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Home My WebLink About20060880.tiff RESOLUTION RE: APPROVE ADMINISTRATIVE PLAN FOR THE SECTION 8 HOUSING CHOICE VOUCHER SYSTEM WHEREAS,the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS,the Board has been presented with an Administrative Plan for the Section 8 Housing Choice Voucher Program between the County of Weld,State of Colorado,by and through the Board of County Commissioners of Weld County,on behalf of the Greeley/Weld County Housing Authority, with terms and conditions being as stated in said administrative plan, and WHEREAS,after review,the Board deems it advisable to approve said plan,a copy of which is attached hereto and incorporated herein by reference. NOW,THEREFORE,BE IT RESOLVED by the Board of County Commissioners of Weld County,Colorado,that the Administrative Plan for the Section 8 Housing Choice Voucher Program between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County,on behalf of the Greeley/Weld County Housing Authority,be,and hereby is, approved. The above and foregoing Resolution was,on motion duly made and seconded,adopted by the following vote on the 27th day of March, A.D., 2006. BOARD OF s•UNTY COMMISSIONERS id ,tN . I. / \WELD CO/TY, COLORADO ATTEST: ' .,1 �, ' . J. Geile, Chair Weld County Clerk to the i�. XCUSED [tit* /al l C�►, � David E. Long, Pro-Tem BY: De ty Cler to the Board, /C/-✓ William H. Jerke APP D AS M: EXCUSED Robert D. Masde unty Attorney Alu,a I Glenn Vaad - Date of signature: 2006-0880 HA0026 00 ,, * / 044- Il -Ofo tirm‘t, TO: Weld County Housing Authority FROM: Thomas Teixeira, Director IIIID C RE: Housing Authority Work Session Centennial Center, Room 350 O February 22, 2006 3:45pm COLORADO DATE: February 21, 2006 TYPE OF BOARD ITEM CONSIDERATION 1. Policy/Position Clarification A. Approval of the Administration Plan Action (Attachment A) B. Approval for Project Base Vouchers Action (Attachment B) 2. Monthly Reports A. Section 8 Location Report Information (Attachment C) B. Financials Information (Attachment D) 2006-0880 GREELEY/WELD iii‘ HOUSING AUTHORITIES 315 N. 11th Avenue, Bldg. B February 15, 2006 No, P.O. Box 130 Greeley, Colorado 80632-0130 (970) 346-7660 (970) 346-7690 Fax (800) 659-2656 TTY Relay TO: Board of Commissioners Weld County Housing Authority From: Tom Teixiera Enclosed is a major revision to the Section 8 Administrative Plan. HUD requires all Housing Authorities to have an Administrative Plan explaining the detailed manner in which they will administer the Section 8 Voucher Program. We subscribe to a service from Nan Mckay, a recognized expert in the administration of the Section 8 program to provide us a model plan on a disk. The plan as presented to you incorporates 95 plus percent of the model. The changes we have incorporated are mostly in the time limits to provide paper work or cases where the model required specific language from the Authority detailing its practice in a matter. Those of the members who have been on the board for a couple of years will realize that the volume of the plan has doubled in size. If you looked at plans that were consider sufficient 10 years ago they would have not been more than 50 pages. The reason for the increased volume is two fold. HUD produced a 500 page guide book three years ago on what they considered the best practices in administering a Section 8 program. This change incorporates and spells out those practices. The second reason is as the plan has been used by many Housing Authorities there have been court cases whose outcome have pointed out the need for spelling out local practices in more detail HUD requires the Board of Commissioners to approve the adoption of this plan and I would like to have it approved at the February meeting if possible. This meeting will be held at Social Services as the new office space will not be ready ini Housing Authority of the City of Greeley • Weld County Housing Authority "...Nu, ADMINISTRATIVE PLAN FOR THE SECTION 8 HOUSING CHOICE VOUCHER PROGRAM Approved by the HA Board of Commissioners: Submitted to HUD; T Administrative Plan-Table of Contents Introduction ABOUT THE REFERENCES CITED IN THE MODEL ADMINISTRATIVE PLAN Chapter 1 OVERVIEW OF THE PROGRAM AND PLAN PART I: THE PHA 1-1 1-I.A. Overview 1-1 1-I.B. Organization And Structure Of The PHA 1-2 1-I.C. PHA Mission 1-2 1-I.D. The PHA's Programs 1-3 1-I.E. THE PHA's Commitment To Ethics And Service 1-3 PART II. THE HOUSING CHOICE VOUCHER (HCV) PROGRAM 1-5 1-II.A. Overview And History Of The Program 1-5 1-II.B. HCV Program Basics 1-7 1-II.C. The HCV Partnerships 1-7 The HCV Relationships 1-8 What does HUD do? 1-9 What does the PHA do? 1-9 What does the Owner do? 1-10 What does the Family do? 1-11 1-II.D. Applicable Regulations 1-12 PART III. THE HCV ADMINISTRATIVE PLAN 1-13 1-III.A. Overview And Purpose Of The Plan 1-13 1-III.B. Contents Of The Plan (24CFR 982.54) 1-13 New Approach to Policy Development 1-15 1-III.C. Organization Of The Plan 1-15 1-III.D. Updating And Revising The Plan 1-15 ®Copyright 2005 Nan McKay&Associates TOC-1 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan -Table of Contents Chapter 2 FAIR HOUSING AND EQUAL OPPORTUNITY PART I: NONDISCRIMINATION 2-3 2-I.A. Overview 2-3 2-I.B. Nondiscrimination 2-4 Providing Information to Families and Owners 2-5 Discrimination Complaints 2-5 PART II: POLICIES RELATED TO PERSONS WITH DISABIILTIES 2-7 2-II.A. Overview 2-7 2-II.B. Definition Of Reasonable Accommodation 2-8 Types of Reasonable Accommodations 2-8 2-II.C. Request for an Accommodation 2-9 2-II.D. Verification of Disability 2-10 2-II.E. Approval/Denial Of A Requested Accommodation [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act]. 2-11 2-II.F. Program Accessibility for Persons with Hearing or Vision Impairments 2-12 2-II.G. Physical Accessibility 2-13 2-II.H. Denial or Termination of Assistance 2-14 PART III: IMPROVING ACCESS TO SERVICES FOR PERSONS WITH LIMITED ENGLISH PROFICIENCY (LEP) 2-15 2-III.A. Overview 2-15 2-III.B. Oral Interpretation 2-16 2-III.C. Written Translation 2-16 2-III.D. Implementation Plan 2-17 Exhibit 2-1: Definition Of A Person With A Disability Under Federal Civil Rights Laws [24 CFR Parts 8.3, and 100.201] 2-19 ®Copyright 2005 Nan McKay&Associates TOC-2 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan -Table of Contents Chapter 3 ELIGIBILITY PART I: DEFINITIONS OF FAMILY AND HOUSEHOLD MEMBERS 3-3 3-I.A. Overview 3-3 3-I.B. Family And Household [24 CFR 982.201(c), HUD-50058 IB, p. 13] 3-3 Family 3-3 Household 3-3 3-I.C. Family Break-Up And Remaining Member Of Tenant Family 3-4 Family Break-up [24 CFR 982.315] 3-4 Remaining Member of a Tenant Family [24 CFR 5.403] 3-4 3-I.D. Head Of Household [24 CFR 5.504(b)] 3-5 3-I.E. Spouse, Cohead, And Other Adult 3-5 3-I.F. Dependent [24 CFR 5.603] 3-6 Joint Custody of Dependents 3-6 3-I.G. Full-Time Student [24 CFR 5.603, HVC GB p. 5-29] 3-6 3-I.H. Elderly And Near-Elderly Persons, And Elderly Family [24 CFR 5.100 and 5.403] 3-6 Elderly Persons 3-6 Near-Elderly Persons 3-6 Elderly Family 3-6 3-I.I. Persons With Disabilities And Disabled Family [24 CFR 5.403] 3-7 Persons with Disabilities 3-7 Disabled Family 3-7 3-I.J. Guests [24 CFR 5.100] 3-7 3.I.K. Foster Children And Foster Adults 3-8 3-I.L. Absent Family Members 3-8 Definitions of Temporarily and Permanently Absent 3-8 Absent Students 3-8 Absences Due to Placement in Foster Care [24 CFR 5.403] 3-9 Absent Head, Spouse, or Cohead 3-9 Family Members Permanently Confined for Medical Reasons [HCV GB, p. 5-22] 3-9 Return of Permanently Absent Family Members 3-9 3-I.M. Live-In Aide 3-10 ©Copyright 2005 Nan McKay&Associates TOC-3 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan-Table of Contents PART II: BASIC ELIGIBILITY CRITERIA 3-11 3-II.A. Income Eligibility And Targeting 3-11 Income Limits 3-11 Types of Low-Income Families [24 CFR 5.603(b)] 3-11 Using Income Limits for Eligibility [24 CFR 982.201] 3-11 Using Income Limits for Targeting [24 CFR 982.201] 3-12 3-II.13. Citizenship Or Eligible Immigration Status [24 CFR 5, Subpart E] 3-13 Declaration [24 CFR 5.508] 3-13 Mixed Families 3-14 Ineligible Families [24 CFR 5.514(d), (e), and (1)] 3-14 Timeframe for Determination of Citizenship Status [24 CFR 5.508(g)] 3-15 3-II.C. Social Security Numbers [24 CFR 5.216 and 5.218] 3-15 3-II.D. Family Consent To Release Of Information [24 CFR 5.230, HCV GB,p. 5-13] 3-16 PART III: DENIAL OF ASSISTANCE 3-17 3-III.A. Overview 3-17 Forms of Denial [24 CFR 982.552(a)(2); HCV GB, p. 5-35] 3-17 Prohibited Reasons for Denial of Assistance [24 CFR 982.202(b)] 3-17 3-III.B. Mandatory Denial Of Assistance [24 CFR 982.553(a)] 3-18 3-III.C. Other Permitted Reasons For Denial Of Assistance 3-19 Criminal Activity [24 CFR 982.553] 3-19 Previous Behavior in Assisted Housing [24 CFR 982.552(c)] 3-20 3-III.D. Screening 3-21 Screening for Eligibility 3-21 Screening for Suitability as a Tenant [24 CFR 982.307] 3-22 3-III.E. Criteria For Deciding To Deny Assistance 3-23 Evidence [24 CFR 982.553(c)] 3-23 Consideration of Circumstances [24 CFR 982.552(c)(2)] 3-23 Removal of a Family Member's Name from the Application [24 CFR 982.552(c)(2)(ii)] 3-24 Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)] 3-24 3-III.F. Notice Of Eligibility Or Denial 3-25 Eligible for Assistance 3-25 Exhibit 3-1: Detailed Definitions Related To Disabilities 3-27 Person with Disabilities [24 CFR 5.403] 3-27 Individual with Handicaps [24 CFR 8.3] 3-28 ®Copyright 2005 Nan McKay&Associates TOC-4 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan -Table of Contents Chapter 4 APPLICATIONS,WAITING LIST AND TENANT SELECTION PART I: THE APPLICATION PROCESS 4-3 4-I.A. Overview 4-3 4-I.B. Applying For Assistance [HCV GB, pp. 4-11 —4-16] 4-3 4-I.C. Accessibility Of The Application Process 4-4 Elderly and Disabled Populations [24 CFR 8 and HCV GB, pp. 4-11 —4-13] 4-4 Limited English Proficiency 4-4 4-I.D. Placement On The Waiting List 4-5 Ineligible for Placement on the Waiting List 4-5 Eligible for Placement on the Waiting List 4-5 PART II: MANAGING THE WAITING LIST 4-7 4-II.A. Overview 4-7 4-II.B. Organization Of The Waiting List [24 CFR 982.204 and 205] 4-7 4-II.C. Opening And Closing The Waiting List [24 CFR 982.206] 4-8 Closing the Waiting List 4-8 Reopening the Waiting List 4-8 4-II.D. Family Outreach [HCV GB, pp. 4-2 to 4-4] 4-9 4-II.E. Reporting Changes In Family Circumstances 4-10 4-II.F. Updating The Waiting List [24 CFR 982.204] 4-10 Purging the Waiting List 4-10 Removal from the Waiting List 4-11 PART III: SELECTION FOR HCV ASSISTANCE 4-13 4-III.A. Overview 4-13 4-III.B. Selection And HCV Funding Sources 4-13 Special Admissions [24 CFR 982.203] 4-13 Targeted Funding [24 CFR 982.204(e)] 4-13 Regular HCV Funding 4-13 4-III.C. Selection Method 4-14 Local Preferences [24 CFR 982.207; HCV p. 4-16] 4-14 Income Targeting Requirement [24 CFR 982.201(b)(2)] 4-14 Order of Selection 4-15 4-III.D. Notification Of Selection 4-16 4-III.E. The Application Interview 4-16 4-III.F. Completing The Application Process 4-18 ©Copyright 2005 Nan McKay&Associates TOC-5 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan -Table of Contents Chapter 5 BRIEFINGS AND VOUCHER ISSUANCE PART I: BRIEFINGS AND FAMILY OBLIGATIONS 5-1 5-I.A. Overview 5-1 5-I.B. Briefing [24 CFR 982.301] 5-2 Notification and Attendance 5-2 Oral Briefing [24 CFR 982.301(a)] 5-3 Briefing Packet [24 CFR 982.301(b)] 5-4 Additional Items to be Included in the Briefing Packet 5-5 5-I.C. Family Obligations 5-6 Time Frames for Reporting Changes Required By Family Obligations 5-6 Family Obligations [24 CFR 982.551] 5-6 PART II: SUBSIDY STANDARDS AND VOUCHER ISSUANCE 5-11 5-II.A. Overview 5-11 5-II.B. Determining Family Unit (Voucher) Size [24 CFR 982.402] 5-11 5-II.C. Exceptions To Subsidy Standards 5-13 5-II.D. Voucher Issuance [24 CFR 982.302] 5-14 5-II.E. Voucher Term, Extensions, And Suspensions 5-15 Voucher Term [24 CFR 982.303] 5-15 Extensions of Voucher Term [24 CFR 982.303(b)] 5-15 Suspensions of Voucher Term [24 CFR 982.303(c)] 5-17 Expiration of Voucher Term 5-17 ©Copyright 2005 Nan McKay&Associates TOC-6 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan -Table of Contents Chapter 6 INCOME AND SUBSIDY DETERMINATIONS [24 CFR Part 5, Subparts E and F; 24 CFR 982] PART I: ANNUAL INCOME 6-2 6-I.A. Overview 6-2 6-I.B. Household Composition And Income 6-3 Summary of Income Included and Excluded by Person 6-3 Temporarily Absent Family Members 6-4 Family Members Permanently Confined for Medical Reasons 6-5 Joint Custody of Dependents 6-5 Caretakers for a Child 6-6 6-I.C. Anticipating Annual Income 6-7 Basis of Annual Income Projection 6-7 Using Up-Front Income Verification (UIV) to Project Income 6-8 6-I.D. Earned Income 6-9 Types of Earned Income Included in Annual Income 6-9 Types of Earned Income Not Counted in Annual Income 6-9 6-I.E. Earned Income Disallowance For Persons With Disabilities [24 CFR 5.617] 6-13 Eligibility 6-13 Calculation of the Disallowance 6-14 6-I.F. Business Income [24 CFR 5.609(b)(2)] 6-15 Business Expenses 6-15 Business Expansion 6-15 Capital Indebtedness 6-15 Negative Business Income 6-16 Withdrawal of Cash or Assets from a Business 6-16 Co-owned Businesses 6-16 Nt 6-I.G. Assets [24 CFR 5.609(b)(3) and 24 CFR 5.603(b)] 6-17 Overview 6-17 General Policies 6-17 Types of Assets 6-21 6-I.H. Periodic Payments 6-25 Periodic Payments Included in Annual Income 6-25 Lump-Sum Payments for the Delayed Start of a Periodic Payment 6-25 Periodic Payments Excluded from Annual Income 6-26 64.I. Payments In Lieu Of Earnings 6-27 6-I.J. Welfare Assistance 6-28 Overview 6-28 Sanctions Resulting in the Reduction of Welfare Benefits [24 CFR 5.615] 6-28 6-I.K. Periodic And Determinable Allowances [24 CFR 5.609(b)(7)] 6-29 Alimony and Child Support 6-29 Regular Contributions or Gifts 6-29 6-I.L. Additional Exclusions From Annual Income 6-30 O Copyright 2005 Nan McKay&Associates TOC-7 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan -Table of Contents PART II: ADJUSTED INCOME 6-33 6-II.A. Introduction 6-33 Overview 6-33 Anticipating Expenses 6-33 6-II.B. Dependent Deduction 6-34 6-II.C. Elderly Or Disabled Family Deduction 6-34 6-II.D. Medical Expenses Deduction [24 CFR 5.611(a)(3)(i)] 6-35 Definition of Medical Expenses 6-35 Summary of Allowable Medical Expenses from IRS Publication 502 6-35 Families That Qualify for Both Medical and Disability Assistance Expenses 6-36 6-II.E. Disability Assistance Expenses Deduction [24 CFR 5.603(b) and 24 CFR 5.611(a)(3)(ii)] 6-37 Earned Income Limit on the Disability Assistance Expense Deduction 6-37 Eligible Disability Expenses 6-38 Necessary and Reasonable Expenses 6-39 Families That Qualify for Both Medical and Disability Assistance Expenses 6-39 6-II.F. Child Care Expense Deduction 6-40 Clarifying the Meaning of Child for This Deduction 6-40 Qualifying for the Deduction 6-40 Earned Income Limit on Child Care Expense Deduction 6-42 Eligible Child Care Expenses 6-43 PART III: CALCULATING FAMILY SHARE AND PHA SUBSIDY 6-45 6-III.A. Overview Of Rent And Subsidy Calculations 6-45 TTP Formula [24 CFR 5.628] 6-45 Family Share [24 CFR 982.305(a)(5)] 6-45 PHA Subsidy [24 CFR 982.505(b)] 6-46 Utility Reimbursement [24 CFR 982.514(b)] 6-46 6-III.B. Financial Hardships Affecting Minimum Rent [24 CFR 5.630] 6-47 Overview 6-47 HUD-Defined Financial Hardship 6-47 Implementation of Hardship Exemption 6-49 6-III.C. Applying Payment Standards [24 CFR 982.505] 6-52 Overview 6-52 Changes in Payment Standards 6-52 Reasonable Accommodation 6-53 6-III.D. Applying Utility Allowances [24 CFR 982.517] 6-54 Overview 6-54 Reasonable Accommodation 6-54 Utility Allowance Revisions 6-54 6-III.E. Prorated Assistance For Mixed Families [24 CFR 5.520] 6-55 ©Copyright 2005 Nan McKay&Associates TOC-8 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan -Table of Contents Exhibit 6-1: Annual Income Inclusions 6-57 HHS Definition Of"Assistance" 6-58 Exhibit 6-2: Annual Income Exclusions 6-60 Exhibit 6-3: Treatment Of Family Assets 6-63 Exhibit 6-4: Earned Income Disallowance For Persons With Disabilities 6-64 Exhibit 6-5: The Effect Of Welfare Benefit Reduction 6-66 ©Copyright 2005 Nan McKay&Associates TOC-9 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan -Table of Contents Chapter 7 VERIFICATION [24 CFR 982.516, 24 CFR 982.551, 24 CFR 5.230] PART I. GENERAL VERIFICATION REQUIREMENTS 7-1 7-I.A. Family Consent To Release Of Information [24 CFR 982.516 and 982.551, 24 CFR 5.230] 7-1 Consent Forms 7-1 Penalties for Failing to Consent [24 CFR 5.232] 7-1 7-I.B. Overview Of Verification Requirements 7-2 HUD's Verification Hierarchy 7-2 Requirements for Acceptable Documents 7-2 File Documentation 7-3 7-I.C. Up-Front Income Verification(UIV) 7-3 Definition of Substantial Difference 7-3 When No Substantial Difference Exists 7-3 When a Substantial Difference Exists 7-3 Use of HUD's Enterprise Income Verification(EIV) System 7-4 7-I.D. Third-Party Written And Oral Verification 7-6 Reasonable Effort and Timing 7-6 When Third-Party Information is Late 7-7 When Third-Party Verification is Not Required 7-7 7-I.E. Review Of Documents 7-9 Using Review of Documents as Verification 7-9 7-I.F. Self-Certification 7-9 PART II. VERIFYING FAMILY INFORMATION 7-11 7-II.A. Verification Of Legal Identity 7-11 7-II.B. Social Security Numbers [24 CFR 5.216 and HCV GB, p. 5-12] 7-12 7-II.C. Documentation Of Age 7-13 7-II.D. Family Relationships 7-14 Marriage 7-14 Separation or Divorce 7-14 Absence of Adult Member 7-15 Foster Children and Foster Adults 7-15 7-II.E. Verification Of Student Status 7-16 7-II.F. Documentation Of Disability 7-17 Family Members Receiving SSA Disability Benefits 7-18 Family Members Not Receiving SSA Disability Benefits 7-18 7-II.G. Citizenship Or Eligible Immigration Status [24 CFR 5.508] 7-19 Overview 7-19 U.S. Citizens and Nationals 7-19 Eligible Immigrants 7-20 7-II.H. Verification Of Preference Status 7-20 ®Copyright 2005 Nan McKay&Associates TOC-10 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan-Table of Contents PART III. VERIFYING INCOME AND ASSETS 7-21 7-III.A. Earned Income 7-21 Tips 7-21 7-III.B. Business And Self Employment Income 7-21 7-III.C. Periodic Payments And Payments In Lieu Of Earnings 7-22 Social Security/SSI Benefits 7-22 7-III.D. Alimony Or Child Support 7-23 7-III.E. Assets And Income From Assets 7-24 Assets Disposed of for Less than Fair Market Value 7-24 7-III.F. Net Income From Rental Property 7-24 7-III.G. Retirement Accounts 7-25 7-III.H. Income From Excluded Sources 7-25 7-III.I. Zero Annual Income Status 7-25 PART IV. VERIFYING MANDATORY DEDUCTIONS 7-27 7-IV.A. Dependent And Elderly/Disabled Household Deductions 7-27 Dependent Deduction 7-27 Elderly/Disabled Family Deduction 7-27 7-IV.B. Medical Expense Deduction 7-28 Amount of Expense 7-28 Eligible Household 7-29 Qualified Expenses 7-29 Unreimbursed Expenses 7-29 Expenses Incurred in Past Years 7-29 7-IV.C. Disability Assistance Expenses 7-30 Amount of Expense 7-30 Family Member is a Person with Disabilities 7-31 Family Member(s) Permitted to Work 7-31 Unreimbursed Expenses 7-31 7-IV.D. Child Care Expenses 7-32 Eligible Child 7-32 Unreimbursed Expense 7-32 Pursuing an Eligible Activity 7-33 Allowable Type of Child Care 7-34 Reasonableness of Expenses 7-34 Exhibit 7-1: Excerpt From HUD Verification Guidance Notice (PIH 2004-01, pp. 11-14) 7-35 Exhibit 7-2: Summary Of Documentation Requirements For Noncitizens [HCV GB, pp. 5-9 and 5-10] 7-39 ®Copyright 2005 Nan McKay&Associates TOC-11 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan-Table of Contents Chapter 8 HOUSING QUALITY STANDARDS AND RENT REASONABLENESS DETERMINATIONS [24 CFR 982 Subpart I and 24 CFR 982.507] PART I: PHYSICAL STANDARDS 8-2 8.I.A. General HUD Requirements 8-2 HUD Performance and Acceptability Standards 8-2 Tenant Preference Items 8-2 Modifications to Provide Accessibility 8-3 8.I.13. Additional Local Requirements 8-4 Thermal Environment [HCV GB p.10-7] 8-4 Clarifications of HUD Requirements 8-5 B.I.C. Life Threatening Conditions [24 CFR 982.404(a)] 8-6 8-I.D. Owner And Family Responsibilities [24 CFR 982.404] 8-7 Family Responsibilities 8-7 Owner Responsibilities 8-7 8-I-E. Special Requirements For Children With Environmental Intervention Blood Lead Level [24 CFR 35.1225] 8-8 8-I-F. Violation Of HQS Space Standards [24 CFR 982.403] 8-8 PART II: THE INSPECTION PROCESS 8-9 8-II.A. Overview [24 CFR 982.405] 8-9 Types of Inspections 8-9 Inspection of PHA-owned Units [24 CFR 982.352(b)] 8-9 Inspection Costs 8-9 Notice and Scheduling 8-10 Attendance at inspections by owner and family 8-10 8-II.B. Initial HQS Inspection [24 CFR 982.401(a)] 8-11 Timing of Initial Inspections 8-11 Inspection Results and Reinspections 8-11 Utilities 8-12 Appliances 8-12 8.II.C. Annual HQS Inspections [24 CFR 982.405(a)] 8-13 Scheduling the Inspection 8-13 8-II.D. Special Inspections [HCV GB p. 10-30] 8-13 8-II.E. Quality Control Inspections [24 CFR 982.405(b), HCV GB p. 10-32] 8-13 8.II.F. Inspection Results And Reinspections For Units Under HAP Contract 8-14 Notification of Corrective Actions 8-14 Extensions 8-15 Reinspections 8-15 8.II.G. Enforcing Owner Compliance 8-16 HAP Abatement 8-16 HAP Contract Termination 8-16 8.II.H. Enforcing Family Compliance With HQS [24 CFR 982.404(b)] 8-16 ©Copyright 2005 Nan McKay&Associates TOC-12 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan -Table of Contents PART III: RENT REASONABLENESS [24 CFR 982.507] 8-17 8-III.A. Overview 8-17 PHA-owned Units [24 CFR 982.352(b)] 8-17 8-III.B. When Rent Reasonableness Determinations Are Required 8-18 Owner-initiated Rent Determinations 8-18 PHA- and HUD-Initiated Rent Reasonableness Determinations 8-18 8-III.C. How Comparability Is Established 8-19 Factors to Consider 8-19 Units that Must Not be Used as Comparables 8-19 Rents Charged for Other Units on the Premises 8-19 8-III.D. PHA Rent Reasonableness Methodology 8-20 How Market Data is Collected 8-20 How Rents are Determined 8-20 Exhibit 8-1: Overview Of HUD Housing Quality Standards 8-21 Exhibit 8-2: Summary Of Tenant Preference Areas Related To Housing Quality 8-24 Chapter 9 GENERAL LEASING POLICIES 9-I.A. Tenant Screening 9-2 9-I.B. Requesting Tenancy Approval [Form HUD-52517] 9-3 9-I.C. Owner Participation 9-4 9-I.D. Eligible Units 9-5 Ineligible Units [24 CFR 982.352(a)] 9-5 PHA-Owned Units [24 CFR 982.352(b)] 9-5 Special Housing Types [24 CFR 982 Subpart M] 9-5 Duplicative Assistance [24 CFR 982.352(c)] 9-6 Housing Quality Standards (HQS) [24 CFR 982.305 and 24 CFR 982.401] 9-6 Unit Size 9-7 Rent Reasonableness [24 CFR 982.305 and 24 CFR 982.507] 9-7 Rent Burden [24 CFR 982.508] 9-7 9-I.E. Lease And Tenancy Addendum 9-8 Lease Form and Tenancy Addendum [24 CFR 982.308] 9-8 Lease Information [24 CFR 982.308(d)] 9-8 Term of Assisted Tenancy 9-9 Security Deposit [24 CFR 982.313 (a) and (b)] 9-9 Separate Non-Lease Agreements between Owner and Tenant 9-10 PHA Review of Lease 9-11 9-I.F. Tenancy Approval [24 CFR 982.305] 9-12 9-I.G. HAP Contract Execution [24 CFR 982.305] 9-13 9-I.H. Changes In Lease Or Rent [24 CFR 982.308] 9-14 Copyright 2005 Nan McKay&Associates TOC-13 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan -Table of Contents Chapter 10 MOVING WITH CONTINUED ASSISTANCE AND PORTABILITY '^ PART I. MOVING WITH CONTINUED ASSISTANCE 10-1 10-I.A. Allowable Moves 10-1 10-I.B. Restrictions On Moves 10-3 Denial of Moves 10-3 Restrictions on Elective Moves [24 CFR 982.314(c)] 10-4 10-I.C. Moving Process 10-5 Notification 10-5 Approval 10-5 Reexamination of Family Income and Composition 10-5 Voucher Issuance and Briefing 10-5 Housing Assistance Payments [24 CFR 982.311(d)] 10-6 PART II: PORTABILITY 10-7 10-II.A. Overview 10-7 10-II.B. Initial PHA Role 10-8 Allowable Moves under Portability 10-8 Determining Income Eligibility 10-9 • Reexamination of Family Income and Composition 10-9 Briefing 10-9 Voucher Issuance and Term 10-10 Voucher Extensions and Expiration 10-10 Initial Contact with the Receiving PHA 10-11 Sending Documentation to the Receiving PHA 10-11 Initial Billing Deadline [Notice PIH 2004-12] 10-12 Monthly Billing Payments [24 CFR 982.355(e),Notice PIH 2004-12] 10-12 Annual Updates of Form HUD-50058 10-13 Subsequent Family Moves 10-13 Denial or Termination of Assistance [24 CFR 982.355(c)(9)] 10-13 10-II.C. Receiving PHA Role 10-14 Initial Contact with Family 10-14 Briefing 10-15 Income Eligibility and Reexamination 10-15 Voucher Issuance 10-16 Notifying the Initial PHA 10-17 Administering a Portable Family's Voucher 10-17 Absorbing a Portable Family 10-20 o Copyright 2005 Nan McKay&Associates TOC-14 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan-Table of Contents Chapter 11 REEXAMINATIONS PART I: ANNUAL REEXAMINATIONS [24 CFR 982.516] 11-1 11-I.A. Overview 11-1 11-I.B. Scheduling Annual Reexaminations 11-2 Notification of and Participation in the Annual Reexamination Process 11-2 11-I.C. Conducting Annual Reexaminations 11-3 11-I.D. Effective Dates 11-4 PART II: INTERIM REEXAMINATIONS [24 CFR 982.516] 11-5 11-II.A. Overview 11-5 11-II.B. Changes In Family And Household Composition 11-5 New Family Members Not Requiring Approval 11-5 New Family and Household Members Requiring Approval 11-6 Departure of a Family or Household Member 11-7 11-II.C. Changes Affecting Income Or Expenses 11-8 PHA-Initiated Interim Reexaminations 11-8 Family-Initiated Interim Reexaminations 11-9 11-II.D. Processing The Interim Reexamination 11-10 Method of Reporting 11-10 Effective Dates 11-10 PART III: RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT 11-11 11-III.A. Overview 11-11 11-III.B. Changes In Payment Standards And Utility Allowances 11-11 Payment Standards [24 CFR 982.505] 11-11 Subsidy Standards [24 CFR 982.505(c)(4)] 11-12 Utility Allowances [24 CFR 982.517(d)] 11-12 11-III.C. Notification Of New Family Share And HAP Amount 11-12 11-III.D. Discrepancies 11-13 ®Copyright 2005 Nan McKay&Associates TOC-15 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan-Table of Contents Chapter 12 TERMINATION OF ASSISTANCE AND TENANCY PART I: GROUNDS FOR TERMINATION OF ASSISTANCE 12-1 12-I.A. Overview 12-1 12-I.B. Family No Longer Requires Assistance [24 CFR 982.455] 12-1 12-I.C. Family Chooses To Terminate Assistance 12-2 12-I.D. Mandatory Termination Of Assistance 12-2 Eviction [24 CFR 982.552(b)(2)] 12-2 Failure to Provide Consent [24 CFR 982.552(b)(3)] 12-2 Failure to Document Citizenship [24 CFR 982.552(b)(4) and [24 CFR 5.514(c)] 12-3 Failure to Provide Social Security Documentation [24 CFR 5.218(c)] 12-3 Methamphetamine Manufacture or Production [24 CFR 983.553(b)(1)(ii)] 12-3 12-I.E. Mandatory Policies And Other Authorized Terminations 12-3 Mandatory Policies [24 CFR 982.553(b) and 982.551(1)] 12-3 Other Authorized Reasons for Termination of Assistance [24 CFR 982.552(c)] 12-5 PART II: APPROACH TO TERMINATION OF ASSISTANCE 12-7 12-II.A. Overview 12-7 12-fI.B. Method Of Termination [24 CFR 982.552(a)(3)] 12-7 12-II.C. Alternatives To Termination Of Assistance 12-7 Change in Household Composition 12-7 Repayment of Family Debts 12-7 12-II.D. Criteria For Deciding To Terminate Assistance 12-8 Evidence 12-8 Consideration of Circumstances [24 CFR 982.552(c)(2)(i)] 12-8 Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)] 12-9 12-II.E. Termination Notice [HCV GB,p. 15-7] 12-9 Notice of Termination Based on Citizenship Status [24 CFR 5.514 (c) and (d)] 12-10 12-II.F. How Termination Of Assistance Affects The HAP Contract And Lease 12-10 ®Copyright 2005 Nan McKay&Associates TOC-16 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan -Table of Contents PART III: TERMINATION OF TENANCY BY THE OWNER 12-11 12-III.A. Overview 12-11 12-III.B. Grounds For Owner Termination Of Tenancy [24 CFR 982.310 and Form HUD-52641-A, Tenancy Addendum] 12-11 Serious or Repeated Lease Violations 12-11 Violation of Federal, State, or Local Law 12-11 Criminal Activity or Alcohol Abuse 12-11 Other Good Cause 12-12 12-III.C. Eviction [24 CFR 982.310(e) and (f) and Form HUD-52641-A, Tenancy Addendum] 12-13 12-III.D. Deciding Whether To Terminate Tenancy [24 CFR 982.310(h)] 12-14 12-III.E. Effect Of Termination Of Tenancy On The Family's Assistance 12-14 Exhibit 12-1:Statement Of Family Obligations 12-15 Chapter 13 OWNERS PART I. OWNERS IN THE HCV PROGRAM 13-3 13-I.A. Owner Recruitment And Retention [HCV GB, pp. 2-4 to 2-6] 13-3 Recruitment 13-3 Retention 13-4 13-I.B. Basic HCV Program Requirements 13-5 13-I.C. Owner Responsibilities [24 CFR 982.452] 13-7 13-I.D. Owner Qualifications 13-8 Owners Barred from Participation [24 CFR 982.306(a) and (b)] 13-8 Leasing to Relatives [24 CFR 982.306(d), HCV GB p. 11-2] 13-8 Conflict of Interest [24 CFR 982.161; HCV GB p. 8-19] 13-8 Owner Actions That May Result in Disapproval of a Tenancy Request [24 CFR 982.306(c)] 13-10 Legal Ownership of Unit 13-11 13-I.E. Non-Discrimination [HAP Contract—Form HUD-52641] 13-11 PART II. HAP CONTRACTS 13-13 13-II.A. Overview 13-13 13-II.B. HAP Contract Contents 13-14 13-II.C. HAP Contract Payments 13-16 General 13-16 Owner Certification of Compliance 13-16 Late HAP Payments [24 CFR 982.451(a)(5)] 13-17 Termination of HAP Payments [24 CFR 982.311(b)] 13-17 13-II.D. Breach Of HAP Contract [24 CFR 982.453] 13-18 13-II.E. HAP Contract Term And Terminations 13-19 13-II.F. Change In Ownership/ Assignment Of The HAP Contract [HUD-52641] 13-21 Copyright 2005 Nan McKay&Associates TOC-17 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan -Table of Contents Chapter 14 PROGRAM INTEGRITY PART I: PREVENTING, DETECTING, AND INVESTIGATING ERRORS AND PROGRAM ABUSE 14-3 14-I.A. Preventing Errors And Program Abuse 14-3 14-I.B. Detecting Errors And Program Abuse 14-4 Quality Control and Analysis of Data 14-4 Independent Audits and HUD Monitoring 14-4 Individual Reporting of Possible Errors and Program Abuse 14-4 14-I.C. Investigating Errors And Program Abuse 14-5 When the PHA Will Investigate 14-5 Consent to Release of Information [24 CFR 982.516] 14-5 Analysis and Findings 14-5 Consideration of Remedies 14-6 Notice and Appeals 14-6 PART II: CORRECTIVE MEASURES AND PENALTIES 14-7 14-II.A. Subsidy Under- Or Overpayments 14-7 Corrections 14-7 Reimbursement 14-7 14-II.B. Family-Caused Errors And Program Abuse 14-8 Family Reimbursement to PHA [HCV GB pp. 22-12 to 22-13] 14-8 PHA Reimbursement to Family [HCV GB p. 22-12] 14-8 Prohibited Actions 14-9 Penalties for Program Abuse 14-9 14-II.C. Owner-Caused Error Or Program Abuse 14-10 Owner Reimbursement to the PHA 14-10 Prohibited Owner Actions 14-10 Remedies and Penalties 14-11 14-II.D. PHA-Caused Errors Or Program Abuse 14-12 Repayment to the PHA 14-12 PHA Reimbursement to Family or Owner 14-12 Prohibited Activities 14-12 14-II.E. Criminal Prosecution 14-13 14-II.F. Fraud And Program Abuse Recoveries 14-14 ®Copyright 2005 Nan McKay&Associates TOC-18 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan-Table of Contents Chapter 15 '^ SPECIAL HOUSING TYPES [24 CFR 982 Subpart M] PART I. SINGLE ROOM OCCUPANCY [24 CFR 982.602 through 982.605] 15-3 15-I.A. Overview 15-3 15-I.B. Payment Standard, Utility Allowance, And HAP Calculation 15-3 15-I.C. Housing Quality Standards (HQS) 15-3 PART II. CONGREGATE HOUSING [24 CFR 982.606 through 982.609] 15-5 15-II.A. Overview 15-5 15-II.B. Payment Standard, Utility Allowance, And HAP Calculation 15-6 15-II.C. Housing Quality Standards 15-6 PART III. GROUP HOME [24 CFR 982.610 through 982.614 and HCV GB p. 7-4] 15-7 15-III.A. Overview 15-7 15-III.B. Payment Standard, Utility Allowance, And HAP Calculation 15-7 15-III.C. Housing Quality Standards 15-8 PART IV. SHARED HOUSING [24 CFR 982.615 through 982.618] 15-9 15-IV.I. Overview 15-9 15-IV.B. Payment Standard, Utility Allowance And HAP Calculation 15-9 15-IV.C. Housing Quality Standards 15-10 PART V. COOPERATIVE HOUSING [24 CFR 982.619] 15-11 15-V.A. Overview 15-11 15-V.B. Payment Standard, Utility Allowance And HAP Calculation 15-11 15-V.C. Housing Quality Standards 15-11 PART VI. MANUFACTURED HOMES [24 CFR 982.620 through 982.624] 15-13 15-VI.A. Overview 15-13 15-VI.B. Special Policies For Manufactured Home Owners Who Lease A Space 15-13 Family Income 15-13 Lease and HAP Contract 15-13 15-VI.C. Payment Standard, Utility Allowance And HAP Calculation 15-14 Payment Standards 15-14 Utility Allowance 15-14 Space Rent 15-14 Housing Assistance Payment 15-14 Rent Reasonableness 15-14 15-VI.D. Housing Quality Standards 15-15 PART VII. HOMEOWNERSHIP [24 CFR 982.625 through 982.643] 15-17 15-VII.A.Overview [24 CFR 982.625] 15-17 15-VII.B.Family Eligibility [24 CFR 982.627] 15-18 15-VII.C.Selection Of Families [24 CFR 982.626] 15-19 15-VII.D.Eligible Units [24 CFR 982.628] 15-19 15-VII.E. Additional PHA Requirements For Search And Purchase [24 CFR 982.629] 15-20 O Copyright 2005 Nan McKay&Associates TOC-19 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan-Table of Contents 15-VII.F. Homeownership Counseling [24 CFR 982.630] 15-21 15-VII.G.Home Inspections, Contract Of Sale, And PHA Disapproval Of Seller [24 CFR 982.631] 15-22 Home Inspections 15-22 Contract of Sale 15-22 Disapproval of a Seller 15-22 15-VII.H.Financing [24 CFR 982.632] 15-23 15-VII.I. Continued Assistance Requirements; Family Obligations [24 CFR 982.633] 15-23 15-VII.J. Maximum Term Of Homeowner Assistance [24 CFR 982.634] 15-24 15-VII.K.Homeownership Assistance Payments And Homeownership Expenses [24 CFR 982.635] 15-24 15-VII.L. Portability [24 CFR 982.636, 982.637, 982.353(b) and (c), 982.552, 982.553] 15-26 15-VII.M. Moving With Continued Assistance [24 CFR 982.637] 15-26 15-VII.N.Denial Or Termination Of Assistance [24 CFR 982.638] 15-27 Copyright 2005 Nan McKay&Associates TOC-20 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan -Table of Contents CHAPTER 16 PROGRAM ADMINISTRATION PART I: ADMINISTRATIVE FEE RESERVE [24 CFR 982.155] 16-3 PART II: SETTING PROGRAM STANDARDS AND SCHEDULES 16-5 16-II.A. Overview 16-5 16-II.B. Payment Standards [24 CFR 982.503; HCV GB, Chapter 7] 16-5 Updating Payment Standards 16-6 Exception Payment Standards [982.503(c)] 16-7 Unit-by-Unit Exceptions [24 CFR 982.503(c)(2)(ii)] 16-7 "Success Rate" Payment Standard Amounts [24 CFR 982.503(e)] 16-8 Decreases in the Payment Standard Below the Basic Range [24 CFR 982.503(d)] 16-8 16-II.C. Utility Allowances [24 CFR 982.517] 16-9 Air Conditioning 16-9 Reasonable Accommodation 16-9 Utility Allowance Revisions 16-9 PART III: INFORMAL REVIEWS AND HEARINGS 16-11 16-III.A. Overview 16-11 16-III.B. Informal Reviews 16-I1 Decisions Subject to Informal Review 16-11 Notice to the Applicant [24 CFR 982.554(a)] 16-12 Scheduling an Informal Review 16-12 Informal Review Procedures [24 CFR 982.554(b)] 16-12 Informal Review Decision [24 CFR 982.554(6)] 16-13 16-III.C. Informal Hearings For Participants [24 CFR 982.555] 16-14 Decisions Subject to Informal Hearing 16-14 Informal Hearing Procedures 16-16 16-III.D. Hearing And Appeal Provisions For Non-Citizens [24 CFR 5.514] 16-23 Notice of Denial or Termination of Assistance [24 CFR 5.514(d)] 16-23 USCIS Appeal Process [24 CFR 5.514(e)] 16-24 Informal Hearing Procedures for Applicants [24 CFR 5.514(f)] 16-24 Informal Hearing Procedures for Residents [24 CFR 5.514(f)] 16-26 Retention of Documents [24 CFR 5.514(h)] 16-26 m Copyright 2005 Nan McKay&Associates TOC-21 Adminplan 9/1/05 Unlimited copies may be made for internal use Administrative Plan -Table of Contents PART IV: OWNER OR FAMILY DEBTS TO THE PHA 16-27 16-IV.A. Overview 16-27 16-IV.B. Repayment Policy 16-28 Owner Debts to the PHA 16-28 Family Debts to the PHA 16-28 Repayment Agreement [24 CFR 792.103] 16-28 Repayment Agreement Guidelines 16-28 PART V: MANAGEMENT ASSESSMENT (SEMAP) 16-31 16-V.A. Overview 16-31 16-V.B. SEMAP Certification [24 CFR 985.101] 16-32 HUD Verification Method 16-32 16-V.C. SEMAP Indicators [24 CFR 985.3 and form HUD-52648] 16-33 SEMAP Indicators Chart 16-33 PART VI: RECORD KEEPING 16-37 16-VI.A. Overview 16-37 16-VI.B. Record Retention [24 CFR 982.158] 16-37 16-VI.C. Records Management 16-38 Privacy Act Requirements [24 CFR 5.212 and Form-9886] 16-38 Upfront Income Verification (UIV) Records 16-38 Criminal Records 16-39 Medical/Disability Records 16-39 PART VII: REPORTING AND RECORD KEEPING FOR CHILDREN WITH ENVIRONMENTAL INTERVENTION BLOOD LEAD LEVEL 16-41 -- 16-VII.A.Overview 16-41 16-VII.B.Reporting Requirement [24 CFR 35.1225(e)] 16-41 16-VII.C.Data Collection And Record Keeping [24 CFR 35.1225(1)] 16-41 PART VIII: DETERMINATION OF INSUFFICIENT FUNDING 16-43 16-VIII.A. Overview 16-43 16-VIII.B. Methodology 16-43 GLOSSARY ®Copyright 2005 Nan McKay&Associates TOC-22 Adminplan 9/1/05 Unlimited copies may be made for internal use Introduction ABOUT THE REFERENCES CITED IN THE MODEL ADMINISTRATIVE PLAN AUTHORITIES IN THE MODEL ADMINISTRATIVE PLAN Authority for PHA policies is derived from many sources. Primary among these sources are regulations and guidance issued by HUD. State law also directs PHA policy. State law must be followed where such law exists and does not conflict with federal regulations. In the absence of legal requirements or HUD guidance, industry practice may lead to PHA policy. HUD HUD provides the primary source of PHA policy through federal regulations, HUD Notices and handbooks. Compliance with federal regulations, current HUD Notices and HUD handbooks is mandatory. HUD provides nonmandatory guidance to PHAs through HUD published guidebooks. Expired HUD Notices and handbooks also provide guidance for PHA policy. Following HUD guidance is optional, as long as PHA policies comply with federal law, federal regulations and mandatory policy. Because HUD has already determined that the guidance it provides is consistent with mandatory policies, PHA reliance on HUD guidance provides the PHA with a"safe harbor." Content contained on the HUD website can provide further clarification of HUD policies. For example, FAQs on the HUD website can provide direction on the application of federal regulations to a specific pattern. State Law Where there is no mandatory federal guidance, PHAs must comply with state law, if it exists. Where state law is more restrictive than federal law, but does not conflict with it, the PHA should follow the state law. Industry Practice Where no law or HUD authority exists on a particular subject, industry practice may support PHA policy. An industry practice is a way of doing things that is followed by most housing authorities. RESOURCES CITED IN THE MODEL ADMINISTRATIVE PLAN The model administrative plan cites several documents. Where a document or resource is cited frequently, it may be abbreviated. Where it is cited only once or twice, the model administrative plan may contain the entire name of the document or resource. Following is a key to abbreviations used for various sources that are frequently cited in the administrative plan and a list of references and document locations that are referenced in the model administrative plan or that may be helpful to you. ©Copyright 2005 Nan McKay&Associates,Inc. Intro-i Adminplan 9/1/05 Unlimited copies may be made for internal use. Abbreviations Throughout the model administrative plan, abbreviations are used to designate certain documents in citations. The following is a table of abbreviations of documents cited in the model administrative plan. r Abbreviation Document CFR Code of Federal Regulations HCV GB Housing Choice Voucher Program Guidebook(7420.10G), April 2001. HUD-50058 IB HUD-50058 Instruction Booklet RHIIP FAQs Rental Housing Integrity Improvement Program (RI-HIP) Frequently Asked Questions. VG PIH Notice 2004-01 Verification Guidance, March 9, 2004. HB 4350.3 Occupancy Requirements of Subsidized Multifamily Housing Programs Resources and Where to Find Them Following is a list of resources helpful to the PHA or referenced in the model administrative plan, and the online location of each. Document and Location Code of Federal Regulations www.access.gpo.gov/nara/cfr/index.html Earned Income Disregard FAQ www.hud.gov/offices/pih/phr/about/ao faq eid.cfm Enterprise Income Verification (EIV) System PHA Security Procedures, Version 1.2, issued January 2005 http://www.hud.gov/offices/pih/programs/ph/rhiip/docs/eivsecguidepha.pdf Executive Order 11063 http://www.hud.gov/offices/fheo/FHLaws/EXO11063.cfrn Federal Register http://www.access.gpo.gov/su docs/aces/fr-cont.html General Income and Rent Determination FAQ www.hud.gov/offices/pih/programs/ph/rhiip/faq gird.cfm Housing Choice Voucher Program Guidebook(7420.1 0G), April 2001. www.hud.gov/offices/pih/programs/hcv/fonns/guidebook.cfm HUD Guidelines for Projecting Annual Income When Upfront Income Verification(UIV) Data is Available http://www.hud.gov/offices/pih/progrs/ph am /rhiip/docslguid proj.incoine doc HUD-50058 Instruction Booklet http://www.hud.gov/offices/pih/systems/pic/50058/pubs/ib/forn50058ib.pdf C Copyright 2005 Nan McKay&Associates, Inc. Intro-ii Adminplan 9/1/05 Unlimited copies may be made for internal use. Joint Statement of the Department of Housing and Urban Development and the Department of Justice, issued May 17, 2004 http://www.hud.gov/offices/fheo/library/huddojstatement.pdf Notice of Guidance to Federal Assistance Recipients Regarding Title VI Prohibition Affecting Limited English Proficient Persons, published December 19, 2003 http://www.hudclips.org/sub nonhud/cgi/pdf/31267.pdf OMB Circular A-133 http://www.whitehouse.gov/omb/circulars/a 133/al 3 3.html PIH Notice 2002-01 (HA), Accessibility Notice http://www.hud.gov/offices/pih/publications/notices/02/pih2002-1.pdf PIH Notice 2004-01 (HA), Verification Guidance, March 9, 2004. svww.hud.gov/offices/pih/publications/notices/04/pih2004-1.pdf PIH Notice 2004-18 (HA), Verification of Social Security(SS)and Supplemental Security Income(SSI) Benefits. http://www.hud.gov/offices/pih/publications/notices/04/pih2004-18.pdf PIH Notice 2005-01 (HA), Implementation of the Consolidated Appropriations Act(HR 4818—H Rept 108-792), 2005 Funding Provisions for the Housing Choice Voucher Program. http://www.hud.gov/offices/pih/publications/notices/05/pih2005-1.pdf PIH Notice 2005-7 (HA), Rental Integrity Monitoring(RIM) Disallowed Costs and Sanctions Under the Rental Housing Integrity Improvement Project(RHIIP) Initiative http://www.hud.gov/offices/pih/publications/notices/05/pih2005-7.pdf PIH Notice 2005-9 (HA), Public Housing Agency (PHA) Flexibility to Manage the Housing Choice Voucher Program in 2005. http://www.hud.gov/offices/pih/publications/notices/05/pih2005-9.pdf PIH Notice 2005-16 (HA), Policy Guidance on College Student Admissions. http://www.hud.gov/offices/pih/publications/notices/05/pih2005-16.pdf Rental Housing Integrity Improvement Program(RHIIP) Frequently Asked Questions. www.hud.gov/offices/pih/programs/ph/rhiio/faq.cfm Verification FAQ www.hud.gov/offices/pih/programs/ph/rhiip/faq verif.cfm The HUD website is http://www.hud.gov/index.html. Guidebooks,handbooks and other HUD published and federal resources may be found at the HUDClips website: www.hudclips.org. ®Copyright 2005 Nan McKay&Associates,Inc. Intro-Iii Adminplan 9/1/05 Unlimited copies may be made for internal use. Chapter 1 OVERVIEW OF THE PROGRAM AND PLAN INTRODUCTION The PHA receives its funding for the Housing Choice Voucher (HCV) program from the Department of Housing and Urban Development. The PHA is not a federal department or agency. A public housing agency (PHA) is a governmental or public body, created and authorized by state law to develop and operate housing and housing programs for low-income families. The PHA enters into an Annual Contributions Contract with HUD to administer the program requirements on behalf of HUD. The PHA must ensure compliance with federal laws, regulations and notices and must establish policy and procedures to clarify federal requirements and to ensure consistency in program operation. This chapter contains information about the PHA and its programs with emphasis on the HCV program. It also contains information about the purpose, intent and use of the plan and guide. There are three parts to this chapter: Part I: The Public Housing Agency (PHA'. This part includes a description of the PHA, its jurisdiction, its programs, and its mission and intent. Part II: The HCV Program. This part contains information about the Housing Choice Voucher program operation, roles and responsibilities, and partnerships. Part III: The HCV Administrative Plan. This part discusses the purpose and organization of the plan and its revision requirements. PART I: THE PHA 1-I.A. OVERVIEW This part explains the origin of the PHA's creation and authorization, the general structure of the organization, and the relationship between the PHA Board and staff. ©Copyright 2005 Nan McKay&Associates Page 1-1 Adminplan 1/1/05 Unlimited copies may be made for internal use 1-LB. ORGANIZATION AND STRUCTURE OF THE PHA The Section 8 tenant-based Housing Choice Voucher (HCV) assistance program is funded by the federal government and administered by the Housing Authority of City of Greeley (Lead Agency) in Consortium with the Weld County Housing Authority for the jurisdiction of City of Greeley and County of Weld , Colorado. The officials of a PHA are known as commissioners or, collectively, as the board of commissioners. Commissioners are appointed in accordance with state housing law and generally serve in the same capacity as the directors of a corporation, establishing policies under which the PHA conducts business, ensuring that policies are followed by PHA staff and ensuring that the PHA is successful in its mission. The board is responsible for preserving and expanding the agency's resources and assuring the agency's continued viability. Formal actions of the PHA are taken through written resolutions, adopted by the board of commissioners and entered into the official records of the PHA. The principal staff member of the PHA is the executive director (ED), hired and appointed by the board of commissioners. The executive director is directly responsible for carrying out the policies established by the commissioners and is delegated the responsibility for hiring, training and supervising the remainder of the PHA's staff in order to manage the day-to-day operations of the PHA to ensure compliance with federal and state laws and directives for the programs managed.. In addition, the executive director's duties include budgeting and financial planning for the agency. 1-I.C. PHA MISSION The purpose of a mission statement is to communicate the purpose of the agency to people inside and outside of the agency. It provides guiding direction for developing strategy, defining critical success factors, searching out key opportunities, making resource allocation choices, satisfying clients and stakeholders, and making decisions. PHA Policy The PHA's mission is to provide safe, decent and sanitary housing conditions for very low-income families and to manage resources efficiently. The PHA is to promote personal, economic and social upward mobility to provide families the opportunity to make the transition from subsidized to non-subsidized housing. ©Copyright 2005 Nan McKay&Associates Page 1-2 Adminplan I/1/05 Unlimited copies may be made for internal use 1-I.D. THE PHA'S PROGRAMS The following programs are included under this administrative plan: PHA Policy The PHA's administrative plan is applicable to the operation of the Housing Choice Voucher program. 1-I.E. THE PHA'S COMMITMENT TO ETHICS AND SERVICE As a public service agency, the PHA is committed to providing excellent service to HCV program participants—families and owners—in the community. The PHA's standards include: • Administer applicable federal and state laws and regulations to achieve high ratings in compliance measurement indicators while maintaining efficiency in program operation to ensure fair and consistent treatment of clients served. • Provide decent, safe, and sanitary housing—in compliance with program housing quality standards—for very low income families while ensuring that family rents are fair, reasonable, and affordable. • Encourage self sufficiency of participant families and assist in the expansion of family opportunities which address educational, socio-economic, recreational and other human services needs. • Promote fair housing and the opportunity for very low-income families of all ethnic backgrounds to experience freedom of housing choice. • Promote a housing program which maintains quality service and integrity while providing an incentive to private property owners to rent to very low-income families. • Promote a market-driven housing program that will help qualified low-income families be successful in obtaining affordable housing and increase the supply of housing choices for such families. • Create positive public awareness and expand the level of family, owner, and community support in accomplishing the PHA's mission. • Attain and maintain a high level of standards and professionalism in day-to-day management of all program components. • Administer an efficient, high-performing agency through continuous improvement of the PHA's support systems and commitment to our employees and their development. The PHA will make every effort to keep program participants informed of HCV program rules and regulations, and to advise participants of how the program rules affect them. ©Copyright 2005 Nan McKay&Associates Page 1-3 Adminplan 1/1/05 Unlimited copies may be made for internal use ©Copyright 2005 Nan McKay&Associates Page 1-4 Adminplan 1/1/05 Unlimited copies may be made for internal use PART II. THE HOUSING CHOICE VOUCHER(HCV) PROGRAM 1-II.A. OVERVIEW AND HISTORY OF THE PROGRAM The intent of this section is to provide the public and staff with information related to the overall operation of the program. There have been many changes to the program since its inception in 1974 and a brief history of the program will assist the audience in understanding the program. The United States Housing Act of 1937 (the "Act") is responsible for the birth of federal housing program initiatives. The Act was intended to provide financial assistance to states and cities for public works projects, slum clearance and the development of affordable housing developments for low-income residents. The Housing and Community Development (HCD) Act of 1974 created a new federally assisted housing program—the Section 8 Existing program (also known as the Section 8 Certificate program). The HCD Act represented a significant shift in federal housing strategy from locally owned public housing to privately owned rental housing. Under the Certificate program, federal housing assistance payments were made directly to private owners of rental housing, where this housing was made available to lower-income families. Eligible families were able to select housing in the private rental market. Assuming that the housing met certain basic physical standards of quality ("housing quality standards") and was within certain HUD-established rent limitations ("fair market rents"), the family would be able to receive rental assistance in the housing unit. Family contribution to rent was generally set at 30 percent of the family's adjusted income, with the remainder of the rent paid by the program. Another unique feature of the Certificate program was that the rental assistance remained with the eligible family, if the family chose to move to another privately-owned rental unit that met program requirements (in contrast to the public housing program where the rental assistance remains with the unit, should the family decide to move). Consequently, the Certificate program was characterized as tenant-based assistance, rather than unit-based assistance. The Housing and Community Development (HCD) Act of 1987 authorized a new version of tenant-based assistance—the Section 8 Voucher program. The Voucher program was very similar to the Certificate program in that eligible families were able to select housing in the private rental market and receive assistance in that housing unit. However, the Voucher program permitted families more options in housing selection. Rental housing still had to meet the basic housing quality standards, but there was no fair market rent limitation on rent. In addition, family contribution to rent was not set at a limit of 30 percent of adjusted income. Consequently, depending on the actual rental cost of the unit selected, a family might pay more or less than 30 percent of their adjusted income for rent. ©Copyright 2005 Nan McKay&Associates Page 1-5 Adminplan I/1/05 Unlimited copies may be made for internal use From 1987 through 1999,public housing agencies managed both the Certificate and Voucher tenant-based assistance programs, with separate rules and requirements for each. From 1994 through 1998, HUD published a series of new rules, known as "conforming"rules, to more closely combine and align the two similar housing programs, to the extent permitted by the law. In 1998, the Quality Housing and Work Responsibility Act(QHWRA)—also known as the Public Housing Reform Act—was signed into law. QHWRA eliminated all statutory differences between the Certificate and Voucher tenant-based programs and required that the two programs be merged into a single tenant-based assistance program, now known as the Housing Choice Voucher(HCV) program. The HCV program was modeled closely on the pre-merger Voucher program. However, unlike the pre-merger Voucher program, the HCV program requires an assisted family to pay at least 30 percent of adjusted income for rent. The transition of assistance from the Certificate and Voucher programs to the new HCV program began in October 1999. By October 2001, all families receiving tenant-based assistance were converted to the HCV program. ©Copyright 2005 Nan McKay&Associates Page 1-6 Adminplan 1/1/05 Unlimited copies may be made for internal use 1-II.B. HCV PROGRAM BASICS The purpose of the HCV program is to provide rental assistance to eligible families. The rules and regulations of the HCV program are determined by the U.S. Department of Housing and Urban Development. The PHA is afforded choices in the operation of the program which are included in the PHA's administrative plan, a document approved by the board of commissioners of the PHA. The HCV program offers mobility to eligible families because they may search for suitable housing anywhere in the PHA's jurisdiction and may also be eligible to move under portability to other PHAs'jurisdictions. When a family is determined to be eligible for the program and funding is available, the PHA issues the family a housing voucher. When the family finds a suitable housing unit and funding is available, the PHA will enter into a contract with the owner and the family will enter into a lease with the owner. Each party makes their respective payment to the owner so that the owner receives full rent. Even though the family is determined to be eligible for the program,the owner has the responsibility of approving the family as a suitable renter. The PHA continues to make payments to the owner as long as the family is eligible and the housing unit continues to qualify under the program. 1-II.C. THE HCV PARTNERSHIPS To administer the HCV program, the PHA enters into a contractual relationship with HUD. The PHA also enters into contractual relationships with the assisted family and the owner or landlord of the housing unit. • For the HCV program to work and be successful, all parties involved—HUD, the PHA, the owner, and the family—have important roles to play. The roles and responsibilities of all parties are defined in federal regulations and in legal documents that parties execute to participate in the program. The chart on the following page illustrates key aspects of these relationships. ©Copyright 2005 Nan McKay&Associates Page 1-7 Adminplan 1/1/05 Unlimited copies may be made for internal use The HCV Relationships: Congress Appropriates Funding Jjr H Provides Funding To PHA Program Regancons and ACC specifies PHA4 ligations and Vouch rnding PHA Administers Program '',,44`44,., ii <H House tance Payments Vouc dies (HAP)C. : pecifies Owner Pam' Ali ations , and P°kq,r igations ciiki- Family Lease specifies Tenant Owner/ (Program Landlord Participant) Q (ions ©Copyright 2005 Nan McKay&Associates Page 1-8 Adminplan 1/1/05 Unlimited copies may be made for internal use What does HUD do? HUD has the following major responsibilities: • Develop regulations,requirements,handbooks, notices and other guidance to implement HCV housing program legislation passed by Congress; • Allocate HCV program funds to PHAs; • Provide technical assistance to PHAs on interpreting and applying HCV program requirements; • Monitor PHA compliance with HCV program requirements and PHA performance in program administration. What does the PHA do? The PHA administers the HCV program under contract with HUD and has the following major responsibilities: • Establish local policies; • Review applications from interested applicant families to determine whether applicants are eligible for the program; • Maintain waiting list and select families for admission; • Issue voucher to selected family and, if necessary, assist the family in finding a place to live; • Conduct outreach to owners, with special attention to owners outside areas of poverty or minority concentration; • Approve the rental unit(including assuring compliance with housing quality standards and rent reasonableness),the owner, and the tenancy; • Make housing assistance payments to the owner in a timely manner; • Ensure that families and their rental units continue to qualify under the program; • Ensure that owners and families comply with program rules; • Provide families and owners with prompt, professional service; • Comply with all fair housing and equal opportunity requirements , HUD regulations and requirements, the Annual Contributions Contract, HUD-approved applications for funding, the PHA's administrative plan, and other applicable federal, state and local laws. O Copyright 2005 Nan McKay&Associates Page 1-9 Adminplan 1/I/05 Unlimited copies may be made for internal use What does the Owner do? The owner has the following major responsibilities: • Screen families who apply for tenancy, to determine if they will be good renters. - The PHA can provide some information to the owner, but the primary responsibility for tenant screening rests with the owner. - The owner should consider family background factors such as rent and bill-paying history, history of caring for property, respecting the rights of others to peaceful enjoyment of the property, compliance with essential conditions of tenancy, whether the family is engaging in drug-related criminal activity or other criminal activity that might threaten others. • Comply with the terms of the Housing Assistance Payments contract, executed with the PHA; • Comply with all applicable fair housing laws and discriminate against no one; • Maintain the housing unit by making necessary repairs in a timely manner; • Collect rent due from the assisted family and otherwise comply with and enforce provisions of the dwelling lease. ©Copyright 2005 Nan McKay&Associates Page 1-10 Adminplan 1/1/05 Unlimited copies may be made for internal use What does the Family do? The family has the following responsibilities: • Provide the PHA with complete and accurate information, determined by the PHA to be necessary for administration of the program; • Make their best and most timely efforts to find a place to live that is suitable for them and that qualifies for the program; • Cooperate in attending all appointments scheduled by the PHA; • Allow the PHA to inspect the unit at reasonable times and after reasonable notice; • Take responsibility for care of the housing unit, including any violations of housing quality standards caused by the family; • Comply with the terms of the lease with the owner; • Comply with the family obligations of the voucher; • Not commit serious or repeated violations of the lease; • Not engage in drug-related or violent criminal activity; • Notify the PHA and the owner before moving or termination the lease; • Use the assisted unit only for residence and as the sole residence of the family. Not sublet the unit, assign the lease, or have any interest in the unit; • Promptly notify the PHA of any changes in family composition; • Not commit fraud, bribery, or any other corrupt or criminal act in connection with any housing programs. If all parties fulfill their obligations in a professional and timely manner, the program responsibilities will be fulfilled in an effective manner. O Copyright 2005 Nan McKay&Associates Page 1-11 Adminplan 1/1/05 Unlimited copies may be made for internal use 1-II.D. APPLICABLE REGULATIONS Applicable regulations include: • 24 CFR Part 5: General Program Requirements • 24 CFR Part 8: Nondiscrimination • 24 CFR Part 982: Section 8 Tenant-Based Assistance: Housing Choice Voucher Program 8 Copyright 2005 Nan McKay&Associates Page 1-12 Adminplan I/1/05 Unlimited copies may be made for internal use PART III. THE HCV ADMINISTRATIVE PLAN 1-III.A. OVERVIEW AND PURPOSE OF THE PLAN The administrative plan is required by HUD. The purpose of the administrative plan is to establish policies for carrying out the programs in a manner consistent with HUD requirements and local goals and objectives contained in the PHA's agency plan. This administrative plan is a supporting document to the PHA agency plan, and is available for public review as required by CFR 24 Part 903. This administrative plan is set forth to define the PHA's local policies for operation of the housing programs in the context of federal laws and regulations. All issues related to Section 8 not addressed in this document are governed by such federal regulations, HUD handbooks and guidebooks, notices and other applicable law. The policies in this administrative plan have been designed to ensure compliance with the consolidated ACC and all HUD-approved applications for program funding. The PHA is responsible for complying with all changes in HUD regulations pertaining to the HCV program. If such changes conflict with this plan, HUD regulations will have precedence. Administration of the HCV program and the functions and responsibilities of PHA staff shall be in compliance with the PHA's personnel policy and HUD's Section 8 regulations as well as all federal, state and local fair housing laws and regulations. 1-III.B. CONTENTS OF THE PLAN (24CFR 982.54) -^ HUD regulations contain a list of what must be included in the administrative plan. The PHA administrative plan must cover PHA policies on these subjects: • Selection and admission of applicants from the PHA waiting list, including any PHA admission preferences, procedures for removing applicant names from the waiting list, and procedures for closing and reopening the PHA waiting list(Chapter 4); • Issuing or denying vouchers, including PHA policy governing the voucher term and any extensions or suspensions of the voucher term. 'Suspension' means stopping the clock on the term of a family's voucher after the family submits a request for approval of the tenancy. If the PHA decides to allow extensions or suspensions of the voucher term, the PHA administrative plan must describe how the PHA determines whether to grant extensions or suspensions, and how the PHA determines the length of any extension or suspension (Chapter 5); • Any special rules for use of available funds when HUD provides funding to the PHA for a special purpose (e.g., desegregation), including funding for specified families or a specified category of families (Chapter 4); ©Copyright 2005 Nan McKay&Associates Page 1-13 Adminplan 1/1/05 Unlimited copies may be made for internal use • Occupancy policies, including definition of what group of persons may qualify as a'family', definition of when a family is considered to be 'continuously assisted'; standards for denying admission or terminating assistance based on criminal activity or alcohol abuse in accordance with 982.553 (Chapters 3 and 12); • Encouraging participation by owners of suitable units located outside areas of low income or minority concentration (Chapter 13); • Assisting a family that claims that illegal discrimination has prevented the family from leasing a suitable unit (Chapter 2); • Providing information about a family to prospective owners (Chapters 3 and 9); • Disapproval of owners (Chapter 13); • Subsidy standards (Chapter 5); • Family absence from the dwelling unit(Chapter 12) ; • How to determine who remains in the program if a family breaks up (Chapter 3); • Informal review procedures for applicants (Chapter 16); • Informal hearing procedures for participants (Chapter 16); • The process for establishing and revising voucher payment standards (Chapter 16); • The method of determining that rent to owner is a reasonable rent(initially and during the term of a HAP contract) (Chapter 8); • Special policies concerning special housing types in the program (e.g., use of shared housing) (Chapter 15); • Policies concerning payment by a family to the PHA of amounts the family owes the PHA (Chapter 16); • Interim redeterminations of family income and composition (Chapter 11); • Restrictions, if any, on the number of moves by a participant family (Chapter 10); • Approval by the board of commissioners or other authorized officials to charge the administrative fee reserve (Chapter 16); • Procedural guidelines and performance standards for conducting required housing quality standards inspections (Chapter 8); and • PHA screening of applicants for family behavior or suitability for tenancy (Chapter 3). 0 Copyright 2005 Nan McKay&Associates Page 1-14 Adminplan 1/1/05 Unlimited copies may be made for internal use New Approach to Policy Development HUD has developed an approach to monitoring and policy development that requires PHAs to establish policy for those purposes. A primary focus of HUD's Rental Integrity Monitoring (RIM) program was consistency— consistency in how PHAs conduct their business and in how HUD monitors PHA activities. HUD expects that all staff will be consistent in the procedures they follow and the calculations they make and that their actions will be consistent with the PHA's administrative plan. HUD makes a distinction between: • Mandatory policies: those driven by legislation, regulations, current handbooks, notices, and legal opinions, and • Optional, non-binding guidance, including guidebooks, notices that have expired and recommendations from individual HUD staff. HUD expects PHAs to develop policies and procedures that are consistent with mandatory policies and to make clear the optional policies the PHA has adopted. The PHA's administrative plan is the foundation of those policies and procedures. HUD's new directions require, more than ever, that PHAs make policy choices to provide guidance to staff and consistency to program applicants and participants. Following HUD guidance, even though it is not mandatory, provides a PHA with a"safe harbor." HUD has already determined that the recommendations and suggestions it makes are consistent with mandatory policies. If a PHA adopts an alternative strategy, it must make its own determination that the alternative approach is consistent with legislation, regulations, and other mandatory requirements. There may be very good reasons for adopting a policy or procedure that is different than HUD's safe harbor, but PHAs should carefully think through those decisions. 1-IILC. ORGANIZATION OF THE PLAN The Plan is organized to provide information to users in particular areas of operation. 1-III.D. UPDATING AND REVISING THE PLAN The PHA will revise this administrative plan as needed to comply with changes in HUD regulations. The original plan and any changes must be approved by the board of commissioners of the agency, the pertinent sections included in the Agency Plan, and a copy provided to HUD. PHA Policy The PHA will review and update the plan at least once a year, and more often if needed, to reflect changes in regulations, PHA operations, or when needed to ensure staff consistency in operation. ©Copyright 2005 Nan McKay&Associates Page 1-15 Adminplan 1/1/05 Unlimited copies may be made for internal use Chapter 2 FAIR HOUSING AND EQUAL OPPORTUNITY INTRODUCTION This chapter explains the laws and HUD regulations requiring PHAs to affirmatively further civil rights and fair housing in all federally-assisted housing programs. The letter and spirit of these laws are implemented through consistent policy and processes. The responsibility to further nondiscrimination pertains to all areas of the PHA's housing choice voucher(HCV) operations. This chapter describes HUD regulations and PHA policies related to these topics in three parts: Part I: Nondiscrimination. This part presents the body of laws and regulations governing the responsibilities of the PHA regarding nondiscrimination. Part II: Policies Related to Persons with Disabilities. This part discusses the rules and policies of the housing choice voucher program related to reasonable accommodation for persons with disabilities. These rules and policies are based on the Fair Housing Act (42.U.S.C.) and Section 504 of the Rehabilitation Act of 1973, and incorporate guidance from the Joint Statement of The Department of Housing and Urban Development and the Department of Justice (DOJ), issued May 17, 2004. Part III: Prohibition of Discrimination Against Limited English Proficiency Persons This part details the obligations of the PHA to ensure meaningful access to the HCV program and its activities by persons with limited English proficiency (LEP). This part incorporates HUD and DOJ's Notice of Guidance, published December 19, 2003 in the Federal Register. Copyright 2005 Nan McKay&Associates Page 2-1 Adminplan 9/1/05 Unlimited copies may be made for internal use. PART I: NONDISCRIMINATION 2-I.A. OVERVIEW Federal laws require PHAs to treat all applicants and participants equally, providing the same quality of service, regardless of family characteristics and background.Federal law prohibits discrimination in housing on the basis of race, color, religion, sex, national origin, age, familial status, and disability. The PHA will comply fully with all federal, state, and local nondiscrimination laws, and with rules and regulations governing fair housing and equal opportunity in housing and employment, including: • Title VI of the Civil Rights Act of 1964 • Title VIII of the Civil Rights Act of 1968 (as amended by the Community Development Act of 1974 and the Fair Housing Amendments Act of 1988) • Executive Order 11063 • Section 504 of the Rehabilitation Act of 1973 • The Age Discrimination Act of 1975 • Title II of the Americans with Disabilities Act(to the extent that it applies, otherwise Section 504 and the Fair Housing Amendments govern) • When more than one civil rights law applies to a situation, the laws will be read and applied together. • Any applicable state laws or local ordinances and any legislation protecting individual rights of tenants, applicants, or staff that may subsequently be enacted PHA Policy State law 24-334-502. Unfair housing practices prohibited. In addition to federal law the state of Colorado prohibits discrimination based on martial status. ©Copyright 2005 Nan McKay&Associates Page 2-3 Adminplan 9/1/05 Unlimited copies may be made for internal use. 2-I.8. NONDISCRIMINATION Federal regulations prohibit discrimination against certain protected classes. State and local requirements, as well as PHA policies, can prohibit discrimination against additional classes of people. The PHA shall not discriminate because of race, color, sex, religion, familial status, age, disability or national origin(called"protected classes") Familial status includes children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18. PHA Policy The PHA will not discriminate on the basis of marital status or sexual orientation. The PHA will not use any of these factors to: • Deny to any family the opportunity to apply for housing, nor deny to any qualified applicant the opportunity to participate in the housing choice voucher program • Provide housing that is different from that provided to others • Subject anyone to segregation or disparate treatment • Restrict anyone's access to any benefit enjoyed by others in connection with the housing program • Treat a person differently in determining eligibility or other requirements for admission • Steer an applicant or participant toward or away from a particular area based any of these factors • Deny anyone access to the same level of services • Deny anyone the opportunity to participate in a planning or advisory group that is an integral part of the housing program • Discriminate in the provision of residential real estate transactions • Discriminate against someone because they are related to or associated with a member of a protected class • Publish or cause to be published an advertisement or notice indicating the availability of housing that prefers or excludes persons who are members of a protected class. ©Copyright 2005 Nan McKay&Associates Unlimited copies may be made for internal use. Page 2-4 Adminplan 9/1/05 Providing Information to Families and Owners The PHA must take steps to ensure that families and owners are fully aware of all applicable civil rights laws. As part of the briefing process, the PHA must provide information to HCV applicant families about civil rights requirements and the opportunity to rent in a broad range of neighborhoods [24 CFR 982.301]. The Housing Assistance Payments (HAP) contract informs owners of the requirement not to discriminate against any person because of race, color, religion, sex, national origin, age, familial status, or disability in connection with the contract. Discrimination Complaints If an applicant or participant believes that any family member has been discriminated against by the PHA or an owner, the family should advise the PHA. HUD requires the PHA to make every reasonable attempt to determine whether the applicant's or participant's assertions have merit and take any warranted corrective action. In addition, the PHA is required to provide the applicant or participant with information about how to file a discrimination complaint [24 CFR 982.304]. PHA Policy Applicants or participants who believe that they have been subject to unlawful discrimination may notify the PHA either orally or in writing. The PHA will attempt to remedy discrimination complaints made against the PHA. The PHA will provide a copy of a discrimination complaint form to the complainant and provide them with information on how to complete and submit the form to HUD's Office of Fair Housing and Equal Opportunity (FHEO). ©Copyright 2005 Nan McKay&Associates Page 2-5 Adminplan 9/1/05 Unlimited copies may be made for internal use. PART II: POLICIES RELATED TO PERSONS WITH DISABIILTIES 2-ILA. OVERVIEW One type of disability discrimination prohibited by the Fair Housing Act is the refusal to make reasonable accommodation in rules, policies, practices, or services when such accommodation may be necessary to afford a person with a disability the equal opportunity to use and enjoy a program or dwelling under the program. The PHA must ensure that persons with disabilities have full access to the PHA's programs and services. This responsibility begins with the first inquiry of an interested family and continues through every programmatic area of the HCV program. PHA Policy The PHA will ask all applicants and participants if they require any type of accommodations, in writing, on the intake application, reexamination documents, and notices of adverse action by the PHA, by including the following language: "If you or anyone in your family is a person with disabilities, and you require a specific accommodation in order to fully utilize our programs and services, please contact the housing authority." A specific name and phone number will be indicated as the contact for requests for accommodation for persons with disabilities. ©Copyright 2005 Nan McKay&Associates Page 2-7 Adminplan 9/1/05 Unlimited copies may be made for internal use. 2-II.B. DEFINITION OF REASONABLE ACCOMMODATION ^ A person with a disability may require special accommodations in order to have equal access to the HCV program. The types of reasonable accommodations the PHA can provide include changes, exceptions, or adjustments to a rule, policy, practice, or service. Federal regulations stipulate that requests for accommodations will be considered reasonable if they do not create an "undue financial and administrative burden" for the PHA, or result in a "fundamental alteration" in the nature of the program or service offered. A fundamental alteration is a modification that alters the essential nature of a provider's operations. Types of Reasonable Accommodations When needed, the PHA must modify normal procedures to accommodate the needs of a person with disabilities. Examples include: • Permitting applications and reexaminations to be completed by mail • Conducting home visits • Using higher payment standards (either within the acceptable range or with HUD approval of a payment standard outside the PHA range)if the PHA determines this is necessary to enable a person with disabilities to obtain a suitable housing unit • Providing time extensions for locating a unit when necessary because of lack of availability of accessible units or special challenges of the family in seeking a unit • Permitting an authorized designee or advocate to participate in the application or certification process and any other meetings with PHA staff • Displaying posters and other housing information in locations throughout the PHA's office in such a manner as to be easily readable from a wheelchair ©Copyright 2005 Nan McKay&Associates Page 2-8 Adminplan 9/I/05 Unlimited copies may be made for internal use. 2-II.C. REQUEST FOR AN ACCOMMODATION If an applicant or participant indicates that an exception, change, or adjustment to a rule, policy, practice, or service is needed because of a disability, HUD requires that the PHA treat the information as a request for a reasonable accommodation, even if no formal request is made [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act]. The family must explain what type of accommodation is needed to provide the person with the disability full access to the PHA's programs and services. If the need for the accommodation is not readily apparent or known to the PHA, the family must explain the relationship between the requested accommodation and the disability. There must be an identifiable relationship, or nexus, between the requested accommodation and the individual's disability. PHA Policy The PHA will encourage the family to make its request in writing using a reasonable accommodation request form. However, the PHA will consider the accommodation any time the family indicates that an accommodation is needed whether or not a formal written request is submitted. • ©Copyright 2005 Nan McKay&Associates Page 2-9 Adminplan 9/1/05 Unlimited copies may be made for internal use. 2-ILD. VERIFICATION OF DISABILITY The regulatory civil rights definition for persons with disabilities is provided in Exhibit 2-1 at the end of this chapter. The definition of a person with a disability for the purpose of obtaining a reasonable accommodation is much broader than the HUD definition of disability which is used for waiting list preferences and income allowances. Before providing an accommodation, the PHA must determine that the person meets the definition of a person with a disability, and that the accommodation will enhance the family's access to the PHA's programs and services. If a person's disability is obvious, or otherwise known to the PHA, and if the need for the requested accommodation is also readily apparent or known,no further verification will be required [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act]. If a family indicates that an accommodation is required for a disability that is not obvious or otherwise known to the PHA, the PHA must verify that the person meets the definition of a person with a disability, and that the limitations imposed by the disability require the requested accommodation. When verifying a disability, the PHA will follow the verification policies provided in Chapter 7. All information related to a person's disability will be treated in accordance with the confidentiality policies provided in Chapter 16. In addition to the general requirements that govern all verification efforts, the following requirements apply when verifying a disability: • Third-party verification must be obtained from an individual identified by the family who is competent to make the determination. A doctor or other medical professional, a peer support group, a non-medical service agency, or a reliable third party who is in a position to know about the individual's disability may provide verification of a disability [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act] • The PHA must request only information that is necessary to evaluate the disability-related need for the accommodation. The PHA will not inquire about the nature or extent of any disability. • Medical records will not be accepted or retained in the participant file. C Copyright 2005 Nan McKay&Associates Page 2-10 Adminplan 9/I/05 Unlimited copies may be made for internal use. 2-II.E. APPROVAL/DENIAL OF A REQUESTED ACCOMMODATION [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act]. The PHA must approve a request for an accommodation if the following three conditions are met: • The request was made by or on behalf of a person with a disability. • There is a disability-related need for the accommodation. • The requested accommodation is reasonable, meaning it would not impose an undue financial and administrative burden on the PHA, or fundamentally alter the nature of the PHA's HCV operations (including the obligation to comply with HUD requirements and regulations). Requests for accommodations must be assessed on a case-by-case basis, taking into account factors such as the cost of the requested accommodation,the financial resources of the PHA at the time of the request, the benefits that the accommodation would provide to the family, and the availability of alternative accommodations that would effectively meet the family's disability- related needs. Before making a determination whether to approve the request, the PHA may enter into discussion and negotiation with the family, request more information from the family, or may require the family to sign a consent form so that the PHA may verify the need for the requested accommodation. PHA Policy After a request for an accommodation is presented, the PHA will respond, in writing, within 10 business days. If the PHA denies a request for an accommodation because it is not reasonable (it would impose an undue financial and administrative burden or fundamentally alter the nature of the PHA's operations), the PHA will discuss with the family whether an alternative accommodation could effectively address the family's disability-related needs without a fundamental alteration to the HCV program and without imposing an undue financial and administrative burden. If the PHA believes that the family has failed to identify a reasonable alternative accommodation after interactive discussion and negotiation, the PHA will notify the family, in writing, of its determination within 10 business days from the date of the most recent discussion or communication with the family. Copyright 2005 Nan McKay&Associates Page 2-11 Adminplan 9/1/05 Unlimited copies may be made for internal use. 2-II.F. PROGRAM ACCESSIBILITY FOR PERSONS WITH HEARING OR VISION IMPAIRMENTS HUD regulations require the PHA to ensure that persons with disabilities related to hearing and vision have reasonable access to the PHA's programs and services [24 CFR 8.6]. At the initial point of contact with each applicant, the PHA shall inform all applicants of alternative forms of communication that can be used other than plain language paperwork. PHA Policy • To meet the needs of persons with hearing impairments, TTD/TTY (text telephone display /teletype) communication will be available. To meet the needs of persons with vision impairments, large-print and audio versions of key program documents will be made available upon request. When visual aids are used in public meetings or presentations, or in meetings with PHA staff, one-on-one assistance will be provided upon request. Additional examples of alternative forms of communication are sign language interpretation; having material explained orally by staff; or having a third party representative (a friend, relative or advocate, named by the applicant) to receive, interpret and explain housing materials and be present at all meetings. ©Copyright 2005 Nan McKay&Associates Page 2-12 Adminplan 9/1/05 Unlimited copies may be made for internal use. 2-II.G. PHYSICAL ACCESSIBILITY ea- The PHA must comply with a variety of regulations pertaining to physical accessibility, including the following: • PIH 2002-01 (HA), Accessibility Notice • Section 504 of the Rehabilitation Act of 1973 • The Americans with Disabilities Act of 1990 • The Architectural Barriers Act of 1968 • The Fair Housing Act of 1988 The PHA's policies concerning physical accessibility must be readily available to applicants and participants. They can be found in three key documents: • This plan describes the key policies that govern the PHA's responsibilities with regard to physical accessibility. • Notice PIH 2002-01(HA) Accessibility Notice(which must be posted in the HCV offices in a conspicuous place) summarizes information about pertinent laws and implementing regulations related to non-discrimination and accessibility in federally-funded housing programs. • The PHA Plan provides information about self-evaluation, needs assessment, and transition plans. The design, construction, or alteration of PHA facilities must conform to the Uniform Federal Accessibility Standards (UFAS).Newly-constructed facilities must be designed to be readily accessible to and usable by persons with disabilities. Alterations to existing facilities must be accessible to the maximum extent feasible, defined as not imposing an undue financial and administrative burden on the operations of the HCV program. When issuing a voucher to a family that includes an individual with disabilities,the PHA will include a current list of available accessible units known to the PHA and will assist the family in locating an available accessible unit, if necessary. In general, owners must permit the family to make reasonable modifications to the unit. However, the owner is not required to pay for the modification and may require that the unit be restored to its original state at the family's expense when the family moves. ©Copyright 2005 Nan McKay&Associates Page 2-13 Adminplan 9/1/05 Unlimited copies may be made for internal use. 2-II.H. DENIAL OR TERMINATION OF ASSISTANCE A PHA's decision to deny or terminate the assistance of a family that includes a person with disabilities is subject to consideration of reasonable accommodation [24 CFR 982.552 (2)(iv)]. When applicants with disabilities are denied assistance, the notice of denial must inform them of the PHA's informal review process and their right to request a hearing. In addition, the notice must inform applicants with disabilities of their right to request reasonable accommodations to participate in the informal hearing process. When a participant family's assistance is terminated, the notice of termination must inform them of the PHA's informal hearing process and their right to request a hearing and reasonable accommodation. When reviewing reasonable accommodation requests, the PHA must consider whether any mitigating circumstances can be verified to explain and overcome the problem that led to the PHA's decision to deny or terminate assistance. If a reasonable accommodation will allow the family to meet the requirements, the PHA must make the accommodation. • ©Copyright 2005 Nan McKay&Associates Page 2-14 Adminplan 9/1/05 Unlimited copies may be made for internal use. PART III: IMPROVING ACCESS TO SERVICES FOR PERSONS WITH LIMITED ENGLISH PROFICIENCY (LEP) 2-III.A. OVERVIEW Language for Limited English Proficiency Persons (LEP) can be a barrier to accessing important benefits or services, understanding and exercising important rights, complying with applicable responsibilities, or understanding other information provided by the HCV program. In certain circumstances, failure to ensure that LEP persons can effectively participate in or benefit from federally-assisted progranis and activities may violate the prohibition under Title VI against discrimination on the basis of national origin. This part incorporates the Notice of Guidance to Federal Assistance Recipients Regarding Title VI Prohibition Affecting Limited English Proficient Persons, published December 19, 2003 in the Federal Register. The PHA will take affirmative steps to communicate with people who need services or information in a language other than English. These persons will be referred to as Persons with Limited English Proficiency (LEP). LEP is defined as persons who do not speak English as their primary language and who have a limited ability to read, write, speak or understand English. For the purposes of this administrative plan, LEP persons are HCV applicants and participants, and parents and family members of applicants and participants. In order to determine the level of access needed by LEP persons, the PHA will balance the following four factors: (1) the number or proportion of LEP persons eligible to be served or likely to be encountered by the Housing Choice Voucher program; (2) the frequency with which LEP persons come into contact with the program; (3)the nature and importance of the program, activity, or service provided by the program to people's lives; and (4) the resources available to the PHA and costs. Balancing these four factors will ensure meaningful access by LEP persons to critical services while not imposing undue burdens on the PHA. ©Copyright 2005 Nan McKay&Associates Page 2-15 Adminplan 9/1/05 Unlimited copies may be made for internal use. 2-III.B. ORAL INTERPRETATION In a courtroom, a hearing, or situations in which health, safety,or access to important benefits and services are at stake,the PHA will generally offer, or ensure that the family is offered through other sources, competent services free of charge to the LEP person. PHA Policy The PHA will analyze the various kinds of contacts it has with the public, to assess language needs and decide what reasonable steps should be taken. "Reasonable steps" may not be reasonable where the costs imposed substantially exceed the benefits. Where feasible, the PHA will train and hire bilingual staff to be available to act as interpreters and translators, will pool resources with other PHAs, and will standardize documents. Where feasible and possible, the PHA will encourage the use of qualified community volunteers. Where LEP persons desire, they will be permitted to use, at their own expense, an interpreter of their own choosing, in place of or as a supplement to the free language services offered by the PHA. The interpreter may be a family member or friend. 2-III.C. WRITTEN TRANSLATION Translation is the replacement of a written text from one language into an equivalent written text in another language. PHA Policy In order to comply with written-translation obligations, the PHA will take the following steps: The PHA will provide written translations of vital documents for each eligible LEP language group that constitutes 5 percent or 1,000 persons, whichever is less, of the population of persons eligible to be served or likely to be affected or encountered. Translation of other documents, if needed, can be provided orally; or If there are fewer than 50 persons in a language group that reaches the 5 percent trigger, the PHA does not translate vital written materials, but provides written notice in the primary language of the LEP language group of the right to receive competent oral interpretation of those written materials, free of cost. ©Copyright 2005 Nan McKay&Associates Page 2-16 Adminplan 9/1/05 Unlimited copies may be made for internal use. 2-III.D. IMPLEMENTATION PLAN After completing the four-factor analysis and deciding what language assistance services are appropriate, the PHA shall determine whether it is necessary to develop a written implementation plan to address the identified needs of the LEP populations it serves. If the PHA determines that it is not necessary to develop a written implementation plan, the absence of a written plan does not obviate the underlying obligation to ensure meaningful access by LEP persons to the PHA's Housing Choice Voucher program and services. PHA Policy If it is determined that the PHA serves very few LEP persons, and the PHA has very limited resources, the PHA will not develop a written LEP plan, but will consider alternative ways to articulate in a reasonable manner a plan for providing meaningful access. Entities having significant contact with LEP persons, such as schools, grassroots and faith-based organizations, community groups, and groups working with new immigrants will be contacted for input into the process. If the PHA determines it is appropriate to develop a written LEP plan, the following five steps will be taken: (1) Identifying LEP individuals who need language assistance; (2) identifying language assistance measures; (3)training staff; (4)providing notice to LEP persons; and (5) monitoring and updating the LEP plan. ©Copyright 2005 Nan McKay&Associates Page 2-17 Adminplan 9/1/05 Unlimited copies may be made for internal use. EXHIBIT 2-1: DEFINITION OF A PERSON WITH A DISABILITY UNDER FEDERAL CIVIL RIGHTS LAWS [24 CFR Parts 8.3 and 100.201] A person with a disability, as defined under federal civil rights laws, is any person who: • Has a physical or mental impairment that substantially limits one or more of the major life activities of an individual, or • Has a record of such impairment, or • Is regarded as having such impairment The phrase "physical or mental impairment" includes: • Any physiological disorder or condition, cosmetic or disfigurement, or anatomical loss affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive; digestive; genito-urinary; hemic and lymphatic; skin; and endocrine; or • Any mental or psychological disorder, such as mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities. The term "physical or mental impairment" includes, but is not limited to: such diseases and conditions as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental retardation, emotional illness, drug addiction and alcoholism. "Major life activities" includes, but is not limited to, caring for oneself, performing manual tasks, walking, seeing, hearing, breathing, learning, and/or working. "Has a record of such impairment" means has a history of, or has been misclassified as having, a mental or physical impairment that substantially limits one or more major live activities. "Is regarded as having an impairment" is defined as having a physical or mental impairment that does not substantially limit one or more major life activities but is treated by a public entity (such as the PHA) as constituting such a limitation; has none of the impairments defined in this section but is treated by a public entity as having such an impairment; or has a physical or mental impairment that substantially limits one or more major life activities, only as a result of the attitudes of others toward that impairment. ©Copyright 2005 Nan McKay&Associates Page 2-19 Adminplan 9/1/05 Unlimited copies may be made for internal use. The definition of a person with disabilities does not include: • Current illegal drug users • People whose alcohol use interferes with the rights of others • Persons who objectively pose a direct threat or substantial risk of harm to others that cannot be controlled with a reasonable accommodation under the HCV program The above definition of disability determines whether an applicant or participant is entitled to any of the protections of federal disability civil rights laws. Thus, a person who does not meet this disability is not entitled to a reasonable accommodation under federal civil rights and fair housing laws and regulations. The HUD definition of a person with a disability is much narrower than the civil rights definition of disability. The HUD definition of a person with a disability is used for purposes of receiving the disabled family preference, the $400 elderly/disabled household deduction, the $480 dependent deduction, the allowance for medical expenses, or the allowance for disability assistance expenses. The definition of a person with a disability for purposes of granting a reasonable accommodation request is much broader than the HUD definition of disability. Many people will not qualify as a disabled person under the HCV program, yet an accommodation is needed to provide equal opportunity. C Copyright 2005 Nan McKay&Associates Page 2-20 Adminplan 9/1/05 Unlimited copies may be made for internal use. Chapter 3 ELIGIBILITY INTRODUCTION The PHA is responsible for ensuring that every individual and family admitted to the HCV program meets all program eligibility requirements. This includes any individual approved to join the family after the family has been admitted to the program. The family must provide any information needed by the PHA to confirm eligibility and determine the level of the family's assistance. To be eligible for the HCV program: • The applicant family must: - Qualify as a family as defined by HUD and the PHA. - Have income at or below HUD-specified income limits. - Qualify on the basis of citizenship or the eligible immigrant status of family members. - Provide social security number information for family members as required. - Consent to the PHA's collection and use of family information as provided for in PHA- provided consent forms. • The PHA must determine that the current or past behavior of household members does not include activities that are prohibited by HUD or the PHA. This chapter contains three parts: Part I: Definitions of Family and Household Members. This part contains HUD and PHA definitions of family and household members and explains initial and ongoing eligibility issues related to these members. Part II: Basic Eligibility Criteria. This part discusses income eligibility, and rules regarding citizenship, social security numbers, and family consent. Part III: Denial of Assistance. This part covers factors related to an applicant's past or current conduct (e.g. criminal activity) that can cause the PHA to deny assistance. ®Copyright 2005 Nan McKay&Associates,Inc. Page 3-1 Adminplan 9/1/05 Unlimited copies may be made for internal use. PART I: DEFINITIONS OF FAMILY AND HOUSEHOLD MEMBERS 3-I.A. OVERVIEW Some eligibility criteria and program rules vary depending upon the composition of the family requesting assistance. In addition, some requirements apply to the family as a whole and others apply to individual persons who will live in the assisted unit. This part provides information that is needed to correctly identify family and household members, and to apply HUD's eligibility rules. 3-I.B. FAMILY AND HOUSEHOLD [24 CFR 982.201(c),HUD-50058 IB, p. 13] The terms family and household have different meanings in the HCV program. Family To be eligible for assistance, an applicant must qualify as a family. A family may be a single person or a group of persons. Family as defined by HUD includes a family with a child or children, two or more elderly or disabled persons living together, one or more elderly or disabled persons living with one or more live-in aides, or a single person. A single person family may be an elderly person, a displaced person, a disabled person, or any other single person. The PHA has the discretion to determine if any other group of persons qualifies as a family. PHA Policy A family also includes two or more individuals who are not related by blood, marriage, adoption, or other operation of law but who either can demonstrate that they have lived together previously or certify that each individual's income and other resources will be available to meet the needs of the family. Each family must identify the individuals to be included in the family at the time of application, and must update this information if the family's composition changes. Household Household is a broader term that includes additional people who, with the PHA's permission, live in an assisted unit, such as live-in aides, foster children, and foster adults. Copyright 2005 Nan McKay&Associates,Inc. Page 3-3 Adminplan 9/1/05 Unlimited copies may be made for internal use. 3-I.C. FAMILY BREAK-UP AND REMAINING MEMBER OF TENANT FAMILY Family Break-up [24 CFR 982315] The PHA has discretion to determine which members of an assisted family continue to receive assistance if the family breaks up. However, if a court determines the disposition of property between members of the assisted family in a divorce or separation decree, the PHA is bound by the court's determination of which family members continue to receive assistance. PHA Policy When a family on the waiting list breaks up into two otherwise eligible families, only one of the new families may retain the original application date. Other former family members may make a new application with a new application date if the waiting list is open. If a family breaks up into two otherwise eligible families while receiving assistance, only one of the new families will continue to be assisted. In the absence of a judicial decision, or an agreement among the original family members, the PHA will determine which family retains their placement on the waiting list, or will continue to receive assistance taking into consideration the following factors: (I) the interest of any minor children, including custody arrangements, (2) the interest of any ill, elderly, or disabled family members, (3) any possible risks to family members as a result of domestic violence or criminal activity, and (4) the recommendations of social service professionals. Remaining Member of a Tenant Family [24 CFR 5.403] The HUD definition of family includes the remaining member of a tenant family, which is a member of an assisted family who remains in the unit when other members of the family have left the unit. Household members such as live-in aides, foster children, and foster adults do not qualify as remaining members of a family. If dependents are the only "remaining members of a tenant family" and there is no family member able to assume the responsibilities of the head of household, see Chapter 6, Section 6- I.B, for the policy on "Caretakers for a Child." ©Copyright 2005 Nan McKay&Associates,Inc. Page 3-4 Adminplan 9/1/05 Unlimited copies may be made for internal use. 3-I.D. HEAD OF HOUSEHOLD [24 CFR 5.504(b)] Head of household means the adult member of the family who is considered the head for purposes of determining income eligibility and rent. The head of household is responsible for ensuring that the family fulfills all of its responsibilities under the program, alone or in conjunction with a cohead or spouse. PHA Policy The family may designate any qualified family member as the head of household. The head of household must have the legal capacity to enter into a lease under state and local law. 3-I.E. SPOUSE, COHEAD,AND OTHER ADULT A family may have a spouse or cohead, but not both [HUD-50058 IB, p. 13]. Spouse means the marriage partner of the head of household. PHA Policy A marriage partner includes the partner in a "common law" marriage as defined in state law. The term "spouse" does not apply to friends, roommates, or significant others who are not marriage partners. A cohead is an individual in the household who is equally responsible with the head of household for ensuring that the family fulfills all of its responsibilities under the program, but who is not a spouse. A family can have only one cohead. PHA Policy Other adult means a family member, other than the head, spouse, or cohead, who is 18 years of age or older. Foster adults and live-in aides are not considered other adults. ©Copyright 2005 Nan McKay&Associates,Inc. Page 3-5 Adminplan 9/1/05 Unlimited copies may be made for internal use. 3-I.F. DEPENDENT [24 CFR 5.603] A dependent is a family member who is under 18 years of age or a person of any age who is a person with a disability or a full-time student, except that the following persons can never be dependents: the head of household, spouse, cohead, foster children/adults and live-in aides. Identifying each dependent in the family is important because each dependent qualifies the family for a deduction from annual income as described in Chapter 6. Joint Custody of Dependents PHA Policy Dependents that are subject to a joint custody arrangement will be considered a member of the family, if they live with the applicant or participant family 50 percent or more of the time. When more than one applicant or participant family is claiming the same dependents as family members, the family with primary custody at the time of the initial examination or reexamination will be able to claim the dependents. If there is a dispute about which family should claim them, the PHA will make the determination based on available documents such as court orders, or an IRS return showing which family has claimed the child for income tax purposes. 3-I.G. FULL-TIME STUDENT [24 CFR 5.603, HVC GB p. 5-29] A full-time student(FTS) is a person who is attending school or vocational training on a full-time basis. The time commitment or subject load that is needed to be full-time is defined by the educational institution. Identifying each FTS is important because (1) each family member that is an FTS, other than the head, spouse, or cohead, qualifies the family for a dependent deduction and (2) the income of such an FTS is treated differently from the income of other family members. 3-I.I1. ELDERLY AND NEAR-ELDERLY PERSONS, AND ELDERLY FAMILY [24 CFR 5.100 and 5.403] Elderly Persons An elderly person is a person who is at least 62 years of age. Near-Elderly Persons A near-elderly person is a person who is at least 50 years of age but below the age of 62. Elderly Family An elderly family is one in which the head, spouse, cohead, or sole member is an elderly person. Identifying elderly families is important because these families qualify for special deductions from income as described in Chapter 6. C Copyright 2005 Nan McKay&Associates,Inc. Adminplan 9/1/05 Unlimited copies may be made for internal use. Page 3-6 3-I.I. PERSONS WITH DISABILITIES AND DISABLED FAMILY [24 CFR 5.403] Persons with Disabilities Under the HCV program, special rules apply to persons with disabilities and to any family whose head, spouse, or cohead is a person with disabilities. The technical definitions of individual with handicaps and persons with disabilities are provided in Exhibit 3-1 at the end of this chapter. These definitions are used for a number of purposes including ensuring that persons with disabilities are not discriminated against based upon disability. As discussed in Chapter 2, the PHA must make all aspects of the HCV program accessible to persons with disabilities and consider reasonable accommodations requested based upon a person's disability. Disabled Family A disabled family is one in which the head, spouse, or cohead is a person with disabilities. Identifying disabled families is important because these families qualify for special deductions from income as described in Chapter 6. Even though persons with drug or alcohol dependencies are considered persons with disabilities for the purpose of non-discrimination, this does not prevent the PHA from denying assistance for reasons related to alcohol and drug abuse following policies found in Part III of this chapter, or from terminating assistance following the policies in Chapter 12. 3-I.J. GUESTS [24 CFR 5.100] A guest is a person temporarily staying in the unit with the consent of a member of the household who has express or implied authority to so consent. PHA Policy A guest can remain in the assisted unit no longer than 14 consecutive days or a total of 30 cumulative calendar days during any 12 month period. Client must obtain written permission from the landlord if the terms of their lease are more restrictive. Children who are subject to a joint custody arrangement or for whom a family has visitation privileges, that are not included as a family member because they live outside of the assisted household more than 50 percent of the time, are not subject to the time limitations of guests as described above. A family may request an exception to this policy for valid reasons (e.g., care of a relative recovering from a medical procedure is expected to last 40 consecutive days). An exception will not be made unless the family can identify and provide documentation of the residence to which the guest will return. ®Copyright 2005 Nan McKay&Associates,Inc. Page 3-7 Adminplan 9/1/05 Unlimited copies may be made for internal use. 3.I.K. FOSTER CHILDREN AND FOSTER ADULTS Foster adults are usually persons with disabilities, unrelated to the tenant family, who are unable to live alone [24 CFR 5.609]. The term foster child is not specifically defined by the regulations. Foster children and foster adults that are living with an applicant or assisted family are considered household members but not family members. The income of foster children/adults is not counted in family annual income and foster children/adults do not qualify for a dependent deduction [24 CFR 5.603 and HUD-50058 IB, p. 13]. PHA Policy A foster child is a child that is in the legal guardianship or custody of a state, county, or private adoption or foster care agency, yet is cared for by foster parents in their own homes, under some kind of short-term or long-term foster care arrangement with the custodial agency. A foster child or foster adult may be allowed to reside in the unit if their presence would not result in a violation of HQS space standards according to 24 CFR 982.401. Children that are temporarily absent from the home as a result of placement in foster care are discussed in Section 3-I.L. 3-I.L. ABSENT FAMILY MEMBERS Individuals may be absent from the family, either temporarily or permanently, for a variety of reasons including educational activities, placement in foster care, employment, illness, -- incarceration, and court order. Definitions of Temporarily and Permanently Absent PHA Policy Generally an individual who is or is expected to be absent from the assisted unit for 90 consecutive days or less is considered temporarily absent and continues to be considered a family member. Generally an individual who is or is expected to be absent from the assisted unit for more than 180 consecutive days is considered permanently absent and no longer a family member. Exceptions to this general policy are discussed below. Absent Students PHA Policy When someone who has been considered a family member attends school away from home, the person will continue to be considered a family member unless information becomes available to the PHA indicating that the student has established a separate household or the family declares that the student has established a separate household. Copyright 2005 Nan McKay&Associates,Inc. Page 3-8 Adminplan 9/1/05 Unlimited copies may be made for internal use. Absences Due to Placement in Foster Care [24 CFR 5.403] Children temporarily absent from the home as a result of placement in foster care are considered members of the family. PHA Policy If a child has been placed in foster care, the PHA will verify with the appropriate agency whether and when the child is expected to be returned to the home. Unless the agency confirms that the child has been permanently removed from the home, the child will be counted as a family member. Family Members Permanently Confined for Medical Reasons [HCV GB, p. 5-22] If a family member is confined to a nursing home or hospital on a permanent basis, that person is no longer considered a family member and the income of that person is not counted [HCV GB, p. 5-22]. PHA Policy The PHA will request verification from a responsible medical professional and will use this determination. If the responsible medical professional cannot provide a determination, the person generally will be considered temporarily absent. The family may present evidence that the family member is confined on a permanent basis and request that the person not be considered a family member. Return of Permanently Absent Family Members PHA Policy .-. The family must request PHA approval for the return of any adult family members that the PHA has determined to be permanently absent. The individual is subject to the eligibility and screening requirements discussed elsewhere in this chapter. Copyright 2005 Nan McKay&Associates,Inc. Page 3-9 Adminplan 9/1/05 Unlimited copies may be made for internal use. 3-I.M. LIVE-IN AIDE Live-in aide means a person who resides with one or more elderly persons, or near-elderly persons, or persons with disabilities, and who: (I) is determined to be essential to the care and well-being of the persons, (2) is not obligated for the support of the persons, and (3) would not be living in the unit except to provide the necessary supportive services [24 CFR 5.403]. The PHA must approve a live-in aide if needed as a reasonable accommodation in accordance with 24 CFR 8, to make the program accessible to and usable by the family member with disabilities. A live-in aide is a member of the household, not the family, and the income of the aide is not considered in income calculations [24 CFR 5.609(b)]. Relatives may be approved as live-in aides if they meet all of the criteria defining a live-in aide. However, a relative who serves as a live-in aide is not considered a family member and would not be considered a remaining member of a tenant family. PHA Policy A family's request for a live-in aide must be made in writing. Written verification will be required from a reliable, knowledgeable professional, such as a doctor, social worker, or case worker, that the live-in aide is essential for the care and well-being of the elderly, near-elderly, or disabled family member. In addition, the family and live-in aide will be required to submit a certification stating that the live-in aide is (1) not obligated for the support of the person(s) needing the care, and (2) would not be living in the unit except to provide the necessary supportive services. The PHA will not approve a particular person as a live-in aide, and may withdraw Such approval if[24 CFR 982.316(b)]: The person commits fraud, bribery or any other corrupt or criminal act in connection with any federal housing program; The person commits drug-related criminal activity or violent criminal activity; or The person currently owes rent or other amounts to the PHA or to another PHA in connection with Section 8 or public housing assistance under the 1937 Act. Within 10 business days of receiving a request for a live-in aide, including all required documentation related to the request, the PHA will notify the family of its decision in writing. Copyright 2005 Nan McKay&Associates,Inc. Adminplan 9/1/05 Unlimited copies may be made for internal use. Page 3-10 PART II: BASIC ELIGIBILITY CRITERIA 3-II.A. INCOME ELIGIBILITY AND TARGETING Income Limits HUD is required by law to set income limits that determine the eligibility of applicants for HUD's assisted housing programs, including the housing choice voucher program. The income limits are published annually and are based on HUD estimates of median family income in a particular area or county, with adjustments for family size. Types of Low-Income Families [24 CFR 5.603(b)] Low-income family. A family whose annual income does not exceed 80 percent of the median income for the area, adjusted for family size. Very low-income family. A family whose annual income does not exceed 50 percent of the median income for the area, adjusted for family size. Extremely low-income family. A family whose annual income does not exceed 30 percent of the median income for the area, adjusted for family size. HUD may establish income ceilings higher or lower than 30, 50, or 80 percent of the median income for an area if HUD finds that such variations are necessary because of unusually high or low family incomes. Using Income Limits for Eligibility [24 CFR 982.201] Income limits are used for eligibility only at admission. Eligibility is established by comparing a family's annual income with HUD's published income limits. To be income-eligible, a family must be one of the following: • A very low-income family • A low-income family that has been "continuously assisted" under the 1937 Housing Act. A family is considered to be continuously assisted if the family is already receiving assistance under any 1937 Housing Act program at the time the family is admitted to the HCV program [24 CFR 982.4] PHA Policy The PHA will consider a family to be continuously assisted if the family was leasing a unit under any 1937 Housing Act program at the time they were issued a voucher by the PHA. • A low-income family that qualifies for voucher assistance as a non-purchasing household living in HOPE 1 (public housing homeownership), HOPE 2 (multifamily housing homeownership) developments, or other HUD-assisted multifamily homeownership programs covered by 24 CFR 248.173 • A low-income or moderate-income family that is displaced as a result of the prepayment of a mortgage or voluntary termination of a mortgage insurance contract on eligible low-income housing as defined in 24 CFR 248.101 O Copyright 2005 Nan McKay&Associates,Inc. Page 3-11 Adminplan 9/1/05 Unlimited copies may be made for internal use. HUD permits the PHA to establish additional categories of low-income families that may be determined eligible. The additional categories must be consistent with the PHA plan and the consolidated plans for local governments within the PHA's jurisdiction. PHA Policy The PHA has not established any additional categories of eligible low-income families. Using Income Limits for Targeting [24 CFR 982.201] At least 75 percent of the families admitted to the PHA's program during a PHA fiscal year must be extremely low-income families. HUD may approve exceptions to this requirement if the PHA demonstrates that it has made all required efforts, but has been unable to attract an adequate number of qualified extremely low-income families. Families continuously assisted under the 1937 Housing Act and families living in eligible low- income housing that are displaced as a result of prepayment of a mortgage or voluntary termination of a mortgage insurance contract are not subject to the 75 percent restriction. CO Copyright 2005 Nan McKay&Associates,Inc. Page 3-12 Adminplan 9/1/05 Unlimited copies may be made for internal use. 3-II.B. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5, Subpart El Housing assistance is available only to individuals who are U.S. citizens, U.S. nationals (herein referred to as citizens and nationals), or noncitizens that have eligible immigration status. At least one family member must be a citizen, national, or noncitizen with eligible immigration status in order for the family to qualify for any level of assistance. All applicant families must be notified of the requirement to submit evidence of their citizenship status when they apply. Where feasible, and in accordance with the PHA's Limited English Proficiency Plan, the notice must be in a language that is understood by the individual if the individual is not proficient in English. Declaration [24 CFR 5.508] HUD requires each family member to declare whether the individual is a citizen, a national, or an eligible noncitizen, except those members who elect not to contend that they have eligible immigration status. Those who elect not to contend their status are considered to be ineligible noncitizens. For citizens, nationals and eligible noncitizens the declaration must be signed personally by the head, spouse, cohead, and any other family member 18 or older, and by a parent or guardian for minors. The family must identify in writing any family members who elect not to contend their immigration status (see Ineligible Noncitizens below). No declaration is required for live-in aides, foster children, or foster adults. U.S. Citizens and Nationals In general, citizens and nationals are required to submit only a signed declaration that claims their status. However, HUD regulations permit the PHA to request additional documentation of their status, such as a passport. PHA Policy Family members who declare citizenship or national status will not be required to provide additional documentation unless the PHA receives information indicating that an individual's declaration may not be accurate. Eligible Noncitizens In addition to providing a signed declaration, those declaring eligible noncitizen status must sign a verification consent form and cooperate with PHA efforts to verify their immigration status as described in Chapter 7. The documentation required for establishing eligible noncitizen status varies depending upon factors such as the date the person entered the U.S., the conditions under which eligible immigration status has been granted, the person's age, and the date on which the family began receiving HUD-funded assistance. Lawful residents of the Marshall Islands, the Federated States of Micronesia, and Palau, together known as the Freely Associated States, or FAS, are eligible for housing assistance under section 141 of the Compacts of Free Association between the U.S. Government and the Governments of the FAS [Public Law 106-504]. ©Copyright 2005 Nan McKay&Associates,Inc. Page 3-13 Adminplan 9/1/05 Unlimited copies may be made for internal use. Ineligible Noncitizens Those noncitizens who do not wish to contend their immigration status are required to have their names listed on a noncontending family members listing, signed by the head, spouse, or cohead (regardless of citizenship status), indicating their ineligible immigration status. The PHA is not required to verify a family member's ineligible status and is not required to report an individual's unlawful presence in the U.S. to the United States Citizenship and Immigration Services (USCIS). Providing housing assistance to noncitizen students is prohibited [24 CFR 5.522]. This prohibition extends to the noncitizen spouse of a noncitizen student as well as to minor children who accompany or follow to join the noncitizen student. Such prohibition does not extend to the citizen spouse of a noncitizen student or to the children of the citizen spouse and noncitizen student. Such a family is eligible for prorated assistance as a mixed family. Mixed Families A family is eligible for assistance as long as at least one member is a citizen, national, or eligible noncitizen. Families that include eligible and ineligible individuals are considered mixed families. Such families will be given notice that their assistance will be prorated, and that they may request a hearing if they contest this determination. See Chapter 6 for a discussion of how rents are prorated, and Chapter 16 for a discussion of informal hearing procedures. Ineligible Families [24 CFR 5.514(d), (e), and (f)] A PHA may elect to provide assistance to a family before the verification of the eligibility of the individual or one family member [24 CFR 5.512(b)]. Otherwise, no individual or family may be assisted prior to the affirmative establishment by the PHA that the individual or at least one family member is eligible [24 CFR 5.512(a)]. PHA Policy The PHA will not provide assistance to a family before the verification of at least one family member. When a PHA determines that an applicant family does not include any citizens, nationals, or eligible noncitizens, following the verification process, the family will be sent a written notice within 10 business days of the determination. The notice will explain the reasons for the denial of assistance, that the family may be eligible for proration of assistance, and will advise the family of its right to request an appeal to the United States Citizenship and Immigration Services (USCIS), or to request an informal hearing with the PHA. The informal hearing with the PHA may be requested in lieu of the USCIS appeal, or at the conclusion of the USCIS appeal process. The notice must also inform the applicant family that assistance may not be delayed until the conclusion of the USCIS appeal process, but that it may be delayed pending the completion of the informal hearing process. Informal hearing procedures are contained in Chapter 16. ®Copyright 2005 Nan McKay&Associates,Inc. Page 3-14 Adminplan 9/1/05 Unlimited copies may be made for internal use. Timeframe for Determination of Citizenship Status [24 CFR 5.508(g)] For new occupants joining the assisted family the PHA must verify status at the first interim or regular reexamination following the person's occupancy, whichever comes first. If an individual qualifies for a time extension for the submission of required documents, the PHA must grant such an extension for no more than 30 days [24 CFR 5.508(h)]. Each family member is required to submit evidence of eligible status only one time during continuous occupancy. PHA Policy The PHA will verify the status of applicants at the time other eligibility factors are determined. 3-II.C.SOCIAL SECURITY NUMBERS [24 CFR 5.216 and 5.218] For every family member age 6 or older the family must provide documentation of a valid Social Security Number(SSN) or a certification stating that no SSN has been issued. If a family member who is required to execute a certification is less than 18 years old, the certification must be executed by the individual's parent or guardian [24 CFR 5.216(j)]. Assistance cannot be provided to a family until all SSN documentation requirements are met. A detailed discussion of acceptable documentation is provided in Chapter 7. If a new member who is at least six years of age is added to the family, the new member's SSN documentation must be submitted at the family's next interim or regular reexamination, whichever comes first. If any member of the family who is at least six years of age obtains a previously undisclosed SSN, or has been assigned a new SSN, the documentation must be submitted at the family's next regularly scheduled reexamination. The PHA must deny assistance to an applicant family if they do not meet the SSN disclosure, documentation and verification, and certification requirements contained in 24 CFR 5.216. ®Copyright 2005 Nan McKay&Associates,Inc. Page 3-15 Adminplan 9/1/05 Unlimited copies may be made for internal use. 3-II.D. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 5.230, HCV GB, p. 5-13] HUD requires each adult family member, and the head of household, spouse, or cohead, regardless of age, to sign form HUD-9886, Authorization for the Release of Information/ Privacy Act Notice, and other consent forms as needed to collect information relevant to the family's eligibility and level of assistance. Chapter 7 provides detailed information concerning the consent forms and verification requirements. The PHA must deny admission to the program if any member of the applicant family fails to sign and submit the consent forms for obtaining information in accordance with 24 CFR 5, Subparts B and F [24 CFR 982.552(b)(3)]. ®Copyright 2005 Nan McKay&Associates, Inc. Page 3-16 Adminplan 9/1/05 Unlimited copies may be made for internal use. PART III: DENIAL OF ASSISTANCE 3-III.A. OVERVIEW A family that does not meet the eligibility criteria discussed in Parts I and II, must be denied assistance. In addition, HUD requires or permits the PHA to deny assistance based on certain types of current or past behaviors of family members. Forms of Denial [24 CFR 982.552(a)(2); HCV GB, p. 5-35] Denial of assistance includes any of the following: • Not placing the family's name on the waiting list, • Denying or withdrawing a voucher, • Not approving a request for tenancy or refusing to enter into a HAP contract, or • Refusing to process a request for or to provide assistance under portability procedures. Prohibited Reasons for Denial of Assistance [24 CFR 982.202(b)] HUD rules prohibit denial of assistance to the program based on any of the following criteria: • Age, disability, race, color, religion, sex, or national origin. (See Chapter 2 for additional information about fair housing and equal opportunity requirements.) • Where a family lives prior to admission to the program • Where the family will live with assistance under the program. Although eligibility is not affected by where the family will live, there may be restrictions on the family's ability to move outside the PHA's jurisdiction (See Chapter 10, Portability.) • Whether members of the family are unwed parents, recipients of public assistance, or children born out of wedlock • Whether the family includes children • Whether a family decides to participate in a family self-sufficiency program ®Copyright 2005 Nan McKay&Associates,Inc. Page 3-17 Adminplan 9/1/05 Unlimited copies may be made for internal use. 3-III.B. MANDATORY DENIAL OF ASSISTANCE [24 CFR 982.553(a)] HUD requires the PHA to deny assistance in the following cases: ~� • Any member of the household has been evicted from federally-assisted housing in the last 3 years for drug-related criminal activity. HUD permits but does not require the PHA to admit an otherwise-eligible family if the household member has completed a PHA-approved drug rehabilitation program or the circumstances which led to eviction no longer exist (e.g. the person involved in the criminal activity no longer lives in the household). PHA Policy The PHA will admit an otherwise-eligible family who was evicted from federally- assisted housing within the past 3 years for drug-related criminal activity, if the PHA is able to verify that the household member who engaged in the criminal act is no longer living in the household. • The PHA determines that any household member is currently engaged in the use of illegal drugs. PHA Policy Currently engaged in is defined as any use of illegal drugs during the previous six months. • The PHA has reasonable cause to believe that any household member's current use or pattern of use of illegal drugs, or current abuse or pattern of abuse of alcohol, may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents. PHA Policy In determining reasonable cause, the PHA will consider all credible evidence, including but not limited to, any record of convictions, arrests, or evictions of household members related to the use of illegal drugs or the abuse of alcohol. A conviction will be given more weight than an arrest. The PHA will also consider evidence from treatment providers or community-based organizations providing services to household members. • Any household member has ever been convicted of drug-related criminal activity for the production or manufacture of methamphetamine on the premises of federally assisted housing • Any household member is subject to a lifetime registration requirement under a state sex offender registration program C Copyright 2005 Nan McKay&Associates,Inc. Page 3-18 Adminplan 9/1/05 Unlimited copies may be made for internal use. 3-III.C. OTHER PERMITTED REASONS FOR DENIAL OF ASSISTANCE HUD permits, but does not require the PHA to deny assistance for the reasons discussed in this section. Criminal Activity [24 CFR 982.553] HUD permits, but does not require, the PHA to deny assistance if the PHA determines that any household member is currently engaged in, or has engaged in during a reasonable time before the family would receive assistance, certain types of criminal activity. PHA Policy If any household member is currently engaged in, or has engaged in any of the following criminal activities, within the past five years,the family will be denied assistance. Drug-related criminal activity, defined by HUD as the illegal manufacture, sale, distribution, or use of a drug, or the possession of a drug with intent to manufacture, sell, distribute or use the drug [24 CFR 5.100]. Violent criminal activity, defined by HUD as any criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force substantial enough to cause, or be reasonably likely to cause, serious bodily injury or property damage [24 CFR 5.100]. Criminal activity that may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents or persons residing in the immediate vicinity; or Criminal activity that may threaten the health or safety of property owners and management staff, and persons performing contract administration functions or other responsibilities on behalf of the PHA (including a PHA employee or a PHA contractor, subcontractor, or agent). Immediate vicinity means within a three-block radius of the premises. Evidence of such criminal activity includes, but is not limited to: Conviction for drug-related or violent criminal activity within the past 5 years. Any arrests for drug-related or violent criminal activity within the past 5 years. Any record of eviction from public or privately-owned housing as a result of criminal activity within the past 5 years. A conviction for drug-related or violent criminal activity will be given more weight than an arrest for such activity. In making its decision to deny assistance, the PHA will consider the factors discussed in Section 3-III.E. Upon consideration of such factors, the PHA may, on a case-by-case basis, decide not to deny assistance. ®Copyright 2005 Nan McKay&Associates,Inc. Page 3-19 Adminplan 9/1/05 Unlimited copies may be made for internal use. Previous Behavior in Assisted Housing [24 CFR 982.552(c)] HUD authorizes the PHA to deny assistance based on the family's previous behavior in assisted housing: PHA Policy The PHA will not deny assistance to an otherwise eligible family because the family previously failed to meet its obligations under the Family Self-Sufficiency (FSS) program or the Welfare to Work voucher program. The PHA will deny assistance to an applicant family if: The family does not provide information that the PHA or HUD determines is necessary in the administration of the program. The family does not provide complete and true information to the PHA. Any family member has been evicted from federally-assisted housing in the last five years. Any PHA has ever terminated assistance under the program for any member of the family. Any family member has committed fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program. The family owes rent or other amounts to any PHA in connection with the HCV, Certificate, Moderate Rehabilitation or public housing programs, unless the family repays the full amount of the debt prior to being selected from the waiting list. If the family has not reimbursed any PHA for amounts the PHA paid to an owner under a HAP contract for rent, damages to the unit, or other amounts owed by the family under the lease, unless the family repays the full amount of the debt prior to being selected from the waiting list. The family has breached the terms of a repayment agreement entered into with the PHA, unless the family repays the full amount of the debt covered in the repayment agreement prior to being selected from the waiting list. A family member has engaged in or threatened violent or abusive behavior toward PHA personnel. Abusive or violent behavior towards PHA personnel includes verbal as well as physical abuse or violence. Use of racial epithets, or other language, written or oral, that is customarily used to intimidate may be considered abusive or violent behavior. Threatening refers to oral or written threats or physical gestures that communicate intent to abuse or commit violence. In making its decision to deny assistance, the PHA will consider the factors discussed in Section 3-III.E. Upon consideration of such factors, the PHA may, on a case-by-case basis, decide not to deny assistance. ®Copyright 2005 Nan McKay&Associates,Inc. Page 3-20 Adminplan 9/1/05 Unlimited copies may be made for internal use. Students enrolled in an institution of higher education As part of the 2006 HUD appropriations Act , Congress enacted a new eligibility provision for the Section 8 assistance for students enrolled in an institution of higher education (i.e., college level students). An applicant is NOT eligible for housing assistance under Section 8 of the Housing Act if he/she: 1) Is enrolled as a student at an institution of higher education 2) Is under 24 years of age 3) Is not a veteran 4) Is unmarried 5) Dose not have a dependent child, and 6) Is not other wise individually eligible or has parents who individually or jointly, are not eligible, to receive assistance under Section 8 of the United States Housing Act of 1937. 3-III.D. SCREENING Screening for Eligibility PHAs are authorized to obtain criminal conviction records from law enforcement agencies to screen applicants for admission to the HCV program. This authority assists the PHA in complying with HUD requirements and PHA policies to deny assistance to applicants who are engaging in or have engaged in certain criminal activities. In order to obtain access to the records the PHA must require every applicant family to submit a consent form signed by each adult household member [24 CFR 5.903]. PHA Policy The PHA will perform a criminal background check through local law enforcement for every adult household member. If the results of the criminal background check indicate that there may be past criminal activity, but the results are inconclusive, the PHA will request a fingerprint card and will request information from the National Crime Information center (NCIC). PHAs are required to perform criminal background checks necessary to determine whether any household member is subject to a lifetime registration requirement under a state sex offender m Copyright 2005 Nan McKay&Associates,Inc. Page 3-21 Adminplan 9/1/05 Unlimited copies may be made for internal use. program in the state where the housing is located, as well as in any other state where a household member is known to have resided [24 CFR 982.553(a)(2)(i)]. If the PHA proposes to deny assistance based on a criminal record or on lifetime sex offender registration information, the PHA must notify the household of the proposed action and must provide the subject of the record and the applicant a copy of the record and an opportunity to dispute the accuracy and relevance of the information prior to a denial of admission. [24 CFR 5.903(f) and 5.905(d)]. ©Copyright 2005 Nan McKay Sr Associates,Inc. Page 3-22 Adminpian 9/1/05 Unlimited copies may be made for internal use. Screening for Suitability as a Tenant [24 CFR 982.307] The PHA has no liability or responsibility to the owner for the family's behavior or suitability for tenancy. The PHA may opt to conduct additional screening to determine whether an applicant is likely to be a suitable tenant. PHA Policy The PHA will not conduct additional screening to determine an applicant family's suitability for tenancy. The owner is responsible for screening and selection of the family to occupy the owner's unit. The PHA must inform the owner that screening and selection for tenancy is the responsibility of the owner. An owner may consider a family's history with respect to factors such as: payment of rent and utilities, caring for a unit and premises, respecting the rights of other residents to the peaceful enjoyment of their housing, criminal activity that is a threat to the health, safety or property of others, and compliance with other essential conditions of tenancy. HUD requires the PHA to provide prospective owners with the family's current and prior address (as shown in PHA records) and the name and address (if known) of the owner at the family's current and prior addresses. HUD permits the PHA to provide owners with additional information, as long as families are notified that the information will be provided, and the same type of information is provided to all owners. PHA Policy The PHA will inform owners of their responsibility to screen prospective tenants. The PHA will not provide any additional information to the owner, such as tenancy history, criminal history, etc. Upon written request of the prospective landlord the agency will provide the following information based on verified documentation in our possession: Eviction History, Damage to the Rental Unit. An exception to this policy will be made if the family's whereabouts must be protected due to domestic abuse or witness protection. ©Copyright 2005 Nan McKay&Associates,Inc. Page 3-23 Adminplan 9/1/05 Unlimited copies may be made for internal use. 3-III.E. CRITERIA FOR DECIDING TO DENY ASSISTANCE Evidence [24 CFR 982.553(c)] PHA Policy The PHA will use the concept of the preponderance of the evidence as the standard for making all admission decisions. Preponderance of the 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. Preponderance of the evidence may not be determined by the number of witnesses, but by the greater weight of all evidence. Consideration of Circumstances [24 CFR 982.552(c)(2)] HUD authorizes the PHA to consider all relevant circumstances when deciding whether to deny assistance based on a family's past history except in the situations for which denial of assistance is mandated(see Section 3-III.B). PHA Policy The PHA will consider the following factors prior to making its decision: The seriousness of the case, especially with respect to how it would affect other residents The effects that denial of assistance may have on other members of the family who were not involved in the action or failure The extent of participation or culpability of individual family members, including whether the culpable family member is a minor or a person with disabilities The length of time since the violation occurred, the family's recent history and the likelihood of favorable conduct in the future In the case of drug or alcohol abuse, whether the culpable household member is participating in or has successfully completed a supervised drug or alcohol rehabilitation program or has otherwise been rehabilitated successfully The PHA will require the applicant to submit evidence of the household member's current participation in or successful completion of a supervised drug or alcohol rehabilitation program, or evidence of otherwise having been rehabilitated successfully. m Copyright 2005 Nan McKay&Associates,Inc. Page 3-24 Adminplan 9/1/05 Unlimited copies may be made for internal use. Removal of a Family Member's Name from the Application [24 CFR 982.552(c)(2)(ii)] HUD permits PHAs to impose as a condition of admission, a requirement that family members who participated in or were culpable for an action or failure to act which results in the denial of assistance, to not reside in the unit. PHA Policy As a condition of receiving assistance, a family may agree to remove the culpable family member from the application. In such instances, the head of household must certify that the family member will not be permitted to visit or to stay as a guest in the assisted unit. After admission to the program, the family must present evidence of the former family member's current address upon PHA request. Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)] If the family includes a person with disabilities, the PHA's decision concerning denial of admission is subject to consideration of reasonable accommodation in accordance with 24 CFR Part 8. PHA Policy If the family indicates that the behavior of a family member with a disability is the reason for the proposed denial of assistance, the PHA will determine whether the behavior is related to the disability. If so, upon the family's request, the PHA will determine whether alternative measures are appropriate as a reasonable accommodation. The PHA will only consider accommodations that can reasonably be expected to address the behavior that is the basis of the proposed denial of assistance. See Chapter 2 for a discussion of reasonable accommodation. ©Copyright 2005 Nan McKay&Associates,Inc. Page 3-25 Adminplan 9/1/05 Unlimited copies may be made for internal use. 3-III.F. NOTICE OF ELIGIBILITY OR DENIAL Eligible for Assistance If the family is eligible for assistance, the PHA will notify the family when it extends the invitation to attend the voucher briefing appointment, as discussed in Chapter 5. If the PHA determines that a family is not eligible for the program for any reason, the family must be notified promptly. The notice must describe (1) the reasons for which assistance has been denied (2)the family's right to an informal review, and (3) the process for obtaining the informal review [24 CFR 982.554 (a)]. See Chapter 16, for informal review policies and procedures. PHA Policy The family will be notified of a decision to deny assistance in writing within 10 business days of the determination. If a PHA uses a criminal record or sex offender registration information obtained under 24 CFR 5, Subpart J, as the basis of a denial, a copy of the record must precede the notice to deny, with an opportunity for the applicant to dispute the accuracy and relevance of the information before the PHA can move to deny the application. In addition, a copy of the record must be provided to the subject of the record [24 CFR 5.903(f) and 5.905(d)]. The PHA must give the family an opportunity to dispute the accuracy and relevance of that record, in the informal review process in accordance with program requirements [24 CFR 982.553(d)] PHA Policy If based on a criminal record or sex offender registration information, an applicant family appears to be ineligible the PHA will notify the family in writing of the proposed denial and provide a copy of the record to the applicant and to the subject of the record. The family will be given 10 business days to dispute the accuracy and relevance of the information. If the family does not contact the PHA to dispute the information within that 10 day period, the PHA will proceed with issuing the notice of denial of admission. A family that does not exercise their right to dispute the accuracy of the information prior to issuance of the official denial letter will still be given the opportunity to do so as part of the informal review process. Notice requirements related to denying assistance to noncitizens are contained in Section 3-II.B. m Copyright 2005 Nan McKay&Associates,Inc. Page 3-26 Adminplan 9/1/05 Unlimited copies may be made for internal use. 0.1 C Copyright 2005 Nan McKay&Associates,Inc. Page 3-27 Adminplan 9/1/05 Unlimited copies may be made for internal use. EXHIBIT 3-1: DETAILED DEFINITIONS RELATED TO DISABILITIES Person with Disabilities [24 CFR 5.403] The term person with disabilities means a person who has any of the following types of conditions: • Has a disability, as defined in 42 U.S.C. Section 423(d)(1)(A), which reads: Inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months; or In the case of an individual who has attained the age of 55 and is blind (within the meaning of"blindness" as defined in section 416(i)(1) of this title), inability by reason of such blindness to engage in substantial gainful activity, requiring skills or ability comparable to those of any gainful activity in which he has previously engaged with some regularity and over a substantial period of time. • Has a developmental disability as defined in the Developmental Disabilities Assistance and Bill of Rights Act [42 U.S.C.6001(8)], which defines developmental disability in functional terms as: A severe, chronic disability of a person 5 years of age or older which: - Is attributable to a mental or physical impairment or combination of mental and physical impairments; - Is manifested before the person attains age twenty-two; - Is likely to continue indefinitely; - Results in substantial functional limitations in three or more of the following areas of major life activity: (i) self-care, (ii) receptive and responsive language, (iii) learning, (iv) mobility, (v) self-direction, (vi) capacity for independent living, and (vii) economic self-sufficiency; and - Reflects the person's need for a combination and sequence of special, interdisciplinary, or generic care, treatment, or other services which are of lifelong or extended duration and are individually planned and coordinated; except that such term, when applied to infants and young children, means individuals from birth to age 5, inclusive, who have substantial developmental delay or specific congenital or acquired conditions with a high probability of resulting in developmental disabilities if services are not provided." • Has a physical, mental, or emotional impairment that is expected to be of long-continued and indefinite duration; substantially impedes his or her ability to live independently, and is of such a nature that the ability to live independently could be improved by more suitable housing conditions. m Copyright 2005 Nan McKay&Associates,Inc. Page 3-28 Adminplan 9/1/05 Unlimited copies may be made for internal use. People with the acquired immunodeficiency syndrome (AIDS) or any conditions arising from the etiologic agent for AIDS are not excluded from this definition. A person whose disability is based solely on any drug or alcohol dependence does not qualify as a person with disabilities for the purposes of this program. For purposes of reasonable accommodation and program accessibility for persons with disabilities, the term person with disabilities refers to an individual with handicaps. Individual with Handicaps [24 CFR 8.3] Individual with handicaps means any person who has a physical or mental impairment that substantially limits one or more major life activities; has a record of such an impairment; or is regarded as having such an impairment. The term does not include any individual who is an alcoholic or drug abuser whose current use of alcohol or drugs prevents the individual from participating in the program or activity in question, or whose participation, by reason of such current alcohol or drug abuse, would constitute a direct threat to property or the safety of others. As used in this definition,the phrase: (1) Physical or mental impairment includes: (a) Any physiological disorder or condition, cosmetic disfigurement, or anatomical loss affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive; digestive; genito-urinary; hemic and lymphatic; skin; and endocrine; or (b) Any mental or psychological disorder, such as mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities. The term physical or mental impairment includes, but is not limited to, such diseases and conditions as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental retardation, emotional illness, drug addiction and alcoholism. (2) Major life activities means functions such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning and working. (3) Has a record of such an impairment means has a history of, or has been misclassified as having, a mental or physical impairment that substantially limits one or more major life activities. (4) Is regarded as having an impairment means: (a) Has a physical or mental impairment that does not substantially limit one or more major life activities but that is treated by a recipient as constituting such a limitation; (b) Has a physical or mental impairment that substantially limits one or more major life activities only as a result of the attitudes of others toward such impairment; or (c) Has none of the impairments defined in paragraph (1) of this section but is treated by a recipient as having such an impairment. ®Copyright 2005 Nan McKay&Associates,Inc. Page 3-29 Adminplan 9/1/05 Unlimited copies may be made for internal use. Chapter 4 APPLICATIONS, WAITING LIST AND TENANT SELECTION INTRODUCTION When a family wishes to receive Section 8 HCV assistance, the family must submit an application that provides the PHA with the information needed to determine the family's eligibility. HUD requires the PHA to place all families that apply for assistance on a waiting list. When HCV assistance becomes available, the PHA must select families from the waiting list in accordance with HUD requirements and PHA policies as stated in the administrative plan and the annual plan. The PHA is required to adopt a clear approach to accepting applications, placing families on the waiting list, selecting families from the waiting list and must follow this approach consistently. The actual order in which families are selected from the waiting list can be affected if a family has certain characteristics designated by HUD or the PHA to receive preferential treatment. Funding earmarked exclusively for families with particular characteristics may also alter the order in which families are served. HUD regulations require that all families have an equal opportunity to apply for and receive housing assistance, and that the PHA affirmatively further fair housing goals in the administration of the program [24 CFR 982.53, HCV GB p. 4-1]. Adherence to the selection policies described in this chapter ensures that the PHA will be in compliance with all relevant fair housing requirements, as described in Chapter 2. This chapter describes HUD and PHA policies for taking applications, managing the waiting list and selecting families for HCV assistance. The policies outlined in this chapter are organized into three sections, as follows: Part I: The Application Process. This part provides an overview of the application process, and discusses how applicants can obtain and submit applications. It also specifies how the PHA will handle the applications it receives. Part II: Managing the Waiting List. This part presents the policies that govern how the PHA's waiting list is structured, when it is opened and closed, and how the public is notified of the opportunity to apply for assistance. It also discusses the process the PHA will use to keep the waiting list current. Part III: Selection for HCV Assistance. This part describes the policies that guide the PHA in selecting families for HCV assistance as such assistance becomes available. It also specifies how in-person interviews will be used to ensure that the PHA has the information needed to make a final eligibility determination. CD Copyright 2005 Nan McKay&Associates,Inc. Page 4-1 Adminplan 9/1/05 Unlimited copies may be made for internal use. Copyright 2005 Nan McKay&Associates,Inc. Page 4-2 Adminplan 9/1/05 Unlimited copies may be made for internal use. PART I: THE APPLICATION PROCESS 4-I.A. OVERVIEW This part describes the policies that guide the PHA's efforts to distribute and accept applications, and to make preliminary determinations of applicant family eligibility that affect placement of the family on the waiting list. This part also describes the PHA's obligation to ensure the accessibility of the application process to elderly persons, people with disabilities, and people with limited English proficiency (LEP). 4-I.B. APPLYING FOR ASSISTANCE [HCV GB, pp. 4-11 —4-16] Any family that wishes to receive HCV assistance must apply for admission to the program. HUD permits the PHA to determine the format and content of HCV applications, as well how such applications will be made available to interested families and how applications will be accepted by the PHA. PHA Policy Depending upon the length of time that applicants may need to wait to receive assistance, the PHA may use a one- or two-step application process. A one-step process will be used when it is expected that a family will be selected from the waiting list within 60 days of the date of application. At application, the family must provide all of the information necessary to establish family eligibility and level of assistance. A two-step process will be used when it is expected that a family will not be selected from the waiting list for at least 60 days from the date of application. Under the two-step application process, the PHA initially will require families to provide only the information needed to make an initial assessment of the family's eligibility, and to determine the family's placement on the waiting list. The family will be required to provide all of the information necessary to establish family eligibility and level of assistance when the family is selected from the waiting list. Families may obtain application forms from the PHA's office during normal business hours. Families may also request—by telephone or by mail—that a form be sent to the family via first class mail. Completed applications must be returned to the PHA by mail, or submitted in person during normal business hours. Applications must be complete in order to be accepted by the PHA for processing. If an application is incomplete, the PHA will notify the family of the additional information required. O Copyright 2005 Nan McKay&Associates,Inc. Page 4-3 Adminplan 9/1/05 Unlimited copies may be made for internal use. 4-I.C. ACCESSIBILITY OF THE APPLICATION PROCESS Elderly and Disabled Populations [24 CFR S and HCV GB, pp. 4-11 —4-13] The PHA must take a variety of steps to ensure that the application process is accessible to those people who might have difficulty complying with the normal, standard PHA application process. This could include people with disabilities, certain elderly individuals, as well as persons with limited English proficiency (LEP). The PHA must provide reasonable accommodation to the needs of individuals with disabilities. The application-taking facility and the application process must be fully accessible, or the PHA must provide an alternate approach that provides full access to the application process. Chapter 2 provides a full discussion of the PHA's policies related to providing reasonable accommodations for people with disabilities. Limited English Proficiency PHAs are required to take reasonable steps to ensure meaningful access to their programs and activities by persons with limited English proficiency [24 CFR 1]. Chapter 2 provides a full discussion on the PHA's policies related to ensuring access to people with limited English proficiency (LEP). ®Copyright 2005 Nan McKay&Associates,Inc. Page 4-4 Adminplan 9/1/05 Unlimited copies may be made for internal use. 4-I.D. PLACEMENT ON THE WAITING LIST The PHA must review each complete application received and make a preliminary assessment of the family's eligibility. The PHA must accept applications from families for whom the list is open unless there is good cause for not accepting the application (such as denial of assistance) for the grounds stated in the regulations [24 CFR 982.206(b)(2)]. Where the family is determined to be ineligible, the PHA must notify the family in writing [24 CFR 982.201(1)]. Where the family is not determined to be ineligible, the family will be placed on a waiting list of applicants. No applicant has a right or entitlement to be listed on the waiting list, or to any particular position on the waiting list [24 CFR 982.202(c)]. Ineligible for Placement on the Waiting List PHA Policy If the PHA can determine from the information provided that a family is ineligible, the family will not be placed on the waiting list. Where a family is determined to be ineligible, the PHA will send written notification of the ineligibility determination within 10 business days of receiving a complete application. The notice will specify the reasons for ineligibility, and will inform the family of its right to request an informal review and explain the process for doing so (see Chapter 16). Eligible for Placement on the Waiting List PHA Policy The PHA will send written notification of the preliminary eligibility determination within 10 business days of receiving a complete application. ^ Placement on the waiting`list does not indicate that the family is, in fact, eligible for assistance. A final determination of eligibility will be made when the family is selected from the waiting list. Applicants will be placed on the waiting list according to any preference(s) for which they qualify, and the date and time their complete application is received by the PHA. ®Copyright 2005 Nan McKay&Associates,Inc. Page 4-5 Adminplan 9/1/05 Unlimited copies may be made for internal use. ©Copyright 2005 Nan McKay&Associates,Inc. Page 4-6 Adminplan 9/1/05 Unlimited copies may be made for internal use. PART II: MANAGING THE WAITING LIST 4-II.A. OVERVIEW The PHA must have policies regarding various aspects of organizing and managing the waiting list of applicant families. This includes opening the list to new applicants, closing the list to new applicants, notifying the public of waiting list openings and closings, updating waiting list information, purging the list of families that are no longer interested in or eligible for assistance, as well as conducting outreach to ensure a sufficient number of applicants. In addition, HUD imposes requirements on how a PHA may structure its waiting list and how families must be treated if they apply for assistance from a PHA that administers more than one assisted housing program. 4-II.B. ORGANIZATION OF THE WAITING LIST [24 CFR 982.204 and 205] The PHA's HCV waiting list must be organized in such a manner to allow the PHA to accurately identify and select families for assistance in the proper order, according to the admissions policies described in this plan. The waiting list must contain the following information for each applicant listed: • Applicant name; • Family unit size; • Date and time of application; • Qualification for any local preference; • Racial or ethnic designation of the head of household. HUD requires the PHA to maintain a single waiting list for the HCV program unless it serves more than one county or municipality. Such PHAs are permitted, but not required, to maintain a separate waiting list for each county or municipality served. PHA Policy The PHA will maintain a separate waiting list for each of the following counties/municipalities within the PHA's jurisdiction: Weld County and the City of Greeley. HUD directs that a family that applies for assistance from the HCV program must be offered the opportunity to be placed on the waiting list for any public housing, project-based voucher or moderate rehabilitation program the PHA operates if 1)the other programs' waiting lists are open, and 2)the family is qualified for the other programs. HUD permits, but does not require, that PHAs maintain a single merged waiting list for their public housing, Section 8, and other subsidized housing programs. A family's decision to apply for, receive, or refuse other housing assistance must not affect the family's placement on the HCV waiting list, or any preferences for which the family may qualify. PHA Policy ©Copyright 2005 Nan McKay&Associates,Inc. Page 4-7 Adminplan 9/1/05 Unlimited copies may be made for internal use. The PHA will not merge the HCV waiting list with the waiting list for any other program the PHA operates. ®Copyright 2005 Nan McKay&Associates,Inc. Page 4-8 Adminplan 9/1/05 Unlimited copies may be made for internal use. 4-II.C. OPENING AND CLOSING THE WAITING LIST [24 CFR 982.206] Closing the Waiting List A PHA is permitted to close the waiting list if it has an adequate pool of families to use its available HCV assistance. Alternatively, the PHA may elect to continue to accept applications only from certain categories of families that meet particular preferences or funding criteria. PHA Policy The PHA may close the waiting list when the estimated waiting period for housing assistance for applicants on the list reaches 12 months for the most current applicants. Where the PHA has particular preferences or funding criteria that require a specific category of family, the PHA may elect to continue to accept applications from these applicants while closing the waiting list to others. Reopening the Waiting List If the waiting list has been closed, it cannot be reopened until the PHA publishes a notice in local newspapers of general circulation, minority media, and other suitable media outlets. The notice must comply with HUD fair housing requirements and must specify who may apply, and where and when applications will be received. PHA Policy The PHA will announce the reopening of the waiting list at least 10 business days prior to the date applications will first be accepted. If the list is only being reopened for certain categories of families, this information will be contained in the notice. The PHA will give public notice by publishing the relevant information in suitable media outlets including, but not limited to: A public notice and advertising in the Greeley Tribune ©Copyright 2005 Nan McKay&Associates,Inc. Page 4-9 Adminplan 9/1/05 Unlimited copies may be made for internal use. 4-ILD. FAMILY OUTREACH [HCV GB, pp. 4-2 to 4-4] The PHA must conduct outreach as necessary to ensure that the PHA has a sufficient number of applicants on the waiting list to use the I-ICY resources it has been allotted. Because HUD requires the PHA to serve a specified percentage of extremely low income families (see Chapter 4, Part III), the PHA may need to conduct special outreach to ensure that an adequate number of such families apply for assistance [HCV GB, p. 4-20 to 4-21]. PHA outreach efforts must comply with fair housing requirements. This includes: • Analyzing the housing market area and the populations currently being served to identify underserved populations • Ensuring that outreach efforts are targeted to media outlets that reach eligible populations that are underrepresented in the program • Avoiding outreach efforts that prefer or exclude people who are members of a protected class PHA outreach efforts must be designed to inform qualified families about the availability of assistance under the program. These efforts may include, as needed, any of the following activities: • Submitting press releases to local newspapers, including minority newspapers • Developing informational materials and flyers to distribute to other agencies • Providing application forms to other public and private agencies that serve the low income population • Developing partnerships with other organizations that serve similar populations, including agencies that provide services for persons with disabilities PHA Policy The PHA will monitor the characteristics of the population being served and the characteristics of the population as a whole in the PHA's jurisdiction. Targeted outreach efforts will be undertaken if a comparison suggests that certain populations are being underserved. ©Copyright 2005 Nan McKay&Associates,Inc. Page 4-10 Adminplan 9/1/05 Unlimited copies may be made for internal use. 4-II.E. REPORTING CHANGES IN FAMILY CIRCUMSTANCES PHA Policy While the family is on the waiting list, the family must immediately inform the PHA of changes in contact information, including current residence, mailing address, and phone number. The changes must be submitted in writing. 4-ILF. UPDATING THE WAITING LIST [24 CFR 982.204] HUD requires the PHA to establish policies to use when removing applicant names from the waiting list. Purging the Waiting List The decision to withdraw an applicant family that includes a person with disabilities from the waiting list is subject to reasonable accommodation. If the applicant did not respond to a PHA request for information or updates because of the family member's disability, the PHA must reinstate the applicant family to their former position on the waiting list [24 CFR 982.204(c)(2)]. PHA Policy The waiting list will be updated annually to ensure that all applicants and applicant information is current and timely. To update the waiting list, the PHA will send an update request via first class mail to each family on the waiting list to determine whether the family continues to be interested in, and to qualify for, the program. This update request will be sent to the last address that the PHA has on record for the family. The update request will provide a deadline by which the family must respond and will state that failure to respond will result in the • applicant's name being removed from the waiting list. The family's response must be in writing and may be delivered in person, by mail, or by fax. Responses should be postmarked or received by the PHA not later than 15 business days from the date of the PHA letter. If the family fails to respond within 15 business days, the family will be removed from the waiting list without further notice. If the notice is returned by the post office with no forwarding address, the applicant will be removed from the waiting list without further notice. If a family is removed from the waiting list for failure to respond, the Executive Director may reinstate the family if s/he determines the lack of response was due to PHA error, or to circumstances beyond the family's control. ©Copyright 2005 Nan McKay&Associates,Inc. Page 4-11 Adminplan 9/1/05 Unlimited copies may be made for internal use. Removal from the Waiting List PHA Policy If at any time an applicant family is on the waiting list, the PHA determines that the family is not eligible for assistance (see Chapter 3), the family will be removed from the waiting list. If a family is removed from the waiting list because the PHA has determined the family is not eligible for assistance, a notice will be sent to the family's address of record as well as to any alternate address provided on the initial application. The notice will state the reasons the family was removed from the waiting list and will inform the family how to request an informal review regarding the PHA's decision (see Chapter 16) [24 CFR 982.201(f)]. ®Copyright 2005 Nan McKay&Associates,Inc. Page 4-12 Adminplan 9/1/05 Unlimited copies may be made for internal use. m Copyright 2005 Nan McKay&Associates,Inc. Page 4-13 Adminplan 9/1/05 Unlimited copies may be made for internal use. PART III: SELECTION FOR HCV ASSISTANCE 4-III.A. OVERVIEW As vouchers become available, families on the waiting list must be selected for assistance in accordance with the policies described in this part. The order in which families receive assistance from the waiting list depends on the selection method chosen by the PHA and is impacted in part by any selection preferences that the family •qualifies for. The source of HCV funding also may affect the order in which families are selected from the waiting list. The PHA must maintain a clear record of all information required to verify that the family is selected from the waiting list according to the PHA's selection policies [24 CFR 982.204(b) and 982.207(e)]. 4-III.13. SELECTION AND HCV FUNDING SOURCES Special Admissions [24 CFR 982.203] HUD may award funding for specifically-named families living in specified types of units (e.g., a family that is displaced by demolition of public housing; a non-purchasing family residing in a HOPE 1 or 2 projects). In these cases, the PHA may admit families that are not on the waiting list, or without considering the family's position on the waiting list. The PHA must maintain records showing that such families were admitted with special program funding. Regular HCV Funding Regular HCV funding may be used to assist any eligible family on the waiting list. Families are selected from the waiting list according to the policies provided in Section 4-III.C. ®Copyright 2005 Nan McKay&Associates,Inc. Page 4-14 Adminplan 9/1/05 Unlimited copies may be made for internal use. 4-III.C. SELECTION METHOD PHAs must describe the method for selecting applicant families from the waiting list, including the system of admission preferences that the PHA will use [24 CFR 982.202(d)]. Local Preferences [24 CFR 982.207; HCV p. 4-16] PHAs are permitted to establish local preferences, and to give priority to serving families that meet those criteria. PHA Policy Local preferences will be used to select families from the waiting list. Each preference will receive an allocation of points. The more preference points an applicant has, the higher the applicant's place on the waiting list. Each preference is assigned a point value. The points are cumulative. Flood, fire, Eminent Domain displacement= 10 points Condemnation= 10 points Residency in City of Greeley= 6 points for Greeley Section 8 list. Residency in Weld County except City of Greeley= 6 points on Weld County Section 8 list. Disabled/Elderly= 7 points. Domestic Violence = 5 points. Homeless Case Management= 5 points Among applicants with equal preference status, the waiting list will be organized by date and time. The PHA will offer a preference to any family that has been terminated from its HCV program due to insufficient program funding. Income Targeting Requirement [24 CFR 982.201(b)(2)] HUD requires that extremely low-income (ELI) families make up at least 75% of the families admitted to the HCV program during the PHA's fiscal year. ELI families are those with annual incomes at or below 30% of the area median income. To ensure this requirement is met, a PHA may skip non-ELI families on the waiting list in order to select an ELI family. Low income families admitted to the program that are "continuously assisted" under the 1937 Housing Act [24 CFR 982.4(b)], as well as low-income or moderate-income families admitted to the program that are displaced as a result of the prepayment of the mortgage or voluntary termination of an insurance contract on eligible low-income housing, are not counted for income targeting purposes [24 CFR 982.201(b)(2)(v)]. ©Copyright 2005 Nan McKay&Associates,Inc. Page 4-15 Adminplan 9/1/05 Unlimited copies may be made for internal use. PHA Policy The PHA will monitor progress in meeting the ELI requirement throughout the fiscal year. Extremely low-income families will be selected ahead of other eligible families on an as-needed basis to ensure the income targeting requirement is met. • ®Copyright 2005 Nan McKay&Associates,Inc. Page 4-16 Adminplan 9/1/05 Unlimited copies may be made for internal use. Order of Selection The PHA system of preferences may select families either according to the date and time of application, or by a random selection process [24 CFR 982.207(c)]. When selecting families from the waiting list PHAs are required to use targeted funding to assist only those families who meet the specified criteria, and PHAs are not permitted to skip down the waiting list to a family that it can afford to subsidize when there are not sufficient funds to subsidize the family at the top of the waiting list [24 CFR 982.204(d) and (e)]. PHA Policy Families will be selected from the waiting list based on the selection preference(s) for which they qualify, and in accordance with the PHA's hierarchy of preferences, if applicable. Within each preference category, families will be selected on a first-come, first-served basis according to the date and time their complete application is received by the PHA. ©Copyright 2005 Nan McKay&Associates,Inc. Page 4-17 Adminplan 9/1/05 Unlimited copies may be made for internal use. 4-III.D.NOTIFICATION OF SELECTION When a family has been selected from the waiting list, the PHA must notify the family. PHA Policy The PHA will notify the family by first class mail when it is selected from the waiting list. The notice will inform the family of the following: Date, time, and location of the scheduled application interview, including any procedures for rescheduling the interview Who is required to attend the interview Documents that must be provided at the interview to document the legal identity of household members, including information about what constitutes acceptable documentation Other documents and information that should be brought to the interview If a notification letter is returned to the PHA the family will be removed from the waiting list. A notice of denial (see Chapter 3) will be sent to the family's address of record, as well as to any known alternate address. 4-III.E. THE APPLICATION INTERVIEW HUD recommends that the PHA obtain the information and documentation needed to make an eligibility determination though a private interview [HCV GB, pg. 4-16]. Being invited to attend an interview does not constitute admission to the program. r-. Reasonable accommodation must be made for persons with disabilities who are unable to attend an interview due to their disability. PHA Policy Families selected from the waiting list are required to participate in an eligibility interview. The head of household and the spouse/cohead will be strongly encouraged to attend the interview together. However, either the head of household or the spouse/cohead may attend the interview on behalf of the family. Verification of information pertaining to adult members of the household not present at the interview will not begin until signed release forms are returned to the PHA. The interview will be conducted only if the head of household or spouse/cohead provides appropriate documentation of legal identity. (Chapter 7 provides a discussion of proper documentation of legal identity). If the family representative does not provide the required documentation, the appointment may be rescheduled when the proper documents have been obtained. ®Copyright 2005 Nan McKay&Associates,Inc. Page 4-18 Adminplan 9/1/05 Unlimited copies may be made for internal use. The family must provide the information necessary to establish the family's eligibility and determine the appropriate level of assistance, as well as completing required forms, providing required signatures, and submitting required documentation. If any materials are missing,the PHA will provide the family with a written list of items that must be submitted. Any required documents or information that the family is unable to provide at the interview must be provided within 10 business days of the interview(Chapter 7 provides details about longer submission deadlines for particular items, including documentation of Social Security numbers and eligible noncitizen status). If the family is unable to obtain the information or materials within the required time frame, the family may request an extension. If the required documents and information are not provided within the required time frame (plus any extensions),the family will be sent a notice of denial (See Chapter 3). An advocate, interpreter, or other assistant may assist the family with the application and the interview process. Interviews will be conducted in English. For limited English proficient(LEP) applicants, the PHA will provide translation services in accordance with the PHA's LEP plan. If the family is unable to attend a scheduled interview,the family should contact the PI-IA in advance of the interview to schedule a new appointment. Applicants who fail to attend two scheduled interviews without PHA approval will be denied assistance based on the family's failure to supply information needed to determine eligibility. A notice of denial will be issued in accordance with policies contained in Chapter 3. ®Copyright 2005 Nan McKay&Associates,Inc. Page 4-19 Adminplan 9/1/05 Unlimited copies may be made for internal use. 4-III.F. COMPLETING THE APPLICATION PROCESS The PHA must verify all information provided by the family (see Chapter 7). Based on verified information, the PHA must make a final determination of eligibility (see Chapter 3) and must confirm that the family qualified for any special admission, targeted admission, or selection preference that affected the order in which the family was selected from the waiting list. PHA Policy If the PHA determines that the family is ineligible, the PHA will send written notification of the ineligibility determination within 10 business days of the determination. The notice will specify the reasons for ineligibility, and will inform the family of its right to request an informal review(Chapter 16). If a family fails to qualify for any criteria that affected the order in which it was selected from the waiting list(e.g. targeted funding, extremely low-income), the family will be returned to the waiting list, taking into account any change in the family's preference status. The PHA will notify the family in writing that it has been returned to the waiting list, and will specify the reasons for it. If the PHA determines that the family is eligible to receive assistance, the PHA will invite the family to attend a briefing in accordance with the policies in Chapter 5. • ©Copyright 2005 Nan McKay&Associates,Inc. Page 4-20 Adminplan 9/1/05 Unlimited copies may be made for internal use. Chapter 5 BRIEFINGS AND VOUCHER ISSUANCE INTRODUCTION This chapter explains the briefing and voucher issuance process. When a family is determined to be eligible for the Housing Choice Voucher (HCV) program,the PHA must ensure that the family fully understands the way the program operates and the family's obligations under the program. This is accomplished through both an oral briefing and provision of a briefing packet containing written documentation of information the family needs to know. Once the family is fully informed of the program's requirements, the PHA issues the family a voucher. The voucher includes the unit size the family qualifies for based on the PHA's subsidy standards, as well as the dates of issuance and expiration of the voucher. The voucher is the document that permits the family to begin its search for a unit, and limits the amount of time the family has to successfully locate an acceptable unit. This chapter describes HUD regulations and PHA policies related to these topics in two parts: Part I: Briefings and Family Obligations. This part details the program's requirements for briefing families orally, and for providing written materials describing the program and its requirements. It includes a particular focus on the family's obligations under the program. Part II: Subsidy Standards and Voucher Issuance. This part discusses the PHA's standards for determining how many bedrooms a family of a given composition qualifies for, which in turn affects the amount of subsidy the family can receive. It also discusses the policies that dictate how vouchers are issued, and how long families have to locate a unit. PART I: BRIEFINGS AND FAMILY OBLIGATIONS 5-I.A. OVERVIEW HUD regulations require the PHA to conduct mandatory briefings for applicant families. The briefing provides a broad description of owner and family responsibilities, explains the PHA's procedures, and includes instructions on how to lease a unit. This part describes how oral briefings will be conducted, specifies what written information will be provided to families, and lists the family's obligations under the program. Copyright 2005 Nan McKay&Associates,Inc. Page 5-1 Adminplan 9/1/05 Unlimited copies may be made for internal use. 5-I.B. BRIEFING [24 CFR 982.301] The PHA must give the family an oral briefing and provide the family with a briefing packet containing written information about the program. Families may be briefed individually or in groups. At the briefing,the PHA must ensure effective communication in accordance with Section 504 requirements (Section 504 of the Rehabilitation Act of 1973), and ensure that the briefing site is accessible to individuals with disabilities. For a more thorough discussion of accessibility requirements, refer to Chapter 2. PHA Policy Briefings will be conducted in group meetings. Generally, the head of household is required to attend the briefing. If the head of household is unable to attend,the PHA may approve another adult family member to attend the briefing. Families that attend group briefings and still need individual assistance will be referred to an appropriate PHA staff person. Briefings will be conducted in English. For limited English proficient(LEP) applicants, the PHA will provide translation services in accordance with the PHA's LEP plan (See Chapter 2). Notification and Attendance PHA Policy Families will be notified of their eligibility for assistance at the time they are invited to attend a briefing. The notice will identify who is required to attend the briefing, as well as the date and time of the scheduled briefing. If the notice is returned by the post office with no forwarding address, a notice of denial (see Chapter 3) will be sent to the family's address of record, as well as to any alternate address provided on the initial application. Applicants who fail to attend a scheduled briefing will automatically be scheduled for another briefing. Applicants who fail to attend two scheduled briefings, without PHA approval, will be denied assistance (see Chapter 3). ©Copyright 2005 Nan McKay&Associates,Inc. Page 5-2 Adminplan 9/1/05 Unlimited copies may be made for internal use. Oral Briefing [24 CFR 982.301(a)] Each briefing must provide information on the following subjects: • How the Housing Choice Voucher program works; • Family and owner responsibilities; • Where the family can lease a unit, including renting a unit inside or outside the PHA's jurisdiction; • For families eligible under portability, an explanation of portability. The PHA cannot discourage eligible families from moving under portability; • For families living in high-poverty census tracts, an explanation of the advantages of moving to areas outside of high-poverty concentrations; and • For families receiving welfare-to-work vouchers, a description of any local obligations of a welfare-to-work family and an explanation that failure to meet the obligations is grounds for denial of admission or termination of assistance. PHA Policy When PHA-owned units are available for lease, the PHA will inform the family during the oral briefing that the family has the right to select any eligible unit available for lease, and is not obligated to choose a PHA-owned unit. r ®Copyright 2005 Nan McKay&Associates,Inc. Page 5-3 Adminplan 9/1/05 Unlimited copies may be made for internal use. Briefing Packet [24 CFR 982.301(b)] Documents and information provided in the briefing packet must include the following: • The term of the voucher, and the PHA's policies on any extensions or suspensions of the teen. If the PHA allows extensions, the packet must explain how the family can request an extension. • A description of the method used to calculate the housing assistance payment for a family, including how the PHA determines the payment standard for a family, how the PHA determines total tenant payment for a family, and information on the payment standard and utility allowance schedule. • An explanation of how the PHA determines the maximum allowable rent for an assisted unit. • Where the family may lease a unit. For a family that qualifies to lease a unit outside the PHA jurisdiction under portability procedures, the information must include an explanation of how portability works. • The HUD-required tenancy addendum, which must be included in the lease. • The form the family must use to request approval of tenancy, and a description of the procedure for requesting approval for a tenancy. • A statement of the PHA policy on providing information about families to prospective owners. • The PHA subsidy standards including when and how exceptions are made. • The HUD brochure on how to select a unit. • The HUD pamphlet on lead-based paint entitled Protect Your Family from Lead in Your Home. • Information on federal, state and local equal opportunity laws and a copy of the housing discrimination complaint form. • A list of landlords or other parties willing to lease to assisted families or help families find units, especially outside areas of poverty or minority concentration. • Notice that if the family includes a person with disabilities,the family may request a list of available accessible units known to the PHA. • The family obligations under the program, including any obligations of a welfare-to-work family. • The grounds on which the PHA may terminate assistance for a participant family because of family action or failure to act. • PHA informal hearing procedures including when the PHA is required to offer a participant family the opportunity for an informal hearing, and how to request the hearing. ®Copyright 2005 Nan McKay&Associates,Inc. Page 5-4 Adminplan 9/1/05 Unlimited copies may be made for internal use. If the PHA is located in a metropolitan FMR area, the following additional information must be included in the briefing packet in order to receive full points under SEMAP Indicator 7, Expanding Housing Opportunities [24 CFR 985.3(g)]. • Maps showing areas with housing opportunities outside areas of poverty or minority concentration, both within its jurisdiction and its neighboring jurisdiction. • Information about the characteristics of these areas including job opportunities, schools, transportation and other services. • An explanation of how portability works, including a list of portability contact persons for neighboring PHAs including names, addresses, and telephone numbers. 5-I.C. FAMILY OBLIGATIONS Obligations of the family are described in the housing choice voucher(HCV) regulations and on the voucher itself. These obligations include responsibilities the family is required to fulfill, as well as prohibited actions. The PHA must inform families of these obligations during the oral briefing, and the same information must be included in the briefing packet. When the family's unit is approved and the HAP contract is executed,the family must meet those obligations in order to continue participating in the program. Violation of any family obligation may result in termination of assistance, as described in Chapter 12. Time Frames for Reporting Changes Required By Family Obligations PHA Policy Unless otherwise noted below, when family obligations require the family to respond to a request or notify the PHA of a change, notifying the PHA of the request or change within 10 business days is considered prompt notice. When a family is required to provide notice to the PHA, the notice must be in writing. Family Obligations [24 CFR 982.551] Following is a listing of a participant family's obligations under the HCV program: • The family must supply any information that the PHA or HUD determines to be necessary, including submission of required evidence of citizenship or eligible immigration status. • The family must supply any information requested by the PI-IA or HUD for use in a regularly scheduled reexamination or interim reexamination of family income and composition. • The family must disclose and verify social security numbers and sign and submit consent forms for obtaining information. • Any information supplied by the family must be true and complete. • The family is responsible for any Housing Quality Standards (HQS)breach by the family caused by failure to pay tenant-provided utilities or appliances, or damages to the dwelling unit or premises beyond normal wear and tear caused by any member of the household or guest. PHA Policy m Copyright 2005 Nan McKay&Associates,Inc. Page 5-5 Adminplan 9/1/05 Unlimited copies may be made for internal use. Damages beyond normal wear and tear will be considered to be damages which could be assessed against the security deposit. • The family must allow the PHA to inspect the unit at reasonable times and after reasonable notice, as described in Chapter 8 of this plan. ©Copyright 2005 Nan McKay&Associates,Inc. Page 5-6 Adminplan 9/1/05 Unlimited copies may be made for internal use. • The family must not commit any serious or repeated violation of the lease. PHA Policy The PHA will determine if a family has committed serious or repeated violations of the lease based on available evidence, including but not limited to, a court-ordered eviction, or an owner's notice to evict. Serious and repeated lease violations will include,but not be limited to, nonpayment of rent, disturbance of neighbors, destruction of property, or living or housekeeping habits that cause damage to the unit or premises and criminal activity. Generally,the criteria to be used is whether the reason for the eviction was through no fault of the tenant or guests. • The family must notify the PHA and the owner before moving out of the unit or terminating the lease. PHA Policy The written notice to the PHA will be a copy of the 30 day notice to the landlord which has been signed by the landlord to acknowledge receipt. • The family must promptly give the PHA a copy of any owner eviction notice. • The family must use the assisted unit for residence by the family. The unit must be the family's only residence. • The composition of the assisted family residing in the unit must be approved by the PHA. The family must promptly notify the PHA in writing of the birth, adoption, or court-awarded custody of a child. The family must request PHA approval to add any other family member as an occupant of the unit. PHA Policy • The request to add a family member must be submitted in writing and approved prior to the person moving into the unit. The PHA will determine eligibility of the new member in accordance with the policies in Chapter 3. • The family must promptly notify the PHA in writing if any family member no longer lives in the unit. co Copyright 2005 Nan McKay&Associates,Inc. Page 5-7 Adminplan 9/1/05 Unlimited copies may be made for internal use. • If the PHA has given approval, a foster child or a live-in aide may reside in the unit. The PHA has the discretion to adopt reasonable policies concerning residency by a foster child or --- a live-in aide, and to define when PHA consent may be given or denied. For policies related to the request and approval/disapproval of foster children, foster adults, and live-in aides, see Chapter 3 (Sections I.K and I.M), and Chapter 11 (Section II.B). • The family must not sublease the unit, assign the lease, or transfer the unit. PHA Policy Subleasing includes receiving payment to cover rent and utility costs by a person living in the unit who is not listed as a family member. • The family must supply any information requested by the PHA to verify that the family is living in the unit or information related to family absence from the unit. ®Copyright 2005 Nan McKay&Associates,Inc. Page 5-8 Adminplan 9/1/05 Unlimited copies may be made for internal use. • The family must promptly notify the PHA when the family is absent from the unit. PHA Policy Notice is required under this provision only when all family members will be absent from the unit for an extended period. An extended period is defined as any period greater than 30 calendar days. Written notice must be provided to the PHA at the start of the extended absence. • The family must pay utility bills and provide and maintain any appliances that the owner is not required to provide under the lease [Form HUD-52646, Voucher]. • The family must not own or have any interest in the unit, (other than in a cooperative and owners of a manufactured home leasing a manufactured home space). • Family members must not commit fraud, bribery, or any other corrupt or criminal act in connection with the program. (See Chapter 14, Program Integrity for additional information). • Family members must not engage in drug-related criminal activity or violent criminal activity or other criminal activity that threatens the health, safety or right to peaceful enjoyment of other residents and persons residing in the immediate vicinity of the premises. See Chapter 12 for HUD and PHA policies related to drug-related and violent criminal activity. • Members of the household must not engage in abuse of alcohol in a way that threatens the health, safety or right to peaceful enjoyment of the other residents and persons residing in the immediate vicinity of the premises. See Chapter 12 for a discussion of HUD and PHA policies related to alcohol abuse. • An assisted family or member of the family must not receive HCV program assistance while receiving another housing subsidy, for the same unit or a different unit under any other federal, state or local housing assistance program. • A family must not receive HCV program assistance while residing in a unit owned by a parent, child, grandparent, grandchild, sister or brother of any member of the family, unless the PHA has determined (and has notified the owner and the family of such determination) that approving rental of the unit, notwithstanding such relationship, would provide reasonable accommodation for a family member who is a person with disabilities. [Form HUD-52646, Voucher] ©Copyright 2005 Nan McKay&Associates,Inc. Page 5-9 Adminplan 9/1/05 Unlimited copies may be made for internal use. C Copyright 2005 Nan McKay&Associates,Inc. Page 5-10 Adminplan 9/1/05 Unlimited copies may be made for internal use. PART II: SUBSIDY STANDARDS AND VOUCHER ISSUANCE 5-II.A. OVERVIEW The PHA must establish subsidy standards that determine the number of bedrooms needed for families of different sizes and compositions. This part presents the policies that will be used to determine the family unit size (also known as the voucher size) a particular family should receive, and the policies that govern making exceptions to those standards. The PHA also must establish policies related to the issuance of the voucher,to the voucher term, and to any extensions or suspensions of that term. 5-II.B. DETERMINING FAMILY UNIT (VOUCHER) SIZE [24 CFR 982.402] For each family, the PHA determines the appropriate number of bedrooms under the PHA subsidy standards and enters the family unit size on the voucher that is issued to the family. The family unit size does not dictate the size of unit the family must actually lease, nor does it determine who within a household will share a bedroom/sleeping room. The following requirements apply when the PHA determines family unit size: • The subsidy standards must provide for the smallest number of bedrooms needed to house a family without overcrowding. • The subsidy standards must be consistent with space requirements under the housing quality standards. • The subsidy standards must be applied consistently for all families of like size and composition. • A child who is temporarily away from the home because of placement in foster care is considered a member of the family in determining the family unit size. • A family that consists of a pregnant woman(with no other persons) must be treated as a two- person family. • Any live-in aide (approved by the PHA to reside in the unit to care for a family member who is disabled or is at least 50 years of age) must be counted in determining the family unit size; ©Copyright 2005 Nan McKay&Associates,Inc. Page 5-11 Adminplan 9/1/05 Unlimited copies may be made for internal use. • Unless a live-in-aide resides with a family, the family unit size for any family consisting of a single person must be either a zero- or one-bedroom unit, as determined under the PHA subsidy standards. PHA Policy The PHA will assign one bedroom for each two persons within the household, except in the following circumstances: Persons of the opposite sex (other than spouses, and children under age 5) will be allocated separate bedrooms. • Live-in aides will be allocated a separate bedroom. Single person families will be allocated one bedroom. Persons of a different generation will not be required to share a room. The PHA will reference the following chart in determining the appropriate voucher size for a family: Voucher Size Persons in Household (Minimum—Maximum) 1 Bedroom 1-2 2 Bedrooms 2-4 3 Bedrooms 3-6 4 Bedrooms 4-8 5 Bedrooms 6-10 ©Copyright 2005 Nan McKay&Associates,Inc. Page 5-12 Adminplan 9/1/05 Unlimited copies may be made for internal use. 5-II.C. EXCEPTIONS TO SUBSIDY STANDARDS In determining family unit size for a particular family,the PHA may grant an exception to its established subsidy standards if the PHA determines that the exception is justified by the age, sex, health, handicap, or relationship of family members or other personal circumstances [24 CFR 982.402(b)(8)]. Reasons may include, but are not limited to: • A need for an additional bedroom for medical equipment • A need for a separate bedroom for reasons related to a family member's disability, medical or health condition For a single person who is not elderly, disabled, or a remaining family member, an exception cannot override the regulatory limit of a zero or one bedroom [24 CFR 982.402(b)(8)]. PHA Policy The PHA will consider granting an exception for any of the reasons specified in the regulation: the age, sex, health, handicap, or relationship of family members or other personal circumstances. The family must request any exception to the subsidy standards in writing. The request must explain the need or justification for a larger family unit size, and must include appropriate documentation. Requests based on health-related reasons must be verified by a knowledgeable professional source, unless the disability and the disability—related request for accommodation is readily apparent or otherwise known. The PHA will notify the family of its determination within 10 business days of receiving the family's request. If a participant family's request is denied,the notice will inform the family of their right to request an informal hearing. ©Copyright 2005 Nan McKay&Associates,Inc. Page 5-13 Adminplan 9/1/05 Unlimited copies may be made for internal use. 5-II.D. VOUCHER ISSUANCE AND RECESCISSIONS [24 CFR 982.302] When a family is selected from the waiting list (or as a special admission as described in Chapter 4), or when a participant family wants to move to another unit, the PHA issues a Housing Choice Voucher, form HUD-52646. This chapter deals only with voucher issuance for applicants. For voucher issuance associated with moves of program participants, please refer to Chapter 10. The voucher is the family's authorization to search for housing. It specifies the unit size for which the family qualifies, and includes both the date of voucher issuance and date of expiration. It contains a brief description of how the program works and explains the family obligations under the program. The voucher is evidence that the PHA has determined the family to be eligible for the program, and that the PHA expects to have money available to subsidize the family if the family finds an approvable unit. However, the PHA does not have any liability to any party by the issuance of the voucher, and the voucher does not give the family any right to participate in the PHA's housing choice voucher program [Voucher, form HUD-52646] A voucher can be issued to an applicant family only after the PHA has determined that the family is eligible for the program based on information received within the 60 days prior to issuance [24 CFR 982.201(e)] and after the family has attended an oral briefing [HCV 8-1]. PHA Policy Vouchers will be issued to eligible applicants immediately following the mandatory briefing. The PHA should have sufficient funds to house an applicant before issuing a voucher. If funds are insufficient to house the family at the top of the waiting list,the PHA must wait until it has adequate funds before it calls another family from the list [HCV GB p. 8-10]. PHA Policy Prior to issuing any vouchers,the PHA will determine whether it has sufficient funding in accordance with the policies in Part VIII of Chapter 16. If the PHA determines that there is insufficient funding after a voucher has been issued, the PHA may rescind the voucher and place the affected family back on the waiting list. ©Copyright 2005 Nan McKay&Associates,Inc. Page 5-14 Adminplan 9/1/05 Unlimited copies may be made for internal use. 5-II.E. VOUCHER TERM, EXTENSIONS, AND SUSPENSIONS Voucher Term [24 CFR 982.303] The initial term of a voucher must be at least 60 calendar days. The initial term must be stated on the voucher [24 CFR 982.303(a)]. PHA Policy The initial voucher term will be 60 calendar days. The family must submit a Request for Tenancy Approval and proposed lease within the 60-day period unless the PHA grants an extension. Extensions of Voucher Term [24 CFR 982.303(b)] The PHA has the authority to grant extensions of search time, to specify the length of an extension, and to determine the circumstances under which extensions will be granted. There is no limit on the number of extensions that the PHA can approve. Discretionary policies related to extension and expiration of search time must be described in the PHA's administrative plan [24 CFR 982.54]. PHAs must approve additional search time if needed as a reasonable accommodation to make the program accessible to and usable by a person with disabilities. The extension period must be reasonable for the purpose. ®Copyright 2005 Nan McKay&Associates,Inc. Page 5-15 Adminplan 9/1/05 Unlimited copies may be made for internal use. The family must be notified in writing of the PHA's decision to approve or deny an extension. The PHA's decision to deny a request for an extension of the voucher term is not subject to informal review [24 CFR 982.554(c)(4)]. PHA Policy The PHA will approve additional extensions only in the following circumstances: It is necessary as a reasonable accommodation for a person with disabilities. It is necessary due to reasons beyond the family's control, as determined by the PHA. Following is a list of extenuating circumstances that the PHA may consider in making its decision. The presence of these circumstances does not guarantee that an extension will be granted: Serious illness or death in the family Other family emergency Obstacles due to employment Whether the family has already submitted requests for tenancy approval that were not approved by the PHA Whether family size or other special requirements make finding a unit difficult Any request for an additional extension must include the reason(s) an additional extension is necessary. The PHA may require the family to provide documentation to support the request. All requests for extensions to the voucher term must be made in writing and submitted to the PHA prior to the expiration date of the voucher(or extended term of the voucher). The PHA will decide whether to approve or deny an extension request within 10 business days of the date the request is received, and will immediately provide the family written notice of its decision. ©Copyright 2005 Nan McKay&Associates,Inc. Page 5-16 Adminplan 9/1/05 Unlimited copies may be made for internal use. Suspensions of Voucher Term [24 CFR 982.303(c)] At its discretion, a PHA may adopt a policy to suspend the housing choice voucher term if the family has submitted a Request for Tenancy Approval (RTA) during the voucher term. "Suspension" means stopping the clock on a family's voucher term from the time a family submits the RTA until the time the PHA approves or denies the request [24 CFR 982.4]. The PHA's determination not to suspend a voucher term is not subject to informal review [24 CFR 982.554(c)(4)]. PHA Policy When a Request for Tenancy Approval and proposed lease is received by the PHA, the term of the voucher will not be suspended while the PHA processes the request. Expiration of Voucher Term Once a family's housing choice voucher term (including any extensions) expires, the family is no longer eligible to search for housing under the program. If the family still wishes to receive assistance, the PHA may require that the family reapply, or may place the family on the waiting list with a new application date but without requiring reapplication. Such a family does not become ineligible for the program on the grounds that it was unable to locate a unit before the voucher expired [HCV GB p. 8-13]. PHA Policy If an applicant family's voucher term or extension expires before the family has submitted a Request for Tenancy Approval (RTA),the PHA will require the family to reapply for assistance. If an RTA that was submitted prior to the expiration date of the voucher is subsequently disapproved by the PHA (after the voucher term has expired), the family will be required to reapply for assistance. Within 10 business days after the expiration of the voucher term or any extension, the PHA will notify the family in writing that the voucher term has expired and that the family must reapply in order to be placed on the waiting list. ®Copyright 2005 Nan McKay&Associates,Inc. Page 5-17 Adminplan 9/1/05 Unlimited copies may be made for internal use. Voucher Rescissions If due to budgetary constrains the PHA must rescind vouchers that have already been issued to families, the PHA will do so according to the instructions under each of the categories below. The PHA will first rescind vouchers that fall under Category 1. Vouchers in Category 2 will only be rescinded after all vouchers under Category 1 have been rescinded. Category 1: Vouchers for which a Request for Tenancy Approval (RTA) and proposed lease have not been submitted to the PHA. Vouchers will be rescinded in order of the date and time they were issued, starting with the most recently submitted requests. Category 2: Vouchers for which a Request for Tenancy Approval and proposed lease have been submitted to the PHA. Vouchers will be rescinded in order of the date and time the RTA was submitted to the PHA, starting with the most recently submitted request. Families who have had their vouchers rescinded will be notified in writing and will have their files placed into a pending hold file. When funds become available their vouchers will be reissued. ®Copyright 2005 Nan McKay&Associates,Inc. Page 5-18 Adminplan 9/1/05 Unlimited copies may be made for internal use. Chapter 6 INCOME AND SUBSIDY DETERMINATIONS [24 CFR Part 5, Subparts E and F; 24 CFR 982] INTRODUCTION A family's income determines eligibility for assistance and is also used to calculate the family's payment and the PHA's subsidy. The PHA will use the policies and methods described in this chapter to ensure that only eligible families receive assistance and that no family pays more or less than its obligation under the regulations. This chapter describes HUD regulations and PHA policies related to these topics in three parts as follows: • Part I: Annual Income. HUD regulations specify the sources of income to include and exclude to arrive at a family's annual income. These requirements and PHA policies for calculating annual income are found in Part I. • Part II: Adjusted Income. Once annual income has been established HUD regulations require the PHA to subtract from annual income any of five mandatory deductions for which a family qualifies. These requirements and PHA policies for calculating adjusted income are found in Part II. • Part III: Calculating Family Share and PHA Subsidy. This part describes the statutory formula for calculating total tenant payment (TTP), the use of utility allowances, and the methodology for determining PHA subsidy and required family payment. F ®Copyright 2005 Nan McKay&Associates,Inc. Unlimited copies may be made for internal use. Page 6-1 Adminplan 9/1/05 PART I: ANNUAL INCOME 6-LA. OVERVIEW The general regulatory definition of annual income shown below is from 24 CFR 5.609. 5.609 Annual income. (a) Annual income means all amounts, monetary or not, which: (1) Go to, or on behalf of, the family head or spouse (even if temporarily absent) or to any other family member; or (2) Are anticipated to be received from a source outside the family during the 12-month period following admission or annual reexamination effective date; and (3) Which are not specifically excluded in paragraph [5.609(c)]. (4) Annual income also means amounts derived (during the 12-month period) from assets to which any member of the family has access. In addition to this general definition, HUD regulations establish policies for treating specific types of income and assets. The full texts of those portions of the regulations are provided in exhibits at the end of this chapter as follows: • Annual Income Inclusions (Exhibit 6-1) • Annual Income Exclusions (Exhibit 6-2) • Treatment of Family Assets (Exhibit 6-3) • Earned Income Disallowance for Persons with Disabilities (Exhibit 6-4) • The Effect of Welfare Benefit Reduction(Exhibit 6-5) Sections 6-LB and 6-I.C discuss general requirements and methods for calculating annual income. The rest of this section describes how each source of income is treated for the purposes of determining annual income. HUD regulations present income inclusions and exclusions separately [24 CFR 5.609(b) and 24 CFR 5.609(c)]. In this plan, however, the discussions of income inclusions and exclusions are integrated by topic (e.g., all policies affecting earned income are discussed together in section 6-I.D). Verification requirements for annual income are discussed in Chapter 7. ®Copyright 2005 Nan McKay&Associates,Inc. Unlimited copies may be made for internal use. Page 6-2 Adminplan 9/1/05 6-I.B. HOUSEHOLD COMPOSITION AND INCOME Income received by all family members must be counted unless specifically excluded by the regulations. It is the responsibility of the head of household to report changes in family composition. The rules on which sources of income are counted vary somewhat by family member. The chart below summarizes how family composition affects income determinations. Summary of Income Included and Excluded by Person Live-in aides Income from all sources is excluded [24 CFR 5.609(c)(5)]. Foster child or foster adult Income from all sources is excluded (24 CFR 5.609(c)(2)]. Head, spouse, or cohead All sources of income not specifically excluded by the Other adult family members regulations are included. Children under 18 years of age Employment income is excluded [24 CFR 5.609(c)(l)]. All other sources of income, except those specifically excluded by the regulations, are included. Full-time students 18 years of Employment income above $480/year is excluded [24 CFR age or older (not head, spouse, 5.609(c)(11)]. or cohead) All other sources of income, except those specifically excluded by the regulations, are included. r ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-3 Adminplan 9/1/05 Unlimited copies may be made for internal use. Temporarily Absent Family Members The income of family members approved to live in the unit will be counted, even if the family member is temporarily absent from the unit [HCV GB, p. 5-18]. PHA Policy Generally an individual who is or is expected to be absent from the assisted unit for 90 consecutive days or less is considered temporarily absent and continues to be considered a family member. Generally an individual who is or is expected to be absent from the assisted unit for more than 90 consecutive days is considered permanently absent and no longer a family member. Exceptions to this general policy are discussed below. Absent Students PHA Policv When someone who has been considered a family member attends school away from home, the person will continue to be considered a family member unless information becomes available to the PHA indicating that the student has established a separate household or the family declares that the student has established a separate household. Absences Due to Placement in Foster Care Children temporarily absent from the home as a result of placement in foster care are considered members of the family [24 CFR 5.403]. PHA Policv If a child has been placed in foster care, the PHA will verify with the appropriate agency whether and when the child is expected to be returned to the home. Unless the agency confirms that the child has been permanently removed from the home, the child will be counted as a family member. Family Members Permanently Confined for Medical Reasons If a family member is confined to a nursing home or hospital on a permanent basis, that person is no longer considered a family member and the income of that person is not counted [HCV GB, p. 5-22]. PHA Policv The PHA will request verification from a responsible medical professional and will use this determination. If the responsible medical professional cannot provide a determination, the person generally will be considered temporarily absent. The family may present evidence that the family member is confined on a permanent basis and request that the person not be considered a family member. When an individual who has been counted as a family member is determined permanently absent, the family is eligible for the medical expense deduction only if the remaining head, spouse, or cohead qualifies as an elderly person or a person with disabilities. .-1 ®Copyright 2005 Nan McKay&Associates,Inc. Unlimited copies may be made for internal use. Page 6-4 Adminplan 9/1/05 Joint Custody of Dependents �.. PHA Policy Dependents that are subject to a joint custody arrangement will be considered a member of the family, if they live with the applicant or participant family 50 percent or more of the time. When more than one applicant or participant family is claiming the same dependents as family members, the family with primary custody at the time of the initial examination or reexamination will be able to claim the dependents. If there is a dispute about which family should claim them, the PHA will make the determination based on available documents such as court orders, or an IRS return showing which family has claimed the child for income tax purposes. • ©Copyright 2005 Nan McKay&Associates,Inc. Page 6-5 Adminplan 9/1/05 Unlimited copies may be made for internal use. Caretakers for a Child PHA Policy If neither a parent nor a designated guardian remains in a household receiving HCV assistance,the PHA will take the following actions. (1) If a responsible agency has determined that another adult is to be brought into the assisted unit to care for a child for an indefinite period, the designated caretaker will not be considered a family member until a determination of custody or legal guardianship is made. (2) If a caretaker has assumed responsibility for a child without the involvement of a responsible agency or formal assignment of custody or legal guardianship,the caretaker will be treated as a visitor for 90 days. After the 90 days has elapsed, the caretaker will be considered a family member unless information is provided that would confirm that the caretaker's role is temporary. In such cases the PHA will extend the caretaker's status as an eligible visitor. (3) At any time that custody or guardianship legally has been awarded to a caretaker, the housing choice voucher will be transferred to the caretaker. (4) During any period that a caretaker is considered a visitor, the income of the caretaker is not counted in annual income and the caretaker does not qualify the family for any deductions from income. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-6 Unlimited copies may be made for internal use. Adminplan 9/1/05 6-LC. ANTICIPATING ANNUAL INCOME The PHA is required to count all income "anticipated to be received from a source outside the family during the 12-month period following admission or annual reexamination effective date" [24 CFR 5.609(a)(2)]. Policies related to anticipating annual income are provided below. Basis of Annual Income Projection The PHA generally will use current circumstances to determine anticipated income for the coming 12-month period. HUD authorizes the PHA to use other than current circumstances to anticipate income when: • An imminent change in circumstances is expected [HCV GB, p. 5-17] • It is not feasible to anticipate a level of income over a 12-month period (e.g., seasonal or cyclic income) [24 CFR 5.609(d)] • The PHA believes that past income is the best available indicator of expected future income [24 CFR 5.609(d)] PHA Policy When the PHA cannot readily anticipate income based upon current circumstances (e.g., in the case of seasonal employment, unstable working hours, or suspected fraud), the PHA will review and analyze historical data for patterns of employment, paid benefits, and receipt of other income and use the results of this analysis to establish annual income. Anytime current circumstances are not used to project annual income, a clear rationale for the decision will be documented in the file. In all such cases the family may present information and documentation to the PHA to show why the historic pattern does not represent the family's anticipated income. Known Changes in Income If the PHA verifies an upcoming increase or decrease in income, annual income will be calculated by applying each income amount to the appropriate part of the 12-month period. Example: An employer reports that a full-time employee who has been receiving $6/hour will begin to receive $6.25/hour in the eighth week after the effective date of the reexamination. In such a case the PHA would calculate annual income as follows: ($6/hour x 40 hours x 7 weeks) + ($6.25 x 40 hours x 45 weeks). The family may present information that demonstrates that implementing a change before its effective date would create a hardship for the family. In such cases the PHA will calculate annual income using current circumstances and then require an interim reexamination when the change actually occurs. This requirement will be imposed even if the PHA's policy in Chapter 11 does not require interim reexaminations for other types of changes. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-7 Adminplan 9/1/05 Unlimited copies may be made for internal use. Using Up-Front Income Verification (UIV) to Project Income HUD strongly recommends the use of up-front income verification(UIV). UIV is "the verification of income, before or during a family reexamination, through an independent source that systematically and uniformly maintains income information in computerized form for a large number of individuals" [VG, p. 7]. HUD allows PHAs to use UIV information in conjunction with family-provided documents to anticipate income [UIV]. PHA Policy PHA procedures for anticipating annual income will include the use of UIV methods approved by HUD in conjunction with family-provided documents dated within the last 60 days of the PHA interview date. The PHA will follow"HUD Guidelines for Projecting Annual Income When Up-Front Income Verification (UIV)Data Is Available" in handling differences between UIV and family-provided income data. The guidelines depend on whether a difference is substantial or not. HUD defines substantial difference as a difference of$200 or more per month. No Substantial Difference. If UIV information for a particular income source differs from the information provided by a family by less than $200 per month, the PHA will follow these guidelines: If the UIV figure is less than the family's figure, the PHA will use the family's information. If the UIV figure is more than the family's figure, the PHA will use the UIV data unless the family provides documentation of a change in circumstances to explain the discrepancy (e.g., a reduction in work hours). Upon receipt of acceptable family-provided documentation of a change in circumstances, the PHA will use the family-provided information. Substantial Difference. If UIV information for a particular income source differs from the information provided by a family by$200 or more per month, the PHA will follow these guidelines: The PHA will request written third-party verification from the discrepant income source in accordance with 24 CFR 5.236(b)(3)(i). When the PHA cannot readily anticipate income (e.g., in cases of seasonal employment, unstable working hours, or suspected fraud), the PHA will review historical income data for patterns of employment, paid benefits, and receipt of other income. The PHA will analyze all UIV, third-party, and family-provided data and attempt to resolve the income discrepancy. The PHA will use the most current verified income data and, if appropriate, historical income data to calculate anticipated annual income. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-8 Adminplan 9/1/05 Unlimited copies may be made for internal use. 6-I.D. EARNED INCOME Types of Earned Income Included in Annual Income Wages and Related Compensation. The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services is included in annual income [24 CFR 5.609(b)(1)]. PHA Policy For persons who regularly receive bonuses or commissions, the PHA will verify and then average amounts received for the two years preceding admission or reexamination. If only a one-year history is available, the PHA will use the prior year amounts. In either case the family may provide, and the PHA will consider, a credible justification for not using this history to anticipate future bonuses or commissions. If a new employee has not yet received any bonuses or commissions, the PHA will count only the amount estimated by the employer. Some Types of Military Pay. All regular pay, special pay and allowances of a member of the Armed Forces are counted [24 CFR 5.609(b)(8)] except for the special pay to a family member serving in the Armed Forces who is exposed to hostile fire [24 CFR 5.609(c)(7)]. Types of Earned Income Not Counted in Annual Income Temporary, Nonrecurring, or Sporadic Income [24 CFR 5.609(c)(9)]. This type of income (including gifts) is not included in annual income. PHA Policy Sporadic income is income that is not received periodically and cannot be reliably predicted. For example, the income of an individual who works occasionally as a handyman would be considered sporadic if future work could not be anticipated and no historic, stable pattern of income existed. Children's Earnings. Employment income earned by children (including foster children)under the age of 18 years is not included in annual income [24 CFR 5.609(c)(1)]. (See Eligibility chapter for a definition of foster children.) Certain Earned Income of Full-Time Students. Earnings in excess of$480 for each full-time student 18 years old or older(except for the head, spouse, or cohead) are not counted [24 CFR 5.609(c)(11)]. To be considered"full-time," a student must be considered "full-time"by an educational institution with a degree or certificate program [HCV GB, p. 5-29]. Income of a Live-in Aide. Income earned by a live-in aide, as defined in [24 CFR 5.403], is not included in annual income [24 CFR 5.609(c)(5)]. (See Eligibility chapter for a full discussion of live-in aides.) ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-9 Adminplan 9/1/05 Unlimited copies may be made for internal use. Income Earned under Certain Federal Programs. Income from some federal programs is specifically excluded from consideration as income [24 CFR 5.609(c)(17)], including: • Payments to volunteers under the Domestic Volunteer Services Act of 1973 (42 U.S.C. 5044(g), 5058) • Payments received under programs funded in whole or in part under the Job Training Partnership Act (29 U.S.C. 1552(b)) • Awards under the federal work-study program (20 U.S.C. 1087 uu) • Payments received from programs funded under Title V of the Older Americans Act of 1985 (42 U.S.C. 3056(0) • Allowances, earnings, and payments to AmeriCorps participants under the National and Community Service Act of 1990 (42 U.S.C. 12637(d)) • Allowances, earnings, and payments to participants in programs funded under the Workforce Investment Act of 1998 (29 U.S.C. 2931) Resident Service Stipend. Amounts received under a resident service stipend are not included in annual income. A resident service stipend is a modest amount (not to exceed $200 per individual per month) received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development. Such services may include, but are not limited to, fire patrol, hall monitoring, lawn maintenance, resident initiatives coordination, and serving as a member of the PHA's governing board. No resident may receive more than one such stipend during the same period of time [24 CFR 5.600(c)(8)(iv)]. ©Copyright 2005 Nan McKay&Associates,Inc. Page 6-10 Adminplan 9/1/05 Unlimited copies may be made for internal use. State and Local Employment Training Programs. Incremental earnings and benefits to any family member resulting from participation in qualifying state or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff are excluded from annual income. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives and are excluded only for the period during which the family member participates in the training program [24 CFR 5.609(c)(8)(v)]. PHA Policy The PHA defines training program as "a learning process with goals and objectives, generally having a variety of components, and taking place in a series of sessions over a period to time. It is designed to lead to a higher level of proficiency, and it enhances the individual's ability to obtain employment. It may have performance standards to measure proficiency. Training may include, but is not limited to: (1) classroom training in a specific occupational skill, (2) on-the-job training with wages subsidized by the program, or(3) basic education" [expired Notice PIH 98-2, p. 3]. The PHA defines incremental earnings and benefits as the difference between (1)the total amount of welfare assistance and earnings of a family member prior to enrollment in a training program and (2)the total amount of welfare assistance and earnings of the family member after enrollment in the program [expired Notice PIH 98-2, pp. 3-4]. In calculating the incremental difference, the PHA will use as the pre-enrollment income the total annualized amount of the family member's welfare assistance and earnings reported on the family's most recently completed HUD-50058. End of participation in a training program must be reported in accordance with the PHA's interim reporting requirements. C Copyright 2005 Nan McKay&Associates,Inc. Page 6-11 Adminplan 9/1/05 Unlimited copies may be made for internal use. HUD-Funded Training Programs. Amounts received under training programs funded in whole or in part by HUD [24 CFR 5.609(c)(8)(i)] are excluded from annual income. Eligible sources of funding for the training include operating subsidy, Section 8 administrative fees, and modernization, Community Development Block Grant (CDBG), HOME program, and other grant funds received from HUD. PHA Policy To qualify as a training program, the program must meet the definition of training program provided above for state and local employment training programs. Earned Income Tax Credit Earned income tax credit(EITC) refund payments received on or after January 1, 1991 (26 U.S.C. 32(j)), are excluded from annual income [24 CFR 5.609(c)(17)]. Although many families receive the EITC annually when they file taxes, an EITC can also be received throughout the year. The prorated share of the annual EITC is included in the employee's payroll check. Earned Income Disallowance. The earned income disallowance for persons with disabilities is discussed in section 6-I.E below. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-12 Adminplan 9/1/05 Unlimited copies may be made for internal use. 6-I.E. EARNED INCOME DISALLOWANCE FOR PERSONS WITH DISABILITIES [24 CFR 5.617] The earned income disallowance (EID) encourages people with disabilities to enter the work force by not including the full value of increases in earned income for a period of time. The full text of 24 CFR 5.617 is included as Exhibit 6-4 at the end of this chapter. Eligibility criteria and limitations on the disallowance are summarized below. Eligibility This disallowance applies only to individuals in families already participating in the HCV program (not at initial examination). To qualify, the family must experience an increase in annual income that is the result of one of the following events: • Employment of a family member who is a person with disabilities and who was previously unemployed for one or more years prior to employment. Previously unemployed includes a person who annually has earned not more than the minimum wage applicable to the community multiplied by 500 hours. The applicable minimum wage is the federal minimum wage unless there is a higher state or local minimum wage. • Increased earnings by a family member who is a person with disabilities and whose earnings increase during participation in an economic self-sufficiency or job-training program. A self- sufficiency program includes a program designed to encourage, assist, train, or facilitate the economic independence of HUD-assisted families or to provide work to such families [24 CFR 5.603(b)]. • New employment or increased earnings by a family member who is a person with disabilities and who has received benefits or services under Temporary Assistance for Needy Families (TANF) or any other state program funded under Part A of Title IV of the Social Security Act within the past six months. If the benefits are received in the form of monthly maintenance,there is no minimum amount. If the benefits or services are received in a form other than monthly maintenance, such as one-time payments, wage subsidies, or transportation assistance, the total amount received over the six-month period must be at least $500. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-13 Adminplan 9/1/05 Unlimited copies may be made for internal use. Calculation of the Disallowance Calculation of the earned income disallowance for an eligible member of a qualified family begins with a comparison of the member's current income with his or her"prior income." PHA Policy The PHA defines prior income, or prequalifying income, as the family member's last certified income prior to qualifying for the EID. The family member's prior, or prequalifying, income remains constant throughout the period that he or she is receiving the EID. Initial 12-Month Exclusion. During the initial 12-month exclusion period, the full amount (100 percent) of any increase in income attributable to new employment or increased earnings is excluded. The 12 months are cumulative and need not be consecutive. PHA Policy The initial EID exclusion period will begin on the first of the month following the date an eligible member of a qualified family is first employed or first experiences an increase in earnings. Second 12-Month Exclusion and Phase-In. During the second 12-month exclusion period, the exclusion is reduced to half(50 percent) of any increase in income attributable to employment or increased earnings. The 12 months are cumulative and need not be consecutive. Lifetime Limitation. The EID has a four-year (48-month) lifetime maximum. The four-year eligibility period begins at the same time that the initial exclusion period begins and ends 48 months later. The one-time eligibility for the EID applies even if the eligible individual begins to receive assistance from another housing agency, if the individual moves between public housing and Section 8 assistance, or if there are breaks in assistance. PHA Policy During the 48-month eligibility period, the PHA will schedule and conduct an interim reexamination each time there is a change in the family member's annual income that affects or is affected by the EID (e.g., when the family member's income falls to a level at or below his/her prequalifying income, when one of the exclusion periods ends, and at the end of the lifetime maximum eligibility period). ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-14 Adminplan 9/1/05 Unlimited copies may be made for internal use. 6-I.F. BUSINESS INCOME [24 CFR 5.609(b)(2)] Annual income includes "the net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family" [24 CFR 5.609(b)(2)]. Business Expenses Net income is "gross income less business expense" [HCV GB, p. 5-19]. PHA Policy To determine business expenses that may be deducted from gross income, the PHA will use current applicable Internal Revenue Service(IRS) rules for determining allowable business expenses [see IRS Publication 535], unless a topic is addressed by HUD regulations or guidance as described below. Business Expansion HUD regulations do not permit the PHA to deduct from gross income expenses for business expansion. PHA Policy Business expansion is defined as any capital expenditures made to add new business activities, to expand current facilities, or to operate the business in additional locations. For example, purchase of a street sweeper by a construction business for the purpose of adding street cleaning to the services offered by the business would be considered a business expansion. Similarly,the purchase of a property by a hair care business to open at a second location would be considered a business expansion. Capital Indebtedness HUD regulations do not permit the PHA to deduct from gross income the amortization of capital indebtedness. PHA Policy Capital indebtedness is defined as the principal portion of the payment on a capital asset such as land, buildings, and machinery. This means the PHA will allow as a business expense interest, but not principal, paid on capital indebtedness. ©Copyright 2005 Nan McKay&Associates,Inc. Page 6-15 Adminplan 9/1/05 Unlimited copies may be made for internal use. Negative Business Income If the net income from a business is negative, no business income will be included in annual income; a negative amount will not be used to offset other family income. Withdrawal of Cash or Assets from a Business HUD regulations require the PHA to include in annual income the withdrawal of cash or assets from the operation of a business or profession unless the withdrawal reimburses a family member for cash or assets invested in the business by the family. PHA Policy Acceptable investments in a business include cash loans and contributions of assets or equipment. For example, if a member of an assisted family provided an up-front loan of $2,000 to help a business get started, the PHA will not count as income any withdrawals from the business up to the amount of this loan until the loan has been repaid. Investments do not include the value of labor contributed to the business without compensation. Co-owned Businesses PHA Policy If a business is co-owned with someone outside the family, the family must document the share of the business it owns. If the family's share of the income is lower than its share of ownership, the family must document the reasons for the difference. C Copyright 2005 Nan McKay&Associates,Inc. Page 6-16 Adminplan 9/1/05 Unlimited copies may be made for internal use. 6-I.G.ASSETS [24 CFR 5.609(b)(3) and 24 CFR 5.603(b)] Overview There is no asset limitation for participation in the HCV program. However, HUD requires that the PHA include in annual income the "interest, dividends, and other net income of any kind from real or personal property" [24 CFR 5.609(b)(3)]. This section discusses how the income from various types of assets is determined. For most types of assets, the PHA must determine the value of the asset in order to compute income from the asset. Therefore, for each asset type, this section discusses: • • How the value of the asset will be determined • How income from the asset will be calculated Exhibit 6-1 provides the regulatory requirements for calculating income from assets [24 CFR 5.609(b)(3)], and Exhibit 6-3 provides the regulatory definition of net family assets. This section begins with a discussion of general policies related to assets and then provides HUD rules and PHA policies related to each type of asset. General Policies Income from Assets The PHA generally will use current circumstances to determine both the value of an asset and the anticipated income from the asset. As is true for all sources of income, HUD authorizes the PHA to use other than current circumstances to anticipate income when (1) an imminent change in circumstances is expected (2) it is not feasible to anticipate a level of income over 12 months or (3) the PHA believes that past income is the best indicator of anticipated income. For example, if a family member owns real property that typically receives rental income but the property is currently vacant, the PHA can take into consideration past rental income along with the prospects of obtaining a new tenant. PHA Policy Anytime current circumstances are not used to determine asset income, a clear rationale for the decision will be documented in the file. In such cases the family may present information and documentation to the PHA to show why the asset income determination does not represent the family's anticipated asset income. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-17 Adminplan 9/1/05 Unlimited copies may be made for internal use. Valuing Assets The calculation of asset income sometimes requires the PHA to make a distinction between an asset's market value and its cash value. • The market value of an asset is its worth(e.g., the amount a buyer would pay for real estate or the balance in an investment account). • The cash value of an asset is its market value less all reasonable amounts that would be incurred when converting the asset to cash. PHA Policy Reasonable costs that would be incurred when disposing of an asset include, but are not limited to, penalties for premature withdrawal, broker and legal fees, and settlement costs incurred in real estate transactions [HCV GB, p. 5-28]. Lump-Sum Receipts Payments that are received in a single lump sum, such as inheritances, capital gains, lottery winnings, insurance settlements, and proceeds from the sale of property, are generally considered assets,not income. However, such lump-sum receipts are counted as assets only if they are retained by a family in a form recognizable as an asset(e.g., deposited in a savings or checking account) [RHIIP FAQs]. (For a discussion of lump-sum payments that represent the delayed start of a periodic payment, most of which are counted as income, see sections 6-I.H and 6-I.I.) Imputing Income from Assets[24 CFR 5.609(b)(3)] When net family assets are $5,000 or less, the PHA will include in annual income the actual income anticipated to be derived from the assets. When the family has net family assets in excess of$5,000,the PHA will include in annual income the greater of(1)the actual income derived from the assets or (2)the imputed income. Imputed income from assets is calculated by multiplying the total-cash value of all family assets by the current HUD-established passbook savings rate. Determining Actual Anticipated Income from Assets It may or may not be necessary for the PHA to use the value of an asset to compute the actual anticipated income from the asset. When the value is required to compute the anticipated income from an asset, the market value of the asset is used. For example, if the asset is a property for which a family receives rental income, the anticipated income is determined by annualizing the actual monthly rental amount received for the property; it is not based on the property's market value. However, if the asset is a savings account, the anticipated income is determined by multiplying the market value of the account by the interest rate on the account. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-18 Adminplan 9/1/05 Unlimited copies may be made for internal use. Withdrawal of Cash or Liquidation of Investments Any withdrawal of cash or assets from an investment will be included in income except to the extent that the withdrawal reimburses amounts invested by the family. For example,when a family member retires, the amount received by the family from a retirement plan is not counted as income until the family has received payments equal to the amount the family member deposited into the retirement fund. Jointly Owned Assets The regulation at 24 CFR 5.609(a)(4) specifies that annual income includes "amounts derived (during the 12-month period) from assets to which any member of the family has access." PHA Policy If an asset is owned by more than one person and any family member has unrestricted access to the asset,the PHA will count the full value of the asset. A family member has unrestricted access to an asset when he or she can legally dispose of the asset without the consent of any of the other owners. If an asset is owned by more than one person, including a family member, but the family member does not have unrestricted access to the asset, the PHA will prorate the asset according to the percentage of ownership. If no percentage is specified or provided for by state or local law, the PHA will prorate the asset evenly among all owners. Assets Disposed Of for Less than Fair Market Value[24 CFR 5.603(b)] HUD regulations require the PHA to count as a current asset any business or family asset that was disposed of for less than fair market value during the two years prior to the effective date of the examination/reexamination, except as noted below. Minimum Threshold The HVC Guidebook permits the PHA to set a threshold below which assets disposed of for less than fair market value will not be counted [HCV GB,p. 5-27]. PHA Policy The PHA will not include the value of assets disposed of for less than fair market value unless the cumulative fair market value of all assets disposed of during the past two years exceeds the gross amount received for the assets by more than$1,000. When the two-year period expires,the income assigned to the disposed asset(s) also expires. If the two-year period ends between annual recertifications, the family may request an interim recertification to eliminate consideration of the asset(s). Assets placed by the family in nonrevocable trusts are considered assets disposed of for less than fair market value except when the assets placed in trust were received through settlements or judgments. ©Copyright 2005 Nan McKay&Associates,Inc. Page 6-19 Adminplan 9/1/05 Unlimited copies may be made for internal use. Separation or Divorce The regulation also specifies that assets are not considered disposed of for less than fair market value if they are disposed of as part of a separation or divorce settlement and the applicant or tenant receives important consideration not measurable in dollar terms. PHA Policy All assets disposed of as part of a separation or divorce settlement will be considered assets for which important consideration not measurable in monetary terms has been received. In order.to qualify for this exemption, a family member must be subject to a formal separation or divorce settlement agreement established through arbitration, mediation, or court order. Foreclosure or Bankruptcy Assets are not considered disposed of for less than fair market value when the disposition is the result of a foreclosure or bankruptcy sale. Family Declaration PHA Policy Families must sign a declaration form at initial certification and each annual recertification identifying all assets that have been disposed of for less than fair market value or declaring that no assets have been disposed of for less than fair market value. The PHA may verify the value of the assets disposed of if other information available to the PHA does not appear to agree with the information reported by the family. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-20 Adminplan 9/1/05 Unlimited copies may be made for internal use. Types of Assets Checking and Savings Accounts For regular checking accounts and savings accounts, cash value has the same meaning as market value. If a checking account does not bear interest,the anticipated income from the account is zero. PHA Policy In determining the value of a checking account, the PHA will use the average monthly balance for the last six months. In determining the value of a savings account, the PHA will use the current balance. In determining the anticipated income from an interest-bearing checking or savings account, the PHA will multiply the value of the account by the current rate of interest paid on the account. Investment Accounts Such as Stocks, Bonds, Saving Certificates, and Money Market Funds Interest or dividends earned by investment accounts are counted as actual income from assets even when the earnings are reinvested. The cash value of such an asset is determined by deducting from the market value any broker fees, penalties for early withdrawal, or other costs of converting the asset to cash. PHA Policy In determining the market value of an investment account, the PHA will use the value of the account on the most recent investment report. How anticipated income from an investment account will be calculated depends on whether the rate of return is known. For assets that are held in an investment account with a known rate of return(e.g., savings certificates), asset income will be calculated based on that known rate (market value multiplied by rate of earnings). When the anticipated rate of return is not known(e.g., stocks),the PHA will calculate asset income based on the earnings for the most recent reporting period. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-21 Adminplan 9/1/05 Unlimited copies may be made for internal use. Equity in Real Property or Other Capital Investments Equity(cash value) in a property or other capital asset is the estimated current market value of the asset less the unpaid balance on all loans secured by the asset and reasonable costs (such as broker fees) that would be incurred in selling the asset [HCV GB, p. 5-25]. Equity in real property and other capital investments is considered in the calculation of asset income except for the following types of assets: • Equity accounts in HUD homeownership programs [24 CFR5.603(b)] • The value of a home currently being purchased with assistance under the HCV program Homeownership Option for the first 10 years after the purchase date of the home [24 CFR 5.603(b)] • Equity in owner-occupied cooperatives and manufactured homes in which the family lives [HCV GB, p. 5-25] • Equity in real property when a family member's main occupation is real estate [HCV GB,p. 5-25]. This real estate is considered a business asset, and income related to this asset will be calculated as described in section 6-I.F. • Interests in Indian Trust lands [24 CFR 5.603(b)] • Real property and capital assets that are part of an active business or farming operation [HCV GB, p. 5-25] A family may have real property as an asset in two ways: (1) owning the property itself and (2) holding a mortgage or deed of trust on the property. In the case of a property owned by a family member, the anticipated asset income generally will be in the form of rent or other payment for the use of the property. If the property generates no income, actual anticipated income from the asset will be zero. In the case of a mortgage or deed of trust held by a family member, the outstanding balance (unpaid principal) is the cash value of the asset. The interest portion only of payments made to the family in accordance with the terms of the mortgage or deed of trust is counted as anticipated asset income. PHA Policy In the case of capital investments owned jointly with others not living in a family's unit, a prorated share of the property's cash value will be counted as an asset unless the PHA determines that the family receives no income from the property and is unable to sell or otherwise convert the asset to cash. ©Copyright 2005 Nan McKay&Associates,Inc. Page 6-22 Adminplan 9/1/05 Unlimited copies may be made for internal use. Trusts A trust is a legal arrangement generally regulated by state law in which one party (the creator or grantor) transfers property to a second party (the trustee) who holds the property for the benefit of one or more third parties (the beneficiaries). Revocable Trusts If any member of a family has the right to withdraw the funds in a trust, the value of the trust is considered an asset [HCV GB, p. 5-25]. Any income earned as a result of investment of trust funds is counted as actual asset income, whether the income is paid to the family or deposited in the trust. Nonrevocable Trusts In cases where a trust is not revocable by, or under the control of, any member of a family, the value of the trust fund is not considered an asset. However, any income distributed to the family from such a trust is counted as a periodic payment or a lump-sum receipt, as appropriate [24 CFR 5.603(b)]. (Periodic payments are covered in section 6-I.H. Lump-sum receipts are discussed earlier in this section.) Retirement Accounts Company Retirement/Pension Accounts In order to correctly include or exclude as an asset any amount held in a company retirement or pension account by an employed person, the PHA must know whether the money is accessible before retirement [HCV GB, p. 5-26]. While a family member is employed, only the amount the family member can withdraw without retiring or terminating employment is counted as an asset [HCV GB, p. 5-26]. After a family member retires or terminates employment, any amount distributed to the family member is counted as a periodic payment or a lump-sum receipt, as appropriate [HCV GB, p. 5- 26], except to the extent that it represents funds invested in the account by the family member. (For more on periodic payments, see section 6-I.H.) The balance in the account is counted as an asset only if it remains accessible to the family member. IRA, Keogh, and Similar Retirement Savings Accounts IRA, Keogh, and similar retirement savings accounts are counted as assets even though early withdrawal would result in a penalty [HCV GB,p. 5-25]. ©Copyright 2005 Nan McKay&Associates,Inc. Page 6-23 Adminplan 9/1/05 Unlimited copies may be made for internal use. Personal Property Personal property held as an investment, such as gems,jewelry, coin collections, antique cars, etc., is considered an asset [HCV GB, p. 5-25]. PHA Policy In determining the value of personal property held as an investment, the PHA will use the family's estimate of the value. However, the PHA also may obtain an appraisal if appropriate to confirm the value of the asset. The family must cooperate with the appraiser but cannot be charged any costs related to the appraisal. Generally,personal property held as an investment generates no income until it is disposed of. If regular income is generated (e.g., income from renting the personal property), the amount that is expected to be earned in the coming year is counted as actual income from the asset. Necessary items of personal property are not considered assets [24 CFR 5.603(b)]. PHA Policy Necessary personal property consists of items such as clothing, furniture, household fiunishings,jewelry that is not held as an investment, and vehicles, including those specially equipped for persons with disabilities. Life Insurance The cash value of a life insurance policy available to a family member before death, such as a whole life or universal life policy, is included in the calculation of the value of the family's assets [HCV GB 5-25]. The cash value is the surrender value. If such a policy ens dividends or interest that the family could elect to receive, the anticipated amount of dividends or interest is counted as income from the asset whether or not the family actually receives it. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-24 Adminplan 9/1/05 Unlimited copies may be made for internal use. 6-I.H. PERIODIC PAYMENTS Periodic payments are forms of income received on a regular basis. HUD regulations specify periodic payments that are and are not included in annual income. Periodic Payments Included in Annual Income • Periodic payments from sources such as social security, unemployment and welfare assistance, annuities, insurance policies, retirement funds, and pensions. However, periodic payments from retirement accounts, annuities, and similar forms of investments are counted only after they exceed the amount contributed by the family [24 CFR 5.609(b)(4) and(b)(3)]. • Disability or death benefits and lottery receipts paid periodically, rather than in a single lump sum [24 CFR 5.609(b)(4) and HCV,p. 5-14] Lump-Sum Payments for the Delayed Start of a Periodic Payment Most lump sums received as a result of delays in processing periodic payments, such as unemployment or welfare assistance, are counted as income. However, lump-sum receipts for the delayed start of periodic social security or supplemental security income (SSI)payments are not counted as income [CFR 5.609(b)(4)]. PHA Policy When a delayed-start payment is received and reported during the period in which the PHA is processing an annual reexamination, the PHA will adjust the family share and PHA subsidy retroactively for the period the payment was intended to cover. The family may pay in full any amount due or request to enter into a repayment agreement with the PHA. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-25 Adminplan 9/1/05 Unlimited copies may be made for internal use. Periodic Payments Excluded from Annual Income • Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the assisted family, who are unable to live alone) [24 CFR 5.609(c)(2)] PHA Policy The PHA will exclude payments for the care of foster children and foster adults only if the care is provided through an official arrangement with a local welfare agency [HCV GB,p. 5-18]. • Amounts paid by a state agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home [24 CFR 5.609(c)(16)] • Amounts received under the Low-Income Home Energy Assistance Program (42 U.S.C. 1626(c)) [24 CFR 5.609(c)(17)] • Amounts received under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858q) [24 CFR 5.609(c)(17)] • Earned Income Tax Credit (EITC) refund payments (26 U.S.C. 32(j)) [24 CFR 5.609(c)(17)]. Note: EITC may be paid periodically if the family elects to receive the amount due as part of payroll payments from an employer. • Lump sums received as a result of delays in processing Social Security and SSI payments (see section 6-I.J.) [24 CFR 5.609(b)(4)]. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-26 Adminplan 9/1/05 Unlimited copies may be made for internal use. 6-I.I. PAYMENTS IN LIEU OF EARNINGS Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation, and severance pay, are counted as income [24 CFR 5.609(b)(5)] if they are received either in the form of periodic payments or in the form of a lump-sum amount or prospective monthly amounts for the delayed start of a periodic payment. If they are received in a one-time lump sum(as a settlement, for instance),they are treated as lump-sum receipts [24 CFR 5.609(c)(3)]. (See also the discussion of periodic payments in section 6-I.H and the discussion of lump-sum receipts in section 6-I.G.) • ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-27 Adminplan 9/1/05 Unlimited copies may be made for internal use. 6-I2. WELFARE ASSISTANCE Overview Welfare assistance is counted in annual income. Welfare assistance includes Temporary Assistance for Needy Families (TANF) and any payments to individuals or families based on need that are made under programs funded separately or jointly by federal, state, or local governments [24 CFR 5.603(b)]. Sanctions Resulting in the Reduction of Welfare Benefits [24 CFR 5.615] The PHA must make a special calculation of annual income when the welfare agency imposes certain sanctions on certain families. The full text of the regulation at 24 CFR 5.615 is provided as Exhibit 6-5. The requirements are summarized below. This rule applies only if a family was receiving HCV assistance at the time the sanction was imposed. Covered Families The families covered by 24 CFR 5.615 are those "who receive welfare assistance or other public assistance benefits ('welfare benefits') from a State or other public agency ('welfare agency') under a program for which Federal, State or local law requires that a member of the family must participate in an economic self-sufficiency program as a condition for such assistance" [24 CFR 5.615(b)] Imputed Income When a welfare agency imposes a sanction that reduces a family's welfare income because the family commits fraud or fails to comply with the agency's economic self-sufficiency program or work activities requirement, the PHA must include in annual income "imputed" welfare income. The PHA must request that the welfare agency inform the PHA when the benefits of an HCV participant family are reduced. The imputed income is the amount the family would have received if the family had not been sanctioned. This requirement does not apply to reductions in welfare benefits: (1) at the expiration of the lifetime or other time limit on the payment of welfare benefits, (2) if a family member is unable to find employment even though the family member has complied with the welfare agency economic self-sufficiency or work activities requirements, or (3) because a family member has not complied with other welfare agency requirements [24 CFR 5.615(b)(2)}. Offsets The amount of the imputed income is offset by the amount of additional income the family begins to receive after the sanction is imposed. When the additional income equals or exceeds the imputed welfare income, the imputed income is reduced to zero [24 CFR 5.615(c)(4)]. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-28 Adminplan 9/1/05 Unlimited copies may be made for internal use. 6-I.K. PERIODIC AND DETERMINABLE ALLOWANCES [24 CFR 5.609(b)(7)] Annual income includes periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing with an assisted family. Alimony and Child Support The PHA must count alimony or child support amounts awarded as part of a divorce or separation agreement. • PHA Policy The PHA will count court-awarded amounts for alimony and child support unless the PHA verifies that(1)the payments are not being made and (2)the family has made reasonable efforts to collect amounts due, including filing with courts or agencies responsible for enforcing payments [HCV GB,pp. 5-23 and 5-47]. Families who do not have court-awarded alimony and child support awards are not required to seek a court award and are not required to take independent legal action to obtain collection. Regular Contributions or Gifts The PHA must count as income regular monetary and nonmonetary contributions or gifts from persons not residing with an assisted family [24 CFR 5.609(b)(7)]. Temporary, nonrecurring, or sporadic income and gifts are not counted [24 CFR 5.609(c)(9)]. PHA Policy Examples of regular contributions include: (1)regular payment of a family's bills (e.g., utilities, telephone, rent, credit cards, and car payments), (2) cash or other liquid assets provided to any family member on a regular basis, and (3) "in-kind" contributions such as groceries and clothing provided to a family on a regular basis. Nonmonetary contributions will be valued at the cost of purchasing the items, as determined by the PHA. For contributions that may vary from month to month (e.g., utility payments), the PHA will include an average amount based upon past history. CO Copyright 2005 Nan McKay&Associates,Inc. Page 6-29 Adminplan 9/1/05 Unlimited copies may be made for internal use. 6-I.L. ADDITIONAL EXCLUSIONS FROM ANNUAL INCOME Other exclusions contained in 24 CFR 5.609(c)that have not been discussed earlier in this chapter include the following: • Reimbursement of medical expenses [24 CFR 5.609(c)(4)] • The full amount of student financial assistance paid directly to the student or to the educational institution [24 CFR 5.609(c)(6)], except that in accordance with Section 224 of the FY 2005 Appropriations Act, the portion of any athletic scholarship assistance available for housing costs must be included in annual income [PIH Notice 2005-16]. PHA Policy Regular financial support from parents or guardians to students for food, clothing personal items, and entertainment is not considered student financial assistance and is included in annual income. • Amounts received by participants in other publicly assisted programs which are specifically for or in reimbursement of out-of-pocket expenses incurred and which are made solely to allow participation in a specific program [24 CFR 5.609(c)(8)(iii)] • Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency(PASS) [(24 CFR 5.609(c)(8)(ii)] • Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era [24 CFR 5.609(c)(10)] • Adoption assistance payments in excess of$480 per adopted child [24 CFR 5.609(c)(12)] • Refunds or rebates on property taxes paid on the dwelling unit [24 CFR 5.609(c)(15)] • Amounts paid by a state agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home [24 CFR 5.609(c)(16)] • Amounts specifically excluded by any other federal statute [24 CFR 5.609(c)(17)]. HUD publishes an updated list of these exclusions periodically. It includes: (a) The value of the allotment provided to an eligible household under the Food Stamp Act of 1977 (7 U.S.C. 2017 (b)) (b) Payments to Volunteers under the Domestic Volunteer Services Act of 1973 (42 U.S.C. 5044(g), 5058) (c) Payments received under the Alaska Native Claims Settlement Act (43 U.S.C. 1626(c)) (d) Income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes (25 U.S.C. 459e) (e) Payments or allowances made under the Department of Health and Human Services' Low-Income Home Energy Assistance Program(42 U.S.C. 8624(f)) ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-30 Adminplan 9/1/05 Unlimited copies may be made for internal use. (f) Payments received under programs funded in whole or in part under the Job Training Partnership Act(29 U.S.C. 1552(b)) (Effective July 1, 2000, references to Job Training Partnership Act shall be deemed to refer to the corresponding provision of the Workforce Investment Act of 1998 (29 U.S.C. 2931).) (g) Income derived from the disposition of funds to the Grand River Band of Ottawa Indians (Pub. L. 94-540, 90 Stat. 2503-04) (h) The first $2,000 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the U. S. Claims Court, the interests of individual Indians in trust or restricted lands, including the first $2,000 per year of income received by individual Indians from funds derived from interests held in such trust or restricted lands (25 U.S.C. 1407-1408) (i) Amounts of scholarships funded under title IV of the Higher Education Act of 1965, including awards under the federal work-study program or under the Bureau of Indian Affairs student assistance programs (20 U.S.C. 1087uu) (j) Payments received from programs funded under Title V of the Older Americans Act of 1985 (42 U.S.C. 3056(f)) (k) Payments received on or after January 1, 1989, from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in In Re Agent-product liability litigation, M.D.L. No. 381 (E.D.N.Y.) (1) Payments received under the Maine Indian Claims Settlement Act of 1980 (25 U.S.C. 1721) (m) The value of any child care provided or arranged (or any amount received as payment for such care or reimbursement for costs incurred for such care) under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858q) (n) Earned income tax credit (EITC)refund payments received on or after January 1, 1991 (26 U.S.C. 32(j)) (o) Payments by the Indian Claims Commission to the Confederated Tribes and Bands of Yakima Indian Nation or the Apache Tribe of Mescalero Reservation(Pub. L. 95-433) (p) Allowances, earnings and payments to AmeriCorps participants under the National and Community Service Act of 1990 (42 U.S.C. 12637(d)) (q) Any allowance paid under the provisions of 38 U.S.C. 1805 to a child suffering from spina bifida who is the child of a Vietnam veteran (38 U.S.C. 1805) (r) Any amount of crime victim compensation (under the Victims of Crime Act) received through crime victim assistance (or payment or reimbursement of the cost of such assistance) as determined under the Victims of Crime Act because of the commission of a crime against the applicant under the Victims of Crime Act(42 U.S.C. 10602) (s) Allowances, earnings and payments to individuals participating in programs under the Workforce Investment Act of 1998 (29 U.S.C. 2931) ©Copyright 2005 Nan McKay&Associates,Inc. Page 6-31 Adminplan 9/1/05 Unlimited copies may be made for internal use. • ©Copyright 2005 Nan McKay&Associates,Inc. Page 6-32 Adminplan 9/1/05 Unlimited copies may be made for internal use. PART II: ADJUSTED INCOME 6-II.A. INTRODUCTION Overview HUD regulations require PHAs to deduct from annual income any of five mandatory deductions for which a family qualifies. The resulting amount is the family's adjusted income. Mandatory deductions are found in 24 CFR 5.611. 5.611(a) Mandatory deductions. In determining adjusted income, the responsible entity [PHA] must deduct the following amounts from annual income: (1) $480 for each dependent; (2) $400 for any elderly family or disabled family; (3) The sum of the following, to the extent the sum exceeds three percent of annual income: (i) Unreimbursed medical expenses of any elderly family or disabled family; (ii) Unreimbursed reasonable attendant care and auxiliary apparatus expenses for each member of the family who is a person with disabilities, to the extent necessary to enable any member of the family (including the member who is a person with disabilities) to be employed. This deduction may not exceed the earned income received by family members who are 18 years of age or older and who are able to work because of such attendant care or auxiliary apparatus; and (4) Any reasonable child care expenses necessary to enable a member of the family to be employed or to further his or her education. This part covers policies related to these mandatory deductions. Verification requirements related to these deductions are found in Chapter 7. Anticipating Expenses PHA Policy Generally,the PHA will use current circumstances to anticipate expenses. When possible, for costs that are expected to fluctuate during the year(e.g., child care during school and nonschool periods and cyclical medical expenses), the PHA will estimate costs based on historic data and known future costs. If a family has an accumulated debt for medical or disability assistance expenses, the PHA will include as an eligible expense the portion of the debt that the family expects to pay during the period for which the income determination is being made. However, amounts previously deducted will not be allowed even if the amounts were not paid as expected in a preceding period. The PHA may require the family to provide documentation of payments made in the preceding year. C Copyright 2005 Nan McKay&Associates,Inc. Page 6-33 Adminplan 9/1/05 Unlimited copies may be made for internal use. 6-II.B. DEPENDENT DEDUCTION A deduction of$480 is taken for each dependent [24 CFR 5.611(a)(1)]. Dependent is defined as any family member other than the head, spouse, or cohead who is under the age of 18 or who is 18 or older and is a person with disabilities or a full-time student. Foster children, foster adults, and live-in aides are never considered dependents [24 CFR 5.603(b)]. 6-II.C. ELDERLY OR DISABLED FAMILY DEDUCTION A single deduction of$400 is taken for any elderly or disabled family [24 CFR 5.611(a)(2)]. An elderly family is a family whose head, spouse, cohead, or sole member is 62 years of age or older, and a disabled family is a family whose head, spouse, cohead, or sole member is a person with disabilities [24 CFR 5.403]. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-34 Adminplan 9/1/05 Unlimited copies may be made for internal use. 6-II.D. MEDICAL EXPENSES DEDUCTION [24 CFR 5.611(a)(3)(i)] Unreimbursed medical expenses may be deducted to the extent that, in combination with any disability assistance expenses, they exceed three percent of annual income. The medical expense deduction is permitted only for families in which the head, spouse, or cohead is at least 62 or is a person with disabilities. If a family is eligible for a medical expense deduction, the medical expenses of all family members are counted [VG, p. 28]. Definition of Medical Expenses HUD regulations define medical expenses at 24 CFR 5.603(b)to mean"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." PHA Policy The most current IRS Publication 502,Medical and Dental Expenses, will be used to determine the costs that qualify as medical expenses. Summary of Allowable Medical Expenses from IRS Publication 502 Services of medical professionals Substance abuse treatment programs Surgery and medical procedures that are Psychiatric treatment necessary, legal, noncosmetic Ambulance services and some costs of Services of medical facilities transportation related to medical Hospitalization, long-term care, and in- expenses home nursing services The cost and care of necessary Prescription medicines and insulin, but equipment related to a medical not nonprescription medicines even if condition (e.g., eyeglasses/lenses, recommended by a doctor hearing aids, crutches, and artificial teeth) Improvements to housing directly related to medical needs (e.g., ramps for a wheel Cost and continuing care of necessary chair, handrails) service animals Medical insurance premiums or the cost of a health maintenance organization (HMO) Note: This chart provides a summary of eligible medical expenses only. Detailed information is provided in IRS Publication 502. Medical expenses are considered only to the extent they are not reimbursed by insurance or some other source. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-35 Adminplan 9/1/05 Unlimited copies may be made for internal use. Families That Qualify for Both Medical and Disability Assistance Expenses PHA Policy This policy applies only to families in which the head, spouse, or cohead is 62 or older or is a person with disabilities. When expenses anticipated by a family could be defined as either medical or disability assistance expenses, the PHA will consider them medical expenses unless it is clear that the expenses are incurred exclusively to enable a person with disabilities to work. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6.36 Adminplan 9/1/05 Unlimited copies may be made for internal use. 6-ILE. DISABILITY ASSISTANCE EXPENSES DEDUCTION [24 CFR 5.603(b) and 24 CFR 5.611(a)(3)(ii)] Reasonable expenses for attendant care and auxiliary apparatus for a disabled family member may be deducted if they: (1) are necessary to enable a family member 18 years or older to work, (2) are not paid to a family member or reimbursed by an outside source, (3) in combination with any medical expenses, exceed three percent of annual income, and (4) do not exceed the earned income received by the family member who is enabled to work. Earned Income Limit on the Disability Assistance Expense Deduction A family can qualify for the disability assistance expense deduction only if at least one family member (who may be the person with disabilities) is enabled to work [24 CFR 5.603(b)]. The disability expense deduction is capped by the amount of"earned income received by family members who are 18 years of age or older and who are able to work" because of the expense [24 CFR 5.611(a)(3)(ii)]. The earned income used for this purpose is the amount verified before any earned income disallowances or income exclusions are applied. PHA Policy The family must identify the family members enabled to work as a result of the disability assistance expenses. In evaluating the family's request,the PHA will consider factors such as how the work schedule of the relevant family members relates to the hours of care provided, the time required for transportation,the relationship of the family members to the person with disabilities, and any special needs of the person with disabilities that might determine which family members are enabled to work. When the PHA determines that the disability assistance expenses enable more than one family member to work, the expenses will be capped by the sum of the family members' incomes. ©Copyright 2005 Nan McKay&Associates,Inc. Page 6-37 Adminplan 9/1/05 Unlimited copies may be made for internal use. Eligible Disability Expenses Examples of auxiliary apparatus are provided in the HCV Guidebook as follows: "Auxiliary apparatus are items such as wheelchairs, ramps, adaptations to vehicles, or special equipment to enable a blind person to read or type, but only if these items are directly related to permitting the disabled person or other family member to work" [HCV GB,p. 5-30]. HUD advises PHAs to further define and describe auxiliary apparatus [VG, p. 30]. Eligible Auxiliary Apparatus PHA Policy Expenses incurred for maintaining or repairing an auxiliary apparatus are eligible. In the case of an apparatus that is specially adapted to accommodate a person with disabilities (e.g., a vehicle or computer), the cost to maintain the special adaptations (but not maintenance of the apparatus itself)is an eligible expense. The cost of service animals trained to give assistance to persons with disabilities, including the cost of acquiring the animal, veterinary care, food, grooming, and other continuing costs of care, will be included. Eligible Attendant Care The family determines the type of attendant care that is appropriate for the person with disabilities. PHA Policy Attendant care includes, but is not limited to, reasonable costs for home medical care, nursing services, in-home or center-based care services, interpreters for persons with hearing impairments, and readers for persons with visual disabilities. Attendant care expenses will be included for the period that the person enabled to work is employed plus reasonable transportation time. The cost of general housekeeping and personal services is not an eligible attendant care expense. However, if the person enabled to work is the person with disabilities, personal services necessary to enable the person with disabilities to work are eligible. If the care attendant also provides other services to the family, the PHA will prorate the cost and allow only that portion of the expenses attributable to attendant care that enables a family member to work. For example, if the care provider also cares for a child who is not the person with disabilities, the cost of care must be prorated. Unless otherwise specified by the care provider, the calculation will be based upon the number of hours spent in each activity and/or the number of persons under care. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-38 Adminplan 9/1/05 Unlimited copies may be made for internal use. Payments to Family Members No disability assistance expenses may be deducted for payments to a member of an assisted family [24 CFR 5.603(b)]. However, expenses paid to a relative who is not a member of the assisted family may be deducted if they are not reimbursed by an outside source. Necessary and Reasonable Expenses The family determines the type of care or auxiliary apparatus to be provided and must describe how the expenses enable a family member to work. The family must certify that the disability assistance expenses are necessary and are not paid or reimbursed by any other source. PHA Policy The PHA determines the reasonableness of the expenses based on typical costs of care or apparatus in the locality. To establish typical costs, the PHA will collect information from organizations that provide services and support to persons with disabilities. A family may present, and the PI-IA will consider, the family's justification for costs that exceed typical costs in the area. Families That Qualify for Both Medical and Disability Assistance Expenses PHA Policy This policy applies only to families in which the head or spouse is 62 or older or is a person with disabilities. When expenses anticipated by a family could be defined as either medical or disability assistance expenses,the PHA will consider them medical expenses unless it is clear that the expenses are incurred exclusively to enable a person with disabilities to work. C Copyright 2005 Nan McKay&Associates,Inc. Page 6-39 Adminplan 9/1/05 Unlimited copies may be made for internal use. 6-II.F. CHILD CARE EXPENSE DEDUCTION HUD defines child care expenses at 24 CFR 5.603(b) as "amounts anticipated to be paid by the family for the care of children under 13 years of age during the period for which annual income is computed, but only where such care is necessary to enable a family member to actively seek employment, be gainfully employed, or to further his or her education and only to the extent such amounts are not reimbursed. The amount deducted shall reflect reasonable charges for child care. In the case of child care necessary to permit employment, the amount deducted shall not exceed the amount of employment income that is included in annual income." Clarifying the Meaning of Child for This Deduction Child care expenses do not include child support payments made to another on behalf of a minor who is not living in an assisted family's household [VG, p. 26]. However, child care expenses for foster children that are living in the assisted family's household, are included when determining the family's child care expenses [HCV GB,p. 5-29]. Qualifying for the Deduction Determining Who Is Enabled to Pursue an Eligible Activity PHA Policy The family must identify the family member(s) enabled to pursue an eligible activity. The term eligible activity in this section means any of the activities that may make the family eligible for a child care deduction(seeking work, pursuing an education, or being gainfully employed). In evaluating the family's request,the PHA will consider factors such as how the schedule for the claimed activity relates to the hours of care provided, the time required for transportation, the relationship of the family member(s) to the child, and any special needs of the child that might help determine which family member is enabled to pursue an eligible activity. Seeking Work PHA Policy If the child care expense being claimed is to enable a family member to seek employment, the family must provide evidence of the family member's efforts to obtain employment at each reexamination. The deduction may be reduced or denied if the family member's job search efforts are not commensurate with the child care expense being allowed by the PHA. ©Copyright 2005 Nan McKay&Associates,Inc. Page 6-40 Adminplan 9/1105 Unlimited copies may be made for internal use. Furthering Education PHA Policy If the child care expense being claimed is to enable a family member to further his or her education,the member must be enrolled in school (academic or vocational) or participating in a formal training program. The family member is not required to be a full-time student, but the time spent in educational activities must be commensurate with the child care claimed. Being Gainfully Employed PHA Policy If the child care expense being claimed is to enable a family member to be gainfully employed, the family must provide evidence of the family member's employment during the time that child care is being provided. Gainful employment is any legal work activity (full- or part-time) for which a family member is compensated. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-41 Adminplan 9/1/05 Unlimited copies may be made for internal use. Earned Income Limit on Child Care Expense Deduction When a family member looks for work or furthers his or her education, there is no cap on the amount that may be deducted for child care—although the care must still be necessary and reasonable. However, when child care enables a family member to work,the deduction is capped by "the amount of employment income that is included in annual income" [24 CFR 5.603(b)]. The earned income used for this purpose is the amount of earned income verified after any earned income disallowances or income exclusions are applied. When the person who is enabled to work is a person with disabilities who receives the earned income disallowance (BID) or a full-time student whose earned income above $480 is excluded, child care costs related to enabling a family member to work may not exceed the portion of the person's earned income that actually is included in annual income. For example, if a family member who qualifies for the EID makes $15,000 but because of the EID only $5,000 is included in annual income, child care expenses are limited to $5,000. The PHA must not limit the deduction to the least expensive type of child care. If the care allows the family to pursue more than one eligible activity, including work, the cap is calculated in proportion to the amount of time spent working [HCV GB, p. 5-30]. PHA Policy When the child care expense being claimed is to enable a family member to work, only one family member's income will be considered for a given period of time. When more than one family member works during a given period, the PHA generally will limit allowable child care expenses to the earned income of the lowest-paid member. The family may provide information that supports a request to designate another family member as the person enabled to work. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-42 Adminplan 9/1/05 Unlimited copies may be made for internal use. Eligible Child Care Expenses The type of care to be provided is determined by the assisted family. The PHA may not refuse to give a family the child care expense deduction because there is an adult family member in the household that may be available to provide child care [VG,p. 26]. Allowable Child Care Activities PHA Policy For school-age children, costs attributable to public or private school activities during standard school hours are not considered. Expenses incurred for supervised activities after school or during school holidays (e.g., summer day camp, after-school sports league) are allowable forms of child care. The costs of general housekeeping and personal services are not eligible. Likewise, child care expenses paid to a family member who lives in the family's unit are not eligible; however,payments for child care to relatives who do not live in the unit are eligible. If a child care provider also renders other services to a family or child care is used to enable a family member to conduct activities that are not eligible for consideration, the PHA will prorate the costs and allow only that portion of the expenses that is attributable to child care for eligible activities. For example, if the care provider also cares for a child with disabilities who is 13 or older, the cost of care will be prorated. Unless otherwise specified by the child care provider, the calculation will be based upon the number of • hours spent in each activity and/or the number of persons under care. ©Copyright 2005 Nan McKay&Associates,Inc. Page 6-43 Adminplan 9/1/05 Unlimited copies may be made for internal use. Necessary and Reasonable Costs Child care expenses will be considered necessary if: (1) a family adequately explains how the care enables a family member to work, actively seek employment, or further his or her education, and (2)the family certifies, and the child care provider verifies, that the expenses are not paid or reimbursed by any other source. PHA Policy Child care expenses will be considered for the time required for the eligible activity plus reasonable transportation time. For child care that enables a family member to go to school, the time allowed may include not more than one study hour for each hour spent in class. To establish the reasonableness of child care costs, the PHA will use the schedule of child care costs from the local welfare agency. Families may present, and the PHA will consider,justification for costs that exceed typical costs in the area. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-44 Adminplan 9/1/05 Unlimited copies may be made for internal use. PART III: CALCULATING FAMILY SHARE AND PHA SUBSIDY 6-III.A. OVERVIEW OF RENT AND SUBSIDY CALCULATIONS TTP Formula [24 CFR 5.628] HUD regulations specify the formula for calculating the total tenant payment (TTP) for an assisted family. TTP is the highest of the following amounts, rounded to the nearest dollar: • 30 percent of the family's monthly adjusted income (adjusted income is defined in Part II) • 10 percent of the family's monthly gross income (annual income, as defined in Part I, divided by 12) • The welfare rent (in as-paid states only) • A minimum rent between $0 and $50 that is established by the PHA The PHA has authority to suspend and exempt families from minimum rent when a financial hardship exists, as defined in section 6-III.B. The amount that a family pays for rent and utilities (the family share) will never be less than the family's TTP but may be greater than the TTP depending on the rent charged for the unit the family selects. Welfare Rent[24 CFR 5.628] PHA Policy Welfare rent does not apply in this locality. Minimum Rent[24 CFR 5.630] PHA Policy The minimum rent for this locality is $25. Family Share [24 CFR 982.305(a)(5)] If a family chooses a unit with a gross rent (rent to owner plus an allow ce for tenant-paid utilities) that exceeds the PHA's applicable payment standard: I) th amily will pay more than the TTP, and (2) at initial occupancy the PHA may not approve tenancy if it would require the family share to exceed 40 percent of the family's monthly adjusted income. The income used for this determination must have been verified no earlier than 60 days before the family's voucher was issued. (For a discussion of the application of payment standards, see section 6- III.C.) ©Copyright 2005 Nan McKay&Associates,Inc. Page 6-45 Adminplan 9/1/05 Unlimited copies may be made for internal use. PHA Subsidy [24 CFR 982.505(b)] The PHA will pay a monthly housing assistance payment (HAP) for a family that is equal to the lower of(1)the applicable payment standard for the family minus the family's TTP or (2) the gross rent for the family's unit minus the TTP. (For a discussion of the application of payment standards, see section 6-III.C.) Utility Reimbursement [24 CFR 982.514(b)] When the PHA subsidy for a family exceeds the rent to owner,the family is due a utility reimbursement. HUD permits the PHA to pay the reimbursement to the family or directly to the utility provider. PHA Policy The PHA will make utility reimbursements to the family. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-46 Adminplan 9/1/05 Unlimited copies may be made for internal use. 6-III.B. FINANCIAL HARDSHIPS AFFECTING MINIMUM RENT [24 CFR 5.630] Overview If the PHA establishes a minimum rent greater than zero,the PHA must grant an exemption from the minimum rent if a family is unable to pay the minimum rent because of financial hardship. The financial hardship exemption applies only to families required to pay the minimum rent. If a family's TTP is higher than the minimum rent, the family is not eligible for a hardship exemption. If the PHA determines that a hardship exists, the family share is the highest of the remaining components of the family's calculated TTP. HUD-Defined Financial Hardship Financial hardship includes the following situations: (I) The family has lost eligibility for or is awaiting an eligibility determination for a federal, state, or local assistance program. This includes a family member who is a noncitizen lawfully admitted for permanent residence under the Immigration and Nationality Act who would be entitled to public benefits but for Title IV of the Personal Responsibility and Work Opportunity Act of 1996. PHA Policy A hardship will be considered to exist only if the loss of eligibility has an impact on the family's ability to pay the minimum rent. For a family waiting for a determination of eligibility,the hardship period will end as of the first of the month following(1) implementation of assistance, if approved, or(2) the decision to deny assistance. A family whose request for assistance is denied may request a hardship exemption based upon one of the other allowable hardship circumstances. (2) The family would be evicted because it is unable to pay the minimum rent. PHA Policy For a family to qualify under this provision, the cause of the potential eviction must be the family's failure to pay rent to the owner or tenant-paid utilities. (3) Family income has decreased because of changed family circumstances, including the loss of employment. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-47 Adminplan 9/1/05 Unlimited copies may be made for internal use. (4) A death has occurred in the family. PHA Policy In order to qualify under this provision, a family must describe how the death has created a financial hardship (e.g., because of funeral-related expenses or the loss of the family member's income). (5) The family has experienced other circumstances determined by the PHA. PHA Policy The PHA has not established any additional hardship criteria. m Copyright 2005 Nan McKay&Associates,Inc. Page 6-48 Adminplan 9/1/05 Unlimited copies may be made for internal use. Implementation of Hardship Exemption Determination of Hardship When a family requests a financial hardship exemption, the PHA must suspend the minimum rent requirement beginning the first of the month following the family's request. The PHA then determines whether the financial hardship exists and whether the hardship is temporary or long-term. PHA Policy The PHA defines temporary hardship as a hardship expected to last 90 days or less. Long term hardship is defined as a hardship expected to last more than 90 days. When the minimum rent is suspended, the family share reverts to the highest of the remaining components of the calculated TTP. The example below demonstrates the effect of the minimum rent exemption. Example: Impact of Minimum Rent Exemption Assume the PHA has established a minimum rent of$35. Family Share—No Hardship Family Share—With Hardship $0 30% of monthly adjusted income $0 30% of monthly adjusted income $15 10% of monthly gross income $15 10% of monthly gross income N/A Welfare rent N/A Welfare rent $35 Minimum rent $35 Minimum rent Minimum rent applies. Hardship exemption granted. TTP = $35 TTP = $15 PHA Policy To qualify for a hardship exemption, a family must submit a request for a hardship exemption in writing. The request must explain the nature of the hardship and how the hardship has affected the family's ability to pay the minimum rent. The PHA will make the determination of hardship within 30 calendar days. C Copyright 2005 Nan McKay&Associates,Inc. Page 6-49 Adminplan 9/1/05 Unlimited copies may be made for internal use. No Financial Hardship If the PHA determines there is no financial hardship, the PHA will reinstate the minimum rent and require the family to repay the amounts suspended. PHA Policy The PHA will require the family to repay the suspended amount within 30 calendar days of the PHA's notice that a hardship exemption has not been granted. Temporary Hardship If the PHA determines that a qualifying financial hardship is temporary, the PHA must suspend the minimum rent for the 90-day period beginning the first of the month following the date of the family's request for a hardship exemption. At the end of the 90-day suspension period, the family must resume payment of the minimum rent and must repay the PHA the amounts suspended. HUD requires the PHA to offer a reasonable repayment agreement, on terms and conditions established by the PHA. The PHA also may determine that circumstances have changed and the hardship is now a long-term hardship. PHA Policy The PHA will enter into a repayment agreement in accordance with the procedures found in Chapter 16 of this plan. m Copyright 2005 Nan McKay&Associates,Inc. Page 6-50 Adminplan 9/1/05 Unlimited copies may be made for internal use. Long-Term Hardship If the PHA determines that the financial hardship is long-term,the PHA must exempt the family from the minimum rent requirement for so long as the hardship continues. The exemption will apply from the first of the month following the family's request until the end of the qualifying hardship. When the financial hardship has been determined to be long-term, the family is not required to repay the minimum rent. PHA Policy The hardship period ends when any of the following circumstances apply: (1) At an interim or annual reexamination, the family's calculated TTP is greater than the minimum rent. (2) For hardship conditions based on loss of income,the hardship condition will continue to be recognized until new sources of income are received that are at least equal to the amount lost. For example, if a hardship is approved because a family no longer receives a$60/month child support payment,the hardship will continue to exist until the family receives at least $60/month in income from another source or once again begins to receive the child support. (3) For hardship conditions based upon hardship-related expenses, the minimum rent exemption will continue to be recognized until the cumulative amount exempted is equal to the expense incurred. ©Copyright 2005 Nan McKay&Associates,Inc. Page 6-51 Adminplan 9/1/05 Unlimited copies may be made for internal use. 6-III.C. APPLYING PAYMENT STANDARDS [24 CFR 982.505] Overview The PHA's schedule of payment standards is used to calculate housing assistance payments for HCV families. This section covers the application of the PHA's payment standards. The establishment and revision of the PHA's payment standard schedule are covered in Chapter 16. Payment standard is defined as "the maximum monthly assistance payment for a family assisted in the voucher program (before deducting the total tenant payment by the family)" [24 CFR 982.4(b)]. The payment standard for a family is the lower of(1) the payment standard for the family unit size, which is defined as the appropriate number of bedrooms for the family under the PHA's subsidy standards [24 CFR 982.4(b)], or (2) the payment standard for the size of the dwelling unit rented by the family. If the PHA has established an exception payment standard for a designated part of an FMR area and a family's unit is located in the exception area, the PHA must use the appropriate payment standard for the exception area. The PHA is required to pay a monthly housing assistance payment (HAP) for a family that is the lower of(1) the payment standard for the family minus the family's TTP or (2) the gross rent for the family's unit minus the TTP. If during the term of the HAP contract for a family's unit, the owner lowers the rent, the PHA will recalculate the HAP using the lower of the initial payment standard or the gross rent for the unit [HCV GB, p. 7-8]. -� • Changes in Payment Standards When the PHA revises its payment standards during the term of the HAP contract for a family's unit, it will apply the new payment standards in accordance with HUD regulations. Decreases If the amount on the payment standard schedule is decreased during the term of the HAP contract, the lower payment standard generally will be used beginning at the effective date of the family's second regular reexamination following the effective date of the decrease in the payment standard. The PHA will determine the payment standard for the family as follows: Step 1: At the first regular reexamination following the decrease in the payment standard, the PHA will determine the payment standard for the family using the lower of the payment standard for the family unit size or the size of the dwelling unit rented by the family. Step 2: The PHA will compare the payment standard from step 1 to the payment standard last used to calculate the monthly housing assistance payment for the family. The payment standard used by the PHA at the first regular reexamination following the decrease in the payment standard will be the higher of these two payment standards. The PHA will advise the family that the application of the lower payment standard will be deferred until the second regular reexamination following the effective date of the decrease in the payment standard. ©Copyright 2005 Nan McKay&Associates,Inc. Page 6-52 Adminplan 9/1/05 Unlimited copies may be made for internal use. Step 3: At the second regular reexamination following the decrease in the payment standard,the lower payment standard will be used to calculate the monthly housing assistance payment for the family unless the PHA has subsequently increased the payment standard, in which case the payment standard will be determined in accordance with procedures for increases in payment standards described below. Increases If the payment standard is increased during the term of the HAP contract, the increased payment standard will be used to calculate the monthly housing assistance payment for the family beginning on the effective date of the family's first regular reexamination on or after the effective date of the increase in the payment standard. Families requiring or requesting interim reexaminations will not have their HAP payments calculated using the higher payment standard until their next annual reexamination [HCV GB,p. 7-8]. Changes in Family Unit Size Irrespective of any increase or decrease in the payment standard, if the family unit size increases or decreases during the HAP contract term,the new family unit size must be used to determine the payment standard for the family beginning at the family's first regular reexamination following the change in family unit size. Reasonable Accommodation If a family requires a higher payment standard as a reasonable accommodation for a family member who is a person with disabilities, the PHA is allowed to establish a higher payment standard for the family within the basic range. Copyright 2005 Nan McKay&Associates,Inc. Page 6-53 Adminplan 9/1/05 Unlimited copies may be made for internal use. 6-III.D. APPLYING UTILITY ALLOWANCES [24 CFR 982.517] Overview A PHA-established utility allowance schedule is used in determining family share and PHA subsidy. The PHA must use the appropriate utility allowance for the size of dwelling unit actually leased by a family rather than the voucher unit size for which the family qualifies using PHA subsidy standards. See Chapter 5 for information on the PHA's subsidy standards. For policies on establishing and updating utility allowances, see Chapter 16. Reasonable Accommodation HCV program regulations require a PHA to approve a utility allowance amount higher than shown on the PHA's schedule if a higher allowance is needed as a reasonable accommodation for a family member with a disability. For example, if a family member with a disability requires such an accommodation,the PHA will approve an allowance for air-conditioning, even if the PHA has determined that an allowance for air-conditioning generally is not needed. The family must request the higher allowance and provide the PHA with an explanation of the need for the reasonable accommodation and information about the amount of additional allowance required [HCV GB,p. 18-8]. Utility Allowance Revisions At reexamination, the PHA must use the PHA current utility allowance schedule [24 CFR 982.517(d)(2)]. PHA Policy .Revised utility allowances will be applied to a family's rent and subsidy calculations at the first annual reexamination that is effective after the allowance is adopted. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-54 Adminplan 9/1/05 Unlimited copies may be made for internal use. 6-III.E. PRORATED ASSISTANCE FOR MIXED FAMILIES [24 CFR 5.520] HUD regulations prohibit assistance to ineligible family members. A mixed family is one that includes at least one U.S. citizen or eligible immigrant and any number of ineligible family members. The PHA must prorate the assistance provided to a mixed family. The PHA will first determine assistance as if all family members were eligible and then prorate the assistance based upon the percentage of family members that actually are eligible. For example, if the PHA subsidy for a family is calculated at $500 and two of four family members are ineligible,the PHA subsidy would be reduced to $250. C Copyright 2005 Nan McKay&Associates,Inc. Page 6-55 Adminplan 9/1/05 Unlimited copies may be made for internal use. • ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-56 Adminplan 9/1/05 Unlimited copies may be made for internal use. EXHIBIT 6-1: ANNUAL INCOME INCLUSIONS 24 CFR 5.609 (a) Annual income means all amounts, (3) Interest, dividends, and other net income of monetary or not, which: any kind from real or personal property. Expenditures for amortization of capital (1) Go to, or on behalf of,the family head or indebtedness shall not be used as deductions in spouse (even if temporarily absent) or to any determining net income. An allowance for other family member; or depreciation is permitted only as authorized in (2) Are anticipated to be received from a paragraph(b)(2) of this section. Any source outside the family during the 12-month withdrawal of cash or assets from an period following admission or annual investment will be included in income, except reexamination effective date; and to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where (3) Which are not specifically excluded in the family has net family assets in excess of paragraph (c) of this section. $5,000, annual income shall include the (4) Annual income also means amounts greater of the actual income derived from all derived (during the 12-month period) from net family assets or a percentage of the value assets to which any member of the family has of such assets based on the current passbook access. savings rate, as determined by HUD; (b)Annual income includes, but is not limited (4)The full amount of periodic amounts to: received from Social Security, annuities, insurance policies, retirement funds, pensions, (1) The full amount, before any payroll disability or death benefits, and other similar deductions, of wages and salaries, overtime types of periodic receipts, including a lump- pay, commissions, fees, tips and bonuses, and sum amount or prospective monthly amounts other compensation for personal services; for the delayed start of a periodic amount (2) The net income from the operation of a (except as provided in paragraph(c)(14) of business or profession. Expenditures for this section); business expansion or amortization of capital (5) Payments in lieu of earnings, such as indebtedness shall not be used as deductions in unemployment and disability compensation, determining net income. An allowance for worker's compensation and severance pay depreciation of assets used in a business or (except as provided in paragraph(c)(3) of this profession may be deducted, based on straight section); line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family; Copyright 2005 Nan McKay&Associates,Inc. Page 6-57 Adminplan 9/1/05 Unlimited copies may be made for internal use. (6) Welfare assistance payments. HHS DEFINITION OF (i) Welfare assistance payments made under "ASSISTANCE" the Temporary Assistance for Needy Families 45 CFR: GENERAL TEMPORARY (TANF)program are included in annual ASSISTANCE FOR NEEDY FAMILIES income only to the extent such payments: 260.31 What does the term "assistance" (A) Qualify as assistance under the TANF mean? program definition at 45 CFR 260.311; and (a)(l) The term"assistance" includes cash, (B) Are not otherwise excluded under payments, vouchers, and other forms of paragraph(c) of this section. benefits designed to meet a family's (ii) If the welfare assistance payment includes ongoing basic needs (i.e., for food, clothing, an amount specifically designated for shelter shelter, utilities, household goods, personal and utilities that is subject to adjustment by the care items, and general incidental welfare assistance agency in accordance with expenses). the actual cost of shelter and utilities, the (2) It includes such benefits even when they amount of welfare assistance income to be are: included as income shall consist of: (i) Provided in the form of payments by a (A) The amount of the allowance or grant TANF agency, or other agency on its exclusive of the amount specifically behalf, to individual recipients; and designated for shelter or utilities; plus (ii) Conditioned on participation in work (B) The maximum amount that the welfare experience or community service (or any assistance agency could in fact allow the other work activity under 261.30 of this family for shelter and utilities. If the family's chapter). welfare assistance is ratably reduced from the standard of need by applying a percentage, the (3) Except where excluded under paragraph amount calculated under this paragraph shall (b) of this section, it also includes be the amount resulting from one application supportive services such as transportation of the percentage. and child care provided to families who are not employed. (7) Periodic and determinable allowances, such as alimony and child support payments, (b) [The definition of"assistance] and regular contributions or gifts received excludes: (1)Nonrecurrent, short-term from organizations or from persons not benefits that: residing in the dwelling; (i) Are designed to deal with a specific (8) All regular pay, special pay and allowances crisis situation or episode of need; of a member of the Armed Forces (except as (ii)Are not intended to meet recurrent or provided in paragraph (c)(7) of this section) ongoing needs; and (iii) Will not extend beyond four months. 1 Text of 45 CFR 260.31 follows. ©Copyright 2005 Nan McKay&Associates,Inc. Page 6-58 Adminplan 9/1/05 Unlimited copies may be made for internal use. (2) Work subsidies (i.e., payments to (6) Services such as counseling, case employers or third parties to help cover the management,peer support, child care costs of employee wages, benefits, information and referral, transitional supervision, and training); services,job retention,job advancement, (3) and other employment-related services that Supportive services such as child care do not provide basic income support; and and transportation provided to families who are employed; (7) Transportation benefits provided under a Job Access or Reverse Commute project, (4) Refundable earned income tax credits; pursuant to section 404(k) of[the Social (5) Contributions to, and distributions from, Security] Act,to an individual who is not Individual Development Accounts; otherwise receiving assistance. • ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-59 Adminplan 9/1/05 Unlimited copies may be made for internal use. EXHIBIT 6-2: ANNUAL INCOME EXCLUSIONS 24 CFR 5.609 (c) Annual income does not include the (iii) Amounts received by a participant in other following: publicly assisted programs which are (1) Income from employment of children specifically for or in reimbursement of out-of- (including foster children) under the age of 18 pocket expenses incurred (special equipment, clothing,transportation, child care, etc.) and years; which are made solely to allow participation in (2) Payments received for the care of foster a specific program; children or foster adults (usually persons with (iv) Amounts received under a resident service disabilities, unrelated to the tenant family, who stipend. A resident service stipend is a modest are unable to live alone); amount (not to exceed $200 per month) (3) Lump-sum additions to family assets, such received by a resident for performing a service as inheritances, insurance payments (including for the PHA or owner, on a part-time basis, payments under health and accident insurance that enhances the quality of life in the and worker's compensation), capital gains and development. Such services may include,but settlement for personal or property losses are not limited to, fire patrol, hall monitoring, (except as provided in paragraph(b)(5) of this lawn maintenance, resident initiatives section); coordination, and serving as a member of the PHA's governing board. No resident may (4) Amounts received by the family that are • specifically for, or in reimbursement of, the receive more than one such stipend during the same period of time; cost of medical expenses for any family member; (v) Incremental earnings and benefits resulting • to any family member from participation in (5) Income of a live-in aide, as defined in Sec. 5.403; qualifying State or local employment training programs (including training programs not (6) The full amount of student financial affiliated with a local government) and assistance paid directly to the student or to the training of a family member as resident educational institution; management staff. Amounts excluded by this provision must be received under employment (7) The special pay to a family member training programs with clearly defined goals serving in the Armed Forces who is exposed to and objectives, and are excluded only for the hostile fire; period during which the family member (8) (i) Amounts received under training participates in the employment training programs funded by HUD; program; (ii) Amounts received by a person with a (9) Temporary, nonrecurring or sporadic disability that are disregarded for a limited income (including gifts); time for purposes of Supplemental Security (10) Reparation payments paid by a foreign Income eligibility and benefits because they government pursuant to claims filed under the are set aside for use under a Plan to Attain laws of that government by persons who were Self-Sufficiency (PASS); persecuted during the Nazi era; ®Copyright 2005 Nan McKay&Associates, Inc. Page 6-60 Adminplan 9/1/05 Unlimited copies may be made for internal use. (11) Earnings in excess of$480 for each full- Sources of Income Excluded by Federal time student 18 years old or older(excluding Statute from Consideration as Income the head of household and spouse); for Purposes of Determining Eligibility (12) Adoption assistance payments in excess or Benefits of$480 per adopted child; a) The value of the allotment provided (13) [Reserved] to an eligible household under the Food Stamp Act of 1977 (7 U.S.C. 2017 (b)); (14) Deferred periodic amounts from supplemental security income and social b) Payments to Volunteers under the security benefits that are received in a lump Domestic Volunteer Services Act of sum amount or in prospective monthly 1973 (42 U.S.C. 5044(g), 5058); amounts. c) Payments received under the Alaska (15)Amounts received by the family in the Native Claims Settlement Act(43 form of refunds or rebates under State or local U.S.C. 1626(c)); law for property taxes paid on the dwelling d) Income derived from certain unit; submarginal land of the United States (16) Amounts paid by a State agency to a that is held in trust for certain Indian family with a member who has a tribes (25 U.S.C. 459e); developmental disability and is living at home e) Payments or allowances made under to offset the cost of services and equipment the Department of Health and Human needed to keep the developmentally disabled Services' Low-Income Home Energy family member at home; or Assistance Program (42 U.S.C. .-� (17) Amounts specifically excluded by any 8624(f)); other Federal statute from consideration as income for purposes of determining eligibility f) Payments received under programs or benefits under a category of assistance funded in whole or in part under the Job Training Partnership Act (29 U.S.C. programs that includes assistance under any1552(b) program to which the exclusions set forth in 24 eferenc (effective July 1, 2000, CFR 5.609(c) apply. A notice will be references to Job Training Partnership ( ) pp y' Act shall be deemed to refer to the published in the Federal Register and corresponding provision of the distributed to PHAs and housing owners Workforce Investment Act of 1998 (29 identifying the benefits that qualify for this U.S.C. 2931); exclusion. Updates will be published and distributed when necessary. [See the following g) Income derived from the disposition chart for a list of benefits that qualify for this of funds to the Grand River Band of exclusion.] Ottawa Indians (Pub.L- 94-540, 90 Stat. 2503-04); ©Copyright 2005 Nan McKay&Associates,Inc. Page 6-61 Adminplan 9/1/05 Unlimited copies may be made for internal use. h) The first $2000 of per capita shares n) Earned income tax credit(EITC) received from judgment funds awarded refund payments received on or after by the Indian Claims Commission or the January 1, 1991 (26 U.S.C. 32W); U. S. Claims Court, the interests of o) Payments by the Indian Claims individual Indians in trust or restricted Commission to the Confederated Tribes lands, including the first $2000 per year and Bands of Yakima Indian Nation or of income received by individual Indians the Apache Tribe of Mescalero from funds derived from interests held in Reservation (Pub. L. 95-433); such trust or restricted lands (25 U.S.C. 1407-1408); p) Allowances, earnings and payments to AmeriCorps participants under the i) Amounts of scholarships funded under National and Community Service Act of title IV of the Higher Education Act of 1990 (42 U.S.C. 12637(d)); 1965, including awards under federal work-study program or under the Bureau q) Any allowance paid under the of Indian Affairs student assistance provisions of 38 U.S.C. 1805 to a child programs (20 U.S.C. 1087uu); suffering from spina bifida who is the child of a Vietnam veteran (38 U.S.C. j) Payments received from programs 1805); funded under Title V of the Older Americans Act of 1985 (42 U.S.C. r) Any amount of crime victim 3056(f)); compensation (under the Victims of Crime Act)received through crime k) Payments received on or after January victim assistance (or payment or 1, 1989, from the Agent Orange reimbursement of the cost of such Settlement Fund or any other fund assistance) as determined under the established pursuant to the settlement in Victims of Crime Act because of the In Re Agent-product liability litigation: commission of a crime against the M.D.L. No. 381 (E.D.N.Y.); applicant under the Victims of Crime Act 1) Payments received under the Maine (42 U.S.C. 10602); and Indian Claims Settlement Act of 1980 s) Allowances, earnings and payments to (25 U.S.C. 1721); individuals participating in programs m) The value of any child care provided under the Workforce Investment Act of or arranged (or any amount received as 1998 (29 U.S.C. 2931). payment for such care or reimbursement for costs incurred for such care) under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858q); ©Copyright 2005 Nan McKay&Associates,Inc. Page 6-62 Adminplan 9/1/05 Unlimited copies may be made for internal use. EXHIBIT 6-3: TREATMENT OF FAMILY ASSETS 24 CFR 5.603(b) Net Family Assets (1)Net cash value after deducting reasonable (3) In determining net family assets, PHAs or costs that would be incurred in disposing of owners, as applicable, shall include the value real property, savings, stocks, bonds, and other of any business or family assets disposed of by forms of capital investment, excluding an applicant or tenant for less than fair market interests in Indian trust land and excluding value (including a disposition in trust, but not equity accounts in HUD homeownership in a foreclosure or bankruptcy sale) during the programs. The value of necessary items of two years preceding the date of application for personal property such as furniture and the program or reexamination, as applicable, in automobiles shall be excluded. excess of the consideration received therefor. In the case of a disposition as part of a (2) In cases where a trust fund has been separation or divorce settlement, the established and the trust is not revocable by, or disposition will not be considered to be for less under the control of, any member of the family than fair market value if the applicant or tenant or household,the value of the trust fund will receives important consideration not not be considered an asset so long as the fund measurable in dollar terms. continues to be held in trust. Any income distributed from the trust fund shall be counted (4) For purposes of determining annual income when determining annual income under Sec. under Sec. 5.609, the term "net family assets" 5.609. does not include the value of a home currently being purchased with assistance under part 982, subpart M of this title. This exclusion is limited to the first 10 years after the purchase date of the home. ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-63 Adminplan 9/1/05 Unlimited copies may be made for internal use. EXHIBIT 6-4: EARNED INCOME DISALLOWANCE FOR PERSONS WITH DISABILITIES 24 CFR 5.617 Self-sufficiency incentives for persons with disabilities—Disallowance of increase in annual income. (a) Applicable programs. The disallowance of (3) Whose annual income increases, as a increase in annual income provided by this result of new employment or increased section is applicable only to the following earnings of a family member who is a person programs: HOME Investment Partnerships with disabilities, during or within six months Program(24 CFR part 92); Housing after receiving assistance, benefits or services Opportunities for Persons with AIDS (24 CFR under any state program for temporary part 574); Supportive Housing Program (24 assistance for needy families funded under CFR part 583); and the Housing Choice Part A of Title IV of the Social Security Act, Voucher Program (24 CFR part 982). as determined by the responsible entity in (b) Definitions. The following definitions consultation with the local agencies apply forpurposes of this section. administering temporary assistance for needy pp y families (TANF) and Welfare-to-Work Disallowance. Exclusion from annual income. (WTW)programs. The TANF program is not limited to monthly income maintenance, but Previously unemployed includes a person with disabilities who has earned, in the twelve also includes such benefits and services as one-time payments, wage subsidies and months previous to employment, no more than transportation assistance--provided that the would be received for 10 hours of work per total amount over a six-month period is at least week for 50 weeks at the established minimum $500. wage. Qualified family. A family residing in housing (c) Disallowance of increase in annual income— assisted under one of the programs listed in paragraph (a) of this section or receiving (1) Initial twelve month exclusion. During the tenant-based rental assistance under one of the cumulative twelve month period beginning on programs listed in paragraph (a) of this the date a member who is a person with section. disabilities of a qualified family is first employed or the family first experiences an (1) Whose annual income increases as a result of increase in annual income attributable to employment of a family member who is a person with disabilities and who was employment, the responsible entity must previously unemployed for one or more years exclude from annual income (as defined in the regulations governing the applicable program prior to employment; listed in paragraph(a) of this section) of a (2) Whose annual income increases as a result qualified family any increase in income of the of increased earnings by a family member who family member who is a person with is a person with disabilities during disabilities as a result of employment over participation in any economic self-sufficiency prior income of that family member. or other job training program; or ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-64 Adminplan 9/1/05 Unlimited copies may be made for internal use. (2) Second twelve month exclusion and phase- (3) Maximum four year disallowance. The in. During the second cumulative twelve disallowance of increased income of an month period after the date a member who is a individual family member who is a person person with disabilities of a qualified family is with disabilities as provided in paragraph first employed or the family first experiences (c)(1) or (c)(2) is limited to a lifetime 48 an increase in annual income attributable to month period. The disallowance only applies employment, the responsible entity must for a maximum of twelve months for exclude from annual income of a qualified disallowance under paragraph (c)(l) and a family fifty percent of any increase in income maximum of twelve months for disallowance of such family member as a result of under paragraph(c)(2), during the 48 month employment over income of that family period starting from the initial exclusion under member prior to the beginning of such paragraph(c)(1) of this section. employment. (d) Inapplicability to admission. The disallowance of increases in income as a result of employment of persons with disabilities under this section does not apply for purposes of admission to the program (including the determination of income eligibility or any income targeting that may be applicable). Copyright 2005 Nan McKay&Associates,Inc. Page 6-65 Adminplan 9/1/05 Unlimited copies may be made for internal use. EXHIBIT 6-5: THE EFFECT OF WELFARE BENEFIT REDUCTION 24 CFR 5.615 Public housing program and Section 8 tenant-based assistance program: How welfare benefit reduction affects family income. (a) Applicability. This section applies to (i) at expiration of a lifetime or other time covered families who reside in public housing limit on the payment of welfare benefits; (part 960 of this title) or receive Section 8 (ii) because a family member is not able to tenant-based assistance (part 982 of this title). obtain employment, even though the family (b) Definitions. The following definitions member has complied with welfare agency apply for purposes of this section: economic self-sufficiency or work activities Covered families. Families who receive requirements; or welfare assistance or other public assistance (iii) because a family member has not benefits ("welfare benefits") from a State or complied with other welfare agency other public agency ("welfare agency") under a requirements. program for which Federal, State, or local law (c) Imputed welfare income. requires that a member of the family must participate in an economic self-sufficiency (1) A family's annual income includes the program as a condition for such assistance. amount of imputed welfare income (because of Economic self-sufficiency program. See a specified welfare benefits reduction, as definition at Sec. 5.603. specified in notice to the PHA by the welfare agency), plus the total amount of other annual Imputed welfare income. The amount of income as determined in accordance with Sec. annual income not actually received by a 5.609. • family, as a result of a specified welfare (2) At the request of the PHA, the welfare benefit reduction, that is nonetheless included in the family's annual income for purposes of agency will inform the PHA in writing of the determining rent. amount and term of any specified welfare benefit reduction for a family member, and the Specified welfare benefit reduction. reason for such reduction, and will also inform (1) A reduction of welfare benefits by the the PHA of any subsequent changes in the welfare agency, in whole or in part, for a term or amount of such specified welfare family member, as determined by the welfare benefit reduction. The PHA will use this agency, because of fraud by a family member information to determine the amount of in connection with the welfare program; or imputed welfare income for a family. because of welfare agency sanction against a (3) A family's annual income includes imputed family member for noncompliance with a welfare income in family annual income, as welfare agency requirement to participate in an determined at the PHA's interim or regular economic self-sufficiency program. reexamination of family income and (2) "Specified welfare benefit reduction" does composition, during the term of the welfare benefits not include a reduction or termination of reduction (as specified in information welfare benefits by the welfare agency: provided to the PHA by the welfare agency). ®Copyright 2005 Nan McKay&Associates,Inc. Page 6-66 Adminplan 9/1/05 Unlimited copies may be made for internal use. (4) The amount of the imputed welfare income basis for the PHA determination of the amount is offset by the amount of additional income a of imputed welfare income. Such notice shall family receives that commences after the time also state that if the family does not agree with the sanction was imposed. When such the PHA determination, the family may additional income from other sources is at request an informal hearing on the least equal to the imputed determination under the PHA hearing (5) The PHA may not include imputed welfare procedure. income in annual income if the family was not (e) PHA relation with welfare agency. an assisted resident at the time of sanction. (1) The PHA must ask welfare agencies to (d) Review of PHA decision. inform the PHA of any specified welfare (1) Public housing. If a public housing tenant benefits reduction for a family member, the claims that the PHA has not correctly reason for such reduction, the term of any such reduction, and any subsequent welfare agency calculated the amount of imputed welfare income in accordance with HUD requirements, determination affecting the amount or term of and if the PHA denies the family's request to a specified welfare benefits reduction. If the welfare agency determines a specified modify such amount, the PHA shall give the welfare tenant written notice of such denial, with a benefits reduction for a family member, and brief explanation of the basis for the PHA gives the PHA written notice of such determination of the amount of imputed reduction, the family's annual incomes shall welfare income. The PHA notice shall also include the imputed welfare income because of state that if the tenant does not agree with the the specified welfare benefits reduction. PHA determination,the tenant may request a (2) The PHA is responsible for determining grievance hearing in accordance with part 966, the amount of imputed welfare income that is subpart B of this title to review the PHA included in the family's annual income as a determination. The tenant is not required to result of a specified welfare benefits reduction pay an escrow deposit pursuant to Sec. as determined by the welfare agency, and 966.55(e) for the portion of tenant rent specified in the notice by the welfare agency to attributable to the imputed welfare income in the PHA. However, the PHA is not responsible order to obtain a grievance hearing on the for determining whether a reduction of welfare PHA determination. benefits by the welfare agency was correctly (2) Section 8 participant. A participant in the determined by the welfare agency in accordance with welfare program requirements Section 8 tenant-based assistance program may request an informal hearing, in and procedures, nor for providing the accordance with Sec. 982.555 of this title, to opportunity for review or hearing on such review the PHA determination of the amount welfare agency determinations. of imputed welfare income that must be (3) Such welfare agency determinations are included in the family's annual income in the responsibility of the welfare agency, and accordance with this section. If the family the family may seek appeal of such claims that such amount is not correctly determinations through the welfare agency's calculated in accordance with HUD normal due process procedures. The PHA shall requirements, and if the PHA denies the be entitled to rely on the welfare agency notice family's request to modify such amount, the to the PHA of the welfare agency's PHA shall give the family written notice of determination of a specified welfare benefits such denial, with a brief explanation of the reduction. Copyright 2005 Nan McKay&Associates,Inc. Page 6-67 Adminplan 9/1/05 Unlimited copies may be made for internal use. ©Copyright 2005 Nan McKay&Associates,Inc. Page 6-68 Adminplan 9/1/05 Unlimited copies may be made for internal use. Hello