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HomeMy WebLinkAbout2003-04-15; Housing & Redevelopment Commission; 356 Exhibit 4; Carlsbad Public Housing Agency Annual Plan FY 2003Chapter 5 SUBSIDY STANDARDS [24 CFR 982.54(d)(9)] INTRODUCTION HUD guidelines require that HA's establish subsidy standards for the determination of Regular Certificate Tenancy, OFTO Tenancy, and Voucher bedroom size, and that such standards provide for a minimum commitment of subsidy while avoiding overcrowding. The standards used for the Regular Certificate Tenancy, OFTO Tenancy, or Voucher size must also be within the minimum unit size requirements of HUD's Housing Quality Standards. This Chapter explains the subsidy standards which will be used to determine the certificatelvoucher size for various sized families when they are selected from the waiting list, as well as the HA's procedures when a family's size changes, or a family selects a unit size that is different from the Certificate or Voucher. A. DETERMINING FAMILY UNIT (CERTIFICATENOUCHER) SIZE [24 CFR 982.4021 The HA does not determine who shares a bedroom/sleeping room, but there must be at least one person per bedroom on the Certificate or Voucher. The HA's subsidy . standards for determining certificatelvoucher 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 Certificate or Voucher, not the family's actual living arrangements. The unit size on the Certificate or 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 for the head of household spouse or co-head, if applicable. Another bedroom will be issued for each two members in the household regardless of sex, age, or relationship. Exceptions will be made for verifiable medical reasons and/or in the case of a requirement for a. live-in aide. Live-in aides will generally be provided a separate bedroom. No additional bedrooms are provided for the live-in aide's family. 1/1/99 AdminPlan 5-1 Foster children will be included in determining unit size only if they are anticipated to be in the unit for more than twelve (12) months. Space will be provided for a family member, who will be absent most of the time, such as a spouse who is ‘away in the military or an adult child who is attending college full time. Single person families shall be allocated a one bedroom. GUIDELINES FOR DETERMINING CERTIFICATENOUCHER SIZE CertificateNoucher Sizepersons in Household Persons in Household 0 Bedroom 1 2 1 Bedroom 1 4 2 Bedrooms 2 6 3 Bedrooms 4 8 4 Bedrooms 6 10 (Minimum #) {Maximum #) 6. EXCEPTIONS TO SUBSIDY STANDARDS (24 CFR 982.403(a) 8, (b) The HA shall grant exceptions from the subsidy standards if the family requests and the HA determines the exceptions are verifiable and justified by the relationship, age, sex, health or disability of family members, or other individual circumstances. The HA will grant an exception upon request as an accommodation for persons with disabilities. Circumstances may dictate a larger size than the subsidy standards permit when persons cannot share a bedroom because of a need, such as a: - Verified medical or health reason; or - Elderly persons or persons with disabilities who may require a live-in aide. Request for Exceptions to Subsidy Standards The family may request a larger sized certificate or voucher than indicated by the HA’s subsidy standards. Such request must be made in writing. The request must explain the need or justification for a larger bedroom. Documentation verifying the need or justification will be required. 1/1/99 Admielan 5 -2 The HA will not issue a larger certificate or voucher due to additions of family members other than by birth, adoption, marriage, or court-awarded custody. Requests based on health related reasons must be verified by a doctor or professional. HA.Error If the HA errs in the bedroom size designation, the family will be issued a Certificate or Voucher of the appropriate size so that the family is not penalized. Changes for Applicants The certificate/voucher size is determined prior to the briefing by comparing the family composition to the HA subsidy standards. If an applicant requires a change in the certificatelvoucher size, the above referenced guidelines will apply. Changes for Participants The members of the family residing in the unit must be approved by the HA. The family must obtain approval of any additional family member(s) before the new member occupies the unit except for additions by birth, marriage, adoption, or court-awarded custody, in which case the family must inform the HA within 15 days. The above referenced guidelines will apply. Underhoused and Overhoused Families If a unit does not meet HQS space standards due to an increase in family size, (unit too small), the HA will issue a new certificate or voucher and assist the family in locating a suitable unit. Certificate Families Only: - If a certificate family is occupying a unit which has more bedrooms. than allocated under the HA's subsidy standards, and the gross rent exceeds the FMWException rent for the family size under the HA's subsidy standards, the HA will issue the family a new certificate and assist the family in finding a suitable unit. - Certificate families who are under-occupying a unit as defined above will be given a minimum of sixty days before assistance is terminated. - The HA will also notify the family of the circumstances under which an exception will be granted, such as: 1/1/99 AdminPlan 5-3 If a family with a disability is underhoused in an accessible unit. If a family requires the additional bedroom because of a health problem which has been verified by the HA. .. 1/1/99 AdminPlan 5-4 Transfer Waiting List When a change in family composition requires the issuance of another size Certificate or Voucher, and funds are not available for the type of assistance4he family has, the family will be transferred to the other form of assistance. If funds are not available for either program, the family will be placed on a Transfer List. Families will be selected from the Transfer List before families are selected from the applicant waiting list. This assures that families who are already on the program are in the appropriate sized units. Families will be selected from this list when there is available funding, in the following sequence: I. A participant family (whose family composition has been approved by the ' HA) who requires a change in Certificate or Voucher size because they are living in a unit which is overcrowded according to Housing Quality Standards. 2. A participant family (whose family composition has been approved by the HA) who requires a change in Certificate or Voucher size under the Subsidy Standards, but not under Housing Quality Standards. 3. All others who require a transfer as determined by the HA. C. UNIT SIZE SELECTED The family may select a different size dwelling than that listed on the Certificate or Voucher. There are three criteria to consider: 1. Subsidy Limitation: For the Regular Certificate, OFT0 Tenancy, and Voucher programs, the HA will apply the FMR or Payment Standard for the smaller of (I) the bedroom size shown on the CertificateNoucher or (2) the size of the actual unit selected by the family. 2. Utility Allowance: The utility allowance used to calculate the gross rent is based on the actual size of the unit the family selects, regardless of the size authorized on the family's Certificate or Voucher. 1/1/99 AdminPlan 5-5 3. Housinq Quality Standards: The standards allow two persons per living/sleeping room and permit maximum occupancy levels (assuming a living room is used as a livinglsleeping area) as shown in the table below. The levels may be exceeded if a suitable room, in addition to bedrooms and living room, is used for sleeping. HQS GUIDELINES FOR UNIT SIZE SELECTED 0 Bedroom 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms 5 Bedrooms 6 Bedrooms Maximum # in Household 2 4 6 8 10 12 14 1 /1/99 AdminPlan 5 -6 Chapter 6 FACTORS RELATED TO TOTAL TENANT PAYMENT DETERMINATION [24 CFR Part 5, Subparts E and F; 982.153,982.317, 982.5511 INTRODUCTION '. The HA will use the methods as set forth in this Plan to vem and determine that family income at admission and reexamination is correct. 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 the 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 HA's policies in this Chapter address those areas which allow the HA discretion to define terms and to develop standards in order to assure consistent application of the various factors that relate to the determination of TTP. A. INCOME AND ALLOWANCES [24 CFR 5.6093 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 which 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 12 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 which has been excluded by HUD. Annual income is used to determine whether or not applicants are within the applicable income limits. Adiusted Income is defined as the Annual income minus any HUD allowable expenses and deductions. .. 1/1/99 AdminPlan 6- 1 HUD has five allowable deductions from Annual Income: 1. 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 disabled. 2. Elderly/Disabled Allowance: $400 per family for families whose head or spouse is 62 or over or disabled. 3. Allowable Medical Expenses: Deducted for all family members of an eligible elderly/disabled family. 4. Child Care Expenses: Deducted for the care of children under 13 when child care is necessary to allow an adult member to work, attend school, or actively seek employment. 5. 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. "Minimum Rent" and Minimum Family Contribution "Minimum rent" in the Regular Certificate and OFT0 Tenancy program is $50. Minimum rent includes the combined amount (TTP) a family pays towards rent and/or utilities. Minimum family contribution in the voucher program is $50. Exceptions to "Minimum Rent" The HA, upon request from the participant, may provide an exception to the minimum rent requirement for hardship circumstances. Exceptions for financial hardship may be granted for the following situations: I. 2. 3. 4. 5. the family has lost eligibility for or is awaiting an eligibility determination for a Federal, State, or local assistance program; the family would be evicted as a result of the imposition of the minimum rent requirement; the income of the family has decreased because of changed circumstance, including loss of employment; a death in the family has occurred; and other circumstances determined by the HA or HUD. 1/1/99 AdminPlan 6-2 The exception will be granted during the time that the hardship exists. If it is determined that a hardship no longer exists, the HA will impose the minimum rent. 1/1/99 AdminPlan 6-3 B. DEFINITION OF TEMPORARILY OR PERMANENTLY ABSENT [24 CFR 982.54(d)(I 0), 982.31 7, 982.5511 The HA must compute all applicable income of every family member who is on the lease, including those who are temporarily absent. In addition, the HA must count the income of the spouse or the head of the household if that person is temporarily absent, even if that person is not on the lease. Temporarily absent is defined as away from the unit for more than 60 (sixty) days. Income of persons permanently absent will not be counted. If the spouse is temporarily absent and in the military, all military pay and allowances (except hazardous duty pay when exposed to hostile fire and any other exceptions to military pay HUD may define) is counted as income. It is the responsibility of the head of household to report changes in family composition. The HA will evaluate absences from the unit using this policy. Absence of Any Member Any member of the household will be considered permanently absent if s/he is away from the unit for six consecutive months except as otherwise provided in this Chapter. 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 HA will seek advice from a reliable qualified source as to the likelihood and timing of their return. If the verification indicates that the family member will be permanently confined to a nursing home, the family member will be considered permanently absent. If the verification indicates that the family member will return in less than 90 consecutive days, the family member will not be considered permanently absent. If the person who is determined to be permanently absent is the sole member of the household, assistance will be terminated in accordance with the HA's "Absence of Entire Family" policy. 1/1/99 AdminPlan 6-4 Absence Due to Full-time Student Status Full time students who attend school away from the home'will be treated in the following manner: A student (other than head of household or spouse) who attends school away from home but lives with the family during school recesses may, at the family's choice, be considered either temporarily or permanently absent. If the family decides that the member is permanently absent, income of that member will not be included in total household income, the member will not be included on the lease, and the member will not be included for determination of CertificateNoucher size. However if the member is considered temporarily absent, the member's income and assets will be considered in determining total household income and the member will be included when determining the subsidy standard for the household. Absence due to. Incarceration if the sole member is incarcerated for more than 90 consecutive days, s/he will be considered permanently absent. Any member of the household, other than the sole member, will be considered permanently absent if s/he is incarcerated for six consecutive months. The HA will determine if the reason for incarceration is for drug-related or violent criminal activity. 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 HA 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 of months from the date of removal of the childhen, the CertificateNoucher size will be reduced. If all children are removed from. the home permanently, the certificate or voucher size will be reduced in accordance with the HA's subsidy standards. 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. In cases where the family has moved out of the unit, the HA will terminate assistance in accordance with appropriate termination procedures contained in this Plan. 1/1/99 AdminPlan 6-5 Families are required both to notify the HA before they move out of a unit and to give the HA information about any family absence from the unit. Families must notify the HA if they are going to be absent from the unit for more than 30 (thirty) consecutive days. If the entire family is absent from the assisted unit for more than 90 (ninety) consecutive days, the unit will be considered to be vacated and the assistance will be terminated. If it is determined that the family is absent from the unit, the HA will not continue assistance payments. HUD regulations require the HA to terminate assistance if the entire family is absent from the unit for a period of more than 180 consecutive calendar days. "Absence" means that no family member is residing in the unit. In order to determine if the family is absent from the unit, the HA may: Write letters to the family at the unit; Telephone the family at the unit; Interview neighbors; Verify if utilities are in service; or Check with the post office. 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 calendar days limit. If the absence which resulted in termination of assistance was due to a person's disability, and the HA can verify that the person was unable to notify the HA in accordance with the family's responsibilities, and if funding is available, the HA may reinstate the family as an accommodation if requested by the family. Caretaker for Children If neither parent remains in the household and the appropriate agency has determined that another adult is to be brought into the assisted unit to care for the children for an indefinite period, the HA will treat that adult as a visitor for the first six months. 1 /1/99 AdminPlan 6-6 If by the end of that period, court-awarded custody or legal guardianship has been awarded to the caretaker, the Certificate or Voucher will be transferred to the caretaker. If the appropriate agency cannot confirm the guardianship status of the caretaker, the HA will review the status at 90 day intervals. If custody or legal guardianship has not been awarded by the court, but the action is in process, the HA will secure verification from social services staff or the attorney as to the status. The caretaker will. be allowed to remain in the unit, as a visitor, until a determination of custody is made. When the HA approves a person to reside in the unit as caretaker for the children, the income should be counted pending a final disposition. The HA will work with the appropriate service agencies and the landlord to provide a smooth transition in these ' cases. If a member of the household is subject to a court order that restricts him/her from the home for more than six months, the person will be considered permanently absent. Visitors Any adult not included on the HUD 50058 who has been in the unit more than 60 (sixty) consecutive days without HA approval, or a total of 180 days in a 12-month period, will be considered to be living in the unit as an unauthorized household member. Absence of evidence of any other address will be considered verification that the visitor is a member of the household. Statements from the landlord will be considered in making the determination. Use of the unit address as the visitor's current residence for any purpose that is not explicitly temporary shall be construed as permanent residence. 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 HA will terminate assistance since prior approval was not requested for the addition. Minors and college students who were part of the family but who now live away from home during the school year and are no longer on the lease may visit for up to 120 days per year without being considered a member of the household. 1/1/99 AdminPlan 6-7 In a joint custody arrangement, if the minor is in the household less than 180 days per year, the minor will be considered to be an eligible visitor and not a family member. 1/1/99 AdminPlan 6-8 Reportinn Additions to Owner and HA Reporting changes in household composition to the HA is both a HUD and an HA requirement. The family obligations require the family to request HA approval to add any other family member as an occupant of the unit and to inform the HA of the birth, adoption or court-awarded custody of a child. The family must request prior approval of additional household members in writing. If the family does not obtain prior written approval from the HA, any person the family has permitted to move in will be considered an unauthorized household member. In the event that a visitor continues to reside in the unit after the maximum allowable time, the family must report it to the HA in writing within 15 (fifteen) days of the maximum allowable time. Families are required to report any additions to the household in writing to the HA within 15 (fifteen) days of the move-in date. 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. Reporting Absences to the HA Reporting changes in household composition is both a HUD and an HA requirement. If . a family member leaves the household, the family must report this change to the HA, in writing, within 15 (fifteen) days of the change and certify as to whether the member is temporarily absent or permanently absent. The HA will conduct an interim evaluation for changes which affect the Total Tenant Payment in accordance with the interim policy. C. AVERAGING INCOME When Annual Income cannot be anticipated for a full twelve months, the HA may: Average known sources of income that'vary to compute an annual income, or Annualize current income and conduct an interim reexamination if income changes. 1/1/99 AdminPlan 6-9 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 by averaging, an estimate can be made for those families whose income fluctuates from month to month, this estimate will be used so as to reduce the number of interim adjustments. The method used depends on the regularity, source and type of income. 1/1/99 AdminPlan 6-10 D. MINIMUM INCOME There is no minimum income requirement. Families who report zero income are required to complete a written certification every 90 days. E. INCOME OF PERSON PERMANENTLY CONFINED TO NURSING HOME [24 CFR 982.%(d)( 1 O)] If a family member is permanently confined to a hospital or nursing home and there is a family member left in the household, the HA will calculate the income by using the following methodology and use the income figure which would result in a lower payment by the family: 1. (a) Exclude the income of the person permanently confined. to the nursing home and give the family no deductions for medical expenses of the confined family member. (b) Include the income of the person permanently confined to the nursing home and give the family the medical deductions allowable on behalf of the person in the nursing home. (c) Exclude the income and deductions of the member if hidher income goes directly to the facility. F. REGULAR CONTRIBUTIONS AND GIFTS [24 CFR 5.6091 Regular contributions and gifts received from persons outside the household are counted as income for calculation of the Total Tenant Payment. Any contribution or gift received every month or more frequently will be considered a "regular" contribution or gift, unless the amount is less than $100 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 Chapter 7, "Verification Procedures," for further definition.) If the family's expenses exceed its known income, the HA will question the family about contributions and gifts. 1/1/99 AdminPlan 6-1 1 G. ALIMONY AND CHILD SUPPORT [24 CFR 5.6091 Regular alimony and child support payments are counted as income for calculation of Total Tenant Payment. If the amount of child support or alimony received is less than the amount awarded by the court, the HA will use the amount awarded by the court unless the family can verify that they are not receiving the full amount and verification is provided. The HA will accept as verification that the family is receiving an amount less that the award if: The HA receives verification from the agency responsible for enforcement or collection. The family furnishes documentation of child support or alimony collection action filed through a child support enforcementkollection 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. The family provides copies of checks received. H. LUMP-SUM RECEIPTS [24 CFR 5.6091 Lump-sum additions to Family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains, and settlement for personal or property losses, are not included in income but may be included in assets. Lump-sum payments caused by delays in processing periodic payments such as unemployment or welfare assistance are counted as income. Lump sum payments from Social Security or SSI are excluded from income, but any amount remaining will be considered an asset. Deferred periodic payments which have accumulated due to a dispute will be treated the same as periodic payments which are deferred due to delays in processing. In order to determine amount of retroactive tenant rent that the family Owes as a result of the lump sum receipt: The HA uses a calculation method which calculates retroactively or prospectively depending on the circumstances. 1/1/99 AdminPlan 6-12 The HA will calculate prospectively if the family reported the payment within 15 (fifteen) and retroactively to date of receipt if the receipt was not reported within that time frame. 1/1/99 AdminPlan 6-13 Prospective Calculation Methodology If the payment is reported on a timely basis, the calculation will be done prospectively and will result in an interim adjustment calculated as follows: The entire lumplsum payment will be added to the annual income at the time of the interim. The lump sum will be added in the same way for any interims which occur prior to the next annual recertification. Retroactive Calculation Methodoloqy I. The HA will go back to the date the lumplsum payment was received, or to the date of admission, whichever is closer. 2. The HA will determine the amount of income for each certification period, including the lump sum, and recalculate the tenant rent for each certification period .to determine the amount due the HA. At the HA's option, the HA may enter into a Repayment Agreement with the family. The amount owed by the family is a collectible debt even if the family becomes unassisted. Attorney Fees The family's attorney fees may be deducted from lump-sum payments when computing annual income if the attorney's efforts have recovered a lumplsum compensation, and the recovery paid to the family does not include an additional amount in full satisfaction of the attorney fees. 1. CONTRIBUTIONS TO RETIREMENT FUNDS - ASSETS (24 CFR 5.603(d)] Contributions to company retiremenvpension funds are handled as follows: 1. While an individual is employed, count as assets only amounts the family can withdraw without retiring or terminating employment. 2. After retirement or termination of employment, count any amount the employee elects to receive as a lump sum. 1/1/99 AdminPlan 6-1 4 .. 6-15 1 /1/99 AdminPlan J. ASSETS DISPOSED OF FOR LESS THAN FAIR MARKET VALUE [24 CFR 5.603(d)(3)] The HA must count assets 'disposed of for less than fair market value during the two years preceding certification or reexamination. The HA 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. K. CHILD CARE EXPENSES [24 CFR 5.6031 Child care expenses for children under 13 may be deducted from annual income if they enable an adult to work or attend school full time, or to actively seek employment. In the case of a child attending private school, only after-hours care can be counted as child care expenses. Child care expenses cannot be allowed as a deduction if there is an adult household member capable of caring for the child who can provide the child care. Examples of those adult members who would be considered unable to care for the child include: The abuser in a documented child abuse situation, or A person with disabilities or older person unable to take care of a small child, as verified by a reliable knowledgeable source. Allowability of deductions for child care expenses is based on the following guidelines: Child care to work: The maximum child care 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. Child care for school: The number of hours claimed for child care may not exceed the number of hours the family member is attending school, including reasonable travel time to and from school. 1 /1/99 AdminPlan '6- 16 L. MEDICAL EXPENSES [24 CFR 5.609(a)(2), 5.6031 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.Nonprescription medicines will be counted toward medical expenses for families who qualify if the family furnishes legible receipts. Accupressure, acupuncture and related herbal medicines, and chiropractic services will be considered allowable medical expenses. M. PRORATION OF ASSISTANCE FOR "MIXED" FAMILIES [24 CFR 5.5201 Applicability Proration of assistance must be offered to any "mixed" applicant or participant family. A "mixed" family is one that includes at least 0ne'U.S. citizen or eligible immigrant and any number of ineligible members. "Mixed" families that were participants on June 19, 1995, and that do not qualify for continued assistance must be offered prorated assistance. (See Chapter 12, "Recertifications.") 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. Total Tenant Payment is the gross rent minus the prorated assistance. N. REDUCTION IN BENEFITS If the family's benefits, such as social security, SSI or TANF (CALWorks), are reduced through no fault of the family, the HA will use the net amount of the benefit. If the family's 'benefits were reduced due to family error, omission, or misrepresentations, the HA will use the gross amount of the benefit that the family is entitled. 1/1/99 AdminPlan 6-17 If the family’s CALWorks benefits were reduced due to non-compliance with an economic self-sufficiency program, work activities requirement, or fraud, the HA will use the gross amount of the benefit that the family would otherwise be eligible to receive. 1/1/99 AdminPlan 6-1 8 0. UTILITY ALLOWANCE AND UTILITY REIMBURSEMENT PAYMENTS [24 CFR 982.1 53, 982.51 71 The same Utility Allowance Schedule is used for Regular Certificate Tenancies, OFT0 Tenancies, and Vouchers. The HA will maintain an up-to-date utility allowance schedule. 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. An allowance for tenant-paid air conditioning will be provided in those cases where the majority of housing units in the market have central air conditioning or are wired for tenant installed air conditioners. A tenant-paid air conditioning allowance will not be provided throughout our jurisdiction. The HA will review the utility allowance schedule annually. If the review finds a utility rate has changed by 10 percent 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 Certificate or Voucher. The utility allowance is based on the actual unit size selected. Where families provide their own range and refrigerator, the HA will establish an allowance adequate for the family to purchase or rent a range or refrigerator, even if the family already owns either appliance. Allowances for ranges and refrigerators will be based on the lesser of the cost of leasing or purchasing the appropriate appliance over a 36 (thirty-six) month period. Where the Utility Allowance exceeds the family’s Total Tenant Payment, the HA will provide a Utility Reimbursement Payment for the family each month. The check will be made out directly to the tenant. 1 /1/99 AdminPlan 6-1 9 Chapter 7 VERIFICATION PROCEDURES [24 CFR Part 5, Subparts B, D, E and F; 982.1081 INTRODUCTION" HUD regulations require that the factors of eligibility and Total Tenant Payment be verified by the HA. HA staff will obtain written verification from independent sources whenever possible and will document tenant files whenever third party verifications are not possible. Applicants and program participants must provide true and complete information to the HA whenever information is requested. The HA's verification requirements are designed to maintain program integrity. This Chapter explains the HA's procedures and standards for verification of preferences, income,. assets, allowable deductions, family status, and changes in family composition. The HA will obtain proper authorization from the family before requesting information from independent sources. A. METHODS OF VERIFICATION AND TIME ALLOWED [24 CFR 982.5161 The HA will verify information through the four methods of verification acceptable to HUD in the following order: 1. Third-party Written 2. Third-party Oral 3. Review of Documents 4. Certification/Self-Declaration The HA will allow two weeks for return of third-party verifications and two weeks to obtain other types of verifications before going to the next method. The HA will document the file as to why third party written verification was not used. For applicants, verifications may not be more than 60 days old at the time of CertificateNoucher issuance. For participants, they are valid for 120 days from date of receipt. 1/1/99 AdminPlan .7-1 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. 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 HA will accept verifications in the form of computerized printouts delivered by the family from the following agencies: Social Security Administration Veterans Administration Department of Health and Human Services Employment and Development Department City or County Courts Financial Institutions Educational Institutions The HA may send requests for third party written verifications to the source regardless of whether the family provides a computerized printout. Third-party Oral Verification Oral third-party verification will be used when written third-party verification is delayed or not possible. 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 oral third party verification is not available, the HA will compare the information to any documents provided by the Family. If provided by telephone, the HA must originate the call. Review of 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 three weeks, the HA will notate the file accordingly and utilize documents provided by the family as the primary source if the documents provide complete information. 1/1/99 AhinPlan 7-2 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. 1/1/99 AdminPlan 7-3 The HA, will accept the following documents from the family provided that the document is such that tampering would be easily noted: Printed wage stubs Computer printlouts from the employer Signed letters (provided that the information is confirmed by phone) ' Other documents noted in this Chapter as acceptable verification The HA will accept faxed documents. The HA will accept photo copies. If third-party verification is received after documents have been accepted as provisional verification, and there is a discrepancy, the HA will utilize the third party verification. The HA will not delay the processing of an application beyond 21 days because a third party information provider does not return the verification in a timely manner. Self-Certification/Self-Declaration 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 notarized statement or certification statement under penalty of perjury. B- - RELEASE OF INFORMATION 124 CFR 5.2301 The family 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 InformationlPrivacy Act Notice. 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 because it is a family obligation to supply any information and to sign consent forms requested by the HA or HUD. 1/1/99 AdminPlan 7-4 C. COMPUTER MATCHING Where allowed by HUD andlor other State or local agencies, computer matching will be done. The HA will utilize the HUD established Internet format, Tenant Rental Assistance Characteristics System (TRACS) for obtaining Social Security benefits, Supplemental Security Income, benefit history and tenant income discrepancy reports from the Social Security Administration. D. ITEMS TO BE VERIFIED [24 CFR 982.5161 All income not specifically excluded by the regulations. Full-time student status including High School students who are 18 or over. Current assets including assets disposed of for less than fair market value in preceding two years. Child care expense where it allows an adult family member to be employed or to further hidher education. Total medical expenses of all family member 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 over 6 years of age or older who have been issued a social security number. "Preference" status FamiliallMarital status when needed for head or spouse definition. 1/1/99 AdminPlan 7-5 E. VERIFICATION OF INCOME [24 CFR 982.5161 This section defines the methods the HA will use to verify various types of income. Employment Income Verification forms request the employer to specify the: 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: 1. Employment verification form completed by the employer. 2. Check stubs or earning statements, which indicate the employee's gross pay, frequency of pay or year to date earnings. 3. W-2 forms plus income tax return forms. 4. Self-certifications or income tax returns signed by the family may be used for verifying self-employment income, or income from tips and other gratuities. Applicants and program participants may be requested 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 HA will require the most recent federal income tax statements. Where doubt regarding income ,exists, a referral to IRS for confirmation will be made on a case-by-case basis. 1/1/99 AdminPlan 7-6 Social Security, Pensions, Supplementary Security Income (SSI), Disability Income Acceptable methods of verification include: 1. Benefit verification form completed by agency providing the benefits. 2. Award or benefit notification letters prepared and signed by the providing agency. 3. Computer report electronically obtained or in hard copy. Unemployment Compensation Acceptable methods of verification include: 1. Verification form completed by the unemployment compensation agency. 2. Computer printouts from unemployment office stating payment dates and amounts. 3. Payment stubs. Welfare Payments or General Assistance Acceptable methods of verification include, in this order: 1. HA verification form completed by payment provider. 2. Written statement from payment provider indicating the amount of grantlpayment, start date of payments, and anticipated changes in payment in the next 12 months. 3. Computergenerated Notice of Action. 4. Alimony or Child Support Payments Acceptable methods of verification include: 1. Copy of a separation or settlement agreement or a divorce decree stating amount and type of support and payment schedules. 2. A notarized letter from the person paying the support. 1/1/99 AdminPlan 7-7 3. Copy of latest check andlor payment stubs from Court Trustee. HA must record the date, amount, and number of the check. If payments are irregular, the family must provide either: A statement from the agency responsible for enforcing payments to show that the family has filed for enforcement. A notarized affidavit from the family indicating the amount(s) received. A welfare notice of action showing amounts received by the welfare agency for child support. A written statement from an attorney or the court 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 HA will view IRS and financial documents from prior years and use this information to anticipate the income for the next 12 months. Acceptable methods of verification include: 1. 2. 3. 4. IRS Form 1040, including: 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 unaudited financial statement(s) of the business. Documents such as manifests, appointment books, cash books, 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 12 months. -The family will be advised to maintain these documents in the future if they are not available. If none of the above are available, the family may provide a self-certification as to net income realized from the business during previous years or anticipated net income for the coming year. 1/1/99 AdminPlan 7-8 Child Care Business If an applicantlparticipant is operating a licensed day care business, income will be verified as with any other business. If the applicant/participant is operating a "cash" operation (which may or may not be licensed), the HA will require that the applicantlparticipant provide a log with the information about customers and amount being paid. If the family has filed a tax return, the family will be required to provide it. 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 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. The HA will request information from the State Employment Development Department. The HA may run a credit report if information is received that indicates the family has an unreported income source. The HA will require the family to document how they are meeting their basic needs. 1/1/99 AdminPlan 7-9 Full-time Student Status Only the first $480 of the earned income of full time students, other than head, co-head, or spouse, will be counted towards family income. Financial aid, scholarships and grants received by full time students is not counted towards family income. Verification of full time student status includes: 1. Written verification from the registrar's office or other school official. 2. School records indicating enrollment for sufficient number of credits to be considered a full-time student by the educational institution. F. INCOME FROM ASSETS 124 CFR 982.5161 Acceptable methods of verification include: Savings Account Interest Income and Dividends Will be verified by: 1. Account statements, passbooks, certificates of deposit, or HA verification forms completed by the financial institution. 2. Broker's statements showing value of stocks or bonds and the earnings credited the family. Earnings can be obtained from current newspaper quotations or oral broker's verification. 3. IRS Form 1099 from the financial institution, provided that the HA must adjust the information to project earnings expected for the next 12 months. Interest Income from Mortqaqes or Similar Arrangements 1. A letter from an accountant, attorney, real estate broker, the buyer, or a financial institution stating interest due for next 12 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.) 2. Amortization schedule showing interest for the 12 months following the effective date of the certification or recertification. 1/1/99 AdminPlan 7-10 .. Net Rental Income from Property Owned by Family 1. IRS Form 1040 with Schedule .. E (Rental Income). 2. Copies of latest rent receipts, leases, or other documentation of rent amounts. 3. 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. .. 4. If none of the above are available, the family may provide the lessee's written statement verifying rent payments to the family and family's self- certification as to net income realized. G. VERIFICATION OF ASSETS Family Assets The HA will require the necessary information to determine the current cash value, (the net amount the family would receive if the asset is converted to cash). 1. 2. 3. 4. 5. 6. 7. 8. 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 tax statements if the approximate current market value can be deduced from assessment. Financial statements for business assets. 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. .. .. .. 1/1/99 AdminPlan '7- 1 1 Assets Disposed of for Less than Fair 'Market Value (FMV) During Two Years Preceding Effective Date of Certification or Recertification 1. For all Certifications and Recertifications, the HA' will obtain the Family's certification as to whether any member has disposed of assets for less than fair market value during the two years preceding the effective date of the certification or recertification. 2. If the family certifies that they have disposed of assets for less than fair market value, 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. H. VERIFICATION OF ALLOWABLE DEDUCTIONS FROM INCOME [24 CFR 982.5161 Child Care Expenses 1. 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. 2. Verifications must specify the child care provider's name, address, telephone 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. 3. Family's certification as to whether any of those payments have been or will be paid or reimbursed by outside sources. Medical Expenses Fatnilies who 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. All expense claims will be verified by one or more of the methods listed below: 1. 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. 1 4/99 AdminPlan 7-12 2. Written confirmation by the insurance company or employer of health insurance premiums to be paid by the family. 1/1/99 AdminPlan 7-1 3 3. 4. 5. 6. 7. 8. Written confirmation from the Social Security Administration of Medicare premiums to be paid by the family over the next 12 months. A computer printout will be accepted. For attendant care: a. A reliable, 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. b. 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 12 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 12 months. Receipts or other record of medical expenses incurred during the past 12 months that can be used to anticipate future medical expenses. HA may use this approach for "general medical expenses" such as non-prescription drugs and regular visits to doctors or dentists, but not for one time, nonrecurring expenses from the previous year. The HA 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 [24 CFR 5.61 1 (c)] 1. In All Cases: (a) 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. 1/1/99 Adminplan 7- 14 (b) Family's certification as to whether they receive reimbursement for any of the expenses of disability assistance .and the amount of any reimbursement received. 1/1/99 AdminPlan 7-1 5 2. Attendant Care: (a) Attendant's written certification of amount received from the family, frequency of receipt, and hours of care provided. (b) Certification of family and attendant and/or' copies of canceled checks family used to make payments. 3. Auxiliary Apparatus: (a) Receipts for purchases or proof of monthly payments and maintenance expenses for auxiliary apparatus. (b) In the case where the person with disabilities is employed, a statement from the employer that the auxiliary apparatus is necessary for employment. 1. VERIFYING NON-FINANCIAL FACTORS [24 CFR 982.1 53(b)(15)] Verification of Leqal Identity In order to prevent program abuse, the HA 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. Certificate of Birth, naturalization papers Church issued baptismal certificate Current, valid Driver's license U.S. military discharge (DD 214) U.S. military Identification Card U.S. passport Voter's registration Company/agency Identification Card Department of Motor Vehicles Identification Card Veterans Administration Identification Card Health and Human Services Identification Card 1/1/99 AdminPlan 7-16 Documents considered acceptable for the verification of legal identity for minors may be one or more of the following: Certificate of Birth Adoption papers Custody agreement Health and Human Services Identification Card School records If none of these documents can be provided, a third party who knows the person may, at the HA's discretion, provide a notarized statement verifying the persons identity. Verification of Marital Status Verification of divorce status will be a certified'copy of the divorce decree, signed by a Court Officer. Verification of a separation may be a copy of court-ordered maintenance or other records. Verification of marriage status is a marriage certificate. Familial Relationships 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 verification will be required, if applicable: Verification of guardianship is: Court-ordered assignment Affidavit of parent Verification from social services agency School records 1/1/99 AdminPlan 7-17 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 HA will consider any of the following as verification: 1. 2. 3. 4. 5. 6. 7. Husband or wife institutes divorce action. Husband or wife institutes legal separation. Order of protection/restraining order obtained by one family member against another. Proof of another home address, such as utility bills, change of address filed with the Post Office,, canceled checks for rent, drivers license, or lease or rental agreement. Statements from other agencies such as social services or a written statement from the landlord 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 prison should be obtained stating how long they will be incarcerated. If no other proof can be provided, the HA may accept a self-certification from .the head of household or the spouseko-head, if the head of household is the absent member. Verification of Change in Family Composition The HA may verify changes in family composition (either reported or unreported) through letters, telephone calls, utility records, owners, credit data, school or DMV records, and other sources. Verification of Disability Verification of disability must 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, rehab specialist, or licensed social worker, using the HUD language as the verification format. 1/1/99 AdminPlan 7-1 8 Verification of Citizenship/Eligible Immigrant 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 their 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 HA hearing is pending. Citizens or Nationals of the United States are required to sign a declaration under penalty of perjury. The HA will not require citizens to provide documentation of citizenship. Eligible lmminrants who were Participants and 62 or over on June 1gt ' 1995, 'are required to sign a deciaration 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 HA verifies the status through the INS SAVE system. If this primary verification fails to verify status, the HA must request within ten days that the INS conduct a manual search. Ineligible familv 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 family fails to provide and sign as required, the family may be denied or terminated for failure to provide required information. 1/1/99 AdminPlan 7-19 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 for final eligibility determination. For family members added after other members have been verified, the verification occurs at the first recertification after the new member moves 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 HA does not supply the documents, the HA must conduct the determination. Extensions of Time to Provide Documents The HA will grant an extension of 30 days for families to submit evidence of eligible immigrant status. Acceptable Documents of Eliqible Immigration The regulations stipulate that only the following documents are acceptable unless changes are published in the Federal Register. Resident Alien Card (1-551 ) Alien Registration Receipt Card (1-1 51 ) Arrival-Departure Record (1-94) Temporary Resident Card (1-688) Employment Authorization Card (I-688B) Receipt issued by the INS for issuance of replacement of any of the above documents that shows individual's entitlement 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. If the HA determines that a family member has knowingly permitted another individual who is not eligible for assistance to reside permanently in the family's unit, the family's assistance will be terminated for 24 months, unless the ineligible individual has already been considered in prorating the family's assistance. 1/1/99 AdminPlan 7-20 Verification of Social Security Numbers [24 CFR 5.2161 Social security numbers must be provided as a condition of eligibility for all family members age six and over if they have been issued a number. Verification of Social Security numbers will be done through a Social Security Card issued by the Social Security Administration. If a family member cannot produce a Social Security Card, only the documents listed below showing his or her Social Security Number may be used for verification. The family is also required to certify in writing that the document(s) submitted in lieu of the Social Security Card information provided is/are complete and accurate: Identification card issued by a Federal, State or local agency Identification card issued by a medical insurance company or provider (including Medicare and Medicaid) IRS Form 1099 Benefit award letters from government agencies Retirement benefit letter Verification of benefits or Social Security Number from Social Security Administration New family members ages six and older will be required to produce their Social Security Card or provide the substitute documentation described above together with their certification that the substitute information provided is complete and accurate. This information is to be provided at the time the change in family composition is reported to the HA. If an applicant or participant is able to disclose the Social Security Number but cannot meet the documentation requirements, the applicant or participant must sign a certification to that effect provided by the HA. The applicantlparticipant or family member will have an additional 30 days to provide proof of the Social Security Number. If they fail to provide this documentation, the family's assistance will be terminated. In the case of an individual at least 62 years of age, the HA may grant an extension for an additional 60 days to a tatal of 120 days. If, at the end of this time, the elderly individual has not provided documentation, the family's assistance will be terminated. If the family member states they have not been issued a number, the family member will be required to sign a certification to this effect. 1 11/99 AdminPlan 7-2 1 1/1/99 AdminPlan 7-22 Medical Need for Larger Unit A written certification that a larger unit is necessary must be obtained from a reliable, knowledgeable professional. J. VERIFICATION OF WAITING LIST PREFERENCES [24 CFR 5.410-5.4301 Single Person Displaced by Government Action Person who claims they are being or have been displaced due to a government action: written verification by the displacing unit or agency of government, or by. a service agency such as the Red Cross. Person who claims, they have been or are about to be displaced to avoid reprisals for providing information to assist police in a criminal investigation. Certification of threat assessment by a law enforcement agency Oral or written recommendation from law enforcement agency or HUD. Person who claims to be displaced by hate crimes. Written statement from law enforcement agency, HUD, Fair Housing or other agency responsible for nondiscrimination advocacy. Displacement by HUD disposition of a project: .Written verification from HUD. Additional Local Preferences (formerly used as Ranking Preferences for Federal preference holders) Residency Preference: Applicants who either live or work in Carlsbad. To qualify for residency preference, the applicant must have lived in Carlsbad for a minimum of 90 days prior to being pulled from the waiting list. Applicants who work in Carlsbad, must have worked in Carlsbad for a minimum of 90 days and work a minimum average of 20 hours per week. The minimum hours worked may be waived to accommodate a person with disabilities .. 1/1/99 AdminPlan 7-23 In order to verify that an applicant qualifies for Residency Preference, the HA will require documentation that the applicant meets the eligibility criteria. Such documentation may include: rent receipts, leases, utility bills, employer or agency records, school records, drivers licenses, voters registration records, bank records, notarized statement from household with whom the family is residing. Median Income at or below 30% of the Median Income Preference: Applicants whose income is at or below 30% of the median income will have preference over applicants whose income is above 30% of the median income. In order to verify that an applicant qualifies for Income at or below 30% of the area median income, the HA will require disclosure and documentation of all includable income sources and assets for the applicant family. Veteran Preference: A head of household or spouse who has been discharged from military service under honorable or general (except dishonorable) conditions, or a spouse of a deceased veteran will have preference over non- veterans. The HA will require US. government documents which indicate that the applicant qualifies under the above definition. Disability Preference: This preference is available for families with a member who has a disability as defined in this Plan. The HA will require appropriate documentation from a knowledgeable professional. The HA will not inquire as to the nature of the disability except as to verify necessity for accessible unit. Award letter or other proof of eligibility for Social Security Disability or Supplemental Security Income will be acceptable. Elderly Preference: A head of household or spouse who is at least 62 years old. The HA will require documents which indicate that the applicant qualifies under the above definition. Family Preference: Two or more persons who intend to share residency whose income and resources are available to meet the family’s needs and who have a history as a family unit or show evidence of a stable family relationship. Or a single person who is pregnant. 7-24 111 /99 AdminPlan The HA will require documents which indicate that the applicant qualifies under the above definition. 1/1/99 AdminPlan 7-25 Chapter 8 CERTIFICATENOUCHER ISSUANCE AND BRIEFINGS [24 CFR 982.301,982.302] INTRODUCTION The HA's goals and objectives are designed to assure that families selected to participate are equipped with the tools necessary to locate an acceptable 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 HA will conduct a mandatory briefing to ensure that families know how the program works. The briefing will provide a broad description of owner and family responsibilities, HA procedures, and how to lease a unit. The family " will also receive a briefing packet which 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. ISSUANCE OF CERTIFICATESNOUCHERS [24 CFR 982.204(d), 982.54(d)(2)] When funding is available, the HA will issue Certificates and Vouchers to applicants whose eligibility has been determined. The issuance of Certificates and Vouchers must be within the dollar limitations set by the Consolidated Annual Contributions Contract (CACC) budget. The number of Certificates and Vouchers issued must ensure that the HA stays as close as possible to 100 percent lease-up. The HA performs a monthly calculation electronically and manually to determine whether applications can be processed, the number of Certificates and Vouchers that can be issued, and to what extent the HA can over-issue (issue more Certificates or Vouchers than the budget allows). The HA may over-issue Certificates or Vouchers only to the extent necessary to meet leasing goals. All Certificates and Vouchers which are over-issued must be honored. If the HA finds it is-over-leased, it must adjust future issuance of Certificates or Vouchers in order not to exceed the Annual Budget Authority (ABA) budget limitations over the fiscal year. 1/1/99 AdminPlan 8-1 B. BRIEFING TYPES AND REQUIRED ATTENDANCE [24 CFR 982.3011 Initial Applicant Briefinq 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 and individual meetings depending on numbers briefed and special accommodations. Families who attend group briefings and still have the need for individual assistance will be referred to a Housing Representative. Briefings will be conducted in English and Spanish. The purpose of the briefing is to explain the documents in the CertificateNoucher holder's packet to families so that they are fully informed about the program. This will enable them to utilize the program to their advantage, and it will prepare them to discuss it with potential owners and property managers. The HA will not issue' a Certificate or Voucher to a family unless the household representative has attended a briefing and signed the Certificate or 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 three scheduled briefings, without prior notification and approval of the HA, may be denied admission based on failure to supply information needed for certification. The HA will conduct individual briefings for families with disabilities or other special needs 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 packets for both the Certificate and Voucher programs will comply with all HUD requirements. The HA also includes other information and materials which are not required by HUD. The family is provided with the following information and materials: 1. The term of the certificate or voucher, and the HA policy for requesting extensions to the term of the ce'rtificate or voucher or suspensions of the certificate/voucher. 2. A description of the method used to calculate the housing assistance payment, information on utility allowances, Fair Market Rents for the Regular Certificate program and Payment Standards and how they differ for the OFT0 Tenancy and Voucher program. 1/1/99 AdminPlan 8-2 3. How the maximum allowable rent .is determined including the rent reasonableness standard. .8-3 1/1/99 AdminPlan 4. 5. 6. 7. 8. 9. IO. 11. 12. 13. 14. 15. Guidance and materials to assist the family in selecting a unit, such as proximity to employment, public transportation, schools, shopping, and the accessibility of services. Guidance will also be provided to assist the family to evaluate the prospective unit, such as the condition of a unit, whether the rent is reasonable, cost of tenant-paid utilities, and energy efficiency of the unit. The boundaries of the geographical area in which the family may lease a unit including an explanation of portability. The HA model lease and HUD lease addendum which incorporates the Request for Lease Approval form, and a description of the procedure for requesting approval for a unit. The HA policy on providing information about families to prospective owners. The Subsidy Standards including when and how exceptions are made and how the certificate or voucher size relates to the unit size selected. Information on how to select a unit, the HUD brochure "A Good Place to Live" on how to select a unit that complies with HQS and an HA checklist on "How to inspect a unit." The HUD brochure on lead-based paint and information about where blood level testing is available. Information on federal, State and local equal opportunity laws and a copy of the housing discrimination complaint form. The HA will also include the pamphlet "Fair Housing: It's Your Right" and ,other information about fair housing laws and guidelines and the phone numbers of the local fair housing agency and the HUD enforcement office. A list of landlords or other parties willing to lease to assisted families or help in the search and known units available for the size certificate or 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, information that the HA will provide assistance in locating accessible units and a list of available accessible units known to the HA. The Family Obligations under the program. The grounds on which the HA may terminate assistance for a participant family because of family action or failure to act. 1/1/99 AdminPlan 8-4 16. 17. 18. 19. 20. 21. 22. 23. 24. HA informal hearing procedures including when the HA 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. Information regarding the HA's Community Outreach Program (COP) which assists families who are interested in, or experiencing difficulty in obtaining available housing units in areas outside of minority concentrated locations. A list of properties or property management organizations that own or operate housing units outside areas of poverty or minority concentration. A sample Housing Assistance Payments (HAP) Contract. Procedures for notifying the HA andlor HUD of program abuses such as side payments, extra charges, violations of tenant rights, and owner failure to repair. The family's rights as a tenant and a program participant. Requirements for reporting changes between certifications. Information on security deposits and legal referral services. Other Information to be Provided at the Briefing [24 CFR 982.301(a)] The person conducting the briefing will also describe how the program works and the relationship between the family and the owner, the family and the HA, and the HA and the owner. The briefing presentation emphasizes: Family and owner responsibilities Where a.family may lease a unit inside and outside its jurisdiction How portability works for families eligible to exercise portability Advantages to moving to an area with low concentration of very low-income families if family is living in a high poverty census traot in the HA's jurisdiction. 1/1/99 AdminPlan 8-5 Exercising choice in residency 8-6 1/1/99 AdminPlan Choosing a unit carefully and only after due consideration. The Family Self Sufficiency program and its advantages. If the family includes a person with disabilities, the HA will ensure compliance with CFR 8.6 to ensure effective communication. Move Briefinq A move briefing will be held for participants who will be reissued Certificates or Vouchers to move and have given notice of intent to vacate to their owner. This briefing includes incoming and outgoing portable families. 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 HA will provide assistance to families who wish to do so. The HA 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 HA will investigate and analyze when Certificate and Voucher holders are . experiencing difficulties locating or obtaining housing units outside areas of concentration. The assistance provided to such families includes: Direct contact with landlords. Counseling with the family. Providing information about services in various non-impacted areas. Meeting with neighborhood groups to promote understanding. Formal or informal discussions with landlord groups Formal or informal discussions with social service agencies Meeting with rental referral companies or agencies Meeting with fair.housing groups or agencies 1 /1/99 AdminPlan 8-7 D. ASSISTANCE TO FAMILIES WHO CLAIM DISCRIMINATION The HA will give participants a copy of HUD form 903 to file a complaint, the forms are available in English and Spanish. In addition, the HA contracts with Heartland Human Relations Association (HHRA). HHRA is available to assist tenants on Fair Housing Law and to determine if illegal discrimination has occurred. The HA has fliers available in English and Spanish describing Fair Housing Choice and the services that HHRA will provide. E. SECURITY DEPOSIT REQUIREMENTS [24 CFR 982.3131 Leases Effective Prior to October 2,1995 The amount of Security Deposit which could have been collected by owners under contracts effective prior to October 2, 1995 is: Under the Certificate Program, the owner could have collected a Security Deposit in an amount not to exceed Total Tenant Payment or $50., whichever is greater, for non-lease-in-place families. For the Voucher Program, the owner, at hidher discretion, could have collected a Security Deposit in an amount not to exceed: The greater of 30% of adjusted monthly income or one month's rent. Leases Effective on or after October 2,1995 Security deposits charged by owners may not exceed those charged to unassisted tenants (nor the maximum prescribed by State or local law.) 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. TERM OF CERTIFICATENOUCHER 124 CFR 982.303,982.54(d)(l I)] During the briefing session, each household will be issued a Certificate or Voucher which represents a contractual agreement between the HA and the Family specrfying the rights and responsibilities of each party. It does not constitute admission to the program which occurs when the lease and contract become effective. 1/1/99 AdminPlan '8-8 Expirations The Certificate or Voucher is valid for a period of 120 days calendar days from the date of issuance. The family must submit an approvavable Lease Addendum and/or Lease within the 120 day. If the Certificate or Voucher has expired the family will be denied assistance. The family will not be entitled to a review or hearing. If the family is currently assisted, they may remain as a participant in their unit if there is an assisted lease addendum and executed HAP Contract in effect. Suspensions When a Lease Addendum is received, the HA will deduct the number of days required to process the request from the HA allowed 120 day term of the certificate/voucher. Extensions in Excess of 120 days Will be requested from the HUD field office if the family needs and requests an extension as a reasonable accommodation to make the program accessible to and usable by a family member with a disability Assistance to CertificateNoucher Holders Families who require additional assistance during their search may call the HA Office to request assistance. Certificate and Voucher holders will be notified at their briefing session that the HA periodically updates the. listing of available units and how the updated list may be obtained. The HA will assist families with negotiations with owners and provide other assistance related to the families' search for housing. G. INTERCHANGEABILITY BETWEEN CERTIFICATE AND VOUCHER 8 [24 CFR 982.205 (c)(2)] The Family may request a change in the form of assistance from Certificate to Voucher, or from Voucher to Certificate, either during the initial search period and/or while occupying a unit under Lease and Contract. If the Family asks to change the form of assistance, the HA will determine if the requested form of assistance is available and will notify the Family within 15 days. If the HA denies the family's request, an informal hearing will not be offered. 1/1/99 AdminPlan 8-9 1/1/99 AdminPlan 8-10 ’ A transfer list for interchangeability requests will be maintained as needed when funding is not available. In the case of a family not yet under contract, the HA will issue the new form of assistance for the time remaining on the current Certificate or Voucher. The family will be permitted to change the form of assistance in place. T.he Family will be required to attend a briefing for the new form of assistance and, if changing in place, a new lease and contract will be executed. H. CERTIFICATENOUCHER ISSUANCE DETERMINATION FOR SPLIT HOUSEHOLDS [24 CFR 982.3151 !n those instances when a family assisted under the Section 8 program 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, and there is no determination by a court, the HA shall consider the following factors to determine which of the families will continue to be assisted: 1. Which of the two new family units has custody of dependent children. 2. Which family members were listed on the initial application. 3. The composition of the new family units, and which unit contains elderly or disabled members. 4. Whether domestic violence was involved in the breakup. 5. Which family members remain in the unit. 6. Recommendations of social service professionals. Documentation of these factors will be the responsibility of the requesting parties. If documentation is not provided, the HA will terminate assistance on the basis of failure to provide information necessary for a recertification. Where the breakup of the family also results in a reduction of the size of the Certificate, the family will be required to move to a smaller unit if the current landlord is unwilling to accept the rent level of the smaller sized certificate. 8-1 1 1/1/99 AdminPlan 1/1/99 AdminPlan 8-12 1. REMAINING MEMBER OF TENANT FAMILY - RETENTION OF CERTIFICATENOUCHER [24 CFR 982.31 51 To be considered the remaining member of the tenant family, the person must have been previously approved by the HA to be living in the unit. A live-in aide, by definition, is not a member of the family and will not be considered a remaining member of the Family. In order for a minor child to continue to receive assistance as a remaining family member: 1. The court has to have awarded emancipated minor status to the minor, or 2. The HA has to have verified that social services and/or the Juvenile Court has arranged for another adult to be brought into the assisted unit to care.for the child(ren) for an indefinite period. A reduction in family size may require a reduction in the certificate or voucher size. 1/1/99 AdminPlan 8-13 Chapter 9 REQUEST FOR LEASE APPROVAL AND CONTRACT EXECUTION INTRODUCTION [24 CFR 982.305(a)] The HAS program operations are designed to utilize available resources in a manner that is efficient and provides eligible families timely assistance based on the number of units that have been budgeted. The HAS 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 certificate or voucher, they may search for a unit anywhere within the jurisdiction of the HA, or outside of the HA's jurisdiction if they qualify for portability. The family must find an eligible unit under the program rules, with an owner/landlord who is willing to enter into a Housing Assistance Payments (HAP) Contract with the HA. This Chapter defines the types of eligible housing, the HA's policies which pertain to initial inspections, lease requirements, owner disapproval, and the processing of Lease Addendums. A. REQUEST FOR LEASE APPROVAL [24 CFR 982.305(b)] The Lease Addendum and a copy of the proposed Lease must be submitted by the family during the term of the certificate or voucher. The Lease Addendum must be signed by both the owner and CertificateNoucher holder. The HA will not permit the family to submit more than one Lease Addendum at a time. The HA will review the proposed lease and the Lease Addendum documents to determine whether or not they are approvable. For the Certificate Program, the HA will determine whether the gross rent is within the applicable FMWexception rent limit. If the gross rent exceeds the FMWexception rent limit, the HA will determine whether OFT0 availability exists. If it does exist, the HA will complete the affordability documentation' with the family to determine whether their family share would be affordable. 9- 1 1/1/99 AdminPlan The Request will be approved if: I. The unit is an eligible type of housing 2. The unit meets HUD's Housing Quality Standards (and any additional criteria as identified in this Plan) 3. The rent is reasonable and approvable (See Section G). 4. The Security Deposit is approvable in accordance with any limitations in this Plan. 5. The proposed lease complies with HUD and HA requirements (See Section C). 6. The owner is approvable, and there are no conflicts of interest (See Section I). Disapproval of Lease Addendum if the HA determines that the Request cannot be approved for any reason, the landlord and the family will be notified in writing. The HA will instruct the owner and family of the steps that are necessary to approve the Request. The owner will be given 30 calendar days to submit an approvable Request from the date of disapproval. When, for any reason, an Request is not approved, the HA will furnish another Lease Addendum form to the family along with the notice of disapproval so that the family can continue to search for eligible housing. B. ELIGIBLE TYPES OF HOUSING [24 CFR 982.353,982.54(d)(15)] The HA will. approve any of the following types of housing in the Certificate and Voucher programs: 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. 1/1/99 AdminPlan 9-2 Units owned (but not subsidized) by the HA (following HUD-prescribed requirements). 1 11/99 AdminPlan 9-3 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. The HA may not permit a Certificate or Voucher holder to lease a unit which is receiving Project-Based Section 8 assistance or any duplicative rental subsidies. C. LEASE REVIEW [24 CFR 982.3081 The HA will review the lease, particularly noting the approvability of optional charges and compliance with regulations and State law. Responsibility for utilities, appliances and optional services must correspond to those provided on the Lease Addendum. Owners may either submit their own lease or permit the HA to furnish the lease. In cases where the owner's lease is used, the HUD Lease Addendum must be. attached and executed. D. SEPARATE AGREEMENTS Separate agreements are not necessarily illegal side agreements. Families and owners will be advised of the prohibition of illegal side payments for additional rent, or for items normally included in the rent of unassisted families, or for items not shown on the approved lease. The family is not liable under the lease for unpaid charges for items covered by separate agreements and nonpayment of these agreements cannot be cause for eviction. 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 HA. 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 and must be included in the lease. 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. 9-4 1/1/99 AdminPlan All agreements for special items or services must be attached to the lease approved by the HA. If agreements are entered into at a later date, they must be approved by the HA and ,attached to the lease. ' E. INITIAL INSPECTIONS [24 CFR 982.305(a) & (b)] See Chapter IO, "Housing Quality Standards and Inspections." F. RENT LIMITATIONS [24 CFR 982.5031 In the Regular Certificate program, the gross rent may not exceed the FMWexception rent. The HA will approve an exception rent up to 120 percent of the FMR for a particular family if necessary as a reasonable accommodation so that the unit is , useable by and accessible to a family member with a disability. For the Certificate and Voucher programs, the HA 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. G* . " DISAPPROVAL OF PROPOSED RENT [24 CFR 982.5021 In any of the programs, if the proposed Gross Rent is not reasonable, at the family's request, the HA will negotiate with the owner to reduce the rent to a reasonable rent. In a Regular Certificate Tenancy, if the proposed Gross Rent exceeds the FMWexception rent, the HA will take action in the following sequence in assisting the family's efforts to lease the unit: 1. At the family's request, the HA will negotiate with the owner to reduce the rent or include some or all of the utilities in the rent to owner. 2. If the owner is not willing to adjust the rent and the HA has determined the rent to be reasonable, the HA will determine whether the rent is within 120 percent of the FMR. If so the HA will determine whether approval of an exception rent is necessary as a reasonable accommodation to make the program useable by and accessible to a family member with a disability. 1/1/99 AdminPlan 9-5 3. If a reasonable accommodation is not needed, and OFTO availability exists, and the family agrees and qualifies for OFTO based on their family share, the family will be provided with an OFTO tenancy so they may lease the unit. 1/1/99 AdminPlan 9-6 4. If availability exists and the family and the owner agree, the family may change their form of assistance from a certificate to a voucher. If the rent can be approved by taking the above steps, the HA will continue processing the Request and Lease. If the revised rent involves a change in the provision of utilities, a new Lease Addendum must be submitted by the owner. If the owner does not agree on the Rent to Owner after the HA has tried and failed to negotiate a revised rent, the HA will inform the family and owner that the lease is disapproved. H. INFORMATION TO OWNERS [24 CFR 982.307(b), 982.54(d)(7)] In accordance with H.UD requirements, the HA will furnish prospective owners who . request the family’s address information in writing from the HA with the family’s current address as shown in the HAS records and, if known to the HA, the name and address of the landlord at the family’s current and prior address. The HA will make an exception to this requirement if the family’s whereabouts must be protected due to domestic abuse or witness protection. The HA will inform owners that it is the responsibility of the landlord to determine the suitability of prospective tenants. Owners will be encouraged to screen applicants for rent payment history, eviction history, damage to units, and other factors related to the family’s suitability as a tenant. A statement of the HA’s policy on release of information to prospective owners will be included in the briefing packet which is provided to the family. The HA’s policy on providing information to owners will apply uniformly to all families and owners. 1. OWNER DISAPPROVAL [24 CFR 982.3061 See Chapter 16, “Owner Disapproval and Restriction.” J. CHANGE .I.N TOTAL TENANT PAYMENT (TTP) PRIOR TO HAP EFFECTIVE DATE 1/1/99 AdminPlan 9-7 When the family reports changes in factors that will affect the Total Tenant Payment (TTP) prior to the effective date of the HAP contract at admission, the information will be verified and the TTP will be recalculated. If the family does not report any change, the HA need not obtain new verifications before signing the HAP Contract, even if verifications are more than 60 days old. 1/1/99 AdminPlan 9-8 K. CONTRACT EXECUTION PROCESS [24. CFR 982.305(c)] The HA prepares the Housing Assistance Payments (HAP) Contract for execution. The family and the owner will execute the Lease Addendum, and the owner and the HA will execute the HAP Contract. Copies of the documents will be furnished to the parties who signed the respective documents. The HA will retain a copy of all signed documents. The HA 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 following HA representative(s) is/are authorized to execute a contract on behalf of the HA: Housing and Redevelopment Director Housing Program Manager Housing Specialist II Housing Specialist If families lease properties owned by relatives, the owner's current address will be compared to the subsidized unit's address. .. Owners must provide an Employer Identification Number or Social Security Number. Owners must also submit proof of ownership of the property, such as a Grant Deed or Tax Bill, and a copy of the Management Agreement if the property is managed by a management agent. The owner must provide a home telephone' number and business number if applicable. Unless their lease was effective prior to June 17, 1998, a family may not lease properties owned by a parent, child, grandparent, grandchild, sister or brother of any family member. The HA will waive this restriction as a reasonable accommodation for a family member who is a person with a disability. L. CHANGE IN OWNERSHIP See Chapter 16, "Owner Disapproval and Restriction." 1/1/99 AdminPlan '9-9 Chapter IO HOUSING QUALITY STANDARDS AND INSPECTIONS [24 CFR 982.4011 INTRODUCTION Housing Quality Standards (HQS) are the HUD minimum quality standards for tenant- based programs. HQS standards are required both at initial occupancy and during the term of the lease. HQS standards apply 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 HA will inspect each unit under contract at least annually. The HA will also have an inspection supervisor perform quality control inspections on at least 5 percent of all units under contract annually to maintain the HAS required standards and to assure consistency in the HAS program. This Chapter describes the HA's procedures for performing HQS and other types of inspections, and HA 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 HA requirements. (See additions to HQS). A. GUIDELINESITYPES OF INSPECTIONS 124 CFR 982.401(a), 982.4051 All units must meet the minimum standards set forth in the City of Carlsbad's Building/Housing Code. In cases of inconsistency between the Code and these HQS, the stricter of the two shall prevail. Efforts will be made at all times to encourage owners to provide housing above HQS minimum standards. All utilities must be in service prior to the effective date of the HAP contract. 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 Lease Addendum) to have the utilities turned on. The Inspector will schedule a reinspection of the unit once the utilities are on. If the tenant is- responsible for supplying the stove and/or the refrigerator, the HA will require the tenant to have the stove and/or refrigerator placed in the unit prior to the inspection. '10-1 1/1/99 AdminPlan There are five types of inspections the HA will perform: I. Initial/Move-in: Conducted upon receipt of the Lease Addendum. 2. Annual: Must be conducted within twelve months of the anniversary date of the last full inspection. 3. Move-OuWacate: At the owner's request and if the unit is under the old HAP contract which allows for a damage claim. Or in the event the unit was damaged beyond normal wear and tear and the HA is initiating termination of rental assistance benefits. 4. SpeciallComplaint: At request of owner, family or an agency or third-party. 5. Quality Control B. INITIAL HQS INSPECTION [24 CFR 982.401(a)] The Initial Inspection will be conducted to: Determine if the unit and property meet the HQS defined in this Plan. Document the current condition of the unit as to assist in future evaluations whether the condition of the unit exceeds normal wear and tear. Document the information to be used for determination of rent-reasonableness. If the unit fails the initial Housing Quality Standards inspection, the family and owner will be advised to notify the HA once repairs are completed. On an initial inspection, the owner will be given up to 30 days to correct the items noted as Fail, at the Inspector's discretion, depending on the amount and complexity of work to be done. The owner will be allowed up to two reinspections for repair work to be completed. If the time period given by the Inspector to correct the repairs has elapsed, or the maximum number of failed reinspections has occurred, the family must select another unit. 1/1/99 AdminPlan 10-2 C. ANNUAL HQS INSPECTIONS [24 CFR 982.405(a)] The HA conducts an inspection in accordance with Housing Quality Standards at least annually, approximately 90 days prior to the anniversary month of the contract. Special inspections may be scheduled between anniversary dates. HQS deficiencies which cause a unit to fail must be corrected by the landlord unless it is a fail for which the tenant is responsible. The family must allow the HA to inspect the' unit at reasonable times with reasonable notice. [24 CFR 982.51 (d)] Inspections will be conducted on business days only. Reasonable hours to conduct an inspection are between 8:OO a.m. and 5:OO p.m. The HA will notify the family in writing or by phone at least 10 days prior to the inspection. Inspection: The family and owner are notified of the date and time of the inspection appointment by mail. If the family is unable to be present, they must reschedule the appointment so that the inspection is completed within 15 days. If the family misses three appointments, the HA will consider the family to have violated a Family Obligation and their assistance will be terminated in accordance with the termination procedures in the Plan. Reinspection: The family and owner are mailed a notice of the reinspection appointment by mail. If the family is' not at home for the reinspection appointment, a card will be left at the unit and another appointment is automatically scheduled. Time Standards for Repairs 1. Emergency items which endanger the family's health or safety must be corrected by the owner within 24 hours of notification. 2. For non-emergency items, repairs must be made within 30 days. 3. For major repairs, the Housing Program Manager may approve an extension beyond 30 days. 1/1/99 AdminPlan 10-3 Rent Increases The HA will conduct an inspection using the Housing Quality Standards and other standards approved in this Administrative Plan at least annually, prior to the anniversary month of the contract. Contract rent increases in the Certificate program may not be given until the unit passes the HQS. Rent increase requests in the Voucher and OFT0 programs will not be approved if the unit is in a failed condition. D. MOVE OUTNACATE A move out inspection will be performed only at the landlord's request if claim is to be submitted for contracts effective before 1012195. Or in the event the unit was damaged beyond normal wear and tear and the HA is initiating termination of rental assistance benefits. E. SPECIAUCOMPLAINT INSPECTIONS [24 CFR 982.405(c)] if at any time the family or owner notifies the HA that the unit does not meet Housing Quality Standards, the HA will conduct an inspection. The HA may also conduct a special inspection based on information from third parties such as neighbors or public officials. The HA 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 anniversary date is within 120 days of a special inspection, the special inspection will be categorized as annual and all annual procedures will be followed. F. QUALITY CONTROL INSPECTIONS [24 CFR 982.405(b)] Quality Control inspections will be performed by the Housing Program Manager on at least 5 percent of the units. The purpose of Quality Control inspections is to ascertain that the inspector is conducting accurate and complete inspections, and to ensure that there is consistency among inspectors in application of the HQS. G. ACCEPTABILITY CRITERIA AND EXCEPTIONS TO HQS [24 CFR 982.401 (all 1/1/99 AdminPlan '1 0-4 The HA adheres to the acceptability criteria in the program regulations and HUD Inspection Booklet and local codes. 1/1/99 AdminPlan 10-5 Walls: In areas where plaster or drywall is sagging, severely cracked or otherwise damaged, it must be repaired or replaced. Any exterior or interior surfaces with peeling or chipping paint must be scraped and painted with two coats of unleaded paint or other suitable material. Windows: All window sashes must be in good condition, solid and intact, and fit properly in the window frame. Damaged or deteriorated sashes must be replaced. Windows must be weatherstripped as needed to ensure a watertight seal. Window screens must be in good condition. At the minimum there must be one screen per room for adequate ventilation. Any room for sleeping must have a window Doors: All exterior doors must be weather-tight to avoid any air or water infiltration, be lockable, have no holes, have all trim intact, and have a threshold. All interior doors must have no holes, have all trim intact, and be openable without the use of a key. In the case of French doors, that type of lock will be approved as' long as there is adequate egress from each room. Floors: All wood floors must be sanded to a smooth surface and sealed. Any loose or warped boards must be resecured and made level. If they cannot be leveled, they must be replaced. All floors must be in a finished state (no plywood). Security: If window security bars or security screens are present on emergency exit window, they must be equipped with a quick release system. The owner is responsible for ensuring that the family is instructed on the use of the quick release system. 1 I1 I99 AdminPlan 10-6 Modifications: Modifications or adaptations to a unit due to a disability must meet all applicable HQS and building codes. Extension for repair items not required by HQS will be granted for modificationsladaptations to the unit if agreed to by the tenant and landlord., HA will allow execution of the HAP contract if unit meets all requirements and the modifications do not affect the livability of the unit. H. EMERGENCY REPAIR ITEMS [24 CFR 982.401 (a)] The following items are considered of an emergency nature and must be corrected by the owner or tenant (whoever is responsible) within 24 hours of notice by the Inspector: Lack of security for the unit Waterlogged ceiling in imminent danger of falling Major plumbing leaks or flooding Natural gas leak or fumes Electrical problem which could result in shock or fire Utilities not in service No running hot water Broken glass where someone could be injured Obstacle which prevents tenant's entrance or exit Lack of functioning toilet The HA may give a short extension not more than 48 additional hours whenever the responsible party cannot be notified or it is impossible to effect the repair within the 24-hour period. In those cases where there is leaking gas or potential of fire or other threat to public safety, and the responsible party cannot be notified or it is impossible to make the repair, proper authorities will be notified by the HA. If the emergency repair item(s) are not corrected in the time period required by the HA, and the owner is responsible, the housing assistance payment will be abated and the HAP contract will be terminated. If the emergency.repair item(@ are not corrected in the time period required by the HA, and it is an HQS breach which is a family obligation, the HA will terminate the assistance to the family. 10-7 1/1/99 AdminPlan 1. CONSEQUENCES IF OWNER IS RESPONSIBLE (NON-EMERGENCY ITEMS) [24 CFR 982.405,982.453] When it has been determined that a unit on the' program fails to meet Housing Quality Standards, and the owner is responsible for completing the necessary repair(s) in the time period specified by the HA, the assistance payment to the owner will be abated and the HA will initiate termination of the HAP Contract. Abatement A Notice of Abatement will be sent to the owner, and the abatement will be effective 30 days from the day after the date of the failed inspection. The HA will inspect abated units within two days of the owner's notification that the work has been completed. If the owner makes repairs during the abatement period, payment will resume on the day the unit passes inspection. The family and owner will be notified of the reinspection date. No retroactive payrnent.s 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 HA's portion of rent that is abated. Granting an' Extenstion The HA will grant an extension in lieu of abatement in the following cases: The owner has a good history of HQS compliance. The failed items are minor in nature. There is an unavoidable delay in completing repairs due to difficulties in obtaining parts or contracting for services. The owner makes a good faith effort to make the repairs. The repairs are expensive (such as exterior painting or roof repair) and the owner needs time to obtain the funds. The repairs must be delayed due to climate conditions. The extension will be made for a period of time not to exceed 60 days. At the HA'S discretion, if the work is not completed, the HA will begin the termination of the HAP Contract. Termination of Contract 1/1/99 AdminPlan 10-8 If the owner is responsible for repairs, and fails to correct all the deficiencies cited prior to the end of the abatement period, the owner will be sent a HAP Contract Proposed Termination Notice. Prior to the effective date- of the termination, the abatement will remain in effect. If repairs are completed before the effective termination date, the termination may be rescinded by the HA, if the tenant chooses to remain in the unit. Only two Housing Quality Standards inspections will be conducted after the termination notice is issued. J. DETERMINATION OF RESPONSlBlLlTY [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 family-supplied appliances Damage to the unit or premises caused by a household member or guest beyond normal wear and tear 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. However, 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 HA may terminate the family's assistance on that basis. If the family is responsible but the owner carries out the repairs, the owner will be encouraged to bill the family for the cost of the repairs and the family's file will be noted. K. CONSEQUENCES IF FAMILY IS RESPONSIBLE [24 CFR 982.404(b)] If emergency or non-emergency violations of HQS are determined to be the responsibility of the family, the HA will require the family make any repair(s) or corrections within 30 days. If the repair(s) or correction(s) are not made in this time period, the HA will terminate assistance to the family. Extensions in these cases must be approved by the Housing Program Manager. 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. 1/1/99 AdminPlan 10-9 Chapter 1 I OWNER RENTS, RENT REASONABLENESS, AND PAYMENT STANDARDS [24 CFR 982.501,982.503,982.504] INTRODUCTION It is the HA's responsibility to ensure that the rents charged by owners are reasonable based upon objective comparables in the rental market. The HA will not approve the lease or execute a payments contract until it has determined that the unit meets the minimum HQS and that the rent is reasonable. The HA will determine rent reasonableness at initial lease-up, before any increases in rent to owner and at other times as described in this section. The HA will provide the owner with information concerning rent adjustments in the Certificate and Voucher programs. The HA will also ensure that initial gross rents do not exceed the FMWexception rent limit under the Certificate program, other than for OFT0 Tenancies. This Chapter explains the HA's procedures for determination of rent-reasonableness, payments to owners, adjustments to the Payment Standards, and rent adjustments. A. OWNER PAYMENT IN THE REGULAR CERTIFICATE PROGRAM [24 CFR 982.5071 The payment to the landlord, called the Housing Assistance Payment, is the Rent to owner approved by the HA less the Tenant Rent determined by the HA. B. OWNER PAYMENT IN THE OFTO TENANCY PROGRAM [24 CFR 982.505(c)] The maximum subsidy for each family is determined by the Payment Standard for the Certificate size issued to the family. The subsidy equals the lesser of: 1. The applicable Payment Standard minus the "TTP" (the greafer of 30% annual 2. The monthly Gross Rent minus the HA minimum rent. monthly adjusted income or 10% gross monthly income); or The Certificate size issued to the family is based on the HA's Subsidy Standards. The Payment Standard for the family is based on the lesser of the Payment Standard for the Certificate size issued or the Payment Standard for the unit selected. 11-1 1/1/99 AWlan C. OWNER PAYMENT IN THE VOUCHER PROGRAM [24 CFR 982.505(b)] The maximum subsidy for each family is determined by the Payment Standard for the Voucher size issued to the family, less 30% of the family's Monthly Adjusted Income. The actual subsidy level could be less if the family is required to pay the Minimum Total Tenant Payment (10% of the family's Monthly Income). The Voucher size issued to the family is based on the HA's Subsidy Standards. The payment standard for the family is based on the lesser of the Payment Standard for the Voucher size issued and the Payment Standard for the unit selected. The Housing Assistance Payment to the owner is the lesser of the subsidy described above or the rent charged by the owner. D. MAKING PAYMENTS TO OWNERS [24 CFR 982.4511 Once the HAP Contract is executed, the HA begins processing payments to the landlord. The effective date and the amount of the HA payment is communicated to the owner and tenant in writing. A HAP Register will be used as a basis for monitoring the accuracy and timeliness of payments. Changes are made automatically to. the HAP Register for the following month. Checks are disbursed by finance department to the owner each month. Checks may not be picked up by owner at the HA. Checks will only be disbursed on weekly basis. Exceptions may be made with the approval of the Housing Program Manager and finance department in cases of hardship. Checks that are not received will not be replaced until a written request has been received from the payee and a stop payment has been put on the check. E. RENT REASONABLENESS DETERMINATIONS [24 CFR 982.5031 The HA will not approve a lease until the HA determines that the initial rent to owner is a reasonable rent.. The HA must redetermine the reasonable rent before any increase in the rent to owner, and if there is a five percent decrease in the published FMR in effect 60 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. 1 / 1 199 AdminPlan 11-2 The HA also will redetermine rent reasonableness when owners request special rent to owner adjustments for the Certificate program, and when an owner requests an increase in the rent to owner for a Voucher or OFT0 unit. The HA must redetermine rent reasonableness if directed by HUD and based on a need identified by the HA's auditing system, the HA may elect to redetermine 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 redetermined by the HA. For the Certificate and Voucher Programs, the HA 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. 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 HA information on rents charged by the owner for other units in the premises or elsewhere. The HA will only request information on the owner's units elsewhere if the HA has cause to demonstrate that the owner has a tendency to charge higher rents to Program participants or if needed for rent reasonableness comparables. The data for other unassisted units will be gathered from newspapers, Realtors, professional associations, inquiries of owners, market surveys, and other available sources. The market areas for rent reasonableness are census tracts and neighborhoods within the HA's jurisdiction. Subject units within a defined housing market area will be compared to similar units within the same area. The following items will be used for rent reasonableness documentation: Size (number of Bedroomslsquare footage) Location Quality. Amenities (bathrooms, dishwasher, air conditioning, etc.) Housing Services Age of unit Unit Type Utilities Maintenance 1/1/99 AdminPlan 11-3 Rent Reasonableness Methodology The HA utilizes a rent reasonableness system which includes and defines the HUD factors listed above. Information is gathered on rental units in the Carlsbad market area, and each unit is documented, using the HA's rent reasonableness system. The HA uses an "appraisal" method and tests the subject unit against selected units in the same area with similar characteristics. Adjustments are made for favorable and unfavorable differences between the subject unit and the comparables. Amenities, services, and facilities are documented. The HA 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 six months old. F. PAYMENT STANDARDS FOR THE VOUCHER PROGRAM [24 CFR 982.505(b)(I)] The Payment Standard is used to calculate the housing assistance payment for a family. The Payment Standard is set by the HA between 90 percent and 100 percent of the FMWexception rent. 'The HA reviews the appropriateness of the Payment Standard annually when the FMR is published. In determining whether a change is needed, the HA will ensure that the Payment Standard is within the range of 90 percent to 100 percent of the new FMR. G. ADJUSTMENTS TO PAYMENT STANDARDS [24 CFR 982.505(b)(3)] Payment Standards may be adjusted to increase Housing Assistance Payments in order to keep families' rents affordable. The HA will not raise the Payment Standards so high that the number of families that can be assisted under available funding is substantially reduced. Nor will the HA raise Standards if the need is solely to make "high end" units available to Voucher holders. The HA will review the Payment Standard annually to determine whether an adjustment should be made for some or all unit sizes. The Payment Standard will be reviewed according to HUD's requirements and this policy and if an increase is warranted, the payment standard will be adjusted within 90% of the current Fair Market Rent. 1/1/99 AdminPlan '1 1-4 In a volatile market, it will be at the HA’s discretion whether to make the change immediately or wait until the time of the annual review of the HA’s Payment Standard. The HA may use some or all of the measures below in making its determination whether an adjustment should be made to the Payment Standards. 1/1/99 AdminPlan 11-5 Assisted Families' Rent Burdens The HA will review reports showing the percent of income used for rent by Voucher families to determine the extent to which the rent burden is more than 45% of income. Availability of Suitable Vacant Units Below the Payment Standard The HA will review its rent reasonableness database and vacancy rate data to determine whether there is an ample supply of vacant units below the Payment Standard in areas without minority concentration andlor poverty-impacted areas. Quality of Units Selected The HA will review the quality of units selected by participant families before determining any change to the Payment Standard to ensure that Payment Standard increases are only made when needed to reach the mid-range of the market. HA Decision Point The HA will review the quality and size of units where the Rents to Owner are above the Payment Standard by more than 25%. If more than 50% of families have selected above-average units or have selected larger units than the Voucher size, the HA may elect not to increase the Payment Standard nor continue the analysis. If the analysis continues, the HA will divide those rents between contracts within the first year and after the first year. If the Rents to Owner are more than 25% above the average, in any bedroom size, the HA will continue the analysis. If not, the HA may elect not to increase the Payment Standard for certain bedroom sizes. Rent to Owner Increases The HA may review a sample of the units to determine how often owners are increasing rents after the first year of the lease and the average percent of increase by bedroom size. The sample will be divided into units with and without the highest cost utility included. A comparison will then be made to the applicable annual adjustment factor to determine whether owner increases are excessive in relation to the published annual adjustment factor. .. Time to Locate Housinq 1 /1/99 AdminPlan 11-6 The HA may consider the average time period for families to lease up under the Voucher program as compared to the Certificate program. If the average for Voucher holders exceeds that for Certificate holders, the Payment Standard may be adjusted. Rent Reasonableness Data Base/Average Rents to Owners The HA will compare the Payment Standards to average rents in its Rent Reasonableness Data Base and to the average rent to owners by unit size. The Payment Standards should be equal to these amounts. 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 90 percent of the " FMR without authorization from HUD. Financial Feasibility Before increasing the Payment Standard, the HA may review the budget and the project reserve, to determine the impact projected subsidy increases would have on funding available for the program and number of families served. For this purpose, the HA 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 A file will be retained by the HA for at least three years to document the analysis and findings to justify whether or not the Payment Standard was changed. H. PAYMENT STANDARDS FOR OFTO TENANCIES [24 CFR 982.505(c)] The Payment Standard is used to calculate the housing assistance payment for a family. The OFTO Payment Standard is the FMWexception rent. Whenever the FMR changes or an exception rent is approved, that becomes the HA's new Payment Standard. The above paragraph applies except that if an exception rent has been approved for an area, that exception rent continues to be the Payment Standard until either (1) the FMR exceeds the exception rent, or (2) a reduced FMR is published. 1/1/99 AdminPlan 11-7 1. PAYMENT STANDARDS FOR A FAMILY [24 CFR 982.505(d)] Reqular Reexamination If the payment standard decreases during the HAP Contract term, the Payment Standard for the family is the higher of (1) the Payment Standard at the beginning of the lease minus any amount by which the initial rent to owner has decreased, or (2) the Payment Standard at the current or most recent annual exam. If a change in family size or composition occurs affecting the certificate size, the ability to use the initial Payment Standard is lost. Interim Examination If after the beginning of the term of the lease the family has a change in income, family size or composition that would require or allow for an interim adjustment based on the HA's interim policy, the HA will not apply any new or change in payment standard until the date of the next regular reexamination. Moves If the family moves into a different unit prior to their next recertification and the HA has had a change in the payment standard the new payment standard will be used. The applicable payment standard will be that which is the lower of either the certificate size issued or the unit size selected at the time of the move.- J. RENT ADJUSTMENTS [24 CFR 982.5091 Regular Certificate Program The HA will notify owners of their right to request a rent adjustment 90 to 120 days in advance of the anniversary date. The approval or disapproval decision regarding the adjustment will be based on HUD-required calculations and a rent reasonableness determination. The adjustment may be an increase or a decrease. The maximum increase will be based on the annual adjustment factor in effect 60 days before the contract anniversary date multiplied by the pre-adjusted rent to owner. A decrease may occur either as the result of an AAF less than 1.0, or the HAS rent reasonableness determination. . . Owners must request the rent increase in writing. Any increase will be effective the later of (1) the anniversary date of the Contract, or (2) at least 60 days after the owner's request is received. 1/1/99 AdminPlan 11-8 The change in rent does not affect the automatic renewal of the lease and does not require a new lease or contract or even an executed amendment. A notice of rent change will be sent to the owner and the family. Special Adjustments [24 CFR 982.51 01 An owner may request a special adjustment based on substantial and general increases in real property taxes, special government assessments, or costs of utilities. The rent requested must be found to be reasonable and must be approved by HUD. Disapproval. of Requests for Adjustment If the HA rejects the owner's request for rent adjustment as exceeding rent reasonableness and the owner rejects the HA's determination, the owner may offer the tenant a new lease (after receiving the HA's approval) with a sixty-day notice to the tenant, If the tenant accepts the offer of a new lease, a Lease Addendum must be submitted and the requested rent subjected to rent reasonableness and, for the certificate program, the FMR limitations. If the tenant refuses or the owner does not offer a new lease, the owner may institute court action to terminate tenancy for a business or economic reason in accordance with the lease. The HA will issue a new Certificate or Voucher to the family. After the tenant has begun searching for a new housing unit and/or after court action has been initiated, the owner may decide to accept the current lease. If the owner and tenant agree, the lease can continue. If a new lease is executed, a new Contract must also be executed. Voucher and OFTO Program Rent Adjustments [24 CFR 982.505(b)(3)] Owners may not request rent adjustments in the Voucher and OFTO Tenancy programs to be effective prior to the expiration of the first year of the lease. Rent adjustments are effective: With a sixty-day notice to the .family and a copy to the HA, provided language is included in the lease. The HA will advise the owner as to whether the rent is reasonable and shall approve or disapprove the rent increase. 1/1/99 Ahinplan 11-9 Chapter 12 RECERTIFICATIONS [24 CFR 982.5161 INTRODUCTION In accordance with HUD requirements, the HA 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 regulation. It is a HUD requirement that families report all changes in household composition. This Chapter defines the HA'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. A. ANNUAL ACTIVITIES [24 CFR 982.516,982.405] There are three activities the HA must conduct on an annual basis. These activities will be coordinated whenever possible: 1. Recertification of Income and Family Composition 2. HQS Inspection 3. Contract Rent Adjustment (following HUD requirements [Certificate only]) The HA produces a monthly listing of units under contract to ensure that timely reviews of contract rent, housing quality, and factors related to Total Tenant Payment can be made. Requests for rent adjustments and other monetary changes will be transmitted to the finance department. Reexamination of the family's income and composition must be conducted at least annually. Annual inspections: See Chapter IO, "Housing Quality Standards and Inspections." Rent Adjustments: See Chapter 11, "Owner Rents, Rent Reasonableness and Payment Standards." 1/1/99 AdminPlan 12-1 B. ANNUAL RECERTIFICATION/REEXMlNATlON [24 CFR 982.51 61 Families are required to be recertified at least annually. At the first interim or annual certification on or after June 19, 1995, family members must report and verify their U.S. citizenship/eligible immigrant status. When families move to another dwelling unit: An annual recertification will be scheduled and the anniversary date will be changed. Income limits are not used as a test for continued eligibility at recertification unless the family is moving under portability and changing their form of assistance. Reexamination Notice to the Family The HA will maintain a reexamination tracking system and the household will be notified by mail of the date and time for their interview at least 90 to 120 days in advance of the anniversary date. If requested as an accommodation by a person with a disability, the HA will provide the notice in an accessible format. The HA will also mail the notice to a third party, if requested as reasonable accommodation for a person with disabilities. These accommodations will be granted upon verification that they meet the need presented by the disability. Procedure The HA's procedure for conducting annual recertifications will be: Schedule the date and time of appointments and mail a notification to the family and owner. Completion of Annual Recertification The HA will have all recertifications for families completed before the anniversary date. This includes notifying the family of any changes in rent at least 30 days before the scheduled date of the change in family rent. 1/1/99 AdminPlan 12-2 Persons with Disabilities Persons with disabilities who are unable to come to the HA's office will be granted an accommodation by conducting the interview at the person's home, upon verification that the accommodation requested meets the need presented by the disability. Collection of Information The HA will require the family to complete a Personal Declaration Form prior to the recertification interview appointment. The HA representative will interview and review the information with the family. Requirements to Attend The following family'members will be required to attend the recertification interview: All adult household members If the head of household is unable to attend the interview: The spouse or co-head may recertify for the family, provided that the head comes in within 15 days to verify the information submitted. Failure to Respond to Notification to Recertify The written notification must state which family members are required to attend the interview; The family may call to request another appointment date up to the day of the interview. If the family does not appear for the recertification interview, and has not rescheduled or made prior arrangements with the HA, the HA will reschedule a second appointment. If the family fails to appear for the second appointment, and has not rescheduled or made prior arrangements, the HA will: Schedule a third and final appointment. Exceptions to these policies may be made by the Housing Program Manager if the family is able to document an emergency situation that prevented them from canceling or attending the appointment or if requested as a reasonable accommodation for a person with a disability. 1/1/99 AdminPlan 12-3 Documents Required From the Family In the notification letter to the family, the HA will include instructions for the family to bring the following: Documentation of all assets Documentation of any deductions/aIIowances Documentation of all income and sources Personal Declaration Form completed by head of household Family Obligations for Section 8 ApplicantdParticipants form signed Verification of Information The HA will follow the verification procedures and guidelines described in this Plan. Verifications for reexaminations must be less than 120 days old. Tenant Rent Increase If tenant rent increases, a thirty day notice is mailed to the family prior to the anniversary date. If less than thirty days are remaining before the anniversary date, the tenant rent increase will be effective on the first of the month following the 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 reexamination processing, there will be a retroactive increase in rent to the anniversary date. 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 reexamination is not complete by the anniversary date, rent change will be effective on the first day of the month following completion of the reexamination processing by the HA. C. REPORTING INTERIM CHANGES [24 CFR 982.5161 1/1/99 Admi~iPlan Program between participants must report annual reexaminations. all changes in household composition to the HA This includes additions due to birth, adoption and court-awarded custody. The family must obtain HA 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 HA will conduct a reexamination 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 at the first interim or regular recertification after moving into the unit. Interim Reexamination Policy The HA may conduct interim reexaminations when families have an increase in income. Decreases in Income Participants may report a decrease in income and other changes which would reduce the amount of tenant rent, such as an increase in allowances or deductions. The HA must calculate the change if a decrease in income is reported. Increases in Income Families will be required to report 'any changes in income and asset sources within 15 days of the change. HA Errors If the HA makes a calculation error at admission to the program or at an annual reexamination, an interim reexamination will be conducted, if necessary, to correct the error, but the family wili 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. Other Interim Reporting Issues An interim reexamination does not affect the date of the annual recertification. Interim re-examinations are required under the following circumstances: Farni/y Composition Changes - Increase or decrease in family composition. 1/1/99 AdmhPlan 12-5 Decrease in Income - Required only at the request of the household or if there is a specific directive by HUD. lncrease in Earned lncome - Required only at the request of the participant. For example, a participant of the Family Self-Sufficiency program may request an interim re-exam as it may increase the contribution to their escrow account. If a participant reports an increase in earnings but does not request an interim re-exam, the increase will not be considered until the next annual re-examination if the participant is entering into a new lease and contract. Zero Tenant Rent Portion - Required if the participant's rent portion is calculated at zero includable income and a member of the household begins to receive any form of. income that is includable for rent calculation purposes. For example, the household is receiving only financial aid and they begin to receive earnings or some other type of income that is included for determination of "Total Tenant Payment." Additions of Unearned lncome - Any unearned income that is added to the household (i.e., UIB, SSI, SSA, SSDI, VA benefits, Cal Works, child support, spousal support, etc.). No Longer Eligible for Full-Time Student Status - If an adult member's income is excluded as a result of claiming full-time student status and they no longer qualify as a full-time student, an interim is required to include the household member's earnings. (Note: The provision to report that a person is no longer a full-time student will be added to the Family Obligations form.) D. NOTIFICATION OF RESULTS OF RECERTIFICATIONS [HUD Notice PIH 98-61 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. Signatures are not required by the HA. If the family disagrees with the rent adjustment, they may request an informal hearing. 1/1/99 AdminPlan 12-6 E. TIMELY REPORTING OF CHANGES IN INCOME (AND ASSETS) [24 CFR 982.516(c)] Standard for Timely Reporting of Changes The HA requires that families report interim changes to the HA within I5 days of when the change occurs. Any information, document or signature needed from the family which is needed to verify the change must be provided must be provided within I5 days of the change. .. 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. 12-7 1/1/99 AdminPlan Procedures when the Change is Reported in a Timely Manner The HA 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 that in which the change is reported. However, no rent reductions will be processed until all the facts have been verified, even if a retroactive adjustment results. The change may be implemented based on valid documentation provided by the family, pending third-party written verification. Procedures when the Chanqe is Not Reported by the Tenant in a Timely Manner If the family does not report the change as described under Timely Reporting, the family will have caused an unreasonable delay in the interim reexamination 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 may be required to sign a Repayment Agreement. Decrease in Tenant Rent will be effective on the first of the month following the month that the change was reported. Procedures when the Change is Not Processed by the HA 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 HA 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 HA. 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. 1 /1/99 AdminPlan 12-8 F. REPORTING OF CHANGES IN FAMILY COMPOSITION [24 CFR 982.516(c)] All changes in family composition must be reported within 15 days of the occurrence. Increases in Family Size Increases other than by birth, adoption or court-awarded custody must have the prior approval of the owner and the HA. If the addition would result in overcrowding according to HQS maximum occupancy standards: The HA will not approve the addition other than birth, adoption, court- awarded custody, or marriage. The HA will issue a larger Certificate or Voucher. The HA will issue a larger Certificate or Voucher (if needed under the Subsidy Standards) for additions to the family in the following cases: Addition by marriagelor marital-type .relation. Addition of a minor who is a member of the nuclear family who had been living elsewhere and was initially a part of the assisted household. Addition of an HAapproved live-in aide. Addition due to birth, adoption or courtawarded custody. If a change due to birth, adoption, court-awarded custody, or need for a live-in aide requires a larger size unit due to overcrowding, the change in CertificateNoucher shall be made effective immediately. The HA may determine whether to issue a Certificate or Voucher in this instance based on funding availability. If there is no funding availability in either program, the family will be placed on the Transfer list. 1/1/99 AdminPlan '1 2-9 G. CONTINUANCE OF ASSISTANCE FOR "MIXED" FAMILIES [24 CFR 5.5181 Under the Noncitizens Rule, "Mixed" families are families that include at least one citizen or eligible immigrant and any number of ineligible members. "Mixed" families who were participants as of June 19, 1995, shall continue receiving full assistance if they meet all of the following criteria: 1. ' The HA implemented the Non-Citizen Rule prior to November 29, 1996 AND 2. The head of household or spouse is a U.S. citizen or has eligible immigrant status; AND 3. All members of the family other than the head, the spouse, parents of the head or the spouse, and children of the head or spouse are citizens or eligible immigrants. The family may change the head of household to qualify under this provision. If the HA implemented the Non-Citizen Rule on or after November 29, 1996, mixed families may receive prorated assistance only. 12-10 1/1/99 AdminPlan . Chapter 13 MOVES WITH CONTINUED ASSISTANCE/PORTABILlN [24 CFR 982.31 41 INTRODUCTION, ' HUD regulations permit families to move with continued assistance to another unit within the HA's jurisdiction, or to a unit outside of the HA's jurisdiction under Portability procedures, The regulations also allow the HA 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 HA's jurisdiction, and the policies for restriction and limitations on moves. A. ALLOWABLE MOVES A family may move to a new unit if: I. 2. 3. B. The assisted lease for the old unit has terminated because the HA has terminated the HAP contract for owner breach, or the lease was terminated by mutual agreement of the owner and the family. The owner has given the family a notice to vacate, or has commenced an action to evict the tenant, or has obtained a court judgment or other process allowing the owner to evict the family (unless assistance to the family will be terminated). The family has given proper notice of lease termination (if the family has a right to terminate the lease on notice to owner) for owner breach or otherwise. RESTRICTIONS ON MOVES [24 CFR 982.314,982.552] Families will be permitted to move within the HA's jurisdiction during the initial year of assistance provided that the owner is willing to release the tenant from the initial lease requirement. The HA will deny permission to move if there is insufficient funding for continued assistance. The HA may deny permission to move to if the family has violated a Family Obligation. '13-1 1/1/99 Adminplan The HA will deny permission to move to if the family owes any HA money. The Housing Program Manager may make exceptions to these restrictions if there is an emergency reason for the move over which the participant has no control. C. PROCEDURE FOR MOVES [24 CFR 982.314) Issuance of CertificateNoucher Subject to the restrictions on moves, if the family has not been recertified within the last 120 days, the HA will conduct a recertification and issue the certificate or voucher as soon as the family requests to move. If the family does not locate a new unit, they may remain in the current unit so long as the owner permits. The annual recertification date will be changed to coincide with the new lease-up date. Notice Requirements Briefing sessions emphasize the family's responsibility to give the owner and the HA proper written notice of any intent to move. The family must give the owner the required number of days written notice of intent to vacate specified in the lease and must give a copy to the HA simultaneously. For units under a Certificate HAP Contract effective before October 2, 1995, if the family vacates the unit without proper notice in writing to the owner, the family will be responsible for any vacancy loss paid by the HA. Time of Contract Chancle A move within the same building or project, or between buildings owned by the same owner, will be processed like any other move. 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 mid-month. Assistance will start on the new unit on the effective date of the lease and contract. Assistance payments may overlap for the month in which the family moves. 1/1/99 AdminPlan 13-2 3. PORTABILITY [24 CFR 982.3531 Portability applies to families moving out of or into the HA's jurisdiction within the United States and its territories. Under portability, families are eligible to receive assistance to lease a unit outside of the initial HA's jurisdiction. The unit may be located: 1. In the same state as the initial HA; 2. In the same metropolitan statistical area (MSA) as the initial HA, but in a different state; 3. In an MSA adjacent to the MSA of the initial HA, but in a different state. 4. In the jurisdiction of an HA anywhere within the United States that administers a tenant-based program. E. OUTGOING PORTABILITY [24 CFR 982.353,982.355] When a family requests to move to outside of the HA's jurisdiction, the request must specify the area to which the family wants to move. If the family is moving to a unit located in the same state as the initial HA, in the same MSA, but in a different state, or in an adjacent MSA in a different state, and there is not an HA in the area where the unit is located, the initial HA will be responsible for the administration of the family's assistance. The HA may choose a management company, another HA or a private contractor to administer the assistance. Restrictions on Portability Families will not be permitted to exercise portability during the initial 12 month period after admission to the program,: 1. If neither the head or spouse had a domicile (legal residence) in the HA's jurisdiction at the date of their initial application for assistance unless the receiving and initial HA agree to allow the move. 2. If the family is in violation of a family obligation. 3. If the family owes money to the HA. 1/1/99 AdminPlan 13-3 Outgoing Portability Procedures The HA will provide pre-portability counseling for those families who express an interest in portability. If the family is utilizing portability for their initial lease-up, the HA will determine: If the family is within the very low income limit of the.receiving HA; or If the family is a participant and will be changing its form of assistance, the HA will determine if the family is within the low income limit of the receiving HA, and advise the family accordingly. The HA will advise the family how to contact and request assistance from the receiving HA. The HA will notify the receiving HA that the family will be moving into its jurisdiction. The HA will provide the following documents and information to the Receiving HA: 1. Information on the HUD portability form, including a copy of the family's Certificate or Voucher with issue and expiration dates and formal recognition of the family's ability to move under portability. 2. The most recent HUD 50058 form and verifications. Payment to the Receiving HA The HA will requisition funds from HUD based on the anticipated lease-ups of portable Certificates or Vouchers in other HA's jurisdictions. Payments for families in other jurisdictions will be made to other HAS when billed or in accordance with other HUD approved procedures for payment. When billed, the HA will reimburse the Receiving HA for 100% of the Housing Assistance Payment, 100% of the Special Claims paid on HAP Contracts effective prior to October 2, 1995, and 80% of the Administrative Fee (at the initial HA's rate). Claims The HA will be responsible for collecting amounts owed by the family for claims paid and for monitoring the repayment. The HA will notify the Receiving HA if the family is in arrears or if the family has refused to sign a Repayment Agreement, and the Receiving HA will be asked to terminate assistance to the family as allowed by this Plan. Receiving HA's will be required to submit hearing determinations to the HA within 14 days. 1 /1/99 AdminPlan 13-4 1/1/99 AdminPlan 13-5 I F. INCOMING PORTABILITY [24 CFR 982.354,982.355] Absorption or Administration The HA will accept a farnily with a valid CertificateNoucher from another jurisdiction and administer or absorb the CertificateNoucher. If administering, the family will be issued a "Portability" Certificate or Voucher by the HA with the same start date. The HA may grant extensions in accordance with this Plan. The HA will absorb incoming Certificates and Vouchers in cases where the Initial HA absorbs an equal number of the HA's outgoing CertificatesNouchers. The HA may absorb Certificates1 Vouchers if such absorption does not exceed IO percent of households assisted. When the HA does not absorb the incoming Voucher or Certificate, it will administer the Initial HA's Voucher or Certificate and the HA's policies will prevail. For initial lease-up, the family must be within the HA's Very-Low Income limits. For participants, the HA may issue either a Certificate or Voucher but if the form of assistance changes, the family must be within the HA's Low Income limits. If the family is ineligible under the HA's low income limit because the form of assistance offered causes the family to change programs, the HA must absorb the family without a change in the form of assistance, or administer the family without a change in the form or assistance, or administer the family's current form of assistance. The HA will issue a "Portability Certificate" or "Portability Voucher" according to its own Subsidy Standards. If the Family has a change in family composition which would change the Certificate or Voucher size, the HA will change to the proper size based on its own Subsidy Standards. The HA will decide whether to extend the "Portability CertificateNoucher" and for what period of time. However, if the Family decides not to lease-up in the HA's jurisdiction, the Family must request an extension from the Initial HA. For Old Rule contracts, the HA's unpaid rent, damage and vacancy loss claim policies prevail. Income and TTP of Incoming Portables As receiving HA, the HA will conduct a .recertification interview but only verify the information provided if the documents are missing or are over 120 days old, whichever is applicable, or there has been a change in the family's circumstances. .. 1 11/99 AdminPlan 13-6 If the family's income exceeds the income limit of the HA, the family will not be denied assistance unless the family is an applicant and over the Very-Low Income Limit. If the family's income is such that a $0 subsidy amount is determined prior to lease-up in the HA's jurisdiction, the HA will refuse to enter into a contract on behalf of the family at $0 assistance. Requests for Lease Approval A briefing will be mandatory for all portability families. When the Family submits a Request, it will be processed using the HA's policies. If the Family does not submit a Request or does not execute a lease, the Initial HA will be notified within 14 days by the HA. If the Family leases up successfully, the HA will notify the Initial HA within 30 days, and the billing process will commence. If the HA denies assistance to the family, the HA will notify the Initial HA within 14 days and the family will be offered a review or hearing. The HA will notify the Family of its responsibility to contact the Initial HA if the Family wishes to move outside the HA's jurisdiction under continued portability. Terminations The HA will notify the Initial HA in writing of any termination of assistance within 14 days of the termination. If an Informal Hearing is required and requested by the Family, the hearing will be conducted by the HA, using the regular hearing procedures included in this Plan. A copy of the hearing decision will be furnished to the Initial HA. The Initial HA will be responsible for collecting amounts owed by the Family for claims paid and for monitoring repayment. If the Initial HA notifies the HA that the Family is in arrears or the Family has refused to sign a Repayment Agreement, the HA will terminate assistance to the family. Required Documents As Receiving HA, the HA will require the documents listed on the HUD Portability Billing Form from the Initial HA. 13-7 1/1/99 AdminPlan .. Billinq Procedures As Receiving HA, the HA will bill the Initial HA monthly for Housing Assistance Payments. The billing cycle for other amounts, including Administrative Fees and Special Claims will be monthly unless requested otherwise by the Initial HA. The HA will bill 100% of the Housing Assistance Payment, 100% of Special Claims and 80% of the Administrative Fee (at the Initial HA's rate) for each "Portability" CertificateNoucher leased as of the first day of the month. The HA will notify the Initial HA of changes in subsidy amounts and will expect the Initial HA to notify the HA of changes in the Administrative Fee amount to be billed. 13-8 1/1/99 AdminPlan Chapter 14 CONTRACT TERMINATIONS INTRODUCTION The Housing Assistance Payments (HAP) Contract is the contract between the owner and the HA which defines the responsibilities of both parties. This Chapter describes ?he circumstances under which the contract can be terminated by the HA and the owner, and the policies and procedures for such terminations. A. CONTRACT TERMINATION [24 CFR 982.31 11 The term of the HAP Contract is the same as the term of the lease. The Contract between the owner and the HA may be terminated by the HA, or by the owner or tenant terminating the lease. No future subsidy payments on behalf of the family will be made by the HA to the owner after the month in which the Contract is terminated. The owner must reimburse the HA for any subsidies paid by the HA for any period after the contract termination date. If the family continues to occupy the unit after the Section 8 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 HA for vacancy loss under the provisions of Certificate HAP Contracts effective before October 2, 1995. 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 old unit. B. TERMINATION BY THE FAMILY: MOVES [24 CFR 982.314(~)(2)] The lease stipulates that the family cannot move from the unit until after the first year of the lease. The notice period to the owner is determined by the lease, but may not exceed 60 days. 7/ 1 /98 AdminPlan 14- 1 C. TERMINATION OF TENANCY BY THE OWNER: EVICTIONS [24 CFR 982.31 0, 982.4551 If the owner wishes to terminate the lease, the owner is required to evict, using the notice procedures in the HUD regulations and State/local law. The owner must provide the HA with a copy of the eviction notice. 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 only evict for: 1. 2. 3. 4. 5. 6. 7. Serious or repeated violations of the lease; Violations of federal, state or local law related to occupancy of the unit; 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, or 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, after the first year of the lease, 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. If the lease .is for successive definite terms, after the initial term, the owner can terminate tenancy at the end of the initial term or any successive term without cause. The eviction notice must specify the cause for the eviction. 7/1/98 AdminPlan 14-2 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 HA 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. The HA will cont'inue housing assistance payments until the family moves or is evicted from the unit. If the action is finalized in court, the owner must provide the HA with the documentation, including notice of the locklout date. The HA must continue making housing assistance payments to the owner in accordance with the Contract as long as the tenant continues to occupy the unit and the Contract is not violated. By endorsing the monthly check from the HA, the owner certifies that the tenant is still in the unit, the rent is reasonable and s/he is in compliance with the contract. If an eviction is not due to a serious or repeated violation of the lease, and if the HA has no other grounds for termination of assistance, the HA may issue a new certificate or voucher so that the family can move with continued assistance. D. . 'TERMINATION OF THE CONTRACT BY HA [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 HA terminates program assistance for the family, and when the owner has breached the HAP Contract. (See Chapter lG/Disapproval of Owner) The HA may also terminate the contract if: - The HA terminates assistance to the family. - The family is required to move from a unit which is under-occupied (Certificate Program) or overcrowded (Certificate and Voucher Programs). - Funding is no longer available under the ACC. The contract will terminate automatically if 180 days have passed since the last housing assistance payment to the owner. . 7/1/98 AdminPlan '1 4-3 Notice of Termination The HA will provide the owner and family with at least thirty days written notice of termination of the contract. E. TERMINATIONS DUE TO INELIGIBLE IMMIGRATION STATUS [24 CFR 5.5141 Families who were participants on June 19, 1995, but are ineligible for continued assistance due to the ineligible immigration status of all members of the family, or because a "mixed" family chooses not to accept pro-ration of assistance, are eligible for temporary deferral of termination of assistance, if necessary, to permit the family additional time for transition to affordable housing. Deferrals may be granted for intervals not to 'exceed six months, up to an aggregate maximum of: 3 years for deferrals granted prior to November 29,1996, or 18 months for deferrals granted after November 29,1996. The family will be notified in writing at least 60 days in advance of the expiration of the deferral period that termination of assistance will not be deferred because: a) granting another deferral will result in an aggregate deferral period of longer than the statutory maximum (three years for deferrals granted before November 29, 1996; 18 months for deferrals granted after November 29, 1996), or b) a determination has been made that other affordable housing is available. 7/ 1/98 AdminPlan 14-4 Chapter 15 DENIAL OR TERMINATION OF ASSISTANCE INTRODUCTION The HA may deny or terminate assistance for a family because of the family's action or failure to act. The HA will provide families with a written description of the Family Obligations under the program, the grounds under which the HA can deny or terminate assistance, and the HA's informal hearing procedures. This Chapter describes when the HA is required to deny or terminate assistance, and the HA'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 982.552,982.553] If denial or termination is based upon behavior resulting from a disability, the HA will delay the denial or termination in order to determine if there is an accommodation which would negate the behavior resulting from the disability. Form of DeniaVTermination Denial of assistance for an applicant may include any or all of the following: Denial for placement on the HA waiting list Denying or withdrawing a certificate or voucher Refusing to enter into a HAP contract or approve a lease Refusing to process or provide assistance under portability procedures Termination of assistance for a participant may include any or all of the following: Refusing to enter into a HAP contract or approve a lease Terminating housing assistance payments under an outstanding HAP contract Refusing to process or provide assistance under portability procedures 1/1/99 Adminplan 15-1 Mandatory Denial and Termination [24 CFR 982.552(b) (10)(d)] The HA must deny assistance to applicants, and terminate assistance for participants: The HA will permanently deny an applicant admission to the program or immediately and permanently terminate rental assistance benefits to a participant, if an applicant or participant , or family member, has been convicted of manufacturing or producing methamphetamine (speed). If any member of the family fails to sign and submit HUD or HA required consent forms for obtaining information. If no member of the family is a US. citizen or eligible immigrant. (See Section D) If the family is under contract and 180 days (or 12 months, depending on the HAP contract used) have elapsed since the HA’s last housing assistance payment was made. (See Chapter 14, Section D) Grounds for Denial or Termination of Assistance [24 CFR 982.552 (b)] The HA will deny program assistance for an applicant, or terminate program assistance for a participant, for any of the following reasons: The family violates any family obligation under the program as listed in 24 CFR 982.551. If any member of the family commits drug-related criminal activity, or violent criminal activity. (See Section B. “One Strike” Policy) If any member of the family commits fraud, bribery or any other corrupt or criminal act in connection with any federal housing program. The family currently owes rent or other amounts to the HA or to another HA in connection with Section 8 or public housing assistance under the 1937 Act. The family has not reimbursed any HA for amounts paid to an owner under a HAP cpntract for rent, damages to the unit, or other amounts owed by the family under the lease. The family breaches an agreement with an HA to pay amounts owed to an HA, or amounts paid to an owner by an HA. 1 4/99 AdminPlan The family has engaged in or threatened abusive or violent behavior toward HA personnel. “Abusive or violent behavior towards HA ’personnel” includes verbal as well as physical abuse or violence. 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 an intent to abuse or commit violence. Actual physical abuse or violence will always be cause for termination. Any member of the family whose drug or alcohol abuse interferes with the health, safety or peaceful enjoyment of other residents. Crime by Family Member (See Section B. “One Strike” Policy) Refer to Chapter 2, Section E, “Other Criteria for Admission” for further information. Family Self Sufficiency (FSS) Failure to fulfill the obligations and conditions of the FSS contract is grounds for termination of assistance. The HA will.not terminate assistance to FSS families who fail to comply with the FSS Contract of Participation without good cause. B. “ONE STRIKE” POLICY 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 City of Carlsbad to fully endorse and implement a policy which is designed to: Help create and maintain a safe and drug-free community Keep our program participants free from threats to their personal and family safety 1/1/99 AdminPlan 15-3 Help maintain an environment where children can live safely, learn and grow up to be productive citizens 1/1/99 AdminPlan 15-4 Assist families in their vocational and educational goals in the pursuit of self-sufficiency Administration All screening and eviction 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, sexual orientation or other legally protected groups. To the maximum extent possible, the HA will involve other community and governmental entities in the promotion and enforcement of this policy. This policy will be posted on the HA’s bulletin board and copies made readily available to applicants and participants upon request. Screeninq of Applicants In an effort to prevent future drug related and other criminal activity, as well as other patterns of behavior that pose a threat to the health, safety or right to peaceful enjoyment of the premises by other residents, and as required by the Notice 96-27, the HA will endeavor to screen applicants as thoroughly and fairly as possible. Such screening will apply to any member of the household who is 18 years of age or older or who is an emancipated minor. HUD Definitions Drug-related criminal activity is the illegal manufacture, sale, distribution, use or possession with intent to manufacture, sell, distribute or use a controlled substance. Drug-related criminal activity means on or off the premises, not just on or near the premises. Violent criminal activity includes any criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force against a person or property, and the activity is being engaged in by any family member. Standard for Violation The HA will consider the use of a controlled substance or alcohol to be a pattern if there is more than one incident during the previous 12 months. “Engaged in or engaging in” violent criminal activity means any act within the past year by applicants or participants, household members, or guests which involved criminal activity that has as one of its elements the use, attempted use, or threatened use of 1/1/99 AdminPlan 15-5 physical force against the person of another, which resulted in the arrest and/or conviction of the applicant or participant, household members, or guests. 1/1/99 AdminPlan 15-6 The activity is being engaged in by any Family member. The existence of the above-referenced behavior by any household member or guest, regardless of the applicant or participant’s knowledge of the behavior shall be grounds for denial or termination of assistance. Drug Related and Violent Criminal Activity Ineligibilih/ if Evicted for Drug-Related Activity: Persons evicted from public housing, Indian Housing, Section 23 or any Section 8 program because of drug-related criminal activity are ineligible for admission to the Section 8 program for a three-year period beginning on the date of such eviction. Applicants will be denied assistance if they have been: arrested, convicted or evicted from a unit assisted under the Housing Act of 1937 due to violent criminal activity within the last two years. prior to the date of the certification interview. If the family violates the lease for drug-related or violent criminal activity, the HA will terminate assistance. In appropriate cases, the HA may permit the family to continue receiving assistance provided that family members determined to have engaged in the proscribed activities will not reside in the unit. If the violating member is a minor, the HA may consider individual circumstances with the advice . of Juvenile Court officials. The HA may waive the requirement regarding drug-related criminal activity if: The person demonstrates successful completion of a credible rehabilitation program approved by the HA, or The circumstances leading to the eviction no longer exist. .. 1/1/99 AdminPlan 15-7 Termination of Assistance for Participants If the family violates the lease for drug-related or violent criminal activity, the HA will terminate assistance. In appropriate cases, the HA may permit the family to continue receiving assistance provided that family members determined to have engaged in the proscribed activities will not reside in the unit. If the violating member is a minor, the HA may consider individual circumstances with the advice of Juvenile Court officials. 1/1/99 AdminPlan 15-8 Notice of Termination of Assistance In any case where the HA decides to terminate assistance to the family, the HA must give the family written notice which states: The reason(s) for the proposed termination, The effective date of the proposed termination, The family's right, if they disagree, 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 HA. The HA will simultaneously provide written notice of the contract termination to the owner so that it will coincide with the Termination of Assistance. The Notice to the owner will not include any details regarding the reason for termination of assistance. Required Evidence Preponderance of evidence is defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not. The intent is not to prove criminal liability, but to establish that the act(s) occurred. Preponderance of evidence may not be determined by the number of witnesses, but by the greater weight of all evidence. Credible evidence may be obtained from police and/or court records. Testimony from neighbors, when combined with other factual evidence can be considered credible evidence. Other credible evidence includes documentation of drug raids or arrest warrants. The HA will pursue fact-finding efforts as needed to obtain credible evidence. Confidentialitv of Criminal Records The HA 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, will be in a file with access limited to individuals responsible for screening and determining eligibility for initial and continued assistance and to the upper level Section 8 management. 1/1/99 AdminPlan 15-9 If the family is determined eligible for initial or continued assistance, 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 HA will document in the family’s file the circumstances of the criminal report and the date the report was destroyed. C. 1. 2. 3. 4. 5. 6. 7. 8. 9. FAMILY OBLIGATIONS [24 CFR 982.5511 The family must supply any information that- the HA 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 part 812). “Information” includes any requested certification, release or other documentation. The family must supply any information requested by the HA or HUD for use in a regularly scheduled reexamination or interim reexamination of family income and composition in accordance with HUD requirements. The family must disclose and verify Social Security Numbers (as provided by 24 CFR part 750) and must sign and submit consent forms for obtaining information in accordance with 24 CFR part 760 and 24 CFR part 813. 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 HA 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, notrfy the HA before the family moves out of the unit or terminates the lease upon notice to the owner. The family must promptly give the HA a copy of any owner eviction notice. 1/1/99 AdminPlan 15-10 IO. The family must use the assisted unit for residence by the family. The unit must be the family's only residence. 1/1/99 AdminPlan 15-1 1 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. The composition of the assisted family residing in the unit must be approved by the HA. The family must promptly inform the HA of the birth, adoption or court- awarded custody of a child. The family must request HA approval to add any other family member as an occupant of the unit. The family must promptly notify the HA if any family member no longer resides in the unit. , If the HA has given approval, a foster child or a live-in aide may reside in the unit. If the family does not request approval or HA approval is denied, the family may not allow a foster child or live-in aide to reside with the assisted family. 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 or let the unit. The family must not assign the lease or transfer the unit. The family must supply any information or certification requested by the HA to verify that the family is living in the unit, or relating to family absence from the unit, including any HA-requested information or certification on the purposes of family absences. The family must cooperate with the HA for this purpose. The family must promptly notify the HA 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 the programs. The members of the family may not engage in drug-related criminal activity or violent criminal activity. (See HA one strike policy). An assisted family, or members of the family, may not receive Section 8 tenant- based assistance 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. 15-12 1/1/99 AdminPlan Housinq Authority Discretion In deciding whether to deny or terminate assistance because of action or failure to act by members of the family, the HA has discretion to consider all of the circumstances in each case, inciuding the seriousness of the case. The HA 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 HA may also review the family's more recent history and record of 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 HA may impose, as a condition of continued assistance for members, a requirement that family members who participated culpable for the action or failure to act, will not reside in the unit. permit the other members of a family to continue in the program. other family in,, or were The HA may Enforcing Familv Obligations Explanations and Terms The term "Promptly" when used with the Family Obligations always means "within 15 days. "Denial or termination of assistance is always optional except where this Plan or the regulations state otherwise. HQS Breach The Housing Program Manager andlor 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 Housing Program Manager. 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 through court action for serious or repeated violation of the lease. If the owner notifies the family of termination of tenancy assistance for serious or repeated lease violations, and the family moves from the unit prior to the completion of court action, and If there are police reports, neighborhood complaints or other third party information, that has been verified by the HA. 1/1/99 Adminplan 15-13 1/1/99 AdminPlan 15-14 Notification of Eviction If the family requests assistance to move and they did not notify the HA of an eviction within 15 day of receiving the Notice of Lease Termination, the move will be denied. Proposed Additions to the Family The HA will deny a family’s request to add additional family members who are: Persons who have previously violated a family obligation listed in 24CFR 982.51 of the HUD regulations. Persons who have been part of a family whose assistance has been terminated under the Certificate or Voucher program. Persons who ,commit drug-related criminal activity or violent criminal activity. Persons who commit fraud, bribery or any other corrupt or criminal act in connection with any federal housing program. Persons who currently owe rent or other amounts to the HA or to another HA in connection with Section 8 or public housing assistance under the 1937 Act. Persons who have engaged in or threatened abusive or violent behavior toward HA personnel. Familv Member Moves Out Families are required to notify the HA if any family member leaves the assisted household. When the family notifies the HA, 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. 1 /1/99 AdminPlan 15-15 Limitation on Profit-makinq Activitv in Unit If the business activity area results in the inability of the family to use any of the critical living areas, such as a bedroom utilized for a business which is not available for sleeping, it will be considered a violation. If the HA 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 HA 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 @)he is a member of the assisted family, unless the family owns the mobile home and rents the pad under the Program. Fraud In each case, the HA will consider which family members were involved, the circumstances, and any hardship that might be caused to innocent members. In the event of false citizenship claims: (Refer to Section D.) D. PROCEDURES FOR NON-CITIZENS [24 CFR 5.514, 5.516, 5.5181 Denial or Termination due to Ineligible Immigrant Status Applicant or participant families in which all members are neither US. citizens nor eligible immigrants are not eligible for assistance and must have their assistance terminated. The HA must offer the family an opportunity for a hearing. (See Chapter 2, Section D.) Assistance may not be terminated while verification of the participant family's eligible immigration status is pending. False or Incomplete Information When the HA has clear, concrete, or substantial documentation (such as a permanent resident card or information from another agency) that contradicts the declaration of citizenship made by an applicant or participant, an investigation will be conducted and the individual given an opportunity to present relevant information. 1/1/99 AdminPlan 15-16 If the individual is unable to verify their citizenship, the HA may give himlher an opportunity to provide a new declaration as an eligible immigrant or to elect not to contend their status. The HA will then verify eligible status, deny, terminate, or prorate as applicable. The HA may deny or terminate assistance based on' the submission of false information or misrepresentation. 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 HA either after the INS appeal or in lieu of the INS appeal. After the HA 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. ZERO ($0) ASSISTANCE TENANTS HAP Contracts Prior to October 2, 1995 For contracts which were effective prior to October 2, 1995, the HA is liable for unpaid . rent and damages if the family vacates during the allowable 12 months after the last HAP payment. The HA must perform all of the functions normally required, such as reexaminations and inspections. The participant will be notified of the right to remain on the program at $0 assistance for 12 months. If the family is still in the unit after 12 months, the assistance will be terminated. In order for a family to move to another unit during the 12 month, the rent for the new unit would have to be high enough to necessitate a housing assistance payment. HAP Contracts On or After October 2,1995[24 CFR 982.455 (a)] 11 1/99 AdminPlan 15-17 For contracts effective on or after October 2, 1995, the HA has no liability for unpaid rent or damages, and the family may remain in the unit at $0 assistance for up to 180 days after the last HAP payment. If the family is still in the unit after 180 days, the assistance will be terminated. If, within the 180 day time frame, an owner rent increase or a decrease in the Total Tenant Payment causes the family to be eligible for a housing assistance payment, the HA will resume assistance payments for the family. In order for a family to move to another unit during the 180 days, the rent for the new unit would have to be high enough to necessitate a housing assistance payment. .. 1/1/99 AdminPlan 15-18 F. OPTION NOT TO TERMINATE FOR MISREPRESENTATION [24 CFR 982.551 , 982.552(c)] If the family has misrepresented any facts that caused the HA to overpay assistance, the HA may choose not to terminate and may offer to continue assistance provided that the family executes a Repayment Agreement and makes payments in accordance with the agreement or reimburses the HA in full. G. 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 HA will deny or terminate assistance. H. 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 HA to fulfill its responsibilities. The HA schedules appointments and sets deadlines in order to obtain the required information. The Obligations also require that the family'allow the HA 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 HA, may be sent a Notice of Denial or Termination of Assistance for failure to provide required information, or for failure to allow the HA 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: Eligibility for Admissions Verification Procedures CertificateNoucher Issuance and Briefings Housing Quality Standards and Inspections Recertifications Appeals 1/1/99 AdminPlan 1-5-19 Acceptable reasons for missing appointments or failing to provide information by deadlines are: Medical emergency Family emergency Procedure when Appointments are Missed or Information not Provided For most purposes in this Plan, the family will be given three opportunities before being issued a notice of termination or denial for breach of a family obligation. After issuance of the termination notice, if the family offers to correct the breach within the time allowed to request a hearing: The termination will be rescinded after the family cures the breach. The notice will be rescinded if the family offers to cure and the family does not have a history of non-compliance. 15-20 1/1/99 AdminPlan Chapter 16 OWNER DISAPPROVAL AND RESTRICTION It is the policy of the HA to recruit owners to participate in the Certificate and Voucher program. The HA will provide owners with p,rompt and professional service in order to maintain an adequate supply of available housing throughout the jurisdiction of the HA. The regulations define when the HA must disallow an owner participation in the program, and they provide the HA 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 HA will disapprove the owner for the following reasons: HUD or other agency directly related has informed the HA that the Owner has been disbarred, suspended, or subject to a limited denial of participation under 24 CFR part 24. HUD has informed the HA 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 HA that a court or administrative agency has determined that the has owner violated the Fair Housing Act or other federal equal opportunity requirements. Unless their lease was effective prior to June 17, 1998, the owner may not be a parent, child, grandparent, grandchild, sister or brother of any family member. The HA will waive this restriction as a reasonable accommodation for a family member who is a person with a disability. In cases where the owner and tenant bear the same last name, the HA may, at its discretion, require the family and or owner to certify whether they are related to each other in any way. 1/1/99 AdminPlan , 16-1 The owner has violated obligations under a housing assistance payments contract under Section 8 of the 1937 Act (42 U.S.C. 14379. .. 1/1/99 AdminPlan 16-2 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 HA 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 nonlcompliance 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. B. OWNER RESTRICTIONS AND PENALTIES [24 CFR 982.302(a)(8), 982.4531 If an owner has committed fraud or abuse or is guilty of frequent or serious contract violations, the HA will restrict the owner from future participation in the program for a period of time commensurate with the seriousness of the offense. The HA may also terminate some or all contracts with the owner. Before imposing any penalty against an owner the HA will review all relevant factors pertaining to the case, and will consider such factors as the owner's record of compliance and the number of violations. See Program Integrity Addendum for guidance as to how owner fraud will be handled. .. 1/1/99 AdminPlan 16-3 C. CHANGE IN OWNERSHIP A change in ownership does not require execution of a new contract unless it is requested by the new owner. The HA may approve the assignment of the HAP contract at the old owner’s request. The HA may approve the assignment, since they are a party to the contract. The HA may deny approval of assignment of the contract, for any of the reasons listed in Section A. of this chapter. The HA will process a change of ownership only upon the written request of the new owner and only if accompanied by a copy of the escrow statement or other document showing the transfer of title and the Employee Identification Number or Social Security number of the new owner. The HA must receive, a written request by the old owner in order to change the HAP payee and/or the address to which payment is to be sent. If the new owner does not want an assignment of the contract, the HA will terminate the HAP contract with the old owner, since they are no longer the owner. The new owner may offer the family a new assisted lease. The family may elect to enter into the new lease or move to another unit. 1/1/99 AdminPlan 16-4 Chapter 17 CLAIMS, MOVE-OUT AND CLOSE-OUT INSPECTIONS (For HAP Contracts Effective Before October 2, 1995) INTRODUCTION This Chapter describes the HA's policies, procedures and standards for servicing HAP Contracts which were effective before October 2, 1995. Certificate and Voucher contracts in this category have provisions for the HA's liability to owners when families move out. Vouchers and Certificates have a provision for damages, and Certificates, in addition, have a provision for vacancy loss. A. OWNER CLAIMS Under HAP Contracts effective prior to October 2, 1995, owners may make "special claims" for damages, unpaid rent, and vacancy loss (vacancy loss cannot be claimed in the Voucher Program) after the tenant has vacated the unit. Owner claims for payment for unpaid rent, damages, or vacancy loss will be reviewed for accuracy and completeness and compared with records in the file. The HA establishes standards by which to evaluate claims, but the burden of proof rests with the owner. If vacancy loss is claimed, the HA will ascertain whether or not the family gave proper notice of its intent to move. The file will also be reviewed to verify owner compliance at the time the contract was terminated. The HA will pay properly filed claims to the owner as a function of the contract, but the tenant is ultimately responsible to reimburse the HA for claims paid to the owner. B. UNPAID RENT Unpaid rent only applies to the tenant's portion of rent while the tenant is in residence under the assisted lease. It does not include the tenant's obligation for rent beyond the termination date of the HAP Contract. Separate agreements are not considered a tenant obligation under the lease and the HA will not reimburse the owner for any claims under these agreements. 7/1/98 Adminplan 17-1 7/1/98 Adminplan 17-2 C. VACANCY LOSS IN THE CERTIFICATE PROGRAM Vacancy Loss is applicable to the Certificate Program only. Vacancy loss is paid if the move was in violation of the notice requirements in ttie lease, or the result .of an eviction. 1. Notify the HA within two working days upon learning of the vacancy, or prospective vacancy, and 2. Pursue all possible activities to fill the vacancy, including, but not limited to: a. Contacting applicants on the owner's waiting list, if any; b. Seeking eligible applicants by listing the unit with the HA, c. Advertising the availability of the unit, and d. Not rejecting potentially eligible applicants except for good cause. In the event that a unit becomes vacant because of death, the HA will permit the own,er to keep the HAP for the month in which the tenant died. If the tenant moves after the date given on their notice of intent to vacate, the landlord may claim vacancy loss by providing acceptable documentation that there was a bona fide prospective tenant to whom the unit could have been rented. The owner must be present during the movelout inspection and only damages claimed by the owner are reimbursable. All claims for damages must be supported by the actual bills for materials and labor and a copy of the canceled checks or other receipts documenting payment. Estimates are not acceptable. Bills from individuals providing labor must include their name, address and phone number. The actual cost of the owner's employees' labor, such as the resident manager, to make repairs may be included. Reasonableness of costs will be based on averages'obsenred in the general industry. Reimbursement for replacement of items such as carpets, drapes, or appliances, are based on depreciation schedules used by this HA. 7/1/98 Adminplan 17-3 17-4 7/1/98 AdminPlan The HA may require verification of purchase date, quality, and price of replaced items in order to calculate depreciation. Damages which were caused during tenancy, were repaired and billed, but remain unpaid at move-out, can be considered "other items due under the lease" and inctuded in the claim. Eligible items to be included on the damage claim must have been a tenant responsibility under the lease or State law. Claims for unpaid utility bills cannot be approved as part of a claim. Claims for normal wear and tear, previously existing conditions, routine turnover preparation, general cleaning and cyclical interior painting are not paid. The HA will inspect the unit to verify that repairs were made. D. MOVE-OUT AND CLOSE-OUT INSPECTIONS Move-out inspections are performed after the tenant has vacated the unit. These inspections are performed to assess the condition of the unit, not to evaluate the HQS. There will be no move-out inspections of units with contracts effective on or after October 2, 1995. The HA's initial inspection of the unit will include a "conditions" report which will be compared to the conditions found during the move-out inspection. The owner must notify the HA of the move-out and request an inspection within two working days of learning of the move-out in order to submit a claim for damages. The HA will not conduct a move-out inspection on tenant's request if the owner does not also request an inspection. A damage claim will not be approved unless the move-out inspection is requested and completed prior to any work being done. 7/1/98 AdminPlan 17-5 E. PROCESSING CLAIMS Any amount owed by the tenant to the owner for unpaid rent or damages will first be deducted from the maximum security deposit which the owner could have collected under the program rules. If the maximum allowable security deposit is insufficient to reimburse the owner for the unpaid tenant rent or other amounts which the family owes under the lease, the owner may request reimbursement from the HA up to the limits for each program. If the owner claims vacancy loss, the security deposit that s/he collected or could have collected will be deducted from the vacancy loss claim. After a determination has been made, the HA will notify the family in writing of the decision. If it has been determined that the family owes money, the HA will pursue collection to repay either in a lump sum or through a repayment agreement. The notice will warn the family that their assistance may be terminated and they may be denied future participation in the program if they do not reimburse the HA as required. Other Requirements for Claims Processing The HA will require proof that the owner has complied with State and local laws applicable to security deposits before making payment on any claim. Costs of filing eviction to remove the tenant or any other legal fees, may not be reimbursed. All unpaid rent, damage, and vacancy loss claim forms must be fully complete when they are submitted, and they must be submitted within 30 days of the date the owner learned of the move-out. 7/1/98 AdminPlan 17-6 Chapter 18 OWNER OR FAMILY DEBTS TO THE HA INTRODUCTION This Chapter describes the HA's policies for the recovery of monies which 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 HA'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 HA'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 HA, the HA will make every effort to collect it. The HA will use a variety of collection tools to recover debts including, but not limited to: Requests for lump sum payments Repayment agreements Abatements Reductions in HAP to owner Collection agencies Credit bureaus A. REPAYMENT AGREEMENT FOR FAMILIES [24 CFR 792.103, 982.552 (b)(6- 8 11 A Repayment Agreement as used in this Plan is a document entered into between the HA and a person who owes a debt to the HA. It is similar to a promissory note, but contains more details regarding the nature of the debt, the terms of payment, any, special provisions of the agreement, and ?he remedies available to the HA upon default of the agreement. The maximum length of time the HA will enter into a repayment agreement with a family is twelve months. Longer periods of time may be approved by the Housing Program Manager. If the family already has a Repayment Agreement in place or if the HA determines that the family committed program fraud. the HA will not enter into a rep.ayment agreement. 1/1/99 AdminPlan 18-1 B. DEBTS OWED FOR CLAIMS [24 CFR 792.103, 982.552 (b)(6-811 If a family owes money to the HA for claims paid to an owner: The HA will pay the amount and enter into a Repayment Agreement with the family. Late Payments A payment will be considered to be in arrears if: The payment is not received by the close of the business day. ten days after the due date. If the family's repayment agreement is in arrears, the HA may: Require the family to pay the balance in full Initiate termination of the housing assistance The Housing Program Manager may grant an extension based on a request from the family due to financial hardship. If the family requests a move to another unit and has a repayment agreement in place for the payment of an owner claim, and the repayment agreement is not in arrears: The family will be required to pay the balance in full prior to the issuance of a certificate or voucher. If the family requests a move to another unit and is in arrears on a repayment agreement for the payment of an owner claim: The family will be required to pay the balance in full, or be terminated from the program. C. DEBTS DUE TO MISREPRESENTATIONS/NON-REPORTING OF INFORMATION [24 CFR 982.1 631 .. 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 that results in payment of Section 8 program funds in violation of Section 8 program requirements. 1 I1 I99 AdminPlan 18-2 Family ErrorlLate Reporting Families who owe money to the HA due to the family's failure to report increases in income will be required to repay in accordance with the guidelines in the Repayment Agreement Section of this Chapter. Program Fraud Families who owe money to the HA due to program fraud will be required to repay in accordance with the guidelines in the Repayment Agreement Section of this Chapter. If a family owes an amount which equals or exceeds $10,000 as a result of program fraud, the case will be referred to the Inspector General. Where appropriate, the HA will refer the case for criminal prosecution. Payment Procedures for Proqram Fraud Families who commit program fraud or untimely reporting of increases in income will be subject to the following procedures: The maximum time period for a Repayment Agreement will be twelve months. The amount of the monthly payment will be determined in accordance with the family's current income. D. GUIDELINES FOR REPAYMENT AGREEMENTS [24 CFR 982.552(b)(8)] Repayment Agreements will be executed between the HA and the head of household and spouselco-head. A Repayment Agreement will be considered to be in default when it is in arrears for 30 days. Monthly payments may be decreased in cases of family hardship and if requested with reasonable. notice from the family, verification of the hardship, and the approval of the Housing Program Manager. 1/1/99 AdminPlan 18-3 No move will be approved until the debt is paid in full unless the move is the result of the following causes, and the Repayment Agreement is current: Family size exceeds the HQS maximum occupancy standards The HAP Contract is terminated due to owner nonlcompliance or optlolit A natural disaster Additional Monies Owed: If the family already has a Repayment Agreement in place and incurs an additional debt to the HA: The HA will not enter into more than one Payment Agreement with the family. The existing repayment agreement will need to be paid in full. E. OWNER DEBTS TO THE HA [24 CFR 982.453(b)] If the HA determines that the owner has retained Housing Assistance or Claim Payments the owner is not entitled to, the HA may reclaim the amounts from future Housing Assistance or Claim Payments owed the owner for any units under contract. If future Housing Assistance or Claim Payments are insufficient to reclaim the amounts owed, the HA may: Require the owner to pay the amount in full within 30 days. Enter into a Repayment Agreement with the owner for the amount owed. Pursue collections through the local court system. Restrict the owner from future participation. F. WRITING OFF DEBTS Debts will be written off if: The debtor's whereabouts are unknown and the debt is more than two years old. A determination is made that the debtor is judgment proof. 1/1/99 AdminPlan 18-4 The debtor is deceased and there are not any remaining members who are adults (18 years or older). 1/1/99 AdminPlan 18-5 Chapter 19 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 HA. This Chapter describes the policies, procedures and standards to be used when families disagree with an HA decision. The procedures and requirements are explained for preference denial meetings, informal reviews and hearings. It is the policy of the HA to ensure that all families have the benefit of all protections due to them under the law. A. COMPLAINTS TO THE HA The HA will respond promptly to complaints from families, owners, employees, and members of the public. All complaints will be documented. The HA may require that complaints other than HQS violations be put in writing. HQS complaints may be reported by telephone. Categories of Complaints I. 2. 3. 4. Complaints from families: If a family disagrees with an action or inaction of the HA or owner. Complaints from families will be referred to their Housing Representative or the Housing Program Manager. Complaints from owners: If an owner disagrees with an action or inaction of the HA or a family. Complaints from owners will be referred to the Housing Program Manager. Complaints from staff: If a staff person reports an owner or family either violating or not complying with program rules. Complaints from staff will be referred to the participant’s Housing Representative or the Housing Program Manager. Complaints from the general public: Complaints or referrals from persons in the community in regard to the HA, a family or an owner, .. 1/1/99 AdminPlan 19-1 Complaints from the general public will be referred to the Housing Program Manager. 1/1/99 AdminPlan 19-2 The HA hearing procedures will be provided to families in the briefing packet. B. PREFERENCE DENIALS [24 CFR 5.4151 When the HA denies a preference to an applicant, the family will be notified in writing of the specific reason for the denial and offered the opportunity for a meeting with HA staff to discuss the reasons for the denial and to dispute the HA's decision. The person who conducts the meeting must be: Any employee of the HA except the person who made or approved the decision or a subordinate of those persons. C. INFORMAL REVIEW PROCEDURES FOR APPLICANTS [24 CFR 982.54(d)(12), 982.5541 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 citizen or eligible immigrant status, the applicant is entitled to an informal hearing. When the HA determines that an applicant is ineligible for the program, the family must be notified of their ineligibility in writing. The notice must contain: 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. The HA must provide applicants with the opportunity for an Informal Review of decisions denying: Qualification for preference Listing on the HA's waiting list Issuance of a Certificate or Voucher Participation in the program 1/1/99 AdminPlan 19-3 Informal Reviews are not required for established policies and procedures and HA ' determinations such as: 1. Discretionary administrative determinations by the HA 2. General policy issues or class grievances 3. A determination of the family unit size under the HA subsidy standards 4. Refusal to extend or suspend a Certificate or Voucher 5. Disapproval of lease 6. Determination that unit is not in compliance with HQS 7. Determination that unit is not in accordance with HQS due to family size or composition Procedure for Review A request for an .Informal Review must be received in writing by the close of the business day, no later than 15 days from the date of the HA's notification of denial of assistance. The informal review will be scheduled within 15 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 Review may be conducted by: A staff person who is at the Housing Program Manager level or above An individual from outside the HA The applicant will be given the option of presenting oral or written objections to the decision. Both the HA 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 andlor telephone if acceptable to both parties. A Notice of the Review findings will be provided in writing to the applicant within 14 days after the review. It shall include the decision of the review officer, and an explanation of the reasons for the decision. 1 /1/99 AdminPlan 19-4 All requests for a review, supporting documentation, and a copy of the final decision will be retained in the family's file. 1 /1/99 AdminPlan 19-5 D. INFORMAL HEARING PROCEDURES [24 CFR 982.555(a-f), 982.54(d)(i 311 When the HA makes a decision regarding the eligibility and/or the amount of assistance, applicants and participants must be notified in writing. The HA will give the family prompt notice of such determinations which will include: The proposed action or decision of the HA; The date the proposed action or decision will take place; The family's right to an explanation of the basis for the HA's decision; The procedures for requesting a. hearing if the family disputes the action or decision; The time limit for requesting the hearing. The HA must provide participants with the opportunity for an Informal Hearing for decisions related to any of the following HA determinations: 1. Determination of the family's annual or adjusted income and the computation of the housing assistance payment 2. Appropriate utility allowance used from schedule 3. Family unit size determination under HA subsidy standards 4. Determination that Certificate program family is underoccupied in their current unit and a request for exception is denied 5. Determination to terminate assistance for any reason. 6. Determination to terminate a family's FSS Contract, withhold supportive services, or propose forfeiture of the family's escrow account. The HA must always provide the opportunity for an informal hearing before termination of assistance. Informal Hearings are not required for established policies and procedures and HA determinations such as: 1. Discretionary administrative determinations by the HA 2. General policy issues or class grievances 3. Establishment of the HA schedule of utility allowances for families in the program 1/1/99 AdminPlan 19-6 4. An HA determination not to approve an extension or suspension of a certificate or voucher term 1/1/99 AdminPlan '1 9-7 5. An HA determination not to approve a unit or lease 6. An HA determination that an assisted unit is not in compliance with HQS (HA must provide hearing for family breach of HQS because that is a family obligation determination) 7. An HA determination that the unit is not in accordance with HQS because of the family size 8. An HA determination to exercise or not exercise any right or remedy against the owner under a HAP contract Notification of Hearing It is the HA's objective to resolve disputes at the lowest level possible, and to make every effort to avoid the most severe remedies. However, if this is not possible, the HA will ensure that applicants and participants will receive all of the protections and rights afforded by the law and the regulations. When the HA receives a request for an informal hearing, a hearing shall be scheduled within 15 days. The notification of hearing will contain: 1. 2. 3. 4. 5. 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 HA upon which the HA based the proposed action and, at the family's expense, to obtain a copy of such documents prior to the hearing. A notice to the family that the HA 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 two days before the hearing date. .. 1/1/99 AdminPlan 19-8 The HA's Hearinq Procedures After a hearing date is agreed to, the family may request to reschedule only upon showing "good cause,'' which is defined as an unavoidable conflict which affects the health, safety or welfare of the family. If a family does not appear at a scheduled hearing and has not rescheduled the hearing in advance, the family must contact the HA within 24 hours, excluding weekends and holidays. The HA will reschedule the hearing only if the family can show good cause for the failure to appear. Families have the right to: Present written or oral objections to the HA's determination. Examine the'documents in the file which are the basis for the HA's action, and all documents submitted to the Hearing Officer; Copy any relevant documents at the HA expense; Present any information or witnesses pertinent to the issue of the hearing; Request that HA 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 HA will make the copies for the family at no charge. In no case will the family be allowed to remove the file from the HA's office. In addition to other rights contained in this Chapter, the HA 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. 1/1/99 AdminPlan 19-9 The Informal Hearing shall be conducted by the Hearing Officer appointed by the HA who is neither the person who made or approved the decision, nor a subordinate of that person. The HA appoints hearing officers who: Are managers from other HAS Are professional mediators or arbitrators 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. 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 Informal Hearing will be recorded. The family may request a copy of the audio recording of the hearing. The Hearing Officer 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. If the family misses an appointment or deadline ordered by the Hearing Officer, the action of the HA shall take effect and another hearing will not be granted. The Hearing Officer will determine whether the action, inaction or decision of the HA 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 HA and the family within 14 days and shall include: A clear summary of the decision and reasons for the decision; If the decision involves money owed, the amount owed and documentation of the calculation of monies owed; The date the decision goes into effect. 1/1/99 AdminPlan 19-10 The HA is not bound by hearing decisions: Which concern matters in which the HA is not required to provide an opportunity for a hearing; Which conflict with or contradict to 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 HA shall send a letter to the participant if it determines the HA is not bound by the Hearing Officer's determination within 14 days. The letter shall include the HA'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. 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 HA hearing is pending but assistance to an applicant may be delayed -pending the HA hearing. INS Determination of Ineligibility If a family member claims to be an eligible immigrant and the INS SAVE system and manual search do not verify the claim, the HA notifies the applicant or participant within ten days of their right to appeal to the INS within thirty days or to request an informal hearing with the HA either in lieu of or subsequent to the INS appeal. If the family appeals to the INS, they must give the HA a copy of the appeal and proof of mailing or the HA may proceed to deny or terminate. The time period to request an appeal may be extended by the HA for good cause. The request for an HA hearing must be made within fourteen days of receipt of the notice offering the hearing or, if an appeal was made to the INS, within fourteen days of receipt of that notice. 1/1/99 AdminPlan 19-1 1 After receipt of a request for an informal hearing, the hearing is conducted as described in section D of this chapter for both applicants and participants. If the hearing officer decides that the individual is not eligible, and there are no other eligible family members the HA 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 members in the family, the HA will offer to prorate assistance or give the family the option to remove the ineligible members. All other complaints related to eligible citizenhmmigrant 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 family will be denied or terminated for failure to provide. 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 pro-rated (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. 1/1/99 Adminplan 19-12 F. MITIGATING CIRCUMSTANCES FOR APPLICANTS/PARTICIPANTS WITH DISABILITIES [24 CFR 982.204, 982.552(c)] When applicants are denied placement on the waiting list, or the HA is terminating assistance, the family will be informed that presence of a disability may be considered as a mitigating circumstance during the informal review process. Examples of mitigating circumstances are: a) A person with a cognitive disorder that may not have understood the requirement to report increases in income; b) A person that may not understand the need to make regular repayments on a promissory note, c) Minor criminal records for public drunkenness that may be due to medication; or d) Prior incarcerations for being disorderly that may be a result of an emotional disorder. 1/1/99 AdminPlan 19-13 Chapter 20 SPECIAL HOUSING TYPES [24 CFR 982.6011 INTRODUCTION The HA will permit the use of special housing types in its program only if the applicantlparticipant can demonstrate that it is needed as a reasonable accommodation for a person with a disability. Acceptable demonstration will include documentation from one or more knowledgeable professionals who are familiar with the applicantlparticipant and or the type of special housing requested as accommodation. The HA will not pennit the use of special housing types in its program when not requested and needed as a reasonable accommodation for persons with disabilities. The HA will not set aside any program funding for special housing types, or for a special housing type. Verification of Need for Reasonable Accommodation An example of acceptable documentation as verification of the need for reasonable accommodation would be a letter to the HA describing how the special housing type requested provides the accommodation that the person is in need of. The request and documentation will be reviewed by the Housing Program Manager and a written response stating approval or disapproval will be sent to the applicanf/participant within 14 days of receipt of the request. A copy of the HA's response with supporting documentation will be maintained in the applicantlparticipant's file. The requested housing type must be approvable by all other HUD standards and HQS requirements in accordance with 24 CFR 982 Section' M - Special Housing Types. 7/1/98 AdminPlan 20- 1 . A. SINGLE ROOM OCCUPANCY (SROl[24 CFR 982.6021 There are no SROs in the HA's jurisdiction. If applicable, the HA will use a separate lease and housing assistance payment contract for each assisted person residing in a SRO. [24 CFR 982.6031 SRO Rent and Housing Assistance Payment [24 CFR 982.6041 Regular Certificate Program The FMWexception rent limit for SRO housing is 75 percent of the zero bedroom FMWexception rent limit. For a Regular Tenancy in the Certificate Program, the initial gross rent may not exceed the FMWexception rent limit for SRO housing. Voucher Program The HA SRO payment standard will not exceed the FMWexception rent limit for SRO housing. While an assisted person resides in SRO housing, the SRO payment standard must be used to calculate the housing assistance payment. OFT0 Program If an assisted person resides in an SRO with assistance under the OFTO program, the payment standard for the person is the SRO FMWexception rent limit. Utility Allowance The utility allowance for an assisted person residing in SRO housing is 75 percent of the zero bedroom utility allowance. Housing Qualitv Standards The HA 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. 20-2 7/1/98 AdminPlan B. CONGREGATE HOUSING [24 CFR 982.6061 An elderly person or a person with disabilities may reside in a congregate housing unit. The HA may approve a family member or live-in aide to reside with the elderly person or person with disabilities. The HA 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 982.6071 For congregate housing there will be a separate lease and HAP contract for each assisted family. Unless there is a live-in aide, the FMWexception rent limit for a family that resides in a congregate housing unit is the zero-bedroom FMWexception rent limit. However, if there are two or more rooms in the unit (not including kitchen or sanitary facilities), the FMWexception rent limit for a family that resides in a congregate housing unit is the one bedroom FMWexception rent limit. If there is a live-in aide, the live-in aide will be counted in determining the family unit size. Housina Qualitv Standards The HA 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. 7/1/98 AdminPlan 20-3 C. GROUP HOMES [24 CFR 982.6101 A group home must be licensed, certified, or otherwise approved in writing by the State, or the State's licensing department.[24 CFR 982.6121 An elderly person or a person with disabilities may reside in a State-approved group home. If approved by the HA, a live-in aide may reside with a person with disabilities. The HA 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, all residents of a group home must be elderly persons or persons with disabilities. The HA 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 982.61 I] There will be a separate HAP contract and lease for each assisted person living in a group home. For a group home the term "pro-rata portion" means that which is derived by dividing the number of persons in the assisted household by the total number of residents (assisted and unassisted) residing in the group home. The number of persons in the assisted household equals one assisted person plus any HA-approved live-in Aide. Group Home Rent and HAP Contract [24 CFR 982.6131 The rent tu owner for an assisted person may not exceed the pro-rata portion of the reasonable rent for the group home. The reasonable rent for a group home is determined in accordance with 982.503. In determining reasonable rent the HA will consider whether sanitary facilities, and facilities for food preparation and service, are common facilities or private. 7/1/98 AdminPlan 20-4 Maximum Subsidy Unless there is a live-in aide, the family unit size is zero bedroom. If there is a live-in aide, the live-in aide will be counted in determining the family unit size. In a Regular Tenancy for a person who resides in a group home, the initial gross rent may not exceed either the FMWexception rent limit for the family unit size or the pro-rata portion of the FMWexception rent limit for the group home size. For a Voucher Tenancy, 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 for the group home size. For the OFT0 Program, the payment standard for a person who resides in a group home is the lower of the FMWexception rent limit for the family unit size; or the pro-rata portion of the FMWexception rent limit for the group home size. Utilitv 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 HA 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. D. SHARED HOUSING [24 CFR 982.61 51 Occupancy An assisted family may 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 HA may approve a live-in aide to reside with a family in order to care for a person with a. disability. The HA 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. 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. 20-5 7/1/98 AdminPlan 7/1/98 Ahinplan 20-6 A resident owner may enter into a HAP contract with the HA. However, housing assistance may not be paid on behalf of an owner. The HA will not approve assistance for a person or family that is related by blood or marriage to a resident owner. 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 Chapter Eleven, Section E. Maximum Subsidy For the Regular Tenancy program the initial gross rent may not exceed either the FMRlexception rent limit for the family unit size or the pro-rata portion of the FMWexception rent limit for the shared housing unit size. For the Voucher Program or OFT0 Tenancy, the payment standard is the lower of the payment standard for the family unit size or the pro-rata portion of the payment standard for the shared housing unit size. If the HA approves a live-in aide, the live-in aide will be counted in determining the family unit size. 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 HA 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. 20-7 7/1/98 AdminPlan E. COOPERATIVE HOUSING [24 CFR 982.6191 The HA will approve a family living in cooperative housing if it is assistance under the program will help maintain affordability of determined that the cooperative unit for low-income families. The HA will not approve assistance for a family in cooperative housing until the HA 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 Chapter Eleven, Section E. For cooperative housing, the rent to owner is the monthly carrying charge under the occupancy agreementllease 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 Chapter Eleven, Section H. The lease and other appropriate documents will stipulate that the monthly carrying charge is subject to Section 8 limitations on rent to owner. The housing assistance payment will be determined in accordance with the guidelines in Chapter Eleven. The HA may approve a live-in aide to reside with the family to care for a person with disabilities. The HA 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 HA approves a live-in aide, the live-in aide will be counted when determining the family unit size. Housinq Quality Standards The HA will ensure that all cooperative housing units approved for the program are in compliance with all of the Housing Quality Standards outlined in Chapter Ten and regulated by 24 CFR 982.401. 7/1/98 Ahinplan 20-8 F. MANUFACTURED HOMES [24 CFR 982.6201 The HA will permit a family to lease a manufactured home and space with assistance under the program. The HA will provide assistance for a family that owns the manufactured home and leases only the space. The HA may approve a live-in aide to reside with a family to care for a person with disabilities. The HA 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 HA approves a live-in aide, the live-in aide must be counted when determining the family unit size. Housing Quality Standards [24 CFR 982.6211 A manufactured home must meet all the HQS requirements outlined in Chapter Ten 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 982.6221 Rent to owner for a manufactured home space will 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 HA. The HA will not approve a lease for a manufactured home space until the HA has determined that the initial rent to owner for the space is a reasonable rent. At least annuaily during the assisted tenancy, the HA will redetermine that the rent is reasonable. 20-9 7/1/98 AdminPlan The HA will determine whether the rent to owner for a manufactured home space is a reasonable rent in comparison to rents for other comparable manufactured home spaces. The HA 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 HA, 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 HA, the owner must provide the HA information on rents for other manufactured home space. Housing Assistance Payments for Manufactured Home Space [24 CFR 982.6231 The FMR for a manufactured home space will be determined by HUD. Exception rents do not apply. HAP for the Regular Tenancy Program For the Regular Tenancy Program the initial rent to owner for leasing a manufactured 'home space may not exceed the published FMR for a manufactured home space. During the term of tenancy for the Regular Tenancy Program the amount of the monthly housing assistance payment equals the lesser of: The manufactured home space cost minus the higher of: the Total Tenant Payment; or the HA's Minimum Rent; OR The rent to owner for the manufactured home space. "Manufactured home space cost" means the sum of: the amortization cost, the utility allowance, and the rent to owner for the manufactured home space. HAP for the Voucher or OFTO Tenancy For a Voucher or OFTO tenancy, the payment standard is used to calculate the monthly h0usin.g assistance payment for a family. The payment standard for a family renting a manufactured home space is the published FMR for manufactured home space rental. The payment standard will be determined by the HA in accordance with this Plan. 7/1/98 AdminPlan 20-10 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: An amount obtained by subtracting 30 percent of the family's monthly adjusted gross income from the sum of: the amortization cost, the utility allowance, and the payment standard; OR The monthly gross rent for the manufactured home space minus the minimum rent. For the Voucher program the minimum rent is the higher of: 10 percent of monthly gross income, or the HA's minimum rent. Subsidv Calculation for the OFTO Program During the term of an OFTO tenancy, the amount of the monthly housing assistance payment for a family equals the lesser of: An amount obtained by subtracting the family's Total Tenant Payment from the sum of: the amortization cost, the utility allowance, and the payment standard; OR The monthly gross rent for the manufactured home space minus the. HA's minimum rent. Amortization Cost The amortization cost may include debt service to amortize costs (other than furniture costs) included in the purchase price of the manufactured home. The debt service includes the payment for principal and interest on the loan. The debt service amount will be reduced by 15 percent to exclude debt service to amortize the cost of furniture, unless the HA determines that furniture was not included in the purchase price. Any debt service due to refinancing the manufactured home after purchase of the home is not included in the amortization costs. The HA will not approve as part of the monthly amortization payment, set-up charges to be included in the debt service incurred by a family that relocates its home. The HA will not include as part of the monthly amortization payment, set-up charges incurred before the family became an assisted family, if monthly payments are still being made to amortize such charges. . -20- 1 1 7/1/98 AdminPlan 7/1/98 AdminPlan 20- 12 Utility Allowance Schedule for Manufactured Home Space Rental [24 CFR 982.6241 The HA will establish utility allowances for manufactured home space rental. For the first twelve months ofthe 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. 7/1/98 AdminPlan 20-1 3 PROGRAM INTEGRITY ADDENDUM [24 CFR 792.101 to 792.204, 982.541 INTRODUCTION The US Department of HUD conservatively.estimates that 200 million dollars is paid annually to program participants who falsify or omit material facts in order to gain more rental assistance than they are. entitled to under the law. HUD further estimates that 12% of all HUD-assisted families are either totally ineligible, or are receiving benefits which exceed their legal entitlement. The HA 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 HA will take all steps necessary to prevent fraud, waste, and mismanagement so that program.resources are utilized judiciously. This Chapter outlines the HA's policies for the prevention, detection and investigation of program abuse and fraud. A. CRITERIA FOR INVESTIGATION OF SUSPECTED ABUSE AND FRAUD Under no circumstances will the HA undertake an inquiry or an audit of a participating family arbitrarily. The HA's expectation is that participating families will comply with HUD requirements, provisions of the certificate or voucher, and other program rules. The HA staff will make every effort (formally and informally) to orient and educate all families in order to avoid unintentional violations. However, the HA 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, when indicators of possible abuse come to the HA' s attention, to investigate such claims. The HA will initiate an investigation of a participating family only in the event of one or more of the following circumstances: 1. Referrals, Complaints, or Tips. The HA will follow up on referrals from other agencies, companies or persons which are received by mail, by telephone or in person, which allege that a family is in non-compliance with, or otherwise violating the family obligations or any other program rules. Such follow-up will be made providing that the referral contains at least one item of information that is independently verifiable.. A copy of the allegation will be retained in the family's file. 7/1/98 AdminPlan PI Addendum-1 2. Internal File Review. A follow-up will be made if HA staff discovers (as a function of a certification or recertification, an interim redetermination, or a quality control review), information or facts which conflict with previous file data, the HA's knowledge of the family, or is'discrepant with statements made by the family. 3. Verification of Documentation. A follow-up will be made if the HA receives independent verification or documentation which conflicts with representations in the family's file (such as public record information or credit bureau reports, reports from other agencies). B. STEPS THE HA WILL TAKE TO PREVENT PROGRAM ABUSE AND FRAUD The HA 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. I. 2. 3. 4. 5. Things You Should Know. This program integrity bulletin (created by HUD's Inspector General) will be furnished and explained to all applicants to promote understanding of program rules, and to clarify the HA's expectations for cooperation and compliance. Program Orientation Session. Mandatory orientation sessions will be conducted by the HA staff for all prospective program participants, either prior to or upon issuance of a certificate or voucher. At the conclusion of all Program Orientation Sessions, the family representative will be required to sign a "Program Briefing Certificate" to confirm that all rules and pertinent regulations were explained to them. Participant Counseling. The HA will routinely provide participant counseling as a part of every recertification interview in order to clarii any confusion pertaining to program rules and requirements. Review and explanation of Forms. Staff will explain all required forms and review the contents of all (re)certification documents prior to signature. Use of Instructive Signs and Warnings. Instructive signs will be conspicuously posted in common areas and interview areas to reinforce compliance with program rules and to warn about penalties for fraud and abuse. 7/1/98 AdminPlan PI Addendum-2 C. STEPS THE HA WILL TAKE TO DETECT PROGRAM ABUSE AND FRAUD The HA Staff will maintain a high level of awareness to indicators of possible abuse and fraud by assisted families. Quality Control File Reviews. Prior to initial certification, each participant file will be reviewed. Such reviews shall include, but are not limited to: Assurance that verification of all income and deductions is present. Changes in reported Social Security Numbers or dates of birth. Authenticity of file documents. . Discrepancies between reported income and expenditures. Review of signatures for consistency with previously signed file documents. All forms are correctly dated and signed. Observation. The HA Management and Occupancy Staff (to include inspection personnel) will maintain high awareness of circumstances which may indicate program abuse or fraud, such as unauthorized persons residing in the household and unreported income. Observations will be documented in the family's file. Public Record Bulletins may be reviewed by Management and Staff. State Wage Data Record Keepers. Inquiries to State Wage and Employment record keeping agencies as authorized under Public Law 100-628, the Stewart B. McKinley Homeless Assistance Amendments Act of 1988, may be made annually in order to detect unreported wages or unemployment compensation benefits. Credit Bureau Inquiries. Credit Bureau inquiries may be made (with proper authorization by the participant) in the following circumstances: At the time of final eligibility determination When an allegation is received by the HA wherein unreported income sources are disclosed. When a participant's expenditures exceed hidher reported income, and no plausible explanation is given. 7/1/98 AdminPlan PI Addendum3 D. THE HA'S HANDLING OF ALLEGATIONS OF POSSIBLE ABUSE .AND FRAUD The HA staff will encourage all participating families to report suspected program abuse. All such referrals, as well as referrals from community members and other agencies, will be thoroughly documented and placed in the participant's file. All allegations, complaints and tips will be carefully evaluated in order to determine if they warrant follow-up. The HA will not follow up on allegations which are vague or otherwise non-specific. They will only review allegations which contain one or more independently verifiable facts. 1. File Review. An internal file review will be conducted to determine: If the subject of the allegation is a client of the HA and, if so, to determine whether or not the information reported has been previously disclosed by the family. It will then be determined if the HA is the most appropriate authority to do a follow-up (more so than police or social services). Any file documentation of past behavior as well as corroborating complaints will be evaluated. 2. . Conclusion of Preliminary Review. If at the conclusion of the preliminary file review there is/are fact(s) contained in the allegation which conflict with file data, and the fact(s) are independently verifiable, the HA will initiate an investigation to determine if the allegation is true or false. E. OVERPAYMENTS TO OWNERS If the landlord has been overpaid as a result of fraud, misrepresentation or violation of the Contract, the HA may terminate the Contract and arrange for restitution to the HA and/or family as appropriate. The HA will make every effort to recover any overpayments made as a result of landlord fraud or abuse. Payments otherwise due to the owner may be debited in order to repay the HA or the tenant, as applicable. PI Addendum4 7/1/98 AdminPlan F. HOW THE HA WILL INVESTIGATE ALLEGATIONS OF ABUSE AND FRAUD If the HA 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. The steps taken will depend upon the nature of the allegation and may include, but are not limited to', the items listed below. In all cases, the HA will secure the written authorization from the program participant for the release of information. Credit Bureau Inquiries. In cases involving previously unreported income sources, a CBI inquiry may be made to determine if there is financial activity that conflicts with the reported income of the family. Verification of Credit. In cases where the financial activity conflicts with file data, a verification of Credit form may be mailed to the creditor in order to determine ' the, unreported income source. Employers and Ex-Employers. Employers or ex-employers may be contacted to verify wages which may have been previously undisclosed or misreported. . Other Agencies. Investigators, case workers or representatives of other benefit agencies may be contacted. Public Records. If relevant, the HA will review public records kept in any jurisdictional courthouse. Examples of public records which may be checked are: real estate, marriage, divorce, uniform commercial code financing statements, voter registration, judgments, court or police records, state wage records, utility records and postal records. Interviews with Head of Household or Family Members. The HA will discuss the allegation (or details thereof) with the Head of Household or family member by scheduling an office appointment for a conference. A high standard of courtesy and professionalism will be maintained by the HA staff person who conducts such interviews. Under no circumstances will inflammatory language, accusation, or any unprofessional 'conduct or language be tolerated by the management. If possible, an additional staff person will attend such interviews. 7/1/98 AdminPlan PI Addendum-5 G. PLACEMENT OF DOCUMENTS, EVIDENCE AND STATEMENTS OBTAINED BY THE HA Documents and other evidence obtained by the HA 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 file cabinet. Such cases under review will not be discussed among HA Staff unless they are involved in the process, or have information which may assist in the investigation. H. CONCLUSION OF THE HA'S INVESTIGATIVE REVIEW At the conclusion of the investigative review, the reviewer will report the findings to the Executive Director or designee. It will then be determined whether a violation has occurred, a violation' has not occurred, or if the facts are inconclusive. 1. EVALUATION OF THE FINDINGS If it is determined'that a program violation has occurred, the HA will review the facts to determine: 1. The type of violation (procedural, non-compliance, fraud). 2. Whether the violation was intentional or unintentional. 3. What amount of money (if any) is owed by the family. 4. If the family is eligible for continued occupancy. 7/1/98 AdminPlan PI Addendum4 J. ACTION PROCEDURES FOR VIOLATIONS WHICH HAVE BEEN DOCUMENTED Once a program violation has been documented, the HA will propose the most appropriate remedy based upon the type and severity of the violation. 1. Procedural Nonlcompliance. This category applies when the family "fails to" observe a procedure or requirement .of the HA , but does not misrepresent a material fact, and there is no retroactive assistance payments owed by the family. Examples of non-compliance violations are: Failure to appear at a pre-scheduled appointment. Failure to return verification in time period specified by the HA. (a) Warning Notice to the Family.. In such cases a notice will be sent to the family which contains the following: A description of the nonlcompliance and the procedure, policy or obligation which was violated. The date by-which the violation must be corrected, or the procedure complied with. The action which will be taken by the HA if the procedure or obligation is not complied with by the date specified by the HA. The consequences of repeated (similar) violations. 2. Procedural Nonlcompliance - Overpaid Assistance. When the family owes money to the HA for failure to report changes in income or assets, the HA will issue a Notification of Overpayment of Assistance. This Notice will contain the following: - A description of the violation and the date@). - Any amounts owed to the HA . - A 14 day response period. - The right to disagree and to request an informal hearing with instructions for the request of such hearing. 7/1/98 AdminPlan PI Addendum-7 (a) Participant Fails to Complv with HA's Notice. If the Participant fails to comply with the HA's notice, and a family obligation has been violated, the HA will initiate termination of assistance. (b) Participant Complies with HA's Notice. When a family complies with the HA's notice, the staff person responsible will meet with himlher to discuss and explain the Family Obligation or program rule which was violated. The staff person will complete a Participant Conference Report, give one copy to the family and retain a copy in the family's file. 3. Intentional Misrepresentations. When a participant falsifies, misstates, omits or otherwise misrepresents a material fact which results (or would have resulted) in an overpayment of housing assistance by the HA, the HA will evaluate whether or not: - The participant had knowledge that hidher actions were wrong, and - The participant willfully violated the family obligations or the law. Knowledge that the action or inaction was wrong. This will be evaluated by determining if the participant was made aware of program requirements and prohibitions. The participant's signature on various certification, briefing certificate, Personal Declaration and Things You Should Know are adequate to establish knowledge of wrongdoing. The participant willfullv violated the law. Any of the following circumstances will be considered adequate to demonstrate willful intent: An admission by the participant of the misrepresentation. That the act was done repeatedly. If a false name or Social Security Number was used. If there were admissions to others of the illegal action or omission. That the participant omitted material facts which were known to him/her (e.g., employment of self or other household member). That the participant falsified, forged or altered documents. That the participant uttered and certified to statements at an interim (re)determination which were later independently verified to be false. 7/1/98 AdminPlan PI Addendum-8 4. Dispositions of Cases Involving Misrepresentations. In all cases of misrepresentations involving efforts to recover monies owed, the HA may pursue, depending upon its evaluation of the criter/a stated above, one or more of the following actions: (a) Criminal Prosecution: If the HA has established criminal intent, and the case meets the criteria for prosecution, the HA will: Refer the case to the local State or District Attorney, notify HUD's RIGI, and terminate rental assistance. Refer the case to HUD's RIGI, and terminate rental assistance. (b) Administrative Remedies: The HA will: Terminate assistance and execute an administrative repayment agreement in accordance with the HA's Repayment Policy. Permit continued assistance at the correct level and execute an administrative repayment agreement in accordance with the HA's repayment policy. 5. The Case Conference for Serious Violations and Misrepresentations. When the HA has established that material misrepresentation(s) have occurred, a Case Conference will be scheduled with the family representative and the HA staff person who is most ,knowledgeable about the circumstances of the case. This conference may take place prior to any proposed action by the HA. The purpose of such conference is to review the information and evidence obtained by the HA with the participant, and to provide the participant an opportunity to explain any document findings which conflict with representations in the family's file. Any documents or mitigating circumstances presented by the family will be taken into consideration by the HA . The family will be given 15 days to furnish any mitigating evidence. I PI Addendum-9 7/1/98 AdminPlan A secondary purpose of the Participant Conference is to assist the HA in determining the course of action most appropriate for the case. Prior to the final determination of the proposed action, the HA will consider: The duration of.the violation and number of false statements. The family's ability to understand the rules. The family's willingness to cooperate, and to accept responsibility for hidher actions. The amount of money involved. The family's past history. Whether or not criminal intent has been established. The number of false statements. 6. Notification to Participant of Proposed Action. The HA will notify the family of the proposed action no later than 14 days after the case conference by certified mail. PI Addendum- 10 7/1/98 AdminPlan GLOSSARY A. ACRONYMS USED IN SUBSIDIZED HOUSING AAF ACC BR CDBG CFR CPI CR FDIC FHA FICA FmHA FMR FY FYE GRO GFC GR HA HAP HAP Plan HCDA Annual Adjustment Factor. A factor published by HUD in the Federal Register which is used to compute annual rent adjustment. Annual Contributions Contract Bedroom Community Development Block Grant 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. Consumer Price Index. CPI is published monthly by the Department of Labor as an inflation indicator. Contract Rent Federal Deposit Insurance Corporation Federal Housing Administration Federal Insurance Contributions Act - Social Security taxes Farmers Home Administration Fair Market Rent Fiscal Year Fiscal Year End Government Accounting Office Gross Family Contribution. Note: Has been replaced by the term Total Tenant Payment (lTP). Gross Rent Housing Agency Housing Assistance Payment Housing Assistance Plan Housing and Community Development Act 7/1/98 AdminPlan GL- 1 7/1/98 AdminPlan GL-2 HQS Housing Quality Standards HUD The Department of Housing and Urban Development or its designee. HURRA Housing and Urban/Rural Recovery Act of 1983 IG Inspector General IGR Independent Group Residence IPA Independent Public Accountant IRA Individual Retirement Account MSA Metropol.itan Statistical Area established by the US. Census Bureau PMSA A Primary Metropolitan Statistical Area established by the U.S. Census Bureau PS Payment Standard QC Quality Control RFLA Request for Lease Approval RFP Request for Proposals RRP Rental Rehabibtion Program SRO Single Room Occupancy SSMA Standard Statistical Metropolitan. Area. Has been replaced by MSA, Metropolitan Statistical Area. TR Tenant Rent TTP Total Tenant Payment UA Utility Allowance URP Utility Reimbursement Payment 7/1/98 AdminPlan GL-3 B. GLOSSARY OF TERMS IN SUBSIDIZED HOUSING ADMINISTRATIVE PLAN. The HUD required written policy of the HA governing its administration of the Section 8 Certificate and Voucher program. The Administrative Plan and any revisions must be approved by the HAS board and a copy submitted to HUD. ABSORPTION. In portability, the point at which a receiving HA stops billing the initial HA for assistance on behalf of a portability family. The receiving HA uses funds available under the receiving HA consolidated ACC. ACC RESERVE ACCOUNT (FORMERLY "PROJECT RESERVE"). Account established by HUD from amounts by which the maximum payment to the HA under the consolidated ACC (during an HA 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 HA for administration of the program. ADMINISTRATIVE FEE RESERVE (Formerly "Operating reserve"). Account established by HA from excess administrative fee income. The administrative fee reserve must be used for housing purposes. 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. ANNUAL CONTRIBUTIONS CONTRACT (ACC). A written contract between HUD and an HA. Under the contract HUD agrees to provide funding for operation of the program, and the HA 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 INCOME AFTER ALLOWANCES. 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.) 7/1/98 AdminPlan GL-4 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) BMlR tenants, except those paying the 236 market rent or 120% of the BMlR rent, respectively. BUDGET AUTHORITY. An amount authorized and appropriated by the Congress for payment to HAS under the program. For each funding increment in an HA program, budget authority is the maximum amount that may be paid by HUD to the HA over the ACC term of the funding increment. CERTIFICATE. A Certificate issued by the PHA under the Section 8 Rental Assistance Program, declaring a family to be eligible for participation in this program and stating the terms and conditions for such participation. CERTIFICATE OR VOUCHER HOLDER. A family holding a voucher or certificate with unexpired search time. CERTIFICATE PROGRAM. Rental certificate program. CHILD CARE 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 hisher education. 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. CONSOLIDATED ANNUAL CONTRIBUTIONS CONTRACT. (Consolidated ACC). See 24 CFR 982.1 51. CONTIGUOUS MSA. In portability, an MSA that shares a common boundary with the MSA in which the jurisdiction of the initial HA 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.) 71 1 I98 AdminPlan GL-5 CONTRACT AUTHORITY. The maximum annual payment by HUD to an HA for a funding increment. 71 1/98 AdminPlan GL-6 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. 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 membe.rs which enable a family member (including the disabled family member) to work. DISABLED PERSON. A person who is any of the following: A person who has a disability as defined in section 223 of the Social Security Act. (42 U.S.C.423). 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; and (iii) Is of such a nature that ability to live independently could be improved by 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)). more suitable housing conditions. DISABLED FAMILY. A family where the head or spouse meet any of the above criteria for disabled person. DISPLACED PERSONIFAMILY. 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 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)). 7/1/98 AdminPlan GL-7 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 wellbeing. 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 HA in the Administrative Plan, which is approved by HUD. EXCEPTIONAL MEDICAL OR OTHER EXPENSES. Prior to the regulation .change in 1982, this meant medical and/or unusual expenses as defined in Part 889 which exceeded 25% of the Annual Income. It is no longer used. 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 HA under prescribed conditions, and is used in determining the initial contract rent. In the voucher program the HA may adopt a payment standard up to the exception rent limit approved by HUD for the HA 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. FAIR MARKET RENT (FMR). The rent including the cost of utilities (except telephone) that would be required to be paid in the housing market area to obtain privately owned existing decent, safe and sanitary rental housing of modest (non-luxury) nature with suitable amenities. Fair market rents for existing housing are established by HUD for housing units of varying sizes (number of bedrooms) and are published in the Federal Register. 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 FAMILY SELF-SUFFICIENCY PROGRAM (FSS PROGRAM). The program established by an HA to promote self-sufficiency of assisted families, including the provision of supportive services. GL-8 7/1/98 Adminplan FAMILY SHARE. The amount calculated by subtracting the housing assistance payment from the gross rent. 7/1/98 AdminPlan . GL-9 .. FAMILY UNIT SIZE. The size of the Certificate or Voucher issued to the family based on the HA’s subsidy standards. FEDERAL PREFERENCE. A preference under federal law for admission of applicant families that are any of the following: (1) Involuntarily displaced. (2) Living in substandard housing (including families that are homeless or living in a shelter for the homeless). (3) Paying more than 50 percent of family income for rent. FEDERAL PREFERENCE HOLDER. An applicant that qualifies for a federal preference. FMWEXCEPTION RENT LIMIT. The section 8 existing housing fair market rent published by HUD headquarters or any exception rent. In the certificate program the initial contract rent for a dwelling unit plus any utility allowance may not exceed the FMFUexception rent limit (for the dwelling unit or for the family unit size). In the voucher program the HA may adopt a payment standard up to the FMWexception rent limit. FOSTER CHILD CARE 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 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 an HA under the consolidated annual contributions contract for the HA program. GROSS FAMILY CONTRIBUTION. Changed to Total Tenant Payment. 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. 7/1/98 AdminPlan GL- 1 0 HOUSING AGENCY. A state, country, municipality or other governmental entity or public body authorized to administer the program. The term "HA" includes an Indian housing authority (IHA). ("PHA" and "HA" mean the same thing.) 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 an HA. The total assistance payment consists of: (1) A payment to the owner for rent to owner under the family's lease. (2) An additional payment to the family if the total assistance payment exceeds the rent to owner. The additional payment is called a "utility reimbursement" payment. HOUSING ASSISTANCE PAYMENTS CONTRACT. (HAP contract). A written contract between an HA and. an owner in the form prescribed by HUD headquarters, in which the HA agrees to make housing assistance payments to the owner on behalf of an eligible family. HOUSING ASSISTANCE PLAN. (1 ) A Housing Assistance Plan submitted by a local government participating in the Community Development Block Program as part of the block grant application, in accordance with the requirements of 570.303(c) submitted by a local government not participating in the Communlty Development Block Grant Program and approved by HUD. (2) A Housing Assistance Plan meeting the requirements of 570.303(c) submitted by a local government not participating in the Community Development Block Grant Program and approved by HUD. 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 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. 7/1/98 AdminPlan GL- 1 1 INITIAL HA. In portability, the term refers to both: (1) An HA that originally selected a family that later decides to move out of the jurisdiction of the selecting HA; and (2) An HA that absorbed a family that later decides to move out of the jurisdiction of the absorbing HA. INITIAL PAYMENT STANDARD. The payment standard at the beginning of the HAP contract term. INITIAL RENT TO OWNER. The rent to 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. Any person recognized as an Indian or Alaska Native by an Indian Tribe, the federal government, or any State. 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) BMlR projects. Includes monthly interest reduction payments made to mortgagees of Section 236 projects and front-end loan discounts paid on BMlR projects. INVOLUNTARILY DISPLACED PERSON. Involuntarily Displaced Applicants are applicants who meet the HUD definition for the federal preference. JURISDICTION. The area in which the HA has authority under State and local law to administer the program. LANDLORD. This term means either the owner of the property or hidher representative or the managing agent or hidher representative, as shall be designated by the owner. LARGE VERY LOW INCOME FAMILY. Prior to the 1982 regulations, this meant a very low income family which included six or more minors. This term is no longer used. GL- 12 7/1/98 AdminPlan 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 with housing assistance payments under a HAP contract between the owner and the HA (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 HA. 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 HA 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 rent HUD authorizes the owner of FHA insured/subsidized multi- family housing to collect from families ineligible for assistance. For unsubsidized units in an FHA-insured multi-family project in which a portion of the total units receive project- based rental assistance, under the Rental Supplement or Section 202/Section 8 Programs, the Market Rate Rent is that rent approved by HUD and is the Contract Rent 7/1/98 AdminPlan GL- 13 for a Section 8 Certificate holder. For BMlR units, Market Rent varies by whether the project is a rental or cooperative. 7/1/98 AdminPlan GL- 14 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 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). MONTHLY ADJUSTED INCOME. 1/12 of the Annual Income after Allowances or Adjusted Income. MONTHLY INCOME. 1/12 of the Annual 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. NEGATIVE RENT. Now called Utility Reimbursement. A negative Tenant Rent results in a Utility Reimbursement Payment (URP). 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. NET FAMILY CONTRIBUTION. Former name for Tenant Rent. 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 an HA to determine the appropriate number of bedrooms for families of different sizes and compositions. OVER-FMR TENANCY (OFTO). In the Certificate program: A tenancy for which the initial gross rent exceeds the FMWexception rent limit. 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 HA's certificate program or voucher program. The family becomes a participant on the effective date of the first HAP contract executed by the HA for the family (First day of initial lease term). 7/1/98 AdminPlan GL-15 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 HA sets a payment standard in the range from 90 to 100 percent of the current FMWexception rent limit. For an over-FMR tenancy, the payment standard equals the current FMWexception 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 HA PREMISES. The building or complex in which the dwelling unit is located, including common areas and grounds. PRIVATE SPACE. In shared housing: The portion of a contract unit that is for the exclusive use of an assisted family. 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 AGENCY (PHA). A state, county, municipality, or other governmental entity or public body authorized to administer the programs. The term "PHA" includes an Indian housing authority (IHA). ("PHA" and "HA" mean the same thing.) In this rule, a "PHA" is referred to as a "housing agency" (HA). RANKING PREFERENCE. A preference used by the HA to select among applicant families that qualify for federal preference. REASONABLE RENT. A rent to 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 HA. In portability: An HA that receives a family selected for participation in the tenant-based program of another HA. The receiving HA 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. REGULAR TENANCY. In the Certificate program: A tenancy other than an over-FMR tenancy. 7/1/98 AdminPlan GL- 1 6 REMAINING MEMBER OF TENANT FAMILY. Person left in assisted housing after other family members have left and become unassisted. RENT TO OWNER. The total monthly rent payable to the owner under the lease for the unit. Rent to owner covers payment for any housing services, maintenance and utilities that the owner is required to provide and pay for. RESIDENT ASSISTANT. A person who lives in an Independent Group Residence and provides on a daily basis some or all of the necessary services to elderly, handicapped, and disabled individuals receiving Section 8 housing assistance and who is essential to these individuals' care or wellbeing. A Resident Assistant shall not be related by blood, marriage or operation of law to individuals receiving Section 8 assistance nor contribute to a portion of hidher income or resources towards the expenses of these individuals. SECRETARY. The Secretary of Housing and Urban Development. SECURITY DEPOSIT. A dollar amount which can be applied to unpaid rent, damages or other amounts owed.to the owner under the lease. SINGLE PERSON. A person living alone or intending to live alone. SPECIAL ADMISSION. Admission of an applicant that is not on the HA 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 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; 7/1/98 AdminPlan GL- 1 7