowance. 19-1 2010 Draft Administrative Plan Chapter 19 – Special Housing Types Housing Quality Standards The PHA will ensure that all SRO units approved for the program are in compliance with all of the Housing Quality Standards for SROs as regulated in 24 CFR 982.605. B. CONGREGATE HOUSING [24 CFR 982.606] An elderly person or a person with disabilities may reside in a congregate housing unit. The PHA may approve a family member or a live-in aide to reside with the elderly person or a person with disabilities. The PHA will approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. Congregate Housing Lease and HAP Contract [24 CFR 982.607] For congregate housing there will be a separate lease and HAP contract for each assisted family. Unless there is a live-in aide, the payment standard for a family that resides in a congregate housing unit is the zero-bedroom payment standard on the PHA payment standard schedule. However, if there are two or more rooms in the unit (not including kitchen or sanitary facilities), the payment standard for a family that resides in a congregate housing unit is the one bedroom payment standard amount. If there is a live-in aide, the live-in aide will be counted in determining the family unit size. Housing Quality Standards The PHA will ensure that all congregate housing units approved for the program are in compliance with all of the Housing Quality Standards for congregate housing as regulated in 24 CFR 982.609. C. GROUP HOMES [24 CFR 982.610, 982.612] A group home must be licensed, certified, or otherwise approved in writing by the State, or the State's licensing department. An elderly person or a person with disabilities may reside in a State-approved group home. If approved by the PHA, a live-in aide may reside in the unit with an elderly person or a person with disabilities. The PHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. Except for a live-in aide, 19-2 2010 Draft Administrative Plan Chapter 19 – Special Housing Types all residents of a group home must be elderly persons or persons with disabilities. The live-in aide must have the approval of the PHA prior to residing in the unit. The PHA will not approve assistance for a person to live in a group home if file documentation indicates that the person is in need of continual medical or nursing care. No more than twelve persons may reside in a group home. This limit covers all persons who reside in the unit, including assisted and unassisted residents and any live-in aide. Group Home Lease and HAP Contract [24 CFR 982.611] There will be a separate HAP contract and lease for each assisted person living in a group home. The number of persons in the assisted household equals one assisted person plus any PHA- approved live-in aide. Group Home Rent and HAP Contract [24 CFR 982.613] The rent to the owner for an assisted person may not exceed the pro-rata portion of the reasonable rent for the group home. The payment standard used to calculate the HAP is the lower of the payment standard for the family unit size or the pro-rata share of the payment standard for the group home size. The prorated share is calculated by dividing the number of persons in the assisted household by the number of persons (assisted and unassisted) living in the group home. The reasonable rent for a group home is determined in accordance with 982.503. In determining reasonable rent the PHA will consider whether sanitary facilities, and facilities for food preparation and service, are common facilities or private. Maximum Subsidy Unless there is a live-in aide, the family unit size is one bedroom. If there is a live-in aide, the live-in aide will be counted in determining the family unit size. The payment standard for a person who resides in a group home is the lower of the payment standard for the family unit size; or the pro-rata portion of the payment standard amount on the PHA payment standard schedule for the group home size. Utility Allowance The utility allowance for each assisted person residing in a group home is the pro-rata portion of the utility allowance for the group home unit size. Housing Quality Standards The PHA will ensure that all group home units approved for the program are in compliance with all of the Housing Quality Standards for group homes as regulated in 24 CFR 982.614. 19-3 2010 Draft Administrative Plan Chapter 19 – Special Housing Types D. SHARED HOUSING [24 CFR 982.615] Occupancy The PHA may allow an assisted family to reside in shared housing. In shared housing, an assisted family may share a unit with another resident or residents of a unit. The unit may be a house or an apartment. The PHA may also approve a live-in aide to reside with a family in order to care for a person with a disability. The PHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. The live-in aide must have the approval of the PHA prior to residing in the unit. Other persons who are assisted or not assisted under the tenant-based program may reside in a shared housing unit. The owner of a shared housing unit may reside in the unit. A resident owner may enter into a HAP contract with the PHA. However, housing assistance may not be paid on behalf of an owner. The PHA will not approve assistance for a person or family that is related by blood, marriage or adoption to a resident owner, even as a reasonable accommodation. There will be a separate housing assistance payment contract and lease for each assisted family residing in a shared housing unit. Rent and HAP Contract For shared housing, the term "pro-rata portion" means the ratio derived by dividing the number of bedrooms in the private space available for occupancy by a family by the total number of bedrooms in the unit. For example, for a family entitled to occupy three bedrooms in a five bedroom unit, the ratio would be 3/5. The rent to owner for the family may not exceed the pro-rata portion of the reasonable rent for the shared housing dwelling unit. The reasonable rent must be in accordance with the guidelines set in the "Owner Rents, Rent Reasonableness, and Payment Standards", Chapter 11 of this Administrative Plan. Maximum Subsidy For a family that resides in a shared housing unit the payment standard is the lower of the payment standard amount on the PHA payment standard schedule for the family unit size or the pro-rata portion of the payment standard amount on the PHA payment standard for the shared housing unit size. If the PHA approves a live-in aide, the live-in aide will be counted in determining the family unit size. 19-4 2010 Draft Administrative Plan Chapter 19 – Special Housing Types Utility Allowance The utility allowance for an assisted family living in shared housing is the pro-rata portion of the utility allowance for the shared housing unit. Housing Quality Standards The PHA will ensure that all shared housing units approved for the program are in compliance with all of the Housing Quality Standards for shared housing as regulated in 24 CFR 982.618. E. COOPERATIVE HOUSING [24 CFR 982.619] The PHA will approve a family living in cooperative housing if it is determined that assistance under the program will help maintain affordability of the cooperative unit for low-income families The PHA will not approve assistance for a family in cooperative housing until the PHA has also determined that the cooperative has adopted requirements to maintain continued affordability for low-income families after transfer of a cooperative member's interest in a cooperative unit (such as a sale of the resident's share in a cooperative corporation). The reasonable rent in cooperative housing is determined in accordance with "Owner Rents, Rent Reasonableness, and Payment Standards", Chapter 11 of this Administrative Plan. For cooperative housing, the rent to the owner is the monthly carrying charge under the occupancy agreement/lease between the member and the cooperative. The carrying charge consists of the amount assessed to the member by the cooperative for occupancy of the housing. It includes the member's share of the cooperatives debt service, operating expenses, and necessary payments to cooperative reserve funds. However, the carrying charge does not include down payments or other payments to purchase the cooperative unit, or to amortize a loan to the family for this purpose. Gross rent is the carrying charge plus any utility. For a cooperative, rent adjustments are applied to the carrying charge as determined in "Owner Rents, Rent Reasonableness, and Payment Standards", Chapter 11 of this Administrative Plan. The lease and other appropriate documents will stipulate that the monthly carrying charge is subject to Housing Choice Voucher Program limitations on rent to the owner. The housing assistance payment will be determined in accordance with the guidelines in "Owner Rents, Rent Reasonableness, and Payment Standards", Chapter 11 of this Administrative Plan. The PHA may approve a live-in aide to reside with the family to care for a person with disabilities. The PHA will approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. If the PHA approves a live-in aide, the live-in aide will be counted when determining the family unit size. The live-in aide must have the approval of the PHA prior to residing in the unit. 19-5 2010 Draft Administrative Plan Chapter 19 – Special Housing Types Housing Quality Standards The PHA will ensure that all cooperative housing units approved for the program are in compliance with all of the Housing Quality Standards outlined in "Housing Quality Standards and Inspections", Chapter 10 of this Administrative Plan, and regulated by 24 CFR 982.401. F. MANUFACTURED HOMES [24 CFR 982.620] The PHA will permit a family to lease a manufactured home and space with assistance under the program. The PHA will provide assistance for a family that owns the manufactured home and leases only the space. The PHA may approve a live-in aide to reside with a family to care for a person with disabilities. The PHA will approve a live-in aide if needed as a reasonable accommodation so that the program is accessible to and usable by persons with disabilities. If the PHA approves a live-in aide, the live-in aide must be counted when determining the family unit size. Housing Quality Standards [24 CFR 982.621] A manufactured home must meet all the HQS requirements outlined in the "Housing Quality Standards and Inspections", Chapter 10 of this Administrative Plan, and regulated by 24 CFR 982.401. In addition the manufactured home also must meet the following requirements: A manufactured home must be placed on the site in a stable manner, and must be free from hazards such as sliding or wind damage. A manufactured home must be securely anchored by a tie-down device that distributes and transfers the loads imposed by the unit to appropriate ground anchors to resist wind overturning and sliding. Manufactured Home Space Rental [24 CFR 982.622] Rent to an owner for a manufactured home space will also include payment for maintenance services that the owner must provide to the tenant under the lease for the space. Rent to owner does not include the cost of utilities and trash collection for the manufactured home. However, the owner may charge the family a separate fee for the cost of utilities or trash collection provided by the owner. Reasonable Rent During the assisted tenancy, the rent to owner for the manufactured home space may not exceed a reasonable rent as determined by the PHA. 19-6 2010 Draft Administrative Plan Chapter 19 – Special Housing Types The PHA will not approve a lease for a manufactured home space until the PHA has determined that the initial rent to owner for the space is a reasonable rent. At least annually during the assisted tenancy, the PHA will re-determine that the rent is reasonable. The PHA will determine whether the rent to the owner for a manufactured home space is a reasonable rent in comparison to rents for other comparable manufactured home spaces. The PHA will consider the size and location of the space and any services and maintenance provided by the owner in accordance with the lease. By accepting each monthly housing assistance payment from the PHA, the owner of the manufactured home space certifies that the rent to owner for the space is not more than rent charged by the owner for unassisted rental of comparable spaces in the same manufactured home park or elsewhere. If requested by the PHA, the owner must provide the PHA information on rents for other manufactured home space. Housing Assistance Payments for Manufactured Home Space [24 CFR 982.623] The Fair Market Rent (FMR) for a manufactured home space will be determined by HUD. HAP for the Voucher Tenancy There is a separate FMR for a family renting a manufactured home space. The payment standard is used to calculate the monthly housing assistance payment for a family. The FMR for the rental of a manufactured home space is generally forty percent (40%) of the published FMR for a two- bedroom unit. Subsidy Calculation for the Voucher Program During the term of a voucher tenancy, the amount of the monthly housing assistance payment for a family will equal the lesser of: • The payment standard minus the total tenant payment; or • The rent paid for rental of the real property on which the manufactured home owned by the family is located (the space rent) minus the total tenant payment. The space rent is the sum of the following as determined by the PHA: • Rent to the owner for the manufactured home space; • Owner maintenance and management charges for the space; • The utility allowance for tenant-paid utilities. 19-7 2010 Draft Administrative Plan Chapter 19 – Special Housing Types Utility Allowance Schedule for Manufactured Home Space Rental [24 CFR 982.624] For the first twelve months of the initial lease term only, the allowances will include a reasonable amount for utility hook-up charges payable by the family, if the family actually incurs the expenses because of a move. Allowances for utility hook-up charges do not apply to a family that leases a manufactured home space in place. Utility allowances for manufactured home space will not be applied to cover the costs of digging a well or installation of a septic system. G. HOMEOWNERSHIP [24 CFR 982.625] to [24 CFR982.643] Overview The Section 8 Housing Choice Voucher program permits eligible participants in the Housing Choice Voucher program, including participants with portable vouchers, the option of purchasing a home with their voucher assistance rather than renting. Eligible families will be current Housing Choice Voucher participants. Public Housing residents are also eligible as long as applicable transfer requirements between the Public Housing program and Housing Choice Voucher program are met and vouchers are available. The Housing Choice Voucher Homeownership Program can only be offered to those eligible for the voucher program. In addition, families can have no outstanding debt to the PHA or other Public Housing Authority, and must have successfully completed a certified homebuyer training program provided by a recognized HUD homeowner-counseling agency. Types of Assistance: The PHA may provide only one of two forms of homeownership assistance, either: 1. Monthly homeownership assistance payments; or 2. A single down payment assistance grant SHRA provides monthly homeownership assistance payments A family may receive only one of two forms of homeownership assistance from the PHA. A family that includes a person who was an adult member of the family that previously received either of the two forms of homeownership assistance may not receive the other form of assistance from any PHA. 19-8 2010 Draft Administrative Plan Chapter 19 – Special Housing Types Limitation The homeownership program is limited to 5% of the total Housing Choice Voucher program administered by the PHA in any fiscal year, provided that elderly or disabled families shall not be subject to the five percent annual limitation. In addition, no more than 20% of the total number of voucher units funded shall be allocated to the homeownership program at any one time. Elderly or disabled families shall not be included in the calculation of the 20% maximum. Eligible Types of Homes The family approved for homeownership assistance may purchase any of the following types of homes anywhere within Sacramento County; 1. A new or existing single-family or condominium home, including a home in a planned use development. 2. Cooperative 3. Loft or live/work unit 4. Manufactured home to be situated on a privately owned lot or on a leased pad in a mobile home park. The home must already exist or be under construction at the time the family commits to purchasing the unit. Portability [24 CFR 982.636] The PHA will allow portability of homeownership assistance to another jurisdiction, provided the receiving jurisdiction is administering a voucher homeownership program and is accepting new families. Public Housing residents may also be eligible as long as applicable transfer requirements between the Public Housing program and the Housing Choice Voucher program are met and vouchers are available. A family’s participation in the Housing Choice Voucher program will be subject to the Housing Choice Voucher Homeownership program and policies of the receiving jurisdiction. The PHA will verify the form of homeownership assistance a family was receiving from the initial PHA. If the family includes an adult household member who previously benefited from a homeownership down-payment assistance grant, the family will not be eligible to receive homeownership assistance from SHRA. Family Eligibility Requirements [24 CFR 982.627] Participation in the Housing Choice Voucher Homeownership Program is voluntary. Each homeownership participant must meet the general requirement for admission to the Housing Choice Voucher Program as set forth in the Housing Choice Voucher Program Administrative Plan. The Housing Choice Voucher Program family must also be eligible to participate in the PHA Homeownership Program, as follows: 1. Be a first-time Home Buyer; 19-9 2010 Draft Administrative Plan Chapter 19 – Special Housing Types 2. Meet minimum income and employment duration requirements; 3. Have fully repaid any outstanding debt owned to the PHA; 4. Not defaulted on a mortgage securing debt to purchase a home under the homeownership option; and 5. Not have any member who has a present ownership interest in a residence at the commencement of homeownership assistance. First-Time Homeowner Each Housing Choice Voucher Family must be a first-time homeowner, meaning that no member of the household has had an ownership interest in any residence during the three years preceding commencement of homeownership. A single parent or displaced homemaker who, while married, owned a home with a spouse (or resided in a home owned by a spouse) is considered a “first-time homeowner” for the purpose of the Housing Choice Voucher Homeownership Program. A member of a cooperative who has an existing right to purchase through the lease-purchase agreement also qualifies as a first-time homeowner. A current participant of the homeownership program who exercises the portability option and purchases another with homeownership assistance is not required to meet the definition of a first- time homeowner. Minimum Income Requirement At the time the family begins receiving homeownership assistance, the head of household, spouse, and/or other adult household members who will own the home, must have gross annual income of at least equal to the Federal minimum hourly wage multiplied by 2,000 hours. For the purposes of the Housing Choice Voucher Homeownership Program only, the PHA will disregard any “welfare assistance” income in determining whether the family meets the minimum income requirement. Welfare assistance includes Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI),food stamps, General Assistance, or other welfare assistance specified by HUD. The disregard of welfare assistance income under this section affects the determination of minimum monthly income in determining initial qualification for the homeownership program. In the case of an elderly or disabled family the PHA shall include welfare assistance for the adult family member who will own the home in determining if the family meets the minimum income requirement. The determination of income-eligibility for admission to the Housing Choice Voucher program, calculation of the family’s total tenant payment, or calculation of the amount of homeownership assistance payments is not affected by this income disregard. 19-10 2010 Draft Administrative Plan Chapter 19 – Special Housing Types Employment History Each family must demonstrate that one or more adult members of the family who will own the home at commencement of homeownership assistance is employed full-time an average of 30 hours per week and has been continuously employed for one year prior to execution of the sales agreement. One thirty-day break in service during the twelve-month period shall be allowed. The employment history requirement does not apply to an elderly or disabled family. Repayment of Any PHA Debts Participants in the Housing Choice Voucher Program shall be ineligible for participation in the Housing Choice Voucher Homeownership Program in the event any debt or portion of debt remains owed to the PHA or any other Public Housing Authority. Prior Mortgage Defaults If the head of household, spouse, or other adult household member who will execute the contract of sale, mortgage, or other loan documents has previously defaulted on a mortgage obtained through the Housing Choice Voucher Homeownership Program, the family will be ineligible to participate in the homeownership program. Default shall be declared when an adult household member does not fulfill his/her mortgage obligations(s) in a timely manner and vacates the premises without making suitable arrangements with the lender(s) and the PHA. Family Participation Requirements Once a family is determined to be eligible to participate in the program, it must comply with the following additional requirements: 1. Complete a homeownership counseling program approved by the PHA prior to issuance of a homeownership voucher. 2. Locate the home it proposes to purchase within a specified time frame; 3. Submit a sales agreement containing specific components to the PHA for approval; 4. Allow the PHA to inspect the proposed homeownership dwelling to assure that the dwelling meets Housing Quality Standards; 5. Obtain an independent inspection whereby the inspector is licensed and certified to evaluate major building systems and components; 6. Obtain PHA approval of the proposed mortgage; 7. Enter into a written agreement with the PHA to comply with all of its obligations under the Housing Choice Voucher Program, including the Homeownership Option; 8. Use a real estate professional. 19-11 2010 Draft Administrative Plan Chapter 19 – Special Housing Types Homeownership Counseling Program A family’s participation in the home ownership program is conditioned on the family attending and successfully completing a homeownership and housing counseling program approved by the PHA prior to commencement of homeownership assistance. The homeownership and counseling program will cover home maintenance, budgeting and money management, credit counseling, negotiating purchase price, securing mortgage financing while avoiding predatory lenders, finding a home, fair housing issues, and the advantages of purchasing and locating homes in areas that do not have a high concentration of low-income families. The PHA may require families to participate in a PHA-approved homeownership counseling program on an ongoing basis. Locating and Purchasing a Home A Homeownership Program Voucher will be issued when the family has met all eligibility requirements, including completing the approved homeownership counseling program and pre- approval of a mortgage loan from a lender. From the time the homeownership voucher is issued, the family will have six months to locate a home to purchase. A home shall be considered if the family submits a proposed sales agreement with the requisite components to the PHA. If a suitable home to purchase is not located within six months, the voucher shall expire. If the family had entered into a contract to purchase but the renovation or construction is not complete with the six month period, the voucher will be extended by the length of time necessary to compensate for any such construction delay that is beyond the control of the participant. The family may convert their Homeownership voucher to a rental voucher at any time during the original six-month period provided the family had a rental voucher previously. If the family was a Public Housing resident the family will not receive a rental voucher but may choose to remain a resident of Public Housing. Homeownership Voucher holders and Public Housing residents whose assistance expires must wait a year before reapplying for the Homeownership program. Lease-Purchase Families may enter into lease-purchase agreements while receiving Housing Choice Voucher assistance. All requirements of the Housing Choice Voucher Program apply to lease-purchase agreements, except that families are permitted to pay an extra amount out-of-pocket to the owner for purchase related expenses – a homeownership premium. Any homeownership premium, defined as an increment of value attributable to the value of the lease-purchase right or agreement, is excluded from PHA rent reasonableness and subsidy calculation, and must be absorbed by the family. When a lease-purchase participant family is ready to exercise their option, they must apply for the homeownership option. If determined eligible for homeownership assistance, the family may be admitted to the homeownership program and must meet all the requirement of these policies. Such families may be allowed to "fast track" ”their counseling requirement in light of their more abbreviated home search. 19-12 2010 Draft Administrative Plan Chapter 19 – Special Housing Types Sales Agreement Prior to execution of the offer to purchase or sales agreement, the family must provide the financing terms to the PHA for approval. The sales agreement must provide for inspection by the PHA and the required independent inspection, and that the purchaser is not obligated to purchase unless such inspections are satisfactory to the PHA. The contract must provide for at least a one year home warranty. The contract must also provide that the purchaser is not obligated to pay for any necessary repairs without approval of the PHA and that the purchaser is not obligated to purchase if the mortgage finance terms are not approved by the PHA. It must also contain a seller certification that the seller is not disbarred, suspended, or subject to a limited denial of participation under 24 CFR part 24. Required Inspections To assure that the home complies with the housing quality standards of the Housing Choice Voucher Program; homeownership assistance payments may not commence until the PHA first inspects the home. The PHA inspection shall be the initial response to receipt of a sales agreement. An independent inspection of existing homes covering major building systems also must be completed by a professional selected by the family and approved by the PHA. The independent inspection report must be provided for the PHA. The PHA may disapprove the unit due to information contained in the report or for failure to meet housing quality standards. Financing Requirements The proposed financing terms must be submitted to and approved by the PHA prior to close of escrow. Balloon payments and loans with predatory practices will not be approved. Requests to obtain financing for a Home Equity loan will not be approved by the PHA. The PHA will only approve a request to refinance for the following reasons: 1. To allow the homeowner to take advantage of a lower interest rate. 2. To allow the homeowner to make necessary major repairs. The amount of cash out to make the repair shall not exceed 2% of the initial loan amount. Compliance with Family Obligations A family must agree in writing to comply with all family obligations under the Housing Choice Voucher program and PHA homeownership policies. The obligations include the following: 1. Any information the family supplies must be true and correct. 19-13 2010 Draft Administrative Plan Chapter 19 – Special Housing Types 2. The family must disclose and verify social security numbers and employer identification numbers, sign and submit consent forms for obtaining information and supply any other information that the PHA or HUD determines to be necessary 3. Submit PHA required reports on the family’s progress in finding and purchasing a home. 4. Attend and satisfactorily complete any PHA-required homeownership and housing counseling. 5. Select and pay for a pre-purchase inspection by an independent professional inspector. 6. Enter into a contract of sale with the seller of the unit and promptly provide a copy of the contract of sale to the PHA. 7. Obtain and maintain flood insurance for homes in special flood hazard areas. 8. Comply with the terms of any mortgage securing debt incurred to purchase the home. 9. Promptly notify the PHA in writing when: • the family moves away from the home for an extended period of time in accordance with PHA policies or; • before the family moves out. 10. Allow only PHA approved family members, live-in aide or foster child to live in the home. 11. Promptly notify the PHA in writing of the birth, adoption, or court awarded custody of a child, and request PHA written approval to add any other family member as an occupant of the home. Promptly notify the PHA in writing if any family member no longer lives in the home. 12. Supply any information as required by the PHA or HUD concerning any • mortgage or other debt and information on any satisfaction or payment of the mortgage debt; • any sale or other transfer of any interest in the home; or • the family’s homeownership expenses. 13. Promptly notify the PHA in writing if the family defaults on a mortgage securing any debt incurred to purchase the home. 14. Will not commit fraud, bribery or any other corrupt or criminal act in connection with any Federal housing program not engage in drug-related criminal activity or violent criminal activity. 19-14 2010 Draft Administrative Plan Chapter 19 – Special Housing Types 15. Will not lease, sublet, transfer or convey the home except to grant a mortgage on the home for debt incurred to finance purchase of the home. 16. Will not receive homeownership assistance while receiving another housing subsidy for the same home or a different unit under any Federal, State or local housing assistance program. 17. Comply with any additional PHA requirements for family search and purchase of a home and continuation of homeownership assistance for the family. Amount of Assistance The amount of the monthly assistance payment will be based on three factors: 1. The voucher payment standard for which the family is eligible; 2. The monthly homeownership expense; and 3. The family’s household income The PHA will pay the lower of either the payment standard minus the family contribution (TFC) or the family’s monthly homeownership expenses minus the TFC. The Housing Choice Voucher family will pay the difference. Determining the Payment Standard The voucher payment standard is the fixed amount the PHA annually establishes as the “fair market” rent for a unit of a particular size located within the PHA jurisdiction. In the homeownership program, the initial payment standard will be the lower of either: • The payment standard for which the family is eligible based on family size; or • The payment standard which is applicable to the size of the home the family decides to purchase. The payment standard for subsequent years will be based on the higher of: • The payment standard in effect at the commencement of the homeownership assistance; or • The payment standard in effect at the most recent regular reexamination of the family’s income and size. The initial payment standard, for purposes of comparison, shall not be adjusted even if there is a subsequent decrease in family size. The PHA will request HUD approval of a higher payment standard where warranted as a reasonable accommodation for a family that includes a person with disabilities. Determining Monthly Home Ownership Expense Monthly homeownership expense includes all of the following: 19-15 2010 Draft Administrative Plan Chapter 19 – Special Housing Types • Principal and interest on the initial mortgage and any Mortgage Insurance Premium (MIP) incurred to finance the purchase and any refinancing of such debt; • Real estate taxes and public assessments; • Homeowner’s insurance; • Maintenance expenses per PHA allowance; • Costs of major repairs and replacements per PHA allowance (replacement reserves); • Utility allowance per PHA’s schedule of utility allowances; • Principal and interest on mortgage debt incurred to finance major repairs. • Replacements or improvements for the home including changes needed to make the home accessible; and • Homeowner association dues, fees or regular charges assessed, if any. Homeownership expenses for a cooperative member may only include PHA approved amounts for the cooperative charge under the cooperative occupancy agreement including payment for real estate taxes and public assessments on the home, principal and interest on initial debt incurred to finance purchases of cooperative membership shares and refinancing of such debt, home insurance, the allowances for maintenance expenses, major repairs and replacements and utilities, and principal and interest on debt incurred to finance major repairs, replacements, or improvements, including changes needed to make the home accessible. Determining the Family Contribution The Total Family Contribution (TFC) is that portion of the homeownership expense that the family must pay. TFC is generally 30% of the family’s adjusted income, plus any gap between the payment standard and the actual housing cost. All family income (including public assistance) will be counted to determine the family’s adjusted monthly income for purposes of determining the amount of assistance. Payment to the Family or Lender The PHA will make the housing assistance payment directly to the lender. At the discretion of the Assistant Director other arrangements may be made on an emergency basis. Buying Another Home with Housing Choice Voucher Homeownership Assistance The family can move to another unit under the Housing Choice Voucher Homeownership program after five years provided there is no mortgage default, no late payments and no violations of the homeownership obligations during the previous year. The Housing Authority may deny permission to move to a new unit with continued assistance if it is determined that the Housing Authority does not have sufficient funding to provide additional assistance. The Housing Authority will not commence housing assistance payments for occupancy of the new unit so long as any family member owns any title or other interest in the prior unit. 19-16 2010 Draft Administrative Plan Chapter 19 – Special Housing Types All initial requirements for the Housing Choice Voucher Homeownership program must be met with the exception of the requirement that the family must be a first-time homeowner. The housing authority may require that the family complete additional counseling before and after moving to a new unit under the homeownership program. Time limits for participation in the homeownership program applies to the cumulative time the family may receive homeownership assistance. Grounds for Termination of Homeownership Assistance A family’s homeownership assistance may be terminated if the family fails to comply with its obligations under the Housing Choice Voucher program, PHA homeownership policies, or if the family defaults on the mortgage. Additional grounds for termination are met when the family fails to: • Attend and complete ongoing homeownership and housing counseling classes. • Comply with the terms of any mortgage incurred to purchase and/or refinance the home. • Provide the PHA with written notice of any sale or transfer of any interest in the home; any plan to move out of the home prior to the move; the family’s household income and homeownership expenses on an annual basis; any notice of mortgage default received by the family; any other notices which may be required pursuant to the PHA homeownership policies. Except as otherwise provided in this section, the family may not convey or transfer the home to any entity or person other than a member of the assisted family while receiving homeownership assistance. Homeownership assistance will only be provided while the family resides in the home. If the family moves out of the home, the PHA will not continue homeownership assistance commencing with the month after the family moves out. Neither the family nor the lender is obligated to reimburse the PHA for homeownership assistance paid for the month the family moves out. A participant in the Housing Choice Voucher Homeownership Program shall be entitled to the same termination notice and informal hearing procedures as set forth in the Administrative Plan of the Housing Choice Voucher Program. Recapture of Assistance The PHA will not impose or enforce any requirement for recapture of voucher homeownership assistance on the sale or refinancing of a home purchased with assistance under the homeownership program. Default and Continued Participation in the Housing Choice Voucher Program If the family defaults on any mortgage, the PHA may permit the family to move with continued Housing Choice Voucher rental assistance, if the family demonstrates that it has conveyed title to 19-17 2010 Draft Administrative Plan Chapter 19 – Special Housing Types the home to HUD or its designee, as required by the lender, the PHA, or HUD; and moved from the home within the period established or approved by the lender, the PHA, or HUD. Administrative Fee For each month that homeownership assistance is paid by the PHA on behalf of the family, the PHA shall be paid the ongoing administrative fee described in 24 CFR 982.152(b). Program Changes The Assistant Director shall have the discretion to waive or modify any provision of the Housing Choice Voucher Homeownership Program or policies not governed by statute or regulation for good cause or to comply with changes in HUD regulations or directives. Mortgage Defaults: the PHA may permit the family to move with continued homeownership assistance if the default is due to catastrophic medical reasons or to the impact of a federally declared disaster. H. MODERATE REHABILITATION PROGRAM [24 CFR 882 Subpart D and E] The Moderate Rehabilitation (Mod Rehab) Program was established through the Housing and Community Development Amendment of 1978 to bridge the gap between Section 8 Substantial Rehabilitation and Section 8 Rental Assistance and was intended to upgrade marginally deteriorated existing buildings for use as assisted rental housing. The program was repealed in 1991 and no new projects are authorized for development. Family Outreach The PHA uses separate wait lists for tenant based and project based housing. Tenant Selection All vacant units under the HAP contract must be rented to eligible families referred by the PHA. The owner must be willing to accept applicants from the wait list to fill vacant units when they meet the owner’s selection criteria, in order for the unit to continue to be eligible under the HAP contract. Owners may reject referrals from the PHA for reasons related to suitability. The owner must provide the PHA the reason for rejection of the referrals made to Mod Rehab units in writing. The PHA is responsible for obtaining income, asset and allowance information, conducting verifications and determining tenant eligibility and rent. Applicants taken off the wait list will be requested to complete a full application to determine final eligibility. Families who’s Total Tenant Payment, computed in accordance with Federal regulations, exceed the current Gross Rent for the Mod Rehab for the Mod-Rehab unit will not be admitted. 19-18 2010 Draft Administrative Plan Chapter 19 – Special Housing Types If the PHA is unable to refer a sufficient number of interested applicants from the wait list within 30 days of the owner’s notification of the vacancy, the owner may advertise or solicit applicants and refer the families to the PHA for application, verifications, and eligibility determination. Determining Unit Size The size of the families referred to the Mod-Rehab unit will be based on the number of bedrooms available in the unit pursuant to the Subsidy Standard schedule in this plan. When a change in family composition requires a change in bedroom size, the PHA will determine whether the unit is overcrowded or under occupied, in which case the owner must offer the family a suitable alternative unit should one be available and the family will be required to move. If the owner does not have a suitable available unit, the PHA must assist the Family in locating other standard housing in the locality within the Family's ability to pay and require the Family to move to such a unit as soon as possible. In no case will a Family be forced to move nor will housing assistance payments under the Contract be terminated unless the Family rejects without good reason the offer of a unit which the PHA judges to be acceptable. Statement of Family Responsibilities, and Briefing After the family has been determined eligible, the family will be issued a Statement of Family Responsibility for participation in the Mod-Rehab Program at a briefing. Families who fail to attend two scheduled briefings without prior notification and approval from the PHA may be denied admission based on failure to complete the certification process. The PHA will conduct the briefing in group or individual sessions and will provide a full explanation of the following: • Family obligations as stated in the Statement of Family Responsibility and the program regulations; • That fact that the subsidy is tied to the unit and the family must occupy a unit rehabilitated under the program; • The family’s options under the program should the family be required to move due to an increase or decrease in family size; • Information as to the Family Rent; and • The schedule of Allowances for Utilities. Lease Agreement The owner and tenant must execute a lease agreement and provide an executed copy to the PHA. 19-19 2010 Draft Administrative Plan Chapter 19 – Special Housing Types Security Deposit Requirements The maximum amount of security deposit that can be collected by the owner shall be the greater of one month’s Total Tenant Payment or $50.00 Housing Quality Standards and Inspections In addition to the inspections identified in this plan, the PHA will conduct a move-out or vacate inspection at the owner’s request only if the owner intends to file a claim for damages and vacancy loss (see Vacancy Loss in the Glossary). If the owner fails to comply with housing quality standards and other obligations under the contract, the PHA will abate the housing assistance payment for that unit until the owner is in compliance. If the owner fails to meet the compliance requirements within the timeframe specified under the abatement, the assistance for that unit will be terminated. The termination of any effected unit does not automatically terminate the entire contract. However the contract is amended to reduce the number of eligible units to exclude those units for which the owner failed to bring into compliance with the HQS contract. Upon amendment or termination of a contract, the family may elect to stay in the unit and pay market rent; however, their rental assistance will terminate since the units does not meet HQS and was removed as an assisted unit under the contract. If the family was not at fault and they are eligible for continued assistance, the family may continue to receive housing assistance through the conversion of the Mod-Rehab unit to a Housing Choice Voucher. Once the termination notice has been issued, the unit will not be reinstated even if the owner proceeds to make the repairs. The family will be issued a voucher, which must be used in a non-Mod-Rehab project. The unit continues to count as a Mod-Rehab unit and remains under the Mod-Rehab Annual Contributions Contract (ACC), which provides for such a conversion of unit(s); no amendment to the ACC is necessary to convert to a voucher. Contract Rent Adjustments Contact rent adjustments are based on the published Annual Adjustment Factor (AAF). The AAF is applied to the original base rent in affect at the time of the HAP contract execution. Rent changes will be applied annually at the anniversary date of the HAP contract. Family Moves The Mod-Rehab Program provides project based assistance, which is tied to the unit under contract. Therefore, if a family vacates the unit, no additional assistance will be available to the family unless the family transfers to another Mod-Rehab unit with the approval of the PHA and the property owner. 19-20 2010 Draft Administrative Plan Chapter 19 – Special Housing Types All termination of lease agreement for cause must be carried out through the judicial process under the State and local law. The owner cannot terminate or refuse to renew the lease except upon the following grounds: • Serious or repeated violation of the terms and conditions of the lease; • Violation of applicable Federal, State or local law; or • Other good cause. The owner must serve a written termination of tenancy to the family, which states the date the tenancy will terminate. Vacancy Loss Vacancies after initial occupancy: 1) If an Eligible Family vacates its unit (other than as a result of action by the owner which is in violations of the Lease or the Contract or any applicable law), the owner may receive the housing assistance payments due under the Contract for so much of the month in which the family vacates the unit as the unit remains vacant. Should the unit continue to remain, the owner may receive from the PHA a housing assistance payment in the amount of 80% of the Contract Rent for a vacancy period not exceeding an additional month. However, if the owner collects any of the family’s share of the rent for this period, the payment must be reduced to an amount which, when added to the family’s payment, does not exceed 80% of the Contract Rent. Any such excess must be reimbursed by the owner to the PHA. The owner will not be entitled to any payment under this paragraph (b)(1) of this section unless the owner: • immediately upon learning of the vacancy, has notified the PHA of the vacancy or prospective vacancy; and • has taken and continues to take all feasible actions specified in paragraphs 24 CFR 882.411(a) (2) and (3). 2) If the owner evicts an eligible family, the owner will not be entitled to any payment under paragraph (b)(1) of this section unless the PHA determines that the owner complied with all requirements of the Contract. Prohibition of double compensation for vacancies: The owner will not be entitled to housing assistance payments with respect to vacant units under this section if the owner is entitled to payments from other sources (for example, payments for losses of rental income incurred for holding units vacant for relocates pursuant to Title I of the HCD Act of 1974 or payments for unpaid rent under §882.414. Denial or Termination of Assistance In accordance with 24 CFR 882.413 the PHA may terminate assistance to Mod-Rehab participants for the following reasons: • Failure to comply with all provisions of the lease agreement; 19-21 2010 Draft Administrative Plan Chapter 19 – Special Housing Types • Failure to maintain tenant responsible utilities; and • Failure to fulfill all of its obligations under the Statement of Family Responsibility, which include the following: 1. Providing such family income information and records as may be required in the administration of the program; 2. Permitting inspection of its dwelling unit at reasonable times after reasonable written notice; 3. Giving at least 30 days notice in writing to the PHA of the family’s intention to vacate the unit; 4. Cooperating with the PHA in finding another unit when the family is no longer eligible for the contract unit it occupies because of a change in family size; 5. Not assigning the lease or subleasing the premises; 6. Not providing accommodations for boarders or lodgers; and 7. Engaging in drug-related criminal activity or violent criminal activity, including criminal activity by any family member. 19-22 2010 Draft Administrative Plan Glossary GLOSSARY A. ACRONYMS USED IN SUBSIDIZED HOUSING AAF Annual Adjustment Factor. . ACC Annual Contributions Contract BR Bedroom CDBG Community Development Block Grant CFR Code of Federal Regulations. CR Contract Rent FDIC Federal Deposit Insurance Corporation FHA Federal Housing Administration FICA Federal Insurance Contributions Act - Social Security taxes FMR Fair Market Rent FY Fiscal Year FYE Fiscal Year End GAO Government Accounting Office GR Gross Rent HAP Housing Assistance Payment HCDA Housing and Community Development Act HO Home Ownership HQS Housing Quality Standards HUD Department of Housing and Urban Development IRA Individual Retirement Account OIG Office of Inspector General PBA Project-Based Assistance PHA Public Housing Authority PS Payment Standard GL-1 2010 Draft Administrative Plan Glossary QC Quality Control RFTA Request for Tenancy Approval RFP Request for Proposals SHRA Sacramento Housing and Redevelopment Agency SRO Single Room Occupancy TR Tenant Rent TTP Total Tenant Payment UA Utility Allowance URP Utility Reimbursement Payment B. GLOSSARY OF TERMS IN SUBSIDIZED HOUSING ABATEMENT. Permanent withholding of the HAP for the duration that the assisted unit is not in compliance with Housing Quality Standards after the initial thirty day repair timeframe. ABSORPTION. In portability, the point at which a receiving PHA stops billing the initial PHA for assistance on behalf of a portability family. The receiving PHA uses funds available under the receiving PHA consolidated ACC. ACC RESERVE ACCOUNT. Account established by HUD from amounts by which the maximum payment to the PHA under the consolidated ACC (during a PHA fiscal year) exceeds the amount actually approved and paid. This account is used as the source of additional payments for the program. ADJUSTED INCOME. Annual income, less allowable HUD deductions. ADMINISTRATIVE FEE. Fee paid by HUD to the PHA for administration of the program. ADMINISTRATIVE FEE RESERVE. Account established by PHA from excess administrative fee income. The administrative fee reserve must be used for housing purposes. ADMINISTRATIVE PLAN. The HUD required written policy of the PHA governing its administration of the Section 8 Certificate and Voucher program. The Administrative Plan and any revisions must be approved by the PHA’s board and a copy submitted to HUD. ADMISSION. The effective date of the first HAP contract for a family (first day of initial lease term) in a tenant-based program. This is the point when the family becomes a participant in the program. ADULT. A Person aged 18 years or older. ANNUAL CONTRIBUTIONS CONTRACT (ACC). A written contract between HUD and a GL-2 2010 Draft Administrative Plan Glossary PHA. Under the contract HUD agrees to provide funding for operation of the program, and the PHA agrees to comply with HUD requirements for the program ANNUAL INCOME. The anticipated total Annual Income of an eligible family from all sources for the 12-month period following the date of determination of income computed in accordance with the regulations. ANNUAL ADJUSTED INCOME. The Annual Income (described above) less the HUD- approved allowances. APPLICANT (or applicant family). A family that has applied for admission to a program, but is not yet a participant in the program. "AS-PAID" STATES. States where the welfare agency adjusts the shelter and utility component of the welfare grant in accordance with actual housing costs. ASSETS. (See Net Family Assets.) ASSISTED TENANT. A tenant who pays less than the market rent as defined in the regulations. Includes tenants receiving rent supplement, Rental Assistance Payments, or Section 8 assistance and all other 236 and 221 (d)(3) BMIR tenants, except those paying the 236 market rent or 120% of the BMIR rent, respectively. BUDGET AUTHORITY. An amount authorized and appropriated by the Congress for payment to PHAs under the program. For each funding increment in a PHA program, budget authority is the maximum amount that may be paid by HUD to the PHA over the ACC term of the funding increment. CERTIFICATE PROGRAM. Rental certificate program. CHILDCARE EXPENSES. Amounts paid by the family for the care of minors under 13 years of age where such care is necessary to enable a family member to be employed or for a household member to further his/her education. Code of Federal Regulations. Commonly referred to as "the regulations". The CFR is the compilation of Federal rules, which are first published in the Federal Register and define and implement a statute. CO-HEAD. An individual in the household who is equally responsible for the lease with the Head of Household. (A family never has a Co-head and a Spouse and; a Co-head is never a Dependent). CONGREGATE HOUSING. Housing for elderly persons or persons with disabilities that meets the HQS for congregate housing COOPERATIVE. A dwelling unit owned and or shared by a group of individuals who have individual sleeping quarters and share common facilities such as kitchen, living room and some bathrooms. CONTIGUOUS MSA. In portability, an MSA that shares a common boundary with the MSA in GL-3 2010 Draft Administrative Plan Glossary which the jurisdiction of the initial PHA is located. CONTINUOUSLY ASSISTED. An applicant is continuously assisted under the 1937 Housing Act if the family is already receiving assistance under any 1937 Housing Act program when the family is admitted to the certificate or voucher program. CONTRACT. (See Housing Assistance Payments Contract.) CONTRACT AUTHORITY. The maximum annual payment by HUD to a PHA for a funding increment. CONTRACT RENT. In the Section 8 Certificate Program, Contract Rent is the total rent paid to the owner, including the tenant payment and the HAP payment from the PHA. COVERED FAMILY. A family which receives benefits from welfare or public assistance from a state or public agency which requires, as a condition of eligibility to receive assistance, the participation of a family member in an economic self-sufficiency program. DEPENDENT. A member of the family household (excluding foster children) other than the family head or spouse, who is under 18 years of age or is a Disabled Person or Handicapped Person, or is a full-time student 18 years of age or over. DISABILITY ASSISTANCE EXPENSE. Anticipated costs for care attendants and auxiliary apparatus for disabled family members, which enable a family member (including the disabled family member) to work. DISABLED PERSON. A person who is any of the following: (1) A person who has a disability as defined in section 223 of the Social Security Act. (42 U.S.C.423). (2) A person who has a physical, mental, or emotional impairment that: (i) Is expected to be of long-continued and indefinite duration (ii) Substantially impedes his or her ability to live independently (iii) Is of such a nature that ability to live independently could be improved by more suitable housing conditions (3) A person who has a developmental disability as defined in section 102(7) of the Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6001(7)). DISABLED FAMILY. A family where the head or spouse meets any of the above criteria for disabled person. DISPLACED PERSON/FAMILY. A person or family displaced by governmental action, or a person whose dwelling has been extensively damaged or destroyed as a result of a disaster declared or otherwise formally recognized under Federal disaster relief laws. DOMICILE. The legal residence of the household head or spouse as determined in accordance GL-4 2010 Draft Administrative Plan Glossary with State and local law. DRUG-RELATED CRIMINAL ACTIVITY. The illegal manufacture, sale, distribution, use, or the possession with intent to manufacture, sell distribute or use, of a controlled substance (as defined in Section 102 of the Controlled Substance Act (21 U.S.C. 802). DRUG TRAFFICKING. The illegal manufacture, sale, distribution, use, or possession with intent to manufacture, sell, distribute or use, of a controlled substance (as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802)). DUPLICATE PRE-APPLICATION. Multiple pre-applications in which the head of household name and social security number are the same. ECONOMIC SELF-SUFFICIENCY PROGRAM. Is any program designed to encourage, assist, train or facilitate economic independence of assisted families or to provide work for such families. Such programs may include job training, employment counseling, work placement, basic skills training, education, English proficiency, workforce, financial or household management, apprenticeship, or any other program necessary to ready a participant to work (such as substance abuse or mental health treatment). ELDERLY HOUSEHOLD. A family whose head or spouse or whose sole member is at least 62 years of age; may include two or more elderly persons living together or one or more such persons living with another person who is determined to be essential to his/her care and well being. ELDERLY PERSON. A person who is at least 62 years old. ELIGIBILITY INCOME. May 10, 1984, regulations deleted Eligibility Income, per se, because Annual Income is now for eligibility determination to compare to income limits. ELIGIBLE FAMILY (Family). A family is defined by the PHA in the administrative Plan, which is approved by HUD. EMANCIPATED MINOR. A person under the age of 18 who is no longer subject to the laws governing parental responsibility. Emancipated minors are seen as legal adults under most circumstances. EMERGENCY. As any documented and verifiable situation endangering the life or health and safety of the family. EXCEPTION RENT. In the certificate program an initial rent (contract rent plus any utility allowance) in excess of the published FMR. In the certificate program the exception rent is approved by HUD, or the PHA under prescribed conditions, and is used in determining the initial contract rent. In the voucher program the PHA may adopt a payment standard up to the exception rent limit approved by HUD for the PHA certificate program. EXCESS MEDICAL EXPENSES. Any medical expenses incurred by elderly or disabled families only in excess of 3% of Annual Income, which are not reimbursable from any other source. EXTREMELY LOW-INCOME FAMILY. A family whose annual income does not exceed 30 percent of the median income for the area, as determined by HUD, with adjustments for smaller and GL-5 2010 Draft Administrative Plan Glossary larger families. FAIR MARKET RENT . The rent, including the cost of utilities (except telephone), as established by HUD for units of varying sizes (by number of bedrooms), that must be paid in the housing market area to rent privately owned, existing, decent, safe and sanitary rental housing of modest (non-luxury) nature with suitable amenities FAMILY. "Family" includes but is not limited: (a) An Elderly Family or Single Person as defined in 24 CFR 5.403(b), (b) The remaining member of a tenant family, and (c) A Displaced Person. (d) "Family" can be further defined by the PHA. FAMILY OF VETERAN OR SERVICE PERSON. A family is a "family of veteran or service person" when: 1. The veteran or service person (a) is either the head of household or is related to the head of the household; or (b) is deceased and was related to the head of the household, and was a family member at the time of death. 2. The veteran or service person, unless deceased, is living with the family or is only temporarily absent unless s/he was (a) formerly the head of the household and is permanently absent because of hospitalization, separation, or desertion, or is divorced; provided, the family contains one or more persons for whose support s/he is legally responsible and the spouse has not remarried; or (b) not the head of the household but is permanently hospitalized; provided, that s/he was a family member at the time of hospitalization and there remain in the family at least two related persons. FAMILY SELF-SUFFICIENCY PROGRAM (FSS PROGRAM). The program established by a PHA to promote self-sufficiency of assisted families, including the provision of supportive services. FAMILY SHARE. The amount calculated by subtracting the housing assistance payment from the gross rent. FAMILY UNIT SIZE. The size of the Certificate or Voucher issued to the family based on the PHA’s subsidy standards. FEDERAL PREFERENCE. A preference under Federal law for admission of applicant families. FEDERAL PREFERENCE HOLDER. An applicant that qualifies for a Federal preference. FOSTER CHILDCARE PAYMENT. Payment to eligible households by State, local, or private agencies appointed by the State, to administer payments for the care of foster children. FULL-TIME STUDENT. A person who is carrying a subject load that is considered full time for day students under the standards and practices of the educational institution attended. An GL-6 2010 Draft Administrative Plan Glossary educational institution includes a vocational school with a diploma or certificate program, as well as an institution offering a college degree. FUNDING INCREMENT. Each commitment of budget authority by HUD to a PHA under the consolidated annual contributions contract for the PHA program. GOOD CAUSE. An unavoidable conflict in a meeting time with another agency, doctor or company which seriously affects the health, safety or welfare of the participant or his/her immediate family. The PHA must be notified in advance for late hearing requests due to illness,. GOOD STANDING. A family which does not owe an outstanding debt to any PHA; is not delinquent on a repayment agreement; is not subject to adverse action; has not been evicted from Public Housing or been terminated from the HCV program within the last five (5) years. GROSS RENT. The sum of the Contract Rent and the utility allowance. If there is no utility allowance, Contract Rent equals Gross Rent. GROUP HOME. A dwelling unit that is licensed by a State as a group home for the exclusive residential use of two to twelve persons who are elderly or persons with disabilities (including any live-in aide). HAP CONTRACT. (See Housing Assistance Payments contract.) HEAD OF HOUSEHOLD. The head of household is the person who assumes legal and financial responsibility for the household and is listed on the application as head. HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974. Act in which the U.S. Housing Act of 1937 (sometimes referred to as the Act) was recodified, and which added the Section 8 Programs. HOUSING ASSISTANCE PAYMENT. The monthly assistance payment by a PHA. The total assistance payment consists of: (1) A payment to the owner for rent to the owner under the family's lease. (2) An additional payment to the family if the total assistance payment exceeds the rent to the owner. The additional payment is called a "utility reimbursement" payment. HOUSING ASSISTANCE PAYMENTS CONTRACT. (HAP contract). A written contract between a PHA and an owner in the form prescribed by HUD headquarters, in which the PHA agrees to make housing assistance payments to the owner on behalf of an eligible family. HOUSING AUTHORITY. A state, country, municipality or other governmental entity or public body authorized to administer the program. The term "PHA" includes an Indian Housing Authority (IHA). ("PHA" and "IHA" mean the same thing.) HOUSING QUALITY STANDARDS (HQS). The HUD minimum quality standards for housing assisted under the tenant-based programs. HUD REQUIREMENTS. HUD requirements for the Section 8 programs. HUD requirements are issued by HUD headquarters as regulations. Federal Register notices or other binding program GL-7 2010 Draft Administrative Plan Glossary directives. IMPUTED ASSET. Asset disposed of for less than Fair Market Value during two years preceding examination or reexamination. IMPUTED INCOME. HUD passbook rate x total cash value of assets. Calculation used when assets exceed $5,000. IMPUTED WELFARE INCOME. The amount of annual income, not actually received by a family, as a result of a specified benefit reduction INITIAL PHA. In portability, the term refers to both: (1) A PHA that originally selected a family that later decides to move out of the jurisdiction of the selecting PHA; and (2) A PHA that absorbed a family that later decides to move out of the jurisdiction of the absorbing PHA. INITIAL PAYMENT STANDARD. The payment standard at the beginning of the HAP contract term. INITIAL RENT TO THE OWNER. The rent to the owner at the beginning of the HAP contract term. INCOME. Income from all sources of each member of the household as determined in accordance with criteria established by HUD. INCOME FOR ELIGIBILITY. Annual Income. INDIAN HOUSING AUTHORITY (IHA). A housing agency established either: (1) By exercise of the power of self-government of an Indian Tribe, independent of State law, or (2) By operation of State law providing specifically for housing authorities for Indians. INTEREST REDUCTION SUBSIDIES. The monthly payments or discounts made by HUD to reduce the debt service payments and, hence, rents required on Section 236 and 221 (d)(3) BMIR projects. Includes monthly interest reduction payments made to mortgagees of Section 236 projects and front-end loan discounts paid on BMIR projects. JURISDICTION. The area in which the PHA has authority under State and local law to administer the program. OWNER. This term means either the owner of the property or his/her representative or the managing agent or his/her representative, as shall be designated by the owner. LEASE. (1) A written agreement between an owner and a tenant for the leasing of a dwelling unit to the tenant. The lease establishes the conditions for occupancy of the dwelling unit by a family GL-8 2010 Draft Administrative Plan Glossary with housing assistance payments under a HAP contract between the owner and the PHA (2) In cooperative housing, a written agreement between a cooperative and a member of the cooperative. The agreement establishes the conditions for occupancy of the member’s family with housing assistance payments to the cooperative under a HAP contract between the cooperative and the PHA. LEASE ADDENDUM. In the lease between the tenant and the owner, the lease language required by HUD. LIVE-IN AIDE. A person who resides with an elderly person or disabled person and who: (1) Is determined to be essential to the care and well being of the person. (2) Is not obligated for the support of the person. (3) Would not be living in the unit except to provide necessary supportive services. LOCAL PREFERENCE. A preference used by the PHA to select among applicant families without regard to their Federal preference status. LOW-INCOME FAMILY. A family whose annual income does not exceed 80 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. For admission to the certificate program, HUD may establish income limits higher or lower than 80 percent of the median income for the area on the basis of its finding that such variations are necessary because of the prevailing levels of construction costs or unusually high or low family incomes. MANUFACTURED HOME. A manufactured structure that is built on a permanent chassis, is designed for use as a principal place of residence, and meets the HQS. A special housing type. See 24 CFR 982.620 and 982.621. MANUFACTURED HOME SPACE. In manufactured home space rental: A space leased by an owner to a family. A manufactured home owned and occupied by the family is located on the space. See 24 CFR 982.622 to 982.624 MARKET RENT. The prevailing comparable rent being charged in the rental area. Factors considered are unit type, size, age, location, amenities and provided services. MEDICAL EXPENSES. Those total medical expenses, including medical insurance premiums, that are anticipated during the period for which Annual Income is computed, and that are not covered by insurance. A deduction for Disabled and/or Elderly Households only. These allowances are given when calculating adjusted income for medical expenses in excess of 3% of Annual Income. MINOR. A member of the family household (excluding foster children) other than the family head or spouse who is under 18 years of age. MIXED FAMILY. A family with citizens and eligible immigration status and without citizens and eligible immigration status as defined in 24 CFR 5.504(b)(3) GL-9 2010 Draft Administrative Plan Glossary MONTHLY ADJUSTED INCOME. 1/12 of the Annual Adjusted Income.. NATIONAL. A person who owes permanent allegiance to the United States, for example, as a result of birth in a United States territory or possession. NET FAMILY ASSETS. Value of equity in savings, checking, IRA and Keogh accounts, real property, stocks, bonds, and other forms of capital investment. The value of necessary items of personal property such as furniture and automobiles is excluded from the definition. NON CITIZEN. A person who is neither a citizen nor a national of the United States. OCCUPANCY STANDARDS. Now referred to as Subsidy Standards. Standards established by a PHA to determine the appropriate number of bedrooms for families of different sizes and compositions. ORIGINAL HOUSEHOLD MEMBER. A household member, who was a part of the original application and who has not resided outside of the home for more than 180 days. OTHER CRIMINAL ACTIVITY. Other Criminal Activity is criminal activity that threatens the health, safety or right to peaceful enjoyment of other persons which may include but is not limited to: theft, vandalism, gang affiliation, unlawful entry, etc. OWNER. Any persons or entity having the legal right to lease or sublease a unit to a participant. PARTICIPANT. A family that has been admitted to the PHA's certificate program or voucher program. The family becomes a participant on the effective date of the first HAP contract executed by the PHA for the family (First day of initial lease term). PAYMENT STANDARD. In a voucher or over-FMR tenancy, the maximum subsidy payment for a family (before deducting the family contribution). For a voucher tenancy, the PHA sets a payment standard in the range from 80 to 100 percent of the current FMR/exception rent limit. For an over- FMR tenancy, the payment standard equals the current FMR/exception rent limit. PERSONS WITH DISABILITIES. Individuals with any condition or characteristic that renders a person an individual with a handicap as defined in 24 CFR 8.2. PORTABILITY. Renting a dwelling unit with Section 8 tenant-based assistance outside the jurisdiction of the initial PHA PREMISES. The building or complex in which the dwelling unit is located, including common areas and grounds. PREVIOUSLY UNEMPLOYED. This includes a person with disabilities who has earned in the previous 12 months no more than the equivalent earnings for working 10 hours per week for 50 weeks at the minimum wage. Minimum wage is the prevailing minimum wage in the State or locality. PRIVATE SPACE. In shared housing: The portion of a contract unit that is for the exclusive use of an assisted family. GL-10 2010 Draft Administrative Plan Glossary PUBLIC ASSISTANCE. Welfare or other payments to families or individuals, based on need, which are made under programs funded, separately or jointly, by Federal, State, or local governments. PUBLIC HOUSING AUTHORITY. A state, county, municipality, or other governmental entity or public body authorized to administer the programs. REASONABLE RENT. A rent to the owner that is not more than rent charged: (1) For comparable units in the private unassisted market; and (2) For comparable unassisted units in the premises. RECEIVING PHA. In portability: A PHA that receives a family selected for participation in the tenant-based program of another PHA. The receiving PHA issues a certificate or voucher and provides program assistance to the family. RECERTIFICATION. Sometimes called reexamination. The process of securing documentation of total family income used to determine the rent the tenant will pay for the next 12 months if there are no additional changes to be reported. There are annual and interim recertifications. RELATIVE. Any person related by blood, adoption or marriage. REMAINING MEMBER OF TENANT FAMILY. Person left in assisted housing after other family members have left and become unassisted. RENT TO THE OWNER. The total monthly rent payable to the owner under the lease for the unit. Rent to the owner covers payment for any housing services, maintenance and utilities that the owner is required to provide and pay for. SECRETARY. The Secretary of Housing and Urban Development. SECURITY DEPOSIT. Any advance payment, other than an advance for the first month's rent or a deposit for a key or any special equipment SERVICE PERSON. A person in the active military or naval service (including the active reserve) of the United States. SINGLE PERSON. A person living alone or intending to live alone. SPECIAL ADMISSION. Admission of an applicant that is not on the PHA waiting list or without considering the applicant’s waiting list position. SPECIAL HOUSING TYPES. See Subpart M of 24 CFR 982, which states the special regulatory requirements for SRO housing, congregate housing, group homes, shared housing, cooperatives (including mutual housing), and manufactured homes (including manufactured home space rental). SPOUSE. The husband or wife of the head of the household. SUBSIDIZED PROJECT. A multi-family housing project (with the exception of a project owned by a cooperative housing mortgage corporation or association) which receives the benefit of subsidy GL-11 2010 Draft Administrative Plan Glossary in the form of: 1. Below-market interest rates pursuant to Section 221(d)(3) and (5) or interest reduction payments pursuant to Section 236 of the National Housing Act; or 2. Rent supplement payments under Section 101 of the Housing and Urban Development Act of 1965; or 3. Direct loans pursuant to Section 202 of the Housing Act of 1959; or 4. Payments under the Section 23 Housing Assistance Payments Program pursuant to Section 23 of the United States Housing Act of 1937 prior to amendment by the Housing and Community Development Act of 1974; 5. Payments under the Section 8 Housing Assistance Payments Program pursuant to Section 8 of the United States Housing Act after amendment by the Housing and Community Development Act unless the project is owned by a ; 6. A Public Housing Project. SUBSIDY STANDARDS. Standards established by a PHA to determine the appropriate number of bedrooms and amount of subsidy for families of different sizes and compositions. SUSPENSION/TOLLING. Stopping the clock on the term of a family’s certificate or voucher, for such period as determined by the PHA, from the time when the family submits a request for PHA approval to lease a unit, until the time when the PHA approves or denies the request. TENANT. The person or persons (other than a live in aide) who executes the lease as lessee of the dwelling unit. TENANT RENT. The amount payable monthly by the family as PHA-approved rent to the owner TOTAL TENANT PAYMENT (TTP). The highest of 30% of the monthly-adjusted income, 10% of total monthly income, the welfare rent or the minimum rent. . UNIT. Residential space for the private use of a family. UTILITIES. Utilities means water, electricity, gas, other heating, cooking fuels, trash collection and sewage services. Telephone, cable and internet services are not considered utilities. UTILITY ALLOWANCE. An average estimated utility cost for the type, size and utility combination that the tenant would be responsible to pay. UTILITY REIMBURSEMENT PAYMENT. The amount, if any, by which the Utility Allowance for the unit, if applicable, exceeds the Total Tenant Payment for the family occupying the unit. VACANCY LOSS PAYMENTS: MOD-REHAB PROGRAM [24 CFR 882.411] See Chapter 19, MOD REHABILITATION PROGRAM, Vacancy Loss. GL-12 2010 Draft Administrative Plan Glossary PROJECT-BASED PROGRAM [24 CFR 983.352] See Addendum #2, PROJECT-BASED PROGRAM, Vacancy Loss. VERY LOW-INCOME FAMILY. A Lower-Income Family whose Annual Income does not exceed 50% of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. HUD may establish income limits higher or lower than 50% of the median income for the area on the basis of its finding that such variations are necessary because of unusually high or low family incomes. This is the income limit for the Certificate and Voucher Programs. VETERAN. A person who has served in the active military or naval service of the United States at any time and who shall have been discharged or released there from under conditions other than dishonorable. VIOLENT CRIMINAL ACTIVITY. Any illegal criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force against the person or property of another. VOUCHER HOLDER. A family holding a voucher with unexpired search time. WAITING LIST ADMISSION. An admission from the PHA waiting list. WAITING LIST. A list of families organized according to HUD regulations and PHA policy that are waiting for subsidy to become available. WELFARE ASSISTANCE. Welfare or other payments to families or individuals, based on need, that are made under programs funded, separately or jointly, by Federal, State, or local governments. C. GLOSSARY OF TERMS USED IN THE NONCITIZENS RULE CHILD. A member of the family other than the family head or spouse who is under 18 years of age. CITIZEN. A citizen or national of the United States. EVIDENCE. Evidence of citizenship or eligible immigration status means the documents, which must be submitted to evidence citizenship or eligible immigration status. HEAD OF HOUSEHOLD. The adult member of the family who is the head of the household for purpose of determining income eligibility and rent. HUD. Department of Housing and Urban Development. INS. The U.S. Immigration and Naturalization Service. MIXED FAMILY. A family whose members include those with citizenship or eligible immigration status and those without citizenship or eligible immigration status. NATIONAL. A person who owes permanent allegiance to the United States, for example, as a GL-13 2010 Draft Administrative Plan Glossary result of birth in a United States territory or possession. NONCITIZEN. A person who is neither a citizen nor nation of the United States. RESPONSIBLE ENTITY. The person or entity responsible for administering the restrictions on providing assistance to non-citizens with ineligible immigration status (the PHA). SECTION 214. Section 214 restricts HUD from making financial assistance available for noncitizens unless they meet one of the categories of eligible immigration status specified in Section 214. SPOUSE. Spouse refers to the marriage partner, either a husband or wife, who is someone you need to divorce in order to dissolve the relationship. It includes the partner in a common-law marriage. It does not cover boyfriends, girlfriends, significant others, or "co-heads." "Co-head" is a term recognized by some HUD programs, but not by public and Indian housing programs. GL-14 2010 Draft Administrative Plan Addendum #1 – Program Integrity ADDENDUM #1 PROGRAM INTEGRITY INTRODUCTION This chapter covers HUD and PHA policies designed to detect, investigate, resolve and prevent instances of program abuse or fraud. It also describes the actions that will be taken in the case of unintentional errors and omissions. The PHA is committed to assuring that the proper level of benefits is paid to all participating families, and that housing resources reach only income-eligible families so that program integrity can be maintained. The PHA will take all steps necessary to prevent fraud, waste, and mismanagement so that program resources are utilized judiciously. A. CRITERIA FOR INVESTIGATION OF SUSPECTED ABUSE AND FRAUD Under no circumstances will the PHA undertake an inquiry or an audit of a participating family arbitrarily. The PHA's expectation is that participating families will comply with HUD requirements, provisions of the voucher, and other program rules. The PHA staff will make every effort to educate all families in order to avoid unintentional violations. The PHA has a responsibility to HUD, to the community, and to eligible families in need of housing assistance, to monitor participants and owners for compliance and to investigate reports of possible abuse. The PHA will initiate an investigation and any subsequent follow-up of a participating family only in the event that one or more of the following circumstances occur: • Referrals, complaints, or tips from other agencies, companies or persons which are received by mail, by telephone, through SHRA’s website, or through e-mail which allege that a family is in non-compliance with, or otherwise violating the family obligations or any other program rules. A copy of the allegation will be retained in the family's file. • Internal file review reveals (as a function of initial eligibility, recertification, interim recertification, or quality control review) information or facts which conflict with file data, the PHA's knowledge of the family, or is discrepant with statements made by the family. • If the PHA receives independent verification or documentation which conflicts with representations in the family's file (such as public record information, credit bureau reports, or reports from other agencies). PI - 1 2010 Draft Administrative Plan Addendum #1 – Program Integrity B. STEPS THE PHA WILL TAKE TO PREVENT PROGRAM ABUSE AND FRAUD The PHA management and staff will utilize various methods and practices (listed below) to prevent program abuse, non-compliance, and willful violations of program rules by applicants and participating families. This policy objective is to establish confidence and trust in the management by emphasizing education as the primary means to obtain compliance by families. The PHA will: • Provide applicants and participants with information that explains the types of actions a family must take to avoid committing fraud and the penalties for program abuse; • Conduct mandatory briefing sessions for all prospective program participants, either prior to or upon issuance of a voucher. • Include a warning statement about the penalties for fraud on key PHA forms and form letters that request information from a family or owner; • Post instructive signage in a common area to reinforce compliance with program rules and to warn about penalties for fraud and abuse. C. STEPS THE PHA WILL TAKE TO DETECT PROGRAM ABUSE AND FRAUD The PHA staff will maintain a high level of awareness to indicators of possible abuse and fraud by assisted families. 1. Quality Control File Reviews HCV Program Supervisors will review caseworker files to ensure that: • Verifications of all income have been submitted in accordance with guidelines. (Refer to Admin Plan, Chapter 7, Section A, Methods of Verification and Time Allowed). • All allowable deductions are documented (Refer to Admin Plan, Chapter 7, Section H, Verifications of Allowable Deductions from Income). • Adjusted income is calculated correctly. • File documents are authentic. • All forms are correctly dated and signed. PI - 2 2010 Draft Administrative Plan Addendum #1 – Program Integrity 2. Enterprise Income Verification The Enterprise Income Verification (EIV) HUD system will be used by authorized staff to validate tenant-reported income and to supplement tenant-provided documents. EIV is anticipated to reduce subsidy overpayments and improve program integrity. 3. Observation of File Data Integrity The PHA Management and staff will maintain high awareness of circumstances which may indicate program abuse or fraud. The PHA will provide continuous training to staff regarding program rules and regulations. 4. Fraud Hotline The PHA will maintain a public fraud hotline. 5. Confidentiality of Criminal Records The PHA will ensure that any criminal record received is maintained confidentially, not misused or improperly disseminated, and destroyed once the purpose for which it was requested is accomplished. All criminal reports will be housed in a secured location with access restricted to individuals responsible for such screening while needed by staff for screening for criminal behavior. Misuse of the above information by any employee may be grounds for termination of employment. If the family is determined eligible for initial or continued assistance, the PHA's copy of the criminal report will be shredded as soon as the information is no longer needed for eligibility or continued assistance determination. If the family's assistance is denied or terminated, the criminal record information will be shredded immediately upon completion of the informal review or informal hearing, a final decision has been made and any appeal deadline has expired. The PHA will document in the family's file that the family was denied admission or the tenancy was terminated due to findings in the Criminal History Report. D. OVERPAYMENTS TO OWNERS The PHA will make every effort to recover any overpayments made as a result of fraud or abuse. If the owner has been overpaid as a result of fraud, misrepresentation or violation of the contract, the PHA may terminate the contract and arrange for restitution to the PHA. Future housing assistance payments may be applied to offset any funds owed to the PHA. PI - 3 2010 Draft Administrative Plan Addendum #1 – Program Integrity E. HOW THE PHA WILL INVESTIGATE ALLEGATIONS OF ABUSE AND FRAUD If the PHA determines that an allegation or referral warrants follow-up, either the staff person who is responsible for the file, or a person designated by the Executive Director to monitor the program compliance will conduct the investigation. As appropriate, the PHA will secure the written authorization from the program participant for the release of information. The steps taken will depend upon the nature of the allegation and may include, but are not limited to, the following: • Determine if there is financial activity that conflicts with the reported income of the family via Credit Bureau inquiries (with proper authorization by the participant or applicant); • Contact employers or ex-employers to verify wages that may have been previously undisclosed or misreported; • Interview neighbors and/or other witnesses who are believed to have knowledge of facts pertaining to the PHA's review. In such instances, the client’s privacy will be protected by the PHA; • Contact investigators, caseworkers or representatives of other benefit agencies; • Review public records kept in any jurisdictional courthouse such as real estate, marriage, divorce, uniform commercial code financing statements, voter registration, judgments, court or police records, state wage records, utility records and postal records; and, • Interview Head of Household or family members. • Investigate allegations against a participant/applicant or owner. This review will consist of an internal review of the file or information received to determine the nature of the allegation(s). A determination will be made whether or not the information reported has been previously disclosed to the PHA. The PHA will make a determination as to which is the most appropriate authority to perform any follow-up investigation. . F. PLACEMENT OF DOCUMENTS, EVIDENCE AND STATEMENTS OBTAINED BY THE PHA Documents and other evidence obtained by the PHA during the course of an investigation will be considered "work product" and will either be kept in the participant's file, or in a separate "work file”. In either case, the participant's file or work file shall be kept in a secured area. Such cases under review will not be discussed among PHA staff unless they are involved in the process, or have information which may assist in the investigation. PI - 4 2010 Draft Administrative Plan Addendum #1 – Program Integrity G. CONCLUSION OF THE PHA'S INVESTIGATIVE REVIEW At the conclusion of the investigative review, the reviewer will report the findings to the Supervisor. It will then be determined what action, if any, is appropriate. H. EVALUATION OF THE FINDINGS If it is determined that a program violation has occurred, the PHA will review the facts to determine: • The type of violation (procedural, non-compliance, fraud); • The seriousness of the offense; • Whether the violation was intentional or unintentional; • What amount of money (if any) is owed by the family or owner; • Whether or not the family and/or owner are eligible for continued program participation. Procedures For Violations Which Have Been Documented Once a program violation has been documented, the PHA will propose the most appropriate remedy based upon the type and severity of the violation. A warning notice may be mailed to the family if the family is found to be in violation of PHA procedure, policy and/or family obligation. This notice will include the following: • A description of the alleged abuse or fraudulent activity; • The corrective action to be taken by the family or PHA to remedy the situation; • The date by which the violation must be corrected or the procedure complied with; • The action, which will be taken by the PHA if the procedure or obligation is not complied with by the date, specified by the PHA; and • The consequences of repeated (similar) violations. I. FAMILY-CAUSED ERRORS AND PROGRAM ABUSE An incorrect subsidy determination caused by a family may be the result of incorrect reporting of family composition, income, assets, or expenses. PI - 5 2010 Draft Administrative Plan Addendum #1 – Program Integrity An applicant or participant in the HCV program must not knowingly: • Make a false statement to the PHA; • Commit fraud, bribery, or any other corrupt or criminal act in connection with any Federal housing program; • Pay to the owner excess amounts over the amount authorized by the PHA for rent, security deposit and additional services; • Offer bribes or illegal gratuities to the PHA Board of Commissioners, employees, contractors, or other PHA representatives; • Offer payments or other incentives to the owner or a third party as an inducement for the third party to make false or misleading statements to the PHA on the family’s behalf; • Use a false name; • Use falsified, forged or altered documents; • Misreport family information or circumstances (e.g. income, family composition); or, • Omit facts that were obviously known by a family member (e.g., not reporting employment income). Family Reimbursement to PHA In the case of the family-caused errors or program abuse, the family will be required to repay any excess subsidy received and/or be terminated. See Administrative Plan, Chapter 17, Debts to the PHA. Penalties For Program Abuse In the case of program abuse caused by a family, the PHA may impose any of the following remedies: • Require the family to repay excess subsidy amounts paid by the PHA within 60 days; • Require, as a condition of continuing assistance, that a culpable family member not reside in the unit; • Deny or terminate the family’s assistance; or • Refer the family for State or Federal criminal prosecution. PI - 6 2010 Draft Administrative Plan Addendum #1 – Program Integrity Tenant Conference for Serious Violations and Misrepresentations When the PHA has established that misrepresentation(s) have occurred, a mandatory tenant conference may be scheduled with the family representative and a PHA staff person who is knowledgeable about the circumstances of the case. This mandatory tenant conference will take place prior to any proposed action by the PHA. The purpose of the mandatory tenant conference is to: • Review the information obtained by the PHA with the participant; • Provide the participant an opportunity to explain any document findings which conflict with representations in the family's file; • Consider any new information, documents or mitigating circumstances presented by the family; and • Assist the PHA in determining the course of action most appropriate for the case. Notification to Participant of Proposed Action The PHA will provide written notification to the family of the proposed action no later than thirty (30) days after the tenant conference. J. CODE OF CONDUCT The PHA strives to conduct business in accordance with core values and ethical standards. Professional conduct, ethical practices and adherence to all laws, regulations, and government codes are expected by all employees at all times. The PHA will provide continuous training to staff regarding the PHA’s personnel policies and standards. Prohibited Activities Any of the following will be considered evidence of program abuse by PHA staff: • Fail to comply with any HCV program requirements for personal gain; • Fail to comply with any HCV program requirements as a result of a conflict of interest relationship with any applicant, participant, or owner; • Seek or accept anything of material value from applicants, participating families, vendors, owners, contractors, or other persons who provide services or materials to the PHA; PI - 7 2010 Draft Administrative Plan Addendum #1 – Program Integrity • Disclose confidential information to outside parties; • Profit as a result of insider knowledge of PHA activities, policies, or practices; • Inappropriate or misuse of HCV funds; • Destroy, conceal, remove, or inappropriately use any records related to the HCV program; • Embezzle and falsify accounts as defined in the California Penal Code; or • Commit any other corrupt or criminal act in connection with any Federal housing program. The Consequences of Rule Violations Any violation of prohibited activities shall be addressed as specified in the PHA’s personnel policies on Discipline, Dismissal, and Review. K FRAUD AND/OR MISREPRESENTATION COMMITTED BY A PERSON OR GROUP. Where it is determined that an individual or group has engaged in activities including, but not limited to misrepresentation, duplicitous activity, fraud, or is complicit in any such activity while acting in any matter related to business with SHRA, the PHA may, at its discretion, refuse to conduct business in any capacity with the individual or group. PI - 8 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program ADDENDUM #2 PROJECT-BASED HOUSING CHOICE VOUCHER PROGRAM CHAPTER 1 OVERVIEW OF PROJECT-BASED VOUCHER PROGRAM INTRODUCTION The US Department of Housing and Urban Development (HUD) published a final rule for Project Based Vouchers on October 13, 2005. This governs how the Housing Authority manages project-based vouchers from November 14, 2005 on, along with subsequent amendments to the regulation and subsequent statutory changes including changes contained in the Housing and Economic Recovery Act of 2008. Prior to this final rule, Sacramento Housing and Redevelopment Agency already had 283 project-based vouchers at Phoenix Park and had issued a Request for Proposals, although the decision letter was sent to Saybrook Apartments after November, 2005. Management of Phoenix Park is still determined by the interim rule for project-based vouchers, published January 16, 2001 until/unless HUD approves waivers. It is this housing authority’s intent to manage all project-based vouchers consistently. The Housing Authority will pursue waivers for Phoenix Park where there are differences between the interim rule and the final rule. Based on the provisions of the final rule for Project-Based Vouchers (PBV), published in the Federal Register on October 13, 2005 and effective November 14, 2005, the Sacramento Housing and Redevelopment Agency (SHRA) will project base up to 15 percent of its Housing Choice Voucher funding. SHRA will not be required to reduce the number of PBV units under contract if the Budget Authority is subsequently reduced, but will look first to reducing the number of tenant-based vouchers. No additional funding is provided for this program for either Housing Assistance Payments (HAP) or Administrative costs. Regulations governing tenant-based vouchers found at 24 CFR 982 also govern project-based vouchers, except where the differences are spelled out in the final rule as defined above, and in 24 CFR 983 and in SHRA’s Administrative Plan and any subsequent legislation. The Administrative Plan seeks to clarify areas where the Housing Authority has discretion, but will not repeat all of the regulatory language contained in these documents. SHRA is a joint powers authority, answering to the SHRA’s Commission, the City Council and the County Board of Supervisors to oversee the City and County Redevelopment Agencies and the City and County Housing Authorities. Only the Sacramento County Housing Authority manages the Housing Choice Voucher Program. The Housing Authority will project base units selected in new construction projects, rehabilitation projects, and or existing projects, as defined in a Request for Proposal (RFP). The Housing Authority will project base no more than 25 percent of the units in a building unless the PB-1 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program project meets the following exceptions, and the exceptions were allowed under the specific RFP at the time of consideration. The exceptions to the 25 percent unit limitation are: • Units in single family homes (four units or less) • Units in a multifamily building that are made available for qualifying families. Qualifying families means elderly or disabled families or families receiving qualifying supportive services. Supportive services is described in Chapter 2 Section B(6) within this addendum. SHRA is committed to providing PBV with supportive services to families in order to encourage independence and self-sufficiency. This may include families with multiple challenges (such as family members who are disabled and with minor children), or elderly or disabled families. The Housing Authority will publish a Request for Proposals (RFP) seeking applications from housing owners for new construction, rehabilitation or existing housing to serve families. The RFP will detail the amount of funding available for which of the three types of housing units described above. New Construction Housing units that do not exist on the proposal selection date and are developed after the date of selection pursuant to an Agreement between the PHA and owner for use under the PBV program. New construction projects must be completed within a two-year period after approval of the proposal. Rehabilitation Housing units that exist on the proposal selection date, but do not substantially comply with Housing Quality Standards (HQS) on that date, and are developed, pursuant to an Agreement between the PHA and owner, for use under the PBV program and will take in excess of $5,000 per unit to make minimal improvement so that they can pass HQS. Existing Housing Housing units that already exist on the proposal selection date and that generally will be considered to substantially comply with the HQS if those units can be made to pass inspection after an infusion of less than $5,000 per unit. (The units must fully comply with HQS before execution of the HAP contract.) PB-2 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program Chapter 2 PROPOSAL SELECTION PROCEDURES A. PROPOSAL SELECTION PROCEDURES The PHA will project-base rental units based on a competitive process. Competitive Process A Request for Proposals (RFP) will be published in the Sacramento Bee, a newspaper of general circulation, in order to provide broad public notice of the opportunity to apply for project-based vouchers. The RFP will list the submission deadline and the date and time for a bidder conference. It will include guidelines for the proposal and the evaluation criteria to be used. This RFP is established pursuant to Title 24 of the Code of Federal Regulations, part 983, Subpart B (Selection of PBV Owner Proposals). Procurement will be consistent with PHA’s procurement policy and all relevant regulations. B. PROPOSAL REQUIREMENTS The goal of project-basing vouchers is to ensure long-term viability of affordable housing across a broad continuum of housing types within the County of Sacramento. The RFP will outline the type of project (i.e. existing, new construction or rehabilitation) to be funded. The Housing Authority is committed to providing housing: • to serve low income families, especially those that are o Elderly o Disabled o Needing supportive services • which deconcentrate poverty and expands housing and economic opportunities • that meets the following goals of the agency: • boosts home ownership; • revitalizes areas through physical rehabilitation of housing and enrich the quality of life in rental housing by investing in resident services; • provides housing resident self sufficiency programs; • develops the work force; • creates jobs; • revitalizes commercial areas; • encourages business activities in low income areas; and • provides public amenities. The proposal must be submitted by the property owner and will be evaluated based on its merit. The proposal shall include: PB-3 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program 1) Description of How the Applicant Meets the Need for Affordable Housing as defined in the Consolidated Plan: Affordable housing is needed especially to serve the following groups: • Low-income families who are living in substandard housing, • Low-income families who are paying more than 50% of their income for housing, • Disabled families, • Homeless families, • Elderly families. 2) Description of How the Proposed Housing Deconcentrates Poverty and Expands Housing and Economic Opportunities: In order to deconcentrate poverty, the housing development must be located in a low poverty census tract, defined as where less than 14.1% of the population has income less than the poverty level as measured by the 2000 Census. The average poverty rate for the County of Sacramento was 14.1% as of the 2000 Census. If the census tract where the project-based vouchers are proposed is not in a low poverty census tract, a narrative must be provided showing that: a) The project site is in a census tract that is a HUD designated Enterprise Zone, Economic Community, or Renewal Community, or b) The project site is in a census tract where the concentration of assisted units will be or has decreased as a result of public housing demolition, or c) The project site is in a census tract which the proposed PBV development will be located is undergoing significant revitalization, or d) State, local, or Federal dollars have been invested in the area that has assisted in the achievement of the statutory requirement of deconcentrating poverty and expanding housing and economic opportunities, or e) New market rate units are being developed in the same census tract as the proposed project and it is likely that the market rate units will reduce the poverty rate for the census tract, or f) The project site is in a census tract with greater than 20 percent poverty but in the last five years there has been an overall decline in the poverty rate; and/or g) The project site is in a census tract with meaningful opportunities for education and economic development. This criteria is met if one of the above is met. 3) The State of Housing to Be Funded The state of housing: PB-4 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program • New construction, defined as housing units that do not exist at the time of proposal selection • Housing to be rehabilitated, defined as existing housing units that do not comply with HQS on the date of proposal selection which will require more than $5,000 per unit to pass HQS inspection • Existing housing, defined as housing units which already exist and substantially comply with HQS, or where it will cost less than $5,000 per unit to repair so that they will pass HQS inspection, at the time of proposal selection. 4) The Type of Housing to Be Funded Single or multi-family units may be considered. For a complete listing of all ineligible units refer to 24CFR 983.53 and 983.54: 5) Number of Units to Be Funded 6) Supportive Services The Proposal must contain a Memorandum of Agreement, or a letter of commitment, showing a relationship between the housing provider and the service providers (if they are different entities). This Agreement must list: • What supportive services are to be provided. The proposal must describe at least three services that the owner will provide, directly or indirectly, that help the family move to economic self-sufficiency; • Where the supportive services are to be provided. It is not necessary for the services to be provided at the project site or by the project; • Steps the owner will take when a family is not participating in services; • The type of documentation utilized concerning the family’s compliance with their services contract. This documentation must be made available to SHRA for review. Failure of the family to comply may be good cause for SHRA to terminate the family from the PBV program; and • Timeframe within which the owner will identify a replacement service provider. Evaluation Criteria The RFP will describe the process used to rank applications which may include but are not limited to: • The location of the housing, whether it is in a redevelopment area or an area targeted for blight elimination; • The size and configuration of the units to serve the unmet needs of targeted populations (i.e., whether serving elderly or disabled large family sizes); • Long-term viability of the project; PB-5 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program • The proximity of the site to amenities; • The size and existence of a community center on site; • The existence of supportive services; • Management experience; • The number of accessible units for persons with disabilities; and • Other sources of funding; and • Willingness to accept long-term contract. C. PROPOSAL REVIEW PROCESS If there are no SHRA-owned or controlled applicants, a PBV Selection Panel appointed by SHRA will review, evaluate, rank, and select the proposals. If one of the respondents presents an Identity of Interest with SHRA, the proposal in question will be forwarded to the HUD field office or HUD-approved independent entity for review. The HUD field office, or designee, will review the proposal to determine that the PHA-owned units were appropriately selected based on the selection procedure specified in the Administrative Plan. The Selection Panel will review all proposals before selecting units, they will determine that each proposal is responsive to and in compliance with the information provided in the RFP. The Panel will assure that the project meets PBV goals, civil rights requirements, HQS site standards, the project must be consistent with the goal of deconcentrating poverty and expanding housing and economic opportunities, and the site and neighborhood standards. For existing housing, the PHA must inspect all the units before the proposal selection date to determine whether the units substantially comply with HQS. The PHA may not execute the HAP contract until the units fully comply with HQS. Proposals that meet the requirements will be evaluated and ranked by the Selection Panel. A Ranking List will be prepared according to points awarded to each proposal. Ranking scores become public information. SHRA may, at its discretion, select one or more of the proposals submitted, or none of the proposals submitted. SHRA will provide written notice to the owner whose proposal is selected within 45 days of the decision. SHRA will give prompt public notice once a proposal(s) has been selected. Public notice is publication of public notice in the Sacramento Bee, a local newspaper of general circulation. The notice will include information about how the public can inspect documentation regarding the basis for the selection of the proposal. SHRA will also provide this information directly to owners whose proposals were not selected. PB-6 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program Chapter 3 SITE AND NEIGHBORHOOD REVIEW Site Selection Criteria SHRA is working to ensure long-term viability of affordable housing across a broad continuum of housing types within the County of Sacramento. SHRA is targeting projects located in redevelopment areas that are affordable, have received long-term affordable housing financing, and are close to amenities including public transportation and shopping. Proposals providing units specifically to elderly or disabled households or households receiving supportive services, and providing on-site supportive services will be given preference over projects that do not have these characteristics. In order for the site to be selected for participation in this program, SHRA must: • determine that the site is consistent with the goal of deconcentrating poverty and expanding housing and economic opportunities; • determine that the site is eligible to receive project-based vouchers, as defined by 24 CFR 983 published on October 13, 2005 and any other regulations and Notices issued; • complete a site inspection if the proposal covers existing or rehabilitated housing to ensure that it meets HQS for the site; • determine that the site is suitable from the standpoint of facilitating and furthering full compliance with the Fair Housing Laws; • determine that the site has adequate utilities and streets available to service the site; • determine that the site meets neighborhood standards. Environmental Review In the case of existing housing under part 983, the entity responsible for Environmental Review under 24 CFR part 58 must determine whether or not a project selected for PBV assistance is categorically excluded from review under the National Environmental Policy Act and whether or not the assistance is subject to review. The PHA may not enter into an Agreement or HAP contract and may not commit or expend program or local funds for PBV activities until such determination is made. PHA-Owned Units If housing is selected for PBV where SHRA has an identity of interest, an independent entity approved by HUD must: 1) Determine initial rent to owner based on an appraisal by a licensed, state-certified appraiser; 2) Determine reasonable rent based on a comparability analysis for other than initial rents; PB-7 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program 3) Furnish a copy of the rent determination for SHRA-owned units to SHRA and to the HUD field office; and 4) Complete all HQS inspections and provide a copy of the HQS inspections to the Housing Authority and to the HUD field office. The Housing Authority may only compensate the independent entity from ongoing administrative fee income, not other program receipts. The PHA may not charge the family any fee for the appraisal or for other services provided by the independent entity. PB-8 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program Chapter 4 HAP AMENDMENTS, CONTRACT, AND CONTRACT TERMINATION The PHA may not enter into an Agreement for A Housing Assistance Payment (AHAP) contract (for new construction and rehabilitation) until HUD has completed any required subsidy layering review. The HAP contract must contain the owner’s certification that the project has not received and will not receive any public assistance for acquisition, development or operation for housing,, either before or during the term of the HAP contract, other than assistance disclosed in the subsidy layering review. A unit that is occupied on the date of selection by an ineligible family or a family who is uninterested in PBV assistance cannot be selected for PBV assistance. For families who will reside in excepted units, the family must be a qualified family. The HAP contract must specify: • The total number of contract units by number of bedrooms; • Information needed to identify the site and the building or buildings where the contract units are located. The information must include the project’s name, street address, city or county, state and zip code, block and lot number (if known), and any other information necessary to clearly identify the site and the building; • Information needed to identity the specific contract units in each building. The information must include the number of contract units in the building, the location of each contract unit, the number of bedrooms and bathrooms in each contract unit, and any accessibility-related features of the unit. A map to identify the location of accessible units should also be included; • Services, maintenance, and equipment to be supplied by the owner without charges in addition to the rent to the owner; • Utilities available to the contract units, including a specifications of utility services to be paid by the owner (without charges in addition to rent) and utility services to be paid by the tenant; • Features provided to comply with program accessibility requirements of Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR part 8; • The HAP contract term; • The number of units in any building that will exceed the 25 percent per building cap (as described in 983.56) which will be set-aside for occupancy by qualifying families (elderly or disabled families and families receiving supportive services); and • The initial rent to the owner (for the first 12 months of the HAP contract term). The Housing Authority will not execute a HAP contract until all the units fully comply with HQS. PB-9 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program Vacancy Loss (CFR 983.352) Payment for Move-Out Month If an assisted family moves out of the unit without notice or is deceased, the owner may keep the Housing Assistance Payment (HAP) payable for the calendar month (“move-out month”). However, the owner may not keep the payment if the PHA determines that the vacancy is the owner’s fault. The PHA shall not pay for an overlapping HAP. Vacancy Loss When a family vacates its unit, the owner is eligible for a vacancy loss payment if: • The owner gives the PHA prompt written notice certifying that the family has vacated the unit and containing the date when the family moved out (to the best of the owner’s knowledge and belief) • The owner certifies that the vacancy is not the fault of the owner and that the unit was vacant during the period for which payment is claimed • The owner certifies that it has taken every reasonable action to minimize the likelihood and length of vacancy • The owner provides any additional information required and requested by the PHA to verify that the owner is entitled to the vacancy payment • The owner must submit a request for vacancy payment in the form and manner required by the PHA and must provide any information or substantiation required by the PHA to determine the amount of any vacancy payment. Vacancy loss begins the later of: o the unit is rent ready, per the owner/manager, o the day after the Housing Assistance Payment (HAP) was paid to the owner • Vacancy loss is calculated based on 80% of the Contract Rent • Any rental payment received by the owner from the tenant (including amounts available from the tenant’s security deposit) will be deducted from Vacancy Loss amount • Vacancy loss allows a maximum of 60 days or 2 full months, whichever is less • Vacancy loss calculation will be based on actual calendar days per month Vacancy payments may cover only the period the unit remains vacant and is in rent-ready condition. The PHA will not pay a vacancy loss for a unit that remains vacant when the waiting list for that complex does not have any applicants of that bedroom size for the PHA to select from. This shows that the owner has not taken every reasonable action to minimize the length of unit vacancy. PB-10 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program Accessible Units Distribution of accessible dwelling units shall, to the maximum extent feasible and subject to reasonable health and safety requirements, be distributed throughout projects and sites and shall be available in a sufficient range of sizes and amenities so that persons with disabilities have choices of living arrangements comparable to that of other families eligible for assistance under the same program. At a minimum, projects must meet 24 CFR Part 8, subpart C. Rents Limits 1) The initial rent for units is established at the beginning of the HAP term. The rents determined at AHAP are only an estimate. 2) Except for certain tax credit units and units with other subsidies, the rent must not exceed the lower of: a) 110% of the Fair Market Rent (FMR) or a HUD approved exception rent; b) The rent requested by the owner; or c) Reasonable rent; A. Factors are the same as the tenant based program B. Three comparables must be used, including when unassisted units in the project/premises are used C. Comparability analysis may be done by PHA staff, or other qualified person or entity as long as there is no direct or indirect interest in the property 3) For PHA owned units or units where the PHA has an identity of interest, HUD must approve an independent agency that will perform the comparability analysis. The independent agency must have a State Certified Appraiser perform the comparability analysis for the initial rents. The independent agency must provide HUD with a copy of all the determinations of the reasonable rent. 4) Projects that receive subsidies from other specified programs (not including tax credits) are subject to the rent limits of those programs (see 983.304 for additional guidance). Tax credit units in qualified census tracts may receive the tax credit rents even if they are higher than 110 percent of the FMR or HUD approved exception rent, as long as the tax credit rent is rent reasonable. 5) All projects receiving tax credits or any other governmental housing assistance from Federal, State, or local agencies must have a subsidy layering review performed by HUD, Office or Public Housing or designee. 6) Rent to the owner must be re-determined at owner’s request (on HAP anniversary date), or when there is a 5% decrease in the published FMR. There are no “special adjustments” to rent. PB-11 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program 7) In addition to 6) above, reasonable rent must be determined whenever the HAP is amended to substitute a different contract unit in the same building, when there is a change in the allocation of responsibility for utilities between the owner and the tenant, or when there is any other change that may impact reasonable rent. 8) If the rent is reduced to a rate below the initial rent at the time of HAP execution, the owner may terminate the HAP. Should this occur, the families residing in the PBV units will be given tenant-based vouchers. 9) The determination of initial rent shall be based on the most recent FMR and utility allowance. However, the PHA may use the amounts in effect up to 30 days prior to HAP execution. 10) The rent to the owner may be subject to rent control or other limits under local, State, or Federal law. 11) Under the HAP contract, the monthly Housing Assistance Payment by the PHA to the owner is the rent to the owner minus the tenant rent (Total Tenant Payment minus any applicable utility allowance). Term of HAP Contract The PHA may enter into a HAP contract with an owner for an initial term of up to thirty years. The term of all PBV HAP contracts will be negotiated with the owner on a case-by-case basis. The length of the term of the HAP Contract can go up to fifteen (15) years, plus a fifteen (15) year extension subject only to the PHA’s determination that the owner is in compliance with the HAP contract and other applicable HUD requirements, for a total of thirty (30) years. The PHA will enter into thirty (30) year contracts if it determines that the initial 15-year extension is appropriate to achieve long-term affordability of housing and to expand housing opportunities. The PHA may request, as part of the selection process or otherwise as allowable by HUD, that owners agree to accept any extensions of the contract term that the PHA may offer, or propose to agree to accept specific numbers of extensions.. Within one year before expiration of the HAP contract or otherwise as allowable by HUD, the PHA may extend the term of the contract for an additional term or terms of up to five years if the PHA determines an extension is appropriate to continue providing affordable housing for low- income families. When determining whether or not to extend an expiring PBV contract, the PHA may consider factors including but not limited to: 1) the cost of extending the contract and the amount of available budget authority; 2) the condition of the contract units; 3) the owner’s record of compliance with obligations under the HAP contract and lease(s); and 4) whether the location of the units continues to support the goals of deconcentrating poverty and expanding housing opportunities. The HAP contract must provide that the term of the PHA’s contractual commitment is subject to the availability of sufficient appropriated funding (budget authority) as determined by HUD or by the PHA in accordance with HUD instructions. For purposes of this section, “sufficient PB-12 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program funding” means the availability of appropriations, and of funding under the ACC from such appropriations, to make full payment of housing assistance payments payable to the owner for any contract year in accordance with the terms of the HAP contract. If there is not sufficient funding for the Housing Authority to meet all of its contractual obligations, the Housing Authority will seek to decrease its commitment to tenant-based vouchers through attrition first. The cost of project-based vouchers must not exceed 15 % of the total funding level. The owner may terminate the HAP contract, upon 60 days written notice to the PHA, if the amount of the rent to the owner for any contract unit, as adjusted in accordance with 24 CFR 983.302 is reduced below the amount of the initial rent to the owner (rent to the owner at the beginning of the HAP contract term). In this case, the assisted families residing in the contract units will be offered tenant-based voucher assistance. Rent Increase The owner may request a rent increase to be effective at any anniversary date of the HAP contract after submitting a 120-day written notice to the PHA and the tenant. The PHA shall determine reasonable rent in accordance with 24 CFR 983.303. The rent increase will apply to all units included in the HAP contract. HAP Contract Amendments (Add or Substitute Contract Units) The HAP contract may be amended to substitute a different unit with the same number of bedrooms in the same building for a previously covered contract unit. Prior to such substitution, the PHA must inspect the proposed substitute unit and must determine the reasonable rent for such unit. The HAP contract may be amended during the three-year period immediately following the execution date of the HAP contract to add additional PBV contract units in the same building subject to 25% unit limitation per building or whatever limit was included within the scope of the RFP. Funding can not exceed the 15% cap. An amendment to the HAP contract is subject to all PBV requirements (e.g., rents are reasonable), except that a new PBV RFP is not required. The anniversary and expiration dates of the HAP contract for the additional units must be the same as the anniversary and expiration dates of the HAP contract term for the PBV units originally placed under HAP contract. In all cases, only families who were residing in the units at the time of the initial selection of the project will have a right to an absolute preference on the waiting list and the family must be eligible to live in an assisted unit. Utility Reimbursement Payment When the Total Tenant Payment (TTP) is less than the utility allowance, the PHA will issue a Utility Reimbursement Payment (URP) to the tenant. PB-13 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program Contract Terminations Chapter 14 “Contract Terminations” of the Administration Plan applies to project-based vouchers. The following exceptions apply: • If contract requires a service provider and owner fails to provide one, contract will be terminated • Contract remains in effect regardless of the tendency PB-14 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program Chapter 5 ELIGIBILITY FOR ADMISSION All regulations regarding Eligibility for Admission (Chapter 2 of the Administration Plan) are the same for the tenant-based voucher program and the project-based voucher program, except: • Families must be a qualified family for excepted units • The income targeting requirements apply to the HCV program as a whole including PBV. However, the PHA does not need to apply the ratio exactly for tenant-based and project- based programs Definitions TENANT-BASED VOUCHER PROGRAM. Tenant-based assistance is attached to the family allowing the participant to relocate from one unit to another. PROJECT-BASED VOUCHER PROGRAM. Project-based assistance is attached to the unit. PB-15 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program Chapter 6 APPLYING FOR ADMISSION A. OPENING/CLOSING OF THE WAITLIST A separate waiting list may be created and maintained for each site or a group of sites within the PBV program. Opening and closing the waiting list will be consistent with policies governing tenant-based vouchers (Chapter 3 of the Housing Choice Voucher Program Administrative Plan). If a new waiting list is created, all families on the tenant-based waiting list will be queried for the new waiting list first, before allowing the public access. The owner can refer families to the PHA waiting list when it is open. B. FINAL DETERMINATION AND NOTIFICATION OF ELIGIBILITY In the project-based voucher program, hard copies of vouchers are not issued. Families are briefed when they are determined to be eligible to participate in the program and are referred to the owner. The owner will select families based on the owner’s screening process. The owner must provide written notice to all families referred by the PHA within seven (7) calendar days, listing the reason the family was not selected. The owner must send a copy of the notice to the Housing Authority. The PHA will not screen for behavior or suitability. As soon as the PHA is notified of an available unit, families will be selected from the waiting list by bedroom size and then by preference; then by date and time of application. The PHA provides the complex with a list of families selected from the waiting list , with which they may begin the suitability screening process. Once a family is selected from the Project-Based waiting list and is denied by the complex, the PHA will withdraw the family from the waiting list that they were selected based on “Denial by Complex” and the family does not get hearing rights with the PHA. They do have hearing rights with the complex, based on the policy of said complex. Informal Review Procedures for Applicants. Please see Chapter 18, Part C of the Admin Plan. PB-16 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program Chapter 7 ESTABLISHING PREFERENCES AND MAINTAINING THE WAITING LIST/TENANT SELECTION Applicants who will occupy PBV units must be selected by the PHA from a waiting list that is maintained by the PHA. The PHA will place families referred by the PBV owner/manager on its PBV waiting list when the waiting list is open. A. TYPES OF WAITING LISTS The PHA will establish separate waiting lists for: 1) Tenant-Based Vouchers Tenant-based assistance is attached to the family allowing the participant to relocate from one unit to another. Preferences are found in Chapter 4 of the Administration Plan: 2) Project-Based Vouchers The owner must promptly notify the PHA of any vacancy or expected vacancy in a contract unit. After receiving the owner notice, the PHA will make every reasonable effort to promptly refer a sufficient number of families to the owner in order to fill such vacancies. Vacant units will be filled based on: • Current HCV participants who have submitted applications to rent in the project-based unit. HCV participants will be considered according to the date and time their completed site-based application was received. • Families on the waiting list, in order of preference, and then by date and time the pre-application was received where preferences are the same. There may be site-based waiting lists for the project-based voucher program. a. Non-Excepted Units The Housing Authority will maintain one waiting list for project-based vouchers where supportive services are not provided. This list will be subject to the following weighted preferences: • family who is eligible to be a qualified family and residing in unit at the time of conversion to project-based voucher will be given an absolute preference; • residency (4 points); • disability (2 points); and • rent burden and/or homeless (1 point). PB-17 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program (Please see section B “Definition of Preferences” in the following section for more detail.) For families with the same preferences, families will be pulled from the waiting list based on date and time of the pre-application. b. Excepted Units with Supportive Services Project-based assistance is attached to the unit. Families must be receiving housing and at least one supportive service. At the time of initial lease execution between the family and the owner, the family must sign a statement of family responsibility. The statement of family responsibility must contain all the family obligations, including the family’s participation in a service program. Supportive services will be provided by the owner/manager or by their contractor. The project-based targeted needs wait list will be utilized to fill vacancies in a complex where supportive services are provided. Homelessness is a complex requirement, and at initial eligibility the complex will verify to make sure that the family meets this criteria. Families with family members who meet all of the following SHRA preferences will be assisted first: • Family who is eligible to be a qualified family and based on supportive services and who is residing in unit at the time of conversion to project-based voucher property will be given an absolute preference; • Residency (4 points); • Have a disabled family member (2 points).. c. Excepted Units for Elderly and/or Disabled The PHA will maintain one waiting list for project-based vouchers for elderly and/or disabled applicants. This list will be subject to the following weighted preferences: • family who is eligible to be a qualified family and residing in unit at the time of conversion to project-based voucher will be given an absolute preference; • Elderly or disabled, depending on type of housing available (6 points) • Residency (4 points) • Rent burden and/or homeless (1 point) B. DEFINITION OF PREFERENCES 1. Residency preference is given to applicants who live, work, or have been hired to work in Sacramento County, or any political subdivision thereof. PB-18 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program 2. Rent Burden preference is given to applicants who pay more than 50% of their gross income for rent and utilities. The applicant family must provide copies of receipts, lease, their income and utility bills. 3. Homeless preference is to be given to applicants who meet HUD’s definition of homeless which is listed in section 103 of the McKinney Act (42 USC 11302). It defines homeless persons as 1) an individual who lacks a fixed, regular, and adequate nighttime residence; and 2) an individual who has a primary nighttime residence that is (A) a supervised publicly or privately operated shelter designed to provide temporary living accommodations (including welfare hotels, congregate shelters, and transitional housing for the mentally ill); (B) an institution that provides a temporary residence for individuals intended to be institutionalized; or, (C) a public or private place not designed for, a regular sleeping accommodation for human beings. The applicant can self-certify to the fact that they are homeless or an Agency can certify that the applicant family is homeless. Self –certification means a notarized statement signed under penalty of perjury in the presence of a witness. The HA will allow up to one week for a family to provide a self-certification or self-declaration if other forms of verification are impossible to obtain. 4. Disability preference is given to applicants who have a disabled household member. A person with a disability is defined as “Any person who has a physical or mental impairment that substantially limits one or more major life activities; has a record of such impairment; or is regarded as having such an impairment.” C. MULTIPLE WAITING LISTS If an applicant is placed on a waiting list, they shall be given the option to apply for all other PHA-administered housing programs that also have an open waiting list. Applicants on the tenant-based wait list will be queried for interest on any newly established wait list. If a family refuses the PHA’s offer from one waiting list (i.e., PBV assistance), such refusal does not affect the family’s position on another PHA waiting list for another type of assistance (i.e., tenant-based assistance). The PHA may not take any of the following actions against an applicant who has applied for, received, or refused an offer of PBV assistance: • Deny any admission preference for which the applicant is currently qualified • Change the applicant’s place on the waiting list based on date and time of application, or other factors affecting selection under the PHA selection policy • Remove the applicant from the waiting list for tenant-based voucher assistance If an applicant is pulled from two waiting lists at the same time, they can choose which option to pursue. Applications will be marked by program name to ensure families are directed to the appropriate program. PB-19 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program Screening The PHA will not screen for behavior (except for criminal background checks). Screening for behavior will be the responsibility of the owner. If a PBV owner rejects a family for admission to the owner’s PBV units, such rejection by the owner does not affect the family’s position on other waiting lists. (The owner must apply screening criteria in compliance with fair housing regulations). If a family does not meet the property owner’s screening criteria, they are not eligible for an informal review with the PHA. They must appeal the decision to the property owner. Accessible Units In selecting families to occupy PBV units with special accessibility features for persons with disabilities, the PHA must first refer families who require such accessibility features to the owner. The pre-application will allow families to state whether they need a unit with accessible features so that they can be matched with an appropriate unit. Families will be taken out of order to fill a vacant unit with accessible features in order to accommodate a person with disabilities. Families who do not need the accessible features of a specific unit will be skipped over to the next family on the waiting list that does need the accessible features. Filling an accessible unit with a non-disabled person When an accessible unit becomes vacant, the PHA will: 1. offer the unit to a current occupant with disabilities living in a Project-Based unit in the same development that requires the accessibility features of the vacant accessible unit and occupying a unit not having those accessibility features. Next, offer the unit to a family living in a Project-Based unit in other developments that requires the accessibility features of the vacant accessible unit and occupying a unit not having those accessibility features. The PHA will pay moving expenses to transfer a resident with a disability to an accessible unit as an accommodation for the resident’s disability, unless the accommodation would impose an undue financial and administrative burden. 2. if there is no current resident who requires the accessibility features of the vacant, accessible unit, then the PHA will offer the vacant, accessible unit to an eligible, qualified applicant with disabilities on the waiting list who can benefit from the accessible features of the available, accessible unit. 3. if there is not an eligible qualified resident or applicant with disabilities on the waiting list who wishes to reside in the available, accessible unit, then the PHA should offer the available accessible unit to an applicant on the waiting list who does not need the accessible features of the unit. However, the PHA will require the applicant to execute a lease that requires the resident to relocate to a non-accessible unit within thirty (30) days of notice by the PHA that there is an eligible applicant or existing resident with disabilities who requires the accessibility features of the unit. PB-20 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program The PHA may not prohibit an eligible disabled family from accepting a non-accessible unit for which the family is eligible that may become available before an accessible unit. The owner is required to modify such a non-accessible unit as needed, unless the modification would result in an undue financial and administrative burden. PB-21 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program Chapter 8 HOUSING QUALITY STANDARDS AND INSPECTIONS (HQS) Refer to CFR 983.103 “Inspecting Units” for Project-Based units approved under the Final Rule effective November 14, 2005 Annually, the PHA will randomly select at a minimum 20 percent of the units to be inspected. If more than 20 percent of the annual random sample of inspected contract units in a building fail, the PHA must reinspect 100 percent of the contract units in the building. Phoenix Park Refer to rule applying to “Unit inspection and housing quality standards” for Project-Based units approved under the Initial Guidance effective January 16, 2001 for Phoenix Park. The PHA must inspect each assisted unit annually. PB-22 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program Chapter 9 MOVES WITH CONTINUED ASSISTANCE Moves with Continued Assistance 1) Families who are overhoused or underhoused based on SHRA’s subsidy standard or families living in units with accessible features that the family does not need, but are needed by another eligible family must: a) The PHA will offer the family the opportunity to receive continued housing assistance in another appropriate sized PBV unit, or other project-based housing unit (such as a public housing unit) that is currently vacant or provide the family with a voucher to move: i. If the family remains eligible to participate in the PBV program, 1. The family must move to an appropriate PBV unit that the owner is willing to lease to them within 30 days after receiving notice that another unit has become available, or if the family is given a tenant-based voucher, the family must move within the term of the voucher or 2. The family will be evicted. ii. If the family is no longer eligible to participate in this PBV program (i.e., the family member with the active services contract for supportive services moves out, without good cause; good cause is defined as circumstances beyond the control of the supportive service recipient, such as death or hospitalization) the remaining family members must move: 1. To an Non-Excepted or unassisted unit, or 2. The PHA amends the contract removing this unit from the PBV program and substituting another unit, if possible. b) If the family has been leased for more than one year: i. And if the family remains eligible to participate in the PBV program, 1. The family must move to an appropriate unit within 30 days after receiving notice that another unit has become available, or 2. The family may request a tenant-based voucher, if tenant-based vouchers are available, and move ii. And if the family is no longer eligible to participate in this PBV program (i.e., the family member with the active services contract for supportive services moves out), the remaining family members must move 1. To an unassisted unit, or 2. To a PBV unit where the family would be eligible within 30 days of receiving notice of the unit’s availability, or 3. SHRA amends the contract removing this unit from the PBV program and substituting another unit, if possible. 2) A family may move with continued tenant-based assistance after the first year of occupancy, if tenant-based vouchers are available. The family must give the owner of the PB-23 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program PBV unit advanced written notice of intent to vacate (with a copy to the PHA) in accordance with the lease. 3) If a family assisted under the PBV program wishes to move after the initial 12 month lease, the PHA must offer the family the opportunity for tenant-based rental assistance. If a voucher or other comparable tenant-based rental assistance is not available upon termination of the lease, the family must be given priority to receive the next available opportunity for continued tenant-based assistance. 4) If the family terminates the PBV assisted lease before the end of one year, the family relinquishes the opportunity for continued tenant-based assistance. PB-24 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program Chapter 10 SUPPORTIVE SERVICES SUPPORTIVE SERVICES A family must have at least one member receiving at least one qualifying supportive services. Family participation is not required in medical or disability-related services, other than drug and alcohol treatment in the case of current abusers as a condition of living in an excepted unit, although such services may be offered. At the time of initial lease-up, if the family residing in an excepted unit, and receiving supportive services, successfully completes the supportive services requirement, the unit continues to count as an excepted unit for as long as the family resides in the unit. If a family, in an excepted unit, fails without good cause to complete the supportive services requirement, SHRA will take actions provided under 983.261(d), and the owner may terminate the lease in accordance with 983.257(c). At the time of initial lease execution between the family and the owner, the family and the Public Housing Authority (PHA) must sign a statement of family responsibility. The statement of family responsibility must contain all family obligations including the family’s requirement to participate in a supportive service. Failure by the family without good cause (incident beyond control of supportive services recipient i.e. deceased or hospitalization) to fulfill its supportive service obligation will be cause for SHRA to terminate assistance. If the unit at the time of such termination is an excepted unit, the exception continues to apply to the unit as long as the unit is made available to another qualifying family. Families must participate in at least one of the supportive services listed in an Individual Case Plan. A qualifying supportive service is any program, publicly or privately sponsored listed in the Individual Case Plan (ICP): • Employment and educational services • Practical living skills • Independent living skills • Credit repair • Employment readiness • Computer training Supportive services will be provided to the applicant in accordance to their ICP provided by the supportive service agency. PB-25 2010 Draft Administrative Plan Addendum #2 – Project-Based Housing Choice Voucher Program Monitoring of Supportive Service SHRA will monitor, annually, the excepted family’s continued participation in supportive services and take appropriate action regarding families that fail, without good cause, to complete their supportive services requirement. The participant will be required to provide annual documentation to SHRA stating they are currently participating in the supportive service(s) required in their ICP. The participant will be required to provide a letter of completion to SHRA, from the supportive service agency when ICP goals have been met. The participant is required to provide and complete all documentation requested by SHRA. SHRA will third party the supportive service documentation received from the participant with the supportive service agency If the participant fails to comply with any family obligations SHRA will: • Mail a Warning Notice. The participant will be give ten (10) days to provide verification the family is in compliance with family obligations. If family fails to comply; • Mail a Notice of Mandatory Tenant Conference. If the family fails to attend; • Mail a Notice of Proposed Termination of Project-Based Voucher Eligibility from and an Informal Hearing Request form. The participant will have fourteen (14) days to reply. SHRA will work with the supportive service agency to prevent termination of eligibility. If the participant does not become compliant the Project-Based eligibility for the participant will be terminated. PB-26 2010 Draft Administrative Plan