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MINUTES - 07092024 - HA Complete Min Pkt
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The Plan is consistent with the applicable comprehensive housing affordability strategy (or any plan incorporating such strategy) for the jurisdiction in which the PHA is located (24 CFR § 91.2). 2. The Plan contains a certification by the appropriate State or local officials that the Plan is consistent with the applicable Consolidated Plan, which includes a certification that requires the preparation of an Analysis of Impediments (AI) to Fair Housing Choice, or Assessment of Fair Housing (AFH) when applicable, for the PHA's jurisdiction and a description of the manner in which the PHA Plan is consistent with the applicable Consolidated Plan (24 CFR §§ 91.2, 91.225, 91.325, and 91.425). 3. The PHA has established a Resident Advisory Board or Boards, the membership of which represents the residents assisted by the PHA, consulted with this Resident Advisory Board or Boards in developing the Plan, including any changes or revisions to the policies and programs identified in the Plan before they were implemented, and considered the recommendations of the RAB (24 CFR 903.13). The PHA has included in the Plan submission a copy of the recommendations made by the Resident Advisory Board or Boards and a description of the manner in which the Plan addresses these recommendations. 4. The PHA provides assurance as part of this certification that: (i) The Resident Advisory Board had an opportunity to review and comment on the changes to the policies and programs before implementation by the PHA; (ii) The changes were duly approved by the PHA Board of Directors (or similar governing body); and (iii) The revised policies and programs are available for review and inspection, at the principal office of the PHA during normal business hours. 5. The PHA made the proposed Plan and all information relevant to the public hearing available for public inspection at least 45 days before the hearing, published a notice that a hearing would be held and conducted a hearing to discuss the Plan and invited public comment. 6. The PHA certifies that it will carry out the public housing program of the agency in conformity with title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d-2000d—4), the Fair Housing Act (42 U.S.C. 3601-19), Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), title II of the Americans with Disabilities Act (42 U.S.C. 12101 et seq.), and other applicable civil rights requirements and that it will affirmatively further fair housing in the administration of the program. In addition, if it administers a Housing Choice Voucher Program, the PHA certifies that it will administer the program in conformity with the Fair Housing Act, title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, title II of the Americans with Disabilities Act, and other applicable civil rights requirements, and that it will affirmatively further fair housing in the administration of the program. 7. The PHA will affirmatively further fair housing, which means that it will take meaningful actions to further the goals identified in the Assessment of Fair Housing (AFH) conducted in accordance with the requirements of 24 CFR § 5.150 through 5.180, that it will take no action that is materially inconsistent with its obligation to affirmatively further fair housing, and that it will address fair housing issues and contributing factors in its programs, in accordance with 24 CFR § 903.7(o)(3). The PHA will fulfill the requirements at 24 CFR § 903.7(o) and 24 CFR § 903.15(d). Until such time as the PHA is required to submit an AFH, the PHA will fulfill the requirements at 24 CFR § 903.7(o) promulgated prior to August 17, 2015, which means that it examines its programs or proposed programs; identifies any impediments to fair housing choice within those programs; addresses those impediments in a reasonable fashion in view of the resources available; works with local jurisdictions to implement any of the jurisdiction’s initiatives to affirmatively further fair housing that require the PHA’s involvement; and maintains records reflecting these analyses and actions. 8. For PHA Plans that include a policy for site-based waiting lists: x The PHA regularly submits required data to HUD's 50058 PIC/IMS Module in an accurate, complete and timely manner (as specified in PIH Notice 2011-65); 8 ___________________________________________________________________________________________________________ Page 2 of 3 form HUD-50077-ST-HCV-HP (3/31/2024) x The system of site-based waiting lists provides for full disclosure to each applicant in the selection of the development in which to reside, including basic information about available sites; and an estimate of the period of time the applicant would likely have to wait to be admitted to units of different sizes and types at each site; x Adoption of a site-based waiting list would not violate any court order or settlement agreement or be inconsistent with a pending complaint brought by HUD; x The PHA shall take reasonable measures to assure that such a waiting list is consistent with affirmatively furthering fair housing; and x The PHA provides for review of its site-based waiting list policy to determine if it is consistent with civil rights laws and certifications, as specified in 24 CFR 903.7(o)(1). 9. The PHA will comply with the prohibitions against discrimination on the basis of age pursuant to the Age Discrimination Act of 1975. 10. In accordance with 24 CFR § 5.105(a)(2), HUD’s Equal Access Rule, the PHA will not make a determination of eligibility for housing based on sexual orientation, gender identify, or marital status and will make no inquiries concerning the gender identification or sexual orientation of an applicant for or occupant of HUD-assisted housing. 11. The PHA will comply with the Architectural Barriers Act of 1968 and 24 CFR Part 41, Policies and Procedures for the Enforcement of Standards and Requirements for Accessibility by the Physically Handicapped. 12. The PHA will comply with the requirements of Section 3 of the Housing and Urban Development Act of 1968, Employment Opportunities for Low-or Very-Low Income Persons, and with its implementing regulation at 24 CFR Part 135. 13. The PHA will comply with acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and implementing regulations at 49 CFR Part 24 as applicable. 14. The PHA will take appropriate affirmative action to award contracts to minority and women's business enterprises under 24 CFR 5.105(a). 15. The PHA will provide the responsible entity or HUD any documentation that the responsible entity or HUD needs to carry out its review under the National Environmental Policy Act and other related authorities in accordance with 24 CFR Part 58 or Part 50, respectively. 16. With respect to public housing the PHA will comply with Davis-Bacon or HUD determined wage rate requirements under Section 12 of the United States Housing Act of 1937 and the Contract Work Hours and Safety Standards Act. 17. The PHA will keep records in accordance with 2 CFR 200.333 and facilitate an effective audit to determine compliance with program requirements. 18. The PHA will comply with the Lead-Based Paint Poisoning Prevention Act, the Residential Lead-Based Paint Hazard Reduction Act of 1992, and 24 CFR Part 35. 19. The PHA will comply with the policies, guidelines, and requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Financial Assistance, including but not limited to submitting the assurances required under 24 CFR §§ 1.5, 3.115, 8.50, and 107.25 by submitting an SF-424, including the required assurances in SF-424B or D, as applicable. 20. The PHA will undertake only activities and programs covered by the Plan in a manner consistent with its Plan and will utilize covered grant funds only for activities that are approvable under the regulations and included in its Plan. 21. All attachments to the Plan have been and will continue to be available at all times and all locations that the PHA Plan is available for public inspection. All required supporting documents have been made available for public inspection along with the Plan and additional requirements at the primary business office of the PHA and at all other times and locations identified by the PHA in its PHA Plan and will continue to be made available at least at the primary business office of the PHA. 22. The PHA certifies that it is in compliance with applicable Federal statutory and regulatory requirements, including the Declaration of Trust(s). _Housing Authority of the County of Contra Costa_ ___CA011_________________________________ PHA Name PHA Number/HA Code __X___ Annual PHA Plan for Fiscal Year 2025___ _____ 5-Year PHA Plan for Fiscal Years 20____ - 20____ I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802). Name of Executive Director Joseph Villarreal Name Board Chairman - Federal Glover Signature Date 07/09/2024 Signature Date 07/09/2024 9 ___________________________________________________________________________________________________________ Page 3 of 3 form HUD-50077-ST-HCV-HP (3/31/2024) ͳʹǡǤǤǡ ͳͲͳ Ǥǡͳʹǡ Ǥ Ǥ Ǥ ǡǡ Ǥ ͲǤͳǡ ǡ ǡǡ Ǥ ǡ ǡ Ǥ 10 Attachment B.1. Summary of July, 2024 Administrative Plan Changes In addition to numerous grammatical changes, edits were made to the standard HUD language in the plan that introduces the subject matter. These are not policy changes but regulatory edits from the Code of Federal Regulations. The following substantial changes were made to the Housing Choice Voucher Program Administrative Plan as it pertains to HACCC Policy: x Added Language to replace all references to Housing Quality Standards (HQS) with National Standards for the Physical Inspection of Real Estate (NSPIRE) x Added and clarified existing language regarding Fair Housing complaints indicating when and how to file them as well as added language regarding VAWA complaints. x Added language that indicates applicants cannot be receiving a duplicative subsidy as well as meet the net asset and property ownership restrictions in order to qualify for housing assistance. x Revised the definition of family to include otherwise eligible youth between the ages of 18 and 24 who have or will leave foster care within 90 days and is homeless or at risk of becoming homeless at the age of 16 or older. x Added language that permits an HCV voucher to be issued to a surviving partner of the VASH Voucher who is the VAWA victim once the VASH participant’s voucher is terminated. If one is not available the surviving partner will be eligible to continue to use the VASH voucher until such a time as the HCV voucher is available. x Added language that denies admission to the rental assistance programs if a family revokes their consent permitting HACCC to access their financial records from financial institutions. x Families with Net Family Assets of more than $100,000 and/or the family has a present ownership interest in, a legal right to reside in, and the effective legal authority to sell the real property (based on laws of the state or locality in which the property is located) that is suitable for occupancy by the family as a residence will not be eligible to continue to receive rental assistance and will be terminated from program participation. HACCC shall provide a grace period of six months from the effective date of the Annual or Interim Reexamination within which the assisted family may cure the noncompliance with the Net Asset threshold. Moreover, families with such net assets shall be denied admission to the rental assistance programs. x Under the amended 1937 Act, families that have a present ownership interest in, a legal right to reside in, and the legal authority to sell real property that is suitable for occupancy for the family (unless the person is a victim of domestic violence or if the family is offering the 11 property for sale) are not eligible to receive rental assistance. A present ownership interest would include any title to a home, any ownership of membership shares in a cooperative, and any lease or other right to occupy a home or cooperative, all as defined by the State or local laws of the jurisdiction where the property is located. x This provision would not include the right to purchase title to a residence under a lease- purchase agreement. In addition, the statutory language excludes from net family assets (1) real property for which the family does not have the effective legal authority to sell in the jurisdiction in which the property is located and (2) equity in property for which the family is currently receiving homeownership assistance through the HCV program from a PHA. x Clarified what is meant by “immediate vicinity”, when criminal background checks indicate criminal activity that deprives residents of the peaceful enjoyment of the premises in the immediate vicinity, to be a three-block radius. x Additions to the HCV wait list that are formalities for 3rd part referrals for special funding sources such as Mainstream, Family Unification/Foster Youth Initiative, VASH, Stability Vouchers, Emergency Housing Vouchers or other similar funding sources that involve third- party agencies such as Health, Housing and Homeless Services or Employment and Human Services, etc, will not require public notice as required for other wait list opening efforts. x Added language that HACCC will consider VAWA victimization as a condition for considering whether to admit or deny applicants. x Added victim of VAWA as a reason for being reinstated to a waiting list if an applicant fails to respond to any notice regarding their waiting list status. x Added language that re-defines Annual Income to mean all amounts received, not the amount a family is entitled to receive but did not receive as well as actual anticipated income from assets. x Updated the list of Excluded Income sources pursuant to 24 CFR 5.609. x Clarified that temporarily absent household members’ incomes will be included in the household income. x HACCC shall use anticipated income to calculate annual income at initial and interim certifications. If unable to determine anticipated income, HACCC shall review historical data for patterns of employment, paid benefits, and receipt of other income and use the results of this analysis to establish annual income. x Clarified that HACCC must first determine the family’s income for the previous 12-month period and use this amount as the family income for annual reexaminations; however, adjustments to reflect current income must be made. x Clarified the definition of Earned Income for the purposes of calculating annual income. 12 x HOTMA removed the statutory authority for EID, so HUD cannot retain the disallowance once the statutory change is in effect, which will be upon the effective date of this final rule. However, if a family is receiving a disallowance of increase in annual income in accordance with §§ 5.617(c) and 960.255(b) on this final rule’s effective date, participants should be able to benefit from EID for the full 24 months. EID will be available only to families that are eligible for and participating in the program on the effective date of the final rule; no new families may be added. The EID will sunset on January 1, 2026. In no circumstances will a family member’s exclusion period continue past January 1, 2026. x Clarified the definition of an Independent Contactor as it applies to included income for annual income calculation purposes. x HUD codifies a Federally mandated income exclusion under section 479B of the Higher Education Act of 1965 (HEA) (20 U.S.C. 1087uu). Section 5.609(b)(9)(i) of the final rule excludes assistance that section 479B of the HEA requires to be excluded from a family’s income. This provision excludes from income assistance to students under Title IV of the HEA even assistance in excess of tuition and required fees and charges. Student financial assistance must be a grant or scholarship received from the Federal government; a State, Tribal, or local government; a private foundation registered as a nonprofit; a business entity; or an institution of higher education. Furthermore, the grant or scholarship must be either expressly for tuition, book, supplies, room and board, or other fees required and charged to the student by the education institution; expressly to assist a student with the costs of higher education; or expressly to assist a student who is not the head of household or spouse with the reasonable and actual costs of housing while attending the education institution and not residing in an assisted unit. x The final rule states that student financial assistance does not include gifts from family or friends. In other words, gifts that are recurring and otherwise do not meet the criteria for the income exclusion for gifts would be counted as income under the final rule, regardless of whether the recipient of the gift is a student. x HUD is modifying the language to exclude ‘‘nonrecurring’’ income received in the previous year that will not be repeated in§ 5.609(b)(24). However, earnings as an independent contractor, day laborer, or seasonal worker are explicitly not within the category of excluded income. x Revised the way HACCC views assets and calculates income from assets. Under § 5.618(b)(1), when all net family assets have a combined value of $50,000 or less, the family is to include on its self- certification that the combined value of net family assets do not exceed $50,000, and the family expects to receive from the family’s assets. This amount is to be included in the family’s income. The PHA or owner may rely on this self- certification to serve as verification for both assets and the amount of actual income the family expects to receive from such assets. 13 x HACCC must calculate the imputed return on the combined value of all net family assets when the net family assets are more than $50,000 if no actual income can be computed from any of the net family assets. x Section 104 of HOTMA, clarified the definition of Trusts and amended Section 16 of the 1937 Act, which excluded irrevocable trusts and trust funds that are not under the control of the family or household from being considered part of a family’s net family assets. x HUD is clarifying § 5.609(b)(2) to exclude from a family’s income any distributions of a trust’s principal, regardless of the form of the trust, because this is not income for the family. x Clarifying that revocable trusts under control of the family count as an asset under the definition of ‘‘net family assets’’ in § 5.603. Only trusts that are irrevocable or not under the control of a family or household member are excluded from a family’s net family assets. Since revocable trusts under the control of the family or household are considered part of the net family assets, the final rule clarifies at § 5.609(b)(2)(ii) that distributions from these trusts are not used to calculate annual income. Instead, HACCC must count all actual returns (e.g., interest earned) from the trust as income or, if the trust has no actual returns and the total value of the combined net family assets exceeds $50,000 (as that amount is updated for inflation), as imputed returns, as applicable, under § 5.609(a)(2). x Clarified that value of term life insurance which has no cash value to the individual before death is excluded from income calculation. However, whole life insurance which can be accessed by families do have a cash value and included in annual income. x Updated the list of excluded assets from annual income calculations. x Updated the deduction for an elderly or disabled family member from $400 per household to $525 per household subject annual adjustments by HUD. In addition, HUD announced that the standard dependent deduction of $480 will be subject to annual adjustment as determined by HUD every January 1. x The final rule makes a change from 3 to 10 percent of annual income for the threshold that applies to unreimbursed health and medical care expenses and reasonable attendant care and auxiliary apparatus deductions. x Specifies that the inflationary index for all necessary adjustments will be based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI–W). , annual inflationary adjustments will be established by rounding to the nearest dollar except that annual inflationary adjustments for the dependent deduction (§ 5.611(a)(1)) and the elderly or disabled family deduction ((§ 5.611(a)(2)) will be rounded to the next lowest multiple of $25. x HUD expects to make the revised amounts effective January 1st of each year for the following requirements in accordance with the inflationary adjustments covered by this final rule: the value cap on net family asset cap for imputing returns (§ 5.609(a)(2) and (b)(1)); the 14 mandatory deduction for elderly and disabled families (§ 5.611(a)(2)); the restriction on the net family assets (§§ 5.618(a)(1)(i), 574.310(f)); the amount of net assets the PHA or owner may determine based on a certification by the family (§§ 5.618(b)(1), 5.659(e), 92.203(e); 93.151(e); 574.310(e)(3)(ii); 960.259(c)(2), and 982.516(a)(3)); and the mandatory deduction for a dependent ((§ 5.611(a)(1)), which is also used to calculate the income exclusion for earned income of dependent students (§ 5.609(b)(14)) and adoption assistance payments (§ 5.609(b)(15)). x HUD is creating two ways by which a family may qualify for a health and medical care and reasonable attendant care and auxiliary apparatus expenses hardship. First, a family may qualify for a lower threshold for unreimbursed health and medical care expenses and reasonable attendant care and auxiliary apparatus expenses to be deducted from income if the family, at the time of the effective date of this final rule, is receiving the unreimbursed health and medical care expense and reasonable attendant care and auxiliary apparatus expense deduction at the 3 percent threshold. However, even families not receiving a deduction for health and medical care expenses and reasonable attendant care and auxiliary apparatus expenses at the time that this final rule is effective may still qualify for a hardship exemption if the family is experiencing a change in circumstances that would not otherwise trigger an interim reexamination. Families seeking a hardship exemption in this category must have eligible expenses that exceed 5 percent of the family’s annual income in order to receive the benefit of the hardship exemption. The final rule increased to 5 percent the first year, 7.5 percent the second year, and reaching the new statutory standard of 10 percent in the third year or conclusion of 24 months from initial hardship exception. Transfers from Public Housing to the HCV Program will no longer be considered for a hardship exception and treated as a new admission with a 10% threshold. x HUD is expanding § 5.609(b)(19) to cover all payments to a family from a State agency, regardless of whether such a payment is through Medicaid for the care of a family member in order for them to remain in the unit. The final rule includes funding through any Medicaid structure, not just managed care. Furthermore, it also excludes payments from, or authorized by, State agencies in states which use a source of funding other than Medicaid to provide for in-home support. HUD will continue to count payments for long-term care insurance as an unreimbursed health and medical care expense for purposes of § 5.611(a)(3)(i), but HUD clarifies that the payments cannot be excluded from the family’s income. x HOTMA amendments do require that HUD, by regulation, specifically provide hardship exemptions when the financial difficulty faced by the family is due to specific circumstances around childcare or health and medical care and reasonable attendant care and auxiliary apparatus expenses. HUD is adding language to the childcare hardship exemption to specify that the resulting alternative adjusted income calculation must remain in place for a period of up to 90 days. x Clarified that HACCC will not use other programs’ Safe Harbor determinations of income at annual certifications with the exception of Low-Income Housing Tax Credit program verifications. 15 x Clarified HACCC’s policy on triennial certifications for fixed income households. x Revised HUD requirements so that the use of EIV is required only at annual reexaminations, and not at interim reexaminations. However, PHAs and owners may use EIV for interim reexaminations if desired. x HUD revised the language to clarify that the threshold for when a PHA, owner, or grantee must conduct a reexamination due to decreases in a family’s income is a change of ten percent or a lower threshold set by the PHA or owner. x HOTMA amends the 1937 Act so that PHAs and owners may not consider a family’s increases in earned income for the purposes of an interim reexamination unless the family had previously undergone an interim reexamination during the year for a decrease in income. x Amending the Admin Plan language to state that an Interim Reexamination will be conducted when the family’s income has increased by 10% or more of annual adjusted income and their share of rent will change as a result of the increase. x HUD is specifying certain forms of income that are included in the category of ‘‘nonrecurring’’ income that would be excluded from the calculation of income: work on the decennial Census (less than 180 days and not resulting in a permanent position) (§ 5.609(b)(24)(i)); direct Federal or State payments or tax credits intended for economic stimulus or recovery (§ 5.609(b)(24)(ii)); amounts received directly by the family as a result of State or Federal refundable tax credits or refunds at the time they are received (§ 5.609(b)(24)(iii) and (iv)); gifts for holidays, birthdays, or special occasions (§ 5.609(b)(24)(v)); in-kind donations from food banks or other organizations (§ 5.609(b)(24)(vi)); and lump-sum additions to assets such as lottery or other contest winning (§ 5.609(b)(24)(vii)). x With these revisions and additions, HUD intends to exclude from income sources of funds that cannot be relied upon to pay for a family’s housing needs, while providing additional clarity to PHAs and owners about what funds should still be considered income, given the broad definition contained in HOTMA. x Added language that specifies what the effective date will be for annual and interim certifications when families report or fail to report changes in income. x Fully revised Chapter 8 to reflect the adoption of new NSPIRE standards to replace HQS in HOTMA. x Added language regarding when inspections deficiencies are determined Normal wear and tear and cannot be charged against the security deposit. x Added language on the appropriateness of Annual and Interim recertifications and when they should be conducted. In addition, new language was added regarding Non-Interim Reexaminations and what is categorized as a Non-Interim Reexamination. 16 x Updated the language regarding the HCV Homeownership program as modified by HOTMA. x Clarified HACCC’s policies for conducting remote informal hearings and reviews. x Updated all VAWA language to reflect changes included in HOTMA including the addition of human trafficking as a protected class. x Updated Family Unification Program–Youth (FUPY) and Foster Youth to Independence Initiative (FYI) program policies and preferences so that FUP program/voucher vacancies can be re-issued to FYI-eligible youth. x Updated the glossary to include all changes adopted by HOTMA. 17 HCV- Section 8 Administrative Plan Housing Authority of the County of Contra Costa 3133 Estudillo Street Martinez, CA 94553 Administrative Plan (revised December 5,2023July 9, 2024) 18 i Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Table of Contents CHAPTER 1 ............................................................................................................................................................. 1 OVERVIEW OF THE PROGRAM AND PLAN ................................................................................................. 1 PART I: HACCC ................................................................................................................................................... 2 1-I.A. OVERVIEW ........................................................................................................................................... 2 1-I.B. ORGANIZATION AND STRUCTURE OF HACCC ............................................................................ 2 1-I.C. HACCC MISSION .................................................................................................................................. 2 1-I.D. HACCC’S PROGRAMS......................................................................................................................... 3 1-I.E. HACCC’S COMMITMENT TO ETHICS AND SERVICE ................................................................... 3 PART II: THE HOUSING CHOICE VOUCHER (HCV) PROGRAM ................................................................ 5 1-II.A. OVERVIEW AND HISTORY OF THE PROGRAM ........................................................................... 5 1-II.B. HCV PROGRAM BASICS.................................................................................................................... 6 1-II.C. THE HCV PARTNERSHIPS ................................................................................................................ 7 1-II.D. APPLICABLE REGULATIONS ........................................................................................................ 10 PART III: THE HCV ADMINISTRATIVE PLAN ............................................................................................ 11 1-III.A. OVERVIEW AND PURPOSE OF THE PLAN ................................................................................. 11 1-III.B. CONTENTS OF THE PLAN [24 CFR 982.54] ................................................................................. 11 1-III.C. ORGANIZATION OF THE PLAN .................................................................................................... 13 1-III.D. UPDATING AND REVISING THE PLAN ...................................................................................... 13 CHAPTER 2 ............................................................................................................................................................. 1 FAIR HOUSING AND EQUAL OPPORTUNITY ............................................................................................... 1 PART I: NONDISCRIMINATION ....................................................................................................................... 2 2-I.A. OVERVIEW ........................................................................................................................................... 2 2-I.B. NONDISCRIMINATION ....................................................................................................................... 2 2.1.C. Discrimination Complaints ..................................................................................................................... 4 PART II: POLICIES RELATED TO PERSONS WITH DISABILITIES ............................................................ 7 2-II.A. Overview ................................................................................................................................................ 7 2-II.B. Definition of Reasonable Accommodation ............................................................................................ 7 2-II.C. Request for An Accommodation ............................................................................................................ 8 2-II.D. Verification of Disability ....................................................................................................................... 9 2-II.E. Approval/Denial of a Requested Accommodation ................................................................................. 9 2-II.F. Program Accessibility for Persons with Hearing or Vision Impairments ............................................. 10 2-II.G. Physical Accessibility .......................................................................................................................... 11 2-II.H. Denial or Termination of Assistance ................................................................................................... 12 PART III: IMPROVING ACCESS TO SERVICES FOR PERSONS WITH LIMITED ENGLISH PROFICIENCY (LEP) ........................................................................................................................................ 13 2-III.A. OVERVIEW ....................................................................................................................................... 13 2-III.B. ORAL INTERPRETATION ............................................................................................................... 13 19 ii Administrative Plan - HCV Program Revised 12/05/202307/09/2024 2-III.C. WRITTEN TRANSLATION ............................................................................................................. 14 2-III.D. IMPLEMENTATION PLAN ............................................................................................................. 14 CHAPTER 3 ............................................................................................................................................................. 1 ELIGIBILITY .......................................................................................................................................................... 1 PART I: DEFINITIONS OF FAMILY AND HOUSEHOLD MEMBERS .......................................................... 2 3-I.A. OVERVIEW ........................................................................................................................................... 2 3-I.B. FAMILY AND HOUSEHOLD [24 CFR 5.403; Notice PIH 2014-20; FR Notice 02/03/12 and FR Notice 2/14/23] .................................................................................................................................................. 2 3-I.C. FAMILY BREAKUP AND REMAINING MEMBER OF TENANT FAMILY ................................... 3 3-I.D. HEAD OF HOUSEHOLD [24 CFR 5.504(b)]........................................................................................ 4 3-I.E. SPOUSE, COHEAD, AND OTHER ADULT ........................................................................................ 4 3-I.F. DEPENDENTS AND MINORS [24 CFR 5.603] .................................................................................... 5 3-I.G. FULL-TIME STUDENT [24 CFR 5.603; HCV GB, p. 5-29] ................................................................ 5 3-I.H. ELDERLY AND NEAR-ELDERLY PERSONS, AND ELDERLY FAMILY [24 CFR 5.100 and 5.403, FR Notice 02/03/12] ............................................................................................................................... 5 3-I.I. PERSONS WITH DISABILITIES AND DISABLED FAMILY [24 CFR 5.403, FR Notice 02/03/12] . 6 3-I.J. GUESTS [24 CFR 5.100] ......................................................................................................................... 6 3-I.K. FOSTER CHILDREN AND FOSTER ADULTS ................................................................................... 7 3-I.L. ABSENT FAMILY MEMBERS ............................................................................................................. 8 3-I.M. LIVE-IN AIDE ....................................................................................................................................... 9 PART II: BASIC ELIGIBILITY CRITERIA ...................................................................................................... 11 3-II.A. INCOME ELIGIBILITY AND TARGETING .................................................................................... 11 3-II.B. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5, Subpart E] ........................... 12 3-II.C. SOCIAL SECURITY NUMBERS [24 CFR 5.216 and 5.218, Notice PIH 2012-10] .......................... 15 3-II.D. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 5.232; HCV GB, p. 5-13] ....... 15 3-II.E. STUDENTS ENROLLED IN INSTITUTIONS OF HIGHER EDUCATION [24 CFR 5.612, FR Notice 4/10/06, FR Notice 9/21/16] ................................................................................................................ 16 3-II.F. EIV SYSTEM SEARCHES [EIV FAQs; EIV System Training 9/30/20; and Notice PIH 2023-27] .. 20 PART III: DENIAL OF ASSISTANCE .............................................................................................................. 22 3-III.A. OVERVIEW ....................................................................................................................................... 22 3-III.B. MANDATORY DENIAL OF ASSISTANCE [24 CFR 982.553(a) and 24 CFR 982.552(b)(6)] ...... 23 3-III.C. RESTRICTION ON ASSISTANCE BASED ON ASSETS [24 CFR 5.618] .................................... 24 3-III.D. OTHER PERMITTED REASONS FOR DENIAL OF ASSISTANCE ............................................. 25 3-III.E. SCREENING ...................................................................................................................................... 28 3-III.F. CRITERIA FOR DECIDING TO DENY ASSISTANCE .................................................................. 29 3-III.G. NOTICE OF ELIGIBILITY OR DENIAL ......................................................................................... 31 3-III.H. PROHIBITION AGAINST DENIAL OF ASSISTANCE TO VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, STALKING AND HUMAN TRAFFICKING 32 CHAPTER 4 ............................................................................................................................................................. 1 APPLICATIONS, WAITING LIST AND TENANT SELECTION ................................................................... 1 20 iii Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART I: THE APPLICATION PROCESS............................................................................................................ 2 4-I.A. OVERVIEW ........................................................................................................................................... 2 4-I.B. APPLYING FOR ASSISTANCE [HCV GB, pp. 4-11 – 4-16, Notice PIH 2009-36] ............................ 2 4-I.C. ACCESSIBILITY OF THE APPLICATION PROCESS ....................................................................... 2 4-I.D. PLACEMENT ON THE WAITING LIST.............................................................................................. 3 PART II: MANAGING THE WAITING LIST ..................................................................................................... 5 4-II.A. OVERVIEW .......................................................................................................................................... 5 4-II.B. ORGANIZATION OF THE WAITING LIST [24 CFR 982.204 and 205] ........................................... 5 4-II.C. OPENING AND CLOSING THE WAITING LIST [24 CFR 982.206] ................................................ 6 4-II.D. FAMILY OUTREACH [HCV GB, pp. 4-2 to 4-4] ............................................................................... 7 4-II.E. REPORTING CHANGES IN FAMILY CIRCUMSTANCES .............................................................. 8 4-II.F. UPDATING THE WAITING LIST [24 CFR 982.204] ......................................................................... 8 PART III: SELECTION FOR HCV ASSISTANCE ........................................................................................... 11 4-III.A. OVERVIEW ....................................................................................................................................... 11 4-III.B. SELECTION AND HCV FUNDING SOURCES .............................................................................. 11 4-III.C. SELECTION METHOD ..................................................................................................................... 12 4-III.D. NOTIFICATION OF SELECTION ................................................................................................... 16 4-III.E. THE APPLICATION INTERVIEW ................................................................................................... 17 4-III.F. COMPLETING THE APPLICATION PROCESS ............................................................................. 18 CHAPTER 5 ............................................................................................................................................................. 1 BRIEFINGS AND VOUCHER ISSUANCE ......................................................................................................... 1 PART I: BRIEFINGS AND FAMILY OBLIGATIONS ...................................................................................... 2 5-I.A. OVERVIEW ........................................................................................................................................... 2 5-I.B. BRIEFING [24 CFR 982.301] ................................................................................................................ 2 5-I.C. FAMILY OBLIGATIONS ...................................................................................................................... 6 PART II: SUBSIDY STANDARDS AND VOUCHER ISSUANCE ................................................................. 10 5-II.A. OVERVIEW ........................................................................................................................................ 10 5-II.B. DETERMINING FAMILY UNIT (VOUCHER) SIZE [24 CFR 982.402] ......................................... 10 5-II.C. EXCEPTIONS TO SUBSIDY STANDARDS .................................................................................... 11 5-II.D. VOUCHER ISSUANCE [24 CFR 982.302] ........................................................................................ 12 5-II.E. VOUCHER TERM AND EXTENSIONS ........................................................................................... 13 CHAPTER 6 ............................................................................................................................................................. 1 INCOME AND SUBSIDY DETERMINATIONS ................................................................................................ 1 PART I: ANNUAL INCOME ............................................................................................................................... 2 6-I.A. OVERVIEW [24 CFR 5.609] ................................................................................................................. 2 6-I.B. HOUSEHOLD COMPOSITION AND INCOME .................................................................................. 3 6-I.C. CALCULATING ANNUAL INCOME .................................................................................................. 7 6-I.D. EARNED INCOME ................................................................................................................................ 9 21 iv Administrative Plan - HCV Program Revised 12/05/202307/09/2024 6-I.E. EARNED INCOME DISALLOWANCE FOR PERSONS WITH DISABILITIES [24 CFR 5.617; Streamlining Final Rule (SFR) Federal Register 3/8/16; Notice PIH 2023-27] .............................................. 15 6-I.F. BUSINESS AND SELF-EMPLOYMENT INCOME [24 CFR 5.609(b)(28); Notice PIH 2023-27].... 19 Assets Owned by a Business Entity ...................................................................................................................... 20 6-I.G. STUDENT FINANCIAL ASSISTANCE [FR Notice 2/14/23 and Notice PIH 2023-27] .................... 21 Introduction ........................................................................................................................................................... 21 Types of Assistance ................................................................................................................................................ 23 6-I.H. PERIODIC PAYMENTS ...................................................................................................................... 34 6-I.I. NONRECURRING INCOME [24 CFR 5.609(b)(24 and Notice PIH 2023-27)] ................................... 39 6-I.J. WELFARE ASSISTANCE .................................................................................................................... 40 6-I.K. STATE PAYMENTS TO ALLOW INDIVIDUALS WITH DISABILITIES TO LIVE AT HOME [24 CFR 5.609(b)(19)] ........................................................................................................................................... 41 6-I.L. CIVIL RIGHTS SETTLEMENTS [24 CFR 5.609(b)(25); FR Notice 2/14/23] ................................... 42 6-I.M. ADDITIONAL EXCLUSIONS FROM ANNUAL INCOME [24 CFR 5.609(b)] .............................. 45 PART II: ASSETS ............................................................................................................................................... 52 6-II.A. OVERVIEW ........................................................................................................................................ 52 6-II.B. ASSETS DISPOSED OF FOR LESS THAN FAIR MARKET VALUE [24 CFR 5.603(b)(2)] ......... 53 6-II.C. ASSET INCLUSIONS AND EXCLUSIONS ..................................................................................... 54 6-II.D. DETERMINING INCOME FROM ASSETS ..................................................................................... 62 PART III: ADJUSTED INCOME ....................................................................................................................... 64 6-III.A. INTRODUCTION .............................................................................................................................. 64 Overview ......................................................................................................................................................... 64 6-III.B. DEPENDENT DEDUCTION ............................................................................................................. 65 6-III.C. ELDERLY OR DISABLED FAMILY DEDUCTION ....................................................................... 65 6-III.D. HEALTH AND MEDICAL CARE EXPENSES DEDUCTION [24 CFR 5.611(a)(3)(i) and 5.603(b)] ......................................................................................................................................................................... 65 6-III.E. DISABILITY ASSISTANCE EXPENSES DEDUCTION [24 CFR 5.603(b) and 24 CFR 5.611(a)(3)(ii)] ................................................................................................................................................. 67 6-III.F. CHILD CARE EXPENSE DEDUCTION .......................................................................................... 70 6-III.G. HARDSHIP EXEMPTIONS [24 CFR 5.611(c), (d), and (e)] ............................................................ 73 6-III.H. PERMISSIVE DEDUCTIONS [24 CFR 5.611(b)(1)(ii)] .................................................................. 78 PART IV: CALCULATING FAMILY SHARE AND PHA SUBSIDY ............................................................. 80 6-IV.A. OVERVIEW OF RENT AND SUBSIDY CALCULATIONS .......................................................... 80 6-IV.B. FINANCIAL HARDSHIPS AFFECTING MINIMUM RENT [24 CFR 5.630] ............................... 81 6-IV.C. APPLYING PAYMENT STANDARDS [24 CFR 982.505; 982.503(b)] .......................................... 85 6-IV.D. APPLYING UTILITY ALLOWANCES [24 CFR 982.517] ............................................................. 87 6-IV.E. PRORATED ASSISTANCE FOR MIXED FAMILIES [24 CFR 5.520] .......................................... 89 CHAPTER 7 ............................................................................................................................................................. 1 VERIFICATION ..................................................................................................................................................... 1 PART I: GENERAL VERIFICATION REQUIREMENTS.................................................................................. 2 22 v Administrative Plan - HCV Program Revised 12/05/202307/09/2024 7-I.A. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 982.516, 982.551, 24 CFR 5.230, ; and Notice PIH 2023-27] ................................................................................................................................. 2 7-I.B. USE OF OTHER PROGRAMS’ INCOME DETERMINATIONS [24 CFR 5.609(c)(3) and Notice PIH 2023-27] ..................................................................................................................................................... 4 7-I.C. STREAMLINED INCOME DETERMINATIONS [24 CFR 960.257(c); Notice PIH 2023-27] ........... 6 7-I.D. VERIFICATION HIERARCHY [Notice PIH 2023-27] ......................................................................... 7 7-I. E. LEVEL 5 AND 6 VERIFICATION: UP-FRONT INCOME VERIFICATION (UIV)........................ 10 7-I.F. LEVEL 4 VERIFICATION [Notice PIH 2023-27] ............................................................................... 15 7-I.G. LEVEL 3 VERIFICATION: WRITTEN, THIRD-PARTY FORM [Notice PIH 2023 -27] ................. 17 7-I.H. ORAL THIRD-PARTY VERIFICATION [Notice PIH 2023-27 ......................................................... 18 7-I.I. LEVEL 1: NON-THIRD-PARTY VERIFICATION TECHNIQUE: SELF-CERTIFICATION [Notice PIH 2023-27] ................................................................................................................................................... 21 PART II: VERIFYING FAMILY INFORMATION ........................................................................................... 23 7-II.A. VERIFICATION OF LEGAL IDENTITY .......................................................................................... 23 7-II.B. SOCIAL SECURITY NUMBERS [24 CFR 5.216, Notice PIH 2023-27] .......................................... 23 7-II.C. DOCUMENTATION OF AGE ........................................................................................................... 26 7-II.D. FAMILY RELATIONSHIPS .............................................................................................................. 26 7-II.E. VERIFICATION OF STUDENT STATUS ......................................................................................... 27 7-II.F. DOCUMENTATION OF DISABILITY .............................................................................................. 29 7-II.G. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5.508] ..................................... 30 7-II.H. VERIFICATION OF PREFERENCE STATUS ................................................................................. 31 PART III: VERIFYING INCOME AND ASSETS ............................................................................................. 32 7-III.A. EARNED INCOME ........................................................................................................................... 32 7-III.B. BUSINESS AND SELF EMPLOYMENT INCOME ........................................................................ 32 7-III.C. PERIODIC PAYMENTS AND PAYMENTS IN LIEU OF EARNINGS ......................................... 33 7-III.D. ALIMONY OR CHILD SUPPORT [Notice PIH 2023-27] ............................................................... 35 7-III.E. NONRECURRING INCOME [Notice PIH 2023-27] ........................................................................ 36 7-III.F. ASSETS AND INCOME FROM ASSETS ........................................................................................ 36 7-III.G. ASSETS DISPOSED OF FOR LESS THAN FAIR MARKET VALUE ......................................... 38 7-III.H. NET INCOME FROM RENTAL PROPERTY ................................................................................. 38 7-III.I. FEDERAL TAX REFUNDS OR REFUNDABLE TAX CREDITS [Notice PIH 2023-27] ............... 39 7-III.J. RETIREMENT ACCOUNTS .............................................................................................................. 39 7-III.K. INCOME FROM EXCLUDED SOURCES [Notice PIH 2023-27] ................................................... 40 7-III.L. ZERO INCOME STATUS REVIEWS [Notice PIH 2023-27] ........................................................... 40 7-III.M. STUDENT FINANCIAL ASSISTANCE [24 CFR 5.609(b)(9)] ..................................................... 41 7-III.N. PARENTAL INCOME OF STUDENTS SUBJECT TO ELIGIBILITY RESTRICTIONS .............. 42 PART IV: VERIFYING MANDATORY DEDUCTIONS ................................................................................. 44 7-IV.A. DEPENDENT AND ELDERLY/DISABLED HOUSEHOLD DEDUCTIONS ............................... 44 7-IV.B. HEALTH AND MEDICAL CARE EXPENSE DEDUCTION ......................................................... 44 7-IV.C. DISABILITY ASSISTANCE EXPENSES ........................................................................................ 46 23 vi Administrative Plan - HCV Program Revised 12/05/202307/09/2024 7-IV.D. CHILDCARE EXPENSES ................................................................................................................ 48 CHAPTER 8 ............................................................................................................................................................. 1 NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE AND RENT REASONABLENESS DETERMINATIONS ....................................................................................................... 1 PART I: NSPIRE STANDARDS .......................................................................................................................... 3 8-I.A. INSPECTABLE AREAS [24 CFR 5.703(a)(1) and 24 CFR 5.705(a)(2)] .............................................. 3 8-I.B. AFFIRMATIVE HABITABILITY REQUIREMENTS [24 CFR 5.703(b), (c), and (d)] ....................... 3 8-I.C. MODIFICATIONS TO PROVIDE ACCESSIBILITY [24 CFR 100.203; Notice 2003-31; and Notice PIH 2014-02] ..................................................................................................................................................... 4 8-I.D. ADDITIONAL LOCAL REQUIREMENTS .......................................................................................... 5 8-I.E. LIFE-THREATENING DEFICIENCIES [Notice PIH 2023-28] .......................................................... 10 8-I.F. OWNER AND FAMILY RESPONSIBILITIES [24 CFR 982.404] ..................................................... 14 8-I.G. LEAD BASED PAINT ........................................................................................................................ 16 8-I.H. VIOLATION OF SPACE STANDARDS [24 CFR 5.703(d)(5)] ......................................................... 17 PART II: THE INSPECTION PROCESS ........................................................................................................... 18 8-II.A. OVERVIEW [24 CFR 982.405] .......................................................................................................... 18 8-II.B. INITIAL INSPECTION ...................................................................................................................... 20 8-II.C. ANNUAL/BIENNIAL INSPECTIONS [ 24 CFR 982.405 and 982.406; Notice PIH 2016-05] ......... 22 8-II.D. SPECIAL INSPECTIONS [24 CFR 982.405(g)] ................................................................................ 23 8-II.E. QUALITY CONTROL INSPECTIONS [24 CFR 982.405(b); HCV GB, p. 10-32] ........................... 24 8-II.F. INSPECTION RESULTS AND REINSPECTIONS FOR UNITS UNDER HAP CONTRACT ........ 24 8-II.G. ENFORCING OWNER COMPLIANCE ............................................................................................ 26 8-II.H. ENFORCING FAMILY COMPLIANCE [24 CFR 982.404(b)] ......................................................... 27 PART III: RENT REASONABLENESS [24 CFR 982.507]............................................................................... 28 8-III.A. OVERVIEW ....................................................................................................................................... 28 8-III.B. WHEN RENT REASONABLENESS DETERMINATIONS ARE REQUIRED .............................. 29 8-III.C. HOW COMPARABILITY IS ESTABLISHED ................................................................................. 31 8-III.D. PHA RENT REASONABLENESS METHODOLOGY .................................................................... 32 CHAPTER 9 ............................................................................................................................................................. 1 GENERAL LEASING POLICIES......................................................................................................................... 1 9-I.A. TENANT SCREENING ......................................................................................................................... 2 9-I.B. REQUESTING TENANCY APPROVAL [Form HUD-52517] ............................................................. 2 9-I.C. OWNER PARTICIPATION ................................................................................................................... 4 9-I.D. ELIGIBLE UNITS .................................................................................................................................. 4 9-I.E. LEASE AND TENANCY ADDENDUM ............................................................................................... 6 9-I.F. TENANCY APPROVAL [24 CFR 982.305] .......................................................................................... 9 9-I.G. HAP CONTRACT EXECUTION [24 CFR 982.305] ........................................................................... 10 9-I.H. CHANGES IN LEASE OR RENT [24 CFR 982.308] ......................................................................... 11 CHAPTER 10 ........................................................................................................................................................... 1 MOVING WITH CONTINUED ASSISTANCE AND PORTABILITY ............................................................ 1 24 vii Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART I: MOVING WITH CONTINUED ASSISTANCE .................................................................................... 2 10-I.A. ALLOWABLE MOVES ....................................................................................................................... 2 10-I.B. RESTRICTIONS ON MOVES ............................................................................................................. 3 10-I.C. MOVING PROCESS ............................................................................................................................ 5 10.I.D . ENHANCED VOUCHERS .................................................................................................................. 7 PART II: PORTABILITY ..................................................................................................................................... 9 10-II.A. OVERVIEW ........................................................................................................................................ 9 10-II.B. INITIAL PHA ROLE ........................................................................................................................... 9 10-II.C. RECEIVING PHA ROLE .................................................................................................................. 16 CHAPTER 11 ........................................................................................................................................................... 1 REEXAMINATIONS .............................................................................................................................................. 1 PART I: ANNUAL REEXAMINATIONS [24 CFR 982.516] ............................................................................. 2 11-I.A. OVERVIEW ......................................................................................................................................... 2 11-I.B. SCHEDULING ANNUAL REEXAMINATIONS ............................................................................... 3 11-I.C. CONDUCTING ANNUAL REEXAMINATIONS .............................................................................. 4 11-I.D. DETERMINING ONGOING ELIGIBILITY OF CERTAIN STUDENTS [24 CFR 982.552(b)(5)].................................................................................................................................................... 5 11-I.E. CALCULATING ANNUAL INCOME AT ANNUAL REEXAMINATION [24 CFR 5.609(c)(2) and Notice PIH 2023-27] ......................................................................................................................................... 6 11-I.F. EFFECTIVE DATES ............................................................................................................................ 7 PART II: INTERIM REEXAMINATIONS [24 CFR 982.516] ............................................................................ 9 11-II.A. OVERVIEW ........................................................................................................................................ 9 11-II.B. CHANGES IN FAMILY AND HOUSEHOLD COMPOSITION ...................................................... 9 11-II.C. CHANGES AFFECTING INCOME OR EXPENSES ...................................................................... 12 11-II.D. EFFECTIVE DATES [24 CFR 982.516(e) and Notice 2023-27] ...................................................... 15 PART III: RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT .............................................. 20 11-III.A. OVERVIEW ..................................................................................................................................... 20 11-III.B. CHANGES IN PAYMENT STANDARDS AND UTILITY ALLOWANCES ............................... 20 11-III.C. NOTIFICATION OF NEW FAMILY SHARE AND HAP AMOUNT ........................................... 21 11-III.D. DISCREPANCIES ........................................................................................................................... 22 PART IV: NON-INTERIM REEXAMINATION TRANSACTIONS [Notice PIH 2023-27] ............................ 23 CHAPTER 12 ........................................................................................................................................................... 1 TERMINATION OF ASSISTANCE AND TENANCY ....................................................................................... 1 PART I: GROUNDS FOR TERMINATION OF ASSISTANCE ......................................................................... 2 12-I.A. OVERVIEW ......................................................................................................................................... 2 12-I.B. FAMILY NO LONGER REQUIRES ASSISTANCE [24 CFR 982.455] ............................................ 2 12-I.C. FAMILY CHOOSES TO TERMINATE ASSISTANCE ..................................................................... 2 12-I.D. MANDATORY TERMINATION OF ASSISTANCE ......................................................................... 2 12-I.E. MANDATORY POLICIES AND OTHER AUTHORIZED TERMINATIONS .................................. 5 PART II: APPROACH TO TERMINATION OF ASSISTANCE ...................................................................... 10 25 viii Administrative Plan - HCV Program Revised 12/05/202307/09/2024 12-II.A. OVERVIEW ...................................................................................................................................... 10 12-II.B. METHOD OF TERMINATION [24 CFR 982.552(a)(3)] ................................................................. 10 12-II.C. ALTERNATIVES TO TERMINATION OF ASSISTANCE ............................................................ 10 12-II.D. CRITERIA FOR DECIDING TO TERMINATE ASSISTANCE ..................................................... 10 12-II.E. TERMINATIONS RELATED TO DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, STALKING, OR HUMAN TRAFFICKING ............................................................................... 13 12-II.F. TERMINATION NOTICE ................................................................................................................. 16 PART III: TERMINATION OF TENANCY BY THE OWNER ....................................................................... 18 12-III.A. OVERVIEW ..................................................................................................................................... 18 12-III.B. GROUNDS FOR OWNER TERMINATION OF TENANCY [24 CFR 982.310, 24 CFR 5.2005(c), and Form HUD-52641-A, Tenancy Addendum] ............................................................................................. 18 12-III.C. EVICTION [24 CFR 982.310(e) and (f) and Form HUD-52641-A, Tenancy Addendum] .............. 20 12-III.D. DECIDING WHETHER TO TERMINATE TENANCY [24 CFR 982.310(h), 24 CFR 982.310(h)(4)].................................................................................................................................................. 20 12-III.E. EFFECT OF TENANCY TERMINATION ON THE FAMILY’S ASSISTANCE ......................... 21 CHAPTER 13 ........................................................................................................................................................... 1 OWNERS ................................................................................................................................................................. 1 PART I. OWNERS IN THE HCV PROGRAM .................................................................................................... 2 13-I.A. OWNER RECRUITMENT AND RETENTION [HCV GB, pp. 2-4 to 2-6; HCV Landlord Strategy Guidebook for PHAs] ........................................................................................................................................ 2 13-I.B. BASIC HCV PROGRAM REQUIREMENTS ..................................................................................... 3 13-I.C. OWNER RESPONSIBILITIES [24 CFR 982.452] .............................................................................. 5 13-I.D. OWNER QUALIFICATIONS .............................................................................................................. 5 13-I.E. NON-DISCRIMINATION [HAP Contract – Form HUD-52641] ........................................................ 9 PART II. HAP CONTRACTS ............................................................................................................................. 10 13-II.A. OVERVIEW ...................................................................................................................................... 10 13-II.B. HAP CONTRACT CONTENTS ....................................................................................................... 10 13-II.C. HAP CONTRACT PAYMENTS ....................................................................................................... 11 13-II.D. BREACH OF HAP CONTRACT [24 CFR 982.453] ........................................................................ 13 13-II.E. HAP CONTRACT TERM AND TERMINATIONS ......................................................................... 14 13-II.F. CHANGE IN OWNERSHIP / ASSIGNMENT OF THE HAP CONTRACT [HUD-52641] ............ 16 13-II.G. FORECLOSURE [Notice PIH 2010-49] ........................................................................................... 17 CHAPTER 14 ........................................................................................................................................................... 1 PROGRAM INTEGRITY ...................................................................................................................................... 1 PART I: PREVENTING, DETECTING, AND INVESTIGATING ERRORS AND PROGRAM ABUSE ........ 2 14-I.A. PREVENTING ERRORS AND PROGRAM ABUSE ......................................................................... 2 14-I.B. DETECTING ERRORS AND PROGRAM ABUSE ............................................................................ 3 14-I.C. INVESTIGATING ERRORS AND PROGRAM ABUSE ................................................................... 4 PART II: CORRECTIVE MEASURES AND PENALTIES ................................................................................ 7 14-II.A. SUBSIDY UNDER- OR OVERPAYMENTS ..................................................................................... 7 26 ix Administrative Plan - HCV Program Revised 12/05/202307/09/2024 14-II.B. FAMILY-CAUSED ERRORS AND PROGRAM ABUSE ................................................................ 7 14-II.C. OWNER-CAUSED ERROR OR PROGRAM ABUSE ...................................................................... 9 14-II.D. PHA-CAUSED ERRORS OR PROGRAM ABUSE......................................................................... 10 14-II.E. CRIMINAL PROSECUTION ............................................................................................................ 12 14-II.F. FRAUD AND PROGRAM ABUSE RECOVERIES ......................................................................... 12 CHAPTER 15 ........................................................................................................................................................... 1 SPECIAL HOUSING TYPES ................................................................................................................................ 1 PART I: SINGLE ROOM OCCUPANCY ............................................................................................................ 3 15-I.A. OVERVIEW ......................................................................................................................................... 3 15-I.B. PAYMENT STANDARD, UTILITY ALLOWANCE, AND HAP CALCULATION ........................ 3 15-I.C. NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE (NSPIRE) . 3 PART II: CONGREGATE HOUSING ................................................................................................................. 5 15-II.A. OVERVIEW ........................................................................................................................................ 5 15-II.B. PAYMENT STANDARD, UTILITY ALLOWANCE, AND HAP CALCULATION ....................... 5 15-II.C. NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE (NSPIRE) 5 PART III: GROUP HOME .................................................................................................................................... 7 15-III.A. OVERVIEW ....................................................................................................................................... 7 15-III.B. PAYMENT STANDARD, UTILITY ALLOWANCE, AND HAP CALCULATION ...................... 7 15-III.C. NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE (NSPIRE) ........................................................................................................................................................................... 8 PART IV: SHARED HOUSING ......................................................................................................................... 10 15-IV.A. OVERVIEW..................................................................................................................................... 10 15-IV.B. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION ..................... 11 15-IV.C. NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE (NSPIRE) ......................................................................................................................................................................... 12 PART V: COOPERATIVE HOUSING .............................................................................................................. 14 15-V.A. OVERVIEW ...................................................................................................................................... 14 15-V.B. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION ...................... 14 15-V.C. NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE (NSPIRE) ......................................................................................................................................................................... 14 PART VI: MANUFACTURED HOMES ............................................................................................................ 16 15-VI.A. OVERVIEW..................................................................................................................................... 16 15-VI.B. SPECIAL REQUIREMENTS FOR MANUFACTURED HOMEOWNERS WHO LEASE A SPACE ............................................................................................................................................................. 16 15-VI.C. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION ..................... 16 15-VI.D. NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE (NSPIRE) ......................................................................................................................................................................... 18 PART VII: HOMEOWNERSHIP ....................................................................................................................... 19 15-VII.A. OVERVIEW [24 CFR 982.625] ..................................................................................................... 19 15-VII.B. FAMILY ELIGIBILITY [24 CFR 982.627] ................................................................................... 19 15-VII.C. SELECTION OF FAMILIES [24 CFR 982.626] ............................................................................ 21 27 x Administrative Plan - HCV Program Revised 12/05/202307/09/2024 15-VII.D. ELIGIBLE UNITS [24 CFR 982.628] ............................................................................................ 22 15-VII.E. ADDITIONAL HACCC REQUIREMENTS FOR SEARCH AND PURCHASE [24 CFR 982.629] ......................................................................................................................................................................... 23 15-VII.F. HOMEOWNERSHIP COUNSELING [24 CFR 982.630] .............................................................. 24 15-VII.G. HOME INSPECTIONS, CONTRACT OF SALE, AND HACCC DISAPPROVAL OF SELLER [24 CFR 982.631] ............................................................................................................................................ 25 15-VII.H. FINANCING [24 CFR 982.632] ..................................................................................................... 27 15-VII.I. CONTINUED ASSISTANCE REQUIREMENTS; FAMILY OBLIGATIONS [24 CFR 982.633] 29 15-VII.J. MAXIMUM TERM OF HOMEOWNER ASSISTANCE [24 CFR 982.634] ................................. 33 15-VII.K. HOMEOWNERSHIP ASSISTANCE PAYMENTS AND HOMEOWNERSHIP EXPENSES [24 CFR 982.635] .................................................................................................................................................. 34 15-VII.L. PORTABILITY [24 CFR 982.636, 982.637, 982.353(b) and (c), 982.552, 982.553] ..................... 36 15-VII.M. MOVING WITH CONTINUED ASSISTANCE [24 CFR 982.637] ............................................. 37 15-VII.N. DENIAL OR TERMINATION OF ASSISTANCE [24 CFR 982.638] ......................................... 38 15-VII.O. INFORMAL HEARING [24 CFR 982.555] ................................................................................... 39 15-VII.P. SWITCHING FROM HOA TO RENTAL ASSISTANCE: ............................................................ 39 15-VII.Q. RECAPTURE ................................................................................................................................. 39 CHAPTER 16 ........................................................................................................................................................... 1 PROGRAM ADMINISTRATION ......................................................................................................................... 1 PART I: ADMINISTRATIVE FEE RESERVE [24 CFR 982.155] ...................................................................... 2 PART II: SETTING PROGRAM STANDARDS AND SCHEDULES ................................................................ 3 16-II.A. OVERVIEW ........................................................................................................................................ 3 16-II.B. PAYMENT STANDARDS [24 CFR 982.503; HCV GB, Chapter 7] ................................................. 3 16-II.C. UTILITY ALLOWANCES [24 CFR 982.517] ................................................................................... 6 PART III: INFORMAL REVIEWS AND HEARINGS ...................................................................................... 10 16-III.A. OVERVIEW ..................................................................................................................................... 10 16-III.B. INFORMAL REVIEWS ................................................................................................................... 10 16-III.C. INFORMAL HEARINGS FOR PARTICIPANTS [24 CFR 982.555] ............................................. 14 16-III.D. HEARING AND APPEAL PROVISIONS FOR NONCITIZENS [24 CFR 5.514] ........................ 23 PART IV: OWNER OR FAMILY DEBTS TO HACCC .................................................................................... 27 16-IV.A. OVERVIEW..................................................................................................................................... 27 16-IV.B. REPAYMENT POLICY .................................................................................................................. 27 PART V: SECTION 8 MANAGEMENT ASSESSMENT PROGRAM (SEMAP) ............................................ 32 16-V.A. OVERVIEW ...................................................................................................................................... 32 16-V.B. SEMAP CERTIFICATION [24 CFR 985.101] ................................................................................. 32 16-V.C. SEMAP INDICATORS [24 CFR 985.3 and form HUD-52648] ....................................................... 33 PART VI: RECORD KEEPING.......................................................................................................................... 38 16-VI.A. OVERVIEW..................................................................................................................................... 38 16-VI.B. RECORD RETENTION [24 CFR 982.158; 24 CFR 908.101] ........................................................ 38 16-VI.C. RECORDS MANAGEMENT .......................................................................................................... 39 28 xi Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART VII: REPORTING AND RECORD KEEPING FOR CHILDREN WITH ENVIRONMENTAL INTERVENTION BLOOD LEAD LEVEL ........................................................................................................ 42 16-VII.A. OVERVIEW ................................................................................................................................... 42 16-VII.B. REPORTING REQUIREMENT [24 CFR 35.1225(e); Notice PIH 2017-13] ................................ 42 16-VII.C. DATA COLLECTION AND RECORD KEEPING [24 CFR 35.1225(f)] ..................................... 42 PART VIII: DETERMINATION OF INSUFFICIENT FUNDING.................................................................... 44 16-VIII.A. OVERVIEW .................................................................................................................................. 44 16-VIII.B. METHODOLOGY ........................................................................................................................ 44 PART IX: VIOLENCE AGAINST WOMEN ACT (VAWA): NOTIFICATION, DOCUMENTATION, CONFIDENTIALITY ......................................................................................................................................... 45 16-IX.A. OVERVIEW..................................................................................................................................... 45 16-IX.B. DEFINITIONS [24 CFR 5.2003, 42 USC 13925] ............................................................................ 45 16-IX.C. NOTIFICATION [24 CFR 5.2005(a)].............................................................................................. 48 16-IX.D. DOCUMENTATION [24 CFR 5.2007] ........................................................................................... 49 16-IX.E. CONFIDENTIALITY [24 CFR 5.2007(b)(4)] ................................................................................. 51 CHAPTER 17 ........................................................................................................................................................... 1 PROJECT-BASED VOUCHERS .......................................................................................................................... 1 PART I: GENERAL REQUIREMENTS .............................................................................................................. 2 17-I.A. OVERVIEW ......................................................................................................................................... 2 17-I.A.1 UNITS NOT SUBJECT TO PBV PROGRAM UNIT LIMITATION ................................................ 3 17-I.A.2 OTHER UNITS NOT SUBJECT TO THE PBV PROGRAM UNIT EXCEPTION .......................... 5 17-I.A.3 INCOME-MIXING PROJECT CAP EXEMPTIONS ........................................................................ 5 17-I.B. TENANT-BASED VS. PROJECT-BASED VOUCHER ASSISTANCE ............................................ 5 17-I.C. RELOCATION REQUIREMENTS ...................................................................................................... 6 17-I.D. EQUAL OPPORTUNITY REQUIREMENTS ..................................................................................... 6 PART II: PBV OWNER PROPOSALS ................................................................................................................ 7 17-II.A. OVERVIEW ........................................................................................................................................ 7 17-II.B. OWNER PROPOSAL SELECTION PROCEDURES ........................................................................ 7 17-II.C. HOUSING TYPE ............................................................................................................................... 12 17-II.D. PROHIBITION OF ASSISTANCE FOR CERTAIN UNITS ........................................................... 12 17-II.E. SUBSIDY LAYERING REQUIREMENTS [24 CFR 983.55, NOTICE PIH 2013-11, AND FR NOTICE 3/13/23] ............................................................................................................................................ 13 17-II.F. CAP ON NUMBER OF PBV UNITS IN EACH PROJECT ............................................................. 14 17-II.G. SITE SELECTION STANDARDS ................................................................................................... 17 17-II.H. ENVIRONMENTAL REVIEW ........................................................................................................ 19 PART III: DWELLING UNITS .......................................................................................................................... 21 17-III.A. OVERVIEW ..................................................................................................................................... 21 17-III.B. NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE (NSPIRE) [24 CFR 983.101] ............................................................................................................................................ 21 17-III.C. HOUSING ACCESSIBILITY FOR PERSONS WITH DISABILITIES ......................................... 21 29 xii Administrative Plan - HCV Program Revised 12/05/202307/09/2024 17-III.D. INSPECTING UNITS ...................................................................................................................... 21 PART IV: REHABILITATED AND NEWLY CONSTRUCTED UNITS ......................................................... 24 17-IV.A. OVERVIEW..................................................................................................................................... 24 17-IV.B. AGREEMENT TO ENTER INTO HAP CONTRACT .................................................................... 24 17-IV.C. CONDUCT OF DEVELOPMENT WORK ..................................................................................... 25 17-IV.D. COMPLETION OF HOUSING ....................................................................................................... 26 PART V: HOUSING ASSISTANCE PAYMENTS CONTRACT (HAP) .......................................................... 28 17-V.A. OVERVIEW ...................................................................................................................................... 28 17-V.B. HAP CONTRACT REQUIREMENTS ............................................................................................. 28 17-V.C. AMENDMENTS TO THE HAP CONTRACT ................................................................................. 31 17-V.D. HAP CONTRACT YEAR, ANNIVERSARY AND EXPIRATION DATES .................................. 32 17-V.E. OWNER RESPONSIBILITIES UNDER THE HAP CONTRACT .................................................. 33 17-V.F. ADDITIONAL HAP REQUIREMENTS .......................................................................................... 33 PART VI: SELECTION OF PBV PROGRAM PARTICIPANTS ...................................................................... 35 17-VI.A. OVERVIEW..................................................................................................................................... 35 17-VI.B. ELIGIBILITY FOR PBV ASSISTANCE ........................................................................................ 35 17-VI.C. ORGANIZATION OF THE WAITING LIST ................................................................................. 36 17-VI.D. SELECTION FROM THE WAITING LIST ................................................................................... 41 17-VI.E. OFFER OF PBV ASSISTANCE ...................................................................................................... 47 17-VI.F. OWNER SELECTION OF TENANTS ............................................................................................ 48 17-VI.G. TENANT SCREENING ................................................................................................................... 49 PART VII: OCCUPANCY .................................................................................................................................. 51 17-VII.A. OVERVIEW ................................................................................................................................... 51 17-VII.B. LEASE ............................................................................................................................................ 51 17-VII.C. MOVES ........................................................................................................................................... 54 17-VII.D. EXCEPTIONS TO THE OCCUPANCY CAP [24 CFR 983.262] ................................................. 56 PART VIII: DETERMINING RENT TO OWNER ............................................................................................ 58 17-VIII.A. OVERVIEW .................................................................................................................................. 58 17-VIII.B. RENT LIMITS ............................................................................................................................... 58 17-VIII.C. REASONABLE RENT .................................................................................................................. 62 17-VIII.D. EFFECT OF OTHER SUBSIDY AND RENT CONTROL .......................................................... 63 PART IX: PAYMENTS TO OWNER ................................................................................................................ 65 17-IX.A. HOUSING ASSISTANCE PAYMENTS ........................................................................................ 65 17-IX.B. VACANCY PAYMENTS ................................................................................................................ 65 17-IX.C. TENANT RENT TO OWNER ......................................................................................................... 66 17-IX.D. OTHER FEES AND CHARGES ..................................................................................................... 68 CHAPTER 18 ........................................................................................................................................................... 1 PROJECT BASED VOUCHERS (PBV) UNDER THE RENTAL ASSISTANCE DEMONSTRATION (RAD) PROGRAM .................................................................................................................................................. 1 30 xiii Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART I: GENERAL REQUIREMENTS .............................................................................................................. 2 18-I.A. OVERVIEW AND HISTORY OF THE RAD PROGRAM ................................................................. 2 18-I.B. APPLICABLE REGULATIONS .......................................................................................................... 2 18-I.C. TENANT-BASED VS. PROJECT-BASED VOUCHER ASSISTANCE [24 CFR 983.2] .................. 5 18-I.D. RELOCATION REQUIREMENTS [NOTICE PIH 2016-17] .............................................................. 5 18-I.E. EQUAL OPPORTUNITY REQUIREMENTS [24 CFR 983.8; 24 CFR 5.105; NOTICE PIH 2016- 17] ...................................................................................................................................................................... 8 PART II: PBV PROJECT SELECTION ............................................................................................................... 9 18-II.A. OVERVIEW ........................................................................................................................................ 9 18-II.B. OWNERSHIP AND CONTROL [NOTICE PIH 2019-23] ................................................................. 9 18-II.C. PHA-OWNED UNITS [24 CFR 983.59, FR NOTICE 1/18/17, AND NOTICE PIH 2017-21]........ 10 18-II.D. SUBSIDY LAYERING REQUIREMENTS [NOTICE PIH 2019-23; NOTICE PIH 2012-32, REV- 3; NOTICE PIH 2012-32, REV-2] .................................................................................................................. 11 18-II.E. PBV PERCENTAGE LIMITATION AND UNIT CAP [NOTICE PIH 2019-23 and Notice PIH 2023-19]] ......................................................................................................................................................... 13 18-II.F. SITE SELECTION STANDARDS [NOTICE PIH 2019-23; NOTICE PIH 2016-17] ...................... 14 18-II.G. ENVIRONMENTAL REVIEW [NOTICE PIH 2019-23; ENVIRONMENTAL REVIEW REQUIREMENTS FOR RAD CONVERSIONS, MARCH 2019] .................................................................... 14 PART III: DWELLING UNITS .......................................................................................................................... 15 18-III.A. OVERVIEW ..................................................................................................................................... 15 18-III.B. NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE (NSPIRE) [24 CFR 983.101 and 24 CFR 5.703] .............................................................................................................. 15 18-III.C. HOUSING ACCESSIBILITY FOR PERSONS WITH DISABILITIES [NOTICE PIH 2016-17] . 15 18-III.D. INSPECTING UNITS ...................................................................................................................... 15 PART IV: HOUSING ASSISTANCE PAYMENTS (HAP) CONTRACT ........................................................ 18 18-IV.A. OVERVIEW [RAD PBV QUICK REFERENCE GUIDE 06/20] ..................................................... 18 18-IV.B. HAP CONTRACT REQUIREMENTS ............................................................................................ 18 18-IV.C. AMENDMENTS TO THE HAP CONTRACT ................................................................................ 19 18-IV.D. HAP CONTRACT YEAR AND ANNIVERSARY DATES [24 CFR 983.302(E)] ........................ 20 18-IV.E. OWNER RESPONSIBILITIES UNDER THE HAP CONTRACT [24 CFR 983.210] ....... 20 18-IV.F. VACANCY PAYMENTS [24 CFR 983.352(B)] ............................................................................. 21 PART V: SELECTION OF PBV PROGRAM PARTICIPANTS ....................................................................... 22 18-V.A. OVERVIEW ...................................................................................................................................... 22 18-V.B. PROHIBITED RESCREENING OF EXISTING TENANTS UPON CONVERSION [NOTICE PIH 2019-23] .......................................................................................................................................................... 22 18-V.C. ELIGIBILITY FOR PBV ASSISTANCE [24 CFR 983.251(A) AND (B)] ...................................... 22 18-V.D. ORGANIZATION OF THE WAITING LIST [24 CFR 983.251(C); NOTICE PIH 2019-23] ......... 23 18-V.E. SELECTION FROM THE WAITING LIST [24 CFR 983.251(C)] .................................................. 24 18-V.F. OFFER OF PBV ASSISTANCE........................................................................................................ 25 18-V.G. OWNER SELECTION OF TENANTS [24 CFR 983.253] ............................................................... 26 18-V.H. TENANT SCREENING [24 CFR 983.255] ...................................................................................... 27 31 xiv Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART VI: OCCUPANCY ................................................................................................................................... 29 18-VI.A. OVERVIEW..................................................................................................................................... 29 18-VI.B. LEASE [24 CFR 983.256] ................................................................................................................ 29 18-VI.C. PUBLIC HOUSING FSS AND ROSS PARTICIPANTS [NOTICE PIH 2019-23] ........................ 34 18-VI.D. RESIDENT PARTICIPATION AND FUNDING [NOTICE PIH 2019-23] ................................... 35 18-VI.E. MOVES ............................................................................................................................................ 35 18-VI.F. REEXAMINATIONS [RAD PBV QUICK REFERENCE GUIDE 06/20] ....................................... 39 18-VI.G. EARNED INCOME DISALLOWANCE [NOTICE PIH 2019-23] ................................................. 39 18-VI.H. RESIDENTS’ PROCEDURAL RIGHTS [NOTICE PIH 2019-23] ................................................ 39 18-VI.I. INFORMAL REVIEWS AND HEARINGS [NOTICE PIH 2019-23] ............................................. 40 PART VII: DETERMINING CONTRACT RENT ............................................................................................. 41 18-VII.A. INITIAL CONTRACT RENTS [NOTICE PIH 2019-23] .............................................................. 41 18-VII.C. UTILITY ALLOWANCES [NOTICE PIH 2019-23; RAD PBV QUICK REFERENCE GUIDE 06/20] ............................................................................................................................................................... 43 18-VII.D. REASONABLE RENT [24 CFR 983.303] ..................................................................................... 43 PART VIII: PAYMENTS TO OWNER .............................................................................................................. 45 18-VIII.A. HOUSING ASSISTANCE PAYMENTS ...................................................................................... 45 18-VIII.B. VACANCY PAYMENTS [24 CFR 983.352] ............................................................................... 45 18-VIII.C. TENANT RENT TO OWNER [24 CFR 983.353] ........................................................................ 46 18.VIII.E. OTHER FEES AND CHARGES [24 CFR 983.354] ..................................................................... 48 CHAPTER 19 ........................................................................................................................................................... 1 SPECIAL PURPOSE VOUCHERS ....................................................................................................................... 1 PART I: FAMILY UNIFICATION PROGRAM (FUP) ....................................................................................... 2 19-I.A. PROGRAM OVERVIEW [Fact Sheet, Housing Choice Voucher Program Family Unification Program (FUP)] ................................................................................................................................................. 2 19-I.B. PUBLIC CHILD WELFARE AGENCY (PCWA) ............................................................................... 3 19-I.C. FUP FAMILY VOUCHER ELIGIBILITY CRITERIA ....................................................................... 4 19-I.D. FUP YOUTH VOUCHER ELIGIBILITY CRITERIA ......................................................................... 5 19-I.E. ASSISTANCE PERIOD [FR Notice 1/24/22] ...................................................................................... 6 19-I.F. REFERRALS AND WAITING LIST MANAGEMENT .................................................................... 12 19-I.G. PHA HCV ELIGIBILITY DETERMINATION ................................................................................. 13 19.I.H. LEASE UP [FR Notice 1/24/22] ......................................................................................................... 14 19-I.I. TERMINATION OF ASSISTANCE ................................................................................................... 14 9-I.J. FUP PORTABILITY .............................................................................................................................. 16 19-I.K. PROJECT-BASING FUP VOUCHERS [Notice PIH 2017-21; FR Notice 1/24/22] .......................... 16 PART II: FOSTER YOUTH TO INDEPENDENCE INITIATIVE .................................................................... 17 19-II.A. PROGRAM OVERVIEW [Notice PIH 2020-28; Notice PIH 2023-04; FR Notice 1/24/22] ............ 17 19-II.B. PARTNERING AGENCIES [Notice PIH 2023-04; FYI Updates and Partnering Opportunities Webinar] .......................................................................................................................................................... 17 19-II.C. YOUTH ELIGIBILITY CRITERIA [Notice PIH 2023-04; FYI Q&As; FYI FAQs] ....................... 18 32 xv Administrative Plan - HCV Program Revised 12/05/202307/09/2024 19-II.D. SUPPORTIVE SERVICES [Notice PIH 2023-04; FYI Updates and Partnering Opportunities Webinar; FYI Q&As] ...................................................................................................................................... 18 19-II.E. REFERRALS AND WAITING LIST MANAGEMENT [Notice PIH 2023-04; FYI Updates and Partnering Opportunities Webinar FYI FAQs] ................................................................................................ 19 19-II.F. PHA HCV ELIGIBILITY DETERMINATION [FYI FAQs] ............................................................ 20 19-II.G. LEASE UP [FR Notice 1/24/22] ........................................................................................................ 21 Awards of FYI Tenant Protection Vouchers (TPVs) continue to be administered under the requirements of Notice PIH 2019-20. This includes turnover requirements and the requirement to inform HUD should a youth not use a voucher or leave the program. For example, FYI TPVs awarded under Notice PIH 2019-20 “sunset” when a youth leaves the program. This means that the PHA cannot reissue FYI TPV assistance issued under that notice to another youth when an initial youth exits the HCV program. HUD does not have the authority to allow the voucher to be used for a youth other than the one identified in the request. ........... 22 19-II.H. MAXIM]UM ASSISTANCE PERIOD [Notice PIH 2023-04 and FYI FAQs; FR Notice 1/24/22] . 23 19-II.I. TERMINATION OF ASSISTANCE [FYI FAQs] .............................................................................. 28 19-II.J. PORTABILITY [FYI FAQs] .............................................................................................................. 29 19-II.K. PROJECT-BASING FYI VOUCHERS [FYI FAQs; FR Notice 1/24/22; Notice PIH 2024-03] ...... 29 PART III: VETERANS AFFAIRS SUPPORTIVE HOUSING (VASH) PROGRAM ....................................... 30 19-III.A. OVERVIEW ..................................................................................................................................... 30 19-III.B. REFERRALS [FR Notice 9/27/21 and HUD-VASH Qs and As]..................................................... 31 19-III.C. HCV PROGRAM ELIGIBILITY [FR Notice 9/27/21] .................................................................... 31 19-III.D. CHANGES IN FAMILY COMPOSITION ...................................................................................... 33 19-III.E. LEASING [FR Notice 9/27/21] ........................................................................................................ 33 19-III.F. PORTABILITY [FR Notice 9/27/21 and Notice PIH 2011-53] ....................................................... 35 19-III.G. TERMINATION OF ASSISTANCE [FR Notice 9/27/21] .............................................................. 36 19-III.H. PROJECT-BASING VASH VOUCHERS ....................................................................................... 37 PART IV: MAINSTREAM VOUCHER PROGRAM ........................................................................................ 39 19-IV.A. PROGRAM OVERVIEW [Notice PIH 2020-01] ............................................................................ 39 19-IV.B. ELIGIBLE POPULATION [Notice PIH 2020-01 and Notice PIH 2020-22] .................................. 39 19-IV.C. PARTNERSHIP AND SUPPORTIVE SERVICES [Notice PIH 2020-01] ..................................... 40 19-IV.D. WAITING LIST ADMINISTRATION............................................................................................ 40 19-IV.E. PORTABILITY [Notice PIH 2020-01 and Mainstream Voucher Basics Webinar, 10/15/20] ......... 41 19-IV.F. PROJECT-BASING MAINSTREAM VOUCHERS [FY19 Mainstream Voucher NOFA Q&A]... 41 PART V: NON-ELDERLY DISABLED (NED) VOUCHERS .......................................................................... 42 19-V.A. PROGRAM OVERVIEW [Notice PIH 2013-19] ............................................................................. 42 19-V.B. ELIGIBLE POPULATION ............................................................................................................... 43 19-V.C. WAITING LIST ................................................................................................................................ 43 19-V.D. LEASE UP [Notice PIH 2013-19] ..................................................................................................... 44 19-V.E. PORTABILITY [NED Category 2 FAQs] ......................................................................................... 46 PART VI: STABILITY VOUCHER PROGRAM .............................................................................................. 47 19-VI.A. PROGRAM OVERVIEW [Notice PIH 2022-24] ............................................................................ 47 19-VI.B. PARTNERING ORGANIZATION [Notice PIH 2022-24] .............................................................. 47 33 xvi Administrative Plan - HCV Program Revised 12/05/202307/09/2024 19-VI.C. REFERRALS [Notice PIH 2022-24] ................................................................................................ 47 19-VI.D. WAITING LIST [Notice PIH 2022-24] ........................................................................................... 49 19-VI.E. FAMILY ELIGIBILITY [Notice PIH 2022-24] ............................................................................... 50 19-VI.F. HOUSING SEARCH AND LEASING ............................................................................................ 55 19-VI.G. PAYMENT STANDARDS .............................................................................................................. 56 19-VI.H. PROJECT-BASED UNITS .............................................................................................................. 57 TEMPORARY POLICY SUPPLEMENT ............................................................................................................ 1 EMERGENCY HOUSING VOUCHERS (EHV) ................................................................................................. 1 PART I: FUNDING ............................................................................................................................................... 2 TPS-I.A. FUNDING OVERVIEW .................................................................................................................... 2 TPS-I.B. SERVICE FEES ................................................................................................................................. 3 PART II: PARTNERING AGENCIES ................................................................................................................. 6 TPS-II.A. CONTINUUM OF CARE (COC) ..................................................................................................... 6 TPS-II.B. OTHER PARTNERING ORGANIZATIONS .................................................................................. 6 TPS-II.C. REFERRALS .................................................................................................................................... 6 TPS-II.D. REFERRAL PROCESS .................................................................................................................... 9 PART III: WAITING LIST MANAGEMENT ................................................................................................... 11 TPS-III. A. HCV WAITING LIST .................................................................................................................. 11 TPS-III.B. EHV WAITING LIST ................................................................................................................... 11 TPS-III.C. PREFERENCES ............................................................................................................................ 11 PART IV: FAMILY ELIGIBILTY ..................................................................................................................... 13 TPS-IV.A. OVERVIEW .................................................................................................................................. 13 TPS-IV.B. REFERRING AGENCY DETERMINATION OF ELIGIBLITY ................................................. 13 TPS-IV.C. PHA SCREENING ........................................................................................................................ 13 TPS-IV.D. INCOME VERIFICATION AT ADMISSION ............................................................................. 15 TPS-IV.E. SOCIAL SECURITY NUMBER AND CITIZENSHIP STATUS VERIFICATION ................... 17 TPS-IV.F. AGE AND DISABILITY VERIFICATION .................................................................................. 17 TPS-IV.G. INCOME TARGETING ............................................................................................................... 18 PART V: HOUSING SEARCH AND LEASING ............................................................................................... 19 TPS-V.A. INITIAL VOUCHER TERM ......................................................................................................... 19 TPS-V.B. HOUSING SEARCH ASSISTANCE ............................................................................................. 19 TPS-V.C. PRE-INSPECTIONS ...................................................................................................................... 20 TPS-V.D. INITIAL LEASE TERM ................................................................................................................ 20 TPS-V.E. PORTABILITY ............................................................................................................................... 20 TPS-V.F. PAYMENT STANDARDS ............................................................................................................. 22 TPS-V.G. TERMINATION OF VOUCHERS ................................................................................................ 23 PART VI: USE OF FUNDS, REPORTING, AND FINANCIAL RECORDS .................................................... 25 GLOSSARY ............................................................................................................................................................. 1 A. ACRONYMS USED IN THE HOUSING CHOICE VOUCHER (HCV) PROGRAM ........................ 1 34 xvii Administrative Plan - HCV Program Revised 12/05/202307/09/2024 B. GLOSSARY OF SUBSIDIZED HOUSING TERMS .............................................................................. 5 CHAPTER 1 ............................................................................................................................................................. 1 OVERVIEW OF THE PROGRAM AND PLAN ................................................................................................. 1 PART I: HACCC ................................................................................................................................................... 2 1-I.A. OVERVIEW ........................................................................................................................................... 2 1-I.B. ORGANIZATION AND STRUCTURE OF HACCC ............................................................................ 2 1-I.C. HACCC MISSION .................................................................................................................................. 2 1-I.D. HACCC’S PROGRAMS......................................................................................................................... 3 1-I.E. HACCC’S COMMITMENT TO ETHICS AND SERVICE ................................................................... 3 PART II: THE HOUSING CHOICE VOUCHER (HCV) PROGRAM ................................................................ 5 1-II.A. OVERVIEW AND HISTORY OF THE PROGRAM ........................................................................... 5 1-II.B. HCV PROGRAM BASICS.................................................................................................................... 6 1-II.C. THE HCV PARTNERSHIPS ................................................................................................................ 6 1-II.D. APPLICABLE REGULATIONS ........................................................................................................ 10 PART III: THE HCV ADMINISTRATIVE PLAN ............................................................................................ 11 1-III.A. OVERVIEW AND PURPOSE OF THE PLAN ................................................................................. 11 1-III.B. CONTENTS OF THE PLAN [24 CFR 982.54] ................................................................................. 11 1-III.C. ORGANIZATION OF THE PLAN .................................................................................................... 13 1-III.D. UPDATING AND REVISING THE PLAN ...................................................................................... 13 CHAPTER 2 ............................................................................................................................................................. 1 FAIR HOUSING AND EQUAL OPPORTUNITY............................................................................................... 1 PART I: NONDISCRIMINATION ....................................................................................................................... 2 2-I.A. OVERVIEW ........................................................................................................................................... 2 2-I.B. NONDISCRIMINATION ....................................................................................................................... 2 PART II: POLICIES RELATED TO PERSONS WITH DISABILITIES ............................................................ 5 2-II.A. Overview ................................................................................................................................................ 5 2-II.B. Definition of Reasonable Accommodation ............................................................................................ 5 2-II.C. Request for An Accommodation ............................................................................................................ 6 2-II.D. Verification of Disability ....................................................................................................................... 7 2-II.E. Approval/Denial of a Requested Accommodation ................................................................................. 7 2-II.F. Program Accessibility for Persons with Hearing or Vision Impairments ............................................... 8 2-II.G. Physical Accessibility ............................................................................................................................ 9 2-II.H. Denial or Termination of Assistance ................................................................................................... 10 PART III: IMPROVING ACCESS TO SERVICES FOR PERSONS WITH LIMITED ENGLISH PROFICIENCY (LEP) ........................................................................................................................................ 11 2-III.A. OVERVIEW ....................................................................................................................................... 11 2-III.B. ORAL INTERPRETATION ............................................................................................................... 11 2-III.C. WRITTEN TRANSLATION ............................................................................................................. 12 2-III.D. IMPLEMENTATION PLAN ............................................................................................................. 12 35 xviii Administrative Plan - HCV Program Revised 12/05/202307/09/2024 CHAPTER 3 ............................................................................................................................................................. 1 ELIGIBILITY .......................................................................................................................................................... 1 PART I: DEFINITIONS OF FAMILY AND HOUSEHOLD MEMBERS .......................................................... 2 3-I.A. OVERVIEW ........................................................................................................................................... 2 3-I.B. FAMILY AND HOUSEHOLD [24 CFR 982.201(c); Notice PIH 2014-20; FR Notice 02/03/12] ....... 2 3-I.C. FAMILY BREAKUP AND REMAINING MEMBER OF TENANT FAMILY ................................... 2 3-I.D. HEAD OF HOUSEHOLD [24 CFR 5.504(b)]........................................................................................ 4 3-I.E. SPOUSE, COHEAD, AND OTHER ADULT ........................................................................................ 4 3-I.F. DEPENDENT [24 CFR 5.603] ................................................................................................................ 4 3-I.G. FULL-TIME STUDENT [24 CFR 5.603; HCV GB, p. 5-29] ................................................................ 5 3-I.H. ELDERLY AND NEAR-ELDERLY PERSONS, AND ELDERLY FAMILY [24 CFR 5.100 and 5.403, FR Notice 02/03/12] ............................................................................................................................... 5 3-I.I. PERSONS WITH DISABILITIES AND DISABLED FAMILY [24 CFR 5.403, FR Notice 02/03/12] . 5 3-I.J. GUESTS [24 CFR 5.100] ......................................................................................................................... 6 3-I.K. FOSTER CHILDREN AND FOSTER ADULTS ................................................................................... 7 3-I.L. ABSENT FAMILY MEMBERS ............................................................................................................. 7 3-I.M. LIVE-IN AIDE ....................................................................................................................................... 9 PART II: BASIC ELIGIBILITY CRITERIA ...................................................................................................... 11 3-II.A. INCOME ELIGIBILITY AND TARGETING .................................................................................... 11 3-II.B. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5, Subpart E] ........................... 12 3-II.C. SOCIAL SECURITY NUMBERS [24 CFR 5.216 and 5.218, Notice PIH 2012-10] .......................... 15 3-II.D. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 5.230; HCV GB, p. 5-13] ....... 15 3-II.E. STUDENTS ENROLLED IN INSTITUTIONS OF HIGHER EDUCATION [24 CFR 5.612, FR Notice 4/10/06, FR Notice 9/21/16] ................................................................................................................ 15 3-II.F. EIV SYSTEM SEARCHES [Notice PIH 2018-18; EIV FAQs; EIV System Training 9/30/20] ......... 19 PART III: DENIAL OF ASSISTANCE .............................................................................................................. 21 3-III.A. OVERVIEW ....................................................................................................................................... 21 3-III.B. MANDATORY DENIAL OF ASSISTANCE [24 CFR 982.553(a)] ................................................. 22 3-III.C. OTHER PERMITTED REASONS FOR DENIAL OF ASSISTANCE ............................................. 23 3-III.D. SCREENING ...................................................................................................................................... 25 3-III.E. CRITERIA FOR DECIDING TO DENY ASSISTANCE .................................................................. 27 3-III.F. NOTICE OF ELIGIBILITY OR DENIAL ......................................................................................... 29 3-III.G. PROHIBITION AGAINST DENIAL OF ASSISTANCE TO VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT AND STALKING ............................................ 30 CHAPTER 4 ............................................................................................................................................................. 1 APPLICATIONS, WAITING LIST AND TENANT SELECTION ................................................................... 1 PART I: THE APPLICATION PROCESS............................................................................................................ 2 4-I.A. OVERVIEW ........................................................................................................................................... 2 4-I.B. APPLYING FOR ASSISTANCE [HCV GB, pp. 4-11 – 4-16, Notice PIH 2009-36] ............................ 2 4-I.C. ACCESSIBILITY OF THE APPLICATION PROCESS ....................................................................... 2 36 xix Administrative Plan - HCV Program Revised 12/05/202307/09/2024 4-I.D. PLACEMENT ON THE WAITING LIST.............................................................................................. 3 PART II: MANAGING THE WAITING LIST ..................................................................................................... 5 4-II.A. OVERVIEW .......................................................................................................................................... 5 4-II.B. ORGANIZATION OF THE WAITING LIST [24 CFR 982.204 and 205] ........................................... 5 4-II.C. OPENING AND CLOSING THE WAITING LIST [24 CFR 982.206] ................................................ 6 4-II.D. FAMILY OUTREACH [HCV GB, pp. 4-2 to 4-4] ............................................................................... 7 4-II.E. REPORTING CHANGES IN FAMILY CIRCUMSTANCES .............................................................. 8 4-II.F. UPDATING THE WAITING LIST [24 CFR 982.204] ......................................................................... 8 PART III: SELECTION FOR HCV ASSISTANCE ........................................................................................... 10 4-III.A. OVERVIEW ....................................................................................................................................... 10 4-III.B. SELECTION AND HCV FUNDING SOURCES .............................................................................. 10 4-III.C. SELECTION METHOD ..................................................................................................................... 11 4-III.D. NOTIFICATION OF SELECTION ................................................................................................... 15 4-III.E. THE APPLICATION INTERVIEW ................................................................................................... 16 4-III.F. COMPLETING THE APPLICATION PROCESS ............................................................................. 17 CHAPTER 5 ............................................................................................................................................................. 1 BRIEFINGS AND VOUCHER ISSUANCE ......................................................................................................... 1 PART I: BRIEFINGS AND FAMILY OBLIGATIONS ...................................................................................... 2 5-I.A. OVERVIEW ........................................................................................................................................... 2 5-I.B. BRIEFING [24 CFR 982.301] ................................................................................................................ 2 5-I.C. FAMILY OBLIGATIONS ...................................................................................................................... 6 PART II: SUBSIDY STANDARDS AND VOUCHER ISSUANCE ................................................................. 10 5-II.A. OVERVIEW ........................................................................................................................................ 10 5-II.B. DETERMINING FAMILY UNIT (VOUCHER) SIZE [24 CFR 982.402] ......................................... 10 5-II.C. EXCEPTIONS TO SUBSIDY STANDARDS .................................................................................... 11 5-II.D. VOUCHER ISSUANCE [24 CFR 982.302] ........................................................................................ 12 5-II.E. VOUCHER TERM AND EXTENSIONS ........................................................................................... 13 CHAPTER 6 ............................................................................................................................................................. 1 INCOME AND SUBSIDY DETERMINATIONS ................................................................................................ 1 PART I: ANNUAL INCOME ............................................................................................................................... 2 6-I.A. OVERVIEW ........................................................................................................................................... 2 6-I.B. HOUSEHOLD COMPOSITION AND INCOME .................................................................................. 2 6-I.C. ANTICIPATING ANNUAL INCOME .................................................................................................. 6 6-I.D. EARNED INCOME ................................................................................................................................ 8 6-I.E. EARNED INCOME DISALLOWANCE FOR PERSONS WITH DISABILITIES [24 CFR 5.617; Streamlining Final Rule (SFR) Federal Register 3/8/16] ................................................................................. 11 6-I.F. BUSINESS INCOME [24 CFR 5.609(b)(2)]......................................................................................... 13 6-I.G. ASSETS [24 CFR 5.609(b)(3); 24 CFR 5.603(b)] ................................................................................ 15 6-I.H. PERIODIC PAYMENTS ...................................................................................................................... 23 37 xx Administrative Plan - HCV Program Revised 12/05/202307/09/2024 6-I.I. PAYMENTS IN LIEU OF EARNINGS ................................................................................................ 25 6-I.J. WELFARE ASSISTANCE .................................................................................................................... 25 6-I.K. PERIODIC AND DETERMINABLE ALLOWANCES [24 CFR 5.609(b)(7)] ................................... 26 6-I.L. STUDENT FINANCIAL ASSISTANCE [24 CFR 5.609(b)(9); Notice PIH 2015-21] ........................ 27 6-I.M. ADDITIONAL EXCLUSIONS FROM ANNUAL INCOME ............................................................. 28 PART II: ADJUSTED INCOME ........................................................................................................................ 32 6-II.A. INTRODUCTION Overview ............................................................................................................... 32 6-II.B. DEPENDENT DEDUCTION .............................................................................................................. 32 6-II.C. ELDERLY OR DISABLED FAMILY DEDUCTION ........................................................................ 33 6-II.D. MEDICAL EXPENSES DEDUCTION [24 CFR 5.611(a)(3)(i)] ........................................................ 33 6-II.E. DISABILITY ASSISTANCE EXPENSES DEDUCTION [24 CFR 5.603(b) and 24 CFR 5.611(a)(3)(ii)] ................................................................................................................................................. 34 6-II.F. CHILD CARE EXPENSE DEDUCTION ............................................................................................ 37 PART III: CALCULATING FAMILY SHARE AND PHA SUBSIDY ............................................................. 41 6-III.A. OVERVIEW OF RENT AND SUBSIDY CALCULATIONS .......................................................... 41 6-III.B. FINANCIAL HARDSHIPS AFFECTING MINIMUM RENT [24 CFR 5.630]................................ 42 6-III.C. APPLYING PAYMENT STANDARDS [24 CFR 982.505; 982.503(b)] .......................................... 45 6-III.D. APPLYING UTILITY ALLOWANCES [24 CFR 982.517] ............................................................. 47 6-III.E. PRORATED ASSISTANCE FOR MIXED FAMILIES [24 CFR 5.520] .......................................... 48 CHAPTER 7 ............................................................................................................................................................. 1 VERIFICATION ..................................................................................................................................................... 1 PART I: GENERAL VERIFICATION REQUIREMENTS.................................................................................. 2 7-I.A. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 982.516 AND 982.551, 24 CFR 5.230] ................................................................................................................................................................. 2 7-I.B. OVERVIEW OF VERIFICATION REQUIREMENTS ......................................................................... 2 7-I.C. UP-FRONT INCOME VERIFICATION (UIV) ..................................................................................... 4 7-I.D. Fixed Income Sources of Income ............................................................................................................ 6 7-I.E. THIRD-PARTY WRITTEN AND ORAL VERIFICATION.................................................................. 7 7-I.F. SELF-CERTIFICATION ....................................................................................................................... 10 PART II: VERIFYING FAMILY INFORMATION ........................................................................................... 11 7-II.A. VERIFICATION OF LEGAL IDENTITY .......................................................................................... 11 7-II.B. SOCIAL SECURITY NUMBERS [24 CFR 5.216, Notice PIH 2012-10] .......................................... 12 7-II.C. DOCUMENTATION OF AGE ........................................................................................................... 14 7-II.D. FAMILY RELATIONSHIPS .............................................................................................................. 14 7-II.E. VERIFICATION OF STUDENT STATUS ......................................................................................... 15 7-II.F. DOCUMENTATION OF DISABILITY .............................................................................................. 17 7-II.G. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5.508] ..................................... 18 7-II.H. VERIFICATION OF PREFERENCE STATUS ................................................................................. 19 PART III: VERIFYING INCOME AND ASSETS ............................................................................................. 20 7-III.A. EARNED INCOME ........................................................................................................................... 20 38 xxi Administrative Plan - HCV Program Revised 12/05/202307/09/2024 7-III.B. BUSINESS AND SELF EMPLOYMENT INCOME ........................................................................ 20 7-III.C. PERIODIC PAYMENTS AND PAYMENTS IN LIEU OF EARNINGS ......................................... 21 7-III.D. ALIMONY OR CHILD SUPPORT ................................................................................................... 22 7-III.E. ASSETS AND INCOME FROM ASSETS ........................................................................................ 22 7-III.F. NET INCOME FROM RENTAL PROPERTY .................................................................................. 23 7-III.G. RETIREMENT ACCOUNTS ............................................................................................................ 24 7-III.H. INCOME FROM EXCLUDED SOURCES ....................................................................................... 24 7-III.I. ZERO ANNUAL INCOME STATUS ................................................................................................. 25 7-III.J. STUDENT FINANCIAL ASSISTANCE [Notice PIH 2015-21] ........................................................ 25 7-III.K. PARENTAL INCOME OF STUDENTS SUBJECT TO ELIGIBILITY RESTRICTIONS .............. 26 PART IV: VERIFYING MANDATORY DEDUCTIONS ................................................................................. 27 7-IV.A. DEPENDENT AND ELDERLY/DISABLED HOUSEHOLD DEDUCTIONS ............................... 27 7-IV.B. MEDICAL EXPENSE DEDUCTION ............................................................................................... 27 7-IV.C. DISABILITY ASSISTANCE EXPENSES ........................................................................................ 28 7-IV.D. CHILD CARE EXPENSES ............................................................................................................... 30 CHAPTER 8 ............................................................................................................................................................. 1 HOUSING QUALITY STANDARDS AND RENT REASONABLENESS DETERMINATIONS .................. 1 PART I: PHYSICAL STANDARDS .................................................................................................................... 2 8-I.A. GENERAL HUD REQUIREMENTS ..................................................................................................... 2 8-I.B. ADDITIONAL LOCAL REQUIREMENTS .......................................................................................... 3 8-I.C. LIFE-THREATENING CONDITIONS [24 CFR 982.404(a); FR Notice 1/18/17] ................................ 8 8-I.D. OWNER AND FAMILY RESPONSIBILITIES [24 CFR 982.404] .................................................... 10 8-I.E. SPECIAL REQUIREMENTS FOR CHILDREN WITH ENVIRONMENTAL INTERVENTION BLOOD LEAD LEVEL [24 CFR 35.1225; FR Notice 1/13/17, Notice PIH 2017-13] .................................. 10 8-I.F. VIOLATION OF HQS SPACE STANDARDS [24 CFR 982.403] ...................................................... 11 PART II: THE INSPECTION PROCESS ........................................................................................................... 12 8-II.A. OVERVIEW [24 CFR 982.405] .......................................................................................................... 12 8-II.B. INITIAL HQS INSPECTION [24 CFR 982.401(a)] ........................................................................... 14 8-II.C. BIENNIAL HQS INSPECTIONS [ 24 CFR 982.405 and 982.406; Notice PIH 2016-05].................. 16 8-II.D. SPECIAL INSPECTIONS [24 CFR 982.405(g)] ................................................................................ 16 8-II.E. QUALITY CONTROL INSPECTIONS [24 CFR 982.405(b); HCV GB, p. 10-32] ........................... 17 8-II.F. INSPECTION RESULTS AND REINSPECTIONS FOR UNITS UNDER HAP CONTRACT ........ 17 8-II.G. ENFORCING OWNER COMPLIANCE ............................................................................................ 19 8-II.H. ENFORCING FAMILY COMPLIANCE WITH HQS [24 CFR 982.404(b)] ..................................... 20 PART III: RENT REASONABLENESS [24 CFR 982.507]............................................................................... 21 8-III.A. OVERVIEW ....................................................................................................................................... 21 8-III.B. WHEN RENT REASONABLENESS DETERMINATIONS ARE REQUIRED .............................. 22 8-III.C. HOW COMPARABILITY IS ESTABLISHED ................................................................................. 24 8-III.D. PHA RENT REASONABLENESS METHODOLOGY .................................................................... 24 39 xxii Administrative Plan - HCV Program Revised 12/05/202307/09/2024 CHAPTER 9 ............................................................................................................................................................. 1 GENERAL LEASING POLICIES......................................................................................................................... 1 9-I.A. TENANT SCREENING ......................................................................................................................... 2 9-I.B. REQUESTING TENANCY APPROVAL [Form HUD-52517] ............................................................. 2 9-I.C. OWNER PARTICIPATION ................................................................................................................... 4 9-I.D. ELIGIBLE UNITS .................................................................................................................................. 4 9-I.E. LEASE AND TENANCY ADDENDUM ............................................................................................... 6 9-I.F. TENANCY APPROVAL [24 CFR 982.305] .......................................................................................... 9 9-I.G. HAP CONTRACT EXECUTION [24 CFR 982.305] ........................................................................... 10 9-I.H. CHANGES IN LEASE OR RENT [24 CFR 982.308] ......................................................................... 11 CHAPTER 10 ........................................................................................................................................................... 1 MOVING WITH CONTINUED ASSISTANCE AND PORTABILITY ............................................................ 1 PART I: MOVING WITH CONTINUED ASSISTANCE .................................................................................... 2 10-I.A. ALLOWABLE MOVES ....................................................................................................................... 2 10-I.B. RESTRICTIONS ON MOVES ............................................................................................................. 3 10-I.C. MOVING PROCESS ............................................................................................................................ 5 10.I.D . ENHANCED VOUCHERS .................................................................................................................. 6 PART II: PORTABILITY ..................................................................................................................................... 9 10-II.A. OVERVIEW ........................................................................................................................................ 9 10-II.B. INITIAL PHA ROLE ........................................................................................................................... 9 10-II.C. RECEIVING PHA ROLE .................................................................................................................. 16 CHAPTER 11 ........................................................................................................................................................... 1 REEXAMINATIONS .............................................................................................................................................. 1 PART I: ANNUAL REEXAMINATIONS [24 CFR 982.516] ............................................................................. 2 11-I.A. OVERVIEW ......................................................................................................................................... 2 11-I.B STREAMLINED ANNUAL REEXAMINATIONS [24 CFR 982.516(b)]; NEW HCV GB, REEXAMINATIONS........................................................................................................................................ 2 11-I.C. SCHEDULING ANNUAL REEXAMINATIONS ............................................................................... 3 11-I.D. CONDUCTING ANNUAL REEXAMINATIONS .............................................................................. 4 11-I.E. DETERMINING ONGOING ELIGIBILITY OF CERTAIN STUDENTS [24 CFR 982.552(b)(5)] ........................................................................................................................................................................... 5 11-I.F. EFFECTIVE DATES ............................................................................................................................ 5 PART II: INTERIM REEXAMINATIONS [24 CFR 982.516] ............................................................................ 7 11-II.A. OVERVIEW ........................................................................................................................................ 7 11-II.B. CHANGES IN FAMILY AND HOUSEHOLD COMPOSITION ...................................................... 7 11-II.C. CHANGES AFFECTING INCOME OR EXPENSES ........................................................................ 9 11-II.D. PROCESSING THE INTERIM REEXAMINATION ...................................................................... 11 PART III: RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT .............................................. 13 11-III.A. OVERVIEW ..................................................................................................................................... 13 11-III.B. CHANGES IN PAYMENT STANDARDS AND UTILITY ALLOWANCES ............................... 13 40 xxiii Administrative Plan - HCV Program Revised 12/05/202307/09/2024 11-III.C. NOTIFICATION OF NEW FAMILY SHARE AND HAP AMOUNT ........................................... 14 11-III.D. DISCREPANCIES ........................................................................................................................... 15 CHAPTER 12 ........................................................................................................................................................... 1 TERMINATION OF ASSISTANCE AND TENANCY ....................................................................................... 1 PART I: GROUNDS FOR TERMINATION OF ASSISTANCE ......................................................................... 2 12-I.A. OVERVIEW ......................................................................................................................................... 2 12-I.B. FAMILY NO LONGER REQUIRES ASSISTANCE [24 CFR 982.455] ............................................ 2 12-I.C. FAMILY CHOOSES TO TERMINATE ASSISTANCE ..................................................................... 2 12-I.D. MANDATORY TERMINATION OF ASSISTANCE ......................................................................... 2 12-I.E. MANDATORY POLICIES AND OTHER AUTHORIZED TERMINATIONS .................................. 5 PART II: APPROACH TO TERMINATION OF ASSISTANCE ...................................................................... 10 12-II.A. OVERVIEW ...................................................................................................................................... 10 12-II.B. METHOD OF TERMINATION [24 CFR 982.552(a)(3)] ................................................................. 10 12-II.C. ALTERNATIVES TO TERMINATION OF ASSISTANCE ............................................................ 10 12-II.D. CRITERIA FOR DECIDING TO TERMINATE ASSISTANCE ..................................................... 10 12-II.E. TERMINATIONS RELATED TO DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT OR STALKING ............................................................................................................................ 13 12-II.F. TERMINATION NOTICE ................................................................................................................. 15 PART III: TERMINATION OF TENANCY BY THE OWNER ....................................................................... 17 12-III.A. OVERVIEW ..................................................................................................................................... 17 12-III.B. GROUNDS FOR OWNER TERMINATION OF TENANCY [24 CFR 982.310, 24 CFR 5.2005(c), and Form HUD-52641-A, Tenancy Addendum] ............................................................................................. 17 12-III.C. EVICTION [24 CFR 982.310(e) and (f) and Form HUD-52641-A, Tenancy Addendum] .............. 19 12-III.D. DECIDING WHETHER TO TERMINATE TENANCY [24 CFR 982.310(h), 24 CFR 982.310(h)(4)].................................................................................................................................................. 19 12-III.E. EFFECT OF TENANCY TERMINATION ON THE FAMILY’S ASSISTANCE ......................... 20 CHAPTER 13 ........................................................................................................................................................... 1 OWNERS ................................................................................................................................................................. 1 PART I. OWNERS IN THE HCV PROGRAM .................................................................................................... 2 13-I.A. OWNER RECRUITMENT AND RETENTION [HCV GB, pp. 2-4 to 2-6; HCV Landlord Strategy Guidebook for PHAs] ........................................................................................................................................ 2 13-I.B. BASIC HCV PROGRAM REQUIREMENTS ..................................................................................... 3 13-I.C. OWNER RESPONSIBILITIES [24 CFR 982.452] .............................................................................. 5 13-I.D. OWNER QUALIFICATIONS .............................................................................................................. 5 13-I.E. NON-DISCRIMINATION [HAP Contract – Form HUD-52641] ........................................................ 9 PART II. HAP CONTRACTS ............................................................................................................................. 10 13-II.A. OVERVIEW ...................................................................................................................................... 10 13-II.B. HAP CONTRACT CONTENTS ....................................................................................................... 10 13-II.C. HAP CONTRACT PAYMENTS ....................................................................................................... 11 13-II.D. BREACH OF HAP CONTRACT [24 CFR 982.453] ........................................................................ 13 41 xxiv Administrative Plan - HCV Program Revised 12/05/202307/09/2024 13-II.E. HAP CONTRACT TERM AND TERMINATIONS ......................................................................... 14 13-II.F. CHANGE IN OWNERSHIP / ASSIGNMENT OF THE HAP CONTRACT [HUD-52641] ............ 15 13-II.G. FORECLOSURE [Notice PIH 2010-49] ........................................................................................... 17 CHAPTER 14 ........................................................................................................................................................... 1 PROGRAM INTEGRITY ...................................................................................................................................... 1 PART I: PREVENTING, DETECTING, AND INVESTIGATING ERRORS AND PROGRAM ABUSE ........ 2 14-I.A. PREVENTING ERRORS AND PROGRAM ABUSE ......................................................................... 2 14-I.B. DETECTING ERRORS AND PROGRAM ABUSE ............................................................................ 3 14-I.C. INVESTIGATING ERRORS AND PROGRAM ABUSE ................................................................... 4 PART II: CORRECTIVE MEASURES AND PENALTIES ................................................................................ 7 14-II.A. SUBSIDY UNDER- OR OVERPAYMENTS ..................................................................................... 7 14-II.B. FAMILY-CAUSED ERRORS AND PROGRAM ABUSE ................................................................ 7 14-II.C. OWNER-CAUSED ERROR OR PROGRAM ABUSE ...................................................................... 9 14-II.D. PHA-CAUSED ERRORS OR PROGRAM ABUSE......................................................................... 10 14-II.E. CRIMINAL PROSECUTION ............................................................................................................ 11 14-II.F. FRAUD AND PROGRAM ABUSE RECOVERIES ......................................................................... 12 CHAPTER 15 ........................................................................................................................................................... 1 SPECIAL HOUSING TYPES ................................................................................................................................ 1 PART I: SINGLE ROOM OCCUPANCY ............................................................................................................ 2 15-I.A. OVERVIEW ......................................................................................................................................... 2 15-I.B. PAYMENT STANDARD, UTILITY ALLOWANCE, AND HAP CALCULATION ........................ 2 15-I.C. HOUSING QUALITY STANDARDS (HQS) ...................................................................................... 2 PART II: CONGREGATE HOUSING ................................................................................................................. 4 15-II.A. OVERVIEW ........................................................................................................................................ 4 15-II.B. PAYMENT STANDARD, UTILITY ALLOWANCE, AND HAP CALCULATION ....................... 4 15-II.C. HOUSING QUALITY STANDARDS ................................................................................................ 4 PART III: GROUP HOME .................................................................................................................................... 6 15-III.A. OVERVIEW ....................................................................................................................................... 6 15-III.B. PAYMENT STANDARD, UTILITY ALLOWANCE, AND HAP CALCULATION ...................... 6 15-III.C. HOUSING QUALITY STANDARDS ............................................................................................... 7 PART IV: SHARED HOUSING ........................................................................................................................... 9 15-IV.A. OVERVIEW....................................................................................................................................... 9 15-IV.B. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION ..................... 10 15-IV.C. HOUSING QUALITY STANDARDS ............................................................................................. 11 PART V: COOPERATIVE HOUSING .............................................................................................................. 12 15-V.A. OVERVIEW ...................................................................................................................................... 12 15-V.B. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION ...................... 12 15-V.C. HOUSING QUALITY STANDARDS .............................................................................................. 12 PART VI: MANUFACTURED HOMES ............................................................................................................ 14 42 xxv Administrative Plan - HCV Program Revised 12/05/202307/09/2024 15-VI.A. OVERVIEW..................................................................................................................................... 14 15-VI.B. SPECIAL REQUIREMENTS FOR MANUFACTURED HOMEOWNERS WHO LEASE A SPACE ............................................................................................................................................................. 14 15-VI.C. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION ..................... 14 15-VI.D. HOUSING QUALITY STANDARDS ............................................................................................ 16 PART VII: HOMEOWNERSHIP ....................................................................................................................... 17 15-VII.A. OVERVIEW [24 CFR 982.625] ..................................................................................................... 17 15-VII.B. FAMILY ELIGIBILITY [24 CFR 982.627] ................................................................................... 17 15-VII.C. SELECTION OF FAMILIES [24 CFR 982.626] ............................................................................ 19 15-VII.D. ELIGIBLE UNITS [24 CFR 982.628] ............................................................................................ 19 15-VII.E. ADDITIONAL HACCC REQUIREMENTS FOR SEARCH AND PURCHASE [24 CFR 982.629] ......................................................................................................................................................................... 20 15-VII.F. HOMEOWNERSHIP COUNSELING [24 CFR 982.630] .............................................................. 21 15-VII.G. HOME INSPECTIONS, CONTRACT OF SALE, AND HACCC DISAPPROVAL OF SELLER [24 CFR 982.631] ............................................................................................................................................ 22 15-VII.H. FINANCING [24 CFR 982.632] ..................................................................................................... 23 15-VII.I. CONTINUED ASSISTANCE REQUIREMENTS; FAMILY OBLIGATIONS [24 CFR 982.633] 24 15-VII.J. MAXIMUM TERM OF HOMEOWNER ASSISTANCE [24 CFR 982.634] ................................. 28 15-VII.K. HOMEOWNERSHIP ASSISTANCE PAYMENTS AND HOMEOWNERSHIP EXPENSES [24 CFR 982.635] .................................................................................................................................................. 29 15-VII.L. PORTABILITY [24 CFR 982.636, 982.637, 982.353(b) and (c), 982.552, 982.553] ..................... 31 15-VII.M. MOVING WITH CONTINUED ASSISTANCE [24 CFR 982.637] ............................................. 31 15-VII.N. DENIAL OR TERMINATION OF ASSISTANCE [24 CFR 982.638] ......................................... 32 15-VII.O. INFORMAL HEARING [24 CFR 982.555] ................................................................................... 32 15-VII.P. SWITCHING FROM HOA TO RENTAL ASSISTANCE: ............................................................ 33 15-VII.Q. RECAPTURE ................................................................................................................................. 33 CHAPTER 16 ........................................................................................................................................................... 1 PROGRAM ADMINISTRATION ......................................................................................................................... 1 PART I: ADMINISTRATIVE FEE RESERVE [24 CFR 982.155] ...................................................................... 2 PART II: SETTING PROGRAM STANDARDS AND SCHEDULES ................................................................ 3 16-II.A. OVERVIEW ........................................................................................................................................ 3 16-II.B. PAYMENT STANDARDS [24 CFR 982.503; HCV GB, Chapter 7] ................................................. 3 16-II.C. UTILITY ALLOWANCES [24 CFR 982.517] ................................................................................... 6 PART III: INFORMAL REVIEWS AND HEARINGS ........................................................................................ 9 16-III.A. OVERVIEW ....................................................................................................................................... 9 16-III.B. INFORMAL REVIEWS ..................................................................................................................... 9 16-III.C. INFORMAL HEARINGS FOR PARTICIPANTS [24 CFR 982.555] ............................................. 12 16-III.D. HEARING AND APPEAL PROVISIONS FOR NONCITIZENS [24 CFR 5.514] ........................ 21 PART IV: OWNER OR FAMILY DEBTS TO HACCC .................................................................................... 26 16-IV.A. OVERVIEW..................................................................................................................................... 26 43 xxvi Administrative Plan - HCV Program Revised 12/05/202307/09/2024 16-IV.B. REPAYMENT POLICY .................................................................................................................. 26 PART V: SECTION 8 MANAGEMENT ASSESSMENT PROGRAM (SEMAP) ............................................ 31 16-V.A. OVERVIEW ...................................................................................................................................... 31 16-V.B. SEMAP CERTIFICATION [24 CFR 985.101] ................................................................................. 31 16-V.C. SEMAP INDICATORS [24 CFR 985.3 and form HUD-52648] ....................................................... 32 PART VI: RECORD KEEPING.......................................................................................................................... 37 16-VI.A. OVERVIEW..................................................................................................................................... 37 16-VI.B. RECORD RETENTION [24 CFR 982.158; 24 CFR 908.101] ........................................................ 37 16-VI.C. RECORDS MANAGEMENT .......................................................................................................... 38 PART VII: REPORTING AND RECORD KEEPING FOR CHILDREN WITH ENVIRONMENTAL INTERVENTION BLOOD LEAD LEVEL ........................................................................................................ 40 16-VII.A. OVERVIEW ................................................................................................................................... 40 16-VII.B. REPORTING REQUIREMENT [24 CFR 35.1225(e); Notice PIH 2017-13] ................................ 40 16-VII.C. DATA COLLECTION AND RECORD KEEPING [24 CFR 35.1225(f)] ..................................... 40 PART VIII: DETERMINATION OF INSUFFICIENT FUNDING.................................................................... 42 16-VIII.A. OVERVIEW .................................................................................................................................. 42 16-VIII.B. METHODOLOGY ........................................................................................................................ 42 PART IX: VIOLENCE AGAINST WOMEN ACT (VAWA): NOTIFICATION, DOCUMENTATION, CONFIDENTIALITY ......................................................................................................................................... 43 16-IX.A. OVERVIEW..................................................................................................................................... 43 16-IX.B. DEFINITIONS [24 CFR 5.2003, 42 USC 13925] ............................................................................ 43 16-IX.C. NOTIFICATION [24 CFR 5.2005(a)] Notification to Public .......................................................... 45 16-IX.D. DOCUMENTATION [24 CFR 5.2007] ........................................................................................... 46 16-IX.E. CONFIDENTIALITY [24 CFR 5.2007(b)(4)] ................................................................................. 48 CHAPTER 17 ........................................................................................................................................................... 1 PROJECT-BASED VOUCHERS .......................................................................................................................... 1 PART I: GENERAL REQUIREMENTS .............................................................................................................. 2 17-I.A. OVERVIEW ......................................................................................................................................... 2 17-I.A.1 UNITS NOT SUBJECT TO PBV PROGRAM UNIT LIMITATION ................................................ 3 17-I.A.2 OTHER UNITS NOT SUBJECT TO THE PBV PROGRAM UNIT EXCEPTION .......................... 5 17-I.A.3 INCOME-MIXING PROJECT CAP EXEMPTIONS ........................................................................ 5 17-I.B. TENANT-BASED VS. PROJECT-BASED VOUCHER ASSISTANCE ............................................ 5 17-I.C. RELOCATION REQUIREMENTS ...................................................................................................... 6 17-I.D. EQUAL OPPORTUNITY REQUIREMENTS ..................................................................................... 6 PART II: PBV OWNER PROPOSALS ................................................................................................................ 7 17-II.A. OVERVIEW ........................................................................................................................................ 7 17-II.B. OWNER PROPOSAL SELECTION PROCEDURES ........................................................................ 7 17-II.C. HOUSING TYPE ............................................................................................................................... 12 17-II.D. PROHIBITION OF ASSISTANCE FOR CERTAIN UNITS ........................................................... 12 44 xxvii Administrative Plan - HCV Program Revised 12/05/202307/09/2024 17-II.E. SUBSIDY LAYERING REQUIREMENTS [24 CFR 983.55, NOTICE PIH 2013-11, AND FR NOTICE 2/28/20] ............................................................................................................................................ 13 17-II.F. CAP ON NUMBER OF PBV UNITS IN EACH PROJECT ............................................................. 14 17-II.G. SITE SELECTION STANDARDS ................................................................................................... 17 17-II.H. ENVIRONMENTAL REVIEW ........................................................................................................ 19 PART III: DWELLING UNITS .......................................................................................................................... 21 17-III.A. OVERVIEW ..................................................................................................................................... 21 17-III.B. HOUSING QUALITY STANDARDS ............................................................................................. 21 17-III.C. HOUSING ACCESSIBILITY FOR PERSONS WITH DISABILITIES ......................................... 21 17-III.D. INSPECTING UNITS ...................................................................................................................... 21 PART IV: REHABILITATED AND NEWLY CONSTRUCTED UNITS ......................................................... 24 17-IV.A. OVERVIEW..................................................................................................................................... 24 17-IV.B. AGREEMENT TO ENTER INTO HAP CONTRACT .................................................................... 24 17-IV.C. CONDUCT OF DEVELOPMENT WORK ..................................................................................... 25 17-IV.D. COMPLETION OF HOUSING ....................................................................................................... 26 PART V: HOUSING ASSISTANCE PAYMENTS CONTRACT (HAP) .......................................................... 28 17-V.A. OVERVIEW ...................................................................................................................................... 28 17-V.B. HAP CONTRACT REQUIREMENTS ............................................................................................. 28 17-V.C. AMENDMENTS TO THE HAP CONTRACT ................................................................................. 31 17-V.D. HAP CONTRACT YEAR, ANNIVERSARY AND EXPIRATION DATES .................................. 32 17-V.E. OWNER RESPONSIBILITIES UNDER THE HAP CONTRACT .................................................. 32 17-V.F. ADDITIONAL HAP REQUIREMENTS .......................................................................................... 33 PART VI: SELECTION OF PBV PROGRAM PARTICIPANTS ...................................................................... 35 17-VI.A. OVERVIEW..................................................................................................................................... 35 17-VI.B. ELIGIBILITY FOR PBV ASSISTANCE ........................................................................................ 35 17-VI.C. ORGANIZATION OF THE WAITING LIST ................................................................................. 36 17-VI.D. SELECTION FROM THE WAITING LIST ................................................................................... 41 17-VI.E. OFFER OF PBV ASSISTANCE ...................................................................................................... 47 17-VI.F. OWNER SELECTION OF TENANTS ............................................................................................ 48 17-VI.G. TENANT SCREENING ................................................................................................................... 49 PART VII: OCCUPANCY .................................................................................................................................. 51 17-VII.A. OVERVIEW ................................................................................................................................... 51 17-VII.B. LEASE ............................................................................................................................................ 51 17-VII.C. MOVES ........................................................................................................................................... 54 17-VII.D. EXCEPTIONS TO THE OCCUPANCY CAP [24 CFR 983.262] ................................................. 56 PART VIII: DETERMINING RENT TO OWNER ............................................................................................ 58 17-VIII.A. OVERVIEW .................................................................................................................................. 58 17-VIII.B. RENT LIMITS ............................................................................................................................... 58 17-VIII.C. REASONABLE RENT .................................................................................................................. 62 45 xxviii Administrative Plan - HCV Program Revised 12/05/202307/09/2024 17-VIII.D. EFFECT OF OTHER SUBSIDY AND RENT CONTROL .......................................................... 63 PART IX: PAYMENTS TO OWNER ................................................................................................................ 65 17-IX.A. HOUSING ASSISTANCE PAYMENTS ........................................................................................ 65 17-IX.B. VACANCY PAYMENTS ................................................................................................................ 65 17-IX.C. TENANT RENT TO OWNER ......................................................................................................... 66 17-IX.D. OTHER FEES AND CHARGES ..................................................................................................... 68 CHAPTER 18 ........................................................................................................................................................... 1 PROJECT BASED VOUCHERS (PBV) UNDER THE RENTAL ASSISTANCE DEMONSTRATION (RAD) PROGRAM .................................................................................................................................................. 1 PART I: GENERAL REQUIREMENTS .............................................................................................................. 2 18-I.A. OVERVIEW AND HISTORY OF THE RAD PROGRAM ................................................................. 2 18-I.B. APPLICABLE REGULATIONS .......................................................................................................... 2 18-I.C. TENANT-BASED VS. PROJECT-BASED VOUCHER ASSISTANCE [24 CFR 983.2] .................. 5 18-I.D. RELOCATION REQUIREMENTS [NOTICE PIH 2016-17] .............................................................. 5 18-I.E. EQUAL OPPORTUNITY REQUIREMENTS [24 CFR 983.8; 24 CFR 5.105; NOTICE PIH 2016- 17] ...................................................................................................................................................................... 7 PART II: PBV PROJECT SELECTION ............................................................................................................... 9 18-II.A. OVERVIEW ........................................................................................................................................ 9 18-II.B. OWNERSHIP AND CONTROL [NOTICE PIH 2019-23] ................................................................. 9 18-II.C. PHA-OWNED UNITS [24 CFR 983.59, FR NOTICE 1/18/17, AND NOTICE PIH 2017-21]........ 10 18-II.D. SUBSIDY LAYERING REQUIREMENTS [NOTICE PIH 2019-23; NOTICE PIH 2012-32, REV- 3; NOTICE PIH 2012-32, REV-2] .................................................................................................................. 11 18-II.E. PBV PERCENTAGE LIMITATION AND UNIT CAP [NOTICE PIH 2019-23] ............................ 13 18-II.F. SITE SELECTION STANDARDS [NOTICE PIH 2019-23; NOTICE PIH 2016-17] ...................... 14 18-II.G. ENVIRONMENTAL REVIEW [NOTICE PIH 2019-23; ENVIRONMENTAL REVIEW REQUIREMENTS FOR RAD CONVERSIONS, MARCH 2019] ................................................................. 14 PART III: DWELLING UNITS .......................................................................................................................... 15 18-III.A. OVERVIEW ..................................................................................................................................... 15 18-III.B. HOUSING QUALITY STANDARDS [24 CFR 983.101] ............................................................... 15 18-III.C. HOUSING ACCESSIBILITY FOR PERSONS WITH DISABILITIES [NOTICE PIH 2016-17] . 15 18-III.D. INSPECTING UNITS ...................................................................................................................... 15 PART IV: HOUSING ASSISTANCE PAYMENTS (HAP) CONTRACT ........................................................ 18 18-IV.A. OVERVIEW [RAD PBV QUICK REFERENCE GUIDE 06/20] ................................................... 18 18-IV.B. HAP CONTRACT REQUIREMENTS ............................................................................................ 18 18-IV.C. AMENDMENTS TO THE HAP CONTRACT ................................................................................ 19 18-IV.D. HAP CONTRACT YEAR AND ANNIVERSARY DATES [24 CFR 983.302(E)] ........................ 20 18-IV.E. OWNER RESPONSIBILITIES UNDER THE HAP CONTRACT [24 CFR 983.210] ....... 20 18-IV.F. VACANCY PAYMENTS [24 CFR 983.352(B)] ............................................................................. 21 PART V: SELECTION OF PBV PROGRAM PARTICIPANTS ....................................................................... 22 18-V.A. OVERVIEW ...................................................................................................................................... 22 46 xxix Administrative Plan - HCV Program Revised 12/05/202307/09/2024 18-V.B. PROHIBITED RESCREENING OF EXISTING TENANTS UPON CONVERSION [NOTICE PIH 2019-23] .......................................................................................................................................................... 22 18-V.C. ELIGIBILITY FOR PBV ASSISTANCE [24 CFR 983.251(A) AND (B)] ...................................... 22 18-V.D. ORGANIZATION OF THE WAITING LIST [24 CFR 983.251(C); NOTICE PIH 2019-23] ......... 23 18-V.E. SELECTION FROM THE WAITING LIST [24 CFR 983.251(C)] .................................................. 24 18-V.F. OFFER OF PBV ASSISTANCE........................................................................................................ 25 18-V.G. OWNER SELECTION OF TENANTS [24 CFR 983.253] ............................................................... 26 18-V.H. TENANT SCREENING [24 CFR 983.255] ...................................................................................... 27 PART VI: OCCUPANCY ................................................................................................................................... 29 18-VI.A. OVERVIEW..................................................................................................................................... 29 18-VI.B. LEASE [24 CFR 983.256] ................................................................................................................ 29 18-VI.C. PUBLIC HOUSING FSS AND ROSS PARTICIPANTS [NOTICE PIH 2019-23] ........................ 33 18-VI.D. RESIDENT PARTICIPATION AND FUNDING [NOTICE PIH 2019-23] ................................... 34 18-VI.E. MOVES ............................................................................................................................................ 34 18-VI.F. REEXAMINATIONS [RAD PBV QUICK REFERENCE GUIDE 06/20] ..................................... 38 18-VI.G. EARNED INCOME DISALLOWANCE [NOTICE PIH 2019-23] ................................................. 38 18-VI.H. RESIDENTS’ PROCEDURAL RIGHTS [NOTICE PIH 2019-23] ................................................ 38 18-VI.I. INFORMAL REVIEWS AND HEARINGS [NOTICE PIH 2019-23] ............................................. 39 PART VII: DETERMINING CONTRACT RENT ............................................................................................. 40 18-VII.A. INITIAL CONTRACT RENTS [NOTICE PIH 2019-23] .............................................................. 40 18-VII.C. UTILITY ALLOWANCES [NOTICE PIH 2019-23; RAD PBV QUICK REFERENCE GUIDE 06/20] ............................................................................................................................................................... 42 18-VII.D. REASONABLE RENT [24 CFR 983.303] ..................................................................................... 42 PART VIII: PAYMENTS TO OWNER .............................................................................................................. 44 18-VIII.A. HOUSING ASSISTANCE PAYMENTS ...................................................................................... 44 18-VIII.B. VACANCY PAYMENTS [24 CFR 983.352] ............................................................................... 44 18-VIII.C. TENANT RENT TO OWNER [24 CFR 983.353] ........................................................................ 45 18.VIII.E. OTHER FEES AND CHARGES [24 CFR 983.354] ..................................................................... 47 CHAPTER 19 ........................................................................................................................................................... 1 SPECIAL PURPOSE VOUCHERS ....................................................................................................................... 1 PART I: FAMILY UNIFICATION PROGRAM (FUP) ....................................................................................... 2 19-I.A. PROGRAM OVERVIEW [Fact Sheet, Housing Choice Voucher Program Family Unification Program (FUP)] ................................................................................................................................................. 2 19-I.B. PUBLIC CHILD WELFARE AGENCY (PCWA) ............................................................................... 3 19-I.C. FUP FAMILY VOUCHER ELIGIBILITY CRITERIA ....................................................................... 4 19-I.D. FUP YOUTH VOUCHER ELIGIBILITY CRITERIA ......................................................................... 5 19-I.E. ASSISTANCE PERIOD [FR Notice 1/24/22] ...................................................................................... 6 19-I.F. REFERRALS AND WAITING LIST MANAGEMENT .................................................................... 12 19-I.G. PHA HCV ELIGIBILITY DETERMINATION ................................................................................. 13 19.I.H. LEASE UP [FR Notice 1/24/22] ......................................................................................................... 14 47 xxx Administrative Plan - HCV Program Revised 12/05/202307/09/2024 19-I.I. TERMINATION OF ASSISTANCE ................................................................................................... 14 9-I.J. FUP PORTABILITY .............................................................................................................................. 15 19-I.K. PROJECT-BASING FUP VOUCHERS [Notice PIH 2017-21; FR Notice 1/24/22] .......................... 16 PART II: FOSTER YOUTH TO INDEPENDENCE INITIATIVE .................................................................... 17 19-II.A. PROGRAM OVERVIEW [Notice PIH 2020-28; Notice PIH 2023-04; FR Notice 1/24/22] ............ 17 19-II.B. PARTNERING AGENCIES [Notice PIH 2023-04; FYI Updates and Partnering Opportunities Webinar] .......................................................................................................................................................... 17 19-II.C. YOUTH ELIGIBILITY CRITERIA [Notice PIH 2023-04; FYI Q&As; FYI FAQs] ....................... 18 19-II.D. SUPPORTIVE SERVICES [Notice PIH 2023-04; FYI Updates and Partnering Opportunities Webinar; FYI Q&As] ...................................................................................................................................... 18 19-II.E. REFERRALS AND WAITING LIST MANAGEMENT [Notice PIH 2023-04; FYI Updates and Partnering Opportunities Webinar FYI FAQs] ................................................................................................ 19 19-II.F. PHA HCV ELIGIBILITY DETERMINATION [FYI FAQs] ............................................................ 20 19-II.G. LEASE UP [FR Notice 1/24/22] ........................................................................................................ 21 19-II.H. MAXIM]UM ASSISTANCE PERIOD [Notice PIH 2023-04 and FYI FAQs; FR Notice 1/24/22] . 23 19-II.I. TERMINATION OF ASSISTANCE [FYI FAQs] .............................................................................. 28 19-II.J. PORTABILITY [FYI FAQs] .............................................................................................................. 29 19-II.K. PROJECT-BASING FYI VOUCHERS [FYI FAQs; FR Notice 1/24/22] ........................................ 29 PART III: VETERANS AFFAIRS SUPPORTIVE HOUSING (VASH) PROGRAM ....................................... 30 19-III.A. OVERVIEW ..................................................................................................................................... 30 19-III.B. REFERRALS [FR Notice 9/27/21 and HUD-VASH Qs and As]..................................................... 31 19-III.C. HCV PROGRAM ELIGIBILITY [FR Notice 9/27/21] .................................................................... 31 19-III.D. CHANGES IN FAMILY COMPOSITION ...................................................................................... 33 19-III.E. LEASING [FR Notice 9/27/21] ........................................................................................................ 33 19-III.F. PORTABILITY [FR Notice 9/27/21 and Notice PIH 2011-53] ....................................................... 35 19-III.G. TERMINATION OF ASSISTANCE [FR Notice 9/27/21] .............................................................. 36 19-III.H. PROJECT-BASING VASH VOUCHERS ....................................................................................... 37 PART IV: MAINSTREAM VOUCHER PROGRAM ........................................................................................ 39 19-IV.A. PROGRAM OVERVIEW [Notice PIH 2020-01] ............................................................................ 39 19-IV.B. ELIGIBLE POPULATION [Notice PIH 2020-01 and Notice PIH 2020-22] .................................. 39 19-IV.C. PARTNERSHIP AND SUPPORTIVE SERVICES [Notice PIH 2020-01] ..................................... 40 19-IV.D. WAITING LIST ADMINISTRATION............................................................................................ 40 19-IV.E. PORTABILITY [Notice PIH 2020-01 and Mainstream Voucher Basics Webinar, 10/15/20] ......... 41 19-IV.F. PROJECT-BASING MAINSTREAM VOUCHERS [FY19 Mainstream Voucher NOFA Q&A]... 41 TEMPORARY POLICY SUPPLEMENT ............................................................................................................ 1 EMERGENCY HOUSING VOUCHERS (EHV) ................................................................................................. 1 PART I: FUNDING ............................................................................................................................................... 2 TPS-I.A. FUNDING OVERVIEW .................................................................................................................... 2 TPS-I.B. SERVICE FEES ................................................................................................................................. 3 PART II: PARTNERING AGENCIES ................................................................................................................. 6 48 xxxi Administrative Plan - HCV Program Revised 12/05/202307/09/2024 TPS-II.A. CONTINUUM OF CARE (COC) ..................................................................................................... 6 TPS-II.B. OTHER PARTNERING ORGANIZATIONS .................................................................................. 6 TPS-II.C. REFERRALS .................................................................................................................................... 6 TPS-II.D. REFERRAL PROCESS .................................................................................................................... 9 PART III: WAITING LIST MANAGEMENT ................................................................................................... 11 TPS-III. A. HCV WAITING LIST .................................................................................................................. 11 TPS-III.B. EHV WAITING LIST ................................................................................................................... 11 TPS-III.C. PREFERENCES ............................................................................................................................ 11 PART IV: FAMILY ELIGIBILTY ..................................................................................................................... 13 TPS-IV.A. OVERVIEW .................................................................................................................................. 13 TPS-IV.B. REFERRING AGENCY DETERMINATION OF ELIGIBLITY................................................. 13 TPS-IV.C. PHA SCREENING ........................................................................................................................ 13 TPS-IV.D. INCOME VERIFICATION AT ADMISSION ............................................................................. 15 TPS-IV.E. SOCIAL SECURITY NUMBER AND CITIZENSHIP STATUS VERIFICATION ................... 17 TPS-IV.F. AGE AND DISABILITY VERIFICATION .................................................................................. 17 TPS-IV.G. INCOME TARGETING ............................................................................................................... 18 PART V: HOUSING SEARCH AND LEASING ............................................................................................... 19 TPS-V.A. INITIAL VOUCHER TERM ......................................................................................................... 19 TPS-V.B. HOUSING SEARCH ASSISTANCE ............................................................................................. 19 TPS-V.C. HQS PRE-INSPECTIONS ............................................................................................................. 20 TPS-V.D. INITIAL LEASE TERM ................................................................................................................ 20 TPS-V.E. PORTABILITY ............................................................................................................................... 20 TPS-V.F. PAYMENT STANDARDS ............................................................................................................. 22 TPS-V.G. TERMINATION OF VOUCHERS ................................................................................................ 23 PART VI: USE OF FUNDS, REPORTING, AND FINANCIAL RECORDS.................................................... 25 GLOSSARY ............................................................................................................................................................. 1 A. ................................ ACRONYMS USED IN THE HOUSING CHOICE VOUCHER (HCV) PROGRAM ................................................................................................................................................................................... 1 B. ................................................................................. GLOSSARY OF SUBSIDIZED HOUSING TERMS ................................................................................................................................................................................... 5 49 1-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 CHAPTER 1 OVERVIEW OF THE PROGRAM AND PLAN INTRODUCTION HACCC receives its funding for the Housing Choice Voucher (HCV) program from the Department of Housing and Urban Development. HACCC 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. HACCC enters into an Annual Contributions Contract (ACC) with HUD to administer the program requirements on behalf of HUD. HACCC 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 HACCC 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 HACCC, 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. 50 1-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART I: HACCC 1-I.A. OVERVIEW This part explains the origin of HACCC’s creation and authorization, the general structure of the organization, and the relationship between HACCC Board and staff. 1-I.B. ORGANIZATION AND STRUCTURE OF HACCC The Section 8 tenant-based Housing Choice Voucher (HCV) assistance program is funded by the federal government and administered by the Housing Authority of the County of Contra Costa for the jurisdiction of Contra Costa County, except for the municipality of Pittsburg (which has its own separate Housing Authority). The officials of a PHA are known as commissioners or, collectively, as the board of commissioners. At the Contra Costa Housing Authority, the Contra Costa County Board of Supervisors and a HACCCC program beneficiary serves 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 HACCC conducts business, ensuring that policies are followed by HACCC staff and ensuring that HACCC 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 HACCC are taken through written resolutions, adopted by the board of commissioners and entered into the official records of HACCC. The principal staff member of HACCC 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 board and is delegated the responsibility for hiring, training and supervising the staff in order to manage the day-to-day operations of HACCC. The Executive Director is responsible for ensuring 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. HACCC 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. HACCC Policy The mission of the Housing Authority of the County of Contra Costa is to provide high quality affordable housing solutions and promote self-sufficiency for low-income people of Contra Costa County. 51 1-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 1-I.D. HACCC’S PROGRAMS The following programs are included under this administrative plan: HACCC Policy HACCC’s administrative plan is applicable to the operation of the Housing Choice Voucher program, the Family Self-Sufficiency program, Project Based Assistance program, and the Housing Choice Voucher Homeownership program. 1-I.E. HACCC’S COMMITMENT TO ETHICS AND SERVICE As a public service agency, HACCC is committed to providing excellent service to HCV program participants, owners, and to the community. HACCC’s standards include: x Administer applicable federal and state laws and regulations to achieve high ratings in performance measurement indicators while maintaining efficiency in program operation to ensure fair and consistent treatment of clients served. x 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. x 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. x Promote fair housing and the equal opportunity for very low-income families of all ethnic backgrounds to experience freedom of housing choice. x 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. x 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. x Create positive public awareness and expand the level of family, owner, and community support in accomplishing HACCC’s mission. x Attain and maintain a high level of standards and professionalism in day-to-day management of all program components. x Administer an efficient, high-performing agency through continuous improvement of HACCC’s support systems and a high level of commitment to our employees and their development. 52 1-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC 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. 53 1-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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 reader to better understand 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. 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 54 1-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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. On July 29, 2016, the Housing Opportunity Through Modernization Act of 2016 (HOTMA) was signed into law. HOTMA made numerous changes to statutes governing HUD programs, including sections of the United States Housing Act of 1937. Title I of HOTMA contains 14 different sections that impact the public housing and Section 8 programs. The Final Rule implementing broad changes to income and asset in Sections 102 and 104 of HOTMA, and for PHAs that administer the public housing program over-income provisions in Section 103, was officially published in the Federal Register on February 14, 2023. On September 29, 2023, HUD issued notice PIH 2023-27, which provided guidance to PHAs on the implementation of the program changes described in the Final Rule. 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. HACCC is afforded choices in the operation of the program which are included in HACCC’s administrative plan, a document approved by the board of commissioners of HACCC. The HCV program offers mobility to eligible families because they may search for suitable housing anywhere in HACCC’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, HACCC issues the family a housing voucher. When the family finds a suitable housing unit and funding is available, HACCC 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. 55 1-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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. HACCC 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, HACCC enters into a contractual relationship with HUD (Consolidated Annual Contributions Contract). HACCC 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, HACCC, 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. 56 1-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The HCV Relationships: Congress Appropriates Funding HUD Provides Funding To PHA Program Regulations and ACC specifies PHA Obligations and Voucher Funding PHA Administers Program Voucher specifies Family Obligations Housing Assistance Payments (HAP) Contract specifies Owner and PHA Obligations Lease specifies Tenant and Landlord Obligations Family (Program Participant) Owner / Landlord 57 1-9 Administrative Plan - HCV Program Revised 12/13/202207/09/2024 What Does HUD Do? HUD has the following major responsibilities: x Develop regulations, requirements, handbooks, notices and other guidance to implement HCV housing program legislation passed by Congress; x Allocate HCV program funds to PHAs; x Provide technical assistance to PHAs on interpreting and applying HCV program requirements; x Monitor PHA compliance with HCV program requirements and PHA performance in program administration. What Does HACCC Do? HACCC administers the HCV program under contract with HUD and has the following major responsibilities: x Establish local policies to administer the program; x Review applications from interested applicants to determine whether they are eligible for the program; x Maintain a waiting list and select families for admission; x Issue vouchers to eligible families and provide information on how to lease a unit; x Conduct outreach to owners, with special attention to owners outside areas of poverty or minority concentration; x Approve the rental unit (including assuring compliance with housing quality standards and rent reasonableness), the owner, and the tenancy; x Make housing assistance payments to the owner in a timely manner; x Recertify families for continued eligibility under the program; x Ensure that owners and families comply with their contractual obligations; x Provide families and owners with prompt, professional service; x Comply with all fair housing and equal opportunity requirements, HUD regulations and requirements, the Annual Contributions ContractACC, HUD-approved applications for funding, HACCC’s administrative plan, and other applicable federal, state and local laws. What Does the Owner Do? The owner has the following major responsibilities: x Screen families who apply for tenancy, to determine suitability as renters. - HACCC 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. x Comply with the terms of the Housing Assistance Payments contract executed with HACCC; x Comply with all applicable fair housing laws and do not discriminate against anyone; 58 1-10 Administrative Plan - HCV Program Revised 12/13/202207/09/2024 x Maintain the housing unit in accordance with National Standards for the Physical Inspection of Real Estate (NSPIRE) Housing Quality Standards (HQS) and make necessary repairs in a timely manner; x Collect rent due from the assisted family and otherwise comply with and enforce provisions of the dwelling lease. What Does the Family Do? The family has the following responsibilities: • Provide HACCC with complete and accurate information as determined by HACCC to be necessary for administration of the program; • Make their best and most timely efforts to locate qualified and suitable housing; • Attend all appointments scheduled by HACCC; • Allow HACCC 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 HACCC and the owner before moving or terminating 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 HACCC of any changes in family composition; • Not commit fraud, bribery, or any other corrupt or criminal act in connection with any housing programs. 1-II.D. APPLICABLE REGULATIONS Applicable regulations include: • 24 CFR Part 5: General Program Requirements • 24 CFR Part 8: Nondiscrimination • 24 CFR Part 35: Lead-Based Paint • 24 CFR Part 982: Section 8 Tenant-Based Assistance: Housing Choice Voucher Program • 24 CFR Part 983: Project-Based Vouchers • 24 CFR Part 985: The Section 8 Management Assessment Program (SEMAP) 59 1-11 Administrative Plan - HCV Program Revised 12/13/202207/09/2024 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 HACCC’s agency plan. This administrative plan is a supporting document to HACCC agency plan, and is available for public review as required by CFR 24 Part 903. This administrative plan is set forth to define HACCC's local policies for operation of the housing programs in accordance with federal laws and regulations. All issues related to the HCV program 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. HACCC 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 HACCC staff shall be in compliance with HACCC's personnel policy and HUD regulations as well as all federal, state and local fair housing laws and regulations. 1-III.B. CONTENTS OF THE PLAN [24 CFR 982.54] The HUD regulations at 24 CFR 982.54 define the policies that must be included in the administrative plan. They are as follow: • Selection and admission of applicants from HACCC waiting list, including any HACCC admission preferences, procedures for removing applicant names from the waiting list, and procedures for closing and reopening HACCC waiting list (Chapter 4); • Issuing or denying vouchers, including HACCC policy governing the voucher term and any extensions of the voucher term. If HACCC decides to allow extensions of the voucher term, HACCC administrative plan must describe how HACCC determines whether to grant extensions, and how HACCC determines the length of any extension (Chapter 5); • Any special rules for use of available funds when HUD provides funding to HACCC for a special purpose (e.g., desegregation), including funding for specified families or a specified category of families (Chapter 4); • 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 60 1-12 Administrative Plan - HCV Program Revised 12/13/202207/09/2024 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 including policies on administering decreases in the payment standard during the HAP contract term (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 HACCC of amounts the family owes HACCC (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); • 61 1-13 Administrative Plan - HCV Program Revised 12/13/202207/09/2024 • Procedural guidelines and performance standards for conducting required housing quality standards inspections (Chapter 8); and • x • PHA screening of applicants for family behavior or suitability for tenancy (Chapter 3). x Policies governing the project-basing of vouchers in both the standard Project-Based Voucher (PBV) program (Chapter 17) and the RAD Project-Based Voucher program (Chapter 18); and x Special policies governing any special purpose vouchers issued by the PHA (Chapter 19). Mandatory vs. Discretionary Policy 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 HACCC to adopt local policies and procedures that are consistent with mandatory policies in areas where HUD gives HACCC discretion. HACCC's administrative plan is the foundation of those policies and procedures. HUD’s directions require HACCC to make policy choices that provide sufficient guidance to staff and ensure consistency to program applicants and participants. Creating policies based upon HUD guidance is not mandatory but provides HACCC with a “safe harbor.” HUD has already determined that the recommendations and suggestions it makes are consistent with mandatory policies. If HACCC 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-III.C. 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 HACCC 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. 62 1-14 Administrative Plan - HCV Program Revised 12/13/202207/09/2024 HACCC Policy HACCC will review and update the plan at least once a year, and more often if needed, to reflect changes in regulations, HACCC operations, or when needed to ensure staff consistency in operation. 63 2-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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 HACCC’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 HACCC 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 HACCC to ensure meaningful access to the HCV program and its activities by persons with limited English proficiency (LEP). This part incorporates the Final Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition against National Origin Discrimination Affecting Limited English Proficient Persons published January 22, 2007, in the Federal Register. 64 2-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART I: NONDISCRIMINATION 2-I.A. OVERVIEW Federal laws require PHAs to treat all applicants and participants equally, providing the same opportunity to access services, 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. In addition, HUD regulations provide for additional protections regarding sexual orientation, gender identity, and marital status. HACCC 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) • Violence Against Women Reauthorization Act of 2005 (VAWA) • The Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity Final Rule, published in the Federal Register February 3, 2012 and further clarified in Notice PIH 2014-20 • The Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity Final Rule, published in the Federal Register February 3, 2012 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 will also apply. HACCC Policy California Fair Employment and Housing Act (FEHA) Unruh Civil Rights Act 2-I.B. NONDISCRIMINATION Federal regulations prohibit discrimination against certain protected classes and other groups of people. State and local requirements, as well as PHA policies, can prohibit discrimination based on other factors. HACCC shall not discriminate because of race, color, sex, religion, familial status, age, disability or national origin (called “protected classes”) 65 2-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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. HACCC Policy HACCC will not discriminate on the basis of: [FR Notice 02/03/12]. x Gender, Gender Identity, and Gender Expression x Sexual Orientation x Marital Status x Ancestry x Source of Income x Genetic Information California Supreme Court has held that protections under the Unruh Act are not necessarily restricted to these characteristics. The Act is meant to cover all arbitrary and intentional discrimination by a business establishment on the bases of personal characteristics similar to those listed above. HACCC 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 66 2-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • 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 Providing Information to Families and Owners HACCC must take steps to ensure that families and owners are fully aware of all applicable civil rights laws. As part of the briefing process, HACCC 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. 2.1.C. Discrimination Complaints If an applicant or participant believes that any family member has been discriminated against by HACCC or an owner, the family should advise HACCC. HUD requires HACCC 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, HACCC is required to provide the applicant or participant with information about how to file a discrimination complaint [24 CFR In all cases, the PHA will advise the family that they may file a fair housing complaint if the family feels they have been discriminated against under the Fair Housing Act. General Housing Discrimination Complaints982.304]. HACCC Policy Applicants or participants who believe that they have been subject to unlawful discrimination may notify the PHA either orally or in writing. Within 10 business days of receiving the complaint, the PHA will investigate and attempt to remedy discrimination complaints made against the PHA. The PHA will also advise the family of their right to file a fair housing complaint with HUD’s Office of Fair Housing and Equal Opportunity (FHEO). The fair housing poster, posted in conspicuous and accessible locations in PHA lobbies, will reference how to file a complaint with FHEO. HACCC will keep a record of all complaints, investigations, notices, and corrective actions. (See Chapter 16.) Upon receipt of a housing discrimination complaint, the PHA is required to: • Provide written notice of the complaint to those alleged and inform the complainant that such notice was made 67 2-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Investigate the allegations and provide the complainant and those alleged with findings and either a proposed corrective action or an explanation of why corrective action is not warranted • Keep records of all complaints, investigations, notices, and corrective actions [Notice PIH 2014-20] HACCC Policy • Applicants or participants who believe that they have been subject to unlawful discrimination may notify HACCC either orally or in writing. HACCC will attempt to remedy discrimination complaints made against HACCC. HACCC 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), the California Department of Fair Employment and Housing and local organizations such as Bay Area Legal Aid. In addition to providing the complainant with steps they can take to submit a complaint regarding fair housing law violations, HACCC informs the jurisdiction responsible for the appropriate Consolidated Plan (Contra Costa County Conservation and Development Office) when staff encounter a condition or action that impedes fair housing choice for current or prospective program participants. Complaints under the Equal Access Final Rule [Notice PIH 2014-20] Notice PIH 2014-20 requires an articulated complaint process for allegations of discrimination under the Equal Access Final rule. The Equal Access Final Rule requires that PHAs provide equal access regardless of marital status, gender identity, or sexual orientation. The PHA will be informed on these obligations by the HUD Field Office or FHEO when an Equal Access complaint investigation begins. HACCC Policy Applicants or tenant families who believe that they have been subject to unlawful discrimination based on marital status, gender identity, or sexual orientation under the Equal Access Rule may notify HACCC either orally or in writing. Within 10 business days of receiving the complaint, HACCC will provide a written notice to those alleged to have violated the rule. HACCC will also send a written notice to the complainant informing them that notice was sent to those alleged to have violated the rule, as well as information on how to complete and submit a housing discrimination complaint form to HUD’s Office of Fair Housing and Equal Opportunity (FHEO). HACCC will attempt to remedy discrimination complaints made against HACCC and will conduct an investigation into all allegations of discrimination. Within 10 business days following the conclusion of HACCC’s investigation, HACCC will provide the complainant and those alleged to have violated the rule with findings and either a proposed corrective action plan or an explanation of why corrective action is not warranted. HACCC will keep a record of all complaints, investigations, notices, and corrective actions. (See Chapter 16.) VAWA Complaint Processing [Notice FHEO 2023-01] 68 2-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 A complainant may, not later than one year after an alleged VAWA violation has occurred or terminated, file a complaint with FHEO alleging such violation. If there is a violation that began prior to a year before the complaint is filed, but it continues into the one-year time period, HUD will accept the complaint. FHEO will investigate the complaint if it is timely and FHEO otherwise has jurisdiction. If a complaint is filed more than one year after the alleged violation occurred or terminated, FHEO may, but is not required to, investigate the allegations under the additional authority and procedures described in FHEO 2023-01. Complaints do not need to allege a violation of the Fair Housing Act for FHEO to accept and investigate the complaint. HACCC Policy Applicants or tenant families who wish to file a VAWA complaint against HACCC may notify HACCC either orally or in writing. HACCC will advise the family of their right to file a VAWA complaint with HUD’s Office of Fair Housing and Equal Opportunity (FHEO). HACCC will inform the family that not later than one year after an alleged VAWA violation has occurred or terminated, applicants and tenants who believe they have been injured by a VAWA violation or will be injured by such a violation that is about to occur may file a VAWA complaint using FHEO’s online complaint form via mail, email, or telephone. HACCC will attempt to remedy complaints made against HACCC and will conduct an investigation into all allegations of discrimination. HACCC will keep a record of all complaints, investigations, notices, and corrective actions. (See Chapter 16.) 69 2-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART II: POLICIES RELATED TO PERSONS WITH DISABILITIES 2-II.A. 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. HACCC must ensure that persons with disabilities have full access to HACCC’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. HACCC Policy HACCC 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 HACCC, 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 504/ADA Coordinator." • A specific name and phone number will be indicated as the contact for requests for accommodation for persons with disabilities. 2-II.B. Definition of Reasonable Accommodation A reasonable accommodation is an adjustment made to a rule, policy, practice, or service that allows a person with a disability to have equal access to the HCV program. For example, reasonable accommodations may include making home visits, extending the voucher term, or approving an exception payment standard in order for a participant to lease an accessible dwelling unit. Federal regulations stipulate that requests for accommodation will be considered reasonable if they do not create an "undue financial and administrative burden" for HACCC, 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 it is reasonable (see definition above and in Section 2-II-E), HACCC 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; 70 2-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Using higher payment standards (either within the acceptable range or with HUD approval of a payment standard outside HACCC range) if HACCC 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 HACCC staff; • Displaying posters and other housing information in locations throughout HACCC’s office in such a manner as to be easily readable from a wheelchair 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 HACCC 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 HACCC’s programs and services. If the need for the accommodation is not readily apparent or known to HACCC, 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. HACCC Policy HACCC may ask the family to make its request in writing using a reasonable accommodation request form provided by HACCC. However, HACCC will consider an accommodation request any time a family indicates that an accommodation is needed, regardless of whether the request is submitted in writing, and regardless of whether the request is submitted on HACCC’s Reasonable Accommodation form. The family must explain what type of accommodation is needed to provide the person with the disability full access to HACCC’s programs and services. If the need for the accommodation is not readily apparent or known to HACCC, 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. The request for a reasonable accommodations/reasonable modification need not use a specific written form and need not mention the Fair Housing Act, Section 504, or the ADA, or use the phrase "reasonable accommodation" or “reasonable modification." 71 2-9 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Requests for accommodation will be evaluated and decided upon by the Section 504 Coordinator and/or another staff member trained in and knowledgeable about fair housing and reasonable accommodations. 2-II.D. 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, HACCC 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 HACCC’s programs and services. If a person’s disability is obvious or otherwise known to HACCC, 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 HACCC, HACCC 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, HACCC 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] • HACCC must request only information that is necessary to evaluate the disability- related need for the accommodation. HACCC will not inquire about the nature or extent of any disability. • Medical records will not be accepted or retained in the participant file. 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]. 72 2-10 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC 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 OR it fundamentally alters the nature of HACCC'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 HACCC 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 or deny the request, HACCC 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 HACCC may verify the need for the requested accommodation. HACCC Policy After a request for an accommodation is presented, HACCC will respond, in writing, within 15 business days. If HACCC denies a request for an accommodation because it is not reasonable (it would impose an undue financial and administrative burden and fundamentally alter the nature of the HACCC’s operations), the notice will inform the family of the right to appeal HACCC’s decision through an informal hearing (if applicable, see Chapter 16). If HACCC denies a request for an accommodation because it is not reasonable (it would impose an undue financial and administrative burden and fundamentally alter the nature of HACCC’s operations), HACCC 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 HACCC believes that the family has failed to identify a reasonable alternative accommodation after interactive discussion and negotiation, HACCC will notify the family, in writing, of its determination within 15 business days from the date of the most recent discussion or communication with the family. 2-II.F. Program Accessibility for Persons with Hearing or Vision Impairments HUD regulations require HACCC to ensure that persons with disabilities related to hearing and vision have reasonable access to HACCC’s programs and services [24 CFR 8.6]. 73 2-11 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 At the initial point of contact with each applicant, HACCC shall inform all applicants of alternative forms of communication that can be used other than plain language paperwork. HACCC 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 HACCC 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 contractor of the Authority, a friend, relative or advocate, requested by the applicant) to receive, interpret and explain housing materials and be present at all meetings. 2-II.G. Physical Accessibility HACCC 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 HACCC’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 HACCC’s responsibilities with regard to physical accessibility. Notice PIH 2006-03(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. • HACCC Agency Plan provides information about self-evaluation, needs assessment and transition plans. The design, construction, or alteration of HACCC 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 74 2-12 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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, HACCC will include a current list of available accessible units known to HACCC and will assist the family in locating an available accessible unit, if necessary. In general, owners must permit a family to make reasonable modifications (structural changes) to the unit if such modifications may be necessary to afford a person with a disability full enjoyment of the premises. However, an owner who is not a recipient of federal financial assistance is not required to pay for the modification. In some circumstances, the owner may require that the unit be restored to its original state at the family’s expense when the family moves. (Joint Statement on Reasonable Modifications.) HACCC will address requests for reasonable modification using the same process described above for reasonable accommodations. 2-II.H. Denial or Termination of Assistance HACCC’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 HACCC’s informal review process and their right to request an informal hearing. In addition, the notice must inform applicants with disabilities of their right to request reasonable accommodations to participate in the informal review process. When a participant family’s assistance is terminated, the notice of termination must inform them of HACCC’s informal hearing process and their right to request a hearing and reasonable accommodation. When reviewing reasonable accommodation requests, HACCC must consider whether any mitigating circumstances can be verified to explain and overcome the problem that led to HACCC’s decision to deny or terminate assistance. If a reasonable accommodation will allow the family to meet the requirements, HACCC must make the accommodation. Additionally, HACCC must provide any reasonable accommodations necessary for persons with disabilities to participate in the hearing process. 75 2-13 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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 programs and activities may violate the prohibition under Title VI against discrimination on the basis of national origin. This part incorporates the Final Guidance to Federal Assistance Recipients Regarding Title VI Prohibition against National Origin Discrimination Affecting Limited English Proficient Persons, published January 22, 2007, in the Federal Register. HACCC 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, HACCC 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 HACCC and costs. Balancing these four factors will ensure meaningful access by LEP persons to critical services while not imposing undue burdens on HACCC. 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, HACCC will generally offer, or ensure that the family is offered through other sources, competent services free of charge to the LEP person. HACCC Policy HACCC 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, HACCC will train and hire bilingual staff to be available to act as interpreters and translators, will pool resources with other PHAs, and will standardize 76 2-14 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 documents. Where feasible and possible, HACCC 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 HACCC. 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. HACCC Policy In order to comply with written-translation obligations, HACCC will take the following steps: HACCC 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, HACCC 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. 2-III.D. IMPLEMENTATION PLAN After completing the four-factor analysis and deciding what language assistance services are appropriate, HACCC shall determine whether it is necessary to develop a written implementation plan to address the identified needs of the LEP populations it serves. If HACCC 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 HACCC’s Housing Choice Voucher program and services. HACCC Policy If it is determined that HACCC serves very few LEP persons, and HACCC has very limited resources, HACCC 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. 77 2-15 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If HACCC 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. 78 2-16 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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 life 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 HACCC) 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. The definition of a person with disabilities does not include: x Current illegal drug users x People whose alcohol use interferes with the rights of others x 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 79 2-17 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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 $525 (as adjusted annually) 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. 80 3-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 CHAPTER 3 ELIGIBILITY INTRODUCTION HACCC 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 HACCC 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 HACCC. - 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 household members as required. - Consent to HACCC’s collection and use of family information as provided for in HACCC- provided consent forms. - Not currently be receiving a duplicative subsidy. - Meet net asset and property ownership restriction requirements. • HACCC must determine that the current or past behavior of household members does not include activities that are prohibited by HUD or HACCC. This chapter contains three parts: Part I: Definitions of Family and Household Members. This part contains HUD and HACCC 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 HACCC to deny assistance as well as the asset limitation for HCV. 81 3-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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)5.403; Notice PIH 2014-20; FR Notice 02/03/12 and FR Notice 2/14/23] 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. Family as defined by HUD includes, but is not limited to the following, regardless of actual or perceived sexual orientation, gender identity, or marital status, a single person, who may be an elderly person, displaced person, disabled person, near-elderly person, or any other single person; an otherwise eligible youth who has attained at least 18 years of age and not more than 24 years of age and who has left foster care, or will leave foster care within 90 days, in accordance with a transition plan described in section 475(5)(H) of the Social Security Act (42 U.S.C. 675(5)(H)), and is homeless or is at risk of becoming homeless at age 16 or older; or a group of persons residing together. Such group includes, but is not limited to a family with or without children (a child who is temporarily away from the home because of placement in foster care is considered a member of the family), an elderly family, a near-elderly family, a disabled family, a displaced family, andor the remaining member of a tenant family. HACCC has the discretion to determine if any other group of persons qualifies as a family. Gender Identity means actual or perceived gender characteristics. Sexual orientation means homosexuality, heterosexuality, or bisexuality. HACCC 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 notify HACCC if the family’s composition changes. Household Household is a broader term that includes additional people who, with HACCC’s permission, live in an assisted unit, such as live-in aides, foster children, and foster adults. 82 3-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 3-I.C. FAMILY BREAKUP AND REMAINING MEMBER OF TENANT FAMILY Family Breakup [24 CFR 982.315] Except under the following conditions, HACCC has discretion to determine which members of an assisted family continue to receive assistance if the family breaks up: • If the family breakup results from an occurrence of domestic violence, dating violence, sexual assault, or stalking, or human trafficking, HACCC must ensure that the victim retains assistance. (For documentation requirements and policies related to domestic violence, dating violence, sexual assault, and stalking, and human trafficking, see section 16-IX.D of this plan.) • In accordance with Notiitce PIH 2017-08, for HUD–Veterans Affairs Supportive Housing (HUD–VASH) vouchers, when the veteran is the perpetrator of domestic violence, dating violence, sexual assault, or stalking, or human trafficking, the victim must continue to be assisted. Upon termination of the perpetrator’s HUD–VASH voucher, the victim should be given a regular HCV if one is available, and the perpetrator’s HUD–VASH voucher should be used to serve another eligible family. If a regular HCV is not available, the victim will continue to use the HUD–VASH voucher, which must be issued to another eligible family upon the voucher’s turnover. • If a court determines the disposition of property between members of the assisted family, HACCC is bound by the court’s determination of which family members continue to receive assistance. HACCC 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, HACCC will determine which family will retain their placement on the waiting list or continue to receive assistance. In making its determination, HACCC will take into consideration the following factors: (1) the interest of any minor children, including custody arrangements; (2) the interest of any ill, elderly, or disabled family members; (3) the interest of any family member who is the victim of domestic violence, dating violence, sexual assault, or stalking, or human trafficking, including a family member who was forced to leave an assisted unit as a result of such actual or threatened abuse; (4) any possible risks to family members as a result of criminal activity; and (5) the recommendations of social service professionals; (6) any original remaining members that can qualify as head of household. Remaining Member of a Tenant Family [24 CFR 5.403] 83 3-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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.” 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. HACCC 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. A minor who is emancipated under state law may be designated as head of household. 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. HACCC Policy A marriage partner includes the partner in a marriage as defined in state law. The term “spouse” does not apply to friends, roommates, or significant others who are not marriage partners. A minor who is emancipated under state law may be designated as a spouse. 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. HACCC Policy Minors who are emancipated under state law may be designated as a cohead. 84 3-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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. 3-I.F. DEPENDENTS AND MINORS [24 CFR 5.603] A minor is a member of the family, other than the head of family or spouse, who is under 18 years of age. 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 dependent allowance as described in Chapter 6. Joint Custody of Dependents HACCC 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 51 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, HACCC 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. Alternatively, the parent whose address is listed in school records will be allowed to claim the school-age child as a dependent. 3-I.G. FULL-TIME STUDENT [24 CFR 5.603; HCV 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 allowance, and (2) the earned income of such an FTS is treated differently from the income of other family members. 3-I.H. ELDERLY AND NEAR-ELDERLY PERSONS, AND ELDERLY FAMILY [24 CFR 5.100 and 5.403, FR Notice 02/03/12] Elderly Persons An elderly person is a person who is at least 62 years of age. Near-Elderly Persons 85 3-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 A near-elderly person is a person who is 50-61 years of age. 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 elderly families qualify for the elderly family allowance as described in Chapter 6. 3-I.I. PERSONS WITH DISABILITIES AND DISABLED FAMILY [24 CFR 5.403, FR Notice 02/03/12] 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, HACCC 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 the disabled family allowance as described in Chapter 6. Even though persons with drug or alcohol dependencies are considered persons with disabilities, this does not prevent HACCC from denying assistance for reasons related to alcohol and drug abuse in accordance with the policies found in Part III of this chapter, or from terminating assistance in accordance with 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 expressed or implied authority to so consent. The head of household is responsible for the conduct of visitors and guests, inside the unit as well as anywhere on or near HACCC premises [24 CFR 966.4(f)].[24 CFR 5.100] HACCC Policy 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. The head of household is 86 3-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 responsible for the conduct of visitors and guests, inside the unit as well as anywhere on or near HACCC premises [24 CFR 966.4(f)].[24 CFR 5.100] A guest can remain in the assisted unit no longer than 15 consecutive days or a total of 45 cumulative calendar days during any 12-month period. Non-household members who represent the unit’s address as their residence address for receipt of benefits or other purposes will be considered unauthorized occupants. 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 51 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. Participants can not violate the terms of their lease if the lease is more restrictive than the Authority’s guest policies. 3-I.K. FOSTER CHILDREN AND FOSTER ADULTS A fFoster adults is a member of the household who is 18 years of age or older and meets the definition of a foster adult under state law. In general, a foster adult is a person who is 18 years of age or older, is unable to live independently due to a debilitating physical or mental condition, and is placed with the family by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Foster adults are usually persons with disabilities, unrelated to the tenant family, who are unable to live alone [24 CFR 5.609]. term A foster child is a member of the household who meets the definition of a foster child under state law. In general, a foster child is placed with the family by an authorized placement agency (e.g., public child welfare agency) or by judgment, decree, or other order of any court of competent jurisdiction.The term foster child is not specifically defined by the regulations. Foster children and foster adults who are living with an applicant or who have been approved by HACCC to live with a participant 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; HUD-50058 IB, p. 13]. HACCC Policy 87 3-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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 982.401.401as described in Section 8-I.F. of this policy. 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 HACCC Policy Generally, an individual who is or is expected to be absent from the assisted unit for 90 consecutive calendar 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 calendar days is considered permanently absent and no longer a family member. Exceptions to this general policy are discussed below. Absent Students HACCC 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 HACCC 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 [24 CFR 5.403] Children temporarily absent from the home as a result of placement in foster care are considered members of the family. HACCC Policy 88 3-9 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If a child has been placed in foster care, HACCC 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. Absent Head, Spouse, or Cohead HACCC Policy An employed head, spouse, or cohead absent from the unit more than 90 consecutive calendar days due to employment will continue to be considered 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]. HACCC Policy HACCC will require the family to obtain verification from a responsible professional at the facility or a medical professional involved in the family member’s care and will use this determination. If a determination cannot be made with respect to permanent residency in the facility, the person generally will be considered temporarily absent. HACCC will require the family to obtain monthly status from the facility or medical professional every 30 days until a final determination regarding permanent residency is made. The family may present evidence that the family member is a permanent resident at the facility 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. Return of Permanently Absent Family Members HACCC Policy The family must request HACCC approval for the return of any adult family members that HACCC previously determined to be permanently absent. The individual is subject to the eligibility and screening requirements discussed elsewhere in this chapter. 3-I.M. LIVE-IN AIDE A live-in aide is a person who resides with one or more elderly persons, or near-elderly persons, or persons with disabilities, and who: (1) is determined to be essential to the care and well-being of the 89 3-10 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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]. HACCC 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. The income of a live-in aide is not counted in the calculation of annual income for the family [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. Because live-in aides are not family members, a relative who serves as a live-in aide would not be considered a remaining member of a tenant family. HACCC 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. All live-in aides will be subject to HACCC’s non-income related screening. HACCC will not approve a particular person as a live-in aide, and may withdraw such approval if [24 CFR 982.316(b)]: HACCC 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 HACCC or to another PHA in connection with Section 8 or public housing assistance under the 1937 Act. HACCC will notify the family of its decision in writing within 7 calendar days of receiving a request for a live-in aide, including all required documentation related to the request. 90 3-11 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART II: BASIC ELIGIBILITY CRITERIA 3-II.A. INCOME ELIGIBILITY AND TARGETING Income Limits HUD establishes income limits for all areas of the country and publishes them annually in the Federal Register. They are based upon estimates of median family income with adjustments for family size. The income limits are used to determine eligibility for the program and for income targeting purposes as discussed in this section. Definitions of the Income Limits [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 the higher of Federal poverty level or 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 and Notice PIH 2023-27] Income limits are used for eligibility only at admission. Income eligibility is determined by comparing the annual income of an applicant to the applicable income limit for their family size. Income and net family assets of household members are excluded when determining income eligibility; however, household members are considered for purposes of unit size and subsidy standards. In order to be income eligible, an applicant 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]; 24 CFR 982.201(b). HACCC Policy HACCC 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 selected from the waiting list. 91 3-12 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • 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 HUD permits HACCC to establish additional categories of low-income families that may be determined eligible. The additional categories must be consistent with HACCC plan and the consolidated plans for local governments within HACCC’s jurisdiction. HACCC Policy HACCC 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 HACCC's program during a PHA fiscal year must be extremely low-income families. HUD may approve exceptions to this requirement if HACCC 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 counted for income targeting purposes. 3-II.B. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5, Subpart E] 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 HACCC’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 92 3-13 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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 as verification of their status. However, HUD regulations permit HACCC to request additional documentation of their status, such as a passport. HACCC Policy Family members who declare citizenship or national status will not be required to provide additional documentation unless HACCC 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 HACCC 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]. Ineligible Noncitizens Those noncitizens who do not wish to contend their immigration status are required to have their names listed on a non-contending family members listing, signed by the head, spouse, or cohead (regardless of citizenship status), indicating their ineligible immigration status. HACCC 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. 93 3-14 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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 HACCC that the individual or at least one family member is eligible. Verification of eligibility for this purpose occurs when the individual or family members have submitted documentation to HACCC in accordance with program requirements [24 CFR 5.512(a)]. HACCC Policy HACCC will not provide assistance to a family before the verification of at least one family member. When HACCC 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 14 calendar 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 HACCC. The informal hearing with HACCC 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. Timeframe for Determination of Citizenship Status [24 CFR 5.508(g)] For new occupants joining the assisted family, HACCC 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, HACCC 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. HACCC Policy HACCC will verify the citizenship status of applicants at the time other eligibility factors are determined. 94 3-15 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 3-II.C. SOCIAL SECURITY NUMBERS [24 CFR 5.216 and 5.218, Notice PIH 2012-10] The applicant and all members of the applicant’s household must disclose the complete and accurate social security number (SSN) assigned to each household member, and the documentation necessary to verify each SSN. If a child under age 6 has been added to an applicant family within 6 months prior to voucher issuance, an otherwise eligible family may be admitted to the program and must disclose and document the child’s SSN within 90 days of the effective date of the initial HAP contract. A detailed discussion of acceptable documentation is provided in Chapter 7. Note: These requirements do not apply to noncitizens who do not contend eligible immigration status. In addition, each participant who has not previously disclosed an SSN, has previously disclosed an SSN that HUD or the SSA determined was invalid, or has been issued a new SSN must submit their complete and accurate SSN and the documentation required to verify the SSN at the time of the next interim or annual reexamination or recertification. Participants aged 62 or older as of January 31, 2010, whose determination of eligibility was begun before January 31, 2010, are exempt from this requirement and remain exempt even if they move to a new assisted unit. HACCC must deny assistance to an applicant family if they do not meet the SSN disclosure and documentation requirements contained in 24 CFR 5.216. 3-II.D. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 5.2320; HCV GB, p. 5-13] HUD requires that 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 consent form remains effective until the family is denied assistance, assistance is terminated, or the family provides written notification to revoke consent. HACCC 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) and 24 CFR 5.232(a)]. However, this does not apply if the applicant or participant, or any member of their family, revokes their consent with respect to the ability of the PHA to access financial records from financial institutions, unless the PHA establishes a policy that revocation of consent to access financial records will result in denial or termination of assistance or admission [24 CFR 5.232(c)]. HACCC Policy HACCC has established a policy that the family’s revocation of consent to allow the PHA to access records from financial institutions will result in denial of admission. 95 3-16 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 3-II.E. STUDENTS ENROLLED IN INSTITUTIONS OF HIGHER EDUCATION [24 CFR 5.612, FR Notice 4/10/06, FR Notice 9/21/16] Section 327 of Public Law 109-115 and the implementing regulation at 24 CFR 5.612 established new restrictions on the eligibility of certain students (both part- and full-time) who are enrolled in institutions of higher education. If a student enrolled at an institution of higher education is under the age of 24, is not a veteran, is not married, does not have a dependent child, and is not a person with disabilities receiving HCV assistance as of November 30, 2005, the student’s eligibility must be examined along with the income eligibility of the student’s parents. In these cases, both the student and the student’s parents must be income eligible for the student to receive HCV assistance. If, however, a student in these circumstances is determined independent from their parents in accordance with HACCC Policy, the income of the student’s parents will not be considered in determining the student’s eligibility. The new law does not apply to students who reside with parents who are applying to receive HCV assistance. It is limited to students who are seeking assistance on their own, separately from their parents. Definitions In determining whether and how the new eligibility restrictions apply to a student, HACCC will rely on the following definitions [FR Notice 4/10/06, FR Notice 9/21/16]. Dependent Child In the context of the student eligibility restrictions, dependent child means a dependent child of a student enrolled in an institution of higher education. The dependent child must also meet the definition of dependent in 24 CFR 5.603, which states that the dependent must be a member of the assisted family, other than the head of household or spouse, who is under 18 years of age, or is a person with a disability, or is a full-time student. Foster children and foster adults are not considered dependents. Independent Student HACCC Policy HACCC will consider a student “independent” from their parents and the parents’ income will not be considered when determining the student’s eligibility if the following four criteria are all met: The individual is of legal contract age under state law. The individual has established a household separate from their parents for at least one year prior to application for occupancy or the individual meets the U.S. Department of Education’s definition of independent student. 96 3-17 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 To be considered an independent student according to the Department of Education, a student must meet one or more of the following criteria: x The Individual is at least 24 years old by December 31 of the award year for which aid is sought x The Individual is an orphan in foster care or a ward of the court, or was an orphan, in foster care, or ward of the court at any time when the individual was 13 years of age or older x The individual is, or was immediately prior to attaining the age of majority, an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual’s state of legal residence x The Individual is a veteran of the U.S. Armed Forces or is currently serving on active duty in the Armed Forces for other than training purposes x The Individual is a graduate or professional student x The Individual is married x The individual has one or more legal dependents other than a spouse (for example, dependent children or an elderly dependent parent) x The individual has been verified during the school year in which the application is submitted as either an unaccompanied youth who is a homeless child or youth, or as unaccompanied, at risk of homelessness, and self-supporting by: - A local educational agency homeless liaison - The director of a program funded under subtitle B of title IV of the McKinney-Vento Homeless Assistance Act or a designee of the director - A financial aid administrator x The individual is a student for whom a financial aid administrator makes a documented determination of independence by reason of other unusual circumstances x The individual was not claimed as a dependent by their parents pursuant to IRS regulations, as demonstrated on the parents’ most recent tax forms. x The individual provides a certification of the amount of financial assistance that will be provided by their parents. This certification must be signed by the individual providing the support and must be submitted even if no assistance is being provided. If the PHA determines that an individual meets the definition of a vulnerable youth such a determination is all that is necessary to determine that the person is an independent student for the purposes of using only the student’s income for determining eligibility for assistance. HACCC will verify that a student meets the above criteria in accordance with the policies in Section 7-II.E. Institution of Higher Education HACCC will use the statutory definition under section 102 of the Higher Education Act of 1965 to determine whether a student is attending an institution of higher education (see Exhibit 3-2). Parents 97 3-18 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy For purposes of student eligibility restrictions, the definition of parents includes biological or adoptive parents, stepparents (as long as they are currently married to the biological or adoptive parent), and guardians (e.g., grandparents, aunt/uncle, godparents, etc.). Person with Disabilities HACCC will use the statutory definition under section 3(b)(3)(E) of the 1937 Act to determine whether a student is a person with disabilities (see Exhibit 3-1). Veteran HACCC Policy A veteran is a person who served in the active military, naval, or air service and who was discharged or released from such service under conditions other than dishonorable. Vulnerable Youth HACCC Policy A vulnerable youth is an individual who meets the U.S. Department of Education’s definition of independent student in paragraphs (b), (c), or (h), as adopted in Section II of FR Notice 9/21/16: The individual is an orphan, in foster care, or a ward of the court, or was an orphan, in foster care, or ward of the court at any time when the individual was 13 years of age or older; The individual is, or was immediately prior to attaining the age of majority, an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual’s state of legal residence; The individual has been verified during the school year in which the application is submitted as either an unaccompanied youth who is a homeless child or youth, or as unaccompanied, at risk of homelessness, and self-supporting by: x A local educational agency homeless liaison x The director of a program funded under subtitle B of title IV of the McKinney-Vento Homeless Assistance Act or a designee of the director x A financial aid administrator Determining Student Eligibility If a student is applying for assistance on their own, apart from their parents, HACCC must determine whether the student is subject to the eligibility restrictions contained in 24 CFR 5.612. If the student is subject to those restrictions, HACCC must ensure that: (1) the student is individually eligible for the program, (2) either the student is independent from their parents or the student’s parents are income eligible for the program, and (3) the “family” with which the student is applying is collectively eligible for the program. 98 3-19 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy For any student who is subject to the 5.612 restrictions, HACCC will: - Follow its usual policies in determining whether the student individually and the student’s “family” collectively are eligible for the program - Determine whether the student is independent from their parents in accordance with the definition of independent student in this section - Follow the policies below, if applicable, in determining whether the student’s parents are income eligible for the program If HACCC determines that the student, the student’s parents (if applicable), or the student’s “family” is not eligible, HACCC will send a notice of denial in accordance with the policies in Section 3-III.F, and the applicant family will have the right to request an informal review in accordance with the policies in Section 16-III.B. Determining Parental Income Eligibility HACCC Policy For any student who is subject to the 5.612 restrictions and who does not satisfy the definition of independent student in this section, HACCC will determine the income eligibility of the student’s parents as follows: x If the student’s parents are married and living together, HACCC will obtain a joint income declaration and certification of joint income from the parents. x If the student’s parent is widowed or single, HACCC will obtain an income declaration and certification of income from that parent. x If the student’s parents are divorced or separated, HACCC will obtain an income declaration and certification of income from each parent. x If the student has been living with one of their parents and has not had contact with or does not know where to contact their other parent, HACCC will require the student to submit a certification under penalty of perjury describing the circumstances and stating that the student does not receive financial assistance from the other parent. HACCC will then obtain an income declaration and certification of income from the parent with whom the student has been living or had contact. In determining the income eligibility of the student’s parents, HACCC will use the income limits for the jurisdiction in which the parents live. 99 3-20 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 3-II.F. EIV SYSTEM SEARCHES [Notice PIH 2018-18; EIV FAQs; EIV System Training 9/30/20; and Notice PIH 2023-27] Existing Tenant Search Prior to admission to the program, the PHA must search for all household members using the EIV Existing Tenant Search module. The PHA must review the reports for any SSA matches involving another PHA or a multifamily entity and follow up on any issues identified. The PHA must provide the family with a copy of the Existing Tenant Search results if requested. At no time may any family member receive duplicative assistance. If the tenant is a new admission to the PHA, and a match is identified at a multifamily property, the PHA must report the program admission date to the multifamily property and document the notification in the tenant file. The family must provide documentation of move-out from the assisted unit, as applicable. HACCC Policy HACCC will contact the other PHA or owner identified in the report to confirm that the family has moved out of the unit and obtain documentation of current tenancy status, including a form HUD-50058 showing an end of participation. HACCC will only approve assistance contingent upon the move-out from the currently occupied assisted unit. Debts Owed to PHAs and Terminations All adult household members must sign the form HUD-52675 Debts Owed to Public Housing and Terminations. Prior to admission to the program, the PHA must search for each adult family member in the Debts Owed to PHAs and Terminations module. If a current or former tenant disputes the information in the module, the tenant should contact the PHA directly in writing to dispute the information and provide any documentation that supports the dispute. If the PHA determines that the disputed information is incorrect, the PHA will update or delete the record from EIV. Former tenants may dispute debt and termination information for a period of up to three years from the end of participation date in the program. HACCC Policy HACCC will require each adult household member to sign the form HUD-52675 once at the eligibility determination. Any new members added to the household after admission will be required to sign the form HUD-52675 prior to being added to the household. HACCC will search the Debts Owed to PHAs and Terminations module as part of the eligibility determination for new households and as part of the screening process for any household members added after the household is admitted to the program. If any information on debts or terminations is returned by the search, HACCC will determine if this information warrants a denial in accordance with the policies in Part III of this chapter. 100 3-21 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Income and Income Validation Tool (IVT) Reports For each new admission, the PHA is required to review the EIV Income and IVT Reports to confirm and validate family reported income within 120 days of the IMS/PIC submission date of the new admission. The PHA must print and maintain copies of the EIV Income and IVT reports in the tenant file and resolve any discrepancies with the family within 60 days of the EIV Income or IVT report dates. 101 3-22 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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. A PHA may deny assistance for an applicant because of the family’s action or failure to act as described in 24 CFR 982.552 or 982.553. In this section we will discuss other situations and circumstances in which denial of assistance is mandatory for HACCC, and those in which denial of assistance is optional for HACCC. While the regulations state that the PHA must prohibit admission for certain types of criminal activity and give the PHA the option to deny for other types of previous criminal history, more recent HUD rules and OGC guidance must also be taken into consideration when determining whether a particular individual’s criminal history merits denial of admission. When considering any denial of admission, PHAs may not use arrest records as the basis for the denial. Further, HUD does not require the adoption of “One Strike” policies and reminds PHAs of their obligation to safeguard the due process rights of applicants and tenants [Notice PIH 2015-19]. HUD’s Office of General Counsel issued a memo on April 4, 2016, regarding the application of Fair Housing Act standards to the use of criminal records. This memo states that a PHA violates the Fair Housing Act when their policy or practice has an unjustified discriminatory effect, even when the PHA had no intention to discriminate. Where a policy or practice that restricts admission based on criminal history has a disparate impact on a particular race, national origin, or other protected class, that policy or practice is in violation of the Fair Housing Act if it is not necessary to serve a substantial, legitimate, nondiscriminatory interest of the PHA, or if that interest could be served by another practice that has a less discriminatory effect [OGC Memo 4/4/16]. HUD codified this stance on disparate impact and discriminatory effects in a final rule dated March 31, 2023. In doing so, HUD also standardized its long-practiced three-step approach to assessing burdens of proof. PHAs who impose blanket prohibitions on any person with any conviction record, no matter when the conviction occurred, what the underlying conduct entailed, or what the convicted person has done since then will be unable to show that such policy or practice is necessary to achieve a substantial, legitimate, nondiscriminatory interest. Even a PHA with a more tailored policy or practice that excludes individuals with only certain types of convictions must still prove that its policy is necessary. To do this, the PHA must show that its policy accurately distinguishes between criminal conduct that indicates a demonstrable risk to resident safety and property and criminal conduct that does not. 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 102 3-23 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Not approving a request for tenancy or refusing to enter into a HAP contract • Refusing to process a request for or to provide assistance under portability procedures Prohibited Reasons for Denial of Program Assistance [24 CFR 982.202(b), 24 CFR 5.2005(b)] HUD rules prohibit denial of program 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 HACCC’s jurisdiction under portability. (See Chapter 10.) • 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 • Whether or not a qualified applicant is or has been a victim of domestic violence, dating violence, sexual assault, or stalking or human trafficking if the applicant is otherwise qualified for assistance (See section 3-III.G.) 3-III.B. MANDATORY DENIAL OF ASSISTANCE [24 CFR 982.553(a) and 24 CFR 982.552(b)(6)] HUD requires HACCC 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, HACCC to admit an otherwise-eligible family if the household member has completed a HACCC-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). HACCC Policy HACCC will admit an otherwise-eligible family who was evicted from federally-assisted housing within the past 2 (two) years for drug-related criminal activity, if HACCC is able to verify that the household member who engaged in the criminal activity has completed a supervised drug rehabilitation program approved by HACCC, or the person who committed the crime, is no longer living in the household. • HACCC determines that any household member is currently engaged in the use of illegal drugs. 103 3-24 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy Currently engaged in is defined as any use of illegal drugs during the previous six months. • HACCC 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. HACCC Policy In determining reasonable cause, HACCC will consider all credible evidence, including but not limited to, any record of convictions, or evictions of household members related to the use of illegal drugs or the abuse of alcohol. HACCC 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 Tier 3: Lifetime registration requirement under a state sex offender registration program. • Any member of the family fails to sign and submit consent forms for obtaining information. • The family does not meet the restrictions on net assets and real property ownership as required by 24 CFR 5.618. 3-III.C. RESTRICTION ON ASSISTANCE BASED ON ASSETS [24 CFR 5.618] There are two circumstances under which a family is ineligible to receive assistance based on asset ownership. First, assistance may not be provided to any family if the family’s net assets exceed $100,000 (adjusted annually by HUD). Second, the family has real property that is suitable for occupancy by the family as a residence and the family has: x A present ownership interest in the real property; and x A legal right to reside in the real property; and x The effective legal authority to sell (based on state or local laws of the jurisdiction where the property is located) the real property. However, the real property restriction does not apply in the following circumstances: x Any property for which the family is receiving assistance for a manufactured home under 24 CFR 982.620 or under the HCV Homeownership program; 104 3-25 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 x Any property that is jointly owned by a member of the family and at least one non-household member who does not live with the family, if the non-household member resides at the jointly owned property; x Any family that is offering the property for sale; or x Any person who is a victim of domestic violence, dating violence, Sexual assault, stalking, or human trafficking. - When a family asks for an exception because a family member is a victim of domestic violence, dating violence, Sexual assault, stalking, or human trafficking, the PHA must comply with all the confidentiality requirements under VAWA. The PHA must accept a self-certification from the family member, and the restrictions on requesting documentation under VAWA apply. A property is considered suitable for occupancy unless the family demonstrates that it: x Does not meet the disability-related needs for all members of the family (e.g., physical accessibility requirements, disability-related need for additional bedrooms, proximity to accessible transportation, etc.); x Is not sufficient for the size of the family; HACCC Policy HACCC defines not sufficient for the size of the family as being overcrowded based on space standards in Chapter 8 of this policy. x Is geographically located so as to be a hardship for the family (e.g., the distance or commuting time between the property and the family's place of work or school would be a hardship to the family, as determined by the PHA or owner); x Is not safe to reside in because of the physical condition of the property (e.g., property’s physical condition poses a risk to the family’s health and safety and the condition of the property cannot be easily remedied); or •x Is not a property that a family may reside in under the state or local laws of the jurisdiction where the property is located. 3-III.DC. OTHER PERMITTED REASONS FOR DENIAL OF ASSISTANCE HUD permits, but does not require, HACCC to deny assistance for the reasons discussed in this section. Criminal Activity [24 CFR 982.553] HUD permits, but does not require, HACCC to deny assistance if HACCC 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. 105 3-26 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy If any household member is currently engaged in, or has engaged in any of the following criminal activities, within the past two 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; Immediate vicinity means within a three-block radius of the premises. Criminal sexual conduct, including but not limited to sexual assault, incest, open and gross lewdness, or child abuse; or or Criminal activity that may threaten the health or safety of property owners, management staff, and persons performing contract administration functions or other responsibilities on behalf of HACCC (including an HACCC employee or an HACCC 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: • Any conviction for drug-related or violent criminal activity within the past 2 years. In making its decision to deny assistance, HACCC will consider the factors discussed in Section 3-III.EF and 3-III.G. Upon consideration of such factors, HACCC may, on a case- by-case basis, decide not to deny assistance. Previous Behavior in Assisted Housing [24 CFR 982.552(c)] HUD authorizes HACCC to deny assistance based on the family’s previous behavior in assisted housing: PHAs are not permitted to deny assistance to a family because the family previously failed to meet its obligations under the Family Self-Sufficiency (FSS) program [24 CFR 984.101(d)]. HACCC Policy 106 3-27 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC 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. HACCC will deny assistance to an applicant family if: • The family does not provide information that HACCC or HUD determines is necessary in the administration of the program. • The family does not provide complete and true information to HACCC. • Any family member has been evicted from federally-assisted housing in the last two years. • 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 Section 8 or other public housing assistance under the 1937 Act, 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 HACCC, unless the family repays the full amount of the debt covered in the repayment agreement prior to being selected from the waiting list. When denying admission due to family debts as shown in HUD’s EIV system, HACCC will provide the family with a copy of the EIV Debt Owed to PHA and Termination report. If the family wishes to dispute the information in the report, the family must contact the PHA that entered the information in EIV in writing, explaining why EIV information is disputed. The family must also provide a copy of the letter and all applicable verification to HACCC to support the family’s claim. HACCC will consider the information provided by the family prior to issuing a notice of denial. x Net Family Assets exceed $100,000 (adjusted annually for inflation) and/or the family has a present ownership interest in, a legal right to reside in, and the effective legal authority to sell the real property (based on laws of the state or locality in which the property is located) that is suitable for occupancy by the family as a residence. • A family member has engaged in or threatened violent or abusive behavior toward HACCC personnel. - Abusive or violent behavior towards HACCC 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. 107 3-28 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 In making its decision to deny assistance, HACCC will consider the factors discussed in Section 3-III.F and 3-III.GE. Upon consideration of such factors, HACCC may, on a case- by-case basis, decide not to deny assistance. 3-III.ED. 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 HACCC 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 HACCC must require every applicant family to submit a consent form signed by each adult household member [24 CFR 5.903]. HACCC Policy HACCC 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, HACCC will request a fingerprint card and will request information from the National Crime Information center (NCIC). While a PHA has regulatory authority to use criminal conviction records for the purpose of applicant screening for admission, there is no corresponding authority to use these records to check for criminal and illegal drug activity by participants, and therefore, PHAs may not use records for this purpose. PHAs are required to perform criminal background checks necessary to determine whether any household member is subject to a Tier 3: Lifetime registration requirement under a state sex offender 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)]. HACCC Policy HACCC will use the National Credit Reporting database to screen applicants for admission. Additionally, PHAs must ask whether the applicant, or any member of the applicant’s household, is subject to a Tier 3: Lifetime registered sex offender registration requirement in any state [Notice PIH 2012-28]. If HACCC proposes to deny assistance based on a criminal record or on Tier 3: Lifetime sex offender registration information, HACCC must notify the household of the proposed action and must provide 108 3-29 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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)]. Screening for Suitability as a Tenant [24 CFR 982.307] HACCC has no liability or responsibility to the owner for the family’s behavior or suitability for tenancy. HACCC has the authority to conduct additional screening to determine whether an applicant is likely to be a suitable tenant. HACCC Policy HACCC 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. HACCC 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 HACCC to provide prospective owners with the family's current and prior address (as shown in HACCC records) and the name and address (if known) of the owner at the family's current and prior addresses. HUD permits HACCC 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. HACCC may not disclose to the owner any confidential information provided to HACCC by the family in response to a HACCC request for documentation of domestic violence, dating violence, sexual assault, or stalking, or human trafficking except at the written request or with the written consent of the individual providing the documentation [24 CFR 5.2007(a)(4)]. HACCC Policy HACCC will inform owners of their responsibility to screen prospective tenants, and will provide owners with the required known name and address information, at the time of the initial, HQS inspection or before. HACCC will not provide any additional information to the owner, such as tenancy history or criminal history. 3-III.EF. CRITERIA FOR DECIDING TO DENY ASSISTANCE Evidence [24 CFR 982.553(c)] HACCC Policy 109 3-30 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC 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 HACCC 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 mandatory (see Section 3-III.B). HACCC Policy HACCC will consider the following facts and circumstances prior to making its decision: • The seriousness of the case, especially with respect to how it would affect other residents’ safety or property • The effects that denial of assistance may have on other members of the family who were not involved in the action or failure to act • The extent of participation or culpability of individual family members, including whether the culpable family member is a minor or a person with disabilities, or (as discussed further in section 3-III.G) a victim of domestic violence, dating violence, sexual assault, or stalking or human trafficking. • The length of time since the violation occurred, including the age of the individual at the time of the conduct, as well as the family’s recent history and the likelihood of favorable conduct in the future • While a record or records of arrest(s) will not be used as the sole basis for denial, an arrest may, however, trigger an investigation to determine whether the applicant actually engaged in disqualifying criminal activity. As part of its investigation, the PHA may obtain the police report associated with the arrest and consider the reported circumstances of the arrest. The PHA may also consider: - Any statements made by witnesses or the applicant not included in the police report - Whether criminal charges were filed - Whether, if filed, criminal charges were abandoned, dismissed, not prosecuted, or ultimately resulted in an acquittal - Any other evidence relevant to determining whether or not the applicant engaged in disqualifying activity Evidence of criminal conduct will be considered if it indicates a demonstrable risk to safety and/or property 110 3-31 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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: - HACCC 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. Removal of a Family Member's Name from the Application Should HACCC’s screening process reveal that an applicant’s household includes an individual subject to state Tier 3: Lifetime registered sex offender registration, HACCC must offer the family the opportunity to remove the ineligible family member from the household. If the family is unwilling to remove that individual from the household, HACCC must deny admission to the family [Notice PIH 2012-28]. For other criminal activity, HACCC may permit the family to exclude the culpable family members as a condition of eligibility. [24 CFR 982.552(c)(2)(ii)]. HACCC 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, stay as a guest, or reside in the assisted unit. After admission to the program, the family must present evidence of the former family member’s current address upon HACCC request. Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)] If the family includes a person with disabilities, HACCC’s decision concerning denial of admission is subject to consideration of reasonable accommodation in accordance with 24 CFR Part 8. HACCC Policy If the family indicates that the behavior of a family member with a disability is the reason for the proposed denial of assistance, HACCC will determine whether the behavior is related to the stated disability. If so, upon the family’s request, HACCC will determine whether admitting the family as a reasonable accommodation is appropriate. HACCC 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. 3-III.FG. NOTICE OF ELIGIBILITY OR DENIAL 111 3-32 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If the family is eligible for assistance, HACCC will notify the family in writing and schedule a tenant briefing, as discussed in Chapter 5. If HACCC 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. HACCC Policy The family will be notified of a decision to deny assistance in writing within 14 calendar days of the determination. If a HACCC uses a criminal record or Tier 3: Lifetime 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 HACCC 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)]. HACCC 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)]. HACCC Policy If based on a criminal record or Tier 3: Lifetime sex offender registration information, an applicant family appears to be ineligible HACCC 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 14 calendar days to dispute the accuracy and relevance of the information. If the family does not contact HACCC to dispute the information within that 14-day period, HACCC 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. Notice policies related to denying admission to applicants who may be victims of domestic violence, dating violence, sexual assault, or stalking, or human trafficking are contained in Section 3-III.GH. 3-III.GH. PROHIBITION AGAINST DENIAL OF ASSISTANCE TO VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING AND HUMAN TRAFFICKING The Violence against Women Act of 2005 (VAWA) and the HUD regulation at 24 CFR 5.2005(b) prohibit PHAs from denying an applicant admission to the HCV program “on the basis that the applicant is or has been a victim of domestic violence, dating violence, sexual assault or stalking, if the applicant otherwise qualifies for assistance or admission.” 112 3-33 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 x Although the VAWA 2022 statute does not specifically include human trafficking in the list of victims protected under VAWA, in 2022 HUD began including human trafficking as part of the list of victims protected under VAWA (as seen in Notices PIH 2022-06, PIH 2022-22, and PIH 2022-24). In the absence of a final rule implementing VAWA 2022 and to mirror HUD’s recent usage, this policy includes human trafficking in addition to domestic violence, dating violence, sexual assault, and stalking anywhere such a list appears Definitions of key terms used in VAWA are provided in section 16-IX of this plan, where general VAWA requirements and policies pertaining to notification, documentation, and confidentiality are also located. Notification VAWA 2013 requiresexpanded notification requirements to include the obligation for PHAs to provide applicants who are denied assistance with a notice of rights and the form HUD-5382 at the time the applicant is denied. HACCC Policy HACCC acknowledges that a victim of domestic violence, dating violence, sexual assault. or Stalking or human trafficking may have an unfavorable history (e.g., a poor credit history, a record of previous damage to an apartment) that would warrant denial under HACCC’s policies. While HACCC is not required to identify whether adverse factors that resulted in the applicant’s denial are a result of domestic violence, dating violence, sexual assault, or stalking, or human trafficking, the applicant may inform HACCC that their status as a victim is directly related to the grounds for the denial. HACCC will request that the applicant provide enough information to HACCC to allow HACCC to make an objectively reasonable determination, based on all circumstances, whether the adverse factor is a direct result of their status as a victim. Therefore, if HACCC makes a determination to deny assistance to an applicant family, HACCC will include in its notice of denial the VAWA information described in section 16- IX.C of this plan and will request that an applicant wishing to claim protection under VAWA notify HACCC within 10 business days. Documentation Victim Documentation [24 CFR 5.2007] HACCC Policy If an applicant claims the protection against denial of assistance that VAWA provides to victims of domestic violence, dating violence, sexual assault, or stalking, or human 113 3-34 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 trafficking, HACCC will request in writing that the applicant provide documentation supporting the claim in accordance with section 16-IX.D of this plan. Perpetrator Documentation HACCC Policy If the perpetrator of the abuse is a member of the applicant family, the applicant must provide additional documentation consisting of one of the following: - A signed statement (1) requesting that the perpetrator be removed from the application and (2) certifying that the perpetrator will not be permitted to visit or to stay as a guest in the assisted unit - Documentation that the perpetrator has successfully completed, or is successfully undergoing, rehabilitation or treatment. The documentation must be signed by an employee or agent of a domestic violence service provider or by a medical or other knowledgeable professional from whom the perpetrator has sought or is receiving assistance in addressing the abuse. The signer must attest under penalty of perjury to their belief that the rehabilitation was successfully completed or is progressing successfully. The victim and perpetrator must also sign or attest to the documentation. 114 3-35 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EXHIBIT 3-1: DETAILED DEFINITION 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 of 2000 [42 U.S.C.15002(8)], which defines developmental disability in functional terms as follows: (A) In General The term “developmental disability” means a severe, chronic disability of an individual that: (i) is attributable to a mental or physical impairment or combination of mental and physical impairments; (ii) is manifested before the individual attains age 22; (iii) is likely to continue indefinitely; (iv) results in substantial functional limitations in 3 or more of the following areas of major life activity: (I) Self-care, (II) Receptive and expressive language, (III) Learning, (IV) Mobility, (V) Self-direction, (VI) Capacity for independent living, (VII) Economic self- sufficiency; and (v) reflects the individual’s need for a combination and sequence of special, interdisciplinary, or generic services, individualized supports, or other forms of assistance that are of lifelong or extended duration and are individually planned and coordinated. (B) Infants and Young Children An individual from birth to age 9, inclusive, who has a substantial developmental delay or specific congenital or acquired condition, may be considered to have a developmental disability without meeting 3 or more of the criteria described in clauses (i) through (v) of subparagraph (A) if the individual, without services and supports, has a high probability of meeting those criteria later in life. 115 3-36 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Has a physical, mental, or emotional impairment that is expected to be of long-continued and indefinite duration; substantially impedes their ability to live independently, and is of such a nature that the ability to live independently could be improved by more suitable housing conditions. 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 oneself, 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 116 3-37 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (c) Has none of the impairments defined in paragraph (1) of this section but is treated by a recipient as having such an impairment. 117 3-38 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EXHIBIT 3-2: DEFINITION OF INSTITUTION OF HIGHER EDUCATION [20 U.S.C. 1001 and 1002] Eligibility of Students for Assisted Housing Under Section 8 of the U.S. Housing Act of 1937; Supplementary Guidance; Notice [Federal Register, April 10, 2006] Institution of Higher Education shall have the meaning given this term in the Higher Education Act of 1965 in 20 U.S.C. 1001 and 1002. Definition of ‘‘Institution of Higher Education’’ From 20 U.S.C. 1001 (a) Institution of higher education. For purposes of this chapter, other than subchapter IV and part C of subchapter I of chapter 34 of Title 42, the term ‘‘institution of higher education’’ means an educational institution in any State that (1) Admits as regular students only persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate; (2) Is legally authorized within such State to provide a program of education beyond secondary education; (3) Provides an educational program for which the institution awards a bachelor’s degree or provides not less than a 2-year program that is acceptable for full credit toward such a degree; (4) Is a public or other nonprofit institution; and (5) Is accredited by a nationally recognized accrediting agency or association, or if not so accredited, is an institution that has been granted pre-accreditation status by such an agency or association that has been recognized by the Secretary for the granting of pre- accreditation status, and the Secretary has determined that there is satisfactory assurance that the institution will meet the accreditation standards of such an agency or association within a reasonable time. (b) Additional institutions included. For purposes of this chapter, other than subchapter IV and part C of subchapter I of chapter 34 of Title 42, the term ‘‘institution of higher education’’ also includes— (1) Any school that provides not less than a 1-year program of training to prepare students for gainful employment in a recognized occupation and that meets the provision of paragraphs (1), (2), (4), and (5) of subsection (a) of this section; and (2) A public or nonprofit private educational institution in any State that, in lieu of the requirement in subsection (a)(1) of this section, admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located. (c) List of accrediting agencies. For purposes of this section and section 1002 of this title, the Secretary shall publish a list of nationally recognized accrediting agencies or associations that the Secretary determines, pursuant to subpart 2 of part G of subchapter IV of this chapter, to be reliable authority as to the quality of the education or training offered. Definition of ‘‘Institution of Higher Education’’ From 20 U.S.C. 1002 118 3-39 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (a) Definition of institution of higher education for purposes of student assistance programs (1) Inclusion of additional institutions. Subject to paragraphs (2) through (4) of this subsection, the term ‘‘institution of higher education’’ for purposes of subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42 includes, in addition to the institutions covered by the definition in section 1001 of this title— (A) A proprietary institution of higher education (as defined in subsection (b) of this section); (B) A postsecondary vocational institution (as defined in subsection (c) of this section); and (C) Only for the purposes of part B of subchapter IV of this chapter, an institution outside the United States that is comparable to an institution of higher education as defined in section 1001 of this title and that has been approved by the Secretary for the purpose of part B of subchapter IV of this chapter. (2) Institutions outside the United States (A) In general. For the purpose of qualifying as an institution under paragraph (1)(C), the Secretary shall establish criteria by regulation for the approval of institutions outside the United States and for the determination that such institutions are comparable to an institution of higher education as defined in section 1001 of this title (except that a graduate medical school, or a veterinary school, located outside the United States shall not be required to meet the requirements of section 1001 (a)(4) of this title). Such criteria shall include a requirement that a student attending such school outside the United States is ineligible for loans made, insured, or guaranteed under part B of subchapter IV of this chapter unless— (i) In the case of a graduate medical school located outside the United States— (I) (aa) At least 60 percent of those enrolled in, and at least 60 percent of the graduates of, the graduate medical school outside the United States were not persons described in section 1091(a)(5) of this title in the year preceding the year for which a student is seeking a loan under part B of subchapter IV of this chapter; and (bb) At least 60 percent of the individuals who were students or graduates of the graduate medical school outside the United States or Canada (both nationals of the United States and others) taking the examinations administered by the Educational Commission for Foreign Medical Graduates received a passing score in the year preceding the year for which a student is seeking a loan under part B of subchapter IV of this chapter; or (II) The institution has a clinical training program that was approved by a State as of January 1, 1992; or (ii) In the case of a veterinary school located outside the United States that does not meet the requirements of section 1001(a)(4) of this title, the institution’s students 119 3-40 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 complete their clinical training at an approved veterinary school located in the United States. (B) Advisory panel (i) In general. For the purpose of qualifying as an institution under paragraph (1)(C) of this subsection, the Secretary shall establish an advisory panel of medical experts that shall— (I) Evaluate the standards of accreditation applied to applicant foreign medical schools; and (II) Determine the comparability of those standards to standards for accreditation applied to United States medical schools. (ii) Special rule if the accreditation standards described in clause (i) are determined not to be comparable, the foreign medical school shall be required to meet the requirements of section 1001 of this title. (C) Failure to release information. The failure of an institution outside the United States to provide, release, or authorize release to the Secretary of such information as may be required by subparagraph (A) shall render such institution ineligible for the purpose of part B of subchapter IV of this chapter. (D) Special rule. If, pursuant to this paragraph, an institution loses eligibility to participate in the programs under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, then a student enrolled at such institution may, notwithstanding such loss of eligibility, continue to be eligible to receive a loan under part B while attending such institution for the academic year succeeding the academic year in which such loss of eligibility occurred. (3) Limitations based on course of study or enrollment. An institution shall not be considered to meet the definition of an institution of higher education in paragraph (1) if such institution— (A) Offers more than 50 percent of such institution’s courses by correspondence, unless the institution is an institution that meets the definition in section 2471 (4)(C) of this title; (B) Enrolls 50 percent or more of the institution’s students in correspondence courses, unless the institution is an institution that meets the definition in such section, except that the Secretary, at the request of such institution, may waive the applicability of this subparagraph to such institution for good cause, as determined by the Secretary in the case of an institution of higher education that provides a 2-or 4-year program of instruction (or both) for which the institution awards an associate or baccalaureate degree, respectively; (C) Has a student enrollment in which more than 25 percent of the students are incarcerated, except that the Secretary may waive the limitation contained in this subparagraph for a nonprofit institution that provides a 2-or 4-year program of instruction (or both) for which the institution awards a bachelor’s degree, or an associate degree or a postsecondary diploma, respectively; or 120 3-41 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (D) Has a student enrollment in which more than 50 percent of the students do not have a secondary school diploma or its recognized equivalent, and does not provide a 2-or 4- year program of instruction (or both) for which the institution awards a bachelor’s degree or an associate’s degree, respectively, except that the Secretary may waive the limitation contained in this subparagraph if a nonprofit institution demonstrates to the satisfaction of the Secretary that the institution exceeds such limitation because the institution serves, through contracts with Federal, State, or local government agencies, significant numbers of students who do not have a secondary school diploma or its recognized equivalent. (4) Limitations based on management. An institution shall not be considered to meet the definition of an institution of higher education in paragraph (1) if— (A) The institution, or an affiliate of the institution that has the power, by contract or ownership interest, to direct or cause the direction of the management or policies of the institution, has filed for bankruptcy, except that this paragraph shall not apply to a nonprofit institution, the primary function of which is to provide health care educational services (or an affiliate of such an institution that has the power, by contract or ownership interest, to direct or cause the direction of the institution’s management or policies) that files for bankruptcy under chapter 11 of title 11 between July 1, 1998, and December 1, 1998; or (B) The institution, the institution’s owner, or the institution’s chief executive officer has been convicted of, or has pled nolo contendere or guilty to, a crime involving the acquisition, use, or expenditure of funds under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, or has been judicially determined to have committed fraud involving funds under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42. (5) Certification. The Secretary shall certify an institution’s qualification as an institution of higher education in accordance with the requirements of subpart 3 of part G of subchapter IV of this chapter. (6) Loss of eligibility. An institution of higher education shall not be considered to meet the definition of an institution of higher education in paragraph (1) if such institution is removed from eligibility for funds under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42 as a result of an action pursuant to part G of subchapter IV of this chapter. (b) Proprietary institution of higher education (1) Principal criteria. For the purpose of this section, the term ‘‘proprietary institution of higher education’’ means a school that— (A) Provides an eligible program of training to prepare students for gainful employment in a recognized occupation; (B) Meets the requirements of paragraphs (1) and (2) of section 1001 (a) of this title; (C) Does not meet the requirement of paragraph (4) of section 1001 (a) of this title; (D) Is accredited by a nationally recognized accrediting agency or association recognized by the Secretary pursuant to part G of subchapter IV of this chapter; 121 3-42 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (E) Has been in existence for at least 2 years; and (F) Has at least 10 percent of the school’s revenues from sources that are not derived from funds provided under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, as determined in accordance with regulations prescribed by the Secretary. (2) Additional institutions. The term ‘‘proprietary institution of higher education’’ also includes a proprietary educational institution in any State that, in lieu of the requirement in paragraph (1) of section 1001 (a) of this title, admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located. (c) Postsecondary vocational institution. (1) Principal criteria. For the purpose of this section, the term ‘‘postsecondary vocational institution’’ means a school that— (A) Provides an eligible program of training to prepare students for gainful employment in a recognized occupation; (B) Meets the requirements of paragraphs (1), (2), (4), and (5) of section 1001 (a) of this title; and (C) Has been in existence for at least 2 years. (2) Additional institutions. The term ‘‘postsecondary vocational institution’’ also includes an educational institution in any State that, in lieu of the requirement in paragraph (1) of section 1001 (a) of this title, admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located. 122 4-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 CHAPTER 4 APPLICATIONS, WAITING LIST AND TENANT SELECTION INTRODUCTION When a family wishes to receive assistance under the HCV program, the family must submit an application that provides HACCC with the information needed to determine the family’s eligibility. HUD requires HACCC to place all families that apply for assistance on a waiting list. When HCV assistance becomes available, HACCC 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. HACCC is required to adopt clear policies and procedures for accepting applications, placing families on the waiting list, and selecting families from the waiting list, and must follow these policies and procedures 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 HACCC that justify their selection. Examples of this are the selection of families for income targeting and the selection of families that qualify for targeted funding. HUD regulations require that all families have an equal opportunity to apply for and receive housing assistance, and that HACCC 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 HACCC 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 HACCC will handle the applications it receives. Part II: Managing the Waiting List. This part presents the policies that govern how HACCC’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 HACCC will use to keep the waiting list current. Part III: Selection for HCV Assistance. This part describes the policies that guide HACCC in selecting families for HCV assistance as such assistance becomes available. It also specifies how in-person interviews will be used to ensure that HACCC has the information needed to make a final eligibility determination. 123 4-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART I: THE APPLICATION PROCESS 4-I.A. OVERVIEW This part describes HACCC policies for making applications available, accepting applications making preliminary determinations of eligibility, and the placement of applicants on the waiting list. This part also describes HACCC’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, Notice PIH 2009-36] Any family that wishes to receive HCV assistance must apply for admission to the program. HUD permits HACCC to determine the format and content of HCV applications, as well as how such applications will be made available to interested families and how applications will be accepted by HACCC. HACCC must include Form HUD-92006, Supplement to Application for Federally Assisted Housing, as part of HACCC’s application. HACCC Policy Because demand for housing far exceeds available funding, HACCC will only provide HCV assistance to eligible families on its wait list, with the exception of families transferring into the program through portability. HACCC will utilize a lottery to place applicants on the wait list. A lottery ensures that all applicants who express a need for assistance are given an equal opportunity to apply for and receive a voucher. HACCC will conduct a wait list lottery every 30 months or less. All applicants on an existing wait list will be served or withdrawn prior to families being invited to apply to a new wait list. Lottery applicants will only be required to provide information needed to make an initial assessment of the family’s eligibility, and to determine the family’s placement on the waiting list. This is known as the "pre-application." This information will not be verified for waiting list placement. 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. This information will be verified. If it is determined that the family intentionally misrepresented the facts on the pre-application, the family will either be placed back on the wait list (ranked by their current preferences), or will be denied assistance. If the family is unable to verify their declared preferences, the family will be denied those preferences and will be placed back on the waiting list ranked by their verified preferences. 4-I.C. ACCESSIBILITY OF THE APPLICATION PROCESS Elderly and Disabled Populations [24 CFR 8 and HCV GB, pp. 4-11 – 4-13] HACCC must take 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 124 4-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 include people with disabilities, certain elderly individuals, as well as persons with limited English proficiency (LEP). HACCC must provide reasonable accommodation to the needs of individuals with disabilities. The application process must be fully accessible, or HACCC must provide an alternate approach that provides full access to the application process. Chapter 2 provides a full discussion of HACCC’s policies related to providing reasonable accommodations for people with disabilities. Limited English Proficiency PHAs are required to take reasonable steps to ensure equal access to their programs and activities by persons with limited English proficiency [24 CFR 1]. Chapter 2 provides a full discussion on HACCC’s policies related to ensuring access to people with limited English proficiency (LEP). 4-I.D. PLACEMENT ON THE WAITING LIST HACCC must review each complete application received and make a preliminary assessment of the family’s eligibility. HACCC 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, HACCC must notify the family in writing [24 CFR 982.201(f)]. 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 HACCC Policy HACCC will conduct a lottery of all families and individuals who have turned in applications during the application period. Only applicants selected in the lottery will be placed on the wait list. Those not selected will receive a written notice informing them that they were not selected for the wait list. If HACCC determines from the information provided on the pre-application that any applicant placed on the wait list appears ineligible, the family will be sent a notice denying them assistance. HACCC will send the written notification of the ineligibility determination within 14 calendar 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 and explain the process for doing so (see Chapter 16). Eligible for Placement on the Waiting List HACCC Policy 125 4-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC will send written notification of placement on the waiting list within 14 calendar days of verification of the lottery results. 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 their lottery number. 126 4-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART II: MANAGING THE WAITING LIST 4-II.A. OVERVIEW HACCC 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] HACCC’s HCV waiting list must be organized in such a manner to allow HACCC 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: • Name and social security number of head of household; • Family unit size and number of family members; • Amount of annual income • Any accessibility needs • Any translation/interpretation needs • Wait list opening date and lottery number • Qualification for any local preference; • Racial or ethnic designation of the head of household; • Postal mailing address. HUD requires HACCC 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. HACCC Policy HACCC will maintain a single waiting list for the HCV program. In addition, HACCC shall maintain a separate site-based waiting list for each Project-Based Voucher (PBV) Project. 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 HACCC operates if 1) the other programs’ waiting lists are open, and 2) the family is qualified for the other programs. 127 4-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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. HACCC Policy HACCC will not merge the HCV waiting list with the waiting list for any other program HACCC operates. 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, HACCC may elect to continue to accept applications only from certain categories of families that meet particular preferences or funding criteria. HACCC Policy Due to the overwhelming interest in housing assistance received when the wait list is open, HACCC will accept applications for no more than one week at a time. The wait list may be opened for a shorter period of time. HACCC will randomly select applicants via a lottery if there are more applicants than anticipated available vouchers over the subsequent 24-month period. Where HACCC has particular preferences or funding criteria that require a specific category of family, HACCC may elect to continue to accept applications from these applicants while closing the waiting list to others. HACCC will close the waiting list at the end of the advertised open period. After 24 months, the wait list will be purged of all remaining applicants and a denial letter sent to them. A new wait list will be created thereafter for the next 24 months. Where HACCC has particular preferences or funding criteria that require a specific category of family, HACCC may elect to continue to accept applications from these applicants while closing the waiting list to others. In the event that HACCC is placed in a Shortfall protocol by HUD during the 24-month active wait list period, the time clock on the 24 months will be suspended (Tolled) for the number of days the wait list is in shortfall in order to provide all applicants the stated 24-Month waiting period in anticipation of a Housing Choice Voucher. Reopening the Waiting List If the waiting list has been closed, it may be reopened at any time. HACCC must give public notice of the waiting list opening. The notice must comply with HUD fair housing requirements and must specify who may apply, and where and when applications will be received. 128 4-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy HACCC will announce the reopening of the waiting list at least 14 calendar 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. HACCC will give public notice by publishing the relevant information in suitable media outlets including, but not limited to the following newspapers: • Contra Costa Times • Peninsula Community News • LEP Publications: • El Observador • Vietnam Daily News HACCC will develop informational materials and flyers to distribute to public and private agencies that serve low-income persons and will also make presentations to such organizations. HACCC may provide instructions regarding the application process to other agencies that serve low-income clients and also may develop partnerships with such organizations, particularly those that serve persons with disabilities or LEP persons. Additions to the HCV wait list that are formalities for 3rd part referrals for special funding sources such as Mainstream, Family Unification/Foster Youth Initiative, VASH, Stability Vouchers, Emergency Housing Vouchers or other similar funding sources that involve third- party agencies such as Health, Housing and Homeless Services or Employment and Human Services, etc, will not require public notice as indicated above for broad outreach waiting list efforts. 4-II.D. FAMILY OUTREACH [HCV GB, pp. 4-2 to 4-4] HACCC must conduct outreach as necessary to ensure that HACCC has a sufficient number of applicants on the waiting list to use the HCV resources it has been allotted. Because HUD requires HACCC to admit a specified percentage of extremely low-income families to the program (see Chapter 4, Part III), HACCC 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 129 4-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • 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 information on the application process to other public and private agencies that serve low-income families • Developing partnerships with other organizations that serve similar populations, including agencies that provide services for persons with disabilities HACCC Policy HACCC will monitor the characteristics of the population being served and the characteristics of the population as a whole in HACCC’s jurisdiction. Targeted outreach efforts will be undertaken if a comparison suggests that certain populations are being underserved. 4-II.E. REPORTING CHANGES IN FAMILY CIRCUMSTANCES HACCC Policy While the family is on the waiting list, the family must immediately inform HACCC of changes in contact information, including current residence, mailing address, and phone number. The changes must be submitted through the HACCC Applicant Portal. HACCC will send a written confirmation that the notice of change was received to the email address provided by the family. 4-II.F. UPDATING THE WAITING LIST [24 CFR 982.204] HUD requires HACCC to establish policies to use when removing applicant names from the waiting list. Since the wait list will only be active for 24 months, it is unlikely that it will need to be updated. However, if HACCC must update the wait list for any reason, the following guidelines will be followed: Purging the Waiting List HACCC Policy The waiting list will be updated as needed to ensure that all applicants are still interested in receiving housing assistance and that applicant contact information is current. To update the waiting list, HACCC 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 130 4-9 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 to qualify for, the program. This update request will be sent to the last address that HACCC 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 HCV waiting list or multiple PBV site-based waiting lists if the update inquiry is for all programs. For wait list updates or correspondence to applicants on a specific wait list, if the household fails to respond, they shall only be removed from the specific wait list they received correspondence for. 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 HACCC not later than 30 calendar days from the date of HACCC letter. If the family fails to respond within 30 calendar days of the date of the update letter, 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 the notice is returned by the post office with a forwarding address, the notice will be re- sent to the address indicated. The family will have 14 calendar days to respond from the date the letter was re-sent. If a family is removed from the waiting list for failure to respond, the PHA may reinstate the family if it is determined that the lack of response was due to PHA error, or to circumstances beyond the family’s control., as a result of a family member’s disability, or as a direct result of status as a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, including an adverse factor resulting from such abuse. Removal from the Waiting List HACCC Policy HACCC will remove applicants from the waiting list if they have requested that their name be removed in writing, in person or by email. In such cases no informal hearing is required. If at any time an applicant family is on the waiting list, HACCC 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 HACCC 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 HACCC’s decision (see Chapter 16) [24 CFR 982.201(f)]. 131 4-10 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The HCV wait list will terminate after 24 months from the date it notified applicants of their initial placement on the wait list. A new HCV wait list will be created thereafter. Families removed from the waitlist due to failure to respond to updates or an invitation for certification will be considered for reinstatement to the waiting list for up to 12 months from the date they were removed from the waiting list or the expiration of the waiting list, whichever is earlier. 132 4-11 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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 are selected from the waiting list depends on the selection method chosen by HACCC and is impacted in part by any selection preferences for which the family qualifies. The availability of targeted funding also may affect the order in which families are selected from the waiting list. HACCC must maintain a clear record of all information required to verify that the family is selected from the waiting list according to HACCC’s selection policies [24 CFR 982.204(b) and 982.207(e)]. 4-III.B. 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, HACCC may admit such families whether or not they are on the waiting list, and, if they are on the waiting list, without considering the family’s position on the waiting list. These families are considered non-waiting list selections. HACCC must maintain records showing that such families were admitted with special program funding. HACCC administers the following Special Purpose funding: • Veterans Administration Supportive Housing Program (VASH). Admissions are accepted at 80 % of Area Median Income (Low Income) limit. • Mainstream Program • Emergency Housing Vouchers • Stability Vouchers Special (non-waitlist) Admissions include the following: • In-Place households for newly authorized PBV projects • Public Housing residents displaced due to RAD and other HACCC redevelopment efforts • Up to 50 vouchers designated for formerly homeless families transitioning from higher- level Continuum of Care-funded permanent supportive housing programs who no longer 133 4-12 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 need a higher level of care. A referral from the permanent supportive housing program is required. • Family Unification Program/Foster Youth Initiative Referrals from a partnering agency. Targeted Funding [24 CFR 982.204(e)] HUD may award a PHA funding for a specified category of families on the waiting list. HACCC must use this funding only to assist the families within the specified category. In order to assist families within a targeted funding category, HACCC may skip families that do not qualify within the targeted funding category. Within this category of families, the order in which such families are assisted is determined according to the policies provided in Section 4-III.C. HACCC Policy HACCC currently administers targeted funding for Mainstream 5, Emergency Housing Vouchers and Stability Vouchers. 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. 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 HACCC 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. HUD specifically authorizes and places restrictions on certain types of local preferences. HUD also permits HACCC to establish other local preferences, at its discretion. Any local preferences established must be consistent with HACCC plan and the consolidated plan and must be based on local housing needs and priorities that can be documented by a generally accepted data sources. HACCC Policy HACCC will use the following preferences (listed below with their ranking value) to rank applicants on the wait list: • Involuntary Displacement (20 points). A preference for applicants who have been involuntarily displaced from housing due to: • A federal or state declared disaster 134 4-13 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Government action (e.g., code enforcement, public improvement or development). Government action will also include participants in a witness protection program) • Action by a housing owner that is beyond an applicant’s ability to control, and which occurs despite the applicant's having met all previous conditions of occupancy, and is other than a rent increase (e.g. conversion of a unit to non- rental or residential use, owner wants the property for personal use, foreclosure). If the owner is an immediate family relative and there has been no previous rental agreement and the applicant has been part of the owner's family immediately prior to application, the applicant will not be considered involuntarily displaced. To receive this preference, applicants must not be living in standard, permanent replacement housing. State law requires a preference in cases of displacement by public or private action. • Permanent Supportive Housing Graduation (500 points). A preference for formerly homeless families who have graduated from a Contra Costa County Continuum of Care (COC) funded permanent supportive housing program, or another homeless housing program participating in the COC Coordinated Entry system, that partners with HACCC such as the Continuum of Care Rental Assistance Program formerly known as Shelter Plus Care. A referral from the COC Coordinated Entry system is required to be eligible for this preference. HACCC will provide up to 50 vouchers to eligible families who are homeless and that meet the local preference criteria defined in the Memorandum of Understanding (MOU) by and between HACCC and its partner agency(s). HACCC may, at its discretion, modify the total number of vouchers available for this local preference based on funding availability, the performance of social service agency partners, or other factors. To serve these clients, HACCC's partner(s) will refer clients to HACCC that meet certain eligibility criteria for the local preference as defined in the Memoranda of Understanding (MOU) with each organization. HACCC may, at its discretion, enter into MOUs with additional agencies serving this population in the future. The partner agency must agree to provide housing search assistance and case management support so that the clients can find housing and remain stably housed. HACCC will not accept any referrals from partner agencies once the allotment for this local preference has been met. Thereafter, applicants referred by partner agencies will be added to the waiting list when there are vouchers available for this local preference. Applicants who are already on HACCC's waiting list may be pulled to the top of the Waiting List if they meet the eligibility requirements for the preference and are referred by the partner agencies. Eligibility for this local preference is limited to families who are formerly homeless as defined in the MOU between HACCC and the partner agency. Additionally, applicants who qualify for the local preference must meet all of HACCC's specific screening and eligibility requirements. • Mainstream (250 Points). A preference for non-elderly persons with disabilities transitioning out of institutional and other segregated settings, at serious risk of institutionalization, homeless, at risk of becoming homeless or previously experienced homelessness and is currently a client in permanent supportive housing or a rapid rehousing project. Families on the HCV waiting list 135 4-14 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 shall have first priority for the Mainstream vouchers and thereafter a separate waiting list for Mainstream eligible households shall be maintained to include referrals from the Housing Consortium of the East Bay and the Contra Costa County Health, Housing and Human Services department who are partners with HACCC in the Mainstream voucher program. x FUP-Youth/Foster Youth to Independence Initiative (250 Points). A preference for youth aging out of the Foster Care system who are certified by a Participating Child Welfare Agency (PCWA) as meeting the following conditions: 1. Has attained at least 18 years and not more than 24 years of age; 2. Left foster care, or will leave foster care within 90 days, in accordance with a transition plan described in section 475(5)(H) of the Social Security Act; and 3. Is homeless3 or is at risk of becoming homeless4 at age 16 or older. Eligibility for this preference is entirely based on the applicant being referred by the PCWA for specific participation in the FUP-Youth/FYI subsidy programs and is aging out of the rental subsidy program pursuant to HUD regulations. • Move from Las Deltas Properties to dramatically improve living conditions (500 points). A preference for residents of the Las Deltas public housing properties who will move to other housing as soon as possible to dramatically improve their living conditions. • Insufficient Funding Termination (20 points). A preference to any family that has been terminated from HACCC’s HCV program due to insufficient program funding. • Residency Preference (10 points). A residency preference for applicants who live, work or have been hired to work in Contra Costa County. The use of a residency preference will not have the purpose or effect of delaying or otherwise denying admission to the program based on the race, color, ethnic origin, gender, religion, disability, or age of any member of an applicant family. • Eligibility for this preference must be demonstrated by having a permanent physical residence within the jurisdictional area. Physical residence shall be defined as a domicile with a mailing address, other than a P.O. Box, for which the applicant can produce one or more of the following: a lease or purchase agreement, utility bills in their name showing the stated address, two pieces of first-class mail addressed to the applicant or a member of their household at the stated address. In certain circumstances of homelessness, third party verification from service agencies, clergy, merchants or other reliable source can be substituted subject to the approval of HACCC. • Veterans Assistance (1 point). A preference for current or former members of the U.S. Armed Forces, veterans, or surviving spouses of veterans (as required by state law). 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 HACCC’s fiscal year. ELI families are those with annual incomes at the greater of the Federal Poverty level or below 30% of the area median income. To 136 4-15 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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)]. HACCC Policy HACCC will monitor progress in meeting the income targeting 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. Order of Selection HACCC system of preferences may select families based on local preferences according to the date and time of application or by a random selection process (lottery) [24 CFR 982.207(c)]. If a PHA does not have enough funding to assist the family at the top of the waiting list, it is 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)]. HACCC Policy All applications received within the application window will be accepted and entered into the applicant pool. The applicant pool will be screened for duplicate applications. Only one application will be allowed per Head of Household. Applicants will be randomly selected for the wait list by computer-generated lottery. All applicants in the pool will be randomly assigned a lottery number. Families will be selected for the waiting list based on preference points and lottery number from the lowest to the highest number until HACCC has reached number 2,400. If HACCC issues all 2,400 vouchers over the next 24 months, the waiting list will be re-opened. If not, after 24 months from the date of notification to families of their placement on the wait list, the remaining applicants not selected will be denied and a new application process will be implemented. HACCC plans to open the HCV wait list every two years. No other applicant may be placed on the list. All other applicants will have to reapply in the future. All applicants will be assigned points based on any preference(s) for which they qualify (e.g., a veteran and resident of HACCC’s jurisdiction would receive 11 points). Applicants with more preference points will be ranked ahead of applicants with fewer preference points. Among applicants with the same number of preference points, families will be selected according to the lottery number assigned to them in the original lottery. A family assigned a lower number will have preference over a family assigned a higher number (e.g., a family assigned the number 20 in the lottery will receive preference over a family assigned 105). 137 4-16 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 When selecting families from the waiting list, if HACCC has targeted funding available, it must use those funds only to assist those families who meet the specified criteria. Within each targeted funding category, families will be selected based on the selection preference(s) for which they qualify (e.g., Mainstream Program) and by using their lottery placement as a tiebreaker. Documentation will be maintained by HACCC as to whether families on the list qualify for and are interested in targeted funding. If a higher placed family on the waiting list is neither qualified nor interested in targeted funding, there will be a notation maintained so that HACCC does not have to ask higher placed families each time targeted selections are made. HACCC may also skip families in order to meet HUD’s ELI requirements. HACCC will assist qualified families in rank order off the wait list. HACCC is 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)]. Preferences will be verified at the time of the full application. If a preference cannot be verified, the family will be returned to the wait list with the revised (lower) preference total. All preferences must be applicable when the family reaches the top of the waiting list when final eligibility is determined. For purposes of final eligibility determination, preferences must be able to be documented within the past six months unless there are extenuating circumstances that will be considered on a case-by-case basis. 4-III.D. NOTIFICATION OF SELECTION When a family has been selected from the waiting list, HACCC must notify the family [24 CFR 982.554(a)]. HACCC Policy HACCC 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 • All documents that must be provided at the interview, including information about what constitutes acceptable documentation If a notification letter is returned to HACCC with no forwarding address, 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. 138 4-17 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 4-III.E. THE APPLICATION INTERVIEW HUD recommends that HACCC obtain the information and documentation needed to make an eligibility determination through a face-to-face interview with a PHA representative [HCV GB, pg. 4-16]. Being invited to attend an interview does not constitute admission to the program. Assistance cannot be provided to the family until all SSN documentation requirements are met. However, if HACCC determines that an applicant family is otherwise eligible to participate in the program, the family may retain its place on the waiting list for a period of time determined by HACCC [Notice PIH 2012-10]. Reasonable accommodation must be made for persons with disabilities who are unable to attend an interview due to their disability. HACCC Policy Families selected from the waiting list are required to participate in an eligibility interview. All adult family members must be present at the initial eligibility appointment. If any adult members are not present at the initial eligibility appointment the appointment will be rescheduled. Verification of information pertaining to all adult members of the household not present at the interview will not begin until signed release forms are returned to HACCC. All adult household members must provide acceptable documentation of legal identity. (Chapter 7 provides a discussion of proper documentation of legal identity). If the adult members do not provide the required documentation at the time of the interview, they will be required to provide it within 14 calendar days. All adult family members must also consent to a fingerprinting scan for criminal background screening. The family must provide the information necessary to establish the family’s eligibility and determine the appropriate level of assistance, as well as complete required forms, provide required signatures, and submit required documentation. If any materials are missing, HACCC will provide the family with a written list of items that must be submitted. If the family is claiming a waiting list preference, the family must provide documentation to verify their eligibility for a preference (see Chapter 7). If the family is verified as eligible for the preference, HACCC will proceed with the interview. If HACCC determines the family is not eligible for the preference, the interview will not proceed, and the family will be placed back on the waiting list according to their updated preference ranking and lottery number. Any required documents or information that the family is unable to provide at the interview must be provided with 14 calendar days of the interview (Chapter 7 provides details about longer submission deadlines for particular items, including documentation of eligible noncitizen status). If the family is unable to obtain the information or materials within the 139 4-18 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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, HACCC will provide translation services in accordance with HACCC’s LEP plan. If the family is unable to attend a scheduled interview, the family should contact HACCC in advance of the interview to schedule a new appointment. In all circumstances, if a family does not attend a scheduled interview, HACCC will send another notification letter with a new interview appointment time. 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. 4-III.F. COMPLETING THE APPLICATION PROCESS HACCC must verify all information provided by the family (see Chapter 7). Based on verified information, HACCC must make a final determination of eligibility (see Chapter 3) and must confirm that the family qualified for any special admission, targeted funding admission, or selection preference that affected the order in which the family was selected from the waiting list. If HACCC determines that the family is ineligible, HACCC will send written notification of the ineligibility determination within 14 calendar 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 its original position on the waiting list. HACCC will notify the family in writing that it has been returned to the waiting list and will specify the reasons for it. If HACCC determines that the family is eligible to receive assistance, HACCC will invite the family to attend a briefing in accordance with the policies in Chapter 5. 140 5-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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, HACCC 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 the HUD-required documents and other information the family needs to know in order to lease a unit under the program. Once the family is fully informed of the program’s requirements, HACCC issues the family a voucher. The voucher includes the unit size for which the family qualifies based on HACCC’s subsidy standards, as well as the issue and expiration date of the voucher. The voucher is the document that authorizes 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 HACCC’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. 141 5-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART I: BRIEFINGS AND FAMILY OBLIGATIONS 5-I.A. OVERVIEW HUD regulations require HACCC to conduct mandatory briefings for applicant families who qualify for a voucher. The briefing provides a broad description of owner and family responsibilities, explains HACCC’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. 5-I.B. BRIEFING [24 CFR 982.301] HACCC 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, HACCC 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. HACCC Policy Briefings may be conducted in group meetings or individually. All briefings may be conducted in person, remotely, by teleconference or, as a last resort, telephonically. Generally, the head of household is required to attend the briefing. If the head of household is unable to attend, HACCC 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, HACCC will provide translation services in accordance with HACCC’s LEP plan (See Chapter 2). Notification and Attendance HACCC 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. In addition to in-person group and/or individual briefings, HACCC shall conduct briefings for new participants and households moving to other units by telephone or other electronic means and refer them to our website for the briefing packet or mail it to the 142 5-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 family to have and follow along with staff during the phone briefing. The tenant file will be documented with the date and time of the remote briefing and how the briefing packet was provided to them. 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 last address of record, as well as to any alternate address provided on the initial application. Applicants who fail to attend a scheduled briefing will be scheduled for another briefing automatically. HACCC will notify the family of the date and time of the second scheduled briefing. Applicants who fail to attend two scheduled briefings, without prior PHA approval, will be denied assistance (see Chapter 3). 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 HACCC’s • jurisdiction; • An explanation of how portability works. The PHA may not discourage the family from choosing to live anywhere in the PHA jurisdiction or outside the PHA jurisdiction under portability, unless otherwise expressly authorized by statute, regulation, PIH Notice, or court order; • The PHA must inform the family of how portability may affect the family’s assistance through screening, subsidy standards, payment standards, and any other elements of the portability process which may affect the family’s assistance; • The advantages of areas that do not have a high concentration of low-income families; 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. In briefing a family that includes a person with disabilities, HACCC must also take steps to ensure effective communitcation. Briefing Packet [24 CFR 982.301(b)]; New GB, Housing Search and Leasing Documents and information provided in the briefing packet must include the following: 143 5-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • The term of the voucher, voucher suspensions and HACCC’s policies on any extensions of the term. If HACCC 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 HACCC determines the payment standard for a family, how HACCC • Determines total tenant payment for a family, and information on the payment standard and utility allowance schedule. • An explanation of how HACCC determines the maximum allowable rent for an assisted unit. • Where the family may lease a unit and an explanation of how portability works, including information on how portability may affect the family’s assistance through screening, subsidy standards, payment standards, and any other elements of the portability process that may affect the family’s assistance. • 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 HACCC Policy on providing information about families to prospective owners. • HACCC subsidy standards including when and how exceptions are made. • Materials (e.g., brochures) on how to select a unit and any additional information on selecting a unit that HUD provides; (e.g., HUD brochure entitled, “A Good Place to Live”). x Information on federal, state and local equal opportunity laws and a copy of the housing discrimination complaint form, including information on how to complete the form and file a fair housing complaint. • A list of landlords known to the PHA who may be willing to lease a unit to the family or other resources (e.g., newspapers, organizations, online search tools) known to the PHA that may assist the family in locating a unit. PHAs must ensure that the list of landlords or other resources covers areas outside 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 HACCC. • The family obligations under the program, including any obligations of a welfare-to-work family, and any obligations of other special programs if the family is participating in one of those programs.. 144 5-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • The grounds on which HACCC may terminate assistance for a participant family because of family action or failure to act. • PHA informal hearing procedures including when HACCC is required to offer a participant family the opportunity for an informal hearing, and how to request the hearing. • An explanation of the advantages of moving to an area that does not have a high concentration of low-income families. • The HUD pamphlet on lead-based paint entitled, “Protect Your Family from Lead in Your Home.” If HACCC is located in a metropolitan 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 with names, addresses, and telephone numbers Additional Items to Be Included in the Briefing Packet In addition to items required by the regulations, PHAs may wish to include supplemental materials to help explain the program to both participants and owners [HCV GB p. 8-7, Notice PIH 2017-12]. HACCC Policy HACCC will provide the following additional materials in the briefing packet: "Good Neighbor Guidance" that will suggest ways that Section 8 participants can assimilate into their new neighborhoods, i.e., not parking on front lawns, mowing, trimming, and watering any grass, making sure trash is not allowed to accumulate beyond the weekly pickup available in most communities. Landlords will be allowed to incorporate all or part of the Good Neighbor Guidance into their lease. Information on how to fill out and file a housing discrimination complaint form Information about the protections afforded by the Violence against Women Act of 2005 (VAWA) to victims of domestic violence, dating violence, sexual assault and stalking (see section 16-IX.C) 145 5-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 “Is Fraud Worth It?” (Form HUD-1141-OIG), which explains the types of actions a family must avoid and the penalties for program abuse “What You Should Know about EIV,” a guide to the Enterprise Income Verification (EIV) system published by HUD as an attachment to Notice PIH 2017-12 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. HACCC 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 HACCC Policy Unless otherwise noted below, when family obligations require the family to respond to a request or notify HACCC of a change, notifying HACCC of the request or change within 14 calendar days is considered prompt notice. When a family is required to provide notice to HACCC, the notice must be in writing. Family Obligations [24 CFR 982.551] The family obligations of the voucher are listed as follow: • The family must supply any information that HACCC 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 HACCC or HUD for use in a regularly scheduled reexamination or interim reexamination of family income and composition. • All adult members of the family must attend each recertification appointment, provide documents and sign documents as required to complete annual and interim recertifications. • The family must disclose HACCC any information they receive from HUD. • The family must disclose and verify social security numbers and sign and submit consent forms for obtaining information. 146 5-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Any information supplied by the family must be true and complete. • The family is responsible for any deficiencies under the National Standards for the Physical Inspection of Real Estate (NSPIRE)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 ordinarynormal wear and tear caused by any member of the household or guest. • The family must not damage the unit or premises (other than ordinary wear and tear) or permit any guest to damage the unit or premises. Damages beyond ordinary wear and tear will be considered to be damages which could be assessed against the security deposit under state law or in court practice. • The family must allow HACCC to inspect the unit at reasonable times and after reasonable notice, as described in Chapter 8 of this plan. • The family is responsible for any Housing Quality Standard breach of NSPIRE standards caused by the family or guests. • The family must not commit any serious or repeated violation of the lease. HACCC Policy HACCC 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, police reports, and affidavits from the owner, neighbors, or other credible parties with direct knowledge. Serious and repeated lease violations will include, but not be limited to, nonpayment of rent, disturbance of neighbors, destruction of property, living or housekeeping habits that cause damage to the unit or premises, and criminal activity. Generally, the criterion to be used will be whether or not the reason for the eviction was the fault of the tenant or guests. Any incidents of, or criminal activity related to, domestic violence, dating violence, sexual assault, stalking, or stalking human trafficking will not be construed as serious or repeated lease violations by the victim [24 CFR 5.2005(c)(1)]. • The family must notify the owner and HACCC before moving out of the unit or terminating the lease. HACCC Policy The family must comply with lease requirements regarding written notice to the owner. The family must provide written notice to HACCC at the same time the owner is notified. • The family must promptly give HACCC a copy of any owner eviction notice. 147 5-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • 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 HACCC. The family must promptly notify HACCC 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. HACCC Policy The request to add a family member must be submitted in writing and approved prior to the person moving into the unit. HACCC will determine eligibility of the new member in accordance with the policies in Chapter 3. • The family must promptly notify HACCC in writing if any family member no longer lives in the unit within thirty (30) calendar days. • Members of the household may engage in legal profit-making activities in the unit if in compliance with the unit lease, but only if such activities are incidental to primary use of the unit for residence by members of the family. • If HACCC has given approval, a foster child or a live-in aide may reside in the unit. HACCC 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. HACCC 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 HACCC to verify that the family is living in the unit or information related to family absence from the unit. • The family must not owe rent and/or other monies to the Housing Authority or to another • Housing Authority in connection with HCV or Public Housing Assistance. • The family must promptly notify HACCC when the family is absent from the unit. HACCC 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 148 5-9 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 30 calendar days. Written notice must be provided to HACCC 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 HACCC 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] 149 5-10 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART II: SUBSIDY STANDARDS AND VOUCHER ISSUANCE 5-II.A. OVERVIEW HACCC 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. HACCC must also establish policies related to the issuance of the voucher, to the voucher term, and to any extensions of the voucher term. 5-II.B. DETERMINING FAMILY UNIT (VOUCHER) SIZE [24 CFR 982.402] For each family, HACCC determines the appropriate number of bedrooms under HACCC 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 HACCC 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. Unborn children of pregnant women will be included in determining the family voucher size. • Any live-in aide (approved by HACCC 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. Live-in attendants will be provided a separate bedroom. No additional bedrooms will be provided for the attendant's family. • Children who are being adopted, or whose custody is being obtained, may be considered in assigning subsidy size. However, there must be a reasonable assurance that the child or children will join the family within 6-months and the family must provide proof that the child or children joined the family. In cases where a family was given a larger subsidy size, but the child or children do not join the family, then the family’s subsidy size will be reduced with a 150 5-11 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • 30-day notice from HACCC. • Foster children will be included in determining unit size. • 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 HACCC subsidy standards. HACCC Policy When determining the Voucher Bedroom Size, HACCC will assign one bedroom to the Head of Household and, if present, their spouse or companion. One additional bedroom will be assigned for every two other persons in the household. The living room is considered an additional sleeping room but is not used to determine the voucher size for the family. The Living Room is considered an additional sleeping room when determining whether an additional adult can be added to the household. Foster children in the household will be included in determining unit size. Single person families will be allocated one bedroom (as opposed to a studio). See section 11.II.B below. HACCC will reference the following chart in determining the appropriate voucher size for a family: Voucher Size Persons in Household (Minimum – Maximum) 1 Bedroom 1 - 4 2 Bedrooms 2 - 6 3 Bedrooms 3 - 8 4 Bedrooms 4 - 10 5 Bedrooms 6 - 12 5-II.C. EXCEPTIONS TO SUBSIDY STANDARDS HACCC Policy HACCC 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. • Live-in attendants will be provided a separate bedroom. No additional bedrooms will be provided for the attendant's family. 151 5-12 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • A family member who is temporarily away from the home to attend school or a training program is considered a member of the family in determining the family unit size. • Children who are being adopted, or whose custody is being obtained, may be considered in assigning subsidy size. However, there must be a reasonable assurance that the child or children will join the family within 6-months and the family must provide proof that the child or children joined the family. In cases where a family was given a larger subsidy size but the child or children do not join the family, the family's subsidy size will be reduced with a 30-day notice from HACCC. Additional exceptions will be granted on a case-by-case basis if it is determined 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 when the size, amount, or nature of the equipment and the lack of available space in the family's current unit indicates that an extra room is required. HACCC may conduct a special inspection to verify the reasonableness of the request. • A need for a separate bedroom for any other reason 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 subsidy [24 CFR 982.402(b)(8)]. 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 (e.g., doctor or health professional), unless the disability and the disability–related request need for accommodation is readily apparent or otherwise known. The family’s continued need for an additional bedroom due to special medical equipment may be required to be re-verified annually at the annual reexamination depending on whether the verification designates the duration of medical need as permanent or temporary. HACCC will notify the family of its determination within 15 calendar days of receiving the family’s request or within 15 calendar days after receipt of verification by a knowledgeable professional source if the request is based on health-related reasons. If a participant family’s request is denied, the notice will inform the family of their right to request an informal hearing. 5-II.D. VOUCHER ISSUANCE [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, HACCC 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. 152 5-13 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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 HACCC has determined the family to be eligible for the program, and that HACCC expects to have money available to subsidize the family if the family finds an approvable unit. However, HACCC 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 HACCC’s housing choice voucher program [Voucher, form HUD-52646] A voucher can be issued to an applicant family only after HACCC has determined that the family is eligible for the program based on verification of 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]. HACCC Policy Vouchers will be issued to eligible applicants immediately following the mandatory briefing. HACCC 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, HACCC must wait until it has adequate funds before it calls another family from the list [HCV GB p. 8-10]. HACCC Policy Prior to issuing any vouchers, HACCC will determine whether it has sufficient funding in accordance with the policies in Part VIII of Chapter 16. If HACCC determines that there is insufficient funding after a voucher has been issued, HACCC may rescind the voucher and place the affected family back on the waiting list. 5-II.E. VOUCHER TERM AND EXTENSIONS Voucher Term [24 CFR 982.303][24 CFR 982.303(a)]. HACCC Policy For all new Housing Choice Voucher Program participants, the initial voucher term will be 90 calendar days. For families wishing to transfer to another unit or who have a change in household size, the voucher term will be 120 calendar days. For families exercising their right of Portability, the Voucher term will be the lesser of the remaining full term of the search period or 120 calendar days. This date may vary based on when the last/current tenancy was terminated. The family must submit a Request for Tenancy Approval and proposed lease within the voucher period unless HACCC grants an extension. 153 5-14 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Extensions of Voucher Term [24 CFR 982.303(b)] HACCC 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 HACCC can approve. Discretionary policies related to extension and expiration of search time must be described in HACCC’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. The family must be notified in writing of HACCC’s decision to approve or deny an extension. HACCC’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)]. HACCC Policy HACCC will approve extensions to the voucher term only in the following circumstances: • If an applicant or participant needs and requests an extension of the voucher term as a reasonable accommodation to make the program accessible to and usable by a family member with disabilities, HACCC will extend the voucher term up to the term reasonably required for that purpose. • If HACCC determines that an applicant or participant needs additional search time beyond the initial term due to reasons beyond the family’s control, as determined by HACCC. Following is a list of extenuating circumstances that HACCC 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 HACCC - Whether family size or other special circumstances make it difficult to find a suitable unit Any request for an additional extension must include the reason(s) an additional extension is necessary. HACCC may require the family to provide documentation to support the request or obtain verification from a qualified third party. 154 5-15 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If HACCC determines that the rental market in its jurisdiction is prohibiting voucher holders from finding units, HACCC may decide to allow extensions beyond the 120-day period. The decision to allow additional extensions beyond 120 days must be approved by the Director or Assisted Housing Programs. The family must demonstrate that its due diligence in trying to locate a unit was met by providing HACCC a listing of all units looked at and all contacts with landlords made. HACCC must also be able to document that the market has higher rents than voucher holders can afford or there are a shortage of rental units available. All requests for extensions to the voucher term must be made in writing and submitted to HACCC prior to the expiration date of the voucher (or extended term of the voucher). HACCC will decide whether to approve or deny an extension request within 14 calendar days of the date the request is received, and will immediately provide the family written notice of its decision. HACCC’s decision to deny a request for an extension of the voucher term is not subject to an informal review [24 CFR 982.554(C)(4)]. The Authority may require additional conditions as part of any extension, such as weekly reporting or insisting that voucher holders receiving an extension work closely with HACCC staff in their search. Suspensions of Voucher Term [24 CFR 982.303(c)] The PHA must provide for suspension of the initial or any extended term of the voucher (Tolling) from the date the family submits a request for PHA approval of the tenancy until the date the PHA notifies the family in writing whether the request has been approved or denied Expiration of Voucher Term Once an applicant 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 is currently an applicant to the program and still wishes to receive assistance, HACCC may require that the family reapply the next time the waiting list is open 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]. HACCC Policy Expiration of Applicant Vouchers: If an applicant family’s voucher term or extension expires before the family has submitted a Request for Tenancy Approval (RTA), HACCC will require the family to reapply for assistance the next time the waiting list is open. If an RTA that was submitted prior to the expiration date of the voucher is subsequently disapproved by HACCC (after the voucher term has expired), the family’s voucher will 155 5-16 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 be "tolled" and the number of processing days shall be added to the voucher. The tenant shall be given another RTA to search for another unit for only the days remaining on the voucher after it is tolled. This is not an extension but merely holding the tenant harmless from any processing time. Within 14 calendar days after the expiration of the voucher term or any extension, HACCC 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. Expiration of Participant Vouchers; If a participating family’s voucher term or extension expires before the family has submitted a Request for Tenancy Approval (RTA) the family may remain in its current unit with continued voucher assistance if the owner agrees and the PHA approves. If the family has moved out of the unit and the voucher term or extension expires before the family has submitted an RTA then the family will lose its assistance and will be required to reapply for assistance the next time the waiting list is open. If an RTA that was submitted prior to the expiration date of the voucher is subsequently disapproved by HACCC (after the voucher term has expired), the family’s voucher will be "tolled" and the number of processing days shall be added to the voucher. The tenant shall be given another RTA to search for another unit for only the days remaining on the voucher after it is tolled. This is not an extension but merely holding the tenant harmless from any processing time. Within 14 calendar days after the expiration of the voucher term or any extension, HACCC will notify the family in writing that the voucher term has expired and if the family is not currently living in an HCV assisted unit, that the family must reapply when the wait list is open in order to be placed on the waiting list. 156 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-1 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 HACCC’s subsidy. HACCC 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 which areto include and excluded from the family’s annual income. to arrive at a family’s annual income. These requirements and PHA policies for calculating annual income are found in Part I. Part II: Assets. HUD regulations specify the types of assets which are excluded from a family’s annual income. These requirements and PHA policies for calculating income from assets are found in Part II.Adjusted Income. Once annual income has been established HUD regulations require HACCC 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: 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 and allow the PHA to adopt additional permissive deductions. These requirements and PHA policies for calculating adjusted income are found in Part III. Part IVII: 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. 157 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-2 PART I: ANNUAL INCOME 6-I.A. OVERVIEW [24 CFR 5.609] Annual income includes: x All amounts, not specifically excluded in 24 CFR 5.609(b); x All amounts received from all sources by each member of the family who is 18 years of age or older or is the head of household or spouse; x Unearned income by or on behalf of each dependent who is under 18 years of age; and x Imputed returns of an asset based on the current passbook savings rate, as determined by HUD, when the value of net family assets exceeds $50,000 (which amount HUD will adjust annually) and the actual returns from a given asset cannot be calculated. 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, the regulations at 24 CFR 5.609(b) provide a comprehensive listing of all sources of income that are excluded from annual income. Note, unlike in previous versions of the regulations, the current regulations governing annual income do not list sources of income that are to be included. Instead, HUD relies on the definition of excluded income under 24 CFR 5.609(b) to provide the scope of what is included. To that end, generally, all income is included unless it is specifically excluded by regulation. Annual income includes “all amounts received,” not the amount that a family may be legally entitled to receive but did not receive. For example, a family’s child support or alimony income must be based on payments received, not the amounts to which the family is entitled by court or agency orders [Notice PIH 2023-27]. Annual income also includes all actual anticipated income from assets (provided the income is not otherwise excluded) even if the asset itself is excluded from net family assets [Notice PIH 2023- 27]. 24 CFR 5.603(b)(1) describes 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: 158 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-3 • Annual Income Inclusions Full Definitions (Exhibit 6-1) • • Annual Income Exclusions (Exhibit 6-2) • Treatment of Family Assets (Exhibit 6-23) • Earned Income Disallowance for Persons with Disabilities (Exhibit 6-4) • The Effect of Welfare Benefit Reduction (Exhibit 6-5) Sections 6-I.B 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. 6-I.B. HOUSEHOLD COMPOSITION AND INCOME Overview 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. in accordance with HUD regulations and PHA policies in Chapter 11. 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 (both earned and unearned) is excluded [24 CFR 5.609(bc)(85)]. Foster child or foster adult Income from all sources (both earned and unearned) is excluded [24 CFR 5.609(cb)(82)]. Head, spouse, or cohead All sources of income not specifically excluded by the regulations are included. [24 CFR 5.609(a)]. Other adult family members Children under 18 years of ageMinors Earned Employment income of children under 18 years of age is excluded [24 CFR 5.609(bc)(31)]. All other sources of unearned income, except those specifically excluded by the regulations, are included [24 CFR 5.609(a)]. 159 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-4 Full-time students 18 years of EarnedEmployment income above $480/yearin excess of the dependent deduction is excluded [24 CFR 5.609(cb)(1411)]. All other sources of unearned income, except those specifically excluded by the regulations are included age or older (not head, spouse, or cohead) Temporarily Absent Family Members The current regulations governing annual income do not specifically address temporarily absent family members. The regulations also do not define “temporarily” or “permanently” absent or specify a timeframe associated with a temporary versus a permanent absence.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]. HACCC Policy Unless specifically excluded by the regulations, the income of all family members approved to live in the unit will be counted, even if the family member is temporarily absent from the unit. AGenerally, 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. 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 HACCC 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 HACCC 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 (as confirmed by the state child welfare agency) are considered members of the family [24 CFR 5.403]. HACCC Policy If a child has been placed in foster care, HACCC will verify with the appropriate agency whether and when the child is expected to be returned to the home. Unless the agency 160 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-5 confirms that the child has been permanently removed from the home, the child will continue to be counted as a family member. Absent Head, Spouse, or Cohead HACCC Policy An employed head of household, spouse, or cohead absent from the unit more than 180 consecutive days due to employment will continue to be considered a family member. The employment assignment must be of a temporary nature such as military service or a construction assignment out of the area. Per HUD regulations, if the head of household is the only member of the family, then the head may not be absent more than 180 days without the HAP contract terminating. 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]. HACCC Policy HACCC will require the family to obtain verification from a responsible professional at the facility or a medical professional involved in the family member’s care and will use this determination of permanent or temporary residency in the facility. If a determination cannot be made with respect to permanent residency in the facility, the person generally will be considered temporarily absent. HACCC will require the family to obtain monthly status from the facility or medical professional every 30 days until a final determination regarding permanent residency is made. The family may present evidence that the family member is a permanent resident at the facility 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. Joint Custody of Dependents HACCC 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 51 percent or more of the time (183 cumulative days during the calendar year). When more than one applicant or participant family is claiming the same dependent(s) as family members, the family with primary custody at the time of the initial examination or 161 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-6 reexamination will be able to claim the dependent(s). If there is a dispute about which family should claim them, HACCC will make the determination based on available documents such as court orders, school records, or an IRS return showing which family has claimed the child for income tax purposes. Caretakers for a Child HACCC Policy The approval of a caretaker is at the owner and PHA’s discretion and subject to the owner and PHA’s screening criteria. If neither a parent nor a designated guardian remains in a household receiving HCV assistance, HACCC 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 HACCC 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. (5) All caretakers will be subject to the Authority’s non-income background checks. HACCC will not approve a particular person as a caretaker, and may withdraw such approval if: • 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 HACCC or to another Housing Authority in connection with Section 8 or public housing assistance under the 1937 Act. 162 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-7 (6) In the event of a family breakup, HACCC may use its discretion to determine which family members will continue to receive assistance according to Chapter 3.I.C. [24 CFR 982.315] 6-I.C. ANTICIPATING CALCULATING ANNUAL INCOME The methodology used for calculating income differs depending on whether income is being calculated at initial occupancy, interim reexamination, or at annual reexamination. However, income from assets is always anticipated regardless of certification type. Anticipating Annual Income [24 CFR 5.609(c)(1)] At initial occupancy and for an interim reexamination of family income, the PHA is required to use anticipated income (current income) for the upcoming 12-month period following the new admission or interim reexamination effective date. Policies related to verifying income are found in Chapter 7HACCC 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 HACCC generally will use current circumstances to determine anticipated income for the coming 12-month period. HUD authorizes HACCC 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)] HACCC believes that past income is the best available indicator of expected future income [24 CFR 5.609(d)] PHAs are required to use HUD’s Enterprise Income Verification (EIV) system in its entirety as a third-party source to verify employment and income information, and to reduce administrative subsidy payment errors in accordance with HUD administrative guidance [24 CFR 5.233(a)(2)]. HUD allows PHAs to use tenant-provided documents (pay stubs) to project income once EIV data has been received in such cases where the family does not dispute the EIV employer data and where HACCC does not determine it is necessary to obtain additional third- party data. HACCC Policy When EIV is obtained and the family does not dispute the EIV employer data, HACCC will use current tenant-provided documents to project annual income. When the tenant- provided 163 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-8 documents are pay stubs, HACCC will make every effort to obtain a minimum of two current and consecutive pay stubs dated within the last 60 days. When the PHA cannot readily anticipate income based upon current circumstances (e.g., in the case of temporary, sporadic, or variable employment, 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. Any time 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. In all cases, the family file will be documented with a clear record of the reason for the decision, and a clear audit trail will be left as to how HACCC annualized projected income. If additional pay stubs are submitted, HACCC will utilize up to four consecutive paystubs provided to calculate anticipated income for the next annual recertification. Where a participant or applicant has recently commenced employment, HACCC will utilize however many pay stubs have been received to date and attempt to supplement them with written verification from the employer. Where an employer fails to respond to a request for verification of wages, HACCC shall utilize The Work Number to verify wages. The Work Number shall only be utilized when there is a lack of pay stubs and/or employment verification available to HACCC. HACCC will obtain written and/or oral third-party verification in accordance with the verification requirements and policy in Chapter 7 in the following cases: - If EIV or other UIV data is not available, - If the family disputes the accuracy of the EIV employer data, and/or - If HACCC determines additional information is needed. In such cases, HACCC will review and analyze current data to anticipate annual income. In all cases, the family file will be documented with a clear record of the reason for the decision, and a clear audit trail will be left as to how HACCC annualized projected income. When HACCC cannot readily anticipate income based upon current circumstances (e.g., in the case of seasonal employment, unstable working hours, or suspected fraud), HACCC 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. Any time 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 164 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-9 information and documentation to HACCC to show why the historic pattern does not represent the family’s anticipated income. Known Changes in Income If HACCC verifies an upcoming increase or decrease in income, annual income will be calculated projected 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 $8/hour will begin to receive $8.25/hour in the eighth week after the effective date of the new admission or interim reexamination. In such a case HACCC would calculate annual income as follows: ($8/hour × 40 hours × 7 weeks) + ($8.25 × 40 hours × 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 HACCC will calculate annual income using current circumstances and then should the change in income require HACCC to conduct an interim reexamination, conduct an interim reexamination in accordance with PHA policy in Chapter 11.require an interim reexamination when the change actually occurs. This requirement will be imposed even if HACCC’s policy on reexaminations does not require interim reexaminations for other types of changes. When tenant-provided third-party documents are used to anticipate annual income, they will be dated within the last 60 days of the reexamination interview date. Calculating Annual Income at Annual Reexamination [24 CFR.609(c)(2); Notice PIH 2023-27] At annual reexamination, PHAs must first determine the family’s income for the previous 12- month period and use this amount as the family income for annual reexaminations; however, adjustments to reflect current income must be made. Any change of income since the family’s last annual reexamination, including those that did not meet the threshold to process an interim reexamination of family income in accordance with PHA policies in Chapter 11 and HUD regulations, must be considered. If, however, there have been no changes to income, then the amount of income calculated for the previous 12-month period is the amount that will be used to determine the family’s rental assistance. Income from assets is always anticipated, irrespective of the income examination type. Policies related to conducting annual reexaminations are located in Chapter 11. Projecting Income In HUD’s EIV webcast of January 2008, HUD made clear that PHAs are not to use EIV quarterly wages to project annual income. 6-I.D. EARNED INCOME 165 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-10 Types of Earned Income Included in Annual Income Wages and Related Compensation [24 CFR 5.609(a); Notice PIH 2023-27] The earned income of each member of the family who is 18 years of age or older, or who is the head of household or spouse/cohead regardless of age, is included in annual income. Income received as a day laborer or seasonal worker is also included in annual income, even if the source, date, or amount of the income varies [24 CFR 5.609 (b)(24)]. Earned income means income or earnings from wages, tips, salaries, other employee compensation, and net income from self-employment. Earned income does not include any pension or annuity, transfer payments (meaning payments made or income received in which no goods or services are being paid for, such as welfare, social security, and governmental subsidies for certain benefits), or any cash or in-kind benefits [24 CFR 5.100]. A day laborer is defined as an individual hired and paid one day at a time without an agreement that the individual will be hired or work again in the future [24 CFR 5.603(b)]. A seasonal worker is defined as an individual who is hired into a short-term position( e.g., for which the customary employment period for the position is six months or fewer) and the employment begins about the same time each year (such as summer or winter). Typically, the individual is hired to address seasonal demands that arise for the particular employer or industry [24 CFR 5.603(b)]. Some examples of seasonal work include employment limited to holidays or agricultural seasons. Seasonal work may include but is not limited to employment as a lifeguard, ballpark vendor, or snowplow driver [Notice PIH 2023-27]. 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)]. HACCC Policy The PHA will include in annual income the full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation. For persons who regularly receive bonuses or commissions, HACCC will verify, and then average amounts received for the two years preceding admission or reexamination. If only a one-year history is available, HACCC will use the prior year amounts. In either case the family may provide, and HACCC 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, HACCC will count only the amount estimated by the employer. The file will be documented appropriately. Some Types of Military Pay All regular pay, special pay and allowances of a member of the Armed Forces are counted [24 166 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-11 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(bc)(117)]. 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. Sporadic income includes temporary payments from the U.S. Census Bureau for employment lasting no longer than 180 days [Notice PIH 2009-19]. HACCC 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 of a Minor [24 CFR 5.609(b)(3)] A minor is a member of the family, other than the head of household or spouse, who is under 18 years of age. Employment income earned by minorschildren (including foster children) under the age of 18 years is not included in annual income. All other sources of unearned income, except those specifically excluded by the regulations, are included. [24 CFR 5.609(c)(1)]. (See Eligibility chapter for a definition of foster children.) Certain Earned Income of Full-Time Students [24 CFR 5.609(b)(14)] The earned income of a dependent full-time student in excess of the amount of the dependent deduction is excluded from annual income. All sources of unearned income, except those specifically excluded by the regulations, are included. A family member other than the head of household or spouse/cohead is considered a full-time student if they are attending school or vocational training on a full-time basis [24 CFR 5.603(b)]. 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]. 167 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-12 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.) 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) • 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(f)) • 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 168 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-13 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 HACCC 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 HACCC’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)]. 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)]. HACCC Policy HACCC 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]. HACCC 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 169 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-14 earnings of the family member after enrollment in the program [expired Notice PIH 98-2, pp. 3–4]. In calculating the incremental difference, HACCC 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 HACCC's interim reporting requirements. 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 170 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-15 modernization, Community Development Block Grant (CDBG), HOME program, and other grant funds received from HUD. HACCC 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. 6-I.E. EARNED INCOME DISALLOWANCE FOR PERSONS WITH DISABILITIES [24 CFR 5.617; Streamlining Final Rule (SFR) Federal Register 3/8/16; ʹͲʹ͵ǦʹȐȐ HOTMA removed the statutory authority for the EID. The EID is available only to families that are eligible for and participating on the program as of December 31, 2023, or before; no new families may be added on or after January 1, 2024. If a family is receiving the EID prior to or on the effective date of December 31, 2023, they are entitled to the full amount of the benefit for a full 24-month period. The policies below are applicable only to such families. No family will still be receiving the EID after December 31, 2025. The EID will sunset on January 1, 2026, and 171 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-16 the PHA policies below will no longer be applicable as of that date or when the last qualifying family exhausts their exclusion period, whichever is sooner. The earned income disallowance (EID) encouraged people with disabilities to enter the work force by not including the full value of increases in earned income for a period of time. Section 102 of the HOTMA Final Rule eliminates the EID and permits current households receiving EID to continue to do so for up to 2 years from the Final Rule affective date of January 1, 2024. As of January 1, 2026, no families may continue to receive an Earned Income disallowance. For households continuing to receive EID, the guidance below remains in place until December 31, 2025. 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. 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 their “baseline income.” The family member’s baseline income is their income immediately prior to qualifying for the EID. The family 172 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-17 member’s baseline income remains constant throughout the period that they are participating in the EID. While qualification for the disallowance is the same for all families, calculation of the disallowance will differ depending on when the family member qualified for the EID. Participants qualifying prior to May 9, 2016, will have the disallowance calculated under the “Original Calculation Method” described below which requires a maximum lifetime disallowance period of up to 48 consecutive months. Participants qualifying on or after May 9, 2016, will be subject to the “Revised Calculation Method” Which shortens the lifetime disallowance period to 24 consecutive months. Under both the original and new methods, the EID eligibility criteria, the benefit amount, the single lifetime eligibility requirement and the ability of the applicable family member to stop and restart employment during the eligibility period are the same. Original Calculation Method Initial 12-Month Exclusion During the initial exclusion period of 12-month exclusion periodconsecutive months, 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. HACCC 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 exclusion period of 12-consecutive months exclusion period,, the exclusion is reduced to at least half (50 percent) of any increase in income attributable to employment or increased earnings. The 12 months are cumulative and need not be consecutive. HACCC Policy During the second 12-month exclusion period, HACCC will exclude 100 percent of any increase in income attributable to new employment or increased earnings. Lifetime Limitation The EID has a two-year (24-month) lifetime maximum. The two-year eligibility period begins at the same time that the initial exclusion period begins and ends 24 months later. During the 24- 173 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-18 month period, an individual remains eligible for EID even if they begin to receive assistance from a different housing agency, move between public housing and Section 8 assistance, or have breaks in assistance. The EID will sunset on January 1, 2026. In no circumstances will a family member’s exclusion period continue past January 1, 2026. 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. HACCC Policy During the 48-month eligibility period, HACCC 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 their prequalifying income, when one of the exclusion periods ends, and at the end of the lifetime maximum eligibility period). Revised Calculation Method Initial 12-Month Exclusion During the initial exclusion period of 12 consecutive months, the full amount (100 percent) of any increase in income attributable to new employment or increased earnings is excluded. HACCC 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 During the second exclusion period of 12 consecutive months, the PHA must exclude at least 50 percent of any increase in income attributable to employment or increased earnings. HACCC Policy During the second 12-month exclusion period, the PHA will exclude 50 percent of any increase in income attributable to new employment or increased earnings. Lifetime Limitation The EID has a two-year (24-month) lifetime maximum. The two-year eligibility period begins at the same time that the initial exclusion period begins and ends 24 months later. During the 24- month period, an individual remains eligible for EID even if they begin to receive assistance from 174 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-19 a different housing agency, move between public housing and Section 8 assistance, or have breaks in assistance. 6-I.F. BUSINESS AND SELF-EMPLOYMENT INCOME [24 CFR 5.609(b)(28); Notice PIH 2023-27] Annual income includes “the net income from the operation of a business or profession. Net income is gross income minus business expenses that allows the business to operate. Gross income is all income amounts received into the business, prior to the deduction of business expenses. 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)]. Independent Contractors Income received as an independent contractor is included in annual income, even if the source, date, or amount of the income varies [24 CFR 5.609 (b)(24)]. An independent contractor is defined as an individual who qualifies as an independent contractor instead of an employee in accordance with the Internal Revenue Code Federal income tax requirements and whose earnings are consequently subject to the Self-Employment Tax. In general, an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done [24 CFR 5.603(b)]. Business Expenses Net income is “gross income less business expense” [HCV GB, p. 5-19]. HACCC Policy To determine business expenses that may be deducted from gross income, HACCC 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 HACCC to deduct from gross income expenses for business expansion. HACCC Policy 175 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-20 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 Capital Indebtedness HUD regulations do not permit HACCC to deduct from gross income the amortization of capital indebtedness. HACCC Policy Capital indebtedness is defined as the principal portion of the payment on a capital asset such as land, buildings, and machinery. This means HACCC will allow as a business expense interest, but not principal, paid on capital indebtedness. 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 HACCC 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. HACCC 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, HACCC 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 HACCC 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. Assets Owned by a Business Entity 176 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-21 If a business entity (e.g., limited liability company or limited partnership) owns the asset, then the family’s asset is their ownership stake in the business, not some portion of the business’s assets. However, if the family holds the assets in their own name (e.g., they own one-third of a restaurant) rather than in the name of a business entity, then the percentage value of the asset owned by the family is what is counted toward net family assets (e.g., one-third of the value of the restaurant) [Notice PIH 2023-27]. 6-I.G. STUDENT FINANCIAL ASSISTANCE [FR Notice 2/14/23 and Notice PIH 2023-27] Introduction Section 479B of the HEA requires that all assistance under Title IV of the HEA and Bureau of Indian Affairs student financial assistance, even assistance provided to students in excess of tuition and required fees or charges, be excluded from HUD income calculations. For Section 8 programs only, however, for over 10 years through FY 2022, HUD appropriations have included a provision that for certain students receiving Section 8 assistance, any amounts received in excess of tuition and any other required fees and charges are considered income (with the exception of students who lived with their parents or who were over the age of 23 with a dependent child). While the language in various consolidated appropriations acts is limited to federal fiscal year covered by the act, this does not rule out the possibility that similar language will be included in future years’ appropriations bills. x For any funds from a year where HUD’s appropriations acts include this limitation, it will apply with respect to Section 8 participants. The PHA will follow the pre-HOTMA Section 8 student financial assistance limitation described below. x During years in which an appropriations act does not contain this Section 8 student financial assistance limitation (or any other such limitation), then the determination of student financial assistance as included/excluded income for all Section 8 students defaults to the methodology described for the public housing program and listed below. Pre-HOTMA Section 8 Student Financial Assistance Limitation [FR 4/10/06; Notice PIH 2015-21] In 2005, Congress passed a law (for Section 8 programs only) requiring that certain student financial assistance be included in annual income. Prior to that, the full amount of student financial assistance was excluded. For some students, the full exclusion still applies. The regulation requiring the inclusion of certain student financial assistance applies only to students who satisfy all of the following conditions: x They are enrolled in an institution of higher education, as defined under the Higher Education Act (HEA) of 1965. 177 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-22 x They are seeking or receiving Section 8 assistance on their own—that is, apart from their parents—through the HCV program, the project-based voucher program, or the moderate rehabilitation program. x They are under 24 years of age OR they have no dependent children. For students who satisfy these three conditions, any financial assistance in excess of tuition and any other required fees and charges received: (1) under the 1965 HEA, (2) from a private source, or (3) from an institution of higher education, as defined under the 1965 HEA, must be included in annual income. To determine annual income in accordance with the above requirements, the PHA will use the definitions of dependent child, institution of higher education, and parents in Chapter 3, along with the following definitions [FR 4/10/06, pp. 18148-18150]: x Assistance under the Higher Education Act of 1965 includes Pell Grants, Federal Supplement Educational Opportunity Grants, Academic Achievement Incentive Scholarships, State Assistance under the Leveraging Educational Assistance Partnership Program, the Robert G. Byrd Honors Scholarship Program, and Federal Work Study programs. x Assistance from private sources means assistance from nongovernmental sources, including parents, guardians, and other persons not residing with the student in an HCV assisted unit. x Tuition and fees are defined in the same manner in which the Department of Education defines tuition and fees [Notice PIH 2015-21]. - This is the amount of tuition and required fees covering a full academic year most frequently charged to students. - The amount represents what a typical student would be charged and may not be the same for all students at an institution. - If tuition is charged on a per-credit-hour basis, the average full-time credit hour load for an academic year is used to estimate average tuition. - Required fees include all fixed-sum charges that are required of a large proportion of all students. Examples include, but are not limited to, writing and science lab fees and fees specific to the student’s major or program (i.e., nursing program). - Expenses related to attending an institution of higher education must not be included as tuition. Examples include, but are not limited to, room and board, books, supplies, meal plans, transportation and parking, student health insurance plans, and other non-fixed- sum charges. Any student financial assistance not subject to inclusion under the regulations is fully excluded from annual income, whether it is paid directly to the student or to the educational institution the student is attending. This includes any financial assistance received by: x Students residing with parents who are seeking or receiving Section 8 assistance x Students who are enrolled in an educational institution that does not meet the 1965 HEA definition of institution of higher education 178 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-23 x Students who are over 23 AND have at least one dependent child, as defined in section 3-II.E x Students who are receiving financial assistance through a governmental program not authorized under the 1965 HEA. HOTMA Student Financial Assistance Requirements [24 CFR 5.609(b)(9)] The regulations under HOTMA distinguish between two categories of student financial assistance paid to both full-time and part-time students. Types of Assistance Any assistance to students under section 479B of the Higher Education Act of 1965 (Title IV of the HEA) must be excluded from the family’s annual income [24 CFR 5.609(b)(9)(i)]. Examples of assistance under title IV of the HEA include: x Federal Pell Grants; x Teach Grants; x Federal Work Study Programs; x Federal Perkins Loans; x Income earned in employment and training programs under section 134 of the Workforce Innovation and Opportunity Act (WIOA); or x Bureau of Indian Affairs/Education student assistance programs - The Higher Education Tribal Grant - The Tribally Controlled Colleges or Universities Grant Program Any other grant-in-aid, scholarship, or other assistance amounts an individual receives for the actual covered costs charged by the institute of higher education not otherwise excluded by the Federally mandated income exclusions are excluded [24 CFR 5.609(b)(9)(ii)]. Actual covered costs are defined as the actual costs of: x Tuition, books, and supplies; - Including supplies and equipment to support students with learning disabilities or other disabilities; x Room and board; and x Other fees required and charged to a student by the education institution. For a student who is not the head of household or spouse/cohead, actual covered costs also include the reasonable and actual costs of housing while attending the institution of higher education and not residing in an assisted unit. Further, to qualify, other student financial assistance must be expressly: x For tuition, book, supplies, room and board, or other fees required and charged to the student by the educational institution; 179 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-24 x To assist a student with the costs of higher education; or x To assist a student who is not the head of household or spouse with the reasonable and actual costs of housing while attending the educational institution and not residing in an assisted unit. The student financial assistance may be paid directly to the student or to the educational institution on the student’s behalf. However, any student financial assistance paid to the student must be verified by the PHA. The financial assistance must be a grant or scholarship received from: x The Federal government; x A state, tribal, or local government ; x A private foundation registered as a nonprofit; x A business entity (such as corporation, general partnership, limited liability company, limited partnership, joint venture, business trust, public benefit corporation, or nonprofit entity); or x An institution of higher education. Student financial assistance, does not include: x Financial support provided to the student in the form of a fee for services performed; (e.g., a work study or teaching fellowship that is not excluded under section 479B of the Higher Education Act HEA); x Gifts, including gifts from family or friends; or x Any amount of the scholarship or grant that, either by itself or in combination with assistance excluded under the HEA, exceeds the actual covered costs of the student. Calculating Income from Student Financial Assistance [HOTMA Student Financial Assistance Resource Sheet; Notice PIH 2023-27] The formula for calculating the amount of other student financial assistance that is excluded from income always begins with deducting the assistance received under 479B of the HEA from the total actual covered costs, because the 479B assistance is intended to pay the student’s actual covered costs. When a student receives assistance from both Title IV of the HEA and from other sources, the assistance received under Title IV of the HEA must be applied to the student’s actual covered costs first and then other student financial assistance is applied to any remaining actual covered costs. Once actual costs are covered, any remaining student financial assistance is considered income. HACCC Policy If a student only receives financial assistance under Title IV of the HEA and does not receive any other student financial assistance, HACCC will exclude the full amount of 180 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-25 the assistance received under Title IV from the family’s annual income. The PHA will not calculate actual covered costs in this case. If the student does not receive any assistance under Title IV of the HEA but does receive assistance from another source, HACCC will first calculate the actual covered costs to the student in accordance with 24 CFR 5.609(b)(ii). HACCC will then subtract the total amount of the student’s financial assistance from the student’s actual covered costs. HACCC will include any amount of financial assistance in excess of the student’s actual covered costs in the family’s annual income. Example 1 x Actual covered costs: $20,000 x Other student financial assistance: $25,000 x Excluded income: $20,000 ($25,000 in financial assistance - $20,000 in actual covered costs) x Included income: $5,000 When a student receives assistance from both Title IV of the HEA and from other sources, the PHA will first calculate the actual covered costs to the student in accordance with 24 CFR 5.609(b)(ii). The assistance received under Title IV of the HEA will be applied to the student’s actual covered costs first and then the other student financial assistance will be applied to any remaining actual covered costs. If the amount of assistance excluded under Title IV of the HEA equals or exceeds the actual covered costs, none of the assistance included under other student financial assistance” would be excluded from income. Example 2 x Actual covered costs: $25,000 x Title IV HEA assistance: $26,000 x Title IV HEA assistance covers the students entire actual covered costs. x Other Student Financial Assistance: $5,000 x Excluded income: The entire Title IV HEA assistance of $26,000 x Included income: All other financial assistance of $5,000 If the amount of assistance excluded under Title IV of the HEA is less than the actual covered costs, the PHA will exclude the amount of other student financial assistance up to the amount of the remaining actual covered costs. 181 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-26 Example 3 x Actual covered costs: $22,000 x Title IV HEA assistance: $15,000 x The remaining amount not covered by Title IV HEA assistance is $7,000 ($22,000 in actual covered costs - $15,000 in Title IV HEA assistance). x Other Student Financial Assistance: $5,000 x $7,000 in remaining actual covered costs - $5,000 in other financial assistance x Excluded income: $15,000 entire amount of the Title IV HEA Assistance + $5,000 in other financial assistance x Included income: $0 Example 4 x Actual covered costs: $18,000 x Title IV HEA Assistance: $15,000 x The remaining amount not covered by Title IV HEA assistance is $3,000 ($18,000 in actual covered costs - $15,000 in Title IV HEA Assistance) x Other student Financial Assistance: $5,000 x When other student financial assistance is applied, financial assistance exceeds actual covered costs by $2,000 ($3,000 in actual covered costs - $5,000 in other financial assistance). x Included income: $2,000 (the amount by which the financial aid exceeds the student's actual covered costs). 6-I.G. ASSETS [24 CFR 5.609(b)(3); 24 CFR 5.603(b)] Overview Net family assets that exceed $100,000 shall result in termination of the family’s participation in the HCV program. In addition, HUD requires that HACCC include in annual income the anticipated “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, HACCC 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 182 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-27 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. Optional policies for family self-certification of assets are found in Chapter 7. General Policies Income from Assets HACCC 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 HACCC 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) HACCC 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, HACCC can take into consideration past rental income along with the prospects of obtaining a new tenant. HACCC 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 HACCC to show why the asset income determination does not represent the family’s anticipated asset income. Valuing Assets The calculation of asset income sometimes requires HACCC to make a distinction between an asset’s market value and its cash value. • The market value of an asset is its worth in the market (e.g., the amount a buyer would pay for real estate or the total value of 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. HACCC 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 183 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-28 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), Notice PIH 2012-29] When net family assets are $50,000 or less, HACCC 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 $50,000, HACCC 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 an average passbook savings rate as determined by HACCC. • Note: The HUD field office no longer provides an interest rate for imputed asset income. The “safe harbor” is now for HACCC to establish a passbook rate within 0.75 percent of a national average. • HACCC must review its passbook rate annually to ensure that it remains within 0.75 percent of the national average. HACCC Policy HACCC will initially set the imputed asset passbook rate at the national rate established by the Federal Deposit Insurance Corporation (FDIC). HACCC will review the passbook rate annually, in February of each year. The rate will not be adjusted unless the current PHA rate is no longer within 0.75 percent of the national rate. If it is no longer within 0.75 percent of the national rate, the passbook rate will be set at the current national rate. Changes to the passbook rate will take effect on April 1 following the February review. Determining Actual Anticipated Income from Assets It may or may not be necessary for HACCC 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. 184 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-29 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 investment plan is not counted as income until the family has received payments equal to the amount the family member deposited into the retirement investment plan. 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.” HACCC Policy If an asset is owned by more than one person and any family member has unrestricted access to the asset, HACCC will count the full value of the asset. A family member has unrestricted access to an asset when they 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, HACCC will prorate the asset according to the percentage of ownership. If no percentage is specified or provided for by state or local law, HACCC 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 HACCC 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 HCV Guidebook permits HACCC to set a threshold below which assets disposed of for less than fair market value will not be counted [HCV GB, p. 5-27]. HACCC Policy HACCC 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). 185 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-30 Assets placed by the family in non-revocable 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. 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. HACCC 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 HACCC 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. HACCC may verify the value of the assets disposed of if other information available to HACCC does not appear to agree with the information reported by the family. 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. HACCC Policy In determining the value of a checking account or savings account, HACCC will use the current balance. 186 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-31 In determining the anticipated income from an interest-bearing checking or savings account, HACCC 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. HACCC Policy In determining the market value of an investment account, HACCC 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), HACCC will calculate asset income based on the earnings for the most recent reporting period. 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]. HACCC Policy In determining the equity, HACCC will determine market value by examining recent sales of at least three properties in the surrounding or similar neighborhood that possess comparable factors that affect market value. HACCC will first use the payoff amount for the loan (mortgage) as the unpaid balance to calculate equity. If the payoff amount is not available, HACCC will use the basic loan balance information to deduct from the market value in the equity calculation. 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)] 187 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-32 • 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), Notice PIH 2012-3] • 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] HACCC must also deduct from the equity the reasonable costs for converting the asset to cash. Using the formula for calculating equity specified above, the net cash value of real property is the market value minus the balance of the loan (mortgage) minus the expenses to convert to cash [Notice PIH 2012-3]. HACCC Policy For the purposes of calculating expenses to convert to cash for real property, HACCC will use ten percent of the market value of the home. 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. HACCC 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 HACCC determines that the family receives no income from the property and is unable to sell or otherwise convert the asset to cash. Trusts 188 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-33 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. Non-revocable 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, HACCC 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]. 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]. 189 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-34 HACCC Policy In determining the value of personal property held as an investment, HACCC will use the family’s estimate of the value. HACCC may obtain an appraisal if appropriate to confirm the value of the asset if there is reason to believe that the family’s estimated value is off by $50 or more. 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)]. HACCC Policy Necessary personal property consists of only those items not held as an investment, and may include clothing, furniture, household furnishings, jewelry, 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 earns 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. 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. Regulations do not specify which types of periodic payments are included in annual income. Income that has a discrete end date and will not be repeated beyond the coming year is excluded from a family’s annual income because it is nonrecurring income. However, this does not include unemployment income and other types of periodic payments that are received at regular intervals (such as weekly, monthly, or yearly) for a period of greater than one year that can be extended. For example, a family receives income from a guaranteed income program in their city that has a discrete beginning and end date. While the guaranteed income will be repeated in the coming year, it will end before the family’s next annual reexamination or no more than for a 12-month period. This income is fully excluded from annual income. 190 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-35 Insurance payments and settlements for personal or property losses, including but not limited to payments under health insurance, motor vehicle insurance, and workers’ compensation, are excluded from annual income. However, periodic payments paid at regular intervals (such as weekly, monthly, or yearly) for a period of greater than one year that are received in lieu of wages for workers’ compensation are included in annual income. Payments received in lieu of wages for worker’s compensation are excluded, even if paid in periodic payments, if the income will last for a period of less than one year. HACCC Policy HACCC will include in annual income the full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts. Payments in lieu of earnings, such as unemployment and disability compensation, and severance pay are also counted as income if they are received in the form of periodic payments. Income from specific programs providing monthly income supplements to families for a period of up to 12 months as a one-time guaranteed income source, will not be counted as income and excluded from the family’s monthly rent calculation. 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 [24 CFR 5.609(b)(16)] Deferred periodic amounts from Supplemental Security Income (SSI) and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs (VA) disability benefits that are received in a lump sum amount or in prospective monthly amounts are excluded from annual income.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. Additionally, any deferred disability benefits that are received in a lump-sum or in prospective monthly amounts from the Department of Veterans Affairs are to be excluded from annual income [24 CFR 5.609(c)(14)].]. 191 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-36 HACCC Policy The PHA will include in annual income lump sums received as a result of delays in processing periodic payments (other than those specifically excluded by the regulation), such as unemployment or welfare assistance. When a delayed-start payment is received and reportedthat is to be included and the family reports this during the period in which HACCC is processing an annual reexamination, HACCC will adjust the family sharerent 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 HACCC. If the delayed-start payment is received outside of the time HACCC is processing an annual reexamination, then HACCC will consider whether the amount meets the threshold to conduct an interim reexamination. If so, HACCC will conduct an interim in accordance with HACCC’s policies in Chapter 11. If not, HACCC will consider the amount when processing the family’s next annual recertification. Retirement Accounts [24 CFR 5.609(b)(26); Notice PIH 2023-27] Income received from any account under a retirement plan recognized as such by the IRS, including individual retirement arrangements (IRAs), employer retirement plans, and retirement plans for self-employed individuals is not considered actual income from assets. However, any distribution of periodic payments from such accounts is included in annual income at the time they are received by the family. An asset moved to a retirement account held by a member of the family is not considered to be an asset disposed of for less than fair market value. Treatment of Overpayment Deductions from Social Security Benefits [Notice PIH 2018-24] The PHA is required to use the gross benefit amount to calculate annual income from Social Security benefits. Annually in October, the Social Security Administration (SSA) announces the cost-of-living adjustment (COLA) by which federal Social Security and SSI benefits are adjusted to reflect the increase, if any, in the cost of living. The federal COLA does not apply to state-paid disability benefits. Effective the day after the SSA has announced the COLA, PHAs are required to factor in the COLA when determining Social Security and SSI annual income for all annual reexaminations and interim reexaminations of family income that have not yet been completed and will be effective January 1 or later of the upcoming year [Notice PIH 2023-27]. HACCC Policy 192 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-37 Annual income includes “all amounts received,” not the amount that a family may be legally entitled to receive but which they do not receive. WThe PHA must make a special calculation of annual income when the Social Security Administration (SSA) overpays an individual, resulting in a withholding or deduction from their benefit amount until the overpayment is paid in full. The amount and duration of the withholding will vary depending on the amount of the overpayment and the percent of the benefit rate withheld. Regardless of the amount withheld or the length of the withholding period, HACCC must will use the reduced benefit amount after deducting only the amount of the overpayment withholding from the gross benefit amount [Notice PIH 2018-24]. Further, if a family’s social security income is garnished for any reason, the PHA will use the net amount after the garnishment in order to calculate the family’s income. HACCC must make a special calculation of annual income when the Social Security Administration (SSA) overpays an individual, resulting in a withholding or deduction from their benefit amount until the overpayment is paid in full. The amount and duration of the withholding will vary depending on the amount of the overpayment and the percent of the benefit rate withheld. Regardless of the amount withheld or the length of the withholding period, HACCC must use the reduced benefit amount after deducting only the amount of the overpayment withholding from the gross benefit amount [Notice PIH 2012-10]. Alimony and Child Support Annual income includes “all amounts received,” not the amount that a family may be legally entitled to receive but which they do not receive. For example, a family’s child-support or alimony income must be based on payments received, not the amounts to which the family is entitled by court or agency orders [Notice PIH 2023-27]. HACCC Policy HACCC will count all regular payments of alimony or child support awarded as part of a divorce or separation agreement. HACCC will count court-awarded amounts for alimony and child support unless the family certifies and the PHA verifies that the payments are not being made. In order to verify that payments are not being made, HACCC will review child support payments over the last three months. If payments are being made regularly, HACCC will use the amount received during the last 12 months (excluding any lump sums received). If payments have been made for a period less than 12 months, HACCC will average all payments that have been made. At new admission or interim recertification, if any lump sum payments were made in the past 12 months, HACCC will determine the likelihood of the family receiving another similar payment within the next 12 months before deciding whether or not this amount will be included in the calculation of annual income. 193 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-38 If HACCC determines and can appropriately verify that the family in all likelihood will not receive a similar payment, then the amount will not be considered when projecting annual income. If HACCC determines that it is likely that the family will receive a similar payment and can appropriately verify it, the amount will be included when projecting annual income. If no payments have been made in the past three months and there are no lump sums, HACCC will not include alimony or child support in annual income 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)]. Kinship guardianship assistance payments (Kin-GAP) and other similar guardianship payments are treated the same as foster care payments and are likewise excluded from annual income [Notice PIH 2012-1]. HACCC Policy HACCC 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 194 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-39 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.H.) [24 CFR 5.609(c)(14)]. • Lump-sums or prospective monthly amounts received as deferred disability benefits from the Department of Veterans Affairs (VA) [24 CFR 5.609(c)(14)]. 6-I.I. NONRECURRING INCOME [24 CFR 5.609(b)(24 and Notice PIH 2023-27)] Nonrecurring income, which is income that will not be repeated in beyond the coming year (e.g., 12 months following the effective date of the certification) based on information provided by the family, is excluded from annual income. The PHA may accept a self-certification from the family stating that the income will not be repeated in the coming year. See Chapter 7 for PHA policies related to verification of nonrecurring income. Income received as an independent contractor, day laborer, or seasonal worker is not excluded from income as nonrecurring income, even if the source, date, or amount of the income varies. Income that has a discrete end date and will not be repeated beyond the coming year during the family’s upcoming annual reexamination period will be excluded from a family’s annual income as nonrecurring income. This exclusion does not include unemployment income and other types of periodic payments that are received at regular intervals (such as weekly, monthly, or yearly) for a period of greater than one year that can be extended. Income amounts excluded under this category may include, but are not limited to: 195 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-40 x Nonrecurring payments made to the family or to a third party on behalf of the family to assist with utilities; x Payments for eviction prevention; x Security deposits to secure housing; x Payments for participation in research studies (depending on the duration); and x General one-time payments received by or on behalf of the family. Nonrecurring income that is excluded under the regulations includes: x Payments from the U.S. Census Bureau for employment (relating to decennial census or the American Community Survey) lasting no longer than 180 days and not culminating in permanent employment [24 CFR 5.609(b)(24)(i)]. x Direct federal or state payments intended for economic stimulus or recovery [24 CFR 5.609(b)(24)(ii)]. x Amounts directly received by the family as a result of state refundable tax credits or state or federal tax refunds at the time they are received [24 CFR 5.609(b)(24)(iii) and (iv)]. x Gifts for holidays, birthdays, or other significant life events or milestones (e.g., wedding gifts, baby showers, anniversaries) [24 CFR 5.609(b)(24)(v)]. x Non-monetary, in-kind donations, such as food, clothing, or toiletries, received from a food bank or similar organization [24 CFR 5.609(b)(24)(vi)]. When calculating annual income, PHAs are prohibited from assigning monetary value to non-monetary in-kind donations received by the family [Notice PIH 2023-27]. Non-recurring, non-monetary in-kind donations from friends and family are excluded as non-recurring income. x Lump-sum additions to net family assets, including but not limited to lottery or other contest winnings [24 CFR 5.609(b)(24)(vii)]. 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.) 6-I.J. 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 196 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-41 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] HACCC 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 6-35. 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, HACCC must include in annual income “imputed” welfare income. HACCC must request that the welfare agency provide the reason for the reduction of benefits and the amount of the reduction of benefits. The imputed welfare income is the amount that the benefits were reduced as a result of the sanction. 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 welfare 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)]. 6-I.K. STATE PAYMENTS TO ALLOW INDIVIDUALS WITH DISABILITIES TO LIVE AT HOME [24 CFR 5.609(b)(19)] 197 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-42 Payments made by or authorized by a state Medicaid agency (including through a managed care entity) or other state or federal agency to an assisted family to enable a member of the assisted family who has a disability to reside in the family’s assisted unit are excluded. Authorized payments may include payments to a member of the assisted family through state Medicaid-managed care systems, other state agencies, federal agencies or other authorized entities. The payments must be received for caregiving services a family member provides to enable another member of the assisted family who has a disability to reside in the family’s assisted unit. Payments to a family member for caregiving services for someone who is not a member of the assisted family (such as for a relative that resides elsewhere) are not excluded from income. Furthermore, if the agency is making payments for caregiving services to the family member for an assisted family member and for a person outside of the assisted family, only the payments attributable to the caregiving services for the caregiver’s assisted family member would be excluded from income. 6-I.L. CIVIL RIGHTS SETTLEMENTS [24 CFR 5.609(b)(25); FR Notice 2/14/23] Regardless of how the settlement or judgment is structured, civil rights settlements or judgments, including settlements or judgments for back pay, are excluded from annual income. This may include amounts received because of litigation or other actions, such as conciliation agreements, voluntary compliance agreements, consent orders, other forms of settlement agreements, or administrative or judicial orders under the Fair Housing Act, Title VI of the Civil Rights Act, Section 504 of the Rehabilitation Act (Section 504), the Americans with Disabilities Act, or any other civil rights or fair housing statute or requirement. While these civil rights settlement or judgment amounts are excluded from income, the settlement or judgment amounts will generally be counted toward the family’s net family assets (e.g., if the funds are deposited into the family’s savings account or a revocable trust under the control of the family or some other asset that is not excluded from the definition of net family assets). Income generated on the settlement or judgment amount after it has become a net family asset is not excluded from income. For example, if the family received a settlement or back pay and deposited the money in an interest-bearing savings account, the interest from that account would be income at the time the interest is received. Furthermore, if a civil rights settlement or judgment increases the family’s net family assets such that they exceed $50,000 (as annually adjusted by an inflationary factor), then income will be imputed on the net family assets pursuant to 24 CFR 5.609(a)(2). If the imputed income, which HUD considers unearned income, increases the family’s annual adjusted income by 10 percent or more, then an interim reexamination of income will be required unless the addition to the family’s net family assets occurs within the last three months of the family’s income certification period and the PHA or owner chooses not to conduct the examination. 198 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-43 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 HACCC must count alimony or child support amounts awarded as part of a divorce or separation agreement. HACCC Policy HACCC will count court-awarded amounts for alimony and child support unless HACCC 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 HACCC 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)]. HACCC 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 HACCC. For contributions that may vary from month to month (e.g., utility payments), HACCC will include an average amount based upon past history. 6-I.L. STUDENT FINANCIAL ASSISTANCE [24 CFR 5.609(b)(9); Notice PIH 2015-21] In 2005, Congress passed a law (for section 8 programs only) requiring that certain student financial assistance be included in annual income. Prior to that, the full amount of student financial assistance was excluded. For some students, the full exclusion still applies. 199 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-44 Student Financial Assistance Included in Annual Income [24 CFR 5.609(b)(9); FR 4/10/06; Notice PIH 2015-21] The regulation requiring the inclusion of certain student financial assistance applies only to students who satisfy all of the following conditions: • They are enrolled in an institution of higher education, as defined under the Higher Education Act (HEA) of 1965. • They are seeking or receiving Section 8 assistance on their own—that is, apart from their parents—through the HCV program, the project-based voucher program, or the moderate rehabilitation program. • They are under 24 years of age OR they have no dependent children. For students who satisfy these three conditions, any financial assistance in excess of tuition and any other required fees and charges received: (1) under the 1965 HEA, (2) from a private source, or (3) from an institution of higher education, as defined under the 1965 HEA, must be included in annual income. To determine annual income in accordance with the above requirements, HACCC will use the definitions of dependent child, institution of higher education, and parents in section 3-II.E, along with the following definitions [FR 4/10/06, pp. 18148-18150]: • Assistance under the Higher Education Act of 1965 includes Pell Grants, Federal Supplement Educational Opportunity Grants, Academic Achievement Incentive Scholarships, State Assistance under the Leveraging Educational Assistance Partnership Program, the Robert G. Byrd Honors Scholarship Program, and Federal Work Study programs. • Assistance from private sources means assistance from nongovernmental sources, including parents, guardians, and other persons not residing with the student in an HCV assisted unit. • Tuition and fees are defined in the same manner in which the Department of Education defines tuition and fees [Notice PIH 2015-21]. - This is the amount of tuition and required fees covering a full academic year most frequently charged to students. - The amount represents what a typical student would be charged and may not be the same for all students at an institution. - If tuition is charged on a per-credit-hour basis, the average full-time credit hour load for an academic year is used to estimate average tuition. 200 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-45 - Required fees include all fixed-sum charges that are required of a large proportion of all students. Examples include, but are not limited to, writing and science lab fees and fees specific to the student’s major or program (i.e., nursing program). - Expenses related to attending an institution of higher education must not be included as tuition. Examples include, but are not limited to, room and board, books, supplies, meal plans, transportation and parking, student health insurance plans, and other non-fixed- sum charges. Student Financial Assistance Excluded from Annual Income [24 CFR 5.609(c)(6)] Any student financial assistance not subject to inclusion under 24 CFR 5.609(b)(9) is fully excluded from annual income under 24 CFR 5.609(c)(6), whether it is paid directly to the student or to the educational institution the student is attending. This includes any financial assistance received by: • Students residing with parents who are seeking or receiving Section 8 assistance • Students who are enrolled in an educational institution that does not meet the 1965 HEA • definition of institution of higher education • Students who are over 23 AND have at least one dependent child, as defined in section 3-II.E • Students who are receiving financial assistance through a governmental program not authorized under the 1965 HEA. 6-I.M. ADDITIONAL EXCLUSIONS FROM ANNUAL INCOME [24 CFR 5.609(b)] Other exclusions contained in 24 CFR 5.609(bc) that have not been discussed earlier in this chapter include the following: Reimbursement of medical expenses [24 CFR 5.609(c)(4)] x Payments received for the care of foster children or foster adults or state or tribal kinship or guardianship care payments [24 CFR 5.609(b)(4)]. x Insurance payments and settlements for personal or property losses, including but not limited to payments through health insurance, motor vehicle insurance, and workers’ compensation [24 CFR 5.609(b)(5)]. However, periodic payments paid at regular intervals (such as weekly, monthly, or yearly) for a period of greater than one year that are received in lieu of wages for workers’ compensation are included in annual income [Notice PIH 2023-27]. x Amounts received by the family that are specifically for, or in reimbursement of, the cost of health and medical care expenses for any family member [24 CFR 5.609(b)(6)]. Reimbursement of medical expenses [24 CFR 5.609(c)(4)] 201 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-46 x Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a family member arising out of law, that resulted in a member of the family becoming disabled [24 CFR 5.609(b)(7)]. x Income and distributions from any Coverdell education savings account under Section 530 of the Internal Revenue Code of 1986 or any qualified tuition program under Section 529 of such Code [24 CFR 5.609(b)(10)]. x Income earned by government contributions to, and distributions from, “baby bond” accounts created, authorized, or funded by federal, state, or local government [24 CFR 5.609(b)(10)]. x The special pay to a family member serving in the Armed Forces who is exposed to hostile fire [24 CFR 5.609(b)(11)]. x Payments related to aid and attendance under 38 U.S.C. 1521 to veterans in need of regular aid and attendance [24 CFR 5.609(b)(17)]. This income exclusion applies only to veterans in need of regular aid and attendance and not to other beneficiaries of the payments, such as a surviving spouse [Notice PIH 2023-27]. x Loan proceeds (the net amount disbursed by a lender to or on behalf of a borrower, under the terms of a loan agreement) received by the family or a third party (e.g., proceeds received by the family from a private loan to enable attendance at an educational institution or to finance the purchase of a car) [24 CFR 5.609(b)(20)]. The loan borrower or co-borrower must be a member of the family for this income exclusion to be applicable [Notice PIH 2023-27]. 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)] x Payments received by tribal members as a result of claims relating to the mismanagement of assets held in trust by the United States, to the extent such payments are also excluded from gross income under the Internal Revenue Code or other federal law [24 CFR 5.609(b)(21)]. Generally, payments received by tribal members in excess of the first $2,000 of per capita shares are included in a family’s annual income for purposes of determining eligibility. However, as explained in Notice PIH 2023-27, payments made under the Cobell Settlement, and certain per capita payments under the recent Tribal Trust Settlements, must be excluded from annual income in HUD programs that adopt the definitions of annual income in 24 CFR 5.609, the Census Long Form, and the IRS Form 1040, including the programs affected by Notice PIH 2023-27. x Replacement housing “gap” payments made in accordance with 49 CFR Part 24 that offset increased out of pocket costs of displaced persons that move from one federally subsidized housing unit to another federally subsidized housing unit. Such replacement housing “gap” payments are not excluded from annual income if the increased cost of rent and utilities is subsequently reduced or eliminated, and the displaced person retains or continues to receive the replacement housing “gap” payments [24 CFR 5.609(b)(23)]. x Income earned on amounts placed in a family’s Family Self-Sufficiency account [24 CFR 5.609(b)(27)]. 202 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-47 x Amounts received by participants in other publicly assisted programs which are specifically for or in reimbursement of out-of-pocket expenses incurred e.g., special equipment, clothing, transportation, child care, etc.) and which are made solely to allow participation in a specific program [24 CFR 5.609(ci)(128)(iii)]. x 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(bc)(128)(ii)]. x Amounts received under a resident service stipend not to exceed $200 per month. A resident service stipend is a modest amount 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 [24 CFR 5.600(b)(12)(iii)]. Incremental earnings and benefits to any family member resulting from participation in qualifying training program funded by HUD or in qualifying federal, state, tribal, 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 unless those amounts are excluded under 24 CFR 5.609(b)(9)(i) [24 CFR 5.609(b)(12)(iv)]. HACCC Policy HACCC 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 of 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]. HACCC 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, HACCC 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 (see Chapter 11). • 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(bc)(130)]. 203 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-48 • Adoption assistance payments for a child in excess of $480the amount of the dependent deduction per adopted child [24 CFR 5.609(bc)(152)]. • Refunds or rebates on property taxes paid on the dwelling unit [24 CFR 5.609(bc)(2015)]. 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 that HUD is required by federal statute to exclude from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in 24 CFR 5.609(b) apply. HUD will publish a notice in the Federal Register to identify the benefits that qualify for this exclusion. Updates will be published when necessary. • 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), FR Notice 12/14/12]. HUD publishes an updated list of these exclusions periodically. The most recent list of exclusions was published in the Federal Register on May 20, 2014. 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) Benefits under Section 1780 of the School Lunch Act and Child Nutrition Act of 1966, including WIC (c) Payments to Volunteers under the Domestic Volunteer Services Act of 1973 (42 U.S.C. 5044(g), 5058) (d) Payments received under the Alaska Native Claims Settlement Act (43 U.S.C. 1626(c)) 204 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-49 (e) Income derived from certain sub-marginal land of the United States that is held in trust for certain Indian tribes (25 U.S.C. 459e) (f) Payments or allowances made under the Department of Health and Human Services’ Low- Income Home Energy Assistance Program (42 U.S.C. 8624(f)) (g) Payments received under programs funded in whole or in part under the Workforce Investment Act of 1998 (29 U.S.C. 2931) (h) Deferred disability benefits from the Department of Veterans Affairs, whether received as a lump sum or in monthly prospective amounts (i) Income derived from the disposition of funds to the Grand River Band of Ottawa Indians (Pub. L. 94-540, 90 Stat. 2503-04) (j) Payments, funds, or distributions authorized, established, or directed by the Seneca Nation Settlement Act of 1990 (25 U.S.C. 1774f(b)) (k) A lump sum or periodic payment received by an individual Indian pursuant to the Class Action Settlement Agreement in the United States District Court case entitled Elouise Cobell et al. v. Ken Salazar et al (l) 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) (m) Benefits under the Indian Veterans Housing Opportunity Act of 2010 (only applies to Native American housing programs) (n) Payments received from programs funded under Title V of the Older Americans Act of 1985 (42 U.S.C. 3056(f)) (o) Payments received on or after January 1, 1989, from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in Re Agent-product liability litigation, M.D.L. No. 381 (E.D.N.Y.) (p) Payments received under 38 U.S.C. 1833(c) to children of Vietnam veterans born with spinal bifida, children of women Vietnam veterans born with certain birth defects, and children of certain Korean service veterans born with spinal bifida (p)(q) Payments received under the Maine Indian Claims Settlement Act of 1980 (25 U.S.C. 1721) 205 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-50 (q)(r) The value of any childcare 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) (r)(s) Earned income tax credit (EITC) refund payments received on or after January 1, 1991 (26 U.S.C. 32(j)) (s)(t) 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) (u) Amounts of scholarships funded under Title IV of the Higher Education Act of 1965j, including awards under federal work-study programs or under the Bureau of Indian Affairs student assistance programs (20 U.S.C. 1087uu). For Section 8 programs, the exception found in § 237 of Public Law 109–249 applies and requires that the amount of financial assistance in excess of tuition and mandatory fees shall be considered income in accordance with the provisions codified at 24 CFR 5.609(b)(9), except for those persons with disabilities as defined by 42 U.S.C. 1437a(b)(3)(E) (Pub. L. 109–249) (See Section 6-I.L. for exceptions.) (t)(v) Allowances, earnings and payments to AmeriCorps participants under the National and Community Service Act of 1990 (42 U.S.C. 12637(d)) (w) 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) (x) Any amounts in an "individual development account" as provided by the Assets for Independence Act, as amended in 2002 (y) Payments made from the proceeds of Indian tribal trust cases as described in Notice PIH 2013–30, "Exclusion from Income of Payments under Recent Tribal Trust Settlements" (25 U.S.C. 117b(a)) (z) Major disaster and emergency assistance received under the Robert T. Stafford Disaster Relief and Emergency Assistance Act and comparable disaster assistance provided by states, local governments, and disaster assistance organizations (aa) Distributions from an ABLE account, and actual or imputed interest on the ABLE account balance [See also Notice PIH 2019-09] (u) Amounts of scholarships funded under Title IV of the Higher Education Act of 1965j, including awards under federal work-study programs or under the Bureau of Indian Affairs student assistance programs (20 U.S.C. 1087uu). For Section 8 programs, the exception found in § 237 of Public Law 109–249 applies and requires that the amount of financial assistance in excess of tuition and mandatory fees shall be considered income in accordance with the provisions codified at 24 CFR 5.609(b)(9), except for those persons with 206 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-51 disabilities as defined by 42 U.S.C. 1437a(b)(3)(E) (Pub. L. 109–249) (See Section 6-I.L. for exceptions.) (v) 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) 207 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-52 PART II: ASSETS 6-II.A. OVERVIEW Annual income includes all actual anticipated income from assets (unless otherwise excluded by the regulations) even if the asset itself is excluded from net family assets [Notice PIH 2023-27]. The regulation at 24 CFR 5.603(b)(3) provides a list of items that are excluded from the calculation of net family assets. Note, unlike previous versions of the regulations, the current regulations do not list types of assets that are included in annual income. Instead, HUD relies on the definition of items excluded from assets to provide the scope of what is included. Exhibit 6-2 provides the regulatory definition of net family assets. Optional policies for family self-certification of assets are found in Chapter 7. Policies related to the asset limitation may be found in Chapter 3. Income from assets is always anticipated, irrespective of the income examination type. HACCC Policy HACCC generally will use current circumstances to determine both the value of an asset and the anticipated income from the asset. HACCC will 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) HACCC 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, HACCC can take into consideration past rental income along with the prospects of obtaining a new tenant. Any time 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 HACCC to show why the asset income determination does not represent the family’s anticipated asset income. 208 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-53 6-II.B. ASSETS DISPOSED OF FOR LESS THAN FAIR MARKET VALUE [24 CFR 5.603(b)(2)] PHAs must include the value of any business or family assets disposed of by an applicant or participant for less than fair market value (including a disposition in trust, but not in a foreclosure or bankruptcy sale) during the two years preceding the date of application or reexamination, as applicable, in excess of the consideration received for the asset. An asset moved to a retirement account held by a member of the family is not considered to be an asset disposed of for less than fair market value. [Notice PIH 2023-27]. Minimum Threshold The HCV 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]. HACCC Policy HACCC 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. 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. HACCC 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. Negative equity in real property or other investments does not prohibit the owner from selling the property or other investments, so negative equity alone would not justify excluding the property or other investments from family assets. Asset Owned by a Business Entity 209 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-54 If a business entity (e.g., limited liability company or limited partnership) owns the asset, then the family’s asset is their ownership stake in the business, not some portion of the business’s assets. However, if the family holds the assets in their own name (e.g., they own one third of a restaurant) rather than in the name of a business entity, then the percentage value of the asset owned by the family is what is counted toward net family assets (e.g., one-third of the value of the restaurant) [Notice PIH 2023-27]. Family Declaration HACCC 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. HACCC may verify the value of the assets disposed of if other information available to HACCC does not appear to agree with the information reported by the family. 6-II.C. ASSET INCLUSIONS AND EXCLUSIONS Checking and Savings Accounts [Notice PIH 2023-27] HUD considers bank accounts as non-necessary items of personal property. Whether or not necessary personal property is counted toward net family assets depends on the combined value of all of the family’s assets. x When the combined value of net family assets is greater than $50,000, as adjusted by inflation, checking and/or savings accounts would be counted toward net family assets. x When the combined value of all non-necessary personal property does not exceed $50,000, as adjusted by inflation, all non-necessary personal property is excluded from net family assets. In this case, the value of the family’s checking and/or savings accounts would not be considered when calculating net family assets. However, actual income from checking and savings accounts is always included in a family’s annual income, regardless of the total value of net family assets or whether the asset itself is included or excluded from net family assets, unless that income is specifically excluded. ABLE Accounts [24 CFR 5.609(b)(10); Notice PIH 2019-09] An Achieving a Better Life Experience (ABLE) account is a type of tax-advantaged savings account that an eligible individual can use to pay for qualified disability expenses. Section 103 of the ABLE Act mandates that an individual’s ABLE account (specifically, its account balance, contributions to the account, and distributions from the account) is excluded when determining the designated beneficiary’s eligibility and continued occupancy under certain federal means- tested programs. The PHA must exclude the entire value of the individual’s ABLE account from the household’s assets. Distributions from the ABLE account are also not considered income. 210 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-55 However, all wage income received, regardless of which account the money is paid to, is included as income. Investment Accounts Such as Stocks, Bonds, Saving Certificates, and Money Market Funds [24 CFR 5.603(b)(1)] HUD considers financial investments such as stocks and bonds non-necessary items of personal property. Whether non-necessary personal property is counted toward net family assets depends on the combined value of all of the family’s assets. x When the combined value of net family assets is greater than $50,000, as adjusted by inflation, financial investments such as stocks and bonds are considered part of net family assets. In this case, the value of the family’s checking and/or savings accounts would be counted toward net family assets. x When the combined value of all non-necessary personal property does not exceed $50,000, as adjusted by inflation, all non-necessary personal property is excluded from net family assets. In this case, the value of the family’s financial investments such as stocks and bonds would not be considered when calculating net family assets. However, actual income from financial accounts is always included in a family’s annual income, regardless of the total value of net family assets or whether the asset itself is included or excluded from net family assets, unless that income is specifically excluded. When a stock issues dividends in some years but not others (e.g., due to market performance), the dividend is counted as the actual return when it is issued, but when no dividend is issued, the actual return is $0. When the stock never issues dividends, the actual return is $0. HACCC Policy HACCC will include interest or dividends earned by investment accounts 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. In determining the market value of an investment account, HACCC will use the value of the account on the most recent investment report. Necessary and Non-Necessary Personal Property [24 CFR 5.603(b)(3)(i)] All assets are categorized as either real property (e.g., land, a home) or personal property. Personal property includes tangible items, like boats, as well as intangible items, like bank accounts. The value of necessary items of personal property is excluded from the calculation of net family assets. Necessary items of person property include a car used for commuting or medical devices. 211 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-56 HUD defines necessary personal property as items essential to the family for the maintenance, use, and occupancy of the premises as a home; or they are necessary for employment, education, or health and wellness. Necessary personal property includes more than merely items that are indispensable to the bare existence of the family. It may include personal effects (such as items that are ordinarily worn or utilized by the individual), items that are convenient or useful to a reasonable existence, and items that support and facilitate daily life within the family’s home. Necessary personal property also includes items that assist a household member with a disability, including any items related to disability-related needs, or that may be required for a reasonable accommodation for a person with a disability. Necessary personal property does not include bank accounts, other financial investments, or luxury items. Items of personal property that do not qualify as necessary personal property are classified as non-necessary personal property. The combined value of all non-necessary items of personal property is only included in annual income when the combined total value exceeds $50,000 (adjusted annually by HUD). When the combined value of all non-necessary personal property does not exceed $50,000, as adjusted by inflation, all non-necessary personal property is excluded from net family assets. While not an exhaustive list, the following table from Notice PIH 2023-27 provides examples of necessary and non-necessary personal property. 212 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-57 Necessary Personal Property Non-Necessary Personal Property Car(s)/vehicle(s) that a family relies on for transportation for personal or business use (e.g., bike, motorcycle, skateboard, scooter) Furniture, carpets, linens, kitchenware Common appliances Common electronics (e.g., radio, television, DVD player, gaming system) Clothing Personal effects that are not luxury items (e.g., toys, books) Wedding and engagement rings Jewelry used in religious/cultural celebrations and ceremonies Religious and cultural items Medical equipment and supplies Health care–related supplies Musical instruments used by the family Personal computers, phones, tablets, and related equipment Professional tools of trade of the family, for example professional books Educational materials and equipment used by the family, including equipment to accommodate persons with disabilities Equipment used for exercising (e.g., treadmill, stationary bike, kayak, paddleboard, ski equipment) Recreational car/vehicle not needed for day- to-day transportation for personal or business use (campers, motorhomes, traveling trailers, all-terrain vehicles (ATVs)) Bank accounts or other financial investments (e.g., checking account, savings account, stocks/bonds) Recreational boat/watercraft Expensive jewelry without religious or cultural value, or which does not hold family significance Collectibles (e.g., coins/stamps) Equipment/machinery that is not used to generate income for a business Items such as gems/precious metals, antique cars, artwork, etc. HACCC Policy 213 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-58 In determining the value of non-necessary personal property, HACCC will use the family’s estimate of the value. HACCC may obtain an appraisal if there is reason to believe that the family’s estimated value is off by $50 or more. The family must cooperate with the appraiser but cannot be charged any costs related to the appraisal. Lump-Sum Additions to Net Family Assets [24 CFR 5.609(b)(24(viii); Notice PIH 2023-27] The regulations exclude income from lump-sum additions to family assets, including lottery or other contest winnings as a type of nonrecurring income. In addition, lump sums from insurance payments, settlements for personal or property losses, and recoveries from civil actions or settlements based on claims of malpractice, negligence, or other breach of duty owed to a family member arising out of law that resulted in a member of the family becoming a family member with a disability are excluded from income. Further, deferred periodic amounts from Supplemental Security Income (SSI) and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly amounts are also excluded from income. However, these amounts may count toward net family assets. The PHA must consider any actual or imputed returns from assets as income at the next applicable income examination. In the case where the lump sum addition to assets would lead to imputed income, which is unearned income, that increases the family’s annual adjusted income by 10 percent or more, then the addition of the lump sum to the family’s assets will trigger an immediate interim reexamination of income in accordance with Chapter 11. This reexamination of income must take place as soon as the lump sum is added to the family’s net family assets unless the addition takes place in the last three months of family’s income certification period and the PHA chooses not to conduct the examination. 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. HACCC Policy Any lump-sum receipts are only counted as assets if they are retained by a family in a form recognizable as an asset. [RHIIP FAQs]. For example, if the family receives a $1,000 lump sum for lottery winnings, and the family immediately spends the entire amount, the lump sum will not be counted toward net family assets. Jointly Owned Assets [Notice PIH 2023-27] For assets owned jointly by the family and one or more individuals outside of the assisted family, the PHA must include the total value of the asset in the calculation of net family assets, unless: x The asset is otherwise excluded; 214 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-59 x The family can demonstrate that the asset is inaccessible to them; or x The family cannot dispose of any portion of the asset without the consent of another owner who refuses to comply. If the family demonstrates that they can only access a portion of an asset, then only that portion’s value is included in the calculation of net family assets for the family. Any income from a jointly owned asset must be included in annual income, unless: x The income is specifically excluded; x The family demonstrates that they do not have access to the income from that asset; or x The family only has access to a portion of the income from that asset. If the family demonstrates that they can only access a portion of the income from an asset, then only that portion’s value is included in the calculation of income from assets. If an individual is a beneficiary who is entitled to access the account’s funds only upon the death of the account’s owner, and may not otherwise withdraw funds from an account, then the account is not an asset to the assisted family, and the family should provide proper documentation demonstrating that they are only a beneficiary on the account. Trusts [24 CFR 5.609(b)(2) and 5.603(b)(4)] 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). The following types of trust distributions are excluded from annual income: x Distributions of the principal or corpus of the trust; and x Distributions of income from the trust when the distributions are used to pay the costs of health and medical care expenses for a minor. The basis for determining how to treat trusts relies on information about who has access to either the principal in the account or the income from the account. There are two types of trusts, revocable and irrevocable. When the creator sets up an irrevocable trust, the creator has no access to the funds in the account. Irrevocable trusts not under the control of any member of the family or household are not assets. Typically, special needs trusts are considered irrevocable. The value of the trust is not included in net family assets, so long as the fund continues to be held in a trust that is not revocable by, or under the control of, any member of the family or household [24 CFR 5.603(b)(4)]. Where an irrevocable trust is excluded from net family assets, the PHA must not consider actual income earned by the trust (e.g., interest earned, rental income if property is held in the trust) for so long as the income from the trust is not distributed. If the value of the trust is 215 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-60 not considered part of the family’s net assets, then distributions from the trust are treated as follows: x All distributions from the trust’s principal are excluded from income. x Distributions of income earned by the trust (i.e., interest, dividends, realized gains, or other earnings on the trust’s principal), are included as income unless the distribution is used to pay for the health and medical expenses for a minor. A revocable trust is a trust that the creator of the trust may amend or end (revoke). When there is a revocable trust, the creator has access to the funds in the trust account. The value of revocable trusts that are not under the control of the family are excluded from net family assets. This happens when a member of the assisted family is the beneficiary of a revocable trust, but the grantor is not a member of the assisted family. In this case the beneficiary does not “own” the revocable trust, and the value of the trust is excluded from net family assets. For the revocable trust to be considered excluded from net family assets, no family or household member may be the account’s trustee. If this is the case, then distributions from the trust are treated as follows: x All distributions from the trust’s principal are excluded from income. x Distributions of income earned by the trust (i.e., interest, dividends, realized gains, or other earnings on the trust’s principal), are included as income unless the distribution is used to pay for the health and medical expenses for a minor. Revocable trusts under the control of the family or household (e.g., the grantor is a member of the assisted family or household) are considered assets and must be included in net family assets. If the value of the trust is considered part of the family’s net assets, then distributions from the trust are not considered income to the family. The PHA must count all actual returns (e.g., interest earned) from the trust as income or, if the trust has no actual returns (e.g., if the trust is comprised of farmland that is not in use) and the total value of the combined net family assets exceeds $50,000 (as that amount is updated for inflation), as imputed returns, as applicable. Life Insurance [FR Notice 2/14/23 and Notice PIH 2023-27] Net family assets do not include the value of term life insurance, which has no cash value to the individual before death. 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. The cash value is the surrender value. While the cash value of an insurance policy is considered an asset, the face value of any policy is not. If such a policy earns dividends or interest that the family could elect to receive, the amount of dividends or interest is counted as income from the asset whether or not the family actually receives it. Tax Refunds [24 CFR 5.603(b)(3)(xi) and Notice PIH 2023-27] 216 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-61 All amounts received by a family in the form of federal tax refunds or refundable tax credits are excluded from a family’s net family assets for a period of 12 months after receipt by the family. At the time of an annual or interim reexamination of income, if the federal tax refund was received during the 12 months preceding the effective date of the reexamination, then the amount of the refund that was received by the family is subtracted from the total value of the account in which the federal tax refund or refundable tax credits were deposited. When the subtraction results in a negative number, then the balance of the asset is considered $0. If the tax refund or refundable tax credit is deposited into another excluded asset, such as a retirement account or a Coverdell Education Savings Account, then the deposit will have no effect on the balance of the asset (i.e., there is no need for the PHA to subtract the amount of the deposit from the value of the excluded asset). Asset Exclusions [24 CFR 5.603(b)] The following are excluded from the calculations of net family assets: x The value of any account under a retirement plan recognized as such by the IRS, including individual retirement arrangements (IRAs), employer retirement plans, and retirement plans for self-employed individuals [24 CFR 5.603(b)(3)(iii)]. x The value of real property that the family does not have the effective legal authority to sell in the jurisdiction in which the property is located [24 CFR 5.603(b)(3)(iv)]. - Real property as used in this part has the same meaning as that provided under the law of the state in which the property is located [24 CFR 5.100]. - Examples of this include but are not limited to co-ownership situations (including situations where one owner is a victim of domestic violence), where one party cannot unilaterally sell the real property; property that is tied up in litigation; and inherited property in dispute [Notice PIH 2023-27]. x Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a family member arising out of law, that resulted in a family member being a person with a disability [24 CFR 5.603(b)(3)(v)]; x The value of any Coverdell education savings account under section 530 of the Internal Revenue Code of 1986 [24 CFR 5.603(b)(3)(vi)]; x The value of any qualified tuition program under Section 529 of such Code [24 CFR 5.603(b)(3)(vi)]; x The value of any “baby bond” account created, authorized, or funded by federal, state, or local government [24 CFR 5.603(b)(3)(vi)]; x Interests in Indian trust land [24 CFR 5.603(b)(3)(vii)]; x Equity in a manufactured home where the family receives assistance under 24 CFR part 982 [24 CFR 5.603(b)(3)(viii)]; 217 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-62 x Equity in property under the Homeownership Option for which a family receives assistance under 24 CFR part 982 [24 CFR 5.603(b)(3)(ix)]; x Family Self-Sufficiency accounts [24 CFR 5.603(b)(3)(x)]; x Federal tax refunds or refundable tax credits for a period of 12 months after receipt by the family [24 CFR 5.603(b)(3)(xi)]. x The full amount of assets held in an irrevocable trust [Notice PIH 2023-27]; and x The full amount of assets held in a revocable trust where a member of the family is the beneficiary, but the grantor/owner and trustee of the trust is not a member of the participant family or household [Notice PIH 2023-27]. 6-II.D. DETERMINING INCOME FROM ASSETS In some cases, amounts that are excluded from net family assets may be included as annual income when disbursements are made to a family from an asset. In other cases, amounts are excluded from annual income as a lump-sum addition to net family assets, but those funds are then considered a net family asset if held in an account or other investment that is considered part of net family assets [Notice PIH 2023-27]. Net Family Assets Net family assets are defined as the net cash value of all assets owned by the family, after deducting reasonable costs that would be incurred in disposing real property, savings, stocks, bonds, and other forms of capital investment. HACCC 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 such as settlement costs and transfer taxes [New PH OCC GB, Income Determinations, p. 24]. The calculation of asset income sometimes requires the PHA to make a distinction between an asset’s market value and its cash value. x The market value of an asset is its worth in the market (e.g., the amount a buyer would pay for real estate or the total value of an investment account). x The cash value of an asset is its market value less all reasonable amounts that would be incurred when converting the asset to cash. The cash value of real property or other assets with negative equity would be considered $0 for the purposes of calculating net family assets. Negative equity in real property or other investments does not prohibit the family from selling the property or other investments, so negative equity alone would not justify excluding the property or other investments from family assets [Notice PIH 2023-27]. 218 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-63 Actual Income from Assets Income from assets must be included on the Form HUD-50058 regardless of the amount of income. Actual income from assets is always included in a family’s annual income, regardless of the total value of net family assets or whether the asset itself is included or excluded from net family assets, unless that income is specifically excluded by 24 CFR 5.609(b). Income or returns from assets are generally considered to be interest, dividend payments, and other actual income earned on the asset, and not the increase in market value of the asset. The increase in market value is relevant to the cash value of the asset for the purpose of determining total net family assets and imputing income. The PHA may determine the net assets of a family based on a self-certification by the family that the net family assets do not exceed $50,000 (adjusted annually by HUD), without taking additional steps to verify the accuracy of the declaration [24 CFR 5.618(b)]. Policies related to verification of assets are found in Chapter 7 of this policy. The PHA may not calculate or include any imputed income from assets when net family assets total $50,000 or less [24 CFR 5.609(b)(1)]. The actual income from assets must be included on the Form HUD-50058. Imputed Income from Assets When net family assets exceed $50,000 (adjusted annually by HUD), the PHA may not rely on self-certification. If actual returns can be calculated, the PHA must include actual income from the asset on the Form HUD-50058 (for example, a savings account or CD where the rate of return is known). If actual returns cannot be calculated, the PHA must calculate imputed returns using the HUD-determined passbook rate (for example, real property or a non-necessary item of personal property such as a recreational boat). If the PHA can compute actual income from some but not all assets, the PHA must compute actual returns where possible and use the HUD-determined passbook rate for assets where actual income cannot be calculated [24 CFR 5.609(a)(2)]. An asset with an actual return of $0 (such as a non-interest-bearing checking account), is not the same as an asset for which an actual return cannot be computed (such as non-necessary personal property). If the asset is a financial asset and there is no income generated (for example, a bank account with a zero percent interest rate or a stock that does not issue cash dividends), then the asset generates zero actual asset income, and imputed income is not calculated. When a stock issues dividends in some years but not others (e.g., due to market performance), the dividend is counted as the actual return when it is issued, and when no dividend is issued, the actual return is $0. When the stock never issues dividends, the actual return is consistently $0. 219 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-64 PART III: ADJUSTED INCOME 6-III.A. INTRODUCTION Overview HUD regulations require PHAs to deduct from annual income any of five mandatory deductions for which a family qualifies and allow the PHA to deduct other permissive deductions in accordance with PHA policy. The resulting amount is the family’s adjusted income. Mandatory deductions are found in 24 CFR 5.611. 5.611 Adjusted income means annual income (as determined under § 5.609) of the members of the family residing or intending to reside in the dwelling unit, after making the following deductions:( (a) Mandatory deductions. In determining adjusted income, the responsible entity [PHA] must deduct the following amounts from annual income: (a) Mandatory deductions (1) $480 for each dependent; dependent (adjusted annually by HUD, rounded to the next lowest multiple of $25); (2) $525 (as adjusted annually) for any elderly family or disabled family (adjusted annually by HUD, rounded to the next lowest multiple of $25);; (3) The sum of the following, to the extent the sum exceeds ten percent of annual income: (i) Unreimbursed health and medical care 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 childcare expenses necessary to enable a member of the family to be employed or to further their education. This part covers policies related to these mandatory deductions. Verification requirements related to these deductions are found in Chapter 7. Anticipating Expenses HACCC Policy Generally, HACCC will use current circumstances to anticipate expenses. When possible, for costs that are expected to fluctuate during the year (e.g., childcare during school and 220 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-65 non-school periods and cyclical medical expenses), HACCC will estimate costs based on historic data and known future costs. If a family has an accumulated debt for medical or disability assistance expenses, HACCC 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. HACCC may require the family to provide documentation of payments made in the preceding year. When calculating health and medical care expenses, HACCC will include those expenses anticipated to be incurred during the 12 months following the certification date which are not covered by an outside source, such as insurance. The allowance is not intended to give a family an allowance equal to last year’s expenses, but to anticipate regular ongoing and anticipated expenses during the coming year. Since these expenses are anticipated, the PH Occupancy Guidebook states “it is likely that actual expenses will not match what was anticipated. Typically, this would not be considered an underpayment as long as at the time of the annual reexamination, the expenses were calculated based on the appropriate verification” [New PH OCC GB, Income Determinations, p. 30]. For annual reexaminations, HACCC will use information for the previous 12-month period. 6-III.B. DEPENDENT DEDUCTION An allowance of $480 is deducted from annual income for each dependent (which amount will be adjusted by HUD annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers, rounded to the next lowest multiple of $25) [ 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-III.C. ELDERLY OR DISABLED FAMILY DEDUCTION A single deduction of $525 (as adjusted annually) is taken for any elderly or disabled family (which amount will be adjusted by HUD annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers, rounded to the next lowest multiple of $25) [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]. 6-III.D. HEALTH AND MEDICAL CARE EXPENSES DEDUCTION [24 CFR 5.611(a)(3)(i) and 5.603(b)] Unreimbursed health and medical care expenses may be deducted to the extent that, in combination with any disability assistance expenses, they exceed ten percent of annual income. 221 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-66 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]. Pursuant to the changes in Section 102 of HOTMA, the threshold for deduction of medical expenses has changed from 3% to 10%. Families may opt to phase-in the application of the higher threshold. Families who receive phased-in relief will have eligible expenses deducted as follows: x 1st twelve months – in excess of 5% of annual income. x 2nd twelve months – in excess of 7.5%. of annual income. x After 24 months – in excess of 10% threshold will phase in and remain in effect unless the family qualifies for General Hardship relief. Once a family chooses to obtain general relief, a family may no longer receive the phased-in relief. Definition of Medical Expenses HUD regulations define health and medical care expenses at 24 CFR 5.603(b) to mean “any costs incurred in the diagnosis, cure, mitigation, treatment, or prevention of disease or payments for treatments affecting any structure or function of the body. Health and medical care expenses include medical insurance premiums and long-term care premiums that are paid or anticipated during the period for which annual income is computed.” Medical insurance premiums continue to be eligible health and medical care expenses. Health and medical care expenses may be deducted from annual income only if they are eligible and not otherwise reimbursed and may only be deducted for elderly or disabled families. Although HUD revised the definition of health and medical care expenses to reflect the Internal Revenue Service (IRS) general definition of medical expenses, HUD is not permitting PHAs to specifically align their policies with IRS Publication 502 for determining which expenses are included in HUD’s mandatory deduction for health and medical care expenses. PHAs must review each expense to determine whether it is eligible in accordance with HUD’s definition of health and medical care expenses. 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.” HACCC Policy The most current IRS Publication 502, Medical and Dental Expenses, will be used as a reference to determine the costs that qualify as medical expenses. Summary of Allowable Medical Expenses from IRS Publication 502 222 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-67 • Services of Medical Professionals • Substance abuse treatment programs • Surgery and medical procedures that are necessary, legal, non- cosmetic • Services of medical facilities • Hospitalization, long-term care, and in- home nursing services • Prescription medicines and insulin, but not nonprescription medicines even if recommended by a doctor • Improvements to housing directly related to medical needs (e.g., ramps for a wheelchair, handrails) • Psychiatric treatment • Ambulance services and some costs of transportation related to medical expenses • Cost and continuing care of necessary service animals • The cost and care of necessary equipment related to a medical condition (e.g., eyeglasses/lenses, hearing aids, crutches, and artificial teeth) • 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. Families That Qualify for Both Health and Medical Care and Disability Assistance Expenses HACCC 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 a health and medical care or disability assistance expenses, HACCC will consider them health and medical care expenses unless it is clear that the expenses are incurred exclusively to enable a person with disabilities to work. 6-III.E. DISABILITY ASSISTANCE EXPENSES DEDUCTION [24 CFR 5.603(b) and 24 CFR 5.611(a)(3)(ii)] Unreimbursed rReasonable expenses for attendant care and auxiliary apparatus for a disabled family membereach member of the family who is a person with disabilities 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 ten 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)]. 223 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-68 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. HACCC 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, HACCC 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 HACCC 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. 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 [Notice PIH 2023-27] Auxiliary apparatus items may include expenses for wheelchairs, ramps, adaptations to vehicles, guide dogs, assistance animals, or special equipment to enable a person who is blind or has low vision to read or type or special equipment to assist a person who is deaf or hard of hearing. HACCC 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 224 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-69 Examples of attendant care expenses can include teaching a person with disabilities how to perform day-to-day tasks independently like cleaning, bathing, doing laundry, and cooking. Attendant care can be 24-hour care, or care during sporadic periods throughout the day. The family determines the type of attendant care that is appropriate for the person with disabilities. HACCC 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, HACCC 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. 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. HACCC Policy HACCC determines the reasonableness of the expenses based on typical costs of care or apparatus in the locality. To establish typical costs, HACCC will collect information from organizations that provide services and support to persons with disabilities. A family may present, and HACCC will consider, the family’s justification for costs that exceed typical costs in the area. Families That Qualify for Both Health and Medical Care and Disability Assistance Expenses 225 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-70 HACCC 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 health and medical care or disability assistance expenses, HACCC will consider them health and medical care expenses unless it is clear that the expenses are incurred exclusively to enable a person with disabilities to work. 6-III.F. CHILD CARE EXPENSE DEDUCTION HUD defines childcare 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 their education and only to the extent such amounts are not reimbursed. The amount deducted shall reflect reasonable charges for childcare. In the case of childcare 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 Childcare 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, childcare 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 HACCC 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 childcare deduction (seeking work, pursuing an education, or being gainfully employed). In evaluating the family’s request, HACCC 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. 226 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-71 Seeking Work HACCC Policy If the childcare 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 childcare expense being allowed by HACCC. Furthering Education HACCC Policy If the childcare expense being claimed is to enable a family member to further their 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 childcare claimed. Being Gainfully Employed HACCC Policy If the childcare 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 childcare is being provided. Gainful employment is any legal work activity (full- or part-time) for which a family member is compensated. Earned Income Limit on Child Care Expense Deduction When a family member looks for work or furthers their education, there is no cap on the amount that may be deducted for childcare – although the care must still be necessary and reasonable. However, when childcare 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 (EID) or a full-time student whose earned income above $480 is excluded, childcare 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, childcare expenses are limited to $5,000. 227 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-72 HACCC must not limit the deduction to the least expensive type of childcare. 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]. HACCC Policy When the childcare 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, HACCC generally will limit allowable childcare 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. Eligible Child Care Expenses The type of care to be provided is determined by the assisted family. HACCC may not refuse to give a family the childcare expense deduction because there is an adult family member in the household that may be available to provide childcare [VG, p. 26]. Allowable Child Care Activities HACCC 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 childcare. The costs of general housekeeping and personal services are not eligible. Likewise, childcare expenses paid to a family member who lives in the family’s unit are not eligible; however, payments for childcare to relatives who do not live in the unit are eligible. If a childcare provider also renders other services to a family or childcare is used to enable a family member to conduct activities that are not eligible for consideration, HACCC 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 childcare provider, the calculation will be based upon the number of hours spent in each activity and/or the number of persons under care. Necessary and Reasonable Costs Childcare 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 their education, and (2) the family certifies, and the childcare provider verifies, that the expenses are not paid or reimbursed by any other source. 228 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-73 HACCC Policy Childcare expenses will be considered for the time required for the eligible activity plus reasonable transportation time. For childcare 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 childcare costs, HACCC will use the schedule of childcare costs from a qualified local entity that either subsidizes child care costs or licenses child care providers. Families may present, and HACCC will consider, justification for costs that exceed typical costs in the area. 6-III.G. HARDSHIP EXEMPTIONS [24 CFR 5.611(c), (d), and (e)] Health and Medical Care and Disability Assistance Expenses [24 CFR 5.611(c); Notice PIH 2023-27] The regulations provide for two types of hardship exemption categories for families that qualify for unreimbursed health and medical care expenses and/or disability assistance expenses. A family will benefit from this hardship exemption only if the family has eligible expenses that can be deducted in excess of five percent of annual income. In order to claim unreimbursed health and medical care expenses, the family must have a head, cohead, or spouse that is elderly or a person with a disability. In order to claim unreimbursed reasonable attendant care and auxiliary apparatus expenses, the family must include a person with a disability, and the expenses must enable any member of the family (including the member who is a person with a disability) to be employed. Families may be eligible for relief under one of two categories; phased-in relief or general relief, as defined below. Phased-In Relief The first category is applicable to all families who received a deduction for unreimbursed health and medical care and/or reasonable attendant care or auxiliary apparatus expenses based on their most recent income review prior to January 1, 2024. The family must receive phased-in relief if they are determined to be eligible as of January 1, 2024. These families will begin receiving a 24-month phased-in relief at their next annual or interim reexamination, whichever occurs first. For these families, the threshold amount is phased-in as follows: x The family is eligible for a deduction totaling the sum of expenses that exceeds 5 percent of annual income for the first 12 months. x At the conclusion of 12 months, the family is eligible for a deduction totaling the sum of their expenses that exceed 7.5 percent of annual income for another 12 months. 229 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-74 x At the conclusion of 24 months, the standard threshold amount of 10 percent would be used, unless the family qualifies for relief under the general hardship relief category. - When an eligible family’s phased-in relief begins at an interim reexamination, the PHA will need to process another transaction one year later to move the family along to the next phase. The transaction can be either an interim reexamination if triggered, or a non- interim reexamination transaction. Prior to the end of the 24-month period, the family may request a hardship exemption under the second category as described below. If the family is found eligible under the second category, the hardship exemption under the first category ends, and the family’s hardship is administered in accordance with the requirements listed below. Once a family requests general relief, the family may no longer receive phased-in relief. PHAs must track the 24-month phase-period for each eligible family, even if a family’s expenses go below the appropriate phase-in percentage, during the first or second 12-month phase-in period. The phase-in must continue for families who move to another public housing unit at the same PHA. When the family is treated as a new admission under a different property/program (e.g., the family moves from public housing to the HCV program), unless the PHA has a written policy to continue the phased-in relief upon admission, the family’s expense deduction will be calculated using the 10-percent threshold unless request for general relief is approved by the PHA. When a family moves with continued assistance or ports to a new PHA, the family must continue to receive the phased-in relief. The family must receive the remaining calendar months of the percentage phase-in. The PHA must use the existing phase-in documentation to determine the remaining calendar months and the percentage phase-in. HACCC Policy HACCC will not continue the phased-in relief for families who move from public housing to HCV. These families will be treated as new admissions and the sum of expenses that exceeds 10 percent of annual income will be used to calculate their adjusted income. General Relief The second category is for families that can demonstrate: x Their health and medical and/or disability assistance expenses increased (other than the transition to the higher threshold); or x The family’s financial hardship is a result of a change in circumstances (as defined in PHA policy) that would not otherwise trigger an interim reexamination. The family may request a hardship exemption under the second category regardless of whether the family previously received the health and medical and/or disability assistance deductions or are currently or were previously receiving relief under the phased-in relief category above. HUD requires that PHAs develop policies defining what constitutes a hardship for purposes of this exemption. 230 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-75 The PHA must obtain third-party verification of the hardship or must document in the file the reason third-party verification was not available. PHAs must attempt to obtain third-party verification prior to the end of the 90-day hardship exemption period. HACCC Policy To qualify for a hardship exemption, a family must submit a request in writing. The request must show that the family’s health and medical and/or disability assistance expenses have increased (other than the transition to the higher threshold) and that the family’s financial hardship is a result of a change in circumstances. HACCC defines a change in circumstances as a decrease in income or increase in other expenses that has resulted in the family’s financial hardship but does not, on its own, trigger an interim reexam in accordance with HACCC policies. Examples of circumstances constituting a financial hardship may include the following situations: The family is awaiting an eligibility determination for a federal, state, or local assistance program, such as a determination for unemployment compensation or disability benefits; The family’s income decreased because of a loss of employment, death of a family member, or due to a natural or federal/state declared disaster; or Other circumstances as determined by the HACCC. The family must provide third-party verification of the hardship with the request. If third- party verification is not available, HACCC will document the file with the reason and will attempt to obtain third-party verification prior to the end of the 90-day hardship exemption period. HACCC must promptly notify the family in writing of the change in the determination of adjusted income and the family’s rent resulting from hardship exemptions. The notice must inform the family of when the hardship exemption will begin and expire [24 CFR 5.611(e)(2)] HACCC Policy HACCC will make a determination of whether the family qualifies within 30 calendar days and will notify the family in writing of the result within 10 business days of the determination. If HACCC denies the hardship exemption request, the HACCC notice will also state that if the family does not agree with HACCC’s determination, the family may request a hearing. 231 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-76 If the family qualifies for an exemption, HACCC will include the date the hardship exemption will begin and the date it will expire as well as information on how to request a 90-day extension based on family circumstances. If the family qualifies, the family will receive a deduction for the sum of eligible expenses that exceed five percent of annual income. The family’s hardship relief ends when the circumstances that made the family eligible for the relief are no longer applicable or after 90 days, whichever is earlier. However, the PHA may, at its discretion, extend the relief for one or more additional 90-day periods while the family’s hardship condition continues. PHAs are not limited to a maximum number of 90-day extensions. PHAs must establish written policies regarding the types of circumstances that will allow a family to qualify for a financial hardship and when such deductions may be eligible for additional 90-day extensions. PHAs must develop policies requiring families to report if the circumstances that made the family eligible for the hardship exemption are no longer applicable. HACCC Policy The family may request an extension either orally or in writing prior to the end of the hardship exemption period. HACCC will extend relief for an additional 90-days if the family demonstrates to HACCC’s satisfaction that the family continues to qualify for the hardship exemption based on circumstances described above. HACCC will require updated verification based on the family’s current circumstances. Additional extension may be granted on a case-by-case basis provided the family continues to request extensions prior to the end of each hardship exemption period. Families must report if the circumstances that made the family eligible for the hardship exemption are no longer applicable. At any time, HACCC may terminate the hardship exemption if HACCC determines that the family no longer qualifies for the exemption. Child Care Expense Hardship Exemption [24 CFR 5.611(d) and Notice PIH 2023-27] A family whose eligibility for the child care expense deduction is ending may request a financial hardship exemption to continue receiving the deduction. If the family demonstrates to the PHA’s satisfaction that the family is unable to pay their rent because of the loss of the child care expense deduction, and that the child care expense is still necessary even though the family member is not working, looking for work, or seeking to further their education, the PHA must recalculate the family’s adjusted income and continue the child care deduction. The PHA must develop a policy to define what constitutes a hardship, which includes the family’s inability to pay rent. The PHA must obtain third-party verification of the hardship or must document in the file the reason third-party verification was not available. PHAs must attempt to obtain third-party verification prior to the end of the 90-day hardship exemption period. HACCC Policy 232 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-77 For a family to qualify, they must demonstrate that their inability to pay rent would be as a result of the loss of this deduction. HACCC defines this hardship as a potential decrease in income or increase in other expenses that would result from the loss of the childcare expense and such loss would impact the family’s ability to pay their rent. Some factors to consider when determining if the family is unable to pay rent may include determining that the rent, utility payment, and applicable expenses (childcare expenses or health and medical expenses) are more than 40 percent of the family’s adjusted income, or verifying whether the family has experienced unanticipated expenses, such as large medical bills, that have affected their ability to pay their rent. The family must also demonstrate that the childcare expense is still necessary even though the family member is no longer employed or furthering their education. HACCC will consider qualification under this criterion on a case-by case basis (for example, if the family member who was employed has left their job in order to provide uncompensated care to an elderly friend or family member who is severely ill and lives across town). The family must provide third-party verification of the hardship with the request. If third- party verification is not available, HACCC will document the file with the reason and will attempt to obtain third-party verification prior to the end of the 90-day hardship exemption period. The PHA must promptly notify the family in writing of the change in the determination of adjusted income and the family’s rent resulting from hardship exemptions. If the PHA denies the request, the notice must specifically state the reason for the denial. PHAs must provide families 30 days’ notice of any increase in rent. If the PHA approves the request, the notice must inform the family of when the hardship exemption will begin and expire [24 CFR 5.611(e)(2)]. The notice must also state the requirement for the family to report to the PHA if the circumstances that made the family eligible for relief are no longer applicable and that the family’s adjusted income and tenant rent will be recalculated upon expiration of the hardship exemption [Notice PIH 2023-27]. HACCC Policy HACCC will make a determination of whether the family qualifies within 30 calendar days and will notify the family in writing of the result within 10 business days of the determination. If the HACCC denies the hardship exemption request, HACCC’s notice will also state that if the family does not agree with HACCC’s determination, the family may request an informal hearing. If the family qualifies for an exemption, HACCC will include all required information listed above as well as information on how to request a 90-day extension based on family circumstances. 233 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-78 If the family qualifies, the hardship exemption and the resulting alternative adjusted income calculation must remain in place for a period of up to 90 days. The PHA may, at its discretion, extend the hardship exemptions for additional 90-day periods based on family circumstances and as stated in PHA policies. PHAs are not limited to a maximum number of 90-day extensions. PHAs must develop policies requiring families to report if the circumstances that made the family eligible for the hardship exemption are no longer applicable. PHAs must promptly notify families in writing if they are denied either an initial hardship exemption or an additional 90-day extension of the exemption. If the PHA denies the request, the notice must specifically state the reason for the denial. PHAs must notify the family if the hardship exemption is no longer necessary and the hardship exemption will be terminated because the circumstances that made the family eligible for the exemption are no longer applicable. The notice must state the termination date and provide 30 days’ notice of rent increase, if applicable. HACCC Policy The family may request an extension either orally or in writing prior to the end of the hardship exemption period. HACCC will extend relief for an additional 90-days if the family demonstrates to HACCC’s satisfaction that the family continues to qualify for the hardship exemption. HACCC will require updated verification based on the family’s current circumstances. Additional extension may be granted on a case-by-case basis provided the family continues to request extensions prior to the end of each hardship exemption period. Families must report if the circumstances that made the family eligible for the hardship exemption are no longer applicable. At any time, HACCC may terminate the hardship exemption if HACCC determines that the family no longer qualifies for the exemption. 6-III.H. PERMISSIVE DEDUCTIONS [24 CFR 5.611(b)(1)(ii)] The PHA may adopt additional permissive deductions from annual income if they establish a policy in the administrative plan. Permissive deductions are additional, optional deductions that may be applied to annual income. As with mandatory deductions, permissive deductions must be based on need or family circumstance and deductions must be designed to encourage self- sufficiency or other economic purpose. If the PHA offers permissive deductions, they must be granted to all families that qualify for them and should complement existing income exclusions and deductions [PH Occ GB, p. 128] Permissive deductions may be used to incentivize or encourage self-sufficiency and economic mobility. A PHA that adopts such deductions must have sufficient funding to cover the increased housing assistance payment cost of the deductions. A PHA will not be eligible for an increase in HCV renewal funding for subsidy costs resulting from such deductions. 234 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-79 HACCC Policy HACCC has opted not to use permissive deductions.Hardship Exemption to Continue Child Care Deduction If the family presents verification that they are unable to pay their rent portion as a result of their childcare expenses, they may be eligible for a hardship exemption pursuant to the provisions in Chapter six of this Administrative Plan. HACCC shall require that the family provide third-party documentation regarding the reason they are unable to pay their rent portion or will document why third-party verification is not available prior to the expiration of the 90-day deferment period. 235 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-80 PART IVII: CALCULATING FAMILY SHARE AND PHA SUBSIDY PART III: CALCULATING FAMILY SHARE AND PHA SUBSIDY 6-IIIV.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 HACCC HACCC has authority to suspend and exempt families from minimum rent when a financial hardship exists, as defined in section 6-IVII.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] HACCC Policy Welfare rent does not apply in this locality. Minimum Rent [24 CFR 5.630] HACCC Policy The minimum rent for this locality is $50. Family Share [24 CFR 982.305(a)(5)] If a family chooses a unit with a gross rent (rent to owner plus an allowance for tenant-paid utilities) that exceeds HACCC’s applicable payment standard: (1) the family will pay more than the TTP, and (2) at initial occupancy HACCC may not approve the tenancy if it would require the family share to exceed 40 percent of the family’s monthly adjusted income. The income used for this 236 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-81 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- IIIV.C.) PHA Subsidy [24 CFR 982.505(b)] HACCC 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-IIIV.C.) Utility Reimbursement [24 CFR 982.514(b); 982.514(c)]] When HACCC subsidy for a family exceeds the rent to owner, the family is due a utility reimbursement. HUD permits HACCC to pay the reimbursement to the family or directly to the utility provider. HACCC Policy HACCC has the discretion to make utility reimbursements to the family or the utility provider. The PHA may make all utility reimbursement payments to qualifying families on a monthly basis or may make quarterly payments when the monthly reimbursement amount is $15.00 or less. Reimbursements must be made once per calendar-year quarter and must be prorated if the family leaves the program in advance of its next quarterly reimbursement. The PHA must also adopt hardship policies for families for whom receiving quarterly reimbursement would create a financial hardship. HACCC Policy HACCC will issue all utility reimbursements monthly. 6-IIIV.B. FINANCIAL HARDSHIPS AFFECTING MINIMUM RENT [24 CFR 5.630] Overview If HACCC establishes a minimum rent greater than zero, HACCC 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 or Family Share of the rent is higher than the minimum rent, the family is not eligible for a hardship exemption. If HACCC 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 237 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-82 Financial hardship includes the following situations: (1) 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. HACCC 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. HACCC 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. (4) A death has occurred in the family. HACCC 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 HACCC. HACCC Policy HACCC has established an additional hardship exemption for health and medical care expenses and reasonable attendant care & auxiliary apparatus expenses. criteria. Families who are unable to pay rent as a result of these medical expenses may request a hardship exemption pursuant to the provisions set forth in this chapter for Financial Hardships. Implementation of Hardship Exemption 238 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-83 Determination of Hardship When a family requests a financial hardship exemption, HACCC must suspend the minimum rent requirement beginning the first of the month following the family’s request. HACCC then determines whether the financial hardship exists and whether the hardship is temporary or long-term. HACCC Policy HACCC 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 HACCC has established a minimum rent of $50. Family Share – No Hardship Family Share – With Hardship $0 $15 N/A 30% of monthly adjusted income 10% of monthly gross income Welfare rent $0 $15 N/A 30% of monthly adjusted income 10% of monthly gross income Welfare rent Minimum rent applies. Hardship exemption granted. TTP = $15 TTP = $50 HACCC 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. HACCC will make the determination of hardship within 30 calendar days. No Financial Hardship 239 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-84 If HACCC determines there is no financial hardship, HACCC will reinstate the minimum rent and require the family to repay the amounts suspended. HACCC Policy HACCC will require the family to repay the suspended amount within 30 calendar days of HACCC’s notice that a hardship exemption has not been granted. Temporary Hardship If HACCC determines that a qualifying financial hardship is temporary, HACCC 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 HACCC the amounts suspended. HUD requires HACCC to offer a reasonable repayment agreement, on terms and conditions established by HACCC. HACCC also may determine that circumstances have changed, and the hardship is now a long-term hardship. HACCC Policy HACCC will enter into a repayment agreement in accordance with the procedures found in Chapter 16 of this plan. Long-Term Hardship If HACCC determines that the financial hardship is long-term, HACCC 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. HACCC 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. 240 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-85 (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. 6-IIIV.C. APPLYING PAYMENT STANDARDS [24 CFR 982.505; 982.503(b)] Overview HACCC’s schedule of payment standards is used to calculate housing assistance payments for HCV families. This section covers the application of HACCC’s payment standards. The establishment and revision of HACCC’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 HACCC’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 HACCC has established an exception payment standard for a designated part of a zip code area or an FMR area and a family’s unit is located in the exception area, HACCC must use the appropriate payment standard for the exception area. HACCC 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, HACCC 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 HACCC 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 HACCC changes its payment standard schedule, resulting in a lower payment standard amount, during the term of a HAP contract, HACCC shall not reduce the payment standard used to calculate subsidy for families under HAP contract as long as the HAP contract remains in effect [FR Notice 11/16/16]. 241 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-86 However, if HACCC does choose to reduce the payment standard for families currently under HAP contract, the initial reduction to the payment standard may not be applied any earlier than the effective date of the family’s second regular reexamination following the effective date of the decrease in the payment standard amount. At that point, HACCC may either reduce the payment standard to the current amount in effect on HACCC’s payment standard schedule or may reduce the payment standard to another amount that is higher than the normally applicable amount on the schedule. HACCC may also establish different policies for designated areas within its jurisdiction (e.g., different zip code areas). In any case, HACCC must provide the family with at least 12 months’ notice that the payment standard is being reduced before the effective date of the change. HACCC's policy on decreases in the payment standard during the term of the HAP contract apply to all families under HAP contract at the time of the effective date of the decrease in the payment standard within the designated area. HACCC Policy If HACCC changes its payment standard schedule resulting in a lower payment standard amount, during the term of a HAP contract, HACCC will not reduce the payment standard used to calculate subsidy for families under HAP contract as long as the HAP contract remains in effect. HACCC will not establish different policies for decreases in the payment standard for designated areas within its jurisdiction. 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 242 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-87 If a family requires a higher payment standard as a reasonable accommodation for a family member who is a person with disabilities, HACCC is allowed to establish a higher payment standard for the family of not more than 120 percent of the published FMR. 6-IIIV.D. APPLYING UTILITY ALLOWANCES [24 CFR 982.517] Overview A PHA-established utility allowance schedule is used in determining family share and PHA subsidy. HACCC must use the lower of the utility allowance for the size of dwelling unit actually leased by a family or the voucher unit size for which the family qualifies using PHA subsidy standards. See Chapter 5 for information on HACCC’s subsidy standards. For policies on establishing and updating utility allowances, see Chapter 16. Reasonable Accommodation and Individual Relief On request from a family that includes a person with disabilities, the PHA must approve a utility allowance which is higher than the applicable amount on the utility allowance schedule if a higher utility allowance is needed as a reasonable accommodation to make the program accessible and usable by the family member with a disability [24 CFR 982.517(e)]. (See Chapter 2 for policies regarding the request and approval of reasonable accommodations.)HCV program regulations require a PHA to approve a utility allowance amount higher than shown on HACCC’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, HACCC will approve an allowance for air-conditioning, even if HACCC has determined that an allowance for air-conditioning generally is not needed. In the cases where the unit size leased exceeds the family voucher size, as a reasonable accommodation, HACCC may approve a utility allowance for the actual size of the unit leased. Further, the PHA may grant requests for individual relief from charges in excess of the utility allowance on reasonable grounds, such as special factors not within control of the resident, as the PHA deems appropriate. The family must request the higher allowance and provide the PHA an explanation of the need for individual relief and an explanation about the amount of additional allowance required [see HCV GB, p. 18-8]. PHAs should develop criteria for granting individual relief, notify residents about the availability of individual relief, and notify participants about the availability of individual relief programs (sometimes referred to as “Medical Baseline discounts”) offered by the local utility company.The family must request the higher allowance and provide HACCC with an explanation of the need for the reasonable accommodation and information about the amount of additional allowance required [HCV GB, p. 18-8]. 243 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-88 HACCC Policy The family must request the higher allowance and provide HACCC with information about the amount of additional allowance required. HACCC will consider the following criteria as valid reasons for granting individual relief: The family’s consumption was mistakenly portrayed as excessive due to defects in the meter or errors in the meter reading. The excessive consumption is caused by a characteristic of the unit or owner- supplied equipment that is beyond the family’s control, such as a particularly inefficient refrigerator or inadequate insulation. The allowance should be adjusted to reflect the higher consumption needs associated with the unit until the situation is remedied. The resident should be granted individual relief until the allowance is adjusted. The excessive consumption is due to special needs of the family that are beyond their control, such as the need for specialized equipment in the case of a family member who is ill, elderly, or who has a disability. In determining the amount of the reasonable accommodation or individual relief, the PHA will allow a reasonable measure of additional usage as necessary. To arrive at the amount of additional utility cost of specific equipment, the family may provide information from the manufacturer of the equipment, or the family or PHA may conduct an internet search for an estimate of usage or additional monthly cost. Information on reasonable accommodation and individual relief for charges in excess of the utility allowance will be provided to all families at admission as part of the information on payment standards and utility allowances in the briefing packet. The PHA will also provide information on utility relief programs or medical discounts (sometimes referred to as “Medical Baseline discounts”) that may be available through local utility providers. At its discretion, the PHA may reevaluate the need for the increased utility allowance at any regular reexamination. If the excessive consumption is caused by a characteristic of the unit or PHA-supplied equipment that is beyond the family’s control, such as a particularly inefficient refrigerator or inadequate insulation, the individual relief to the resident will cease when the situation is remedied. Utility Allowance Revisions At reexamination, HACCC must use HACCC current utility allowance schedule [HCV GB, p. 18- 8]. HACCC Policy 244 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Page 6-89 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. If a revised Utility Allowance Schedule is implemented retroactively, annual certifications affected by the revised schedule shall be updated with a correction to the Annual reexamination if the utility allowance is increasing or, when the utility allowance is decreasing, an Interim Reexamination will be completed to ensure the tenant is given 30 -Day Notice of the increase in the tenant rent portion. 6-IIIV.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. HACCC must prorate the assistance provided to a mixed family. HACCC 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 HACCC subsidy for a family is calculated at $500 and two of four family members are ineligible, HACCC subsidy would be reduced to $250. 245 6-0 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 246 6-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EXHIBIT 6-1: ANNUAL INCOME INCLUSIONS 24 CFR 5.609 (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 (c) of this section. (4) Annual income also means amounts derived (during the 12-month period) from assets to which any member of the family has access. (b) Annual income includes, but is not limited to: (1) The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services; (2) 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; (3) Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation is permitted only as authorized in paragraph (b)(2) of this section. Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $50,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD; (4) The full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump- sum amount or prospective monthly amounts for the delayed start of a periodic amount (except as provided in paragraph (c)(14) of this section); (5) Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay (except as provided in paragraph (c)(3) of this section); (6) Welfare assistance payments. (i) Welfare assistance payments made under the Temporary Assistance for Needy Families (TANF) program are included in annual income only to the extent such payments: (A) Qualify as assistance under the TANF program definition at 45 CFR 260.311; and (B) Are not otherwise excluded under paragraph (c) of this section. (ii) If the welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the welfare assistance agency in accordance with the actual cost of shelter and utilities, the amount of welfare assistance income to be included as income shall consist of: 247 6-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (A) The amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities; plus (B) The maximum amount that the welfare assistance agency could in fact allow the family for shelter and utilities. If the family's welfare assistance is ratably reduced from the standard of need by applying a percentage, the amount calculated under this paragraph shall be the amount resulting from one application of the percentage. (7) Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing in the dwelling; (8) All regular pay, special pay and allowances of a member of the Armed Forces (except as provided in paragraph (c)(7) of this section) HHS DEFINITION OF "ASSISTANCE" 45 CFR: GENERAL TEMPORARY ASSISTANCE FOR NEEDY FAMILIES 260.31 What does the term “assistance” mean? (a)(1) The term “assistance” includes cash, payments, vouchers, and other forms of benefits designed to meet a family’s ongoing basic needs (i.e., for food, clothing, shelter, utilities, household goods, personal care items, and general incidental expenses). (2) It includes such benefits even when they are: (i) Provided in the form of payments by a TANF agency, or other agency on its behalf, to individual recipients; and (ii) Conditioned on participation in work experience or community service (or any other work activity under 261.30 of this chapter). (3) Except where excluded under paragraph (b) of this section, it also includes supportive services such as transportation and childcare provided to families who are not employed. (b) [The definition of “assistance”] excludes: (1) non-recurrent, short-term benefits that: (i) Are designed to deal with a specific crisis situation or episode of need; (ii) Are not intended to meet recurrent or ongoing needs; and (iii) Will not extend beyond four months. (2) Work subsidies (i.e., payments to employers or third parties to help cover the costs of employee wages, benefits, supervision, and training); (3) Supportive services such as childcare and transportation provided to families who are employed; (4) Refundable earned income tax credits; (5) Contributions to, and distributions from, Individual Development Accounts; (6) Services such as counseling, case management, peer support, childcare information and referral, transitional services, job retention, job advancement, and other employment-related services that do not provide basic income support; and (7) Transportation benefits provided under a Job Access or Reverse Commute project, pursuant to section 404(k) of [the Social Security] Act, to an individual who is not otherwise receiving assistance. 248 6-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EXHIBIT 6-12: ANNUAL INCOME FULL DEFINITIONEXCLUSIONS 24 CFR 5.609 (a) Annual income includes, with respect to the family: (1) All amounts, not specifically excluded in paragraph (b) of this section, received from all sources by each member of the family who is 18 years of age or older or is the head of household or spouse of the head of household, plus unearned income by or on behalf of each dependent who is under 18 years of age, and (2) When the value of net family assets exceeds $50,000 (which amount HUD will adjust annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers) and the actual returns from a given asset cannot be calculated, imputed returns on the asset based on the current passbook savings rate, as determined by HUD. (b)Annual income does not include the following: (1) Any imputed return on an asset when net family assets total $50,000 or less (which amount HUD will adjust annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers) and no actual income from the net family assets can be determined. (2) The following types of trust distributions: (i) For an irrevocable trust or a revocable trust outside the control of the family or household excluded from the definition of net family assets under § 5.603(b): (A) Distributions of the principal or corpus of the trust; and (B) Distributions of income from the trust when the distributions are used to pay the costs of health and medical care expenses for a minor. (ii) For a revocable trust under the control of the family or household, any distributions from the trust; except that any actual income earned by the trust, regardless of whether it is distributed, shall be considered income to the family at the time it is received by the trust. (3) Earned income of children under the 18 years of age. (4) Payments received for the care of foster children or foster adults, or State or Tribal kinship or guardianship care payments. (5) Insurance payments and settlements for personal or property losses, including but not limited to payments through health insurance, motor vehicle insurance, and workers’ compensation. (6) Amounts received by the family that are specifically for, or in reimbursement of, the cost of health and medical care expenses for any family member. (7) Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a family member arising out of law, that resulted in a member of the family becoming disabled. (8) Income of a live-in aide, foster child, or foster adult as defined in §§ 5.403 and 5.603, respectively. (9) (i) Any assistance that section 479B of the Higher Education Act of 1965, as amended (20 U.S.C. 1087uu), requires be excluded from a family’s income; and 249 6-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (ii) Student financial assistance for tuition, books, and supplies (including supplies and equipment to support students with learning disabilities or other disabilities), room and board, and other fees required and charged to a student by an institution of higher education (as defined under Section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)) and, for a student who is not the head of household or spouse, the reasonable and actual costs of housing while attending the institution of higher education and not residing in an assisted unit. (A) Student financial assistance, for purposes of this paragraph (9)(ii), means a grant or scholarship received from— ( 1) The Federal government; (2) A State, Tribe, or local government; (3) A private foundation registered as a nonprofit under 26 U.S.C. 501(c)(3); (4) A business entity (such as corporation, general partnership, limited liability company, limited partnership, joint venture, business trust, public benefit corporation, or nonprofit entity); or (5) An institution of higher education. (B) Student financial assistance, for purposes of this paragraph (9)(ii), does not include— (1) Any assistance that is excluded pursuant to paragraph (b)(9)(i) of this section; (2) Financial support provided to the student in the form of a fee for services performed (e.g., a work study or teaching fellowship that is not excluded pursuant to paragraph (b)(9)(i) of this section); ( 3) Gifts, including gifts from family or friends; or (4) Any amount of the scholarship or grant that, either by itself or in combination with assistance excluded under this paragraph or paragraph (b)(9)(i), exceeds the actual covered costs of the student. The actual covered costs of the student are the actual costs of tuition, books and supplies (including supplies and equipment to support students with learning disabilities or other disabilities), room and board, or other fees required and charged to a student by the education institution, and, for a student who is not the head of household or spouse, the reasonable and actual costs of housing while attending the institution of higher education and not residing in an assisted unit. This calculation is described further in paragraph (b)(9)(ii)€ of this section. (C) Student financial assistance, for purposes of this paragraph (b)(9)(ii) must be: (1) Expressly for tuition, books, room and board, or other fees required and charged to a student by the education institution; (2) Expressly to assist a student with the costs of higher education; or (3) Expressly to assist a student who is not the head of household or spouse with the reasonable and actual costs of housing while attending the education institution and not residing in an assisted unit. (D) Student financial assistance, for purposes of this paragraph (b)(9)(ii), may be paid directly to the student or to the educational institution on the student’s behalf. Student financial assistance paid to the student must be verified by the responsible entity as student financial assistance consistent with this paragraph (b)(9)(ii). (E) When the student is also receiving assistance excluded under paragraph (b)(9)(i) of this section, the amount of student financial assistance under this paragraph (b)(9)(ii) is determined as follows: 250 6-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (1) If the amount of assistance excluded under paragraph (b)(9)(i) of this section is equal to or exceeds the actual covered costs under paragraph (b)(9)(ii)(B)(4) of this section, none of the assistance described in this paragraph (b)(9)(ii) of this section is considered student financial assistance excluded from income under this paragraph (b)(9)(ii)(E). (2) If the amount of assistance excluded under paragraph (b)(9)(i) of this section is less than the actual covered costs under paragraph (b)(9)(ii)(B)(4) of this section, the amount of assistance described in paragraph (b)(9)(ii) of this section that is considered student financial assistance excluded under this paragraph is the lower of: (i) the total amount of student financial assistance received under this paragraph (b)(9)(ii) of this section, or (ii) the amount by which the actual covered costs under paragraph (b)(9)(ii)(B)(4) of this section exceeds the assistance excluded under paragraph (b)(9)(i) of this section. (10) Income and distributions from any Coverdell education savings account under section 530 of the Internal Revenue Code of 1986 or any qualified tuition program under section 529 of such Code; and income earned by government contributions to, and distributions from, “baby bond” accounts created, authorized, or funded by Federal, State, or local government. (11) The special pay to a family member serving in the Armed Forces who is exposed to hostile fire. (12) (i) 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); (ii) Amounts received by a participant in other publicly assisted programs which are specifically for or in reimbursement of out-of- pocket expenses incurred (e.g., special equipment, clothing, transportation, child care, etc.) and which are made solely to allow participation in a specific program; (iii) Amounts received under a resident service stipend not to exceed $200 per month. A resident service stipend is a modest amount 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. (iv) Incremental earnings and benefits resulting to any family member from participation in training programs funded by HUD or in qualifying Federal, State, Tribal, or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff. 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 employment training program unless those amounts are excluded under paragraph (b)(9)(i) of this section. (13) 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. (14) Earned income of dependent fulltime students in excess of the amount of the deduction for a dependent in § 5.611. (15) Adoption assistance payments for a child in excess of the amount of the deduction for a dependent in § 5.611. 251 6-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (16) Deferred periodic amounts from Supplemental Security Income and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly amounts. (17) Payments related to aid and attendance under 38 U.S.C. 1521 to veterans in need of regular aid and attendance. (18) Amounts received by the family in the form of refunds or rebates under State or local law for property taxes paid on the dwelling unit. (19) Payments made by or authorized by a State Medicaid agency (including through a managed care entity) or other State or Federal agency to a family to enable a family member who has a disability to reside in the family’s assisted unit. Authorized payments may include payments to a member of the assisted family through the State Medicaid agency (including through a managed care entity) or other State or Federal agency for caregiving services the family member provides to enable a family member who has a disability to reside in the family’s assisted unit. (20) Loan proceeds (the net amount disbursed by a lender to or on behalf of a borrower, under the terms of a loan agreement) received by the family or a third party (e.g., proceeds received by the family from a private loan to enable attendance at an educational institution or to finance the purchase of a car). (21) Payments received by Tribal members as a result of claims relating to the mismanagement of assets held in trust by the United States, to the extent such payments are also excluded from gross income under the Internal Revenue Code or other Federal law. (22) Amounts that HUD is required by Federal statute to exclude from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in paragraph (b) of this section apply. HUD will publish a notice in the Federal Register to identify the benefits that qualify for this exclusion. Updates will be published when necessary. (23) Replacement housing “gap” payments made in accordance with 49 CFR part 24 that offset increased out of pocket costs of displaced persons that move from one federally subsidized housing unit to another Federally subsidized housing unit. Such replacement housing “gap” payments are not excluded from annual income if the increased cost of rent and utilities is subsequently reduced or eliminated, and the displaced person retains or continues to receive the replacement housing “gap” payments. (24) Nonrecurring income, which is income that will not be repeated in the coming year based on information provided by the family. Income received as an independent contractor, day laborer, or seasonal worker is not excluded from income under this paragraph, even if the source, date, or amount of the income varies. Nonrecurring income includes: (i) Payments from the U.S. Census Bureau for employment (relating to decennial census or the American Community Survey) lasting no longer than 180 days and not culminating in permanent employment. (ii) Direct Federal or State payments intended for economic stimulus or recovery. (iii) Amounts directly received by the family as a result of State refundable tax credits or State tax refunds at the time they are received. 252 6-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (iv) Amounts directly received by the family as a result of Federal refundable tax credits and Federal tax refunds at the time they are received. (v) Gifts for holidays, birthdays, or other significant life events or milestones (e.g., wedding gifts, baby showers, anniversaries). (vi) Non-monetary, in-kind donations, such as food, clothing, or toiletries, received from a food bank or similar organization. (vii) Lump-sum additions to net family assets, including but not limited to lottery or other contest winnings. (25) Civil rights settlements or judgments, including settlements or judgments for back pay. (26) Income received from any account under a retirement plan recognized as such by the Internal Revenue Service, including individual retirement arrangements (IRAs), employer retirement plans, and retirement plans for self- employed individuals; except that any distribution of periodic payments from such accounts shall be income at the time they are received by the family. (27) Income earned on amounts placed in a family’s Family Self Sufficiency Account. (28) Gross income a family member receives through self-employment or operation of a business; except that the following shall be considered income to a family member: (i) 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; and (ii) 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. (c) Annual income does not include the following: (1) Income from employment of children (including foster children) under the age of 18 years; (2) Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the tenant family, who are unable to live alone); (3) Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses (except as provided in paragraph (b)(5) of this section); (4) Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member; (5) Income of a live-in aide, as defined in Sec. 5.403; (6) Subject to paragraph (b)(9) of this section, the full amount of student financial assistance paid directly to the student or to the educational institution; (7) The special pay to a family member serving in the Armed Forces who is exposed to hostile fire; (8) (i) Amounts received under training programs funded by HUD; (ii) 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); 253 6-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (iii) Amounts received by a participant in other publicly assisted programs which are specifically for or in reimbursement of out-of- pocket expenses incurred (special equipment, clothing, transportation, child care, etc.) and which are made solely to allow participation in a specific program; (iv) Amounts received under a resident service stipend. A resident service stipend is a modest amount (not to exceed $200 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; (v) Incremental earnings and benefits resulting to any family member 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. 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 employment training program; (9) Temporary, nonrecurring or sporadic income (including gifts); (10) 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; (11) Earnings in excess of $480 for each full- time student 18 years old or older (excluding the head of household and spouse); (12) Adoption assistance payments in excess of $480 per adopted child; (13) [Reserved] (14) Deferred periodic amounts from supplemental security income and social security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or prospective monthly amounts. (15) Amounts received by the family in the form of refunds or rebates under State or local law for property taxes paid on the dwelling unit; 254 6-9 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (16) 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; or (17) Amounts specifically excluded by any other Federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in 24 CFR 5.609(c) apply. A notice will be published in the Federal Register and distributed to PHAs and housing owners identifying the benefits that qualify for this exclusion. Updates will be published and distributed when necessary. [See Section 6-I.M. for a list of benefits that qualify for this exclusion.] 255 6-10 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (c) Annual income does not include the following: (1) Income from employment of children (including foster children) under the age of 18 years; (2) Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the tenant family, who are unable to live alone); (3) Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses (except as provided in paragraph (b)(5) of this section); (4) Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member; (5) Income of a live-in aide, as defined in Sec.5.403; (6) The full amount of student financial assistance paid directly to the student or to the educational institution; (7) The special pay to a family member serving in the Armed Forces who is exposed to hostile fire; (8) (i) Amounts received under training programs funded by HUD; (ii) 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); (iii) Amounts received by a participant in other publicly assisted programs which are specifically for or in reimbursement of out- of- pocket expenses incurred (special equipment, clothing, transportation, childcare, etc.) and which are made solely to allow participation in a specific program; (iv) Amounts received under a resident service stipend. A resident service stipend is a modest amount (not to exceed $200 per month) received by a resident for performing a service for the HACCC 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 HACCC's governing board. No resident may receive more than one such stipend during the same period of time; (v) Incremental earnings and benefits resulting to any family member 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. 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 employment training program; (9) Temporary, nonrecurring or sporadic income (including gifts); (10) 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; (11) Earnings in excess of $480 for each full- time student 18 years old or older (excluding the head of household and spouse); 256 6-11 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (12) Adoption assistance payments in excess of $480 per adopted child; (13) [Reserved] (14) Deferred periodic amounts from supplemental security income and social security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or prospective monthly amounts. (15) Amounts received by the family in the form of refunds or rebates under State or local law for property taxes paid on the dwelling unit; (16) 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; or (17) Amounts specifically excluded by any other Federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in 24 CFR 5.609(c) apply. A notice will be published in the Federal Register and distributed to HACCCs and housing owners identifying the benefits that qualify for this exclusion. Updates will be published and distributed when necessary. [See the following chart for a list of benefits that qualify for this exclusion.] Sources of Income Excluded by Federal Statute from Consideration as Income for Purposes of Determining Eligibility or Benefits 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) Certain 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)); 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 $2000 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 $2000 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 (20 U.S.C. 1070), including awards under federal work-study programs or under the Bureau of Indian Affairs student assistance programs (20 U.S.C. 1087uu). For section 8 programs only (42 U.S.C. 1437f), any financial assistance in excess of amounts received by an individual for tuition and any other required fees and 257 6-12 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 charges under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), from private sources, or an institution of higher education (as defined under the Higher Education Act of 1965 (20 U.S.C. 1002)), shall not be considered income to that individual if the individual is over the age of 23 with dependent children (Pub. L. 109–115, section 327) (as amended); 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 Re Agent-product liability litigation, M.D.L. No. 381 (E.D.N.Y.); l) Payments received under the Maine Indian Claims Settlement Act of 1980 (25 U.S.C. 1721); m) The value of any childcare 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, for programs administered under the United States Housing Act of 1937, title V of the Housing Act of 1949, section 101 of the Housing and Urban Development Act of 1965, and sections 221(d)(3), 235, and 236 of the National Housing Act (26 U.S.C. 32(l)); 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. 1833(c) to children of Vietnam veterans born with spina bifida (38 U.S.C. 1802–05), children of women Vietnam veterans born with certain birth defects (38 U.S.C. 1811–16), and children of certain Korean service veterans born with spina bifida (38 U.S.C. 1821). 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); and s) Allowances, earnings and payments to individuals participating in programs under the Workforce Investment Act of 1998 (29 U.S.C. 2931). t) Any amount received under the Richard B. Russell School Lunch Act (42 U.S.C. 1760(e)) and the Child Nutrition Act of 1966 (42 U.S.C. 1780(b)), including reduced-price lunches and food under the Special Supplemental Food Program for Women, Infants, and Children (WIC); (xx) Payments, funds, or distributions authorized, established, or directed by the Seneca Nation Settlement Act of 1990 (25 U.S.C. 1774f (b)); u) Payments from any deferred U.S. Department of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly amounts (42 U.S.C. § 1437a(b)(4)); v) Compensation received by or on behalf of a veteran for service-connected disability, death, dependency, or indemnity compensation as provided by an amendment 258 6-13 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 by the Indian Veterans Housing Opportunity Act of 2010 (Pub. L. 111–269; 25 U.S.C. 4103(9)) to the definition of income applicable to programs authorized under the Native American Housing Assistance and Self- Determination Act (NAHASDA) (25 U.S.C. 4101 et seq.) and administered by the Office of Native American Programs; w) A lump sum or a periodic payment received by an individual Indian pursuant to the Class Action Settlement Agreement in the case entitled Elouise Cobell et al. v. Ken Salazar et al., 816 F.Supp.2d 10 (Oct. 5, 2011 D.D.C.), for a period of one year from the time of receipt of that payment as provided in the Claims Resolution Act of 2010 (Pub. L. 111–291); x) Any amounts in an ‘‘individual development account’’ as provided by the Assets for Independence Act, as amended in 2002 (Pub. L. 107–110, 42 U.S.C. 604(h)(4)); y) Per capita payments made from the proceeds of Indian Tribal Trust Cases as described in PIH Notice 2013– 30 ‘‘Exclusion from Income of Payments under Recent Tribal Trust Settlements’’ (25 U.S.C. 117b (a)); and z) Major disaster and emergency assistance received by individuals and families under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Pub. L. 93– 288, as amended) and comparable disaster assistance provided by States, local governments, and disaster assistance organizations (42 U.S.C. 5155(d)). 259 6-14 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EXHIBIT 6-23: TREATMENT OF FAMILY ASSETS 24 CFR 5.603(b) Net Family Assets (1) Net family assets is the net cash value of all assets owned by the family, after deducting reasonable costs that would be incurred in disposing real property, savings, stocks, bonds, and other forms of capital investment. (2) In determining net family assets, PHAs or owners, as applicable, must include the value of any business or family assets disposed of by an applicant or tenant for less than fair market value (including a disposition in trust, but not in a foreclosure or bankruptcy sale) during the two years preceding the date of application for the program or reexamination, as applicable, in excess of the consideration received therefor. In the case of a disposition as part of a separation or divorce settlement, the disposition will not be considered to be for less than fair market value if the applicant or tenant receives consideration not measurable in dollar terms. Negative equity in real property or other investments does not prohibit the owner from selling the property or other investments, so negative equity alone would not justify excluding the property or other investments from family assets. (3) Excluded from the calculation of net family assets are: (i) The value of necessary items of personal property; (ii) The combined value of all nonnecessary items of personal property if the combined total value does not exceed $50,000 (which amount will be adjusted by HUD in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers); (iii) The value of any account under a retirement plan recognized as such by the Internal Revenue Service, including individual retirement arrangements (IRAs), employer retirement plans, and retirement plans for self- employed individuals; (iv) The value of real property that the family does not have the effective legal authority to sell in the jurisdiction in which the property is located; (v) Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a family member arising out of law, that resulted in a family member being a person with a disability; (vi) The value of any Coverdell education savings account under section 530 of the Internal Revenue Code of 1986, the value of any qualified tuition program under section 529 of such Code, the value of any Achieving a Better Life Experience (ABLE) account authorized under Section 529A of such Code, and the value of any “baby bond” account created, authorized, or funded by Federal, State, or local government. (vii) Interests in Indian trust land; (viii) Equity in a manufactured home where the family receives assistance under 24 CFR part 982; (ix) Equity in property under the Homeownership Option for which a family receives assistance under 24 CFR part 982; (x) Family Self-Sufficiency Accounts; and (xi) Federal tax refunds or refundable tax credits for a period of 12 months after receipt by the family. (4) In cases where a trust fund has been established and the trust is not revocable by, or under the control of, any member of the family or household, the trust fund is not a family asset and the value of the trust is not included in the calculation of net family assets, so long as the fund continues to be held in a trust that is not revocable by, or under the control of, any member of the family or household. Net cash value after deducting reasonable costs that would be incurred in disposing of real property, savings, stocks, bonds, and other forms of capital investment, excluding interests in Indian trust land and excluding equity accounts in 260 6-15 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HUD homeownership programs. The value of necessary items of personal property such as furniture and automobiles shall be excluded. (2) In cases where a trust fund has been established and the trust is not revocable by, or under the control of, any member of the family or household, the value of the trust fund will not be considered an asset so long as the fund continues to be held in trust. Any income distributed from the trust fund shall be counted when determining annual income under Sec. 5.609. (3) In determining net family assets, PHAs or owners, as applicable, shall include the value of any business or family assets disposed of by an applicant or tenant for less than fair market value (including a disposition in trust, but not in a foreclosure or bankruptcy sale) during the two years preceding the date of application for the program or reexamination, as applicable, in excess of the consideration received therefor. In the case of a disposition as part of a separation or divorce settlement, the disposition will not be considered to be for less than fair market value if the applicant or tenant receives important consideration not measurable in dollar terms. (4) For purposes of determining annual income under Sec. 5.609, the term "net family assets'' 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. This page intentionally left blank (1) Net cash value after deducting reasonable costs that would be incurred in disposing of real property, savings, stocks, bonds, and other forms of capital investment, excluding interests in Indian trust land and excluding equity accounts in HUD homeownership programs. The value of necessary items of personal property such as furniture and automobiles shall be excluded. (2) In cases where a trust fund has been established and the trust is not revocable by, or under the control of, any member of the family or household, the value of the trust fund will not be considered an asset so long as the fund continues to be held in trust. Any income distributed from the trust fund shall be counted when determining annual income under Sec. 5.609. 261 6-16 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (3) In determining net family assets, HACCCs or owners, as applicable, shall include the value of any business or family assets disposed of by an applicant or tenant for less than fair market value (including a disposition in trust, but not in a foreclosure or bankruptcy sale) during the two years preceding the date of application for the program or reexamination, as applicable, in excess of the consideration received, therefore. In the case of a disposition as part of a separation or divorce settlement, the disposition will not be considered to be for less than fair market value if the applicant or tenant receives important consideration not measurable in dollar terms. (4) For purposes of determining annual income under Sec. 5.609, the term "net family assets'' 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. 262 6-0 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 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 earned income provided by this section is applicable only to the following programs: HOME Investment Partnerships Program (24 CFR part 92); Housing Opportunities for Persons with AIDS (24 CFR part 574); Supportive Housing Program (24 CFR part 583); and the Housing Choice Voucher Program (24 CFR part 982). (b) Definitions. The following definitions apply for purposes of this section. Baseline income. The annual income immediately prior to implementation of the disallowance described in paragraph (c)(1) of this section of a person with disabilities (who is a member of a qualified family). Disallowance. Exclusion from annual income. Previously unemployed includes a person with disabilities who has earned, in the twelve months previous to employment, no more than would be received for 10 hours of work per week for 50 weeks at the established minimum wage. Qualified family. A family residing in housing assisted under one of the programs listed in paragraph (a) of this section or receiving tenant-based rental assistance under one of the programs listed in paragraph (a) of this section. (1) Whose annual income increases as a result of employment of a family member who is a person with disabilities and who was previously unemployed for one or more years prior to employment; (2) Whose annual income increases as a result of increased earnings by a family member who is a person with disabilities during participation in any economic self- sufficiency or other job training program; or (3) Whose annual income increases, as a result of new employment or increased earnings of a family member who is a person with disabilities, during or within six months after receiving assistance, benefits or services under any state program for temporary assistance for needy families funded under Part A of Title IV of the Social Security Act, as determined by the responsible entity in consultation with the local agencies administering temporary assistance for needy families (TANF) and Welfare-to-Work (WTW) programs. The TANF program is not limited to monthly income maintenance, but also includes such benefits and services as one-time payments, wage subsidies and transportation assistance-- provided that the total amount over a six- month period is at least $500. (c) Disallowance of increase in annual income— (1) Initial twelve-month exclusion. During the 12-month period beginning on the date a member who is a person with disabilities of a qualified family is first employed or the family first experiences an increase in annual income attributable to employment, the responsible entity must exclude from annual income (as defined in the regulations governing the applicable program listed in paragraph (a) of this section) of a qualified family any increase in income of the family member who is a person with disabilities as a result of employment over prior income of that family member. 263 6-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (2) Second twelve-month exclusion. Upon expiration of the 12-month period defined in paragraph (c)(1) of this section and for the subsequent 12-month period, the responsible entity must exclude from annual income of a qualified family at least 50 percent of any increase in income of such family member as a result of employment over the family member’s baseline income. (3) Maximum 2-year disallowance. The disallowance of increased income of an individual family member who is a person with disabilities as provided in paragraph (c)(1) or (c)(2) of this section is limited to a lifetime 24-month period. The disallowance applies for a maximum of 12 months for disallowance under paragraph (c)(1) of this section and a maximum of 12 months for disallowance under paragraph (c)(2) of this section, during the 24- month period starting from the initial exclusion under paragraph (c)(1) of this section. (4) Effect of changes on currently participating families. Families eligible for and participating in the disallowance of earned income under this section prior to May 9, 2016 will continue to be governed by this section in effect as it existed immediately prior to that date (see 24 CFR parts 0 to 199, revised as of April 1, 2016). (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). 264 6-0 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EXHIBIT 6-35: 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 covered families who reside in public housing (part 960 of this title) or receive Section 8 tenant-based assistance (part 982 of this title). (b) Definitions. The following definitions apply for purposes of this section: Covered families. Families 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. Economic self-sufficiency program. See definition at Sec. 5.603. Imputed welfare income. The amount of annual income not actually received by a family, as a result of a specified welfare benefit reduction, that is nonetheless included in the family's annual income for purposes of determining rent. Specified welfare benefit reduction. (1) A reduction of welfare benefits by the welfare agency, in whole or in part, for a family member, as determined by the welfare agency, because of fraud by a family member in connection with the welfare program; or because of welfare agency sanction against a family member for noncompliance with a welfare agency requirement to participate in an economic self-sufficiency program. (2) "Specified welfare benefit reduction'' does not include a reduction or termination of welfare benefits by the welfare agency: (i) at expiration of a lifetime or other time limit on the payment of welfare benefits; (ii) because a family member is not able to obtain employment, even though the family member has complied with welfare agency economic self-sufficiency or work activities requirements; or (iii) because a family member has not complied with other welfare agency requirements. (c) Imputed welfare income. (1) A family's annual income includes the amount of imputed welfare income (because of a specified welfare benefits reduction, as specified in notice to the HACCC by the welfare agency), plus the total amount of other annual income as determined in accordance with Sec. 5.609. (2) At the request of the HACCC, the welfare agency will inform the HACCC in writing of the amount and term of any specified welfare benefit reduction for a family member, and the reason for such reduction, and will also inform the HACCC of any subsequent changes in the term or amount of such specified welfare benefit reduction. The HACCC will use this information to determine the amount of imputed welfare income for a family. (3) A family's annual income includes imputed welfare income in family annual income, as determined at the HACCC's interim or regular reexamination of family income and composition, during the term of the welfare benefits reduction (as specified in information provided to the HACCC by the welfare agency). 265 6-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (4) The amount of the imputed welfare income is offset by the amount of additional income a family receives that commences after the time the sanction was imposed. When such additional income from other sources is at least equal to the imputed (5) The HACCC may not include imputed welfare income in annual income if the family was not an assisted resident at the time of sanction. (d) Review of HACCC decision. (1) Public housing. If a public housing tenant claims that the HACCC has not correctly calculated the amount of imputed welfare income in accordance with HUD requirements, and if the HACCC denies the family's request to modify such amount, the HACCC shall give the tenant written notice of such denial, with a brief explanation of the basis for the HACCC determination of the amount of imputed welfare income. The HACCC notice shall also state that if the tenant does not agree with the HACCC determination, the tenant may request a grievance hearing in accordance with part 966, subpart B of this title to review the HACCC determination. The tenant is not required to pay an escrow deposit pursuant to Sec. 966.55 (e) for the portion of tenant rent attributable to the imputed welfare income in order to obtain a grievance hearing on the HACCC determination. (2) Section 8 participant. A participant in the Section 8 tenant-based assistance program may request an informal hearing, in accordance with Sec. 982.555 of this title, to review the HACCC determination of the amount of imputed welfare income that must be included in the family's annual income in accordance with this section. If the family claims that such amount is not correctly calculated in accordance with HUD requirements, and if the HACCC denies the family's request to modify such amount, the HACCC shall give the family written notice of such denial, with a brief explanation of the basis for the HACCC determination of the amount of imputed welfare income. Such notice shall also state that if the family does not agree with the HACCC determination, the family may request an informal hearing on the determination under the HACCC hearing procedure. (e) HACCC relation with welfare agency. (1) The HACCC must ask welfare agencies to inform the HACCC of any specified welfare benefits reduction for a family member, the reason for such reduction, the term of any such reduction, and any subsequent welfare agency determination affecting the amount or term of a specified welfare benefits reduction. If the welfare agency determines a specified welfare benefits reduction for a family member, and gives the HACCC written notice of such reduction, the family's annual incomes shall include the imputed welfare income because of the specified welfare benefits reduction. (2) The HACCC is responsible for determining the amount of imputed welfare income that is included in the family's annual income as a result of a specified welfare benefits reduction as determined by the welfare agency and specified in the notice by the welfare agency to the HACCC. However, the HACCC is not responsible for determining whether a reduction of welfare benefits by the welfare agency was correctly determined by the welfare agency in accordance with welfare program requirements and procedures, nor for providing the opportunity for review or hearing on such welfare agency determinations. (3) Such welfare agency determinations are the responsibility of the welfare agency, and the family may seek appeal of such determinations through the welfare agency's normal due process procedures. The HACCC shall be entitled to rely on the 266 6-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 welfare agency notice to the HACCC of the welfare agency's determination of a specified welfare benefits reduction. 267 7-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 CHAPTER 7 VERIFICATION [24 CFR 982.516, 24 CFR 982.551, 24 CFR 5.230, Notice PIH 2023-272017-12] INTRODUCTION The PHA must verify all information that is used to establish the family’s eligibility and level of assistance and is required to obtain written authorization from the family in order to collect the information. Applicants and program participants must cooperate with the verification process as a condition of receiving assistance. The PHA must not pass on the cost of verification to the family. The PHA will must follow the verification guidance provided by HUD in Notice PIH 2017-122023- 27 and any subsequent guidance issued by HUD. This chapter summarizes those requirements and provides supplementary PHA policies. Part I Describes the general verification process. Part II Provides more detailed requirements related to family information. Part III Provides information on income and assets Part IV Covers mandatory deductions. Verification policies, rules and procedures will be modified as needed to accommodate persons with disabilities. All information obtained through the verification process will be handled in accordance with the records management policies of the PHA. 268 7-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART I: GENERAL VERIFICATION REQUIREMENTS 7-I.A. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 982.516 , AND 982.551, 24 CFR 5.230, ; and Notice PIH 2023-27] Consent Forms The family must supply any information that the PHA or HUD determines is necessary to the administration of the program and must consent to PHA verification of that information [24 CFR 982.551]. All adult family members must sign consent forms as needed to collect information relevant to the family’s eligibility and level of assistance. While PHAs must use form HUD-9886, this form does not release all the information necessary to the administration of the program. The PHA must also develop its own release forms to cover all other necessary information. Form HUD-9886 [24 CFR 5.230(b)(1), b(2), (c)(4), and (c)(5)]; Notice PIH 2023-27 Consent Forms AIt is required that all adult applicants and participants sign form HUD-9886, Authorization for Release of Information. All adult family members (and the head and spouse/cohead, regardless of age) are required to sign the Form HUD-9886 at admission. Participants, prior to January 1, 2024, signed and submitted Form HUD-9886 at each annual reexamination. HOTMA eliminated this requirement and instead required that the Form HUD-9886 be signed only once. On or after January 1, 2024 (regardless of the PHA’s HOTMA compliance date), current program participants must sign and submit a new Form HUD-9886 at their next interim or annual reexamination. This form will only be signed once. Another Form HUD-9886 will not be submitted to the PHA except under the following circumstances: x When any person 18 years or older becomes a member of the family; x When a current member of the family turns 18; or x As required by HUD or the PHA in administrative instructions. The PHA has the discretion to establish policies around when family members must sign consent forms when they turn 18. PHAs must establish these policies stating when family members will be required to sign consent forms at intervals other than at reexamination. HACCC Policy Family members turning 18 years of age between annual recertifications will be notified in writing that they are required to sign the required Consent to the Release of Information Form HUD-9886 at the family’s next annual or interim reexamination, whichever is earlier. The purpose of form HUD-9886 is to facilitate automated data collection and computer matching from specific sources and provides the family's consent only for the specific purposes listed on the form. HUD and the PHA may collect information from State Wage Information Collection Agencies (SWICAs) and current and former employers of adult family members. Only HUD is authorized to collect information directly from the Internal Revenue Service (IRS) and the Social 269 7-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Security Administration (SSA). Adult family members must sign other consent forms as needed to collect information relevant to the family’s eligibility and level of assistance. The PHA may obtain any financial record from any financial institution, as the terms financial record and financial institution are defined in the Right to Financial Privacy Act (12 U.S.C. 3401), whenever the PHA determines the record is needed to determine an applicant’s or participant’s eligibility for assistance or level of benefits [24 CFR 5.230(c)(4)]. The executed form will remain effective until the family is denied assistance, assistance is terminated, or the family provides written notification to the PHA to revoke consent.The purpose of form HUD-9886 is to facilitate automated data collection and computer matching from specific sources and provides the family's consent only for the specific purposes listed on the form. HUD and the PHA may collect information from State Wage Information Collection Agencies (SWICAs) and current and former employers of adult family members. Only HUD is authorized to collect information directly from the Internal Revenue Service (IRS) and the Social Security Administration (SSA). Adult family members must sign other consent forms as needed to collect information relevant to the family’s eligibility and level of assistance. Penalties for Failing to Consent [24 CFR 5.232] If any family member who is required to sign a consent form fails to do so, the PHA will must deny admission to applicants and terminate assistance of participants. The family may request an informal review (applicants) or informal hearing (participants) in accordance with PHA procedures. However, this does not apply if the applicant, participant, or any member of their family, revokes their consent with respect to the ability of the PHA to access financial records from financial institutions, unless the PHA establishes a policy that revocation of consent to access financial records will result in denial or termination of assistance or admission [24 CFR 5.232(c)]. PHAs may not process interim or annual reexaminations of income without the family’s executed consent forms. HACCC Policy HACCC has established a policy that revocation of consent to access financial records will result in denial of admission or termination of assistance in accordance with HACCC policy. In order for a family to revoke their consent, the family must provide written notice to HACCC. Within 10 business days of the date the family provides written notice, HACCC will send the family a notice acknowledging receipt of the request and explaining that revocation of consent will result in denial or termination of assistance, as applicable. At the same time, HACCC will notify their local HUD office. 270 7-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 7-I.B. USE OF OTHER PROGRAMS’ INCOME DETERMINATIONS [24 CFR 5.609(c)(3) and Notice PIH 2023-27] PHAs may, but are not required to, determine a family’s annual income, including income from assets, prior to the application of any deductions, based on income determinations made within the previous 12-month period, using income determinations from means-tested federal public assistance programs. PHAs are not required to accept or use determinations of income from other federal means-tested forms of assistance. If the PHA adopts a policy to accept this type of verification, the PHA must establish in policy when they will accept Safe Harbor income determinations and from which programs. PHAs must also create policies that outline the course of action when families present multiple verifications from the same or different acceptable Safe Harbor programs. Means-tested federal public assistance programs include: x Temporary Assistance for Needy Families (TANF) (42 U.S.C. 601, et seq.); x Medicaid (42 U.S.C. 1396 et seq.); x Supplemental Nutrition Assistance Program (SNAP) (42 U.S.C. 2011 et seq.); x Earned Income Tax Credit (EITC) (26 U.S.C. 32); x Low-Income Housing Credit (LIHTC) program (26 U.S.C. 42); x Special Supplemental Nutrition Program for Woman, Infants, and Children (WIC) (42 U.S.C. 1786); x Supplemental Security Income (SSI) (42 U.S.C. 1381 et seq.); x Other programs administered by the HUD Secretary; x Other means-tested forms of federal public assistance for which HUD has established a memorandum of understanding; and x Other federal benefit determinations made in other forms of means-tested federal public assistance that the Secretary determines to have comparable reliability and announces through the Federal Register. If the PHA elects to use the annual income determination from one of the above-listed forms of means-tested federal public assistance, then they must obtain the income information by means of a third-party verification. The third-party verification must state the family size, must be for the entire family, and must state the amount of the family’s annual income. The annual income need not be broken down by family member or income type. Annual income includes income earned from assets, therefore when using Safe Harbor to verify a family’s income, PHAs will neither further inquire about a family’s net family assets, nor about the income earned from those assets, except with respect to whether or not the family owns assets that exceed the asset limitation in 24 CFR 5.618. The Safe Harbor documentation will be considered acceptable if any of the following dates fall into the 12-month period prior to the receipt of the documentation by the PHA: x Income determination effective date; x Program administrator’s signature date; 271 7-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 x Family’s signature date; x Report effective date; or x Other report-specific dates that verify the income determination date. The only information that PHAs are permitted to use to determine income under this method is the total income determination made by the federal means-tested program administrator. Other federal programs may provide additional information about income inclusions and exclusions in their award letters; however, these determinations and any other information must not be considered by the PHA. PHAs are not permitted to mix and match Safe Harbor income determinations and other income verifications. If the PHA is unable to obtain Safe Harbor documentation or if the family disputes the other program’s income determination, the PHA must calculate the family’s annual income using traditional methods as outlined in Notice PIH 2023-27 and this chapter. If the PHA uses a Safe Harbor determination to determine the family’s income, the family is obligated to report changes in income that meet the PHA’s reporting requirement and occur after the effective date of the transaction. The amounts of unreimbursed reasonable attendant care expenses and child-care expenses deducted from a family’s annual income, except for when a family is approved for a child-care expense hardship exemption, must still be capped by the amount earned by any family member who is enabled to work as a result of the expense. PHAs are therefore required to obtain third-party verification of the applicable employment income and cap the respective expense deductions accordingly. HACCC Policy When available and applicable, HACCC will not accept other programs’ Safe Harbor determinations of income at annual reexamination to determine the family’s total annual income. HACCC will require third-party verification of all deductions such as the health and medical care expense or child care expense deductions. Further, if the family is eligible for and claims the disability assistance expense or child care expense deductions, where applicable, HACCC will obtain third-party verification of the amount of employment income of the individual(s) enabled to work in order to cap the respective expenses as required. HACCC will not accept other programs’ determinations of income for any new admission or interim reexamination. With the exception of income determinations made under the Low-Income Housing Tax Credit (LIHTC) program, HACCC will not accept Safe Harbor determinations from any of the programs listed above. In order to be acceptable, the income determination must: Be dated within 12 months of the dates listed above; 272 7-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 State the family size Be for the entire family (i.e., the family members listed in the documentation must match the family’s composition in the assisted unit, except for household members); and Must state the amount of the family’s annual income. The determination need not list each source of income individually. If the PHA does not receive any acceptable income determination documentation or is unable to obtain documentation, then the PHA will revert to third-party verification of income for the family. When the PHA uses a Safe Harbor income determination from another program, and the family’s income subsequently changes, the family is required to report the change to HACCC. Depending on when the change occurred, the change may or may not impact HACCC’s calculation of the family’s total annual income. Changes that occur between the time HACCC receives the Safe Harbor documentation and the effective date of the family’s annual reexam will not be considered. If the family has a change in income that occurs after the annual reexam effective date, HACCC will conduct an interim reexam if the change meets the requirements for performing an interim reexamination as outlined in Chapter 11. In this case, HACCC will use third-party verification to verify the change. 7-I.C. STREAMLINED INCOME DETERMINATIONS [24 CFR 960.257(c); Notice PIH 2023-27] HUD permits PHAs to streamline the income determination process for family members with fixed sources of income. While third-party verification of all income sources must be obtained during the intake process and every three years thereafter, in the intervening years, the PHA may determine income from fixed sources by applying a verified cost of living adjustment (COLA) or other inflationary adjustment factor. Streamlining policies are optional. The PHA may, however, obtain third-party verification of all income, regardless of the source. Further, upon request of the family, the PHA must perform third-party verification of all income sources. Fixed sources of income include Social Security and SSI benefits, pensions, annuities, disability or death benefits, and other sources of income subject to a COLA or rate of interest. The determination of fixed income may be streamlined even if the family also receives income from other non-fixed sources. Two streamlining options are available, depending upon the percentage of the family’s income that is received from fixed sources. When 90 percent or more of a family’s unadjusted income is from fixed sources, the PHA may apply the inflationary adjustment factor to the family’s fixed-income sources, provided that the family certifies both that 90 percent or more of their unadjusted income is fixed and that their sources of fixed income have not changed from the previous year. Sources of non-fixed income are not required to be adjusted and must not be adjusted by a COLA, but PHAs may choose to adjust sources of non-fixed income based on third-party verification. PHAs have the discretion to either adjust the non-fixed income or carry over the calculation of non-fixed income from the first year to years two and three. 273 7-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 When less than 90 percent of a family’s unadjusted income consists of fixed income, PHAs may apply a COLA to each of the family’s sources of fixed income. PHAs must determine all other income using standard verification requirements as outlined in Notice PIH 2023-27. HACCC Policy When HACCC does not use a Safe Harbor income determination from a federal assistance program to determine the family’s annual income as outlined above, then PHA will use a streamlined income determinations where applicable. If 90 percent or more of a family’s unadjusted income is from fixed income sources: HACCC will streamline the annual reexamination process by applying the verified inflationary adjustment factor to fixed-income sources. The family will be required to sign a self-certification stating that 90 percent or more of their unadjusted income is fixed income and that their sources of fixed income have not changed from the previous year. HACCC will document in the file how the determination that a source of income was fixed was made. Third-party verification of non-fixed income will be obtained annually regardless of the percentage of family income received from fixed sources. If the family’s sources of fixed income have changed from the previous year, the PHA will obtain third-party verification of any new sources of fixed income. When less than 90 percent of a family’s unadjusted income consists of fixed income: HACCC will apply a COLA to each of the family’s sources of fixed income. All other income will be verified using third-party verification as outlined in Notice PIH 2023-27 and Chapter 7 of this policy. In the following circumstances, regardless of the percentage of income received from fixed sources, HACCC will obtain third-party verification as outlined in Notice PIH 2023-27 and Chapter 7 of this policy: Of all assets when net family assets exceed $50,000; Of all deductions and allowances from annual income; If a family member with a fixed source of income is added; If verification of the COLA or rate of interest is not available; During the intake process and at least once every three years thereafter. 7-I.D. VERIFICATION HIERARCHY [Notice PIH 2023-27] 274 7-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 When the PHA does not use a streamlined determination of income or an income determination from a means-tested federal assistance program, HUD requires the PHA to obtain third-party verification of: x Reported family annual income; x The value of net family assets when the net value exceeds $50,000 (as adjusted annually); x Expenses related to deductions from annual income; and x Other factors that affect the determination of adjusted income. 7-I.B. OVERVIEW OF VERIFICATION REQUIREMENTS HUD’s Verification Hierarchy [Notice PIH 2017-12] HUD mandates the use of the EIV system and offers administrative guidance on the use of other methods to verify family information and specifies the circumstances in which each method will be used. In general HUD requires the PHA to use the most reliable form of verification that is available and to document the reasons when the PHA uses a lesser form of verification. In order of priority, the hierarchy is: x Highest: Level 6: Up-front Income Verification (UIV) using HUD’s Enterprise Income Verification (EIV) system x Highest: Level 5: Up-front Income Verification (UIV) using a non-EIV system x High: Level 4: - Written third-party verification from the source, also known as “family-provided verification” - Or EIV plus self-certification x Medium: Level 3: Written third-party verification form x Medium: Level 2: Oral third-party verification x Low: Level 1: Self-certification (not third-party verification) In order of priority, the forms of verification that the PHA will use are: • Up-front Income Verification (UIV) using HUD’s Enterprise Income Verification x (EIV) system • Up-front Income Verification (UIV) using a non-HUD system • Written Third-Party Verification (may be provided by applicant or participant) • Written Third-party Verification Form 275 7-9 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Oral Third-party Verification • Self-Certification Each of the verification methods is discussed in subsequent sections below. Exhibit 7-1 below contains an excerpt from the notice that provides guidance with respect to how each method may be used. Exhibit 7-1 HUD’s Verification Hierarchy Level Verification Technique Ranking 6 Upfront Income Verification (UIV) using HUD’s Enterprise Income Verification (EIV) system (not available for income verifications of applicants) Highest (Mandatory) 5 Upfront Income Verification (UIV) using non-HUD system Highest (Optional) 4 Written third Party Verification High (Mandatory to supplement EIV- reported income sources and when EIV has no data; Mandatory for non-EIV reported income sources; Mandatory when tenant disputes EIV-reported employment and income information and is unable to provide acceptable documentation to support dispute) 3 Written Third Party Verification Form Medium-Low (Mandatory if written third party verification documents are not available or rejected by the PHA; and when the applicant or tenant is unable to provide acceptable documentation) 2 Oral Third-Party Verification Low (Mandatory if written third party verification is not available) 1 Tenant Declaration Low (Use as a last resort when unable to obtain any type of third- party verification) Requirements for Acceptable Documents HACCC Policy 276 7-10 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Any documents used for verification must be the original (not photocopies) and generally must be dated within 60 days of the date they are provided to the PHA. The documents must not be damaged, altered or in any way illegible. Printouts from web pages are considered original documents. The HACCC staff member must only make a photocopy of an original document. If an original document is not available, HACCC staff must review secondary documentation to authenticate the copy. Any family self-certifications must be made in a format acceptable to the PHA and must be signed by the family member whose information or status is being verified. File Documentation The PHA must document in the file how the figures used in income and rent calculations were determined. All verification attempts, information obtained, and decisions reached during the verification process will be recorded in the family’s file in sufficient detail to demonstrate that the PHA has followed all of the verification policies set forth in this plan. The record should be sufficient to enable a staff member or HUD reviewer to understand the process followed and conclusions reached. HACCC Policy The PHA will document, in the family file, the following: • Reported family annual income • Value of assets • Expenses related to deductions from annual income • Other factors influencing adjusted income When the PHA is unable to obtain third-party verification, the PHA will document in the family file the reason that third-party verification was not available [24 CFR 982.516(a)(2); Notice PIH 2017-12]. 7-I. E. LEVEL 5 AND 6 VERIFICATION:C. UP-FRONT INCOME VERIFICATION (UIV) Up-front income verification (UIV) refers to the PHA’s use of the verification tools available from independent sources that maintain computerized information about earnings and benefits for a number of individuals. PHAs may use UIV sources before or during a family reexamination.. UIV will be used to the extent that these systems are available to the PHA. There may be legitimate differences between the information provided by the family and UIV- generated information. If the family disputes the accuracy of UIV data, no adverse action can be taken until the PHA has independently verified the UIV information and the family has been granted 277 7-11 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 an opportunity to contest any adverse findings through the informal review/hearing process of the PHA. See Chapter 6 for the PHA’s policy on the use of UIV/EIV to project annual income. Upfront Income Verification Using HUD’s Enterprise Income Verification (EIV) System (Mandatory) PHAs must use HUD’s EIV system in its entirety as a third-party source to verify tenant employment and income information during annual and streamlined mandatory reexaminations or recertifications of family composition and income in accordance with 24 CFR 5.236 and Notice PIH 2034- 27administrative guidance issued by HUD.. The HUD’s EIV system contains data showing earned income, unemployment benefits, social security benefits, and SSI benefits for participant families. The following policies apply to the use of HUD’s EIV system. EIV Income and IVT Reports PHAs are required to obtain an EIV Income and IVT report for each family any time the PHA conducts an annual reexamination. However, PHAs are not required to use the EIV Income and IVT reports: x At annual reexamination if the PHA used Safe Harbor verification from another means-test federal assistance program to determine the family’s income; or x During any interim reexaminations. The EIV Income and IVT Reports are also not available for program applicants at admission. When required to use the EIV Income Report, in order for the report to be considered current, the PHA must pull the report within 120 days of the effective date of the annual reexamination. The EIV Income Report may be used to verify and calculate income at annual reexamination if the family self-certifies that the amount is accurate and representative of current income. The family must be provided with the information in EIV. HACCC Policy Except for when Safe Harbor verification from another means-tested federal assistance program is used to determine the family’s annual income, HACCC will obtain EIV income and IVT reports for all annual reexaminations for all families on a monthly basis. HACCC will ensure that all EIV Income Reports are pulled within 120 days of the effective date of the annual reexamination. 278 7-12 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Income and IVT reports will only be used for interim reexaminations as necessary. For example, EIV may be used to verify that families claiming zero income are not receiving income from any sources listed in EIV. Income and IVT reports will be retained in participant files with the applicable annual documents or interim reexamination documents (if applicable) for the duration of the family’s participation. When HACCC determines through EIV reports and third-party verification that a family has concealed or under-reported income, corrective action will be taken pursuant to the policies in Chapter 14, Program Integrity. New Hires Report [Notice PIH 2023-27] The New Hires Report identifies participant families who have new employment within the last six months. The report is updated monthly. PHAs must review this information at annual reexamination except when the PHA uses Safe Harbor verification from another means-tested federal assistance program to determine the family’s income. PHAs that do not require families to undergo interim reexaminations for earned income increases after an interim decrease are not required to review this report between a family’s annual reexamination. If the PHA requires an interim for increases in earned income after an interim decrease, then the PHA must review the report quarterly after the family’s interim decrease. HACCC Policy In accordance with HACCC policies in Chapter 11, HACCC does not process interim reexaminations for families who have increases in earned income. Except for instances in which HACCC uses Safe Harbor income determinations to determine a family’s annual income, HACCC will only review the New Hires Report at annual reexamination. No Income Reported by HHS or SSA Report This report is a tool for PHAs to identify participants who passed the SSA identity test, but no income information was reported by either HHS or SSA records. This scenario does not mean that the participant does not have any income. PHAs obtain written, third-party verification of any income reported by the participant. The PHA must identify in its policies and procedures when this report will be pulled [Notice PIH 2023-27]. HACCC Policy HACCC will generate the No Income Reported by HHS or SSA Report quarterly and will retain the report. HACCC will re-verify the status of participants identified on the report quarterly. Based on the information provided by the family and in EIV, HACCC may require that family 279 7-13 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 members provide verifications or sign release forms in order to obtain additional verification. When HACCC determines through this report and third-party verification that a family has concealed or under-reported income, corrective action will be taken pursuant to the policies in Chapter 14, Program Integrity The data shown on income reports is updated quarterly. Data may be between 3 and 6 months old at the time reports are generated. HACCC Policy The PHA will obtain income reports for annual reexaminations on a monthly basis. Reports will be generated as part of the regular reexamination process. Income reports will be compared to family-provided information as part of the annual reexamination process. Income reports may be used in the calculation of annual income, as described in Chapter 6-I.C. Income reports may also be used to meet the regulatory requirement for third party verification, as described above. Policies for resolving discrepancies between income reports and family-provided information will be resolved as described in Chapter 6-I.C. and in this chapter. Income reports will be used in interim reexaminations to identify any discrepancies between reported income and income shown in the EIV system, and as necessary to verify and calculate earned income, unemployment benefits, Social Security and/or SSI benefits. EIV will also be used to verify that families claiming zero income are not receiving income from any of these sources. Income reports will be retained in participant files with the applicable annual or interim reexamination documents. When the PHA determines through income reports and third-party verification that a family has concealed or under-reported income, corrective action will be taken pursuant to the policies in Chapter 14, Program Integrity. EIV Identity Verification Report The EIV system verifies tenant identities against SSA records. These records are compared to PIC HUD data for a match on social security number, name, and date of birth. PHAs are required to use EIV’s Identity Verification Report on a monthly basis to improve the availability of income information in EIV [Notice PIH 2017-1220233-27]. When identity verification for a participant fails, a message will be displayed within the EIV system and no income information will be displayed. HACCC Policy 280 7-14 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The PHAHACCC will identify participants whose identity verification has failed by reviewing EIV’s Identity Verification Report on a monthly basis. The PHAHACCC will attempt to resolve PIC/SSA discrepancies by obtaining appropriate documentation from the participant. When the PHA determines that discrepancies exist as a result ofdue to HACCCPHA errors such as spelling errors or incorrect birth dates, the errorsit will will be corrected the errors promptly. Deceased Tenants Reports [Notice PIH 2012-4 and Notice PIH 2023-27] The Deceased Tenant Report identifies residents that have been reported by the SSA as deceased. The PHA is required to review the report at least quarterly. HACCC Policy HACCC will review the Deceased Tenants Report on a monthly basis. When the Deceased Tenants Report identifies an individual as being deceased, PHAs must immediately send a letter to the head of household or emergency contact person (if the head of household is deceased and there is no other adult household member) to confirm the death of the listed household member. The PHA must notify the owner in writing of the deceased head of household. PHAs may list the EOP as the last day of the month in which the death occurred. The landlord is entitled to receive the full HAP amount for the month in which the tenant death occurred. HACCCPolicy HACCC will list the EOP as the last day of the month in which the death occurred. The landlord is entitled to receive the full HAP amount for the month in which the tenant death occurred. When the only remaining household member is the live-in aide, the live-in aide is not entitled or eligible for any rental assistance or continued occupancy. The PHA may not designate the live-in aide as the new head of household or change the relation code on the Form HUD-50058. Other EIV Reports [Notice PIH 2023-27] The PHA is required to review the Multiple Subsidy Report at least quarterly and the Failed EIV Pre-Screening and Failed Verification (Failed SSA Identity Test) reports at least monthly. Upfront Income Verification Using Non-HUD Systems (Optional) HUD encourages PHAs to utilize other upfront verification sources such as the Work Number and web-based state benefits systems. In addition to mandatory use of the EIV system, HUD encourages PHAs to utilize other upfront verification sources. 281 7-15 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy The PHAHACCC will inform all applicants and participants of its use of the following UIV resources during the admission and reexamination process: • HUD’s EIV system 7-I.DF. LEVEL 4 VERIFICATION [Notice PIH 2023-27]Fixed Income Sources of Income HUD identifies two types of Level 4 verification: written-third party verification from the source and EIV + self-certification. EIV +_Self-Certification EIV may be used as written third-party verification and may be used to calculate income if the family agrees with the information in EIV and self-certifies that the amount is accurate and representative of current income. This practice is known as EIV + self-certification. When calculating income using this method, the PHA may use its discretion to determine which method of calculation is reasonable: the last four quarters combined or an average of any number of quarters. The family must be provided with the information from EIV. HACCC Policy At annual reexamination, if HACCC is unable to use a determination of income from a means-tested federal assistance program and if there are no reported changes to an income source, HACCC will use EIV + self-certification as verification of employment income, provided the family agrees with the amounts listed in EIV. HACCC will use an average of the last two quarters of income listed in EIV to determine income from employment. HACCC will provide the family with the information in EIV. The family will be required to sign a self-certification stating that the amount listed in EIV is accurate and representative of current income. If the family disagrees with the amount in EIV, the amount is not reflective of current income, or if less than two quarters are available in EIV, HACCC will use written third-party verification from the source as outlined below. HACCC will not use this method of verification at new admission since EIV is not available for applicant families or at interim reexamination since the income information in EIV is not current. Written Third-Party Verification from the Source Written, third-party verification from the source is also known as “tenant-provided verification.” In order to qualify as written-third party verification from the source, the documents must be original or authentic and (generally) dated within 120 days of the date received by the PHA. For fixed- income sources, a statement dated within the appropriate benefit year is acceptable documentation. Documents may be supplied by the family or received from a third-party source. Examples of acceptable tenant-provided documents include, but are not limited to pay stubs, payroll summary reports, employer notice or letters of hire and termination, SSA benefit verification letters, bank statements, child support payment stubs, welfare benefit letters and/or printouts, and unemployment monetary benefit notices. Income tax returns with corresponding 282 7-16 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 official tax forms and schedules attached and including third-party receipt of transmission for income tax return filed (i.e., tax preparer’s transmittal receipt, summary of transmittal from online source, etc.) are an acceptable form of written, third-party verification. The PHA is required to obtain, at minimum, two current and consecutive pay stubs when calculating income using third-party verification from the source. For new income sources or when two pay stubs are not available, the PHA should determine income based on the information from a traditional written, third-party verification form or the best available information. When the family disputes EIV-reported employment income, the PHA uses written third-party verification. When verification of assets is required, PHAs are required to obtain a minimum of one statement that reflects the current balance of banking/financial accounts. HACCC Policy In general, HACCC will use third-party verification from the source in the following circumstances: - At annual reexamination when EIV + self-certification is not used; - For all new admissions; and - For all interim reexaminations. HACCC will not use this method if HACCC is able to use an income determination from a means-tested federal assistance program or if HACCC uses EIV + self-certification as outlined above. In general, third-party documents provided by the family or the source must be dated within 120 days of the date received by HACCC. However, for fixed-income sources, a statement dated within the appropriate benefit year is acceptable documentation. HACCC may reject documentation provided by the family if the document is not an original, if the document appears to be forged, or if the document is altered, mutilated, or illegible. If HACCC determines that third-party documents provided by the family are not acceptable, HACCC will explain the reason to the family and request additional documentation from the family or will use a lower form of verification such as a written third-party verification form. When verification of assets held by a banking or financial institution is required, HACCC will obtain one statement that reflects the current balance of the account. When pay stubs are used, HACCC will require the family to provide the two most current, consecutive pay stubs. At HACCC’s discretion, if additional paystubs are needed due to the family’s circumstances (e.g., sporadic income, fluctuating schedule, etc.), HACCC may request additional paystubs or a payroll record. 283 7-17 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 7-I.G. LEVEL 3 VERIFICATION: WRITTEN, THIRD-PARTY FORM [Notice PIH 2023 -27] This type of verification is a form developed by the PHA and used uniformly for all families when needed to collect information from a third-party source. This is known as “traditional third-party verification.” PHAs send a PHA-developed form directly to the third-party source by mail, fax, or email and the source completes the form by hand (in writing or typeset). The PHA may use this method when higher forms are unavailable or are rejected by the PHA or when the family is unable to provide acceptable verification. The PHA may skip this level of verification and may instead substitute oral third-party verification before moving to self- certification. HACCC Policy Typically, HACCC will attempt to send written third-party verification forms to the verification source whenever higher forms of verification are unavailable. However, on a case-by-case basis, HACCC may choose to obtain oral third-party verification without first attempting, and in lieu of, a written-third party verification form. For any family member with a fixed source of income, HACCC shall determine that family member’s income by means of a streamlined income determination. A streamlined income determination must be conducted by applying, for each fixed-income source, the verified cost of living adjustment (COLA) or current rate of interest to the previously verified or adjusted income amount. (1) Family member with a fixed source of income is defined as a family member whose income includes periodic payments at reasonably predictable levels from one or more of the following sources: (i) Social Security, Supplemental Security Income, Supplemental Disability Insurance; (ii) Federal, state, local, or private pension plans; (iii)Annuities or other retirement benefit programs, insurance policies, disability or death benefits, or other similar types of periodic receipts; or (iv) Any other source of income subject to adjustment by a verifiable COLA or current rate of interest. (2) HACCC shall use a COLA or current rate of interest specific to the fixed source of income in order to adjust the income amount. HACCC shall verify the appropriate COLA or current rate of interest from a public source or through tenant-provided, third party- generated documentation. If no such verification is available, then HACCC shall obtain third-party verification of income amounts in order to calculate the change in income for the source. Application of the COLA will take effect for annual reexaminations due 60 days after the receipt of the notification of COLA amount so that completed reexaminations do not require further revision. For example, January 1, COLAs would be implemented on March 1 Annuals. 284 7-18 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (3) For any family member whose income is determined pursuant to a streamlined income determination, HACCC shall obtain third-party verification of all income amounts every 3 years. 7-I.EH. ORAL THIRD-PARTY WRITTEN AND ORAL VERIFICATION [Notice PIH 2023-27 HUD’s current verification hierarchy defines two types of written third-party verification. The more preferable form, “written third-party verification,” consists of an original document generated by a third-party source, which may be received directly from a third-party source or provided to the PHA by the family. If written third-party verification is not available, the PHA must attempt to obtain a “written third-party verification form.” This is a standardized form used to collect information from a third party. Written Third-Party Verification [Notice PIH 2017-12] Written third-party verification documents must be original and authentic and may be supplied by the family or received from a third-party source. Examples of acceptable tenant-provided documents include, but are not limited to: pay stubs, payroll summary reports, employer notice or letters of hire and termination, SSA benefit verification letters, bank statements, child support payment stubs, welfare benefit letters and/or printouts, and unemployment monetary benefit notices. The PHA is required to obtain, at minimum, two current and consecutive pay stubs for determining annual income from wages. The PHA may reject documentation provided by the family if the document is not an original, if the document appears to be forged, or if the document is altered, mutilated, or illegible. HACCC Policy Third-party documents provided by the family must be dated within 60 days of the PHA request date. Documents older than 60 days (from the PHA interview/determination or request date) is acceptable for confirming effective dates of income. If the PHA determines that third-party documents provided by the family are not acceptable, the PHA will explain the reason to the family and request additional documentation. As verification of earned income, the PHA will require the family to provide a minimum of the two most current, consecutive pay stubs. If additional pay stubs are submitted, HACCC will utilize up to four consecutive paystubs provided to calculate anticipated income for the next annual recertification. Where a participant or applicant has recently commenced employment, HACCC will utilize however many pay stubs have been received to date and attempt to supplement them with written verification from the employer. At the HACCC’s discretion, if additional paystubs are needed due to the family’s circumstances (e.g., sporadic 285 7-19 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 income, fluctuating schedule, etc.), the PHA may request additional paystubs or a payroll record. Where an employer fails to respond to a request for verification of wages, HACCC shall utilizes The Work Number to verify wages. The Work Number shall only be utilized when there is a lack of pay stubs and/or employment verification available to HACCC. HACCC will make two attempts to obtain third-party documents provided by the family before attempting other methods of verification. Written Third-Party Verification Form When upfront verification is not available and the family is unable to provide written third-party documents, the PHA must request a written third-party verification form. HUD’s position is that this traditional third-party verification method presents administrative burdens and risks which may be reduced through the use of family-provided third-party documents. PHAs may mail, fax, or e-mail third-party written verification form requests to third-party sources. HACCC Policy HACCC will send third-party verification forms directly to the third party. Third-party verification forms will be sent when third-party verification documents are unavailable or are rejected by the PHA. HACCC will make one attempt to obtain verification forms from a third-party before utilizing oral third-party verification method. Oral Third-Party Verification [Notice PIH 2017-12] For third-party oral verification, PHAs contact sources, identified by UIV techniques or by the family, by telephone or in person. Oral third-party verification is mandatory if neither form of written third-party verification is available. Third-party oral verification may be used when requests for written third-party verification forms have not been returned within a reasonable time—e.g., 10 business days. PHAs mustshould document in the file the date and time of the telephone call or visit, the name of the person contacted, the telephone number, as well as the information confirmed. The PHA may skip this level of verification if they attempted written third-party verification via a form and the source did not respond and move directly to self-certification. 286 7-20 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy In general, HACCC will attempt to obtain written third-party verification via a form from the verification source. If written third-party verification forms are not returned within 10 business days, the PHA will accept self-certification from the family without attempting to obtain oral third-party verification. However, if HACCC chooses to obtain oral third-party verification, HACCC will document in the file the date and time of the telephone call or visit, the name of the person contacted and the telephone number, as well as the information confirmed. In collecting third-party oral verification, PHA staff will record in the family’s file the name and title of the person contacted, the date and time of the conversation (or attempt), the telephone number used, and the facts provided. When any source responds verbally to the initial written request for verification the PHA will accept the verbal response as oral verification but will also request that the source complete and return any verification forms that were provided. HACCC will make one attempt at oral third-party before utilizing self-certification verification method. When Third-Party Verification is Not Required [Notice PIH 2023-2717-12] Third-party verification may not be available in all situations. HUD has acknowledged that it may not be cost-effective or reasonable to obtain third-party verification of income, assets, or expenses when these items would have a minimal impact on the family’s total tenant payment. HACCC Policy If the family cannot provide original documents, the PHA will pay the service charge required to obtain third-party verification, unless it is not cost effective in which case a self- certification will be acceptable as the only means of verification. The cost of verification will not be passed on to the family. The cost of postage and envelopes to obtain third-party verification of income, assets, and expenses is not an unreasonable cost [VG, p. 18]. Primary Documents Third-party verification is not required when legal documents are the primary source, such as a birth certificate or other legal documentation of birth. Imputed Assets 287 7-21 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HUD permits PHAs to accept a self-certification from a family as verification of assets disposed of for less than fair market value [HCV GB, p. 5-28]. HACCC Policy The PHA will accept a self-certification from a family as verification of assets disposed of for less than fair market value. 7-I.I. LEVEL 1: NON-THIRD-PARTY VERIFICATION TECHNIQUE: SELF- CERTIFICATION [Notice PIH 2023-27]F. SELF-CERTIFICATION Non-third-party verification consists of a signed statement of reported income and/or expenses. This verification method should be used as a last resort when the PHA has not been successful in obtaining information via all other required verification techniques. Self-certification, or “tenant declaration,” is used as a last resort when the PHA is unable to obtain third-party verificationhowever, is an acceptable form of verification when:. x A source of income is fully excluded x Net family assets total $50,000 or less and the PHA has adopted a policy to accept self certification at annual recertification, when applicable x The family declares that they do not have any present ownership in any real property x A family states that they have non-recurring income that will not be repeated in the coming year; and/or x The PHA has adopted a policy to implement streamlined annual recertifications for fixed sources of income (See Chapter 11) When the PHA was required to obtain third-party verification but instead relies on a tenant declaration for verification of income, assets, or expenses, the family’s file must be documented to explain why third-party verification was not available. HACCC Policy When information cannot be verified by a third party or by review of documents, family members will be required to submit self-certifications attesting to the accuracy of the information they have provided to the PHA. The PHA may require a family to certify that a family member does not receive a particular type of income or benefit. The self-certification must be made in a format acceptable to the PHA and must be signed by the family member whose information or status is being verified. All self-certifications will include the following language: 288 7-22 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 “I/We, the undersigned, certify under penalty of perjury that the information provided here is true and correct, to the best of my knowledge and recollection. WARNING: Anyone who knowingly submits a false claim or knowingly makes a false statement is subject to criminal and/or civil penalties, including confinement for up to five years, fines, and civil and administrative penalties (18 U.S.C. 287, 1001, 1010, 1012; 31 U.S.C. 3279, 3802).” 289 7-23 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART II: VERIFYING FAMILY INFORMATION 7-II.A. VERIFICATION OF LEGAL IDENTITY HACCC Policy The PHA will require families to furnish verification of legal identity for each household member. Verification of Legal Identity for Adults Verification of Legal Identity for Children Certificate of birth, naturalization papers Certificate of birth Adoption papers Custody agreement Health and Human Services ID Certified school records or report card Student Identification card Clinic, doctor or hospital record Day care or nursery school record Church issued baptismal certificate Current, valid driver's license or Department of Motor Vehicles identification card US Armed Services identification card or draft record or U.S. military discharge (DD 214) Current U.S. passport or passport card Current government employer identification card with picture If a document submitted by a family is illegible for any reason or otherwise questionable, more than one of these documents may be required. If none of these documents can be provided and at the PHA’s discretion, a third party who knows the person may attest to the person’s identity. The certification must be provided in a format acceptable to the PHA and must be signed by the family member whose information or status is being verified. Legal identity will be verified for all applicants at the time of eligibility determination and in cases where the PHA has reason to doubt the identity of a person representing themselves to be a participant. 7-II.B. SOCIAL SECURITY NUMBERS [24 CFR 5.216, Notice PIH 2023-2712-10] The family must provide documentation of a valid social security number (SSN) for each member of the household, with the exception of individuals who do not contend eligible immigration status. 290 7-24 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Exemptions also include existing program participants who were at least 62 years of age as of January 31, 2010, and had not previously disclosed an SSN. Note that an individual who previously declared to have eligible immigration status may not change their declaration for the purpose of avoiding compliance with the SSN disclosure and documentation requirements or penalties associated with noncompliance with these requirements. Nor may the head of household opt to remove a household member from the family composition for this purpose. The PHA must accept the following documentation as acceptable evidence of the social security number: An original SSN card issued by the Social Security Administration (SSA) An original SSA-issued document, which contains the name and SSN of the individual An original document issued by a federal, state, or local government agency, which contains the name and SSN of the individual While PHAs must attempt to gather third-party verification of SSNs prior to admission as listed above, PHAs also have the option of accepting a self-certification and a third-party document (such as a bank statement, utility or cell phone bill, or benefit letter) with the applicant’s name printed on it to satisfy the SSN disclosure requirement if the PHA has exhausted all other attempts to obtain the required documentation. If verifying an individual’s SSN using this method, the PHA must document why the other SSN documentation was not available. If the tenant’s SSN becomes verified in EIV, then no further verification is required. If the tenant’s SSN fails the SSA identity match, then the PHA must obtain a valid SSN card issued by the SSA or an original document issued by a federal or state government agency that contains the name of the individual and the SSN of the individual, along with other identifying information of the individual. The tenant’s assistance must be terminated if they fail to provide the required documentation. HACCC Policy HACCC will verify an individual’s SSN in the situations described above using the method described above as a last resort when no other forms of verification of the individual’s SSN are available. The PHA may only reject documentation of an SSN provided by an applicant or participant if the document is not an original document or if the original document has been altered, mutilated, is illegible, or appears to be forged. HACCC Policy The PHA will explain to the applicant or participant the reasons the document is not acceptable and request that the individual obtain and submit acceptable documentation of the SSN to the PHA within 90 days. 291 7-25 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 In the case of Moderate Rehabilitation Single Room Occupancy (SRO) individuals, the required documentation must be provided within 90 calendar days from the date of admission into the program. The PHA must grant one additional 90-day extension if it determines that the applicant’s failure to comply was due to circumstances that were beyond the applicant’s control and could not have been reasonably foreseen. HACCC Policy The PHA will grant one additional 90-day extension if needed for reasons beyond the participant’s control such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency. If the individual fails to comply with SSN disclosure and documentation requirements upon expiration of the provided time period, the PHA will terminate the individual’s assistance. When a participant requests to add a new household member who is at least 6 years of age, or who is under the age of 6 and has an SSN, the participant must provide the complete and accurate SSN assigned to each new member at the time of reexamination or recertification, in addition to the documentation required to verify it. The PHA may not add the new household member until such documentation is provided. When a participant has a child under 6 or requests to add a new household member who is under the age of 6 and has not been assigned an SSN, the participant must provide the SSN assigned to each new child and the required documentation within 90 calendar days of the child being added to the household or date of lease up, whichever is later. A 90-day extension will be granted if the PHA determines that the participant’s failure to comply was due to unforeseen circumstances and was outside of the participant’s control. During the period the PHA is awaiting documentation of the SSN, the child will be counted as part of the assisted household. HACCC Policy The PHA will grant one additional 90-day extension if needed for reasons beyond the participant’s control such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency. Social security numbers must be verified only once during continuously-assisted occupancy. HACCC Policy The PHA will verify each disclosed SSN by: • Obtaining documentation from applicants and participants that is acceptable as evidence of social security numbers • Making a copy of the original documentation submitted, returning it to the individual, and retaining a copy in the file folder 292 7-26 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Once the individual’s verification status is classified as “verified,” the PHA may, at its discretion, remove and destroy copies of documentation accepted as evidence of social security numbers. The retention of the EIV Summary Report or Income Report is adequate documentation of an individual’s SSN. HACCC Policy Once an individual’s status is classified as “verified” in HUD’s EIV system, the PHA will not remove and destroy copies of documentation accepted as evidence of social security numbers. 7-II.C. DOCUMENTATION OF AGE A birth certificate or other official record of birth is the preferred form of age verification for all family members. For elderly family members an original document that provides evidence of the receipt of social security retirement benefits is acceptable. HACCC Policy If an official record of birth or evidence of social security retirement benefits cannot be provided, the PHA will require the family to submit other documents that support the reported age of the family member (e.g., school records, driver's license if birth year is recorded) and to provide a self-certification. Age must be verified only once during continuously-assisted occupancy. 7-II.D. FAMILY RELATIONSHIPS Applicants and program participants are required to identify the relationship of each household member to the head of household. Definitions of the primary household relationships are provided in the Eligibility chapter. HACCC Policy Family relationships are verified only to the extent necessary to determine a family’s eligibility and level of assistance. Certification by the head of household normally is sufficient verification of family relationships. Marriage HACCC Policy Certification by the head of household is normally sufficient verification. If the PHA has reasonable doubts about a marital relationship, the PHA will require the family to document the marriage. 293 7-27 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 A marriage certificate generally is required to verify that a couple is married. Separation or Divorce HACCC Policy Certification by the head of household is normally sufficient verification. If the PHA has reasonable doubts about a separation or divorce, the PHA will require the family to provide documentation of the divorce or separation. A certified copy of a divorce decree, signed by a court officer, is required to document that a couple is divorced. A copy of a court-ordered maintenance or other court record is required to document a separation. If no court document is available, documentation from a community-based agency will be accepted. Absence of Adult Member HACCC Policy If an adult member who was formerly a member of the household is reported to be permanently absent, the family must provide evidence to support that the person is no longer a member of the family (e.g., documentation of another address at which the person resides such as a lease or utility bill), if HACCC so requests. Foster Children and Foster Adults HACCC Policy Third-party verification from the state or local government agency responsible for the placement of the individual with the family is required. 7-II.E. VERIFICATION OF STUDENT STATUS General Requirements HACCC Policy The PHA requires families to provide information about the student status of all students who are 18 years of age or older. This information will be verified only if: • The family reports full-time student status for an adult other than the head, spouse, or cohead. 294 7-28 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • The family reports childcare expenses to enable a family member to further their education. • The family includes a student enrolled in an institution of higher education. Restrictions on Assistance to Students Enrolled in Institutions of Higher Education This section applies only to students who are seeking assistance on their own, separately from their parents. It does not apply to students residing with parents who are seeking or receiving HCV assistance. HACCC Policy In accordance with the verification hierarchy described in section 7-1.B, the PHA will determine whether the student is exempt from the restrictions in 24 CFR 5.612 by verifying any one of the following exemption criteria: • The student is enrolled at an educational institution that does not meet the definition of institution of higher education in the Higher Education Act of 1965 (see section Exhibit 3-2). • The student is at least 24 years old. • The student is a veteran, as defined in section 3-II.E. The student is married. • The student has at least one dependent child, as defined in section 3-II.E. • The student is a person with disabilities, as defined in section 3-II.E, and was receiving assistance prior to November 30, 2005. If the PHA cannot verify at least one of these exemption criteria, the PHA will conclude that the student is subject to the restrictions on assistance at 24 CFR 5.612. In addition to verifying the student’s income eligibility, the PHA will then proceed to verify either the student’s parents’ income eligibility (see section 7-III.J) or the student’s independence from their parents (see below). Independent Student HACCC Policy The PHA will verify a student’s independence from their parents to determine that the student’s parents’ income is not relevant for determining the student’s eligibility by doing all of the following: • Either reviewing and verifying previous address information to determine whether the student has established a household separate from their parents for at least one year or reviewing and verifying documentation relevant to determining whether the student meets the U.S. Department of Education’s definition of independent student (see section 3-II.E). 295 7-29 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Reviewing the student's prior year income tax returns to verify the student is independent or verifying the student meets the U.S. Department of Education’s definition of independent student (see section 3-II.E).Requesting and obtaining written certification directly from the student’s parents identifying the amount of support they will be providing to the student, even if the amount of support is $0, except in cases in which the PHA determines that the student is a vulnerable youth (see section 3-II.E) 7-II.F. DOCUMENTATION OF DISABILITY The PHA must verify the existence of a disability in order to allow certain income disallowances and deductions from income. The PHA is not permitted to inquire about the nature or extent of a person’s disability [24 CFR 100.202(c)]. The PHA may not inquire about a person’s diagnosis or details of treatment for a disability or medical condition. If the PHA receives a verification document that provides such information, the PHA will not place this information in the tenant file. Under no circumstances will the PHA request a participant’s medical record(s). For more information on health care privacy laws, see the Department of Health and Human Services’ website at http://www.hhs.gov/ocr/privacy/. The above cited regulation does not prohibit the following inquiries, provided these inquiries are made of all applicants, whether or not they are persons with disabilities [VG, p. 24]: x Inquiry into an applicant’s ability to meet the requirements of ownership or tenancy x Inquiry to determine whether an applicant is qualified for a dwelling available only to persons with disabilities or to persons with a particular type of disability x Inquiry to determine whether an applicant for a dwelling is qualified for a priority available to persons with disabilities or to persons with a particular type of disability x Inquiring whether an applicant for a dwelling is a current illegal abuser or addict of a controlled substance x Inquiring whether an applicant has been convicted of the illegal manufacture or distribution of a controlled substance Family Members Receiving SSA Disability Benefits Verification of the receipt of disability benefits from the Social Security Administration (SSA) is sufficient verification of disability for the purpose of qualifying for waiting list preferences (if applicable) or certain income disallowances and deductions [VG, p. 23]. HACCC Policy For family members claiming disability who receive disability benefits from the SSA, the PHA will attempt to obtain information about disability benefits through the HUD Enterprise Income Verification (EIV) system. If documentation from HUD’s EIV System is not 296 7-30 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 available, the PHA will request a current (dated within the last 60 days) SSA benefit verification letter from each family member claiming disability status. If the family is unable to provide the document(s), the PHA will ask the family to request a benefit verification letter by either calling SSA at 1-800-772-1213, or by requesting it from www.ssa.gov. Once the applicant or participant receives the benefit verification letter, they will be required to provide it to the PHA. Family Members Not Receiving SSA Disability Benefits Receipt of veteran’s disability benefits, worker’s compensation, or other non-SSA benefits based on the individual’s claimed disability are not sufficient verification that the individual meets HUD’s definition of disability in 24 CFR 5.403. HACCC Policy For family members claiming disability who do not receive disability benefits from the SSA, a knowledgeable professional must provide third-party verification that the family member meets the HUD definition of disability. See the Eligibility chapter for the HUD definition of disability. The knowledgeable professional will verify whether the family member does or does not meet the HUD definition. 7-II.G. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5.508] Overview Housing assistance is not available to persons who are not citizens, nationals, or eligible immigrants. Prorated assistance is provided for "mixed families" containing both eligible and ineligible persons. A detailed discussion of eligibility requirements is in the Eligibility chapter. This verifications chapter discusses HUD and PHA verification requirements related to citizenship status. The family must provide a certification that identifies each family member as a U.S. citizen, a U.S. national, an eligible noncitizen or an ineligible noncitizen and submit the documents discussed below for each family member. Once eligibility to receive assistance has been verified for an individual it need not be collected or verified again during continuously-assisted occupancy. [24 CFR 5.508(g)(5)] U.S. Citizens and Nationals HUD requires a declaration for each family member who claims to be a U.S. citizen or national. The declaration must be signed personally by any family member 18 or older and by a guardian for minors. The PHA may request verification of the declaration by requiring presentation of a birth certificate, United States passport or other appropriate documentation. HACCC Policy 297 7-31 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Family members who claim U.S. 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 Immigrants Documents Required All family members claiming eligible immigration status must declare their status in the same manner as U.S. citizens and nationals. The documentation required for eligible noncitizens varies depending upon factors such as the date the person entered the U.S., the conditions under which eligible immigration status has been granted, age, and the date on which the family began receiving HUD-funded assistance. Exhibit 7-1 at the end of this chapter summarizes documents family members must provide. PHA Verification [HCV GB, pp. 5-3 and 5-7] For family members aged 62 or older who claim to be eligible immigrants, proof of age is required in the manner described in 7-II.C. of this plan. No further verification of eligible immigration status is required. For family members under the age of 62 who claim to be eligible immigrants, the PHA must verify immigration status with the United States Citizenship and Immigration Services (USCIS). The PHA will follow all USCIS protocols for verification of eligible immigration status. 7-II.H. VERIFICATION OF PREFERENCE STATUS The PHA must verify any preferences claimed by an applicant that determined placement on the waiting list. HACCC Policy The PHA must verify any preferences claimed by an applicant. 298 7-32 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART III: VERIFYING INCOME AND ASSETS Chapter 6, Part I of this plan describes in detail the types of income that are included and excluded and how assets and income from assets are handled. Any assets and income reported by the family must be verified. This part provides PHA policies that supplement the general verification procedures specified in Part I of this chapter. HACCC Policy The following policies do not apply when the PHA uses a safe harbor income determination from a means-tested federal assistance program. 7-III.A. EARNED INCOME Tips HACCC Policy Unless tip income is included in a family member’s W-2 by the employer, or in UIV verification sources, persons who work in industries where tips are standard will be required to sign a certified estimate of tips received for the prior year and tips anticipated to be received in the coming year. Wages HACCC Policy FWhen HACCC requires third-party verification of wages, for wages other than tips, the family must provide originals of the two most current, consecutive pay stubs. If additional pay stubs are submitted, the PHAHACCC will only utilize consecutive paystubs provided to calculate anticipated income for the next annual recertification. 7-III.B. BUSINESS AND SELF EMPLOYMENT INCOME The PHA must obtain written, third-party verification when the income type is not available in EIV. This includes income from self-employment. HACCC Policy Business owners and self-employed persons will be required to provide all available income information as well as a self- certification of projected income that they expect to receive over the next 12 months. If a family member has been self-employed for less than three (3) months, the PHA will accept a Self-Certification projecting the income from self-employment that the family 299 7-33 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 expects to receive over the next 12 months. The family must schedule an Interim recertification in three (3) months if they are not able to provide documents other than the Self-Certification. If the family is able to provide documentation of income/ expenses, (copies of gross receipts, bank statements, cash receipts, payment logs, etc.) and those documents support the Self- Certified projection, the family is not required to schedule an Interim Recertification in three months. Interim Recertification would be required if the only verification of earnings provided was Self-Certification. If a family member has been self-employed for three (3) months to twelve (12) months, the PHA HACCC will accept a Self-Certification projecting the income from self-employment that the family expects to receive over the next 12 months along with documentation of income/ expenses (copies of gross receipts, bank statements, cash receipts, payment logs etc.). If available, the family must provide schedules completed for filing federal and local taxes in the preceding year (Schedule C). If a family member has been self-employed for twelve (12) or more months, the PHAHACCC will accept a Self-Certification projecting the income from self-employment that the family expects to receive over the next 12 months along with documentation of income/ expenses (copies of gross receipts, bank statements, cash receipts, payment logs etc.) along with schedules completed for filing federal and local taxes in the preceding year (Schedule C). At any reexamination the PHAHACCC may request documents that support submitted financial statements such as manifests, appointment books, cash books, or bank statements. For self-employed individuals who claim they do not to file tax returns, HACCC will obtain a completed copy of IRS Form 4506-T to verify that no return has been filed. For those employed in “gig employment” (i.e., those in formal agreements with on-demand companies such as Uber, Lyft, or DoorDash), HACCC will provide a format for the individual to declare their income and expenses. HACCC will also review the printed statement of monthly income from the applicable app for all hours worked and pay received as well as the Schedule C of the individual’s tax return and the corresponding IRS Form 1099 or 1099k HACCC may request any additional documentation that supports calculations found in tax returns. 7-III.C. PERIODIC PAYMENTS AND PAYMENTS IN LIEU OF EARNINGS For policies governing streamlined income determinations for fixed sources of income, please see Chapter 11. Social Security/SSI Benefits [Notice PIH 2023-27] 300 7-34 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Verification requirements for Social Security (SS) and Supplemental Security Income (SSI) benefits differ for applicants and participants. For applicants, since EIV does not contain SS or SSI benefit information, HACCC must ask applicants to provide a copy of their current SS and/or SSI benefit letter (dated within the last 120 calendar days) for each family member that receives SS and/or SSI benefits. If the family is unable to provide the document or documents, HACCC should help the applicant request a benefit verification letter from SSA’s website at www.ssa.gov or ask the family to request one by calling SSA at 1-800-772-1213. HACCC must obtain the original benefit letter from the applicant, make a photocopy of the document for the file, and return the original to the family. For participants, HACCC must obtain information through the HUD EIV system and confirm with the participants that the current listed benefit amount is correct. x If the participant agrees with the amount reported in EIV, HACCC must use the EIV-reported gross benefit amount to calculate annual income from Social Security. PHAs are required to use the EIV-reported SS and SSI benefit amounts when calculating income unless the tenant disputes the EIV-reported amount. For example, an SSA benefit letter may list the monthly benefit amount as $450.80 and EIV displays the amount as $450.00. The PHA must use the EIV-reported amount unless the participant disputes the amount. x If the participant disputes the EIV-reported benefit amount, or if benefit information is not available in EIV, HACCC must request a current SSA benefit verification letter (dated within the last 120 calendar days) from each family member that receives SS and/or SSI benefits. If the family is unable to provide the document or documents, HACCC should help the participant request a benefit verification letter from SSA’s website at www.ssa.gov or ask the family to request one by calling SSA at 1-800-772-1213. HACCC must obtain the original benefit letter from the participant, make a photocopy of the document for the file, and return the original to the family. Photocopies of social security checks or bank statements are not acceptable forms of verification for SS/SSI benefits. To ensure consistency in the determination of annual Social Security and SSI income, PHAs are required to use EIV-reported Social Security and SSI benefit amounts unless the tenant disputes the EIV-reported amount [Notice PIH 2018-24]. HACCC Policy To verify the SS/SSI benefits of applicants, the PHA will request a current (dated within the last 60 days) SSA benefit verification letter from each family member that receives social security benefits. If the family is unable to provide the document(s), the PHA will help the applicant request a benefit verification letter from SSA’s web site at www.ssa.gov or ask the family to request one by calling SSA at 1-800-772-1213. Once the applicant has received the benefit verification letter, they will be required to provide it to the PHA. To verify the SS/SSI benefits of participants, the PHA will obtain information about social security/SSI benefits through the HUD EIV System and confirm with the participant(s) that 301 7-35 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 the current listed benefit amount is correct. If the participant disputes the EIV-reported benefit amount, or if benefit information is not available in HUD systems, the PHA will request a current SSA benefit verification letter from each family member that receives social security benefits. If the family is unable to provide the document(s) the PHA will help the participant request a benefit verification letter from SSA’s web site at www.ssa.gov or ask the family to request one by calling SSA at 1-800-772-1213. Once the participant has received the benefit verification letter, they will be required to provide it to the PHA. 7-III.D. ALIMONY OR CHILD SUPPORT [Notice PIH 2023-27] Annual income includes “all amounts received,” not the amount that a family may be legally entitled to receive but which they do not receive. For example, a family’s child support or alimony income must be based on payments received, not the amounts to which the family is entitled by court or agency orders. A copy of a court order or other written payment agreement alone may not be sufficient verification of amounts received by a family. HACCC Policy The methods the PHA will use to verify alimony and child support payments differ depending on whether the family declares that it receives regular payments. If the family declares that it receives regular payments, verification will be obtained in the following order of priority: 1. Third-party verification form from the state or local child support enforcement agency for the most recent prior four months. 2. Copies of the receipts and/or payment stubs for the most recent prior four twelve (12) months. 3. Third-party verification form from the person paying the support (such as a copy of a separation or settlement agreement or a divorce decree stating amount and type of support and payment schedules) 4. Family's self-certification of amount received If the family declares that it receives irregular or no payments, in addition to the verification process listed above, the family must provide evidence that it has taken all reasonable efforts to collect amounts due. This may include: 1. A statement from any agency responsible for enforcing payment that shows the family has requested enforcement and is cooperating with all enforcement efforts 2. If the family has made independent efforts at collection, a written statement from the attorney or other collection entity that has assisted the family in these efforts 302 7-36 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Note: Families are not required to undertake independent enforcement action. 7-III.E. NONRECURRING INCOME [Notice PIH 2023-27] Income that will not be repeated beyond the coming year (i.e., the 12 months following the effective date of the certification), based on information provided by the family, is considered nonrecurring income and is excluded from annual income. PHAs may accept a self-certification from the family stating that the income will not be repeated in the coming year. HACCC Policy HACCC will accept self-certification from the family stating that income will not be repeated in the coming year. However, HACCC may choose, on a case-by-case basis, to require third-party verification that income sources will not be repeated in the coming year. 7-III.FE. ASSETS AND INCOME FROM ASSETS Assets Declared to be less than $50,000 Net Family Assets [24 CFR 5.603] At admission and reexam, for families with net assets totaling $50,000 or less (adjusted annually), the PHA may, but is not required to, accept the family’s self-certification that the family’s assets do not exceed $50,000 without taking any additional steps to verify the accuracy of the declaration. The declaration must include the amount of income the family expects to receive from assets which must be included in the family’s income. This includes declaring income from checking and savings accounts which, although excluded from the calculation of net family assets (because the combined value of non-necessary personal property does not exceed $50,000), may generate asset income. PHAs must clarify during the self-certification process which assets are included/excluded from net family assets. For PHAs that choose to accept self-certification, the PHA is required to obtain third-party verification of all assets, regardless of the amount, at least once every three years. PHAs who choose not to accept self-certifications of assets must verify all families’ assets on an annual basis. When net family assets have a total value over $50,000, the PHA may not rely on the family’s self- certification. Third-party verification of assets is required when net family assets exceed $50,000, adjusted annually by HUD. When verification of assets is required, PHAs are required to obtain a minimum of one statement that reflects the current balance of banking/financial accounts. HACCC Policy 303 7-37 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 For families with net assets totaling $50,000 or less, HACCC will accept the family’s self- certification of the value of family assets and anticipated asset income. The family’s declaration must show each asset and the amount of income expected from that asset. All family members 18 years of age and older must sign the family’s declaration. HACCC reserves the right to require additional verification in situations where the accuracy of the declaration is in question. Any income the family expects to receive from assets will be included in the family’s annual income. The family will be required to provide third-party verification of net family assets every three years. When verification is required, in determining the value of checking or savings accounts, HACCC will use the current balance. In determining the anticipated income from an interest-bearing checking or savings account when verification is required and the rate of return is known, HACCC will multiply the current balance of the account by the current rate of interest paid on the account. If a checking account does not bear interest, the anticipated income from the account is zero. In accordance with PIH Notice 2013-3 HACCC has elected to allow households to self-certify assets with a total household value of less than $50,000 and will not require third party verification of these assets. Households will be required to declare the value of all assets on the Personal Declaration and this declaration will serve as self-certification for assets with a cumulative total of less than $50,000. All assets with a cumulative declared value greater than $50,000 must be verified through the verification hierarchy described in this Chapter. Self-Certification of Real Property Ownership [24 CFR 5.618(b)(2)] The PHA must determine whether a family has present ownership in real property that is suitable for occupancy for purposes of determining whether the family is compliant with the asset limitation described in Chapters 3 and 12. At admission and reexam, the PHA may accept a self-certification from the family that the family does not have any present ownership in any real property that is suitable for occupancy. If the family declares they have present ownership in real property, the PHA must obtain third-party verification. HACCC Policy Both at admission and reexam, HACCC will accept self-certification from the family that the family does not have any present ownership in any real property. The certification will state that the family does not have any present ownership interest in any real property and must be signed by all family members 18 years of age and older. HACCC reserves the right to require additional verification in situations where the accuracy of the declaration is in question. If the family declares they have a present ownership in real property, HACCC will obtain third-party verification of the following factors: x whether the family has the legal right to reside in the property; x whether the family has effective legal authority to sell the property; and x whether the property is suitable for occupancy by the family as a residence. 304 7-38 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 However, in cases where a family member is a victim of domestic violence, dating violence, sexual assault, stalking or human trafficking, HACCC will comply with confidentiality requirements under 24 CFR 5.2007 and will accept a self-certification. HACCC must obtain third party verification of family assets every 3 years. Assets shall be reported by submission of the most current checking and/or savings statement. Verification can also be a printout of the electronic on-line banking statement or original receipt from an automatic teller machine. Ǧ Ǥ Ǥ Assets Disposed of for Less than Fair Market Value The family must certify whether any assets have been disposed of for less than fair market value in the preceding two years. HUD permits PHAs to accept a self-certification from a family as verification of assets disposed of for less than fair market value [HCV GB, p. 5-28]. The PHA needs to verify only those certifications that warrant documentation [HCV GB, p. 5-28]. HACCC Policy HACCC will accept a self-certification from a family as verification of assets disposed of for less than fair market value. The PHAHACCC will verify the value of assets disposed of only if: • The PHAHACCC does not already have a reasonable estimation of its value from previously collected information, or • The amount reported by the family in the certification appears obviously in error. Example 1: An elderly participant reported a $10,000 certificate of deposit at the last annual reexamination and the PHA verified this amount. Now the person reports that she has given this $10,000 to her son. The PHA has a reasonable estimate of the value of the asset; therefore, re-verification of the value of the asset is not necessary. Example 2: A family member has disposed of its 1/4 share of real property located in a desirable area and has valued her share at approximately 5,000. Based upon market conditions, this declaration does not seem realistic. Therefore, the PHA will verify the value of this asset. 7-III.FH. NET INCOME FROM RENTAL PROPERTY HACCC Policy 305 7-39 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The family must provide: A current executed lease for the property that shows the rental amount or certification from the current tenant A self-certification from the family members engaged in the rental of property providing an estimate of expenses for the coming year and the most recent IRS Form 1040 with Schedule E (Rental Income). If schedule E was not prepared, the PHA will require the family members involved in the rental of property to provide a self-certification of income and expenses for the previous year and may request documentation to support the statement including: tax statements, insurance invoices, bills for reasonable maintenance and utilities, and bank statements or amortization schedules showing monthly interest expense. 7-III.I. FEDERAL TAX REFUNDS OR REFUNDABLE TAX CREDITS [Notice PIH 2023- 27] PHAs are not required to verify the amount of the family’s federal tax refund or refundable tax credit(s) if the family’s net assets are equal to or below $50,000 (adjusted annually for inflation), even in years when full verification of assets is required or if the PHA does not accept self- certification of assets. PHAs must verify the amount of the family’s federal tax refund or refundable tax credits if the family’s net assets are greater than $50,000. 7-III.JG. RETIREMENT ACCOUNTS HACCC Policy HACCCThe PHA will accept written third-party documents supplied by the family as evidence of the status of retirement accounts. The type of original document that will be accepted depends upon the family member’s retirement status. • Before retirement, the PHA will accept an original document from the entity holding the account with a date that shows it is the most recently scheduled statement for the account but in no case earlier than 6 months from the effective date of the examination. • Upon retirement, the PHA will accept an original document from the entity holding the account that reflects any distributions of the account balance, any lump sums taken and any regular payments. 306 7-40 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • After retirement, the PHA will accept an original document from the entity holding the account dated no earlier than 12 months before that reflects any distributions of the account balance, any lump sums taken and any regular payments. • 7-III.KH. INCOME FROM EXCLUDED SOURCES [Notice PIH 2023-27] A detailed discussion of excluded income is provided in Chapter 6, Part I. HUD guidance on verification of excluded income draws a distinction between income which is fully excluded and income which is only partially excluded. For fully excluded income, the PHA is not required to document why third-party verification is not available, or report the income on the 50058. Fully excluded income is defined as income where the entire amount qualifies to be excluded from the annual income determination in accordance with 24 CFR 5.609(b) and any Federal Register notice on mandatory exclusions issued by HUD (for example, food stamps, earned income of a minor, or foster care funds). For fully excluded income, the PHA is not required to follow the verification hierarchy, document why third-party verification is not available, or report the income on the 50058. Fully excluded income is defined as income that is entirely excluded from the annual income determination (for example, food stamps, earned income of a minor, or foster care funds) [Notice PIH 2013-04]. PHAs may accept a family’s signed application or reexamination form as self-certification of fully excluded income. They do not have to require additional documentation. However, if there is any doubt that a source of income qualifies for full exclusion, PHAs have the option of requiring additional verification. For partially excluded income, the PHA is required to follow the verification hierarchy and all applicable regulations, and to report the income on the 50058. Partially excluded income is defined as income where only a certain portion of what is reported by the family qualifies to be excluded and the remainder is included in annual income (for example, the income of an adult full-time student, or income excluded under the earned income disallowance). HACCC Policy The PHAHACCC will accept the family’s self-certification as verification of fully excluded income. The PHAHACCC may request additional documentation if necessary to document the income source. The PHAHACCC will verify the source and amount of partially excluded income as described in Part 1 of this chapter. 7-III.IL. ZERO ANNUAL INCOME STATUS REVIEWS [Notice PIH 2023-27] 307 7-41 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 A zero income review is an assessment, sometimes periodic, performed by the PHA of the income of a family who claims that they do not receive income from any source, including from assets. During such reviews, it is common for PHAs to request that families complete and sign a worksheet explaining how they pay for the household’s expenses. HUD does not require PHAs to conduct periodic zero income reviews. In calculating annual income, PHAs must not assign monetary value to nonmonetary in-kind donations from a food bank or similar organization received by the family [24 CFR § 5.609(b)(24)(vi)]. PHAs that perform zero income reviews must update local discretionary policies, procedures, and forms. Families who begin receiving income which does not trigger an interim reexamination should no longer be considered zero income even though the family’s income is not reflected on the Form HUD-50058. HACCC Policy The PHAHACCC will check UIV sources and/or may request information from third-party sources to verify that certain forms of income such as unemployment benefits, TANF, SS, SSI, and earningsed income, child support, etc. are not being received by families claiming to have zero annual income. The PHA will also require that each family member who claims zero income status complete a zero-income form. If any sources of income are identified on the form, HACCC will verify the income in accordance with the policies in this chapter prior to including the income in the family’s annual income. The PHA will only conduct interims in accordance with PHA policy in Chapter 11. 7-III.MJ. STUDENT FINANCIAL ASSISTANCE [24 CFR 5.609(b)(9)] [Notice PIH 2015-21] The regulations under HOTMA distinguish between two categories of student financial assistance paid to both full-time and part-time students. Any assistance to students under section 479B of the Higher Education Act of 1965 (Tile IV of the HEA) must be excluded from the family’s annual income [24 CFR 5.609(b)(9)(i)]. Any other grant-in-aid, scholarship, or other assistance amounts an individual receives for the actual covered costs charged by the institute of higher education not otherwise excluded by the federally mandated income exclusions are excluded [24 CFR 5.609(b)(9)(ii)]. Any financial assistance, in excess of amounts received for tuition, fees, and other required charges that a person attending an institution of higher education receives under the Higher Education Act of 1965, from private sources, or from an institution of higher education must be considered income unless the student is over the age of 23 with dependent children or is residing with parents who are seeking or receiving HCV assistance [24 CFR 5.609(b)(9) and FR 4/10/06]. For students over the age of 23 with dependent children or students residing with parents who are seeking or receiving HCV assistance, the full amount of student financial assistance is excluded from annual income [24 CFR 5.609(c)(6)]. The full amount of student financial assistance is also excluded for students attending schools that do not qualify as institutions of higher education (as defined in 308 7-42 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Exhibit 3-2). Excluded amounts are verified only if, without verification, the PHA would not be able to determine whether or to what extent the income is to be excluded (see section 7-III.H). HACCC Policy For a student subject to having a portion of their student financial assistance included in annual income in accordance with 24 CFR 5.609(b)(9), the PHAHACCC will request written third-party verification of both the source and the amount of student financial assistance. Family-provided documents from the educational institution attended by the student will be requested, as well as documents generated by any other person or entity providing such assistance, as reported by the student. In addition, unless the student’s only source of assistance is assistance under Title IV of the HEA, the PHAHACCC will request written verification of the cost of the student’s tuition, books, supplies, room and board, and other required fees and charges to the student from the educational institution.written verification of the student’s tuition fees, and other required charges. If the PHA is unable to obtain third-party written verification of the requested information, the PHA will pursue other forms of verification following the verification hierarchy in section 7-I.B. 7-III.NK. PARENTAL INCOME OF STUDENTS SUBJECT TO ELIGIBILITY RESTRICTIONS If a student enrolled at an institution of higher education is under the age of 24, is not a veteran, is not married, does not have a dependent child, and is not a person with disabilities receiving HCV assistance as of November 30, 2005, the income of the student’s parents must be considered when determining income eligibility, unless the student is determined independent from their parents or a vulnerable youth in accordance with PHA policy [24 CFR 5.612 FR Notice 4/10/06, and FR Notice 9/21/16]. This provision does not apply to students residing with parents who are seeking or receiving HCV assistance. It is limited to students who are seeking or receiving assistance on their own, separately from their parents. HACCC Policy If the PHA is required to determine the income eligibility of a student’s parents, the PHA will request an income declaration and certification of income from the appropriate parent(s) (as determined in section 3-II.E). The PHA will send the request directly to the parents, who will be required to certify to their income under penalty of perjury. The parents will be required to submit the information directly to the PHA. The required information must be submitted (postmarked) within 14 calendar days of the date of the PHA’s request or within any extended timeframe approved by the PHA. 309 7-43 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The PHA reserves the right to request and review supporting documentation at any time if it questions the declaration or certification. Supporting documentation may include, but is not limited to, Internal Revenue Service (IRS) tax returns, consecutive and original pay stubs, bank statements, pension benefit statements, benefit award letters, and other official and authentic documents from a federal, state, or local agency. 310 7-44 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART IV: VERIFYING MANDATORY DEDUCTIONS 7-IV.A. DEPENDENT AND ELDERLY/DISABLED HOUSEHOLD DEDUCTIONS The dependent and elderly/disabled family deductions require only that the PHA verify that the family members identified as dependents or elderly/disabled persons meet the statutory definitions. No further verifications are required. Dependent Deduction See Chapter 6 (6-II.B.) for a full discussion of this deduction. The PHA must verify that: • Any person under the age of 18 for whom the dependent deduction is claimed is not the head, spouse, or cohead of the family and is not a foster child • Any person aged 18 or older for whom the dependent deduction is claimed is not a foster adult or live-in aide, and is a person with a disability or a full-time student Elderly/Disabled Family Deduction See Eligibility chapter for a definition of elderly and disabled families and Chapter 6 (6-II.C.) for a discussion of the deduction. The PHA must verify that the head, spouse, or cohead is 62 years of age or older or a person with disabilities. 7-IV.B. HEALTH AND MEDICAL CARE EXPENSE DEDUCTION Policies related to medical expenses are found in 6-II.DChapter 6. The amount of the deduction will be verified following the standard verification procedures described in Part I. The PHA must comply with the Health Insurance Portability and Accountability Act (HIPAA) (Pub. L. 104-191, 110 Stat. 1936) and the Privacy Act of 1974 (Pub. L. 93-579, 88 Stat. 1896) when requesting documentation to determine unreimbursed health and medical care expenses. The PHA may not request documentation beyond what is sufficient to determine anticipated health and medical care costs. Before placing bills and documentation in the tenant file, the PHA must redact all personally identifiable information [FR Notice 2/14/23]. Amount of Expense HACCC Policy Medical expenses will be verified through: - Written third-party documents provided by the family, such as pharmacy printouts or receipts. - The PHA When income is projected at new admission or interim, HACCC will make a best effort to determine what expenses from the past are likely to continue to occur in the 311 7-45 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 future. The PHAHACCC will also accept evidence of monthly payments or total payments that will be due for medical expenses during the upcoming 12 months. - Written third-party verification forms, if the family is unable to provide acceptable documentation. - I When income is projected at new admission or interim, if third-party or document review is not possible, written family certification as to costs anticipated to be incurred during the upcoming 12 months. Before placing bills and documentation in the tenant file, HACCC will redact all personally identifiable information. If HACCC receives documentation from a verification source that contains the individual’s specific diagnosis, information regarding the individual’s treatment, and/or information regarding the nature or severity of the person’s disability, HACCC will immediately dispose of this confidential information; this information will never be maintained in the individual’s file. If the information needs to be disposed of, HACCC will note in the individual’s file that verification was received, the date received, and the name and address of the person/organization that provided the verification. Under no circumstances will HACCC include an applicant’s or resident’s medical records in the file [Notice PIH 2010- 26]. In addition, the PHA must verify that: • The household is eligible for the deduction. • The costs to be deducted are qualified medical expenses. • The expenses are not paid for or reimbursed by any other source. • Costs incurred in past years are counted only once. Eligible Household The health and medical care expense deduction is permitted only for households in which the head, spouse, or cohead is at least 62, or a person with disabilities. The PHA must verify that the family meets the definition of an elderly or disabled family provided in the Eligibility chapter and as described in Chapter 7 (7-IV.A.) of this plan. Qualified Expenses To be eligible for the health and medical care expenses deduction, the costs must qualify as medical expenses. See Chapter 6 (6-II.D.) for the PHA’s policy on what counts as a medical expense. Unreimbursed Expenses To be eligible for the health and medical care expenses deduction, the costs must not be reimbursed by another source. 312 7-46 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy The family will be required to certify that the medical expenses are not paid or reimbursed to the family from any source. If expenses are verified through a third party, the third party must certify that the expenses are not paid or reimbursed from any other source. Expenses Incurred in Past Years HACCC Policy At new admission and interim reexam, wWhen anticipated costs are related to on-going payment of medical bills incurred in past years, the PHA will verify: - The anticipated repayment schedule - The amounts paid in the past, and - Whether the amounts to be repaid have been deducted from the family’s annual income in past years 7-IV.C. DISABILITY ASSISTANCE EXPENSES Policies related to disability assistance expenses are found in 6-II.E. The amount of the deduction will be verified following the standard verification procedures described in Part I. The PHA must comply with the Health Insurance Portability and Accountability Act (HIPAA) (Pub. L. 104-191, 110 Stat. 1936) and the Privacy Act of 1974 (Pub. L. 93-579, 88 Stat. 1896) when requesting documentation to determine unreimbursed auxiliary apparatus or attendance care costs. The PHA may not request documentation beyond what is sufficient to determine anticipated reasonable attendant care and auxiliary apparatus costs. Before placing bills and documentation in the tenant file, the PHA must redact all personally identifiable information [FR Notice 2/14/23]. Amount of Expense Attendant Care HACCC Policy The PHA will accept written third-party documents provided by the family. If family-provided documents are not available, the PHA will provide a third-party verification form directly to the care provider requesting the needed information. Expenses for attendant care will be verified through: - Written third-party documents provided by the family, such as receipts or cancelled checks. 313 7-47 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 - Third-party verification form signed by the provider, if family-provided documents are not available. - When income is projected at new admission or interim, iIf third-party verification is not possible, written family certification as to costs anticipated to be incurred for the upcoming 12 months. Before placing bills and documentation in the tenant file, HACCC will redact all personally identifiable information. - If HACCC receives documentation from a verification source that contains the individual’s specific diagnosis, information regarding the individual’s treatment, and/or information regarding the nature or severity of the person’s disability, HACCC will immediately dispose of this confidential information; this information will never be maintained in the individual’s file. If the information needs to disposed of, HACCC will note in the individual’s file that verification was received, the date received, and the name and address of the person/organization that provided the verification. Under no circumstances will HACCC include an applicant’s or resident’s medical records in the file [Notice PIH 2010-26]. Auxiliary Apparatus HACCC Policy Expenses for auxiliary apparatus will be verified through: - Written third-party documents provided by the family, such as billing statements for purchase of auxiliary apparatus, or other evidence of monthly payments or total payments that will be due for the apparatus during the upcoming 12 months. - Third-party verification form signed by the provider, if family-provided documents are not available. - If third-party verification is not possible, written family certification of estimated apparatus costs for the upcoming 12 months. In addition, the PHA must verify that: • The family member for whom the expense is incurred is a person with disabilities (as described in 7-II.F above). • The expense permits a family member, or members, to work (as described in Chapter 6)-II.E.). • The expense is not reimbursed from another source (as described in Chapter 6-II.E.). Family Member is a Person with Disabilities To be eligible for the disability assistance expense deduction, the costs must be incurred for attendant care or auxiliary apparatus expense associated with a person with disabilities. The PHA will verify that the expense is incurred for a person with disabilities (See 7-II.F.). 314 7-48 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Family Member(s) Permitted to Work The PHA must verify that the expenses claimed actually enable a family member, or members, (including the person with disabilities) to work. HACCC Policy The PHA will request third-party verification from a rehabilitation agency or knowledgeable medical professional indicating that the person with disabilities requires attendant care or an auxiliary apparatus to be employed, or that the attendant care or auxiliary apparatus enables another family member, or members, to work (See 6-II.E.). This documentation may be provided by the family. If third-party verification has been attempted and is either unavailable or proves unsuccessful, the family must certify that the disability assistance expense frees a family member, or members (possibly including the family member receiving the assistance), to work. Unreimbursed Expenses To be eligible for the disability expenses deduction, the costs must not be reimbursed by another source. HACCC Policy The family will be required to certify that attendant care or auxiliary apparatus expenses are not paid by or reimbursed to the family from any source. 7-IV.D. CHILD CARE EXPENSES Policies related to childcare expenses are found in Chapter 6 (6-II.F). The amount of the deduction will be verified following the standard verification procedures described in Part I of this chapter. In addition, the PHA must verify that: • The child is eligible for care (12 or younger). • The costs claimed are not reimbursed. • The costs enable a family member to work, actively seek work, or further their education. • The costs are for an allowable type of childcare. • The costs are reasonable. Eligible Child To be eligible for the childcare deduction, the costs must be incurred for the care of a child under the age of 13. The PHA will verify that the child being cared for (including foster children) is under the age of 13 (See 7-II.C.). 315 7-49 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Unreimbursed Expense To be eligible for the childcare deduction, the costs must not be reimbursed by another source. HACCC Policy The family (and the care provider) will be required to certify that the childcare expenses are not paid or reimbursed to the family from any source. Pursuing an Eligible Activity The PHA must verify that the family member(s) that the family has identified as being enabled to seek work, pursue education, or be gainfully employed, are actually pursuing those activities. HACCC Policy Information to be Ggathered The PHA will verify information about how the schedule for the claimed activity relates to the hours of care provided, the time required for transportation, the time required for study (for students), 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 Whenever possible the PHA will use documentation from a state or local agency that monitors work-related requirements (e.g., welfare or unemployment). In such cases the PHA will request family-provided verification from the agency of the member’s job seeking efforts to date and require the family to submit to the PHA any reports provided to the other agency. In the event third-party verification is not available, the PHA will provide the family with a form on which the family member must record job search efforts. The PHA will review this information at each subsequent reexamination for which this deduction is claimed. Furthering Education The PHA will request third-party documentation to verify that the person permitted to further their education by the childcare is enrolled and provide information about the timing of classes for which the person is registered. The documentation may be provided by the family. Gainful Employment The PHA will seek third-party verification of the work schedule of the person who is permitted to work by the childcare. In cases in which two or more family members could be permitted to work, the work schedules for all relevant family members may be verified. The documentation may be provided by the family. 316 7-50 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Allowable Type of Child Care The type of care to be provided is determined by the family, but must fall within certain guidelines, as discussed in Chapter 6. HACCC Policy The PHA will verify that the type of childcare selected by the family is allowable, as described in Chapter 6 (6-II.F). The PHA will verify that the fees paid to the childcare provider cover only childcare costs (e.g., no housekeeping services or personal services) and are paid only for the care of an eligible child (e.g., prorate costs if some of the care is provided for ineligible family members). The PHA will verify that the childcare provider is not an assisted family member. Verification will be made through the head of household’s declaration of family members who are expected to reside in the unit. Reasonableness of Expenses Only reasonable childcare costs can be deducted. HACCC Policy The actual costs the family incurs will be compared with the PHA’s established standards of reasonableness for the type of care in the locality to ensure that the costs are reasonable. If the family presents a justification for costs that exceed typical costs in the area, the PHA will request additional documentation, as required, to support a determination that the higher cost is appropriate. 317 7-51 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EXHIBIT 7-1: SUMMARY OF DOCUMENTATION REQUIREMENTS FOR NONCITIZENS [HCV GB, pp. 5-9 and 5-10] • All noncitizens claiming eligible status must sign a declaration of eligible immigrant status on a form acceptable to the PHA. • Except for persons 62 or older, all noncitizens must sign a verification consent form • Additional documents are required based upon the person's status. Elderly Noncitizens • A person 62 years of age or older who claims eligible immigration status also must provide proof of age such as birth certificate, passport, or documents showing receipt of SS old-age benefits. All other Noncitizens • Noncitizens that claim eligible immigration status also must present the applicable USCIS • • Form I-551 Alien Registration Receipt • Card (for permanent resident aliens) • Form I-94 Arrival-Departure Record with no annotation accompanied by: • A final court decision granting asylum (but only if no appeal is taken); • A letter from a USCIS asylum officer granting asylum (if application is filed on or after 10/1/90) or from a USCIS district director granting asylum (application filed before 10/1/90); • A court decision granting withholding of deportation; or • A letter from an asylum officer granting withholding or deportation (if application filed on or after 10/1/90). • Form I-94 Arrival-Departure Record annotated with one of the following: • “Admitted as a Refugee Pursuant to Section 207” • “Section 208 or “Asylum • “Section 243(h)” or “Deportation stayed by Attorney General” • “Paroled Pursuant to Section 221 (d)(5) of the USCIS” • Form I-688 Temporary Resident Card annotated “Section 245A” or Section 210”. Form I-688B Employment Authorization Card annotated “Provision of Law 274a. 12(11)” or “Provision of Law 274a.12”. • A receipt issued by the USCIS indicating that an application for issuance of a replacement document in one of the above listed categories has been made and the applicant’s entitlement to the document has been verified; or • Other acceptable evidence. If other documents are determined by the USCIS to constitute acceptable evidence of eligible immigration status, they will be announced by notice published in the Federal Register 318 8-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 CHAPTER 8 HOUSING QUALITYNATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE AND RENT REASONABLENESS DETERMINATIONS QUALITY STANDARDS AND RENT REASONABLENESS DETERMINATIONS [24 CFR 5982 Subpart GI and 24 CFR 982.507Notice PIH 2023-28] INTRODUCTION HUD requires that all units occupied by families receiving Housing Choice Voucher (HCV) and Project Based Voucher (PBV) assistance meet HUD's National Standards for the Physical Inspection of Real Estate (NSPIRE) regulations and standards no later than October 1, 2024. The inspection performance standards and procedures for conducting NSPIRE inspections must be included in the administrative plan [Notice PIH 2023-28]. Housing Quality Standards (HQS) and permits HACCC to establish additional requirements. The use of the term "HQS" in this plan refers to the combination of both HUD and PHA-established requirements. All units must pass an HQS NSPIRE inspection prior to the approval of a lease and (with some exceptions) and at least once every 24 months (or 36 months for small rural PHAs) during the term of the contract, and at other times as needed, to determine that the unit meets NSPIRE standardsHQS. HUD also requires PHAs to determine that rents for units under the program are reasonable when compared to comparable unassisted units in the market area. Provided they meet certain requirements, HUD permits PHAs to establish some additional local requirements in their administrative plans. The use of the term NSPIRE in this plan refers to the combination of both HUD and PHA-established requirements. However, state and local codes, compliance is not part of the determination of whether a unit passes the NSPIRE standards. This chapter explains HUD and PHA requirements related to housing quality and rent reasonableness as follows: Part I. Physical Standards. This part discusses the physicalNSPIRE standards required of units occupied by HCV and PBV-assisted families and identifies decisions about the acceptability of the unit that may be made by the family based upon the family's preference. It also identifies affirmative habitability requirements for all units and life-threatening conditions that must be addressed on an expedited basiscorrected in 24 hours. Part II. The Inspection Process. This part describes the types of inspections HACCC will make and the steps that will be taken when units do not meet HQSNSPIRE standards. Part III. Rent Reasonableness Determinations. This part discusses the policies HACCC will use to make rent reasonableness determinations. 319 8-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Special HQS NSPIRE requirements for homeownership, manufactured homes, and other special housing types are discussed in Chapter 15 to the extent that they apply in this jurisdiction. Special requirements for the PBV and RAD PBV programs (if applicable) are discussed in Chapters 17 and 18, respectively. 320 8-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART I: PHYSICAL NSPIRE STANDARDS NSPIRE standards are published on HUD’s NSPIRE website as well as in the NSPIRE Final Rule [FR Notice 5/1/2023]. 8-I.A. GENERAL INSPECTABLE AREAS [24 CFR 5.703(a)(1) and 24 CFR 5.705(a)(2)]HUD REQUIREMENTS NSPIRE defines the inspectable areas for inspection under the standards as inside, outside and unit. However, the inspection requirement for the HCV and PBV programs only applies to units occupied or to be occupied by HCV or PBV participants and common areas and exterior areas which either service or are associated with such units. 8-I.B. AFFIRMATIVE HABITABILITY REQUIREMENTS [24 CFR 5.703(b), (c), and (d)] NSPIRE provides for minimum, or affirmative, habitability requirements for each area (unit, inside, outside). These areas must meet these requirements for habitability, which are listed in Exhibit 8-1. The inside, outside and unit must be free of health and safety hazards that pose a danger to residents. Types of health and safety concerns include, but are not limited to carbon monoxide, electrical hazards, extreme temperature, flammable materials or other fire hazards, garbage and debris, handrail hazards, infestation, lead-based paint, mold, and structural soundness [24 CFR 5.703(e). The NSPIRE Smoke Alarm Standard does not require that smoke alarms have a sealed battery; however, upon the effective date of the Public and Federally Assisted Housing Fire Safety Act of 2022 on December 29, 2024, sealed batteries will be required.HUD Performance and Acceptability Standards HUD's performance and acceptability standards for HCV-assisted housing are provided in 24 CFR 982.401. These standards cover the following areas: • Sanitary facilities • Food preparation and refuse disposal • Space and Security • Thermal Environment • Illumination and electricity • Structure and materials • Interior Air Quality • Water Supply 321 8-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Lead-based paint • Access • Site and neighborhood • Sanitary condition • Smoke Detectors A summary of HUD performance criteria is provided in Exhibit 8-1. Additional guidance on these requirements is found in the following HUD resources: • Housing Choice Voucher Guidebook, Chapter 10. • HUD Housing Inspection Manual for Section 8 Housing • HUD Inspection Form, form HUD-52580 (3/01) and Inspection Checklist, form HUD- 52580-A (9/00) • HUD Notice 2003-31, Accessibility Notice: Section 504 of the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Architectural Barriers Act of 1968 and the Fair Housing Act of 1988. Tenant Preference Items HUD requires HACCC to enforce minimum HQS but also recognizes that certain judgments about the acceptability of the unit are left to the family. For example, HACCC must ensure that the unit contains the required sanitary facilities, but the family decides whether the cosmetic appearance of the facilities is acceptable. Exhibit 8-2 summarizes those items that are considered tenant preferences. 8-I.C. MODIFICATIONS TO PROVIDE ACCESSIBILITY [24 CFR 100.203; Notice 2003-31; and Notice PIH 2014-02]Modifications to Provide Accessibility Under the Fair Housing Act of 1988 an owner must make reasonable accommodations in rules, policies, practices, or services if necessary for a person with disabilities to use the housing and must not refuse the request of a family that contains a person with a disability to make necessary and reasonable modifications to the unit if such modification is necessary to afford the person with a disability full enjoyment of the premises. Such modifications are at the family's expense. The owner may, where it is reasonable to do so, require restoration of the unit to its original condition (reasonable wear and tear excepted) if the modification would interfere with the owner or next occupant's full enjoyment of the premises. The owner may not increase a customarily required 322 8-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 security deposit. However, the landlord may negotiate a restoration agreement that requires the family to restore the unit and, if necessary to ensure the likelihood of restoration, may require the tenant to pay a reasonable amount into an interest-bearing escrow account over a reasonable period of time. The interest in any such account accrues to the benefit of the tenant. The owner may also require reasonable assurances that the quality of the work will be acceptable and that any required building permits will be obtained. [24 CFR 100.203; Notice 2003-31]. Modifications to units to provide access for a person with a disability must meet all applicable HQSNSPIRE requirements and conform to the design, construction, or alteration of facilities contained in the UFAS and the ADA Accessibility Guidelines (ADAAG) [28 CFR 35.151(c) and Notice 2003-31] See Chapter 2 of this plan for additional information on reasonable accommodations for persons with disabilities. HACCC Policy Any owner that intends to negotiate a restoration agreement or require an escrow account must submit the agreement(s) to HACCC for review. 8-I.DB. ADDITIONAL LOCAL REQUIREMENTS [24 CFR 5.705(a)(3) and Notice PIH 2023-28] HACCC may impose variations to the HQSNSPIRE standards as long as the additional criteria are not likely to adversely affect the health or safety of participant families or severely restrict housing choices for families. HUD approval is required for variations to the HQSNSPIRE standards and approved variations must be added to the administrative plan. HUD may approve inspection criteria variations if the variations apply standards in local housing codes or other codes adopted by the PHA or because of local climatic or geographic conditions. Acceptability criteria variations may only be approved by HUD if such variations either meet or exceed the performance requirements or significantly expand affordable housing opportunities for families assisted under the program. HACCC Policy HACCC has not requested any HUD-approved variations to NSPIRE standards. HUD approval is not required if HACCC variations are clarifications of HUD's acceptability criteria or performance standards [24 CFR 982.401(a)(4)]. Thermal Environment [HCV GB p.10-7] HACCC must define a “healthy living environment” for the local climate. This may be done by establishing a temperature that the heating system must be capable of maintaining, that is appropriate for the local climate. HACCC Policy 323 8-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The heating system must be in working condition and be capable of maintaining an interior temperature of 68 degrees Fahrenheit between October 1 and May 31. When present, air conditioners must function properly and control knobs must be functioning and readable. Grates or covers must also be present. Other Local Requirements HACCC Policy Detectors Carbon Monoxide (CO2) detectors must be installed in accordance with California law (SB-183 - Carbon Monoxide Poisoning Prevention Act). A. Carbon Monoxide devices must be installed in the following locations: 1. Outside each separate sleeping area in the immediate vicinity of the bedroom(s) in the dwelling unit; 2. On every level including the basement within which fuel-fired appliances are installed; 3. In dwelling units (single-family dwelling, duplex, condominium, or dwelling unit in a multiple-unit dwelling unit building) that have attached garages. B. The Carbon Monoxide Detector must be operational at the time the tenant takes possession of the unit. Smoke Detectors must be installed in accordance with the requirements of California Residential Building Code (R314). A. Smoke alarms are to be installed in the following locations: 1. In each sleeping room. 2. Outside each separate sleeping area in the immediate vicinity of the bedrooms. One alarm in the hallway outside each cluster of bedrooms is acceptable. 3. On each additional story of the dwelling, including basements and habitable attics but not including crawl spaces and uninhabitable attics. In dwellings or dwelling units with split levels and without an intervening door between the adjacent evels, a smoke alarm installed on the upper level shall suffice for the adjacent lower level provided that the lower level is less than one full story below the upper level. B. Effective July 1, 2015, all battery-operated smoke alarms MUST contain a non- removable battery that is rated to last 10 years. Owners should indicate the install date on the smoke alarm unit. If no date has been entered on the smoke alarm unit, then the date 324 8-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 of manufacture indicated on the smoke alarm unit shall be used to determine if the unit is compliant. Landlords cannot make the tenant responsible for testing or maintaining the smoke alarm. It is the tenant's responsibility to notify the owner if a smoke alarm or Carbon Monoxide Detector is deficient or inoperable. Garages and Storage Areas Either attached or detached, the garage must be a part of the rental agreement. Owners are not permitted to store their belongings or rent the space unless the garage has been properly converted into a separate dwelling unit as defined in the lease or rental agreement. Existing HAP contracts wherein owners were allowed to store their items in detached garages or other storage structures will be grandfathered into compliance. New contracts effective after January 1, 2014 will be governed by this policy. Additional Plumbing Requirements Water Heaters must meet the following State requirements: California Health and Safety Code, Section 19211(a): Water heaters shall be braced, anchored, or strapped to resist falling or horizontal displacement due to earthquake motion. At a minimum, any water heater shall be secured in accordance with California Plumbing Code pursuant to 17958.5. Uniform Plumbing Code (UPC) 510.5: Water heater must be strapped with two seismic straps: one located within the top third of the water heater and one at the bottom third. The strap must be located at least 4" away from the water heater controls. Utilities In units where the tenant must pay for utilities, each unit must have separate metering device(s) for measuring utility consumption and direct billing by the utility service provider. The owner must be responsible for paying the utilities for units with centralized shared utility meters for their units. The owner is not permitted to request or require the tenant to reimburse them for utility use in units with centralized utility meters. Apartment communities that have centralized utility meters and have a Consumption Calculation Plan or Third-Party Billing Contract must provide the HACCC a copy of the plan at the time of the initial process or when a request for change is submitted following the initial term or the lease. Clarifications of HUD Requirements HACCC Policy 325 8-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 As permitted by HUD, HACCC has adopted the following specific requirements that elaborate on HUD standards. Walls In areas where plaster or drywall is sagging, severely cracked, or otherwise damaged, it must be repaired or replaced. Appliances The oven heating elements and controls must work and all burners on the stove range must also work. All stove or range knobs must be present with readable temperature markings. The family may choose to accept a microwave oven in place of a conventional oven, stove or range if the oven/stove/range are tenant supplied or if microwaves are furnished in both subsidized and unsubsidized units in the building or premises. The family may choose to supply their own refrigerator but it must be in proper working order per HQS Standards. Any owner-supplied appliances in the unit at initial inspection shall be maintained in proper working order by the owner throughout the tenancy. Should an owner-supplied appliance malfunction, the owner has the right to either repair the appliance or remove the defective item. If the owner refuses to repair an appliance but rather chooses to remove the appliance, this shall constitute a reduction in services and result in a reduction in the unit rent comparable to the annual utility allowance for a comparable tenant- provided appliance. Bedrooms Defined as a room used for sleeping (regardless of the type of room). At least one window is required. If the window in the sleeping rooms are designed to be opened, at least one window must be openable and must be in proper working order. Also required in a bedroom: • Two working outlets or one working outlet and one permanently installed light fixture. • A permanent or removable closet is required in all rooms considered bedrooms. Bedrooms in basements or attics are not permitted unless they meet local code requirements (unit meets bedroom/bathroom definition from Contra Costa County Tax Assessors Office) as well as HQS Standards. They must have adequate ventilation with emergency exit capability. Windows 326 8-9 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Window sashes must be in good condition, solid and intact, and properly fitted to the window frame. Damaged or deteriorated sashes must be replaced. Windows must be weather-stripped as needed to ensure a weather-tight seal. Window screens must be in good condition (applies only if screens are present). Doors All exterior doors must be weather-tight to avoid any air or water infiltration, be lockable, have no holes, have all trim intact, and have a threshold. All door jambs must be intact. Door jambs must have metal striker plates installed to maintain the integrity of the jam and function of the local mechanism. Each main swinging entry door of dwelling unit must have an operable single cylinder dead bolt lock. These doors include any exterior that will allow access to the unit (front door, door off a kitchen to rear yard, the door from the unit to a garage and any doors that allow direct access to the unit). Double key deadbolt locks are prohibited on any door in the unit. A door from the garage to the exterior of the unit does not require a dead bolt lock. Egress doors shall be readily openable without the use of a key or special knowledge or effort. All interior doors must have no holes, have all trim intact, and be openable without the use of a key. Floors All wood floors must be sanded to a smooth surface and sealed. Any loose or warped boards must be refastened and made level. If they cannot be leveled, they must be replaced. All floors must be in a finished state. Raw wood or unsealed concrete is not permitted. All floors should have some type of base shoe, trim, or sealing for a "finished look." Vinyl base shoe is permitted. Sinks All sinks and commode water lines must have shut off valves, unless faucets are wall mounted. All worn or cracked toilet seats and tank lids must be replaced and toilet tank lid must fit properly. Unit Exterior All rental units must have a street number and unit number or letter clearly labeled and visible from the street. 327 8-10 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Each rental unit must have its own properly labeled official mailbox where the U.S. Postal Service officially delivers mail. The exclusive use of the mailing address of the unit is for the family and approved family members as described in Chapter 3.l.J - Guests. Exterior fences: Owners may be requested to install, repair or remove a fence if a safety or security hazard is present and/or an area of the property must be separated for security reasons. Security If window security bars or security screens are present on emergency exit windows, they must be equipped with a quick release system. The owner is responsible for ensuring that the family is instructed on the use of the quick release system. 8-I.CE. LIFE-THREATENING DEFICIENCIESCONDITIONS [24 CFR 982.404(a); FR Notice PIH 2023-281/18/17] HUD previously requireds HACCC to define life-threatening conditions in the administrative plan. The NSPIRE standards now describe those conditions which are considered life-threatening and must be corrected within 24 hours. and to notify the owner or the family (whichever is responsible) of the corrections required. The responsible party must correct life- threatening conditions within 24hours of PHA notification. HACCC Policy The following are a list of life-threatening deficiencies under NSPIRE: Inspectable Item Deficiency Call-for-Aid System System is blocked, or pull cord is higher than 6 inches off the floor. System does not function properly Carbon Monoxide Alarm Carbon monoxide alarm is missing, not installed, or not installed in a proper location. Carbon monoxide alarm is obstructed. Carbon monoxide alarm does not produce an audio or visual alarm when tested. Chimney A visually accessible chimney, flue, or firebox connected to a fireplace or wood-burning appliance is incomplete or damaged such that it may not safely contain fire and convey smoke and combustion gases to the exterior. Chimney exhibits signs of structural failure. Clothes Dryer Exhaust Ventilation Electric dryer transition duct is detached or missing. Gas dryer transition duct is detached or missing. 328 8-11 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Inspectable Item Deficiency Electric dryer exhaust ventilation system has restricted airflow. Dryer transition duct is constructed of unsuitable material. Gas dryer exhaust ventilation system has restricted airflow. Door – Entry Entry door is missing. Door – Fire Labeled Fire labeled door is missing. Egress Obstructed means of egress. Sleeping room is located on the third floor or below and has an obstructed rescue opening. Fire escape is obstructed. Electrical – Conductor, Outlet, and Switch Outlet or switch is damaged. Exposed electrical conductor. Water is currently in contact with an electrical conductor. Electrical – Service Panel The overcurrent protection device is damaged. Exit Sign Exit sign is damaged, missing, obstructed, or not adequately illuminated. Fire Escape Fire extinguisher is damaged or missing. Fire Extinguisher Fire extinguisher pressure gauge reads over or under- charged. Fire extinguisher service tag is missing, illegible, or expired. Fire extinguisher is damaged or missing. Flammable and Combustible Items Flammable or combustible item is on or within 3 feet of an appliance that provides heat for thermal comfort or a fuel-burning water heater; OR Improperly stored chemicals. Guardrail Guardrail is missing or not installed. Guardrail is not functionally adequate. Heating, Ventilation, and Air Conditioning (HVAC) The inspection date is on or between October 1 and March 31 and the permanently installed heating source is not working or the permanently installed heating source is working and the interior temperature is below 64 degrees Fahrenheit. 329 8-12 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Inspectable Item Deficiency Unvented space heater that burns gas, oil, or kerosene is present. Combustion chamber cover or gas shutoff valve is missing from a fuel burning heating appliance. Fuel burning heating system or device exhaust vent is misaligned, blocked, disconnected, improperly connected, damaged, or missing. Leak – Gas or Oil Natural gas, propane, or oil leak. Mold-like Substance Presence of mold-like substance at extremely high levels is observed visually. Smoke Alarm Smoke alarm is not installed where required. Smoke alarm is obstructed. Smoke alarm does not produce an audio or visual alarm when tested. Sprinkler Assembly Sprinkler head assembly is encased or obstructed by an item or object that is within 18 inches of the sprinkler head. Sprinkler assembly component is damaged, inoperable, or missing and it is detrimental to performance. Sprinkler assembly has evidence of corrosion. Sprinkler assembly has evidence of foreign material that is detrimental to performance. Structural System Structural system exhibits signs of serious failure. Toilet Only 1 toilet was installed, and it is missing. Utilities Utilities not in service, including no running hot water Water Heater Chimney or flue piping is blocked, misaligned, or missing. Gas shutoff valve is damaged, missing, or not installed. The following are considered life-threatening conditions: x Any condition that jeopardizes the security of the unit x Major plumbing leaks or flooding, waterlogged ceiling or floor in imminent danger of falling x Natural or LP gas or leaks - A fuel storage vessel, fluid line, valve, or connection that supplies fuel to a HVAC unit is leaking or a strong odor is detected with potential for explosion or fire or that results in a health risk if inhaled 330 8-13 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 x Any electrical problem or condition that could result in shock or fire - A light fixture is readily accessible, is not securely mounted to the ceiling or wall, and electrical connections or wires are exposed - A light fixture is hanging by its wires - A light fixture has a missing or broken bulb, and the open socket is readily accessible to the tenant during the day-to-day use of the unit - A receptacle (outlet) or switch is missing or broken and electrical connections or wires are exposed - An open circuit breaker position is not appropriately blanked off in a panel board, main panel board, or other electrical box that contains circuit breakers or fuses - A cover is missing from any electrical device box, panel box, switch gear box, control panel, etc., and there are exposed electrical connections - Any nicks, abrasions, or fraying of the insulation that exposes conducting wire - Exposed bare wires or electrical connections - Any condition that results in openings in electrical panels or electrical control device enclosures - Water leaking or ponding near any electrical device - Any condition that poses a serious risk of electrocution or fire and poses an immediate life-threatening condition • Absence of a working heating system when outside temperature is below 68 degrees Fahrenheit between October 1 and May 31. • Utilities not in service, including no running hot water • Conditions that present the imminent possibility of injury • Obstacles that prevent safe entrance or exit from the unit - Any components that affect the function of the fire escape are missing or damaged - Stored items or other barriers restrict or prevent the use of the fire escape in the event of an emergency 331 8-14 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 - The building’s emergency exit is blocked or impeded, thus limiting the ability of occupants to exit in a fire or other emergency • Absence of a functioning toilet in the unit • Absence of at least one working smoke detector per floor* If there is one working smoke detector per floor any additional smoke detectors that are not working will be designated as a non-life-threatening correction as prescribed in the HQS Manual and local fire codes. • Missing or inoperable carbon monoxide detector on each floor. • Missing, damaged, discharged, overcharged, or expired fire extinguisher (where required) • Gas/oil-fired water heater or heating, ventilation, or cooling system with missing, damaged, improper, or misaligned chimney venting • The chimney or venting system on a fuel-fired water heater is misaligned, negatively pitched, or damaged, which may cause improper or dangerous venting or gases • A gas dryer vent is missing, damaged, or is visually determined to be inoperable, or the dryer exhaust is not vented to the outside • A fuel-fired space heater is not properly vented or lacks available combustion air • A non-vented space heater is present • Safety devices on a fuel-fired space heater are missing or damaged • The chimney or venting system on a fuel-fired heating, ventilation, or cooling system is misaligned, negatively pitched, or damaged, which may cause improper or dangerous venting of gas. • Deteriorating paint as defined at 24 CFR 35.110 in a unit built before 1978 that is to be occupied by a family with a child under six years of age if it would prevent the family from moving into the unit If an owner fails to correct life-threatening conditions as required by HACCC, the PHA will enforce the HQS in accordance with HUD requirements. See 8-II-G. If a family fails to correct a family-caused life-threatening condition as required by HACCC, HACCC will enforce the family obligations. See 8-II.H. The owner will be required to repair or replace an inoperable smoke detector or Carbon Monoxide Detector pursuant to California law. 8-I.FD. OWNER AND FAMILY RESPONSIBILITIES [24 CFR 982.404] Family Responsibilities The family is responsible for correcting the following HQSNSPIRE deficiencies: 332 8-15 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Tenant-paid utilities not in service • Failure to provide or maintain appliances owned by the family • Damage to the unit or premises caused by a household member or guest beyond normal wear and tear. that results in a breach of the HQS. "Normal wear and tear" is defined as items which could not be charged against the tenant's security deposit under state law or court practice. • If a family fails to correct a family-caused life-threatening condition as required by HACCC, HACCC will enforce the family obligations. See 8-II.H. HACCC Policy Damages beyond ordinary wear and tear will be considered to be damages which could be assessed against the security deposit under state law or in court practice."Normal wear and tear" is defined as items which could not be charged against the tenant's security deposit under state law or court practice. HACCC inspectors are not able to determine whether or not the repair of the deficiencies documented in the course of the HQS inspection are beyond normal wear and tear and cannot be charged against (or exceeds) the tenant’s security deposit in accordance with state law or court practice. HACCC may consider requests to update responsibly for the repair of deficiencies other than out of service tenant-paid utilities or deficient tenant-provided appliances following the submission of verification demonstrating that deficiencies are beyond “Normal wear and tear” and cannot be charged against (or exceeds) the tenant’s security deposit in accordance with state law or court practice. Examples of such verification could be a court order to pay, an unobjected lease enforcement notice detailing charges to security deposit, agreement between lease parties indicating tenant responsibility that includes an acceptable timeline for repair. If the verification of tenant responsibility is submitted and determined to be grounds for termination of assistance to the family, termination of assistance will proceed in accordance with the policy detailed in Chapter 12. Owner Responsibilities The owner must maintain the unit in accordance with NSPIRE regulations and standards. The owner is not responsible for a breach of the NSPIRE standards that is not caused by the owner, and for which the family is responsible (as provided in 24 CFR 982.404(b) and 982.551(c)). HACCC Policy The owner is responsible for all NSPIRE HQS violations not listed as a family responsibility above, even if the violation is caused by the family’'s living habits (e.g., vermin infestation). However, if the family's actions constitute a serious or repeated lease violation, the owner may take legal action to evict the family. 333 8-16 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The owner will be required to repair an inoperable smoke detector unless the HACCC determines that the family has intentionally disconnected it (by removing batteries or other means). In this case, the family will be required to repair the smoke detector within 24 hours. If an owner fails to correct life-threatening conditions as required by HACCC, HACCC will enforce the NSPIRE standards in accordance with HUD requirements. See 8-II-G.is responsible for all HQS violations not listed as a family responsibility above, even if the violation is caused by the family's living habits (e.g., vermin infestation). However, if the family's actions constitute a serious or repeated lease violation the owner may take legal action to evict the family. 8-I.E . SPECIAL REQUIREMENTS FOR CHILDREN WITH ENVIRONMENTAL INTERVENTION BLOOD LEAD LEVEL [24 CFR 35.1225; FR Notice 1/13/17, Notice PIH 2017-13] PHAs and owners must comply with the requirements and timelines in 24 CFR Part 35 Subpart M—Tenant-Based Rental Assistance and Subpart H—Project-Based Assistance. PHAs and owners are reminded that any deteriorated paint in target housing, or other lead-based paint hazard identified through a lead-based paint risk assessment or lead-based paint inspection is considered a violation of NSPIRE standards. For the HCV program, Subpart M applies to units where a child under age six resides or is expected to reside, common areas that service that unit, and exterior painted surfaces associated with that unit or common areas. For project-based programs, Subpart H applies to assisted units and common areas of the property regardless of whether a child under age six resides or is expected to reside in the unit. NSPIRE does not alter any of the lead-based paint requirements in Part 35 for these programs. Special Requirements for Children with Elevated Blood Lead Level [24 CFR 35.1225; FR Notice 1/13/17; Notice PIH 2017-13] If a PHA is notified by a public health department or other medical health care provider, or verifies information from a source other than a public health department or medical health care provider, that a child of less than six years of age, living in an HCV-assisted unit has been identified as having an environmental intervention blood lead level, HACCC must complete an environmental risk investigation assessment of the dwelling unit within 15 calendar days after being notified by a public health department or other medical health care provider. The environmental investigation must be completed in accordance with program requirements, and the result of the environmental investigation must be immediately provided to the owner of the dwelling unit. In cases where the public health department has already completed an evaluation of the unit, this information must be provided to the owner. The Lead Safe Housing Rule & Lead Disclosure Rule (LSHR) threshold for action pursuant to 24 CFR 35 is as follows: 334 8-17 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Confirmed EBLL >= 5 μg/dL (micrograms/deciliter) - Notification by public health department or other medical health care provider - If reported by family or other source, PHA should attempt to confirm • Aligned with Centers for Disease Control and Prevention (CDC) reference range of 5 μg/dL The risk assessment must be completed in accordance with program requirements, and the result of the risk assessment must be immediately provided to the owner of the dwelling unit. In cases where the public health department has already completed an evaluation of the unit, this information must be provided to the owner. Within 30 days after receiving the risk assessment report from HACCC, or the evaluation from the public health department, the owner is required to complete the reduction of identified lead- based paint hazards in accordance with the lead-based paint regulations [24 CFR 35.1325 and 35.1330]. If the owner does not complete the “hazard reduction” as required, the dwelling unit is in violation of HQSNSPIRE and HACCC will take action in accordance with Section 8-II.G. PHA reporting requirements, and data collection and record keeping responsibilities related to children with an environmental intervention blood lead level are discussed in Chapter 16. 8-I.HF. VIOLATION OF HQS SPACE STANDARDS [24 CFR 5.703(d)(5)982.403] personsUnits assisted under the HCV or PBV programs must have at least one bedroom or living/sleeping room for each two persons. A living room may be used as sleeping (bedroom) space, but no more than two persons may occupy the space [HCV GB p. 10-6]. Each habitable room must have two working outlets or one working outlet and a permanent light. HUD defines a habitable room as a room in a building for living, sleeping, eating, or cooking, but excluding bathrooms, toilet rooms, closets, hallways, storage or utility spaces, and similar areas [FR Notice 5/11/23]. A unit that does not meet these HQS space standards is defined as overcrowded. If HACCC determines that a unit does not meet the HQS space standards is overcrowded because of an increase in family size or a change in family composition, HACCC must issue the family a new voucher, and the family and PHA must try to find an acceptable unit as soon as possible. If an acceptable unit is available for rental by the family, HACCC must terminate the HAP contract in accordance with its terms. 335 8-18 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART II: THE INSPECTION PROCESS 8-II.A. OVERVIEW [24 CFR 982.405] Types of Inspections HACCC conducts the following types of inspections as needed. Each type of inspection is discussed in the paragraphs that follow. • Initial Inspections. HACCC conducts initial inspections in response to a request from the family to approve a unit for participation in the HCV program. The unit must pass the HQSNSPIRE inspection on or before the effective date of the HAP Contract. • Annual/Biennial Inspections. HUD requires HACCC to inspect each unit under lease at least every 24 monthsannually or biennially (or triennially for small rural PHAs as defined in 24 CFR 982.305(b)(2)), depending on to confirm that the unit still meets HQSNSPIRE standards. The inspection may be conducted in conjunction with the family's annual reexamination but also may be conducted separately. • Special Inspections. A special inspection may be requested by the owner, the family, or a third party as a result of problems identified with a unit between biennial inspections. • Quality Control Inspections. HUD requires that a sample of units be inspected by a supervisor or other qualified individual to evaluate the work of the inspector(s) and to ensure that inspections are performed in compliance with the HQSNSPIRE standards. Inspection of PHA-Owned Units [24 CFR 982.352(b)] HACCC must obtain the services of an independent entity to perform all HQSNSPIRE inspections in cases where an HCV family is receiving assistance in a PHA-owned unit. A PHA-owned unit is defined as a unit in a project that is one of the following categories: (1) Owned by a PHA. (2) Owned by an entity wholly controlled by the PHA. (3) Owned by a limited liability company or limited partnership in which the PHA (or an entity wholly controlled by the PHA) holds a controlling interest in the managing member or general partner. A ‘‘controlling interest’’ is— (A) Holding 50 percent or more of the stock of any corporation; (B) Having the power to appoint 50 percent or more of the members of the board of directors of a non-stock corporation (such as a non-profit corporation); (C) Where 50 percent or more of the members of the board of directors of any corporation also serve as directors, officers or employees of the PHA; 336 8-19 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (D) Holding 50 percent or more of all managing member interests in an LLC; (E) Holding 50 percent or more of all general partner interests in a partnership; or (F) Equivalent levels of control in other organizational structures. Units in which PHAs have a different ownership interest are no longer considered to be owned by the PHA. In order to be considered a ‘‘PHA-Owned’’ unit as described above, the PHA must have ownership interest in the building itself, not simply the land beneath the building. The independent agency must communicate the results of each inspection to the family and HACCC. The independent agency must be approved by HUD and may be the unit of general local government for HACCC jurisdiction (unless HACCC is itself the unit of general local government or an agency of such government). For information on the inspection of PHA-owned units in the PBV program, see Chapters 17 and 18. Inspection Costs [Notice PIH 2016-05; 24 CFR 5.705(d)] HACCC may not charge the family or owner for unit inspections or reinspections [24 CFR 982.405(e)]. In the case of inspections of PHA-owned units, HACCC may compensate the independent agency from ongoing administrative fee for inspections performed. HACCC and the independent agency may not charge the family any fee or charge for the inspection [24 CFR.982.352(b)]. The PHA may not charge the owner for the inspection of the unit prior to the initial term of the lease or for a first inspection during assisted occupancy of the unit. However, the PHA may charge a reasonable fee to owners for reinspections in two situations: when the owner notifies the PHA that a repair has been made but the deficiency has not been corrected, and when the time for repairs has elapsed and the deficiency has not been corrected. Fees may not be imposed for tenant-caused damages, for cases in which the inspector could not gain access to the unit, or for new deficiencies discovered during a reinspection. The owner may not pass the cost of a reinspection fee to the family. Reinspection fees must be added to the PHA’s administrative fee reserves and may only be used for activities related to the provision of tenant-based assistance. HACCC Policy HACCC will not charge a fee for failed reinspections. Notice and Scheduling 337 8-20 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The family must allow HACCC to inspect the unit at reasonable times with reasonable notice [24 CFR 982.551(d)]. HACCC Policy Both the family and the owner will be given reasonable notice of all inspections. Except in the case of a life-threatening emergency, reasonable notice is considered to be not less than 48 hours. Inspections may be scheduled between 8:00 a.m. and 7:00 p.m. Generally, inspections will be conducted on business days only. In the case of a life-threatening emergency, HACCC will give as much notice as possible, given the nature of the emergency. Owner and Family Inspection Attendance HUD permits HACCC to set policy regarding family and owner presence at the time of inspection [HCV GB p. 10-27]. HACCC Policy When a family occupies the unit at the time of inspection an authorized adult must be present for the inspection. The presence of the owner or the owner's representative is encouraged but is not required. At initial inspection of a vacant unit, HACCC will inspect the unit in the presence of the owner or owner's representative. The presence of a family representative is permitted but is not required. 8-II.B. INITIAL HQS INSPECTION [24 CFR 982.401(a)] Initial Inspections [FR Notice 1/18/17] Approving UnitsInitial Inspections [FR Notice 1/18/17; Notice PIH 2017-20; and 24 CFR 982.406] HUD regulations require that units assisted under the HCV program be inspected to determine that the units meet NSPIRE standards before the PHA approves assisted tenancy. However, while the PHA is required to conduct an inspection prior to approving assisted tenancy, PHAs have two options for bringing units under HAP contract (or, in the case of PBV, approving occupancy and the execution of a lease) more quickly. The PHA may, but is not required to approve assisted tenancy and start HAP if the unit: x The PHA may, but is not required to, approve assisted tenancy and start HAP if the unit Ffails the initialHQS inspection, but only if the deficiencies identified are non-life-threateningno life- threatening deficiencies are identified. x Further, the PHA may, but is not required to, authorize occupancy if a unit pPassed an alternative inspection in the last 24 months. 338 8-21 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Otherwise, if neither of the above provisions are adopted, the PHA must determine that the unit the family selects meets NSPIRE standards prior to approving tenancy. The PHA may, but is not required to, approve assisted tenancy and start HAP if the unit fails HQS inspection, but only if the deficiencies identified are non-life-threatening. Further, the PHA may, but is not required to, authorize occupancy if a unit passed an alternative inspection in the last 24 months. HACCC Policy The unit must pass the initial HQS iinspection on or before the effective date of the HAP contract. HACCC will not rely on alternative inspections and will conduct an HQSinitial inspection for each unit prior to executing a HAP contract with the owner. Timing of Initial Inspections [24 CFR 982.395(b)(2)(i)] HUD requires PHAs with fewer than 1,250 budgeted units to complete the initial inspection, determine whether the unit satisfies HQSNSPIRE standards, and notify the owner and the family of the determination within 15 days of submission of the Request for Tenancy Approval (RTA). For PHAs with 1,250 or more budgeted units, to the extent practicable such inspection and determination must be completed within 15 days. The 15-day period is suspended for any period during which the unit is not available for inspection [982.305(b)(2)]. HACCC Policy HACCC will complete the initial inspection, determine whether the unit satisfies HQSNSPIRE standards, and notify the owner and the family of the determination within 15 calendar days of submission of the Request for Tenancy Approval (RTA). Inspection Results and Reinspections For new units proposed for the HCV program, life-threatening deficiencies must be resolved before the HAP contract is executed and the family moves into the unit. HACCC Policy If any HQSdeficiencies violations are identified, the owner will be notified of the deficiencies and be given a time frame to correct them. If requested by the owner, the time frame for correcting the deficiencies may be extended by HACCC for good cause. HACCC will reinspect the unit within 7 calendar days of the date the owner notifies HACCC that the required corrections have been made. Where applicable, HACCC may verify that the repair has been completed using alternative methods such as virtual inspection with tenant and owner-signed certification, pictures and 339 8-22 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 other video evidence and/or contractor invoices and receipts of payment that document the work completed, If the time period for correcting the deficiencies (or any PHA-approved extension) has elapsed, or the unit fails HQS at the time of the reinspection, HACCC will notify the owner and the family that the unit has been rejected and that the family must search for another unit. HACCC may agree to conduct a second reinspection, for good cause, at the request of the family and owner. Following a failed reinspection, the family may submit a new Request for Tenancy Approval after the owner has made repairs, if they are unable to locate another suitable unit. Utilities Generally, at initial lease-up the owner is responsible for demonstrating that all utilities are in working order including those utilities that the family will be responsible for paying. HACCC Policy UIf utility service must beis not available for testing at the time of the initial inspection, HACCC will allow the utilities to be placed in service after the unit has met all other HQS requirements. HACCC will reinspect the unit to confirm that utilities are operational before the HAP contract is executed by HACCC. Appliances [Form HUD-52580] HACCC Policy If the family is responsible for supplying the stove and/or refrigerator, HACCC will allow the stove and refrigerator to be placed in the unit after the unit has met all other HQSNSPIRE requirements. The required appliances must be in place before the HAP contract is executed by HACCC. HACCC will execute the HAP contract based upon a written certification from the family and the owner that the appliances have been installed and are working. 8-II.C. ANNUAL/BIENNIAL HQS INSPECTIONS [ 24 CFR 982.405 and 982.406; Notice PIH 2016-05] HUD requires the PHA to inspect each unit under HAP contract at least biennially (or triennially for small rural PHAs), to confirm that the unit still meets NSPIRE standards. The inspection may be conducted in conjunction with the family's annual reexamination but also may be conducted separately. HACCC Policy 340 8-23 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Each unit under HAP contract must be inspected biennially within 24 months of the last full HQS inspection. The PHA reserves the right to require annual inspections of any unit or owner at any time. HACCC will not rely on alternative inspection standards. Scheduling the Inspection Each unit under HAP contract must be inspected within 24 months of the last full HQSNSPIRE inspection after July 1, 2013. If no inspection is conducted by July 1, 2013, an inspection must be completed within 12 months from the last full HQSNSPIRE inspection. Thereafter, the unit must be inspected no later than 24 months from the last inspection date. HACCC Policy If an adult cannot be present on the scheduled date, the family should request that HACCC reschedule the inspection. HACCC and family will agree on a new inspection date that generally should take place within 14 calendar days of the originally-scheduled date. HACCC may schedule an inspection more than 14 calendar days after the original date for good cause at the discretion of HACCC. If the family misses the first scheduled appointment without requesting a new inspection date, HACCC will automatically schedule a second inspection. If the family misses two scheduled inspections without PHA approval, HACCC will consider the family to have violated its obligation to make the unit available for inspection. This may result in termination of the family’s assistance in accordance with Chapter 12. 8-II.D. SPECIAL INSPECTIONS [24 CFR 982.405(g)] If a participant family or government official reports a life-threatening condition which the owner would be required to repair within 24 hours, the PHA must inspect the unit within 24 hours of notification. If the reported condition is not life-threatening, the PHA must inspect the unit within 15 days of notification. HACCC Policy During a special inspection, HACCC generally will inspect only those deficiencies that were reported in writing to the owner and given the owner a reasonable period of time to respond. HACCC may request a copy of the written notice to ensure the landlord has been notified and been given the opportunity to make repairs. HACCC reserves the right to waive this requirement when necessary. HACCC will complete a special inspection for any reported life-threatening conditions. During the inspection, the inspector will inspect the reported items, however, the inspector will record any additional HQS deficiencies that are observed and will require the responsible party to make the necessary repairs. Pictures may be taken during the inspection. 341 8-24 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If the Annual/biennial inspection has been scheduled or is due within 90 days of the date the special inspection is scheduled HACCC may elect to conduct a full Annual/biennial inspection. 8-II.E. QUALITY CONTROL INSPECTIONS [24 CFR 982.405(b); HCV GB, p. 10-32] HUD requires a PHA supervisor or other qualified person to conduct quality control inspections of a sample of units to ensure that each inspector is conducting accurate and complete inspections and that there is consistency in the application of the HQSNSPIRE standards. The unit sample must include only units that have been inspected within the preceding 3 months. The selected sample will include (1) each type of inspection (initial, biennial, and special), (2) inspections completed by each inspector, and (3) units from a cross-section of neighborhoods. 8-II.F. INSPECTION RESULTS AND REINSPECTIONS FOR UNITS UNDER HAP CONTRACT Correction Timeframes Each deficiency is identified in the NPSIRE standards as either life-threatening, severe, moderate, or low. For units under HAP contract, life-threatening deficiencies must be corrected within 24 hours after notice has been provided. All other non-life-threatening deficiencies (severe and moderate) must be corrected within 30 days (or a PHA-approved extension) after notice has been provided. If low deficiencies are present in a unit, these deficiencies result in a pass and would only be noted by the inspector for informational purposes. Notification of Corrective Actions The owner and the family will be notified in writing of the results of all inspections. When an inspection identifies HQSdeficiencies failures, HACCC will determine (1) whether or not the failure is a life- threatening condition and (2) whether the family or owner is responsible. HACCC Policy When life-threatening conditions deficiencies are identified, HACCC will immediately notify both parties by telephone, facsimile, or email. The notice will specify who is responsible for correcting the violation. The corrective actions must be taken within 24 hours of HACCC’s notice. The owner must notify HACCC staff within 24 hours and provide documentation (picture, receipt, invoice, etc) that the repair has been corrected within the specified 24-hour period. A reinspection will be conducted within 24 hours unless it occurs on a weekend or holiday in which case the reinspection will occur on the next business day. 342 8-25 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 When failures that are not life-threateningsevere or moderate are identified, HACCC will send the owner and the family a written notification of the inspection results within 7 calendar days of the inspection. The written notice will specify who is responsible for correcting the violation, and the time frame within which the failure must be corrected. Generally, not more than 30 days will be allowed for the correction. If low deficiencies are identified, these deficiencies will only be noted for informational purposes. The notice of inspection results will inform the owner that if life-threatening conditions are not corrected within 24 hours, and non-life-threatening conditions are not corrected within the specified time frame (or any PHA-approved extension), the owner’s HAP will be abated in accordance with HACCC Policy (see 8-II.G.). Likewise, in the case of family caused deficiencies, the notice will inform the family that if corrections are not made within the specified time frame (or any PHA-approved extension, if applicable) the family’s assistance will be terminated in accordance with HACCC Policy (see Chapter 12). Extensions For conditions that are life-threatening deficiencies, HACCC cannot grant an extension to the 24- hour corrective action period. For conditions that are not life-threateningsevere or moderate, HACCC may grant an exception to the required time frames for correcting the violation, if HACCC determines that an extension is appropriate [24 CFR 982.404]. HACCC Policy Extensions will be granted in cases where HACCC has determined that the owner has made a good faith effort to correct the deficiencies and is unable to for reasons beyond the owner’s control. Reasons may include, but are not limited to: - A repair cannot be completed because required parts or services are not available. - A repair cannot be completed because of weather conditions. - A reasonable accommodation is needed because the family includes a person with disabilities. HACCC will not grant oral extensions. Requests for extensions must be made in writing, preferably using HACCC form, however emails, faxes and letters will be accepted. Must be received no less than 7 calendar days before the scheduled inspection The length of the extension will be determined on a case-by-case basis. Reinspections HACCC Policy HACCC will conduct a reinspection to verify that failed items have been corrected. Where applicable, HACCC may verify that the repair has been completed using alternative methods such as virtual inspection with tenant and owner-signed certification, pictures or other video 343 8-26 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 evidence, and/or contractor invoices and receipts of payment that document the work completed, The family and owner will be given reasonable notice of the reinspection appointment. In the case of life-threatening conditions, the owner must notify HACCC staff within 24 hours and provide documentation (picture, receipt, invoice, etc) that the repair has been corrected within the specified 24-hour period. A reinspection will be conducted within 24 hours unless it occurs on a weekend or holiday in which case the reinspection will occur on the next business day. If the deficiencies have not been corrected by the time of the reinspection, HACCC will send a notice of abatement to the owner, or in the case of family caused violations, a notice of termination to the family, in accordance with PHA policies. If HACCC is unable to gain entry to the unit in order to conduct the scheduled reinspection, HACCC will consider the family to have violated its obligation to make the unit available for inspection. This may result in termination of the family’s assistance in accordance with Chapter 12. The PHA will not accept self-certification of repairs. Photos or other documentation of repairs will not be accepted in lieu of a reinspection. 8-II.G. ENFORCING OWNER COMPLIANCE If the owner fails to maintain the dwelling unit in accordance with HQSNSPIRE standards, HACCC must take prompt and vigorous action to enforce the owner obligations. HAP Abatement If an owner fails to correct HQS deficiencies by the time specified by HACCC, HUD requires HACCC to abate housing assistance payments no later than the first of the month following the specified correction period (including any approved extension) [24 CFR 985.3(f)]. No retroactive payments will be made to the owner for the period of time the rent was abated. Owner rents are not abated as a result of HQSdeficiencies failures that are the family's responsibility. HACCC Policy HACCC will make all HAP abatements effective the first of the month following the expiration of HACCC specified correction period (including any extension). HACCC will inspect abated units within 7 calendar days of the owner's notification that the work has been completed. Payment will resume effective on the earlier of the day the unit passes inspection or the date the correction was reported completed. Where applicable, HACCC may verify that the repair has been completed using alternative methods such as virtual inspection with tenant and owner-signed certification, pictures and other video evidence and/or contractor invoices and receipts of payment that document the work completed, 344 8-27 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 During any abatement period the family continues to be responsible for its share of the rent. The owner must not seek payment from the family for abated amounts and may not use the abatement as cause for eviction. HAP Contract Termination HACCC must decide how long any abatement period will continue before the HAP contract will be terminated. HACCC should not terminate the contract until the family finds another unit, provided the family does so in a reasonable time [HCV GB p. 10-29] and must give the owner reasonable notice of the termination. HACCC will issue a voucher to permit the family to move to another unit as described in Chapter 10. HACCC Policy The maximum length of time that HAP may be abated is 90 days. However, if the owner completes corrections and notifies HACCC before the termination date of the HAP contract, HACCC may rescind the termination notice if (1) the family still resides in the unit and wishes to remain in the unit and (2) the unit passes inspection. Reasonable notice of HAP contract termination by HACCC is 30 days. 8-II.H. ENFORCING FAMILY COMPLIANCE WITH HQS [24 CFR 982.404(b)] Families are responsible for correcting any HQSdeficiencies violations listed in paragraph 8.I.D. If the family fails to correct a violation within the period allowed by HACCC (and any extensions), HACCC will terminate the family’s assistance, according to the policies described in Chapter 12. If the owner carries out a repair for which the family is responsible under the lease, the owner may bill the family for the cost of the repair. 345 8-28 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART III: RENT REASONABLENESS [24 CFR 982.507] 8-III.A. OVERVIEW Except in the case of certain LIHTC- and HOME-assisted units, no HAP contract can be approved until HACCC has determined that the rent for the unit is reasonable. The purpose of the rent reasonableness test is to ensure that a fair rent is paid for each unit rented under the HCV program. HUD regulations define a reasonable rent as one that does not exceed the rent charged for comparable, unassisted units in the same market area. HUD also requires that owners not charge more for assisted units than for comparable units on the premises. This part explains the method used to determine whether a unit’s rent is reasonable. PHA-Owned Units [24 CFR 982.352(b)] In cases where an HCV family is receiving assistance in a PHA-owned unit, HACCC must obtain the services of an independent entity to determine rent reasonableness in accordance with program requirements, and to assist the family in negotiating the contract rent when the family requests assistance. A PHA-owned unit is defined as a unit in a project that is one of the following categories: (1) Owned by a PHA. (2) Owned by an entity wholly controlled by the PHA. (3) Owned by a limited liability company or limited partnership in which the PHA (or an entity wholly controlled by the PHA) holds a controlling interest in the managing member or general A ‘‘controlling interest’’ is— (A) Holding 50 percent or more of the stock of any corporation; (B) Having the power to appoint 50 percent or more of the members of the board of directors of a non-stock corporation (such as a non-profit corporation); (C) Where 50 percent or more of the members of the board of directors of any corporation also serve as directors, officers or employees of the PHA; (D) Holding 50 percent or more of all managing member interests in an LLC; (E) Holding 50 percent or more of all general partner interests in a partnership; or (F) Equivalent levels of control in other organizational structures. Units in which PHAs have a different ownership interest are no longer considered to be owned by the PHA. In order to be considered a ‘‘PHA-Owned’’ unit as described above, the PHA must have ownership interest in the building itself, not simply the land beneath the building. 346 8-29 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The independent agency must communicate the results of the rent reasonableness determination to the family and HACCC. The independent agency must be approved by HUD and may be the unit of general local government for HACCC jurisdiction (unless HACCC is itself the unit of general local government or an agency of such government). 8-III.B. WHEN RENT REASONABLENESS DETERMINATIONS ARE REQUIRED Owner-Initiated Rent Determinations HACCC must make a rent reasonableness determination at initial occupancy and whenever the owner requests a rent adjustment. The owner and family first negotiate the rent for a unit. HACCC (or independent agency in the case of PHA-owned units) will assist the family with the negotiations upon request. At initial occupancy HACCC must determine whether the proposed rent is reasonable before a HAP Contract is signed. The owner must not change the rent during the initial lease term. Subsequent requests for rent adjustments must be consistent with the lease between the owner and the family. Rent increases will not be approved unless any failed items identified by the most recent HQS inspection have been corrected. HACCC Policy Initial Rents Once the initial rent has been negotiated by the tenant and owner, HACCC will determine if the requested rent is reasonable using the rent reasonableness methodology described in this Chapter and verification of the unit data and condition collected at the initial inspection. A determination about rent reasonableness will be made within 8 calendar days following the inspection and receipt of all required documentation. If the tenant is unable to afford the initial rent under HUD’s affordability rule and/or if the requested rent is not reasonable, HACCC will offer the owner a rent that is reasonable for the unit and affordable to the tenant. If the owner accepts this rent, HACCC will proceed with processing the new contract. If the owner rejects the rent offered, the tenant will be given the opportunity to search for another unit within the remaining time of the voucher plus the “tolled time” (see Chapter 5.II.E for more information). Rent Increases After the initial occupancy period, the owner may request a rent adjustment in accordance with the owner’s lease. HACCC may request owners provide information about the rents charged for other units on the premises, if the premises include more than 4 units. In evaluating the proposed rents in comparison to other units on the premises HACCC will consider unit size and length of tenancy in the other units. 347 8-30 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC will determine whether the requested increase is reasonable within 30 calendar days of receiving the request from the owner. The owner will be notified of the determination in writing. All approved rent adjustments will be effective the first of the month following a) 60 calendar days after the postmark date or fax time-date confirmation of the owner’s request or b) the date the unit passed its latest annual inspection or c) on the date specified by the owner, whichever is later. If the request is incomplete or incorrect the owner will be notified within 15 calendar days and given an opportunity to resubmit the request. The effective date will be the first of the month following a) 60 calendar days after the postmark date or fax time-date confirmation of the owners corrected request, or b) the date the unit passed its latest annual inspection or c) on the date specified by the owner, whichever is later. PHA- and HUD-Initiated Rent Reasonableness Determinations HUD requires HACCC to make a determination of rent reasonableness (even if the owner has not requested a change) if there is a 10 percent decrease in the Fair Market Rent that goes into effect at least 60 days before the contract anniversary date. HUD also may direct HACCC to make a determination at any other time. HACCC may decide that a new determination of rent reasonableness is needed at any time. HACCC Policy In addition to the instances described above, HACCC will make a determination of rent reasonableness at any time after the initial occupancy period if: (1) HACCC determines that the initial rent reasonableness determination was in error or (2) HACCC determines that the information provided by the owner about the unit or other units on the same premises was incorrect. For purposes of determining rent reasonableness, information from the Contra Costa County Tax Assessors office must be used to verify the unit information. The description of the unit listed with the tax assessors' office will be the information used. If there is a discrepancy, the Owner/Property Manager must contact the Contra Costa County Tax Assessors Office at 925-313-7400 to report inconsistencies or errors in description. Often when properties have had repairs or additions, the normal process involves issuance of permits for completion of work. Upon completion, the permit is forwarded to the County Assessor's office for review, reassessment and correction. LIHTC- and HOME-Assisted Units [24 CFR 982.507(c)] For units receiving low-income housing tax credits (LIHTCs) or units assisted under HUD’s HOME Investment Partnerships (HOME) Program, a rent comparison with unassisted units is not required if the voucher rent does not exceed the rent for other LIHTC- or HOME-assisted units in the project that are not occupied by families with tenant-based assistance. For LIHTCs, if the rent requested by the owner does exceed the LIHTC rents for non-voucher families, the PHA must perform a rent comparability study in accordance with program regulations. In such cases, the rent shall not exceed the lesser of: (1) the reasonable rent as determined from the 348 8-31 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 rent comparability study; or (2) the payment standard established by the PHA for the unit size involved. 8-III.C. HOW COMPARABILITY IS ESTABLISHED Factors to Consider HUD requires PHAs to take into consideration the factors listed below when determining rent comparability. HACCC may use these factors to make upward or downward adjustments to the rents of comparison units when the units are not identical to the HCV-assisted unit. • Location and age • Unit size including the number of rooms and square footage of rooms - •The type of unit including construction type (e.g., single family, duplex, garden, low-rise, high-rise) - •The quality of the units including the quality of the original construction, maintenance and improvements made • Amenities, services, and utilities included in the rent Units that Must Not Be Used as Comparables Comparable units must represent unrestricted market rents. Therefore, units that receive some form of federal, state, or local assistance that imposes rent restrictions cannot be considered comparable units. These include units assisted by HUD through any of the following programs: Section 8 project- based assistance, Section 236 and Section 221(d)(3) Below Market Interest Rate (BMIR) projects, HOME or Community Development Block Grant (CDBG) program- assisted units in which the rents are subsidized; units subsidized through federal, state, or local tax credits; units subsidized by the Department of Agriculture rural housing programs, and units that are rent-controlled by local ordinance. Note: Notice PIH 2011-46, issued August 17, 2011, provides further guidance on the issue of what constitutes an assisted unit. Rents Charged for Other Units on the Premises The Request for Tenancy Approval (HUD-52517) requires owners to provide information, on the form itself, about the rent charged for other unassisted comparable units on the premises if the premises include more than 4 units. 349 8-32 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 By accepting HACCC payment each month the owner certifies that the rent is not more than the rent charged for comparable unassisted units on the premises. If asked to do so, the owner must give HACCC information regarding rents charged for other units on the premises. 8-III.D. PHA RENT REASONABLENESS METHODOLOGY How Market Data Is Collected HACCC Policy HACCC contracts with GoSection8Affordablehousing.com to collect and maintain data on market rents in HACCC’s jurisdiction. Information sources used by GoSection8Affordablehousing.com include, but are not limited to, newspapers, internet listing services, realtors, market surveys and inquiries of owners and property managers. All HUD required comparison factors are maintained in the GoSection8Affordablehousing.com rent comparable database. GoSection8Affordablehousing.com is updated on an ongoing basis and rent information that is more than 12 months old is no longer accessible in the database. How Rents Are Determined HACCC Policy In order to determine whether or not a requested rent is comparable HUD requires housing authorities to consider: location, quality, size, unit type and age of the contract unit as well as amenities, housing services, maintenance, and owner-provided utilities. HACCC will compare the unit to other similar units in the go GoSection8Affordablehousing.com Rent Comparable Database to determine if the rent is reasonable. The GoSection8Affordablehousing.com Rent Reasonableness Software utilizes a unit-to-unit comparison, similar to real estate appraisal, where a direct comparison is made between the rent for the subject HCV assisted unit and the rent for unassisted comparable units. Comparable units are drawn from a database of current, real-time market data maintained by the vendor. After identifying specific units to use as comparables based on location, unit type and characteristics, GoSection8Affordablehousing.com provides similarity and credibility scores and market rent data to determine if the rent is supported by the market data. GoSection8Affordablehousing.com also employs unit-to-market principles to assist staff in making market-based adjustments to rental values. The blended approach - identifying comparable units that are the closest possible match to the proposed HCV assisted unit and then adjusting rental values to address any remaining critical differences that impact market rent - ensures the results are grounded in accurate market-based rental values. The GoSection8Affordablehousing.com Database will return the three units whose similarity and credibility score most closely matches the subject unit. All comparables used to evaluate 350 8-33 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 the rent must have a similarity rating of 90 % or more and a credibility rating of 70 % or more, when available. If three comparables that have similarity ratings of 90% or more and credibility ratings of 70 % or more cannot be found, then a manager must approve the rent reasonableness certification. The subject unit rent must be supported by the three comparables to be approved. If the rent is not supported by the three comparables the Estimated Monthly Market Rent (EMMR), will be used. The Estimated Monthly Market Rent, which is the average value of the three adjusted market rents, will be the maximum rent that will be approved. In extenuating circumstances where the Estimated Monthly Market Rent is inappropriate, staff must document the reason for deviating from the EMMR on the Rent Reasonableness Certification. Copies of the three comparables and documentation, including the Assisted Unit Survey form, Rent Reasonable Valuation from GoSection8Affordablehousing.com and the Rent Survey from Yardi for the subject unit will be placed in the client file to support the rent reasonableness determination. When a comparable project offers rent concessions (e.g., first month rent-free, or reduced rent) reported monthly rents will be adjusted accordingly. For example, if a comparable project reports rents of $500/month but new tenants receive the first month's rent free, the actual rent for the unit would be calculated as follows: $500 x 11 months = 5500/12 months = actual monthly rent of $458. For properties where the owner has unassisted units at market rent in the same building, the unassisted unit rents will also be considered for rent reasonableness determination. HACCC will notify the owner of the rent HACCC can approve based upon its analysis of rents for comparable units. If the comparable rent is lower than that requested by the owner, the owner will be requested to submit information about other comparable units in the market area. HACCC will confirm the accuracy of the information provided and consider this additional information when making rent determinations. The owner must submit any additional information within 7 calendar days of HACCC’s request for information or the owner’s request to submit information. If the comparable rent is still lower, HACCC staff will ask the owner if they is willing to accept the comparable rent. EXHIBIT 8-1: AFFIRMATIVE HABITABILITY REQUIREMENTS Commented [KH1]: DTP: Please format to remove old cells and make consistent. 351 8-34 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Affirmative Habitability Requirements: Inside Must include at least 1 battery-operated or hard-wired smoke detector, in proper working condition, on each level of the property. Must meet or exceed the carbon monoxide detection standards set by the Secretary through Federal Register notification. Any outlet installed within 6 feet of a water source must be GFCI protected. Must have a guardrail when there is an elevated walking surface with a drop off of 30 inches or greater measured vertically. Must have permanently mounted light fixtures in any kitchens and each bathroom. May not contain unvented space heaters that burn gas, oil or kerosene. Affirmative Habitability Requirements: Outside Any outlet installed within 6 feet of a water source must be GFCI-protected. Must have a guardrail when there is an elevated walking surface with a drop off of 30 inches or greater measured vertically. 352 8-35 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Affirmative Habitability Requirements: Unit Must have hot and cold running water in the bathroom and kitchen, including an adequate source of safe drinking water in the bathroom and kitchen. Must include its own bathroom or sanitary facility that is in proper operating condition and usable in privacy. It must contain a sink, a bathtub or shower, and an interior flushable toilet. Must have at least one battery-operated or hard-wired smoke detector, in proper working condition, in the following locations: x On each level of the unit AND x Inside each bedroom or sleeping area AND x With 21 feet of any door toa bedroom measured along a path of travel AND x Where a smoke detector is installed outside a bedroom is separated from an adjacent living area by a door, a smoke detector must also be installed in the living area side of the door. If the unit is occupied by a hearing-impaired person, the smoke detectors must have an alarm system designed for hearing-impaired persons. Must have a living room and a kitchen area with a sink, cooking appliance, refrigerator, food preparation area and food storage area. Must have two working outlets or one working outlet and one permanent light fixture within all habitable rooms. Must have a permanently mounted light fixture in each bathroom and in the kitchen. Outlets within 6 feet of water source must be GFCI-protected. Must have permanently installed heating source. No units may contain unvented space heaters that burn gas, oil or kerosene. Must have a guard rail when there is an elevated walking surface with a drop off of 30 inches or greater measured vertically. Must have at least one bedroom or living/sleeping room for each two persons. 353 8-36 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EXHIBIT 8-1: OVERVIEW OF HUD HOUSING QUALITY STANDARDS Note: This document provides an overview of HQS. For more detailed information see the following documents: •24 CFR 982.401, Housing Quality Standards (HQS) •Housing Choice Voucher Guidebook, Chapter 10. •HUD Housing Inspection Manual for Section 8 Housing •HUD Inspection Form, form HUD-52580 (3/01) and Inspection Checklist, form HUD-52580-A (9/00) Sanitary Facilities The dwelling unit must include sanitary facilities within the unit. The sanitary facilities must be usable in privacy and must be in proper operating condition and adequate for personal cleanliness and disposal of human waste. Food Preparation and Refuse Disposal The dwelling unit must have space and equipment suitable for the family to store, prepare, and serve food in a sanitary manner. Space and Security The dwelling unit must provide adequate space and security for the family. This includes having at least one bedroom or living/sleeping room for each two persons. Thermal Environment The unit must have a safe system for heating the dwelling unit. Air conditioning is not required but if provided must be in proper operating condition. The dwelling unit must not contain unvented room heaters that burn gas, oil, or kerosene. Portable electric room heaters or kitchen stoves with built-in heating units are not acceptable as a primary source of heat for units located in climatic areas where permanent heat systems are required. Illumination and Electricity Each room must have adequate natural or artificial illumination to permit normal indoor activities and to support the health and safety of occupants. The dwelling unit must have sufficient electrical sources so occupants can use essential electrical appliances. Minimum standards are set for different types of rooms. Once the minimum standards are met, the number, type and location of electrical sources are a matter of tenant preference. 354 8-37 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Structure and Materials The dwelling unit must be structurally sound. Handrails are required when four or more steps (risers) are present, and protective railings are required when porches, balconies, and stoops are thirty inches or more off the ground. The elevator servicing the unit must be working [if there is one]. Manufactured homes must have proper tie-down devices capable of surviving wind loads common to the area. Interior Air Quality The dwelling unit must be free of air pollutant levels that threaten the occupants’ health. There must be adequate air circulation in the dwelling unit. Bathroom areas must have one openable window or other adequate ventilation. Any sleeping room must have at least one window. If a window was designed to be opened, it must be in proper working order. Water Supply The dwelling unit must be served by an approved public or private water supply that is sanitary and free from contamination. Plumbing fixtures and pipes must be free of leaks and threats to health and safety. Lead-Based Paint Lead-based paint requirements apply to dwelling units built prior to 1978 that are occupied or can be occupied by families with children under six years of age, excluding zero-bedroom dwellings. Owners must: • Disclose known lead-based paint hazards to prospective tenants before the lease is signed, • Provide all prospective families with "Protect Your Family from Lead in Your Home", • Stabilize deteriorated painted surfaces and conduct hazard reduction activities within 30 days when identified by HACCC • Notify tenants each time such an activity is performed • Conduct all work in accordance with HUD safe practices • As part of ongoing maintenance ask each family to report deteriorated paint. • Maintain covered housing without deteriorated paint if there is child under six in the family For units occupied by environmental intervention blood lead level (lead poisoned) children under six years of age, a risk assessment must be conducted (paid for by HACCC). If lead hazards are identified during the risk assessment, the owner must complete hazard reduction activities within 30 days. 355 8-38 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 See HCV GB p. 10-15 for a detailed description of these requirements. For additional information on lead-based paint requirements see 24 CFR 35, Subparts A, B, M, and R. Access Use and maintenance of the unit must be possible without unauthorized use of other private properties. The building must provide an alternate means of exit in case of fire. Site and Neighborhood The site and neighborhood must be reasonably free from disturbing noises and reverberations, excessive trash or vermin, or other dangers to the health, safety, and general welfare of the occupants. Sanitary Condition The dwelling unit and its equipment must be in sanitary condition and free of vermin and rodent infestation. The unit must have adequate barriers to prevent infestation. Smoke Detectors Smoke detectors must be installed in accordance with and meet the requirements of the National Fire Protection Association Standard (NFPA) 72 (or its successor standards). If the dwelling unit is occupied by any person with a hearing impairment, smoke detectors must have an appropriate alarm system as specified in NFPA 72 (or successor standards). Hazards and Heath/Safety The unit, interior and exterior common areas accessible to the family, the site, and the surrounding neighborhood must be free of hazards to the family's health and safety. 356 8-39 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EXHIBIT 8-2: SUMMARY OF TENANT PREFERENCE AREAS RELATED TO HOUSING QUALITY Note: This document provides an overview of unit and site characteristics and conditions for which the family determines acceptability. For more detailed information see the following documents: • Housing Choice Voucher Guidebook, Chapter 10. • HUD Housing Inspection Manual for Section 8 Housing • HUD Inspection Form, form HUD-52580 (3/01) and Inspection Checklist, form HUD-52580-A (9/00) Provided the minimum housing quality standards have been met, HUD permits the family to determine whether the unit is acceptable with regard to the following characteristics. 1. Sanitary Facilities. The family may determine the adequacy of the cosmetic condition and quality of the sanitary facilities, including the size of the lavatory, tub, or shower; the location of the sanitary facilities within the unit; and the adequacy of the water heater. 2. Food Preparation and Refuse Disposal. The family selects size and type of equipment it finds acceptable. When the family is responsible for supplying cooking appliances, the family may choose to use a microwave oven in place of a conventional oven, stove, or range. When the owner is responsible for providing cooking appliances, the owner may offer a microwave oven in place of an oven, stove, or range only if other subsidized and unsubsidized units on the premises are furnished with microwave ovens only. The adequacy of the amount and type of storage space, the cosmetic conditions of all equipment, and the size and location of the kitchen are all determined by the family. 3. Space and Security. The family may determine the adequacy of room sizes and room locations. The family is also responsible for deciding the acceptability of the type of door and window locks. 4. Energy conservation items. The family may determine whether the amount of insulation, presence of absence of storm doors and windows and other energy conservation items are acceptable. 5. Illumination and Electricity. The family may determine whether the location and the number of outlets and fixtures (over and above those required to meet HQS standards) are acceptable or if the amount of electrical service is adequate for the use of appliances, computers, or stereo equipment. 6. Structure and Materials. Families may determine whether minor defects, such as lack of paint, or worn flooring or carpeting will affect the livability of the unit. 357 8-40 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 7. Indoor Air. Families may determine whether window and door screens, filters, fans, or other devices for proper ventilation are adequate to meet the family’s needs. However, if screens are present they must be in good condition. 8. Sanitary Conditions. The family determines whether the sanitary conditions in the unit, including minor infestations, are acceptable. 9. Neighborhood conditions. Families may determine whether neighborhood conditions such as the presence of drug activity, commercial enterprises, and convenience to shopping will affect the livability of the unit. Families have no discretion with respect to lead-based paint standards and smoke detectors. 358 9-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 CHAPTER 9 GENERAL LEASING POLICIES INTRODUCTION Chapter 9 covers the lease-up process from the family's submission of a Request for Tenancy Approval to execution of the HAP contract. In order for the PHA to assist a family in a particular dwelling unit, or execute a Housing Assistance Payments (HAP) contract with the owner of a dwelling unit, the PHA must determine that all the following program requirements are met: • The unit itself must qualify as an eligible unit [24 CFR 982.305(a)] • The unit must be inspected by the PHA and meet the National Standards for the Physical Inspection of Real Estate (NSPIRE) Housing Quality Standards (HQS) [24 CFR 982.305(a)] • The lease offered by the owner must be approvable and must include the required Tenancy Addendum [24 CFR 982.305(a)] • The rent to be charged by the owner for the unit must be reasonable [24 CFR 982.305(a)] • The owner must be an eligible owner, approvable by the PHA, with no conflicts of interest [24 CFR 982.306] • For families initially leasing a unit only: Where the gross rent of the unit exceeds the applicable payment standard for the family, the share of rent to be paid by the family cannot exceed 40 percent of the family’s monthly adjusted income [24 CFR 982.305(a)] 359 9-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 9-I.A. TENANT SCREENING The PHA has no liability or responsibility to the owner or other persons for the family’s behavior or suitability for tenancy [24 CFR 982.307(a)(1)]. The PHA may elect to screen applicants for family behavior or suitability for tenancy. See Chapter 3 for a discussion of the PHA’s policies with regard to screening applicant families for program eligibility [24 CFR 982.307(a)(1)]. The owner is responsible for screening and selection of the family to occupy the owner’s unit. At or before PHA approval of the tenancy, the PHA must inform the owner that screening and selection for tenancy is the responsibility of the owner [24 CFR 982.307(a)(2)]. The PHA must also inform the owner or manager or their rights and obligations under the Violence against Women Act of 2005 (VAWA) [24 CFR 5.2005(a)(2)]. The PHA must provide the owner with the family’s current and prior address (as shown in the PHA records) and the name and address (if known to the PHA) of the landlord at the family’s current and prior address [24 CFR 982.307(b)(1)]. The PHA is permitted, but not required, to offer the owner other information in the PHA’s possession about the tenancy history or drug trafficking of family members [24 CFR 982.307(b)(2)]. The PHA’s policy on providing information to the owner must be included in the family’s briefing packet [24 CFR 982.307(b)(3)]. The PHA may not disclose to the owner any confidential information provided by the family in response to a PHA request for documentation of domestic violence, dating violence, sexual assault, or stalking or human trafficking except at the written request or with the written consent of the individual providing the documentation [see 24 CFR 5.2007(b)(4)]. HACCC Policy The PHA will not screen applicants for family behavior or suitability for tenancy. The PHA will not provide additional screening information to the owner. 9-I.B. REQUESTING TENANCY APPROVAL [Form HUD-52517] After the family is issued a voucher, the family must locate an eligible unit, with an owner or landlord willing to participate in the voucher program. Once a family finds a suitable unit and the owner is willing to lease the unit under the program, the owner and the family must request the PHA to approve the assisted tenancy in the selected unit. The owner and the family must submit two documents to the PHA: • Completed Request for Tenancy Approval (RTA) – Form HUD-52517 360 9-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Copy of the proposed lease, including the HUD-prescribed Tenancy Addendum – Form HUD- 52641-A The RTA contains important information about the rental unit selected by the family, including the unit address, number of bedrooms, structure type, year constructed, utilities included in the rent, and the requested beginning date of the lease, necessary for the PHA to determine whether to approve the assisted tenancy in this unit. Owners must certify to the most recent amount of rent charged for the unit and provide an explanation for any difference between the prior rent and the proposed rent. Owners must certify that they are not the parent, child, grandparent, grandchild, sister or brother of any member of the family, unless the PHA has granted a request for reasonable accommodation for a person with disabilities who is a member of the tenant household. For units constructed prior to 1978, owners must either 1) certify that the unit, common areas, and exterior have been found to be free of lead-based paint by a certified inspector; or 2) attach a lead- based paint disclosure statement. Both the RTA and the proposed lease must be submitted no later than the expiration date stated on the voucher. [HCV GB p.8-15]. HACCC Policy The RTA must be signed by both the family and the owner. The owner may submit the RTA on behalf of the family. Completed RTA (including the proposed dwelling lease) must be submitted as hard copies, in-person, by mail, or by fax. The family may not submit, and the PHA will not process, more than one (1) RTA at a time. When the family submits the RTA the PHA will review the RTA for completeness. - If the RTA is incomplete (including lack of signature by family, owner, or both), or if the dwelling lease is not submitted with the RTA, the PHA will notify the family and the owner of the deficiencies. - Missing information and/or missing documents will only be accepted as hard copies, in- person, by mail, or by fax. The PHA will not accept missing information over the phone. When the family submits the RTA and proposed lease, the PHA will also review the terms of the RTA for consistency with the terms of the proposed lease. - If the terms of the RTA are not consistent with the terms of the proposed lease, the PHA will notify the family and the owner of the discrepancies. 361 9-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 - Corrections to the terms of the RTA and/or the proposed lease will only be accepted as hard copies, in-person, by mail or by fax. The PHA will not accept corrections by phone. Because of the time sensitive nature of the tenancy approval process, the PHA will attempt to communicate with the owner and family by phone, fax, or email. The PHA will use mail when the parties cannot be reached by phone, fax, or email. 9-I.C. OWNER PARTICIPATION The PHA does not formally approve an owner to participate in the HCV program. However, there are a number of criteria where the PHA may deny approval of an assisted tenancy based on past owner behavior, conflict of interest, or other owner-related issues. There are also criteria for which the PHA must disapprove an owner (see Chapter 13). No owner has a right to participate in the HCV program [24 CFR 982.306(e)] See Chapter 13 for a full discussion of owner qualification to participate in the HCV program. 9-I.D. ELIGIBLE UNITS There are a number of criteria that a dwelling unit must meet in order to be eligible for assistance under the voucher program. Generally, a voucher-holder family may choose any available rental dwelling unit on the market in the PHA’s jurisdiction. This includes the dwelling unit they are currently occupying. Ineligible Units [24 CFR 982.352(a)] The PHA may not assist a unit under the voucher program if the unit is a public housing or Indian housing unit; a unit receiving project-based assistance under section 8 of the 1937 Act (42 U.S.C. 1437f); nursing homes, board and care homes, or facilities providing continual psychiatric, medical, or nursing services; college or other school dormitories; units on the grounds of penal, reformatory, medical, mental, and similar public or private institutions; a unit occupied by its owner or by a person with any interest in the unit. PHA-Owned Units [24 CFR 982.352(b)] Otherwise eligible units that are owned or substantially controlled by the PHA issuing the voucher may also be leased in the voucher program. In order for a PHA-owned unit to be leased under the voucher program, the unit must not be ineligible housing and the PHA must inform the family, both orally and in writing, that the family has the right to select any eligible unit available for lease and that the family is free to select a PHA-owned unit without any pressure or steering by the PHA. HACCC Policy The PHA does not have any eligible PHA-owned units available for leasing under the voucher program. However, in the event such units become available, HACCC will disclose unit 362 9-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 information to assisted families in the same way as privately owned units is disclosed. In addition, HACCC will contract with another Housing Authority or other third party approved by HUD to perform HQS inspections or family re-certifications for families occupying HACCC-owned units. Special Housing Types [24 CFR 982 Subpart M] HUD regulations permit, but do not generally require, the PHA to permit families to use voucher assistance in a number of special housing types in accordance with the specific requirements applicable to those programs. These special housing types include single room occupancy (SRO) housing, congregate housing, group home, shared housing, manufactured home space (where the family owns the manufactured home and leases only the space), cooperative housing and homeownership option. See Chapter 15 for specific information and policies on any of these housing types that the PHA has chosen to allow. The regulations do require the PHA to permit use of any special housing type if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. Duplicative Assistance [24 CFR 982.352(c)] A family may not receive the benefit of HCV tenant-based assistance while receiving the benefit of any of the following forms of other housing subsidy, for the same unit or for a different unit: • Public or Indian housing assistance; • Other Section 8 assistance (including other tenant-based assistance); • Assistance under former Section 23 of the United States Housing Act of 1937 (before amendment by the Housing and Community Development Act of 1974); • Section 101 rent supplements; • Section 236 rental assistance payments; • Tenant-based assistance under the HOME Program; • Rental assistance payments under Section 521 of the Housing Act of 1949 (a program of the Rural Development Administration); • Any local or State rent subsidy; • Section 202 supportive housing for the elderly; • Section 811 supportive housing for persons with disabilities; (11) Section 202 projects for non- elderly persons with disabilities (Section 162 assistance); or 363 9-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Any other duplicative federal, State, or local housing subsidy, as determined by HUD. For this purpose, 'housing subsidy' does not include the housing component of a welfare payment, a social security payment received by the family, or a rent reduction because of a tax credit. Housing Quality Standards (HQS) [24 CFR 982.305 and 24 CFR 982.401]NSPIRE Standardss In order to be eligible, the dwelling unit must be in decent, safe and habitablesanitary condition. This determination is made using HUD’s National Standards for the Physical Inspection of Real Estate (NSPIREHousing Quality Standards (HQS) and/or equivalent state or local standards approved by HUD. See Chapter 8 for a full discussion of the NSPIREHQS standards, as well as the process for HQS inspection at initial lease-up. Unit Size In order to be eligible, the dwelling unit must be appropriate for the number of persons in the household. A family must be allowed to lease an otherwise acceptable dwelling unit with fewer bedrooms than the number of bedrooms stated on the voucher issued to the family, provided the unit meets the applicable NSPIREHQS space requirements [24 CFR 5.703(d)(5)982.402(d)]. The family must be allowed to lease an otherwise acceptable dwelling unit with more bedrooms than the number of bedrooms stated on the voucher issued to the family. See Chapter 5 for a full discussion of subsidy standards. Rent Reasonableness [24 CFR 982.305 and 24 CFR 982.507] In order to be eligible, the dwelling unit must have a reasonable rent. The rent must be reasonable in relation to comparable unassisted units in the area and must not be in excess of rents charged by the owner for comparable, unassisted units on the premises. See Chapter 8 for a full discussion of rent reasonableness and the rent reasonableness determination process. Rent Burden [24 CFR 982.508] Where a family is initially leasing a unit and the gross rent of the unit exceeds the applicable payment standard for the family, the family share cannot exceed 40 percent of the family’s adjusted monthly income. The term “family share” refers to the amount the family pays toward rent and utilities. The gross rent for the unit minus the total housing assistance payment (HAP) for the unit equals the family share. See Chapter 6 for a discussion of calculation of gross rent, the use of payment standards, and calculation of family income, family share of rent and HAP. 9-I.E. LEASE AND TENANCY ADDENDUM The family and the owner must execute a written dwelling lease agreement for the assisted unit. This written lease is a contract between the tenant family and the owner; the PHA is not a party to this contract. 364 9-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The tenant must have legal capacity to enter a lease under State and local law. 'Legal capacity' means that the tenant is bound by the terms of the lease and may enforce the terms of the lease against the owner [24 CFR 982.308(a)] Lease Form and Tenancy Addendum [24 CFR 982.308] If the owner uses a standard lease form for rental to unassisted tenants in the locality or the premises, the lease must be in such standard form. If the owner does not use a standard lease form for rental to unassisted tenants, the owner may use another form of lease. The HAP contract prescribed by HUD contains the owner's certification that if the owner uses a standard lease form for rental to unassisted tenants, the lease for the assisted tenants is in such standard form. All provisions in the HUD-required Tenancy Addendum must be added word-for-word to the owner's standard lease form. The Tenancy Addendum includes the HUD requirements for the tenancy. Because it is a part of the lease, the tenant shall have the right to enforce the Tenancy Addendum against the owner. If there is a conflict between the owner’s lease and the Tenancy Addendum, the terms of the Tenancy Addendum shall prevail over any other provisions of the lease. HACCC Policy The PHA does not provide a model or standard dwelling lease for owners to use in the HCV program. Lease Information [24 CFR 982.308(d)] The assisted dwelling lease must contain all of the required information as listed below: • The names of the owner and the tenant: • The unit rented (address, apartment number, and any other information needed to identify the contract unit) • The term of the lease (initial term and any provisions for renewal) • The amount of the monthly rent to owner • A specification of what utilities and appliances are to be supplied by the owner, and what utilities and appliances are to be supplied by the family Term of Assisted Tenancy The initial term of the assisted dwelling lease must be for at least one year [24 CFR 982.309]. The initial lease term is also stated in the HAP contract. For uniformity purposes, the initial lease term shall end twelve months after the lease effective date on the last day of the month prior to the lease start-month. The HUD program regulations permit the PHA to approve a shorter initial lease term if certain conditions are met. 365 9-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy In an effort to improve housing opportunities for tenants, the PHA will approve initial lease terms for periods of less than and more than one (1) year if it is the prevailing local market practice and agreed upon by the landlord and tenant. Due to the administrative burden involved, initial lease terms may not be month-to-month. During the initial term of the lease, the owner may not raise the rent to owner [24 CFR 982.309]. Any provisions for renewal of the dwelling lease will be stated in the dwelling lease [HCV Guidebook, pg. 8-22]. There are no HUD requirements regarding any renewal extension terms, except that they must be stated in the dwelling lease if they exist. The PHA may execute the HAP contract even if there is less than one year remaining from the beginning of the initial lease term to the end of the last expiring funding increment under the consolidated ACC. [24 CFR 982.309(b)]. Security Deposit [24 CFR 982.313 (a) and (b)] The owner may collect a security deposit from the tenant. The PHA may prohibit security deposits in excess of private market practice, or in excess of amounts charged by the owner to unassisted tenants. However, if the PHA chooses to do so, language to this effect must be added to Part A of the HAP contract [Form HUD-52641]. HACCC Policy The PHA will allow the owner to collect any security deposit amount the owner determines is appropriate and is in accord with local and state law. Separate Non-Lease Agreements between Owner and Tenant Owners may not demand or accept any rent payment from the family in excess of the rent to the owner as approved by the PHA minus the PHA’s housing assistance payments to the owner [24 CFR 982.451(b)(4)]. The owner may not charge the tenant extra amounts for items customarily included in rent in the locality or provided at no additional cost to unsubsidized tenants in the premises [24 CFR 982.510(c)]. HACCC Policy The PHA does not permit owners and families to execute separate, non-lease agreements for services, appliances (other than range and refrigerator) and other items that are not included in the lease. Any items, appliances, or other services that are customarily provided to unassisted families as part of the dwelling lease with those families or are permanently installed in the dwelling unit must be included in the dwelling lease for the assisted family. These items, appliances or services cannot be placed under a separate non-lease agreement between the owner and family. Side payments for additional rent, or for items, appliances or 366 9-9 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 services customarily provided to unassisted families as part of the dwelling lease for those families, are prohibited. All amenities and services should be considered when calculating rent comparability. PHA Review of Lease The PHA will review the dwelling lease for compliance with all applicable requirements. HACCC Policy If the dwelling lease is incomplete or incorrect, the PHA will notify the family and the owner of the deficiencies. Missing and corrected lease information will only be accepted as hard copies, in-person, by mail, or by fax. The PHA will not accept missing and corrected information over the phone Because the initial leasing process is time-sensitive, the PHA will attempt to communicate with the owner and family by phone, fax, or email. The PHA will use mail when the parties can’t be reached by phone, fax, or email. The PHA is permitted, but is not required, to review the lease to determine if the lease complies with State and local law and is permitted to decline to approve the tenancy if the PHA determines that the lease does not comply with State or local law [24 CFR 982.308(c)] HACCC Policy The PHA will not review the owner’s lease for compliance with state/local law. However, if HACCC becomes aware that an owner’s lease does not comply with state and local law, then HACCC will require the owner to modify the lease in order to comply with state and local law. If the owner does not do this within 7 calendar days, then HACCC will take any and all actions appropriate under its contract with the owner, including cancellation. 9-I.F. TENANCY APPROVAL [24 CFR 982.305] After receiving the family's Request for Tenancy Approval, with proposed dwelling lease, the PHA must promptly notify the family and owner whether the assisted tenancy is approved. Prior to approving the assisted tenancy and execution of a HAP contract, the PHA must ensure that all required actions and determinations, discussed in Part I of this chapter have been completed. These actions include ensuring that the unit is eligible; the unit has been inspected by the PHA and meets the Housing Quality Standards (HQS)NSPIRE Standards; the lease offered by the owner is approvable and includes the required Tenancy Addendum; the rent to be charged by the owner for the unit must is reasonable; where the family is initially leasing a unit and the gross rent of the unit exceeds the applicable payment standard for the family, the share of rent to be paid by the family does not exceed 40 percent of the family’s monthly adjusted income [24 CFR 982.305(a)]; the owner is an eligible owner, not disapproved by the PHA, with no conflicts of interest [24 CFR 982.306]; 367 9-10 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 the family and the owner have executed the lease, including the Tenancy Addendum, and the lead- based paint disclosure information [24 CFR 982.305(b)]. HACCC Policy The PHA will complete its determination within 15 calendar days of receiving all required information. If the terms of the RTA/proposed lease are changed for any reason, including but not limited to negotiation with the PHA, the PHA will obtain corrected copies of the RTA and proposed lease, signed by the family and the owner. Corrections to the RTA/proposed lease will only be accepted as hard copies, in-person, by mail, or by fax. The PHA will not accept corrections over the phone. If the PHA determines that the tenancy cannot be approved for any reason, the owner and the family will be notified in writing and given the opportunity to address any reasons for disapproval. The PHA will instruct the owner and family of the steps that are necessary to obtain approval of the tenancy. - Where the tenancy is not approvable because the unit is not approvable, the family must continue to search for eligible housing within the timeframe of the issued voucher. - If the tenancy is not approvable due to rent affordability or rent reasonableness, the PHA will attempt to negotiate the rent with the owner. If a new, approvable rent is negotiated, the tenancy will be approved. If the owner is not willing to negotiate an approvable rent, the family must continue to search for eligible housing within the timeframe of the issued voucher. 9-I.G. HAP CONTRACT EXECUTION [24 CFR 982.305] The HAP contract is a written agreement between the PHA and the owner of the dwelling unit. Under the HAP contract, the PHA agrees to make housing assistance payments to the owner on behalf of the family, and the owner agrees to comply with all program requirements as stated in the HAP contract. The HAP contract form is prescribed by HUD. If the PHA has given approval for the family of the assisted tenancy, the owner and the PHA must execute the HAP contract. The term of the HAP contract must be the same as the term of the lease [24 CFR 982.451(a)(2)]. The PHA is permitted to execute a HAP contract even if the funding currently available does not extend for the full term of the HAP contract. 368 9-11 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The PHA must make a best effort to ensure that the HAP contract is executed before the beginning of the lease term. Regardless, the HAP contract must be executed no later than 60 calendar days from the beginning of the lease term. The PHA may not pay any housing assistance payment to the owner until the HAP contract has been executed. If the HAP contract is executed during the period of 60 calendar days from the beginning of the lease term, the PHA will pay housing assistance payments after execution of the HAP contract (in accordance with the terms of the HAP contract), to cover the portion of the lease term before execution of the HAP contract (a maximum of 60 days). Any HAP contract executed after the 60-day period is void, and the PHA may not pay any housing assistance payment to the owner. HACCC Policy The owner and the assisted family will execute the dwelling lease and the owner must provide a copy to the PHA. The PHA will ensure that both the owner and the assisted family receive copies of the dwelling lease. The PHA will not execute the HAP contract until the owner has submitted IRS form W-9 and the family has submitted a Key Return Form for their prior assisted unit. The PHA will ensure that the owner receives a copy of the executed HAP contract. As required under VAWA 2013, once the HAP contract and lease have been executed and the family has been admitted to the program, the PHA will notify families of their rights under VAWA by providing all families with a copy of the domestic violence certification form (HUD-5382) as well as the VAWA notice of occupancy rights (form HUD-5380). See Chapter 13 for a discussion of the HAP contract and contract provisions. 9-I.H. CHANGES IN LEASE OR RENT [24 CFR 982.308] If the tenant and the owner agree to any changes in the lease, such changes must be in writing, and the owner must immediately give the PHA a copy of such changes. The lease, including any changes, must remain in accordance with the requirements of this chapter. Generally, PHA approval of tenancy and execution of a new HAP contract are not required for changes in the lease. However, under certain circumstances, the execution of a new lease and HAP contract are required. These circumstances include: • Changes in lease requirements governing tenant or owner responsibilities for utilities or appliances • Changes in lease provisions governing the term of the lease 369 9-12 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • The family moves to a new unit, even if the unit is in the same building or complex In these cases, if the HCV assistance is to continue, the family must submit a new Request for Tenancy Approval (RTA) along with a new dwelling lease containing the proposed changes. A new tenancy must then be approved in accordance with this chapter. Where the owner is changing the amount of the rent to owner, the owner must notify the PHA at least 60 days before any such changes go into effect [24 CFR 982.308(g)(4)]. The PHA will agree to such an increase only if the amount of the rent to owner is considered reasonable according to the rent reasonableness standards discussed in Chapter 8. If the requested rent is not found to be reasonable, the owner must either reduce the requested rent increase, or terminate the tenancy in accordance with the terms of the lease. No rent increase is permitted during the initial term of the lease [24 CFR 982.309(a)(3)]. The rent to owner for a unit must not be increased at the annual anniversary date unless: (i) The owner requests the adjustment by giving notice to HACCC; and (ii) During the year before the annual anniversary date, the owner has complied with all requirements of the HAP contract, including compliance with the HQSNSPIRE. HACCC Policy The PHA will determine whether the requested increase is reasonable within 30 calendar days of receiving the request from the owner. The owner will be notified of the determination in writing. All approved rent adjustments will be effective the first of the month following a) 60 calendar days after the postmark date or fax time-date confirmation of the owner’s request or b) the date the unit passed its latest annual inspection, or c) on the date specified by the owner, whichever is later. If the request is incomplete or incorrect the owner will be notified within 15 calendar days and given an opportunity to resubmit the request. The effective date will be the first of the month following a) 60 calendar days after the postmark date or fax time-date confirmation of the owners corrected request, or b) the date the unit passed its latest annual inspection, or c) on the date specified by the owner, whichever is later. 370 10-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 CHAPTER 10 MOVING WITH CONTINUED ASSISTANCE AND PORTABILITY INTRODUCTION Freedom of housing choice is a hallmark of the housing choice voucher (HCV) program. In general, HUD regulations impose few restrictions on where families may live or move with HCV assistance. This chapter sets forth HUD regulations and PHA policies governing moves within or outside HACCC’s jurisdiction in two parts: Part I: Moving with Continued Assistance. This part covers the general rules that apply to all moves by a family assisted under ’s HCV program, whether the family moves to another unit within HACCC’s jurisdiction or to a unit outside HACCC’s jurisdiction under portability. Part II: Portability. This part covers the special rules that apply to moves by a family under portability, whether the family moves out of or into HACCC’s jurisdiction. This part also covers the special responsibilities that HACCC has under portability regulations and procedures. 371 10-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART I: MOVING WITH CONTINUED ASSISTANCE 10-I.A. ALLOWABLE MOVES HUD lists six regulatory conditions under which an assisted family is allowed to move to a new unit with continued assistance. Permission to move is subject to the restrictions set forth in section 10- I.B. • The family has a right to terminate the lease on notice to the owner (for the owner’s breach or otherwise) and has given a notice of termination to the owner in accordance with the lease [24 CFR 982.354(b)(3)]. If the family terminates the lease on notice to the owner, the family must give HACCC a copy of the notice at the same time [24 CFR 982.354(d)(1)]. • The lease for the family’s unit has been terminated by mutual agreement of the owner and the family [24 CFR 982.354(b)(1)(ii)]. HACCC Policy If the family and the owner mutually agree to terminate the lease for the family’s unit, the family must give HACCC a copy of the termination agreement. HACCC's Mutual Agreement to Terminate the Lease form must be submitted to HACCC staff before the move can be approved. If the owner has given the family a notice to vacate, has commenced an action to evict the family, or has obtained a court judgment or other process allowing the owner to evict the family [24 CFR 982.354(b)(2)], the family must give HACCC a copy of any owner eviction/termination notice received [24 CFR 982.551(g)]. • The family or a member of the family is or has been the victim of domestic violence, dating violence, sexual assault, or stalking or human trafficking and the move is needed to protect the health or safety of the family or family member [24 CFR 982.354(b)(4)]. This condition applies even when the family has moved out of its unit in violation of the lease, with or without prior notification to HACCC, if the family or family member who is the victim reasonably believed that they were imminently threatened by harm from further violence if they remained in the unit [24 CFR 982.354(b)(4), 24 CFR 982.353(b)]. HACCC Policy If a family requests permission to move with continued assistance based on a claim that the move is necessary to protect the health or safety of a family member who is or has been the victim of domestic violence, dating violence, sexual assault, or stalking, or human trafficking HACCC will request documentation in accordance with section 16-IX.D of this plan. HACCC reserves the right to waive the documentation requirement if it determines that a statement or other corroborating evidence from the family or family member will suffice. In such cases HACCC will document the waiver in the family’s file. 372 10-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • The PHA has adopted an emergency transfer plan, which is included as Exhibit 16-3 to this plan and discusses external transfers to other covered housing programs. • HACCC has terminated the HAP Contract for the family’s unit for the owner’s breach [24 CFR 982.354(b)(1)(i)]. • HACCC determines that the family’s current unit does not meet the HQS space standards because of an increase in family size or a change in family composition. In such cases, HACCC must issue the family a new voucher, and the family and PHA must try to find an acceptable unit as soon as possible. If an acceptable unit is available for the family, HACCC must terminate the HAP contract for the family’s old unit in accordance with the HAP contract terms and must notify both the family and the owner of the termination. The HAP contract terminates at the end of the calendar month that follows the calendar month in which HACCC gives notice to the owner. [24 CFR 982.403(a) and (c)] 10-I.B. RESTRICTIONS ON MOVES A family’s right to move is generally contingent upon the family’s compliance with program requirements [24 CFR 982.1(b)(2)]. HUD specifies two conditions under which a PHA may deny a family permission to move and two ways in which a PHA may restrict moves by a family. Denial of Moves HUD regulations permit HACCC to deny a family permission to move under the following conditions: Insufficient Funding HACCC may deny a family permission to move either within or outside HACCC’s jurisdiction if HACCC does not have sufficient funding for continued assistance [24 CFR 982.354(e)(1)]. However, Notice PIH 2016-09 significantly restricts the ability of PHAs to deny permission to move due to insufficient funding and places further requirements on PHAs regarding moves denied due to lack of funding. The requirements found in this notice are mandatory. HACCC Policy HACCC will deny a family permission to move on grounds that HACCC does not have sufficient funding for continued assistance if (a) the move is initiated by the family, not the owner or HACCC; (b) HACCC can demonstrate that the move will, in fact, result in higher subsidy costs; (c) HACCC can demonstrate, in accordance with the policies in Part VIII of Chapter 16, that it does not have sufficient funding in its annual budget to accommodate the higher subsidy costs; and (d) for portability moves, the receiving PHA is not absorbing the voucher. This policy applies to moves within HACCC’s jurisdiction as well as to moves outside it under portability. 373 10-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If HACCC does not have sufficient funding for continued assistance, but the family must move from their unit (e.g., the unit failed HQSinspection), the family may move to a higher cost unit if the move is within HACCC’s jurisdiction. HACCC, however, will not allow the family to move under portability in this situation if the family wishes to move to a higher cost area. For both moves within HACCC’s jurisdiction and outside under portability, HACCC will not deny a move due to insufficient funding if HACCC previously approved the move and subsequently experienced a funding shortfall if the family cannot remain in their current unit. HACCC will rescind the voucher in this situation if the family will be allowed to remain in their current unit. HACCC will create a list of families whose moves have been denied due to insufficient funding. HACCC will keep the family’s request open indefinitely, and, when funds become available, the families on this list will take precedence over families on the waiting list. HACCC will use the same procedures for notifying families with open requests to move when funds become available as it uses for notifying families on the waiting list (see section 4-III.D). HACCC will inform the family of its policy regarding moves denied due to insufficient funding in a letter to the family at the time the move is denied. Pursuant to HUD revisions to the Portability guidance published in the Federal Register on August 20, 2015, HACCC shall notify the local HUD office within 10 business days of a determination to deny a portability move based on insufficient funding. Grounds for Denial or Termination of Assistance HACCC may deny a family permission to move if it has grounds for denying or terminating the family’s assistance [24 CFR 982.354(e)(2)]. HACCC Policy If HACCC has grounds for denying or terminating a family’s assistance, HACCC will act on those grounds in accordance with the regulations and policies set forth in Chapters 3 and 12, respectively. In general, it will not deny a family permission to move for this reason; however, it retains the discretion to do so under special circumstances. Restrictions on Elective Moves [24 CFR 982.354(c)] HUD regulations permit HACCC to prohibit any elective move by a participant family during the family’s initial lease term. They also permit HACCC to prohibit more than one elective move by a participant family during any 12-month period. However, such prohibitions, if adopted, do not apply when the family or a member of the family is or has been the victim of domestic violence, dating violence, sexual assault, or stalking, or human trafficking and the move is needed to protect the health or safety of the family or family member. (For the policy on documentation of abuse, see 374 10-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 section 10-I.A.) In addition, HACCC may not establish a policy permitting moves only at reexamination [Notice PIH 2016-09]. HACCC Policy If a family has developed a pattern of frequent moves shorter than originally agreed, HACCC may deny a family permission to make an elective move during the family’s initial lease term. If a mutual agreement to terminate the lease has been signed by the owner and tenant, HACCC will consider all factors and notify both parties of their decision to allow the move. This policy applies to moves within HACCC’s jurisdiction or outside it under portability. In addition, HACCC will allow exceptions to these policies for purposes of reasonable accommodation of a family member who is a person with disabilities (see Chapter 2). 10-I.C. MOVING PROCESS Notification If a family wishes to move to a new unit, the family must notify HACCC and the owner before moving out of the old unit or terminating the lease on notice to the owner [24 CFR 982.354(d)(2)]. If the family wishes to move to a unit outside HACCC’s jurisdiction under portability, the notice to HACCC must specify the area where the family wishes to move [24 CFR 982.354(d)(2)]. The notices must be in writing [24 CFR 982.5]. Approval HACCC Policy Upon receipt of a family’s notification that it wishes to move, HACCC will determine whether the move is approvable in accordance with the regulations and policies set forth in sections 10-I.A and 10-I.B. HACCC will notify the family in writing of its determination within 14 calendar days following receipt of the family’s notification. If the family has given a minimum of a 30-day notice and it has expired, the family is required to serve the owner with another 30-day notice, if agreeable to the present landlord, or sign a Mutual Agreement to Rescind the Lease form. Otherwise, the family is not authorized to vacate the unit and HACCC shall not process a new HAP Contract for the family. Reexamination of Family Income and Composition HACCC Policy For families approved to move to a new unit within HACCC’s jurisdiction, HACCC may perform a new annual reexamination in accordance with the policies set forth in Chapter 11 of this plan. 375 10-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 For families moving into or families approved to move out of HACCC’s jurisdiction under portability, HACCC will follow the policies set forth in Part II of this chapter. Voucher Issuance and Briefing HACCC Policy For families approved to move to a new unit within HACCC’s jurisdiction, HACCC will issue a new voucher within 15 calendar days of HACCC’s written approval to move. A briefing is not required for these families. However, families approved to transfer to another unit will be given an abridged version of the applicant briefing packet and directed to the HACCC website for further Briefing Packet information. HACCC will follow the policies set forth in Chapter 5 on voucher term, extension, and expiration. If a family does not locate a new unit within the term of the voucher and any extensions, the family may remain in its current unit with continued voucher assistance if the owner agrees and HACCC approves. Otherwise, the family will lose its assistance. HACCC shall conduct briefings for new participants and households moving to other units by telephone or other electronic means and refer them to our website for the briefing packet or mail it to the family to have and follow along with staff during the phone briefing. The tenant file will be documented with the date and time of the remote briefing and how the briefing packet was provided to them. For families moving into or families approved to move out of HACCC’s jurisdiction under portability, HACCC will follow the policies set forth in Part II of this chapter. Housing Assistance Payments [24 CFR 982.311(d)] When a family moves out of an assisted unit, HACCC may not make any housing assistance payment to the owner for any month after the month the family moves out. The owner may keep the housing assistance payment for the month when the family moves out of the unit. If a participant family moves from an assisted unit with continued tenant-based assistance, the term of the assisted lease for the new assisted unit may begin during the month the family moves out of the first assisted unit. Overlap of the last housing assistance payment (for the month when the family moves out of the old unit) and the first assistance payment for the new unit, is not considered to constitute a duplicative housing subsidy. The family must submit evidence that possession of the unit has been returned to the landlord. A Key Return Form must be signed by both the family and the landlord and returned to HACCC within 5 days of the tenant vacating the unit AND retuning the keys to the owner. If the tenant fails to return the keys to the prior landlord, transfer of unit possession will not have been documented and the new HAP contract shall be voided. Under no circumstances will a HAP contract for a new unit be processed without the family submitting HACCC's Key Return Form signed by the previous landlord. 376 10-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 10.I.D . ENHANCED VOUCHERS HUD provides tenant-based rental assistance in order to assist eligible residents that are affected by several different types of owner or HUD actions in HUD’s Office of Multifamily Housing programs (collectively referred to as “Housing conversion actions”). Depending on the Housing conversion action and subject to the availability of appropriations, eligible families receive either regular voucher assistance or enhanced voucher assistance to mitigate the impact of the conversion action on the family’s rent. Enhanced vouchers are primarily provided in the case of preservation prepayments and Section 8 project-based contract opt-outs. Enhanced voucher assistance under Section 8(t) of the United States Housing Act of 1937 is calculated differently from regular housing choice voucher assistance if the family remains in the project. A higher “enhanced” payment standard is used to determine the amount of the monthly subsidy in cases where the gross rent of the unit exceeds the normally applicable HACCC payment standard. In such instances, the gross rent for the unit is used in the monthly subsidy calculation instead of the normally applicable payment standard. Voucher Issuance and HACCC Determination of the Family’s Over-housed Status. Under a Housing conversion action, HACCC issues an eligible family an enhanced voucher based on HACCC's subsidy standards (see 24 CFR §982.402), not the actual size of the unit the family is currently occupying. HACCC must approve requests for a larger bedroom size to permit additional bedrooms if it may be necessary as a reasonable accommodation for a household with a family member with a disability, such as for example, to accommodate the need for a live-in aide or for medical equipment (see 24 CFR part 8). If the bedroom size of the family’s unit exceeds the number of bedrooms for which the family qualifies under HACCC's subsidy standards, the family is an over-housed family unless the family qualifies for a reasonable accommodation because one or more family member(s) need an additional bedroom. If an over-housed family chooses to move from the project at any time, the normal tenant-based voucher program rules apply to the subsidy calculation for the new unit. In such a case, the payment standard is the lower of the payment standard for the family unit size under HACCC's subsidy standards or the payment standard for the actual size of the unit rented by the family (see 24 CFR §982.402(c)). Availability of Appropriate Size Units in the Project If an over-housed family wishes to remain at the project, the regular voucher program requirements regarding the payment standard are not applicable and the provisions of PIH Notice 2016-02 apply. The over-housed family must move to an appropriate size unit in the project if one is available in order to receive enhanced voucher assistance. The family and owner will enter into a lease and 377 10-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC will execute a voucher housing assistance payments (HAP) contract on behalf of the family for the appropriate size unit to which the family moves. The enhanced voucher housing assistance payment calculation is based on the gross rent of the appropriate size unit. If an over-housed enhanced voucher family refuses to move to the appropriate size unit, and one exists and is available for occupancy, HACCC will calculate the family’s housing assistance payment for the over-sized unit based on the normally applicable voucher subsidy formula using the applicable payment standard established by HACCC for its voucher program (see 24 CFR §982.402(c) and (d)). The family will be responsible for any amount of the gross rent not covered by the housing assistance payment. Appropriate Size Unit does not Physically Exist in the Project. If the family wishes to remain at the project with enhanced voucher assistance, and an appropriate size unit does not physically exist at the project, but a bedroom size unit is available that is smaller than the family’s current unit but not smaller than the unit size for which the family qualifies under HACCC's subsidy standards, the family must move to the smaller bedroom size unit within 30 calendar days unless there are mitigating circumstances that are beyond the family's control and approved by HACCC. The family and owner will enter into a new lease and HACCC will execute a new voucher HAP contract with the owner for the smaller bedroom size unit. The enhanced voucher subsidy calculation is based on the gross rent for the smaller bedroom size unit. If an over-housed enhanced voucher family refuses to move to the smaller bedroom size unit, and one exists and is available for occupancy, HACCC will calculate the family’s housing assistance payment for the over-sized unit based on the normally applicable voucher subsidy formula using the applicable payment standard established by HACCC for its voucher program (see 24 CFR §982.402(c) and (d)). The family will be responsible for any amount of the gross rent not covered by the housing assistance payment. HACCC and Family Actions when Appropriate Size Units Subsequently Become Available in the Project. When HACCC is informed that an appropriate size unit is available, HACCC must immediately notify the over-housed family of the availability of the unit and the family must move to the appropriate size unit within 30 calendar days, unless there are mitigating circumstances that are beyond the family's control and approved by HACCC, to continue to receive enhanced voucher assistance. The family and owner will enter into a new lease and HACCC will execute a new voucher HAP contract with the owner for the appropriate size unit. The enhanced voucher subsidy calculation is based on the gross rent for the appropriate size unit. 378 10-9 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART II: PORTABILITY 10-II.A. OVERVIEW Within the limitations of the regulations and this plan, a participant family or an applicant family that has been issued a voucher has the right to use tenant-based voucher assistance to lease a unit anywhere in the United States providing that the unit is located within the jurisdiction of a PHA administering a tenant-based voucher program [24 CFR 982.353(b)]. The process by which a family obtains a voucher from one PHA and uses it to lease a unit in the jurisdiction of another PHA is known as portability. The PHA that issues the voucher is called the initial PHA. The PHA that has jurisdiction in the area to which the family wants to move is called the receiving PHA. The receiving PHA has the option of administering the family’s voucher for the initial PHA or absorbing the family into its own program. Under the first option, the receiving PHA provides all housing services for the family and bills the initial PHA for the family’s housing assistance payments and the fees for administering the family’s voucher. Under the second option, the receiving PHA pays for the family’s assistance with its own program funds, and the initial PHA has no further relationship with the family. The initial PHA must contact the receiving PHA via email or other confirmed delivery method to determine whether the receiving PHA will administer or absorb the initial PHA’s voucher. Based on the receiving PHA’s response, the initial PHA must determine whether they will approve or deny the portability request [Notice PIH 2016-09]. PHAs commonly act as both the initial and receiving PHA because families may move into or out of their jurisdiction under portability. Each role involves different responsibilities. HACCC will follow the rules and policies in section 10-II.B when it is acting as the initial PHA for a family. It will follow the rules and policies in section 10-II.C when it is acting as the receiving PHA for a family. In administering portability, the initial PHA and the receiving PHA must comply with financial procedures required by HUD, including the use of HUD-required forms [24 CFR 982.355(e)(5)]. PHAs must also comply with billing and payment deadlines. HUD may reduce an administrative fee to an initial or receiving PHA if the PHA does not comply with HUD portability requirements [24 CFR 982.355(e)(7)]. 10-II.B. INITIAL PHA ROLE Allowable Moves under Portability A family may move with voucher assistance only to an area where there is at least one PHA administering a voucher program [24 CFR 982.353(b)]. If there is more than one PHA in the area, the initial PHA provides the family with the contact information for the receiving PHAs that serve the area, and the family selects the receiving PHA. The family must inform the initial PHA which receiving PHA it has selected. If the family prefers not to select the receiving PHA, the initial PHA will select the receiving PHA on behalf of the family [24 CFR 982.255(b)]. 379 10-10 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Applicant families that have been issued vouchers as well as participant families may qualify to lease a unit outside HACCC’s jurisdiction under portability. HUD regulations and PHA policy determine whether a family qualifies. Applicant Families Under HUD regulations, most applicant families qualify to lease a unit outside HACCC’s jurisdiction under portability. However, HUD gives HACCC discretion to deny a portability move by an applicant family for the same two reasons that it may deny any move by a participant family: insufficient funding and grounds for denial or termination of assistance. If a PHA intends to deny a family permission to move under portability due to insufficient funding, the PHA must notify HUD within 10 business days of the determination to deny the move [24 CFR 982.355(e)]. HACCC Policy In determining whether or not to deny an applicant family permission to move under portability because HACCC lacks sufficient funding or has grounds for denying assistance to the family, the initial PHA will follow the policies established in section 10- I.B of this chapter. If the PHA does deny the move due to insufficient funding, the PHA will notify HUD in writing within 14 calendar days of the PHA’s determination to deny the move. In addition, HACCC may establish a policy denying the right to portability to nonresident applicants during the first 12 months after they are admitted to the program [24 CFR 982.353(c)]. HACCC Policy If neither the head of household nor the spouse/cohead of an applicant family had a domicile (legal residence) in HACCC’s jurisdiction at the time that the family’s initial application for assistance was submitted, the family must lease a unit within the initial PHA’s jurisdiction for at least 12 months before requesting portability. HACCC will consider exceptions to this policy for purposes of reasonable accommodation (see Chapter 2) or reasons related to domestic violence, dating violence, sexual assault, or stalking, or human trafficking. Participant Families The initial PHA must not provide portable assistance for a participant if a family has moved out of its assisted unit in violation of the lease [24 CFR 982.353(b)]. The Violence against Women Act of 20 05 (VAWA) creates an exception to this prohibition for families who are otherwise in compliance with program obligations but have moved to protect the health or safety of a family member who is or has been a victim of domestic violence, dating violence, sexual assault, or stalking, or human trafficking and who reasonably believed they were imminently threatened by harm from further violence if they remained in the unit [see 24 CFR 982.353(b)]. 380 10-11 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy HACCC will determine whether a participant family may move out of HACCC’s jurisdiction with continued assistance in accordance with the regulations and policies set forth here and in sections 10-I.A and 10-I.B of this chapter. HACCC will notify the family of its determination in accordance with the approval policy set forth in section 10- I.C of this chapter. Determining Income Eligibility Applicant Families An applicant family may lease a unit in a particular area under portability only if the family is income eligible for admission to the voucher program in that area [24 CFR 982.353(d)(1)]. The family must specify the area to which the family wishes to move [24 CFR 982.355(c)(1)]. The initial PHA is responsible for determining whether the family is income eligible in the area to which the family wishes to move [24 CFR 982.353(d)(1), 24 CFR 982.355(9)]. If the applicant family is not income eligible in that area, HACCC must inform the family that it may not move there and receive voucher assistance [Notice PIH 2016-09]. Participant Families The income eligibility of a participant family is not redetermined if the family moves to a new jurisdiction under portability [24 CFR 982.353(d)(2)]. Reexamination of Family Income and Composition No new reexamination of family income and composition is required for an applicant family. HACCC Policy For a participant family approved to move out of its jurisdiction under portability, HACCC generally will conduct a reexamination of family income and composition only if the family’s annual reexamination must be completed on or before the initial billing deadline specified on form HUD-52665, Family Portability Information. HACCC will make any exceptions to this policy necessary to remain in compliance with HUD regulations. Briefing The regulations and policies on briefings set forth in Chapter 5 of this plan require HACCC to provide information on portability to all applicant families that qualify to lease a unit outside HACCC’s jurisdiction under the portability procedures. HACCC Policy 381 10-12 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC will provide the family with an abridged version of the briefing material it provides to applicant families selected for admission to the program regarding Portability and direct families to HACCC's website for further Briefing Packet information. The abridged briefing packet will include information of low poverty and low minority- concentrated areas within HACCC's jurisdiction. HACCC shall conduct briefings for new participants and households moving to other units by telephone or other electronic means and refer them to our website for the briefing packet or mail it to the family to have and follow along with staff during the phone briefing. The tenant file will be documented with the date and time of the remote briefing and how the briefing packet was provided to them. HACCC will provide the name, address, and phone of the contact for the PHA in the jurisdiction to which they wish to move. If there is more than one PHA with jurisdiction over the area to which the family wishes to move, HACCC will advise the family that the family selects the receiving PHA and notifies the initial PHA of which receiving PHA was selected. HACCC will provide the family with contact information for all of the receiving PHAs that serve the area. HACCC will not provide any additional information about receiving PHAs in the area. HACCC will further inform the family that if the family prefers not to select the receiving PHA, HACCC will select the receiving PHA on behalf of the family. In this case, HACCC will not provide the family with information for all receiving PHAs in the area. HACCC will advise the family that they will be under the receiving PHA’s policies and procedures, including screening, subsidy standards, voucher extension policies and payment standards. Voucher Issuance and Term An applicant family has no right to portability until after the family has been issued a voucher [24 CFR 982.353(b)]. In issuing vouchers to applicant families, HACCC will follow the regulations and procedures set forth in Chapter 5. HACCC Policy For participating families approved to move under portability, HACCC will issue a new voucher within 15 calendar days of HACCC’s written approval to move. The initial term of the voucher will be 120 days. Voucher Extensions and Expiration HACCC Policy HACCC will approve no extensions to a voucher issued to an applicant or participant family porting out of HACCC’s jurisdiction except under the following circumstances: (a) the initial 382 10-13 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 term of the voucher will expire before the portable family will be issued a voucher by the receiving PHA, (b) the family decides to return to the initial PHA’s jurisdiction and search for a unit there, or (c) the family decides to search for a unit in a third PHA’s jurisdiction. In such cases, the policies on voucher extensions set forth in Chapter 5, section 5-II.E, of this plan will apply, including the requirement that the family apply for an extension in writing prior to the expiration of the initial voucher term. To receive or continue receiving assistance under the initial PHA’s voucher program, a family that moves to another PHA’s jurisdiction under portability must be under HAP contract in the receiving PHA’s jurisdiction within 60 days following the expiration date of the initial PHA’s voucher term (including any extensions). (See below under “Initial Billing Deadline” for one exception to this policy.) Preapproval Contact with the Receiving PHA Prior to approving a family’s request to move under portability, the initial PHA must contact the receiving PHA via e-mail or other confirmed delivery method to determine whether the receiving PHA will administer or absorb the family’s voucher. Based on the receiving PHA’s response, the initial PHA must determine whether it will approve or deny the move [24 CFR 982.355(c)(3)]. HACCC Policy HACCC will use e-mail, when possible, to contact the receiving PHA regarding whether the receiving PHA will administer or absorb the family’s voucher. Initial Notification to the Receiving PHA After approving a family’s request to move under portability, the initial PHA must promptly notify the receiving PHA via email or other confirmed delivery method to expect the family [24 CFR 982.355(c)(3); 24 CFR 982.355(c)(7)]. The initial PHA must also advise the family how to contact and request assistance from the receiving PHA [24 CFR 982.355(c)(6)]. HACCC Policy Because the portability process is time-sensitive, HACCC will notify the receiving PHA by phone, fax, or e-mail to expect the family. The initial PHA will also ask the receiving PHA to provide any information the family may need upon arrival, including the name, fax, e-mail address, and telephone number of the staff person responsible for business with incoming portable families and procedures related to appointments for voucher issuance. HACCC will pass this information along to the family. HACCC will also ask for the name, address, telephone number, fax and e-mail of the person responsible for processing the billing information. Sending Documentation to the Receiving PHA The initial PHA is required to send the receiving PHA the following documents: 383 10-14 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Form HUD-52665, Family Portability Information, with Part I filled out [Notice PIH 2016-09] • A copy of the family’s voucher [Notice PIH 2016-09] • A copy of the family’s most recent form HUD-50058, Family Report, or, if necessary, in the case of an applicant family, family and income information in a format similar to that of form HUD- 50058 [24 CFR 982.355(c)(7), Notice PIH 2016-09] • Copies of the income verifications backing up the form HUD-50058, including a copy of the family’s current EIV data [24 CFR 982.355(c)(7), Notice PIH 2016-09] HACCC Policy In addition to these documents, HACCC will provide the following information, if available, to the receiving PHA: • Social security numbers (SSNs) • Documentation of SSNs for all nonexempt household members whose SSNs have not been verified through the EIV system • Documentation of legal identity • Documentation of citizenship or eligible immigration status • Documentation of participation in the earned income disallowance (EID) benefit • Documentation of participation in a family self-sufficiency (FSS) program • If applicable, information related to the family’s health and medical care and disability assistance expense phased-in hardship exemption, including what stage the family is in and how many months remain in that phase-in stage • HACCC will notify the family in writing regarding any information provided to the receiving PHA [HCV GB, p. 13-3]. Initial Billing Deadline [Notice PIH 2016-09] The deadline for submission of initial billing is 90 days following the expiration date of the voucher issued to the family by the initial PHA. In cases where suspension of the voucher delays the initial billing submission, the receiving PHA must notify the initial PHA of delayed billing before the billing deadline and document the delay is due to the suspension. In this case, the initial PHA must extend the billing deadline by 30 days. If the initial PHA does not receive a billing notice by the deadline and does not intend to honor a late billing submission, it must notify the receiving PHA in writing. The initial PHA may report to HUD the receiving PHA’s failure to comply with the deadline. If the initial PHA will honor the late billing, no action is required. 384 10-15 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy The initial PHA’s decision as to whether to accept late billing will be based on internal PHA factors, including the initial PHA’s leasing or funding status. If HACCC has not received an initial billing notice from the receiving PHA within the billing deadline and does not intend to honor the late billing, it will contact the receiving PHA to inform them that it will not honor a late billing submission and will return any subsequent billings that it receives on behalf of the family. In this case, HACCC will send the receiving PHA a written confirmation of its decision by mail. HACCC will allow an exception to this policy if the family includes a person with disabilities and the late billing is a result of a reasonable accommodation granted to the family by the receiving PHA. Monthly Billing Payments [24 CFR 982.355(e), Notice PIH 2016-09] If the receiving PHA is administering the family’s voucher, the receiving PHA bills the initial PHA for housing assistance payments and administrative fees. When reimbursing for administrative fees, the initial PHA must promptly reimburse the receiving PHA for the lesser of 80 percent of the initial PHA ongoing administrative fee or 100 percent of the receiving PHA’s ongoing administrative fee for each program unit under contract on the first day of the month for which the receiving PHA is billing the initial PHA under portability. If the administrative fees are prorated for the HCV program, the proration will apply to the amount of the administrative fee for which the receiving PHA may bill [24 CFR 982.355(e)(2)]. The initial PHA is responsible for making billing payments in a timely manner. The first billing amount is due within 30 calendar days after the initial PHA receives Part II of form HUD-52665 from the receiving PHA. Subsequent payments must be received by the receiving PHA no later than the fifth business day of each month. The payments must be provided in a form and manner that the receiving PHA is able and willing to accept. The initial PHA may not terminate or delay making payments under existing portability billing arrangements as a result of over-leasing or funding shortfalls. HACCC must manage its tenant- based program in a manner that ensures that it has the financial ability to provide assistance for families that move out of its jurisdiction under portability and are not absorbed by receiving PHAs as well as for families that remain within its jurisdiction. Annual Updates of Form HUD-50058 If the initial PHA is being billed on behalf of a portable family, it should receive an updated form HUD-50058 each year from the receiving PHA. If the initial PHA fails to receive an updated 50058 by the family’s annual reexamination date, the initial PHA should contact the receiving PHA to verify the status of the family. The initial PHA must continue paying the receiving PHA based on the last form HUD-50058 received, unless instructed otherwise by HUD. The initial PHA may seek absorption of the vouchers by following steps outlined in Notice PIH 2016-09 385 10-16 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Denial or Termination of Assistance [24 CFR 982.355(c)(9)] At any time, either the initial PHA or the receiving PHA may make a determination to deny or terminate assistance with the family in accordance with 24 CFR 982.552 and 24 CFR 982.553. (For PHA policies on denial and termination, see Chapters 3 and 12, respectively.) 10-II.C. RECEIVING PHA ROLE If a family has a right to lease a unit in the receiving PHA’s jurisdiction under portability, the receiving PHA must provide assistance for the family [24 CFR 982.355(10)]. HUD may determine in certain instances that a PHA is not required to accept incoming portable families, such as a PHA in a declared disaster area. However, the PHA must have approval in writing from HUD before refusing any incoming portable families [24 CFR 982.355(b)]. Administration of the voucher must be in accordance with the receiving PHA’s policies. This requirement also applies to policies of Moving to Work agencies. The receiving PHA procedures and preferences for selection among eligible applicants do not apply to the family, and the receiving PHA waiting list is not used [24 CFR 982.355(c)(10)]. The family’s unit, or voucher, size is determined in accordance with the subsidy standards of the receiving PHA [24 CFR 982.355 (c) (12)], and the receiving PHA’s policies on extensions of the voucher term apply [24 CFR 982.355(c)(14)]. Responding to Initial PHA’s Request [24 CFR 982.355(c)] The receiving PHA must respond via e-mail or other confirmed delivery method to the initial PHA’s inquiry to determine whether the family’s voucher will be billed or absorbed [24 CFR 982.355(c)(3)]. If the receiving PHA informs the initial PHA that it will be absorbing the voucher, the receiving PHA cannot reverse its decision at a later date without consent of the initial PHA [24 CFR 982.355(c)(4)]. HACCC Policy HACCC will use e-mail, when possible, to notify the initial PHA whether it will administer or absorb the family’s voucher. Initial Contact with Family When a family moves into HACCC’s jurisdiction under portability, the family is responsible for promptly contacting HACCC and complying with HACCC’s procedures for incoming portable families. The family’s failure to comply may result in denial or termination of the receiving PHA’s voucher [24 CFR 982.355(c)(8)]. If the voucher issued to the family by the initial PHA has expired, the receiving PHA must contact the initial PHA to determine if it will extend the voucher [24 CFR 982.355(c)(13)]. An informal hearing is not required when a voucher has expired without the family leasing a unit. 386 10-17 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If for any reason the receiving PHA refuses to process or provide assistance to a family under the portability procedures, the family must be given the opportunity for an informal review or hearing [Notice PIH 2016-09]. (For more on this topic, see later under “Denial or Termination of Assistance.”) Briefing HUD allows the receiving PHA to require a briefing for an incoming portable family as long as the requirement does not unduly delay the family’s search [Notice PIH 2016-09]. HACCC Policy HACCC will require the family to participate in a briefing only in the event the family is a first-time participant to the HCV Program. For port-in program participants, HACCC will provide the family with an abridged briefing packet (as described in Chapter 5) and directed to HACCC's website for additional briefing packet information. HACCC shall conduct briefings for new participants and households moving to other units by telephone or other electronic means and refer them to our website for the briefing packet or mail it to the family to have and follow along with staff during the phone briefing. The tenant file will be documented with the date and time of the remote briefing and how the briefing packet was provided to them. Income Eligibility and Reexamination The receiving PHA does not redetermine eligibility for a portable family that was already receiving assistance in the initial PHA’s voucher program [24 CFR 982.355(c)(9)]. If the receiving PHA opts to conduct a new reexamination for a current participant family, the receiving PHA may not delay issuing the family a voucher or otherwise delay approval of a unit [24 CFR 982.355(c)(11)]. HACCC Policy For any family moving into its jurisdiction under portability, HACCC will not conduct a reexamination except in the following instances: • The reexamination anniversary is within the next 120 days or • A reexamination has not been completed in the last 12 months • New income information has been submitted • If the information provided is incomplete. However, HACCC will not delay issuing the family a voucher while the reexamination is being performed. HACCC may delay approving a unit for the family if the family is an applicant and HACCC cannot otherwise confirm that the family is income eligible for admission to the program in the area where the unit is located. 387 10-18 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC will rely upon any verifications provided by the initial PHA to the extent that they (a) accurately reflect the family’s current circumstances and (b) were obtained within the last 120 days. Any new information may be verified by documents provided by the family and adjusted, if necessary, when third party verification is received. Voucher Issuance When a family moves into its jurisdiction under portability, the receiving PHA is required to issue the family a voucher [24 CFR 982.355(c)(13)]. The family must submit a request for tenancy approval to the receiving PHA during the term of the receiving PHA’s voucher [24 CFR 982.355(c)(15)]. Timing of Voucher Issuance HUD expects the receiving PHA to issue the voucher within two weeks after receiving the family’s paperwork from the initial PHA if the information is in order, the family has contacted the receiving PHA, and the family complies with the receiving PHA’s procedures [Notice PIH 2016-09]. HACCC Policy When a family ports into its jurisdiction, HACCC will issue the family a voucher based on the paperwork provided by the initial PHA unless the family’s paperwork from the initial PHA is incomplete, the family’s voucher from the initial PHA has expired or the family does not comply with HACCC’s procedures. HACCC will update the family’s information when verification has been completed. Voucher Term The term of the receiving PHA’s voucher may not expire before 30 calendar days from the expiration of the initial PHA’s voucher [24 CFR 982.355(c)(13)]. If the initial PHA extends the term of the voucher, the receiving PHA’s voucher may not expire before 30 days from the new expiration date of the initial PHA’s voucher [Notice PIH 2016-09]. HACCC Policy The receiving PHA’s voucher will expire 30 calendars days from the expiration date of the initial PHA’s voucher. If the initial PHA extends the term of the voucher, the receiving PHA’s voucher will expire 30 calendar days from the new expiration date of the initial PHA’s voucher. Voucher Extensions [24 CFR 982.355(c)(14), Notice 2016-09] Once the receiving PHA issues the portable family a voucher, the receiving PHA’s policies on extensions of the voucher term apply. The receiving PHA must inform the initial PHA of any extension granted to the term of the voucher. It must also bear in mind the billing deadline provided 388 10-19 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 by the initial PHA. Unless willing and able to absorb the family, the receiving PHA should ensure that any voucher expiration date would leave sufficient time to process a request for tenancy approval, execute a HAP contract, and deliver the initial billing to the initial PHA. HACCC Policy The policies on voucher extensions set forth in Chapter 5, section 5-II.E, of this plan will apply to any requests for extensions. Voucher Suspensions [24 CFR 982.303, 24 CFR 982.355(c)(15)] If the family submits a request for tenancy approval during the term of the receiving PHA’s voucher, the PHA must suspend the term of that voucher. The term of the voucher stops from the date that the family submits a request for PHA approval of the tenancy until the date the PHA notifies the family in writing whether the request has been approved or denied [24 CFR 982.4(b)] (see Section 5-II.E). Notifying the Initial PHA The receiving PHA must promptly notify the initial PHA if the family has leased an eligible unit under the program or if the family fails to submit a request for tenancy approval for an eligible unit within the term of the receiving PHA’s voucher [24 CFR 982.355(c)(16)]. The receiving PHA is required to use Part II of form HUD-52665, Family Portability Information, for this purpose [Notice PIH 2016-09]. (For more on this topic and the deadline for notification, see below under “Administering a Portable Family’s Voucher.”) If an incoming portable family ultimately decides not to lease in the jurisdiction of the receiving PHA but instead wishes to return to the initial PHA’s jurisdiction or to search in another jurisdiction, the receiving PHA must refer the family back to the initial PHA. In such a case the voucher of record for the family is once again the voucher originally issued by the initial PHA. Any extension of search time provided by the receiving PHA’s voucher is only valid for the family’s search in the receiving PHA’s jurisdiction [Notice PIH 2016-09]. Administering a Portable Family’s Voucher Portability Billing [24 CFR 982.355(e)] To cover assistance for a portable family that was not absorbed, the receiving PHA bills the initial PHA for housing assistance payments and administrative fees. The amount of the housing assistance payment for a portable family in the receiving PHA’s program is determined in the same manner as for other families in the receiving PHA’s program. The receiving PHA may bill the initial PHA for the lesser of 80 percent of the initial PHA’s ongoing administrative fee or 100 percent of the receiving PHA’s ongoing administrative fee for each program unit under contract on the first day of the month for which the receiving PHA is billing the initial PHA under portability. If the administrative fees are prorated for the HCV program, the proration will apply to the amount of the administrative fee for which the receiving PHA may bill 389 10-20 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (i.e., the receiving PHA may bill for the lesser of 80 percent of the initial PHA’s prorated ongoing administrative fee or 100 percent of the receiving PHA’s ongoing administrative fee). If both PHAs agree, the PHAs may negotiate a different amount of reimbursement. HACCC Policy Unless HACCC negotiates a different amount of reimbursement with the initial PHA, HACCC will bill the initial PHA the maximum amount of administrative fees allowed, ensuring any administrative fee proration has been properly applied. Initial Billing Deadline If a portable family’s search for a unit is successful and the receiving PHA intends to administer the family’s voucher, the receiving PHA must submit its initial billing notice (Part II of form HUD- 52665) in time that the notice will be received no later than 90 days following the expiration date of the family’s voucher issued by the initial PHA [Notice PIH 2016-09]. This deadline may be extended for 30 additional days if the delay is due to suspension of the voucher’s term (see Initial Billing Section). A copy of the family’s form HUD-50058, Family Report, completed by the receiving PHA must be attached to the initial billing notice. The receiving PHA may send these documents by mail, fax, or e-mail. HACCC Policy HACCC will send its initial billing notice by fax or e-mail, if necessary, to meet the billing deadline but will also send the notice by regular mail. If the receiving PHA fails to send the initial billing by the deadline, it is required to absorb the family into its own program unless (a) the initial PHA is willing to accept the late submission or (b) HUD requires the initial PHA to honor the late submission (e.g., because the receiving PHA is over-leased) [Notice PIH 2016-09]. Ongoing Notification Responsibilities [Notice PIH 2012-42, HUD-52665] Annual Reexamination. The receiving PHA must send the initial PHA a copy of a portable family’s updated form HUD-50058 after each annual reexamination for the duration of time the receiving PHA is billing the initial PHA on behalf of the family, regardless of whether there is a change in the billing amount. HACCC Policy HACCC will send a copy of the updated HUD-50058 by regular mail no later than 10 business days after the effective date of the reexamination. Change in Billing Amount. The receiving PHA is required to notify the initial PHA, using form HUD-52665, of any change in the billing amount for the family as a result of: 390 10-21 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • A change in the HAP amount (because of a reexamination, a change in the applicable payment standard, a move to another unit, etc.) • An abatement or subsequent resumption of the HAP payments • Termination of the HAP contract • Payment of a damage/vacancy loss claim for the family • Termination of the family from the program The timing of the notice of the change in the billing amount should correspond with the notification to the owner and the family in order to provide the initial PHA with advance notice of the change. Under no circumstances should the notification be later than 10 working calendar days following the effective date of the change in the billing amount. If the receiving PHA fails to send Form HUD- 52665 within 10 days of effective date of billing changes, the initial PHA is not responsible for any increase prior to notification. If the change resulted in a decrease in the monthly billing amount, the initial PHA will offset future monthly payments until the difference is reconciled. Late Payments [Notice PIH 2016-09] If the initial PHA fails to make a monthly payment for a portable family by the fifth business day of the month, the receiving PHA must promptly notify the initial PHA in writing of the deficiency. The notice must identify the family, the amount of the billing payment, the date the billing payment was due, and the date the billing payment was received (if it arrived late). The receiving PHA must send a copy of the notification to the Office of Public Housing (OPH) in the HUD area office with jurisdiction over the receiving PHA. If the initial PHA fails to correct the problem by the second month following the notification, the receiving PHA may request by memorandum to the director of the OPH with jurisdiction over the receiving PHA that HUD transfer the unit in question. A copy of the initial notification and any subsequent correspondence between HACCCs on the matter must be attached. The receiving PHA must send a copy of the memorandum to the initial PHA. If the OPH decides to grant the transfer, the billing arrangement on behalf of the family ceases with the transfer, but the initial PHA is still responsible for any outstanding payments due to the receiving PHA. Overpayments [Notice PIH 2016-09] In all cases where the receiving PHA has received billing payments for billing arrangements no longer in effect, the receiving PHA is responsible for returning the full amount of the overpayment (including the portion provided for administrative fees) to the initial PHA. In the event that HUD determines billing payments have continued for at least three months because the receiving PHA failed to notify the initial PHA that the billing arrangement was terminated, the receiving PHA must take the following steps: • Return the full amount of the overpayment, including the portion provided for administrative fees, to the initial PHA. 391 10-22 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Once full payment has been returned, notify the Office of Public Housing in the HUD area office with jurisdiction over the receiving PHA of the date and the amount of reimbursement to the initial PHA. At HUD’s discretion, the receiving PHA will be subject to the sanctions spelled out in Notice PIH 2016-09. Denial or Termination of Assistance At any time, the receiving PHA may make a determination to deny or terminate assistance to a portable family for family action or inaction [24 CFR 982.355(c)(17)]. In the case of a termination, HACCC should provide adequate notice of the effective date to the initial PHA to avoid having to return a payment. In no event should the receiving PHA fail to notify the initial PHA later than 10 working days following the effective date of the termination of the billing arrangement [HUD 52665, Notice PIH 2016-09]. HACCC Policy If HACCC elects to deny or terminate assistance for a portable family, HACCC will notify the initial PHA within 10 working days after the informal review or hearing if the denial or termination is upheld. HACCC will base its denial or termination decision on the policies set forth in Chapter 3 or Chapter 12, respectively. The informal review or hearing will be held in accordance with the policies in Chapter 16. The receiving PHA will furnish the initial PHA with a copy of the review or hearing decision. Absorbing a Portable Family The receiving PHA may absorb an incoming portable family into its own program when the PHA executes a HAP contract on behalf of the family or at any time thereafter providing that the PHA has funding available under its annual contributions contract (ACC) [24 CFR 982.355(d)(1), Notice PIH 2016-09]. If the receiving PHA absorbs a family from the point of admission, the admission will be counted against the income targeting obligation of the receiving PHA [24 CFR 982.201(b)(2)(vii)]. If the receiving PHA absorbs a family after providing assistance for the family under a billing arrangement with the initial PHA, the receiving PHA must send an updated form HUD-52665 to the initial PHA no later than 10 business days following the effective date of the termination of the billing arrangement. [Notice PIH 2016-09]. HACCC Policy If HACCC decides to absorb a portable family upon the execution of a HAP contract on behalf of the family, HACCC will notify the initial PHA by the initial billing deadline 392 10-23 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 specified on form HUD-52665. The effective date of the HAP contract will be the effective date of the absorption. If HACCC decides to absorb a family after that, it will provide the initial PHA with 30 days’ advance notice or notify them no later than 10 business days following the effective date of the termination of the billing arrangement. Following the absorption of an incoming portable family, the family is assisted with funds available under the consolidated ACC for the receiving PHA’s voucher program [24 CFR 982.355(d)], and the receiving PHA becomes the initial PHA in any subsequent moves by the family under portability [24 CFR 982.355(e)(4)]. 393 11-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 CHAPTER 11 REEXAMINATIONS INTRODUCTION HACCC is required to reexamine each family’s income and composition at least annually, and to adjust the family’s level of assistance accordingly. Interim reexaminations are also needed in certain situations. This chapter discusses both annual and interim reexaminations, and the recalculation of family share and subsidy that occurs as a result. HUD regulations and PHA policies concerning reexaminations are presented in three parts: Part I: Annual Reexaminations. This part discusses the process for conducting annual reexaminations. Part II: Interim Reexaminations. This part details the requirements for families to report changes in family income and composition between annual reexaminations. Part III: Recalculating Family Share and Subsidy Amount. This part discusses the recalculation of family share and subsidy amounts based on the results of annual and interim reexaminations. Part IV: Non-Interim Reexamination Transaction. This part describes transactions that do not entail changes to the family’s adjusted income. Policies governing reasonable accommodation, family privacy, required family cooperation, and program abuse, as described elsewhere in this plan, apply to both annual and interim reexaminations. 394 11-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART I: ANNUAL REEXAMINATIONS [24 CFR 982.516] 11-I.A. OVERVIEW HACCC must conduct a reexamination of family income and composition at least annually. This includes gathering and verifying current information about family composition, income, and expenses. Based on this updated information, the family’s income and rent must be recalculated. This part discusses the schedule for annual reexaminations, the information to be collected and verified, and annual reexamination effective dates. Unlike when performing an interim reexamination or at intake, at annual reexamination, the PHA must determine the income of the family for the previous 12-month period, except where the PHA uses a streamlined income determination. Income from assets, however, is always anticipated, irrespective of the income examination type [Notice PIH 2023-27]. PHAs also have the option of using a “safe harbor” income verification from another federal means-tested program to verify gross annual income. Chapter 7 contains HACCC’s policies related to streamlined income determinations and the use of safe harbor income verifications. 11-I.B STREAMLINED ANNUAL REEXAMINATIONS [24 CFR 982.516(b)]; NEW HCV GB, REEXAMINATIONS HUD permits PHAs to streamline the income determination process for family members with fixed sources of income. While third-party verification of all income sources must be obtained during the intake process and every three years thereafter, in the intervening years the PHA may determine income from fixed sources by applying a verified cost of living adjustment (COLA) or rate of interest. The PHA may, however, obtain third-party verification of all income, regardless of the source. Further, upon request of the family, the PHA must perform third-party verification of all income sources. Fixed sources of income include Social Security and SSI benefits, pensions, annuities, disability or death benefits, and other sources of income subject to a COLA or rate of interest. The determination of fixed income may be streamlined even if the family also receives income from other non-fixed sources. Two streamlining options are available, depending upon the percentage of the family’s income that is received from fixed sources. If at least 90 percent of the family’s income is from fixed sources, the PHA may streamline the verification of fixed income but is not required to verify non-fixed income amounts. If the family receives less than 90 percent of its income from fixed sources, the PHA may streamline the verification of fixed income and must verify non-fixed income annually. HACCC Policy HACCC will streamline the annual reexamination process by applying the verified 395 11-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 COLA or interest rate to fixed-income sources. Fixed income sources are incomes with at least 90 % of the income coming from the fixed income source. HACCC will document in the file how the determination that a source of income was fixed was made. For families with at least one source of fixed income, but for which less than 90% of the family's income is from fixed sources, HACCC shall verify and adjust non-fixed income sources annually If a family member with a fixed source of income is added, HACCC will use third-party verification of all income amounts for that family member. If verification of the COLA or rate of interest is not available, HACCC will obtain third- party verification of income amounts. Third-party verification of fixed sources of income will be obtained during the intake process and at least once every three years thereafter. Third-party verification of non-fixed income will be obtained annually when the percentage of family income received from fixed sources is less than 90%. 11-I.CB. SCHEDULING ANNUAL REEXAMINATIONS HACCC must establish a policy to ensure that the annual reexamination for each family is completed within a 12-month period and may require reexaminations more frequently [HCV GB p. 12-1]. HACCC Policy Generally, HACCC will begin the annual reexamination process 120 days in advance of its scheduled effective date. Generally, HACCC will schedule annual reexamination effective dates to coincide with the family’s anniversary date. Anniversary date is defined as 12 months from the effective date of the family’s last annual reexamination or, during a family’s first year in the program, from the effective date of the family’s initial examination (admission). HACCC also may schedule an annual reexamination for completion prior to the anniversary date for administrative purposes. Notification of and Participation in the Annual Reexamination Process HACCC is required to obtain the information needed to conduct annual reexaminations. How that information will be collected is left to the discretion of HACCC. However, PHAs should give tenants who were not provided the opportunity the option to complete Form HUD-92006 at this time [Notice PIH 2009-36]. HACCC Policy 396 11-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Families generally are required to participate in an annual reexamination interview and Housing Quality Standards inspection. All adult family members must attend the annual reexamination. If participation in an in-person interview poses a hardship because of a family member’s disability, the family should contact HACCC to request a reasonable accommodation (see Chapter 2). Notification of annual reexamination interviews and HQS inspections will be sent by first- class mail and will contain the date, time, and location of the interview or inspection. In addition, it will inform the family of the information and documentation that must be brought to the interview. If the family is unable to attend a scheduled appointment, the family should contact HACCC in advance of the appointment to schedule a new appointment. If a family does not attend the scheduled appointment, HACCC will send a second notification and give the family a choice of 1) attending a new appointment, or 2) proposed termination of assistance. If a family fails to attend two scheduled appointments without PHA approval, or if the notice is returned by the post office with no forwarding address, a notice of termination (see Chapter 12) will be sent to the family’s address of record, and to any alternate address provided in the family’s file. An advocate, interpreter, or other assistant may assist the family in the interview process. The family and HACCC must execute a certification attesting to the role and the assistance provided by any such third party. 11-I.DC. CONDUCTING ANNUAL REEXAMINATIONS As part of the annual reexamination process, families are required to provide updated information to HACCC regarding the family’s income, expenses, and composition [24 CFR 982.551(b)]. HACCC Policy Families will be asked to bring all required information (as described in the reexamination notice) to the reexamination appointment. The required information will include a PHA- designated reexamination form, an Authorization for the Release of Information/Privacy Act Notice, as well as supporting documents or forms related to the family’s income, expenses, and family composition. All adult family members must sign required documents. Any required documents or information that the family is unable to provide at the time of the interview must be provided within 14 calendar days of the interview. If the family is unable to obtain the information or materials within the required time frame, the family may request an extension. 397 11-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If the family or any adult member of the family does not provide the required documents or information within the required time period (plus any extensions), the family will be sent a notice of termination (See Chapter 12). The information provided by the family generally must be verified in accordance with the policies in Chapter 7. Unless the family reports a change, or the PHA has reason to believe a change has occurred in information previously reported by the family, certain types of information that are verified at admission typically do not need to be re-verified on an annual basis. These include: • Legal identity • Age • Social security numbers • A person’s disability status • Citizenship or immigration status If adding a new family member to the unit causes overcrowding according to space the Housing Quality Sstandards (HQS) (see Chapter 8), HACCC must issue the family a new voucher, and the family and PHA must try to find an acceptable unit as soon as possible. If an acceptable unit is available for rental by the family, HACCC must terminate the HAP contract in accordance with its terms [24 CFR 982.403]. 11-I.ED. DETERMINING ONGOING ELIGIBILITY OF CERTAIN STUDENTS [24 CFR 982.552(b)(5)] Section 327 of Public Law 109-115 established new restrictions on the ongoing eligibility of certain students (both part- and full-time) who are enrolled in institutions of higher education. If a student enrolled in an institution of higher education is under the age of 24, is not a veteran, is not married, does not have a dependent child, and is not a person with disabilities receiving HCV assistance as of November 30, 2005, the student’s eligibility must be reexamined along with the income eligibility of the student’s parents on an annual basis. In these cases, both the student and the student’s parents must be income eligible for the student to continue to receive HCV assistance. If, however, a student in these circumstances is determined independent from their parents or is considered a vulnerable youth in accordance with HACCC Policy, the income of the student’s parents will not be considered in determining the student’s ongoing eligibility. Students who reside with parents in an HCV assisted unit are not subject to this provision. It is limited to students who are receiving assistance on their own, separately from their parents. HACCC Policy During the annual reexamination process, HACCC will determine the ongoing eligibility of each student who is subject to the eligibility restrictions in 24 CFR 5.612 by reviewing the student’s individual income as well as the income of the student’s parents. If the student has 398 11-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 been determined “independent” from their parents or is considered a vulnerable youth based on the policies in Sections 3-II.E and 7-II.E, the parents’ income will not be reviewed. If the student is no longer income eligible based on their own income or the income of their parents, the student’s assistance will be terminated in accordance with the policies in Section 12-I.D. If the student continues to be income eligible based on their own income and the income of their parents (if applicable), HACCC will process a reexamination in accordance with the policies in this chapter. 11-I.E. CALCULATING ANNUAL INCOME AT ANNUAL REEXAMINATION [24 CFR 5.609(c)(2) and Notice PIH 2023-27] The PHA must determine the income of the family for the previous 12-month period and use this amount as the family income for annual reexaminations, except where the PHA uses a streamlined income determination as indicated in Chapter 7 of this policy. The PHA may also use Safe Harbor income determinations dated within the last 12 months from a means-tested federal public assistance program at annual reexamination as outlined in Chapter 7 of this policy. Except when using streamlined or Safe Harbor income determinations, in determining the income of the family for the previous 12-month period, any change of income since the family’s last annual reexamination, including those that did not meet the threshold to process an interim reexamination in accordance with PHA policies and 24 CFR 5.657(c) or 960.257(b) must be considered. Income from assets is always anticipated, irrespective of the income examination type. A change in income may be a loss of income or the addition of a new source of income. Changing to a different employer in the prior year does not necessarily constitute a change if the income earned from either employer is substantially the same. The PHA should look at the entirety of the family’s unearned income and earned income from the prior year in which earned income may have been one constant job or many different jobs that start and stop. Cost of Living Adjustments (COLA) to Social Security income and Social Security disability income are always considered changes to income because the COLA is an adjustment that automatically occurs annually by law. See Chapter 6 for PHA policies on when the COLA is applied and Chapter 7 on streamlined determination of income for inflationary adjustments. Notice PIH 2023-27 lists the following steps to calculate both earned and unearned income at annual reexamination. Step 1: The PHA determines annual income for the previous 12-month period by reviewing the following information: x The EIV Income Report pulled within 120 days of the effective date of the annual reexamination; x The income reported on the most recent HUD–50058; and 399 11-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 x The amount of prior-year income reported by the family on the PHA’s annual reexamination paperwork. Step 2: The PHA takes into consideration any interim reexamination of family income completed since the last annual reexamination. x If there was an interim reexamination performed, the PHA must use the annual income from the interim to determine the family’s total annual income, provided there are no additional changes. x If the PHA did not perform an interim or there have been changes since the last reexamination, the PHA moves to Step 3. Step 3: If there were changes in annual income not processed by the PHA since the last reexamination, the PHA must use current income. The family will be required to report their income for the prior year and whether there have been permanent changes. x If there are no reported changes to an income source, the PHA may use documentation of prior- year income to calculate the annual income. For example, the PHA may use the following documentation: x EIV + self-certification (wages, Supplemental Security Income (SSI), Social Security, and unemployment) x Current written third-party verification from the source verifying prior-year income that is dated within 120 days of receipt by the PHA, for example: - Year-end statements - Paycheck with year-to-date amounts - Tax forms (Form 1040, W2, 1099, etc.) x If there are reported changes by the family or the PHA notes discrepancies between EIV and what the family reports, the PHA must follow the verification hierarchy (described in Chapter 7) to document and verify income. Exhibit 11-1 provides detailed examples of how the PHA calculates income from different sources at annual reexamination using the above method. HACCC Policy When income is calculated using a streamlined income determination or Safe Harbor determination from a means-tested federal public assistance program in accordance with HACCC policies in Chapter 7, the above is not applicable. However, where the family disagrees with HACCC or other agency’s determination of income or HACCC has other reason to use third-party verification in these circumstances, then the above will apply. 11-I.F. EFFECTIVE DATES HACCC must establish policies concerning the effective date of changes that result from an annual reexamination [24 CFR 982.516]. HACCC Policy 400 11-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 In general, an increase in the family share of the rent that results from an annual reexamination will take effect on the family’s anniversary date, and the family will be notified at least 30 calendar days in advance. • If less than 30 calendar days remain before the scheduled effective date, the increase will take effect on the first of the month following the end of the 30-day notice period. • If a family moves to a new unit, the increase will take effect on the effective date of the new lease and HAP contract, and no 30-day notice is required. • Families on the FSS program will receive a 30-day notice. The increase in rent will take effect immediately after the 30-day notice period. • If HACCC chooses to schedule an annual reexamination for completion prior to the family’s anniversary date for administrative purposes, the effective date will be determined by HACCC, but will always allow for the 30-day notice period. • For all families, including those participating in the FSS program, if the family causes a delay in processing the annual reexamination, increases in the family share of the rent will be applied retroactively to the scheduled effective date of the annual reexamination. The family will be responsible for any overpaid subsidy and may be offered a repayment agreement in accordance with the policies in Chapter 16. In general, a decrease in the family share of the rent that results from an annual reexamination will take effect on the family’s anniversary date. • If a family moves to a new unit, the decrease will take effect on the effective date of the new lease and HAP contract. • If HACCC chooses to schedule an annual reexamination for completion prior to the family’s anniversary date for administrative purposes, the effective date will be determined by HACCC. • If the family causes a delay in processing the annual reexamination, decreases in the family share of the rent will be applied prospectively, from the first day of the month following completion of the reexamination processing. Delays in reexamination processing are considered to be caused by the family if the family fails to provide information requested by HACCC by the date specified, and this delay prevents HACCC from completing the reexamination as scheduled. 401 11-9 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART II: INTERIM REEXAMINATIONS [24 CFR 982.516] 11-II.A. OVERVIEW Family circumstances may change between annual reexaminations. HUD and PHA policies dictate what kinds of information about changes in family circumstances must be reported, and under what circumstances HACCC must process interim reexaminations to reflect those changes. HUD regulations also permit HACCC to conduct interim reexaminations of income or family composition at any time. When an interim reexamination is conducted, only those factors that have changed are verified and adjusted [HCV GB, p. 12-10]. A family may request an interim determination of family income or composition because of any changes since the last determination. The PHA must conduct any interim reexamination within a reasonable period of time after the family request or when the PHA becomes aware of a change in the family’s adjusted income that must be processed in accordance with HUD regulations. What qualifies as a “reasonable time” may vary based on the amount of time it takes to verify information, but the PHA generally should conduct the interim reexamination not longer than 30 days after the PHA becomes aware of changes in income. Notice PIH 2023-27 changes the conditions under which interim reexaminations must be conducted, codifies when interim reexaminations should be processed and made effective, and requires related changes for annual reexaminations and streamlined income determinations. When the PHA determines that an interim reexamination of income is necessary, they must ask the family to report changes in all aspects of adjusted income. In addition to specifying what information the family must report, HUD regulations permit the family to request an interim determination if other aspects of the family’s income or composition changes. HACCC must complete the interim reexamination within a reasonable time after the family’s request. This part includes HUD and PHA policies describing what changes families are required to report, what changes families may choose to report, and how HACCC will process both PHA- and family- initiated interim reexaminations. 11-II.B. CHANGES IN FAMILY AND HOUSEHOLD COMPOSITION Reporting PHAs must require families to report household composition changes; however, PHAs determine the timeframe in which reporting happens [Notice PIH 2023-27]. The family is required to report all changes in family composition. HACCC must adopt policies prescribing when and under what conditions the family must report changes in income and family composition [24 CFR 960.257(b)(5)]. However, due to family obligations under the program, HACCC has limited discretion in this area. HACCC Policy 402 11-10 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 All families must report all changes in family and household composition that occur between annual reexaminations within 10 business days of the change. HACCC will conduct interim reexaminations to account for any changes in household composition that occur between annual reexaminations. New Family Members Not Requiring PHA Approval The addition of a family member as a result of birth, adoption, or court-awarded custody does not require PHA approval. However, the family is required to promptly notify HACCC of the addition [24 CFR 982.551(h)(2)]. HACCC Policy The family must inform HACCC of the birth, adoption, or court-awarded custody of a child within 14 calendar days. New Family and Household Members Requiring Approval With the exception of children who join the family as a result of birth, adoption, or court- awarded custody, a family must request PHA approval to add a new family member [24 CFR 982.551(h)(2)] or other household member (live-in aide or foster child) [24 CFR 982.551(h)(4)]. Although the PHA must verify aspects of program eligibility When any new family member is added, the Streamlining Final Rule removed the requirement that PHAs conduct a reexamination of income whenever a new family member is added. The PHA may state in policy that an income reexamination will be conducted. HACCC Policy HACCC shall conduct a reexamination to determine any new income or deductions associated with the additional family member and to make appropriate adjustments in the family share of the rent and the HAP payment. If a change in family size causes a violation of Housing Quality Standards (HQS) space standards (see Chapter 8), HACCC must issue the family a new voucher, and the family and PHA must try to find an acceptable unit as soon as possible. If an acceptable unit is available for rental by the family, HACCC must terminate the family’s HAP contract in accordance with its terms [24 CFR 982.403]. HACCC Policy Families must request PHA approval to add a new family member, live-in aide, foster child, or foster adult. This includes any person not on the lease who is expected to stay in the unit for more than 15 consecutive days or 45 cumulative days within a 12-month period and therefore no longer qualifies as a “guest.” Requests must be made in writing and approved by HACCC prior to the individual moving into the unit. 403 11-11 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC will not increase the subsidy size (number of bedrooms) when adding additional family member(s) to an existing tenancy. This does not include adults by marriage, children by birth, adoption or legal guardianship. The family is required to sign a Waiver of Voucher Size Standards declaring that they understand that if they move from the assisted unit, the voucher size will remain the same size as it was prior to the addition of the new family member(s). HACCC will not approve the addition of a new family or household member unless the individual meets HACCC’s eligibility criteria (see Chapter 3) and documentation requirements (see Chapter 7, Part II). If HACCC determines an individual meets HACCC’s eligibility criteria as defined in Chapter 3 and documentation requirements of Chapter 7, Part II, HACCC will provide written approval to the family. If the approval of a live-in aide will cause overcrowding according to NSPIREHQS standards, the approval letter will explain that the family will be issued a voucher and will be required to move. HACCC will not approve the addition of a foster child or foster adult if it will cause a violation of HQS space standards. If the addition of a foster child results in a violation of HQS space standards, the family will be required to move in order to add the foster child(ren). Note this provision is only for foster children, not foster adults. The addition of a foster adult shall not result in a change in the subsidy size. If HACCC determines that an individual does not meet HACCC’s eligibility criteria or documentation requirements defined in Chapter 3, HACCC will notify the family in writing of its decision to deny approval of the new family or household member and the reasons for the denial. HACCC will make its determination within 14 calendar days of receiving all information required to verify the individual’s eligibility. Departure of a Family or Household Member Families must promptly notify HACCC if any householdfamily member no longer lives in the unit [24 CFR 982.551(h)(3)]. Because household members are considered when determining the family unit (voucher) size [24 CFR 982.402], HACCC also needs to know when any live-in aide, foster child, or foster adult ceases to reside in the unit. The PHA must process an interim for all decreases in adjusted income when a family member permanently moves out of the unit. HACCC Policy If a household member ceases to reside in the unit, the family must inform HACCC within 14 calendar days. This requirement also applies to a family member who has been considered temporarily absent at the point that the family concludes the individual is permanently absent. 404 11-12 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If a live-in aide, foster child, or foster adult ceases to reside in the unit, the family must inform HACCC within 14 calendar days. 11-II.C. CHANGES AFFECTING INCOME OR EXPENSES Overview Interim reexaminations for changes in income or expenses may be scheduled either because the PHA has reason to believe that changes in income or expenses may have occurred, or because the family reports a change. The PHA must estimate the income of the family for the upcoming 12-month period to determine family income for an interim reexamination [24 CFR 5.609(c)(1)]. Policies for projecting income are found in Chapter 6. Interim reexaminations can be scheduled either because HACCC has reason to believe that changes in income or expenses may have occurred, or because the family reports a change. When a family reports a change, HACCC may take different actions depending on whether the family reported the change voluntarily, or because it was required to do so. Interim Decreases [24 CFR 982.516(c)(2) and Notice PIH 2023-27] A family may request an interim determination of family income for any change since the last determination. However, the PHA may decline to conduct an interim reexamination if the PHA estimates the family’s adjusted income will decrease by an amount that is less than 10 percent of the family’s adjusted income. The PHA may set a lower threshold in PHA policy such as performing an interim for any decreases in adjusted income, although HUD prohibits the PHA from setting a dollar-figure threshold. However, while the PHA has some discretion, HUD requires that the PHA perform an interim reexamination for a decrease in adjusted income of any amount in two circumstances: x When there is a decrease in family size attributed to the death of a family member; or x When a family member permanently moves out of the assisted unit during the period since the family’s last reexamination. In the above circumstances, the PHA must perform an interim reexamination for any decrease in adjusted income. If the net effect of the changes in adjusted income due to a decrease in family size results in no change or an increase in annual adjusted income, then PHA must process the removal of the household member(s) as a non-interim reexamination transaction without making changes to the family’s annual adjusted income. HACCC Policy 405 11-13 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC will conduct an interim reexamination any time the family’s adjusted income has decreased by any amount. Interim Increases [24 CFR 982.516(c)(3) and Notice PIH 2023-27] Increases Less than 10 Percent PHAs must not process interim reexaminations for income increases that result in less than a 10 percent increase in annual adjusted income. Increases 10 Percent or Greater PHAs must conduct an interim reexamination of family income when the PHA becomes aware that the family’s adjusted income has changed by an amount that the PHA estimates will result in an increase of 10 percent or more in adjusted income, with the following exceptions: x PHAs may not consider any increases in earned income when estimating or calculating whether the family’s adjusted income has increased, unless the family has previously received an interim reduction during the same reexamination cycle; and x PHAs may choose not to conduct an interim reexamination during the last three months of a certification period if a family reports an increase in income within three months of the next annual reexamination effective date. When the family previously received an interim reexamination for a decrease to adjusted income during the same annual reexamination cycle, a PHA has the discretion whether to consider a subsequent increase in earned income. HACCC Policy When a family reports an increase in their earned income between annual reexaminations, HACCC will not conduct an interim reexamination, regardless of the amount of the increase, unless there was a previous decrease since the family’s last annual reexamination. HACCC will process an interim reexamination for any increases in unearned income of 10 percent or more in adjusted income. HACCC will not perform an interim reexamination when a family reports an increase in income (whether earned or unearned income) within three months of their annual reexamination effective date. However, families who delay reporting income increases until the last three months of their certification period may be subject to retroactive rent increases in accordance with HACCC policies in Chapter 14. Concurrent Increases in Earned and Unearned Income [Notice PIH 2023-27] When the family reports an increase in both earned and unearned income at the same time, the PHA must look at the earned and unearned income changes independently of each other to 406 11-14 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 determine if an interim reexamination is performed. The PHA will only conduct an interim reexamination when the increase independently meets the 10 percent threshold and all other requirements for performing interim reexaminations. For example, if a family reported increases in both earned and unearned income that overall resulted in a 12 percent increase in their adjusted income, but the change in earned income represented a 7 percent increase and the change in unearned income represented a 5 percent increase, the PHA may not perform an interim for either change since neither change meets the 10 percent threshold amount independently. If the change in unearned income met the 10 percent threshold in this case, the PHA would be required to perform an interim. If the change in earned income met the 10 percent threshold in this case, the PHA would refer to PHA policy to determine whether an interim was required. Cumulative Increases [Notice PIH 2023-27] A series of smaller reported increases in adjusted income may cumulatively meet or exceed the 10- percent increase threshold, at which point the PHA must conduct an interim reexamination in accordance with PHA policy. Family Reporting The PHA must adopt policies consistent with HUD regulations prescribing when and under what conditions the family must report a change in family income or composition [24 CFR 982.516(d)]. PHA policy may require families to report only changes that the family estimates meet the threshold for an interim reexamination or the PHA may establish policies requiring that families report all changes in income and household composition, and the PHA will subsequently determine if the change requires an interim reexamination [Notice PIH 2023-27]. When the PHA determines that an interim reexamination of income is necessary, they must ask the family to report changes in all aspects of adjusted income. For example, if the family is reporting a decrease in adjusted income that is more than 10 percent, but the family also had a change in assets that would result in a change in income, the change in assets must also be reviewed [Notice PIH 2023-27]. HACCC Policy The family will be required to report all changes in income regardless of the amount of the change, whether the change is to earned or unearned income, or if the change occurred during the last three months of the certification period. Families must report changes in income within 10 business days of the date the change takes effect. The family may notify HACCC of changes either orally or in writing. If the family provides oral notice, HACCC may also require the family to submit the changes in writing. Within 10 business days of the family reporting the change, HACCC will determine whether the change will require an interim reexamination. If the change will not result in an interim reexamination, HACCC will note the information in the tenant file but will not conduct an interim reexamination. HACCC will send the family written notification within 10 business days of making 407 11-15 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 this determination informing the family that HACCC will not conduct an interim reexamination. If the change will result in an interim reexamination, HACCC will determine the documentation the family will be required to submit based on the type of change reported and HACCC policies in Chapter 7. HACCC will ask the family to report changes in all aspects of adjusted income at this time. The family must submit any required information or documents within 10 business days of receiving a request from HACCC. This time frame may be extended for good cause with HACCC approval. HACCC will accept required documentation by mail, email, fax, or in person. HACCC will conduct the interim within a reasonable time period based on the amount of time it takes to verify the information. Generally, the family will not be required to attend an interview for an interim reexamination. However, if HACCC determines that an interview is warranted, the family may be required to attend. When a family reports a change, the PHA may take different actions depending on whether the family reported the change voluntarily, or because it was required to do so. 11-II.D. EFFECTIVE DATES [24 CFR 982.516(e) and Notice 2023-27] Changes Reported Timely [Notice PIH 2023-27] If the family reports a change in family income or composition timely in accordance with PHA policies: x For rent increases, the PHA must provide the family with 30 days advance written notice. The rent increase is effective the first of the month after the end of that 30-day notice period. x Rent decreases are effective on the first of the month after the date of the actual change leading to the interim reexamination of family income. This means the decrease will be applied retroactively. Changes Not Reported Timely [Notice PIH 2023-27] If the family failed to report a change in family income or composition timely in accordance with PHA policies: x For rent increases, the PHA must implement any resulting rent increases retroactively to the first of the month following the date of the change leading to the interim reexamination of family income. x For rent decreases, the PHA must implement the change no later than the first rent period following completion of the interim reexamination. However, the PHA may choose to adopt a policy that would make the effective date of the rent decrease retroactive to the first of the month following completion of the reexamination. PHAs may choose to establish conditions or requirements for when such a retroactive application would 408 11-16 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 apply. PHAs that choose to adopt such policies must ensure the earliest date that the retroactive decrease is applied is the later of: x The first of the month following the date of the change that led to the interim reexamination; or x The first of the month following the most recent previous income examination. In applying a retroactive change in rent as the result of an interim reexamination, the PHA must clearly communicate the effect of the retroactive adjustment to the family so that there is no confusion over the amount of the rent that is the family’s responsibility. HACCC Policy In general, when the family fails to report a change in income or family composition timely, and the change would lead to a rent decrease, HACCC will apply the decrease the first of the month following the date the change was actually reported to HACCC. However, HACCC will apply the results of the interim reexamination retroactively to the first of the month following the change in income or family composition where a family’s ability to report a change in income promptly may have been hampered due to extenuating circumstances such as a natural disaster or disruptions to HACCC management operations. HACCC will decide to apply decreases retroactively on a case-by-case basis. When HACCC applies the results of interim decreases retroactively, HACCC will clearly communicate the effect of the retroactive adjustment to the family and may enter into a repayment agreement in accordance with HACCC policies. The PHA will also clearly communicate the effect of the retroactive adjustment to the owner. PHA-Initiated Interim Reexaminations PHA-initiated interim reexaminations are those that are scheduled based on circumstances or criteria defined by HACCC. They are not scheduled because of changes reported by the family. HACCC Policy HACCC will conduct interim reexaminations in each of the following instances or whenever a family’s annual adjusted income, as redetermined, experiences a reduction of 10 percent or more: • EID: For families receiving the Earned Income Disallowance (EID), HACCC will conduct an interim reexamination at the start and conclusion of the 24-month eligibility period. • Zero-Income Families: If the family has reported zero income, HACCC will conduct an interim reexamination every 3 months as long as the family continues to report that they have no income. 409 11-17 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • If a family member reports a zero income, while other family members continue to receive income, HACCC will conduct an Interim reexamination to reduce the family's rent portion for the first of the month following the reported reduction in income. Once that family member begins to receive income, they must report it within 14 days and HACCC will conduct a follow-up Interim reexamination to adjust the tenant rent portion to begin at least 30 days from the reported increase in income. This is to be distinguished from a reduction in income for a family member or household whereby HACCC will adjust the household's rent portion for the first of the following month but will not re-adjust the rent portion when the household's income increases again until the family's Annual reexamination. The family is still required to report the increase in income as indicated in this chapter. • Difficulty Anticipating Annual Income: If at the time of the annual reexamination, it is not feasible to anticipate a level of income for the next 12 months (e.g. seasonal or cyclic income), HACCC will schedule an interim reexamination to coincide with the end of the period for which it is feasible to project income. • Updating Provisional Documents: If at the time of the annual reexamination, tenant declarations were used on a provisional basis due to the lack of third-party verification, and third-party verification becomes available, HACCC will conduct an interim reexamination. • Error Correction: HACCC may conduct an interim reexamination at any time in order to correct an error in a previous reexamination, or to investigate a tenant fraud complaint. For Interim rent changes made as a result of a reduction in adjusted income of the household, HACCC shall conduct quarterly reviews of the EIV New Hires Report for the remainder of the reexamination period after the interim reexamination to decrease the rent occurs. Family-Initiated Interim Reexaminations HACCC must adopt policies prescribing when and under what conditions the family must report changes in family income or expenses [24 CFR 982.516(c)]. In addition, HUD regulations require that the family be permitted to obtain an interim reexamination any time the family has experienced a change in circumstances since the last determination [24 CFR 982.516(b)(2)]. Required Reporting HUD regulations give HACCC the freedom to determine the circumstances under which families will be required to report changes affecting income. HACCC Policy Families are required to report increases in income between annual recertifications. Families who report increases must report any increase within 14 calendar days of receiving evidence of the increase in income including, notices, paychecks or other forms of communication alerting the family to an increase in income.. 410 11-18 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC will conduct interim reexaminations when the family’s income has increased by 10 percent of annual adjusted income or more and their share of rent will change as a result of the increase. Optional Reporting The family may request an interim reexamination any time the family has experienced a change in circumstances since the last determination [24 CFR 982.516(b)(2)]. HACCC must process the request if the family reports a change that will result in a reduced family income [HCV GB, p. 12-9]. If a family reports a decrease in income from the loss of welfare benefits due to fraud or non- compliance with a welfare agency requirement to participate in an economic self-sufficiency program, the family’s share of the rent will not be reduced [24 CFR 5.615]. For more information regarding the requirement to impute welfare income see Chapter 6. HACCC Policy If a family reports a change that it was not required to report and that would result in an increase in the family share of the rent, HACCC will note the information in the tenant software database but will not conduct an interim reexamination. If a family reports a change that will last for at least 30 calendar days that it was not required to report and that would result in a decrease in the family share of rent, HACCC will conduct an interim reexamination. See Section 11-II.D. for effective dates. Families may report changes in income or expenses at any time. 11-II.D. PROCESSING THE INTERIM REEXAMINATION Method of Reporting HACCC Policy The family must notify HACCC of changes in writing. Generally, the family will not be required to attend an interview for an interim reexamination. However, if HACCC determines that an interview is warranted, the family may be required to attend. Based on the type of change reported, HACCC will determine the documentation the family will be required to submit. The family must submit any required information or documents within 14 calendar days of receiving a request from HACCC. This time frame may be extended for good cause with PHA approval. HACCC will accept required documentation by email or other electronic format acceptable to HACCC such as screen shots or jpeg files, by mail, by fax, or in person. 411 11-19 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Effective Dates HACCC must establish the time frames in which any changes that result from an interim reexamination will take effect [24 CFR 982.516(d)]. The changes may be applied either retroactively or prospectively, depending on whether there is to be an increase or a decrease in the family share of the rent, and whether the family reported any required information within the required time frames [HCV GB, p. 12-10]. HACCC Policy If the family share of the rent is to increase: • The increase generally will be effective on the first of the month following 30 days’ notice to the family. • If a family fails to report a change within the required time frames or fails to provide all required information within the required time frames, the increase will be applied retroactively to the date it would have been effective had the information been provided on a timely basis. The family will be responsible for any overpaid subsidy and may be offered a repayment agreement in accordance with the policies in Chapter 16. If the family share of the rent is to decrease: • The decrease will be effective on the first day of the month following the month in which the change was reported, and all required documentation was submitted however, all required documentation must be received by the 20th calendar day of the month to allow adequate time for processing. • In cases where the change cannot be verified until after the date the change would have become effective, the change will be made retroactively. 412 11-20 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART III: RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT 11-III.A. OVERVIEW After gathering and verifying required information for an annual or interim reexamination, HACCC must recalculate the family share of the rent and the subsidy amount and notify the family and owner of the changes [24 CFR 982.516(d)(2), HCV 12-6 and 12-10]. While the basic policies that govern these calculations are provided in Chapter 6, this part lays out policies that affect these calculations during a reexamination. 11-III.B. CHANGES IN PAYMENT STANDARDS AND UTILITY ALLOWANCES In order to calculate the family share of the rent and HAP amount correctly, changes in payment standards, subsidy standards, or utility allowances may need to be updated and included in HACCC’s calculations. Specific policies governing how subsidy standards, payment standards, and utility allowances are applied are discussed below. Payment Standards [24 CFR 982.505] The family share of the rent and HAP calculations must use the correct payment standard for the family, taking into consideration the family unit size, the size of unit, and the area in which the unit is located [HCV GB, p. 12-5]. See Chapter 6 for information on how to select the appropriate payment standard. When HACCC changes its payment standards or the family’s situation changes, new payment standards are applied at the following times: • If HACCC’s payment standard amount changes during the term of the HAP contract, the date on which the new standard is applied depends on whether the standard has increased or decreased: - If the payment standard amount has increased, the increased payment standard will be applied at the first annual reexamination following the effective date of the increase in the payment standard. - If the payment standard amount has decreased, during the term of a HAP contract, HACCC shall not reduce the payment standard as long as the HAP contract remains in effect. At the family’s second annual reexamination, HACCC may, but is not required to, apply the decreased payment standard or may gradually implement the reduced payment standard (See Chapter 6 for the PHA’s policy on decreases in the payment standard). • If the family moves to a new unit, or a new HAP contract is executed due to changes in the lease (even if the family remains in place) the current payment standard applicable to the family will be used when the new HAP contract is processed. 413 11-21 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • HACCC may, on a case-by-case basis, make changes to the family’s payment standard at the next Interim Certification instead of the family’s Annual Certification, if the change would alleviate a financial burden presented to the family as a result of an owner’s rent increase. Subsidy Standards [24 CFR 982.505(c)(4)] If there is a change in the family unit size that would apply to a family during the HAP contract term, either due to a change in family composition, or a change in HACCC’s subsidy standards (see Chapter 5), the new family unit size must be used to determine the payment standard amount for the family at the family’s first annual reexamination following the change in family unit size. Utility Allowances [24 CFR 982.517(d)] The family share of the rent and HAP calculations must reflect any changes in the family’s utility arrangement with the owner, or in HACCC’s utility allowance schedule [HCV GB, p. 12-5]. Chapter 16 discusses how utility allowance schedules are established. When there are changes in the utility arrangement with the owner, HACCC must use the utility allowances in effect at the time the new lease and HAP contract are executed. At reexamination, HACCC must use HACCC current utility allowance schedule [HCV GB, p. 18- 8]. HACCC Policy Revised utility allowances will be applied to a family’s rent and subsidy calculations at the first annual reexamination after the allowance is adopted. If a revised Utility Allowance Schedule is implemented retroactively, annual certifications affected by the revised schedule shall be updated with a correction to the Annual reexamination if the utility allowance is increasing or, when the utility allowance is decreasing, an Interim Reexamination will be completed to ensure the tenant is given 30 -Day Notice of the increase in the tenant rent portion. 11-III.C. NOTIFICATION OF NEW FAMILY SHARE AND HAP AMOUNT HACCC must notify the owner and family of any changes in the amount of the HAP payment [HUD-52641, HAP Contract]. The notice must include the following information [HCV GB, p. 12-6]: • The amount and effective date of the new HAP payment • The amount and effective date of the new family share of the rent • The amount and effective date of the new tenant rent to owner 414 11-22 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The family must be given an opportunity for an informal hearing regarding HACCC’s determination of their annual or adjusted income, and the use of such income to compute the housing assistance payment [24 CFR 982.555(a)(1)(i)] (see Chapter 16). HACCC Policy The notice to the family will state the effective dates and amounts of the new family rent payment, new Housing Assistance Payment, the new total Contract Rent and the previous family rent payment. The notice will state the family has the right to request an explanation of how the assistance was calculated and if the family disagrees, they have the right to informal hearing. The notice will include the procedures for requesting an informal hearing. 11-III.D. DISCREPANCIES During an annual or interim reexamination, HACCC may discover that information previously reported by the family was in error, or that the family intentionally misrepresented information. In addition, HACCC may discover errors made by HACCC. When errors resulting in the overpayment or underpayment of subsidy are discovered, corrections will be made in accordance with the policies in Chapter 134. 415 11-23 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART IV: NON-INTERIM REEXAMINATION TRANSACTIONS [Notice PIH 2023-27] Families may experience changes within the household that do not trigger an interim reexamination under PHA policy and HUD regulations but which HUD still requires the PHA to report to HUD via Form HUD-50058. These are known as non-interim reexamination transactions. In these cases, PHAs will submit a separate, new action code on Form HUD-50058. The following is a list of non-interim reexamination transactions: x Adding or removing a hardship exemption for the child care expense deduction; x Updating or removing the phased-in hardship relief for the health and medical care expense deduction and/or reasonable attendant care and auxiliary apparatus expense deduction (families will begin receiving a 24-month phased-in relief at their next annual or interim reexamination, whichever occurs first)( x Adding or removing general hardship relief for the health and medical care expense deduction and/or reasonable attendant care and auxiliary apparatus expense deduction; x Adding or removing a minimum rent hardship; x Adding or removing a non-family member (i.e., live-in aide, foster child, foster adult); x Ending a family’s EID or excluding 50 percent (decreased from 100 percent) of a family member’s increase in employment income at the start of the second 12- month EID period. x Adding a family member and the increase in adjusted income does not trigger an interim reexamination under the final rule; x Removing a family member and the increase in adjusted income does not trigger an interim reexamination under the final rule; x Adding/updating a family or household member’s Social Security number; and x Updating a family member’s citizenship status from eligible to ineligible or vice versa, resulting in a change to the family’s rent and/or utility reimbursement, if applicable (i.e., family begins receiving prorated assistance or previously prorated assistance becomes full assistance), or updating the prorated rent calculation due to the addition or removal of family members in household with an ineligible noncitizen(s). PHAs must make all other changes to assets, income, and deductions at the next annual or interim reexamination of income, whichever is sooner. 416 11-24 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EXHIBIT 11-1: CALCULATING Income AT ANNUAL REEXAMINATION Example 1: Calculating Annual Income at Annual Reexamination Using EIV Staff are processing the 3/1/2024 annual reexamination for Ruby Myers and her minor daughter, Georgia. No interim reexaminations have been processed, and Ruby has not reported any changes to annual income to the PHA since the 3/1/2023 annual reexamination. The SSA published 2024 COLA is 7 percent. Last reexamination – 3/1/2023 Annual Reexamination Ruby: Wages: $30,000 Georgia: SSI: $10,980 ($915 monthly) The EIV report pulled on 12/15/2023 Ruby: Georgia: Wages Total: $33,651 SSI Total: $10,980 Quarter 3 of 2023: $8,859 (City Public School) 2023 benefit $915 monthly Quarter 2 of 2023: $8,616 (City Public School) Quarter 1 of 2023: $8,823 (City Public School) Quarter 4 of 2022: $7,353 (City Public School) 417 11-25 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Income Reported on Reexamination Application Ruby: Wages at City Public School: $32,000 (switched jobs but no permanent change to amount) Georgia: SSI benefits: $10,980 (no changes) Calculating Ruby’s wages: Step 1: Determine prior annual income from EIV (i.e., Q4 2022 through Q3 of 2023: $33,651). Step 2: Take into consideration any interim reexamination of family income completed since the last annual reexamination (in this case, there have been no interim reexaminations processed since the last annual reexamination). Step 3: Ruby certifies that the $33,651 of wages in EIV is accurate and reflects her current annual income, so the PHA will use $33,651 for annual wages for the 3/1/2024 annual reexamination given there have been no additional changes to annual income. Calculating Georgia’s SSI benefit: Step 1: Determine the prior annual income from EIV (i.e., $915 x 12 months: $10,980). Step 2: Take into consideration any interim reexamination of family income completed since the last annual reexamination (in this case, there have been no interim reexaminations processed since the last annual reexamination). Step 3: Ruby certifies the SSI income in EIV is accurate and reflects Georgia’s current annual income. The PHA must adjust the prior-year income (2023 SSI benefit) by the 7- percent COLA and will use this amount to calculate annual SSI income for the 3/1/2024 annual reexamination: COLA: $64.05 ($915 x 0.07) New gross SSI benefit: $11,748.60 ($979.05 x 12 months) If Ruby did not agree with the annual wages reported in EIV, the PHA/MFH Owner would be required to verify her current income in accordance with HUD’s verification hierarchy. Summary of Annual Income (as reported on the HUD-50058) Ruby (Head of Household): Other Wage: $33,651 Myers Family Total Annual Income: $45,399 Georgia (Other Youth Under 18): SSI: $11,748 418 11-26 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Example 2: Calculating Annual Income at Annual Reexamination Using EIV: Family Disagrees with EIV Staff are processing Paul Hewson’s 5/1/2024 annual reexamination. Since the last annual reexamination, Paul reported a decrease in annual income that exceeded 10 percent. Last year, Paul reported a decrease in earned income because he transferred from a full-time job at Sasha’s Sweets to a part-time job at Viking Bakery. Following HUD’s EIV verification hierarchy, staff confirmed Paul was no longer employed at Sasha’s Sweets and decreased his anticipated annual income from $28,000 to $7,500 resulting from his new part-time employment at Viking Bakery; an interim reexamination was processed effective 7/1/2023. After the 7/1/2023 interim, Paul worked briefly at two different jobs, but he says he is no longer working and is not planning to work. 5/1/2023 Annual Reexamination Wages: $28,000 The EIV report pulled on 1/15/2024 Wages Total: $18,271 Quarter 3 of 2023: $2,500 (Viking Bakery) Quarter 3 of 2023: $796 (Sweet Tooth Candy Bar) Quarter 2 of 2023: $1,300 (Sasha’s Sweets) Quarter 2 of 2023: $584 (Larry’s Concessions) Quarter 2 of 2023: $2,401 (Viking Bakery) Quarter 1 of 2023: $6,500 (Sasha’s Sweets) Quarter 4 of 2022: $600 (Sasha’s Sweets) SS/SSI: No history of benefits 419 11-27 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Income Reported on Reexamination Application Wages: $0 (permanent change; no longer receiving) Social Security: $14,400 ($1,200 monthly) Paul certified on the PHA’s annual reexamination paperwork that he does not agree with the annual wages of $18,271 reported in EIV and it is not reflective of his current anticipated annual income. He reported he is currently unemployed, and provided a copy of an award letter from the Social Security Administration to document that he will begin receiving a monthly disability benefit of $1,200 effective 3/1/2024. Calculating Wages and SS Benefit Step 1: Determine prior annual income taking into consideration the 7/1/2023 interim reexamination (i.e., EIV wages reflected Q4 2022 through Q3 2023: $18,271) Step 2: Take into consideration any interim reexamination of family income completed since the last annual reexamination. In this case, there was a 7/1/2023 interim that reduced wages to $7,500. Step 3: Obtain documentation to verify current income and confirm Paul is no longer employed at Viking Bakery or The Sweet Tooth Candy Bar (the employers reported in the most recent quarter of EIV). This step is necessary, because Paul did not agree with the EIV income report or income reported on the last interim reexamination. Paul reported that he is no longer working at all. Process the annual reexamination effective 5/1/2024 using annual SS income of $14,400 and $0 wages. Summary of Annual Income (as reported on the HUD-50058) Paul (Head of Household): $14,400 (SS) Hewson Family Total Annual Income: $14,400 420 11-28 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Example 3: Calculating Annual Income at Annual Reexamination Staff are processing the 11/1/2024 annual reexamination for Samantha and Fergus Pool, head of household and spouse. On 2/14/2024 Samantha reported her monthly child support payment was reduced from $200 to $100 per month, but an interim reexamination was not processed because the reduction in child support income for Samantha’s daughter, Hailey, did not result in a decrease of 10 percent or more in annual adjusted income, and the PHA did not establish a lower threshold. Samantha did not report any additional changes to the PHA. Last reexamination – 11/1/2023 Annual Reexamination Samantha: Business income: $28,000 VA disability pension: $12,000 Child support: $2,400 Fergus: Wages: $8,250 Other non-wage income: $3,000 (Go Fund Me online fundraiser) The EIV report pulled on 9/16/2024 Samantha: Fergus: Wages Total: $0 (no wage data reported since Q1 2023) Wages Total: $8,600 Quarter 1 of 2024: $2,100 (Ian’s Fish ‘n’ Chips) Quarter 1 of 2024: $500 (Claire’s Healthcare Supplies) Quarter 4 of 2023: $1,000 (Claire’s Healthcare Supplies) Quarter 3 of 2023: $1,800 (The Onion Garden Shop) Quarter 2 of 2023: $3,200 (Ivar’s Fish Haus) 421 11-29 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Current Family Circumstances: Income Reported on Reexamination Application Samantha and Fergus reported how much income was earned/received in the previous 12-month period and noted permanent changes, where applicable, for each source of their income on PHA’s annual reexamination form. However, no information was reported by the family concerning other non-wage income. Fergus reported only wages and his current employment at Ian’s Fish ‘n’ Chips for the annual reexamination. The family supplied the supporting documentation noted below to the PHA for the 11/1/2024 annual reexamination. Samantha: Business income: $28,750 (last year); has decreased to $18,000 (permanent change) VA disability benefit: $12,000 (last year); has increased to $12,300 (permanent change) Child support: $2,400 (last year); has decreased to $1,200 (permanent change) Fergus: Wages: $6,000 Calculating Samantha’s Net Business Income Step 1: Determine prior annual net business income (i.e., $28,000 on last HUD–50058). Step 2: Take into consideration any interim reexamination of family income completed since the last annual reexamination. In this case, there have been no interim reexaminations processed since the last annual reexamination. Step 3: Adjust to reflect current net business income. Samantha reported on the annual reexamination application that business income permanently decreased to $18,000. The PHA must obtain supporting documentation from Samantha that demonstrates current net business income. Samantha provided documentation that supported the current annual net business income is $18,000. Process the annual reexamination effective 11/1/2024 using annual net business income determined in Step 3. Calculating Samantha’s VA Pension Income Step 1: Determine prior annual VA pension income (i.e., $12,000 supported by a VA award letter Samantha supplied that documents the prior year monthly VA pension was $1,000). Step 2: Take into consideration any interim reexamination of family income completed since the last annual reexamination. In this case, there have been no interim reexaminations processed since the last annual reexamination. Step 3: The PHA needs to adjust to reflect current VA pension income. Samantha supplies a VA award letter showing a monthly pension of $1,025, or $12,300 annually. Process the annual reexamination effective 11/1/2024 using annual VA pension income determined in Step 3 ($12,300 in this example). 422 11-30 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Calculating Samantha’s Child Support Income Step 1: Determine prior annual child support income (i.e., $2,400 on the last HUD–50058). Step 2: Take into consideration any interim reexamination of family income completed since the last annual reexamination. In this case, there have been no interim reexaminations processed since the last annual reexamination. The family reported a decrease from $200 to $100 monthly, but the change was not processed because it did not meet the threshold. Step 3: The family reported changes, so the PHA must adjust to reflect current child support income. In this example, the family submitted a child support history report from the local child support office that documents regular $100 monthly child supports payments beginning 3/1/2024 through the current month. Process the annual reexamination effective 11/1/2024 using current annual child support income determined in Step 3 ($1,200 in this example). Calculating Fergus’ Wages Step 1: Determine prior annual income from wages in EIV (i.e., Q2 2023 through Q1 of 2024: $8,600). Step 2: Take into consideration any interim reexamination of family income completed since the last annual reexamination. In this case, there have been no interim reexaminations processed since the last annual reexamination. Step 3: There is a discrepancy between what the family reported and EIV, so the PHA must verify and adjust to reflect current annual income from wages. Fergus reported $6,000 in annual income from wages on the annual reexamination from a single employer, Ian’s Fish ‘n’ Chips. The PHA projected annual income of $7,800 based on the two paystubs for this employer, and EIV shows $8,600 earned in the most recent four quarters in EIV. To complete Step 3, the PHA must do the following: x Resolve the discrepancy between EIV wages, the $6,000 annual income Fergus reported, and the $7,800 projected based on the paystubs he provided, and x Verify he is no longer employed at Claire’s Healthcare Supplies in accordance with HUD’s verification hierarchy and local policies. The PHA determined that Fergus reported his net vs. gross annual income from wages, which he corrected on the annual reexamination form to reflect his current gross annual income of $9,000. The PHA verified Fergus was no longer employed at Claire’s Healthcare Supplies and obtained two additional paystubs. Based on four current and consecutive paystubs, Fergus is now projected to earn $9,360 annually. Process the annual reexamination effective 11/1/2024 using income from wages determined in Step 3 ($9,360 in this example). 423 11-31 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Calculating Fergus’ Other Non-Wage Income Step 1: Determine prior annual income from other non-wage income (i.e., $3,000 on the last HUD– 50058). Step 2: Take into consideration any interim reexamination of family income completed since the last annual reexamination. In this case, there have been no interim reexaminations processed since the last annual reexamination. Step 3: The family did not report any non-wage income on the annual reexamination form, but it was included on the last HUD–50058. The PHA must verify and adjust to reflect current non-wage income. The PHA must verify no income was received through a “Go Fund Me” online fundraiser so that it may be excluded. Fergus provided a self-certification that he hasn’t solicited funds online and doesn’t plan to in the following year; he also provided records from the account that documented no fundraising activity in the prior 12-month period. Process the annual reexamination effective 11/1/2024 using annual non-wage income of $0 determined in Step 3. Summary of Annual Income (as reported on the HUD-50058) Samantha (Head of Household): Own business: $18,000 Pension: $12,300 Child support: $1,200 Fergus (Co-head): Wages: $9,360 Poole Family Total Annual Income: $40,860 424 12-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 CHAPTER 12 TERMINATION OF ASSISTANCE AND TENANCY HUD regulations specify mandatory and optional grounds for which a PHA can terminate a family’s assistance. They also specify the circumstances under which an owner may terminate the tenancy of an assisted family. This chapter describes the policies that govern mandatory and optional terminations of assistance, and termination of tenancy by the owner. It is presented in three parts: Part I: Grounds for Termination of Assistance. This part describes the various circumstances under which assistance under the program can be terminated by the family or by the PHA. Part II: Approach to Termination of Assistance. This part describes the policies and the process that HACCC will use in evaluating decisions on whether to terminate assistance due to actions or inactions of the family where termination is an option. It specifies the alternatives that HACCC may consider in lieu of termination, the criteria HACCC will use when deciding what action to take, and the steps HACCC must take when terminating a family’s assistance. Part III: Termination of Tenancy by the Owner. This part describes the HUD policies that govern the owner’s right to terminate an assisted tenancy. 425 12-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART I: GROUNDS FOR TERMINATION OF ASSISTANCE 12-I.A. OVERVIEW HUD requires HACCC to terminate assistance for certain actions and inactions of the family and when the family no longer requires assistance due to increases in family income. HUD permits HACCC to terminate assistance for certain other actions or inactions of the family. In addition, a family may decide to withdraw from the program and terminate their HCV assistance at any time by notifying the PHA. 12-I.B. FAMILY NO LONGER REQUIRES ASSISTANCE [24 CFR 982.455] As a family’s income increases, the amount of the housing assistance payment decreases. If the amount of assistance provided by HACCC is reduced to zero, the family's assistance terminates automatically 180 days after the last HAP payment. HACCC Policy If a participating family receiving zero assistance experiences a change in circumstances that would result in a HAP payment to the owner, the family must notify HACCC of the change and request an interim reexamination before the expiration of the 180-day period. 12-I.C. FAMILY CHOOSES TO TERMINATE ASSISTANCE The family may request that HACCC terminate housing assistance payments on behalf of the family at any time. HACCC Policy The request to terminate assistance should be made in writing and signed by the head of household, and spouse or cohead if applicable. Before terminating the family’s assistance, HACCC will follow the notice requirements in Section 12-II.F. 12-I.D. MANDATORY TERMINATION OF ASSISTANCE HUD requires HACCC to terminate assistance in the following circumstances. Eviction [24 CFR 982.552(b)(2), 24 CFR 5.2005(c)(1)] HACCC must terminate assistance whenever a family is evicted from a unit assisted under the HCV program for a serious or repeated violation of the lease. As discussed further in section 12- II.E, incidents of actual or threatened domestic violence, dating violence, sexual assault, or stalking, or human trafficking may not be construed as serious or repeated violations of the lease by the victim or threatened victim of such violence or stalking. 426 12-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy A family will be considered evicted if the family moves after a legal eviction order has been issued, whether or not physical enforcement of the order was necessary. If a family moves after the owner has given the family an eviction notice for serious or repeated lease violations but before a legal eviction order has been issued, termination of assistance is not mandatory. In such cases HACCC will determine whether the family has committed serious or repeated violations of the lease based on available evidence and may terminate assistance or take any of the alternative measures described in section 12-II.C. In making its decision, HACCC will consider the factors described in sections 12-II.D and 12- II.E. Upon consideration of such factors, HACCC may, on a case-by-case basis, choose not to terminate assistance. 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 criterion to be used will be whether or not the reason for the eviction was the fault of the tenant or guests. Failure to Provide Consent [24 CFR 982.552(b)(3)] HACCC must terminate assistance if any family member fails to sign and submit any consent form they are required to sign for a regular or interim reexamination. See Chapter 7 for a complete discussion of consent requirements. Failure to Document Citizenship [24 CFR 982.552(b)(4) and [24 CFR 5.514(c)] HACCC must terminate assistance if (1) a family fails to submit required documentation within the required timeframe concerning any family member’s citizenship or immigration status; (2) a family submits evidence of citizenship and eligible immigration status in a timely manner, but United States Citizenship and Immigration Services (USCIS) primary and secondary verification does not verify eligible immigration status of the family; or (3) a family member, as determined by the PHA, has knowingly permitted another individual who is not eligible for assistance to reside (on a permanent basis) in the unit. For (3) above, such termination must be for a period of at least 24 months. This does not apply to ineligible noncitizens already in the household where the family’s assistance has been prorated. See Chapter 7 for a complete discussion of documentation requirements. Failure to Disclose and Document Social Security Numbers [24 CFR 5.218(c), Notice PIH 2012- 10] HACCC must terminate assistance if a participant family fails to disclose the complete and accurate social security numbers of each household member and the documentation necessary to verify each social security number. 427 12-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 However, if the family is otherwise eligible for continued program assistance, and HACCC determines that the family’s failure to meet the SSN disclosure and documentation requirements was due to circumstances that could not have been foreseen and were outside of the family’s control, HACCC may defer the family’s termination and provide the opportunity to comply with the requirement within a period not to exceed 90 calendar days from the date HACCC determined the family to be noncompliant. HACCC Policy HACCC will defer the family’s termination and provide the family with the opportunity to comply with the requirement for a period of 90 calendar days for circumstances beyond the participant’s control such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency, if there is a reasonable likelihood that the participant will be able to disclose an SSN by the deadline. Net Family Assets Exceed $100,000 In the event a participant family is determined to have net family assets of over $100,000, HUD regulations (24 CFR 5.618), pursuant to the changes implemented by the Housing Opportunities Through Modernization Act of 2016 (HOTMA), require that the family’s rental assistance be termination no later than six months after the effective date of an Annual or Interim reexamination that determines that there are net family assets of more than $100,000. In addition, HUD requires that the family must be terminated from assistance if the family has a present ownership interest in, a legal right to reside in, and the effective legal authority to sell the real property (based on laws of the State or locality in which the property is located) that is suitable for occupancy by the family as a residence. HACCC Policy HACCC shall provide up to six months from the effective date of the Annual or Interim Reexamination to permit the family to cure the noncompliance with the Net Asset threshold requirement. Methamphetamine Manufacture or Production [24 CFR 982.553(b)(1)(ii)] HACCC must terminate assistance if any household member has ever been convicted of the manufacture or production of methamphetamine on the premises of federally assisted housing. Tier 3: Lifetime Registered Sex Offenders [Notice PIH 2012-28] Should a PHA discover that a member of an assisted household was subject to a Tier 3: Lifetime registration requirement at admission and was erroneously admitted after June 25, 2001, HACCC must immediately terminate assistance for the household member. 428 12-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 In this situation, HACCC must offer the family the opportunity to remove the ineligible family member from the household. If the family is unwilling to remove that individual from the household, HACCC must terminate assistance for the household. Failure of Students to Meet Ongoing Eligibility Requirements [24 CFR 982.552(b)(5) and FR 4/10/06] If a student enrolled at an institution of higher education is under the age of 24, is not a veteran, is not married, does not have dependent children, is not residing with their parents in an HCV assisted household, and is not a person with disabilities receiving HCV assistance as of November 30, 2005, HACCC must the terminate the student’s assistance if, at the time of reexamination, either the student’s income or the income of the student’s parents (if applicable) exceeds the applicable income limit. If a participant household consists of both eligible and ineligible students, the eligible students shall not be terminated, but must be issued a voucher to move with continued assistance in accordance with program regulations and PHA policies or must be given the opportunity to lease in place if the terminated ineligible student members elect to move out of the assisted unit. Death of the Sole Family Member [24 CFR 982.311(d) and Notice PIH 2010-9] HACCC must immediately terminate program assistance for deceased single member households. 12-I.E. MANDATORY POLICIES AND OTHER AUTHORIZED TERMINATIONS Mandatory Policies [24 CFR 982.553(b) and 982.551(l)] HUD requires HACCC to establish policies that permit HACCC to terminate assistance if HACCC determines that: Any household member is currently engaged in any illegal use of a drug, or has a pattern of illegal drug use that interferes with the health, safety, or right to peaceful enjoyment of the premises by other residents Any household member’s abuse or pattern of abuse of alcohol may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents Any household member has violated the family’s obligation not to engage in any drug-related criminal activity Any household member has violated the family’s obligation not to engage in violent criminal activity Use of Illegal Drugs and Alcohol Abuse HACCC Policy 429 12-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC will terminate a family’s assistance if any household member is currently engaged in any illegal use of a drug, or has a pattern of illegal drug use that interferes with the health, safety, or right to peaceful enjoyment of persons residing in the immediate vicinity of the premises. HACCC will terminate assistance if any household member’s abuse or pattern of abuse of alcohol threatens the health, safety, or right to peaceful enjoyment of persons residing in the immediate vicinity of the premises. Currently engaged in is defined as any use of illegal drugs during the previous six months. HACCC will consider all credible evidence including, but not limited to, convictions, or eviction of household members related to the use of illegal drugs or abuse of alcohol. A record or records of arrest(s) will not be used as the sole basis for the termination or proof that the participant engaged in disqualifying criminal activity. In making its decision to terminate assistance, HACCC will consider alternatives as described in Section 12-II.C and other factors described in Sections 12-II.D and 12-II.E. Upon consideration of such alternatives and factors, HACCC may, on a case-by-case basis, choose not to terminate assistance. Drug-Related and Violent Criminal Activity [24 CFR 5.100] Drug means a controlled substance as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802). Drug-related criminal activity is 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. Violent criminal activity means 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. HACCC Policy HACCC will terminate a family’s assistance if any household member has violated the family’s obligation not to engage in any drug-related or violent criminal activity during participation in the HCV program. HACCC will consider all credible evidence, including but not limited to, convictions of household members related to drug-related or violent criminal activity, and any eviction or notice to evict based on drug-related or violent criminal activity. A record or records of arrest(s) will not be used as the sole basis for the termination or proof that the participant engaged in disqualifying criminal activity. 430 12-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 In making its decision to terminate assistance, HACCC will consider alternatives as described in Section 12-II.C and other factors described in Sections 12-II.D and 12-II.E. Upon consideration of such alternatives and factors, HACCC may, on a case-by-case basis, choose not to terminate assistance. Other Authorized Reasons for Termination of Assistance [24 CFR 982.552(c), 24 CFR 5.2005(c), 24 CFR 984.101(d)] HUD permits HACCC to terminate assistance under a number of other circumstances. It is left to the discretion of HACCC whether such circumstances in general warrant consideration for the termination of assistance. As discussed further in section 12-II.E, the Violence against Women Act of 2005 explicitly prohibits PHAs from considering incidents of, or criminal activity directly related to, domestic violence, dating violence, sexual assault, or stalking, or human traffincking as reasons for terminating the assistance of a victim of such abuse. Additionally, per 24 CFR 984.101(d), PHAs are no longer permitted to terminate assistance to a family due to the family’s failure to meet its obligations under the Family Self-Sufficiency (FSS) contract of participation. HACCC Policy HACCC will not terminate a family’s assistance because of the family’s failure to meet its obligations under the Family Self-Sufficiency program. HACCC will terminate a family’s assistance if: • The family has failed to comply with any family obligations under the program. See Exhibit 12-1 for a listing of family obligations and related PHA policies. • Any family member has been evicted from federally-assisted housing in the last five three years. • Any family member has committed fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program. • The family currently owes rent or other amounts to any PHA in connection with Section 8 or public housing assistance under the 1937 Act. • The family has not reimbursed any PHA for amounts HACCC paid to an owner under a HAP contract for rent, damages to the unit, or other amounts owed by the family under the lease. • The family has breached the terms of a repayment agreement entered into with the PHA. • A family member has engaged in or threatened violent or abusive behavior toward PHA personnel. 431 12-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 - 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 terminate assistance, HACCC will consider alternatives as described in Section 12-II.C and other factors described in Sections 12-II.D and 12-II.E. Upon consideration of such alternatives and factors, HACCC may, on a case-by-case basis, choose not to terminate assistance. Family Absence from the Unit [24 CFR 982.312] The family may be absent from the unit for brief periods. HACCC must establish a policy on how long the family may be absent from the assisted unit. However, the family may not be absent from the unit for a period of more than 180 consecutive calendar days for any reason. Absence in this context means that no member of the family is residing in the unit. HACCC Policy If the family is absent from the unit for more than 60 consecutive calendar days, the family’s assistance will be terminated. Notice of termination will be sent in accordance with Section 12-II.F. Exceptions up to the HUD limit of 180 days will be made in cases of hospitalization or other such emergency. All exceptions will be verified before approval. Insufficient Funding [24 CFR 982.454] HACCC may terminate HAP contracts if HACCC determines, in accordance with HUD requirements, that funding under the consolidated ACC is insufficient to support continued assistance for families in the program. HACCC Policy HACCC will determine whether there is sufficient funding to pay for currently assisted families according to the policies in Part VIII of Chapter 16. If HACCC determines there is a shortage of funding, prior to terminating any HAP contracts, HACCC will determine if any other actions can be taken to reduce program costs. If after implementing all reasonable cost cutting measures there is not enough funding available to provide continued assistance for current participants, HACCC will terminate HAP contracts as a last resort. Prior to terminating any HAP contracts, HACCC will inform the local HUD field office. HACCC will terminate the minimum number needed in order to reduce HAP costs to a level within the PHA’s annual budget authority. 432 12-9 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If HACCC must terminate HAP contracts due to insufficient funding, HACCC will do so in accordance with the following criteria and instructions: HACCC will terminate assistance beginning with families that have been on the Section 8 program the longest, with the exception that contracts for elderly and disabled families will not be cancelled unless there are no non-elderly disabled families on HACCC’s HCV program. Families who lose their assistance due to funding cuts will be placed back on the wait list with a preference. 433 12-10 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART II: APPROACH TO TERMINATION OF ASSISTANCE 12-II.A. OVERVIEW HACCC is required by regulation to terminate a family’s assistance for certain actions or inactions of the family. For other types of actions or inactions of the family, the regulations give HACCC the authority to either terminate the family’s assistance or to take another action. This part discusses the various actions HACCC may choose to take when it has discretion, and outlines the criteria HACCC will use to make its decision about whether or not to terminate assistance. It also specifies the requirements for the notification to the family of the PHA’s intent to terminate assistance. 12-II.B. METHOD OF TERMINATION [24 CFR 982.552(a)(3)] - Termination of assistance for a participant may include any or all of the following: • Terminating housing assistance payments under a current HAP contract, • Refusing to enter into a new HAP contract or approve a lease, or • Refusing to process a request for or to provide assistance under portability procedures. 12-II.C. ALTERNATIVES TO TERMINATION OF ASSISTANCE Change in Household Composition As a condition of continued assistance, HACCC may require that any household member who participated in or was responsible for an offense no longer resides in the unit [24 CFR 982.552(c)(2)(ii)]. HACCC Policy As a condition of continued assistance, the head of household must certify that the culpable family member has vacated the unit and will not be permitted to visit or to stay as a guest in the assisted unit. The family must present evidence of the former family member’s current address upon PHA request. Repayment of Family Debts HACCC Policy If a family owes amounts to the PHA, as a condition of continued assistance, HACCC will require the family to repay the full amount or to enter into a repayment agreement, within 30 calendar days of receiving notice from HACCC of the amount owed. See Chapter 16 for policies on repayment agreements. 12-II.D. CRITERIA FOR DECIDING TO TERMINATE ASSISTANCE Evidence 434 12-11 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 For criminal activity, HUD permits HACCC to terminate assistance if a preponderance of the evidence indicates that a household member has engaged in the activity. HACCC Policy HACCC will use the concept of the preponderance of the evidence as the standard for making all termination 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 Use of Criminal Conviction Records after Admission [24 CFR 5.903] The regulation at 24 CFR 5.903 governs a PHA’s access to and use of criminal conviction records obtained from a “law enforcement agency” such as the National Crime Information Center (NCIC), police departments, and other law enforcement agencies that hold criminal conviction records. While the regulatory listing of permitted uses for these records includes PHA screening of applicants for admission to the HCV program, it specifically excludes the use of records for lease enforcement and eviction of HCV participants and excludes by omission a PHA’s use of records to terminate assistance for participants. While a PHA has regulatory authority to use criminal conviction records for the purpose of applicant screening for admission, there is no corresponding authority to use these records to check for criminal and illegal drug activity by participants, and therefore, PHAs may not use records for this purpose. The limitations, however, do not apply to criminal conviction information searches from non-federal sources (i.e., sources other than the “law enforcement agencies” defined in 24 CFR 5.902(b)). There is no prohibition that bars a PHA from using non - federal sources to conduct criminal background checks of program participants. Consideration of Circumstances [24 CFR 982.552(c)(2)(i)] HACCC is permitted, but not required, to consider all relevant circumstances when determining whether a family’s assistance should be terminated. HACCC Policy HACCC will consider the following facts and circumstances when making its decision to terminate assistance: The seriousness of the case, especially with respect to how it would affect other residents’ safety or property The effects that termination of assistance may have on other members of the family who were not involved in the action or failure to act 435 12-12 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The extent of participation or culpability of individual family members, including whether the culpable family member is a minor or a person with disabilities or (as discussed further in section 12-II.E) a victim of domestic violence, dating violence, sexual assault, or stalking or human trafficking. The length of time since the violation occurred, including the age of the individual at the time of the conduct, as well as 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 HACCC will require the participant 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. While a record or records of arrest(s) will not be used as the sole basis for termination, an arrest may, however, trigger an investigation to determine whether the participant actually engaged in disqualifying criminal activity. As part of its investigation, the PHA may obtain the police report associated with the arrest and consider the reported circumstances of the arrest. The PHA may also consider: - Any statements made by witnesses or the participant not included in the police report; - Whether criminal charges were filed; - Whether, if filed, criminal charges were abandoned, dismissed, not prosecuted, or ultimately resulted in an acquittal; - Any other evidence relevant to determining whether or not the participant engaged in disqualifying activity Evidence of criminal conduct will be considered if it indicates a demonstrable risk to safety and/or property In the case of program abuse, the dollar amount of the overpaid assistance and whether or not a false certification was signed by the family Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)] If the family includes a person with disabilities, the PHA’s decision to terminate the family’s assistance is subject to consideration of reasonable accommodation in accordance with 24 CFR Part 8. HACCC Policy If a family indicates that the behavior of a family member with a disability is the reason for a proposed termination of assistance, HACCC will determine whether the behavior is related to the disability. If so, upon the family’s request, HACCC will determine whether alternative measures are appropriate as a reasonable accommodation. HACCC will only consider 436 12-13 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 accommodations that can reasonably be expected to address the behavior that is the basis of the proposed termination of assistance. See Chapter 2 for a discussion of reasonable accommodation. 12-II.E. TERMINATIONS RELATED TO DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING, OR HUMAN TRAFFICKING This section describes the protections against termination of assistance that the Violence against Women Act of 2005 (VAWA) provides for victims of domestic violence, dating violence, sexual assault, and stalking, or human trafficking. For general VAWA requirements, key VAWA definitions, and PHA policies pertaining to notification, documentation, and confidentiality, see section 16-IX of this plan. VAWA Protections against Termination VAWA provides four specific protections against termination of HCV assistance for victims of domestic violence, dating violence, sexual assault or stalking. (Note: The second, third, and fourth protections also apply to terminations of tenancy or occupancy by owners participating in the HCV program, as do the limitations discussed under the next heading.) x Although the VAWA 2022 statute does not specifically include human trafficking in the list of victims protected under VAWA, in 2022 HUD began including human trafficking as part of the list of victims protected under VAWA (as seen in Notices PIH 2022-06, PIH 2022-22, and PIH 2022-24). In the absence of a final rule implementing VAWA 2022 and to mirror HUD’s recent usage, this policy includes human trafficking in addition to domestic violence, dating violence, sexual assault, stalking, or human trafficking anywhere such a list appears. First, VAWA provides that a PHA may not terminate assistance to a family that moves out of an assisted unit in violation of the lease, with or without prior notification to the PHA, if the move occurred to protect the health or safety of a family member who is or has been the victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking sexual assault or stalking and who reasonably believed they were imminently threatened by harm from further violence if they remained in the unit [see 24 CFR 982.354(b)(4)]. Second, it provides that an incident or incidents of actual or threatened domestic violence, dating violence, sexual assault, stalking, or human trafficking sexual assault or stalking may not be construed either as a serious or repeated lease violation by the victim or as good cause to terminate the assistance of the victim [see 24 CFR 5.2005(c)(1)]. Third, it provides that criminal activity directly related to domestic violence, dating violence, sexual assault or stalking may not be construed as cause for terminating the assistance of a tenant if a member of the tenant’s household, a guest, or another person under the tenant’s control is the one engaging in the criminal activity and the tenant or an immediate family member of the tenant is the actual or threatened victim of the domestic violence, dating violence, sexual assault, stalking, or human traffickingsexual assault or stalking [24 CFR 5.2005(c)(2)]. 437 12-14 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Fourth, it gives PHAs the authority to terminate assistance to any tenant or lawful occupant who engages in criminal acts of physical violence against family members or others without terminating assistance to, or otherwise penalizing, the victim of the violence [24 CFR 5.2009(a)]. PHAs and owners may not coerce, intimidate, threaten, interfere with, or retaliate against any person who exercises or assists or encourages a person to exercise any rights or protections under VAWA [FR Notice 1/4/23]. Limitations on VAWA Protections [24 CFR 5.2005(d) and (e)] VAWA does not limit the authority of a PHA to terminate the assistance of a victim of abuse for reasons unrelated to domestic violence, dating violence, sexual assault, stalking, or human traffickingsexual assault or stalking so long as HACCC does not subject the victim to a more demanding standard than it applies to other program participants [24 CFR 5.2005(d)(1)]. Likewise, VAWA does not limit the authority of a PHA to terminate the assistance of a victim of domestic violence, dating violence, sexual assault, stalking, or human traffickingsexual assault or stalking if HACCC can demonstrate an actual and imminent threat to other tenants or those employed at or providing service to the assisted property if the victim is not terminated from assistance [24 CFR 5.2005(d)(2)]. HUD regulations define actual and imminent threat to mean words, gestures, actions, or other indicators of a physical threat that (a) is real, (b) would occur within an immediate time frame, and (c) could result in death or serious bodily harm [24 CFR 5.2005(d)(2) and (e)]. In determining whether an individual would pose an actual and imminent threat, the factors to be considered include: The duration of the risk The nature and severity of the potential harm The likelihood that the potential harm will occur The length of time before the potential harm would occur [24 CFR 5.2005(e)] Even when a victim poses an actual and imminent threat, however, HUD regulations authorize a PHA to terminate the victim’s assistance “only when there are no other actions that could be taken to reduce or eliminate the threat” [24 CFR 5.2005(d)(3)]. HACCC Policy In determining whether a program participant who is a victim of domestic violence, dating violence, sexual assault, stalking, or human traffickingsexual assault or stalking is an actual and imminent threat to other tenants or those employed at or providing service to a property, HACCC will consider the following, and any other relevant, factors: 438 12-15 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 - Whether the threat is toward an employee or tenant other than the victim of domestic violence, dating violence, sexual assault, stalking, or human traffickingsexual assault or stalking - Whether the threat is a physical danger beyond a speculative threat - Whether the threat is likely to happen within a short period of time - Whether the threat to other tenants or employees can be eliminated in some other way, such as by helping the victim relocate to a confidential location or seeking a legal remedy to prevent the perpetrator from acting on the threat If the participant wishes to contest the PHA’s determination that they are an actual and imminent threat to other tenants or employees, the participant may do so as part of the informal hearing. Documentation of Abuse [24 CFR 5.2007] HACCC Policy When an individual facing termination of assistance for reasons related to domestic violence, dating violence, sexual assault, stalking, or human traffickingsexual assault or stalking claims protection under VAWA, HACCC will request that the individual complete the HUD VAWA Form 91067 and provide documentation supporting the claim in accordance with the policies in section 16-IX.D of this plan. HACCC reserves the right to waive the documentation requirement if it determines that a statement or other corroborating evidence from the individual will suffice. In such cases HACCC will document the waiver in the individual’s file. Terminating the Assistance of a Domestic Violence Perpetrator Although VAWA provides protection against termination of assistance for victims of domestic violence, it does not provide such protection for perpetrators. VAWA gives HACCC the explicit authority to “terminate assistance to any individual who is a tenant or lawful occupant and who engages in criminal acts of physical violence against family members or others” without terminating assistance to “or otherwise penalizing the victim of such violence who is also a tenant or lawful occupant” [24 CFR 5.2009(a)]. This authority is not dependent on a bifurcated lease or other eviction action by an owner against an individual family member. Further, this authority supersedes any local, state, or other federal law to the contrary. However, if HACCC chooses to exercise this authority, it must follow any procedures prescribed by HUD or by applicable local, state, or federal law regarding termination of assistance. This means that HACCC must follow the same rules when terminating assistance to an individual as it would when terminating the assistance of an entire family [FR Notice 3/16/07 Federal Register notice on the applicability of VAWA to HUD programs]. HACCC Policy 439 12-16 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC will terminate assistance to a family member if HACCC determines that the family member has committed criminal acts of physical violence against other family members or others. This action will not affect the assistance of the remaining, nonculpable family members. In making its decision, HACCC will consider all credible evidence, including, but not limited to, a signed certification (form HUD-5382) or other documentation of abuse submitted to HACCC by the victim in accordance with this section and section 16-IX.D. HACCC will also consider the factors in section 12-II.D. Upon such consideration, HACCC may, on a case-by- case basis, choose not to terminate the assistance of the culpable family member. If HACCC does terminate the assistance of the culpable family member, it will do so in accordance with applicable law, HUD regulations, and the policies in this plan. 12-II.F. TERMINATION NOTICE HUD regulations require PHAs to provide written notice of termination of assistance to a family only when the family is entitled to an informal hearing. However, since the family’s HAP contract and lease will also terminate when the family’s assistance terminates [form HUD- 52641], it is a good business practice to provide written notification to both owner and family anytime assistance will be terminated, whether voluntarily or involuntarily. HACCC Policy Whenever a family’s assistance will be terminated, HACCC will send a written notice of proposed termination to the family and to the owner. The PHA will also send a Fform HUD 5380 along with Form HUD-5382 to the family with the termination notice. The notice will state the date on which the termination will become effective. This date generally will be at least 30 calendar days following the date of the termination notice, but exceptions will be made whenever HUD rules, other PHA policies, or the circumstances surrounding the termination require. When HACCC notifies an owner that a family’s assistance will be terminated, HACCC will, if appropriate, advise the owner of their right to offer the family a separate, unassisted lease. If a family whose assistance is being terminated is entitled to an informal hearing, the notice of termination that the PHA sends to the family must meet the additional HUD and PHA notice requirements discussed in section 16-III.C of this plan. VAWA 2013 expands notification requirements to requires PHAs to provide notice of VAWA rights and the HUD 5382 form when a PHA terminates a household’s housing benefits. HACCC Policy Whenever the PHA decides to terminate a family’s assistance because of the family’s action or failure to act, the PHA will include in its termination notice the VAWA information described in section 16-IX.C of this plan and a form HUD-5382. The PHA will request in 440 12-17 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 writing that a family member wishing to claim protection under VAWA notify the PHA within 14 business days. Still other notice requirements apply in two situations: If a criminal record is the basis of a family’s termination, HACCC must provide a copy of the record to the subject of the record and the tenant so that they have an opportunity to dispute the accuracy and relevance of the record [24 CFR 982.553(d)(2)]. If immigration status is the basis of a family’s termination, as discussed in section 12-I.D, the special notice requirements in section 16-III.D must be followed. 441 12-18 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART III: TERMINATION OF TENANCY BY THE OWNER 12-III.A. OVERVIEW Termination of an assisted tenancy is a matter between the owner and the family; HACCC is not directly involved. However, the owner is under some constraints when terminating an assisted tenancy. Termination of tenancy for certain reasons will also result in termination of assistance as discussed in this section. 12-III.B. GROUNDS FOR OWNER TERMINATION OF TENANCY [24 CFR 982.310, 24 CFR 5.2005(c), and Form HUD-52641-A, Tenancy Addendum] During the term of the lease, the owner is not permitted to terminate the tenancy except for serious or repeated violations of the lease, certain violations of state or local law, or other good cause. Serious or Repeated Lease Violations The owner is permitted to terminate the family’s tenancy for serious or repeated violations of the terms and conditions of the lease, except when the violations are related to incidents of actual or threatened domestic violence, dating violence, sexual assault, stalking, or human traffickingsexual assault or stalking and the victim is protected from eviction by the Violence against Women Act of 2005 (see section 12-II.E). A serious lease violation includes failure to pay rent or other amounts due under the lease. However, the PHA’s failure to make a HAP payment to the owner is not a violation of the lease between the family and the owner. Violation of Federal, State, or Local Law The owner is permitted to terminate the tenancy if a family member violates federal, state, or local law that imposes obligations in connection with the occupancy or use of the premises. Criminal Activity or Alcohol Abuse The owner may terminate tenancy during the term of the lease if any covered person—meaning any member of the household, a guest, or another person under the tenant’s control—commits any of the following types of criminal activity (for applicable definitions see 24 CFR 5.100): Any criminal activity that threatens the health or safety of, or the right to peaceful enjoyment of the premises by, other residents (including property management staff residing on the premises) Any criminal activity that threatens the health or safety of, or the right to peaceful enjoyment of their residences by, persons residing in the immediate vicinity of the premises Any violent criminal activity on or near the premises Any drug-related criminal activity on or near the premises 442 12-19 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 However, in the case of criminal activity directly related to domestic violence, dating violence, sexual assault, stalking, or human traffickingsexual assault or stalking, if the tenant or an immediate member of the tenant’s family is the victim, the criminal activity may not be construed as cause for terminating the victim’s tenancy (see section 12-II.E). The owner may terminate tenancy during the term of the lease if any member of the household is: Fleeing to avoid prosecution, custody, or confinement after conviction for a crime or an attempt to commit a crime that is a felony under the laws of the place from which the individual flees, or that, in the case of the State of New Jersey, is a high misdemeanor; or Violating a condition of probation or parole imposed under federal or state law. The owner may terminate tenancy during the term of the lease if any member of the household has engaged in abuse of alcohol that threatens the health, safety, or right to peaceful enjoyment of the premises by other residents. Evidence of Criminal Activity The owner may terminate tenancy and evict by judicial action a family for criminal activity by a covered person if the owner determines the covered person has engaged in the criminal activity. This is the case except in certain incidents where the criminal activity directly relates to domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking, and the tenant or an affiliated individual is the victim or threatened victim of the domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. Other Good Cause During the initial lease term, the owner may not terminate the tenancy for “other good cause” unless the owner is terminating the tenancy because of something the family did or failed to do. During the initial lease term or during any extension term, other good cause includes the disturbance of neighbors, destruction of property, or living or housekeeping habits that cause damage to the unit or premises. After the initial lease term, “other good cause” for termination of tenancy by the owner includes: • Failure by the family to accept the offer of a new lease or revision • The owner’s desire to use the unit for personal or family use, or for a purpose other than as a residential rental unit • A business or economic reason for termination of the tenancy (such as sale of the property, renovation of the unit, or desire to lease the unit at a higher rent) 443 12-20 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 After the initial lease term, the owner may give the family notice at any time, in accordance with the terms of the lease. If a property is subject to foreclosure, during the term of the lease, the new owner of the property does not have good cause to terminate the tenant’s lease, unless the new owner will occupy the unit as their primary residence and has provided the tenant with at least a 90-day notice. In that case, the lease may be terminated effective on the date of sale, although the tenant is still entitled to a 90-day notice to vacate. See Section 13-II.G for a discussion of PHA policies relating to units in foreclosure. 12-III.C. EVICTION [24 CFR 982.310(e) and (f) and Form HUD-52641-A, Tenancy Addendum] The owner must give the tenant a written notice that specifies the grounds for termination of tenancy during the term of the lease. The tenancy does not terminate before the owner has given this notice, and the notice must be given at or before commencement of the eviction action. The notice of grounds may be included in, or may be combined with, any owner eviction notice to the tenant. Owner eviction notice means a notice to vacate, or a complaint or other initial pleading used under state or local law to commence an eviction action. The owner may only evict the tenant from the unit by instituting a court action. The owner must give HACCC a copy of any eviction notice at the same time the owner notifies the family. The family is also required to give HACCC a copy of any eviction notice (see Chapter 5). HACCC Policy If the eviction action is finalized in court, the owner must provide HACCC with documentation related to the eviction, including notice of the eviction date, as soon as possible, but no later than 14 calendar days following the court-ordered eviction. 12-III.D. DECIDING WHETHER TO TERMINATE TENANCY [24 CFR 982.310(h), 24 CFR 982.310(h)(4)] An owner who has grounds to terminate a tenancy is not required to do so and may consider all of the circumstances relevant to a particular case before making a decision. These might include: The nature of the offending action The seriousness of the offending action; The effect on the community of the termination, or of the owner’s failure to terminate the tenancy; The extent of participation by the leaseholder in the offending action; 444 12-21 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The effect of termination of tenancy on household members not involved in the offending activity; The demand for assisted housing by families who will adhere to lease responsibilities; The extent to which the leaseholder has shown personal responsibility and taken all reasonable steps to prevent or mitigate the offending action; The effect of the owner's action on the integrity of the program. The owner may require a family to exclude a household member in order to continue to reside in the assisted unit, where that household member has participated in or been culpable for action or failure to act that warrants termination. In determining whether to terminate tenancy for illegal use of drugs or alcohol abuse by a household member who is no longer engaged in such behavior, the owner may consider whether such household member is participating in or has successfully completed a supervised drug or alcohol rehabilitation program or has otherwise been rehabilitated successfully (42 U.S.C. 13661). For this purpose, the owner may require the tenant 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. The owner's termination of tenancy actions must be consistent with the fair housing and equal opportunity provisions in 24 CFR 5.105. An owner’s decision to terminate tenancy for incidents related to domestic violence, dating violence, sexual assault, stalking, or human traffickingsexual assault or stalking is limited by the Violence against Women Act of 2005 (VAWA) and the conforming regulations in 24 CFR Part 5, Subpart L. (See section 12-II.E.) 12-III.E. EFFECT OF TENANCY TERMINATION ON THE FAMILY’S ASSISTANCE If a termination is not due to a serious or repeated violation of the lease, and if HACCC has no other grounds for termination of assistance, HACCC may issue a new voucher so that the family can move with continued assistance (see Chapter 10). 445 12-22 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EXHIBIT 12-1: STATEMENT OF FAMILY OBLIGATIONS Following is a listing of a participant family’s obligations under the HCV program: • The family must supply any information that HACCC 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 HACCC or HUD for use in a regularly scheduled reexamination or interim reexamination of family income and composition in accordance with HUD requirements. HACCC Policy All adult members of the family must attend recertification appointments, provide documents and sign documents as required to complete annual and interim recertifications. • The family must disclose to the Housing Authority any information they receive from HUD. • 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 deficiencies under the National Standards for the Physical Inspection of Real Estate (NSPIRE) 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 ordinary normal wear and tear caused by any member of the household or guest. HACCC Policy Damages beyond ordinarynormal wear and tear will be considered to be damages which could be assessed against the security deposit under state law or in court practice. • The family must allow HACCC to inspect the unit at reasonable times and after reasonable notice, as described in Chapter 8 of this plan. • The family must not commit any serious or repeated violation of the lease. HACCC Policy HACCC 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. 446 12-23 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Serious and repeated lease violations will include, but not be limited to, nonpayment of rent, disturbance of neighbors, destruction of property, living or housekeeping habits that cause damage to the unit or premises, and criminal activity. Generally, the criterion to be used will be whether or not the reason for the eviction was the fault of the tenant or guests. Any incidents of, or criminal activity related to, domestic violence, dating violence, sexual assault, stalking, or human traffickingsexual assault or stalking will not be construed as serious or repeated lease violations by the victim [see 24 CFR 5.2005(c)(1)]. • The family must notify HACCC and the owner before moving out of the unit or terminating the lease. HACCC Policy The family must comply with lease requirements regarding written notice to the owner. The family must provide written notice to HACCC at the same time the owner is notified. • The family must promptly give HACCC 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 HACCC 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. HACCC Policy The request to add a family member must be submitted in writing and approved prior to the person moving into the unit. HACCC will determine eligibility of the new member in accordance with the policies in Chapter 3. • The family must promptly notify HACCC in writing if any family member no longer lives in the unit. • If HACCC has given approval, a foster child or a live-in aide may reside in the unit. HACCC 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. HACCC 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. 447 12-24 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • The family must supply any information requested by HACCC to verify that the family is living in the unit or information related to family absence from the unit. • The family must promptly notify HACCC when the family is absent from the unit. HACCC 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 HACCC 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 HACCC 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] 448 13-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 CHAPTER 13 OWNERS INTRODUCTION Owners play a major role in the HCV program by supplying decent, safe, and sanitary housing for participating families. The term “owner” refers to any person or entity with the legal right to lease or sublease a unit to a participant in the HCV program [24 CFR 982.4(b)]. The term “owner” includes a principal or other interested party [24 CFR 982.453; 24 CFR 982.306(f)], such as a designated agent of the owner. Owners have numerous responsibilities under the program, including screening and leasing to families, maintaining the dwelling unit, enforcing the lease, and complying with various contractual obligations. The chapter is organized in two parts: Part I: Owners in the HCV Program. This part discusses the role of an owner in HACCC’s HCV program and highlights key owner rights and responsibilities. Part II: HAP Contracts. This part explains provisions of the HAP contract and the relationship between HACCC and the owner as expressed in the HAP contract. For detailed information about HCV program responsibilities and processes, including PHA policies in key areas, owners will need to refer to several other chapters in this plan. Where appropriate, Chapter 13 will reference the other chapters. 449 13-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART I. OWNERS IN THE HCV PROGRAM 13-I.A. OWNER RECRUITMENT AND RETENTION [HCV GB, pp. 2-4 to 2-6; HCV Landlord Strategy Guidebook for PHAs] Recruitment PHAs are responsible for ensuring that very low-income families have access to all types and ranges of affordable housing in HACCC’s jurisdiction, particularly housing outside areas of poverty or minority concentration. A critical element in fulfilling this responsibility is for HACCC to ensure that a sufficient number of owners, representing all types and ranges of affordable housing in HACCC’s jurisdiction, are willing to participate in the HCV program. To accomplish this objective, PHAs must identify and recruit new owners to participate in the program. If the PHA will be conducting outreach events, the PHA must ensure that notices and communications during outreach events are provided in a manner that is effective for persons with hearing, visual, and other communications-related disabilities. PHAs must also take reasonable steps to ensure meaningful access to programs to persons with limited English proficiency. HACCC Policy HACCC will conduct owner outreach to ensure that owners are familiar with the program and its advantages. HACCC will actively recruit property owners with property located outside areas of poverty and minority concentration. These outreach strategies will include: • Distributing printed material about the program to property owners and managers • Contacting property owners and managers by phone or in-person • Holding owner recruitment/information meetings at least once a year • Participating in community-based organizations comprised of private property and apartment owners and managers • Developing working relationships with owners, apartment associations, industry investor groups and real estate brokers associations • To the extent practical, partnering with and attending events hosted by other area agencies to deliver information about the HCV program Outreach strategies will be monitored for effectiveness and adapted accordingly. Retention In addition to recruiting owners to participate in the HCV program, HACCC must also provide the kind of customer service that will encourage participating owners to remain active in the program. 450 13-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy All PHA activities that may affect an owner’s ability to lease a unit will be processed as rapidly as possible, in order to minimize vacancy losses for owners. HACCC will provide owners with a handbook that explains the program, including HUD and PHA policies and procedures, in easy-to-understand language. HACCC will give special attention to helping new owners succeed through activities such as: - Coordinating inspection and leasing activities between HACCC, the owner, and the family. - Initiating telephone contact with the owner to explain the inspection process and providing an inspection booklet and other resource materials about HUD housing quality standards. - Providing other written information about how the program operates through a landlord handbook, including answers to frequently asked questions. - Contacting owners via emails or texts to disseminate information. Additional services may be undertaken on an as-needed basis, and as resources permit. 13-I.B. BASIC HCV PROGRAM REQUIREMENTS HUD requires HACCC to assist families in their housing search by providing the family with a list of landlords or other parties known to HACCC who may be willing to lease a unit to the family, or to help the family find a unit. Although HACCC cannot maintain a list of owners that are pre- qualified to participate in the program, owners may indicate to HACCC their willingness to lease a unit to an eligible HCV family, or to help the HCV family find a unit [24 CFR 982.301(b)(11)]. HACCC Policy HACCC provides a rental listing service (GoSection8Affordablehousing.com) via the HACCC website (www.contracostahousing.org) for owners who wish to rent their units to HCV clients. HCV families may also access the rental listing via the Internet at www.contracostahousing.org. When a family approaches an owner to apply for tenancy, the owner is responsible for screening the family and deciding whether to lease to the family, just as the owner would with any potential unassisted tenant. HACCC has no liability or responsibility to the owner or other persons for the family’s behavior or suitability for tenancy. See chapters 3 and 9 for more detail on tenant family screening policies and process. 451 13-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If the owner is willing, the family and the owner must jointly complete a Request for Tenancy Approval (RTA, Form HUD 52517), which constitutes the family's request for assistance in the specified unit, and which documents the owner’s willingness to lease to the family and to follow the program’s requirements. When submitted to HACCC, this document is the first step in the process of obtaining approval for the family to receive the financial assistance it will need in order to occupy the unit. Also submitted with the RTA is a copy of the owner’s proposed dwelling lease, including the HUD-required Tenancy Addendum (Form HUD-52641-A). See Chapter 9 for more detail on request for tenancy approval policies and process. HUD regulations stipulate requirements for the approval of an assisted tenancy. The owner must be qualified to participate in the program [24 CFR 982.306]. Some owners are precluded from participating in the program, or from renting to a particular family, either because of their past history with this or another federal housing program, or because of certain conflicts of interest. Owner qualifications are discussed later in this chapter. The selected unit must be of a type that is eligible for the program [24 CFR 982.305(a)]. Certain types of dwelling units cannot be assisted under the HCV program. Other types may be assisted under certain conditions. See chapter 9 for more detail on unit eligibility policies and process. The selected unit must meet HUD’s National Standards for the Physical Inspection of Real Estate (NSPIRE)Housing Quality Standards (HQS) and/or equivalent state or local standards approved by HUD [24 CFR 982.305(a)]. HACCC will inspect the owner’s dwelling unit at least bienniallyannually to ensure that the unit continues to meet inspectionHQS requirements. See Cchapter 8 for a discussion of the NSPIREHQS standards and policies for HQS inspections at initial lease- up and throughout the family’s tenancy. HACCC must determine that the proposed rent for the unit is reasonable [24 CFR 982.305(a)]. The rent must be reasonable in relation to comparable unassisted units in the area and must not be in excess of rents charged by the owner for comparable, unassisted units on the premises. See chapter 8 for a discussion of requirements and policies on rent reasonableness, rent comparability and the rent reasonableness determination process. At initial lease-up of a unit, if the gross rent exceeds the applicable payment standard, HACCC must ensure that the family share does not exceed 40 percent of the family’s monthly adjusted income [24 CFR 982.305(a)]. See chapter 6 for a discussion of the calculation of family income, family share of rent and HAP. The dwelling lease must comply with all program requirements [24 CFR 982.308]. Owners are encouraged to use their standard leases when renting to an assisted family. The HUD Tenancy Addendum includes the HUD requirements governing the tenancy and must be added word-for- word to the owner’s lease. See chapter 9 for a discussion of the dwelling lease and tenancy addendum, including lease terms and provisions. HACCC and the owner must execute a Housing Assistance Payment (HAP) Contract (Form HUD- 52641). The HAP contract format is prescribed by HUD. See chapter 9 for a discussion of the HUD requirements for execution of the HAP contract. 452 13-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 13-I.C. OWNER RESPONSIBILITIES [24 CFR 982.452] The basic owner responsibilities in the HCV program are outlined in the regulations as follows: • Complying with all of the owner’s obligations under the housing assistance payments (HAP) contract and the lease • Performing all management and rental functions for the assisted unit, including selecting a voucher-holder to lease the unit, and deciding if the family is suitable for tenancy of the unit • Maintaining the unit in accordance with the National Standards for the Physical Inspection of Real Estate (NSPIRE)Housing Quality Standards (HQS), including performance of ordinary and extraordinary maintenance • Complying with equal opportunity requirements • Preparing and furnishing to HACCC information required under the HAP contract • Collecting HACCC the security deposit, the tenant rent, and any charges for unit damage by the family. • Enforcing tenant obligations under the dwelling lease • Paying for utilities and services that are not the responsibility of the family as specified in the lease • Allowing reasonable modifications to a dwelling unit occupied or to be occupied by a disabled person [24 CFR 100.203] • Complying with the Violence against Women Reauthorization Act of 2005 (VAWA) when screening prospective HCV tenants or terminating the tenancy of an HCV family [(see 24 CFR Part 5, Subpart L; 24 CFR 982.310(h)(4); and 24 CFR 982.452(b)(1) and FR Notice 1/4/23]) 13-I.D. OWNER QUALIFICATIONS HACCC does not formally approve an owner to participate in the HCV program. However, there are a number of criteria where HACCC may deny approval of an assisted tenancy based on past owner behavior, conflict of interest, or other owner-related issues. No owner has a right to participate in the HCV program [24 CFR 982.306(e)]. Owners Barred from Participation [24 CFR 982.306(a) and (b)] HACCC must not approve the assisted tenancy if HACCC has been informed that the owner has been debarred, suspended, or subject to a limited denial of participation under 24 CFR part 24. HUD may direct HACCC not to approve a tenancy request if a court or administrative agency has 453 13-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 determined that the owner violated the Fair Housing Act or other federal equal opportunity requirements, or if such an action is pending. Leasing to Relatives [24 CFR 982.306(d), HCV GB p. 11-2] HACCC must not approve a tenancy if the owner is the parent, child, grandparent, grandchild, sister, or brother of any member of the family. This definition also applies to Step-relatives in these categories. HACCC may make an exception as a reasonable accommodation for a family member with a disability. The owner is required to certify that no such relationship exists. This restriction applies at the time that the family receives assistance under the HCV program for occupancy of a particular unit. Current contracts on behalf of owners and families that are related may continue, but any new leases or contracts for these families may not be approved. Conflict of Interest [24 CFR 982.161; HCV GB p. 8-19; Form HUD-52641, Section 13] HACCC must not approve a tenancy in which any of the following classes of persons has any interest, direct or indirect, during tenure or for one year thereafter: • Any present or former member or officer of HACCC (except a participant commissioner) • Any employee of HACCC, or any contractor, subcontractor or agent of HACCC, who formulates policy or who influences decisions with respect to the programs • Any public official, member of a governing body, or State or local legislator, who exercises functions or responsibilities with respect to the programs • Any member of the Congress of the United States Such “covered individual” may not have any direct or indirect interest in the HAP contract or in any benefits or payments under the contract (including the interest of an immediate family member of such covered individual) while such person is a covered individual or for one year thereafter. Immediate family member means the spouse, parent (including a stepparent), child (including a stepchild), grandparent, grandchild, sister, or brother (including a stepsister or stepbrother) of any covered individual. HUD may waive the conflict-of-interest requirements, except for members of Congress, for good cause. HACCC must submit a waiver request to the appropriate HUD Field Office for determination. Any waiver request submitted by HACCC must include the following [HCV Guidebook pp.11-2 and 11-3]: • Complete statement of the facts of the case; • Analysis of the specific conflict of interest provision of the HAP contract and justification as to why the provision should be waived; 454 13-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Analysis of and statement of consistency with state and local laws. The local HUD office, HACCC, or both parties may conduct this analysis. Where appropriate, an opinion by the state’s attorney general should be obtained; • Opinion by the local HUD office as to whether there would be an appearance of impropriety if the waiver were granted; • Statement regarding alternative existing housing available for lease under the HCV program or other assisted housing if the waiver is denied; • If the case involves a hardship for a particular family, statement of the circumstances and discussion of possible alternatives; • If the case involves a public official or member of the governing body, explanation of their duties under state or local law, including reference to any responsibilities involving the HCV program; • If the case involves employment of a family member by HACCC or assistance under the HCV program for an eligible PHA employee, explanation of the responsibilities and duties of the position, including any related to the HCV program; • If the case involves an investment on the part of a member, officer, or employee of HACCC, description of the nature of the investment, including disclosure/divestiture plans. Where HACCC has requested a conflict-of-interest waiver, HACCC may not execute the HAP contract until HUD has made a decision on the waiver request. HACCC Policy In considering whether to request a conflict of interest waiver from HUD, HACCC will consider certain factors such as consistency of the waiver with state and local laws, the existence of alternative housing available to families, the individual circumstances of a particular family, the specific duties of individuals whose positions present a possible conflict of interest, the nature of any financial investment in the property and plans for disclosure/divestiture, and the possible appearance of impropriety. Owner Actions That May Result in Disapproval of a Tenancy Request [24 CFR 982.306(c)] HUD regulations permit HACCC to disapprove a request for tenancy for various actions and inactions of the owner. If HACCC disapproves a request for tenancy because an owner is not qualified, it may not terminate the HAP contract for any assisted families that are already living in the owner’s properties unless the owner has violated the HAP contract for those units [HCV GB p. 11-4]. HACCC Policy 455 13-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC will refuse to approve a request for tenancy if HACCC becomes aware that any of the following are true: • The owner has violated obligations under a HAP contract under Section 8 of the 1937 Act (42 U.S.C. 1437f); • The owner has committed fraud, bribery or any other corrupt or criminal act in connection with any federal housing program; • The owner has engaged in any drug-related criminal activity or any violent criminal activity; • The owner has a history or practice of non-compliance with inspection standardsthe HQS for units leased under the tenant-based programs, or with applicable housing standards for units leased with project-based Section 8 assistance or leased under any other federal housing program; • The owner has a history or practice of failing to terminate tenancy of tenants of units assisted under Section 8 or any other federally assisted housing program for activity engaged in by the tenant, any member of the household, a guest or another person under the control of any member of the household that: • (i) Threatens the right to peaceful enjoyment of the premises by other residents; • (ii) Threatens the health or safety of other residents, of employees of HACCC, or of owner employees or other persons engaged in management of the housing; • (iii) Threatens the health or safety of, or the right to peaceful enjoyment of their residences, by persons residing in the immediate vicinity of the premises; or • (iv) Is drug-related criminal activity or violent criminal activity; • The owner has a history or practice of renting units that fail to meet state or local housing codes; or • The owner has not paid state or local real estate taxes, fines, or assessment. In considering whether to disapprove owners for any of the discretionary reasons listed above, HACCC will consider any mitigating factors. Such factors may include, but are not limited to, the seriousness of the violation in relation to program requirements, the impact on the ability of families to lease units under the program, health and safety of participating families, among others. Upon consideration of such circumstances, HACCC may, on a case-by-case basis, choose to approve an owner. Legal Ownership of Unit 456 13-9 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The following represents HACCC Policy on legal ownership of a dwelling unit to be assisted under the HCV program. HACCC Policy HACCC will only enter into a contractual relationship with the legal owner of a qualified unit. The description of the subject unit provided in the RTA and unit advertisements must accurately match the Assessor’s record for the unit. No tenancy will be approved without acceptable documentation of legal ownership (e.g., deed of trust, proof of taxes for most recent year) and property description. 13-I.E. NON-DISCRIMINATION [HAP Contract – Form HUD-52641] The owner must not discriminate against any person because of race, color, religion, sex, national origin, age, familial status, or disability, in connection with any actions or responsibilities under the HCV program and the HAP contract with HACCC. The owner must cooperate with HACCC and with HUD in conducting any equal opportunity compliance reviews and complaint investigations in connection with the HCV program and the HAP contract with HACCC. See Chapter 2 for a more thorough discussion of Fair Housing and Equal Opportunity requirements in the HCV program. 457 13-10 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART II. HAP CONTRACTS 13-II.A. OVERVIEW The HAP contract represents a written agreement between HACCC and the owner of the dwelling unit occupied by an HCV assisted family. The contract spells out the owner’s responsibilities under the program, as well as HACCC’s obligations. Under the HAP contract, HACCC agrees to make housing assistance payments to the owner on behalf of the family approved by HACCC to occupy the unit. The HAP contract is used for all tenant-based program tenancies except for assistance under the Section 8 homeownership program, and assistance to families that own a manufactured home and use their assistance to lease the space for the manufactured home. See chapter 15 for a discussion of any special housing types included in HACCC’s HCV program. When HACCC has determined that the unit meets program requirements and the tenancy is approvable, HACCC and owner must execute the HAP contract. See chapter 9 for a discussion of the leasing process, including provisions for execution of the HAP contract. 13-II.B. HAP CONTRACT CONTENTS The HAP contract format is required by HUD, specifically Housing Assistance Payment (HAP) Contract, Form HUD-52641. The HAP contract contains three parts. Part A of the contract includes basic contract information: the names of the tenant and all household members, the address of the contract unit, start and end dates of initial lease term, the amount of initial monthly rent to owner, the amount of initial housing assistance payment, the utilities and appliances to be supplied by owner and tenant, and the signatures of HACCC representative and owner [HCV Guidebook, pp. 11-10 and 11-11]. In general, the HAP contract cannot be modified. However, PHAs do have the discretion to add language to Part A of the HAP contract which prohibits the owner from collecting a security deposit in excess of private market practices or in excess of amounts charged to unassisted tenants. HACCC Policy on the amount of security deposit an owner may collect is found in Chapter 9. PHAs also have the discretion to add language to Part A of the HAP contract that defines when the housing assistance payment by HACCC is deemed received by the owner (e.g., upon mailing by HACCC or actual receipt by the owner). Part B is the body of the contract. It describes in detail program requirements affecting the owner and owner roles and responsibilities under the HCV program. Most of the requirements contained in Part B of the HAP contract are outlined elsewhere in this plan. Topics addressed in Part B include: • Lease of Contract Unit 458 13-11 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Maintenance, Utilities, and Other Services • Term of HAP Contract • Provision and Payment of Utilities and Appliances • Rent to Owner: Reasonable Rent • PHA Payment to Owner • Prohibition of Discrimination • Owner’s Breach of HAP Contract • PHA and HUD Access to Premises and Owner’s Records • Exclusion of Third-Party Rights • Conflict of Interest • Assignment of the HAP Contract • Written Notices • Entire Agreement Interpretation Part C of the contract includes the Tenancy Addendum (Form HUD-52641-A). The addendum sets forth the tenancy requirements for the program and the composition of the household, as approved by HACCC. The tenant has the right to enforce the Tenancy Addendum against the owner. The terms of the Tenancy Addendum prevail over any other provisions of the lease. 13-II.C. HAP CONTRACT PAYMENTS General During the term of the HAP contract, and subject to the provisions of the HAP contract, HACCC must make monthly HAP payments to the owner on behalf of the family at the beginning of each month. If a lease term begins after the first of the month, the HAP payment for the first month is prorated for a partial month. The amount of the HAP payment is determined according to the policies described in Chapter 6 and is subject to change during the term of the HAP contract. HACCC must notify the owner and the family in writing of any changes in the HAP payment. HAP payments can be made only during the lease term, and only while the family is residing in the unit. The monthly HAP payment by HACCC is credited toward the monthly rent to owner under the family’s lease. The total of the rent paid by the tenant and the HAP payment is equal to the rent to owner as specified in the lease. The family is not responsible for payment of the HAP payment, and HACCC is not responsible for payment of the family share of rent. 459 13-12 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The family’s share of the rent cannot be more than the difference between the rent to owner and the HAP payment. The owner may not demand or accept any rent payment from the tenant in excess of this maximum [24 CFR 982.451(b)(4)]. The owner may not charge the tenant extra amounts for items customarily included in rent in the locality or provided at no additional cost to unsubsidized tenants in the premises [24 CFR 982.510(c)]. See chapter 9 for a discussion of separate, non-lease agreements for services, appliances and other items that are not included in the lease. If the owner receives any excess HAP from HACCC, the excess amount must be returned immediately. If HACCC determines that the owner is not entitled to all or a portion of the HAP, HACCC may deduct the amount of overpayment from any amounts due to the owner, including amounts due under any other Section 8 HCV contract. See Chapter 16 for additional detail on owner reimbursement of HAP overpayments. Owner Certification of Compliance Unless the owner complies with all provisions of the HAP contract, the owner is not entitled to receive housing assistance payments under the HAP contract [HAP Contract – Form HUD 52641]. By accepting the monthly check from HACCC, the owner certifies to compliance with the terms of the HAP contract. This includes certification that the owner is maintaining the unit and premises in accordance with HQSNSPIRE standards; that the contract unit is leased to the tenant family and, to the best of the owner’s knowledge, the family resides in the unit as the family’s only residence; the rent to owner does not exceed rents charged by the owner for comparable unassisted units on the premises; and that the owner does not receive (other than rent to owner) any additional payments or other consideration for rent of the contract unit during the HAP term. Late HAP Payments [24 CFR 982.451(a)(5)] HACCC is responsible for making HAP payments promptly when due to the owner, in accordance with the terms of the HAP contract. After the first two calendar months of the HAP contract term, the HAP contract provides for late penalties if HACCC fails to make the HAP payment on time. Penalties for late HAP payments can only be imposed if 1) the penalties are in accordance with generally accepted local rental market practices and law governing penalties for late payment by tenants; 2) it is the owner’s normal business practice to charge late payment penalties for both assisted and unassisted families; and 3) the owner charges the assisted family for late payment of the family’s share of the rent. HACCC is not required to pay a late payment penalty if HUD determines that the payment is late for reasons beyond HACCC’s control. In addition, late payment penalties are not required if HACCC intentionally delays or denies payment as a remedy to an owner breach of the HAP contract [HCV Guidebook p. 11-7]. Termination of HAP Payments [24 CFR 982.311(b)] HACCC must continue making housing assistance payments to the owner in accordance with the HAP contract as long as the tenant continues to occupy the unit and the HAP contract is not violated. 460 13-13 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HAP payments terminate when the HAP contract terminates or when the tenancy is terminated in accordance with the terms of the lease. If the owner has initiated eviction proceedings against the family and the family continues to reside in the unit, HACCC must continue to make housing assistance payments to the owner until the owner has obtained a court judgment or other process allowing the owner to evict the tenant. HACCC Policy The owner must inform HACCC when the owner has initiated eviction proceedings against the family and the family continues to reside in the unit. The owner must inform HACCC when the owner has obtained a court judgment or other process allowing the owner to evict the tenant and provide HACCC with a copy of such judgment or determination within 7 calendar days of the decision. After the owner has obtained a court judgment or other process allowing the owner to evict the tenant, HACCC will continue to make HAP payments to the owner until the family actually moves from the unit or until the family is physically evicted from the unit, whichever is earlier. The owner must inform HACCC of the date when the family actually moves from the unit, or the family is physically evicted from the unit. 13-II.D. BREACH OF HAP CONTRACT [24 CFR 982.453] Any of the following actions by the owner constitutes a breach of the HAP contract: • If the owner violates any obligations under the HAP contract including failure to maintain the unit in accordance with NSPIRE standardsHQS • If the owner has violated any obligation under any other HAP contract under Section 8 • If the owner has committed fraud, bribery or any other corrupt or criminal act in connection with any federal housing program • For projects with mortgages insured by HUD or loans made by HUD, if the owner has failed to comply with the regulation for the applicable program; or if the owner has committed fraud, bribery or any other corrupt or criminal act in connection with the mortgage or loan • If the owner has engaged in drug-related criminal activity • If the owner has committed any violent criminal activity If HACCC determines that a breach of the HAP contract has occurred, it may exercise any of its rights and remedies under the HAP contract. 461 13-14 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC rights and remedies against the owner under the HAP contract include recovery of any HAP overpayment, suspension of housing assistance payments, abatement or reduction of the housing assistance payment, termination of the payment or termination of the HAP contract. HACCC may also obtain additional relief by judicial order or action. HACCC must notify the owner of its determination and provide in writing the reasons for the determination. The notice may require the owner to take corrective action by an established deadline. HACCC must provide the owner with written notice of any reduction in housing assistance payments or the termination of the HAP contract. HACCC Policy Before HACCC invokes a remedy against an owner, HACCC will evaluate all information and documents available to determine if the contract has been breached. If relevant, HACCC will conduct an audit of the owner’s records pertaining to the tenancy or unit. If it is determined that the owner has breached the contract, HACCC will consider all of the relevant factors including the seriousness of the breach, the effect on the family, the owner’s record of compliance and the number and seriousness of any prior HAP contract violations. 13-II.E. HAP CONTRACT TERM AND TERMINATIONS The term of the HAP contract runs concurrently with the term of the dwelling lease [24 CFR 982.451(a)(2)], beginning on the first day of the initial term of the lease and terminating on the last day of the term of the lease, including any lease term extensions. The HAP contract and the housing assistance payments made under the HAP contract terminate if [HCV Guidebook pp.11-4 and 11-5, pg. 15-3]: • The owner or the family terminates the lease; • The lease expires; • HACCC terminates the HAP contract; • HACCC terminates assistance for the family; • The family moves from the assisted unit. In this situation, the owner is entitled to keep the housing assistance payment for the month when the family moves out of the unit. • 180 calendar days have elapsed since HACCC made the last housing assistance payment to the owner; • The family is absent from the unit for longer than the maximum period permitted by HACCC; • The Annual Contributions Contract (ACC) between HACCC and HUD expires • HACCC elects to terminate the HAP contract. 462 13-15 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy HACCC may elect to terminate the HAP contract in each of the following situations: • Available program funding is not sufficient to support continued assistance for families in the program [24 CFR 982.454]; • The unit does not meet HQS size requirements due to change in family composition [24 CFR 982.403] – see cChapter 8; • The unit does not meet NSPIRE standardsHQS [24 CFR 982.404] – see cChapter 8; • The family breaks up [HUD Form 52641] – see Cchapter 3; • The owner breaches the HAP contract [24 CFR 982.453(b)] – see Section 13-II.D. If HACCC terminates the HAP contract, HACCC must give the owner and the family written notice. The notice must specify the reasons for the termination and the effective date of the termination. Once a HAP contract is terminated, no further HAP payments may be made under that contract [HCV Guidebook pg.15-4]. HACCC Policy Generally, the HAP contract terminates at the end of the calendar month that follows the calendar month in which HACCC gives written notice to the owner. HACCC cannot make any HAP payment for any month after the month the family vacates the unit. The owner is not entitled to any housing assistance payment after this period and must return to HACCC any housing assistance payment received after this period. In all cases, the HAP contract terminates at the end of the calendar month that follows the calendar month in which HACCC gives written notice to the owner, provided that at least 30 calendar days have passed since the written notice. If a 30-day notice was not provided (e.g., notice was given on January 30th), then the contract will terminate at the end of the second calendar month following the calendar month in which HACCC gave written notice to the owner. The owner is not entitled to any housing assistance payment after this period and must return to HACCC any housing assistance payment received after this period. If the family moves from the assisted unit into a new unit, even if the new unit is in the same building or complex as the assisted unit, the HAP contract for the assisted unit terminates. A new HAP contract would be required [HCV GB, p. 11-17]. However, if the tenant fails to give the prior owner proper notice because they remain in the assisted unit past the expiration of the 30-day notice or fails to execute a Mutual Rescission of the Lease, the new HAP Contract shall not be approved until a Key Return Form is submitted and the prior assisted tenancy properly terminated. When the family moves from an assisted unit into a new unit, the term of the HAP contract for the new unit may begin in the same month in which the family moves out of its old unit. This is not considered a duplicative subsidy [HCV GB, p. 8-22]. 463 13-16 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The owner may keep the housing assistance payment for the month when the family moves out of the unit. [24 CFR 982.311 (d)]. 13-II.F. CHANGE IN OWNERSHIP / ASSIGNMENT OF THE HAP CONTRACT [HUD- 52641] The HAP contract cannot be assigned to a new owner without the prior written consent of HACCC. An owner under a HAP contract must notify HACCC in writing prior to a change in the legal ownership of the unit. The owner must supply all information as requested by HACCC. Prior to approval of assignment to a new owner, the new owner must agree to be bound by and comply with the HAP contract. The agreement between the new owner and the former owner must be in writing and in a form that HACCC finds acceptable. The new owner must provide HACCC with a copy of the executed agreement. HACCC Policy HACCC will comply with the terms of the HAP Contract regarding the assignment of the Contract to a new owner (HAP Contract Part B, Section 14). Assignment of the HAP contract will be approved only if the new owner is qualified to become an owner under the HCV program according to the policies in Section 13-I.D. of this chapter. Prior to the change HACCC must receive a signed, written request from the existing owner stating the name and address of the new HAP payee and the effective date of the assignment in order to change the HAP payee under an outstanding HAP contract. Within 14 calendar days of receiving the owner’s request, HACCC will inform the current owner in writing whether the assignment may take place. The new owner must provide a written certification to HACCC that includes: 1. A copy of the escrow statement or other document showing the transfer of title and recorded deed; 2. A copy of the owner’s IRS Form W-9, Request for Taxpayer Identification Number and Certification, or the social security number of the new owner; The effective date of the HAP contract assignment; 3. A written agreement to comply with the terms of the HAP contract; and 464 13-17 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 4. A certification that the new owner is not a relative as defined in 13.I.D. If the new owner does not agree to an assignment of the HAP contract, or fails to provide the necessary documents, HACCC will terminate the HAP contract with the old owner. If the new owner wants to offer the family a new lease, and the family elects to stay with continued assistance, HACCC will process the leasing in accordance with the policies in Chapter 9. 13-II.G. FORECLOSURE [Notice PIH 2010-49] Families receiving HCV assistance are entitled to certain protections set forth under the Protecting Tenants at Foreclosure Act (PTFA). During the term of the lease, the new owner of the property does not have good cause to terminate the tenant’s lease, unless the new owner will occupy the unit as their primary residence and has provided the tenant with at least a 90-day notice. In that case, the lease may be terminated effective on the date of sale, although the tenant is still entitled to a 90-day notice to vacate. Further, the new owner assumes interest in the lease between the prior owner and the tenant and to the HAP contract. Any state or local law that provides longer time periods or other additional protections for tenants also applies. HACCC Policy If a property is in foreclosure, HACCC will make all reasonable efforts to determine the status of the foreclosure and ownership of the property and will continue to make payments to the original owner until ownership legally transfers in accordance with the HAP contract. HACCC will attempt to obtain a written acknowledgement of the assignment of the HAP contract from the successor in interest. This will include a request for owner information, including a tax identification number and payment instructions from the new owner. Even if the new owner does not acknowledge the assignment of the HAP contract in writing, the assignment is still effective by operation of law. HACCC will inform the tenant that they must continue to pay rent in accordance with the lease, and if the new owner refuses to accept payment or cannot be identified, the tenant should pay rent into escrow. Failure to pay rent may constitute an independent ground for eviction. In the event that HACCC is unable to make HAP payments to the new owner due to an action or inaction by the new owner that prevents such payments (e.g., rejection of payments or failure to maintain the property according to NSPIRE standardsHQS), or due to an inability to identify the new owner, HACCC will either use the funds to pay: - The utilities that are the owner’s responsibility after taking reasonable steps to notify the owner; except that if the unit has been or will be rendered uninhabitable due to termination or threat of termination of service, prior notice is not required. In the latter 465 13-18 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 case, HACCC shall notify the owner within a reasonable time after making the utility payment; or - For the family’s reasonable moving costs, including security deposit costs. HACCC will also refer the tenant, as needed, to the local legal aid office in order to ensure adequate protection of the tenant’s rights and enforcement of the successor in interest’s performance under the HAP contract. See Section 12-III.B for a discussion of foreclosure as it pertains to owner termination of tenancy. 466 14-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 CHAPTER 14 PROGRAM INTEGRITY INTRODUCTION The PHA is committed to ensuring that subsidy funds made available to the PHA are spent in accordance with HUD requirements. This chapter covers HUD and PHA policies designed to prevent, detect, investigate, and resolve instances of program abuse or fraud. It also describes the actions that will be taken in the case of unintentional errors and omissions. Part I: Preventing, Detecting, and Investigating Errors and Program Abuse. This part presents PHA policies related to preventing, detecting, and investigating errors and program abuse. Part II: Corrective Measures and Penalties. This part describes the corrective measures the PHA must and may take when errors or program abuses are found. 467 14-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART I: PREVENTING, DETECTING, AND INVESTIGATING ERRORS AND PROGRAM ABUSE 14-I.A. PREVENTING ERRORS AND PROGRAM ABUSE HUD created the Enterprise Income Verification (EIV) system to provide PHAs with a powerful tool for preventing errors and detecting program abuse. PHAs are required to use the EIV system in its entiretyat annual reexamination in accordance with HUD administrative guidance [24 CFR 5.233]. PHAs are further required to: • Provide applicants and participants with form HUD-52675, “Debts Owed to PHAs and Terminations” • Require all adult members of an applicant or participant family to acknowledge receipt of form HUD-52675 by signing a copy of the form for retention in the family file HACCC Policy To ensure that the PHA’s HCV program is administered according to the highest ethical and legal standards, the PHA will employ a variety of techniques to ensure that both errors and intentional program abuse are rare. • The PHA will discuss program compliance and integrity issues during the voucher briefing sessions described in Chapter 5. • The PHA will provide each applicant and participant with a copy of “Is Fraud Worth It?” (Form HUD-1141-OIG), which explains the types of actions a family must avoid and the penalties for program abuse. • The PHA will provide each applicant and participant with a copy of “What You Should Know about EIV,” a guide to the Enterprise Income Verification (EIV) system published by HUD as an attachment to Notice PIH 2017-12. In addition, the PHA will require the head of each household to acknowledge receipt of the guide by signing a copy for retention in the family file. • The PHA will place a warning statement about the penalties for fraud (as described in 18 U.S.C. 1001 and 1010) on key PHA forms and form letters that request information from a family or owner. • PHA staff will be required to review and explain the contents of all HUD- and PHA- required forms prior to requesting family member signatures. • At every regular reexamination, PHA staff will explain any changes in HUD regulations or PHA policy that affect program participants. 468 14-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • The PHA will require first-time owners (or their agents) to participate in a briefing session on HAP contract requirements. • The PHA will provide owners with ongoing information about the program, with an emphasis on actions and situations to avoid. • The PHA will provide each PHA employee with the necessary training on program rules and the organization’s standards of conduct and ethics. For purposes of this chapter the term error refers to an unintentional error or omission. Program abuse or fraud refers to a single act or pattern of actions that constitute a false statement, omission, or concealment of a substantial fact, made with the intent to deceive or mislead. 14-I.B. DETECTING ERRORS AND PROGRAM ABUSE In addition to taking steps to prevent errors and program abuse, the PHA will use a variety of activities to detect errors and program abuse. Quality Control and Analysis of Data Under the Section 8 Management Assessment Program (SEMAP), HUD requires the PHA to review a random sample of tenant records annually to determine if the records conform to program requirements and to conduct quality control inspections of a sample of units to ensure HQS compliance with NSPIRE standards [24 CFR, Part 985]. (See Chapter 16 for additional information about SEMAP requirements). HACCC Policy In addition to the SEMAP quality control requirements, the PHA will employ a variety of methods to detect errors and program abuse. - The PHA routinely will use HUD and other non-HUD sources of up-front income verification. This includes a third-party verification vendor and any other private or public databases available to the PHA. - At each annual reexamination, current information provided by the family will be compared to information provided at the last annual reexamination to identify inconsistencies and incomplete information. - The PHA will compare family-reported income and expenditures to detect possible unreported income. Independent Audits and HUD Monitoring 469 14-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 OMB Circular A-133 requires all PHAs that expend $500,000 or more in federal awards annually to have an independent audit (IPA). In addition, HUD conducts periodic on-site and automated monitoring of PHA activities and notifies the PHA of errors and potential cases of program abuse. HACCC Policy The PHA will use the results reported in any IPA or HUD monitoring reports to identify potential program abuses as well as to assess the effectiveness of the PHA’s error detection and abuse prevention efforts. Individual Reporting of Possible Errors and Program Abuse HACCC Policy The PHA will encourage staff, program participants, and the public to report possible program abuse. 14-I.C. INVESTIGATING ERRORS AND PROGRAM ABUSE When the PHA Will Investigate HACCC Policy HACCC will review all referrals, specific allegations, complaints, and tips from any source including other agencies, companies, and individuals, to determine if they warrant investigation. In order for HACCC to investigate, the allegation must contain at least one independently verifiable item of information, such as the name of an employer or the name of an unauthorized household member. HACCC will investigate when inconsistent or contradictory information is detected through file reviews and the verification process. How the HACCC Will Investigate Allegations of Abuse And Fraud If HACCC determines that an allegation or referral warrants follow-up a staff person will conduct an investigation. The steps taken will depend upon the nature of the allegation and may include, but are not limited to, the items listed below. In all cases HACCC will ensure that written authorization from the program participant for the release of information is in the file. Credit Bureau Inquiries In cases involving unreported income sources or unreported assets, a Credit Bureau inquiry may be made to determine if there is financial activity that conflicts with the reported income of the family. Employers and Ex-Employers 470 14-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Employers and ex-employers may be contacted to verify wages that may have been previously undisclosed or misrepresented Neighbors / Witnesses Neighbors and/or witnesses may be interviewed who are believed to have direct or indirect knowledge of facts pertaining to HACCC’s review. Other Agencies Investigators, caseworkers or representative of other benefit agencies may be contacted. Local, state, or federal law enforcement officials may also be contacted. Public Records If relevant, HACCC will review public records kept in any jurisdictional courthouse. Examples of public records include but are not limited to records relating to the following: real estate, marriage, divorce, uniform commercial code financing statements, voter registration, judgments, court or police records, state wage records, utility records and postal records. Interviews with The Head of Household HACCC will discuss the allegations (or details thereof) with the Head of Household or family member by scheduling an appointment at the appropriate HACCC office. A high standard of professionalism and courtesy will be maintained by HACCC staff person who conducts such interviews. Under no circumstances will inflammatory language, accusations, or any unprofessional conduct or language be tolerated. If possible, an additional staff person will attend such interviews. Consent to Release of Information [24 CFR 982.516] HACCC may investigate possible instances of error or abuse using all available HACCC and public records. If necessary, HACCC will require HCV families to give consent to the release of additional information. Analysis and Findings HACCC Policy HACCC will base its evaluation on a preponderance of the evidence collected during its investigation. 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 that, as a whole, shows that the fact sought to be proved is more probable than not. Preponderance of evidence may not be determined by the number of witnesses, but by the greater weight of all evidence 471 14-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 For each investigation HACCC will determine (1) whether an error or program abuse has occurred, (2) whether any amount of money is owed HACCC, and (3) what corrective measures or penalties will be assessed. Consideration of Remedies All errors and instances of program abuse must be corrected prospectively. Whether HACCC will enforce other corrective actions and penalties depends upon the nature of the error or program abuse. HACCC Policy In the case of family-caused errors or program abuse, HACCC will take into consideration (1) the seriousness of the offense and the extent of participation or culpability of individual family members, (2) any special circumstances surrounding the case, (3) any mitigating circumstances related to the disability of a family member, (4) the effects of a particular remedy on family members who were not involved in the offense. In the case of owner-caused errors or program abuse, HACCC will take into consideration (1) the seriousness of the offense, (2) the length of time since the violation has occurred, and (3) the effects of a particular remedy on family members who were not involved in the offense. Notice and Appeals HACCC Policy HACCC will inform the relevant party in writing of its findings and remedies within 15 business days of the conclusion of the investigation. The notice will include (1) a description of the error or program abuse, (2) the basis on which HACCC determined the error or program abuses, (3) the remedies to be employed, and (4) the family’s right to appeal the results through the informal review or hearing process, if applicable (see Chapter 16). 472 14-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART II: CORRECTIVE MEASURES AND PENALTIES 14-II.A. SUBSIDY UNDER- OR OVERPAYMENTS A subsidy under- or overpayment includes (1) an incorrect housing assistance payment to the owner, (2) an incorrect family share established for the family, and (3) an incorrect utility reimbursement to a family. Corrections Whether the incorrect subsidy determination is an overpayment or underpayment of subsidy, the PHA must promptly correct the HAP, family share, and any utility reimbursement prospectively. HACCC Policy Increases in the family share will be implemented on the first of the month following a written 30-day notice. Any decreases in family share will become effective the first of the month following the discovery of the error. Reimbursement Whether the family or owner is required to reimburse the PHA or the PHA is required to make retroactive subsidy payments to the owner or family depends upon which party is responsible for the incorrect subsidy payment and whether the action taken was an error or program abuse. Policies regarding reimbursement are discussed in the three sections that follow. 14-II.B. FAMILY-CAUSED ERRORS AND PROGRAM ABUSE Family obligations and general administrative requirements for participating in the program are discussed throughout this plan. This section deals specifically with errors and program abuse by family members. An incorrect subsidy determination caused by a family generally would be the result of incorrect reporting of family composition, income, assets, or expenses, but also would include instances in which the family knowingly allows the PHA to use incorrect information provided by a third party. Family Reimbursement to PHA [HCV GB pp. 22-12 to 22-13] HACCC Policy In the case of family-caused errors or program abuse, the family will be required to repay any excess subsidy received. The PHA may, but is not required to, offer the family a repayment agreement in accordance with Chapter 16. If the family fails to repay the excess subsidy, the PHA will terminate the family’s assistance in accordance with the policies in Chapter 12. 473 14-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PHA Reimbursement to Family [HCV GB p. 22-12] HACCC Policy The PHA will not reimburse the family for any underpayment of assistance when the underpayment clearly is caused by the family. Prohibited Actions An applicant or participant in the HCV program must not knowingly: • Make a false statement to the PHA [Title 18 U.S.C. Section 1001]. • Commit fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program [24 CFR 982.552(c)(iv)]. HACCC Policy Any of the following will be considered evidence of family program abuse: • Payment to the owner in excess of amounts authorized by the PHA for rent, security deposit, and additional services • Offering bribes or illegal gratuities to the PHA Board of Commissioners, employees, contractors, or other PHA representatives • Offering payments or other incentives to the owner or a third party as an inducement for the third party to make false or misleading statements to the PHA on the family’s behalf • Use of a false name or the use of falsified, forged, or altered documents • Intentional misreporting of family information or circumstances (e.g. income, family composition) • Omitted facts that were obviously known by a family member (e.g., not reporting employment income) • Admission of program abuse by an adult family member The PHA may determine other actions to be program abuse based upon a preponderance of the evidence, as defined earlier in this chapter. Penalties for Program Abuse In the case of program abuse caused by a family the PHA may, at its discretion, impose any of the following remedies. 474 14-9 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • The PHA may require the family to repay excess subsidy amounts paid by the PHA, as described earlier in this section. • The PHA may require, as a condition of receiving or continuing assistance, that a culpable family member not reside in the unit. See policies in Chapter 3 (for applicants) and Chapter 12 (for participants). • The PHA may deny or terminate the family’s assistance following the policies set forth in Chapter 3 and Chapter 12 respectively. • The PHA may refer the family for state or federal criminal prosecution as described in section 14-II.E. 14-II.C. OWNER-CAUSED ERROR OR PROGRAM ABUSE Owner requirements that are part of the regular process of offering, leasing, and maintaining a unit (e.g., NSPIREHQS compliance, fair housing) are addressed in the appropriate chapters of this plan. This section focuses on errors and program abuse by owners. An incorrect subsidy determination caused by an owner generally would be the result of an incorrect owner statement about the characteristics of the assisted unit (e.g., the number of bedrooms, which utilities are paid by the family). It also includes accepting duplicate housing assistance payments for the same unit in the same month, or after a family no longer resides in the unit. Owner Reimbursement to the PHA In all cases of overpayment of subsidy caused by the owner, the owner must repay to the PHA any excess subsidy received. The PHA may recover overpaid amounts by withholding housing assistance payments due for subsequent months, or if the debt is large, the PHA may allow the owner to pay in installments over a period of time [HCV GB p. 22-13]. HACCC Policy In cases where the owner has received excess subsidy, the PHA will require the owner to repay the amount owed in accordance with the policies in Section 16-IV.B. Prohibited Owner Actions An owner participating in the HCV program must not: • Make any false statement to the PHA [Title 18 U.S.C. Section 1001]. • Commit fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program [24 CFR 982.453(a)(3)] including: 475 14-10 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy Any of the following will be considered evidence of owner program abuse: • Charging the family rent above the amount specified by the PHA • Charging a security deposit other than that specified in the family’s lease • Charging the family for services that are provided to unassisted tenants at no extra charge • Knowingly accepting housing assistance payments for any month(s) after the family has vacated the unit • Knowingly accepting incorrect or excess housing assistance payments • Offering bribes or illegal gratuities to the PHA Board of Commissioners, employees, contractors, or other PHA representatives • Offering payments or other incentives to an HCV family as an inducement for the family to make false or misleading statements to the PHA • Residing in the unit with an assisted family • Having more than one lease or rental agreement with the assisted family. Remedies and Penalties When the PHA determines that the owner has committed program abuse, the PHA may take any of the following actions: • Require the owner to repay excess housing assistance payments, as discussed earlier in this section and in accordance with the policies in Chapter 16. • Terminate the HAP contract (See Chapter 13). • Bar the owner from future participation in any PHA programs. • Refer the case to state or federal officials for criminal prosecution as described in section 14-II.E. 14-II.D. PHA-CAUSED ERRORS OR PROGRAM ABUSE The responsibilities and expectations of PHA staff with respect to normal program administration are discussed throughout this plan. This section specifically addresses actions of a PHA staff member that are considered errors or program abuse related to the HCV program. Additional standards of conduct may be provided in the PHA personnel policy. 476 14-11 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PHA-caused incorrect subsidy determinations include (1) failing to correctly apply HCV rules regarding family composition, income, assets, and expenses, (2) assigning the incorrect voucher size to a family, and (3) errors in calculation. De Minimis Errors [24 CFR 5.609(c)(4)] The PHA will not be considered out of compliance when making annual income determinations solely due to de minimis errors in calculating family income. A de minimis error is an error where the PHA determination of family income deviates from the correct income determination by no more than $30 per month in monthly adjusted income ($360 in annual adjusted income) per family. PHAs must take corrective action to credit or repay a family if the family was overcharged rent, including when PHAs make de minimis errors in the income determination. Families will not be required to repay the PHA in instances where the PHA miscalculated income resulting in a family being undercharged for rent. PHAs state in their policies how they will repay or credit a family the amount they were overcharged as a result of the PHA’s de minimis error in income determination. HACCC Policy HACCC will reimburse a family for any family overpayment of rent, regardless of whether the overpayment was the result of staff-caused error, staff program abuse, or a de minimis error. Repayment to the PHA Neither a family nor an owner is required to repay an overpayment of subsidy if the error or program abuse is caused by PHA staff [HCV GB. 22-12]. PHA Reimbursement to Family or Owner The PHA must reimburse a family for any underpayment of subsidy, regardless of whether the underpayment was the result of staff-caused error or staff or owner program abuse. Funds for this reimbursement must come from the PHA’s administrative fee reserves [HCV GB p. 22-12]. Prohibited Activities HACCC Policy Any of the following will be considered evidence of program abuse by PHA staff: • Failing to comply with any HCV program requirements for personal gain • Failing to comply with any HCV program requirements as a result of a conflict of interest relationship with any applicant, participant, or owner • Seeking or accepting anything of material value from applicants, participating families, vendors, owners, contractors, or other persons who provide services or materials to the PHA 477 14-12 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Disclosing confidential or proprietary information to outside parties • Gaining profit as a result of insider knowledge of PHA activities, policies, or practices • Misappropriating or misusing HCV funds • Destroying, concealing, removing, or inappropriately using any records related to the HCV program • Committing any other corrupt or criminal act in connection with any federal housing program 14-II.E. CRIMINAL PROSECUTION HACCC Policy When the PHA determines that program abuse by an owner, family, or PHA staff member has occurred and the amount of overpaid subsidy meets or exceeds the threshold for prosecution under local or state law, the PHA will refer the matter to the appropriate entity for prosecution. When the amount of overpaid assistance meets or exceeds the federal threshold, the case will also be referred to the HUD Office of Inspector General (OIG). Other criminal violations related to the HCV program will be referred to the appropriate local, state, or federal entity. 14-II.F. FRAUD AND PROGRAM ABUSE RECOVERIES The PHA may retain a portion of program fraud losses that the PHA recovers from a family or owner through litigation, court order, or a repayment agreement [24 CFR 982.163]. The PHA must be the principal party initiating or sustaining the action to recover amounts due from tenants that are due as a result of fraud and abuse. 24 CFR 792.202 permits the PHA to retain the greater of: • 50 percent of the amount it actually collects from a judgment, litigation (including settlement of a lawsuit) or an administrative repayment agreement, or • Reasonable and necessary costs that the PHA incurs related to the collection including costs of investigation, legal fees, and agency collection fees. The family must be afforded the opportunity for an informal hearing in accordance with requirements in 24 CFR 982.555. If HUD incurs costs on behalf of the PHA related to the collection, these costs must be deducted from the amount retained by the PHA. 478 15-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 CHAPTER 15 SPECIAL HOUSING TYPES [24 CFR 982 Subpart M; New HCV GB, Special Housing Types] INTRODUCTION HACCC may permit a family to use any of the special housing types discussed in this chapter. However, HACCC is not required to permit families receiving assistance in its jurisdiction to use these housing types, except that PHAs must permit use of any special housing type if needed as a reasonable accommodation for a person with a disability. HACCC also may limit the number of families who receive HCV assistance in these housing types and cannot require families to use a particular housing type. No special funding is provided for special housing types. Unless specifically modified by the regulations, NSPIRE standards apply to special housing types (Single Room Occupancy, Congregate Housing, Group Homes, Shared Housing, Manufactured Homes, Homeownership units) [Notice PIH 2023-28]. HACCC Policy Families will not be permitted to use any special housing types, unless use is needed as a reasonable accommodation so that the program is readily accessible to a person with disabilities. However, policy language is included in this chapter where relevant in the event the PHA does grant use as a reasonable accommodation. Special housing types include single room occupancy (SRO), congregate housing, group homes, shared housing, cooperative housing, manufactured homes where the family owns the home and leases the space, and homeownership [24 CFR 982.601]. A single unit cannot be designated as more than one type of special housing. The PHA cannot give preference to households that wish to live in any of these types of housing and cannot require households to select any of these types of housing [New HCV GB, Special Housing Types, p. 3]. This chapter consists of the following seven parts. Each part contains a description of the housing type and any special requirements associated with it. Except as modified by this chapter, the general requirements of the HCV program apply to special housing types. Part I: Single Room Occupancy Part II: Congregate Housing Part III: Group Homes Part IV: Shared Housing Part V: Cooperative Housing 479 15-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Part VI: Manufactured Homes (including manufactured home space rental) Part VII: Homeownership 480 15-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART I: SINGLE ROOM OCCUPANCY [24 CFR 982.602 through 982.605; Form HUD-52641; New HCV GB, Special Housing Types, p. 4] 15-I.A. OVERVIEW A single room occupancy (SRO) unit provides living and sleeping space for the exclusive use of the occupant but requires the occupant to share sanitary and/or food preparation facilities with others. More than one person may not occupy an SRO unit. HCV regulations do not limit the number of units in an SRO facility, but the size of a facility may be limited by local ordinances. When providing HCV assistance in an SRO unit, a separate lease and HAP contract are executed for each assisted person. The standard form of the HAP contract is used (form HUD-52641) with the special housing type specified in Part A of the HAP contract, as follows: “This HAP contract is used for the following special housing type under HUD regulations for the Section 8 voucher program: Single room occupancy (SRO) housing.” 15-I.B. PAYMENT STANDARD, UTILITY ALLOWANCE, AND HAP CALCULATION The payment standard for SRO housing is 75 percent of the zero-bedroom payment standard amount on HACCC’s payment standard schedule. The utility allowance for an assisted person residing in SRO housing is 75 percent of the zero- bedroom utility allowance. The HAP for an assisted occupant in an SRO facility is the lower of the SRO payment standard amount minus the TTP or the gross rent for the unit minus the TTP. 15-I.C. NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE (NSPIRE)HOUSING QUALITY STANDARDS (HQS) NSPIREHQS requirements described in Chapter 8 apply to SRO housing except that sanitary facilities, and space and security characteristics must meet local code standards for SRO housing. In the absence of applicable local code standards for SRO housing, the following standards apply: • Access: Access doors to the SRO unit must have working locks for privacy. The occupant must be able to access the unit without going through any other unit. Each unit must have immediate access to two or more approved means of exit from the building, appropriately marked and leading to safe and open space at ground level. The SRO unit must also have any other means of exit required by State or local law. • Fire Safety: All SRO facilities must have a sprinkler system that protects major spaces. “Major spaces” are defined as hallways, large common areas, and any other areas specified in local fire, 481 15-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 building, or safety codes. SROs must also have hard-wired smoke detectors, and any other fire and safety equipment required by state or local law. Sanitary facilities and space and security standards must meet local code requirements for SRO housing. In the absence of local code standards, the requirements discussed below apply [24 CFR 982.605]. • Sanitary Facilities: At least one flush toilet that can be used in privacy, a lavatory basin, and a bathtub or shower in proper operating condition must be provided for each six persons (or fewer) residing in the SRO facility. If the SRO units are leased only to males, flush urinals may be substituted for up to one half of the required number of toilets. Sanitary facilities must be reasonably accessible from a common hall or passageway to all persons sharing them and may not be located more than one floor above or below the SRO unit. They may not be located below grade unless the SRO units are located on that level. • Space and Security: An SRO unit must contain at least 110 square feet of floor space, and at least four square feet of closet space with an unobstructed height of at least five feet, for use by the occupant. If the closet space is less than four square feet, the habitable floor space in the SRO unit must be increased by the amount of the deficiency. Exterior doors and windows accessible from outside the SRO unit must be lockable. For SRO housing, 24 CFR 5.703(d) only applies to the extent that the SRO unit contains the room or facility referenced in 24 CFR 5.703(d). Because no children live in SRO housing, the housing quality standards applicable to lead- based paint do not apply. 482 15-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART II: CONGREGATE HOUSING [24 CFR 982.606 through 982.609; Form HUD-52641; New HCV GB, Special Housing Types, p. 6] 15-II.A. OVERVIEW Congregate housing is intended for use by elderly persons or persons with disabilities. A congregate housing facility contains a shared central kitchen and dining area and a private living area for the individual household that includes at least a living room, bedroom and bathroom. Food service for residents must be provided. If approved by HACCC, a family member or live-in aide may reside with the elderly person or person with disabilities. HACCC must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. When providing HCV assistance in congregate housing, a separate lease and HAP contract are executed for each assisted family. The standard form of the HAP contract is used form HUD-52641) with the special housing type specified in Part A of the HAP contract, as follows: “This HAP contract is used for the following special housing type under HUD regulations for the Section 8 voucher program: Congregate housing.”. 15-II.B. PAYMENT STANDARD, UTILITY ALLOWANCE, AND HAP CALCULATION The payment standard for an individual unit in a congregate housing facility is based on the number of rooms in the private living area for the assisted family. If there is only one room in the unit (not including the bathroom or the kitchen, if a kitchen is provided), HACCC must use the payment standard for a zero-bedroom unit. If the unit has two or more rooms (other than the bathroom and the kitchen), HACCC must use the one-bedroom payment standard. The HAP for an assisted occupant in a congregate housing facility is the lower of the applicable payment standard minus the TTP or the gross rent for the unit minus the TTP. The gross rent for the unit for the purpose of calculating HCV assistance is the shelter portion (including utilities) of the resident’s monthly housing expense only. The residents’ costs for food service should not be included in the rent for a congregate housing unit. 15-II.C. NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE (NSPIRE)HOUSING QUALITY STANDARDS NSPIREHQS requirements as described in Chapter 8 apply to congregate housing except for the requirements stated below. Congregate housing is not subject to the requirement that the dwelling unit must have a kitchen area. In place of the NSPIRE standards related to food preparation and refuse disposal, c 483 15-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Congregate housing must have (1) a refrigerator of appropriate size in the private living area of each resident; (2) a central kitchen and dining facilities located within the premises and accessible to the residents, and (3) food service for the residents, that is not provided by the residents themselves. The congregate housing must contain adequate facilities and services for the sanitary disposal of food waste and refuse, including facilities for temporary storage where necessary. • The housing qualityNSPIRE standards applicable to lead-based paint do not apply apply unless a child under the age of six is expected to reside in the unit. 484 15-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART III: GROUP HOME [24 CFR 982.610 through 982.614 and HCV GB p. 7-4; Form HUD-52641; New HCV GB, Special Housing Types, p. 8]] 15-III.A. OVERVIEW A group home is a state-approved (licensed, certified, or otherwise approved in writing by the state) facility intended for occupancy by elderly persons and/or persons with disabilities. Except for live- in aides, all persons living in a group home, whether assisted or not, must be elderly persons or persons with disabilities. Persons living in a group home must not require continuous medical or nursing care. A group home consists of bedrooms for residents, which can be shared by no more than two people, and a living room, kitchen, dining area, bathroom, and other appropriate social, recreational, or community space that may be shared with other residents. No more than 12 persons may reside in a group home including assisted and unassisted residents and any live-in aides. No more than 12 persons may reside in a group home including assisted and unassisted residents and any live-in aides. If approved by HACCC, a live-in aide may live in the group home with a person with disabilities. HACCC must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. When providing HCV assistance in a group home, a separate lease and HAP contract is executed for each assisted family. The standard form of the HAP contract is used (form HUD-52641) with the special housing type specified in Part A of the HAP contract, as follows: “This HAP contract is used for the following special housing type under HUD regulations for the Section 8 voucher program: Group home.”. 15-III.B. PAYMENT STANDARD, UTILITY ALLOWANCE, AND HAP CALCULATION Unless there is a live-in aide, the family unit size (voucher size) for an assisted occupant of a group home must be zero- or one-bedroom, depending on HACCC’s subsidy standard. If there is a live-in aide, the aide must be counted in determining the household’s unit size. The payment standard used to calculate the HAP is the lower of the payment standard for the family unit size or the pro rata share of the payment standard for the group home size. The pro rata share is calculated by dividing the number of persons in the assisted household by the number of persons (assisted and unassisted) living in the group home. The number of persons in the assisted household equals one assisted person plus any PHA-approved live-in aide The HAP for an assisted occupant in a group home is the lower of the payment standard minus the TTP or the gross rent minus the TTP. 485 15-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The utility allowance for an assisted occupant in a group home is the pro rata share of the family unit size to the utility allowance for the group home. The rents paid for participants residing in group homes are subject to generally applicable standards for rent reasonableness. The rent for an assisted person must not exceed the pro rata portion of the reasonable rent for the group home. In determining reasonable rent, HACCC must consider whether sanitary facilities and facilities for food preparation and service are common facilities or private facilities. 15-III.C. NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE (NSPIRE)HOUSING QUALITY STANDARDS The entire unit must comply with NSPIREHQS requirements described in Chapter 8 except for the standards that relate to sanitary facilities, food preparation and refuse disposal, space and security, structure and materials, site and neighborhood and requirements stated below. • Sanitary Facilities: A group home must have at least one bathroom in the facility, with a flush toilet that can be used in privacy, a fixed basin with hot and cold running water, and a shower or bathtub with hot and cold running water. A group home may contain private or common bathrooms. However, no more than four residents can be required to share a bathroom. • Food Preparation and Service: Group home units must contain a kitchen and dining area with adequate space to store, prepare, and serve food. The facilities for food preparation and service may be private or may be shared by the residents. The kitchen must contain a range, an oven, a refrigerator, and a sink with hot and cold running water. The sink must drain into an approvable public or private disposal system. • Space and Security: Group homes must contain at least one bedroom of appropriate size for every two people, and a living room, kitchen, dining area, bathroom, and other appropriate social, recreational, or community space that may be shared with other residents. Doors and windows accessible from outside the unit must be lockable. • Structure and Material: To avoid any threat to the health and safety of the residents, group homes must be structurally sound. Elevators must be in good condition. Group homes must be accessible to and usable by residents with disabilities. • Site and Neighborhood: Group homes must be located in a residential setting. The site and neighborhood should be reasonably free from disturbing noises and reverberations, and other hazards to the health, safety, and general welfare of the residents, and should not be subject to serious adverse conditions, such as: - Dangerous walks or steps - Instability - Flooding, poor drainage - Septic tank back-ups - Sewage hazards - Mud slides - Abnormal air pollution 486 15-9 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 - Smoke or dust - Excessive noise - Vibrations or vehicular traffic - Excessive accumulations of trash - Vermin or rodent infestation, and - Fire hazards. The housing quality standards applicable to lead-based paint do not apply unless a child under the age of six is expected to reside in the unit. 487 15-10 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART IV: SHARED HOUSING [24 CFR 982.615 through 982.618; Form HUD-52641; Notice PIH 2021-05; New HCV GB, Special Housing Types, p. 11] 15-IV.A. OVERVIEW Families in markets with tight rental conditions or with a prevalence of single-family housing may determine a shared housing living arrangement to be a useful way to secure affordable housing. PHAs offering shared housing as a housing solution may also experience some reduction in the average per-unit-cost (PUC) paid on behalf of assisted families. Shared housing is a single housing unit occupied by an assisted family and another resident or residents. The unit may be a house or an apartment. The shared unit consists of both common space for use by the occupants of the unit and separate private space for each assisted family. An assisted family may share a unit with other persons assisted under the HCV program or with other unassisted persons. Shared housing may be offered in a number of ways, including for-profit co-living (such as a boarding house, single bedroom with common living room/kitchen/dining room) run by a private company [Notice PIH 2021-05]. The owner of a shared housing unit may reside in the unit, but housing assistance may not be paid on behalf of the owner. The resident owner may not be related by blood or marriage to the assisted family. If approved by HACCC, a live-in aide may reside with the family to care for a person with disabilities. HACCC must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. When shared housing is offered as a housing option, HUD encourages PHAs to consider ways in which the families may be assisted in finding shared housing, including for-profit shared housing matching (such as roommates or single-family homes) and online sites that charge a fee for their matching services, or nonprofit shared housing matching services. HUD further encourages PHAs to include information about this housing possibility in the family’s voucher briefing. PHAs should be aware of potential local legal barriers to HCV participants using shared housing, which can create additional obstacles for shared housing: x Municipalities may have occupancy limits for the number of unrelated persons who may share a housing unit. x Local zoning codes for single family housing may restrict occupancy in certain areas to households whose family members are related by blood. 488 15-11 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PHAs should work with local jurisdictions to find solutions that encourage affordable housing and are consistent with the Fair Housing Act, Title VI, and other federal, state, and local fair housing laws. PHAs should inform HUD if they encounter barriers to shared housing that may conflict with fair housing laws. When providing HCV assistance in shared housing, a separate lease and HAP contract are executed for each assisted family. The standard form of the HAP contract is used. (form HUD-52641) with the special housing type specified in Part A of the HAP contract, as follows: “This HAP contract is used for the following special housing type under HUD regulations for the Section 8 voucher program: Shared housing. HACCC Policy HACCC will provide information to families regarding the shared housing option, including a listing to families of any known for-profit or nonprofit shared housing matching services in the community at briefing, and upon request. Families will be advised they can conduct their own internet search. Families will be cautioned to not enter into any rental agreement or pay any deposit or rental payment until the tenancy is approved by HACCC. PHAs should be aware of potential local legal barriers to HCV participants using shared housing, which can create additional obstacles for shared housing: x Municipalities may have occupancy limits for the number of unrelated persons who may share a housing unit. x Local zoning codes for single family housing may restrict occupancy in certain areas to households whose family members are related by blood. PHAs should work with local jurisdictions to find solutions that encourage affordable housing and are consistent with the Fair Housing Act, Title VI, and other federal, state, and local fair housing laws. PHAs should inform HUD if they encounter barriers to shared housing that may conflict with fair housing laws. HACCCPolicy HACCC will work with local jurisdictions as necessary to identify solutions consistent with fair housing laws and will inform HUD if HACCC encounters barriers to shared housing that conflict with fair housing laws. When providing HCV assistance in shared housing, a separate lease and HAP contract are executed for each assisted family. The standard form of the HAP contract is used (form HUD-52641) with the special housing type specified in Part A of the HAP contract, as follows: “This HAP contract is used for the following special housing type under HUD regulations for the Section 8 voucher program: Shared housing.” 15-IV.B. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION 489 15-12 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The payment standard for a family in shared housing is the lower of the payment standard for the family unit size (voucher size) or the pro rata share of the payment standard for the shared housing unit size. The pro rata share is calculated by dividing the number of bedrooms available for occupancy by the assisted family in the private, non-shared space by the total number of bedrooms in the unit. Example: Family holds a two-bedroom voucher. Shared housing unit size: bedrooms available to assisted family = 2 Total bedrooms in the unit: 3 2 Bedrooms for assisted family ÷ 3 Bedrooms in the unit .667 pro -rata share 2 BR payment standard: $1200 3 BR payment standard: $1695 $1695 x .667 (pro -rata share) = $1131 $1131 is lower than the $1200 payment standard for the 2 BR family unit size $1131 is the payment standard used to calculate the HAP The HAP for a family in shared housing is the lower of the payment standard minus the TTP or the gross rent minus the TTP. The utility allowance for an assisted family living in shared housing is the pro rata share of the utility allowance for the shared housing unit. Example: A family holds a 2-bedroom voucher. The family decides to occupy 3 out of 4 bedrooms available in the unit. The utility allowance for a 4-bedroom unit equals $200 The utility allowance for a 2-bedroom unit equals $100 The pro rata share of the utility allowance is $150 (3/4 of $200) The PHA will use the 2-bedroom utility allowance of $100. The rents paid for families living in shared housing are subject to generally applicable standards for rent reasonableness. The rent paid to the owner for the assisted family must not exceed the pro- rata portion of the reasonable rent for the shared unit. In determining reasonable rent, HACCC must consider whether sanitary and food preparation areas are private or shared. 15-IV.C. NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE (NSPIRE)HOUSING QUALITY STANDARDS HACCC may not give approval to reside in shared housing unless the entire unit, including the portion of the unit available for use by the assisted family under its lease, meets the housing quality standards. NSPIREHQS requirements described in Chapter 8 apply to shared housing except for the requirements stated below. 490 15-13 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Facilities Available for the Family: Facilities available to the assisted family, whether shared or private, must include a living room, a bathroom, and food preparation and refuse disposal facilities. • Space and Security: The entire unit must provide adequate space and security for all assisted and unassisted residents. The private space for each assisted family must contain at least one bedroom for each two persons in the family. The number of bedrooms in the private space of an assisted family must not be less than the family unit size (voucher size). A zero-bedroom or one-bedroom unit may not be used for shared housing. 491 15-14 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART V: COOPERATIVE HOUSING [24 CFR 982.619; New HCV GB, Special Housing Types, p. 14] 15-V.A. OVERVIEW This part applies to rental assistance for a cooperative member residing in cooperative housing. It does not apply to assistance for a cooperative member who has purchased membership under the HCV homeownership option, or to rental assistance for a family that leases a cooperative housing unit from a cooperative member. A cooperative is a form of ownership (nonprofit corporation or association) in which the residents purchase memberships in the ownership entity. Rather than being charged “rent” a cooperative member is charged a “carrying charge.” The monthly carrying charge includes the member’s share of the cooperative debt service, operating expenses, and necessary payments to cooperative reserve funds. It does not include down payments or other payments to purchase the cooperative unit or to amortize a loan made to the family for this purpose. The occupancy agreement or lease and other appropriate documents must provide that the monthly carrying charge is subject to Section 8 limitations on rent to owner, and the rent must be reasonable as compared to comparable unassisted units. When providing HCV assistance in cooperative housing, the standard form of the HAP contract is used with the special housing type specified in Part A of the HAP contract, as follows: “This HAP contract is used for the following special housing type under HUD regulations for the Section 8 voucher program: Cooperative housing.”. 15-V.B. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION The payment standard and utility allowance are determined according to regular HCV program requirements. The HAP for a cooperative housing unit is the lower of the payment standard minus the TTP or the gross rent (monthly carrying charge for the unit, plus any utility allowance) minus the TTP. The monthly carrying charge includes the member’s share of the cooperative debt service, operating expenses, and necessary payments to cooperative reserve funds. The carrying charge does not include down payments or other payments to purchase the cooperative unit or to amortize a loan made to the family for this purpose. 15-V.C. NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE (NSPIRE)HOUSING QUALITY STANDARDS All standard NSPIREHQS requirements apply to cooperative housing units. There are no additional NSPIREHQS requirements. The PHA remedies described in 24 CFR 982.404 do not apply. Rather, if the unit and premises are not maintained in accordance with HQSNSPIRE standards, the PHA may 492 15-15 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 exercise all available remedies regardless of whether the family or cooperative is responsible for the breach of HQSNSPIRE standards. No housing assistance payment can be made unless unit meets NSPIRE standardsHQS and the defect is corrected within the period as specified by the PHA and the PHA verifies correction (see Chapter 8). In addition to regular breaches of HQSNSPIRE deficiencies, breaches of NSPIRE standardsHQS by the family include failure to perform any maintenance for which the family is responsible in accordance with the terms of the cooperative occupancy agreement [HCV GB]. 493 15-16 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART VI: MANUFACTURED HOMES [24 CFR 982.620 through 982.624; FR Notice 1/18/17; New HCV GB, Special Housing Types, p. 15;] 15-VI.A. OVERVIEW A manufactured home is a manufactured structure, transportable in one or more parts, that is built on a permanent chassis, and designed for use as a principal place of residence. HCV- assisted families may occupy manufactured homes in two different ways. (1) A family can choose to rent a manufactured home already installed on a space and HACCC must permit it. In this instance program rules are the same as when a family rents any other residential housing, except that there are special NSPIREHQS requirements as provided in 15- VI.D below. (2) A family can purchase a manufactured home under the Housing Choice Voucher Homeownership program. (3) HUD also permits an otherwise eligible family that owns a manufactured home to rent a space for the manufactured home and receive HCV assistance with the rent for the space as well as certain other housing expenses. PHAs may, but are not required to, provide assistance for such families. 15-VI.B. SPECIAL REQUIREMENTS FOR MANUFACTURED HOMEOWNERS WHO LEASE A SPACE Family Income In determining the annual income of families leasing manufactured home spaces, the value of the family’s equity in the manufactured home in which the family resides is not counted as a family asset. Lease and HAP Contract There is a designated HAP Contract (form HUD-52642) and designated Tenancy Addendum (form HUD 52642-A) for this special housing type. 15-VI.C. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION Payment Standards [FR Notice 1/18/17] The PHA payment standard for manufactured homes is determined in accordance with 24 CFR 982.505 and is the payment standard used for the PHA’s HCV program. It is based on the applicable FMR for the area in which the manufactured home space is located. 494 15-17 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The payment standard for the family is the lower of the family unit size (voucher size) or the payment standard for the number of bedrooms in the manufactured home. Utility Allowance HACCC must establish utility allowances for manufactured home space rental. For the first 12 months of the initial lease term only, the allowance must include an amount for a utility hook-up charge if the family actually incurred a hook-up charge because of a move. This allowance will not be given to a family that leases in place. Utility allowances for manufactured home space must not include the costs of digging a well or installing a septic system. If the amount of the monthly assistance payment for a family exceeds the monthly rent for the manufactured home space (including the owner’s monthly management and maintenance charges), the PHA may pay the remainder to the family, lender, or utility company. Space Rent The rent for the manufactured home space (including other eligible housing expenses) is the total of: • The rent charged for the manufactured home space; • Owner maintenance and management charges for the space; • The monthly payments made by the family to amortize the cost of purchasing the manufactured home, including any required insurance and property taxes; and • The applicable allowance for tenant-paid unities. Amortization Costs The monthly payment made by the family to amortize the cost of purchasing the manufactured home is the debt service established at the time of application to a lender for financing the purchase of the manufactured home if monthly payments are still being made. Any increase in debt service due to refinancing after purchase of the home may not be included in the amortization cost. Debt service for set-up charges incurred by a family may be included in the monthly amortization payments made by the family. In addition, set-up charges incurred before the family became an assisted family may be included in the amortization cost if monthly payments are still being made to amortize the charges. Housing Assistance Payment The HAP for a manufactured home space under the housing choice voucher program is the lower of the payment standard minus the TTP or the manufactured home space rent (including other eligible housing expenses) minus the TTP. Rent Reasonableness 495 15-18 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Initially, and at least annually thereafter HACCC must determine that the rent for the manufactured home space is reasonable based on rents for comparable manufactured home spaces. HACCC must consider the location and size of the space, and any services and maintenance to be provided by the owner. By accepting the monthly housing assistance payment, the owner of the manufactured home space certifies that the rent does not exceed rents charged by the owner for comparable unassisted spaces in the same manufactured home park or elsewhere. If requested by the PHA, the owner must give the PHA information on rents charged by the owner for other manufactured home spaces. 15-VI.D. NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE (NSPIRE)HOUSING QUALITY STANDARDS Under either type of occupancy described in 15-VI.A above, the manufactured home must meet all NSPIREHQS performance requirements and acceptability criteria discussed in Chapter 8 of this plan. In addition, the following requirement applies: Manufactured Home Tie-Down A manufactured home must be placed on the site in a stable manner and must be free from hazards such as sliding or wind damage. The home must be securely anchored by a tie-down device that distributes and transfers the loads imposed by the unit to appropriate ground anchors to resist overturning and sliding. 496 15-19 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART VII: HOMEOWNERSHIP [24 CFR 982.625 through 982.643] 15-VII.A. OVERVIEW [24 CFR 982.625] The homeownership option is used to assist a family residing in a home purchased and owned by one or more members of the family. A family assisted under this option may be newly admitted or an existing participant in the HCV program. HACCC must have the capacity to operate a successful HCV homeownership program as defined by the regulations. HACCC Policy HACCC has instituted a minimum homeowner down payment requirement of at least three percent of the purchase price and requires that at least one percent of the purchase price come from the family's personal resources. There are two forms of homeownership assistance described in the regulations: monthly homeownership assistance payments and single down payment assistance grants. However, PHAs may not offer down payment assistance until and unless funding is allocated by Congress. Since this has not yet happened, only monthly homeownership assistance may be offered. HACCC Policy HACCC will offer the monthly homeownership assistance payments to qualified families. HACCC may choose not to offer homeownership assistance. However, HACCC must offer homeownership assistance if needed as a reasonable accommodation, so that the program is readily accessible to and usable by persons with disabilities. It is the sole responsibility of HACCC to determine whether it is reasonable to implement a homeownership program as a reasonable accommodation. HACCC must determine what is reasonable based on the specific circumstances and individual needs of the person with a disability. HACCC may determine that it is not reasonable to offer homeownership assistance as a reasonable accommodation in cases where HACCC has otherwise opted not to implement a homeownership program. HACCC must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. 15-VII.B. FAMILY ELIGIBILITY [24 CFR 982.627] If HACCC offers the homeownership option, participation by the family is optional. However, the family must meet all of the requirements listed below before the commencement of homeownership assistance. HACCC may also establish additional initial requirements as long as they are described in HACCC administrative plan. 497 15-20 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Only current participants in the HCV rental program who have received assistance for at least one full year and who are in good standing with their landlord and the HACCC with regard to their family obligations and contracts may apply for the homeownership program. Good standing is defined as not owing back rent, not the subject of documented program and lease violations, not under eviction for violation of lease terms or subject to a proposal for termination due to a violation of program obligations. • The family must qualify as a first-time homeowner or may be a cooperative member. • The head of household must be a member of the Section 8 Family Self Sufficiency (FSS) program and participating in the development of an Individual Training and Service Plan and is meeting the obligations of their FSS contract. Or the family may be a former member of the FSS program who has successfully completed the program. The family will be required to meet all other obligations and pre-requirements of the HOA program. Elderly and disabled persons are exempt from the requirement to participate in the FSS program but are not prohibited from participation. • The family must meet the Federal minimum income requirement. The family must have a gross annual income equal to the Federal minimum wage multiplied by 2000, based on the income of adult family members who will own the home. HACCC may establish a higher income standard for families. However, a family that meets the federal minimum income requirement (but not HACCC’s requirement) will be considered to meet the minimum income requirement, if it can demonstrate that it has been pre-qualified or pre-approved for financing that is sufficient to purchase an eligible unit. HACCC Policy HACCC will not establish a higher minimum income standard for disabled and/or non- disabled families. • For disabled families, the minimum income requirement is equal to the current SSI monthly payment for an individual living alone, multiplied by 12. • For elderly or disabled families, welfare assistance payments for adult family members who will own the home will be included in determining whether the family meets the minimum income requirement. It will not be included for other families. • The family must satisfy the employment requirement by demonstrating that the head of household of the family who will own the home at commencement of homeownership assistance is currently employed on a full-time basis (the term ‘full-time employment’ means not less than an average of 30 hours per week); and has been continuously so employed during the year before commencement of homeownership assistance for the family. HACCC Policy Families will be considered “continuously employed” if the break in employment does not exceed four months. 498 15-21 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • HACCC will count self-employment in a business when determining whether the family meets the employment requirement. • The employment requirement does not apply to elderly and disabled families. In addition, if a family, other than an elderly or disabled family includes a person with disabilities, HACCC must grant an exemption from the employment requirement if HACCC determines that it is needed as a reasonable accommodation. • The family has not defaulted on a mortgage securing debt to purchase a home under the homeownership option • Except for cooperative members who have acquired cooperative membership shares prior to commencement of homeownership assistance, no family member has a present ownership interest in a residence at the commencement of homeownership assistance for the purchase of any home. HACCC Policy HACCC will impose additional eligibility requirements. To be eligible to participate in the homeownership option, families must meet the following criteria: The family has had no family-caused violations of HUD’s Housing Quality standards/NSPIRE standards within the past year. The family is not within the initial one-year period of a HAP Contract. The family owes no money to the PHA. • The family has not committed any serious or repeated violations of a PHA- assisted lease within the past year. • Except for cooperative members who have acquired cooperative membership shares prior to the commencement of homeownership assistance, the family has entered a contract of sale in accordance with 24 CFR 982.63(C). 15-VII.C. SELECTION OF FAMILIES [24 CFR 982.626] Unless otherwise provided (under the homeownership option), HACCC may limit homeownership assistance to families or purposes defined by HACCC and may prescribe additional requirements for commencement of homeownership assistance for a family. Any such limits or additional requirements must be described in HACCC administrative plan. HACCC shall initially limit the number of families that may participate in the homeownership option to twenty (20) households and shall increase the program size at its sole discretion. HACCC Policy 499 15-22 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Families who have been participating in an economic self-sufficiency program for at least six months, or have graduated from such a program, will be given preference over other families. Elderly and disabled families will automatically be given this preference. Within preference and non-preference categories, families will be selected according to the date and time their application for participation in the homeownership option is submitted to HACCC. All families must meet eligibility requirements as defined in Section 15-VII.B. of this plan. 15-VII.D. ELIGIBLE UNITS [24 CFR 982.628] In order for a unit to be eligible, HACCC must determine that the unit satisfies all of the following requirements: • The unit must meet HUD’s “eligible housing” requirements. The unit may not be any of the following: 1. A public housing or Indian housing unit; 2. A unit receiving Section 8 project-based assistance; 3. A nursing home, board and care home, or facility providing continual psychiatric, medical or nursing services; 4. A college or other school dormitory; 5. On the grounds of penal, reformatory, medical, mental, or similar public or private institutions. • The unit must be a one-unit property or a single dwelling unit in a cooperative or condominium. • The unit must have been inspected by HACCC and by an independent inspector designated by the family. • The unit must meet Housing Quality Standards (see Chapter 8). • For a unit where the family will not own fee title to the real property (such as a manufactured home), the home must have a permanent foundation and the family must have the right to occupy the site for at least 40 years. x Families may enter into contracts of sale for units not yet under construction. However, the PHA will not commence homeownership assistance for the family for that unit until: 1. Either the responsible entity completes the environmental review as required by 24 CFR part 58 and HUD approved the environmental certification and request for release of funds prior to commencement of construction or HUD performed an environmental review under CFR 500 15-23 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 part 50 and notified the PHA in writing of environmental approval of the site prior to construction commencement; and 2. Construction of the unit has been completed and the unit has passed the required NSPIREHQS inspection and independent inspection as addressed elsewhere in this chapter. • For HACCC-owned units all of the following conditions must be satisfied: 1. HACCC informs the family, both orally and in writing, that the family has the right to purchase any eligible unit, and a HACCC-owned unit is freely selected by the family without HACCC pressure or steering; 2. The unit is not ineligible housing; 3. HACCC obtains the services of an independent agency to inspect the unit for compliance with HQSNSPIRE standards, review the independent inspection report, review the contract of sale, determine the reasonableness of the sales price and any HACCC provided financing. All of these actions must be completed in accordance with program requirements. • HACCC must not approve the unit if HACCC has been informed that the seller is debarred, suspended, or subject to a limited denial of participation. • Homeownership assistance shall not be provided for lease-purchase agreements. 15-VII.E. ADDITIONAL HACCC REQUIREMENTS FOR SEARCH AND PURCHASE [24 CFR 982.629] It is the family’s responsibility to find a home that meets the criteria for voucher homeownership assistance. HACCC may establish the maximum time that will be allowed for a family to locate and purchase a home and may require the family to report on their progress in finding and purchasing a home. If the family is unable to purchase a home within the maximum time established by HACCC, HACCC may issue the family a voucher to lease a unit or place the family’s name on the waiting list for a voucher. HACCC Policy The family will be allowed 120 days to identify a unit and submit a sales contract to HACCC for review. The family will be allowed an additional 120 days to close on the home. HACCC may grant extensions to either of these periods for good cause. The length of the extension(s) will be determined on a case-by-case, but in no case will an extension exceed a total of 125 days. The maximum amount of time a family will be given to locate and complete the purchase of a home under the homeownership option is 365 days. During these periods, the family will continue to receive HCV rental assistance in accordance with any active lease and HAP contract until the family vacates the rental unit for its purchased home. 501 15-24 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 All requests for extensions must be submitted in writing to HACCC prior to the expiration of the period for which the extension is being requested. HACCC will approve or disapprove the extension request within 10 business days. The family will be notified of the HACCC’s decision in writing. The family will be required to report their progress on locating and purchasing a home to HACCC every 30 days until the home is purchased. If the family cannot complete the purchase of a unit within the maximum required time frame, and is not receiving rental assistance under a HAP contract at the time the search and purchase time period expires, the family will be issued a voucher to lease a unit. Search Time: The family’s deadline date for locating a home to purchase will be 180-days from the date the family is issued a homeownership voucher. The family will be issued a homeownership voucher once they have completed all required pre-purchase counseling and have received a mortgage pre-approval. Extensions may be granted on a case-by-case basis. Reporting: HACCC will require periodic reports on the family’s progress in finding and purchasing a home. The family will provide such reports on a monthly basis to the Homeownership Coordinator or Authority designated representative. If Family is Unable to Purchase: If the family is unable to purchase a home within the maximum time limit, the HACCC will issue the family a voucher to lease a unit provided the family is in compliance with Section 8 Housing Choice Voucher program rules. 15-VII.F. HOMEOWNERSHIP COUNSELING [24 CFR 982.630] Before commencement of homeownership assistance for a family, the family must attend and satisfactorily complete the pre-assistance homeownership and housing counseling program required by HACCC. HUD suggests the following topics for HACCC-required pre-assistance counseling: • Home maintenance (including care of the grounds); • Budgeting and money management; • Credit counseling; • How to negotiate the purchase price of a home; • How to obtain homeownership financing and loan pre-approvals, including a description of types of financing that may be available, and the pros and cons of different types of financing; 502 15-25 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • How to find a home, including information about homeownership opportunities, schools, and transportation in HACCC jurisdiction; • Advantages of purchasing a home in an area that does not have a high concentration of low- income families and how to locate homes in such areas; • Information on fair housing, including fair housing lending and local fair housing enforcement agencies; and • Information about the Real Estate Settlement Procedures Act (12 U.S.C. 2601 et seq.) (RESPA), state and Federal truth-in-lending laws, and how to identify and avoid loans with oppressive terms and conditions. HACCC may adapt the subjects covered in pre-assistance counseling (as listed) to local circumstances and the needs of individual families. HACCC may also require additional counseling after the commencement of homeownership assistance. If HACCC offers a post-purchase counseling program, it will have the discretion to determine whether the family is required to participate in this type of counseling. Post-purchase counseling will generally be triggered by a participant's violation of their homeownership obligations or evidence of the participant’s failure to perform program expectations. If HACCC does not use a HUD-approved housing counseling agency to provide the counseling, HACCC shall ensure that its counseling program is consistent with the counseling provided under HUD’s Housing Counseling program. HACCC Policy Families will not be required to participate in ongoing counseling after commencement of homeownership assistance. 15-VII.G. HOME INSPECTIONS, CONTRACT OF SALE, AND HACCC DISAPPROVAL OF SELLER [24 CFR 982.631] Home Inspections HACCC may not commence monthly homeownership assistance payments for a family until HACCC has inspected the unit and has determined that the unit passes HQSNSPIRE standards. HACCC Policy When the family locates a home they wish to purchase and submits a copy of their purchase offer/contract, HACCC will conduct an NSPIRE inspection within 10 business days. Any 503 15-26 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 items found not to meet NSPIRE standards must be repaired before the unit can be determined eligible for the homeownership program. An independent professional inspector selected by and paid for by the family must also inspect the unit. The independent inspection must cover major building systems and components, including foundation and structure, housing interior and exterior, and the roofing, plumbing, electrical, and heating systems. The independent inspector must be qualified to report on property conditions, including major building systems and components. HACCC may not require the family to use an independent inspector selected by HACCC. The independent inspector may not be a HACCC employee or contractor, or other person under control of HACCC. However, HACCC may establish standards for qualification of inspectors selected by families under the homeownership option. HACCC Policy The family must hire an independent professional inspector, whose report must be submitted to HACCC for review. This inspector must be a member of the American Society of Home Inspectors (ASHI) or other recognized professional society, or a licensed engineer. The inspector cannot be an HACCC employee or contractor. HACCC may disapprove a unit for assistance based on information in the independent inspector’s report, even if the unit was found to comply with HQSNSPIRE standards. HACCC Policy HACCC will review the professional report in a timely fashion and, based on the presence of major physical problems, may disapprove the purchase of the home. If HACCC disapproves the purchase of a home, the family will be notified in writing of the reasons for the disapproval. While the family is receiving homeownership assistance, HACCC will conduct an inspection every other year. Contract of Sale Before commencement of monthly homeownership assistance payments, a member or members of the family must enter into a contract of sale with the seller of the unit to be acquired by the family. The family must give HACCC a copy of the contract of sale. The contract of sale must: • Specify the price and other terms of sale by the seller to the purchaser; • Provide that the purchaser will arrange for a pre-purchase inspection of the dwelling unit by an independent inspector selected by the purchaser; 504 15-27 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Specify that an HQS inspector be granted access to the property to perform an NSPIREHQS inspection prior to closing. Homeownership assistance is contingent on satisfactory inspections by both inspectors and subject to approval by HACCC. • Provide that the purchaser is not obligated to purchase the unit unless the inspection is satisfactory to the purchaser; x Provide that the purchaser is not obligated to pay for any necessary repairs; and x Contain a certification from the seller that the seller has not been debarred, suspended, or subject to a limited denial of participation under CFR part 24. x A contract for the sale of a unit not yet under construction must meet all above requirements, and requirements below. Commencement of construction in violation of the below requirements voids the purchase contract. - The purchaser is not obligated to purchase the unit unless an environmental review has been performed and the site received environmental approval prior to commencement of construction in accordance with 24 CFR 982.628; and - The construction will not commence until the environmental review has been completed and the seller has received written notice from the PHA that environmental approval has been obtained. Environmental approval may be conditioned on the contracting parties’ agreement to modification to the unit design or to mitigation actions. x The purchaser is not obligated to purchase the unit unless an environmental review has been performed and the site has received environmental approval prior to commencement of construction in accordance with 24 CFR 982.628. x The construction will not commence until the environmental review has been completed and the seller has received written notice from HACCC that environmental approval has been obtained. Conduct of the environmental review may not necessarily result in environmental approval, and environmental approval may be conditioned on the contracting parties' agreement to modifications to the unit design or to mitigation actions. Disapproval of a Seller In its administrative discretion, HACCC may deny approval of a seller for the same reasons HACCC may disapprove an owner under the regular HCV program [see 24 CFR 982.306©]. 15-VII.H. FINANCING [24 CFR 982.632] HACCC may establish requirements for financing purchase of a home under the homeownership option. This may include requirements concerning qualification of lenders, terms of financing, restrictions concerning debt secured by the home, lender qualifications, loan terms, and affordability of the debt. HACCC must establish policies describing these requirements in the administrative plan. 505 15-28 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC may not require that families acquire financing from one or more specified lenders, thereby restricting the family’s ability to secure favorable financing terms. HACCC Policy As a check against predatory lending, HACCC will review the financing of each purchase transaction, including estimated closing costs. HACCC will review the loans for features, such as balloon payments, adjustable rate mortgages, and unusually high interest rates, all of which are prohibited. HACCC also will not approve “seller financing” or “owner-held” mortgages. Beyond these basic criteria, HACCC will rely on the lenders to determine that the loan will be affordable to program participants. The mortgage the family applies for must require a minimum down payment of at least three percent of the sales price with one percent of the down payment coming from the purchaser’s personal funds. HACCC will not require that the family have any more than the minimum of one percent of their own money in the transaction. However, in cases where a lender is requiring a larger amount, the family may be held to the underwriting guidelines set by their lending institution. HACCC will approve a family’s request to utilize its Family Self-Sufficiency escrow account after final disbursement for down payment and/or closing costs when purchasing a unit under the HCV homeownership option. Financing Requirements: The family is responsible for securing financing. HACCC has established financing requirements, listed below, and may disapprove proposed financing if the Authority determines that the debt is unaffordable. HACCC may prohibit the following forms of financing: a. Balloon payment mortgages b. Variable interest rate loans c. Seller financing on a case-by-case basis d. All mortgage payment costs cannot exceed 50% monthly gross income. e. Loans including persons other than those listed in the assisted family household for Homeownership program participation. f. Other types of loans that come to the attention of HACCC that demonstrate a high- risk factor - to be decided on a case-by-case basis. Underwriting Guidelines: If the mortgage is not FHA-insured, the Authority will require the lender to comply with generally accepted mortgage underwriting standards consistent with those of HUD/FHA, Ginnie Mae, Fannie 506 15-29 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Mae, Freddie Mac, California Housing Finance Agency (CalHFA), USDA Rural Housing Services, The Federal Home Loan Bank or other private lending institutions. Down payment: The family is expected to comply with secondary mortgage market underwriting down payment requirements. HACCC requires the family to contribute at least one percent (1%) of the purchase price towards the down payment. This amount must come from the family’s personal resources and not from gifts, grants, retirement accounts or down payment assistance. HACCC may grant relief from this requirement in those cases where a contribution of personal resources would result in extreme hardship for the family. 15-VII.I. CONTINUED ASSISTANCE REQUIREMENTS; FAMILY OBLIGATIONS [24 CFR 982.633] Homeownership assistance may only be paid while the family is residing in the home. If the family moves out of the home, the HACCC may not continue homeownership assistance after the month when the family moves out. The family or lender is not required to refund to the HACCC the homeownership assistance for the month when the family moves out. Before commencement of homeownership assistance, the family must execute a statement of family obligations in the form prescribed by HUD. In the statement, the family agrees to comply with all family obligations under the homeownership option. The family must comply with the following obligations. 1. Ongoing counseling: To the extent required by the HACCC, the family must attend and complete ongoing homeownership and housing counseling. 2. Compliance with mortgage: The family must comply with the terms of any mortgage securing debt incurred to purchase the home (or any refinancing of such debt). 3. Prohibition against conveyance or transfer of home; a. So long as the family is receiving homeownership assistance, use and occupancy of the home is subject to 982.551(h) and (i). b. The family may grant a mortgage on the home for debt incurred to finance purchase of the home or any refinancing of such debt. c. Upon death of a family member who holds, in whole or in part, title to the home or ownership of cooperative membership shares for the home, homeownership assistance may continue pending settlement of the decedent's estate, notwithstanding transfer of title by operation of 507 15-30 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 law to the decedent's executor or legal representative, so long as the home is solely occupied by remaining family members in accordance with 24 CFR 982.551(h). 4. Supplying required information: The family must supply required information to the HACCC in accordance with 982.551(b). In addition to other required information, the family must supply any information as required by the HACCC or HUD concerning any mortgage or other debt incurred to purchase the home, and any refinancing of such debt (including information needed to determine whether the family has defaulted on the debt, and the nature of any such default), information on any satisfaction or payment of the mortgage debt; information on any sale or other transfer of any interest in the home and information on the family's homeownership expenses. 5. Notice of move-out: The family must notify the HACCC before the family moves out of the home. 6. Notice of mortgage default: The family must notify the HACCC if the family defaults on a mortgage securing any debt incurred to purchase the home. 7. The family must provide the PHA with information on any satisfaction or payment of the mortgage debt. 8. Prohibition on ownership interest on second residence: During the time the family receives homeownership assistance, no family member may have any ownership interest in any other residential property. 9. Other family obligations: The family must comply with the obligations of a participant family described in 982.551. However, the following provisions do not apply to assistance under the homeownership option; 982.551(c), (d), (e), (f), (g) and (j). The HACCC may establish additional requirements for continuation of homeownership assistance for the family. The family must comply with any such requirements. HACCC Policy Any inspection the HACCC conducts after the initial inspection will be done on an advisory basis. The family will be encouraged to make the repairs, but will not be required to do so as a condition of ongoing assistance. Additional HACCC requirements Before commencement of homeownership assistance, the family must execute the HACCC Statement of Family Obligations which details the additional HACCC HCV Homeownership Program obligations. In the statement, the family agrees to comply with the additional HACCC requirements under the homeownership option. The family must comply with the following additional obligations; 508 15-31 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Continuous Employment Obligations • The applicant head of household, co-head or spouse must remain continuously employed (no less than 30 hours per week) while participating in the program. • Part-time employment by both parties, totaling over 30 hours per week, does not constitute full- time employment by either party. For continued eligibility purposes, continuous employment is defined as full time employment (average of 30 hours per week) with no gap in employment lasting more than four weeks total (30 hours x 48 weeks = 1,440 hours). The employment requirement is not applicable to elderly families or those whose head or co-head of household, spouse or sole member experience permanent disability. Mitigating Circumstances If a working family is subsequently determined by HACCC to now qualify as a “disabled family,” as defined by HUD, the full-time employment requirement is no longer applicable to that family. HACCC will consider mitigating circumstances where certain lapses in employment prohibit the family from meeting its continuous employment obligation. These include receipt of Unemployment Insurance Benefits due to layoff; absences defined under the Family Medical Leave Act; receipt of Workman’s Compensation benefits. HACCC will allow week-for-week substitutions whenever any of these benefits are received. The participant must return to full-time employment within 30 days after exhaustion of unemployment benefits. Failure to return to full-time employment (30 hours per week) within 30 days will generate a 30-day Notice to Correct. Failure to correct will result in a correctable 30-day Notice of Termination. A participant who is employed but is on leave from work due to maternity leave, FMLA or is receiving Workman’s Compensation, is exempt from the full-time employment requirement during the period of approved leave from work. A participant must return to full-time employment within 30 days after exhaustion of applicable benefits. Willful failure to return to full-time employment (30 hours per week), after 30 days, will generate a 30-day Notice to Correct. Failure to correct will result in a correctable 30-day Notice of Termination. Consideration of other mitigating circumstances is at the discretion of a local Area Coordinator recommendation to the HCV Program Administrator. The Program Administrator will review any additional mitigating circumstances that prevent a participant’s return to full-time employment within the time frames allotted. Determinations of the review are made on a case-by-case basis. The decisions are subject to final approval by the Director. 509 15-32 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Prohibition Against Conveyance or Transfer of The Home So long as the family is receiving homeownership assistance, they may not sell, convey or transfer any interest in the home to any entity or person other than a member of the assisted family residing in the home. If the family chooses to sell the home to another family member, they must inform HACCC of their intent prior to the sale and receive written consent from HACCC before commencing with any sale, refinance or transfer of interest. The family is required to provide HACCC with applicable documentation related to any sale, refinance, or transfer. Upon the death of a family member who holds, in whole or in part, title to the home or ownership of cooperative membership shares for the home, homeownership assistance may continue pending settlement of the decedent’s estate, notwithstanding transfer of the title by operation of the law to the decedent’s executor or legal representative, so long as the home is solely occupied by remaining family members. The family is required to inform the HACCC of the decedent’s death within fourteen (14) days if its occurrence. Annual Recertification The family must complete Annual Reexaminations in accordance with Chapter 11 Part 1, of this Administrative Policy (Chapter 11 Part 1, Annual Reexaminations [24 CFR 982.516]) During each annual re-certification, the family is required to document that it is current on mortgage, insurance and utility payments. Notice of Move-Out and Mortgage Default The family must notify HACCC of its intent to move out of the home by supplying HACCC with an advanced written thirty-day notice. The family will notify HACCC in advance if any family member who owns, in whole or in part, any ownership interest in the home moves out. Changes in Family Income or Household Composition The Family must inform HACCC of any changes in the sources and amounts of family income and notify HACCC of any changes in the family composition in accordance with Chapter 11, Part II of this Administrative Policy (Chapter 11 Part 2, Interim Reexaminations [24 CFR 982.516]) Refinancing The family must obtain written approval from the HACCC before securing any refinance or equity loan. During the time the family receives homeownership assistance, no family member may have any ownership interest in any other residential property. Other Continued Family Obligations 510 15-33 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The family must; 1. Sign a release allowing HACCC, counselors, realtors, and participating lenders to exchange information on the borrower. 2. Agree to maintain the condition of the home to comply with minimum HUD NSPIRE Housing Quality Sstandards (HQS). 3. Acknowledge that the termination of assistance shall be in accordance with program requirements and the Administrative Plan. 4. Acknowledge that the family is obligated for the whole mortgage payment in the event of termination of assistance. 5. Not sublease or assign the property. 6. Refinancing a mortgage to cash out equity that will be used to purchase a second home is prohibited for participants of the Homeownership Program. 15-VII.J. MAXIMUM TERM OF HOMEOWNER ASSISTANCE [24 CFR 982.634] Except in the case of a family that qualifies as an elderly or disabled family, other family members (described below) shall not receive homeownership assistance for more than: • Fifteen years, if the initial mortgage incurred to finance purchase of the home has a term of 20 years or longer; or • Ten years, in all other cases. The maximum term described above applies to any member of the family who: • Has an ownership interest in the unit during the time that homeownership payments are made; or • Is the spouse of any member of the household who has an ownership interest in the unit during the time homeownership payments are made. The maximum term of assistance does not apply to elderly or disabled families. In the case of an elderly family, the exception only applies if the family qualifies as an elderly family at the start of homeownership assistance. In the case of a disabled family, the exception applies if at any time during receipt of homeownership assistance the family qualifies as a disabled family. If, during the course of homeownership assistance, the family ceases to qualify as a disabled or elderly family, the maximum term becomes applicable from the date homeownership assistance commenced. However, such a family must be provided at least 6 months of homeownership assistance after the maximum term becomes applicable (provided the family is otherwise eligible to receive homeownership assistance). 511 15-34 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If the family has received such assistance for different homes, or from different HACCCs, the total of such assistance terms is subject to the maximum term described in this part. 15-VII.K. HOMEOWNERSHIP ASSISTANCE PAYMENTS AND HOMEOWNERSHIP EXPENSES [24 CFR 982.635] The monthly homeownership assistance payment is the lower of: the voucher payment standard minus the total tenant payment, or the monthly homeownership expenses minus the total tenant payment. At the commencement of homeownership assistance, the payment standard for a family is the lower of either the payment standard for the family unit size or the payment standard for the size of the home. If the home is located in an exception payment standard area, HACCC must use the appropriate payment standard for the exception payment standard area. At reexamination of income the payment standard for a family is the greater of either the payment standard at the commencement of homeownership assistance for occupancy of the home or the payment standard at the most recent regular reexamination of family income and composition since the commencement of homeownership assistance for occupancy of the home. In determining the amount of the homeownership assistance payment, HACCC will use the same payment standard schedule, payment standard amounts, and subsidy standards as those described in elsewhere in this plan for the Housing Choice Voucher program. HACCC must adopt policies for determining the amount of homeownership expenses to be allowed by HACCC in accordance with HUD requirements. Homeownership expenses (not including cooperatives) must include amounts allowed by HACCC to cover: • Principal and interest on initial mortgage debt, any refinancing of such debt, and any mortgage insurance premium incurred to finance purchase of the home; • Real estate taxes and public assessments on the home; • Home insurance; • HACCC allowance for maintenance expenses; • HACCC allowance for costs of major repairs and replacements; • HACCC utility allowance for the home; • Principal and interest on mortgage debt incurred to finance costs for major repairs, replacements or improvements for the home. If a member of the family is a person with disabilities, such debt 512 15-35 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 may include debt incurred by the family to finance costs needed to make the home accessible for such person, if HACCC determines that allowance of such costs as homeownership expenses is needed as a reasonable accommodation so that the homeownership option is readily accessible to and usable by such person; • Land lease payments where a family does not own fee title to the real property on which the home is located; [see 24 CFR 982.628(b)]. • For a condominium unit, condominium operating charges or maintenance fees assessed by the condominium homeowner association. HACCC does not have the discretion to exclude any of the listed homeownership expenses or to add any additional items. Homeownership expenses for a cooperative member include amounts allowed by HACCC to cover: • The cooperative charge under the cooperative occupancy agreement including payment for real estate taxes and public assessments on the home; • Principal and interest on initial debt incurred to finance purchase of cooperative membership shares and any refinancing of such debt; • Home insurance; • HACCC allowance for maintenance expenses; • HACCC allowance for costs of major repairs and replacements; • HACCC utility allowance for the home; and x Principal and interest on debt incurred to finance major repairs, replacements or improvements for the home. If a member of the family is a person with disabilities, such debt may include debt incurred by the family to finance costs needed to make the home accessible for such person, if HACCC determines that allowance of such costs as homeownership expenses is needed as a reasonable accommodation so that the homeownership option is readily accessible to and usable by such person. • Cooperative operating charges or maintenance fees assessed by the cooperative homeowner association. HACCC Policy HACCC will use the following amounts for homeownership expenses: 513 15-36 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Monthly homeownership payment. This includes principal and interest on initial mortgage debt, taxes and insurance, public assessments, and any mortgage insurance premium, if applicable. Utility allowance. The PHA’s utility allowance for the unit, based on the current HCV utility allowance schedule. Monthly maintenance/major repair/replacement allowance. A single monthly maintenance/repair/replacement allowance will be provided at $120 per month. Monthly co-op/condominium assessments. If applicable, the monthly amount of co-op or condominium association operation and maintenance assessments. Monthly principal and interest on debt for improvements. Principal and interest for major home repair, replacements, or improvements, if applicable. Land lease payments. Land lease payments where a family does not own fee title to the real property on which the home is located. • HACCC may pay the homeownership assistance payments directly to the family, or at HACCC’s discretion, to a lender on behalf of the family. If the assistance payment exceeds the amount due to the lender, the PHA must pay the excess directly to the family. HACCC Policy HACCC’s housing assistance payment will be paid directly to the family. It will be the family’s responsibility to make the entire payment to the lender. HACCC may make an exception if the family requests the payment to go directly to the lender, and this arrangement is acceptable to the mortgage company. If the assistance payment exceeds the amount due to the lender, HACCC must pay the excess directly to the family. 15-VII.L. PORTABILITY [24 CFR 982.636, 982.637, 982.353(b) and (c), 982.552, 982.553] Subject to the restrictions on portability included in HUD regulations and HACCC policies, a family may exercise portability if the receiving PHA is administering a voucher homeownership program and accepting new homeownership families. The receiving PHA may absorb the family into its voucher program or bill the initial PHA. The family must participate in the briefing and counseling sessions required by the receiving PHA. The receiving PHA will determine whether the financing for, and the physical condition of the unit, are acceptable. The receiving PHA must promptly notify HACCC if the family has purchased an eligible unit under the program, or if the family is unable to purchase a home within the maximum time established by PHA. 514 15-37 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 15-VII.M. MOVING WITH CONTINUED ASSISTANCE [24 CFR 982.637] A family receiving homeownership assistance may move with continued tenant-based assistance or with voucher homeownership assistance. HACCC must determine that all initial requirements have been satisfied if a family that has received homeownership assistance wants to move with continued homeownership assistance. However, the following do not apply: x The requirement that a family must be a first-time homeowner is not applicable. x The requirement for pre-assistance counseling is not applicable. However, HACCC may require that the family complete additional counseling (before or after moving to a new unit with continued homeownership assistance). Continued tenant-based assistance for a new unit cannot begin so long as any family member holds title to the prior home. However, when the family or a member of the family is or has been the victim of domestic violence, dating violence, sexual assault, or stalking, or human trafficking and the move is needed to protect the health or safety of the family or family member (or any family member has been the victim of a sexual assault that occurred on the premises during the 90-calendar-day period preceding the family’s request to move), such family or family member may be assisted with continued tenant-based assistance even if they own any title or other interest in the prior home. HACCC may deny permission to move to a new unit with continued voucher assistance as follows: • Lack of funding to provide continued assistance. • At any time, HACCC may deny permission to move with continued rental or homeownership assistance in accordance with 24 CFR 982.638, regarding denial or termination of assistance. • In accordance with HACCC’s policy regarding number of moves within a 12-month period. HACCC must deny the family permission to move to a new unit with continued voucher rental assistance if: • The family defaulted on an FHA-insured mortgage; and • The family fails to demonstrate that the family has conveyed, or will convey, title to the home, as required by HUD, to HUD or HUD’s designee; and • The family has moved, or will move, from the home within the period established or approved by HUD. HACCC Policy For families participating in the homeownership option, requests to move will be approved and/or denied in accordance with HACCC policies in Chapter 10. 515 15-38 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • HACCC will not require additional counseling of any families who move with continued assistance. 15-VII.N. DENIAL OR TERMINATION OF ASSISTANCE [24 CFR 982.638] At any time, HACCC may deny or terminate homeownership assistance in accordance with HCV program requirements in 24 CFR 982.552 (Grounds for denial or termination of assistance) or 24 CFR 982.553 (Crime by family members). HACCC may also deny or terminate assistance for violation of family obligations described in 24 CFR Parts 982.551 or 982.633. Homeownership assistance for a family automatically terminates 180 calendar days after the last homeownership assistance payment on behalf of the family. However, HACCC may grant relief from this requirement in those cases where automatic termination would result in extreme hardship for the family. HACCC Policy In order for HACCC to consider granting relief from the requirement to automatically terminate homeownership assistance 180 days following HACCC’s last housing assistance payment on behalf of the family, the family must submit a written request to HACCC at least 30 days prior to the date of automatic termination. The request must include an explanation of the circumstances that will cause an extreme hardship for the family (e.g., the imminent loss of income or employment) as well as documentation supporting the request. HACCC will determine on a case-by-case basis whether to grant relief from the requirement and for what period of time. In no case will HACCC postpone termination beyond an additional 90 days. HACCC must terminate voucher homeownership assistance for any member of family receiving homeownership assistance that is dispossessed from the home pursuant to a judgment or order of foreclosure on any mortgage (whether FHA insured or non-FHA) securing debt incurred to purchase the home, or any refinancing of such debt. HACCC Policy HACCC will terminate a family’s homeownership assistance if the family violates any of the homeowner obligations listed in Section 1, as well as for any of the reasons listed in Section 2 of form HUD-52649, Statement of Homeowner Obligations Housing Choice Homeownership Voucher Program. In making its decision to terminate homeownership assistance, HACCC will consider alternatives as described in Section 12-II.C and other factors described in Section 12-II.D. Upon consideration of such alternatives and factors, HACCC may, on a case-by-case basis, choose not to terminate assistance. Termination notices will be sent in accordance with the requirements and policies set forth in Section 12-II.F. 516 15-39 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 15-VII.O. INFORMAL HEARING [24 CFR 982.555] An informal hearing will be provided for participants who are being terminated from the Program because of the family's action or failure to act as provided in 24 CFR 982.552. The rules and procedures regarding Informal Headings set forth in the Administrative Plan, will apply. 15-VII.P. SWITCHING FROM HOA TO RENTAL ASSISTANCE: The HACCC may allow a family to switch from the homeownership assistance program to the Section 8 Housing Choice Voucher Rental Assistance Program. The family must meet the following criteria for determination of transfer: a. The family has not defaulted on a loan with the homeownership assistance program b. The family has met all of its obligations while participating in the homeownership assistance program. c. The family vacates the home and conveys the title to the appropriate designee or representative. The family must sign a Conveyance Acknowledgement Notice, indicating the requirement to completely transfer and convey the property, and failure to do so will result in termination of their rental assistance if such assistance has commenced. If the family is approved for transfer from the homeownership assistance program to rental assistance, HACCC will issue the family a rental voucher, and the family will complete the normal voucher home search process. During the period in which the family is searching for a rental unit, and, if no mortgage default has occurred, HACCC will continue to provide the family with homeownership assistance. If the family fails to transfer or convey the property, HACCC will not provide the family with rental assistance. If a rental assistance lease has commenced, HACCC will terminate the family’s Section 8 Voucher and rental assistance payments. A family member who owns an interest in the home cannot split and receive both homeownership assistance and rental assistance concurrently. Other family members must apply to the Section 8 wait list. 15-VII.Q. RECAPTURE HACCC Policy By regulation, HACCC cannot recapture any of the HCV Homeownership assistance, unless there is an act of fraud or misrepresentation of a material fact. The HCV Homeownership recapture provision does not apply to any other program funds that may be used in the transaction. 517 15-40 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 518 16-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 CHAPTER 16 PROGRAM ADMINISTRATION INTRODUCTION This chapter discusses administrative policies and practices that are relevant to the activities covered in this plan. The policies are discussed in seven parts as described below: Part I: Administrative Fee Reserve. This part describes HACCC’s policies with regard to oversight of expenditures from its administrative fee reserve. Part II: Setting Program Standards and Schedules. This part describes what payment standards are, and how they are updated, as well as how utility allowances are established and revised. Part III: Informal Reviews and Hearings. This part outlines the requirements and procedures for informal reviews and hearings, and for informal hearings regarding citizenship status. Part IV: Owner or Family Debts to HACCC. This part describes policies for recovery of monies that HACCC has overpaid on behalf of families, or to owners, and describes the circumstances under which HACCC will offer repayment agreements to owners and families. Also discussed are the consequences for failure to make payments in accordance with a repayment agreement. Part V: Section 8 Management Assessment Program (SEMAP). This part describes what the SEMAP scores represent, how they are established, and how those scores affect a PHA. Part VI: Record-Keeping. All aspects of the program involve certain types of record- keeping. This part outlines the privacy rights of applicants and participants and record retention policies HACCC will follow. Part VII: Reporting and Record Keeping for Children with Environmental Intervention Blood Lead Level. This part describes HACCC’s responsibilities for reporting, data collection, and record keeping relative to children with environmental intervention blood lead levels that are less than six years of age and are receiving HCV assistance. Part VIII: Determination of Insufficient Funding. This part describes HACCC’s policies for determining if there is sufficient funding to issue vouchers, to approve moves to higher cost units or areas, and to continue assistance for all participant families. Part IX: Violence against Women Act (VAWA): Notification, Documentation, Confidentiality. This part contains key terms used in VAWA and describes requirements related to notifying families and owners about their rights and responsibilities under VAWA; requesting documentation from victims of domestic violence, dating violence, sexual assault and stalking; and maintaining the confidentiality of information obtained from victims. 519 16-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART I: ADMINISTRATIVE FEE RESERVE [24 CFR 982.155] HACCC will maintain administrative fee reserves, or unrestricted net position (UNP) for the program to pay program administrative expenses in excess of administrative fees paid by HUD for a PHA fiscal year. HUD appropriations acts beginning with FFY 2004 have specified that administrative fee funding may be used only for activities related to the provision of HCV assistance, including related development activities. Notice PIH 2012-9 cites two examples of related development activities: unit modification for accessibility purposes and development of project-based voucher units. The notice makes clear that other activities may also qualify as related development activities. Administrative fees that remain in the UNP account from funding provided prior to 2004 may be used for “other housing purposes permitted by state and local law,” in accordance with 24 CFR 982.155(b)(1). In addition, as specified in Notice PIH 2022-18, PHAs may use administrative fee funding for both administrative and “other expenses” needed to employ strategies and undertake activities beyond regular administrative responsibilities to facilitate the successful leasing and use of housing choice vouchers by families, such as through the use of security deposit assistance and landlord recruitment and incentive payments, among other allowable expenses specified in the notice. PHAs are also permitted to use UNP for these expenses [Notice PIH 2022-18]. If a PHA has not adequately administered its HCV program, HUD may prohibit use of funds in the UNP Account and may direct HACCC to use funds in that account to improve administration of the program, for HCV HAP expenses, or to reimburse ineligible expenses in accordance with the regulation at 24 CFR 982.155(b)(3). HUD requires HACCC Board of Commissioners or other authorized officials to establish the maximum amount that may be charged against the UNP account without specific approval. HACCC Policy Expenditures from the UNP account will be made in accordance with all applicable federal requirements. Expenditures will not exceed $10,000 per occurrence without the prior approval of HACCC’s Board of Commissioners. 520 16-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART II: SETTING PROGRAM STANDARDS AND SCHEDULES 16-II.A. OVERVIEW Although many of the program’s requirements are established centrally by HUD, the HCV program’s regulations recognize that some flexibility is required to allow HACCC to adapt the program to local conditions. This part discusses how HACCC establishes and updates certain schedules and standards that are used to administer the program locally. Details about how these schedules are applied to individual families are provided in other chapters. The schedules and standards discussed here include: • Payment Standards, which dictate the maximum subsidy a family can receive (application of the payment standards is discussed in Chapter 6); and • Utility Allowances, which specify how a family’s payment should be adjusted to account for tenant-paid utilities (application of utility allowances is discussed in Chapter 6). HACCC Policy Copies of the payment standard and utility allowance schedules are available for review in HACCC’s offices during normal business hours. Families, owners, and members of the public may submit written comments on the schedules discussed in this part, at any time, for consideration during the next revision cycle. HACCC will maintain documentation to support its annual review of payment standards and utility allowance schedules. This documentation will be retained for at least 3 years. Establishing and updating the HACCC passbook rate, which is used to calculate imputed income from assets, is covered in Chapter 6 (see Section 6-I.G.). 16-II.B. PAYMENT STANDARDS [24 CFR 982.503; HCV GB, Chapter 7] The payment standard sets the maximum subsidy payment a family can receive from HACCC each month [24 CFR 982.505(a)]. Payment standards are based on fair market rents (FMRs) published annually by HUD. FMRs are set at a percentile within the rent distribution of standard quality rental housing units in each FMR area. For most jurisdictions FMRs are set at the 40th percentile of rents in the market area. HACCC must establish a payment standard schedule that establishes payment standard amounts for each FMR area within HACCC’s jurisdiction, and for each unit size within each of the FMR areas. For each unit size, HACCC may establish a single payment standard amount for the whole FMR area or may set different payment standards for different parts of the FMR area. Unless HUD grants an exception, HACCC is required to establish a payment standard within a “basic range” established by HUD – between 90 and 110 percent of the published FMR for each unit size. 521 16-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Updating Payment Standards When HUD updates its FMRs, HACCC must update its payment standards if the standards are no longer within the basic range [24 CFR 982.503(b)]. HUD may require HACCC to make further adjustments if it determines that rent burdens for assisted families in HACCC’s jurisdiction are unacceptably high [24 CFR 982.503(g)]. HACCC Policy HACCC will review the appropriateness of the payment standards on an annual basis when the new FMR is published, and at other times as determined necessary. In addition to ensuring the payment standards are always within the “basic range” HACCC will consider the following factors when determining whether an adjustment should be made to the payment standard schedule: Funding Availability: HACCC will review the budget to determine the impact projected subsidy adjustments will have on funding available for the program and the number of families served. HACCC will compare the number of families who could be served under revised payment standard amounts with the number assisted under current payment standard amounts. Rent Burden of Participating Families: Rent burden will be determined by identifying the percentage of families, for each unit size, that are paying more than 30 percent of their monthly adjusted income as the family share. When 40 percent or more of families, for any given unit size, are paying more than 30 percent of adjusted monthly income as the family share, HACCC will consider increasing the payment standard. In evaluating rent burdens, HACCC will not include families renting a larger unit than their family unit size. Quality of Units Selected: HACCC may review the quality of units selected by participant families when making the determination of the percent of income families are paying for housing, to ensure that payment standard increases are only made when needed to reach the mid-range of the market. Changes in Rent to Owner: HACCC may review a sample of the units to determine how often owners are increasing or decreasing rents and the average percent of increases/decreases by bedroom size. Unit Availability: HACCC may review the availability of units for each unit size, particularly in areas with low concentrations of poor and minority families. Lease-up Time and Success Rate: HACCC may consider the percentage of families that are unable to locate suitable housing before the voucher expires and whether families are leaving the jurisdiction to find affordable housing. Changes to payment standard amounts will be effective on January 1st of every year, or within three months of the FMR effective date, whichever is earlier. In no event will Payment Standards be 522 16-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 effective less than 90 days/3 months from the HUD published effective date of the FMR. The effective date is applicable both to HUD-required revisions and to discretionary revisions. For all other transaction, the pre-adjusted higher payment standard will remain in place as long as the family continues to reside in the same unit they were living in when the FMR was reduced. Exception Payment Standards [982.503(c)(5), Notice PIH 2018-01, FR Notice 9/27/21] A non-SAFMR PHA may establish an exception payment standard for a zip code area of up to and including 110 percent of the SAFMR determined by HUD for that zip code area. Regardless of the level of the exception payment standard compared to the metropolitan area FMRs (MAFMRs), the PHA must send an email to SAFMRs@hud.gov to notify HUD that it has adopted an exception payment standard based on the SAFMR. A PHA that adopts an exception payment standard pursuant to this authority must apply it to the entire ZIP code area, for both its HCV, and if applicable, its PBV program. For the PBV program, this means that the rent to owner may not exceed the new exception payment standard amount, provided the rent is still reasonable. A PHA that adopts an exception payment standard area must revise its briefing materials to make families aware of the exception payment standard and the area that it covers. In addition, HUD allows PHAs to establish a HUD-Veterans Affairs Supportive Housing (HUD- VASH) exception payment standard. PHAs may go up to but no higher than 120 percent of the FMR or SAFMR specifically for VASH families. PHAs who want to establish a VASH exception payment standard over 120 percent must still request a waiver from HUD (See Section 19-III.E.). Voluntary Use of Small Area FMRs [24 CFR 982.503, Notice PIH 2018-01] PHAs that administer vouchers in a metropolitan area where the adoption of SAFMRs is not required may request approval from HUD to voluntarily adopt SAFMRs. SAFMRs may be voluntarily adopted for one or more zip code areas. HACCC Policy HACCC will not voluntarily adopt the use of SAFMRs except to establish exception payment standards in certain zip code areas. Unit-by-Unit Exceptions [24 CFR 982.503(b), 24 CFR 982.505(d), Notice PIH 2010-26] Unit-by-unit exceptions to HACCC’s payment standards generally are not permitted. However, an exception may be made as a reasonable accommodation for a family that includes a person with disabilities. (See Chapter 2 for a discussion of reasonable accommodations.) This type of exception does not affect HACCC’s payment standard schedule. When needed as a reasonable accommodation, HACCC may make an exception to the payment standard without HUD approval if the exception amount does not exceed 120 percent of the applicable FMR for the unit size [24 CFR 982.503(b)]. HACCC may request HUD approval for an exception to the payment standard for a particular family if the required amount exceeds 120 percent of the FMR. 523 16-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy A family that requires a reasonable accommodation may request a higher payment standard at the time the Request for Tenancy Approval (RFTA) is submitted. The family must document the need for the exception. In order to approve an exception, or request an exception from HUD, HACCC must determine that: There is a shortage of affordable units that would be appropriate for the family; The family's shareTTP would otherwise exceed 40 percent of adjusted monthly income; and The rent for the unit is reasonable. "Success Rate" Payment Standard Amounts [24 CFR 982.503(e)] If a substantial percentage of families have difficulty finding a suitable unit, HACCC may request a “success rate payment standard” that applies to the entire jurisdiction. If approved by HUD, a success rate payment standard allows HACCC to set its payment standards at 90-110 percent of a higher FMR (the 50th, rather than the 40th percentile FMR). To support the request, HACCC must demonstrate that during the most recent 6-month period for which information is available: • Fewer than 75 percent of families who were issued vouchers became participants; • HACCC had established payment standards for all unit sizes, and for the entire jurisdiction, at 110 percent of the published FMR; and • HACCC had a policy of allowing voucher holders who made sustained efforts to locate units at least 90 days to search for a unit. Although HUD approves the success rate payment standard for all unit sizes in the FMR area, HACCC may choose to adjust the payment standard for only some unit sizes in all, or a designated part, of HACCC’s jurisdiction within the FMR area. Decreases in the Payment Standard below the Basic Range [24 CFR 982.503(d)] HACCC must request HUD approval to establish a payment standard amount that is lower than the basic range. At HUD’s sole discretion, HUD may approve establishment of a payment standard lower than the basic range. HUD will not approve a lower payment standard if the family share for more than 40 percent of program participants exceeds 30 percent of adjusted monthly income. 16-II.C. UTILITY ALLOWANCES [24 CFR 982.517] A PHA-established utility allowance schedule is used in determining family share and PHA subsidy. HACCC must maintain a utility allowance schedule for (1) all tenant-paid utilities, (2) the cost of tenant-supplied refrigerators and ranges, and (3) other tenant-paid housing services such as trash collection. 524 16-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC shall maintain four separate schedules for determining utility allowances. These allowance schedules are as follows: Single Family Dwellings - no shared walls, Duplex/Townhouse/Row House - one or more shared walls, Apartments - 3 or more units in a building and Manufactured Homes. The utility allowance schedule must be determined based on the typical cost of utilities and services paid by energy-conservative households that occupy housing of similar size and type in the same locality. In developing the schedule, HACCC must use normal patterns of consumption for the community as a whole, and current utility rates. The utility allowance must include the utilities and services that are necessary in the locality to provide housing that complies with housing quality standards. Costs for telephone, cable/satellite television, and internet services are not included in the utility allowance schedule. In the utility allowance schedule, HACCC must classify utilities and other housing services according to the following general categories: space heating; air conditioning; cooking; water heating; water; sewer; trash collection; other electric; cost of tenant-supplied refrigerator; cost of tenant-supplied range; and other specified housing services. The cost of each utility and housing service must be stated separately by unit size and type. Chapter 18 of the HCV Guidebook provides detailed guidance to HACCC about establishing utility allowance schedules. Air Conditioning An allowance for air-conditioning must be provided when the majority of housing units in the market have central air-conditioning or are wired for tenant-installed air conditioners. HACCC Policy HACCC has included an allowance for air-conditioning in its schedule. Central air- conditioning or a portable air conditioner must be present in a unit before HACCC will apply this allowance to a family’s rent and subsidy calculations. Reasonable Accommodation and Individual Relief Upon request from a family that includes a person with disabilities, the PHA must approve a utility allowance which is higher than the applicable amount on the utility allowance schedule if a higher utility allowance is needed as a reasonable accommodation to make the program accessible and usable by the family member with a disability [24 CFR 982.517(e)]. 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 (See Chapter 2 for policies regarding the request and approval of reasonable accommodations. 525 16-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Further, the PHA may grant requests for relief from charges in excess of the utility allowance on reasonable grounds, such as special needs of the elderly, ill, or residents with disabilities, or special factors not within control of the resident, as the PHA deems appropriate. The family must request the higher allowance and provide the PHA with an explanation of the need for the individual relief and information about the amount of additional allowance required [see HCV GB, p. 18-8]. PHAs should develop criteria for granting individual relief and to notify residents about the availability of individual relief, and also to notify participants about the availability of individual relief programs (sometimes referred to as “Medical Baseline discounts”) offered by the local utility company. Policies for granting exception utility allowances can be found in Section 6-III.D. of this plan. HCV program regulations require a PHA to approve a utility allowance amount higher than shown on HACCC’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, HACCC will approve an allowance for air-conditioning, even if HACCC has determined that an allowance for air-conditioning generally is not needed (See Chapter 2 for policies regarding the request and approval of reasonable accommodations). In the cases where the unit size leased exceeds the family voucher size, as a reasonable accommodation, HACCC may approve a utility allowance for the actual size of the unit leased. Utility Allowance Revisions HACCC must review its schedule of utility allowances each year and must revise the schedule if there has been a change of 10 percent or more in any utility rate since the last time the allowance for that utility was revised .[24 CFR 982.517(c)(1)]. HACCC must maintain information supporting its annual review of utility allowance and any revisions made in its utility allowance schedule. HACCC Policy In an effort to accurately reflect changing rates, new schedules may be adopted each year as needed. Based on the analysis completed or provided, if there are no significant rate changes as defined in the HUD thresholds for compliance, HACCC will leave the existing schedule in effect. Changes to utility allowance schedules will be effective 90 days in advance of the approved & adopted new schedules. The UA Schedule will apply to initial & recertification actions as of the effective date of the new schedule. If HACCC has already processed reexaminations that will be effective on or after the effective date of the new utility allowance schedules, HACCC will make retroactive adjustments to any such reexaminations if the new utility allowance schedule is higher than the one used by HACCC at the time the reexamination was originally processed. If the utility allowance is lower than the one used by HACCC at the time of the reexamination, an Interim Reexam will be completed to ensure the tenant receives 30-day notice of the increase in tenant rent portion. 526 16-9 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 New rates may not necessarily be equal to the percent of rate changes, and that the ramifications on lease-up and HAP utilization may be considered when determining the new rates. 527 16-10 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART III: INFORMAL REVIEWS AND HEARINGS 16-III.A. OVERVIEW Both applicants and participants have the right to disagree with, and appeal, certain decisions of HACCC that may adversely affect them. PHA decisions that may be appealed by applicants and participants are discussed in this section. The process for applicant appeals of PHA decisions is called the “informal review.” For participants (or applicants denied admission because of citizenship issues), the appeal process is called an “informal hearing.” PHAs are required to include informal review procedures for applicants and informal hearing procedures for participants in their administrative plans [24 CFR 982.54(d)(12) and (13)]. 16-III.B. INFORMAL REVIEWS Informal reviews are provided for program applicants. An applicant is someone who has applied for admission to the program but is not yet a participant in the program. Informal reviews are intended to provide a “minimum hearing requirement” [24 CFR 982.554] and need not be as elaborate as the informal hearing requirements [Federal Register 60, no. 127 (3 July 1995): 34690]. Decisions Subject to Informal Review [24 CFR 982.554(a) and (c)] HACCC must give an applicant the opportunity for an informal review of a decision denying assistance [24 CFR 982.554(a)]. Denial of assistance may include any or all of the following [24 CFR 982.552(a)(2)]: • Denying listing on HACCC waiting list • Denying or withdrawing a voucher • Refusing to enter into a HAP contract or approve a lease • Refusing to process or provide assistance under portability procedures Informal reviews are not required for the following reasons [24 CFR 982.554(c)]: • Discretionary administrative determinations by HACCC • General policy issues or class grievances • A determination of the family unit size under HACCC subsidy standards • A PHA determination not to approve an extension of a voucher term 528 16-11 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • A PHA determination not to grant approval of the tenancy • A PHA determination that the unit is not in compliance with the HQSNSPIRE standards • A PHA determination that the unit is not in accordance with the HQS due to family size or composition does not meet space standards • Any reasons determined by HUD for RAD conversions HACCC Policy HACCC will only offer an informal review to applicants for whom assistance is being denied. Denial of assistance includes: denying listing on the HACCC waiting list; denying or withdrawing a voucher; refusing to enter into a HAP contract or approve a lease; refusing to process or provide assistance under portability procedures. Pursuant to requirements in the RAD Statute, HUD is establishing additional procedural rights to comply with section 6 of the Act. For issues related to tenancy and termination of assistance, PBV program rules require the Project Owner to provide an opportunity for an informal hearing, as outlined in 24 CFR § 982.555. RAD will specify alternative requirements for 24 CFR § 982.555(b) in part, which outlines when informal hearings are not required, to require that: a. In addition to reasons that require an opportunity for an informal hearing given in 24 CFR § 982.555(a)(1)(i)-(vi), an opportunity for an informal hearing must be given to residents for any dispute that a resident may have with respect to a Project Owner action in accordance with the individual’s lease or the contract administrator in accordance with RAD PBV requirements that adversely affect the resident’s rights, obligations, welfare, or status. i. For any hearing required under 24 CFR § 982.555(a)(1)(i)-(vi), the contract administrator will perform the hearing, as is the current standard in the program. The hearing officer must be selected in accordance with 24 CFR § 982.555(e)(4)(i). ii. For any additional hearings required under RAD, the Project Owner will perform the hearing. b. There is no right to an informal hearing for class grievances or to disputes between residents not involving the Project Owner or contract administrator. c. The Project Owner gives residents notice of their ability to request an informal hearing as outlined in 24 CFR § 982.555(c)(1) for informal hearings that will address circumstances that fall outside of the scope of 24 CFR § 982.555(a)(1)(i)-(vi). d. The Project Owner provides opportunity for an informal hearing before an Notice to the Applicant [24 CFR 982.554(a)] HACCC must give an applicant prompt notice of a decision denying assistance. The notice must contain a brief statement of the reasons for HACCC decision and must also state that the applicant 529 16-12 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 may request an informal review of the decision. The notice must describe how to obtain the informal review. Scheduling an Informal Review HACCC Policy A request for an informal review must be made in writing and delivered to HACCC either in person or by first class mail, by the close of the business day, no later than 14 calendar14 calendar days from the date of HACCC’s denial of assistance. HACCC must schedule and send written notice of the informal review within 14 calendar14 calendar days of the family’s request. Informal Review Procedures [24 CFR 982.554(b)] The informal review must be conducted by a person other than the one who made or approved the decision under review, or a subordinate of this person. The applicant must be provided an opportunity to present written or oral objections to the decision of HACCC. Remote Informal Reviews All PHA policies and processes for remote informal reviews must be conducted in accordance with due process requirements and be in compliance with HUD regulations. HACCC Policy HACCC has the sole discretion to require that informal reviews be conducted remotely in case of local, state, or national physical distancing orders, and in cases of inclement weather or natural disaster. In addition, HACCC will conduct an informal review remotely upon request of the applicant as a reasonable accommodation for a person with a disability, if an applicant does not have childcare or transportation that would enable them to attend the informal review, or if the applicant believes an in-person informal review would create an undue health risk. HACCC will consider other reasonable requests for a remote informal review on a case-by-case basis. Conducting Remote Informal Reviews The PHA must ensure that the lack of technology or inability to use technology for remote informal reviews does not pose a disadvantage to families that may not be apparent to the PHA. The PHA should determine through a survey or other means if these barriers exist prior to conducting the remote informal review and, if the family does not have the proper technology to fully participate, either postpone the informal review or provide an alternative means of access. 530 16-13 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 As with in-person informal reviews, the PHA must provide all materials presented, whether paper or electronic, to the family prior to the remote informal review. The family must also be provided with an accessible means by which to transmit their own evidence. The PHA must ensure that the applicant has the right to hear and be heard. All PHA policies and processes for remote informal reviews must be conducted in accordance with due process requirements and be in compliance with HUD regulations at 24 CFR 982.554 and guidance specified in Notice PIH 2020-32.The PHA must ensure that the applicant has the right to hear and be heard. HACCC Policy HACCC will conduct remote informal reviews via telephone conferencing call-in or via videoconferencing. If the informal review will be conducted via videoconferencing, HACCC will ensure that all applicants, applicant representatives, HACCC representatives and the person conducting the informal review can adequately access the platform (i.e., hear, be heard, see, and be seen). If any applicant, applicant representative, HACCC representative, or person conducting the informal review is unable to effectively utilize the videoconferencing platform, the informal review will be conducted by telephone conferencing call-in. If the family is unable to adequately access the telephone conferencing call-in at any point, the remote informal review will be postponed, and an in-person alternative will be provided promptly within a reasonable time. Whether the informal review is to be conducted via videoconferencing or telephone call- in, HACCC will provide all parties login information and/or conferencing call-in information before the review. If the informal review is to be conducted remotely, HACCC will require the family to provide any documents directly relevant to the informal review at least 24 hours before the scheduled review through the mail, via email, or text. HACCC will scan and email copies of these documents to HACCC representative the same day. HACCC will ensure that all electronic information stored or transmitted with respect to the informal review is secure, including protecting personally identifiable information (PII), and meets the requirements for accessibility for persons with disabilities and persons with LEP. Informal Review Decision [24 CFR 982.554(b)] HACCC must notify the applicant of HACCC’s final decision, including a brief statement of the reasons for the final decision. HACCC Policy In rendering a decision, HACCC will evaluate the following matters: 531 16-14 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Whether or not the grounds for denial were stated factually in the notice to the family. • The validity of the grounds for denial of assistance. If the grounds for denial are not specified in the regulations, then the decision to deny assistance will be overturned. • The validity of the evidence. HACCC will evaluate whether the facts presented prove the grounds for denial of assistance. If the facts prove that there are grounds for denial, and the denial is required by HUD, HACCC will uphold the decision to deny assistance. • If the facts prove the grounds for denial, and the denial is discretionary, HACCC will consider the recommendation of the person conducting the informal review in making the final decision whether to deny assistance. HACCC will notify the applicant of the final decision, including a statement explaining the reason(s) for the decision. The notice will be mailed within 14 calendar14 calendar days of the informal review, to the applicant and their representative, if any, along with proof of mailing. If the decision to deny is overturned as a result of the informal review, processing for admission will resume. If the family fails to appear for their informal review, the denial of admission will stand and the family will be so notified. 16-III.C. INFORMAL HEARINGS FOR PARTICIPANTS [24 CFR 982.555] PHAs must offer an informal hearing for certain PHA determinations relating to the individual circumstances of a participant family. A participant is defined as a family that has been admitted to HACCC’s HCV program and is currently assisted in the program. The purpose of the informal hearing is to consider whether HACCC’s decisions related to the family’s circumstances are in accordance with the law, HUD regulations and PHA policies. HACCC is not permitted to terminate a family’s assistance until the time allowed for the family to request an informal hearing has elapsed, and any requested hearing has been completed. Termination of assistance for a participant may include any or all of the following: • Refusing to enter into a HAP contract or approve a lease • Terminating housing assistance payments under an outstanding HAP contract • Refusing to process or provide assistance under portability procedures Decisions Subject to Informal Hearing Circumstances for which HACCC must give a participant family an opportunity for an informal hearing are as follows: • Violation(s) of Family Obligations. 532 16-15 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Failure to pass Criminal Background Check • A determination of the family’s annual or adjusted income, and the use of such income to compute the housing assistance payment • A determination of the appropriate utility allowance (if any) for tenant-paid utilities from HACCC utility allowance schedule • A determination of the family unit size under HACCC’s subsidy standards • A determination to terminate assistance for a participant family because of the family’s actions or failure to act • A determination to terminate assistance because the participant has been absent from the assisted unit for longer than the maximum period permitted under HACCC Policy and HUD rules • A determination to terminate a family’s Family Self Sufficiency contract, withhold supportive services, or propose forfeiture of the family’s escrow account [24 CFR 984.303(i)] Circumstances for which an informal hearing is not required are as follows: • Discretionary administrative determinations by HACCC • General policy issues or class grievances • Establishment of HACCC schedule of utility allowances for families in the program • A PHA determination not to approve an extension of a voucher term • A PHA determination not to approve a unit or tenancy • A PHA determination that a unit selected by the applicant is not in compliance with the HQSNSPIRE standards • A PHA determination that the unit is not in accordance with HQSspace standards because of family size • A determination by HACCC to exercise or not to exercise any right or remedy against an owner under a HAP contract HACCC Policy HACCC will only offer participants the opportunity for an informal hearing when required to by the regulations. Remote Informal Hearings The PHA’s essential responsibility is to ensure informal hearings meet the requirements of due process and comply with HUD regulations. Therefore, all PHA policies and processes for remote informal hearings will be conducted in accordance with due process requirements and will be in compliance with HUD regulations HACCC Policy 533 16-16 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC has the sole discretion to require that informal hearings be conducted remotely in case of local, state, or national physical distancing orders, and in cases of inclement weather or natural disaster. In addition, HACCC will conduct an informal hearing remotely upon request as a reasonable accommodation for a person with a disability, if a participant does not have childcare or transportation that would enable them to attend the informal hearing, or if the participant believes an in-person hearing would create an undue health risk. HACCC will consider other reasonable requests for a remote informal hearing on a case-by-case basis. Conducting Informal Hearings Remotely In conducting any informal hearing remotely, HACCC shall ensure due process and that all parties are able to have full access to the hearing. HACCC Policy HACCC will conduct remote informal hearings via telephone conferencing call-in or via videoconferencing. If the informal hearing will be conducted via videoconferencing, HACCC will ensure that all participants, participant representatives, advocates, witnesses, HACCC representatives, and the hearing officer can adequately access the platform (i.e., hear, be heard, see, and be seen). If any participant, representative, advocate, witness, HACCC representative, or hearing officer is unable to effectively utilize the videoconferencing platform, the informal hearing will be conducted by telephone conferencing call-in. Whether the informal hearing is to be conducted via videoconferencing or telephone call- in, HACCC will provide all parties login information and/or telephone call-in information before the hearing. Informal Hearing Procedures Notice to the Family [24 CFR 982.555(c)] When HACCC makes a decision that is subject to informal hearing procedures, HACCC must inform the family of its right to an informal hearing at the same time that it informs the family of the decision. For decisions related to the family’s annual or adjusted income, the determination of the appropriate utility allowance, and the determination of the family unit size, HACCC must notify the family that they may ask for an explanation of the basis of the determination, and that if they do not agree with the decision, they may request an informal hearing on the decision. For decisions related to the termination of the family’s assistance, or the denial of a family’s request for an exception to HACCC’s subsidy standards, the notice must contain a brief statement of the reasons for the decision, a statement that if the family does not agree with the decision, the family 534 16-17 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 may request an informal hearing on the decision, and a statement of the deadline for the family to request an informal hearing. HACCC Policy In cases where HACCC makes a decision for which an informal hearing must be offered, the notice to the family will include all of the following: • The proposed action or decision of HACCC. • A brief statement of the reasons for the decision, including the regulatory reference. • The date the proposed action will take place. • A statement that the family may be represented by legal counsel or assisted by other trusted individuals, i.e., social workers. • A statement that file information is available for review upon 48 hours advance notice before the hearing. • A statement of the family’s right to an explanation of the basis for HACCC’s decision. • A deadline for the family to request the informal hearing. • To whom the hearing request should be addressed. • A copy *of HACCC’s hearing procedures. • That the family may request a remote informal hearing If HACCC will require that the hearing be conducted remotely, at the time the notice is sent to the family informing them of the right to request an informal hearing, the family will be notified that the informal hearing will be conducted remotely. The family will be informed of the processes involved in a remote informal hearing and that HACCC will provide technical assistance, if needed, before the informal hearing. Scheduling an Informal Hearing [24 CFR 982.555(d)] When an informal hearing is required, HACCC must proceed with the hearing in a reasonably expeditious manner upon the request of the family. HACCC Policy A request for an informal hearing must be made in writing and delivered to HACCC either in person or by first class mail, by the close of the business day, no later than 14 calendar days from the date of HACCC’s decision or notice to terminate assistance. 535 16-18 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC must schedule and send written notice of the informal hearing to the family within 14 calendar days of the family’s request The family may request to reschedule a hearing for good cause, or if it is needed as a reasonable accommodation for a person with disabilities. Good cause is defined as an unavoidable conflict which seriously affects the health, safety or welfare of the family. Requests to reschedule a hearing must be made orally or in writing prior to the hearing date. At its discretion, HACCC may request documentation of the “good cause” prior to rescheduling the hearing. If the family does not appear within 20 minutes of the scheduled time and was unable to reschedule the hearing in advance due to the nature of the conflict, the family must contact HACCC within 24 hours of the scheduled hearing date, excluding weekends and holidays. HACCC will reschedule the hearing only if the family can show good cause for the failure to appear, or if it is needed as a reasonable accommodation for a person with disabilities. If the family cannot show good cause for the failure to appear, or a rescheduling is not needed as a reasonable accommodation, the PHA’s decision will stand. Pre-Hearing Right to Discovery [24 CFR 982.555(e)] Participants and HACCC are permitted pre-hearing discovery rights. The family must be given the opportunity to examine before the hearing any PHA documents that are directly relevant to the hearing. The family must be allowed to copy any such documents at their own expense. If HACCC does not make the document available for examination on request of the family, HACCC may not rely on the document at the hearing. For the purpose of informal hearings, documents include records and regulations. HACCC Policy The family will be allowed to copy any documents related to the hearing at a cost of .15 per page. The family must request discovery of HACCC documents no later than two full business days prior to the scheduled hearing date (e.g. if the hearing is on Thursday, then by close of business on Monday of the same week) If the hearing will be conducted remotely, HACCC will compile a hearing packet, consisting of all documents HACCC intends to produce at the informal hearing. HACCC will mail copies of the hearing packet to the family, the family’s representatives, if any, and the hearing officer at least three days before the scheduled remote informal hearing. The original hearing packet will be in the possession of HACCC representative and retained by HACCC. Documents will be shared electronically whenever possible The PHA hearing procedures may provide that the PHA must be given the opportunity to examine at the PHA offices before the hearing any family documents that are directly relevant to the hearing. The PHA must be allowed to copy any such document at the PHA’s expense. If the family does not 536 16-19 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 make the document available for examination on request of the PHA, the family may not rely on the document at the hearing. HACCC Policy For in-person hearings, HACCC will not require pre-hearing discovery by HACCC of family documents directly relevant to the hearing. If the informal hearing is to be conducted remotely, HACCC will require the family to provide any documents directly relevant to the informal hearing at least 24 hours before the scheduled hearing. HACCC will scan and email copies of these documents to the hearing officer and HACCC representative the same day. Documents will be shared electronically whenever possible. Participant’s Right to Bring Counsel [24 CFR 982.555(e)(3)] At its own expense, the family may be represented by a lawyer or other representative at the informal hearing. Informal Hearing Officer [24 CFR 982.555(e)(4)] Informal hearings will be conducted by a person or persons approved by HACCC, other than the person who made or approved the decision or a subordinate of the person who made or approved the decision. Attendance at the Informal Hearing HACCC Policy Hearings may be attended by a hearing officer and the following applicable persons: x A PHA representative(s) and any witnesses for HACCC x The participant and any witnesses for the participant x The participant’s counsel or other representative x Any other person approved by HACCC as a reasonable accommodation for a person with a disability Conduct at Hearings The person who conducts the hearing may regulate the conduct of the hearing in accordance with HACCC’s hearing procedures [24 CFR 982.555(4)(ii)]. HACCC Policy 537 16-20 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The hearing officer is responsible to manage the order of business and to ensure that hearings are conducted in a professional and businesslike manner. Attendees are expected to comply with all hearing procedures established by the hearing officer and guidelines for conduct. Any person demonstrating disruptive, abusive or otherwise inappropriate behavior will be excused from the hearing at the discretion of the hearing officer. Evidence [24 CFR 982.555(e)(5)] HACCC and the family must be given the opportunity to present evidence and question any witnesses. In general, all evidence is admissible at an informal hearing. Evidence may be considered without regard to admissibility under the rules of evidence applicable to judicial proceedings. HACCC Policy Any evidence to be considered by the hearing officer must be presented at the time of the hearing. There are four categories of evidence. x Oral evidence: the testimony of witnesses x x Documentary evidence: a writing which is relevant to the case, for example, a letter written to HACCC. Writings include all forms of recorded communication or representation, including letters, words, pictures, sounds, videotapes or symbols or combinations thereof. x Demonstrative evidence: Evidence created specifically for the hearing and presented as an illustrative aid to assist the hearing officer, such as a model, a chart or other diagram. x Real evidence: A tangible item relating directly to the case. Hearsay Evidence is evidence of a statement that was made other than by a witness while testifying at the hearing and that is offered to prove the truth of the matter. Even though evidence, including hearsay, is generally admissible, hearsay evidence alone cannot be used as the sole basis for the hearing officer’s decision. If either HACCC or the family fail to comply with the discovery requirements described above, the hearing officer will refuse to admit such evidence. Other than the failure of a party to comply with discovery, the hearing officer has the authority to overrule any objections to evidence. Hearing Officer’s Decision [24 CFR 982.555(e)(6)] The person who conducts the hearing must issue a written decision, stating briefly the reasons for the decision. Factual determinations relating to the individual circumstances of the family must be based on a preponderance of evidence presented at the hearing. A copy of the hearing must be furnished promptly to the family. 538 16-21 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy In rendering a decision, the hearing officer will consider the following matters: x PHA Notice to the Family: The hearing officer will determine if the reasons for HACCC’s decision are factually stated in the Notice. x Discovery: The hearing officer will determine if HACCC and the family were given the opportunity to examine any relevant documents in accordance with HACCC Policy. x PHA Evidence to Support HACCC Decision: The evidence consists of the facts presented. Evidence is not conclusion and it is not argument. The hearing officer will evaluate the facts to determine if they support HACCC’s conclusion. x Validity of Grounds for Termination of Assistance (when applicable): The hearing officer will determine if the termination of assistance is for one of the grounds specified in the HUD regulations and PHA policies. If the grounds for termination are not specified in the regulations or in compliance with PHA policies, then the decision of HACCC will be overturned. The hearing officer will issue a written decision to the family and HACCC no later than 14 calendar days after the hearing. The report will contain the following information: Hearing information: x Name of the participant; x Date, time and place of the hearing; x Name of the hearing officer; x Name of HACCC representative; and x Name of family representative (if any). Background: A brief, impartial statement of the reason for the hearing. Summary of the Evidence: The hearing officer will summarize the testimony of each witness and identify any documents that a witness produced in support of their testimony and that are admitted into evidence. Findings of Fact: The hearing officer will include all findings of fact, based on a preponderance of the evidence. 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. 539 16-22 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Conclusions: The hearing officer will render a conclusion derived from the facts that were found to be true by a preponderance of the evidence. The conclusion will result in a determination of whether these facts uphold HACCC’s decision. Order: The hearing report will include a statement of whether HACCC’s decision is upheld or overturned. If it is overturned, the hearing officer will instruct HACCC to change the decision in accordance with the hearing officer’s determination. In the case of termination of assistance, the hearing officer will instruct HACCC to restore the participant’s program status. Procedures for Rehearing or Further Hearing HACCC Policy The hearing officer may ask the family for additional information and/or might adjourn the hearing in order to reconvene at a later date, before reaching a decision. If the family misses an appointment or deadline ordered by the hearing officer, the action of HACCC will take effect and another hearing will not be granted. In addition, within 15 business days after the date the hearing officer’s report is mailed to HACCC and the participant, HACCC or the participant may request a rehearing or a further hearing. Such request must be made in writing and postmarked or hand-delivered to the Executive Director or their designee within the 15-business-day period. The request must demonstrate cause, supported by specific references to the hearing officer’s report, why the request should be granted. A rehearing or a further hearing may be requested for the purpose of rectifying any obvious mistake of law made during the hearing or any obvious injustice not known at the time of the hearing. It shall be within the sole discretion of HACCC to grant or deny the request for further hearing or rehearing. A further hearing may be limited to written submissions by the parties, in the manner specified by the Executive Director or their designee. The decision of the Executive Director or their designee shall be final. 14 calendar days PHA Notice of Final Decision [24 CFR 982.555(f)] HACCC is not bound by the decision of the hearing officer for matters in which HACCC is not required to provide an opportunity for a hearing, decisions that exceed the authority of the hearing officer, decisions that conflict with or contradict HUD regulations, requirements, or are otherwise contrary to federal, state, or local laws. If HACCC determines it is not bound by the hearing officer’s decision in accordance with HUD regulations, HACCC must promptly notify the family of the determination and the reason for the determination. 540 16-23 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy HACCC will mail a “Notice of Final Decision” including the hearing officer’s report to the participant and their representative. This notice will be sent by first-class mail, postage pre- paid, with an affidavit of mailing enclosed. The participant will be mailed the original “Notice of Final Decision” and a copy of the proof of mailing. A copy of the “Notice of Final Decision” along with the original proof of mailing will be maintained in HACCC’s file. 16-III.D. HEARING AND APPEAL PROVISIONS FOR NONCITIZENS [24 CFR 5.514] Denial or termination of assistance based on immigration status is subject to special hearing and notice rules. Applicants who are denied assistance due to immigration status are entitled to an informal hearing, not an informal review. Assistance to a family may not be delayed, denied, or terminated on the basis of immigration status at any time prior to a decision under the United States Citizenship and Immigration Services (USCIS) appeal process. Assistance to a family may not be terminated or denied while HACCC hearing is pending, but assistance to an applicant may be delayed pending the completion of the informal hearing. A decision against a family member, issued in accordance with the USCIS appeal process or HACCC informal hearing process, does not preclude the family from exercising the right, that may otherwise be available, to seek redress directly through judicial procedures. Notice of Denial or Termination of Assistance [24 CFR 5.514(d)] The notice of denial or termination of assistance for noncitizens must advise the family: • That financial assistance will be denied or terminated and provide a brief explanation of the reasons for the proposed denial or termination of assistance. • The family may be eligible for proration of assistance. • In the case of a participant, the criteria and procedures for obtaining relief under the provisions for preservation of families [24 CFR 5.514 and 5.518]. • That the family has a right to request an appeal to the USCIS of the results of secondary verification of immigration status and to submit additional documentation or explanation in support of the appeal. • That the family has a right to request an informal hearing with HACCC either upon completion of the USCIS appeal or in lieu of the USCIS appeal. • For applicants, assistance may not be delayed until the conclusion of the USCIS appeal process, but assistance may be delayed during the period of the informal hearing process. 541 16-24 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 USCIS Appeal Process [24 CFR 5.514(e)] When HACCC receives notification that the USCIS secondary verification failed to confirm eligible immigration status, HACCC must notify the family of the results of the USCIS verification. The family will have 30 days from the date of the notification to request an appeal of the USCIS results. The request for appeal must be made by the family in writing directly to the USCIS. The family must provide HACCC with a copy of the written request for appeal and the proof of mailing. HACCC Policy HACCC will notify the family in writing of the results of the USCIS secondary verification within 14 calendar days of receiving the results. The family must provide HACCC with a copy of the written request for appeal and proof of mailing within 14 calendar days of sending the request to the USCIS. The family must forward to the designated USCIS office any additional documentation or written explanation in support of the appeal. This material must include a copy of the USCIS document verification request (used to process the secondary request) or such other form specified by the USCIS, and a letter indicating that the family is requesting an appeal of the USCIS immigration status verification results. The USCIS will notify the family, with a copy to HACCC, of its decision. When the USCIS notifies HACCC of the decision, HACCC must notify the family of its right to request an informal hearing. HACCC will send written notice to the family of its right to request an informal hearing within 14 calendar days of receiving notice of the USCIS decision regarding the family’s immigration status. Informal Hearing Procedures for Applicants [24 CFR 5.514(f)] After notification of the USCIS decision on appeal, or in lieu of an appeal to the USCIS, the family may request that HACCC provide a hearing. The request for a hearing must be made either within 30 days of receipt of HACCC notice of denial, or within 30 days of receipt of the USCIS appeal decision. The informal hearing procedures for applicant families are described below. Informal Hearing Officer HACCC must provide an informal hearing before an impartial individual, other than a person who made or approved the decision under review, and other than a person who is a subordinate of the person who made or approved the decision. See Section 16-III.C. for a listing of positions that serve as informal hearing officers. Evidence 542 16-25 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The family must be provided the opportunity to examine and copy at the family’s expense, at a reasonable time in advance of the hearing, any documents in the possession of HACCC pertaining to the family’s eligibility status, or in the possession of the USCIS (as permitted by USCIS requirements), including any records and regulations that may be relevant to the hearing. HACCC Policy The family will be allowed to copy any documents related to the hearing at a cost of .15 per page. The family must request discovery of PHA documents no later than two full business days prior to the hearing (e.g. if the hearing is on Thursday, then by close of business on Monday of the same week) The family must be provided the opportunity to present evidence and arguments in support of eligible status. Evidence may be considered without regard to admissibility under the rules of evidence applicable to judicial proceedings. The family must also be provided the opportunity to refute evidence relied upon by HACCC, and to confront and cross-examine all witnesses on whose testimony or information HACCC relies. Representation and Interpretive Services The family is entitled to be represented by an attorney or other designee, at the family’s expense, and to have such person make statements on the family’s behalf. The family is entitled request an interpreter. Upon request, the PHA will provide competent interpretation services, free of charge. Recording of the Hearing The family is entitled to have the hearing recorded by digital audio recording. HACCC may, but is not required to, provide a transcript of the hearing. HACCC Policy HACCC will provide a transcript of an digital audio recording of the hearing to the family or family’s counsel upon payment of the actual cost of the transcript. Hearing Decision HACCC must provide the family with a written final decision, based solely on the facts presented at the hearing, within 14 calendar days of the date of the informal hearing. The decision must state the basis for the decision. Informal Hearing Procedures for Residents [24 CFR 5.514(f)] After notification of the USCIS decision on appeal, or in lieu of an appeal to the USCIS, the family may request that HACCC provide a hearing. The request for a hearing must be made either within 543 16-26 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 30 days of receipt of HACCC notice of termination, or within 30 days of receipt of the USCIS appeal decision. For the informal hearing procedures that apply to participant families whose assistance is being terminated based on immigration status, see Section 16-III.C. Retention of Documents [24 CFR 5.514(h)] HACCC must retain for a minimum of 5 years the following documents that may have been submitted to HACCC by the family, or provided to HACCC as part of the USCIS appeal or HACCC informal hearing process: • The application for assistance • The form completed by the family for income reexamination • Photocopies of any original documents, including original USCIS documents • The signed verification consent form • The USCIS verification results • The request for a USCIS appeal • The final USCIS determination • The request for an informal hearing • The final informal hearing decision 544 16-27 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART IV: OWNER OR FAMILY DEBTS TO HACCC 16-IV.A. OVERVIEW PHAs are required to include in the administrative plan, policies concerning repayment by a family of amounts owed to HACCC [24 CFR 982.54]. If the family breaches an agreement with the PHA to pay amounts owed to a PHA, or amounts paid to an owner by a PHA, the PHA, at its discretion, may offer a family the opportunity to enter an agreement to pay amounts owed to a PHA or amounts paid to an owner by a PHA. The PHA may prescribe the terms of the agreement [24 CFR 982.552(c)(1)(vii). This part describes HACCC’s policies for recovery of monies owed to HACCC by families or owners. HACCC Policy When an action or inaction of an owner or participant results in the overpayment of housing assistance, HACCC holds the owner or participant liable to return any overpayments to HACCC. HACCC will enter into repayment agreements in accordance with the policies contained in this part as a means to recover overpayments. 16-IV.B. REPAYMENT POLICY Owner Debts to HACCC HACCC Policy Any amount due to HACCC by an owner must be repaid by the owner within 30 days of HACCC determination of the debt. If the owner fails to repay the debt within the required time frame and is entitled to future HAP payments, HACCC will reduce the future HAP payments by the amount owed until the debt is paid in full. If the owner is not entitled to future HAP payments HACCC may, in its sole discretion, offer to enter into a repayment agreement on terms prescribed by HACCC. If the owner refuses to repay the debt, does not enter into a repayment agreement, or breaches a repayment agreement, HACCC will ban the owner from future participation in the program and pursue other modes of collection. When an owner or participant refuses to repay monies owed to HACCC, HACCC will utilize other available collection alternatives including, but not limited to, the following: • Payment abatements or reductions 545 16-28 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Collection agencies • Credit bureaus • Small claims court • Civil lawsuit • County real property tax lien • State income tax set-off program Family Debts to HACCC Families are required to reimburse the PHA if they were charged less rent than required because the family either underreported or failed to report income. PHAs are required to determine retroactive rent amounts as far back as the PHA has documentation of family unreported income [Notice PIH 2018-18]. HACCC Policy Any amount owed to HACCC by an HCV family must be repaid by the family. If the family is unable to repay the debt within 30 days, HACCC will offer to enter into a repayment agreement in accordance with the policies below. If the family refuses to repay the debt, does not enter into a repayment agreement, or breaches a repayment agreement, HACCC will terminate assistance in accordance with the policies in Chapter 12 and pursue other modes of collection. Refusal to Enter into an Agreement If the family refuses to repay the debt, does not enter into a repayment agreement, or breaches a repayment agreement, the PHA must terminate assistance [Notice PIH 2018-18]. HACCC Policy When a family refuses to repay monies owed to the PHA, in addition to termination of program assistance, the PHA will utilize other available collection alternatives including, but not limited to, the following: x Collection agencies x Small claims court x Civil lawsuit x State income tax set-off program Repayment Agreement [24 CFR 792.103] The term repayment agreement refers to a formal written document signed by a tenant or owner and provided to HACCC in which a tenant or owner acknowledges a debt in a specific amount and agrees to repay the amount due at specific time periods. 546 16-29 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 General Repayment Agreement Guidelines for Families Down Payment Requirement HACCC Policy Before executing a repayment agreement with a family, HACCC will generally require a down payment of 10 percent of the total amount owed. If the family can provide evidence satisfactory to HACCC that a down payment of 10 percent would impose an undue hardship, HACCC may, in its sole discretion, require a lesser percentage or waive the requirement. Payment Thresholds Notice PIH 2018-18 recommends that the total amount that a family must pay each month—the family’s monthly share of rent plus the monthly debt repayment amount—should not exceed 40 percent of the family’s monthly adjusted income. However, a family may already be paying 40 per cent or more of its monthly adjusted income in rent. Moreover, Notice PIH 2018-18 acknowledges that PHAs have the discretion to establish “thresholds and policies” for repayment agreements with families [24 CFR 982.552(c)(1)(vii)]. HACCC Policy • HACCC has established the following thresholds for repayment of debts: • Amounts between $9,000 and $12,000 must be repaid within 60 months. • Amounts between $6,000 and $8,999 must be repaid within 48 months. • Amounts between $3,000 and $5,999 must be repaid within 36 months. • Amounts between $2,000 and $2,999 must be repaid within 30 months. • Amounts between $1,000 and $1,999 must be repaid within 24 months. • Amounts under $1,000 must be repaid within 12 months. Larger amounts will be considered on a case-by-case basis. However, HACCC will usually not enter into repayment agreements for such large amounts. If a family can provide evidence satisfactory to HACCC that the threshold applicable to the family’s debt would impose an undue hardship, HACCC may, in its sole discretion, determine that a lower monthly payment amount is reasonable. In making its determination, HACCC will consider all relevant information, including the following: • The amount owed by the family to HACCC • The reason for the debt, including whether the debt was the result of family action/inaction or circumstances beyond the family’s control • The family’s current and potential income and expenses • The family’s current family share, as calculated under 24 CFR 982.515 547 16-30 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • The family’s history of meeting its financial responsibilities Execution of the Agreement All repayment agreements must be in writing, dated, and signed by both the family and the PHA [Notice PIH 2018-18]. HACCC Policy Any repayment agreement between HACCC and a family must be signed and dated by HACCC and by the head of household and spouse/cohead (if applicable). All residual household members will be responsible for continuation of payment to the HA in the absence of the head or the spouse. Due Dates HACCC Policy All payments are due by the close of business on the 15th day of the month. If the 15th does not fall on a business day, the due date is the close of business on the first business day after the 15th. Late or Missed Payments HACCC Policy If a payment is not received by the end of the business day on the date due, and prior approval for the missed payment has not been given by HACCC, HACCC will send the family a delinquency notice giving the family 14 calendar days to make the late payment. If the payment is not received by the due date of the delinquency notice, it will be considered a breach of the agreement and HACCC will terminate assistance in accordance with the policies in Chapter 12. If a family receives three delinquency notices for unexcused late payments in a 12-month period, the repayment agreement will be considered in default, and HACCC will terminate assistance in accordance with the policies in Chapter 12. No Offer of Repayment Agreement HACCC Policy HACCC generally will not enter into a repayment agreement with a family if there is already a repayment agreement in place with the family or if the amount owed by the family exceeds the federal or state threshold for criminal prosecution. Repayment Agreements Terms 548 16-31 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 All repayment agreements must be in writing, dated, signed by both the family and the PHA, include the total retroactive rent amount owed, any amount of lump sum payment made at time of execution, if applicable, and the monthly repayment amount. Notice PIH 2018-18 requires certain provisions, at a minimum, be included in any repayment agreement involving amounts owed by a family because it underreported or failed to report income: • A reference to the items in the family briefing packet that state the family’s obligation to provide true and complete information at every reexamination and the grounds on which HACCC may terminate assistance because of a family’s action or failure to act • A statement clarifying that each month the family not only must pay to HACCC the monthly payment amount specified in the agreement but must also pay to the owner the family’s monthly share of the rent to owner • A statement that the terms of the repayment agreement may be renegotiated if the family’s income decreases or increases • A statement that late or missed payments constitute default of the repayment agreement and may result in termination of assistance. 549 16-32 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART V: SECTION 8 MANAGEMENT ASSESSMENT PROGRAM (SEMAP) 16-V.A. OVERVIEW The Section 8 Management Assessment Program (SEMAP) is a tool that allows HUD to measure PHA performance in key areas to ensure program integrity and accountability. SEMAP scores translate into a rating for each PHA as high performing, standard, or troubled. Scores on individual SEMAP indicators, as well as overall SEMAP ratings, can affect HACCC in several ways. • High-performing PHAs can be given a competitive advantage under notices of funding availability [24 CFR 985.103]. • PHAs with deficiencies on one or more indicators are required to correct the deficiencies and report to HUD [24 CFR 985.106]. • PHAs with an overall rating of “troubled” are subject to additional HUD oversight, including on- site reviews by HUD staff, a requirement to develop a corrective action plan, and monitoring to ensure the successful implementation of the corrective action plan. In addition, PHAs that are designated “troubled” may not use any part of the administrative fee reserve for other housing purposes [24 CFR 985.107]. • HUD may determine that a PHA's failure to correct identified SEMAP deficiencies or to prepare and implement a corrective action plan required by HUD constitutes a default under the ACC [24 CFR 985.109]. 16-V.B. SEMAP CERTIFICATION [24 CFR 985.101] PHAs must submit the HUD-required SEMAP certification form within 60 calendar days after the end of its fiscal year. The certification must be approved by PHA board resolution and signed by HACCC executive director. If HACCC is a unit of local government or a state, a resolution approving the certification is not required, and the certification must be executed by the Section 8 program director. PHAs with less than 250 voucher units are only required to be assessed every other PHA fiscal year. HUD will assess such PHAs annually if HACCC elects to have its performance assessed on an annual basis; or is designated as “troubled” [24 CFR 985.105]. Failure of a PHA to submit its SEMAP certification within the required time frame will result in an overall performance rating of “troubled.” A PHA’s SEMAP certification is subject to HUD verification by an on-site confirmatory review at any time. Upon receipt of HACCC’s SEMAP certification, HUD will rate HACCC’s performance under each SEMAP indicator in accordance with program requirements. 550 16-33 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HUD Verification Method Several of the SEMAP indicators are scored based on a review of a quality control sample selected for this purpose. HACCC or the Independent Auditor must select an unbiased sample that provides an adequate representation of the types of information to be assessed, in accordance with SEMAP requirements [24 CFR 985.2]. If the HUD verification method for the indicator relies on data in the Form-50058 module (formerly known as MTCS) in the PIH Information Center (PIC), and HUD determines that those data are insufficient to verify HACCC's certification on the indicator due to HACCC's failure to adequately report family data, HUD will assign a zero rating for the indicator [24 CFR 985.3]. 16-V.C. SEMAP INDICATORS [24 CFR 985.3 and form HUD-52648] The table below lists each of the SEMAP indicators, contains a description of each indicator, and explains the basis for points awarded under each indicator. A PHA that expends less than $300,000 in Federal awards and whose Section 8 programs are not audited by an independent auditor, is not rated under SEMAP indicators 1-7. SEMAP Indicators Indicator 1: Selection from the waiting list Maximum Score: 15 • This indicator shows whether the PHA has written policies in its administrative plan for selecting applicants from the waiting list and whether the PHA follows these policies when selecting applicants from the waiting list. • Points are based on the percent of families that are selected from the waiting list in accordance with the PHA’s written policies, according to the PHA’s quality control samples. Indicator 2: Rent reasonableness Maximum Score: 20 • This indicator shows whether the PHA has and implements a reasonable written method to determine and document for each unit leased that the rent to owner is reasonable based on current rents for comparable unassisted units at the required times. • Points are based on the percent of units for which the PHA follows its written method to determine reasonable rent and has documented its determination that the rent to owner is reasonable, according to the PHA’s quality control sample. 551 16-34 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Indicator 3: Determination of adjusted income Maximum Score: 20 • This indicator measures whether the PHA verifies and correctly determines adjusted income for each assisted family, and where applicable, uses the appropriate utility allowances for the unit leased in determining the gross rent. • Points are based on the percent of files that are calculated and verified correctly, according to the PHA’s quality control sample. Indicator 4: Utility allowance schedule Maximum Score: 5 • This indicator shows whether the PHA maintains an up-to-date utility allowance schedule. • Points are based on whether the PHA has reviewed the utility allowance schedule and adjusted it when required, according to the PHA’s certification. Indicator 5: NSPIREHQS quality control inspections Maximum Score: 5 • This indicator shows whether a PHA supervisor reinspects a sample of units under contract during the PHA fiscal year, which meets the minimum sample size requirements for quality control of NSPIREHQS inspections. • • Points are based on whether the required quality control reinspections were completed, according to the PHA’s certification. Indicator 6: NSPIREHQS enforcement Maximum Score: 10 • This indicator shows whether, following each HQS inspection of a unit under contract where the unit fails to meet HQSNSPIRE standards, any cited life-threatening deficiencies are corrected within 24 hours from the inspection and all other deficiencies are corrected within no more than 30 calendar days from the inspection or any PHA-approved extension. • • Points are based on whether the PHA corrects all HQS deficiencies in accordance with required time frames, according to the PHA’s certification. 552 16-35 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Indicator 7: Expanding housing opportunities Maximum Points: 5 • Only applies to PHAs with jurisdiction in metropolitan FMR areas. This indicator shows whether the PHA has adopted and implemented a written policy to encourage participation by owners of units located outside areas of poverty or minority concentration; informs voucher holders of the full range of areas where they may lease units both inside and outside the PHA’s jurisdiction; and supplies a list of landlords or other parties who are willing to lease units or help families find units, including units outside areas of poverty or minority concentration defined as a neighborhood in which any one of the following statistical conditions exists: (1) The percentage of persons of a particular racial or ethnic minority is at least 20 points higher than that minority's percentage in the housing market (County) as a whole; (2) The neighborhood's total percentage of minority persons is at least 20 points higher than the total percentage of minorities for the housing market area as a whole; or (3) In the case of a metropolitan area, the neighborhood's total percentage of minority persons exceeds 50 percent of its population. • Points are based on whether the PHA has adopted and implemented written policies in accordance with SEMAP requirements, according to the PHA’s certification. Indicator 8: FMR limit and payment standards Maximum Points: 5 points • This indicator shows whether the PHA has adopted a payment standard schedule that establishes payment standard amounts by unit size for each FMR area in the PHA’s jurisdiction, that are within the basic range of 90 to 110 percent of the published FMR. • Points are based on whether the PHA has appropriately adopted a payment standard schedule(s), according to the PHA’s certification. Indicator 9: Annual reexaminations Maximum Points: 10 • This indicator shows whether the PHA completes a reexamination for each participating family at least every 12 months. • Points are based on the percent of reexaminations that are less than two months overdue, according to data from PIC. Indicator 10: Correct tenant rent calculations Maximum Points: 5 • This indicator shows whether the PHA correctly calculates the family’s share of the rent to owner. • Points are based on the percent of correct calculations of family share of the rent, according to data from PIC. 553 16-36 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Indicator 11: Pre-contract HQS inspections Maximum Points: 5 • This indicator shows whether newly leased units pass HQS inspection on or before the effective date of the assisted lease and HAP contract. • Points are based on the percent of newly leased units that passed HQS inspection on or before the effective date of the lease and HAP contract, according to data from PIC. Indicator 12: AnnualBiennial HQS inspections Maximum Points: 10 • This indicator shows whether the PHA inspects each unit under contract at least biennially. • Points are based on the percent of biennial HQS inspections of units under contract that are more than 2 months overdue, according to data from PIC. Indicator 13: Lease-up Maximum Points: 20 points • This indicator shows whether the PHA enters HAP contracts for at least 98 percent of the number of the PHA’s baseline voucher units in the ACC for the calendar year ending on or before the PHA’s fiscal year, or whether the PHA has expended at least 98 percent of its allocated budget authority for the same calendar year. The PHA can receive 15 points if 95 to 97 percent of vouchers are leased or budget authority is utilized. Points are based on utilization of vouchers and HAP expenditures as reported in the voucher management system (VMS) for the most recently completed calendar year. Indicator 14: Family self-sufficiency (FSS) enrollment and escrow account balances Maximum Points: 10 • Only applies to PHAs with mandatory FSS programs. • This indicator shows whether the PHA has enrolled families in the FSS program as required and measures the percent of current FSS participants that have had increases in earned income which resulted in escrow account balances. • • Points are based on the percent of mandatory FSS slots that are filled and the percent of families with escrow account balances, according to data from PIC. 554 16-37 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Success Rate of Voucher Holders Maximum Points: 5 • Only applies to PHAs that have received approval to establish success rate payment standard amounts and isn’t effective until the second full PHA fiscal year following the date of HUD approval of success rate payment standard amounts. • This indicator shows whether voucher holders were successful in leasing units with voucher assistance. • Points are based on the percent of families that were issued vouchers, and that became participants in the voucher program. Deconcentration Bonus Indicator Maximum Points: 5 • Submission of data for this indicator is mandatory for a PHA using one or more payment standard amount(s) that exceed(s) 100 percent of the published FMR set at the 50- percentile rent, starting with the second full PHA fiscal year following initial use of payment standard amounts based on the FMRs set at the 50th percentile. • Additional points are available to PHAs that have jurisdiction in metropolitan FMR areas and that choose to submit the required data. • • Points are based on whether the data that is submitted meets the requirements for bonus points. 555 16-38 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART VI: RECORD KEEPING 16-VI.A. OVERVIEW HACCC must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. All such records must be made available to HUD or the Comptroller General of the United States upon request. In addition, HACCC must ensure that all applicant and participant files are maintained in a way that protects an individual’s privacy rights. 16-VI.B. RECORD RETENTION [24 CFR 982.158; 24 CFR 908.101] During the term of each assisted lease, and for at least three years thereafter, HACCC must keep: • A copy of the executed lease; • The HAP contract; and • The application from the family. In addition, HACCC must keep the following records for at least three years: • Records that provide income, racial, ethnic, gender, and disability status data on program applicants and participants; • An application from each ineligible family and notice that the applicant is not eligible; • HUD-required reports; • Unit inspection reports; • Lead-based paint records as required by 24 CFR 35, Subpart B. • Accounts and other records supporting PHA budget and financial statements for the program; • Records to document the basis for PHA determination that rent to owner is a reasonable rent • (initially and during the term of a HAP contract); and • Other records specified by HUD. The PHA must keep the last three years of the Form HUD-50058 and supporting documentation during the term of each assisted lease, and for a period of at least three years from the end of participation (EOP) date [24 CFR 908.101]. The PHA must maintain Enterprise Income Verification (EIV) system Income Reports in the tenant file for the duration of the tenancy but for a period not to exceed three years from the EOP date [Notice PIH 2018-18]. 556 16-39 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Notice PIH 2014-20 requires PHAs to keep records of all complaints, investigations, notices, and corrective actions related to violations of the Fair Housing Act or the equal access final rule. HACCC Policy HACCC will keep for at least three years records of all complaints, investigations, notices, and corrective actions related to violations of the Fair Housing Act, the equal access final rule, or VAWA. The PHA must keep confidential records of all emergency transfer requested by victims of domestic violence, dating violence, sexual assault, and stalking, and human trafficking under the PHA’s Emergency Transfer Plan, as well as the outcomes of such requests, and retain the records for a period of three years [see 24 CFR 5.2002(e)(12)]. If an informal hearing to establish a family’s citizenship status is held, longer retention requirements apply for some types of documents. For specific requirements, see Section 16- III.D., Retention of Documents. Continuum of Care Rental Subsidy Programs For Continuum of Care rental subsidy programs administered by HACCC, all documents shall be retained for five years after the participant terminates participation in the rental subsidy program. 16-VI.C. RECORDS MANAGEMENT PHAs must maintain applicant and participant files and information in accordance with the regulatory requirements described below. HACCC Policy All applicant and participant information will be kept in a secure location and access will be limited to authorized PHA staff. PHA staff will not discuss personal family information unless there is a business reason to do so. Inappropriate discussion of family information or improper disclosure of family information by staff will result in disciplinary action. Privacy Act Requirements [24 CFR 5.212 and Form-9886] The collection, maintenance, use, and dissemination of social security numbers (SSN), employer identification numbers (EIN), any information derived from these numbers, and income information of applicants and participants must be conducted, to the extent applicable, in compliance with the Privacy Act of 1974, and all other provisions of Federal, State, and local law. Applicants and participants, including all adults in the household, are required to sign a consent form, HUD-9886, Authorization for Release of Information. This form incorporates the Federal Privacy 557 16-40 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Act Statement and describes how the information collected using the form may be used, and under what conditions HUD or HACCC may release the information collected. Upfront Income Verification (UIV) Records PHAs that access UIV data through HUD’s Enterprise Income Verification (EIV) System are required to adopt and follow specific security procedures to ensure that all EIV data is protected in accordance with Federal laws, regardless of the media on which the data is recorded (e.g. electronic, paper). These requirements are contained in the HUD issued document, Enterprise Income Verification (EIV) System, Security Procedures for Upfront Income Verification data. HACCC Policy Prior to utilizing HUD’s EIV system, HACCC will adopt and implement EIV security procedures required by HUD. Criminal Records HACCC may only disclose the criminal conviction records which HACCC receives from a law enforcement agency to officers or employees of HACCC, or to authorized representatives of HACCC who have a job-related need to have access to the information [24 CFR 5.903(e)]. HACCC must establish and implement a system of records management that ensures that any criminal record received by HACCC from a law enforcement agency is maintained confidentially, not misused or improperly disseminated, and destroyed, once the purpose for which the record was requested has been accomplished, including expiration of the period for filing a challenge to HACCC action without institution of a challenge or final disposition of any such litigation [24 CFR 5.903(g)]. HACCC must establish and implement a system of records management that ensures that any sex offender registration information received by HACCC from a State or local agency is maintained confidentially, not misused or improperly disseminated, and destroyed, once the purpose for which the record was requested has been accomplished, including expiration of the period for filing a challenge to HACCC action without institution of a challenge or final disposition of any such litigation. However, a record of the screening, including the type of screening and the date performed must be retained [Notice PIH 2012-28]. This requirement does not apply to information that is public information or is obtained by a PHA other than under 24 CFR 5.905. Medical/Disability Records PHAs are not permitted to inquire about the nature or extent of a person’s disability. HACCC may not inquire about a person’s diagnosis or details of treatment for a disability or medical condition. If HACCC receives a verification document that provides such information, HACCC should not place this information in the tenant file. HACCC should destroy the document. Documentation of Domestic Violence, Dating Violence, Sexual Assault, or Stalking, or Human Trafficking 558 16-41 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 For requirements and PHA policies related to management of documentation obtained from victims of domestic violence, dating violence, sexual assault, or stalking, or human trafficking see section 16-IX.E. 559 16-42 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART VII: REPORTING AND RECORD KEEPING FOR CHILDREN WITH ENVIRONMENTAL INTERVENTION BLOOD LEAD LEVEL 16-VII.A. OVERVIEW HACCC has certain responsibilities relative to children with environmental intervention blood lead levels that are receiving HCV assistance. The notification, verification, and hazard reduction requirements are discussed in Chapter 8. This part deals with the reporting requirements, and data collection and record keeping responsibilities that HACCC is subject to. 16-VII.B. REPORTING REQUIREMENT [24 CFR 35.1225(e); Notice PIH 2017-13] The owner must report the name and address of a child identified as having an environmental intervention blood lead level to the public health department within five business days of being so notified by any other medical health care professional. The owner must also notify the HUD field office and the HUD Office of Lead Hazard Control and Healthy Homes (OLHCHH) of the child’s address within five business days. The PHA may collaborate with the owner on the notification process, such as by agreeing with the owner to provide the required notifications on the owner’s behalf. The Lead Safe Housing Rule & Lead Disclosure Rule (LSHR) threshold for action pursuant to 24 CFR 35 is as follows: • Confirmed EBLL >= 5 μg/dL (micrograms/deciliter) - Notification by public health department or other medical health care provider - If reported by family or other source, PHA should attempt to confirm • Aligned with Centers for Disease Control and Prevention (CDC) reference range of 5 μg/dL HACCC Policy Upon notification by the owner, HACCC will provide the public health department written notice of the name and address of any child identified as having an environmental intervention blood lead level within five business days. Upon notification by the owner, the PHA will notify the HUD field office and the HUD Office of Lead Hazard Control and Healthy Homes (OLHCHH) of the child’s address within five business days. 16-VII.C. DATA COLLECTION AND RECORD KEEPING [24 CFR 35.1225(f)] At least quarterly, HACCC must attempt to obtain from the public health department(s) with a similar area of jurisdiction, the names and/or addresses of children less than 6 years old with an identified environmental intervention blood lead level. 560 16-43 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If HACCC obtains names and addresses of environmental intervention blood lead level children from the public health department(s), HACCC must match this information with the names and addresses of families receiving HCV assistance, unless the public health department performs such a procedure. If a match occurs, HACCC must carry out the notification, verification, and hazard reduction requirements discussed in Chapter 8, and the reporting requirement discussed above. At least quarterly, HACCC must also report an updated list of the addresses of units receiving assistance under the HCV program to the same public health department(s), unless the public health department(s) states that it does not wish to receive such a report. HACCC Policy The public health department(s) has stated they do not wish to receive a report of an updated list of the addresses of units receiving assistance under the HCV program, on a quarterly basis. Therefore, HACCC is not providing such a report. 561 16-44 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART VIII: DETERMINATION OF INSUFFICIENT FUNDING 16-VIII.A. OVERVIEW The HCV regulations allow PHAs to deny families permission to move and to terminate Housing Assistance Payments (HAP) contracts if funding under the consolidated ACC is insufficient to support continued assistance [24 CFR 982.314(e)(1) and 982.454]. If a PHA denies a family a portability move based on insufficient funding, the PHA is required to notify the local HUD office within 10 business days [24 CFR 982.354]. Insufficient funding may also impact HACCC’s ability to issue vouchers to families on the waiting list. This part discusses the methodology HACCC will use to determine whether or not HACCC has sufficient funding to issue vouchers, approve moves, and to continue subsidizing all families currently under a HAP contract. 16-VIII.B. METHODOLOGY HACCC Policy HACCC will determine whether there is adequate funding to issue vouchers, approve moves to higher cost units and areas, and continue subsidizing all current participants by comparing HACCC’s annual budget authority to the annual total HAP needs on a monthly basis. The total HAP needs for the calendar year will be projected by establishing the actual HAP costs year to date. To that figure, HACCC will add anticipated HAP expenditures for the remainder of the calendar year. Projected HAP expenditures will be calculated by multiplying the projected number of units leased per remaining months by the most current month’s average HAP. The projected number of units leased per month will take into account the average monthly turnover of participant families. If the total annual HAP needs equal or exceed the annual budget authority and funding reserves, or if HACCC cannot support the cost of the proposed subsidy commitment (voucher issuance or move) based on the funding analysis, HACCC will be considered to have insufficient funding. 562 16-45 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART IX: VIOLENCE AGAINST WOMEN ACT (VAWA): NOTIFICATION, DOCUMENTATION, CONFIDENTIALITY 16-IX.A. OVERVIEW The Violence against Women Act of 2005 (VAWA) provides special protections for victims of domestic violence, dating violence, sexual assault, and stalking, or human trafficking who are applying for or receiving assistance under the housing choice voucher (HCV) program. If your state or local laws provide greater protection for such victims, those laws apply in conjunction with VAWA. x Although the VAWA 2022 statute does not specifically include human trafficking in the list of victims protected under VAWA, in 2022 HUD began including human trafficking as part of the list of victims protected under VAWA (as seen in Notices PIH 2022-06, PIH 2022-22, and PIH 2022-24). In the absence of a final rule implementing VAWA 2022 and to mirror HUD’s recent usage, this policy includes human trafficking in addition to domestic violence, dating violence, sexual assault, and stalking anywhere such a list appears. In addition to definitions of key terms used in VAWA, this part contains general VAWA requirements and PHA policies in three areas: notification, documentation, and confidentiality. Specific VAWA requirements and PHA policies are located primarily in the following sections: 3-I.C, “Family Breakup and Remaining Member of Tenant Family”; 3-III.G, “Prohibition against Denial of Assistance to Victims of Domestic Violence, Dating Violence, sexual assault, stalking, or human traffickingSexual Assault and Stalking”; 10-I.A, “Allowable Moves”; 10-I.B, “Restrictions on Moves”; 12-II.E, “Terminations Related to Domestic Violence, Dating Violence, sexual assault, stalking, or human traffickingSexual Assault or Stalking”; and 12-II.F, “Termination Notice.” 16-IX.B. DEFINITIONS [24 CFR 5.2003, 42 USC 13925] As used in VAWA: x Although the VAWA 2022 statute does not specifically include human trafficking in the list of victims protected under VAWA, in 2022 HUD began including human trafficking as part of the list of victims protected under VAWA (as seen in Notices PIH 2022-06, PIH 2022-22, and PIH 2022-24). In the absence of a final rule implementing VAWA 2022 and to mirror HUD’s recent usage, this policy includes human trafficking in addition to domestic violence, dating violence, sexual assault, and stalking anywhere such a list appears. • The term bifurcate means, with respect to a public housing or Section 8 lease, to divide a lease as a matter of law such that certain tenants can be evicted or removed while the remaining family members’ lease and occupancy rights are allowed to remain intact. • The term dating violence means violence committed by a person who is or has been in a social relationship of a romantic or intimate nature with the victim. 563 16-46 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (i) The existence of such a relationship shall be determined based on the reporting party’s statement and with consideration of the length of the relationship, the type of relationship, and the frequency of interaction between the persons involved in the relationship. (ii) For the purposes of this definition (A) Dating violence includes, but is not limited to, sexual or physical abuse or the threat of such abuse. (B) Dating violence does not include acts covered under the definition of domestic violence. (iii) For the purposes of complying with the requirements of this section and § 668.41, any incident meeting this definition is considered a crime for the purposes of Clery Act reporting. x The term domestic violence includes: felony or misdemeanor crimes committed by a current or former spouse or intimate partner of the victim under the family or domestic violence laws of the jurisdiction receiving grant funding, and in the case of victim services, includes the user or attempted use of physical abuse or sexual abuse, or a pattern of any other coercive behavior committed, enabled, or solicited to gain or maintain power and control over a victim, including verbal, psychological, economic, or technological abuse that may or may not constitute criminal behavior, by a person who is: - The current or former spouse or intimate partner of the victim, or person similarly situated to a spouse or intimate partner of the victim - A person who is cohabitating or has cohabitated with the victim as a spouse or intimate partner - A person with whom the victim shares a child in common - A person who commits acts against an youth or adult victim who is protected from those acts under the domestic or family violence laws of the jurisdiction x The term economic abuse means behavior that is coercive, deceptive, or unreasonably controls or restrains a person’s ability to acquire, use, or maintain economic resources to which they are entitled, including using coercion, fraud, and manipulation to: - Restrict a person’s access to money, assets, credit, or financial information - Unfairly use a person’s personal economic resources, including money, assets, and credit, for one’s own advantage •- Exert undue influence over a person’s financial and economic behavior or decisions, including forcing default on joint or other financial obligations, exploiting powers of attorney, guardianship, or conservatorship, or to whom one has a fiduciary duty (A) A felony or misdemeanor crime of violence committed— (A) By a current or former spouse or intimate partner of the victim; 564 16-47 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (B) By a person with whom the victim shares a child in common; (C) By a person who is cohabitating with, or has cohabitated with, the victim as a spouse or intimate partner; (D) By a person similarly situated to a spouse of the victim under the domestic or family violence laws of the jurisdiction in which the crime of violence occurred, or (E) By any other person against an adult or youth victim who is protected from that person’s acts under the domestic or family violence laws of the jurisdiction in which the crime of violence occurred. (B) For the purposes of complying with the requirements of this section and § 668.41, any incident meeting this definition is considered a crime for the purposes of Clery Act reporting. • The term sexual assault includes an offense that meets the definition of rape, fondling, incest, or statutory rape as used in the FBI’s Uniform Crime Reporting (UCR) program and repeated below: Rape The penetration, no matter how slight, of the vagina or anus with any body part or object, or oral penetration by a sex organ of another person, without the consent of the victim. Sex Offenses Any sexual act directed against another person, without the consent of the victim, including instances where the victim is incapable of giving consent. A. Fondling—The touching of the private body parts of another person for the purpose of sexual gratification, without the consent of the victim, including instances where the victim is incapable of giving consent because of their age or because of their temporary or permanent mental incapacity. B. Incest—Sexual intercourse between persons who are related to each other within the degrees wherein marriage is prohibited by law. C. Statutory Rape—Sexual intercourse with a person who is under the statutory age of consent. • The term immediate family member is replaced with affiliated individual: The term affiliated individual means, with respect to a person: - A spouse, parent, brother or sister, or child of that individual, or an individual to whom that individual stands in the position or place of a parent; or - Any other individual, tenant, or lawful occupant living in the household of the victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. • The term stalking means: 565 16-48 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 To engage in a course of conduct directed at a specific person that would cause a reasonable person to fear for their safety or the safety of others or suffer substantial emotional distress. x The term technological abuse means an act or pattern of behavior that occurs within domestic violence, dating violence, sexual assault, or stalking and is intended to harm, threaten, intimidate, control, stalk, harass, impersonate, exploit, extort, or monitor another person, except as otherwise permitted by law, that occurs using any form of technology, including but not limited to: - Internet enabled devices - Online spaces and platforms - Computers - Mobile devices - Cameras and imaging programs - Apps - Location tracking devices - Communication technologies - Any other emergency technologies 16-IX.C. NOTIFICATION [24 CFR 5.2005(a)] Notification to Public HACCC adopts the following policy to help ensure that all actual and potential beneficiaries of its HCV program are aware of their rights under VAWA. HACCC Policy HACCC will post the following information regarding VAWA in its offices and on its website. It will also make the information readily available to anyone who requests it. A notice of occupancy rights under VAWA to housing choice voucher program applicants and participants who are or have been victims of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking (Form HUD-5380, see Exhibit 16-1) A copy of form HUD-5382, Certification of Domestic Violence, Dating Violence, Sexual Assault, or StalkingSexual assault, stalking, or human trafficking and Alternate Documentation (see Exhibit 16-2) A copy of the PHA’s emergency transfer plan (Exhibit 16-3) A copy of HUD’s Emergency Transfer Request for Certain Victims of Domestic Violence, Dating Violence, Sexual Assault, or StalkingSexual assault, stalking, or human trafficking, Form HUD-5383 (Exhibit 16-4) 566 16-49 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The National Domestic Violence Hot Line: 1-800-799-SAFE (7233) or 1-800-787-3224 (TTY) (included in Exhibits 16-1 and 16-2) Contact information for local victim advocacy groups or service providers Notification to Program Applicants and Participants [24 CFR 5.2005(a)(1)] PHAs are required to inform program participants of their rights under VAWA, including their right to confidentiality and the limits thereof. Since VAWA provides protections for applicants as well as participants, PHAs may elect to provide the same information to applicants. HACCC Policy HACCC will provide all applicants with information about VAWA at the time they request an application for housing assistance. HACCC will also include information about VAWA in all notices of denial of assistance (see section 3-III.G). HACCC will provide all participants with information about VAWA at the time of admission (see section 5-I.B) and at annual reexamination. HACCC will also include information about VAWA in notices of termination of assistance, as provided in section 12-II.F. The VAWA information provided to applicants and participants will consist of the notices in Exhibits 16-1 and 16-2. Notification to Owners and Managers While PHAs are no longer required by regulation to notify owners and managers participating in the HCV program of their rights and obligations under VAWA, the PHA may still choose to inform them HACCC Policy HACCC will provide owners and managers with information about their rights and obligations under VAWA when they begin their participation in the HCV program and at least annually thereafter. The VAWA information provided to owners will consist of the notice in Exhibit 16-5 and a copy of form HUD-5382, Certification of Domestic Violence, Dating Violence, Sexual Assault and Stalking and Alternate Documentation. 16-IX.D. DOCUMENTATION [24 CFR 5.2007] A PHA presented with a claim for initial or continued assistance based on status as a victim of domestic violence, dating violence, sexual assault, stalking, human trafficking or criminal activity related to any of these forms of abuse may—but is not required to—request that the individual making the claim document the abuse. Any request for documentation must be in writing, and the individual must be allowed at least 14 business days after receipt of the request to submit the documentation. HACCC may extend this time period at its discretion. [24 CFR 5.2007(a)] 567 16-50 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The individual may satisfy HACCC’s request by providing any one of the following three forms of documentation [24 CFR 5.2007(b)]: (1) A completed and signed HUD-approved certification form (HUD-5382, Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking, or Human Trafficking), which must include the name of the perpetrator (2) A federal, state, tribal, territorial, or local police report or court record, or an administrative record (3) Documentation signed by a person who has assisted the victim in addressing domestic violence, dating violence, sexual assault, or stalking, human trafficking or the effects of such abuse. This person may be an employee, agent, or volunteer of a victim service provider; an attorney; a mental health professional; or a medical professional. The person signing the documentation must attest under penalty of perjury to the person’s belief that the incidents in question are bona fide incidents of abuse. The victim must also sign the documentation. HACCC may not require third-party documentation (forms 2 and 3) in addition to certification (form 1), except as specified below under “Conflicting Documentation,” nor may it require certification in addition to third-party documentation [FR Notice 11/1616VAWA final rule]. HACCC Policy Any request for documentation of domestic violence, dating violence, sexual assault, or stalking, or human trafficking will be in writing, will specify a deadline of 14 business days following receipt of the request, will describe the three forms of acceptable documentation, will provide explicit instructions on where and to whom the documentation must be submitted, and will state the consequences for failure to submit the documentation or request an extension in writing by the deadline. HACCC may, in its discretion, extend the deadline for 14 calendar days. Any extension granted by HACCC will be in writing. Conflicting Documentation [24 CFR 5.2007(e)] In cases where HACCC receives conflicting certification documents from two or more members of a household, each claiming to be a victim and naming one or more of the other petitioning household members as the perpetrator, HACCC may determine which is the true victim by requiring each to provide acceptable third-party documentation, as described above (forms 2 and 3) within 30 calendar days of the date of the request for third-party documentation. HACCC must honor any court orders issued to protect the victim or to address the distribution of property. HACCC Policy If presented with conflicting certification documents (two or more forms HUD-5382) from members of the same household, HACCC will attempt to determine which is the true victim by requiring each of them to provide third-party documentation in accordance with 24 CFR 568 16-51 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 5.2007 and by following any HUD guidance on how such determinations should be made. The family will have 30 calendar days from the date of request by the PHA to provide this documentation. Discretion to Require No Formal Documentation [24 CFR 5.2007(d)] HACCC has the discretion to provide benefits to an individual based solely on the individual’s statement or other corroborating evidence—i.e., without requiring formal documentation of abuse in accordance with 24 CFR 5.2007(b). HACCC Policy If HACCC accepts an individual’s statement or other corroborating evidence of domestic violence, dating violence, sexual assault, stalking, or human traffickingsexual assault or stalking, HACCC will document acceptance of the statement or evidence in the individual’s file. Failure to Provide Documentation [24 CFR 5.2007(c)] In order to deny relief for protection under VAWA, a PHA must provide the individual requesting relief with a written request for documentation of abuse. If the individual fails to provide the documentation within 14 business days from the date of receipt, or such longer time as HACCC may allow, HACCC may deny relief for protection under VAWA. 16-IX.E. CONFIDENTIALITY [24 CFR 5.2007(b)(4)] All information provided to HACCC regarding domestic violence, dating violence, sexual assault, stalking, or human traffickingsexual assault or stalking, including the fact that an individual is a victim of such violence or stalking, must be retained in confidence. This means that HACCC (1) may not enter the information into any shared database, (2) may not allow employees or others to access the information unless they are explicitly authorized to do so and have a need to know the information for purposes of their work, and (3) may not provide the information to any other entity or individual, except to the extent that the disclosure is (a) requested or consented to by the individual in writing, (b) required for use in an eviction proceeding, or (c) otherwise required by applicable law. HACCC Policy If disclosure is required for use in an eviction proceeding or is otherwise required by applicable law, HACCC will inform the victim before disclosure occurs so that safety risks can be identified and addressed. 569 16-52 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EXHIBIT 16-1: NOTICE OF OCCUPANCY RIGHTS UNDER THE VIOLENCE AGAINST WOMEN ACT, FORM HUD-5380 Housing Authority of the County of Contra Costa Notice of Occupancy Rights under the Violence Against Women Act3 To all Tenants and Applicants The Violence Against Women Act (VAWA) provides protections for victims of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. VAWA protections are not only available to women but are available equally to all individuals regardless of sex, gender identity, or sexual orientation.4 The U.S. Department of Housing and Urban Development (HUD) is the Federal agency that oversees that the Housing Choice Voucher program is in compliance with VAWA. This notice explains your rights under VAWA. A HUD-approved certification form is attached to this notice. You can fill out this form to show that you are or have been a victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking, and that you wish to use your rights under VAWA.” Protections for Applicants If you otherwise qualify for assistance under the Housing Choice Voucher program, you cannot be denied admission or denied assistance because you are or have been a victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. Protections for Tenants If you are receiving assistance under the Housing Choice Voucher program, you may not be denied assistance, terminated from participation, or be evicted from your rental housing because you are or have been a victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. Also, if you or an affiliated individual of yours is or has been the victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking by a member of your household or any guest, you may not be denied rental assistance or occupancy rights under the Housing Choice Voucher Program or affiliated rental assistance programs[insert name of program or rental assistance] solely on the basis of criminal activity directly relating to that domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. 2 The notice uses HP for housing provider but the housing provider should insert its name where HP is used. HUD’s program-specific regulations identify the individual or entity responsible for providing the notice of occupancy rights. 3 Despite the name of this law, VAWA protection is available regardless of sex, gender identity, or sexual orientation. 570 16-53 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 4 Housing providers cannot discriminate on the basis of any protected characteristic, including race, color, national origin, religion, sex, familial status, disability, or age. HUD-assisted and HUD-insured housing must be made available to all otherwise eligible individuals regardless of actual or perceived sexual orientation, gender identity, or marital status. 571 16-54 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Affiliated individual means your spouse, parent, brother, sister, or child, or a person to whom you stand in the place of a parent or guardian (for example, the affiliated individual is in your care, custody, or control); or any individual, tenant, or lawful occupant living in your household. Removing the Abuser or Perpetrator from the Household HPHACCC may divide (bifurcate) your lease in order to evict the individual or terminate the assistance of the individual who has engaged in criminal activity (the abuser or perpetrator) directly relating to domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. If HPHACCC chooses to remove the abuser or perpetrator, HPHACCC may not take away the rights of eligible tenants to the unit or otherwise punish the remaining tenants. If the evicted abuser or perpetrator was the sole tenant to have established eligibility for assistance under the program, HPHACCC must allow the tenant who is or has been a victim and other household members to remain in the unit for a period of time, in order to establish eligibility under the program or under another HUD housing program covered by VAWA, or find alternative housing. In removing the abuser or perpetrator from the household, HPHACCC must follow Federal, State, and local eviction procedures. In order to divide a lease, HPHACCC may, but is not required to, ask you for documentation or certification of the incidences of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. Moving to Another Unit Upon your request, HPHACCC may permit you to move to another unit, subject to the availability of other units, and still keep your assistance. In order to approve a request, HPHACCC may ask you to provide documentation that you are requesting to move because of an incidence of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. If the request is a request for emergency transfer, the housing provider may ask you to submit a written request or fill out a form where you certify that you meet the criteria for an emergency transfer under VAWA. The criteria are: 1. You are a victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. If your housing provider does not already have documentation that you are a victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking, your housing provider may ask you for such documentation, as described in the documentation section below. 2. You expressly request the emergency transfer. Your housing provider may choose to require that you submit a form or may accept another written or oral request. 3. You reasonably believe you are threatened with imminent harm from further violence if you remain in your current unit. This means you have a reason to fear that if you do not receive a transfer, you would suffer violence in the very near future. 572 16-55 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 OR You are a victim of sexual assault and the assault occurred on the premises during the 90-calendar-day period before you request a transfer. If you are a victim of sexual assault, then in addition to qualifying for an emergency transfer because you reasonably believe you are threatened with imminent harm from further violence if you remain in your unit, you may qualify for an emergency transfer if the sexual assault occurred on the premises of the property from which you are seeking your transfer, and that assault happened within the 90-calendar- day period before you expressly request the transfer. HPHACCC will keep confidential requests for emergency transfers by victims of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking, and the location of any move by such victims and their families. HPHACCC’s emergency transfer plan provides further information on emergency transfers, and HPHACCC must make a copy of its emergency transfer plan available to you if you ask to see it. Documenting You Are or Have Been a Victim of Domestic Violence, Dating Violence, Sexual Assault or Stalking HPHACCC can, but is not required to, ask you to provide documentation to “certify” that you are or have been a victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. Such request from HPHACCC must be in writing, and HPHACCC must give you at least 14 business days (Saturdays, Sundays, and Federal holidays do not count) from the day you receive the request to provide the documentation. HPHACCC may, but does not have to, extend the deadline for the submission of documentation upon your request. You can provide one of the following to HPHACCC as documentation. It is your choice which of the following to submit if HPHACCC asks you to provide documentation that you are or have been a victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. • A complete HUD-approved certification form given to you by HPHACCC with this notice, that documents an incident of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. The form will ask for your name, the date, time, and location of the incident of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking, and a description of the incident. The certification form provides for including the name of the abuser or perpetrator if the name of the abuser or perpetrator is known and is safe to provide. • A record of a Federal, State, tribal, territorial, or local law enforcement agency, court, or administrative agency that documents the incident of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. Examples of such records include police reports, protective orders, and restraining orders, among others. • A statement, which you must sign, along with the signature of an employee, agent, or volunteer of a victim service provider, an attorney, a medical professional or a mental health professional (collectively, “professional”) from whom you sought assistance in addressing 573 16-56 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking, or the effects of abuse, and with the professional selected by you attesting under penalty of perjury that they believe that the incident or incidents of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking are grounds for protection. • Any other statement or evidence that HPHACCC has agreed to accept. If you fail or refuse to provide one of these documents within the 14 business days, HPHACCC does not have to provide you with the protections contained in this notice. If HPHACCC receives conflicting evidence that an incident of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking has been committed (such as certification forms from two or more members of a household each claiming to be a victim and naming one or more of the other petitioning household members as the abuser or perpetrator), HPHACCC has the right to request that you provide third-party documentation within thirty 30 calendar days in order to resolve the conflict. If you fail or refuse to provide third-party documentation where there is conflicting evidence, HPHACCC does not have to provide you with the protections contained in this notice. Confidentiality HPHACCC must keep confidential any information you provide related to the exercise of your rights under VAWA, including the fact that you are exercising your rights under VAWA. HPHACCC must not allow any individual administering assistance or other services on behalf of HPHACCC (for example, employees and contractors) to have access to confidential information unless for reasons that specifically call for these individuals to have access to this information under applicable Federal, State, or local law. HPHACCC must not enter your information into any shared database or disclose your information to any other entity or individual. HPHACCC, however, may disclose the information provided if: • You give written permission to HPHACCC to release the information on a time limited basis. • HPHACCC needs to use the information in an eviction or termination proceeding, such as to evict your abuser or perpetrator or terminate your abuser or perpetrator from assistance under this program. • A law requires HPHACCC or your landlord to release the information. VAWA does not limit HPHACCC’s duty to honor court orders about access to or control of the property. This includes orders issued to protect a victim and orders dividing property among household members in cases where a family breaks up. 574 16-57 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Reasons a Tenant Eligible for Occupancy Rights under VAWA May Be Evicted or Assistance May Be Terminated You can be evicted, and your assistance can be terminated for serious or repeated lease violations that are not related to domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking committed against you. However, HPHACCC cannot hold tenants who have been victims of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking to a more demanding set of rules than it applies to tenants who have not been victims of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. The protections described in this notice might not apply, and you could be evicted, and your assistance terminated, if HPHACCC can demonstrate that not evicting you or terminating your assistance would present a real physical danger that: 1. Would occur within an immediate time frame, and 2. Could result in death or serious bodily harm to other tenants or those who work on the property. If HPHACCC can demonstrate the above, HPHACCC should only terminate your assistance or evict you if there are no other actions that could be taken to reduce or eliminate the threat. Other Laws VAWA does not replace any Federal, State, or local law that provides greater protection for victims of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. You may be entitled to additional housing protections for victims of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking under other Federal laws, as well as under State and local laws. Non-Compliance with The Requirements of This Notice You may report a covered housing provider’s violations of these rights and seek additional assistance, if needed, by contacting or filing a complaint with the U.S. Department of Housing and Urban Development Office of Fair Housing and Equal Opportunity at (415) 489-6400 . or https://www.hud.gov/program_offices/fair_housing_equal_opp/VAWA. To file a complaint with HUD, please go to https://wwwhud.gov/fairhousing/filecomplaint. For Additional Information You may view a copy of HUD’s final VAWA rule at https://www.govinfo.gov/content/pkg/FR- 2016-11-16/pdf/2016-25888.pdf. Additionally, HPHACCC must make a copy of HUD’s VAWA regulations available to you if you ask to see them. 575 16-58 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 For questions regarding VAWA, please contact the Housing Choice Voucher program at (925) 957-7001. For help regarding an abusive relationship, you may call the National Domestic Violence Hotline at 1-800-799-7233 or, for persons with hearing impairments, 1-800-787-3224 (TTY). You may also contact the Domestic Violence Unit of the Contra Costa District Attorney’s Office at 925- 957-2200 or STAND! crisis line at 888-215-5555. For tenants who are or have been victims of stalking seeking help may visit the National Center for Victims of Crime’s Stalking Resource Center at https://www.victimsofcrime.org/our- programs/stalking-resource-center. For help regarding sexual assault, you may contact the Sexual Assault Units of the Contra Costa District Attorney’s Office at (925)957-2200 or Victim Resources - Community Violence Solutions (510) 237-0113 - Rape Crisis (800) 670-7273 - West Contra Costa Family Justice Center (510) 965-4949 Victims of stalking seeking help may contact the Contra Costa District Attorney’s Office at (925) 957-2200. 576 16-59 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Attachment: Certification form HUD-5382 [form approved for this program to be included] EXHIBIT 16-2: CERTIFICATION OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING AND ALTERNATE DOCUMENTATION, FORM HUD-5382 CETIFICATION OF DOMESTIC VIOLENCE, DATNG VIOLENCESEXUAL ASSAULT, OR STALKINGSEXUAL ASSAULT, STALKING, OR HUMAN TRAFFICKING, AND ALTERNATIVE DOCUMENTATION U.S. Department of Housing and Urban Development OMB Approval No. 2577-0286 Exp. 06/30/2017 Purpose of Form: The Violence Against Women Act (“VAWA”) protects applicants, tenants, and program participants in certain HUD programs from being evicted, denied housing assistance, or terminated from housing assistance based on acts of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking against them. Despite the name of this law, VAWA protection is available to victims of domestic violence, dating violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation. Use of This Optional Form: If you are seeking VAWA protections from your housing provider, your housing provider may give you a written request that asks you to submit documentation about the incident or incidents of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. In response to this request, you or someone on your behalf may complete this optional form and submit it to your housing provider, or you may submit one of the following types of third-party documentation: (1) A document signed by you and an employee, agent, or volunteer of a victim service provider, an attorney, or medical professional, or a mental health professional (collectively, “professional”) from whom you have sought assistance relating to domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking, or the effects of abuse. The document must specify, under penalty of perjury, that the professional believes the incident or incidents of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking occurred and meet the definition of “domestic violence,” “dating violence,” “sexual assault,” or “stalking” in HUD’s regulations at 24 CFR 5.2003. (2) A record of a Federal, State, tribal, territorial or local law enforcement agency, court, or administrative agency; or (3) At the discretion of the housing provider, a statement or other evidence provided by the applicant or tenant. Submission of Documentation: The time period to submit documentation is 14 business days from the date that you receive a written request from your housing provider asking that you provide documentation of the occurrence of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. Your housing provider may, but is not required to, extend the time period to submit the documentation, if you request an extension of the time period. If the requested information is not received within 14 business days of when you received the request for the documentation, or any extension of the date provided by your housing provider, your housing provider does not need to grant you any of the VAWA protections. Distribution or issuance of this form does not serve as a written request for certification. Confidentiality: All information provided to your housing provider concerning the incident(s) of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking shall be 577 16-60 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 kept confidential and such details shall not be entered into any shared database. Employees of your housing provider are not to have access to these details unless to grant or deny VAWA protections to you, and such employees may not disclose this information to any other entity or individual, except to the extent that disclosure is: (i) consented to by you in writing in a time-limited release; (ii) required for use in an eviction proceeding or hearing regarding termination of assistance; or (iii) otherwise required by applicable law. 578 16-61 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 TO BE COMPLETED BY OR ON BEHALF OF THE VICTIM OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKINGSEXUAL ASSAULT, STALKING, OR HUMAN TRAFFICKING 1. Date the written request is received by victim: 2. Name of victim: 3. Your name (if different from victim’s): 4. Name(s) of other family member(s) listed on the lease: 5. Residence of victim: 6. Name of the accused perpetrator (if known and can be safely disclosed): 7. Relationship of the accused perpetrator to the victim: 8. Date(s) and times(s) of incident(s) (if known): 10. Location of incident(s): In your own words, briefly describe the incidents(s): This is to certify that the information provided on this form is true and correct to the best of my knowledge and recollection, and that the individual named above in Item 2 is or has been a victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. I acknowledge that submission of false information could jeopardize program eligibility and could be the basis for denial of admission, termination of assistance, or eviction. Signature Signed on (Date) Public Reporting Burden: The public reporting burden for this collection of information is estimated to average 1 hour per response. This includes the time for collecting, reviewing, and reporting the data. The information provided is to be used by the housing provider to request certification that the applicant or tenant is a victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. The information is subject to the confidentiality requirements of VAWA. This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid Office of Management and Budget control number. 579 16-62 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 ADDENDUM TO FORM HUD-5382 ALTERNATIVE CONTACT INFORMATION In order to further protect the safety and anonymity of a victim of domestic violence, dating violence, Sexual assault, stalking, or human trafficking, HACCC shall use alternative contact information as determined by the victim when communicating with said victim. I request that all future communications with me regarding my VAWA rights and/or communications regarding any steps that HACCC may be taking in response my submission of Form HUD-5382 (Addendum) be directed to the following contact information: Mailing Address: Telephone Number: Home: Work: Mobile: Email Address: As attested to by: Print Name Signature 580 16-63 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EXHIBIT 16-3: HACCC EMERGENCY TRANSFER PLAN FOR VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKINGSEXUAL ASSAULT, STALKING, OR HUMAN TRAFFICKING (HCV VERSION) Attachment: Certification form HUD-5382 Housing Authority of the County of Contra Costa Emergency Transfer Plan for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking or Human Trafficking Housing Choice Voucher Program Emergency Transfers HACCC is concerned about the safety of its tenants, and such concern extends to tenants who are victims of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. In accordance with the Violence Against Women Act (VAWA),5 HACCC allows tenants who are victims of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking to request an emergency transfer from the tenant’s current unit to another unit. The ability to request a transfer is available regardless of sex, gender identity, or sexual orientation.6 The ability of HACCC to honor such request for tenants currently receiving assistance, however, may depend upon a preliminary determination that the tenant is or has been a victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking, and on whether HACCC has another dwelling unit that is available and is safe to offer the tenant for temporary or more permanent occupancy. This plan identifies tenants who are eligible for an emergency transfer, the documentation needed to request an emergency transfer, confidentiality protections, how an emergency transfer may occur, and guidance to tenants on safety and security. This plan is based on a model emergency transfer plan published by the U.S. Department of Housing and Urban Development (HUD), the federal agency that oversees that the public housing and housing choice voucher (HCV) programs are in compliance with VAWA. Eligibility for Emergency Transfers A tenant who is a victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking, as provided in HUD’s regulations at 24 CFR part 5, subpart L, is eligible for an emergency transfer if 1. Despite the name of this law, VAWA protection is available to all victims of domestic violence, dating violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation. 2. Housing providers cannot discriminate on the basis of any protected characteristic, including race, color, national origin, religion, sex, familial status, disability, or age. HUD-assisted and HUD-insured housing must be made 581 16-64 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 available to all otherwise eligible individuals regardless of actual or perceived sexual orientation, gender identity, or marital status. 582 16-65 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 the tenant remains within the same unit. If the tenant is a victim of sexual assault, the tenant may also be eligible to transfer if the sexual assault occurred on the premises within the 90-calendar- day period preceding a request for an emergency transfer. A tenant requesting an emergency transfer must expressly request the transfer in accordance with the procedures described in this plan which include not specifically mentioning VAWA or emergency transfer, but, rather, .communicating that they are a victim of VAWA violence/abuse and as a result would like to move from their unit. Tenants who are not in good standing may still request an emergency transfer if they meet the eligibility requirements in this section. Emergency Transfer Request Documentation To request an emergency transfer, the tenant shall notify HACCC’s management office and submit a verbal or written request for a transfer to any HACCC office. HACCC will provide reasonable accommodations to this policy for individuals with disabilities. The tenant’s written request for an emergency transfer should include either: 1. A statement expressing that the tenant reasonably believes that there is a threat of imminent harm from further violence if the tenant were to remain in the same dwelling unit assisted under HACCC’s program; OR 2. A statement that the tenant was a sexual assault victim and that the sexual assault occurred on the premises during the 90-calendar-day period preceding the tenant’s request for an emergency transfer. Confidentiality HACCC will keep confidential any information that the tenant submits in requesting an emergency transfer, and information about the emergency transfer, unless the tenant gives the PHA written permission to release the information on a time-limited basis, or disclosure of the information is required by law or required for use in an eviction proceeding or hearing regarding termination of assistance from the covered program. This includes keeping confidential the new location of the dwelling unit of the tenant, if one is provided, from the person or persons that committed an act of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking against the tenant. See the Notice of Occupancy Rights under the Violence against Women Act for All Tenants for more information about HACCC’s responsibility to maintain the confidentiality of information related to incidents of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. Emergency Transfer Timing and Availability HACCC cannot guarantee that a transfer request will be approved or how long it will take to process a transfer request. HACCC will, however, act as quickly as possible to move a tenant who is a victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking to another unit, subject to availability and safety of a unit. If a tenant reasonably 583 16-66 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 believes a proposed transfer would not be safe, the tenant may request a transfer to a different unit. If a unit is available, the transferred tenant must agree to abide by the terms and conditions that govern occupancy in the unit to which the tenant has been transferred. HACCC may be unable to transfer a tenant to a particular unit if the tenant has not or cannot establish eligibility for that unit. If HACCC has no safe and available units for which a tenant who needs an emergency transfer is eligible, HACCC will assist the tenant in identifying other housing providers who may have safe and available units to which the tenant could move. At the tenant’s request, HACCC will also assist tenants in contacting the local organizations offering assistance to victims of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking that are attached to this plan. Emergency Transfers: Housing Choice Voucher (HCV) Program Tenant-based assistance: If you are a participant in the tenant-based HCV program and request an emergency transfer as described in this plan, HACCC will assist you to move to a safe unit quickly using your existing voucher assistance. HACCC will make exceptions to program regulations restricting moves as required. At your request, HACCC will refer you to organizations that may be able to further assist you. Project-based assistance: If you are assisted under the project-based voucher (PBV) program, you may request an emergency transfer under the following programs for which you are not required to apply: • Tenant-based voucher, if available • Project-based assistance in the same project (if a vacant unit is available and you determine that the vacant unit is safe) • Project-based assistance in another development owned by HACCC Emergency transfers under VAWA will take priority over waiting list admissions for these types of assistance. You may also request an emergency transfer under the following programs for which you are required to apply: • Public housing program • PBV assistance in another development not owned by HACCC Emergency transfers will not take priority over waiting list admissions for these programs. At your request, HACCC will refer you to organizations that may be able to further assist you. Safety and Security of Tenants Pending processing of the transfer and the actual transfer, if it is approved and occurs, the tenant is urged to take all reasonable precautions to be safe. Tenants who are or have been victims of domestic violence are encouraged to contact the 584 16-67 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 National Domestic Violence Hotline at 1-800-799-7233, or a local domestic violence shelter, for assistance in creating a safety plan. For persons with hearing impairments, that hotline can be accessed by calling 1-800-787-3224 (TTY). Tenants who have been victims of sexual assault may call the Rape, Abuse, and Incest National Network’s National Sexual Assault Hotline at 1-800-656-HOPE, or visit the online hotline at https://ohl.rainn.org/online/. Tenants who are or have been victims of stalking seeking help may visit the National Center for Victims of Crime’s Stalking Resource Center at https://www.victimsofcrime.org/our- programs/stalking-resource-center. Attachment: Local organizations offering assistance to victims of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. 585 16-68 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EXHIBIT 16-4: EMERGENCY TRANSFER REQUEST FOR CERTAIN VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKINGSEXUAL ASSAULT, STALKING, OR HUMAN TRAFFICKING, FORM HUD-5383 CETIFICATION OF DOMESTIC VIOLENCE, DATNG VIOLENCESEXUAL ASSAULT, OR STALKINGSEXUAL ASSAULT, STALKING, OR HUMAN TRAFFICKING, AND ALTERNATIVE DOCUMENTATION U.S. Department of Housing and Urban Development OMB Approval No. 2577-0286 Exp. 06/30/2017 Purpose of Form: If you are a victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking, and you are seeking an emergency transfer, you may use this form to request an emergency transfer and certify that you meet the requirements of eligibility for an emergency transfer under the Violence Against Women Act (VAWA). Although the statutory name references women, VAWA rights and protections apply to all victims of domestic violence, dating violence, sexual assault or stalking. Using this form does not necessarily mean that you will receive an emergency transfer. See your housing provider’s emergency transfer plan for more information about the availability of emergency transfers. The requirements you must meet are: (1) You are a victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. If your housing provider does not already have documentation that you are a victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking, your housing provider may ask you for such documentation. In response, you may submit Form HUD-5382, or any one of the other types of documentation listed on that Form. (2) You expressly request the emergency transfer. Submission of this form confirms that you have expressly requested a transfer. Your housing provider may choose to require that you submit this form or may accept another written or oral request. Please see your housing provider’s emergency transfer plan for more details. (3) You reasonably believe you are threatened with imminent harm from further violence if you remain in your current unit. This means you have a reason to fear that if you do not receive a transfer you would suffer violence in the very near future. OR You are a victim of sexual assault and the assault occurred on the premises during the 90-calendar-day period before you request a transfer. If you are a victim of sexual assault, then in addition to qualifying for an emergency transfer because you reasonably believe you are threatened with imminent harm from further violence if you remain in your unit, you may qualify for an emergency transfer if the sexual assault occurred on the premises of the property from which you are seeking your transfer, and that assault happened within the 90-calendar-day period before you submit this form or otherwise expressly request the transfer. Submission of Documentation: If you have third-party documentation that demonstrates why you are eligible for an emergency transfer, you should submit that documentation to your housing provider if it is safe for you to do so. Examples of third party documentation include, but are not limited to: a letter or other documentation from a victim service provider, social worker, legal assistance provider, pastoral counselor, mental health provider, or other professional from whom you have sought assistance; a current restraining 586 16-69 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 order; a recent court order or other court records; a law enforcement report or records; communication records from the perpetrator of the violence or family members or friends of the perpetrator of the violence, including emails, voicemails, text messages, and social media posts. Confidentiality: All information provided to your housing provider concerning the incident(s) of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking, and concerning your request for an emergency transfer shall be kept confidential. Such details shall not be entered into any shared database. Employees of your housing provider are not to have access to these details unless to grant or deny VAWA protections or an emergency transfer to you. Such employees may not disclose this information to any other entity or individual, except to the extent that disclosure is: (i) consented to by you in writing in a time-limited release; (ii) required for use in an eviction proceeding or hearing regarding termination of assistance; or (iii) otherwise required by applicable law. TO BE COMPLETED BY OR ON BEHALF OF THE PERSON REQUESTING A TRANSFER 1. Name of victim requesting an emergency transfer: 2. Your name (if different from victim’s) 3. Name(s) of other family member(s) listed on the lease: 4. Name(s) of other family member(s) who would transfer with the victim: 5. Address of location from which the victim seeks to transfer: 6. Address or phone number for contacting the victim: 7. Name of the accused perpetrator (if known and can be safely disclosed): 8. Relationship of the accused perpetrator to the victim: 9. Date(s), Time(s) and location(s) of incident(s): 10. Is the person requesting the transfer a victim of a sexual assault that occurred in the past 90 days on the premises of the property from which the victim is seeking a transfer? If yes, skip question 11. If no, fill out question 11. 11. Describe why the victim believes they are threatened with imminent harm from further violence if they remain in their current unit. 12. If voluntarily provided, list any third-party documentation you are providing along with this notice: 587 16-70 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 This is to certify that the information provided on this form is true and correct to the best of my knowledge, and that the individual named above in Item 1 meets the requirement laid out on this form for an emergency transfer. I acknowledge that submission of false information could jeopardize program eligibility and could be the basis for denial of admission, termination of assistance, or eviction. Signature Signed on (Date) 588 16-71 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EXHIBIT 16-5: MODEL OWNER NOTIFICATION OF RIGHTS AND OBLIGATIONS HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA NOTIFICATION OF YOUR RIGHTS AND OBLIGATIONS UNDER THE VIOLENCE AGAINST WOMEN ACT (VAWA) VAWA provides protections for Section 8 Housing Choice Voucher (HCV) and PBV applicants, tenants, and participants from being denied assistance on the basis or as a direct result of being a victim of domestic violence, dating violence, sexual assault, and stalking and human trafficking. Purpose Many of VAWA’s protections to victims of domestic violence, dating violence, sexual assault and stalkingstalking, and human trafficking involve action by the public housing agency (PHA), but some situations involve action by owners of assisted housing. The purpose of this notice (herein called “Notice”) is to explain your rights and obligations under VAWA, as an owner of housing assisted through [insert name of housing provider] HCV program. Each component of this Notice also provides citations to HUD’s applicable regulations. Denial of Tenancy Protections for applicants: Owners cannot deny tenancy based on the applicant having been or currently being a victim of domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking. However, the applicant must be otherwise eligible for tenancy. (See 24 Code of Federal Regulations (CFR) 982.452(b)(1).) Eviction Protections for HCV participants: Incidents or threats of domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking will not be considered a serious or repeated lease violation by the victim, or good cause to terminate the tenancy of the victim (see 24 CFR 5.2005(c)). Protection also applies to criminal activity related directly to domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking, conducted by a member of a tenant’s household or any guest or other person under the tenant’s control, if the tenant or an affiliated individual of the tenant is the victim or threatened victim of such domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking (24 CFR 5.2005(b)(2)). Limitations of VAWA protections: a. Nothing in the VAWA Final RuleVAWA limits the authority of an owner, when notified of a court order, to comply with a court order with respect to (24 CFR 5.2005(d)(1)): 1) The rights of access or control of property, including civil protection orders issued to protect a victim of domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking; or 2) The distribution or possession of property among members of a household in a case. b. Nothing in the VAWA Final RuleVAWA limits an owner from evicting a victim of domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking for a lease violation that is not premised on an act of domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking, as long as the owner does not subject the victim to more demanding standards than other tenants when deciding whether to evict. (See 24 CFR 5.2005(d)(2).) 589 16-72 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 c. Nothing in the VAWA Final RuleVAWA limits an owner from evicting a tenant (including the victim of domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking) if the owner can demonstrate an actual and imminent threat to other tenants or those employed at or providing services to the HCV property would be present if the tenant or lawful occupant is not evicted. (See 24 CFR 5.2005(d)(3).) i. In this context, words, gestures, actions, or other indicators will be considered an “actual and imminent threat” if they meet the following standards: An actual and imminent threat consists of a physical danger that is real, would occur within an immediate time frame, and could result in death or serious bodily harm. In determining whether an individual would pose an actual and imminent threat, the factors to be considered include: the duration of the risk, the nature and severity of the potential harm, the likelihood that the potential harm will occur, and the length of time before the potential harm would occur. (See 24 CFR 5.2003.) ii. Any eviction due to “actual and imminent threat” should be utilized by an owner only when there are no other actions that could be taken to reduce or eliminate the threat, including, but not limited to, transferring the victim to a different unit, barring the perpetrator from the property, contacting law enforcement to increase police presence or develop other plans to keep the property safe, or seeking other legal remedies to prevent the perpetrator from acting on a threat. Restrictions predicated on public safety cannot be based on stereotypes, but must be tailored to particularized concerns about individual residents. (See 24 CFR 5.2005(d)(4).) Documentation of Domestic Violence, Dating Violence, Sexual Assault, or StalkingStalking, or Human Trafficking If an applicant or tenant requests VAWA protection based on status as a victim of domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking, the owner has the option to request that the victim document or provide written evidence to demonstrate that the violence occurred. However, nothing in HUD’s regulation requires a covered housing provider to request this documentation. (See 24 CFR 5.2007(b)(3).) If the owner chooses to request this documentation, the owner must make such request in writing. The individual may satisfy this request by providing any one document type listed under 24 CFR 5.2007(b)(1): a. Form HUD-55383 (Self-Certification Form); or b. A document: 1) Signed by an employee, agent, or volunteer of a victim service provider, an attorney, or medical professional or a mental health professional (collectively, “professional”) from whom the victim has sought assistance relating to domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking, or the effects of abuse: 2) Signed by the applicant or tenant; and 3) That specifies, under penalty of perjury, that the professional believes in the occurrence of the incident of domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking that is the ground for protection and remedies under 24 CFR part 5, subpart L, and that the incident meets the applicable definition of domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking under 24 CFR 5.2003; or c. A record of a Federal, State, tribal, territorial or local law enforcement agency, court, or administrative agency; or 590 16-73 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 d. At the discretion of a covered housing provider, a statement or other evidence provided by the applicant or tenant. The owner must accept any of the above items (a – c). The owner has discretion to accept a statement or other evidence (d). The owner is prohibited from requiring third-party documentation of the domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking, unless the submitted documentation contains conflicting information. If the owner makes a written request for documentation, the owner may require submission of that documentation within 14 business days after the date that the individual received the written request for documentation. (24 CFR 5.2007(a)(2)). The owner may extend this time period at its discretion. During the 14 business day period and any granted extensions of that time, no adverse actions, such as evictions or terminations, can be taken against the individual requesting VAWA protection. Once a victim provides documentation of domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking, the owner is encouraged to acknowledge receipt of the documentation in a timely manner. If the applicant or tenant fails to provide documentation that meets the criteria in 24 CFR 5.2007 within 14 business days after receiving the written request for that documentation or within the designated extension period, nothing in VAWA Final Rule may be construed to limit the authority of the covered housing provider to: a. Deny admission by the applicant or tenant to the housing or program; b. Deny assistance under the covered housing program to the applicant or tenant; c. Terminate the participation of the tenant in the covered housing program; or d. Evict the tenant, or a lawful occupant that commits a violation of a lease. An individual’s failure to timely provide documentation of domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking does not result in a waiver of the individual’s right to challenge the denial of assistance or termination, nor does it preclude the individual’s ability to raise an incident of domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking at eviction or termination proceedings. Owners may not coerce, intimidate, threaten, interfere with, or retaliate against any person who exercises or assists or encourages a person to exercise any rights or protections under VAWAs (See FR Notice 1/4/23.) Moves A victim of domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking may move in violation of their lease if the move is required to protect their safety. If a move results in the termination of the Housing Assistance Payment Contract, the lease is automatically terminated. 591 16-74 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Lease Bifurcation Owners may choose to bifurcate a lease, or remove a household member from a lease in order to evict, remove, terminate occupancy rights, or terminate assistance to such member who engages in criminal activity directly relating to domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking against an affiliated individual or other individual. (See 24 CFR 5.2009(a).) If an owner chooses to bifurcate the lease, the owner must comply with the reasonable time to establish eligibility under the covered housing program or find alternative housing following lease bifurcation provision in 24 CFR 5.2009(b). VAWA protections, including bifurcation, do not apply to guests or unreported members of a household or anyone else residing in a household who is not a tenant. Eviction, removal, termination of occupancy rights, or termination of assistance must be effected in accordance with the procedures prescribed by federal, state, or local law for termination of leases. To avoid unnecessary delay in the bifurcation process, HUD recommends that owners seek court-ordered eviction of the perpetrator pursuant to applicable laws. This process results in the underlying lease becoming null and void once the owner regains possession of the unit. The owner would then execute a new lease with the victim. Evictions Due to “Actual and Imminent Threat” or Violations Not Premised on Abuse The VAWA Final Rule generally prohibits eviction on the basis or as a direct result of the fact that the applicant or tenant is or has been a victim of domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking, if the applicant or tenant otherwise qualifies for assistance, participation or occupancy. (See 24 CFR 5.2005.) However, the VAWA Final Rule does not prohibit an owner from evicting a tenant for any violation not premised on an act of domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking that is in question against the tenant or an affiliated individual of the tenant. Nor does the VAWA Final Rule prohibit an owner from evicting a tenant if the owner can demonstrate an actual and imminent threat to other tenants or those employed at or providing services to property of the owner would be present if that tenant or lawful occupant is not evicted or terminated from assistance. (See 5.2005(d)(2) and (3).) In order to demonstrate an actual and imminent threat to other tenants or employees at the property, the covered housing provider must have objective evidence of words, gestures, actions, or other indicators that meet the standards in the following definition: Actual and imminent threat refers to a physical danger that is real, would occur within an immediate time frame, and could result in death or serious bodily harm. In determining whether an individual would pose an actual and imminent threat, the factors to be considered include: x The duration of the risk; x The nature and severity of the potential harm; x The likelihood that the potential harm will occur; and x The length of time before the potential harm would occur. (See 24 CFR 5.2003 and 5.2005(d)(2).) 592 16-75 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Confidentiality Any information submitted to a covered housing provider under 24 CFR 5.2007, including the fact that an individual is a victim of domestic violence, dating violence, sexual assault, or stalkingstalking, or human trafficking, must be maintained in strict confidence by the covered housing provider. (See 24 CFR 5.2007(c).) Employees of the owner (or those within their employ, e.g., contractors) must not have access to the information unless explicitly authorized by the owner for reasons that specifically call for these individuals to have access to this information under applicable fFederal, sState, or local law (e.g., the information is needed by an employee to provide the VAWA protections to the victim). The owner must not enter this information into any shared database, or disclose this information to any other entity or individual, except to the extent that disclosure is: a. Requested or consented to in writing by the individual (victim) in a time-limited release; b. Required for use in an eviction proceeding or hearing regarding termination of assistance from the covered program; or c. Otherwise required by applicable law. When communicating with the victim, owners must take precautions to ensure compliance with these confidentiality requirements. Service Providers Contra Costa County Health, Housing and Homeless Services has extensive relationships with local service providers. Contra Costa County Health, Housing and Homeless Services staff are available to provide referrals to shelters, counselors, and advocates. These resources are also provided in Contra Costa County Health, Housing and Homeless Services Annual and 5-Year Plan, Administrative Plan, VAWA Notice of Occupancy Rights, and Emergency Transfer Plan. A list of local service providers is attached to this Notice. Definitions Actual and imminent threat refers to a physical danger that is real, would occur within an immediate time frame, and could result in death or serious bodily harm. In determining whether an individual would pose an actual and imminent threat, the factors to be considered include: the duration of the risk, the nature and severity of the potential harm, the likelihood that the potential harm will occur, and the length of time before the potential harm would occur. Affiliated individual, with respect to an individual, means: (1) A spouse, parent, brother, sister, or child of that individual, or a person to whom that individual stands in the place of a parent or guardian (for example, the affiliated individual is a person in the care, custody, or control of that individual); or (2) Any individual, tenant, or lawful occupant living in the household of that individual. 593 16-76 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Bifurcate means to divide a lease as a matter of law, subject to the permissibility of such process under the requirements of the applicable HUD-covered program and State or local law, such that certain tenants or lawful occupants can be evicted or removed and the remaining tenants or lawful occupants can continue to reside in the unit under the same lease requirements or as may be revised depending upon the eligibility for continued occupancy of the remaining tenants and lawful occupants. Dating violence means violence committed by a person: (1) Who is or has been in a social relationship of a romantic or intimate nature with the victim; and (2) Where the existence of such a relationship shall be determined based on a consideration of the following factors: (i) The length of the relationship; (ii) The type of relationship; and (iii) The frequency of interaction between the persons involved in the relationship. Domestic violence includes felony or misdemeanor crimes of violence committed by a current or former spouse or intimate partner of the victim under the family or domestic violence laws of the jurisdiction receiving grant funding, and in the case of victim services, includes the user or attempted use of physical abuse or sexual abuse, or a pattern of any other coercive behavior committed, enabled, or solicited to gain or maintain power and control over a victim, including verbal, psychological, economic, or technological abuse that may or may not constitute criminal behavior, by a person who is: x The current or former spouse or intimate partner of the victim, or person similarly situated to a spouse or intimate partner of the victim x A person who is cohabitating or has cohabitated with the victim as a spouse or intimate partner x A person with whom the victim shares a child in common x A person who commits acts against an youth or adult victim who is protected from those acts under the domestic or family violence laws of the jurisdiction a current or former spouse or intimate partner of the victim, by a person with whom the victim shares a child in common, by a person who is cohabitating with or has cohabitated with the victim as a spouse or intimate partner, by a person similarly situated to a spouse of the victim under the domestic or family violence laws of the jurisdiction receiving grant monies, or by any other person against an adult or youth victim who is protected from that person's acts under the domestic or family violence laws of the jurisdiction. The term “spouse or intimate partner of the victim” includes a person who is or has been in a social relationship of a romantic or intimate nature with the victim, as determined by the length of the relationship, the type of the relationship, and the frequency of interaction between the persons involved in the relationship. 594 16-77 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Sexual assault means any nonconsensual sexual act proscribed by Federal, tribal, or State law, including when the victim lacks capacity to consent. Stalking means engaging in a course of conduct directed at a specific person that would cause a reasonable person to: (1) Fear for the person’s individual safety or the safety of others; or (2) Suffer substantial emotional distress. VAWA means the Violence Against Women Act of 1994, as amended (42 U.S.C. 13925 and 42 U.S.C. 14043e et seq.). Attached: Legal services and the domestic violence resources for the Metro area Form HUD-5382 Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking Contra Costa County Health, Housing and Homeless Services VAWA Notice of Occupancy Rights EXHIBIT 16-5: SAMPLE NOTICE TO HOUSING CHOICE VOUCHER OWNERS AND MANAGERS REGARDING THE VIOLENCE AGAINST WOMEN ACT (VAWA) This sample notice was adapted from a notice prepared by the National Housing Law Project. A federal law that went into effect in 2013 protects individuals who are victims of domestic violence, dating violence, sexual assault, and stalking. The name of the law is the Violence against Women Act, or “VAWA.” This notice explains your obligations under VAWA. Protections for Victims You cannot refuse to rent to an applicant solely because they is or has been a victim of domestic violence, dating violence, sexual assault, or stalking. You cannot evict a tenant who is or has been the victim of domestic violence, dating violence, sexual assault, or stalking based on acts or threats of violence committed against the victim. Also, criminal acts directly related to the domestic violence, dating violence, sexual assault, or stalking that are caused by a household member or guest cannot be cause for evicting the victim of the abuse. Permissible Evictions You can evict a victim of domestic violence, dating violence, sexual assault, or stalking if you can demonstrate that there is an actual and imminent (immediate) threat to other tenants or employees at the property if the victim is not evicted. Also, you may evict a victim for serious or repeated lease violations that are not related to the domestic violence, dating violence, sexual assault, or stalking. You cannot hold a victim of domestic violence, dating violence, sexual assault, or stalking to a more demanding standard than you hold tenants who are not victims. Removing the Abuser from the Household You may bifurcate (split) the lease to evict a tenant who has committed criminal acts of violence against family members or others, while allowing the victim and other household members to stay in the unit. If you choose to remove the abuser, you may not take away the remaining 595 16-78 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 tenants’ rights to the unit or otherwise punish the remaining tenants. In removing the abuser from the household, you must follow federal, state, and local eviction procedures. Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking If a tenant asserts VAWA’s protections, you can ask the tenant to certify that they is a victim of domestic violence, dating violence, sexual assault, or stalking. You are not required to demand official documentation and may rely upon the victim’s statement alone. If you choose to request certification, you must do so in writing and give the tenant at least 14 business days to provide documentation. You are free to extend this deadline. A tenant can certify that they is a victim by providing any one of the following three documents: A completed, signed HUD-approved certification form. The most recent form is HUD-5382. This form is available at the housing authority or online at https://portal.hud.gov/hudportal/documents/huddoc?id=5382.docx. A statement from a victim service provider, attorney, mental health professional, or medical professional who has helped the victim address incidents of domestic violence, dating violence, sexual assault, or stalking. The professional must state that they believes that the incidents of abuse are real. Both the victim and the professional must sign the statement under penalty of perjury. A police or court record, such as a protective order, or administrative record. If the tenant fails to provide one of these documents within 14 business days, you may evict the tenant if authorized by otherwise applicable law and lease provisions. Confidentiality You must keep confidential any information a tenant provides to certify that they is a victim of domestic violence, dating violence, sexual assault, or stalking. You cannot enter the information into a shared database or reveal it to outside entities unless: The tenant provides written permission releasing the information. The information is required for use in an eviction proceeding, such as to evict the abuser. Release of the information is otherwise required by law. The victim should inform you if the release of the information would put their safety at risk. VAWA and Other Laws VAWA does not limit your obligation to honor court orders regarding access to or control of the property. This includes orders issued to protect the victim and orders dividing property among household members in cases where a family breaks up. VAWA does not replace any federal, state, or local law that provides greater protection for victims of domestic violence, dating violence, sexual assault, or stalking. Additional Information If you have any questions regarding VAWA, please contact . Definitions For purposes of determining whether a tenant may be covered by VAWA, the following list of definitions applies: 596 16-79 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 VAWA defines domestic violence to include felony or misdemeanor crimes of violence committed by any of the following: A current or former spouse or intimate partner of the victim A person with whom the victim shares a child in common A person who is cohabitating with or has cohabitated with the victim as a spouse or intimate partner A person similarly situated to a spouse of the victim under the domestic or family violence laws of the jurisdiction receiving grant monies Any other person against an adult or youth victim who is protected from that person’s acts under the domestic or family violence laws of the jurisdiction VAWA defines dating violence as violence committed by a person (1) who is or has been in a social relationship of a romantic or intimate nature with the victim AND (2) where the existence of such a relationship shall be determined based on a consideration of the following factors: The length of the relationship The type of relationship The frequency of interaction between the persons involved in the relationship VAWA defines sexual assault as “any nonconsensual sexual act proscribed by federal, tribal, or state law, including when the victim lacks capacity to consent” (42 U.S.C. 13925(a)). VAWA defines stalking as engaging in a course of conduct directed at a specific person that would cause a reasonable person to fear for their safety or the safety of others or suffer substantial emotional distress. 597 16-80 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 16-IX.F. TEMPORARY COVID-19 CHANGES TO THE ADMINISTRATIVE PLAN AND EMERGENCY RESPONSE ACTIONS HOUSING CHOICE VOUCHER PROGRAM TEMPORARY CHANGES TO POLICIES AND PROCEDURES IN RESPONSE TO COVID-19 HUD has facilitated the adoption of specific waiver authority by PHAs in an effort to ensure operations are not impacted and families can continue to be served during the Shelter in Place Order by the Public Health Director and Emergency Declarations made by the Governor of California and the President of the United States. Pursuant to PIH Notice 2020-05 issued on April 10, 2020, HACCC has adopted the following waivers and modified its policies and procedures to implement said waivers. These waivers were adopted effective April 14, 2020 and expire as indicated below. 1. PH & HCV - 3: Family Income and Composition; Annual Examination-Income Verification requirements HUD is waiving the requirement that PHAs must use the income hierarchy described by PIH Notice 2018-18. HUD will allow PHAs to forgo third-party income verification requirements for annual reexaminations, including the use of EIV, if a PHA opts to conduct annual recertifications rather than delaying them. PHAs may consider self-certification as the highest form of income verification to process annual reexaminations. This may occur over the telephone (but must be documented for the written record by PHA staff), through an email or postal mail with a self-certification form by the tenant, or through other electronic communication. Income and family composition examinations and recertifications do not have to be conducted in-person. Policy Change: HACCC will consider written and verbal self-declarations submitted by household adults as primary verification of income and process reexaminations based on the self-certification. Where available, third-party verification will be accepted to augment or support the self- certification. The HUD Hierarchy and Techniques is suspended and will not be in effect during the HUD declared period. Expires: July 31, 2020 Extended to 12/31/2021 2. PH & HCV - 4: Family Income and Composition; Interim Examinations HUD is waiving the requirements to use the income hierarchy described by PIH Notice 2018- 18 and will allow PHAs to forgo third-party income verifications, including EIV. PHAs may consider self-certification as the highest form of income verification for interim reexaminations. Interim reexaminations are not required to be held in-person. Policy Change: 598 16-81 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC will consider written and verbal self-declarations submitted by household adults as primary verification of income and process reexaminations based on the self-certification. Where available, third-party verification will be accepted to augment or support the self- certification. The HUD Hierarchy and Techniques is suspended and will not be in effect during the HUD declared period. Expires: July 31, 2020 Extended to 12/31/2021 3. PH & HCV - 5: Enterprise Income Verification (EIV) Monitoring HUD is waiving mandatory EIV monitoring requirements found in PIH Notice 2018-18 through July 31, 2020. Policy Change: HACCC will not review EIV reports until the end of the waiver authority period. In the event of discrepancies, the family will be required to submit corroborating evidence of declarations. Expires: July 31, 2020 Extended to 12/31/2021 4. PH & HCV - 6: Family Self-Sufficiency (FSS) Contract of Participation; Contract Extension HUD will consider the circumstances surrounding COVID-19 to qualify as “good cause” to extend a family’s contract of participation in the FSS program for no more than 2 years through December 31, 2020. HACCC Policy: As needed, HACCC shall extend FSS Contracts of Participation for a period of up to two years. Expires: December 31, 2020 Extended to 12/31/2021 5. HQS - 1: Initial Inspection Requirements A PHA may rely on the owner’s certification that the owner has no reasonable basis to have knowledge that life-threatening conditions exist in the unit instead of conducting an initial inspection. A PHA may add other requirements or conditions to the owner’s certification. The PHA is required to conduct an HQS inspection on the units as soon as reasonably possible, but no later than October 31, 2020. The waiver may also apply to PHA-owned units. 599 16-82 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy: HACCC shall continue to conduct in-person initial inspections where possible. If the owner or family refuses to grant access during COVID-19 restrictions, the owner and tenant will both be required to complete a self-certification of the condition of the unit. In addition, where feasible, HACCC shall require that a video file be submitted as documentation of the condition of the unit. The alternative to a video file would be photo evidence of all rooms, and amenities in the unit. All files will be documented with the Certifications and an Inspection template, Form HUD 52580, remotely completed by staff. All Initial self- certification inspections shall be signed by the owner and tenant. Once the COVID-19 restrictions are lifted, all self-certified initial inspections will be inspected in person by October 31, 2020 or by an alternative date determined by HUD. Expires: July 31, 2020 Extended to 12/31/2021 6. HQS - 2: Project-Based Voucher (PBV) Pre-HAP Contract Inspections, PHA Acceptance of Complete Units A PHA may rely on the owner’s certification that the owner that has no reasonable basis to have knowledge that life-threatening conditions exist in the unit. A PHA may add other requirements. The PHA must conduct an HQS inspection no later than October 31, 2020 but must do so as soon as reasonably possible. If there’s a requirement under the Agreement to enter into a Housing Assistance Payment (AHAP) contract for newly constructed or rehabilitated projects, the PHA may choose to allow the owner to certify that the PHA requirement has been met. The waiver may also apply to PHA-owned units, if the independent entity is unable to perform the inspection. HACCC Policy: HACCC shall continue to conduct in-person initial inspections where possible. If the owner or family refuses to grant access during COVID-19 restrictions, the owner and tenant will both be required to complete a self-certification of the condition of the unit. In addition, where feasible, HACCC shall require that a video file be submitted as documentation of the condition of the unit. The alternative to a video file would be photo evidence of all rooms, and amenities in the unit. All files will be documented with the Certifications and an Inspection template, Form HUD 52580, remotely completed by staff. All Initial self- certification inspections shall be signed by the owner and tenant. Once the COVID-19 restrictions are lifted, all self-certified initial inspections will be Expires: July 31, 2020 Extended to 12/31/2021 600 16-83 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 7. HQS - 5: Biennial Inspections HUD is waiving the requirement that PHAs inspect the unit not less than biennially (certain small, rural PHAs may inspect units triennially). All delayed biennial inspections must be completed as soon as reasonably possible, but no later than October 31, 2020. This waiver may be applied to PHA-owned units if the independent entity is unable to perform the inspection. HACCC Policy: All Annual/Biennial inspections will be postponed until COVID-19 restrictions are lifted. HACCC will document all tenant files with a flyer to document this delay. Once restrictions are lifted all delayed HQS inspections will be conducted by October 31, 2020 or alternative date as determined by HUD. Expires: October 31, 2020 Extended to 12/31/2021 and all self-certification HQS must be inspected within one year of its original due date. 8. HQS - 6: Interim Inspections The waiver states that if an HQS reported deficiency is life-threatening, the PHA must notify the owner of the reported life-threatening deficiency and the owner must correct it within 24 hours of the PHA notification or provide documentation that the deficiency does not exist. For non-life-threatening deficiencies, the PHA must notify the owner within 30 days and the owner must either make the repair or document that the deficiency does not exist within 30 days of the PHA notification. The PHA may add other requirements. The PHA is not required to conduct an on-site inspection to verify the repairs have been made, but may rely on alternative verification methods (photos, tenant certification, etc.). This waiver may apply to PHA-owned units where the independent entity is unable to perform the inspection. HACCC Policy: HACCC shall continue to conduct in-person Interim inspections where possible. If the owner or family refuses to grant access during COVID-19 restrictions, the owner and tenant will be required to complete a self-certification of the condition of the unit. In addition, where feasible, HACCC shall require that a video file be submitted as documentation of the condition of the unit. The alternative to a video file would be photo evidence of all rooms, and amenities in the unit. All files will be documented with the Certifications and an Inspection template, Form HUD 52580, remotely completed by staff. All Initial self- certification inspections shall be signed by the owner and tenant. If repairs to the unit are needed, the owner and/or tenant will be required to submit picture or video evidence of all corrected deficiencies along with any receipts for services or materials as applicable within 24 hours or 30 days, depending on the failed item. The tenant shall confirm the repairs are completed by certification or by verbal confirmation to staff who will document the conversation for the tenant file 601 16-84 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Expires: July 31, 2020 Extended to 12/31/2021 9. HQS - 7: PBV Turnover Unit Inspections The Department is waiving the regulation that requires a PBV unit inspection before the unit is leased to a new family. The PHA may rely on the owner’s certification that the owner has no reasonable basis to have knowledge that life-threatening conditions exist in the unit. The PHA may add other requirements. The waiver may be applied to PHA-owned units if the independent entity is unable to complete inspections. HACCC Policy: HACCC shall continue to conduct in-person initial inspections where possible. If the owner or family refuses to grant access during COVID-19 restrictions, the owner and tenant will be required to complete a self-certification of the condition of the unit. In addition, where feasible, HACCC shall require that a video file be submitted as documentation of the condition of the unit. The alternative to a video file would be photo evidence of all rooms, and amenities in the unit. All files will be documented with the Certifications and an Inspection template, Form HUD 52580, remotely completed by staff. All Initial self- certification inspections shall be signed by the owner and tenant. Once the COVID-19 restrictions are lifted, all self-certified initial inspections will be inspected in person by October 31, 2020 or alternative date determined by HUD. Expires: July 31, 2020 Extended to 12/31/2021 and all self-certification HQS must be inspected within one year of its original due date. 10. HQS - 8: PBV HAP Contract – HQS Inspections to Add or Substitute Units The Department is waiving the HQS inspection requirement when substituting or adding a new unit to a PBV HAP contract. Instead, the PHA may rely on the owner’s certification that the owner has no reasonable basis to have knowledge that life-threatening conditions exist in the unit. The PHA may add other conditions. The waiver may also be applied to PHA-owned units. HACCC Policy: HACCC shall continue to conduct in-person initial inspections where possible. If the owner or family refuses to grant access during COVID-19 restrictions, the owner and tenant will both be required to complete a self-certification of the condition of the unit. In addition, where feasible, HACCC shall require that a video file be submitted as documentation of the condition of the unit. The alternative to a video file would be photo evidence of all rooms, and amenities in the unit. All files will be documented with the Certifications and an Inspection template, Form 602 16-85 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HUD 52580, remotely completed by staff. All Initial self- certification inspections shall be signed by the owner and tenant. Once the COVID-19 restrictions are lifted, all self-certified initial inspections will be inspected in person by October 31, 2020 or by an alternative date determined by HUD. Extended to 12/31/2021 and all self-certification HQS must be inspected within one year of its original due date. 11. HQS - 9: HQS Quality Control Inspections HUD is waiving its supervisory quality control inspections until October 31, 2020. HACCC Policy: HACCC will not conduct monthly quality control inspections of completed inspections. HACCC will resume QC Inspections in November, 2020 or alternative date as determined by HUD. Expires: October 31, 2020 Extended to 12/31/2021 12. HQS - 10: HQS Space and Security HUD is waiving the regulation requiring one bedroom for every two people where the PHA wishes to assist a current participant that needs to add a member or members to the assisted household as a result of the COVID-19 emergency. This waiver does not apply to an initial or new lease. HACCC Policy: HACCC shall permit the addition of family members to existing tenancies even if it results in overcrowding. The family will not be issued a different-sized voucher to accommodate the change in the family size during or after COVID-19, but the added members will be permitted to live in the unit and the entire household's income will be included in calculation of the tenant rent portion. The tenant file will be documented that the over-crowded condition was a result of the COVID-19 response. Expires: Extended to 12/31/2021 remains in effect 1 year from lease term or date of PIH Notice 2021-14 (05/04/21), whichever is longer 13. HQS - 11: Homeownership Option – Initial HQS Inspection HUD is waiving the requirement for an initial HQS inspection before commencing monthly homeownership assistance payments. The family is still required to obtain an independent 603 16-86 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 professional inspector and the PHA is still required to review the independent inspection and has discretion to disapprove the unit because of the contents of the inspection report. HACCC Policy: HACCC will continue to review the Home Inspection to ensure compliance to physical standards. However, HQS inspections will not be done by HACCC until HUD imposed expiration of this provision. Expires: July 31, 2020 Extended to 12/31/2021 14. HCV - 1: Administrative Plan HUD is waiving the requirement that a PHA’s administrative plan must be formally adopted by a PHA’s board. Must be formerly adopted as practicable following June 30, 2020, but no later than July 31, 2020. HACCC Policy: HACCC will update the Administrative Plan as needed and required by HUD where permitted without Board of Commissioners approval and will bring all changes implemented to the Board by the HUD determined deadline. Expires: June 30, 2020 and must be presented to the Board by July 31, 2020. Expires 3/31/2021 and policies must be presented to the Board by June 30, 2021 Expires 9/30/2021 and policies must be presented to the Board by December 31, 2021. 15. HCV - 2: Information When Family Is Selected – PHA Oral Briefing HUD is waiving the requirement that the PHA must give an oral briefing to families in the HCV and PBV programs. The PHA must instead conduct the briefing by other means such as webcast, video call, expanded information packet. The PHA must ensure that the method of communication for the briefing effectively communicates with each family member, including those with vision, hearing, and other communication-related disabilities and those with persons with limited English proficiency. HACCC Policy: HACCC shall conduct briefings for new participants and households moving to other units by telephone or other electronic means and refer them to our website for the briefing packet or mail it to the family to have and follow along with staff during the phone briefing. The tenant file will be documented with the date and time of the remote briefing and how the briefing packet was provided to them. Expires: July 31, 2020 604 16-87 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Extended to 12/31/2021 16. HCV - 3: Term of Voucher – Extensions of Term HUD is waiving the requirement the voucher term extensions must be in accordance with the PHA administrative plan. HACCC Policy: HACCC already has a liberal policy of granting voucher extensions especially as a result of its restrictive rental market. HACCC is waiving the requirement that the family provide evidence of their housing search in order to be granted an extension of their voucher search period. Expires: July 31, 2020 Extended to 12/31/2021 17. HCV - 4: PHA Approval of Assisted Tenancy – When HAP Contract is Executed HUD is waiving the regulatory requirement that the HAP contract may not be executed 60 days after the lease term begins and will instead allow PHAs to execute the HAP contract after the 60-day deadline has passed and make housing assistance payments retroactive to the beginning of the lease term. However, the PHA and owner must execute the HAP contract no later than 120 days from the beginning of the lease term. HACCC Policy: HACCC will continue to require that contract be processed within 60 days after the lease begins. The waiver authority is being incorporated for special circumstances at the discretion of the Director of the Assisted Housing Programs. Expires: July 31, 2020 Extended to 12/31/2021 18. HCV - 5: Absence From Unit The Department is waiving the requirement that a voucher family may not be absent from a unit for a period of more than 180 consecutive calendar days. The PHA has discretion whether to continue the HAP contract in this situation and not terminate due to extenuating circumstances (e.g., hospitalization, extended stays at nursing homes, or caring for family members). The period of availability to continue making these HAP payments despite the family’s absence ends on December 31, 2020. The PHA may not make payments after this date if the family is absent and the HAP contract will terminate. HACCC Policy: 605 16-88 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC shall document the absence of any family member and indicate the expected return date of the absent family member(s). No action will be taken to remove the family member before the HUD expiration deadline. Thereafter, unless proper documentation is presented regarding extenuating circumstances, the HAP Contract will be terminated. Expires: December 31, 2020 Extended to 12/31/2021 19. HCV - 6: Automatic Termination of HAP Contract The Department is waiving the requirement to terminate a HAP contract 180 days after a housing assistance payment is reduced to $0. This is in recognition that the COVID-19 emergency may cause the temporary addition of household members which causes the calculation of HAP to reach $0. As an alternative requirement, the PHA, following a written notice to the owner and family, may extend the period of time following the last payment to the owner that triggers the automatic termination. HACCC Policy: HACCC shall not terminate HAP Contracts with $0 subsidy for 6 months or more until the COVID-19 restrictions expire. Tenant files will be documented as deliberate non- terminations due to COVID-19 responses. Thereafter, all contracts that are at $0 subsidy for 6 months or more will be reviewed to determine if extenuating circumstances exist to not terminate the HAP Contract. Expires: December 31, 2020 Extended to 12/31/2021 20. HCV - 7: Increase in Payment Standard under HAP contract term The Department is waiving the requirement that if a payment standard is increased during the term of a HAP contract, the increased payment standard shall not be effective until the family’s first regular reexamination. Instead, the increased payment standard may be effective at any time (e.g., interim reexamination, owner rent increase) after the effective date as long as it is not later than the family’s first regular reexamination. HACCC Policy: HACCC does not have a situation that would warrant changes as a result of an increase in the Payment Standard. However, due to a decrease in the payment standards effective April 1, 2019, for studio to three-bedroom units in all cities not in East County, it was anticipated that some families would experience increases in their tenant rent portion effective June 1, 2020, since this would be their second annual certification since the decrease in payment standard. HACCC has revised the Payment Standard for studio to three-bedroom units for all cities not in 606 16-89 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 East County so that families will not experience a rent increase, as a result of the previously reduced payment standard, at their next annual recertification. Expires: December 31, 2020 Extended to 12/31/2021 21. HCV – 14: Mandatory Removal of Unit from PBV HAP Contract Under the PBV program, a PHA is required to remove a unit from a PBV HAP contract after 180 days of zero housing assistance payments to the unit owner on behalf of the family residing in the unit. This situation arises when the family increases its income to such an extent that it no longer requires housing assistance. In recognition that the COVID- 19 pandemic is creating uncertainty for owners and families, HUD is waiving this requirement. As an alternative requirement, HUD is authorizing a PHA at its discretion to keep such units under contract for a period of time that exceeds 180 days but does not extend beyond June 30, 2021. HACCC Policy: HACCC shall not remove a unit from the HAP Contract if the family is at zero subsidy for a period of more than 180 days but no later than June 30, 2021 if they remain in occupancy of the PBV unit. HACCC shall resume housing assistance payments on behalf of a family residing in such a unit should the family’s income change at any point during the period of time covered by the extension. Expires: June 30, 2021. Extended to 12/31/2021 22. PHAS, SEMAP and Financial Reporting Standards (b): SEMAP (Section Eight Management Assessment Program) HUD will not issue SEMAP scores that are pending or for fiscal years ending in 2020 unless a PHA requests a SEMAP score. HUD will, instead, carry forward the PHAs most recent SEMAP score on record. HACCC Policy: HACCC will not submit a SEMAP score for FY2020. It will request that HUD carry forward their SEMAP score from 2019 which indicated that HACCC was a High Performer for its Housing Choice Voucher Program. Expires: March 31, 2021 Extended to 12/31/2021 607 16-90 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 23. Other Waivers (a): PHA Reporting Requirements on HUD Form 50058 HUD is waiving the requirement that PHAs must submit form HUD-50058 60 calendar days after any action recorded on line 2b for transactions impacted by implemented waivers and alternative requirements. Through December 31, 2020, PHAs will have 90 days to submit their form HUD-50058 after the effective date of action to HUD. Although the waiver provides up to 90 days to submit form HUD-50058, HUD encourages PHAs that have operational capacity to continue submitting form HUD-50058 within the normal 60-day timeframe. HUD will issue guidance in the near future that will provide PHAs with workarounds to ensure that the delayed submission of form HUD-50058 does not cause any fatal errors in the IMS-PIC system. HACCC Policy: HACCC will continue to submit data to the HUD PIC Database within 60 days after the completion of any transaction recorded in its system. However, if circumstances result in delays or overwhelm staffing capacity during the COVID-19 response period, HACCC will ensure that submissions are made within 90 days. Expires: December 31, 2020 Extended to 12/31/2021 24. Repayment Agreements Families are required to make repayments on unreported income or non-payment of rent on Repayment Agreements executed between the tenant and /or and HACCC. HACCC recognizes that COVID-19 has resulted in many households having their monthly income affected by loss of employment, layoff or reduction in hours worked. HACCC Policy: In the event of hardship, HACCC shall suspend a household’s repayment agreement until July 31, 2020 or alternative deadline for temporary waivers as determined by HUD. Expires: July 31, 2020 Extended to 12/31/2021 25. MS – 03: Mainstream Age Eligibility to Enter HAP Contract Statutory Authority As an alternative requirement, the PHA may choose to expand the definition of an eligible non-elderly family member to include those who were issued a voucher prior to turning 62 and were not yet 63 on the effective date of the HAP Contract. HACCC Policy: 608 16-91 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC shall permit to lease into a unit any Mainstream participant who is less than 62 years of age when the voucher is issued and may be 62 but not 63 years of age prior to the effective date of the HAP Contract. Expires: June 30, 2021 Extended to 12/31/2021 609 17-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 CHAPTER 17 PROJECT-BASED VOUCHERS [24 CFR 983] This chapter describes HUD regulations and HACCC policies related to the project-based voucher (PBV) program in nine parts: Part I: General Requirements. This part describes general provisions of the PBV program including maximum budget authority requirements, relocation requirements, and equal opportunity requirements. Part II: PBV Owner Proposals. This part includes policies related to the submission and selection of owner proposals for PBV assistance. It describes the factors HACCC will consider when selecting proposals, the type of housing that is eligible to receive PBV assistance, the cap on assistance at projects receiving PBV assistance, subsidy layering requirements, site selection standards, and environmental review requirements. Part III: Dwelling Units. This part describes requirements related to housing qualityNSPIRE standards, the type and frequency of inspections, and housing accessibility for persons with disabilities. Part IV: Rehabilitated and Newly Constructed Units. This part describes requirements and policies related to the development and completion of rehabilitated and newly constructed housing units that will be receiving PBV assistance. Part V: Housing Assistance Payments Contract. This part discusses HAP contract requirements and policies including the execution, term, and termination of the HAP contract. In addition, it describes how the HAP contract may be amended and identifies provisions that may be added to the HAP contract at HACCC’s discretion. Part VI: Selection of PBV Program Participants. This part describes the requirements and policies governing how HACCC and the owner will select a family to receive PBV assistance. Part VII: Occupancy. This part discusses occupancy requirements related to the lease, and describes under what conditions families are allowed or required to move. In addition, exceptions to the occupancy cap (which limits PBV assistance to 25 percent of the units in any project) are also discussed. Part VIII: Determining Rent to Owner. This part describes how the initial rent to owner is determined, and how rent will be re-determined throughout the life of the HAP contract. Rent reasonableness requirements are also discussed. Part IX: Payments to Owner. This part describes the types of payments owners may receive under this program. 610 17-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART I: GENERAL REQUIREMENTS 17-I.A. OVERVIEW [24 CFR 983.5; FR Notice 1/18/17; Notice PIH 2017-21; FR Notice 1/24/22] The project-based voucher (PBV) program allows HACCC that already administer a tenant- based voucher program under an annual contributions contract (ACC) with HUD to take up to 20 percent of its authorized units and attach the funding to specific units rather than using it for tenant-based assistance [24 CFR 983.6]. HACCC may only operate a PBV program if doing so is consistent with HACCC’s Annual Plan, and the goal of de -concentrating poverty and expanding housing and economic opportunities [42 U.S.C. 1437f(o)(13)]. HACCC Policy HACCC will operate a project-based voucher program using up to 20 percent of its authorized units for project-based voucher assistance. An additional 10 percent of the authorized units can be made available for PBV assistance. The units may be distributed among one, all, or a combination of the categories as long as the total number of units does not exceed the 10 percent cap. For units under a HAP contract that was first executed on or after April 18, 2017, units qualify under this exception if the units: • Are specifically made available to house individuals and families that meet the definition of homeless under section 103 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302) and contained in the Continuum of Care Interim Rule at 24 CFR 578.3. • Are specifically made available to house families that are comprised of or include a veteran. - Veteran means an individual who has served in the United States Armed Forces. • Provide supportive housing to persons with disabilities or elderly persons as defined in 24 CFR 5.403. Support Services may include the following: - Meal service adequate to meet nutritional need; - Housekeeping aid; - Personal assistance; - Transportation services; - Health-related services; - Educational and employment services: or - Other services designed to help the recipient live in the community as independently as possible. 611 17-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Are located in a census tract with a poverty rate of 20 percent or less, as determined in the most recent American Community Survey Five-Year Estimates. PBV units that house eligible youth receiving FUPY/FYI assistance are also covered by this 10 percent exception authority if the units are under a HAP contract that became effective after December 27, 2020, and if the unit is occupied by an eligible youth receiving FUPY/FYI assistance. FYI TPVs that were awarded under Notice PIH 2019-20 are not part of this exception since PHAs are prohibited from project-basing FYI TPVs. Units added after December 27, 2020, through an amendment of a HAP contract that became effective after December 27, 2020, are eligible for this 10 percent exception authority. In contrast, units added after December 27, 2020, through an amendment of a HAP contract that became effective on or prior to December 27, 2020, are not eligible for this 10 percent exception authority [FR Notice 1/24/22]. See Chapter 19 for policies specific to project-basing FUPY vouchers. Prior to issuing assistance for an additional 10 percent of the authorized units for PBV assistance, HACCC shall submit to the HUD Field Office the following: 1. The total number of units authorized under the ACC including HUD-VASH and Family Unification Program (FUP) vouchers and how many units are excluded from the total PBV commitment to date, if applicable; 2. Total number of units currently committed for PBV under HAP, AHAP or selected and specify the number of units excluded from the baseline PBV units; 3. The number of units to which HACCC is proposing to attach PBV assistance through the RFP or selection; The notice must be submitted to HUD no later than 14 days prior to the issuance of an RFP or selection is made to exceed the 20 percent cap on PBV assistance. 17-I.A.1 UNITS NOT SUBJECT TO PBV PROGRAM UNIT LIMITATION PBV units under the RAD program and HUD-VASH PBV set-aside vouchers do not count toward the 20 percent limitation when PBV assistance is attached to them. In addition, units that were previously subject to certain federal rent restrictions or were receiving another type of long-term housing subsidy provided by HUD are not subject to the cap. The unit must be covered under a PBV HAP contract that first became effective on or after 4/18/17. 1. The unit must meet the following conditions in order to qualify for this exception: (a) In the 5 years prior to the date the PHA either (i) issued the RFP under which the project was selected or (ii) selected the project based on a prior competition or without competition, the unit met at least one of the two following conditions: (i) The unit received one of the following forms of HUD assistance: 612 17-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 (a) Public Housing Capital or Operating Funds (section 9 of the 1937 Act). (b) Project-Based Rental Assistance (section 8 of the 1937 Act). Project-based rental assistance under section 8 includes the section 8 moderate rehabilitation program, including the single-room occupancy (SRO) program. (c) Housing For the Elderly (section 202 of the Housing Act of 1959). (d) Housing for Persons With Disabilities (section 811 of the Cranston- Gonzalez National Affordable Housing Act). (e) The Rent Supplement (Rent Supp) program (section 101 of the Housing and Urban Development Act of 1965). (f) Rental Assistance Program (RAP) (section 236(f)(2) of the National Housing Act). (ii) The unit was subject to a rent restriction as a result of one of the following HUD loan or insurance programs: (a) Section 236. (b) Section 221(d)(3) or (d)(4) BMIR. (c) Housing For the Elderly (section 202 of the Housing Act of 1959). (d) Housing for Persons With Disabilities (section 811 of the Cranston- Gonzalez National Affordable Housing Act). 2. For New Construction units, to qualify for the exception as replacement housing, the project must meet all of the following criteria a. The units must have been assisted with one of the forms of assistance listed above no more than 5 years from the date of the RFP or selection date of the project under non- competitive selection; b. The new construction project is located on the site of the original project; c. One of the primary purposes of the new construction project is or was to replace the affordable rental units that previously existed at the site as evidenced by one of the following: i. Former residents are provided with a preference for the right of first occupancy of the replacement units; ii. Prior to demolition, the project was specifically identified as replacement housing for the original project. 3. The unit size configuration for the new construction units may differ from the original unit size configurations and the number of PBV assisted units may differ from the original project. However, under no circumstance may the program exception limitation be applied to PBV new construction units that exceed the total number of covered units from the original project. 4. Standard criteria for selection of projects and the units to which project-based assistance can be attached, including consistency with the PHA Plan, the goals of deconcentrating poverty and expanding housing and economic opportunities, site selection, and all civil rights requirements, are still in effect. Prior to issuance of an RFP or selection under a non-competitive selection process, HACCC must notify HUD 14 days in advance of the number of units it will attach PBV assistance to and indicate the specific exception that covers the units. An email must be sent to pbvsubmissions @hud.gov with a copy to the local field office PIH director. 613 17-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 17-I.A.2 OTHER UNITS NOT SUBJECT TO THE PBV PROGRAM UNIT EXCEPTION In addition to the units listed above, other units are not subject to the program limitation calculation and would be excluded in the total number of authorize units and the total number of PBV units currently committed to PBV that the PHA submits to the field office. The units are as follows: a. PBV Units under the RAD Demonstration Program b. HUD -VASH Set Aside - The exception only applies to HUD-VASH that were awarded to HACCC through the HUD-VASH PBV Set-Aside funding process. All other VASH vouchers including and that HACCC chooses to project-base are still subject to the PBV program limitations. 17-I.A.3 INCOME-MIXING PROJECT CAP EXEMPTIONS Projects listed in 17-I.A.1 above are further exempted from the cap on the number of units receiving PBV assistance in any project. For these projects, 100% of the units can be assisted with PBV assistance. Provisions of 17-I.A.1.(2) (3) (4) shall be applicable to these projects. This provision does not apply to units that were receiving PBV assistance prior to the effective date of April 18, 2017 of the HOTMA implementation guidance. PBV HAP Contracts are considered legally binding obligations by HACCC and shall be the last units affected by any HACCC efforts to respond to insufficient funding. PBV assistance may be attached to existing housing or newly constructed or rehabilitated housing [24 CFR 983.52]. If PBV units are already selected for project-based assistance either under an agreement to enter into HAP Contract (Agreement) or a HAP contract, HACCC is not required to reduce the number of these units if the amount of budget authority is subsequently reduced. However, HACCC is responsible for determining the number of units that are available for project-based vouchers and ensuring that the number of units that are assisted with PBV assistance are within the available units under the ACC [24 CFR 983.6]. HACCC shall also ensure that the amount of funding for the assistance attached to the units is available under the ACC. 17-I.B. TENANT-BASED VS. PROJECT-BASED VOUCHER ASSISTANCE [24 CFR 983.2] Much of the tenant-based voucher program regulations also apply to the PBV program. Consequently, many of HACCC's policies related to tenant-based assistance also apply to PBV assistance. The provisions of the tenant-based voucher regulations that do not apply to the PBV program are listed at 24 CFR 983.2. HACCC Policy 614 17-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Except as otherwise noted in this chapter, or unless specifically prohibited by PBV program regulations, HACCC's policies for the tenant-based voucher program contained in this administrative plan also apply to the PBV program and its participants. 17-I.C. RELOCATION REQUIREMENTS [24 CFR 983.7] Any persons displaced as a result of implementation of the PBV program must be provided relocation assistance in accordance with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA)[42 U.S.C. 4201-4655] and implementing regulations at 49 CFR part 24. The cost of required relocation assistance may be paid with funds provided by the owner, local public funds, or funds available from other sources. HACCC may not use voucher program funds to cover relocation costs, except that HACCC may use their administrative fee reserve to pay for relocation expenses after all other program administrative expenses are satisfied, and provided that payment of the relocation benefits is consistent with state and local law. Use of the administrative fee for these purposes must also be consistent with other legal and regulatory requirements, including the requirement in 24 CFR 982.155 and other official HUD issuances. The acquisition of real property for a PBV project is subject to the URA and 49 CFR part 24, subpart B. It is the responsibility of HACCC to ensure the owner complies with these requirements. 17-I.D. EQUAL OPPORTUNITY REQUIREMENTS [24 CFR 983.8] HACCC must comply with all equal opportunity requirements under federal law and regulations in its implementation of the PBV program. This includes the requirements and authorities cited at 24 CFR 5.105(a). In addition, HACCC must comply with HACCC's Administrative Plan certification on civil rights and affirmatively furthering fair housing, submitted in accordance with 24 CFR 903.7(o). 615 17-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART II: PBV OWNER PROPOSALS 17-II.A. OVERVIEW HACCC must describe the procedures for owner submission of PBV proposals and for HACCC selection of PBV proposals [24 CFR 983.51]. Before selecting a PBV proposal, HACCC must determine that the PBV proposal complies with HUD program regulations and requirements, including a determination that the property is eligible housing [24 CFR 983.53 and 983.54], complies with the cap on the number of PBV units per project [24 CFR 983.56], and meets the site selection standards [24 CFR 983.57]. 17-II.B. OWNER PROPOSAL SELECTION PROCEDURES [24 CFR 983.51] HACCC must select PBV proposals in accordance with the selection procedures in HACCC's administrative plan. HACCC must select PBV proposals by either of the following two methods. • HACCC's request for PBV Proposals. HACCC may solicit proposals by using a request for proposals to select proposals on a competitive basis in response to HACCC's request. HACCC may not limit proposals to a single site or impose restrictions that explicitly or practically preclude owner submission of proposals for PBV housing on different sites. • HACCC may select proposals that were previously selected based on a competition. This may include selection of a proposal for housing assisted under a federal, state, or local government housing assistance program that was subject to a competition in accordance with the requirements of the applicable program, community development program, or supportive services program that requires competitive selection of proposals (e.g., HOME, and units for which competitively awarded LIHTCs have been provided), where the proposal has been selected in accordance with such program’s competitive selection requirements within three years of the PBV proposal selection date, and the earlier competitive selection proposal did not involve any consideration that the project would receive PBV assistance. Units Selected Non-Competitively [FR Notice 1/18/17; Notice PIH 2017-21; 24 CFR 983.51(b)] For certain public housing projects where the PHA has an ownership interest or control, the PHA may attach PBV assistance non-competitively without following one of the two processes above. This exception applies when the PHA is engaged in an initiative to improve, develop, or replace a public housing property or site. The public housing units may either currently be in the public housing inventory or may have been removed from the public housing inventory within five years of the date on which the PHA entered into the AHAP or HAP. If the PHA is planning rehabilitation or new construction on the project, a minimum threshold of $25,000 per unit in hard costs must be expended. 616 17-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If the PHA plans to replace public housing by attaching PBV assistance to existing housing in which the PHA has an ownership interest or control, then the $25,000 per unit minimum threshold does not apply as long as the existing housing substantially complies with HQSNSPIRE standards. The PHA must include in the administrative plan what work it plans to do on the property or site and how many PBV units will be added to the site. HACCC Policy HACCC may attach PBVs to projects owned by the PHA as described above. Solicitation And Selection of PBV Proposals [24 CFR 983.51(c)] Prior to issuing a request for proposals (RFP) for a competitive selection process or prior to selection of a project in a non-competitive selection process, HACCC shall submit to the HUD Field Office the following: 1. The total number of units authorized under the ACC including HUD-VASH and Family Unification Program (FUP) vouchers and how many units are excluded from the total PBV commitment to date, if applicable; 2. Total number of units currently committed for PBV under HAP, AHAP or selected and specify the number of units excluded from the baseline PBV units; 3. The number of units to which HACCC is proposing to attach PBV assistance through the RFP or selection; The notice must be submitted to HUD no later than 14 days prior to the issuance of an RFP or selection is made to pbvsubmissions@hud.gov and copied to the field office PIH director. HACCC procedures for selecting PBV proposals must be designed and actually operated to provide broad public notice of the opportunity to offer PBV proposals for consideration by HACCC. The public notice procedures may include publication of the public notice in a local newspaper of general circulation and other means designed and actually operated to provide broad public notice. The public notice of HACCC's request for PBV proposals must specify the submission deadline. Detailed application and selection information must be provided at the request of interested parties. HACCC Request For Proposals For Rehabilitated And Newly Constructed Units HACCC Policy HACCC will advertise its request for proposals (RFP) for rehabilitated and newly constructed housing in the following newspaper of County-wide general circulation: • Contra Costa Times 617 17-9 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 In addition, HACCC will post the RFP and proposal submission and rating and ranking procedures on its electronic web site. HACCC will publish its advertisement in the newspapers and trade journals mentioned above for at least one day per week for three consecutive weeks. The advertisement will specify the number of units HACCC estimates that will be able to assist under the funding HACCC is making available. Proposals will be due in HACCC's office by close of business 30 calendar days from the date of the last publication. In order for the proposal to be considered, the owner must submit the proposal to HACCC by the published deadline date, and the proposal must respond to all requirements as outlined in the RFP. Incomplete proposals will not be reviewed. HACCC will rate and rank proposals for rehabilitated and newly constructed housing using the following criteria: • Owner experience and capability to build or rehabilitate housing as identified in theRFP; • Extent to which the project furthers HACCC's goal of de-concentrating poverty and expanding housing and economic opportunities; • If applicable, the extent to which services for special populations are provided on site or in the immediate area for occupants of the property; and HACCC Requests For Proposals For Existing Housing Units HACCC will advertise its request for proposals (RFP) for existing housing in the following County-wide, general circulation newspaper: • Contra Costa Times In addition, HACCC will post the notice inviting such proposal submission and the rating and ranking procedures on its electronic web site. HACCC will periodically publish its advertisement in the newspapers and trade journals mentioned above for at least two days per week for two consecutive weeks. The advertisement will specify the number of units HACCC estimates that it will be able to assist under the funding HACCC is making available. Owner proposals will be accepted on a first-come, first-served basis and will be evaluated using the following criteria: Experience as an owner in the tenant-based voucher program and owner compliance with the owner’s obligations under the tenant-based program; Extent to which the project furthers HACCC's goal of de-concentrating poverty and expanding housing and economic opportunities; 618 17-10 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If applicable, extent to which services for special populations are provided on site or in the immediate area for occupants of the property; and Extent to which units are occupied by families that are eligible to participate in the PBV program. HACCC's Selection Of Proposals Subject To A Previous Competition Under A Federal, State, Or Local Housing Assistance Program HACCC will accept proposals for PBV assistance from owners that were competitively selected under another federal, state or local housing assistance program, including projects that were competitively awarded Low-Income Housing Tax Credits on an ongoing basis. HACCC may periodically advertise that it is accepting proposals, in the following County-wide, general circulation newspaper: • Contra Costa Times In addition to, or in place of advertising, HACCC may also directly contact specific owners that have already been selected for Federal, state, or local housing assistance based on a previously held competition, to inform them of available PBV assistance. Proposals will be reviewed on a first-come first-served basis. HACCC will evaluate each proposal on its merits using the following factors: • Extent to which the project furthers HACCC's goal of de-concentrating poverty and expanding housing and economic opportunities; and • Extent to which the proposal complements other local activities such as the redevelopment of a public housing site under the HOPE VI program, the HOME program, CDBG activities, other development activities in a HUD-designated Enterprise Zone, Economic Community, or Renewal Community. HACCC-Owned Units [24 CFR 983.51(e), 983.59, and FR Notice 1/18/17, and Notice PIH 2017- 21] HACCC-owned units may be assisted under the PBV program only if the HUD field office or HUD- approved independent entity reviews the selection process and determines that HACCC- owned units were appropriately selected based on the selection procedures specified in HACCC's administrative plan. This also applies to noncompetitive selections. If HACCC selects a proposal for housing that is owned or controlled by HACCC, HACCC must identify the entity that will review HACCC's proposal selection process and perform specific functions with respect to rent determinations, the term of the HAP contract, and inspections. In the case of PHA-owned units, the term of the HAP contract and any HAP contract renewal must be agreed upon by the PHA and a HUD-approved independent entity. In addition, an independent 619 17-11 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 entity must determine the initial rent to owner, the redetermined rent to owner, and reasonable rent. Housing quality standardsNSPIRE inspections must also be conducted by an independent entity. The independent entity that performs these program services may be the unit of general local government for HACCC's jurisdiction (unless HACCC is itself the unit of general local government or an agency of such government) or another HUD-approved public or private independent entity. HACCC Policy HACCC may submit a proposal for project-based housing that is owned or controlled by HACCC. If the proposal for HACCC-owned housing is selected, HACCC will use a standard or high performer housing authority in or adjacent to Contra Costa County to review HACCC's selection and to administer the PBV program. HACCC will obtain HUD approval of the preferred standard or high performer housing authority in or adjacent to Contra Costa County prior to selecting the proposal for HACCC-owned housing. HACCC may only compensate the independent entity and appraiser from HACCC's ongoing administrative fee income (including amounts credited to the administrative fee reserve). HACCC may not use other program receipts to compensate the independent entity and appraiser for their services. HACCC, independent entity, and appraiser may not charge the family any fee for the appraisal or the services provided by the independent entity. HACCC Notice Of Owner Selection [24 CFR 983.51(D)] HACCC must give prompt written notice to the party that submitted a selected proposal and must also give prompt public notice of such selection. Public notice procedures may include publication of public notice in a local newspaper of general circulation and other means designed and actually operated to provide broad public notice. HACCC Policy Within 15 business days of HACCC making the selection, HACCC will notify the selected owner in writing of the owner’s selection for the PBV program. HACCC will also notify in writing all owners that submitted proposals that were not selected and advise such owners of the name of the selected owner. In addition, HACCC will publish its notice for selection of PBV proposals in the same newspapers and trade journals HACCC used to solicit the proposals. The announcement will include the name of the owner that was selected for the PBV program. HACCC will also post the notice of owner selection on its electronic web site. HACCC will make available to any interested party its rating and ranking sheets and documents that identify HACCC's basis for selecting the proposal. These documents will be available for review by the public and other interested parties for one month after publication of the notice of owner selection. HACCC will not make available sensitive owner information that is privileged, such as financial statements and similar information about the owner. 620 17-12 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC will make these documents available for review at HACCC during normal business hours. The cost for reproduction of allowable documents will be in accordance with the established schedule of fees and charges in effect at the time. 17-II.C. HOUSING TYPE [24 CFR 983.52] HACCC may attach PBV assistance for units in existing housing or for newly constructed or rehabilitated housing developed under and in accordance with an agreement to enter into a housing assistance payments contract that was executed prior to the start of construction. A housing unit is considered an existing unit for purposes of the PBV program, if, at the time of notice of HACCC's selection, the units substantially comply with HQS. Units for which new construction or rehabilitation began after the owner's proposal submission but prior to the execution of the HAP do not subsequently qualify as existing housing. Units that were newly constructed or rehabilitated in violation of program requirements also do not qualify as existing housing. HACCC must decide what housing type, new construction, rehabilitation, or existing housing, will be used to develop project-based housing. HACCC's choice of housing type must be reflected in its solicitation for proposals. Rehabilitated and Newly Constructed units are defined to mean units that require $3000 or more in improvements including the per unit costs of common area improvements. Existing Housing units are defined to mean units that require less than $3000 in improvements including the per unit costs of common area improvements. 17-II.D. PROHIBITION OF ASSISTANCE FOR CERTAIN UNITS Ineligible Housing Types [24 CFR 983.53] HACCC may not attach or pay PBV assistance to shared housing units; units on the grounds of a penal reformatory, medical, mental, or similar public or private institution; nursing homes or facilities providing continuous psychiatric, medical, nursing services, board and care, or intermediate care (except that assistance may be provided in assisted living facilities); units that are owned or controlled by an educational institution or its affiliate and are designated for occupancy by students; manufactured homes; cooperative housing; and transitional housing. In addition, HACCC may not attach or pay PBV assistance for a unit occupied by an owner and HACCC may not select or enter into an agreement to enter into a HAP contract or HAP contract for a unit occupied by a family ineligible for participation in the PBV program. A member of a cooperative who owns shares in the project assisted under the PBV program is not considered an owner for purposes of participation in the PBV program. Finally, PBV assistance may not be attached to units for which construction or rehabilitation has started after the proposal submission and prior to the execution of an AHAP. Subsidized Housing [24 CFR983.54] 621 17-13 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC may not attach or pay PBV assistance to units in any of the following types of subsidized housing: • A public housing unit; • A unit subsidized with any other form of Section 8 assistance; • A unit subsidized with any governmental rent subsidy; • A unit subsidized with any governmental subsidy that covers all or any part of the operating costs of the housing; • A unit subsidized with Section 236 rental assistance payments (except that HACCC may attach assistance to a unit subsidized with Section 236 interest reduction payments); • A Section 202 project for non-elderly with disabilities; • Section 811 project-based supportive housing for persons with disabilities; • Section 202 supportive housing for the elderly; • A Section 101 rent supplement project; • A unit subsidized with any form of tenant-based rental assistance; • A unit with any other duplicative federal, state, or local housing subsidy, as determined by HUD or HACCC in accordance with HUD requirements. 17-II.E. SUBSIDY LAYERING REQUIREMENTS [24 CFR 983.55, NOTICE PIH 2013-11, AND FR NOTICE 2/28/203/13/23] The subsidy layering review is intended to prevent excessive public assistance by combining (layering) housing assistance payment subsidy under the PBV program with other governmental housing assistance from federal, state, or local agencies, including assistance such as tax concessions or tax credits. HUD requires new construction and rehabilitation housing that will include forms of governmental assistance other than PBVs to undergo a subsidy layering review (SLR) prior to entering into an Agreement to Enter into Housing Assistance Payments Contract (AHAP). Subsidy layering requirements do not apply to existing housing, when PBV is the only governmental assistance, or for projects already subject to a PBV HAP contract, even if the project is recapitalized with outside sources of funding. When a PHA selects a new construction or rehabilitation project, the PHA must require information regarding all HUD and/or other federal, state, or local governmental assistance to be disclosed by the project owner using Form HUD-2880. Appendix A of FR Notice 2/28/203/23/23 contains a list of all required documentation. Either HUD or a HUD-approved housing credit agency (HCA) in the PHA’s jurisdiction performs the subsidy layering review. The PHA must request an SLR though their local HUD Field Office or, if eligible, through a participating HCA. 622 17-14 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If the SLR request is submitted to an approved HCA, and the proposed project-based voucher assistance meets HUD subsidy layering requirements, the HCA must submit a certification to HUD and notify the PHA. The PHA may proceed to execute an AHAP at that time if the environmental approval is received. The HAP contract must contain the owner’s certification that the project has not received and will not receive (before or during the term of the HAP contract) any public assistance for acquisition, development, or operation of the housing other than assistance disclosed in the subsidy layering review in accordance with HUD requirements. However, in order to satisfy applicable requirements, HCAs must conduct subsidy layering reviews in compliance with the guidelines set forth in the Federal Register notice published July 9, 2010. If before or during the HAP Contract, the owner receives additional HUD or other governmental assistance for the project that results in an increase in project financing in an amount that is equal to or greater than 10 percent of the original development budget, the owner must report such changes to HACCC and HACCC must notify the Housing Credit Agency or HUD (if there is no participating HCA in their jurisdiction), that a further subsidy layering review is required. 17-II.F. CAP ON NUMBER OF PBV UNITS IN EACH PROJECT 25 Percent Per Project Cap [24 CFR 983.56(a), FR Notice 1/18/17, and Notice PIH 2017-21] In general, HACCC may not select a proposal to provide PBV assistance for units in a project or enter into an agreement to enter into a HAP or a HAP contract to provide PBV assistance for units in a project, if the total number of dwelling units in the project that will receive PBV assistance during the term of the PBV HAP contract is more than the greater of 25 units or 25 percent of the number of dwelling units (assisted or unassisted) in the project. Exceptions To 25 Percent Per Project Cap [24 CFR 983.56(b); Notice PIH 2017-21 FR Notice 1/24/22] As of April 18, 2017, units are not counted against the 25 percent per project cap if: • The units are exclusively for elderly families • The units are for households eligible for supportive services available to all families receiving PBV assistance in the project • If the project is located in a census tract with a poverty rate of 20 percent or less, as determined in the most recent American Community Survey Five-Year estimates, the project cap is the greater of 25 units or 40 percent (instead of 25 percent) of the units in the project [FR Notice 7/14/17]. The Housing Opportunity Through Modernization Act of 2016 (HOTMA) eliminated the project cap exemption for projects that serve disabled families and modified the exception for supportive services. 623 17-15 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Under the Fostering Stable Housing Opportunities (FSHO) amendments, units exclusively made available to youth receiving FUPY/FYI assistance may be excepted from the project cap for HAP contracts first effective after December 27, 2020. For more information on excepted units for FUPY, see Chapter 19. Projects where these caps were implemented prior to HOTMA (HAP contracts executed prior to 4/18/17) or FSHO (contract in effect on or prior to December 27, 2020) may continue to use the former exceptions and may renew their HAP contracts under the old requirements, unless the PHA and owner agree to change the conditions of the HAP contract. However, this change may not be made if it would jeopardize an assisted family’s eligibility for continued assistance in the project. HACCC Policy HACCC will provide PBV assistance for excepted units. Excepted units are defined as follows: • The units are exclusively for elderly families • The units are for households eligible for supportive services available to all families receiving PBV assistance in the project • The project is located in a census tract with a poverty rate of 20 percent or less, as determined in the most recent American Community Survey Five-Year estimates Supportive Services PHAs must include in the PHA administrative plan the type of services offered to families for a project to qualify for the exception and the extent to which such services will be provided. As of 4/18/17, the project must make supportive services available to all families receiving PBV assistance in the project, but the family does not actually have to accept and receive supportive services for the exception to apply to the unit. It is not necessary that the services be provided at or by the project but must be reasonably available to families receiving PBV assistance at the project and designed to help families in the project achieve self-sufficiency or live in the community as independently as possible. A PHA may not require participation in the supportive service as a condition of living in the excepted unit, although such services may be offered. Some of the authorized services for exception units include the following: • Supervised Medication taking; • Substance abuse counseling/treatment for current abusers; • Training in housekeeping and Homemaking skills; • Money Management; • Parenting Skills; • Work Skills and/or Job Training; 624 17-16 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Computer Skills; • FSS Contract of Participation goals; • Other Independent Living Services as presented to HACCC and approved by the Executive Director Promoting Partially Assisted Projects [24 CFR983.56(C)] HACCC may establish local requirements designed to promote PBV assistance in partially assisted projects. A partially assisted project is a project in which there are fewer units covered by a HAP contract than residential units [24 CFR 983.3]. HACCC may establish a per-project cap on the number of units that will receive PBV assistance or other project-based assistance in a multifamily project containing excepted units or in a single- family building. HACCC may also determine not to provide PBV assistance for excepted units, or HACCC may establish a per-project cap of less than 25 units or 25 percent of the units. HACCC Policy: Excepted units will be limited to units for elderly families or units with eligible supportive services. Beyond that, the HACCC will not impose any further cap on the number of PBV units assisted per project. Housing Opportunities through Modernization Act of 2016 (HOTMA) Changes The Housing Opportunities Through Modernization Act of 2016 (HOTMA) made changes to the income-mixing project cap and modified the exception categories to the cap on the number of assisted units in a project. The new caps apply only to projects with HAP effective dates after the HOTMA final implementation rule effective date of April 18, 2017. Under HOTMA, the new limitation on the number of PBVs in a project is now the greater of 25 units or 25 percent of the units in a project. Owners under HAP contracts predating April 18, 2017 are still subject to the terms of those HAP Contracts and must continue to designate the same number of units and assist the same number of excepted families as provided in such HAP contracts for the duration of the HAP contract and subsequent renewals unless the owner and HACCC mutually agree to change the requirements. Projects not Subject to a Project Cap [FR Notice 1/18/17; Notice PIH 2017-21] PBV units that were previously subject to certain federal rent restrictions or receiving another type of long-term housing subsidy provided by HUD are exempt from the project cap. In other words, 100 percent of the units in these projects may receive PBV assistance. HACCC Policy 625 17-17 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC will not impose any cap beyond HUD regulations on the number of PBV units assisted per project. 17-II.G. SITE SELECTION STANDARDS Compliance With PBV Goals, Civil Rights Requirements, And HQSNSPIRE Site Standards [24 CFR 983.57(B)] HACCC may not select a proposal for existing, newly constructed, or rehabilitated PBV housing on a site or enter into an agreement to enter into a HAP contract or HAP contract for units on the site, unless HACCC has determined that PBV assistance for housing at the selected site is consistent with the goal of de-concentrating poverty and expanding housing and economic opportunities. The standard for de-concentrating poverty and expanding housing and economic opportunities must be consistent with the HACCC's Agency Plan under 24 CFR 903 and HACCC's administrative plan. In addition, prior to selecting a proposal, HACCC must determine that the site is suitable from the standpoint of facilitating and furthering full compliance with the applicable Civil Rights Laws, regulations, and Executive Orders, and that the site meets the NSPIREHQS site and neighborhood standards at 24 CFR 982.5.703.401(l). HACCC Policy It is HACCC's goal to select sites for PBV housing that provide for de-concentrating poverty and expanding housing and economic opportunities. In complying with this goal, HACCC will limit approval to sites for PBV housing in census tracts that have poverty concentrations of 20 percent or less. However, HACCC will grant exceptions to the 20 percent standard where HACCC determines that the PBV assistance will complement other local redevelopment activities designed to de-concentrate poverty and expand housing and economic opportunities in census tracts with poverty concentrations greater than 20 percent, such as sites in: • A census tract in which the proposed PBV development will be located in a HUD- designated Enterprise Zone, Economic Community, or Renewal Community; • A census tract where the concentration of assisted units will be or has decreased as a result of public housing demolition and HOPE VI redevelopment; • A census tract in which the proposed PBV development will be located is undergoing significant revitalization as a result of state, local, or federal dollars invested in the area; • A census tract where new market rate units are being developed where such market rate units will positively impact the poverty rate in the area; • A census tract where there has been an overall decline in the poverty rate within the past five years; or • A census tract where there are meaningful opportunities for educational and economic advancement. 626 17-18 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Existing And Rehabilitated Housing Site And Neighborhood Standards [24 CFR 983.57(D)] HACCC may not enter into an Agreement to enter into a HAP (AHAP) contract nor enter into a HAP contract for existing or rehabilitated housing until it has determined that the site complies with the HUD required site and neighborhood standards. The site must: • Be adequate in size, exposure, and contour to accommodate the number and type of units proposed; • Have adequate utilities and streets available to service the site; • Promote a greater choice of housing opportunities and avoid undue concentration of assisted persons in areas containing a high proportion of low-income persons; • Be accessible to social, recreational, educational, commercial, and health facilities and services and other municipal facilities and services equivalent to those found in neighborhoods consisting largely of unassisted similar units; and • Be located so that travel time and cost via public transportation or private automobile from the neighborhood to places of employment is not excessive. New Construction Site And Neighborhood Standards [24 CFR 983.57(e)] In order to be selected for PBV assistance, a site for newly constructed housing must meet the following HUD required site and neighborhood standards: • The site must be adequate in size, exposure, and contour to accommodate the number and type of units proposed; • The site must have adequate utilities and streets available to service the site; • The site must not be located in an area of minority concentration unless HACCC determines that sufficient, comparable opportunities exist for housing for minority families in the income range to be served by the proposed project outside areas of minority concentration or that the project is necessary to meet overriding housing needs that cannot be met in that housing market area; • The site must not be located in a racially mixed area if the project will cause a significant increase in the proportion of minority to non-minority residents in the area. • The site must promote a greater choice of housing opportunities and avoid undue concentration of assisted persons in areas containing a high proportion of low-income persons; • The neighborhood must not be one that is seriously detrimental to family life or in which substandard dwellings or other undesirable conditions predominate; • The housing must be accessible to social, recreational, educational, commercial, and health facilities and services and other municipal facilities and services equivalent to those found in neighborhoods consisting largely of unassisted similar units; and • Except for housing designed for elderly persons, the housing must be located so that travel time and cost via public transportation or private automobile from the neighborhood to places of employment is not excessive. 627 17-19 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 RAD Conversions HACCC must comply with all applicable site selection requirements as set forth in Notice PIH 2012-32rev2 and in accordance with any additional applicable guidance provided by HUD. Site selection requirements set forth at 24CFR § 983.57 shall apply to RAD conversions to PBV assistance. Site selection must be consistent with the requirements of the Fair Housing Act, Title VI of the Civil Rights Act of 1964 including implementing regulations at 24 CFR § 1.4(b)(3), Section 504 of the Rehabilitation Act of 1973 including implementing regulations at 24 CFR § 8.4(b)(5), and the Americans with Disabilities Act. For conversions of assistance that involve new construction that is located in an area of minority concentration (whether on the existing public housing site or on a new site), HUD will conduct a front-end civil rights review of the site to determine whether it meets one of the conditions that would allow for new construction in an area of minority concentration. HUD may approve new construction in an area of minority concentration, consistent with the regulatory requirements cited above, provided that: i. the new construction is located in a neighborhood experiencing significant private investment that is demonstrably improving the economic character of the area (a revitalizing area); or ii. there are sufficient comparable housing opportunities in areas outside of minority concentration. In determining if the project meets the requirements above, HUD may consider such factors as: whether the locality has a demonstrated commitment to revitalization that includes or is in addition to the RAD conversion; whether the neighborhood shows signs of revitalizing, through indicators such as declining census tract poverty rates, low or declining violent crime rates or evidence of increased educational opportunity; or whether there is high private and public investment in retail, commercial or housing development that is already occurring or will imminently occur in the area. HACCC must receive prior written approval from HUD following the review that HUD has accepted HACCC's certification and supporting documentation prior to entering into binding commitments for new construction. 17-II.H. ENVIRONMENTAL REVIEW [24 CFR 983.58] HACCC activities under the PBV program are subject to HUD environmental regulations in 24 CFR parts 50 and 58. The responsible entity is responsible for performing the federal environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). HACCC may not enter into an Agreement to enter into a HAP contract nor enter into a HAP contract until it has complied with the environmental review requirements. In the case of existing housing, the responsible entity that is responsible for the environmental review under 24 CFR part 58 must determine whether or not PBV assistance is categorically excluded from 628 17-20 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 review under the National Environmental Policy Act and whether or not the assistance is subject to review under the laws and authorities listed in 24 CFR 58.5. HACCC may not enter into an Agreement to enter into a HAP contract or a HAP contract with an owner, and HACCC, the owner, and its contractors may not acquire, rehabilitate, convert, lease, repair, dispose of, demolish, or construct real property or commit or expend program or local funds for PBV activities under this part, until the environmental review is completed. HACCC must supply all available, relevant information necessary for the responsible entity to perform any required environmental review for any site. HACCC must require the owner to carry out mitigating measures required by the responsible entity (or HUD, if applicable) as a result of the environmental review. 629 17-21 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART III: DWELLING UNITS 17-III.A. OVERVIEW This part identifies the special housing quality standards that apply to the PBV program, housing accessibility for persons with disabilities, and special procedures for conducting housing quality standardsNSPIRE inspections. 17-III.B. NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE (NSPIRE) [24 CFR 983.101]HOUSING QUALITY STANDARDS [24 CFR 983.101] The housing quality standards (HQS)NSPIRE standards for the tenant-based program, including those for special housing types, generally apply to the PBV program. NSPIREHQS requirements for shared housing, manufactured home space rental, and the homeownership option do not apply because these housing types are not assisted under the PBV program. The physical condition standards at 24 CFR 5.703 do not apply to the PBV program. Lead-Based Paint [24 CFR 983.101(C)] The lead-based paint requirements for the tenant-based voucher program do not apply to the PBV program. Instead, The Lead-based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846), the Residential Lead-based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and implementing regulations at 24 CFR part 35, subparts A, B, H, and R, apply to the PBV program. 17-III.C. HOUSING ACCESSIBILITY FOR PERSONS WITH DISABILITIES The housing must comply with program accessibility requirements of section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR part 8. HACCC must ensure that the percentage of accessible dwelling units complies with the requirements of section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), as implemented by HUD’s regulations at 24 CFR 8, subpart C. Housing first occupied after March 13, 1991, must comply with design and construction requirements of the Fair Housing Amendments Act of 1988 and implementing regulations at 24 CFR 100.205, as applicable. (24 CFR 983.102) 17-III.D. INSPECTING UNITS Pre-Selection Inspection [24 CFR 983.103(A)] HACCC must examine the proposed site before the proposal selection date. If the units to be assisted already exist, HACCC must inspect all the units before the proposal selection date and must determine whether the units substantially comply with HQSNSPIRE.. To qualify as existing housing, 630 17-22 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 units must substantially comply with HQS NSPIRE on the proposal selection date as defined above. However, HACCC may not execute the HAP contract until the units fully comply with HQSNSPIRE. Pre-HAP Contract Inspections [24 CFR 983.103(B), FR Notice 1/18/17, and Notice PIH 2017- 20] HACCC must inspect each contract unit before execution of the HAP contract. The PHAHACCC may not provide assistance on behalf of the family until the unit fully complies with HQSNSPIRE, unless HACCCthe PHA has adopted a policy to enter into a HAP contract for units that fail the initial HQS inspection as a result of only non-life-threatening conditions, or if the unit passed an alternative inspection. HACCC Policy HACCC will not provide assistance on behalf of the family until the unit fully complies with HQSNSPIRE. Turnover Inspections [24 CFR 983.103(C)] Before providing assistance to a new family in a contract unit, HACCC must inspect the unit. The PHA may not provide assistance on behalf of the family until the unit fully complies with HQSNSPIRE. HACCC Policy HACCC will not provide assistance in turnover units until the unit fully complies with HQSNSPIRE. Annual/Biennial Inspections [24 CFR 983.103(D); FR Notice 6/25/14] At least biennially during the term of the HAP contract, (or at least triennially for small rural PHAs), the PHAHACCC must inspect a random sample, consisting of at least 20 percent of the contract units in each project to determine if the contract units and the premises are maintained in accordance with HQSNSPIRE. Turnover inspections are not counted toward meeting this biennial inspection requirement. The PHA also has the option in certain mixed finance properties to rely on alternative inspections conducted at least triennially. HACCC Policy HACCC will inspect all contracted PBV units on a biennial basis to determine if the contract units and the premises are maintained in accordance with NSPIREHQS. If more than 20 percent of the biennial sample of inspected contract units in a project fails the initial inspection, HACCC must re-inspect 100 percent of the contract units in the project. Alternative Inspections [24 CFR 983.103(g); Notice PIH 2016-05] 631 17-23 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 In the case of mixed-finance properties that are subject to alternative inspections, the PHA may rely upon an alternative inspection conducted at least triennially to demonstrate compliance with inspection requirements. HACCC Policy HACCC will not rely on alternative inspection standards. Other Inspections [24 CFR 983.103(E)] HACCC must inspect contract units whenever needed to determine that the contract units comply with HQS NSPIRE standards and that the owner is providing maintenance, utilities, and other services in accordance with the HAP contract. HACCC must take into account complaints and any other information coming to its attention in scheduling inspections. HACCC must conduct follow-up inspections needed to determine if the owner (or, if applicable, the family) has corrected an HQS violationNSPIRE deficiency, and must conduct inspections to determine the basis for exercise of contractual and other remedies for owner or family violation of HQSNSPIRE deficiencies. In conducting HACCC supervisory quality control HQS inspections, HACCC should include a representative sample of both tenant-based and project-based units. Inspecting HACCC-Owned Units [24 CFR 983.103(F)] In the case of HACCC-owned units, the inspections must be performed by an independent entity designated by HACCC and approved by HUD. The independent entity must furnish a copy of each inspection report to HACCC and to the HUD field office where the project is located. HACCC must take all necessary actions in response to inspection reports from the independent entity, including exercise of contractual remedies for violation of the HAP contract by HACCC- owner. 632 17-24 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART IV: REHABILITATED AND NEWLY CONSTRUCTED UNITS 17-IV.A. OVERVIEW [24 CFR 983.151] There are specific requirements that apply to PBV assistance for newly constructed or rehabilitated housing that do not apply to PBV assistance in existing housing. This part describes the requirements unique to this type of assistance. Housing selected for this type of assistance may not at a later date be selected for PBV assistance as existing housing. 17-IV.B. AGREEMENT TO ENTER INTO HAP CONTRACT In order to offer PBV assistance in rehabilitated or newly constructed units, HACCC must enter into an agreement to enter into HAP contract (Agreement) with the owner of the property. The Agreement must be in the form required by HUD [24 CFR 983.152(b)]. The PHA may not enter into an Agreement if construction or rehabilitation has commenced after proposal submission [24 CFR983.152(c)]. Construction begins when excavation or site preparation (including clearing of the land) begins for the housing. Rehabilitation begins with the physical commencement of rehabilitation activity on the housing. In the Agreement the owner agrees to develop the PBV contract units to comply with HQSNSPIRE, and HACCC agrees that upon timely completion of such development in accordance with the terms of the Agreement, HACCC will enter into a HAP contract with the owner for the contract units [24 CFR 983.152(a)]. Content Of The Agreement [24 CFR 983.152(d)] At a minimum, the Agreement must describe the following features of the housing to be developed and assisted under the PBV program: • Site and the location of the contract units; • Number of contract units by area (size) and number of bedrooms and bathrooms; • Services, maintenance, or equipment to be supplied by the owner without charges in addition to the rent; • Utilities available to the contract units, including a specification of utility services to be paid by the owner and utility services to be paid by the tenant; • An indication of whether or not the design and construction requirements of the Fair Housing Act and section 504 of the Rehabilitation Act of 1973 apply to units under the Agreement. If applicable, any required work item resulting from these requirements must be included in the description of work to be performed under the Agreement; 633 17-25 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Estimated initial rents to owner for the contract units; • Description of the work to be performed under the Agreement. For rehabilitated units, the description must include the rehabilitation work write up and, where determined necessary by HACCC, specifications and plans. For new construction units, the description must include the working drawings and specifications. • Any additional requirements for quality, architecture, or design over and above HQSNSPIRE standards. Execution Of The Agreement [24 CFR 983.153] The Agreement must be executed promptly after HACCC notice of proposal selection to the selected owner. The PHA may not enter into the Agreement if construction or rehabilitation has started after proposal submission. However, HACCC may not enter into the Agreement with the owner until the subsidy layering review is completed. Likewise, HACCC may not enter into the Agreement until the environmental review is completed and HACCC has received environmental approval. HACCC Policy HACCC will enter into the Agreement with the owner within 10 business days of receiving both environmental approval and notice that subsidy layering requirements have been met, and before construction or rehabilitation work is started. Rehabilitation costs exceeding $3000 per unit shall require adherence to rehabilitation standards. 17-IV.C. CONDUCT OF DEVELOPMENT WORK Labor Standards [24 CFR 983.154(B)] If an Agreement covers the development of nine or more contract units (whether or not completed in stages), the owner and the owner’s contractors and subcontractors must pay Davis- Bacon wages to laborers and mechanics employed in the development of housing. Further, these Davis-Bacon requirements apply to existing PBV units when the nature of any work to be performed either before the execution of the HAP contract or within 18 months after execution constitutes project development. Any development initiated on existing units within 18 months after the effective date of the HAP contract on projects with nine or more contract units triggers Davis-Bacon requirements. The HUD- prescribed form of the Agreement will include the labor standards clauses required by HUD, such as those involving Davis-Bacon wage rates. The addendum to the HAP contract, Form HUD-5679, also includes the required labor standards clauses. The owner, contractors, and subcontractors must also comply with the Contract Work Hours and Safety Standards Act, Department of Labor regulations in 29 CFR part 5, and other applicable federal labor relations laws and regulations. HACCC must monitor compliance with labor standards. 634 17-26 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Equal Opportunity [24 CFR983.154(C)] The owner must comply with Section 3 of the Housing and Urban Development Act of 1968 and the implementing regulations at 24 CFR part 135. The owner must also comply with federal equal employment opportunity requirements. Owner Disclosure [24 CFR 983.154(D) And (E)] The Agreement and HAP contract must include a certification by the owner that the owner and other project principals are not on the U.S. General Services Administration list of parties excluded from federal procurement and non-procurement programs. The owner must also disclose any possible conflict of interest that would be a violation of the Agreement, the HAP contract, or HUD regulations. 17-IV.D. COMPLETION OF HOUSING The Agreement must specify the deadlines for completion of the housing, and the owner must develop and complete the housing in accordance with these deadlines. The Agreement must also specify the deadline for submission by the owner of the required evidence of completion. Evidence Of Completion [24 CFR 983.155(B)] At a minimum, the owner must submit the following evidence of completion to HACCC in the form and manner required by HACCC: • Owner certification that the work has been completed in accordance with HQS NSPIRE and all requirements of the Agreement; and • Owner certification that the owner has complied with labor standards and equal opportunity requirements in development of the housing. At HACCC’s discretion, the Agreement may specify additional documentation that must be submitted by the owner as evidence of housing completion. HACCC Policy HACCC will determine the need for the owner to submit additional documentation such as a Certificate of Occupancy or signed off Job Card as evidence of housing completion on a case- by-case basis depending on the nature of the PBV project. HACCC will specify any additional documentation requirements in the Agreement to enter into HAP contract. HACCC Acceptance Of Completed Units [24 CFR 983.156] Upon notice from the owner that the housing is completed, HACCC must inspect to determine if the housing has been completed in accordance with the Agreement, including compliance with HQS 635 17-27 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 NSPIRE standards and any additional requirements imposed under the Agreement. HACCC must also determine if the owner has submitted all required evidence of completion. If the work has not been completed in accordance with the Agreement, HACCC must not enter into the HAP contract. If HACCC determines the work has been completed in accordance with the Agreement and that the owner has submitted all required evidence of completion, HACCC must submit the HAP contract for execution by the owner and must then execute the HAP contract. 636 17-28 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART V: HOUSING ASSISTANCE PAYMENTS CONTRACT (HAP) 17-V.A. OVERVIEW HACCC must enter into a HAP contract with an owner for units that are receiving PBV assistance. The purpose of the HAP contract is to provide housing assistance payments for eligible families. Housing assistance is paid for contract units leased and occupied by eligible families during the HAP contract term. With the exception of single-family scattered-site projects, a HAP contract shall cover a single project. If multiple projects exist, each project is covered by a separate HAP contract. The HAP contract must be in the form required by HUD [24 CFR 983.202(a)]. 17-V.B. HAP CONTRACT REQUIREMENTS Contract Information [24 CFR 983.203] The HAP contract must specify the following information: • The total number of contract units by number of bedrooms; • The project’s name, street address, city or county, state and zip code, block and lot number (if known), and any other information necessary to clearly identify the site and the project; • The number of contract units in each project, the location of each contract unit, the area of each contract unit, and the number of bedrooms and bathrooms in each contract unit; • Services, maintenance, and equipment to be supplied by the owner and included in the rent to owner; • Utilities available to the contract units, including a specification of utility services to be paid by the owner (included in rent) and utility services to be paid by the tenant; • Features provided to comply with program accessibility requirements of Section 504 of the Rehabilitation Act of 1973 and implementing regulations at 24 CFR part 8; • The HAP contract term; • The number of units in any project that will exceed the 25 percent per project cap, which will be set-aside for occupancy by qualifying families - (elderly and/or disabled families and families receiving supportive services); and • The initial rent to owner for the first 12 months of the HAP contract term. Execution Of The HAP Contract [24 CFR 983.204] HACCC may not enter into a HAP contract until each contract unit has been inspected and HACCC has determined that the unit complies with the Housing Quality Standards (HQS)NSPIRE standards. 637 17-29 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 For existing housing, the HAP contract must be executed promptly after HACCC selects the owner proposal and inspects the housing units. For newly constructed or rehabilitated housing the HAP contract must be executed after HACCC has inspected the completed units and has determined that the units have been completed in accordance with the agreement to enter into HAP, and the owner furnishes all required evidence of completion. HACCC Policy For existing housing, the HAP contract will be executed within 10 business days of HACCC determining that all units pass HQSinspection. For rehabilitated or newly constructed housing, the HAP contract will be executed within 10 business days of HACCC determining that the units have been completed in accordance with the agreement to enter into HAP, all units meet HQSNSPIRE standards, and the owner has submitted all required evidence of completion. Term Of HAP Contract [24 CFR 983.205; FR Notice 1/18/17, and Notice PIH 2017-21] HACCC may enter into a HAP contract with an owner for an initial term of no less than one year and no more than twenty (20) years. HACCC Policy The term of all PBV HAP contracts will be negotiated with the owner on a case-by-case basis. At the time of the initial HAP contract term or any time before expiration of the HAP contract, the PHA may extend the term of the contract for an additional term of up to 20 years if the PHA determines an extension is appropriate to continue providing affordable housing for low-income families. A HAP contract extension may not exceed 20 years. A PHA may provide for multiple extensions; however, in no circumstances may such extensions exceed 20 years, cumulatively. Extensions after the initial extension are allowed at the end of any extension term, provided that not more than 24 months prior to the expiration of the previous extension contract the PHA agrees to extend the term, and that such extension is appropriate to continue providing affordable housing for low- income families or to expand housing opportunities. Extensions after the initial extension term shall not begin prior to the expiration date of the previous extension term. Subsequent extensions are subject to the same limitations. All extensions must be on the form and subject to the conditions prescribed by HUD at the time of the extension. In the case of PHA-owned units, any extension of the term of the HAP contract must be agreed upon by the PHA and the independent entity approved by HUD [24 CFR 983.59(b)(2)]. For PBV HAP Contracts that pre-date HOTMA with 10 or 15 year terms, HACCC shall extend the term of the HAP contract to 20 years prior to expiration of the initial HAP contract term and permit HAP extensions of 20-year terms if requested. Under no circumstances will the total years of assistance exceed 40 years. HACCC Policy 638 17-30 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 When determining whether or not to extend an expiring PBV contract, HACCC will consider several factors including, but not limited to: • The cost of extending the contract and the amount of available budget authority; • The condition of the contract units; • The owner’s record of compliance with obligations under the HAP contract and lease(s); • Whether the location of the units continues to support the goals of de-concentrating poverty and expanding housing opportunities; and • Whether the funding could be used more appropriately for tenant-based assistance. Termination By HACCC [24 CFR 983.205(C) and FR Notice 1/18/17] The HAP contract must provide that the term of HACCC’s contractual commitment is subject to the availability of sufficient appropriated funding as determined by HUD or by HACCC in accordance with HUD instructions. For these purposes, sufficient funding means the availability of appropriations, and of funding under the ACC from such appropriations, to make full payment of housing assistance payments payable to the owner for any contract year in accordance with the terms of the HAP contract. If it is determined that there may not be sufficient funding to continue housing assistance payments for all contract units and for the full term of the HAP contract, HACCC may terminate the HAP contract by notice to the owner. The termination must be implemented in accordance with HUD instructions. In the event of insufficient funding, HACCC shall first take all cost-saving measures prior to failing to make payments under existing PBV HAP contracts. Termination By Owner [24 CFR 983.205(D)] If in accordance with program requirements the amount of rent to an owner for any contract unit is reduced below the amount of the rent to owner at the beginning of the HAP contract term, the owner may terminate the HAP contract by giving notice to HACCC. In this case, families living in the contract units must be offered tenant-based assistance. Statutory Notice Requirements: Contract Termination or Expiration [24 CFR 983.206, FR Notice 1/18/17, and Notice PIH 2017-21] Not less than one year before the HAP contract terminates, or if the owner refuses to renew the HAP contract, the owner must notify HACCC and assisted tenants of the termination. The notice must be provided in the form prescribed by HUD. If the owner does not give timely notice, the owner must permit the tenants in assisted units to remain in their units for the required notice period with no increase in the tenant portion of their rent, and with no eviction as a result of the owner's inability to collect an increased tenant portion of rent. An owner may renew the terminating contract for a period of time sufficient to give tenants one-year advance notice under such terms as HUD may require. 639 17-31 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Upon termination or expiration of the contract, a family living at the property is entitled to receive a tenant-based voucher. Tenant-based assistance would not begin until the owner’s required notice period ends. The PHA must provide the family with a voucher and the family must also be given the option by the PHA and owner to remain in their unit with HCV tenant- based assistance as long as the unit complies with inspection and rent reasonableness requirements. The family must pay their total tenant payment (TTP) and any additional amount if the gross rent exceeds the applicable payment standard. The family has the right to remain in the project as long as the units are used for rental housing and are otherwise eligible for HCV assistance. The owner may not terminate the tenancy of a family that exercises its right to remain except for serious or repeated lease violations or other good cause. Families that receive a tenant- based voucher at the expiration or termination of the PBV HAP contract are not new admissions to the PHA HCV tenant-based program and are not subject to income eligibility requirements or any other admission requirements. If the family chooses to remain in their unit with tenant-based assistance, the family may do so regardless of whether the family share would initially exceed 40 percent of the family’s adjusted monthly income. Remedies For HQS ViolationsNSPIRE Deficiencies [24 CFR 983.2078(bB)] HACCC may not make any HAP payment to the owner for a contract unit during any period in which the unit does not comply with HQSNSPIRE standards. If HACCC determines that a contract does not comply with NSPIRE standardsHQS, HACCC may exercise any of its remedies under the HAP contract, for any or all of the contract units. Available remedies include termination of housing assistance payments, abatement or reduction of housing assistance payments, reduction of contract units, and termination of the HAP contract. HACCC Policy HACCC will abate and terminate PBV HAP contracts for non-compliance with HQS NSPIRE in accordance with the policies used in the tenant-based voucher program. These policies are contained in Section 8-II.G., Enforcing Owner Compliance. 17-V.C. AMENDMENTS TO THE HAP CONTRACT Substitution Of Contract Units [24 CFR 983.207(A)] At HACCC’s discretion and subject to all PBV requirements, the HAP contract may be amended to substitute a different unit with the same number of bedrooms in the same project for a previously covered contract unit. Before any such substitution can take place, HACCC must inspect the proposed unit and determine the reasonable rent for the unit. HACCC Policy HACCC will permit the substitution of PBV units for similar-bedroom sized units only. Substitutions of PBV contracted units will only be permitted in the following circumstances: x As a reasonable accommodation; x In order to adjust for or preserve tax credit affordability; x Family ineligibility for continued assistance; 640 17-32 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 x Due to Fair Housing violations as a result of assisted unit placement; Addition Of Contract Units [24 CFR 983.207(B) and Notice PIH 2017-21] At HACCC’s discretion and subject to the restrictions on the number of dwelling units that can receive PBV assistance per project and on the overall size of HACCC’s PBV program, a HAP contract may be amended following the execution date of the HAP contract to add additional PBV units in the same project. This type of amendment is subject to all PBV program requirements except that a new PBV proposal is not required. HACCC Policy HACCC will consider adding contract units to the HAP contract when HACCC determines that additional housing is needed to serve eligible low-income families. Circumstances may include, but are not limited to: • The local housing inventory is reduced due to a disaster (either due to loss of housing units, or an influx of displaced families); and • Voucher holders are having difficulty finding units that meet program requirements. • Additional PBV assisted units are needed to ensure the financial viability of the project. 14 days prior to an RFP announcement or attaching assistance to additional units without competition, HACCC shall submit to the local field office i) the total number of units authorized in the ACC excluding those PBV units entirely excluded from the cap; ii) the total number of units currently committed to PBV excluding those not counting towards the cap; iii) the number of new units proposed to be assisted. HACCC shall email the information to pbvsubmission@hud.gov with a copy to the local HUD PIH Office. 17-V.D. HAP CONTRACT YEAR, ANNIVERSARY AND EXPIRATION DATES [24 CFR 983.207(b) and 983.302(e)] The HAP contract year is the period of 12 calendar months preceding each annual anniversary of the HAP contract during the HAP contract term. The initial contract year is calculated from the first day of the first calendar month of the HAP contract term. The annual anniversary of the HAP contract is the first day of the first calendar month after the end of the preceding contract year. There is a single annual anniversary and expiration date for all units under a particular HAP contract, even in cases where contract units are placed under the HAP contract in stages (on different dates) or units are added by amendment. The anniversary and expiration dates for all units coincide with the dates for the contract units that were originally placed under contract. 641 17-33 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 17-V.E. OWNER RESPONSIBILITIES UNDER THE HAP CONTRACT [24 CFR 983.210] When the owner executes the HAP contract s/he certifies that at such execution and at all times during the term of the HAP contract: • All contract units are in good condition and the owner is maintaining the premises and contract units in accordance with NSPIRE standardsHQS; • The owner is providing all services, maintenance, equipment and utilities as agreed to under the HAP contract and the leases; • Each contract unit for which the owner is receiving HAP, is leased to an eligible family referred by HACCC, and the lease is in accordance with the HAP contract and HUD requirements; • To the best of the owner’s knowledge the family resides in the contract unit for which the owner is receiving HAP, and the unit is the family’s only residence; • The owner (including a principal or other interested party) is not the spouse, parent, child, grandparent, grandchild, sister, or brother of any member of a family residing in a contract unit; • The amount of the HAP the owner is receiving is correct under the HAP contract; • The rent for contract units does not exceed rents charged by the owner for comparable unassisted units; • Except for HAP and tenant rent, the owner has not received and will not receive any other payment or consideration for rental of the contract unit; • The family does not own or have any interest in the contract unit (does not apply to family's membership in a cooperative); and • Repair work on the project selected as an existing project that is performed after HAP execution within such post-execution period as specified by HUD may constitute development activity, and if determined to be development activity, the repair work undertaken shall be in compliance with Davis-Bacon wage requirements. 17-V.F. ADDITIONAL HAP REQUIREMENTS Housing Quality And Design Requirements [24 CFR 983.101(E) And 983.208(A)] The owner is required to maintain and operate the contract units and premises in accordance with NSPIRE standardsHQS, including performance of ordinary and extraordinary maintenance. The owner must provide all the services, maintenance, equipment, and utilities specified in the HAP contract with HACCC and in the lease with each assisted family. In addition, maintenance, 642 17-34 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 replacement and redecoration must be in accordance with the standard practice for the project as established by the owner. HACCC may elect to establish additional requirements for quality, architecture, or design of PBV housing. Any such additional requirements must be specified in the Agreement to enter into a HAP contract and the HAP contract. These requirements must be in addition to, not in place of, compliance with NSPIRE standardsHQS. HACCC Policy HACCC will identify the need for any special features on a case-by-case basis depending on the intended occupancy of the PBV project. HACCC will specify any special design standards or additional requirements in the invitation for PBV proposals, the agreement to enter into HAP contract, and the HAP contract. Vacancy Payments [24 CFR 983.352(B)] At the discretion of HACCC, the HAP contract may provide for vacancy payments to the owner for a HACCC-determined period of vacancy extending from the beginning of the first calendar month after the move-out month for a period not exceeding two full months following the move- out month. The amount of the vacancy payment will be determined by HACCC and cannot exceed the monthly rent to owner under the assisted lease, minus any portion of the rental payment received by the owner (including amounts available from the tenant’s security deposit). HACCC Policy HACCC will provide vacancy payments to the owner equal to the contract rent in effect at the time of the vacancy for a period not to exceed 60 days. The HAP contract with the owner will contain the terms under which vacancy payments will be made. 643 17-35 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART VI: SELECTION OF PBV PROGRAM PARTICIPANTS 17-VI.A. OVERVIEW Many of the provisions of the tenant-based voucher regulations [24 CFR 982] also apply to the PBV program. This includes requirements related to determining eligibility and selecting applicants from the waiting list as outlined in Chapter 4 of this Plan. Even with these similarities, there are requirements that are unique to the PBV program. This part describes the requirements and policies related to eligibility and admission to the PBV program. 17-VI.B. ELIGIBILITY FOR PBV ASSISTANCE [24 CFR 983.251(a) and (b)] HACCC may select families for the PBV program from those who are participants in HACCC’s tenant-based voucher program and from those who have applied for admission to the voucher program. For voucher participants, eligibility was determined at original admission to the voucher program and does not need to be re-determined at the commencement of PBV assistance. For all others, eligibility for admission must be determined at the commencement of PBV assistance. Applicants for PBV assistance must meet the same eligibility requirements as applicants for the tenant-based voucher program. Applicants must qualify as a family as defined by HUD and HACCC, meet asset limitation requirements, have income at or below HUD-specified income limits, and qualify on the basis of citizenship or the eligible immigration status of family members [24 CFR 982.201(a) and 24 CFR 983.2(a)]. In addition, an applicant family must provide social security information for family members [24 CFR 5.216 and 5.218] and consent to HACCC’s collection and use of family information regarding income, expenses, and family composition [24 CFR 5.230]. HACCC may also not approve a tenancy if the owner (including a principal or other interested party) of the unit is the parent, child, grandparent, grandchild, sister, or brother of any member of the family, unless needed as a reasonable accommodation. An applicant family must also meet HUD requirements related to current or past criminal activity. HACCC Policy HACCC will determine an applicant family’s eligibility for the PBV program in accordance with the policies in Chapter 3 (tenant-based voucher program). In-Place Families [24 CFR 983.251(B)] An eligible family residing in a proposed PBV contract unit on the date the proposal is selected by HACCC is considered an "in-place family." These families are afforded protection from displacement under the PBV rule. If a unit to be placed under contract (either an existing unit or a unit requiring rehabilitation) is occupied by an eligible family on the date the proposal is selected, the in-place family must be placed on HACCC’s waiting list. Once the family’s continued eligibility is determined (HACCC may deny assistance to an in-place family for the grounds specified in 24 644 17-36 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 CFR 982.552 and 982.553), the family must be given an absolute selection preference and HACCC must refer these families to the project owner for an appropriately sized PBV unit in the project. Admission of eligible in-place families is not subject to income targeting requirements. This regulatory protection from displacement does not apply to families that are not eligible to participate in the program on the proposal selection date. 17-VI.C. ORGANIZATION OF THE WAITING LIST [24 CFR 983.251(C)] HACCC may establish a separate waiting list for PBV units or it may use the same waiting list for both tenant-based and project-based assistance. HACCC may also merge the PBV waiting list with a waiting list for other assisted housing programs offered by HACCC. If HACCC chooses to offer a separate waiting list for PBV assistance, HACCC must offer to place applicants who are listed on the tenant-based waiting list on the waiting list for PBV assistance. If HACCC decides to establish a separate PBV waiting list, HACCC may use a single waiting list for HACCC’s whole PBV program, or it may establish separate waiting lists for PBV units in particular projects or for sets of such units. HACCC Policy It was past practice for HACCC to use the same waiting list for both tenant-based and PBV assistance. HACCC used the HCV waiting list for PBV assistance until site-based waiting lists were established for each PBV project. All HCV applicants were given the first opportunity to be placed on these site-based wait lists. Since then and thereafter, all applicants interested in PBV assistance shall be placed on the project’s site-based wait list. Placement on the site-based wait list shall not affect applicants’ placement or status on the HCV wait list. Establishment of Site Based Waiting List for RAD Covered Projects 24 CFR § 983.251 sets out PBV program requirements related to establishing and maintaining a voucher-wide, PBV program-wide, or site-based waiting list from which residents for the Covered Project will be admitted. These provisions will apply unless the project is covered by a remedial order or agreement that specifies the type of waiting list and other waiting list policies. HACCC shall consider the best means to transition applicants from the current public housing waiting list, including: i. Transferring an existing site-based waiting list to a new site-based waiting list. If HACCC is transferring the assistance to another neighborhood, HACCC must notify applicants on the waitlist of the transfer of assistance, and on how they can apply for residency at the new project site or other sites. Applicants on a project-specific waiting list for a project where the assistance is being transferred shall have priority on the newly formed waiting 645 17-37 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 list for the new project site in accordance with the date and time of their application to the original project's waiting list. ii. Informing applicants on the site-based waiting list on how to apply for a PBV program- wide or HCV program-wide waiting list. iii. Informing applicants on a public housing community-wide waiting list on how to apply for the HCV or PBV site-based waiting list. The site-based waiting list shall be established in accordance with 24 CFR § 903.7(b)(2)(ii)-(iv) to ensure that applicants on HACCC’s public housing community-wide waiting list have been offered placement on the converted project’s initial waiting list. In all cases, HACCC has the discretion to determine the most appropriate means of informing applicants on the public housing community-wide waiting list given the number of applicants, HACCC resources, and admissions requirements of the projects being converted under RAD. HACCC may consider contacting every applicant on the public housing waiting list via direct mailing; advertising the availability of housing to the population that is less likely to apply, both minority and non- minority groups, through various forms of media (e.g., radio stations, posters, newspapers) within the marketing area; informing local non-profit entities and advocacy groups (e.g., disability rights groups); and conducting other outreach as appropriate. Applicants on the agency’s public housing community-wide waiting list who wish to be placed onto the newly-established site-based waiting list must be placed in accordance with the date and time of their original application to the centralized public housing waiting list. Any activities to contact applicants on the public housing waiting list must be conducted in accordance with the requirements for effective communication with persons with disabilities at 24 CFR § 8.6 and with the obligation to provide meaningful access for persons with limited English proficiency (LEP). HACCC must maintain any site-based waiting list in accordance with all applicable civil rights and fair housing laws and regulations unless the project is covered by a remedial order or agreement that specifies the type of waiting list and other waiting list policies. To implement this provision, HUD is specifying alternative requirements for 24 CFR §983.251(c)(2). However, after the initial waiting list has been established, HACCC shall administer its waiting list for the converted project in accordance with 24 CFR 983.251 (c). HACCC will establish and manage separate waiting lists for individual projects that are receiving PBV assistance. Site based waiting lists that are closed for general applications shall remain open for special needs applicants when there are units with additional restrictions in the PBV inventory for that property. Site-based waiting lists for properties restricted to elderly households shall deny applicants who are not 62 years of age or older from being placed on the site-based waiting list for that property. Existing non-elderly applicants on these site-based waiting lists shall be removed from these lists and notified of the reason either when they reach the top of the waiting list or en-mass as part of a waiting list update effort. In an effort to preserve potential eligibility for non-elderly applicants who had previously applied to elderly waiting lists, non-elderly applicants who, at the time they reach the top of a senior waiting list are 55 years of age or older and have applications for other senior developments in the PBV portfolio, will be removed from the list they reached the top of only. The other waiting lists 646 17-38 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 applications will remain active until they reach the top of those waiting lists. At that time, if they are still not 62 years of age or older, they will be removed from that particular waiting list at that time. It is anticipated that HACCC shall have site-based wait lists for the following properties/projects: Property Name Address Bedrooms Number of PBVs Housing Type 0 1 2 3 4 5 Acalanes Court 1988 Trinity Ave, Walnut Creek, CA 94596 0 0 2 2 0 0 4 Family Berrellesa Palms 310 Berrellesa St., Martinez, CA94553 0 48 0 0 0 0 48 Senior Brentwood Senior 750 Larkspur Lane, Brentwood, CA 94513 0 31 0 0 0 0 31 Senior Brentwood Senior 750 Larkspur Lane, Brentwood, CA 94513 0 48 0 0 0 0 48 Senior Carquinez Apartments 400 Harbour Way, Richmond, CA 94801 35 35 Senior Casa Del Rio 615 W. 7th Street, Antioch, CA 94509 72 9 81 Senior Church Lane Apartments 2555 Church Lane, San Pablo, CA 94806 2 2 1 5 Family El Cerrito Senior (Hana Gardens) 10860 San Pablo Ave., El Cerrito, CA 94530 0 39 0 0 0 0 39 Senior Elaine Null Apartments 112 Alves Lane, Pittsburg, CA 94565 2 2 Family Garden Park Apartments 2387 Lisa Lane, Pleasant Hill, CA 94523 8 5 13 Family Giant Road 2832 Giant Rd., San Pablo, CA 94806 0 3 7 11 0 0 21 Family Hacienda 1300 Roosevelt Avenue, Richmond, CA 24 11 113 148 Elderly Heritage Point Apartments 1540 Fred Jackson Way, Richmond, CA 94801 6 16 13 35 Family Hookston Senior 80 West Hookston Rd., Pleasant Hill, CA 94523 0 22 2 0 0 0 24 Senior Hookston Senior Homes (2nd HAP) 80 W. Hookston Rd., Pleasant Hill, CA 94523 14 1 15 Senior Lafayette Senior - Belle Terre Apartments 3428 Mt. Diablo Blvd, Lafayette, CA 94549 0 45 0 0 0 0 45 Senior Lakeside Apartments 1897 Oakmead Dr., Concord, CA 94520 0 6 12 12 0 0 30 Family Lillie Mae Jones 120 MacDonald Ave., Richmond, CA 94801 9 7 3 1 20 Family/ Special Needs 647 17-39 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Miraflores 150 So. 45th Street, Richmond, CA 94804 79 79 Elderly Monterey Pines 680 So. 37th Street, Richmond, CA 94804 25 25 50 Family Orinda Senior - Monteverde Apartments 2 Irwin Place, Orinda, CA 94563 0 66 0 0 0 0 66 Senior Pinecrest Apartments 1945 Cavallo Rd., Antioch, CA 94509 3 3 Family Richmond City Center Apts 1000 Macdonald Ave, Richmond, CA 94801 5 5 6 16 Family Richmond Village (Former Public Housing Easter Hill) 700 So. 26th St, Richmond, CA 94804 9 33 16 3 61 Family Riley Court 2050-2060 Riley Ct., Concord, CA 94520 0 11 4 0 0 0 15 Family Riviera Family Apartments 1515 Riviera St., Walnut Creek, CA 94596 4 2 2 1 0 0 9 Family Riviera Family Apartments 1716-38 Riviera St., Walnut Creek, CA 94596 1 5 0 3 0 0 9 Family Robin Lane 1149 Meadow Lane, Concord, CA 94520 4 4 Family Samara Terrace by Eden Housing 102 Civic Dr, Hercules, CA 94547 0 51 0 0 0 51 Senior St. Paul's Community Center and Apartments 1880 Trinity Ave., Walnut Creek, CA 94596 11 7 18 Family Tabora Gardens 3701 Tabora Dr., Antioch, CA 94509 12 12 Senior Terrace Glen Apartments 107 W. 20th St., Antioch, CA 94509 1 3 4 Family Terraces - Senior 2100 Nevin Ave., Richmond, CA 94801 52 47 13 10 5 127 Senior Terraces - Family 2200 Nevin Ave., Richmond, CA 94801 10 20 5 35 Family Third Ave. Apts. By SAHA 1550 Third Ave/2618 Baldwin Ln., Walnut Creek, CA 94597 0 15 6 8 0 0 29 Family Trinity Plaza Apartments 350 MacDonald Ave., Richmond, CA 94801 65 65 Senior Legacy Court Fred Jackson Way, Richmond, CA 13 12 25 Family DeAnza Gardens HACCC - 205 Pueblo Ave, #D 179 Family Mayfair Affordable 11690 San Pablo Ave, El Cerrito 6 6 6 7 17 Family Hope Village 2100 Tice Valley Rd, Walnut Creek 6 6 Family Chesley Mutual Housing 802 Chesley Ave., Richmond, CA 3 5 8 Family 648 17-40 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Lillie Mae Jones II 100 and 106 MacDonald Ave, Richmond, CA 8 15 8 8 Family 100 38th Street - Family 100 38th Street, Richmond, CA 1 6 6 6 19 Family 100 38th Street - Supportive 100 38th Street, Richmond, CA 29 29 15 Family Alvarado Gardens 13831 San Pablo Ave., San Pablo, CA 11 7 7 25 Family La Loma Apartments Adjacent to 710 Willow Ave, Rodeo, CA 7 24 16 Senior Riverhouse 700 Alhambra Ave., Martinez, CA 10 7 1 18 Family TBV Villas @ Renaissance 1827 San Joaquin Street, Richmond, CA 7 7 9 23 Family Sunflower Hills @ Lafayette Lane 3470 Mt. Diablo Blvd., Lafayette 1 18 6 13 Family San Pablo Family Housing 1820 Rumrill Blvd., San Pablo 15 10 8 Family Galindo Terrace 1313 and 1321 Galindo Street, Concord 13 13 Family 699 YVR 699 Ygnacio Valley Rd., Walnut Creek 16 5 2 1 24 Family 2251 San Ramon Valley 2251 San Ramon Valley Blvd., San Ramon 2 5 1 8 Family Choice in Aging Senior Housing 490 Golf Club Rd. Pleasant Hill, CA 21 21 Senior 811 San Pablo 811 San Pablo Ave., Pinole, CA 15 8 Family/Vete ran Nevin Plaza 2400 Nevin Avenue, Richmond, CA 12 120 6 138 Family RAD ASSISTED PBV UNITS Antioch Scattered - Pinecrest Apartments 1945 Cavallo Rd., Antioch, CA 9 9 Family Antioch Scattered - Terrace Glen Apartments 107 W. 20th St., Antioch, CA 1 11 12 Family Church Lane Apartments 2555 Church Lane, San Pablo, CA 4 1 5 Family El Cerrito Senior (Hana Gardens) 10848 and 10860 San Pablo Ave., El Cerrito, CA 94530 23 23 Senior Elaine Null Apartments 112 Alves Lane, Pittsburg, CA 2 2 Family Friendship Manor – RAD 564 Stege Avenue, Richmond, CA 94804 54 2 56 Elderly/ Disabled Garden Park Apartments 2387 Lisa Lane, Pleasant Hill, CA 14 14 Family 649 17-41 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Heritage Point Apartments 1540 Fred Jackson Way, Richmond, CA 6 6 Family Hookston Senior Homes 80 W. Hookston Rd., Pleasant Hill, CA 4 1 5 Senior Idaho Apartments - RAD 2 10203 San Pablo Ave., El Cerrito/Richmond 94530 28 28 Family Robin Lane 1149 Meadow Lane, Concord, CA 2 2 4 Family St. Paul's Community Center and Apartments 1880 Trinity Ave., Walnut Creek, CA 5 5 Family Tabora Gardens 3701 Tabora Dr., Antioch, CA 94509 22 22 Senior Triangle Court - RAD 980 Triangle Court, Richmond, CA 94804 26 56 15 97 Family 17-VI.D. SELECTION FROM THE WAITING LIST [24 CFR 983.251(C)] Applicants who will occupy units with PBV assistance must be selected from HACCC’s site- based waiting list for that property. HACCC shall establish selection criteria or preferences for occupancy of particular PBV units. HACCC may place families referred by the PBV owner to their PBV site- based waiting list. Continuum of Care Assisted Units In addition to site-based waiting lists for each PBV property, HACCC shall maintain a separate wait list for units designated for assistance through the Continuum of Care's Coordinated Entry System (CES). These units are required to be used to house homeless families that are in the CES for housing assistance referral. When vacancies occur at the PBV properties in these designated units, the owner shall request a suitable referral from the Coordinated Entry System. Once the owner has reviewed the application and accepted the referral for housing assistance, the owner shall refer the family to HACCC's initial eligibility team for program eligibility determination and leasing. Families will only be placed on this waiting list if they are deemed suitable for occupancy by the owner and immediately processed for intake. This waiting list will not have a preference designation since all additions to the list will immediately be designated for specific units within the PBV portfolio. The only qualifier will be the date and time of the applicant's addition to the CES wait list. Units eligible for CES assistance and priority are as follows: • Garden Park Apartments - 2387 Lisa Lane, Pleasant Hill, CA • Idaho Apartments - 10203 San Pablo Ave., El Cerrito/Richmond 94530 • Lakeside Apartments - 1897 Oakmead Dr., Concord, CA 1. Unit A-10 5. Unit C-7 9. Unit E-1 2. Unit B-3 6. Unit C-8 10. Unit E-14 3. Unit B-5 7. Unit D-2 11. Unit G-9 650 17-42 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 4. Unit C-1 8. Unit D-16 • Robin Lane – 1149 Meadow Lane, Concord, CA 1. M103 2. M203 3. R101 4. R104 5. R204 • St. Paul’s Commons – 1860 Trinity Ave., Walnut Creek, CA 1. 202 6. 306 11. 406 2. 203 7. 310 12. 411 3. 209 8. 311 13. 412 4. 212 9. 313 14. 413 5. 213 10. 316 x Lillie Mae Jones – 120 MacDonald Ave., Richmond, CA 1. 103 5. 209 2. 104 6. 302 3. 202 7. 303 4. 203 8. 307 x Hacienda Senior Apartments – 1300 Roosevelt Ave., Richmond, CA 1. 101 2. 104 3. 109 4. 120 5. 204 6. 211 7. 220 8. 224 9. 304 10. 308 11. 319 12. 325 13. 326 14. 405 15. 408 16. 419 17. 425 18. 505 19. 510 20. 514 21. 523 22. 526 23. 604 24. 610 25. 619 x Rick Judd Commons – 1313 Galindo Street, Concord, CA 1. Unit 210 5. Unit 310 9. Unit 412 2. Unit 211 6. Unit 312 10. Unit 414 3. Unit 212 7. Unit 314 11. Unit 510 4. Unit 214 8. Unit 410 12. Unit 512 13. Unit 514 x Valor Village – 811 San Pablo Avenue, Pinole, CA 1. 103 5. 302 2. 104 6. 303 3. 204 7. 403 651 17-45 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 4. 210 8. 404 This list may be modified from time to time to reflect new units added to the CES portfolio with PBV designations. Income Targeting [24 CFR 983.251(C)(6)] At least 75 percent of the families admitted to HACCC’s tenant-based and project-based voucher programs from the waiting list must be extremely-low-income families in accordance with HUD practice and regulations. The income targeting requirement applies to the total of admissions to both programs. Units With Accessibility Features [24 CFR 983.251(C)(7)] When selecting families to occupy PBV units that have special accessibility features for persons with disabilities, HACCC must first refer families who require such features to the owner. Preferences [24 CFR 983.251(D)] HACCC may use the same selection preferences that are used for the tenant-based voucher program, establish selection criteria or preferences for the PBV program as a whole, or for occupancy of particular PBV developments or units. HACCC must provide an absolute selection preference for eligible in-place families as described in Section 17-VI.B. above. Although HACCC is prohibited from granting preferences to persons with a specific disability, HACCC may give preference to disabled families who need services offered at a particular project or site if the preference is limited to families (including individuals): • With disabilities that significantly interfere with their ability to obtain and maintain themselves in housing; • Who, without appropriate supportive services, will not be able to obtain or maintain themselves in housing; and • For whom such services cannot be provided in a non-segregated setting. In advertising such a project, the owner may advertise the project as offering services for a particular type of disability; however, the project must be open to all otherwise eligible disabled persons who may benefit from services provided in the project. In these projects, disabled residents may not be required to accept the particular services offered as a condition of occupancy. If HACCC has projects with "excepted units" (units specifically made available for elderly or families receiving supportive services), HACCC must give preference to such families when referring families to these units [24 CFR 983.261(b); FR Notice 1/18/17]. HACCC Policy 652 17-46 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC will provide a selection preference when required by the regulation (i.e., eligible in- place families and mobility impaired persons for accessible units). In the event an owner is obligated to house specific populations in conformance with Federal, State or Local funding regulatory agreements, HACCC shall review the preferences for the designated site-based wait list and determine on a case-by-case basis whether a modification is required and will be adopted in this administrative plan. The following preferences have been adopted by HACCC for all PBV Site-Based Wait Lists: Eligible households from a converting project under RAD interested in off-site replacement units for designated RAD Converted units. (500 Points) Homeless - RAD SRO ONLY: Eligible households for RAD PBV projects converted from the McKinney Moderate Rehabilitation Single Room Occupancy (SRO) Program to RAD under Component 2 of the RAD Program who verify homelessness pursuant to the HUD McKinney-Vento Homeless Assistance Act as amended by the HEARTH Act and contained in the Continuum of Care at 24 CFR § 578.3. (50 Points) Eligible in-place families as described as described in Section 17-VI.B. (200 Points); Eligible households from the Housing Choice Voucher Wait List. (150 Points); Current or former members of the U.S. Armed Forces, veterans, or surviving spouses of veterans (as required by state law) (1 Point); Applicants who live, work or have been hired to work in HACCC’s jurisdiction (all of Contra Costa County) The use of a residency preference will not have the purpose or effect of delaying or otherwise denying admission to the program based on the race, color, ethnic origin, gender, religion, disability, or age of any member of an applicant family; • Eligibility for this preference must be demonstrated by having a permanent physical residence within the jurisdictional area. Physical residence shall be defined as a domicile with a mailing address, other than a P.O. Box, for which the applicant can produce one or more of the following: a lease or purchase agreement, utility bills in their name showing the stated address, two pieces of first-class mail addressed to the applicant or a member of their household at the stated address. In certain circumstances of homelessness, third party verification from service agencies, clergy, merchants or other reliable source can be substituted subject to the approval of HACCC. (10 Points) Applicants who have been involuntarily displaced from housing due to a federal or state declared disaster, government action (e.g., code enforcement, public improvement or development. Government action will also include participants in a witness protection program) or action by a housing owner that is beyond an applicant’s ability to control and which occurs despite the applicant's having met all previous conditions of occupancy, and is other than a rent increase (e.g. conversion of a unit to non-rental or residential use, owner wants the property for personal use, foreclosure). If the owner is an immediate family relative and there has been no previous rental agreement and the applicant has been part of the owner's family immediately prior to application, the applicant will not be considered involuntarily 653 17-47 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 displaced. To receive this preference, applicants must not be living in standard, permanent replacement housing. (State law requires a preference in cases of displacement by public or private action) (20 Points); Formerly homeless families who have graduated from a Contra Costa County Continuum of Care (COC) funded permanent supportive housing program, or another homeless housing program participating in the COC Coordinated Entry system, that partners with HACCC such as the Continuum of Care Rental Assistance Program formerly known as Shelter Plus Care. A referral from the COC Coordinated Entry system is required to be eligible for this preference (500 Points); Any family that has been terminated from HACCC’s HCV program due to insufficient program funding (20 Points); All applicants will be assigned points based on any preference(s) for which they qualify (e.g., a veteran and resident of HACCC’s jurisdiction would receive 11 points). Applicants with more preference points will be ranked ahead of applicants with fewer preference points. Among applicants with the same number of preference points, families will be selected according to the date and time of application to that site-based wait list. A family who applied ahead of another family with the same preference points will have preference over that family. 17-VI.E. OFFER OF PBV ASSISTANCE Refusal Of Offer [24 CFR 983.251(E)(3)] HACCC is prohibited from taking any of the following actions against a family who has applied for, received, or refused an offer of PBV assistance: • Refuse to list the applicant on the waiting list for tenant-based voucher assistance; • Deny any admission preference for which the applicant qualifies; • Change the applicant’s place on the waiting list based on preference, date, and time of application, or other factors affecting selection under HACCC’s selection policy; • Remove the applicant from the tenant-based voucher waiting list. The HACCC shall remove an applicant from the site-based wait list of a project when the applicant refuses an offer of housing at the specific site. At the Executive Director’s discretion, exceptions may be made for situations where the family is forced to refuse an offer of PBV housing due to a family, medical or legal obstacle. If an applicant is removed from a PBV waiting list for failing to reply to a wait list update or other correspondence or mail is returned as undeliverable, the applicant shall have up to one year from the date of removal from the waiting list to contact HACCC to request the reinstatement of their 654 17-48 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 application. HACCC shall reinstate the applicant without penalty. After one year, the applicant must re-apply to the wait list when it is opened. Disapproval By Landlord [24 CFR 983.251(E)(2)] If a PBV owner rejects a family for admission to the owner’s units, such rejection may not affect the family’s position on the tenant-based voucher waiting list. Rejection by the PBV owner, however, shall be grounds for removal from the PBV site-based wait list. Acceptance of Offer [24 CFR 983.252] Family Briefing When a family accepts an offer for PBV assistance, HACCC must give the family an oral briefing. The briefing must include information on how the program works and the responsibilities of the family and owner. In addition to the oral briefing, HACCC must provide a briefing packet that explains how HACCC determines the total tenant payment for a family, the family obligations under the program, and applicable fair housing information. HACCC shall conduct briefings for new participants and households moving to other units by telephone or other electronic means and refer them to our website for the briefing packet or mail it to the family to have and follow along with staff during the phone briefing. The tenant file will be documented with the date and time of the remote briefing and how the briefing packet was provided to them. Persons With Disabilities If an applicant family’s head or spouse is disabled, HACCC must assure effective communication, in accordance with 24 CFR 8.6, in conducting the oral briefing and in providing the written information packet. This may include making alternative formats available (see Chapter 2). In addition, HACCC must have a mechanism for referring a family that includes a member with a mobility impairment to an appropriate accessible PBV unit. Persons With Limited English Proficiency HACCC should take reasonable steps to assure meaningful access by persons with limited English proficiency in accordance with Title VI of the Civil Rights Act of 1964 and Executive Order 13166 (see Chapter 2). 17-VI.F. OWNER SELECTION OF TENANTS The owner is responsible for developing written tenant selection procedures that are consistent with the purpose of improving housing opportunities for very low-income families and reasonably related to program eligibility and an applicant’s ability to fulfill their obligations under the lease. An owner must promptly notify in writing any rejected applicant of the grounds for any rejection [24 CFR 983.253(b)]. 655 17-49 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Leasing [24 CFR 983.253(A)] During the term of the HAP contract, the owner must lease contract units to eligible families that are selected and referred by HACCC from HACCC’s HCV or site-based waiting list. The contract unit leased to the family must be the appropriate size unit for the size of the family, based on HACCC’s subsidy standards. Filling Vacancies [24 CFR 983.254(A)] The owner must promptly notify HACCC of any vacancy or expected vacancy in a contract unit. After receiving such notice, HACCC must make every reasonable effort to promptly refer a sufficient number of families for the owner to fill such vacancies. HACCC and the owner must make reasonable efforts to minimize the likelihood and length of any vacancy. HACCC Policy The owner must notify HACCC in writing (mail, fax, or e-mail) within 5 business days of learning about any vacancy or expected vacancy. HACCC will make every reasonable effort to refer families to the owner within 10 business days of receiving such notice from the owner. Reduction In HAP Contract Units Due To Vacancies [24 CFR 983.254(B)] If any contract units have been vacant for 120 or more days since owner notice of the vacancy, HACCC may give notice to the owner amending the HAP contract to reduce the number of contract units by subtracting the number of contract units (according to the bedroom size) that have been vacant for this period. HACCC Policy If any contract units have been vacant for 120 days, HACCC will give notice to the owner that the HAP contract will be amended to reduce the number of contract units that have been vacant for this period. HACCC will provide the notice to the owner within 10 business days of the 120th day of the vacancy. Unless the owner can give adequate reason for the HACCC not to reduce the number of contract units within 15 calendar days of the date of the HACCC notice the amendment to the HAP contract will be effective the 1st day of the month following the date of HACCC’s notice. 17-VI.G. TENANT SCREENING [24 CFR 983.255] HACCC Responsibility 656 17-50 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC is not responsible or liable to the owner or any other person for the family’s behavior or suitability for tenancy. However, HACCC may opt to screen applicants for family behavior or suitability for tenancy and may deny applicants based on such screening. HACCC Policy HACCC will not conduct screening to determine a PBV applicant family’s suitability for tenancy. HACCC must provide the owner with an applicant family’s current and prior address (as shown in HACCC records) and the name and address (if known by HACCC) of the family’s current landlord and any prior landlords. In addition, HACCC may offer the owner other information HACCC may have about a family, including information about the tenancy history of family members or about drug trafficking and criminal activity by family members. HACCC must provide applicant families a description of HACCC policy on providing information to owners, and HACCC must give the same types of information to all owners. HACCC Policy HACCC will inform owners of their responsibility to screen prospective tenants and will provide owners with the required known name and address information, at the time of the turnover HQS inspection or before. HACCC will not provide any additional information to the owner, such as tenancy history, criminal history, etc. Owner Responsibility The owner is responsible for screening and selection of the family to occupy the owner’s unit. When screening families the owner may consider a family’s background with respect to the following factors: • Payment of rent and utility bills; • Caring for a unit and premises; • Respecting the rights of other residents to the peaceful enjoyment of their housing; • Drug-related criminal activity or other criminal activity that is a threat to the health, safety, or property of others; and • Compliance with other essential conditions of tenancy. RAD re-screening restrictions may apply pursuant to RAD Agreement. 657 17-51 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART VII: OCCUPANCY 17-VII.A. OVERVIEW After an applicant has been selected from the waiting list, determined eligible by HACCC, referred to an owner and determined suitable by the owner, the family will sign the lease and occupancy of the unit will begin. 17-VII.B. LEASE [24 CFR 983.256] The tenant must have legal capacity to enter a lease under state and local law. Legal capacity means that the tenant is bound by the terms of the lease and may enforce the terms of the lease against the owner. Form Of Lease [24 CFR 983.256(B)] The tenant and the owner must enter into a written lease agreement that is signed by both parties. If an owner uses a standard lease form for rental units to unassisted tenants in the locality or premises, the same lease must be used for assisted tenants, except that the lease must include a HUD-required tenancy addendum. The tenancy addendum must include, word-for-word, all provisions required by HUD. If the owner does not use a standard lease form for rental to unassisted tenants, the owner may use another form of lease. HACCC Policy HACCC will not review the owner’s lease for compliance with state or local law. However, if HACCC becomes aware that an owner’s lease does not comply with state and local law, then HACCC will require the owner to modify the lease in order to comply with state and local law. If the owner does not do this within 15 business days, then HACCC may decline to approve the tenancy. Lease Requirements [24 CFR 983.256(C)] The lease for a PBV unit must specify all of the following information: • The names of the owner and the tenant; • The unit rented (address, apartment number, if any, and any other information needed to identify the leased contract unit); • The term of the lease (initial term and any provision for renewal); 658 17-52 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • The amount of the tenant rent to owner, which is subject to change during the term of the lease in accordance with HUD requirements; • A specification of the services, maintenance, equipment, and utilities that will be provide by the owner; and • The amount of any charges for food, furniture, or supportive services. • RAD provision that the lease will be renewed except for cause. Tenancy Addendum [24 CFR 983.256(D)] The tenancy addendum in the lease must state: • The program tenancy requirements; • The composition of the household as approved by HACCC (the names of family members and any HACCC-approved live-in aide); • All provisions in the HUD-required tenancy addendum must be included in the lease. The terms of the tenancy addendum prevail over other provisions of the lease. Initial Term And Lease Renewal [24 CFR 983.256(F)] The initial lease term must be for at least one year. The lease must provide for automatic renewal after the initial term of the lease in either successive definitive terms (e.g. month-to month or year- to-year) or an automatic indefinite extension of the lease term. For automatic indefinite extension of the lease term, the lease terminates if any of the following occur: • The owner terminates the lease for good cause • The tenant terminates the lease • The owner and tenant agree to terminate the lease • HACCC terminates the HAP contract • HACCC terminates assistance for the family Changes In The Lease [24 CFR 983.256(E)] If the tenant and owner agree to any change in the lease, the change must be in writing, and the owner must immediately give HACCC a copy of all changes. The owner must notify HACCC in advance of any proposed change in the lease regarding the allocation of tenant and owner responsibilities for utilities. Such changes may only be made if approved by HACCC and in accordance with the terms of the lease relating to its amendment. HACCC must re-determine reasonable rent, in accordance with program requirements, based on any change in the allocation of the responsibility for utilities between the owner and the tenant. The re- determined reasonable rent will be used in calculation of the rent to owner from the effective date of the change. 659 17-53 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Owner Termination Of Tenancy [24 CFR 983.257] With two exceptions, the owner of a PBV unit may terminate tenancy for the same reasons an owner may in the tenant-based voucher program (see Section 12-III.B. and 24 CFR 982.310). In the PBV program, terminating tenancy for "good cause" does not include doing so for a business or economic reason, or a desire to use the unit for personal or family use or other non-residential purpose. Special RAD Provisions Regarding Project Owner Termination of Tenancy Project Owner termination of tenancy and eviction procedures for RAD conversions to PBV will require that PHAs provide adequate written notice of termination of the lease which shall not be less than: a. A reasonable period of time, but not to exceed 30 days: i. If the health or safety of other tenants, PHA employees, or persons residing in the immediate vicinity of the premises is threatened; or ii. In the event of any drug-related or violent criminal activity or any felony conviction; b. 14 days in the case of nonpayment of rent; and c. 30 days in any other case, except that if a State or local law provides for shorter period of time, such shorter period shall apply. Tenant Absence From The Unit [24 CFR 983.256(G) And 982.312(A)] The owner may specify in the lease a maximum period of tenant absence from the unit that is shorter than the maximum period permitted by HACCC policy. According to program requirements, the family’s assistance must be terminated if they are absent from the unit for more than 180 consecutive days. HACCC termination of assistance actions due to family absence from the unit are subject to 24 CFR 981.312, except that the unit is not terminated from the HAP contract if the family is absent for longer than the maximum period permitted. Continuation of Housing Assistance Payments [24 CFR 982.258] Housing assistance payments shall continue until the tenant rent equals the rent to owner. The cessation of housing assistance payments at such point will not affect the family's other rights under its lease, nor will such cessation preclude the resumption of payments as a result of later changes in income, rents, or other relevant circumstances if such changes occur within 180 days following the date of the last housing assistance payment by HACCC. After the 180-day period, the unit shall be removed from the HAP contract pursuant to 24 CFR 983.211. HACCC Policy If a participating family receiving zero assistance experiences a change in circumstances that would result in a HAP payment to the owner, the family must notify HACCC of the change and request an interim reexamination before the expiration of the 180-day period. Security Deposits [24 CFR 983.259] 660 17-54 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The owner may collect a security deposit from the tenant. HACCC may prohibit security deposits in excess of private market practice, or in excess of amounts charged by the owner to unassisted tenants. HACCC Policy HACCC will allow the owner to collect a security deposit amount the owner determines is appropriate, as long as it does not exceed that allowed under state law. When the tenant moves out of a contract unit, the owner, subject to state and local law, may use the security deposit, including any interest on the deposit, in accordance with the lease, as reimbursement for any unpaid tenant rent, damages to the unit, or other amounts owed by the tenant under the lease. The owner must give the tenant a written list of all items charged against the security deposit and the amount of each item. After deducting the amount used to reimburse the owner, the owner must promptly refund the full amount of the balance to the tenant. If the security deposit does not cover the amount owed by the tenant under the lease, the owner may seek to collect the balance form the tenant. HACCC has no liability or responsibility for payment of any amount owed by the family to the owner. 17-VII.C. MOVES Overcrowded, Under-Occupied, And Accessible Units [24 CFR 983.260] If HACCC determines that a family is occupying a wrong size unit, based on HACCC’s subsidy standards, or a unit with accessibility features that the family does not require, and the unit is needed by a family that does require the features, HACCC must promptly notify the family and the owner of this determination, and HACCC must offer the family the opportunity to receive continued housing assistance in another unit. HACCC Policy HACCC will notify the family and the owner of the family’s need to move based on the occupancy of a wrong-size or accessible unit within 10 business days of HACCC’s determination. HACCC will offer the family the following types of continued assistance in the following order, based on the availability of assistance: • PBV assistance in the same project; • PBV assistance in another project; and • Tenant-based voucher assistance. If HACCC offers the family a tenant-based voucher, HACCC must terminate the housing assistance payments for a wrong-sized or accessible unit at the earlier of the expiration of the term of the family’s voucher (including any extension granted by HACCC) or the date upon which the family 661 17-55 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 vacates the unit. If the family does not move out of the wrong-sized unit or accessible unit by the expiration of the term of the family's voucher, HACCC must remove the unit from the HAP contract. If HACCC offers the family another form of assistance that is not a tenant-based voucher, and the family does not accept the offer, does not move out of the PBV unit within a reasonable time as determined by HACCC, or both, HACCC must terminate the housing assistance payments for the unit at the expiration of a reasonable period as determined by HACCC and remove the unit from the HAP contract HACCC Policy When HACCC offers a family another form of assistance that is not a tenant-based voucher, the family will be given 60 days from the date of the offer to accept the offer and move out of the PBV unit. If the family does not move out within this 60-day time frame, HACCC will terminate the housing assistance payments at the expiration of this 60-day period. HACCC may make exceptions to this 60-day period if needed for reasons beyond the family’s control such as death, serious illness, or other medical emergency of a family member. Family Right To Move [24 CFR 983.261] The family may terminate the lease at any time after the first year of occupancy. The family must give advance written notice to the owner in accordance with the lease and provide a copy of such notice to HACCC. If the family wishes to move with continued tenant-based assistance, the family must contact HACCC to request the rental assistance prior to providing notice to terminate the lease. If the family terminates the lease in accordance with these requirements, HACCC is required to offer the family the opportunity for continued tenant-based assistance in the form of a voucher or other comparable tenant-based rental assistance. If voucher or other comparable tenant-based assistance is not immediately available upon termination of the family’s lease in the PBV unit, HACCC must give the family priority to receive the next available opportunity for continued tenant-based assistance. The above policies do not apply when the family or a member of the family is or has been the victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking, as provided in 24 CFR part 5, subpart L, and the move is needed to protect the health or safety of the family or family member, or any family member has been the victim of a sexual assault that occurred on the premises during the 90-calendar-day period preceding the family's request to move. A PHA may not terminate assistance if the family, with or without prior notification to the PHA, moves out of a unit in violation of the lease, if such move occurs to protect the health or safety of a family member who is or has been the victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking and who reasonably believed they was threatened with imminent harm from further violence if they remained in the dwelling unit, or any family member has been the victim of a sexual assault that occurred on the premises during the 90-calendar-day period preceding the family's request to move. 662 17-56 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If a family breaks up as a result of an occurrence of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking, as provided in 24 CFR part 5, subpart L, the PHA may offer the victim the opportunity for continued tenant-based rental assistance. If the family terminates the assisted lease before the end of the first year, the family relinquishes the opportunity for continued tenant-based assistance. If the family seeks to move with continued assistance but is not in good standing, HACCC may deny the request subject to the informal hearing process. Good standing is defined as not owing back rent, not the subject of documented program and lease violations, not under eviction for violation of lease terms or subject to a proposal for termination due to a violation of program obligations. Rental Assistance Demonstration (RAD) Choice Mobility Alternative HUD recognizes that it remains important for HACCC to still be able to use tenant-based vouchers to address the specific housing needs and priorities of the community. Therefore, HUD has established an alternative requirement for PHAs where, as a result of RAD, the total number of PBV units (including RAD PBV units) under HAP contract administered by HACCC exceeds 20 percent of the HACCC’s authorized units under its HCV ACC with HUD. HACCC Policy HACCC shall not provide more than three-quarters of its turnover vouchers in any single year to the residents of RAD Covered Projects. While HACCC is not required to establish a voucher inventory turnover cap, if such a cap is implemented, HACCC shall create and maintain a waiting list in the order in which the requests from eligible households are received. 17-VII.D. EXCEPTIONS TO THE OCCUPANCY CAP [24 CFR 983.262] As of April 17, 2018, the PHA may not pay housing assistance under a PBV HAP contract for more than the greater of 25 units or 25 percent of the number of dwelling units in a project unless: • The units are exclusively for elderly families • The units are for households eligible for supportive services available to all families receiving PBV assistance in the project If the project is located in a census tract with a poverty rate of 20 percent or less, as determined in the most recent American Community Survey Five-Year estimates, the project cap is the greater of 25 units or 40 percent (instead of 25 percent) of the units in the project [FR Notice 7/14/17]. If a family at the time of initial tenancy is receiving and while the resident of an excepted unit has received Family Self-Sufficiency (FSS) supportive services or any other service as defined by HACCC and successfully completes the FSS contract of participation or the supportive services 663 17-57 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 requirement, the unit continues to count as an excepted unit for as long as the family resides in the unit. However, if the FSS family fails to successfully complete the FSS contract of participation or supportive services objective and consequently is no longer eligible for the supportive services, the family must vacate the unit within a reasonable period of time established by the PHA, and the PHA shall cease paying HAP on behalf of the family. Further, when a family (or remaining members of a family) residing in an excepted unit no longer meets the criteria for a "qualifying family" because the family is no longer an elderly due to a change in family composition, HACCC has the discretion to allow the family to remain in the excepted unit. If HACCC does not exercise this discretion, the family must vacate the unit within a reasonable period of time established by HACCC, and HACCC must cease paying housing assistance payments on behalf of the non-qualifying family. Individuals in units with supportive services who choose to no longer participate in a service or who no longer qualify for services they qualified for at the time of initial occupancy cannot subsequently be denied continued housing opportunity because of this changed circumstance. A PHA or owner cannot determine that a participant’s needs exceed the level of care offered by qualifying services or require that individuals be transitioned to different projects based on service needs. If the family fails to vacate the unit within the established time, the unit must be removed from the HAP contract unless the project is partially assisted, and it is possible for the HAP contract to be amended to substitute a different unit in the project in accordance with program requirements; or the owner terminates the lease and evicts the family. The housing assistance payments for a family residing in an excepted unit that is not in compliance with its family obligations to comply with supportive services requirements must be terminated by HACCC. HACCC may allow a family that initially qualified for occupancy of an excepted unit based on elderly family status to continue to reside in a unit, where through circumstances beyond the control of the family (e.g., death of the elderly family member or long-term or permanent hospitalization or nursing care), the elderly family member no longer resides in the unit. In this case, the unit may continue to be counted as an excepted unit for as long as the family resides in that unit. Once the family vacates the unit, in order to continue as an excepted unit under the HAP contract, the unit must be made available to and occupied by a qualified family. HACCC Policy HACCC will provide PBV assistance for excepted units. When HACCC determines that a family no longer meets the criteria for a "qualifying family" in connection with the "exception unit", HACCC will provide written notice to the family and owner within 10 business days of making the determination. The family will be given 60 days from the date of the notice to move out of the PBV unit. If the family does not move out within this 60-day time frame, HACCC will terminate the housing assistance payment at the expiration of the 60-day period. HACCC may make exceptions to this 60-day period if needed for reasons beyond the family’s control such as death, serious illness, or other medical emergency of a family member. 664 17-58 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART VIII: DETERMINING RENT TO OWNER 17-VIII.A. OVERVIEW The amount of the initial rent to an owner of units receiving PBV assistance is established at the beginning of the HAP contract term. Although for rehabilitated or newly constructed housing, the agreement to enter into HAP Contract (Agreement) states the estimated amount of the initial rent to owner, the actual amount of the initial rent to owner is established at the beginning of the HAP contract term. During the term of the HAP contract, the rent to owner is re-determined at the owner’s request in accordance with program requirements, and at such time that there is a ten percent or greater decrease in the published FMR. 17-VIII.B. RENT LIMITS [24 CFR 983.301] Except for certain tax credit units (discussed below), the rent to owner must not exceed the lowest of the following amounts: • An amount determined by HACCC, not to exceed 110 percent of the applicable fair market rent (or any HUD-approved exception payment standard) for the unit bedroom size minus any utility allowance; • The reasonable rent; or • The rent requested by the owner. Certain Tax Credit Units [24 CFR 983.301(C)] For certain tax credit units, the rent limits are determined differently than for other PBV units. Different limits apply to contract units that meet all of the following criteria: • The contract unit receives a low-income housing tax credit under the Internal Revenue Code of 1986; • The contract unit is not located in a qualified census tract; • There are comparable tax credit units of the same bedroom size as the contract unit in the same building, and the comparable tax credit units do not have any form of rental assistance other than the tax credit; and • The tax credit rent exceeds 110 percent of the fair market rent or any approved exception payment standard); For contract units that meet all of these criteria, the rent to owner must not exceed the lowest of: 665 17-59 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • The tax credit rent minus any utility allowance; • The reasonable rent; or • The rent requested by the owner. Definitions A qualified census tract is any census tract (or equivalent geographic area defined by the Bureau of the Census) in which at least 50 percent of households have an income of less than 60 percent of Area Median Gross Income (AMGI), or where the poverty rate is at least 25 percent and where the census tract is designated as a qualified census tract by HUD. Tax credit rent is the rent charged for comparable units of the same bedroom size in the building that also receive the low-income housing tax credit but do not have any additional rental assistance (e.g., tenant-based voucher assistance). Reasonable Rent [24 CFR 983.301(e) and 983.302(c)(2)] HACCC must determine reasonable rent in accordable with 24 CFR 983.303. The rent to owner for each contract unit may at no time exceed the reasonable rent, except in cases where the PHA has elected within the HAP contract not to reduce rents below the initial rent to owner and, upon redetermination of the rent to owner, the reasonable rent would result in a rent below the initial rent. However, the rent to owner must be reduced in the following cases: • To correct errors in calculations in accordable with HUD requirements • If additional housing assistance has been combined with PBV assistance after the execution of the initial HAP contract and a rent decrease is required pursuant to 24 CFR 983.55 • If a decrease in rent to owner is required based on changes in the allocation of the responsibility for utilities between owner and tenant If HACCC has not elected within the HAP contract to establish the initial rent to owner as the rent floor, the rent to owner shall not at any time exceed the reasonable rent. HACCC Policy HACCC elects within the HAP contract not to reduce rents below the initial level, with the exception of circumstances listed in 24 CFR 983.302(c)(2). If, upon redetermination of the rent to owner, the reasonable rent would result in a rent below the initial rent, HACCC will use the higher initial rent to owner amount. Use Of FMRs, Exception Payment Standards, And Utility Allowances [24 CFR 983.301(F)] When determining the initial rent to owner, HACCC must use the most recently published FMR in effect and the utility allowance schedule in effect at execution of the HAP contract. When re- determining the rent to owner, HACCC must use the most recently published FMR and the utility allowance schedule in effect at the time of re-determination. At its discretion, HACCC may for initial rent, use the amounts in effect at any time during the 30-day period immediately before the beginning 666 17-60 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 date of the HAP contract, or for re-determinations of rent, the 30-day period immediately before the re-determination date. Any HUD-approved exception payment standard amount under the tenant-based voucher program also applies to the project-based voucher program. HUD will not approve a different exception payment stand amount for use in the PBV program. Likewise, HACCC may not establish or apply different utility allowance amounts for the PBV program. The same utility allowance schedule applies to both the tenant-based and project-based voucher programs. HACCC Policy Upon written request by the owner, HACCC will consider using the FMR or utility allowances in effect during the 30-day period before the start date of the HAP, or re- determination of rent. The owner must explain the need to use the previous FMRs or utility allowances and include documentation in support of the request. HACCC will review and make a decision based on the circumstances and merit of each request. In addition to considering a written request from an owner, HACCC may decide to use the FMR or utility allowances in effect during the 30-day period before the start date of the HAP, or re-determination of rent, if HACCC determines it is necessary due to HACCC budgetary constraints. Use of Small Area FMRs (SAFMRs) [24 CFR 888.113(h)] While small area FMRs (SAFMRs) do not apply to PBV projects, PHAs that operate a tenant- based program under SAFMRs may apply SAFMRs to all future PBV HAP contracts. If the PHA adopts this policy, it must apply to all future PBV projects and the PHA’s entire jurisdiction. The PHA and owner may not subsequently choose to revert back to use of the FMRs once the SAFMRs have been adopted, even if the PHA subsequently changes its policy. Further, the PHA may apply SAFMRs to current PBV projects where the notice of owner selection was made on or before the effective dates of PHA implementation, provided the owner is willing to mutually agree to doing so and the application is prospective. The PHA and owner may not subsequently choose to revert back to use of the FMRs once the SAFMRs have been adopted, even if the PHA subsequently changes its policy. If rents increase as a result of the use of SAFMRs, the rent increase may not be effective until the first anniversary of the HAP contract. HACCC Policy HACCC will not apply SAFMRs to the PHA’s PBV program. Re-Determination Of Rent [24 CFR 983.302] HACCC must re-determine the rent to owner upon the owner’s request or when there is a ten percent or greater decrease in the published FMR. 667 17-61 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Rent Increase If an owner wishes to request an increase in the rent to owner from HACCC, it must be requested at the annual anniversary of the HAP contract (see Section 17-V.D.). The request must be in writing and in the form and manner required by HACCC. HACCC may only make rent increases in accordance with the rent limits described previously. There are no provisions in the PBV program for special adjustments (e.g., adjustments that reflect increases in the actual and necessary expenses of owning and maintaining the units which have resulted from substantial general increases in real property taxes, utility rates, or similar costs). HACCC Policy An owner’s request for a rent increase must be submitted to HACCC 60 days prior to the anniversary date of the HAP contract and must include the new rent amount the owner is proposing. HACCC may not approve, and the owner may not receive, any increase of rent to owner until and unless the owner has complied with requirements of the HAP contract, including compliance with HQSNSPIRE. The owner may not receive any retroactive increase of rent for any period of noncompliance. Rent Decrease If there is a decrease in the rent to owner, as established in accordance with program requirements such as a change in the FMR or exception payment standard, or reasonable rent amount, the rent to owner must be decreased regardless of whether the owner requested a rent adjustment. except where HACCC has elected within the HAP contract to not reduce rents below the initial rent under the initial HAP contract. Notice Of Rent Change The rent to owner is re-determined by written notice by HACCC to the owner specifying the amount of the re-determined rent. HACCC notice of rent adjustment constitutes an amendment of the rent to owner specified in the HAP contract. The adjusted amount of rent to owner applies for the period of 12 calendar months from the annual anniversary of the HAP contract. HACCC Policy HACCC will provide the owner with at least 30 days written notice of any change in the amount of rent to owner. HACCC-Owned Units [24 CFR 983.301(G)] For HACCC-owned PBV units, the initial rent to owner and the annual re-determination of rent at the anniversary of the HAP contract are determined by the independent entity approved by HUD. HACCC must use the rent to owner established by the independent entity. 668 17-62 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 17-VIII.C. REASONABLE RENT [24 CFR 983.303] At the time the initial rent is established and all times during the term of the HAP contract, the rent to owner for a contract unit may not exceed the reasonable rent for the unit as determined by HACCC, except where the PHA has elected within the HAP contract to not reduce rents below the initial rent under the initial HAP contract. When Rent Reasonable Determinations Are Required HACCC must re-determine the reasonable rent for a unit receiving PBV assistance whenever any of the following occur: • There is a ten percent or greater decrease in the published FMR in effect 60 days before the contract anniversary (for the unit sizes specified in the HAP contract) as compared with the FMR that was in effect one year before the contract anniversary date; • HACCC approves a change in the allocation of responsibility for utilities between the owner and the tenant; • The HAP contract is amended to substitute a different contract unit in the same project; or • There is any other change that may substantially affect the reasonable rent. How To Determine Reasonable Rent The reasonable rent of a unit receiving PBV assistance must be determined by comparison to rent for other comparable unassisted units. When making this determination, HACCC must consider factors that affect market rent. Such factors include the location, quality, size, type and age of the unit, as well as the amenities, housing services maintenance, and utilities to be provided by the owner. Comparability Analysis For each unit, the comparability analysis must use at least three comparable units in the private unassisted market. This may include units in the premises or project that is receiving project- based assistance. The analysis must show how the reasonable rent was determined, including major differences between the contract units and comparable unassisted units, and must be retained by HACCC. The comparability analysis may be performed by HACCC staff or by another qualified person or entity. Those who conduct these analyses or are involved in determining the housing assistance payment based on the analyses may not have any direct or indirect interest in the property. HACCC-Owned Units For HACCC-owned units, the amount of the reasonable rent must be determined by an independent agency approved by HUD in accordance with PBV program requirements. The independent entity 669 17-63 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 must provide a copy of the determination of reasonable rent for HACCC- owned units to HACCC and to the HUD field office where the project is located. Owner Certification Of Reasonable Rent By accepting each monthly housing assistance payment, the owner certifies that the rent to owner is not more than rent charged by the owner for other comparable unassisted units in the premises. At any time, HACCC may require the owner to submit information on rents charged by the owner for other units in the premises or elsewhere. 17-VIII.D. EFFECT OF OTHER SUBSIDY AND RENT CONTROL In addition to the rent limits discussed in Section 17-VIII.B above, other restrictions may limit the amount of rent to owner in a PBV unit. In addition, certain types of subsidized housing are not even eligible to receive PBV assistance (see Section 17-II.D). Other Subsidy [24 CFR 983.304] To comply with HUD subsidy layering requirements, at the discretion of HUD or its designee, a PHA shall reduce the rent to owner because of other governmental subsidies, including tax credits or tax exemptions, grants, or other subsidized funding. For units receiving assistance under the HOME program, rents may not exceed rent limits as required by that program. For units in any of the following types of federally subsidized projects, the rent to owner may not exceed the subsidized rent (basic rent) or tax credit rent as determined in accordance with requirements for the applicable federal program: • An insured or non-insured Section 236 project; • A formerly insured or non-insured Section 236 project that continues to receive • Interest Reduction Payment following a decoupling action; • A Section 221(d)(3) below market interest rate (BMIR) project; • A Section 515 project of the Rural Housing Service; • A project receiving low-income housing tax credits; • Any other type of federally subsidized project specified by HUD. Combining Subsidy Rent to owner may not exceed any limitation required to comply with HUD subsidy layering requirements. Rent Control [24 CFR 983.305] 670 17-64 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 In addition to the rent limits set by PBV program regulations, the amount of rent to owner may also be subject to rent control or other limits under local, state, or federal law. 671 17-65 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART IX: PAYMENTS TO OWNER 17-IX.A. HOUSING ASSISTANCE PAYMENTS [24 CFR 983.351] During the term of the HAP contract, HACCC must make housing assistance payments to the owner in accordance with the terms of the HAP contract. During the term of the HAP contract, payments must be made for each month that a contract unit complies with NSPIRE standardsHQS and is leased to and occupied by an eligible family. The housing assistance payment must be paid to the owner on or about the first day of the month for which payment is due, unless the owner and HACCC agree on a later date. Except for discretionary vacancy payments, HACCC may not make any housing assistance payment to the owner for any month after the month when the family moves out of the unit (even if household goods or property are left in the unit). The amount of the housing assistance payment by HACCC is the rent to owner minus the tenant rent (total tenant payment minus the utility allowance). In order to receive housing assistance payments, the owner must comply with all provisions of the HAP contract. Unless the owner complies with all provisions of the HAP contract, the owner does not have a right to receive housing assistance payments. 17-IX.B. VACANCY PAYMENTS [24 CFR 983.352] HACCC Policy If an assisted family moves out of the unit, the owner may keep the housing assistance payment for the calendar month when the family moves out. However, the owner may not keep the payment if HACCC determines that the vacancy is the owner’s fault. If HACCC determines that the owner is responsible for a vacancy and, as a result, is not entitled to the keep the housing assistance payment, HACCC will notify the landlord of the amount of housing assistance payment that the owner must repay. HACCC will require the owner to repay the amount owed in accordance with the policies in Section 16-IV.B. At the discretion of HACCC, the HAP contract may provide for vacancy payments to the owner. HACCC may only make vacancy payments if: • The owner gives HACCC prompt, written notice certifying that the family has vacated the unit and identifies the date when the family moved out (to the best of the owner’s knowledge); 672 17-66 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • The owner certifies that the vacancy is not the fault of the owner and that the unit was vacant during the period for which payment is claimed; • The owner certifies that it has taken every reasonable action to minimize the likelihood and length of vacancy; and • The owner provides any additional information required and requested by HACCC to verify that the owner is entitled to the vacancy payment. The owner must submit a request for vacancy payments in the form and manner required by HACCC and must provide any information or substantiation required by HACCC to determine the amount of any vacancy payment. If an owner’s HAP contract calls for vacancy payments to be made, and the owner wishes to receive vacancy payments, the owner must have properly notified HACCC of the vacancy in accordance with the policy in Section 17-VI.F. regarding filling vacancies. In order for a vacancy payment request to be considered, it must be made within 10 business days of the end of the period for which the owner is requesting the vacancy payment. The request must include the required owner certifications and HACCC may require the owner to provide documentation to support the request. If the owner does not provide the information requested by HACCC within 10 business days of HACCC’s request, no vacancy payments will be made. 17-IX.C. TENANT RENT TO OWNER [24 CFR 983.353] The tenant rent is the portion of the rent to owner paid by the family. The amount of tenant rent is determined by HACCC in accordance with HUD requirements. Any changes in the amount of tenant rent will be effective on the date stated in HACCC notice to the family and owner. The family is responsible for paying the tenant rent (total tenant payment minus the utility allowance). The amount of the tenant rent determined by HACCC is the maximum amount the owner may charge the family for rental of a contract unit. The tenant rent covers all housing services, maintenance, equipment, and utilities to be provided by the owner. The owner may not demand or accept any rent payment from the tenant in excess of the tenant rent as determined by HACCC. The owner must immediately return any excess payment to the tenant. RAD Phase-in of Increase in Tenant Rent Portion. If a tenant’s monthly rent increases by more than the greater of 10 percent or $25 purely as a result of conversion, the rent increase will be phased in over 3 or 5 years. To implement this provision, HUD is specifying alternative requirements for section 3(a)(1) of the Act, as well as 24 CFR § 983.3 (definition of “total tenant payment” (TTP)) to the extent necessary to allow for the phase-in of tenant rent increases. 673 17-67 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The method described below explains the set percentage-based phase-in a Project Owner must follow according to the phase-in period established. For purposes of this section “standard TTP” refers to the TTP calculated in accordance with regulations at 24 CFR §5.628 and the “most recently paid TTP” refers to the TTP recorded on line 9j of the family’s most recent HUD Form 50058. If a family in a project converting from Public Housing to PBV was paying a flat rent immediately prior to conversion, HACCC shall use the flat rent amount to calculate the phase in amount for Year 1, as illustrated below. Three Year Phase-in - Increase is the greater of 10 % of tenant's monthly rent or $25: • Year 1: Any recertification (interim or annual) performed prior to the second annual recertification after conversion – 33% of difference between most recently paid TTP or flat rent and the standard TTP • Year 2: Year 2 Annual Recertification (AR) and any Interim Recertification (IR) prior to Year 3 AR – 66% of difference between most recently paid TTP and the standard TTP • Year 3: Year 3 AR and all subsequent recertifications – Full standard TTP Five Year Phase-in - Increase is the greater of 50 % of tenant's monthly rent or $300: • Year 1: Any recertification (interim or annual) performed prior to the second annual recertification after conversion – 20% of difference between most recently paid TTP or flat rent and the standard TTP • Year 2: Year 2 AR and any IR prior to Year 3 AR – 40% of difference between most recently paid TTP and the standard TTP • Year 3: Year 3 AR and any IR prior to Year 4 AR – 60% of difference between most recently paid TTP and the standard TTP • Year 4: Year 4 AR and any IR prior to Year 5 AR – 80% of difference between most recently paid TTP and the standard TTP • Year 5 AR and all subsequent recertifications – Full standard TTP Please Note: In either the three-year phase-in or the five-year phase-in, once the standard TTP is equal to or less than the previous TTP, the phase-in ends and tenants will pay full TTP from that point forward. Tenant And HACCC Responsibilities The family is not responsible for the portion of rent to owner that is covered by the housing assistance payment and the owner may not terminate the tenancy of an assisted family for nonpayment by HACCC. Likewise, HACCC is responsible only for making the housing assistance payment to the owner in accordance with the HAP contract. HACCC is not responsible for paying tenant rent, or any other claim by the owner, including damage to the unit. HACCC may not use housing assistance payments 674 17-68 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 or other program funds (including administrative fee reserves) to pay any part of the tenant rent or other claim by the owner. Utility Reimbursements If the amount of the utility allowance exceeds the total tenant payment, HACCC must pay the amount of such excess to the tenant as a reimbursement for tenant-paid utilities, and the tenant rent to the owner must be zero. HACCC may pay the utility reimbursement directly to the family or to the utility supplier on behalf of the family. If HACCC chooses to pay the utility supplier directly, HACCC must notify the family of the amount paid to the utility supplier. HACCC Policy HACCC will make utility reimbursements to the family. 17-IX.D. OTHER FEES AND CHARGES [24 CFR 983.354] Meals And Supportive Services With the exception of PBV assistance in assisted living developments, the owner may not require the tenant to pay charges for meals or supportive services. Non-payment of such charges is not grounds for termination of tenancy. In assisted living developments receiving PBV assistance, the owner may charge for meals or supportive services. These charges may not be included in the rent to owner, nor may the value of meals and supportive services be included in the calculation of the reasonable rent. However, non- payment of such charges is grounds for termination of the lease by the owner in an assisted living development. Other Charges By Owner The owner may not charge extra amounts for items customarily included in rent in the locality or provided at no additional cost to unsubsidized tenants in the premises. 675 17-69 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EXHIBIT 17-1: PBV DEVELOPMENT INFORMATION (Fill out one for each development) Date: [Enter the date on which this form was completed] DEVELOPMENT INFORMATION Development Name: [Insert name of PBV development] Address: [Insert full address of PBV development] Owner Information: [Insert PBV development owner name and contact information. If development is PHA-owned, enter “PHA-owned.”] Property Management Company: [Insert property management company name and contact information, or enter “None”] PHA-Owned: [Enter “Yes” or “No.” If yes, enter name of independent entity] Mixed Finance Development: [Enter “Yes” or “No.” If yes, list other types of funding (i.e., LIHTC, HOME, etc.) and units to which other funding applies.] HAP CONTRACT Effective Date of Contract: [Enter start date of HAP contract] HOTMA Requirements: [If HAP contract was signed prior to April 18, 2017, enter “Pre-HOTMA.” If HAP contract was signed on or after April 18, 2017, enter “Post-HOTMA.”] Term of HAP Contract: [Enter term from HAP contract] Expiration Date of Contract: [Enter expiration date from HAP contract] PBV UNITS 0 BR 1 BR 2 BR 3 BR 4 BR 5 BR Total # of Units Initial Contract Rent $ $ $ $ $ $ Structure Type: [Identify the structure type, i.e. Single Family Detached, Duplex or Two Family, Row House or Town House, Low Rise (3,4 Stories, including Garden Apartment), Highrise (5 or more stories) Housing Type: [Identify if the units are an Independent Group Residence or Single Room Occupancy] 676 17-70 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 UTILITY RESPONSIBILITY [Enter in Accordance with the HAP Exhibit C] Utility Fuel Type (Gas, Electric, Oil, Coal, Other) Paid By (Tenant/Owner) Provided By (Tenant/Owner) Heating Electric Tenant Owner Cooking Electric Tenant Owner Water Heating Electric Tenant Owner Other Electric Tenant Owner Water Owner Owner Sewer Owner Owner Trash Collection Owner Owner Air Conditioning Tenant Owner Refrigerator Range/Microwave Other (specify) Accessible Units and Features: [Identify which units are accessible and describe accessibility features or enter “None”] Target Population: [Describe targeted population in accordance with HAP contract or enter “None”] Excepted Units: [Identify excepted unit types below or enter “None”] x Supportive Services: [Enter “Yes, see Exhibit D of HAP Contract” or enter “No”] x Elderly Units: [Enter “Yes” or “No.” If yes, identify which units are elderly units.] x Disabled Units (only for HAP contracts executed prior to April 18, 2017) [Enter “Yes” or “No.” If yes, identify which units are for persons with disabilities.] x FUPY/FYI Units: [Enter “Yes” or “No.” If yes, identify which units are FUP units] x Are units excepted because they are located in a low-poverty census tract area?: [Enter “Yes” or “No”] WAITING LIST AND SELECTION x Waiting List Type: Site-based waiting list x Preferences: [As noted in Section 17.1.B of this policy.] x Preference Verification: [Same as HCV] x For the PBV program, is the income limit the same as the HCV program? Same as HCV; see Chapter 3. OCCUPANCY 677 17-71 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 x Subsidy Standards: [Enter “Same as HCV; see Chapter 5” or describe. If different from HCV, note in Section 17.1.B of this policy] x Vacancy Payments: [Enter in accordance with HAP contract Part 1, e, 2 and Section 17-V.F. within this chapter] 678 17-72 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EXHIBIT 17-2: Special Provisions Applying to TPVs Awarded as Part of a Voluntary Conversion of Public Housing Units in Projects that Include RAD PBV Units [24 CFR Part 972.200; Notice PIH 2019-05; Notice PIH 2019-23] Under certain circumstances, HUD allows small PHAs to reposition a public housing project (or portion of a project) by voluntarily converting units to tenant-based housing choice voucher assistance. In order to preserve affordable housing for residents of the project, the PHA is given priority to receive replacement tenant protection vouchers (TPVs). As part of the voluntary conversion, the PHA has the option to continue to operate it as rental housing. If so, the PHA or subsequent owner must allow existing families to remain in their units using the TPV in the form of tenant-based assistance. In this situation, however, the PHA may choose to project-base these TPVs in the former public housing project. Families must still be provided with the option to remain in their unit using tenant-based assistance. In order for the PHA to project-base the assistance and include these units on the PBV HAP contract, the family must voluntarily consent in writing to PBV assistance following the requirements in Appendix A of Notice PIH 2019-05. If the family fails to consent to PBV assistance and chooses to remain using tenant-based assistance, the family’s unit is excluded from the PBV HAP contract until the family moves out or consents to switching to PBV assistance. In general, all applicable program regulations and guidance for the standard PBV program apply to these units. The PHA may also convert units in the same former public housing project to the PBV program under the rental assistance demonstration (RAD) program. The RAD statute authorizes HUD to waive certain statutory and regulatory provisions governing the standard PBV program and specify alternative requirements. In order to facilitate the uniform treatment of residents and units at the project, Notice PIH 2019-23 extended some of the alternative requirements to non- RAD PBV units in the converted project (i.e., the TPV units in the project). As such, while PBV TPV units in the converted project generally follow the requirements for the standard PBV program listed in this chapter, where HUD has specified alternative requirements for non-RAD PBV units in the project, PBV TPV units will instead follow the requirements outlined in Chapter 18 of this policy for the RAD PBV program. 679 17-73 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 RAD Requirements Applicable to Non-RAD units in the Project Alternative Requirement under RAD as Listed in Notice PIH 2019-23 Standard PBV Policy That Does Not Apply Applicable Policy in Chapter 18 1.6.A.4. Site Selection Compliance with PBV Goals 17-II.G. SITE SELECTION STANDARDS applies with the exception of deconcentration of poverty and expanding housing and economic opportunity requirements 18-II.F. SITE SELECTION STANDARDS 1.6.B.5.d. PBV Site-Specific Utility Allowances Alternative requirement under RAD. No corresponding policy in Chapter 17. 18-VII.C. UTILITY ALLOWANCES 1.6.C.1. No Rescreening of Tenants upon Conversion Policies contained in Chapter 3 relating to eligibility do not apply to existing tenants who receive TPVs. 18-V.B. PROHIBITED RESCREENING OF EXISTING TENANTS UPON CONVERSION 1.6.C.2. Right to Return Alternative requirement under RAD. No corresponding policy in Chapter 17. 18-I.D. RELOCATION REQUIREMENTS 1.6.C.3. Phase-in of Tenant Rent Increases Alternative requirements under RAD. No corresponding policy in Chapter 17. 18-VIII.D. PHASE-IN OF TENANT RENT INCREASES 1.6.C.4. Family Self Sufficiency (FSS) and Resident Opportunities and Self- Sufficiency Service Coordinator (ROSS-SC) Programs Not covered in administrative plan. 18-VI.C. PUBLIC HOUSING FSS AND ROSS PARTICIPANTS 680 17-74 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 1.6.C.5. Resident Participation and Funding Alternative requirement under RAD. No corresponding policy in Chapter 17. 18-VI.D. RESIDENT PARTICIPATION AND FUNDING 1.6.C.6. Resident Procedural Rights Policies related to hearings in Chapter 16 apply, with added procedural rights and notice requirements as outlined in Chapter 18. 18-VI.H. RESIDENTS’ PROCEDURAL RIGHTS 1.6.C.7. Earned Income Disregard (EID) Alternative requirements under RAD for in-place residents. 18-VI.G. EARNED INCOME DISALLOWANCE 1.6.C.8. Jobs Plus Not covered in administrative plan. No corresponding policy. 1.6.C.9. When Total Tenant Payment Exceeds Gross Rent Alternative requirements under RAD for in-place residents. New admissions follow policies in 17-VII.B. LEASE, Continuation of Housing Assistance Payments. 18-VI.B. LEASE, Continuation of Housing Assistance Payments 1.6.C.10. Under-Occupied Unit Alternative requirements under RAD for in-place residents. 18-VI.E. MOVES, Overcrowded, Under-Occupied, and Accessible Units New admissions follow 17-VII.C. MOVES, Overcrowded, Under- Occupied, and Accessible Units 1.6.D.4. Establishment of Alternative requirements under RAD for initial 18-V.D. ORGANIZATION OF 681 17-75 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Waiting List establishment of the waiting list. Once waiting list is established, follow 17- VI.D. SELECTION FROM THE WAITING LIST THE WAITING LIST 1.6.D.10. Initial Certifications and Tenant Rent Calculations Alternative requirements under RAD for in-place residents. No corresponding policy in Chapter 17. 18-VIII.C. TENANT RENT TO OWNER, Initial Certifications Note, while Notice PIH 2019-05 states that the PHA must screen families for eligibility for a tenant protection voucher and that families must be below the low-income limit (80 percent of AMI), Notice PIH 2019-23 waives these requirements for residents in projects that include RAD PBV units. 682 18-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 CHAPTER 18 PROJECT BASED VOUCHERS (PBV) UNDER THE RENTAL ASSISTANCE DEMONSTRATION (RAD) PROGRAM INTRODUCTION This chapter describes HUD regulations and PHA policies related to the Project-Based Voucher (PBV) program under the Rental Assistance Demonstration (RAD) program in eight parts: Part I: General Requirements. This part describes general provisions of the PBV program, including maximum budget authority requirements, relocation requirements, and equal opportunity requirements. Part II: PBV Project Selection. This part describes the cap on assistance at projects receiving PBV assistance, ownership and control, and site selection standards. Part III: Dwelling Units. This part describes requirements related to housing qualityNSPIRE standards, the type and frequency of inspections, and housing accessibility for persons with disabilities. Part IV: Housing Assistance Payments Contract. This part discusses HAP contract requirements and policies including the execution and term of the HAP contract. Part V: Selection of PBV Program Participants. This part describes the requirements and policies governing how the PHA and the owner will select a family to receive PBV assistance. Part VI: Occupancy. This part discusses occupancy requirements related to the lease and describes under what conditions families are allowed or required to move. Part VII: Determining Contract Rent. This part describes how the initial rent to owner is determined, and how rent will be redetermined throughout the life of the HAP contract. Part VIII: Payments to Owner. This part describes the types of payments owners may receive under this program. 683 18-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART I: GENERAL REQUIREMENTS 18-I.A. OVERVIEW AND HISTORY OF THE RAD PROGRAM The Rental Assistance Demonstration (RAD) program was authorized in 2012 in order to assess the effectiveness of converting public housing, moderate rehabilitation properties, and units under the rent supplement and rental assistance payments programs to long-term, project-based Section 8 rental assistance. The program’s four primary objectives are to: x Preserve and improve public and other assisted housing. x Standardize the administration of the plethora of federally subsidized housing programs and rules. The conversions are intended to promote operating efficiency by using a Section 8 project- based assistance model that has proven successful and effective for over 30 years. In other words, RAD aligns eligible properties more closely with other affordable housing programs. x Attract private market capital for property renovations. Through the use of this model, properties may be able to leverage private debt and equity to make capital repairs. x Increase tenant mobility opportunities. Under the first component, a PHA with public housing units may submit an application to HUD to convert some or all of their public housing units to long-term, project-based Section 8 HAP contracts under either: Project-based rental assistance (PBRA) under HUD’s Office of Multifamily Housing Programs. Project-based vouchers (PBVs) under HUD’s Office of Public and Indian Housing (PIH). This chapter will focus on public housing conversions to the PBV program under RAD. In order to distinguish between requirements for public housing conversion under RAD and PBV units under the standard PBV program, we will refer to the standard PBV program and the RAD PBV program. 18-I.B. APPLICABLE REGULATIONS On the whole, the regulations for both the standard and RAD PBV programs generally follow the regulations for the tenant-based HCV program found at 24 CFR Part 982. However, important parts of the tenant-based regulations do not apply to the project-based program. 24 CFR Part 983 outlines the sections of 24 CFR Part 982 that are not applicable to the project-based program. For the RAD PBV program, Congress authorized HUD to waive certain statutory and regulatory provisions or establish alternative requirements from the standard PBV program. These provisions are identified in Notice 2019-23 (issued September 5, 2019). Any non-RAD PBV units located in the covered project are subject to the same waivers and alternative requirements where noted in Notice PIH 2019-23 and in this policy. 684 18-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Otherwise, all regulatory and statutory requirements for the standard PBV program in 24 CFR Part 983 and Section 8(o)(13) of the Housing Act of 1937, and all applicable standing and subsequent Office of Public and Indian Housing (PIH) notices and guidance, including related handbooks, apply to RAD PBV. This includes environmental review, Davis-Bacon, and fair housing requirements. RAD is authorized by the Consolidated and Further Continuing Appropriations Act of 2012 (Public Law 112-55, approved November 18, 2011), as amended by the Consolidated Appropriations Act of 2014 (Public Law 113-76, approved January 17, 2014), and the Consolidated and Further Continuing Appropriations Act of 2015 (Public Law 113-235, approved December 6, 2014), the Consolidated Appropriations Act of 2016 (Public Law 114-113, approved December 18, 2015) ), the Consolidated Appropriations Act, 2017 (Public Law115-31, approved May 5, 2017), and section 237 of Title II, Division L, Transportation, Housing and Urban Development, and Related Agencies, of the Consolidated Appropriations Act, 2018 (Public Law 115-141, approved March 23, 2018) collectively, the “RAD Statute.” Requirements specific to the RAD program may be found in the following: Generally, public housing projects converting assistance under RAD are bound by the terms of the notice in effect at the time of closing. For all conversion types, HUD reserves the right, in its sole discretion and upon request from the applicant, to apply provisions from previous versions of this notice to program participants that are near conversion. - Notice PIH 2023-19 amends Notice PIH 2019-23 and Notice PIH 2021-07, and was effective immediately. x - Notice PIH 2019-23 was immediately applicable at the time of closing to all projects converting assistance (notwithstanding execution of a commitment for conversion). Notice PIH 2019-23 was published on September 5, 2019. - Except with respect to changes in the project eligibility and selection criteria, not included in this policy, which are effective after a 30-day comment period. - Notice PIH 2012-32, REV-3 was applicable to projects that were seeking conversion of assistance through RAD, including those where a CHAP had already been issued when it was published January 12, 2017. - Except with respect to changes in the project eligibility and selection criteria, not included in this policy, which were effective after a 30-day comment period. - Notice PIH 2012-32, REV-2, was applicable to projects that were seeking conversion of assistance through RAD, including those where a CHAP had already been issued when it was published June 15, 2015. - Except with respect to changes in the project eligibility and selection criteria, not included in this policy, which are effective after a 30-day comment period. x RAD Quick Reference Guide for Public Housing Converting to PBV Assistance (6/20) x RAD Welcome Guide for New Awardees: RAD 1st Component (3/15) 685 18-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 x Notice PIH 2016-17, Rental Assistance Demonstration (RAD) Notice Regarding Fair Housing and Civil Rights Requirements and Relocation Requirements Applicable to RAD First Component – Public Housing Conversions. - This Notice applies to all projects that have applied for RAD conversion but have not yet converted as of November 10, 2016. x Notice PIH 2014-17, Relocation Requirements under the RAD Program, Public Housing in the First Component. - This notice may apply to projects that have converted to RAD prior to November 10, 2016, AND who have requested and received approval from HUD to be governed by this notice. See PIH Notice 2016-17, Section 1, Paragraph 1.3 for applicability. NOTE: The policies in this chapter follow Notice PIH 2016-17. If your project falls under PIH 2014-17, applicable policies may be found in Section 18-I.D. RAD FAQs (http://www.radresource.net/search.cfm) HACCC Policy Project Closing Date RAD Notice Tabora Gardens 09/12/2016 2012-32, rev2 Garden Park Apartments 11/13/2017 2012-32, rev2 Robin Lane Apartments 11/28/2017 2012-32, rev2 Elaine Null Apartments 11/1/2017 2012-32, rev2 Church Lane Apartments 12/20/2017 2012-32, rev2 Hana Gardens Senior Apartments 01/01/2017 2012-32, rev2 Hookston Senior Homes 11/01/2018 2012-32, rev2 Heritage Point Apartments 12/21/2017 2012-32, rev2 Antioch Scattered Site Renovations 11/01/2018 2012-32, rev2 St. Paul's Commons 03/27/18 2012-32, rev2 Idaho Apartments 12/01/2017 2012-32, rev2 Friendship Manor 12/22/2015 2012-32, rev1 Triangle Court 12/22/2015 2012-32, rev1 686 18-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 In other words, the standard PBV program follows many of the same regulations as the tenant- based HCV program, but not all of them, and the RAD PBV program follows many of the same regulations as the standard PBV program, but not all of them. MTW agencies are able to apply activities impacting the PBV program that are approved in the MTW Plan to properties converting under RAD, provided they do not conflict with RAD requirements. 18-I.C. TENANT-BASED VS. PROJECT-BASED VOUCHER ASSISTANCE [24 CFR 983.2] Much of the tenant-based voucher program regulations also apply to the PBV program. Consequently, many of the PHA policies related to tenant-based assistance also apply to RAD PBV assistance. The provisions of the tenant-based voucher regulations that do not apply to the PBV program are listed at 24 CFR 983.2. HACCC Policy Except as otherwise noted in this chapter, or unless specifically prohibited by PBV program regulations, the HACCC policies for the tenant-based voucher program contained in this administrative plan also apply to the RAD PBV program and its participants. This chapter is intended to address requirements specific to the RAD PBV program only. 18-I.D. RELOCATION REQUIREMENTS [NOTICE PIH 2016-17] For projects that apply for conversion of assistance under the First Component of RAD and will convert November 10, 2016 or later, the following applies [Notice PIH 2016-17]: x In some developments, in-place residents may need to be relocated as a result of properties undergoing repairs, being demolished and rebuilt, or when assistance is transferred from one site to another. RAD program rules prohibit the permanent, involuntary relocation of residents as a result of conversion. Residents that are temporarily relocated retain the right to return to the project once it has been completed. Any non-RAD PBV units located in the same project are also subject to the right to return. x Relocation assistance provided to residents will vary depending on the length of time relocation is required. Residents must be properly notified in advance of relocation requirements in accordance with RAD program rules and Uniform Relocation Act (URA) requirements, and other requirements which may be applicable such as Section 104(d) of the Housing and Community Development Act of 1974, as amended. Sample informing notices are provided in Appendices 2–5 of Notice PIH 2014-17. A written relocation plan is required if the RAD conversion involves permanent relocation (including a move in connection with a transfer of assistance) or temporary relocation anticipated to last longer than a year. While the PHA is not required to have a written relocation plan for temporary relocation lasting one year or less, HUD strongly encourages PHAs to prepare one. Appendix II of Notice PIH 2016-17 contains recommended contents for a relocation plan. 687 18-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 x In addition, PHAs must undertake a planning process that complies with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA), although not all relocations under RAD will trigger requirements under URA. URA statute and implementing regulations may be found at 49 CFR Part 24. The obligation due to relocating residents under RAD are broader than URA relocation assistance and payments. x Any residents that may need to be temporarily relocated to facilitate rehabilitation or construction will have a right to return to either: a) a unit at the development once rehabilitation or construction is completed, provided the resident’s household is not under-housed; or b) a unit in the development which provides the same major features as the resident’s unit in the development prior to the implementation of the RAD conversion. x Where the transfer of assistance to a new site is warranted and approved, residents of the converting development will have the right to reside in an assisted unit at the new site once rehabilitation or construction is complete. x If the PHA’s proposed plans for conversion would preclude a resident from returning to the development, the resident must be given an opportunity to comment and/or object to such plans. PHAs must alter the project plans to accommodate the resident’s right to return to the development if the resident would be precluded from returning to the development. x Examples of project plans that may preclude a resident from returning to the development include, but are not limited to: - Changes in the development’s bedroom distribution that decrease the size of the units, resulting in the resident being under-housed; - The resident cannot be accommodated in the remaining assisted units due to a reduction in the number of assisted units at the development; - Income limit eligibility requirements associated with the LIHTC program or another program; and - Failure to provide a reasonable accommodation, in violation of applicable law, where reasonable accommodation may include installation of accessibility features that are needed by the resident. x Residents of a development undergoing conversion that would be precluded from returning to the development may voluntarily accept a PHA or owner’s offer to permanently relocate to alternative housing, and thereby waive their right to return to the development after rehabilitation or construction is completed. In this event, the PHA must secure the resident’s written consent to a voluntary permanent relocation in lieu of returning to the development. PHAs are prohibited from employing any tactics to pressure residents into relinquishing their right to return or accepting other housing options. Additionally, a PHA may not terminate a resident’s lease if the PHA fails to obtain the resident’s consent and the resident seeks to exercise the right to return. 688 18-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 x In the case of multi-phase RAD transactions, the resident has a right to return to the development or to other converted phases of the development that are available for occupancy at the time the resident is eligible to exercise their right of return. Generally, the resident’s right to return must be accommodated within the development associated with the resident’s original unit, however, the PHA may treat multiple converted developments on the same site as one for purposes of right to return. Should the PHA seek to have the resident exercise the right to return at a future phase, the PHA must secure the resident’s consent in writing. x Alternative housing options may involve a variety of housing options, including but not limited to: - Transfers to public housing - Admission to other affordable housing properties subject to the applicable program rules - Housing choice voucher (HCV) assistance - Homeownership programs subject to the applicable program rules - Other options identified by the PHA However, for projects that applied for conversion prior to November 10, 2016, the following applies [Notice PIH 2014-17]: • In some developments, in-place residents may need to be relocated as a result of properties undergoing repairs, being demolished and rebuilt, or when assistance is transferred from one site to another. RAD program rules prohibit the permanent, involuntary relocation of residents as a result of conversion. Residents that are temporarily relocated retain the right to return to the project once it has been completed. • Relocation assistance provided to residents will vary depending on the length of time relocation is required. Residents must be properly notified in advance of relocation requirements in accordance with RAD program rules and Uniform Relocation Act (URA) requirements. Sample informing notices are provided in Appendices 2–5 of Notice PIH 2014-17. While the PHA is not required to have a written relocation plan, HUD strongly encourages PHAs to prepare one. Appendix I of Notice PIH 2014-17 contains recommended contents for a relocation plan. • In addition, PHAs must undertake a planning process that complies with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA), although not all relocations under RAD will trigger requirements under URA. URA statute and implementing regulations may be found at 49 CFR Part 24. • Any residents that may need to be temporarily relocated to facilitate rehabilitation or construction will have a right to return to an assisted unit at the development once rehabilitation or construction is completed. Where the transfer of assistance to a new site is warranted and approved, residents of the converting development will have the right to reside in an assisted unit at the new site once rehabilitation or construction is complete. Residents of a development undergoing conversion of assistance may voluntarily accept a PHA or owner’s offer to 689 18-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 permanently relocate to another assisted unit, and thereby waive their right to return to the development after rehabilitation or construction is completed. 18-I.E. EQUAL OPPORTUNITY REQUIREMENTS [24 CFR 983.8; 24 CFR 5.105; NOTICE PIH 2016-17] RAD conversions are governed by the same civil rights authorities that govern HUD-assisted activities in general. These authorities prohibit discrimination and impose affirmative obligations on HUD program participants. PHAs must comply with all applicable fair housing and civil rights laws, including but not limited to the Fair Housing Act, Title VI of the Civil Rights Act of 1964, and Section 504 of the Rehabilitation Act of 1973, when conducting relocation planning and providing relocation assistance. For example, persons with disabilities returning to the RAD project may not be turned away or placed on a waiting list due to a lack of accessible units. Their need for an accessible unit must be accommodated. See the RAD Fair Housing, Civil Rights, and Relocation Notice [Notice PIH 2016-17] for more information. 690 18-9 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART II: PBV PROJECT SELECTION 18-II.A. OVERVIEW Unlike in the standard PBV program where the PHA typically selects the property through an owner proposal selection process, projects selected for assistance under RAD PBV are selected in accordance with the provisions in Notice PIH 2019-23. Therefore, 24 CFR 983.51 does not apply since HUD selects RAD properties through a competitive selection process. 18-II.B. OWNERSHIP AND CONTROL [NOTICE PIH 2019-23] For projects governed by Notice PIH 2019-23, the following language applies: • Under the PBV program, the contract administrator and the owner listed on the contract cannot be the same legal entity (i.e., the PHA cannot execute a contract with itself). To avoid this situation, the PHA may either: 1) Transfer the ownership of the project to a nonprofit affiliate or instrumentality of the PHA (including to a “single-purpose entity” that owns nothing other than the property, which will typically be a requirement of a lender or investor), or 2) The PHA can form a related entity that is responsible for management and leasing and can serve as the owner for purposes of the Section 8 HAP contract; in this scenario, the HAP is then executed between the PHA (as the contract administrator) and the PHA’s related entity (as the owner for HAP contract purposes). Note that in the second scenario, both the PHA and the entity serving as the owner for HAP contract purposes will be required to sign the RAD Use Agreement [RAD Resource Desk FAQ 01/24/19]. • Except where permitted to facilitate the use of low-income housing tax credits, during both the initial term and renewal terms of the HAP contract, ownership must be by a public or non-profit entity. HUD may also allow ownership of the project to be transferred to a tax credit entity controlled by a for-profit entity to facilitate the use of tax credits for the project, but only if HUD determines that the PHA or a nonprofit entity preserves an interest in the profit. The requirement for a public or non-profit entity, or preservation of an interest by a PHA or nonprofit in a property owned by a tax credit entity controlled by a for-profit entity, is satisfied if a public or non-profit entity (or entities), directly or through a wholly-owned affiliate (1) holds a fee simple interest in the property; (2) is the lessor under a ground lease with the property owner; (3) has the direct or indirect legal authority to direct the financial and legal interest of the property owner with respect to the RAD units, (4) owns 51 percent or more of the general partner interests in a limited partnership or 51 percent or more of the managing member interests in a limited liability company with all powers of a general partner or managing member, as applicable; (5) owns a lesser percentage of the general partner or managing member interests and holds certain control rights as approved by HUD; (6) owns 51 percent or more of all ownership interests in a limited partnership or limited liability company and holds certain control rights as approved by HUD; or (7) demonstrates other ownership and control arrangements approved by HUD. • Control may be established through the terms of the project owner’s governing documents or through a Control Agreement, provided that in either case amendment of the terms of control requires consent from HUD. 691 18-10 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 For projects subject to the requirements of Notice PIH 2012-32, REV-3, the following language applies: • Except where permitted to facilitate the use of low-income housing tax credits, during both the initial term and renewal terms of the HAP contract, ownership must be by a public or nonprofit entity. The requirement for a public or nonprofit entity is satisfied if a public or nonprofit entity (or entities), directly or through a wholly owned affiliate (1) holds a fee simple interest in the property; (2) is the lessor under a ground lease with the property owner; (3) has the direct or indirect legal authority to direct the financial and legal interest of the property owner with respect to the RAD units, (4) owns 51 percent or more of the general partner interests in a limited partnership or 51 percent or more of the managing member interests in a limited liability company with all powers of a general partner or managing member, as applicable; (5) owns a lesser percentage of the general partner or managing member interests and holds certain control rights as approved by HUD; (6) owns 51 percent or more of all ownership interests in a limited partnership or limited liability company and holds certain control rights as approved by HUD; or (7) other ownership and control arrangements approved by HUD. • If low-income housing tax credits will be used, HUD may allow ownership of the property to be transferred to a tax credit entity controlled by a for-profit entity if HUD determines that the PHA preserves its interest in the property. Preservation of PHA interest in the property includes but is not limited to the following: - The PHA, or an affiliate under its sole control, is the general partner or managing member; - The PHA retains fee ownership and leases the real estate to the tax credit entity pursuant to a long-term ground lease; - The PHA retains control over leasing the property and determining program eligibility; - The PHA enters into a control agreement by which the PHA retains consent rights over certain acts of the project owner and retains certain rights over the project; - Other means that HUD finds acceptable For projects that converted assistance prior to the implementation of Notice PIH 2012-32, REV-3, the following language applies: • During both the initial term and renewal terms of the HAP contract, ownership must be either of the following: - A public or nonprofit entity that has legal title to the property. The entity must have the legal authority to direct the financial, legal, beneficial, and other interests of the property; or - A private entity, if the property has low-income tax credits. The PHA must maintain control via a ground lease. 18-II.C. PHA-OWNED UNITS [24 CFR 983.59, FR NOTICE 1/18/17, AND NOTICE PIH 2017-21] 692 18-11 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If the project is PHA-owned, rent-setting and inspection functions set out in 24 CFR 983.59 must be conducted by an independent entity approved by HUD. The definition of ownership or control provided under Notice PIH 2019-23 (listed above) is used specifically to determine whether a PHA retains control over a project for purposes of HUD’s requirement for ownership or control of the covered project under RAD. For purposes of determining whether an independent entity will perform certain functions for the project, the definition of PHA-owned under Notice PIH 2017-21 is used. This is the same definition used for standard PBV units. In some cases, a project may meet the RAD definition of ownership or control but may not be considered PHA-owned for purposes of requiring an independent entity. The independent entity that performs the program services may be the unit of general local government for the PHA jurisdiction (unless the PHA is itself the unit of general local government or an agency of such government), or another HUD-approved public or private independent entity. The PHA may compensate the independent entity from PHA ongoing administrative fee income (including amounts credited to the administrative fee reserve). The PHA may not use other program receipts to compensate the independent entity for its services. The PHA, and the independent entity, may not charge the family any fee for the services provided by the independent entity. HACCC Policy If units converted to PBV under RAD are PHA-owned housing, HACCC will use a standard or high performer housing authority in or adjacent to Contra Costa County as the HUD- approved independent entity. 18-II.D. SUBSIDY LAYERING REQUIREMENTS [NOTICE PIH 2019-23; NOTICE PIH 2012-32, REV-3; NOTICE PIH 2012-32, REV-2] For projects governed by Notice PIH 2019-23, the following language applies: x In the case of a PHA that will no longer have ACC units as a result of the pending or simultaneous closing or have less than 50 units remaining and have initiated procedures to dispose of their final ACC units, there is no restriction on the amount of public housing funds that may be contributed to the covered project or projects though the conversion. However, the PHA must estimate and plan for outstanding liabilities and costs and must follow Notice PIH 2016-23 or successor notice regarding administrative activities required to terminate the ACC if it has no plans to develop additional public housing. x In the case where the PHA will continue to maintain other units in its inventory under a public housing ACC, a contribution of operating funds to the covered project that exceeds the average amount the project has held in operating reserves over the past three years will trigger a subsidy layering review under 24 CFR 4.13. Similarly, any contribution of capital funds, including Replacement Housing Factor (RHF) or Demolition Disposition Transitional Funding (DDTF), will trigger a subsidy layering review. Notwithstanding the subsidy layering review, PHAs should be mindful of how the capital funds or operating reserves used in the financing of its 693 18-12 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 RAD properties may impact the physical and financial health of properties that will remain in its public housing inventory. • Following execution of the HAP contract, PHAs are authorized to use operating and capital funds to make HAP payments for the remainder of the first calendar year in which the HAP contract is effective. Otherwise, a PHA may not contribute public housing program funds to the covered project unless those funds have been identified in the RCC and converted at closing for Section 8 RAD purposes. For projects governed by Notice PIH 2012-32, REV-3, the following language applies: • In the case of a PHA that is converting all of its ACC units, there is no restriction on the amount of public housing funds that may be contributed to the covered project at closing; the PHA may convey all program funds to the covered projects. In order to cover the cost of administrative activities required to terminate the ACC, once it no longer has units under the ACC and has no plans to develop additional public housing, the PHA may: - Designate that a reserve associated with the project be available to fund any public housing closeout costs (such as an operating deficit reserve or a specific PHA closeout reserve). Any funds not needed for public housing closeout costs would remain in such reserve or may be transferred to another reserve associated with the project (such as the replacement reserve). Thereafter, these funds may be used at the project pursuant to the authorized use of the applicable reserve; or - Retain funds under the public housing program for this purpose. However, HUD will recapture any public housing funds that a PHA does not expend for closeout costs. • In the case where the PHA will continue to maintain other units in its inventory under a public housing ACC, a contribution of operating funds to the covered project that exceeds the average amount the project has held in operating reserves over the past three years will trigger a subsidy layering review under 24 CFR 4.13. Similarly, any contribution of capital funds, including Replacement Housing Factor (RHF) or Demolition Disposition Transitional Funding (DDTF), will trigger a subsidy layering review. Notwithstanding the subsidy layering review, PHAs should be mindful of how the capital funds or operating reserves used in the financing of its RAD properties may impact the physical and financial health of properties that will remain in its public housing inventory. • In addition, following execution of the HAP contract, PHAs are authorized to use operating and capital funds to make HAP payments for the remainder of the first calendar year in which the HAP contract is effective. Otherwise, a PHA may not contribute public housing program funds to the covered project unless such funding has been identified in the approved financing plan and included in the approved “sources and uses” attached to the RCC. For projects governed by the requirements of Notice PIH 2012-32, REV-2, the following language applies: • In the case of a PHA that is converting all of its ACC units, there is no restriction on the amount of public housing funds that may be contributed to the covered project at closing; the PHA may 694 18-13 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 convey all program funds to the covered project. HUD will recapture any public housing funds that a PHA has not expended once it no longer has units under ACC. In the case where the PHA will continue to maintain other units in its inventory under a public housing ACC, a contribution of operating funds to the covered project that exceeds the average amount the project has held in operating reserves over the past three years will trigger a subsidy layering review under 24 CFR 4.13. Similarly, any contribution of capital funds, including Replacement Housing Factor (RHF) or Demolition Disposition Transitional Funding (DDTF), will trigger a subsidy layering review. Notwithstanding the subsidy layering review, PHAs should be mindful of how the capital funds or operating reserves used in the financing of its RAD properties may impact the physical and financial health of properties that will remain in its public housing inventory. 18-II.E. PBV PERCENTAGE LIMITATION AND UNIT CAP [NOTICE PIH 2019-23 and Notice PIH 2023-19]] PBV Percentage Limitation Covered projects do not count against the maximum amount of assistance a PHA may utilize for the PBV program, which under the standard PBV program is set at 20 percent of the authorized units allocated to a PHA under the HCV program. The number of PBV units excluded from the PHA’s PBV program cap cannot exceed the number of former public housing units that those PBV units are replacing through the course of the RAD conversion. All PBV units in a covered project that replace former public housing units at the time of conversion are excluded from both the numerator and the denominator when calculating the percent of vouchers that may be project-based by a PHA. To implement this provision, HUD is waiving section 8(o)(13)(B) of the 1937 Act as well as 24 CFR 983.6. Unit Cap Limitation When HUD published REV-3 of Notice PIH 2012-32, the cap on the number of assisted units in each project was eliminated. Under the standard PBV program the cap is set at the greater of 25 units or 25 percent of the units in the project. HUD is waiving this requirement, and projects governed by Notice PIH 2019-23 and Notice PIH 2012-32, REV-3 have no cap on the number of units that may receive PBV assistance in a project. However, for projects that are governed by REV-2 of Notice PIH 2012-32, the cap on the number of PBV units in the project is increased to 50 percent. In these projects, however, provided units met certain exception criteria, the PHA may have converted a larger number of units to RAD PBV. For projects governed by the requirements of Notice PIH 2012-32, REV-2 only, the following language applies: • In general, the PHA may not provide PBV assistance for units in a project if the total number of dwelling units in the project that will receive PBV assistance during the term of the PBV HAP contract is more than 50 percent of the number of dwelling units (assisted or unassisted) in the project. However, PHAs may exceed the 50 percent limitation when units in the project are occupied by elderly and/or disabled families or families that will receive supportive services. These units are known as “excepted units” and do not count toward the project cap. 695 18-14 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • For projects governed by the requirements of Notice PIH 2012-32, REV-2 choosing to include excepted units, additional policy decisions may be required. HACCC Policy For projects governed by Notice PIH 2012-32, REV-2, the PHA will not provide RAD PBV assistance for any excepted units. 18-II.F. SITE SELECTION STANDARDS [NOTICE PIH 2019-23; NOTICE PIH 2016-17] Site selection requirements set forth in 24 CFR 983.57 apply to RAD PBV, with the exception of 983.57(b)(1) and (c)(2). HUD waives the provisions regarding deconcentration of poverty and expanding housing and economic opportunity for existing housing sites. To facilitate the uniform treatment of residents and units, any non-RAD PBV units located in the same project are subject to the terms of this provision. HUD will conduct a front-end civil rights review of the PHA’s proposed site in certain circumstances. For RAD PBV conversions that involve new construction located in an area of minority concentration (whether on the existing public housing site or on a new site) HUD will determine whether it meets one of the exceptions that would allow for new construction in an area of minority concentration. The PHA must ensure that its RAD PBV conversion, including any associated new construction, is consistent with its certification to affirmatively further fair housing and complies with civil rights laws. 18-II.G. ENVIRONMENTAL REVIEW [NOTICE PIH 2019-23; ENVIRONMENTAL REVIEW REQUIREMENTS FOR RAD CONVERSIONS, MARCH 2019] HUD cannot approve an applicant’s financing plan submission unless and until the required environmental review has been completed for the applicant’s proposed conversion project and found to meet environmental review requirements. Environmental documents must be submitted no later than the applicant’s financing plan. HUD will not issue a RAD Conversion Commitment (RCC) if the project plan does not meet the environmental review requirements described in Attachment 1A of Notice PIH 2019-23. Once an awardee has submitted an application for a specific project, they may not make any choice limiting actions before the completion of the environmental review. 696 18-15 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART III: DWELLING UNITS 18-III.A. OVERVIEW This part identifies the special housing quality standards that apply to the RAD PBV program, housing accessibility for persons with disabilities, and special procedures for conducting housing quality standardsNSPIRE inspections. 18-III.B. NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE (NSPIRE) HOUSING QUALITY STANDARDS [24 CFR 983.101 and 24 CFR 5.703] NSPIRE standards The housing quality standards (HQS) for the tenant-based program generally apply to the PBV program. HQS NSPIRE requirements for shared housing, manufactured home space rental, and the homeownership option do not apply because these housing types are not assisted under the PBV program. The physical condition standards at 24 CFR 5.703 do not apply to the PBV program. Lead-based Paint [24 CFR 983.101(c); Notice PIH 2019-23] The lead-based paint requirements for the tenant-based voucher program do not apply to the PBV program. Instead, The Lead-based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846), the Residential Lead-based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and implementing regulations at 24 CFR part 35, subparts A, B, H, and R, apply to the PBV program. 18-III.C. HOUSING ACCESSIBILITY FOR PERSONS WITH DISABILITIES [NOTICE PIH 2016-17] Federal accessibility requirements apply to all conversions, whether they entail new construction, alternations, or existing facilities. The housing must comply with program accessibility requirements of section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR part 8. The PHA must ensure that the percentage of accessible dwelling units complies with the requirements of section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), as implemented by HUD's regulations at 24 CFR 8, subpart C. Housing first occupied after March 13, 1991, must comply with design and construction requirements of the Fair Housing Amendments Act of 1988 and implementing regulations at 24 CFR 100.205, as applicable. (24 CFR 983.102) 18-III.D. INSPECTING UNITS Initial Inspection [RAD Quick Reference Guide; Notice PIH 2019-23, and Notice PIH 2023-19] Under standard PBV regulations at 24 CFR 983.103(b), a PHA may not enter into a HAP contract until the PHA has determined all units comply with HQSNSPIRE standards. It is the responsibility 697 18-16 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 of the contract administrator to perform this initial inspection (unless units are PHA-owned). In order to accommodate projects in which repairs are conducted, however, HUD has waived this requirement when units are undergoing rehabilitation. In this case, units must meet NSPIRE standardsHQS by the date indicated in the RAD Conversion Commitment (RCC). To place the unit under HAP contract and commence making payments, the PHA may rely on the owner’s certification that the owner has no reasonable basis to have knowledge that life-threatening conditions exist in the unit or units to be added to the HAP contract instead of conducting an initial inspection. During the period of the work, NSPIRE requirements apply. The PHA must enforce the project owner’s obligations and conduct inspections when needed, (for example in response to tenant complaints or other information coming to its attention), and the owner must correct any deficiencies in accordance with NSPIRE requirements (i.e., no more than 24 hours for a life-threatening deficiency, and within no more than 30 calendar days or any PHA-approved extension for other defects, but no later than the date of the completion of the work as indicated in the RCC). Turnover Inspections [24 CFR 983.103(c), FR Notice 1/18/17, and Notice PIH 2017-20] Before providing assistance to a new family in a contract unit, the PHA must inspect the unit. The PHA may not provide assistance on behalf of the family until the unit fully complies with NSPIREHQS. Annual/Biennial Inspections [24 CFR 983.103(d); FR Notice 6/25/14] At least once every 24 months (or once every 36 months for small rural PHAs) during the term of the HAP contract, the PHA must inspect a random sample consisting of at least 20 percent of the contract units in each building, to determine if the contract units and the premises are maintained in accordance with NSPIREHQS. Turnover inspections are not counted toward meeting this inspection requirement. HACCC Policy HACCC will inspect, on a biennial basis, all RAD PBV-assisted units to determine if the contract units and the premises are maintained in accordance with HQSNSPIRE. If more than 20 percent of the sample of inspected contract units in a building fail the initial inspection, the PHA must reinspect 100 percent of the contract units in the building. Alternative Inspections [24 CFR 983.103(g); Notice PIH 2016-05] In the case of mixed-finance properties that are subject to alternative inspections, the PHA may rely upon an alternative inspection conducted at least triennially to demonstrate compliance with inspection requirements. HACCC Policy HACCC will not rely on alternative inspection standards. Other Inspections [24 CFR 983.103(e)] 698 18-17 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The PHA must inspect contract units whenever needed to determine that the contract units comply with NSPIREHQS and that the owner is providing maintenance, utilities, and other services in accordance with the HAP contract. The PHA must take into account complaints and any other information coming to its attention in scheduling inspections. The PHA must conduct follow-up inspections needed to determine if the owner (or, if applicable, the family) has corrected an HQS violationNSPIRE deficiencies, and must conduct inspections to determine the basis for exercise of contractual and other remedies for owner or family violation of HQSNSPIRE standards. In conducting PHA supervisory quality control NSPIREHQS inspections, the PHA should include a representative sample of both tenant-based and project-based units. Inspecting PHA-Owned Units [24 CFR 983.103(f); Notice PIH 2017-21] In the case of PHA-owned units, all required inspections must be performed by an independent entity designated by the PHA and approved by HUD. The independent entity must furnish a copy of each inspection report to the PHA and to the HUD field office where the project is located. The PHA must take all necessary actions in response to inspection reports from the independent agency, including exercise of contractual remedies for violation of the HAP contract by the PHA-owner. 699 18-18 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART IV: HOUSING ASSISTANCE PAYMENTS (HAP) CONTRACT 18-IV.A. OVERVIEW [RAD PBV QUICK REFERENCE GUIDE 06/20] Public housing projects converting under RAD do not employ the PBV Agreement to Enter into a Housing Assistance Payments (AHAP) contract. Instead, following the execution of all requirements contained in the Commitment to Enter into a HAP (CHAP) contract and the RAD Conversion Commitment (RCC), a project is converted immediately to the RAD PBV HAP contract following the closing of any construction financing. Owners of public housing projects converted to PBV assistance via RAD enter into a HAP contract with the PHA that will administer the PBV assistance. Units assisted under a RAD PBV HAP contract must be subject to long-term, renewable use and affordability restrictions. 18-IV.B. HAP CONTRACT REQUIREMENTS Contract Information [RAD PBV Quick Reference Guide (06/20); Notice PIH 2019-23] The RAD PBV program uses the PBV HAP contract for new construction or rehabilitated housing (Form HUD-52530A), as modified by the RAD rider (Form HUD-52621). For closings on or after January 1, 2018, HUD incorporated the RAD rider directly into the standard PBV HAP contract. For closing that occurred prior to January 1, 2018, the RAD rider must be attached to the PBV HAP contract. The distinction between “existing housing” and “rehabilitated and newly constructed housing” is overridden by RAD requirements. The project must also have an initial RAD use agreement. All public housing RAD conversion properties financed with LIHTC are also required to include an LIHTC rider. Execution and Effective date of the HAP Contract [RADBlast! 7/11/16] RAD PBV projects do not employ an Agreement to Enter into a Housing Assistance Payments (AHAP) contract like in the standard PBV program. Rather, when the conditions of the CHAP and the RCC are met and the conversion has closed, the PHA executes the HAP contract. Project owners may select the effective date of the HAP contract as the first day of either of the two months following the completed closing. Term of HAP Contract [Notice PIH 2019-23] The initial term of the HAP contract may not be for less than 15 years and may be for a term of up to 20 years upon request of the owner and with approval of the administering voucher agency. Upon expiration of the initial term of the contract, and upon each renewal term of the contract, the owner must accept each offer to renew the contract, for the prescribed number and mix of units, either on the site of the project subject to the expiring contract or, upon request of the project owner and subject to PHA and HUD approval, at another site through a future transfer of assistance. Contracts are subject to the terms and conditions applicable at the time of each offer, and further subject to the availability of appropriations for each year of each such renewal. To implement this provision, HUD 700 18-19 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 is waiving section 8(o)(13)(F) of The United States Housing Act of 1937, which permits a minimum term of one year, as well as 24 CFR 983.205(a), which governs the contract term. Agreement to Enter into a HAP (AHAP) Contract [Notice PIH 2019-23] For public housing conversions to PBV, there will be no agreement to enter into a Housing Assistance Payments (AHAP) contract. Therefore, all regulatory references to the Agreement (AHAP), including regulations under 24 CFR Part 983 Subpart D, are waived. The definitions for proposal selection date, new construction, rehabilitation, and existing housing are not applicable. Mandatory Contract Renewal [Notice PIH 2019-23] By statue, upon contact expiration, the agency administering the vouchers will offer, and the PHA will accept, renewal of the contract for the prescribed number and mix of units, either on the site of the project subject to the expiring contract or, upon request of the project owner and subject to PHA and HUD approval, at another site through a future transfer of assistance. The contract is subject to the terms and conditions applicable at the time of renewal and the availability of appropriations each year for such renewal. Consequently 24 CFR 983.205(b), governing the PHA discretion to renew the contract, will not apply. In the event that the HAP contract is removed due to breach, non-compliance or insufficiency of appropriations, for all units previously covered under the HAP contract, new tenants must have incomes at or below 80 percent of the area median income at the time of admission and rents may not exceed 30 percent of 80 percent of median income for an appropriate size unit for the remainder of the term of the RAD use agreement. Remedies for HQS ViolationsNSPIRE Deficiencies [24 CFR 983.208(b)] The PHA may not make any HAP payment to the owner for a contract unit during any period in which the unit does not comply with NSPIREHQS. If the PHA determines that a contract unit does not comply with NSPIRE standardsHQS, the PHA may exercise any of its remedies under the HAP contract, for any or all of the contract units. Available remedies include termination of housing assistance payments, abatement or reduction of housing assistance payments, reduction of contract units, and termination of the HAP contract. HACCC Policy HACCC will abate and terminate PBV HAP contracts for noncompliance with NSPIREHQS in accordance with the policies used in the tenant-based voucher program. These policies are contained in Section 8-II.G., Enforcing Owner Compliance. 18-IV.C. AMENDMENTS TO THE HAP CONTRACT Floating Units [Notice PIH 2019-23] 701 18-20 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Upon request of the owner to the voucher agency that will administer the project, HUD will permit assistance to float among units within the project that are the same bedroom size. The unit to which assistance is floated must be comparable to the unit being replaced in quality and amenities. If the PHA chooses to float units, units are not specifically identified on the HAP contract, rather the HAP contract must specify the number and type of units in the property that are RAD PBV units. The property must maintain the same number and type of RAD units from the time of the initial HAP contract execution forward. HACCC Policy HACCC will not float assistance among unoccupied units within the project. Reduction in HAP Contract Units [Notice PIH 2019-23] Project owners are required to make available for occupancy by eligible tenants the number of assisted units under the terms of the HAP contract. The PHA may not reduce the number of assisted units without written HUD approval. Any HUD approval of a PHA’s request to reduce the number of assisted units under contract is subject to conditions that HUD may impose. MTW agencies may not alter this requirement. If units are removed from the HAP contract because a new admission’s TTP comes to equal or exceed the gross rent for the unit and if the project is fully assisted, the PHA must reinstate the unit after the family has vacated the property. If the project is partially assisted, the PHA may substitute a different unit for the unit on the HAP contract in accordance with 24 CFR 983.207, or where the development has “floating”. 18-IV.D. HAP CONTRACT YEAR AND ANNIVERSARY DATES [24 CFR 983.302(E)] The HAP contract year is the period of 12 calendar months preceding each annual anniversary of the HAP contract during the HAP contract term. The initial contract year is calculated from the first day of the first calendar month of the HAP contract term. The annual anniversary of the HAP contract is the first day of the first calendar month after the end of the preceding contract year. There is a single annual anniversary date for all units under a particular HAP contract. 18-IV.E. OWNER RESPONSIBILITIES UNDER THE HAP CONTRACT [24 CFR 983.210] When the owner executes the HAP contract, they certifies that at such execution and at all times during the term of the HAP contract: 702 18-21 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • All contract units are in good condition and the owner is maintaining the premises and contract units in accordance with HQSNSPIRE standards; • The owner is providing all services, maintenance, equipment, and utilities as agreed to under the HAP contract and the leases; • Each contract unit for which the owner is receiving HAP is leased to an eligible family referred by the PHA, and the lease is in accordance with the HAP contract and HUD requirements; • To the best of the owner’s knowledge, the family resides in the contract unit for which the owner is receiving HAP, and the unit is the family’s only residence; • The owner (including a principal or other interested party) is not the spouse, parent, child, grandparent, grandchild, sister, or brother of any member of a family residing in a contract unit; • The amount of the HAP the owner is receiving is correct under the HAP contract; • The rent for contract units does not exceed rents charged by the owner for comparable unassisted units; • Except for HAP and tenant rent, the owner has not received and will not receive any other payment or consideration for rental of the contract unit; • The family does not own or have any interest in the contract unit (this does not apply to the family’s membership in a cooperative); and • Repair work on the project selected as an existing project that is performed after HAP contract execution within such post-execution period as specified by HUD may constitute development activity, and if determined to be development activity, the repair work undertaken shall be in compliance with Davis-Bacon wage requirements. 18-IV.F. VACANCY PAYMENTS [24 CFR 983.352(B)] At the discretion of the PHA, the HAP contract may provide for vacancy payments to the owner for a PHA-determined period of vacancy extending from the beginning of the first calendar month after the move-out month for a period not exceeding two full months following the move- out month. The amount of the vacancy payment will be determined by the PHA and cannot exceed the monthly rent to owner under the assisted lease, minus any portion of the rental payment received by the owner, including amounts available from the tenant’s security deposit. HACCC Policy HACCC will provide vacancy payments to the owner. The HAP contract with the owner will contain the amount of the vacancy payment and the period for which the owner will qualify for these payments. 703 18-22 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART V: SELECTION OF PBV PROGRAM PARTICIPANTS 18-V.A. OVERVIEW Many of the provisions of the tenant-based voucher regulations [24 CFR 982] also apply to the PBV program. This includes requirements related to determining eligibility and selecting applicants from the waiting list. Even with these similarities, there are requirements that are unique to the PBV program. This part describes the requirements and policies related to eligibility and admission to the PBV program. 18-V.B. PROHIBITED RESCREENING OF EXISTING TENANTS UPON CONVERSION [NOTICE PIH 2019-23] Current households cannot be excluded from occupancy at the covered project based on any rescreening, income eligibility, or income targeting provisions. Consequently, current households will be grandfathered for application of any eligibility criteria to conditions that occurred prior to conversion but will be subject to any ongoing eligibility requirements for actions that occur after conversion. Post-conversion, the tenure of all residents of the covered project is protected pursuant to PBV requirements regarding continued occupancy unless explicitly modified by Notice PIH 2019-23 (e.g., rent phase-in provisions). For example, a unit with a household that was over-income at time of conversion would continue to be treated as an assisted unit. Thus, 24 CFR 982.201, concerning eligibility and targeting, will not apply for current households. Once that remaining household moves out, the unit must be leased to an eligible family. Existing residents at the time of conversion may not be rescreened for citizenship status or have their social security numbers re- verified. Further, so as to facilitate the right to return to the assisted property, this provision must apply to current public housing residents of the converting project that will reside in non-RAD PBV units placed in a project that contain RAD PBV units. Such families and such contract units will otherwise be subject to all requirements of the applicable program, specifically 24 CFR 983 for non-RAD PBV. Any non-RAD PBV units located in the same project are also subject to the right to return. For the RAD PBV program, in-place family means a family who lived in a pre-conversion property at the time assistance was converted from public housing to PBV under RAD. 18-V.C. ELIGIBILITY FOR PBV ASSISTANCE [24 CFR 983.251(A) AND (B)] Applicants for PBV assistance must meet the same eligibility requirements as applicants for the tenant-based voucher program. Applicants must qualify as a family as defined by HUD and the PHA, have income at or below HUD-specified income limits, and qualify on the basis of citizenship or the eligible immigration status of family members [24 CFR 982.201(a) and 24 CFR 983.2(a)], and meet asset limitation requirements. In addition, an applicant family must provide social security information for family members [24 CFR 5.216 and 5.218] and consent to the PHA’s collection and use of 704 18-23 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 family information regarding income, expenses, and family composition [24 CFR 5.230]. The PHA may also not approve a tenancy if the owner (including a principal or other interested party) of the unit is the parent, child, grandparent, grandchild, sister, or brother of any member of the family, unless needed as a reasonable accommodation. An applicant family must also meet HUD requirements related to current or past criminal activity. HACCC Policy HACCC will determine an applicant family’s eligibility for the RAD PBV program in accordance with the policies in Chapter 3. 18-V.D. ORGANIZATION OF THE WAITING LIST [24 CFR 983.251(C); NOTICE PIH 2019-23] The standard PBV regulations at 24 CFR 983.251 set out program requirements related to establishing and maintaining a voucher-wide, PBV program-wide, or site-based waiting list from which residents will be admitted. These provisions will apply unless the project is covered by a remedial order or agreement that specifies the type of waiting list and other waiting list policies. Any non-RAD PBV units located in the same project are also subject to these requirements. HACCC Policy. HACCC will establish and manage separate waiting lists for individual projects or buildings that are receiving RAD PBV assistance. The PHA currently has waiting lists for the following RAD PBV projects: Tabora Gardens 3701 Tabora Dr., Antioch, CA 94509 Veterans, Family, Disabled Garden Park 2387 Lisa Lane Pleasant Hill, CA 94523 Disabled, Family Housing Robin Lane 1149 Meadow Lane Concord, CA 94520 Family Housing Elaine Null 112 Alves Lane/300 Waters Street Pittsburg, CA 94565 Family Housing Church Lane 2555 Church Lane, San Pablo, CA 94806 Family Housing Hana Gardens Senior Apartments 10860 San Pablo Ave., El Cerrito, CA 94530 62 Yrs or older Hookston Senior 80 W. Hookston Street, Pleasant Hill, CA 62 Yrs or older Heritage Point Apartments 1540 Fred Jackson Way, Richmond, CA Family Housing Antioch Scattered Site Renovations 1945 Cavallo Rd., Antioch, CA 94509 107 W. 20th Street, Antioch, CA 94509 Family Housing St. Paul's Commons 1860 Trinity Ave, Walnut Creek, CA 94596 Family Housing Idaho Apartments 10203 San Pablo Avenue, El Cerrito. CA Homeless Housing Friendship Manor 564 Stege Ave., Richmond, CA 94804 62 Yrs or older 705 18-24 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Triangle Court 980 Triangle Court, Richmond, CA 94804 Family Housing For any applicants on the public housing waiting list that are likely to be ineligible for admission to a covered project converting to PBV because the household’s TTP is likely to exceed the RAD gross rent, HACCC will consider transferring such household, consistent with program requirements for administration of waiting lists, to HACCC’s remaining public housing waiting lists or to another voucher waiting list, in addition to transferring such household to the waiting list for the covered project. To the extent any wait list relies on the date and time of application, the applicants shall have priority on the wait lists to which their application was transferred in accordance with the date and time of their application to the original waiting list. HACCC will maintain the project-specific waiting list in accordance with all applicable civil rights and fair housing regulations found at 24 CFR 903.7(b)(2)(ii)-(iv). HACCC will provide applicants full information about each development, including an estimate of the wait time, location, occupancy, number and size of accessible units, and amenities like day care, security, transportation, and training programs at each development with a site-based waiting list. The system for selection will be consistent with all applicable civil rights and fair housing laws and regulations and may not be in conflict with any imposed or pending court order, settlement agreement, or complaint brought by HUD. HACCC will assess any changes in racial, ethnic or disability-related tenant composition at each PHA site that may have occurred during the implementation of the site-based waiting list, based on confirmed and accurate PIC occupancy data. At least every three years, the PHA will use independent testers to assure that the site-based system is not being implemented in a discriminatory manner. HACCC will give priority to participants moving under a VAWA emergency transfer from one PBV development to another in accordance with Section 18-VI.E. 18-V.E. SELECTION FROM THE WAITING LIST [24 CFR 983.251(C)] After conversion to RAD PBV, applicants who will occupy units with RAD PBV assistance must be selected from the PHA’s waiting list. The PHA may establish selection criteria or preferences for occupancy of particular PBV units. Income Targeting [24 CFR 983.251(c)(6); Notice PIH 2019-23] At least 75 percent of the families admitted to the PHA’s tenant-based and project-based voucher programs during the PHA fiscal year from the waiting list must be extremely-low-income families. The income targeting requirement applies to the total of admissions to both programs. 706 18-25 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Families in place at the time of the conversion are exempt from income targeting requirements. New admissions follow standard PBV requirements. Any non-RAD PBV units located in the same project are also subject to these requirements. Units with Accessibility Features [24 CFR 983.251(c)(7)] When selecting families to occupy PBV units that have special accessibility features for persons with disabilities, the PHA must first refer families who require such features to the owner. Preferences [24 CFR 983.251(d); FR Notice 11/24/08; Notice PIH 2019-23] The PHA may use the same selection preferences that are used for the tenant-based voucher program, establish selection criteria or preferences for the PBV program as a whole, or for occupancy of particular PBV developments or units. HACCC Policy HACCC will offer the same preferences for the RAD PBV program that it does for the regular PBV program as outlined in Chapter 17 of this Administrative Plan. 18-V.F. OFFER OF PBV ASSISTANCE Refusal of Offer [24 CFR 983.251(e)(3)] The PHA is prohibited from taking any of the following actions against a family who has applied for, received, or refused an offer of PBV assistance: • Refusing to list the applicant on the waiting list for tenant-based voucher assistance • Denying any admission preference for which the applicant qualifies • Changing the applicant’s place on the waiting list based on preference, date, and time of application, or other factors affecting selection under the PHA’s selection policy • Removing the applicant from the tenant-based voucher waiting list Disapproval by Landlord [24 CFR 983.251(e)(2)] If a PBV owner rejects a family for admission to the owner’s units, such rejection may not affect the family’s position on the tenant-based voucher waiting list. Acceptance of Offer [24 CFR 983.252] Family Briefing When a family accepts an offer for PBV assistance, the PHA must give the family an oral briefing. The briefing must include information on how the program works and the responsibilities of the family and owner. In addition to the oral briefing, the PHA must provide a briefing packet that 707 18-26 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 explains how the PHA determines the total tenant payment for a family, the family obligations under the program, and applicable fair housing information. HACCC shall conduct briefings for new participants and households moving to other units by telephone or other electronic means and refer them to our website for the briefing packet or mail it to the family to have and follow along with staff during the phone briefing. The tenant file will be documented with the date and time of the remote briefing and how the briefing packet was provided to them. Persons with Disabilities If an applicant family’s head or spouse is disabled, the PHA must assure effective communication, in accordance with 24 CFR 8.6, in conducting the oral briefing and in providing the written information packet. This may include making alternative formats available (see Chapter 2). In addition, the PHA must have a mechanism for referring a family that includes a member with a mobility impairment to an appropriate accessible PBV unit. Persons with Limited English Proficiency The PHA should take reasonable steps to assure meaningful access by persons with limited English proficiency in accordance with Title VI of the Civil Rights Act of 1964 and Executive Order 13166 (see Chapter 2). 18-V.G. OWNER SELECTION OF TENANTS [24 CFR 983.253] The owner is responsible for developing written tenant selection procedures that are consistent with the purpose of improving housing opportunities for very low-income families and reasonably related to program eligibility and an applicant’s ability to fulfill their obligations under the lease. An owner must promptly notify in writing any rejected applicant of the grounds for any rejection. Leasing [24 CFR 983.253(a)] During the term of the HAP contract, the owner must lease contract units to eligible families that are selected and referred by the PHA from the PHA’s waiting list. The contract unit leased to the family must be the appropriate size unit for the size of the family, based on the PHA’s subsidy standards. Filling Vacancies [24 CFR 983.254(a)] The owner must promptly notify the PHA of any vacancy or expected vacancy in a contract unit. After receiving such notice, the PHA must make every reasonable effort to promptly refer a sufficient number of families for the owner to fill such vacancies. The PHA and the owner must make reasonable efforts to minimize the likelihood and length of any vacancy. HACCC Policy 708 18-27 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The owner must notify HACCC in writing (mail, fax, or e-mail) within five business days of learning about any vacancy or expected vacancy. HACCC will make every reasonable effort to refer families to the owner within 10 business days of receiving such notice from the owner. Units set aside for homeless and disabled applicants, will be occupied by referrals from the County's Coordinated Entry System. 18-V.H. TENANT SCREENING [24 CFR 983.255] PHA Responsibility The PHA is not responsible or liable to the owner or any other person for the family’s behavior or suitability for tenancy. However, the PHA may opt to screen applicants for family behavior or suitability for tenancy and may deny applicants based on such screening. HACCC Policy HACCC will not conduct screening to determine a PBV applicant family’s suitability for tenancy. The PHA must provide the owner with an applicant family’s current and prior address (as shown in PHA records) and the name and address (if known by the PHA) of the family’s current landlord and any prior landlords. In addition, the PHA may offer the owner other information the PHA may have about a family, including information about the tenancy history of family members or about drug trafficking and criminal activity by family members. The PHA must provide applicant families a description of the PHA policy on providing information to owners, and the PHA must give the same types of information to all owners. The PHA may not disclose to the owner any confidential information provided in response to a request for documentation of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking, except at the written request or with the written consent of the individual providing the documentation [24 CFR 5.2007(c)]. HACCC Policy HACCC will inform owners of their responsibility to screen prospective tenants and will provide owners with the required known name and address information, at the time of the turnover HQS inspection or before. HACCC will not provide any additional information to the owner, such as tenancy history, criminal history, etc. All households who were living in the Converting property are not subject to further screening for the replacement units. 709 18-28 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Owner Responsibility The owner is responsible for screening and selection of the family to occupy the owner’s unit. When screening families the owner may consider a family’s background with respect to the following factors: • Payment of rent and utility bills • Caring for a unit and premises • Respecting the rights of other residents to the peaceful enjoyment of their housing • Drug-related criminal activity or other criminal activity that is a threat to the health, safety, or property of others • Compliance with other essential conditions of tenancy 710 18-29 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART VI: OCCUPANCY 18-VI.A. OVERVIEW After an applicant has been selected from the waiting list, determined eligible by the PHA, referred to an owner, and determined suitable by the owner, the family will sign the lease and occupancy of the unit will begin. 18-VI.B. LEASE [24 CFR 983.256] The tenant must have legal capacity to enter into a lease under state and local law. Legal capacity means that the tenant is bound by the terms of the lease and may enforce the terms of the lease against the owner. The tenant and the owner must enter into a written lease agreement that is signed by both parties. The tenancy addendum must include, word-for-word, all provisions required by HUD. Lease Requirements [24 CFR 983.256(c); Notice PIH 2019-23] The lease for a PBV unit must specify all of the following information: • The names of the owner and the tenant; • The unit rented (address, apartment number, if any, and any other information needed to identify the leased contract unit); • The term of the lease (initial term and any provision for renewal); • The amount of the tenant rent to owner, which is subject to change during the term of the lease in accordance with HUD requirements; • A specification of the services, maintenance, equipment, and utilities that will be provided by the owner; • The amount of any charges for food, furniture, or supportive services; and • For any family admitted following conversion, the lease must specify what will happen if the family elects to remain in its unit after increasing its income such that it requires zero HAP. Specifically, the lease must make clear how the tenant rent will be calculated, and it must address the transition to a new lease. The PHA must include resident procedural rights for termination notification and grievance procedures in the owner’s lease. These requirements are not part of the regular PBV program but are required under RAD. Tenancy Addendum [24 CFR 983.256(d)] The tenancy addendum in the lease must state: 711 18-30 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • The program tenancy requirements • The composition of the household as approved by the PHA (the names of family members and any PHA-approved live-in aide) All provisions in the HUD-required tenancy addendum must be included in the lease. The terms of the tenancy addendum prevail over other provisions of the lease. Initial Term and Lease Renewal [24 CFR 983.256(f); RAD PBV Quick Reference Guide 06/20] Leases for residents who will remain in place (i.e., who will not be relocated solely as a result of conversion) must have an effective date that coincides with—and must be signed on or before— the effective date of the RAD PBV HAP contract. The initial lease term must be for at least one year. The lease must provide for automatic renewal after the initial term of the lease in either successive definitive terms (e.g., month-to-month or year- to-year) or an automatic indefinite extension of the lease term. For automatic indefinite extension of the lease term, the lease terminates if any of the following occur: • The owner terminates the lease for good cause • The tenant terminates the lease • The owner and tenant agree to terminate the lease • The PHA terminates the HAP contract • The PHA terminates assistance for the family Changes in the Lease [24 CFR 983.256(e)] If the tenant and owner agree to any change in the lease, the change must be in writing, and the owner must immediately give the PHA a copy of all changes. The owner must notify the PHA in advance of any proposed change in the lease regarding the allocation of tenant and owner responsibilities for utilities. Such changes may only be made if approved by the PHA and in accordance with the terms of the lease relating to its amendment. The PHA must redetermine reasonable rent, in accordance with program requirements, based on any change in the allocation of the responsibility for utilities between the owner and the tenant. The redetermined reasonable rent will be used in calculation of the rent to owner from the effective date of the change. Owner Termination of Tenancy [24 CFR 983.257; Notice PIH 2019-23] 712 18-31 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 With two exceptions, the owner of a PBV unit may terminate tenancy for the same reasons an owner may in the tenant-based voucher program (see Section 12-III.B. and 24 CFR 982.310). In the PBV program, terminating tenancy for “good cause” does not include doing so for a business or economic reason, or a desire to use the unit for personal or family use or other non-residential purpose. Projects converting from public housing to PBV under RAD have additional procedural rights that do not apply to the standard PBV program. These procedural rights must be included in the owner’s lease as well as the PHA’s administrative plan. In addition to the regulations at 24 CFR 983.257 related to project owner termination of tenancy and eviction (which MTW agencies may not alter) the termination procedure for RAD conversions to PBV will require that PHAs provide adequate written notice of termination of the lease, which may not be less than: • A reasonable period of time, but not to exceed 30 days: - If the health or safety of other tenants, PHA employees, or persons residing in the immediate vicinity of the premises is threatened; or - In the event of any drug-related or violent criminal activity or any felony conviction • Not less than 14 days in the case of nonpayment of rent • Not less than 30 days in any other case, except that if a state or local law provides for a shorter period of time, such shorter period will apply These provisions apply to non-RAD PBV units located in the project as well. Tenant Absence from the Unit [24 CFR 983.256(g) and 982.312(a)] The lease may specify a maximum period of family absence from the unit that may be shorter than the maximum period permitted by PHA policy. According to program requirements, the family’s assistance must be terminated if they are absent from the unit for more than 180 consecutive days. PHA termination of assistance actions due to family absence from the unit are subject to 24 CFR 982.312, except that the unit is not terminated from the HAP contract if the family is absent for longer than the maximum period permitted. Continuation of Housing Assistance Payments [24 CFR 983.258; Notice PIH 2019-23; Notice PIH 2023-19; RAD PBV Quick Reference Guide 06/20] Pre-Conversion Residents The unit for a family with a TTP that equals or exceeds the gross rent (which is defined as the contract rent plus any utility allowance for the unit) must be placed on the PBV HAP contract and the family must be admitted to the PBV program. Current residents living in the property prior to conversion are placed on and remain under the HAP contract when TTP equals or exceeds gross rent. In this case, and until such time as the family’s 713 18-32 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 TTP falls below the gross rent, the family will pay the owner the alternate rent which is defined as the lesser of: x theirThe family’s TTP minus the utility allowance or any applicable maximum rent under the LIHTC program(subject to any required phase-in); or x The Zero HAP Rent Cap, which is the lower of: - 110 percent for the applicable FMR minus the utility allowance; or - In the event the units are subject to more restrictive rent setting requirement under the LIHTC or HOME programs (or other programs approved by HUD on a project-specific basis, the rent to owner set to comply with such requirements. . The family will continue to pay this amount until/if circumstances change and HAP is paid on their behalf. In other words, assistance may subsequently be reinstated if the tenant becomes eligible for assistance in which case normal PBV rent requirements will apply to the family. In such cases, the resident is still considered a program participant. All of the family obligations and protections under RAD and standard PBV apply to the resident. Likewise, all requirements with respect to the unit, such as compliance with the HQS requirementsNSPIRE standards, apply as long as the unit is under HAP contract or added back to the HAP Contract. Any non-RAD PBV units located in the same project are also subject to these requirements. After a family has paid the Zero HAP Rent Cap for a period of 180 days, the PHA must remove the unit from the HAP Contract and the family’s participation in the PBV program ends. If the Covered Project is fully assisted and the family subsequently leaves the property, the PHA must reinstate the unit back onto the HAP contract and admit an eligible family. If the Covered Project is partially assisted and the family subsequently leaves the property, the unit must be reinstated back onto the HAP contract unless the PHA previously substituted a different unit on the HAP contract in accordance with 24 CFR § 983.207 or, where “floating units” have been permitted. Additionally, if the family continues to reside in the project after the family’s unit was removed from the HAP contract, the family may request to return to the PBV program if the family’s income subsequently decreases to the extent that the family’s TTP is less than the Zero-HAP Rent Cap, and the family is otherwise eligible for PBV assistance. The PHA must, at the earliest opportunity, reinstate the family’s unit back onto the HAP contract to provide rental assistance to the family. If the project was partially assisted and the PHA previously substituted a different unit on the HAP contract, the PHA must substitute the family’s unit for a vacant unit on the HAP contract if there is a vacant unit at the time of the request, or by doing so as soon as a unit on the HAP contract becomes vacant if there are no vacant units on the HAP contract at the time of the family request . New Admission Families Unless a waiver is requested and approved, following conversion, 24 CFR 983.53(d) applies, and any new families referred to the RAD PBV project must be initially eligible for a HAP payment at admission to the program. This means a family’s TTP may not equal or exceed the gross rent for the unit at admission. The PHA may request a waiver from HUD in order to admit otherwise eligible 714 18-33 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 families whose TTP exceeds gross rent and to allow the units those families occupy to remain under the HAP contract even if the PHA has not paid HAP for the family in 180 days Further, for any new families admitted after the conversion, assistance will be terminated 180 days after the last housing assistance payment on their behalf. The cessation of housing assistance payments does not affect the family’s other rights under its lease, nor does it preclude the resumption of payments as a result of later changes in income, rents, or other relevant circumstances if such changes occur within the 180-day window. If a family’s assistance is terminated as a result of their zero HAP status, the PHA must remove the unit from the HAP contract. If the project is fully assisted and the family subsequently leaves the property, the PHA must reinstate the unit after the family has vacated the property. If the project is partially assisted, the PHA may substitute a different unit for the unit on the HAP contract in accordance with 24 CFR 983.207 or where floating units have been permitted. Per the RAD Use Agreement, the owner may charge the family a rent that does not exceed 30 percent of 80 percent of the area median income. If a unit is removed from the RAD PBV HAP contract, then the lease terminates automatically, as stated in the tenancy addendum, as though the RAD PBV HAP contract had been terminated. The tenant must be offered a new lease, which must reflect the new tenant rent. A tenant in this circumstance is no longer a program participant and therefore no longer benefits from any of the rights or protections specific to RAD, or to the PBV program. Should the family subsequently lose employment, the owner may choose to reduce the family’s rent, but if the family wishes to be admitted to the HCV/PBV program, then it must be admitted through the waiting list like any other applicant. In circumstances where low RAD PBV rents may prohibit a significant number of otherwise eligible families on the waiting list from being admitted to the project because they do not require subsidy, and which could consequently create an undue concentration of poverty at the project compared to non-RAD PBV projects, a PHA may request a waiver from HUD for the covered project. The waiver will apply the alternative requirements applicable to the pre-conversion residents to new admission families. HACCC Policy HACCCThe PHA will not request a waiverwaivers from HUD to apply the alternative requirements applicable to pre-conversion residents to new admission families. allow new families whose TTP initially exceeds gross rent to occupy units. If a participating family who was admitted after the RAD conversion receives zero assistance and subsequently experiences a change in circumstances that would result in a HAP payment to the owner, the family must notify the PHA of the change and request an interim reexamination before the expiration of the 180-day period. Security Deposits [24 CFR 983.259; RAD PBV Quick Reference Guide (06/20)] Owners are permitted to recognize security deposit amounts that have been previously provided by tenants who are in-place at the time of the RAD conversion. If a tenant residing in a converting 715 18-34 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 project has not previously provided a security deposit, then the owner may collect a security deposit at the time of initial lease execution. Otherwise, the security deposit requirements for standard PBV apply. The owner may collect a security deposit from the tenant. The PHA may prohibit security deposits in excess of private market practice, or in excess of amounts charged by the owner to unassisted tenants. HACCC Policy HACCC will allow the owner to collect a security deposit amount the owner determines is appropriate and commensurate with local and California rental laws. When the tenant moves out of a contract unit, the owner, subject to state and local law, may use the security deposit, including any interest on the deposit, in accordance with the lease, as reimbursement for any unpaid tenant rent, damages to the unit, or other amounts owed by the tenant under the lease. The owner must give the tenant a written list of all items charged against the security deposit and the amount of each item. After deducting the amount used to reimburse the owner, the owner must promptly refund the full amount of the balance to the tenant. If the security deposit does not cover the amount owed by the tenant under the lease, the owner may seek to collect the balance from the tenant. The PHA has no liability or responsibility for payment of any amount owed by the family to the owner. 18-VI.C. PUBLIC HOUSING FSS AND ROSS PARTICIPANTS [NOTICE PIH 2019-23] Current PH FSS participants will continue to participate in the PHA’s FSS program, and PHAs will be allowed to use any PH FSS funds granted previously or pursuant to the current fiscal year (FY) PH FSS notice of funding availability (NOFA), to serve those FSS participants who live in units converted to RAD and who will as a result be moving to the HCV FSS program. A PHA must convert the PH FSS program participants at the covered project to their HCV FSS program. Residents who were converted from the PH FSS program to the HCV FSS program through RAD may not be terminated from the HCV FSS program or have HCV assistance withheld due to the participant’s failure to comply with the contract of participation. Consequently, 24 CFR 984.303(b)(5)(iii) does not apply to FSS participants in converted properties. At the completion of the FSS grant, PHAs should follow the normal closeout procedures outlined in the grant agreement. If the PHA continues to run an FSS program that serves PH and/or HCV participants, the PHA will continue to be eligible (subject to NOFA requirements) to apply for FSS funding. Current Resident Opportunities and Self-Sufficiency–Service Coordinators (ROSS–SC) program grantees will be able to finish out their current ROSS–SC grants once their housing is converted 716 18-35 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 under RAD. However, once the property is converted, it will no longer be eligible to be counted towards the unit count for future public housing ROSS–SC grants. At the completion of the ROSS-SC grant, PHAs should follow the normal closeout procedures outlined in the grant agreement. Please note that ROSS-SC grantees may be a non-profit or local resident association and this consequence of a RAD conversion may impact those entities. Any non-RAD PBV units located in the same project are also subject to these requirements. 18-VI.D. RESIDENT PARTICIPATION AND FUNDING [NOTICE PIH 2019-23] Residents of covered projects converting assistance to PBVs will have the right to establish and operate a resident organization for the purpose of addressing issues related to their living environment and be eligible for resident participation funding. Resident rights under RAD conversions apply to all PBV assisted units in a project, RAD or PBV. 18-VI.E. MOVES Overcrowded, Under-Occupied, and Accessible Units [24 CFR 983.260; Notice PIH 2019-23] All in-place tenants at the time of conversion are eligible to remain in the project. Over-housed families should be moved into appropriately sized units if such units are available in the new or rehabbed project. If appropriately sized units are not available, the existing tenants may continue to be over-housed until an appropriately sized unit becomes available or until the tenant leaves the project. Once the unit turns over, it must be leased to an appropriately sized family. Any non- RAD PBV units located in the same project are also subject to these requirements. Following conversion, the standard PBV regulations apply. If the PHA determines that a family is occupying a wrong-size unit, based on the PHA’s subsidy standards, or a unit with accessibility features that the family does not require, and the unit is needed by a family that does require the features, the PHA must promptly notify the family and the owner of this determination, and the PHA must offer the family the opportunity to receive continued housing assistance in another unit. HACCC Policy The PHA will notify the family and the owner of the family’s need to move based on the occupancy of a wrong-size or accessible unit within 10 business days of the PHA’s determination. The PHA will offer the family the following types of continued assistance in the following order, based on the availability of assistance: - PBV assistance in the same building or project - PBV assistance in another project - Tenant-based voucher assistance 717 18-36 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If the PHA offers the family a tenant-based voucher, the PHA must terminate the housing assistance payments for a wrong-size or accessible unit at the earlier of the expiration of the term of the family’s voucher, including any extension granted by the PHA, or the date upon which the family vacates the unit. If the family does not move out of the wrong-size unit or accessible unit by the expiration of the term of the family’s voucher, the PHA must remove the unit from the HAP contract. If the PHA offers the family another form of assistance that is not a tenant-based voucher, and the family does not accept the offer, does not move out of the PBV unit within a reasonable time as determined by the PHA, or both, the PHA must terminate the housing assistance payments for the unit at the expiration of a reasonable period as determined by the PHA and remove the unit from the HAP contract. HACCC Policy When HACCC offers a family another form of assistance that is not a tenant-based voucher, the family will be given 30 days from the date of the offer to accept the offer and move out of the PBV unit. If the family does not move out within this 30-day time frame, HACCC will terminate the housing assistance payments at the expiration of this 30-day period. HACCC may make exceptions to this 30-day period if needed for reasons beyond the family’s control such as death, serious illness, or other medical emergency of a family member. Family Right to Move [24 CFR 983.261] The family may terminate the lease at any time after the first year of occupancy. The family must give advance written notice to the owner in accordance with the lease and provide a copy of such notice to the PHA. Choice Mobility [Notice PIH 2019-23; PRRAC Choice Mobility Implementation Guidance, 8/20] Family’s Right to Choice Mobility Under RAD PBV, the choice mobility option provides families with the opportunity to move with continued assistance any time after 12 months of occupancy. All residents in converted properties should be aware of their housing mobility rights and of their options in a range of neighborhoods. HACCC Policy To ensure that residents are fully aware of and understand their rights under choice mobility, HACCC will inform families of their rights under the choice mobility option and the benefits to moving to lower poverty areas, and provide a summary of the steps necessary to exercise this option, at the time the family signs the lease for the RAD PBV unit and during their annual recertification. 718 18-37 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Information on choice mobility will be made be accessible to persons with disabilities, ensuring any information, electronic or otherwise, is accessible for persons with vision, hearing, and other disabilities. This information will also be made available in accordance with Limited English Proficiency (LEP) requirements, including document translation and use of interpretation services. See Chapter 2 for a more thorough discussion of accessibility and LEP requirements. Moving with Continued Assistance under Choice Mobility If the family wishes to move with continued tenant-based assistance, the family must contact the PHA to request the rental assistance prior to providing notice to terminate the lease. If the family terminates the lease in accordance with lease requirements, the PHA is required to offer the family the opportunity for continued tenant-based assistance, in the form of a voucher or other comparable tenant-based rental assistance. If a voucher or other comparable tenant-based assistance is not immediately available, the PHA must give the family priority to receive the next available opportunity for continued tenant-based assistance. Families are eligible to move with continued assistance under choice mobility after 12 months of occupancy. If the family terminates the assisted lease before the end of the first year, the family relinquishes the opportunity for continued tenant-based assistance. HACCC Policy: Prior to providing notice to the owner to terminate the lease, the family may submit a written request to HACCC for a choice mobility voucher at any time after completing the 12-month occupancy requirement. The family will remain eligible to request a choice mobility voucher as long as they continue living at the same covered project. If a family moves from one covered project to another covered project prior to completing their 12-month occupancy requirement, their 12-month clock will reset. The family must wait 12 months from the date of move at the new property before they may request another choice mobility voucher. If a family transfers to a different unit within the same covered project, the 12-month clock does not reset. HACCC will maintain a combined, agency-wide waiting list for all standard PBV and RAD PBV families wishing to exercise mobility after one year of tenancy. This list will be maintained separately from the tenant-based HCV list. Families on the choice mobility waiting list will be given priority over families on the tenant-based waiting list. The choice mobility waiting list will be organized by date and time of the family’s written request to exercise choice mobility. The list will also identify whether families live in standard or RAD PBV units. The PHA will not subject RAD PBV families applying for choice mobility vouchers to any additional rescreening requirements in order to receive a tenant-based voucher. Families exercising choice mobility will not be required to vacate their units before a lease has been entered into using their tenant-based voucher. At the time the PHA issues a choice mobility voucher, the PHA will 719 18-38 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 notify the family of their right to remain in their unit if they are unable find a rental unit using the tenant-based voucher. Turnover Cap If as a result of RAD, the total number of PBV units (including RAD PBV units) administered by the PHA exceeds 20 percent of the PHA’s authorized units under its HCV ACC with HUD, the PHA may establish a turnover cap. The PHA is not required to provide more than three-quarters of its turnover vouchers in any single year to the residents of covered projects. If the PHA chooses to establish a turnover cap and the cap is implemented, the PHA must create and maintain a waiting list in the order requests from eligible households were received. HACCC Policy As a result of RAD, the total number of PBV units (including RAD PBV units) administered by the PHA exceeds 20 percent of the PHA’s authorized units under its HCV ACC with HUD. Therefore, HACCC will establish a choice mobility cap. HACCC will not provide more than three-quarters of its turnover vouchers in a single year to residents of covered projects. Families who requested a choice mobility voucher and are denied due to the cap will be given priority the following year when choice mobility vouchers are again issued since the choice mobility list will be organized by the date and time of the family’s request. Emergency Transfers under VAWA [Notice PIH 2017-08] Except where special consideration is needed for the project-based voucher program, the PHA will follow VAWA policies as outlined in Chapter 16 Part IX of this administrative plan, including using the Emergency Transfer Plan as the basis for PBV transfers under VAWA (Exhibit 16-4). HUD requires that the PHA include policies that address when a victim has been living in a unit for less than a year or when a victim seeks to move sooner than a tenant-based voucher is available. HACCC Policy When the victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking has lived in the unit for less than one year, HACCC will provide several options for continued assistance. HACCC will first try to transfer the participant to another PBV unit in the same development or transfer to a different development where HACCC has PBV units. HACCC will expedite the administrative processes in this case in an effort to conduct the transfer as quickly as possible. If assistance is transferred to another development, the PHA will give priority to the participant on the other development’s waiting list. 720 18-39 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If no units are available for an internal transfer to a PBV development or if there is reasonable cause to believe that such a transfer would put the victim in jeopardy, the participant may receive continued assistance through an external transfer to either tenant- based rental assistance (HCV) or assistance in HACCC’s public housing program. Such a decision will be made by HACCC based on the availability of tenant-based vouchers and/or vacancies in public housing units. If a victim wishes to move after a year of occupancy in the unit, but no tenant-based vouchers are available, the PHA will offer the participant an internal transfer to another PBV unit in the same development or a transfer to a different development where HACCC has PBV units. HACCC will expedite the administrative processes in this case in an effort to conduct the transfer as quickly as possible. If no units are available for an internal transfer, or if there is reasonable cause to believe that such a transfer would put the victim in jeopardy, the participant may receive continued assistance through an external transfer to HACCC’s public housing program. 18-VI.F. REEXAMINATIONS [RAD PBV QUICK REFERENCE GUIDE 06/20] A family living in a unit converted from public housing to RAD PBV may retain its certification date. Unless a family’s annual reexamination is due at the same time as the effective date of the RAD PBV HAP contract, the PHA does not need to recertify tenants at the point of conversion. For each family residing in a unit undergoing conversion of assistance under RAD, the administering PHA will have to submit a form HUD-50058 reflecting the family’s admission to the voucher program. The effective date of the new admission will be the same as the effective date of the RAD PBV HAP contract. The form should include the same information previously found on the public housing form 50058, including the next annual reexamination date. 18-VI.G. EARNED INCOME DISALLOWANCE [NOTICE PIH 2019-23] With the implementation of Section 102 of HOTMA, the EID has been eliminated effective January 1, 2024. Tenants who are employed and are currently receiving the EID exclusion at the time of conversion will continue to receive the EID after conversion, in accordance with regulations at 24 CFR 5.617. Upon the expiration of the EID for such families, the rent adjustment will not be subject to rent phase-in; instead, the rent will automatically rise to the appropriate rent level based upon tenant income at that time. Any non-RAD PBV units located in the same project are also subject to these requirements. 18-VI.H. RESIDENTS’ PROCEDURAL RIGHTS [NOTICE PIH 2019-23] HUD is incorporating additional termination notification requirements for public housing projects that convert assistance under RAD to PBV and to non-RAD PBV units located in the same project beyond those for the standard PBV program. In addition to the regulations at 24 CFR 983.257 related to owner termination of tenancy and eviction (which MTW agencies may not alter) the termination procedure for RAD conversions to PBV require that PHAs provide adequate written notice of termination of the lease, which is: 721 18-40 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 - A reasonable period of time, but not to exceed 30 days: - If the health or safety of other tenants, project owner employees, or persons residing in the immediate vicinity of the premises is threatened; or - In the event of any drug-related or violent criminal activity or any felony conviction. x Not less than 14 days in the case of nonpayment of rent x Not less than 30 days in any other case, except that if a state or local law provides for a shorter period of time, such shorter period will apply 18-VI.I. INFORMAL REVIEWS AND HEARINGS [NOTICE PIH 2019-23] In addition to reasons for an informal hearing listed at 24 CFR 982.555(a)(1)(i)–(vi) (See 16-III.C. Informal Hearings for Participants), an opportunity for an informal hearing must be given to residents for any dispute that a resident may have with respect to an owner action in accordance with the individual’s lease or the contract administrator in accordance with RAD PBV requirements that adversely affect the resident’s rights, obligations, welfare, or status. x For any hearing required under 24 CFR 982.555(a)(1)(i)–(vi), the contract administrator will perform the hearing in accordance with Chapter 16 Part III: Informal Reviews and Hearings, as is the current standard in the program. x For any additional hearings required under RAD, the PHA (as owner) will perform the hearing. An informal hearing will not be required for class grievances or for disputes between residents not involving the PHA (as owner) or contract administrator. This hearing requirement does not apply to and is not intended as a forum for initiating or negotiating policy changes between a group or groups of residents and the PHA (as owner) or contract administrator. The as owner must give residents notice of their ability to request an informal hearing as outlined in 24 CFR 982.555(c)(1) for informal hearings that will address circumstances that fall outside of the scope of 24 CFR 982.555(a)(1)(i)–(v). (See Chapter 16) The owner must provide an opportunity for an informal hearing before an eviction. 722 18-41 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART VII: DETERMINING CONTRACT RENT 18-VII.A. INITIAL CONTRACT RENTS [NOTICE PIH 2019-23] RAD conversions are intended to be cost-neutral, and therefore, should not exceed current public housing funding as adjusted for unit size. Since public housing units do not currently have contract rents, HUD provides an estimate of current contract rents for each PHA’s public housing units based on current funding as adjusted by bedroom size. Current funding includes operating subsidy, tenant rents, capital funds, replacement housing factor funds (RHF), and demolition disposition transitional funding (DDTF). The funding may limit the amount of initial rent for a property. A detailed explanation of the determination of current funding may be found in Attachment 1C of Notice PIH 2019-23. Once the current funding amount is calculated, the amount is adjusted by bedroom size to determine the current funding rent. HUD uses the same bedroom adjustment factors as in the metropolitan FMR schedules where the project is located. PHAs may adjust subsidy (and contract rents) across multiple projects as long as the PHA does not exceed the aggregate subsidy for all of the projects the PHA has submitted for conversion under RAD. Notwithstanding HUD’s calculation of the initial contract rent based on the project’s subsidy under the public housing program and any modifications made to the initial contact rent, the initial rents are set at the lower of: • An amount determined by the PHA, not to exceed 110 percent of the fair market rent (FMR) or the PHA’s exception payment standard approved by HUD, or the alternate rent cap in a PHA’s MTW agreement minus any utility allowance • The reasonable rent • The rent requested by the owner 18-VII.B. ADJUSTING CONTRACT RENTS [NOTICE PIH 2019-23; RAD PBV QUICK REFERENCE GUIDE 06/20; PHA Asset Repositioning “How to Apply OCAF for RAD PBV” Webinar] RAD PBV contract rents are adjusted differently than contract rents in the standard PBV program. At each annual anniversary of the HAP contract, contract rents will be adjusted only by HUD’s operating cost adjustment factor (OCAF) that is applied to the current contract rent, less the portion of the rent paid for debt service, subject to the availability of appropriations for each year of the contract term. As such, section 8(o)(13)(I) of the 1937 Act, and 24 CFR 983.301 and 983.302, concerning rent determinations, do not apply when adjusting rents. The rent to owner may at no time exceed the reasonable rent charged for comparable unassisted units in the private market, as determined by the contract administrator in accordance with 24 CFR 983.303. 723 18-42 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Contract rents may not exceed the reasonable rent (as determined by the PHA that administers the contract or the independent entity, as applicable), with the exception that the contract rent for each unit may not be reduced below the initial contract rent under the initial HAP contract. However, the rent to owner may fall below the initial contract rent in the following situations: • To correct errors in calculations in accordance with HUD requirements • If additional housing assistance has been combined with PBV assistance after the execution of the initial HAP contract and a rent decrease is required pursuant to 983.55 (prohibition of excess public assistance) • If a decrease in rent to owner is required based on changes in the allocation of responsibility for utilities between the owner and the tenant The contract rent adjustment will be the lesser of: • The current contract rent increased by the operating cost adjustment factor (OCAF), which is published annually in the Federal Register; or • The reasonable rent The administering PHA (or independent entity, if the project is PHA-owned) is responsible for processing rent adjustments, at each contract anniversary date, in accordance with the prevailing OCAF. The PHA who administers the contract (directly or via an independent entity) must maintain records to demonstrate how OCAF amounts were determined and how rent adjustments were calculated. HUD approval of rent adjustments is not required. Properties are eligible to receive prior years’ OCAF adjustments for years in which the OCAF was not taken. The OCAF must be applied retroactively if it was missed. The PHA administering the contract (or the independent entity) must make sure that all OCAFs have been applied correctly since the RAD closing and calculate the current rents accordingly, including making sure that the RAD PBV contract rents do not exceed the PBV program caps. HACCC Policy The owner will request a contract rent adjustment from the PHA who administers the contract within 120 days, but no less than 60 days, prior to the HAP contract anniversary date by submitting a completed OCAF rent adjustment worksheet (Form HUD-9624). The independent entity will validate the data on the form and determine whether the rent exceeds the reasonable rent charged for comparable unassisted units in the private market, in accordance with 24 CFR 983.303. If rents would be unreasonable following application of the requested OCAF, then the rent will only be increased up to the reasonable rent. The independent entity will notify the PHA who administers the contract in writing of the results of its review of the rent adjustment request. The PHA who administers the contract will retain a copy of the worksheet and any other records necessary to demonstrate how the OCAF was 724 18-43 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 used to make rent adjustments for audit purposes. The approved rent adjustment will go into effect via written notice from the PHA that administers the project to the owner. This notice will constitute an amendment to the rents specified on Exhibit A of the RAD PBV HAP contract. The new rents to owner will take effect on the date of the contract anniversary. Rent Decrease Rents must not be reduced below the initial rent except to correct errors, for additional subsidy to the property, or to realign utility responsibilities. 18-VII.C. UTILITY ALLOWANCES [NOTICE PIH 2019-23; RAD PBV QUICK REFERENCE GUIDE 06/20] When contract rent amounts are set initially, the amount does not include a utility allowance. In general, the utility allowances that are used on the initial HAP contract at closing are the public housing utility allowances that are in effect prior to conversion. The CHAP must be updated prior to conversion to reflect current public housing utility allowances. At its discretion, a PHA may use the FMRs and utility allowances in effect during the 30-day period immediately before the beginning date of the HAP contract. After conversion, the PHA that administers the contract must maintain the utility allowance schedule. The PHA may either maintain a utility allowance schedule for tenant-paid utilities in accordance with standard PBV and HCV utility allowance regulations at 24 CFR 983.301(f)(2)(ii) and 24 CFR 982.517 respectively, or the PHA may instead apply site specific utility allowances. HUD waived the requirement for the standard PBV program that the HCV utility allowance be used. If a site-specific utility allowance is used, the utility allowance is applicable to non-RAD PBV units in the project and is calculated consistent with Notice H 2015 04. Each family transitions to the new utility allowance at their first recertification following conversion. HACCC Policy HACCC will use the HCV utility allowance schedule for the RAD PBV developments unless an alternative utility allowance, such as the California Utility Allowance Calculator, has been adopted to accommodate HOME or other forms of assistance. 18-VII.D. REASONABLE RENT [24 CFR 983.303] At the time the initial rent is established and all times during the term of the HAP contract, the rent to owner for a contract unit may not exceed the reasonable rent for the unit as determined by the PHA, except rents must not be reduced below the initial rent except to correct errors, for additional subsidy to the property, or to realign utility responsibilities. How to Determine Reasonable Rent 725 18-44 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The reasonable rent of a unit receiving PBV assistance must be determined by comparison to rent for other comparable unassisted units. When making this determination, the PHA must consider factors that affect market rent. Such factors include the location, quality, size, type and age of the unit, as well as the amenities, housing services maintenance, and utilities to be provided by the owner. Comparability Analysis For each unit, the comparability analysis must use at least three comparable units in the private unassisted market. This may include units in the premises or project that is receiving project- based assistance. The analysis must show how the reasonable rent was determined, including major differences between the contract units and comparable unassisted units, and must be retained by the PHA. The comparability analysis may be performed by PHA staff or by another qualified person or entity. Those who conduct these analyses or are involved in determining the housing assistance payment based on the analyses may not have any direct or indirect interest in the property. PHA-Owned Units For PHA-owned units, the amount of the reasonable rent must be determined by an independent agency approved by HUD in accordance with PBV program requirements. The independent entity must provide a copy of the determination of reasonable rent for PHA-owned units to the PHA and to the HUD field office where the project is located. 726 18-45 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART VIII: PAYMENTS TO OWNER 18-VIII.A. HOUSING ASSISTANCE PAYMENTS During the term of the HAP contract, the PHA must make housing assistance payments to the owner in accordance with the terms of the HAP contract. During the term of the HAP contract, payments must be made for each month that a contract unit complies with NSPIREHQS and is leased to and occupied by an eligible family. The housing assistance payment must be paid to the owner on or about the first day of the month for which payment is due, unless the owner and the PHA agree on a later date. Except for discretionary vacancy payments, the PHA may not make any housing assistance payment to the owner for any month after the month when the family moves out of the unit (even if household goods or property are left in the unit). The amount of the housing assistance payment by the PHA is the rent to owner minus the tenant rent (total tenant payment minus the utility allowance). In order to receive housing assistance payments, the owner must comply with all provisions of the HAP contract. Unless the owner complies with all provisions of the HAP contract, the owner does not have a right to receive housing assistance payments. 18-VIII.B. VACANCY PAYMENTS [24 CFR 983.352] If an assisted family moves out of the unit, the owner may keep the housing assistance payment for the calendar month when the family moves out. However, the owner may not keep the payment if the PHA determines that the vacancy is the owner’s fault. HACCC Policy If HACCC determines that the owner is responsible for a vacancy and as a result is not entitled to keep the housing assistance payment, HACCC will notify the landlord of the amount of housing assistance payment that the owner must repay. The PHA will require the owner to repay the amount owed in accordance with the policies in Section 16-IV.B. At the discretion of the PHA, the HAP contract may provide for vacancy payments to the owner. The PHA may only make vacancy payments if: • The owner gives the PHA prompt, written notice certifying that the family has vacated the unit and identifies the date when the family moved out (to the best of the owner’s knowledge); • The owner certifies that the vacancy is not the fault of the owner and that the unit was vacant during the period for which payment is claimed; • The owner certifies that it has taken every reasonable action to minimize the likelihood and length of vacancy; and 727 18-46 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • The owner provides any additional information required and requested by the PHA to verify that the owner is entitled to the vacancy payment. The owner must submit a request for vacancy payments in the form and manner required by the PHA and must provide any information or substantiation required by the PHA to determine the amount of any vacancy payment. HACCC Policy If an owner’s HAP contract calls for vacancy payments to be made, and the owner wishes to receive vacancy payments, the owner must have properly notified HACCC of the vacancy in accordance with the policy in Section 18-V.G. regarding filling vacancies. In order for a vacancy payment request to be considered, it must be made within 10 business days of the end of the period for which the owner is requesting the vacancy payment. The request must include the required owner certifications and HACCC may require the owner to provide documentation to support the request. If the owner does not provide the information requested by HACCC within 10 business days of HACCC’s request, no vacancy payments will be made. 18-VIII.C. TENANT RENT TO OWNER [24 CFR 983.353] The tenant rent is the portion of the rent to owner paid by the family. The amount of tenant rent is determined by the PHA in accordance with HUD requirements. Any changes in the amount of tenant rent will be effective on the date stated in the PHA notice to the family and owner. The family is responsible for paying the tenant rent (total tenant payment minus the utility allowance). The amount of the tenant rent determined by the PHA is the maximum amount the owner may charge the family for rental of a contract unit. The tenant rent covers all housing services, maintenance, equipment, and utilities to be provided by the owner. The owner may not demand or accept any rent payment from the tenant in excess of the tenant rent as determined by the PHA. The owner must immediately return any excess payment to the tenant. Initial Certifications [Notice PIH 2019-23] For the initial certification, the PHA will use the family’s public housing tenant rent (reflected on line 10f of the family’s most recent 50058) at the date of conversion to calculate HAP and tenant rent for the PBV program. The PHA will use this amount until the effective date of the earlier of the family’s first regular or interim recertification following the conversion. At that point, the PHA will use the family’s TTP based on the recertification and the applicable utility allowance (HCV or RAD PBV site-based, as applicable) to determine PBV HAP and tenant rent. Any non- RAD PBV units located in the same project are subject to the same requirements. Tenant and PHA Responsibilities 728 18-47 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The family is not responsible for the portion of rent to owner that is covered by the housing assistance payment and the owner may not terminate the tenancy of an assisted family for nonpayment by the PHA. Likewise, the PHA is responsible only for making the housing assistance payment to the owner in accordance with the HAP contract. The PHA is not responsible for paying tenant rent, or any other claim by the owner, including damage to the unit. The PHA may not use housing assistance payments or other program funds (including administrative fee reserves) to pay any part of the tenant rent or other claim by the owner. Utility Reimbursements If the amount of the utility allowance exceeds the total tenant payment, the PHA must pay the amount of such excess to the tenant as a reimbursement for tenant-paid utilities, and the tenant rent to the owner must be zero. The PHA may pay the utility reimbursement directly to the family or to the utility supplier on behalf of the family. If the PHA chooses to pay the utility supplier directly, the PHA must notify the family of the amount paid to the utility supplier. HACCC Policy HACCC will make utility reimbursements directly to the family. 18-VIII.D. PHASE-IN OF TENANT RENT INCREASES [NOTICE PIH 2019-23; PHA Asset Repositioning “Phase-in of Tenant Rents” Webinar] For in-place tenants, if the amount the tenant would pay for rent and utilities (TTP) increases by more than the greater of 10 percent or $25 purely as a result of conversion, the rent increase will be phased in over three years. To implement this provision, HUD is waiving section 3(a)(1) of the 1937 Act, as well as 24 CFR 983.3 (definition of total tenant payment (TTP)) only to the extent necessary to allow for the phase-in of tenant rent increases. For families who were on EID at the time of conversion to RAD PBV, upon the expiration of the EID, the rent adjustment is not subject to rent phase-in. The PHA must communicate this policy in writing to affected residents. Any non-RAD PBV units located in the same covered project are subject to the terms of the phase-in provisions. HACCC Policy HACCC will use the family’s public housing tenant rent (reflected on line 10f of the family’s most recent 50058) at the date of conversion to calculate the family’s tenant rent in PBV. HACCC will implement a three-year phase-in for in-place families whose TTP increases by more than the greater of 10 percent or $25 purely as a result of the conversion as follows: - Year 1: Any recertification (interim or annual) performed prior to the second annual recertification after conversion: 33 percent of the difference between the most recently 729 18-48 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 paid TTP and the currently calculated PBV TTP. (If the family was paying flat rent immediately prior to conversion, the PHA will use the flat rent amount to calculate the phase-in for Year 1.) - Year 2: Year 2 annual recertification (AR) and any interim recertification (IR): 50 percent of the difference between the most recently paid TTP and the currently calculated PBV TTP. - Year 3: Year 3 annual recertification and all subsequent recertifications: Full calculated TTP Once the standard TTP is equal to or less than the previous TTP, the phase-in ends and tenants will pay full TTP from that point forward. If the family’s income falls during the phase-in period such that the currently calculated PBV TTP falls below the amount that would otherwise be the phased-in rent, the family pays the currently calculated PBV TTP and the phase-in ends. HACCC will communicate the PHA’s phase-in policy in writing to the family at the time HACCC’s first determines that the family qualifies for a rent phase-in. Any non-RAD PBV units located in the same project are also subject to rent phase-in requirements. 18.VIII.E. OTHER FEES AND CHARGES [24 CFR 983.354] Meals and Supportive Services With the exception of PBV assistance in assisted living developments, the owner may not require the tenant to pay charges for meals or supportive services. Non-payment of such charges is not grounds for termination of tenancy. In assisted living developments receiving PBV assistance, the owner may charge for meals or supportive services. These charges may not be included in the rent to owner, nor may the value of meals and supportive services be included in the calculation of the reasonable rent. However, non- payment of such charges is grounds for termination of the lease by the owner in an assisted living development. Other Charges by Owner The owner may not charge extra amounts for items customarily included in rent in the locality or provided at no additional cost to unsubsidized tenants in the premises. 730 19-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 CHAPTER 19 SPECIAL PURPOSE VOUCHERS INTRODUCTION Special purpose vouchers are specifically funded by Congress in separate appropriations from regular HCV program funding in order to target specific populations. Special purpose vouchers include vouchers for the following programs: x Family Unification Program (FUP) x Foster Youth to Independence (FYI) program x Veterans Affairs Supportive Housing (VASH) x Mainstream x Non-Elderly Disabled (NED) x Stability Voucher Program HACCC Policy HACCC will administer the following types of special purpose vouchers: Veterans Affairs Supportive Housing (VASH) Family Unification Program (FUP) Mainstream Emergency Housing Vouchers (EHV) Stability Vouchers Foster Youth to Independence This chapter describes HUD regulations and PHA policies for administering special purpose vouchers. The policies outlined in this chapter are organized into five sections, as follows: Part I: Family Unification Program (FUP) Part II: Foster Youth to Independence (FYI) program Part III: Veterans Affairs Supportive Housing (VASH) Part IV: Mainstream voucher program Part V: Non-Elderly Disabled (NED) vouchers Part VI: Stability Voucher program Except as addressed by this chapter and as required under federal statute and HUD requirements, the general requirements of the HCV program apply to special purpose vouchers. 731 19-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART I: FAMILY UNIFICATION PROGRAM (FUP) 19-I.A. PROGRAM OVERVIEW [Fact Sheet, Housing Choice Voucher Program Family Unification Program (FUP)] Overview The Family Unification Program (FUP) was authorized by Congress in 1990 to help preserve and reunify families. PHAs that administer the program provide vouchers to two different populations—FUP families and FUP youth. Families eligible for FUP are families for whom the lack of adequate housing is a primary factor in: x The imminent placement of the family’s child or children in out-of-home care; or x The delay in the discharge of the child or children to the family from out-of-home care. There is no time limitation on FUP family vouchers, and the family retains their voucher as long as they are HCV-eligible. There is no requirement for the provision of supportive services for FUP family vouchers. Youth eligible for FUP are those who: x Are at least 18 years old and not moreless than 254 years of age at the time of HAP Contract effective date; x Have left foster care or will leave foster care within 90 days, in accordance with a transition plan described in section 475(5)(H) of the Social Security Act at age 16 and older; and x Are homeless or at risk of becoming homeless. FUP youth vouchers are limited by statute to a period between 36 and 60 months of housing assistance. Supportive services must also be provided to FUP-eligible youth by the Public Child Welfare Agency (PCWA) or by another agency or organization under contract with the PCWA for the period of time defined in the notice or Notice of Funding Availability/Opportunity (NOFA/O) for which funding was made available. PHAs that wish to administer FUP vouchers must apply to HUD by submitting an application under an active Notice of Funding Opportunity (NOFO). While the FUP program is administered in accordance with HCV regulations, the FUP NOFOs issued by HUD provide specific program information and requirements. In order to administer the program, the PHA must also form a partnership with a local PCWA who is responsible for determining the family or youth meets FUP eligibility requirements and referring them to the PHA. Once the referral is received, the PHA is responsible for placing the FUP family or youth on the PHA’s waiting list and determining whether they are eligible to receive assistance under the PHA’s HCV program. Assigning Vouchers [FUP FAQs] The PHA may, but is not required to, assign a specific number or percentage of FUP vouchers for FUP youths and FUP families. Unless the PHA assigns a specific number or percentage of FUP vouchers to a designated FUP population, the PHA must serve any referrals (youths or families) that meet all program eligibility requirements up to the PHA’s designated FUP program size. 732 19-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy HACCC has not designated any specific number or percentage of FUP vouchers for youths or families. HACCC will serve all referrals that meet program eligibility requirements, up to HACCC’s FUP voucher allocation. Since these are early generation FUP vouchers, there is no requirement to re-issue turnover FUP vouchers to new FUP families, but HACCC shall make every effort to re-issue the FUP voucher to a FUP-eligible household or a FUP-Youth- eligible household. 19-I.B. PUBLIC CHILD WELFARE AGENCY (PCWA) Families and youth do not apply directly to the PHA for FUP vouchers. They are instead referred by a PCWA with whom the PHA has entered into a Memorandum of Understanding (MOU). The partnering PCWA initially determines whether the family or youth meets the FUP program eligibility requirements listed in 19-I.C. and 19-I.D. and then refers those families or youths to the PHA. HUD strongly encourages PHAs and PCWAs to make decisions collaboratively on the administration of the program and to maintain open and continuous communication. The PCWA must have a system for identifying FUP-eligible youth within the agency’s caseload and for reviewing referrals from a Continuum of Care (COC) if applicable. HACCC Policy HACCC entered into an MOU with the following partnering organizations: Contra Costa County Employment and Human Services Department (EHSD). This partnership was intended for the original FUP vouchers awarded to HACCC. Should any new funding be awarded to HACCC, a new MOU will be executed to reflect the current FUP Program regulations and requirements. Supportive Services The PCWA must provide supportive services for the period of time defined in the notice or NOFA/O for which the funding was made available to all FUP-eligible youth regardless of their age. The MOU between the PHA and the PCWA should identify the period of time in which supportive services will be provided. HACCC Policy HACCC will ensure that any future MOU with EHSD for FUP-eligible youth will provide supportive services for all FUP youth for a period of 36 months. Supportive services may be provided to FUP-eligible youth by the PCWA or by another agency or organization under agreement or contract with the PCWA, including the PHA. The organization providing the services and resources must be identified in the MOU. The following services must be offered: x Basic life skills information or counseling on money management, use of credit, housekeeping, proper nutrition or meal preparation, and access to health care (e.g., doctors, medication, and mental and behavioral health services); 733 19-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 x Counseling on compliance with rental lease requirements and with HCV program participant requirements, including assistance or referrals for assistance on security deposits, utility hook- up fees, and utility deposits; x Providing such assurances to owners of rental property as are reasonable and necessary to assist a FUP-eligible youth to rent a unit with a FUP voucher; x Job preparation and attainment counseling (where to look and how to apply, dress, grooming, relationships with supervisory personnel, etc.); and x Educational and career advancement counseling regarding attainment of general equivalency diploma (GED), or attendance or financing of education at a technical school, trade school, or college, including successful work ethic and attitude models. HACCC Policy Additional supportive services have not been identified at this time. However as additional support services are identified as being needed, HACCC shall work with EHSD to ensure that they will be offered. A FUP-eligible youth cannot be required to participate in these services as a condition of receipt of the FUP voucher. 19-I.C. FUP FAMILY VOUCHER ELIGIBILITY CRITERIA FUP family assistance is reserved for eligible families that the PCWA has certified are a family for whom a lack of adequate housing is a primary factor in: x The imminent placement of the family’s child or children in out-of-home care, or x The delay in the discharge of the child or children to the family from out-of-home care. Lack of adequate housing means the family meets any one of the following conditions: x Living in substandard housing, which refers to a unit that meets any one of the following conditions: - Does not have operable indoor plumbing - Does not have a usable flush toilet inside the unit for the exclusive use of a family or youth - Does not have a usable bathtub or shower inside the unit for the exclusive use of a family or youth - Does not have electricity, or has inadequate or unsafe electrical service - Does not have a safe or adequate source of heat - Should, but does not, have a kitchen - Has been declared unfit for habitation by an agency or unit of government, or in its present condition otherwise endangers the health, safety, or well-being of the family or youth - Has one or more critical defects, or a combination of intermediate defects in sufficient number or to the extent that it requires considerable repair or rebuilding. The defects may 734 19-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 result from original construction, from continued neglect or lack of repair, or from serious damage to the structure x Being homeless as defined in 24 CFR 578.3 x Living in a unit where the presence of a household member with certain characteristics (i.e., conviction for certain criminal activities) would result in the imminent placement of the family’s child or children in out-of-home care, or the delay in the discharge of the child or children to the family from out-of-home care x Living in housing not accessible to the family’s disabled child or children due to the nature of the disability x Living in an overcrowded unit, which is defined as living in a unit where one of the following conditions has been met: - The family is separated from its child or children and the parents are living in an otherwise standard housing unit, but, after the family is reunited, the parents’ housing unit would be overcrowded for the entire family and would be considered substandard; or - The family is living with its child or children in a unit that is overcrowded for the entire family and this overcrowded condition may result, in addition to other factors, in the imminent placement of its child or children in out-of-home care. - For purposes of this definition, the determination as to whether the unit is overcrowded is made in accordance with the PHA subsidy standards in Chapter 5, Part III of this policy. Since HUD does not define imminent placement, the partnering PCWA may use its discretion to determine whether the potential out of home placement of the family’s child or children is imminent [FUP FAQs]. 19-I.D. FUP YOUTH VOUCHER ELIGIBILITY CRITERIA While FUP family vouchers operate as regular HCVs after the family is referred from the PCWA, there are several aspects of the FUP youth vouchers that make them distinct from the FUP family vouchers and from regular HCVs. Eligibility Criteria A FUP-eligible youth is a youth the PCWA has certified: x Is at least 18 years old and not more than 24 years of age (has not yet reached their 25th birthday); - The FUP youth must be no more than 24 years old at the time the PCWA certifies them as eligible and at the time of HAP contract execution. x Has left foster care or will leave foster care within 90 days, in accordance with a transition plan described in section 475(5)(H) of the Social Security Act; - Foster care placement can include, but is not limited to, placements in foster family homes, foster homes of relatives, group homes, emergency shelters, residential facilities, child care institutions, and pre-adoptive homes in accordance with 24 CFR 5.576. x Is homeless or at risk of becoming homeless at age 16 or older; - At risk of being homeless is fully defined at 24 CFR 576.2. 735 19-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 o This includes a person that is exiting a publicly funded institution, or system of care (such as a healthcare facility, a mental health facility, foster care or other youth facility, or correction program or institution). o Therefore, youth being discharged from an institution may be eligible for a FUP voucher [FUP FAQs]. x Has an annual income at or below 30 percent of area median income; and x Does not have sufficient resources or support networks (e.g., family, friends, faith-based or other social networks) immediately available to prevent them from moving to a supervised publicly or privately operated shelter designed to provide temporary living arrangements. 19-I.E. ASSISTANCE PERIOD [FR Notice 1/24/22] Maximum Assistance Period Although there is no time limit on FUP family vouchers, FUP youth vouchers are limited by statute. Unless the FUP youth meets an exception outlined below, after 36 months of assistance, the FUP youth voucher must be terminated. However, any period of time for which no subsidy (HAP) is being paid on behalf of the youth does not count toward the 36-month limitation. If the FUP youth does meet the requirements outlined below, the statutory limit on FUP assistance is a total of 60 months of FUP voucher assistance [FR Notice 1/24/22]. Extension of Assistance FUP youth who first leased or lease a unit after December 27, 2020, may be eligible for an extension of assistance up to 24 months beyond the 36-month time limit (for a total of 60 months of assistance). While FUP youth cannot be required to participate in the Family Self-Sufficiency (FSS) program as a condition of receipt of assistance, an eligible youth who participates in the FSS program and is in compliance with the applicable terms and conditions of the program is entitled to receive assistance for up to an additional 24 months. A FUP youth must accept an FSS slot if it is offered to them prior to the 36-month mark in order to receive an extension of assistance (unless the youth meets one of the statutory exceptions described below). Statutory Exceptions A FUP youth will be entitled to receive an extension of assistance for up to 24 months beyond the 36-month time limit without participating in the PHA’s FSS program if they certify that they meet one of the exceptions below: x The FUP youth is a parent or other household member responsible for the care of a dependent child under the age of six or for the care of an incapacitated person. HACCC Policy The HACCC defines incapacitated person as a person who is totally without understanding, or is of unsound mind, or suffers from one or more mental deficits so substantial that, under the circumstances, the person should be deemed to lack the legal capacity to perform a specific act. The HACCC will apply this exception in a manner that provides extensions of FUP youth assistance to the broadest population possible consistent with the statutory requirements. 736 19-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The FUP youth will be required to self-certify that they meet this exception on a HACCC- provided form. This certification is the only documentation that the FUP youth must submit. The child or incapacitated person is not required to reside in the household in order for the youth to certify they meet this exception. For example, a child in a joint custody arrangement under the age of six who resides in the household only part-time may qualify the youth for this exception. x The FUP youth is a person who is regularly and actively participating in a drug addiction or alcohol treatment and rehabilitation program. HACCC Policy HACCC will define regular and active participation in a manner that provides extensions of FUP youth assistance to the broadest population possible consistent with the statutory requirements. The FUP youth will be required to self-certify that they meet this exception on an HACCC- provided form. This certification is the only documentation that the FUP youth must submit. x The FUP youth is a person who is incapable of complying with the requirement to participate in an FSS program as described above or engage in education, workforce development, or employment activities as described below, as applicable, due to a documented medical condition. HACCC Policy HACCC will apply this requirement in a manner that provides extensions of FUP youth assistance to the broadest population possible consistent with statutory requirements. The FUP youth will be required to self-certify that they meet this exception on an HACCC- provided form. This certification is the only documentation that the FUP youth must submit. A FUP youth that meets one of the above exceptions must still be offered an opportunity to enroll in HACCC’s FSS program (if it is available to them) and receive any supportive services available to FUP youth. A FUP youth may choose to participate in an FSS program or engage in education, workforce development, or employment activities, even if they meet one of the above statutory exceptions. Education, Workforce Development, or Employment Activities If a PHA that carries out an FSS program is unable to offer a FUP youth an FSS slot during their first 36 months of receiving FUP youth assistance, the youth is considered to have been “unable to enroll” in the program and may have their voucher extended by meeting the education, workforce development, or employment criteria described below: x The youth was engaged in obtaining a recognized postsecondary credential or a secondary school diploma or its recognized equivalent. HACCC Policy HACCC will use the definitions of recognized postsecondary credential and secondary school diploma or its recognized equivalent under the Workforce Innovation and Opportunity Act (WIOA). WIOA defines a recognized postsecondary credential as a credential consisting of an industry-recognized certificate or certification, a certificate of completion of an apprenticeship, a license recognized by the state involved or federal 737 19-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 government, or an associate or baccalaureate degree (29 U.S.C. 3102). Examples of a recognized postsecondary credential include, but are not limited to, an associate’s degree, bachelor’s degree, occupational licensure, or occupational certification (see U.S. Department of Labor, Training and Employment Guidance Letter No. 10–16, Change 1). For the purpose of WIOA, the U.S. Department of Labor defines a secondary school diploma or its recognized equivalent as a secondary school diploma (or alternate diploma) that is recognized by a state and that is included for accountability purposes under the Elementary and Secondary Education Act of 1965 (ESEA), as amended by the Every Student Succeeds Act (ESSA). A secondary school equivalency certification signifies that a student has completed the requirement for a high school education. Examples of a secondary school diploma or its recognized equivalent include, but are not limited to, obtaining certification of attaining passing scores on a state-recognized high school equivalency test, earning a secondary school diploma or state-recognized equivalent, or obtaining certification of passing a state-recognized competency-based assessment. x The youth was enrolled in an institution of higher education, as such term is defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)) or an institution that meets the definition of a proprietary institution of higher education or a postsecondary vocational institution under sections 102(b)(1) and (c)(1) of the Higher Education Act of 1965 (20 U.S.C. 1002(b)(1) and (c)(1)), respectively. HACCC Policy Youth must be enrolled in education activities on at least a half-time basis, as defined by the institution that they attend. However, HACCC may make exceptions to this requirement if the youth is unable to enroll in a sufficient number of classes due to a lack of course offerings by the educational institution where the youth is enrolled. x The youth was participating in a career pathway, as such term is defined in Section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102). The term career pathway means a combination of rigorous and high-quality education, training, and other services that: - Aligns with the skill needs of industries in the economy of the state or regional economy involved; - Prepares an individual to be successful in any of a full range of secondary or postsecondary education options, including apprenticeships registered under the Act of August 16, 1937 (commonly known as the “National Apprenticeship Act”; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.) (referred to individually in this Act as an apprenticeship, except in section 3226 of this title); - Includes counseling to support an individual in achieving the individual’s education and career goals; - Includes, as appropriate, education offered concurrently with and in the same context as workforce preparation activities and training for a specific occupation or occupational cluster; - Organizes education, training, and other services to meet the particular needs of an individual in a manner that accelerates the educational and career advancement of the individual to the extent practicable; 738 19-9 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 - Enables an individual to attain a secondary school diploma or its recognized equivalent, and at least one recognized postsecondary credential; and - Helps an individual enter or advance within a specific occupation or occupational cluster. x The youth was employed. HACCC Policy HACCC will consider the youth to be employed if they work a minimum of 20 hours per week. HACCC may make exceptions to this requirement if the youth’s hours are reduced due to circumstances beyond their control or the youth must temporarily reduce their work hours due to a verified family emergency. FSS Enrollment at 24 Months If the FUP youth has not been provided an opportunity to enroll in the FSS program during the first 24 months of FUP assistance, HUD encourages the PHA to remind the youth at the 24-month reexamination of the education, workforce development, and employment requirements described above so that the youth has enough time to meet these requirements prior to the expiration of the 36- month time period for FUP assistance. HACCC Policy If the FUP youth has not been provided an opportunity to enroll in the FSS program during the first 24 months of FUP assistance, HACCC will make an effort to remind the youth at their second regular reexamination of the education, workforce development, and employment requirements described above. FSS Enrollment Between 36 and 48 Months If an FSS slot becomes available between the 36-month and 48-month mark: x The PHA must offer the slot to a FUP youth who had their voucher extended based on meeting the education, workforce development, or employment requirement listed above, or one of the statutory exceptions listed above (even if the youth previously declined an FSS slot because they met one of the statutory exceptions). x The PHA must work with the youth to determine whether enrollment in FSS is feasible and in their best interest given any education, workforce development, or employment activities that the youth is engaged in and any statutory exceptions that apply to the youth, as well as the remaining time on their voucher. x If the FUP youth accepts the FSS slot, the PHA must work with the youth to establish Contract of Participation goals and an Individual Training and Services Plan (ITSP) that can be accomplished within the time period left on the voucher. If the FUP youth is offered an FSS slot prior to the 36-month mark, the youth: x Will be required to enroll in the FSS program in order to receive an extension of assistance at the end of the 36-month time period (unless they meet one of the statutory exceptions described above). x Will not be considered to have been “unable to enroll” in the FSS program as described above, and as a result, will not be eligible to receive an extension of assistance based on 739 19-10 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 meeting the education, workforce development, or employment requirements described above. FSS Enrollment After 48 Months The PHA may, but is not required to, offer a FUP youth an FSS slot that becomes available between the 48-month mark and the 60-month mark, since the youth will have already received their second and final extension. HACCC Policy If an FSS slot becomes available between the 48 and 60-month marks, HACCC will not offer the FSS slot to a FUP youth. Extensions of Assistance At the 36-month and 48-month reexamination, the PHA must extend FUP youth assistance if the youth is participating in and in compliance with the FSS program as long as the youth is still eligible for the HCV program. In any case, the FUP youth cannot receive more than a total of 60 months of FUP youth voucher assistance, even if the FSS Contract of Participation time period extends beyond the voucher 60- month mark. No FSS Program or Unable to Enroll in FSS If a PHA does not carry out an FSS program or the FUP youth has been unable to enroll in the program during the first 36 months of receiving FUP assistance, the FUP youth is entitled to receive an extension of assistance for up to two successive 12-month periods beyond the 36-month time limit provided that the youth engaged in at least one of the education, workforce development, or employment activities described above for not less than nine months of the 12-month period preceding each extension. In order to meet the nine months out of the preceding 12 months requirement, the youth may have engaged in one of the education, workforce development, or employment activities described above or a combination of these activities. Verification Prior to Annual Reexam In order to provide an extension of assistance, the PHA must verify compliance with the above requirements at the end of the 36-month time period and the 48-month time periods. The PHA does not need to verify compliance with these requirements at the end of the 60-month time period since the maximum length of assistance is 60 months. To verify compliance with the education, workforce development, or employment requirement or one of the statutory exceptions, the PHA must provide the FUP youth written notification informing them that they may receive an extension of their FUP assistance and providing instructions on how the youth may demonstrate that they meet one of these conditions. This notification must be provided sufficiently in advance of the end of the 36-month or 48-month time periods, as applicable, to allow the FUP youth to demonstrate that they meet the education, workforce development, or employment requirement, or one of the statutory exceptions, and for the PHA to conduct an annual reexamination prior to the expiration of the FUP assistance. HACCC Policy 740 19-11 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC will verify compliance with the education, workforce development, or employment requirement, or one of the statutory exceptions, at the end of the 36-month and 48-month time periods prior to the FUP youth’s scheduled annual reexamination. HACCC will not verify compliance at the end of the 60-month time period. HACCC will provide each FUP youth on HACCC’s program with a written notification informing them that they may receive an extension of their FUP assistance if they meet conditions outlined in this chapter and providing them with instructions on how they may demonstrate compliance at least 60 days prior to their scheduled annual reexamination date. When necessary, HACCC will provide this notification in a format accessible to FUP youth with disabilities and in a translated format for FUP youth with limited English proficiency in accordance with Chapter 2. HACCC will use the following verification methods to verify a FUP youth’s eligibility for voucher extensions: x To verify compliance with the FSS requirement, HACCC will examine its records to confirm, or obtain confirmation from HACCC’s FSS program staff, that the FUP youth participant is in compliance with FSS program requirements and has not been terminated from the FSS program. x To meet the education, workforce development, or employment requirement, HACCC will verify that the FUP youth was engaged in at least one education, workforce development, or employment activity for at least nine months of the 12-month period immediately preceding the end of 36-month or 48-month time period, as applicable. x Due to the timing of when HACCC verifies compliance and conducts the annual reexamination, the FUP youth may have not yet met the nine-month requirement but may be able to demonstrate that they will meet the nine-month requirement as of the end of the 36-month or 48-month time period. In such cases, the FUP/FYI youth will still be considered to have met the requirements. x In order for the FUP youth to meet one of the statutory exceptions described above, the youth must submit a certification to HACCC that they meet one of these exceptions. This certification is the only documentation that the FUP youth must submit in order to demonstrate that they meet one of the statutory exceptions. A FUP youth who received an extension of voucher assistance at the end of the 36-month time period based on meeting one of the conditions described in this chapter does not have to meet the same conditions when they reach the end of the 48-month time period. The FUP youth may demonstrate that they meet a different condition in order to receive an extension of their assistance. If the PHA determines that the youth meets one of the statutory conditions, the PHA would then conduct an annual reexamination. If the annual reexamination determines that the youth is still eligible for the HCV program, the PHA must provide the FUP youth the extension of voucher assistance. Termination of Assistance for Failure to Meet Conditions Failure of the FUP youth to meet one of the above conditions will only impact their ability to receive subsequent extensions of assistance. It will not serve as a basis for terminating the FUP assistance prior to the annual reexam. 741 19-12 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If the FUP youth does not meet any of the conditions described in in this chapter, the youth is subject to the statutory time limit of 36 months or the time limit of any extension that the youth has already received, and the FUP youth voucher must be terminated once the youth reaches this time limit. The calculation of the time limit begins from the date the first HAP contract is signed (for tenant-based vouchers) or from the date the youth entered into the initial lease agreement (for project-based vouchers). The number of months is calculated based on the number of months that HAP subsidy is being paid on behalf of the youth, not the number of months that the youth is in the FUP youth program. Prior to termination, the PHA must offer the FUP youth the opportunity to request an informal hearing, in accordance with Chapter 16. 19-I.F. REFERRALS AND WAITING LIST MANAGEMENT Referrals The PCWA must establish and implement a system to identify FUP-eligible families and youths within the agency’s caseload and make referrals to the PHA. The PCWA must certify that the FUP applicants they refer to the PHA meet FUP eligibility requirements. The PHA is not required to maintain full documentation that demonstrates the family’s or youth’s FUP eligibility as determined by the PCWA but should keep the referral or certification from the PCWA. HACCC Policy As part of the MOU, HACCC and EHSD have identified staff positions to serve as lead FUP liaisons. These positions will be responsible for transmission and acceptance of FUP referrals. EHSD must commit sufficient staff and resources to ensure eligible families and youths are identified and determined eligible in a timely manner. When FUP vouchers are available, HACCC’s liaison responsible for acceptance of referrals will contact the EHSD’s FUP liaison via email indicating the number of vouchers available and requesting an appropriate number of referrals. No more than 10 business days from the date EHSD receives this notification, EHSD liaison will provide HACCC with a list of eligible referrals include the name, address, and contact phone number for each adult individual who is being referred; a completed release form for each adult family member; and a written certification for each referral indicating the youth or family is FUP-eligible. HACCC will maintain a copy of the referral or certification from EHSD in the participant’s file along with other eligibility paperwork. A PHA must serve any referrals (youths or families) that meet all program eligibility requirements. If a PHA determines that it has received a sufficient number of referrals from the PCWA so that the PHA will be able to lease all FUP vouchers awarded, the PHA may request that the PCWA suspend transmission of referrals. If the PHA determines that additional referrals will be needed after it has made such a request, the PHA may request that the PCWA resume transmission of referrals [Notice PIH 2011-52]. Waiting List Placement A family that is already participating in the regular HCV program cannot be transferred to a FUP voucher. Once a referral is made, the PHA must compare the list of PCWA referrals to its HCV waiting list to determine if any applicants on the PCWA’s referral list are already on the PHA’s HCV waiting 742 19-13 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 list. Applicants already on the PHA’s HCV waiting list retain the order of their position on the list. Applicants not already on the PHA’s HCV waiting list must be placed on the HCV waiting list. If the PHA’s HCV waiting list is closed, the PHA must open its HCV waiting list in order to accept new FUP applicants. If necessary, the PHA may open its waiting list solely for FUP applicants, but this information must be included in the PHA’s notice of opening its waiting list (see section 4-II.C., Opening and Closing the Waiting List of this administrative plan). HACCC Policy Within 10 business days of receiving the referral from EHSD, HACCC will review the HCV waiting list and will send EHSD a list confirming whether or not referrals are on the waiting list. - Referrals who are already on the list will retain their position and the list will be notated to indicate the family or youth is FUP-eligible. - For those referrals not already on the waiting list, HACCC will work with EHSD to ensure they receive and successfully complete a pre-application or application, as applicable. Once the pre-application or application has been completed, HACCC will place the referral on the HCV waiting list with the date and time of the original referral and an indication that the referral is FUP-eligible with an absolute preference for immediate selection from the waiting list for issuance of the FUP or FYI voucher. Waiting List Selection The PHA selects FUP-eligible families or youths based on the PHA’s regular HCV waiting list selection policies in Chapter 4, including any preferences that may apply. 19-I.G. PHA HCV ELIGIBILITY DETERMINATION Once a FUP-eligible family or youth is selected from the HCV waiting list, the PHA must determine whether the family or youth meets HCV program eligibility requirements. Applicants must be eligible under both FUP family or youth eligibility requirements, as applicable, and HCV eligibility requirements as outlined in Chapter 3 of this policy. The PCWA may, but is not obligated to, provide information to the PHA on the family’s criminal history. HACCC Policy HACCC will run its own criminal background checks on FUP-eligible families pursuant to policies in this plan for HCV program participants. HACCC will consider the information in making its eligibility determination in accordance with the PHA’s policies in Chapter 3, Part III. Additional FUP Eligibility Factors [FUP FAQs] For FUP family vouchers, the family must remain FUP-eligible thorough lease-up. x If, after a family is referred by the PCWA but prior to issuing a family FUP voucher, the PHA discovers that the lack of adequate housing is no longer a primary factor for the family not reunifying, the FUP voucher may not be issued to the family. 743 19-14 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 x Similarly, if the FUP voucher has already been issued before the PHA discovers that the reunification will not happen, but the family has not yet leased up under the voucher, the PHA must not execute the HAP contract, as the family is no longer FUP-eligible. FUP-eligible youth must be no more than 24 years old both at the time of PCWA certification and at the time of the HAP execution. If a FUP youth is 24 at the time of PCWA certification but will turn 25 before the HAP contract is executed, the youth is no longer eligible for a FUP youth voucher. HACCC Policy Any applicant that does not meet the eligibility criteria for the HCV program listed in Chapter 3 or any eligibility criteria listed in this section will be notified by HACCC in writing following policies in Section 3-III.F., including stating the reasons the applicant was found ineligible and providing an opportunity for an informal review. 19.I.H. LEASE UP [FR Notice 1/24/22] Once the PHA determines that the family or youth meets HCV eligibility requirements, the family or youth will be issued a FUP voucher in accordance with PHA policies. During the family briefing, PHAs must inform the FUP youth of: x The extension of assistance provisions and requirements; x The availability of the FSS program and offer them an FSS slot, if available, or offer to place them on the FSS waiting list (provided the PHA has an FSS program); and x Supportive services available to them, the existence of any other programs or services, and their eligibility for such programs and services. However, participation in supportive services cannot be required as a condition of receiving FUP youth assistance. HACCC Policy Eligible applicants will be notified by HACCC in writing following policies in Section 3- III.F. of this administrative plan. FUP families will attend a standard HCV briefing in accordance with HACCC policies in Part I of Chapter 5 of this administrative plan. FUP youth will be briefed individually. HACCC will provide all aspects of the written and oral briefing as outlined in Part I of Chapter 5 but will also provide an explanation of the required items listed above, as well as discussing supportive services offered by EHSD. For both FUP youth and FUP families, vouchers will be issued in accordance with HACCC policies in Chapter 5 Part II, except that HACCC will consider one additional 30-day extension beyond the first automatic extension for any reason, not just those listed in the policy in Section 5-II.E. Once the family or youth locate a unit, the PHA conducts all other processes relating to voucher issuance and administration per HCV program regulations and the PHA’s policies (including, but not limited to: HQS NSPIRE inspections, determination of rent reasonableness, etc.). 19-I.I. TERMINATION OF ASSISTANCE General Requirements 744 19-15 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 With the exception of terminations of assistance for FUP youth after the statutorily required time period, terminations of FUP assistance are handled in the same way as the regular HCV program. Termination of a FUP voucher must be consistent with regulations for termination in 24 CFR Part 982, Subpart L and be in compliance with PHA policies (Chapter 12). If the person who qualifies for the FUP voucher passes away, the family retains the FUP voucher. In the case of a FUP-youth voucher, assistance will terminate after the statutorily required time period, even if the FUP-eligible youth is no longer included in the household. If the person who qualifies for the FUP voucher moves, the remaining family members may keep the FUP voucher based on PHA policy (see administrative plan, Section 3-I.C., Family Breakup and Remaining Member of Tenant Family). FUP Family Vouchers If parents lose their parental rights or are separated from their children after voucher lease-up (or their children reach adulthood), the family is still eligible to keep their FUP assistance, as the regulations do not permit HCV termination for a family losing parental rights or the children reaching adulthood. However, the PHA may transfer the assistance of a FUP family voucher holder to regular HCV assistance if there are no longer children in the household. HACCC Policy HACCC will transfer the assistance of a FUP family voucher holder to regular HCV assistance if there are no longer children in the household and there is no prospect of any minor child being returned to the household. If HACCC has no regular HCV vouchers available at the time this determination is made, including if no vouchers are available due to lack of funding, HACCC will issue the family the next available regular HCV voucher after those being issued to families residing in PBV units claiming Choice Mobility. FUP Youth Vouchers A PHA cannot terminate a FUP youth’s assistance for noncompliance with PCWA case management, nor may the PHA terminate assistance for a FUP youth for not accepting services from the PCWA. The PHA may not transfer the assistance of a FUP youth voucher holder to regular HCV assistance upon the expiration of the statutorily required time period. However, the PHA may issue a regular HCV to FUP youth if they were selected from the waiting list in accordance with PHA policies and may also adopt a preference for FUP youth voucher holders who are being terminated for this reason. HACCC Policy HACCC will not provide a selection preference on the PHA’s HCV waiting list for FUP youth who are terminated due to the time limit on assistance in order to preserve their housing and provide them with an absolute preference to be selected from the waiting list. Upon the expiration of the statutorily required time period, a FUP youth voucher holder who has children and who lacks adequate housing may qualify for a FUP family voucher provided they are referred by the PCWA as an eligible family and meet the eligibility requirements for the PHA’s HCV program. 745 19-16 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 9-I.J. FUP PORTABILITY Portability for a FUP family or youth is handled in the same way as for a regular HCV family. A PHA may not restrict or deny portability for a FUP family or youth for reasons other than those specified in the HCV program regulations, as reflected in Chapter 10 of the administrative plan. A FUP family or youth does not have to port to a jurisdiction that administers FUP. If the receiving PHA administers the FUP voucher on behalf of the initial PHA, the voucher is still considered a FUP voucher regardless of whether the receiving PHA has a FUP program. If the receiving PHA absorbs the voucher, the receiving PHA may absorb the incoming port into its FUP program (if it has one) or into its regular HCV program (if the receiving PHA has vouchers available to do so) and the family or youth become regular HCV participants. In either case, when the receiving PHA absorbs the voucher, a FUP voucher becomes available to the initial PHA. Considerations for FUP Youth Vouchers If the voucher is a FUP youth voucher and remains such upon lease-up in the receiving PHA’s jurisdiction, termination of assistance must still take place once the youth has received assistance for the statutorily required time period. If the receiving PHA is administering the FUP youth voucher on behalf of the initial PHA, the two PHAs must work together to initiate termination upon expiration of the statutorily required time period. 19-I.K. PROJECT-BASING FUP VOUCHERS [Notice PIH 2017-21; FR Notice 1/24/22] The PHA may project-base FUP vouchers without HUD approval in accordance with Notice PIH 2017-21, FR Notice 1/24/22, and all statutory and regulatory requirements for the PBV program. Project-based FUP vouchers are subject to the PBV program percentage limitation discussed in Section 17-I.A. The PHA may limit PBVs to one category of FUP-eligible participants (families or youth) or a combination of the two. While FUP vouchers can be used for either families or youth, a PBV unit may only be counted towards the PHA’s 10 percent exception authority under the program cap and the project’s income- mixing requirement if the FUP PBV assistance is provided on behalf of an eligible youth. The PHA must amend its administrative plan to include the limitation of these FUP PBV units to eligible youth. HACCC Policy HACCC will not project-base FUP vouchers. All FUP vouchers will be used to provide tenant-based assistance. 746 19-17 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART II: FOSTER YOUTH TO INDEPENDENCE INITIATIVE 19-II.A. PROGRAM OVERVIEW [Notice PIH 2020-28; Notice PIH 2023-04; FR Notice 1/24/22] The Foster Youth to Independence (FYI) initiative was announced in 2019. The FYI initiative allows PHAs who partner with a Public Child Welfare Agency (PCWA) to request targeted HCVs to serve eligible youth with a history of child welfare involvement that are homeless or at risk of being homeless. Rental assistance and supportive services are provided to qualified youth for a period of between 36 and 60 months. Funding is available either competitively though an FYI NOFA or noncompetitively on a rolling basis in accordance with the application requirements outlined in Notice PIH 2020-28, Notice PIH 2021-26 or or Notice PIH 2023-04, as applicable. Under the noncompetitive process, PHAs are limited to 25 vouchers in a fiscal year with the ability to request additional vouchers. for those PHAs with Where the PHA has a combined FYI and/or FUP size of no more than 10 vouchers, the PHA may request FYI vouchers with at least 50 percent utilization of its FUP and/or FYI vouchers. Where the PHA has a combined FYI and/or FUP size of 11 or more vouchers, the PHA may request FYI vouchers with 90 percent or greater utilization or utilization of its FUP and/or FYI vouchers, as applicable. If 90 percent utilization is achieved, the PHA can request up to an additional 25 FYI vouchers in the same fiscal year. However, no more than 50 FYI vouchers may be awarded to a PHA in any fiscal year. For competitive awards, the number of vouchers is dependent on PHA program size and need. 19-II.B. PARTNERING AGENCIES [Notice PIH 2023-04; FYI Updates and Partnering Opportunities Webinar] Public Child Welfare Agency (PCWA) The PHA must enter into a partnership agreement with a PCWA in the PHA’s jurisdiction in the form of a Memorandum of Understanding (MOU) or letter of intent. The PCWA is responsible for identifying and referring eligible youth to the PHA and providing or securing a commitment for the provision of supportive services once youth are admitted to the program. HACCC Policy When approved, HACCC will implementhas implemented a Foster Youth to Independence (FYI) program in partnership with the Contra Costa County Employment and Housing Services Department (EHSD). The Contra Costa County Department of Health, Housing and Homeless Services will provide support to EHSD in the way of referrals of eligible youth as well as navigation assistance where needed. The PCWA is responsible for: x Identifying FYI-eligible youth; x Developing a system of prioritization based on the level of need of the youth and the appropriateness of intervention; x Providing a written certification to the PHA that the youth is eligible; and x Providing or securing supportive services for 36 months. 747 19-18 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Continuum of Care (CoC) and Other Partners HUD strongly encourages PHAs to add other partners into the partnership agreement with the PCWA such as state, local, philanthropic, faith-based organizations, and the CoC, or a CoC recipient it designates. HACCC Policy HACCC has not partnered with any other agencies or organizations for FYI-eligible youth to date but anticipatesexcept with the collaboration of the Contra Costa County Department of Health, Housing and Homeless Services and HOPE Solutions to supplement the EHSD responsibilities associated with the FYI funding. 19-II.C. YOUTH ELIGIBILITY CRITERIA [Notice PIH 2023-04; FYI Q&As; FYI FAQs] The PCWA is responsible for certifying that the youth has prior qualifying foster care involvement. As determined by the PCWA, eligible youth: x Are at least 18 years of age and not more than 24 years of age (have not yet reached their 25th birthday); - Youth must be no more than 24 years of age at the time the PCWA certifies them as eligible and at the time of HAP contract execution. x Have left foster care or will leave foster care within 90 days, in accordance with a transition plan described in section 475(5)(H) of the Social Security Act; - Placements can include, but are not limited to, placements in foster family homes, foster homes of relatives, group homes, emergency shelters, residential facilities, childcare institutions, and pre-adoptive homes in accordance with 24 CFR 5.576; x Are homeless or at risk of becoming homeless at age 16 and older; - At risk of being homeless is fully defined at 24 CFR 576.2. o This includes a person that is exiting a publicly funded institution, or system of care (such as a healthcare facility, a mental health facility, foster care or other youth facility, or correction program or institution). Therefore, youth being discharged from an institution may be eligible for an FYI voucher [FYI FAQs]. Eligibility is not limited to single persons. For example, pregnant and/or parenting youth are eligible to receive assistance assuming they otherwise meet eligibility requirements. 19-II.D. SUPPORTIVE SERVICES [Notice PIH 2023-04; FYI Updates and Partnering Opportunities Webinar; FYI Q&As] Supportive services may be provided by the PHA, PCWA or a third party. The PCWA must provide or secure a commitment to provide supportive services for participating youth for the period of time defined in the NOFA/O for which the funding was made available. At a minimum, the following supportive services must be offered: x Basic life skills information/counseling on money management, use of credit, housekeeping, proper nutrition/meal preparation, and access to health care (e.g., doctors, medication, and mental and behavioral health services); 748 19-19 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 x Counseling on compliance with rental lease requirements and with HCV program participant requirements, including assistance/referrals for assistance on security deposits, utility hook-up fees, and utility deposits; x Providing such assurances to owners of rental property as are reasonable and necessary to assist eligible youth to rent a unit with a voucher; x Job preparation and attainment counseling (where to look/how to apply, dress, grooming, relationships with supervisory personnel, etc.); and x Educational and career advancement counseling regarding attainment of general equivalency diploma (GED) or attendance/financing of education at a technical school, trade school, or college, including successful work ethic and attitude models. HACCC Policy Additional supportive services will not be offered by HACCC. Since participation in supportive services is optional, but strongly encouraged, an FYI participant may decline supportive services. 19-II.E. REFERRALS AND WAITING LIST MANAGEMENT [Notice PIH 2023-04; FYI Updates and Partnering Opportunities Webinar FYI FAQs] Referrals The PCWA is responsible for certifying that the youth has prior qualifying foster care involvement. Once the PCWA sends the PHA the referral certifying the youth is program-eligible, the PHA determines HCV eligibility. The PCWA must have a system for identifying eligible youth within the agency’s caseload and reviewing referrals from other partners, as applicable. The PCWA must also have a system for prioritization of referrals to ensure that youth are prioritized for an FYI voucher based upon their level of need and appropriateness of the intervention. Referrals may come from other organizations in the community who work with the population, but the PCWA must certify that the youth meets eligibility requirements, unless the PCWA has vested another organization with this authority. The PHA is not required to maintain full documentation that demonstrates the youth’s eligibility as determined by the PCWA but should keep the referral or certification from the PCWA. The PCWA is not required to provide the PHA with HCV eligibility documents. HACCC Policy HACCC and EHSD have identified staff positions to serve as lead FYI liaisons. These positions will be responsible for transmission and acceptance of referrals. EHSD must commit sufficient staff and resources to ensure eligible youths are identified, prioritized, and determined eligible in a timely manner. When vouchers are available, the HACCC liaison responsible for acceptance of referrals will contact the EHSD liaison via email indicating the number of vouchers available and requesting an appropriate number of referrals. No more than 10 business days from the date EHSD receives this notification, the EHSD liaison must provide HACCC with a list of 749 19-20 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 eligible referrals, a completed release form, and a written certification for each referral indicating the referral is eligible. The list will include the name, address, and contact phone number for each adult individual who is being referred. HACCC will maintain a copy of each certification from EHSD in the participant’s file along with other eligibility paperwork. Waiting List Placement [Notice PIH 2023-04 and FYI FAQs] The PHA must use the HCV waiting list for the FYI program. Youth already on the HCV program may not be transferred to an FYI voucher since they are not homeless or at-risk of homelessness. Once a referral is made, the PHA must compare the list of PCWA referrals to its HCV waiting list to determine if any applicants on the PCWA’s referral list are already on the PHA’s HCV waiting list. Applicants already on the PHA’s HCV waiting list retain the order of their position on the list. Applicants not already on the PHA’s HCV waiting list must be placed on the HCV waiting list. If the PHA’s HCV waiting list is closed, the PHA must open its HCV waiting list in order to accept new referrals. The PHA may reopen the waiting list to accept an FYI eligible youth without opening the waiting list for other applicants; however, the requirements at 24 CFR 982.206 for giving public notice when opening and closing the waiting list apply (see section 4-II.C., Opening and Closing the Waiting List of this administrative plan). HACCC Policy Within 10 business days of receiving the referral from EHSD, HACCC will review the HCV waiting list and will send EHSD a list confirming whether or not referrals are on the waiting list. - Referrals who are already on the list will retain their position and the list will be notated to indicate the applicant is FYI-eligible. - For those referrals not already on the waiting list, HACCC will work with EHSD to ensure they receive and successfully complete a pre-application or application, as applicable. Once the pre-application or application has been completed, HACCC will place the referral on the HCV waiting list with the date and time of the original referral and an indication that the referral is FYI-eligible. - A preference for FYI Youth will be applied to ensure that the applicant is immediately placed at the top of the waiting list for selection to the available FYI voucher. Waiting List Selection The PHA selects eligible youths based on the PHA’s regular HCV waiting list selection policies in Chapter 4, including any preferences that may apply. 19-II.F. PHA HCV ELIGIBILITY DETERMINATION [FYI FAQs] Once an eligible youth is selected from the HCV waiting list, the PHA must determine whether the youth meets HCV program eligibility requirements. Applicants must be eligible under both FYI eligibility requirements and HCV eligibility requirements as outlined in Chapter 3 of this policy. The PCWA may, but is not obligated to, provide information to the PHA on the youth’s criminal history. HACCC Policy 750 19-21 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC will run its own criminal background checks on FYI-eligible families pursuant to policies in this plan for HCV program participants. HACCC will consider the information in making its eligibility determination in accordance with HACCC’s policies in Chapter 3, Part III. Additional Eligibility Factors Youth must be no more than 24 years old both at the time of PCWA certification and at the time of the HAP execution. If a youth is 24 at the time of PCWA certification but will turn 25 before the HAP contract is executed, the youth is no longer eligible for a FYI voucher. HACCC Policy Any applicant that does not meet the eligibility criteria for the HCV program listed in Chapter 3 or any eligibility criteria listed in this section will be notified by HACCC in writing following policies in Section 3-III.F, including stating the reasons the applicant was found ineligible and providing an opportunity for an informal review. 19-II.G. LEASE UP [FR Notice 1/24/22] Once the PHA determines that the family or youth meets HCV eligibility requirements, the youth will be issued an FYI voucher in accordance with PHA policies. During the family briefing, PHAs must inform the FYI voucher holder of: x The extension of assistance provisions and requirements; x The availability of the FSS program and offer them an FSS slot, if available, or offer to place them on the FSS waiting list (provided the PHA has an FSS program); and x The supportive services available to them, the existence of any other programs or services, and their eligibility for such programs and services. However, participation in supportive services cannot be required as a condition of receiving FYI assistance. HACCC Policy Eligible applicants will be notified by HACCC in writing following policies in Section 3- III.F. of this policy. FYI youth will be briefed individually. HACCC will provide all aspects of the written and oral briefing as outlined in Part I of Chapter 5. Vouchers will be issued in accordance with HACCC policies in Chapter 5, Part II, except that HACCC will consider one additional 30-day extension beyond the first automatic extension for any reason, not just those listed in the policy in Section 5-II.E. Once the youth locates a unit, the PHA conducts all other processes relating to voucher issuance and administration per HCV program regulations and the PHA policy in Chapter 9. Should a youth fail to use the voucher, the PHA may issue the voucher to another eligible youth if one has been identified [Notice PIH 2023-04]. Turnover [FYI FAQsNotice PIH 2023-04] 751 19-22 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Awards of FYI Tenant Protection Vouchers (TPVs) continue to be administered under the requirements of Notice PIH 2019-20. This includes turnover requirements and the requirement to inform HUD should a youth not use a voucher or leave the program. For example, FYI TPVs awarded under Notice PIH 2019-20 “sunset” when a youth leaves the program. This means that the PHA cannot reissue FYI TPV assistance issued under that notice to another youth when an initial youth exits the HCV program. HUD does not have the authority to allow the voucher to be used for a youth other than the one identified in the request.For PHAs awarded FYI Tenant Protection Vouchers (TPVs) under Notice PIH 2019-20 where the recipient of the FYI TPV leaves the program, the PHA may request an FYI voucher under the requirements of Notice PIH 2023-04. HACCC Policy Changes to FYI regulations will be adopted as permitted to encourage the maximum utilization of turnover vouchers. Where permitted, HACCC shall re-issue the FYI voucher to the next available youth referred by the PCWA. For PHAs awarded FYI vouchers under Notices PIH 2020-28 and PIH 2023-04, where the recipient of the FYI voucher leaves the program, the PHA must continue to use the FYI voucher for eligible youth upon turnover. Where there are more eligible youth than available FYI turnover vouchers, the PHA may request an FYI voucher under the requirements of Notice PIH 2023-04. If another eligible youth is not available, the PHA must notify HUD, and HUD will reduce the PHA’s HCV assistance to account for the removal of the FYI assistance from the PHA’s HCV baseline. 752 19-23 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 19-II.H. MAXIM]UM ASSISTANCE PERIOD [Notice PIH 2023-04 and FYI FAQs; FR Notice 1/24/22] Vouchers are limited by statute to a total of between 36 months and 60 months of housing assistance. At the end of the statutory time period, assistance must be terminated. However, any period of time for which no subsidy (HAP) is being paid on behalf of the youth does not count toward the limitation. It is not permissible to reissue another FYI TPV to the same youth upon expiration of their FYI assistance. Participants do not “age out” of the program. A participant may continue with the program until they have received the period of assistance for which they are eligible. Age limits are only applied for entry into the program. Extension of Assistance FYI voucher holders who first leased or lease a unit after December 27, 2020, may be eligible for an extension of assistance up to 24 months beyond the 36-month time limit (for a total of 60 months of assistance). While FYI voucher holders cannot be required to participate in the Family Self-Sufficiency (FSS) program as a condition of receipt of assistance, an eligible youth who participates in the FSS program and is in compliance with the applicable terms and conditions of the program is entitled to receive assistance for up to an additional 24 months. A FYI voucher holders must accept an FSS slot if it is offered to them prior to the 36-month mark in order to receive an extension of assistance (unless the youth meets one of the statutory exceptions described below). Statutory Exceptions FYI voucher holders will be entitled to receive an extension of assistance for up to 24 months beyond the 36-month time limit without participating in the PHA’s FSS program if they certify that they meet one of the exceptions below: x The FYI voucher holder is a parent or other household member responsible for the care of a dependent child under the age of six or for the care of an incapacitated person. HACCC Policy HACCC defines incapacitated person as a person who is totally without understanding, or is of unsound mind, or suffers from one or more mental deficits so substantial that, under the circumstances, the person should be deemed to lack the legal capacity to perform a specific act. HACCC will apply this exception in a manner that provides extensions of FYI assistance to the broadest population possible consistent with the statutory requirements. The FYI voucher holder will be required to self-certify that they meet this exception on an HACCC-provided form. This certification is the only documentation that the FYI voucher holder must submit. The child or incapacitated person is not required to reside in the household in order for the FYI voucher holder to certify they meet this exception. For example, a child in a joint custody arrangement under the age of six who resides in the household only part time may qualify the FYI voucher holder for this exception. x The FYI voucher holder is a person who is regularly and actively participating in a drug addiction or alcohol treatment and rehabilitation program. 753 19-24 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy HACCC will define regular and active participation in a manner that provides extensions of FYI voucher holder assistance to the broadest population possible consistent with the statutory requirements. The FYI voucher holder will be required to self-certify that they meet this exception on an HACCC-provided form. This certification is the only documentation that the FYI voucher holder must submit. x The FYI voucher holder is a person who is incapable of complying with the requirement to participate in a FSS program as described above or engage in education, workforce development, or employment activities as described below, as applicable, due to a documented medical condition. HACCC Policy HACCC will apply this requirement in a manner that provides extensions of FYI voucher holder assistance to the broadest population possible consistent with statutory requirements. The FYI voucher holder will be required to self-certify that they meet this exception on an HACCC-provided form. This certification is the only documentation that the FYI voucher holder must submit. An FYI voucher holder that meets one of the above exceptions must still be offered an opportunity to enroll in the PHA’s FSS program (if it is available to them) and receive any supportive services available to FYI voucher holders. An FYI voucher holder may choose to participate in an FSS program or engage in education, workforce development, or employment activities, even if they meet one of the above statutory exceptions. Education, Workforce Development, or Employment Activities If a PHA that carries out an FSS program is unable to offer a FYI voucher holder an FSS slot during their first 36 months of receiving FYI assistance, the FYI voucher holder is considered to have been “unable to enroll” in the program and may have their voucher extended by meeting the education, workforce development, or employment criteria described below: x The FYI voucher holder was engaged in obtaining a recognized postsecondary credential or a secondary school diploma or its recognized equivalent. HACCC Policy HACCC will use the definitions of recognized postsecondary credential and secondary school diploma or its recognized equivalent under the Workforce Innovation and Opportunity Act (WIOA). WIOA defines a recognized postsecondary credential as a credential consisting of an industry-recognized certificate or certification, a certificate of completion of an apprenticeship, a license recognized by the state involved or federal government, or an associate or baccalaureate degree (29 U.S.C. 3102). Examples of a recognized postsecondary credential include, but are not limited to, an associate’s degree, bachelor’s degree, occupational licensure, or occupational certification (see U.S. Department of Labor, Training and Employment Guidance Letter No. 10–16, Change 1). For the purpose of WIOA, the U.S. Department of Labor defines a secondary school diploma or its recognized equivalent as a secondary school diploma (or alternate diploma) that is 754 19-25 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 recognized by a state and that is included for accountability purposes under the Elementary and Secondary Education Act of 1965 (ESEA), as amended by the Every Student Succeeds Act (ESSA). A secondary school equivalency certification signifies that a student has completed the requirement for a high school education. Examples of a secondary school diploma or its recognized equivalent include, but are not limited to, obtaining certification of attaining passing scores on a state-recognized high school equivalency test, earning a secondary school diploma or state-recognized equivalent, or obtaining certification of passing a state-recognized competency-based assessment. x The FYI voucher holder was enrolled in an institution of higher education, as such term is defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)) or an institution that meets the definition of a proprietary institution of higher education or a postsecondary vocational institution under sections 102(b)(1) and (c)(1) of the Higher Education Act of 1965 (20 U.S.C. 1002(b)(1) and (c)(1)), respectively. HACCC Policy The FYI voucher holder must be enrolled in education activities on at least a half-time basis, as defined by the institution which they attend. However, HACCC may make exceptions to this requirement if the FYI voucher holder is unable to enroll in a sufficient number of classes due to a lack of course offerings by the educational institution where they are enrolled. x The FYI voucher holder was participating in a career pathway, as such term is defined in Section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102). x The FYI voucher holder was employed. HACCC Policy HACCC will consider the FYI voucher holder to be employed if they work a minimum of 20 hours per week. HACCC may make exceptions to this requirement if the FYI voucher holder’s hours are reduced due to circumstances beyond their control or the FYI voucher holder must temporarily reduce their work hours due to a verified family emergency. FSS Enrollment at 24 Months If the FYI voucher holder has not been provided an opportunity to enroll in the FSS program during the first 24 months of FYI assistance, HUD encourages the PHA to remind the FYI voucher holder at the 24-month reexamination of the education, workforce development, and employment requirements described above so that they have enough time to meet these requirements prior to the expiration of the 36-month time period for FYI assistance. HACCC Policy If the FYI voucher holder has not been provided an opportunity to enroll in the FSS program during the first 24 months of FYI assistance, HACCC will make every effort to remind the FYI voucher holder at their second regular reexamination of the education, workforce development, and employment requirements described above. FSS Enrollment Between 36 and 48 Months If an FSS slot becomes available between the 36-month and 48-month mark: 755 19-26 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 x The PHA must offer the slot to an FYI voucher holder who had their voucher extended based on meeting the education, workforce development, or employment requirement listed above, or one of the statutory exceptions listed above (even if the FYI voucher holder previously declined an FSS slot because they met one of the statutory exceptions). x The PHA must work with the FYI voucher holder to determine whether enrollment in FSS is feasible and in their best interest given any education, workforce development, or employment activities that the FYI voucher holder is engaged in and any statutory exceptions that apply to the FYI voucher holder, as well as the remaining time on their voucher. x If the FYI voucher holder accepts the FSS slot, the PHA must work with them to establish Contract of Participation goals and an Individual Training and Services Plan (ITSP) that can be accomplished within the time period left on the voucher. If the FYI voucher holder is offered an FSS slot prior to the 36-month mark, the FYI voucher holder: x Will be required to enroll in the FSS program in order to receive an extension of assistance at the end of the 36-month time period (unless they meet one of the statutory exceptions described above). x Will not be considered to have been “unable to enroll” in the FSS program, and as a result, will not be eligible to receive an extension of assistance based on meeting the education, workforce development, or employment requirements described above. FSS Enrollment After 48 Months The PHA may, but is not required, to offer an FYI voucher holder an FSS slot that becomes available between the 48-month mark and the 60-month mark, since the FYI voucher holder will have already received their second and final extension. HACCC Policy If an FSS slot becomes available between the 48 and 60-month marks, HACCC will not offer the FSS slot to an FYI voucher holder. Extensions of Assistance At the 36-month and 48-month reexamination, the PHA must extend FYI assistance if the FYI voucher holder is participating in and in compliance with the FSS program as long as the FYI voucher holder is still eligible for the HCV program. In any case, the FYI voucher holder cannot receive more than a total of 60 months of FYI assistance even if the FSS Contract of Participation time period extends beyond the voucher 60- month mark. No FSS Program or Unable to Enroll in FSS If a PHA does not carry out an FSS program or the FYI voucher holder has been unable to enroll in the program during the first 36 months of receiving FYI assistance, the FYI voucher holder is entitled to receive an extension of assistance for up to two successive 12-month periods beyond the 36-month time limit provided that the FYI voucher holder engaged in at least one of the education, workforce development, or employment activities described above for not less than nine months of the 12-month period preceding each extension. In order to meet the nine months out of the preceding 12 months requirement, the FYI voucher holder may have engaged in one of the education, 756 19-27 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 workforce development, or employment activities described above or a combination of these activities. Verification Prior to Annual Reexam In order to provide an extension of assistance, the PHA must verify compliance with the above requirements at the end of the 36-month time period and the 48-month time periods. The PHA does not need to verify compliance with these requirements at the end of the 60-month time period since the maximum length of assistance is 60 months. To verify compliance with the education, workforce development, or employment requirement or one of the statutory exceptions, the PHA must provide the FYI voucher holder written notification informing them that they may receive an extension of their FYI assistance and providing instructions on how the FYI voucher holder may demonstrate that they meet one of these conditions. This notification must be provided sufficiently in advance of the end of the 36-month or 48-month time periods, as applicable, to allow the FYI voucher holder to demonstrate that they meet the education, workforce development, or employment requirement, or one of the statutory exceptions, and for the PHA to conduct an annual reexamination prior to the expiration of the FYI assistance. HACCC Policy HACCC will verify compliance with the education, workforce development, or employment requirement, or one of the statutory exceptions, at the end of the 36-month and 48-month time periods prior to the FYI voucher holder’s scheduled annual reexamination. HACCC will not verify compliance at the end of the 60-month time period. HACCC will provide each FYI voucher holder on HACCC’s program with a written notification informing them that they may receive an extension of their FYI assistance if they meet conditions outlined in this chapter and providing them with instructions on how they may demonstrate compliance at least 60 days prior to their scheduled annual reexamination date. When necessary, HACCC will provide this notification in a format accessible to FYI voucher holders with disabilities and in a translated format for FYI voucher holders with limited English proficiency in accordance with Chapter 2. HACCC will use the following verification methods to verify an FYI voucher holder’s eligibility for voucher extensions: x To verify compliance with the FSS requirement, HACCC will examine its records to confirm, or obtain confirmation from the HACCC’s FSS program staff, that the FYI participant is in compliance with FSS program requirements and has not been terminated from the FSS program. x To meet the education, workforce development, or employment requirement, HACCC will verify that the FYI voucher holder was engaged in at least one education, workforce development, or employment activity for at least nine months of the 12-month period immediately preceding the end of the 36-month or 48-month time period, as applicable. - Due to the timing of when HACCC verifies compliance and conducts the annual reexamination, the FYI voucher holder may have not yet met the nine-month requirement but may be able to demonstrate that they will meet the nine-month requirement as of the end of the 36-month or 48-month time period. In such cases, the FYI voucher holder will still be considered to have met the requirements. 757 19-28 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 In order for the FYI voucher holder to meet one of the statutory exceptions described above, the FYI voucher holder must submit a certification to HACCC that they meet one of these exceptions. This certification is the only documentation that the FYI voucher holder must submit in order to demonstrate that they meet one of the statutory exceptions. An FYI voucher holder who received an extension of voucher assistance at the end of the 36-month time period based on meeting one of the conditions described in this chapter does not have to meet the same conditions when they reach the end of the 48-month time period. The FYI voucher holder may demonstrate that they meet a different condition in order to receive an extension of their assistance. If the PHA determines that the FYI voucher holder meets one of the statutory conditions, the PHA would then conduct an annual reexamination. If the annual reexamination determines that the FYI voucher holder is still eligible for the HCV program, the PHA must provide the FYI voucher holder the extension of voucher assistance. Termination of Assistance for Failure to Meet Conditions Failure of the FYI voucher holder to meet one of the above conditions will only impact their ability to receive subsequent extensions of assistance. It will not serve as a basis for terminating the FYI assistance prior to the annual reexam. If the FYI voucher holder does not meet any of the statutory conditions described in in this chapter, the youth is subject to the statutory time limit of 36 months or the time limit of any extension that the youth has already received, and the FYI voucher must be terminated once they reach this time limit. The calculation of the time limit begins from the date the first HAP contract is signed (for tenant-based vouchers) or from the date the FYI voucher holder entered into the initial lease agreement (for project-based vouchers). The number of months is calculated based on the number of months that HAP subsidy is being paid on behalf of the FYI voucher holder, not the number of months that they are in the FYI program. Prior to termination, the PHA must offer the FYI voucher holder the opportunity to request an informal hearing, in accordance with Chapter 16. 19-II.I. TERMINATION OF ASSISTANCE [FYI FAQs] Termination of a FYI voucher is handled in the same way as with any HCV; therefore, termination of a FYI voucher must be consistent with HCV regulations at 24 CFR Part 982, Subpart L and PHA policies in Chapter 12. Given the statutory time limit that requires FYI vouchers to sunset, a PHA must terminate the youth’s assistance once the limit on assistance has expired. A PHA cannot terminate a FYI youth’s assistance for noncompliance with PCWA case management, nor may the PHA terminate assistance for a FYI youth for not accepting services from the PCWA. The PHA may not transfer the assistance of FYI voucher holders to regular HCV assistance upon the expiration of the limit on assistance. However, the PHA may issue a regular HCV to FYI voucher holders if they were selected from the waiting list in accordance with PHA policies. The PHA may also adopt a waiting list preference for FYI voucher holders who are being terminated for this reason. HACCC Policy 758 19-29 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC will not provide a selection preference on the PHA’s HCV waiting list for FYI voucher holders who are terminated due to the time limit on assistance in order to expedite the issuance of an HCV voucher, subject to availability, and ensure the continuation of rental assistance so that the FYI participant is not displaced. 19-II.J. PORTABILITY [FYI FAQs] Portability for an FYI youth is handled in the same way as for a regular HCV family. A PHA may not restrict or deny portability for an FYI youth for reasons other than those specified in the HCV program regulations, as reflected in Chapter 10 of the administrative plan. An FYI youth does not have to port to a jurisdiction that administers FYI vouchers. If the receiving PHA absorbs the voucher, the PHA may absorb the youth into its regular HCV program if it has vouchers available to do so. If the receiving PHA absorbs the youth into its regular HCV program, that youth becomes a regular HCV participant with none of the limitations of an FYI voucher. The initial and receiving PHA must work together to initiate termination of assistance upon expiration of the time limit on assistance. 19-II.K. PROJECT-BASING FYI VOUCHERS [FYI FAQs; FR Notice 1/24/22; Notice PIH 2024-03] The PHAs that have initiated the selection process to project-base FYI and/or FUP vouchers may project-base certain FYI vouchersbe eligible to project-base FYI and FUP units formally identified for project basing without HUD approval in accordance with all applicable PBV regulations and PHA policies in Chapter 17. This includes FYI vouchers awarded under Notices PIH 2020-28, and PIH 2021-26, and PIH 2023-04. Assistance awarded under Notice PIH 2019-20 is prohibited from being project-based. The PHA may project-base certain FYI vouchers without HUD approval in accordance with all applicable PBV regulations and PHA policies in Chapter 17. This includes FYI vouchers awarded under Notices PIH 2020-28 and PIH 2023-04. Assistance awarded under Notice PIH 2019-20 is prohibited from being project-based. HACCC Policy HACCC will not project-base FYI vouchers. All FYI vouchers will be used to provide tenant-based assistance. 759 19-30 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART III: VETERANS AFFAIRS SUPPORTIVE HOUSING (VASH) PROGRAM 19-III.A. OVERVIEW Since 2008, HCV program funding has provided rental assistance under a supportive housing program for homeless veterans. The Veterans Affairs Supportive Housing (VASH) program combines HCV rental assistance with case management and clinical services provided by the Department of Veterans Affairs (VA) at VA medical centers (VAMCs) and Community-Based Outpatient Clinics (CBOCs), or through a designated service provider (DSP) as approved by the VA Secretary. Eligible families are homeless veterans and their families that agree to participate in VA case management and are referred to the VAMC’s partner PHA for HCV assistance. The VAMC or DSP’s responsibilities include: x Screening homeless veterans to determine whether they meet VASH program participation criteria; x Referring homeless veterans to the PHA; - The term homeless veteran means a veteran who is homeless (as that term is defined in subsection (a) or (b) of Section 103 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302)). See 38 U.S.C. 2002. x Providing appropriate treatment and supportive services to potential VASH participants, if needed, prior to PHA issuance of a voucher; x Providing housing search assistance to VASH participants; x Identifying the social service and medical needs of VASH participants, and providing or ensuring the provision of regular ongoing case management, outpatient health services, hospitalization, and other supportive services as needed throughout the veterans’ participation period; and x Maintaining records and providing information for evaluation purposes, as required by HUD and the VA. VASH vouchers are awarded noncompetitively based on geographic need and PHA administrative performance. Eligible PHAs must be located within the jurisdiction of a VAMC and in an area of high need based on data compiled by HUD and the VA. When Congress funds a new allocation of VASH vouchers, HUD invites eligible PHAs to apply for a specified number of vouchers. Generally, the HUD-VASH program is administered in accordance with regular HCV program requirements. However, HUD is authorized to waive or specify alternative requirements to allow PHAs to effectively deliver and administer VASH assistance. Alternative requirements are established in the HUD-VASH Operating Requirements, which were originally published in the Federal Register on May 6, 2008, and updated September 27, 2021. Unless expressly waived by HUD, all regulatory requirements and HUD directives regarding the HCV program are applicable to VASH vouchers, including the use of all HUD-required contracts and other forms, and all civil rights and fair housing requirements. In addition, the PHA may request additional statutory or regulatory waivers that it determines are necessary for the effective delivery and administration of the program. 760 19-31 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The VASH program is administered in accordance with applicable Fair Housing requirements since civil rights requirements cannot be waived under the program. These include applicable authorities under 24 CFR 5.105(a) and 24 CFR 982.53 including, but not limited to, the Fair Housing Act, Section 504 of the Rehabilitation Act of 1973, Title VI of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Age Discrimination Act and all PHA policies as outlined in Chapter 2 of this document. When HUD-VASH recipients include veterans with disabilities or family members with disabilities, reasonable accommodation requirements in Part II of Chapter 2 of this policy apply. 19-III.B. REFERRALS [FR Notice 9/27/21 and HUD-VASH Qs and As] VAMC case managers will screen all families in accordance with VA screening criteria and refer eligible families to the PHA for determination of program eligibility and voucher issuance. The PHA has no role in determining or verifying the veteran’s eligibility under VA screening criteria, including determining the veteran’s homelessness status. The PHA must accept referrals from the partnering VAMC and must maintain written documentation of referrals in VASH tenant files. Upon turnover, VASH vouchers must be issued to eligible veteran families as identified by the VAMC. HACCC Policy In order to expedite the screening process, HACCC will provide all forms and a list of documents required for the VASH application to the VAMC. VAMC Case managers will work with veterans to fill out the forms and compile all documents prior to meeting with HACCC and submitting an application. The VAMC case manager shall email copies of all documents to HACCC. HACCC will perform an eligibility screening within five (5) business days of receiving both a complete referral packet from the VAMC and the results of the criminal background check indicating that no member of the household is subject to a Tier 3: Lifetime ban due to sex offender status. 19-III.C. HCV PROGRAM ELIGIBILITY [FR Notice 9/27/21] Eligible participants are homeless veterans and their families who agree to participate in case management from the VAMC. x A VASH Veteran or veteran family refers to either a single veteran or a veteran with a household composed of two or more related persons. It also includes one or more eligible persons living with the veteran who are determined to be important to the veteran’s care or well-being. x A veteran for the purpose of VASH is a person whose length of service meets statutory requirements, and who served in the active military, naval, or air service, was discharged or released under conditions other than dishonorable, and is eligible for VA health care. Under VASH, PHAs do not have authority to determine family eligibility in accordance with HCV program rules and PHA policies. The only reasons for denial of assistance by the PHA are failure to meet the income eligibility requirements and/or that a family member is subject to a Tier 3: Lifetime registration requirement under a state sex offender registration program. Under portability, the receiving PHA must also comply with these VASH screening requirements. Social Security Numbers 761 19-32 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 When verifying Social Security numbers (SSNs) for homeless veterans and their family members, an original document issued by a federal or state government agency, which contains the name and SSN of the individual along with other identifying information of the individual, is acceptable in accordance with Section 7-II.B. of this policy. In the case of the homeless veteran, the PHA must accept the Certificate of Release or Discharge from Active Duty (DD-214) or the VA-verified Application for Health Benefits (10-10EZ) as verification of SSN and cannot require the veteran to provide a Social Security card. A VA-issued identification card may also be used to verify the SSN of a homeless veteran. Proof of Age The DD-214 or 10-10EZ must be accepted as proof of age in lieu of birth certificates or other PHA- required documentation as outlined in Section 7-II.C. of this policy. A VA-issued identification card may also be used to verify the age of a homeless veteran. Photo Identification A VA-issued identification card must be accepted in lieu of another type of government-issued photo identification. These cards also serve as verification of SSNs and date of birth. Income Eligibility The PHA must determine income eligibility for VASH families in accordance with 24 CFR 982.201 and policies in Section 3-II.A. If the family is over-income based on the most recently published income limits for the family size, the family will be ineligible for HCV assistance. While income-targeting does not apply to VASH vouchers, the PHA may include the admission of extremely low-income VASH families in its income targeting numbers for the fiscal year in which these families are admitted. HACCC Policy HACCC will include any extremely low-income VASH families that are admitted in its income targeting numbers for the fiscal year in which these families are admitted. Income targeting requirements of section 16(b) of the USHA of 1937, as well as 24 CFR 982.201(b)(2), do not apply for HUD–VASH families so that HACCC can effectively serve the eligible population specified in the Appropriations Acts; that is, homeless veterans, who may be at a variety of income levels, including low-income. The HACCC will not apply income targeting requirements separate from the HUD-VASH Screening completed by the VAMC. The Screening assigns a Vulnerability score which ranks applicants based on several factors including income level, disability, chronic homelessness, family composition and other risk factors. Screening The PHA may not screen any potentially eligible family members or deny assistance for any grounds permitted under 24 CFR 982.552 and 982.553 with one exception: the PHAs is still required to prohibit admission if any member of the household is subject to a Tier 3 Lifetime registration requirement under a state sex offender registration program. Accordingly, with the exception of denial for registration as a Tier 3: Lifetime sex offender under state law and PHA policies on how sex offender screenings will be conducted, PHA policy in Sections 3-III.B. through 3-III.E. do not 762 19-33 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 apply to VASH. The prohibition against screening families for anything other than Tier 3: Lifetime sex offender status applies to all family members, not just the veteran. If a family member is subject to Tier 3: Lifetime registration under a state sex offender registration program, the remaining family members may be served if the family agrees to remove the sex offender from its family composition. This is true unless the family member subject to Tier 3 Lifetime registration under a state sex offender registration program is the homeless veteran, in which case the family would be denied admission to the program [New HCV GB, HUD-VASH, p. 6]. Denial of Assistance [Notice PIH 2008-37] Once a veteran is referred by the VAMC, the PHA must either issue a voucher or deny assistance. If the PHA denies assistance, it must provide the family with prompt notice of the decision and a brief statement of the reason for denial in accordance with Section 3-III.F. Like in the standard HCV program, the family must be provided with the opportunity for an informal review in accordance with policies in Section 3-III.F. In addition, a copy of the denial notice must be sent to the VAMC case manager. 19-III.D. CHANGES IN FAMILY COMPOSITION Adding Family Members [FR Notice 9/27/21] When adding a family member after the family has been admitted to the program, PHA policies in Section 3-II.B. apply. Other than the birth, adoption, or court-awarded custody of a child, the PHA must approve/authorize additional family members and will apply its regular screening criteria in doing so. Remaining Family Members [HUD-VASH Qs and As] If the homeless veteran dies while the family is being assisted, the voucher would remain with the remaining members of the tenant family. The PHA may use one of its own regular vouchers, if available, to continue assisting this family and free up a VASH voucher for another VASH-eligible family. If a regular voucher is not available, the family would continue utilizing the VASH voucher. Once the VASH voucher turns over, however, it must go to a homeless veteran family. Family Break Up [HUD-VASH Qs and As] In the case of divorce or separation, since the set-aside of VASH vouchers is for veterans, the voucher must remain with the veteran. This overrides the PHA’s policies in Section 3-I.C. on how to determine who remains in the program if a family breaks up. 19-III.E. LEASING [FR Notice 9/27/21] Waiting List The PHA does not have the authority to maintain a waiting list or apply local preferences for HUD– VASH vouchers. Policies in Chapter 4 relating to applicant selection from the waiting list, local preferences, special admissions, cross-listing, and opening and closing the waiting list do not apply to VASH vouchers. Exception Payment Standards 763 19-34 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 To assist VASH participants in finding affordable housing, especially in competitive markets, HUD allows PHAs to establish a HUD-VASH exception payment standard. PHAs may go up to but no higher than 120 percent of the published area-wide fair market rent (FMR) or small area fair market rent (SAFMR) specifically for VASH families. PHAs who want to establish a VASH exception payment standard over 120 percent must still request a waiver from HUD through the regular waiver process outlined in Notice PIH 2018-16. Voucher Issuance Unlike the standard HCV program which requires an initial voucher term of at least 60 days, VASH vouchers must have an initial search term of at least 120 days. PHA policies on extensions as outlined in Section 5-II.E. will apply. HACCC Policy All VASH vouchers will have an initial term of 120 calendar days. The family must submit a Request for Tenancy Approval and, where available, a proposed lease within the 120-day period unless HACCC grants an extension. The PHA must track issuance of HCVs for families referred by the VAMC or DSP in PIC as required in Notice PIH 2011-53. Initial Lease Term Unlike in the standard the HCV program, VASH voucher holders may enter into an initial lease that is for less than 12 months. Accordingly, PHA policy in Section 9-I.E., Term of Assisted Tenancy, does not apply. Ineligible Housing [FR Notice 6/18/14] Unlike in the standard HCV program, VASH families are permitted to live on the grounds of a VA facility in units developed to house homeless veterans. This applies to both tenant-based assistance and PBV. Therefore, 24 CFR 982.352(a)(5) and 983.53(a)(2), which prohibit units on the physical grounds of a medical, mental, or similar public or private institution, do not apply to VASH for this purpose only. Accordingly, PHA policy in 9-I.D., Ineligible Units, does not apply for this purpose only. HQS Pre-Inspections To expedite the leasing process, PHAs may pre-inspect available units that veterans may be interested in leasing in order to maintain a pool of eligible units. If a VASH family selects a unit that passed an NSPIREHQS inspection (without intervening occupancy) within 45 days of the date of the Request for Tenancy Approval (Form HUD-52517), the unit may be approved if it meets all other conditions under 24 CFR 982.305. However, the veteran must be free to select their unit and cannot be steered to these units. HACCC Policy If a VASH family selects a unit that passed an initial HQS inspection (without intervening occupancy) within 90 days of the date of the RTA, the unit may be approved provided that it meets all other conditions under 24 CFR 982.305. The veteran will be free to select their unit. 764 19-35 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC will make every effort to fast-track the inspection process and the RTA approval process. 19-III.F. PORTABILITY [FR Notice 9/27/21 and Notice PIH 2011-53] General Requirements Portability policies under VASH depend on whether the family wants to move within or outside of the initial VA facility’s catchment area (the area in which the VAMC or DSP operates). In all cases, the initial VA facility must be consulted prior to the move and provide written confirmation that case management will continue to be provided in the family’s new location. VASH participant families may only reside in jurisdictions that are accessible to case management services, as determined by case managers at the partnering VAMC or DSP. Under VASH, applicant families may move under portability even if the family did not have legal residency in the jurisdiction of the initial PHA when they applied. As a result, PHA policies in Section 10-II.B. about nonresident applicants do not apply. If the family no longer requires case management, there are no portability restrictions. Normal portability rules apply. Portability within the Initial VAMC or DSP’s Catchment Area A VASH family can move within the VAMC’s catchment area as long as case management can still be provided, as determined by the VA. If the initial PHA’s partnering VAMC will still provide the case management services, the receiving PHA must process the move in accordance with portability procedures: x If the receiving PHA has been awarded VASH vouchers, it can choose to either bill the initial PHA or absorb the family if it has a VASH voucher available to do so. - If the PHA absorbs the family, the VAMC or DSP providing the initial case management must agree to the absorption and the transfer of case management. x If the receiving PHA does not administer a VASH program, it must always bill the initial PHA. Portability Outside of the Initial VAMC or DSP’s Catchment Area If a family wants to move to another jurisdiction where it will not be possible for the initial PHA’s partnering VAMC or DSP to provide case management services, the initial VAMC or DSP must first determine that the VASH family could be served by another VAMCS or DSP that is participating in the VASH program, and the receiving PHA has an available VASH voucher. In these cases, the family must be absorbed by the receiving PHA either as a new admission or as a portability move-in, as applicable. Upon absorption, the initial PHA’s VASH voucher will be available to lease to a new VASH-eligible family, and the absorbed family will count toward the number of VASH slots awarded to the receiving PHA. Portability Outside of the Initial VAMC or DSP’s Catchment Area under VAWA Veterans who request to port beyond the catchment area of the VAMC or DSP where they are receiving case management to protect the health or safety of a person who is or has been the victim of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking, and who reasonably believes they are threatened with imminent harm from further 765 19-36 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 violence by remaining in the unit may port prior to receiving approval from the receiving VAMC or DSP. The initial PHA must follow its emergency transfer plan (see Exhibit 16-3). PHAs may require verbal self-certification or a written request from a participant seeking a move beyond the catchment area of the VAMC or DSP. The verbal self-certification or written request must include either a statement expressing why the participant reasonably believes that there is a threat of imminent harm from further violence if they were to remain in the same unit or a statement that the tenant was a sexual assault victim and that the sexual assault occurred on the premises during the 90-day period preceding the participants request for the move. The participant must still port to a PHA that has a VASH program. If the receiving PHA does not have a VASH voucher available to lease, they may bill the initial PHA until a VASH voucher is available, at which point the porting veteran must be absorbed into the receiving PHA’s program. 19-III.G. TERMINATION OF ASSISTANCE [FR Notice 9/27/21] With the exception of terminations for failure to receive case management, HUD has not established any alternative requirements for termination of assistance for VASH participants. However, prior to terminating VASH participants, HUD strongly encourages PHAs to exercise their discretion under 24 CFR 982.552(c)(2) as outlined in Section 12-II.D. of this policy and consider all relevant circumstances of the specific case. This includes granting reasonable accommodations for persons with disabilities, as well as considering the role of the case manager and the impact that ongoing case management services can have on mitigating the conditions that led to the potential termination. VASH participant families may not be terminated after admission for a circumstance or activities that occurred prior to admission and were known to the PHA but could not be considered at the time of admission due to VASH program requirements. The PHA may terminate the family’s assistance only for program violations that occur after the family’s admission to the program. Cessation of Case Management As a condition of receiving HCV rental assistance, a HUD-VASH-eligible family must receive case management services from the VAMC or DSP. A VASH participant family’s assistance must be terminated for failure to participate, without good cause, in case management as verified by the VAMC or DSP. However, a VAMC or DSP determination that the participant family no longer requires case management is not grounds for termination of voucher or PBV assistance. In such a case, at its option, the PHA may offer the family continued assistance through one of its regular vouchers. If the PHA has no voucher to offer, the family will retain its VASH voucher or PBV unit until such time as the PHA has an available voucher for the family. VAWA [FR Notice 9/27/21] When a veteran’s family member is receiving protection under VAWA because the veteran is the perpetrator of domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking, the victim must continue to be assisted. Upon termination of the perpetrator’s VASH assistance, the victim must be given a regular HCV if one is available, and the perpetrator’s VASH voucher must be used to serve another eligible veteran family. If a regular HCV is not available, the perpetrator must be terminated from assistance and the victim will continue to use the VASH voucher. 766 19-37 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 19-III.H. PROJECT-BASING VASH VOUCHERS General Requirements [Notice PIH 2017-21 and FR Notice 9/27/21] PHAs are authorized to project-base their tenant-based VASH vouchers without additional HUD review or approval in accordance with Notice PIH 2017-21 and all PBV program requirements provided that the VAMC will continue to make supportive services available. In addition, since 2010, HUD has awarded VASH vouchers specifically for project-based assistance in the form of PBV HUD-VASH set-aside vouchers. While these vouchers are excluded from the PBV program cap as long as they remain under PBV HAP contract at the designated project, all other VASH vouchers are subject to the PBV program percentage limitation discussed in Section 17-I.A. Note that VASH supportive services only need to be provided to VASH families receiving PBV assistance in the project, not all families receiving PBV assistance in the project. If a VASH family does not require or no longer requires case management, the unit continues to count as an excepted PBV unit as long as the family resides in the unit. If the PHA project-bases VASH vouchers, the PHA must consult with the partnering VAMC or DSP to ensure approval of the project or projects. PHAs may project-base VASH vouchers in projects alongside other PBV units and may execute a single HAP contract covering both the VASH PBVs and the other PBVs. The PHA must refer only VASH families to PBV units exclusively made available to VASH families and to PBV units funded through a HUD set-aside award. If a VASH family is referred to the PHA and there is an available PBV unit that is not exclusively made available to VASH families, the PHA may offer to refer the family to the owner if allowable under the selection policy for that project, and the owner and PHA may amend the HAP contract to designate the PBV unit as a VASH PBV unit. The PHA and owner may agree to amend a PBV HAP contract to redesignate a regular PBV unit as a unit specifically designated for VASH families so long as the PHA first consults with the VAMC or DSP. Additionally, the PHA and owner may agree to amend a PBV HAP contract to redesignate a unit specifically designated for VASH families as a regular PBV unit, so long as the unit is not funded through a VASH PBV set-aside award and is eligible for regular PBV (i.e., the unit is not on the grounds of a medical facility and the unit is eligible under the PHA’s program and project caps). Policies for VASH PBV units will generally follow PHA policies for the standard PBV program as listed in Chapter 17, with the exception of the policies listed below. Failure to Participate in Case Management [FR Notice 9/27/21] Upon notification by the VAMC or DSP of the family’s failure to participate, without good cause, in case management, the PHA must provide the family a reasonable time period to vacate the unit. The PHA must terminate assistance to the family at the earlier of either the time the family vacates or the expiration of the reasonable time period given to vacate. HACCC Policy Upon notification by the VAMC or DSP that a VASH PBV family has failed to participate in case management without good cause, HACCC will provide written notice of termination of assistance to the family and the owner within 10 business days. The family will be given 60 days from the date of the notice to move out of the unit. 767 19-38 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC may make exceptions to this 60-day period if needed for reasons beyond the family’s control such as death, serious illness, or other medical emergency of a family member. If the family fails to vacate the unit within the established time, the owner may evict the family. If the owner does not evict the family, the PHA must remove the unit from the HAP contract or amend the HAP contract to substitute a different unit in the project if the project is partially assisted. The PHA may add the removed unit to the HAP contract after the ineligible family vacates the property. Moves [HUD-VASH Qs and As, FR Notice 9/27/21] When a VASH PBV family is eligible to move from its PBV unit in accordance with Section 17- VIII.C. of this policy, but there is no other comparable tenant-based rental assistance, the following procedures must be implemented: x If a VASH tenant-based voucher is not available at the time the family wants (and is eligible) to move, the PHA may require a family who still requires case management to wait for a VASH tenant-based voucher for a period not to exceed 180 days; x If a VASH tenant-based voucher is still not available after that period, the family must be allowed to move with its VASH voucher. Alternatively, the PHA may allow the family to move with its VASH voucher without having to meet this 180-day period. In either case, the PHA is required to replace the assistance in the PBV unit with one of its regular vouchers, unless the PHA and owner agree to temporarily remove the unit from the HAP contract; and x If a VASH veteran is determined to no longer require case management, the PHA must allow the family to move with the first available tenant-based voucher if not VASH voucher is immediately available and cannot require the family to wait for a VASH voucher to become available. 768 19-39 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART IV: MAINSTREAM VOUCHER PROGRAM 19-IV.A. PROGRAM OVERVIEW [Notice PIH 2020-01] Mainstream vouchers assist non-elderly persons with disabilities and their families in the form of either project-based or tenant-based voucher assistance. Aside from separate funding appropriations and serving a specific population, Mainstream vouchers follow the same program requirements as standard vouchers. The PHA does not have special authority to treat families that receive a Mainstream voucher differently from other applicants and participants. For example, the PHA cannot apply different payment standards, establish conditions for allowing portability, or apply different screening criteria to Mainstream families. The Mainstream voucher program, (previously referred to as the Mainstream 5-Year program or the Section 811 voucher program) was originally authorized under the National Affordable Housing Act of 1990. Mainstream vouchers operated separately from the regular HCV program until the passage of the Frank Melville Supportive Housing Investment Act of 2010. Funding for Mainstream voucher renewals and administrative fees was first made available in 2012. In 2017 and 2019, incremental vouchers were made available for the first time since the Melville Act (in addition to renewals and administrative fees), and PHAs were invited to apply for a competitive award of Mainstream vouchers under the FY17 and FY19 NOFAs. In 2020, Notice PIH 2020-22 provided an opportunity for any PHA administering an HCV program to apply for Mainstream vouchers noncompetitively, while Notice PIH 2020-09 authorized an increase in Mainstream voucher units and budget authority for those PHAs already awarded Mainstream vouchers under the FY17 and FY19 NOFAs. Funds for Mainstream vouchers may be recaptured and reallocated if the PHA does not comply with all program requirements or fails to maintain a utilization rate of 80 percent for the PHA’s Mainstream vouchers. 19-IV.B. ELIGIBLE POPULATION [Notice PIH 2020-01 and Notice PIH 2020-22] All Mainstream vouchers must be used to serve non-elderly persons with disabilities and their families, defined as any family that includes a person with disabilities who is at least 18 years old and not yet 62 years old as of the effective date of the initial HAP contract. The eligible disabled household member does not need to be the head of household. The definition of person with disabilities for purposes of Mainstream vouchers is the statutory definition under section 3(b)(3)(E) of the 1937 Act, which is the same as is used for allowances and deductions in the HCV program and is provided in Exhibit 3-1 of this policy. Existing families receiving Mainstream vouchers, where the eligible family member is now age 62 or older, will not “age out” of the program as long as the family was eligible on the day it was first assisted under a HAP contract. The PHA may not implement eligibility screening criteria for Mainstream vouchers that is different from that of the regular HCV program. 769 19-40 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 19-IV.C. PARTNERSHIP AND SUPPORTIVE SERVICES [Notice PIH 2020-01] PHAs are encouraged but not required to establish formal and informal partnerships with a variety of organizations that assist persons with disabilities to help ensure eligible participants find and maintain stable housing. HACCC Policy HACCC will implement a Mainstream program in partnership with the Department of Health, Housing and Homeless Services (H3) and the Housing Consortium of the East Bay (HCEB). 19-IV.D. WAITING LIST ADMINISTRATION General Waiting List Requirements [Notice PIH 2020-01 and Mainstream Voucher Basics Webinar, 10/15/20] PHAs must not have a separate waiting list for Mainstream voucher assistance since the PHA is required by the regulations to maintain one waiting list for tenant-based assistance [24 CFR 982.204(f)]. All PHA policies on opening, closing, and updating the waiting list, as well as waiting list preferences in Chapter 4, apply to the Mainstream program. When the PHA is awarded Mainstream vouchers, these vouchers must be used for new admissions to the PHA’s program from the waiting list. The PHA must lease these vouchers by pulling the first Mainstream-eligible family from its tenant-based waiting list. PHAs are not permitted to reassign existing participants to the program in order to make regular tenant-based vouchers available. Further, the PHA may not skip over Mainstream-eligible families on the waiting list because the PHA is serving the required number of Mainstream families. Upon turnover, vouchers must be provided to Mainstream-eligible families. If a Mainstream turnover voucher becomes available, the PHA must determine if the families at the top of the waiting list qualify under program requirements. Admission Preferences [Notice PIH 2020-01; FY17 Mainstream NOFA; FY19 Mainstream NOFA] If the PHA claimed points for a preference in a NOFA application for Mainstream vouchers, the PHA must adopt a preference for at least one of the targeted groups identified in the NOFA. HACCC Policy HACCC claimed a preference for a targeted group as part of an application for Mainstream vouchers under a NOFA. HACCC will offer the following preference: • Mainstream (250 Points). A preference for non-elderly persons with disabilities transitioning out of institutional and other segregated settings, at serious risk of institutionalization, homeless, at risk of becoming homeless or previously experienced homelessness and is currently a client in permanent supportive housing or a rapid rehousing project. Families on the HCV waiting list shall have first priority for the Mainstream vouchers and thereafter a separate waiting list for Mainstream eligible households shall be maintained to include referrals from the Housing Consortium of the 770 19-41 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 East Bay and the Contra Costa County Health, Housing and Human Services department who are partners with HACCC in the Mainstream voucher program. 19-IV.E. PORTABILITY [Notice PIH 2020-01 and Mainstream Voucher Basics Webinar, 10/15/20] Mainstream voucher participants are eligible for portability under standard portability rules and all PHA policies regarding portability in Chapter 10, Part II apply to Mainstream families. The following special considerations for Mainstream vouchers apply under portability: x If the receiving PHA has a Mainstream voucher available, the participant may remain a Mainstream participant. - If the receiving PHA chooses to bill the initial PHA, then the voucher will remain a Mainstream voucher. - If the receiving PHA chooses to absorb the voucher, the voucher will be considered a regular voucher, or a Mainstream voucher if the receiving PHA has a Mainstream voucher available, and the Mainstream voucher at the initial PHA will be freed up to lease to another Mainstream-eligible family. x If the receiving PHA does not have a Mainstream voucher available, the participant may receive a regular voucher. 19-IV.F. PROJECT-BASING MAINSTREAM VOUCHERS [FY19 Mainstream Voucher NOFA Q&A] The PHA may project-base Mainstream vouchers in accordance with all applicable PBV regulations and PHA policies in Chapter 17. PHAs are responsible for ensuring that, in addition to complying with project-based voucher program requirements, the project complies with all applicable federal nondiscrimination and civil rights statutes and requirements. This includes, but is not limited to, Section 504 of the Rehabilitation Act (Section 504), Titles II or III of the Americans with Disabilities (ADA), and the Fair Housing Act and their implementing regulations at 24 CFR Part 8; 28 CFR Parts 35 and 36; and 24 CFR Part 100. Mainstream vouchers are subject to the PBV program percentage limitation discussed in Section 17-I.A. 771 19-42 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART V: NON-ELDERLY DISABLED (NED) VOUCHERS 19-V.A. PROGRAM OVERVIEW [Notice PIH 2013-19] NED vouchers help non-elderly disabled families lease suitable, accessible, and affordable housing in the private market. Aside from separate funding appropriations and serving a specific population, NED vouchers follow the same program requirements as standard vouchers. The PHA does not have special authority to treat families that receive a NED voucher differently from other applicants and participants. Some NED vouchers are awarded to PHAs through competitive NOFAs. The NOFA for FY2009 Rental Assistance for NED made incremental funding available for two categories of NED families: x Category 1 vouchers enable non-elderly persons or families with disabilities to access affordable housing on the private market. x Category 2 vouchers enable non-elderly persons with disabilities currently residing in nursing homes or other healthcare institutions to transition into the community. PHAs with NED Category 2 vouchers were required to partner with a state Medicaid or health agency or the state Money Follows the Person (MFP) Demonstration agency. Since 1997, HCVs for NED families have been also awarded under various special purpose HCV programs: Rental Assistance for Non-Elderly Persons with Disabilities in Support of Designated Housing Plans (Designated Housing), Rental Assistance for Non-Elderly Persons with Disabilities Related to Certain Types of Section 8 Project-Based Developments (Certain Developments), One- Year Mainstream Housing Opportunities for Persons with Disabilities, and the Project Access Pilot Program (formerly Access Housing 2000). x Designated Housing vouchers enable non-elderly disabled families, who would have been eligible for a public housing unit if occupancy of the unit or entire project had not been restricted to elderly families only through an approved Designated Housing Plan, to receive rental assistance. These vouchers may also assist non-elderly disabled families living in a designated unit/project/building to move from that project if they so choose. The family does not have to be listed on the PHA’s voucher waiting list. Instead, they may be admitted to the program as a special admission. Once the impacted families have been served, the PHA may begin issuing these vouchers to non-elderly disabled families from their HCV waiting list. Upon turnover, these vouchers must be issued to non-elderly disabled families from the PHA’s HCV waiting list. x Certain Developments vouchers enable non-elderly families having a person with disabilities, who do not currently receive housing assistance in certain developments where owners establish preferences for, or restrict occupancy to, elderly families, to obtain affordable housing. These non-elderly families with a disabled person do not need to be listed on the PHA’s HCV waiting list in order to be offered and receive housing choice voucher rental assistance. It is sufficient that these families' names are on the waiting list for a covered development at the time their names are provided to the PHA by the owner. Once the impacted families have been served, the PHA may begin issuing these vouchers to non-elderly disabled families from their HCV waiting list. Upon turnover, these vouchers must be issued to non- elderly disabled families from the PHA’s HCV waiting list. 772 19-43 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 x One-Year Mainstream Housing Opportunities for Persons with Disabilities (One-Year Mainstream) vouchers enable non-elderly disabled families on the PHA’s waiting list to receive a voucher. After initial leasing, turnover vouchers must be issued to non-elderly disabled families from the PHA’s voucher waiting list. 19-V.B. ELIGIBLE POPULATION General Requirements [Notice PIH 2013-19] Only eligible families whose head of household, spouse, or cohead is non-elderly (under age 62) and disabled may receive a NED voucher. Families with only a minor child with a disability are not eligible. In cases where the qualifying household member now qualifies as elderly due to the passage of time since the family received the NED voucher, existing NED participant families do not “age out,” as the family was eligible on the day it was first assisted under a housing assistance payments (HAP) contract. The definition of person with disabilities for purposes of NED vouchers is the statutory definition under Section 3(b)(3)(E) of the 1937 Act, which is the same as is used for allowances and deductions in the HCV program and is provided in Exhibit 3-1 of this policy. The PHA may not implement eligibility screening criteria for NED vouchers that is different from that of the regular HCV program. NED Category 2 [Notice PIH 2013-19 and NED Category 2 FAQs] In addition to being eligible for the PHA’s regular HCV program and a non-elderly person with a disability, in order to receive a Category 2 voucher, the family’s head, spouse, cohead, or sole member must be transitioning from a nursing home or other healthcare institution and provided services needed to live independently in the community. Nursing homes or other healthcare institutions may include intermediate care facilities and specialized institutions that care for those with intellectual disabilities, developmentally disabled, or mentally ill, but do not include board and care facilities (e.g., adult homes, adult day care, adult congregate living). The PHA cannot limit who can apply to just those persons referred or approved by a Money Follows the Person (MFP) Demonstration agency or state health agency. Other individuals could be placed on the waiting list if they can show, with confirmation by an independent agency or organization that routinely provides such services (this can be the MFP or partnering agency, but need not be), that the transitioning individual will be provided with all necessary services, including care or case management. For each Category 2 family, there must be documentation (e.g., a copy of a referral letter from the partnering or referring agency) in the tenant file identifying the institution where the family lived at the time of voucher issuance. 19-V.C. WAITING LIST General Requirements [Notice PIH 2013-19] Families must be selected for NED vouchers from the PHA’s waiting list in accordance with all applicable regulations and PHA policies in Chapter 4. 773 19-44 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Regardless of the number of NED families the PHA is required to serve, the next family on the waiting list must be served. Further, the PHA may not skip over NED-eligible families on the waiting list because the PHA is serving the required number of NED families. NED Category 2 Referrals [NED Category 2 FAQs] For NED Category 2 families, the partnering agency may make referrals of eligible families to the PHA for placement on the waiting list. The PHA will then select these families from the waiting list for voucher issuance. Because language in the NOFA established that vouchers awarded under the NOFA must only serve non-elderly disabled families transitioning from institutions, the PHA does not need to establish a preference in order to serve these families ahead of other families on the PHA’s waiting list. PHAs must accept applications from people living outside their jurisdictions or from people being referred from other Medicaid or MFP service agencies in their state. If the PHA’s waiting list is closed, the PHA must reopen its waiting list to accept referrals from its partnering agency. When opening the waiting list, PHAs must advertise in accordance with 24 CFR 982.206 and PHA policies in Section 4-II.C. In addition, the PHA must ensure that individuals living in eligible institutions are aware when the PHA opens its waiting list by reaching out to social service agencies, nursing homes, intermediate care facilities and specialized institutions in the local service area. Reissuance of Turnover Vouchers [Notice PIH 2013-19] All NED turnover vouchers must be reissued to the next NED family on the PHA’s waiting list with the following exception: A Category 2 voucher must be issued to another Category 2 family upon turnover if a Category 2 family is on the PHA’s waiting list. If there are no Category 2 families on the PHA’s waiting list, the PHA must contact its partnering agency as well as conduct outreach through appropriate social service agencies and qualifying institutions to identify potentially eligible individuals. Only after all means of outreach have been taken to reach Category 2 families can the PHA reissue the voucher to another Category 2 NED family on the PHA’s waiting list. Any subsequent turnover of that voucher must again be used for a Category 2 family on the PHA’s waiting list, and the PHA is under the same obligation to conduct outreach to Category 2 families if no such families are on the PHA’s waiting list. For PHAs that received both Category 1 and Category 2 vouchers, if at any time the PHA is serving fewer Category 2 families than the number of Category 2 HCVs awarded under the NOFA, when a Category 2 family applies to the waiting list and is found eligible, the PHA must issue the next NED voucher to that family. HUD monitors the initial leasing and reissuance of Category 2 HCVs. These vouchers may be recaptured and reassigned if not leased properly and in a timely manner. All NED vouchers should be affirmatively marketed to a diverse population of NED-eligible families to attract protected classes least likely to apply. If at any time following the turnover of a NED HCV a PHA believes it is not practicable to assist NED families, the PHA must contact HUD. 19-V.D. LEASE UP [Notice PIH 2013-19] Briefings 774 19-45 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 In addition to providing families with a disabled person a list of accessible units known to the PHA, HUD encourages, but does not require, PHAs to provide additional resources to NED families as part of the briefing. PHA Policy In addition to providing families with a disabled person a list of accessible units known to the PHA, the PHA will provide a list of local supportive service and disability organizations that may provide such assistance as counseling services and funding for moving expenses or security deposits in the briefing packet. These organizations include state protection and advocacy agencies, Centers for Independent Living, state Medicaid agencies, and disability advocacy groups that represent individuals with a variety of disabilities. Further, if other governmental or non-governmental agencies provide available resources such as housing search counseling, moving expenses, security deposits, and utility deposits, the PHA will include this information in the briefing packet. The PHA will also offer specialized housing search assistance to families with a disabled person to locate accessible units if requested. Trained PHA staff or a local supportive service or disability organization may be able to provide this service. Voucher Term While the PHA is not required to establish different policies for the initial term of the voucher for NED vouchers, HUD has encouraged PHAs with NED vouchers to be generous in establishing reasonable initial search terms and subsequent extensions for families with a disabled person. HACCC Policy All NED vouchers will have an initial term of 120 calendar days. The family must submit a Request for Tenancy Approval and proposed lease within the 120-day period unless the PHA grants an extension. All other HACCC policies on extensions and suspension of vouchers in Section 5-II.E. will apply. Special Housing Types [Notice PIH 2013-19 and NED Category 2 FAQs] In general, a PHA is not required to permit families to use any of the special housing types and may limit the number of families using such housing. However, the PHA must permit the use of a special housing type if doing so provides a reasonable accommodation so that the program is readily accessible to and usable by a person with disabilities. Such special housing types include single room occupancy housing, congregate housing, group homes, shared housing, cooperative housing, and manufactured homes when the family owns the home and leases the manufactured home space. Persons with disabilities transitioning out of institutional settings may choose housing in the community that is in a group or shared environment or where some additional assistance for daily living is provided for them on site. Under HUD regulations, group homes and shared housing are considered special housing types and are not excluded as an eligible housing type in the HCV program. Assisted living facilities are also considered eligible housing under the normal HCV 775 19-46 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 program rules, as long as the costs for meals and other supportive services are not included in the housing assistance payments (HAP) made by the PHA to the owner, and as long as the person does not need continual medical or nursing care. 19-V.E. PORTABILITY [NED Category 2 FAQs] NED voucher participants are eligible for portability under standard portability rules and all PHA policies regarding portability in Chapter 10, Part II apply to NED families. However, the PHA may, but is not required to, allow applicant NED families to move under portability, even if the family did not have legal residency in the initial PHA’s jurisdiction when they applied. HACCC Policy If neither the head of household nor the spouse or cohead of a NED applicant family had a domicile (legal residence) in HACCC’s jurisdiction at the time that the family’s initial application for assistance was submitted, the family must lease a unit within the initial PHA’s jurisdiction for at least 12 months before requesting portability. HACCC will consider exceptions to this policy for purposes of reasonable accommodation (see Chapter 2) or reasons related to domestic violence, dating violence, sexual assault, or stalking, or human trafficking. 776 19-47 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART VI: STABILITY VOUCHER PROGRAM 19-VI.A. PROGRAM OVERVIEW [Notice PIH 2022-24] The Consolidated Appropriations Act, 2021 (Public Law 116-260) (2021 Act) provided new incremental funding for voucher assistance through Stability Vouchers (SVs) for households who are: x Homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302(a)); x At-risk of homelessness; x Those fleeing or attempting to flee domestic violence dating violence, sexual assault, stalking, or human trafficking; and x Veterans and families that include a veteran family member that meet one of the above criteria. HUD may waive certain statutory and regulatory provisions to administer the SVs (except for requirements related to tenant rights and protections, rent setting, fair housing, nondiscrimination, labor standards and the environment) upon a finding that any such waivers or alternative requirements are necessary to facilitate the use of funds made available for SVs. Unless expressly waived below, all statutory and regulatory requirements and HUD directives regarding the HCV program are applicable to SVs, including the use of all HUD required contracts and other forms. A PHA may request additional good cause regulatory waivers as established in Notice PIH 2018-16 in connection with the use of the SVs, which HUD will consider and assess upon the request of the PHA. 19-VI.B. PARTNERING ORGANIZATION [Notice PIH 2022-24] SV funding is only awarded to PHAs that partner with eligible Continuums of Care (CoCs) or other entities that serve the targeted population, such as Victim Service Providers (VSPs) and Veteran Service Organizations (VSOs) serving the targeted population in the PHA’s jurisdiction to implement coordinated approaches to reduce the prevalence of homelessness, improve service engagement, and promote housing stability while ensuring geographical need of assistance. The PHA must enter into a Memorandum of Understanding (MOU) with the CoC to establish a partnership with the CoC to pair SVs with CoC-funded supportive services, and to collaborate with the CoC and other stakeholders to develop a prioritization plan for these vouchers. HACCC Policy HACCC has entered into an MOU with the following partnering organization Contra Costa Health, Health, Housing and Homeless Services Division. 19-VI.C. REFERRALS [Notice PIH 2022-24] In general, families are issued SVs as the result of either: x The direct referral process from the CoC or other partnering organizations; or x A situation where the PHA makes an SV available in order to facilitate an emergency transfer for victims of domestic violence, dating violence, sexual assault, stalking, and human trafficking. 777 19-48 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 CoC Referrals The primary responsibility of the CoC under the MOU is to make direct referrals of qualifying individuals and families to the PHA and to identify any CoC-funded available supportive services that may be paired with SVs. The CoC or other partnering agency must certify that the SV applicants they refer to the PHA meet the definition of a qualifying individual or family for SV assistance. The referring agency must provide documentation to the PHA of the referring agency’s verification that the family meets one of the four eligible categories for SV assistance. The PHA must retain this documentation as part of the family’s file. HACCC Policy The CoC or partnering agency must establish and implement a system to identify SV- eligible individuals and families within the agency’s caseload and make referrals to HACCC. The CoC or other partnering agency must certify that the SV applicants they refer to HACCC meet SV eligibility criteria. HACCC will maintain a copy of the referral or certification from the CoC or other partnering agency in the participant’s file along with other eligibility paperwork. Homeless service providers may, but are not required to, use the certification form found in Exhibit 19-1 of this chapter or similar certification form. Victim services providers may, but are not required to, use the certification form found in Exhibit 19-2 of this chapter when identifying eligible families who qualify as victims of human trafficking. As part of the MOU, HACCC and CoC or other partnering agency will identify staff positions to serve as lead SV liaisons. These positions will be responsible for transmission and acceptance of referrals. The CoC or partnering agency must commit sufficient staff and resources to ensure eligible individuals and families are identified and determined eligible in a timely manner. HACCC’s liaison responsible for acceptance of referrals will contact the CoC or partnering agency liaison via email indicating the number of vouchers available and requesting an appropriate number of referrals. No more than five business days from the date the CoC or partnering agency receives this notification, the CoC or partnering agency liaison will provide HACCC with a list of eligible referrals including the name, address, and contact phone number for each adult individual who is being referred; a completed release form for each adult family member; and a written certification for each referral indicating they are SV-eligible. 778 19-49 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Referrals from Outside the CoC The PHA must also take direct referrals from outside the CoC process if: x The CoC does not have a sufficient number of eligible families to refer to the PHA; or x The CoC does not identify families that may be eligible for SV assistance because they are fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking. If a direct referral is taken from outside of the CoC, the PHA must enter into a partnership to receive direct referrals from another entity, assuming there are such additional organizations that can certify that an individual or family is eligible for an SV. The PHA must enter into an MOU with a partnering referral agency or may add the partnering referral agency to the MOU between the PHA and CoC. 19-VI.D. WAITING LIST [Notice PIH 2022-24] HCV Waiting List The regulation that requires the PHA to admit applicants as waiting list admissions or special admissions in accordance with admission policies in Chapter 4 does not apply to PHAs operating the SV program. Direct referrals are not added to the PHA’s HCV waiting list. The PHA must inform families on the HCV waiting list of the availability of SVs by, at a minimum, either by posting the information to their website or providing public notice in their respective communities in accordance with the requirements listed in Notice PIH 2022-24. HACCC Policy HACCC will post information about the SV program for families on the HACCC’s HCV waiting list on their website. The notice will: Describe the eligible populations to which SVs are limited. Clearly state that the availability of these SVs is managed through a direct referral process. Advise the family to contact the CoC (or any other PHA referral partner, if applicable) if the family believes they may be eligible for SV assistance. HACCC will ensure effective communication with persons with disabilities, including those with vision, hearing, and other communication-related disabilities in accordance with Chapter 2. HACCC will also take reasonable steps to ensure meaningful access for persons with limited English proficiency (LEP) in accordance with Chapter 2. SV Waiting List The HCV regulations requiring the PHA to operate a single waiting list for admission to the HCV program do not apply to PHAs operating the SV program. Instead, when the number of applicants referred by the CoC or partnering agency exceeds the SVs available, the PHA must maintain a separate waiting list for SV referrals. Upon turnover, SV vouchers must continue to remain available for eligible families. 779 19-50 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Further, the SV waiting list is not subject to PHA policies in Chapter 4 regarding opening and closing the HCV waiting list. The PHA will work directly with its CoC and other referral agency partners to manage the number of referrals and the size of the SV waiting list. HCV Waiting List Preferences If local preferences are established by the PHA for HCV in Chapter 4, they do not apply to SVs. However, if the PHA has a homelessness preference or a preference for survivors of domestic violence, dating violence, sexual assault, stalking, or human trafficking for the regular HCV program, the PHA must refer any applicant on the waiting list that indicated they qualified for this preference to the CoC, or the applicable partnering referral agency. HACCC Policy HACCC does not offer either a homelessness or VAWA preference for the HCV waiting list. SV Waiting List Preferences With the exception of a residency preference, which may not be applied to the PHA’s SV waiting list, the PHA may choose, in coordination with the CoC and other referral partners, to establish separate local preferences for SVs, or may simply choose to not establish any local preferences for the SV waiting list. The preference system may not prohibit SV admissions from any of the four qualifying categories of eligibility. HACCC Policy No local preferences have been established for the SV waiting list. 19-VI.E. FAMILY ELIGIBILITY [Notice PIH 2022-24] Referring Agency Determination of Eligibility The CoC or referring agency determines whether the individual or family meets any one of the eligibility criteria described in Notice PIH 2022-24 and then refers the family to the PHA. The PHA determines that the family meets other eligibility criteria for the HCV program, as modified for the SV program and outlined below. In order to be eligible for an SV, a household must meet one of four eligibility criteria: x Homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302(a)) and 24 CFR 578.3; x At-risk of homelessness as defined in 24 CFR 5.78.3; x Those fleeing or attempting to flee domestic violence dating violence, sexual assault, stalking, or human trafficking; and x Veterans [as defined in 38 U.S.C. 101(2); 38 CFR 3.1(d)] and families that include a veteran family member that meet one of the above criteria. Mandatory Denials HUD waived 24 CFR 982.552 and 982.553 in part for the SV applicants and established alternative requirements for mandatory and permissive prohibitions of admissions. Except where applicable, PHA policies regarding denials in Chapter 3 of this policy do not apply to screening 780 19-51 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 individuals and families for eligibility for an SV. Instead, the SV alternative requirement listed in this section will apply to all SV applicants. The mandatory and permissive prohibitions listed in Notice PIH 2022-24 and in this chapter, however, apply only when screening the individual or family for eligibility for an SV. When adding a family member after the family has been placed under a HAP contract with SV assistance, the regulations at 24 CFR 982.551(h)(2) apply. Other than the birth, adoption, or court- awarded custody of a child, the PHA must approve additional family members and may apply its regular HCV screening criteria in Chapter 3 in doing so. Under alternative requirements for the SV program, mandatory denials for SV applicants include: x 24 CFR 982.553(a)(1)(ii)(C), which prohibits admission if any household member has ever been convicted of drug-related criminal activity for manufacture or production of methamphetamine on the premises of federally assisted housing. x 24 CFR 982.553(a)(2)(i), which prohibits admission to the program if any member of the household is subject to a lifetime registration requirement under a state sex offender registration program. HACCC will also deny assistance to household members already receiving assistance from another program. The PHA must deny admission to the program if any member of the family fails to sign and submit consent forms for obtaining information as required by 24 CFR 982.552(b)(3) but should notify the family of the limited SV grounds for denial of admission first. HACCC Policy HACCC will deny admission to the program if any adult member (or head of household or spouse, regardless of age) fails to sign and submit consent forms, Permissive Denial Notice PIH 2022-24 lists permissive prohibitions for which the PHA may, but is not required to, deny admission to SV families. The notice also lists prohibitions that, while allowable under the HCV program, may not be used to deny assistance for SV families. If the PHA intends to establish permissive prohibition policies for SV applicants, the PHA must first consult with its CoC partner to understand the impact that the proposed prohibitions may have on referrals and must take the CoC’s recommendations into consideration. HACCC Policy In consultation with the CoC, HACCC will apply permissive prohibition to the screening of SV applicants. Determinations using permissive prohibitions will be made based on an individualized assessment of relevant mitigating information in accordance with policies in Section 3-III.E. of the administrative plan. HACCC will establish the following permissive prohibitions: If the PHA determines that any household member is currently engaged in, or has engaged in within the previous 12 months: Violent criminal activity 781 19-52 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Other 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 If any member of the family has committed fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program within the previous 12 months. If the family engaged in or threatened abusive or violent behavior toward HACCC personnel within the previous 12 months. Prohibitions based on criminal activity for the eligible SV populations regarding drug possession will be considered apart from criminal activity against persons (i.e., violent criminal activity). In compliance with PIH 2022-24, HACCC will not deny an SV applicant admission regardless of whether: Any member of the family has been evicted from federally assisted housing in the last five years A PHA has ever terminated assistance under the program for any member of the family The family currently owes rent or other amounts to HACCC or to another PHA in connection with Section 8 or public housing assistance under the 1937 Act The family has not reimbursed any PHA for amounts paid to an owner under a HAP contract for rent, damages to the unit, or other amounts owed by the family under the lease The family breached an agreement with the PHA to pay amounts owed to a PHA, or amounts paid to an owner by a PHA The family would otherwise be prohibited admission under alcohol abuse standards established by HACCC in accordance with 24 CFR 982.553(a)(3) HACCC determines that any household member is currently engaged in or has engaged in during a reasonable time before the admission, drug-related criminal activity Self-Certification of Income at Admission The requirement to obtain third-party verification of income in accordance with Notice PIH 2018- 18 does not apply to the SV program applicants at admission, and alternatively, PHAs may consider self-certification the highest form of income verification at admission. As such, PHA policies related to the verification of income in Section 7-I.B. do not apply to SV families at admission. Instead, applicants must submit an affidavit attesting to their reported income, assets, expenses, and other factors that would affect an income eligibility determination. Additionally, applicants may provide third-party documentation that represents the applicant’s income within the 60-day period prior to admission or voucher issuance but is not dated within 60 days of the PHA’s request. HACCC Policy 782 19-53 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Any documents used for verification must be the original (not photocopies) and dated within the 60-day period prior to admission. The documents must not be damaged, altered, or in any way illegible. Printouts from webpages are considered original documents. Any family self-certifications must be made in a format acceptable to HACCC and must be signed by the family member whose information or status is being verified. HACCC will incorporate additional procedures to remind families of the obligation to provide true and complete information in accordance with Chapter 14. HACCC will address any material discrepancies (i.e., unreported income or a substantial difference in reported income) that may arise later. HACCC may, but is not required to, offer the family a repayment agreement in accordance with Chapter 16. If the family fails to repay the excess subsidy, HACCC will terminate the family’s assistance in accordance with the policies in Chapter 12. Recently Conducted Income Determinations PHAs may accept income calculations and verifications from third-party providers or from an examination that the PHA conducted on behalf of the family for another subsidized housing program in lieu of conducting an initial examination of income as long as: x The income was calculated in accordance with rules outlined at 24 CFR Part 5 and within the last six months; and x The family certifies there has been no change in income or family composition in the interim. HACCC Policy The PHA will not accept income calculations and verifications from third-party providers. The family certification must be made in a format acceptable to HACCC and must be signed by all adult family members whose information or status is being verified. At the time of the family’s annual reexamination, the PHA must conduct the annual reexamination of income as outlined at 24 CFR 982.516 and the PHA policies in Chapter 11. EIV Income Validation Once HUD makes the EIV data available to PHAs under this waiver and alternative requirement, the PHA must: x Review the EIV Income and Income Validation Tool (IVT) reports to confirm and validate family-reported income within 90 days of the PIC submission date; x Print and maintain copies of the EIV Income and IVT Reports in the tenant file; and x Resolve any income discrepancy with the family within 60 days of the EIV Income or IVT Report dates. Prior to admission, PHAs must continue to use HUD’s EIV system to search for all household members using the Existing Tenant Search in accordance with PHA policies in Chapter 3. If a PHA later determines that an ineligible family received assistance, the PHA must take steps to terminate that family from the program in accordance with Chapter 12. 783 19-54 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Social Security Number and Citizenship Status Verification For the SV program, the PHA is not required to obtain and verify SSN documentation and documentation evidencing eligible noncitizen status before admitting the family to the SV program. Instead, PHAs may adopt policies to admit SV applicants who are unable to provide the required SSN or citizenship documentation during the initial eligibility determination. As an alternative requirement, such individuals must provide the required documentation within 180 days of admission to be eligible for continued assistance, pending verification, unless the PHA provides an extension based on evidence from the family or confirmation from the CoC or other partnering agency that the family has made a good-faith effort to obtain the documentation. If a PHA determines that an ineligible family received assistance, the PHA must take steps to terminate that family from the program. HACCC Policy HACCC will not admit SV applicants who are unable to provide the required SSN or citizenship documentation during the initial eligibility determination.. Age and Disability Verifications PHAs may accept self-certification of date of birth and disability status if a higher level of verification is not immediately available. If self-certification is used, the PHA must obtain a higher level of verification within 90 days of admission or verify the information in EIV. If a PHA determines that an ineligible family received assistance, the PHA must take steps to terminate that family from the program. HACCC Policy HACCC will accept self-certification of date of birth and disability status if a higher form of verification is not immediately available. The certification must be made in a format acceptable to HACCC and must be signed by the family member whose information or status is being verified. If self-certification is accepted, within 90 days of admission, HACCC will verify the information in EIV or through other third-party verification if the information is not available in EIV. HACCC will note the family’s file that self- certification was used as initial verification and include an EIV printout or other third-party verification confirming the applicant’s date of birth and/or disability status. If HACCC determines that an ineligible family received assistance, HACCC will take steps to terminate that family from the program in accordance with policies in Chapter 12. Income Targeting The PHA must determine income eligibility for SV families in accordance with 24 CFR 982.201 and PHA policy in Chapter 3; however, income targeting requirements do not apply for SV families. The PHA may still choose to include the admission of extremely low-income SV families in its income targeting numbers for the fiscal year in which these families are admitted. HACCC Policy HACCC will not include the admission of extremely low-income SV families in its income targeting numbers for the fiscal year in which these families are admitted. 784 19-55 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 19-VI.F. HOUSING SEARCH AND LEASING Initial Voucher Term Unlike the standard HCV program, which requires an initial voucher term of at least 60 days, SV vouchers must have an initial search term of at least 120 days. PHA policies on extensions as outlined in Section 5-II.E. will apply. HACCC Policy All SVs will have an initial term of 120 calendar days. The family must submit a Request for Tenancy Approval and proposed lease within the 120-day period unless HACCC grants an extension. Pre-Inspections To expedite the leasing process, PHAs may pre-inspect available units that SV families may be interested in leasing in order to maintain a pool of eligible units. HACCC Policy To expedite the leasing process, HACCC may pre-inspect available units that SV families may be interested in leasing to maintain a pool of eligible units. If an SV family selects a unit that passed a pre-inspection (without intervening occupancy) within 45 days of the date of the Request for Tenancy Approval, the unit may be approved provided that it meets all other conditions under 24 CFR 982.305. The family will be free to select his or her unit. When a pre-inspected unit is not selected, HACCC will make every effort to fast-track the inspection process, including adjusting the normal inspection schedule for any required reinspections. Initial Lease Term Unlike in the standard the HCV program, SV voucher holders may enter into an initial lease that is for less than 12 months, regardless of the PHA policy in Section 9-I.E., Term of Assisted Tenancy. Portability The normal HCV portability procedures and requirements outlined in Chapter 10 generally apply to SVs. Exceptions are addressed below. x Under SV, applicant families may move under portability even if the family did not have legal residency in the jurisdiction of the initial PHA when they applied, regardless of PHA policy in Section 10-II.B. x A receiving PHA cannot refuse to assist an incoming SV family, regardless of whether the PHA administers SVs under its own ACC. x If the SV family moves under portability to another PHA that administers SVs under its own ACC: - The receiving PHA may only absorb the incoming SV family with an SV (assuming it has an SV voucher available to do so). 785 19-56 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 - If the PHA does not have an SV available to absorb the family, it must bill the initial PHA. The receiving PHA must allow the family to lease the unit with SV assistance and may not absorb the family with a regular HCV when the family leases the unit. - Regardless of whether the receiving PHA absorbs or bills the initial PHA for the family’s SV assistance, the SV administration of the voucher is in accordance with the receiving PHA’s SV policies. x If the SV family moves under portability to another PHA that does not administer SVs under its own ACC, the receiving PHA may absorb the family into its regular HCV program or may bill the initial PHA. Family Briefing In addition to the applicable family briefing requirements at 24 CFR 982.301(a)(2) as to how portability works and how portability may affect the family’s assistance, the initial PHA must inform the family how portability may impact the special SV services and assistance that may be available to the family. The initial PHA is required to help facilitate the family’s portability move to the receiving PHA and inform the family of this requirement in writing, taking reasonable steps to ensure meaningful access for persons with limited English proficiency (LEP). HACCC Policy In addition to following HACCC’s policy on briefings in Chapter 5, as part of the briefing packet for SV families, HACCC will include a written notice that HACCC will assist the family with moves under portability. For limited English proficient (LEP) applicants, HACCC will provide interpretation services in accordance with HACCC’s LEP plan (See Chapter 2). 19-VI.G. PAYMENT STANDARDS Overview For the SV program, HUD has waived the regulation requiring a single payment standard for each unit size. Instead, the PHA may, but is not required to, establish separate higher payment standards for SVs. Lower SV payment standards are not permitted. If the PHA is increasing the regular HCV payment standard, the PHA must also increase the SV payment standard if it would be otherwise lower than the new regular HCV payment standard. The separate SV payment standard must comply with all other HCV requirements with the exception of the alternative requirements discussed below. Further, if the PHA chooses to establish higher payments standards for SVs, HUD has provided other regulatory waivers: x Defining the “basic range” for payment standards as between 90 and 120 percent of the published Fair Market Rent (FMR) for the unit size (rather than 90 to 110 percent). x Allowing a PHA that is not in a designated Small Area FMR (SAFMR) area or has not opted to voluntarily implement SAFMRs to establish exception payment standards for a ZIP code area above the basic range for the metropolitan FMR based on the HUD-published SAFMRs. The PHA may establish an exception payment standard up to 120 percent (as opposed to 110 786 19-57 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 percent) of the HUD published Small Area FMR for that ZIP code area. The exception payment standard must apply to the entire ZIP code area. HACCC Policy HACCC will not establish a higher payment standard amount for SVs. HACCC will use the same payment standards for HCV and SV. All rent reasonableness requirements apply to SV units, regardless of whether the PHA has established an alternative or exception SV payment standard. Increases in Payment Standards The requirement that the PHA apply increased payment standards at the family’s first regular recertification on or after the effective date of the increase does not apply to SV. The PHA may, but is not required to, establish an alternative policy on when to apply the increased payment standard, provided the increased payment standard is used to calculate the HAP no later than the effective date of the family’s first regular reexamination following the change. HACCC Policy HACCC will not establish an alternative policy for increases in the payment standard. HACCC policy in Section 11-III.B. governing increases in payment standards will apply to SVs. 19-VI.H. PROJECT-BASED UNITS All tenant-based SV awards can be converted to Project-Based Vouchers (PBV) at any time after award without HUD approval provided all the established PBV regulations and requirements are followed. All PBV requirements in 24 CFR Part 983 and in Chapter 17 apply to project-based SVs with the exception of 24 CFR 983.251(c)(1), which requires PHAs to select families for project-based units from its HCV or PBV waiting list. HUD is waiving this requirement and establishing an alternative requirement that PHAs receive SV referrals from CoC partners for vouchers as well as project-based assistance. 787 19-58 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EXHIBIT 19-1: SAMPLE STABILITY VOUCHER (SV) HOMELESS PROVIDER’S CERTIFICATION Stability Voucher (SV) HOMELESS CERTIFICATION SV Applicant Name: ____________________________________________________________ տ Household without dependent children (complete one form for each adult in the household) տ Household with dependent children (complete one form for household) Number of persons in the household: ______________ This is to certify that the above named individual or household meets the following criteria based on the check mark, other indicated information, and signature indicating their current living situation Check only one box and complete only that section Living Situation: place not meant for human habitation (e.g., cars, parks, abandoned buildings, streets/sidewalks) տ The person(s) named above is/are currently living in (or, if currently in hospital or other institution, was living in immediately prior to hospital/institution admission) a public or private place not designed for, or ordinarily used as a regular sleeping accommodation for human beings, including a car, park, abandoned building, bus station, airport, or campground. Description of current living situation: _______________________________________________________________________________ _______________________________________________________________________________ ____________________________________________________________________________ Homeless Street Outreach Program Name: ___________________________________________ This certifying agency must be recognized by the local Continuum of Care (CoC) as an agency that has a program designed to serve persons living on the street or other places not meant for human habitation. Examples may be street outreach workers, day shelters, soup kitchens, Health Care for the Homeless sites, etc. Authorized Agency Representative Signature: ________________________________________ Date: ________________________________ 788 19-59 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Living Situation: Emergency Shelter տ The person(s) named above is/are currently living in (or, if currently in hospital or other institution, was living in immediately prior to hospital/institution admission) a supervised publicly or privately operated shelter as follows: Emergency Shelter Program Name: _________________________________________________ This emergency shelter must appear on the CoC’s Housing Inventory Chart submitted as part of the most recent CoC Homeless Assistance application to the U.S. Department of Housing and Urban Development (HUD) or otherwise be recognized by the CoC as part of the CoC inventory (e.g., newly established Emergency Shelter). Authorized Agency Representative Signature: ________________________________________ Date: ________________________________ Living Situation: Recently Homeless տ The person(s) named above is/are currently receiving financial and supportive services for persons who are homeless. Loss of such assistance would result in a return to homelessness (e.g., households in rapid rehousing programs, residents of permanent supportive housing programs participating in Moving On, etc.) Authorized Agency Representative Signature: ________________________________________ Date: ________________________________ This referring agency must appear on the CoC’s Housing Inventory Chart submitted as part of the most recent CoC Homeless Assistance application to HUD or otherwise be recognized by the CoC as part of the CoC inventory. Immediately prior to entering the household’s current living situation, the person(s) named above was/were residing in: տ Emergency shelter OR տ A place unfit for human habitation Authorized Agency Representative Signature: ________________________________________ Date: ________________________________ 789 19-60 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EXHIBIT 19-2: SAMPLE VICTIM SERVICE PROVIDER’S CERTIFICATION Stability Voucher (SV) SAMPLE CERTIFICATION FOR SURVIVORS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, STALKING, AND/OR HUMAN TRAFFICKING Use of this Optional Form: Service providers may utilize this form to certify a family’s eligibility for SV to document households who are fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, and/or human trafficking. In response to this request, the service provider may complete this form and submit it to the Public Housing Agency (PHA) to certify eligibility for the U.S. Department of Housing and Urban Development’s (HUD) Stability Voucher program. Confidentiality: All information provided during the referral process concerning the incident(s) of domestic violence, dating violence, dating violence, sexual assault, stalking, and human trafficking shall be kept confidential and such details shall not be entered into any shared database. Employees of the PHA will not have access to these details, and such employees may not disclose this information to any other entity or individual, except to the extent that disclosure is: (i) consented to by you in writing in a time-limited release; (ii) required for use in an eviction proceeding or hearing regarding termination of assistance; or (iii) otherwise required by applicable law. TO BE COMPLETED ON BEHALF OF SURVIVORS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, STALKING, AND/OR HUMAN TRAFFICKING SV Applicant Name: ____________________________________________________________ The applicant named above is a survivor of (please check from the list all that apply): տ Domestic Violence տ Dating Violence տ Sexual Assault տ Stalking տ Human Trafficking 790 19-61 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 This certifies that the above named individual or household meets the definition for persons who are fleeing, or attempting to flee domestic violence, dating violence, sexual assault, stalking and/or human trafficking as these terms are defined under 34 U.S.C. Section 12291 of the Violence Against Women Act1 and 22 U.S.C. Section 7102(11) of the Trafficking Victims Protection Act.2 I acknowledge that submission of false information could jeopardize program eligibility and could be the basis for denial of admission, termination of assistance, or eviction. Authorized Agency Representative Signature: ________________________________________ Date: ________________________________ 1 The Violence Against Women Act protects applicants, tenants, and program participants in certain HUD programs from being evicted, denied housing assistance, or terminated from housing assistance based on acts of domestic violence, dating violence, sexual assault, or stalking against them. VAWA protection is available to victims of domestic violence, dating violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation. 2 The Victims of Trafficking and Violence Protection Act of 2000 provides assistance to victims of trafficking making housing, educational health care, job training and other federally-funded social service programs available to assist victims in rebuilding their lives. 791 19-62 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EXHIBIT 19-3: SAMPLE SV MEMORANDUM OF UNDERSTANDING3 [** This sample document demonstrates the Memorandum of Understanding requirements for the administration of Stability Vouchers. Unless otherwise noted, all elements are required. **] Memorandum of Understanding – Stability Vouchers This Memorandum of Understanding (MOU) has been created and entered on [Insert execution date] by [insert PHA name and address] and [insert CoC/VSP name and address]. I. Introduction and Goals The [insert PHA name] and [insert CoC/VSP name] through the Stability Voucher (SV) Program seek to prevent and end homelessness among individuals and families who are experiencing or at-risk of homelessness, those fleeing or attempting to flee domestic violence dating violence, sexual assault, stalking, and human trafficking, and veterans and families that include a veteran family member that meets one of the proceeding criteria. The Consolidated Appropriations Act, 2021 (Public Law 116-260) (2021 Act), makes available $43,343,000 for new incremental voucher assistance under Section 8(o) of the United States Housing Act of 1937 for use by individuals and families experiencing or at-risk of homelessness; those fleeing or attempting to flee domestic violence, dating violence, sexual assault, and stalking; and veterans and families that include a veteran family member that meets one of the proceeding criteria. The Further Consolidated Appropriations Act, 2022 (Public Law 117-103 (2022 Act) further provides that HUD may waive certain statutory and regulatory provisions to administer the SVs (except for requirements related to tenant rights and protections, rent setting, fair housing, nondiscrimination, labor standards and the environment) upon a finding that any such waivers or alternative requirements are necessary to facilitate the use of funds made available for SVs. This Memorandum of Understanding (MOU) outlines the collaboration and commitment between [insert PHA name] and [insert CoC/VSP name] to pair Stability Vouchers with CoC-funded supportive services; and to collaborate with the CoC/VSP and other stakeholders to develop a prioritization plan for these vouchers. Lead Agency Liaisons: Name and title of PHA staff position: Name and title CoC and/or VSP staff position: 3 If PHA policy in Section 19-VI.B. of this administrative plan states that a copy of the MOU will be attached at the end of this chapter as Exhibit 19-3, you may either fill in the language shown here or replace the text with the PHA’s own MOU, then delete the word sample. If the PHA does not wish to attach its own MOU to the chapter, this statement should be removed from the policy in Section 19-VI.B. 792 19-63 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 II. Individuals and Families Eligibility under the Qualifying Categories In order to be eligible for an SV, an individual or family must meet one of four eligibility categories: • Homeless • At risk of homelessness • Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking • Veterans III. SV Roles and Responsibilities A. PHA Roles and Responsibilities [**The following responsibilities are listed for example purposes. **] 1. Coordinate and consult with the CoC in developing the services and assistance to be offered under the SV services fee. 2. Accept direct referrals for eligible individuals and families through the CoC Coordinated Entry System. 3. Commit a sufficient number of staff and necessary resources to ensure that the application, certification, and voucher issuance processes are completed in a timely manner. 4. Commit a sufficient number of staff and resources to ensure that inspections of units are completed in a timely manner. 5. Designate a staff to serve as the lead SV liaison. 6. Comply with the provisions of this MOU. B. CoC Roles and Responsibilities [**The following responsibilities are listed for example purposes. **] 1. Designate and maintain a lead SV liaison to communicate with the PHA. 2. Refer eligible individuals and families to PHA using the community’s coordinated entry system. 3. Support eligible individuals and households in completing and applying for supportive documentation to accompany admissions application to the PHA (i.e., self-certifications, birth certificate, social security card, etc.). 4. Attend SV participant briefings when needed. 793 19-64 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 5. Assess all households referred for SV for mainstream benefits and supportive services available to support eligible individuals and families through their transition. 6. Identify and provide supportive services to SV families. (While SV participants are not required to participate in services, the CoC should assure that services are available and accessible.) 7. Comply with the provisions of this MOU. IV. CoC-funded supportive services that will be paired with SVs CoCs are encouraged to outline any existing partnerships with health and behavioral health care providers and agencies, state Medicaid agencies and agencies and organizations that may be leveraged to provide ongoing tenancy and wrap-around supportive services for those that may benefit from such services to maintain housing stability. All services provided by the CoC must be outlined in the MOU with the CoC and should demonstrate the community’s strategy to coordinate assistance through available resources. HUD recommends that PHAs and partnering CoCs seek a diverse range of supportive services by partnering with organizations trusted by people experiencing homelessness. V. PHA Adopted Waivers and Alternative Requirements Notice PIH 2022-24 provides [insert PHA name] with authority to adopt certain statutory and regulatory requirements and alternative requirements for Stability Vouchers. [insert PHA name] and [insert CoC/VSP name] have agreed to adopt the following waivers and alternative requirements: [List all waivers and alternative requirements discussed, agreed upon by the PHA and CoC for the administration of SVs] VI. PHA Permissive Prohibition Policies agreed upon by the PHA and CoC [Insert PHA name] in consultation with [insert CoC/VSP name] have agreed to adopt the following permissive prohibitions for the Stability Voucher program: [List any permissive prohibition policies agreed upon by the PHA and CoC] 794 19-65 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 VII. Program Evaluation [Insert PHA name] and [insert CoC /VSP] agree to cooperate with HUD, provide requested data to HUD or HUD-approved contractor delegated the responsibility of program evaluation protocols established by HUD or HUD-approved contractor. Signed By: ________________________________________ ____________________ Public Housing Agency Executive Director Date ________________________________________ ____________________ CoC/VSP Executive Director Date 795 TPS-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 TEMPORARY POLICY SUPPLEMENT EMERGENCY HOUSING VOUCHERS (EHV) INTRODUCTION On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 (ARP) (P.L. 117-2). Section 3202 of the ARP appropriated $5 billion for the creation, administration, and renewal of new incremental emergency housing vouchers (EHVs) and other eligible expenses related to COVID-19. On May 5, 2021, HUD issued Notice PIH 2021-15, which described HUD’s process for allocating approximately 70,000 EHVs to eligible PHAs and set forth the operating requirements for PHAs who administer them. Based on criteria outlined in the notice, HUD notified eligible PHAs of the number of EHVs allocated to their agency, and PHAs were able to accept or decline the invitation to participate in the program. PHAs may not project-base EHVs; EHVs are exclusively tenant-based assistance. All applicable nondiscrimination and equal opportunity requirements apply to the EHV program, including requirements that the PHA grant reasonable accommodations to persons with disabilities, effectively communicate with persons with disabilities, and ensure meaningful access for persons with limited English proficiency (LEP). This chapter describes HUD regulations and PHA policies for administering EHVs. The policies outlined in this chapter are organized into seven sections, as follows: Part I: Funding Part II: Partnering Agencies Part III: Waiting List Management Part IV: Family Eligibility Part V: Housing Search and Leasing Part VI: Use of Funds, Reporting, and Financial Records Except as addressed by this chapter and as required under federal statute and HUD requirements, the general requirements of the HCV program apply to EHVs. 796 TPS-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART I: FUNDING TPS-I.A. FUNDING OVERVIEW The American Rescue Plan Act of 2021 (ARP) provides administrative fees and funding for the costs of administering emergency housing vouchers (EHVs) and other eligible expenses defined in Notice PIH 2021-15. These fees may only be used for EHV administration and other eligible expenses and must not be used for or applied to other PHA programs or vouchers. The PHA must maintain separate financial records from its regular HCV funding for all EHV funding. Housing Assistance Payments (HAP) Funding ARP funding obligated to the PHA as housing assistance payments (HAP) funding may only be used for eligible EHV HAP expenses (i.e., rental assistance payments). EHV HAP funding may not be used for EHV administrative expenses or for the eligible uses under the EHV services fee. The initial funding term will expire December 31, 2022. HUD will provide renewal funding to the PHA for the EHVs on a calendar year (CY) basis commencing with CY 2023. The renewal funding allocation will be based on the PHA’s actual EHV HAP costs in leasing, similar to the renewal process for the regular HCV program. EHV renewal funding is not part of the annual HCV renewal funding formula; EHVs are renewed separately from the regular HCV program. All renewal funding for the duration of the EHV program has been appropriated as part of the ARP funding. Administrative Fee and Funding The EHV program provides administrative fee funding to PHAs for expenses that are not normally eligible under the HCV program, as well as fees designated for the cost of administering the EHV program generally. The following types of fees and funding are allocated as part of the EHV program: • Preliminary fees support immediate start-up costs that the PHA will incur in implementing alternative requirements under EHV, such as outreach and coordination with partnering agencies: - $400 per EHV allocated to the PHA, once the consolidated annual contributions contract (CACC) is amended. - This fee may be used for any eligible administrative expenses related to EHVs. - The fee may also be used to pay for any eligible activities under EHV service fees (TPS- I.B). x Issuing action fees are one-time fees once the voucher is initially leased: - $100 for each EHV initially leased, if the PHA reports the voucher issuance date in Public Housing Information Center–Next Generation (PIC–NG) system within 14 days of voucher issuance or the date the system becomes available for reporting. - Issuing action fees only apply to the initial leasing of the voucher; they are not paid for family moves or to turnover vouchers. - This fee may be used for any eligible administrative expenses related to EHVs. 797 TPS-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • Placement fees support initial lease-up costs and the added cost and effort required to expedite leasing of EHVs: - $500 for each EHV family placed under a HAP contract effective within four months of the effective date of the ACC funding increment; or - $250 for each EHV family placed under a HAP contract effective after four months but less than six months after the effective date of the ACC funding increment. - HUD will determine placement fees in the event of multiple EHV allocations and funding increment effective dates. - Placement fees only apply to the initial leasing of the voucher; they are not paid for family moves or to turnover vouchers. - This fee may be used for any eligible administrative expenses related to EHVs. • Ongoing administrative fees, which are calculated in the same way as the standard HCV program: - PHAs are allocated administrative fees using the full column A administrative fee amount for each EHV under contract as of the first day of each month. - Ongoing EHV administrative fees may be subject to proration in future years, based on available EHV funding. - This fee may be used for any eligible administrative expenses related to EHVs. • Services fees, which are a one-time fee to support PHAs’ efforts to implement and operate an effective EHV services program in its jurisdiction (TPS-I.B): - The fee is allocated once the PHA’s CACC is amended to reflect EHV funding. - The amount allocated is $3,500 for each EHV allocated. - This fee may be used for any eligible administrative expenses related to EHVs. TPS-I.B. SERVICE FEES Services fee funding must be initially used for defined eligible uses and not for other administrative expenses of operating the EHV program. Service fees fall into four categories: • Housing search assistance • Security deposit/utility deposit/rental application/holding fee uses • Owner-related uses • Other eligible uses such as moving expenses or tenant-readiness services The PHA must establish the eligible uses and the parameters and requirements for service fees in the PHA’s administrative plan. HACCC Policy The eligible uses for service fees include: 798 TPS-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Housing search assistance, which may include activities such as, but not limited to, helping a family identify and visit potentially available units during their housing search, helping to find a unit that meets the household’s disability-related needs, providing transportation and directions, assisting with the completion of rental applications and HACCC forms, and helping to expedite the EHV leasing process for the family. Application fees/non-refundable administrative or processing fees/refundable application deposit assistance. HACCC may choose to assist the family with some or all these expenses. Security deposit assistance. The amount of the security deposit assistance may not exceed the lesser of two months’ rent to owner, the maximum security deposit allowed under applicable state and/or local law, the actual security deposit required by the owner or the per-household $3,500 service fee. HACCC reserves the right to pay the security deposit assistance directly to the owner or may pay the assistance to the family. If paid to the family, the PHA will require documentation that the family paid the security deposit. Utility deposit assistance/utility arrears. HACCC may provide utility deposit assistance for some or all of the family’s utility deposit expenses. Assistance can be provided for deposits (including connection fees) required for the utilities to be supplied by the tenant under the lease. HACCC may pay the utility deposit assistance directly to the utility company or may pay the assistance to the family. If paid to the family, HACCC will require documentation the family paid the utility deposit. HACCC will require the utility supplier to return the utility deposit assistance to the family at such time the deposit is returned by the utility supplier (less any amounts retained by the utility supplier). In addition, some families may have large balances with gas, electric, water, sewer, or trash companies that will make it difficult if not impossible to establish services for tenant-supplied utilities. HACCC may also provide the family with assistance to help address these utility arrears to facilitate leasing. Utility deposit assistance returned to HACCC will be used for either services fee eligible uses or other EHV administrative costs, as required by HUD. Moving expenses (including move-in fees and deposits). HACCC may provide assistance for some or all of the family’s reasonable moving expenses when they initially lease a unit with the EHV. HACCC will not provide moving expenses assistance for subsequent moves unless the family is required to move for reasons other than something the family did or failed to do (e.g., HACCC is terminating the HAP contract because the owner did not fulfill the owner responsibilities under the HAP contract or the owner is refusing to offer the family the opportunity to enter a new lease after the initial lease term, as opposed to the family choosing to terminate the tenancy in order to move to another unit), or a family has to move due to domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking. Tenant-readiness services. HACCC may use fees to help mitigate barriers that individual families may face in renting a unit with an EHV, such as negative credit, lack of credit, negative rental or utility history, or to connect the family to other community resources (including COVID-related resources) that can assist with rental arrears. Essential household items. HACCC may use services fee funding to assist the family with some or all of the costs of acquiring essential household items such as tableware, cooking equipment, beds or bedding, and essential sanitary products such as soap and toiletries. 799 TPS-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Any services fee assistance that is returned to HACCC after its initial or subsequent use may only be applied to the eligible services fee uses defined in Notice PIH 2021-15 (or subsequent notice) or other EHV administrative costs. Any amounts not expended for these eligible uses when the HACCC’s EHV program ends must be remitted to HUD. 800 TPS-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART II: PARTNERING AGENCIES TPS-II.A. CONTINUUM OF CARE (COC) PHAs that accept an allocation of EHVs must work with community partners to determine the best use and targeting for EHVs along with other resources available in the community. PHAs are required to enter into a Memorandum of Understanding (MOU) with the Continuum of Care (CoC) to establish a partnership for the administration of EHVs. HACCC Policy The PHA has entered into an MOU with the Department of Health, Housing and Homeless Services as custodian of the Continuum of Care of Contra Costa County to assist and provide services on behalf of EHV participating households. See Exhibit TPS-1 for a copy of the MOU. TPS-II.B. OTHER PARTNERING ORGANIZATIONS The PHA may, but is not required to, partner with other organizations trusted by persons experiencing homelessness, such as victim services providers (VSPs) and other community partners. If the PHA chooses to partner with such agencies, the PHA must either enter into an MOU with the partnering agency or the partnering agency may be added to the MOU between the PHA and CoC. HACCC Policy HACCC has not added any third-party service providers to the MOU between the HACCC and CoC as contributing partners to assist and provide services on behalf of EHV participating households at this time. See Exhibit TPS-1 for a copy of the MOU. TPS-II.C. REFERRALS CoC and Partnering Agency Referrals The primary responsibility of the CoC under the MOU with the PHA is to make direct referrals of qualifying individuals and families to the PHA. The PHA must generally refer a family that is seeking EHV assistance directly from the PHA to the CoC or other referring agency for initial intake, assessment, and possible referral for EHV assistance. Partner CoCs are responsible for determining whether the family qualifies under one of the four eligibility categories for EHVs. The CoC or other direct referral partner must provide supporting documentation to the PHA of the referring agency’s verification that the family meets one of the four eligible categories for EHV assistance. HACCC Policy The CoC or partnering agency must establish and implement a system to identify EHV- eligible individuals and families within the agency’s caseload and make referrals to the HACCC. The CoC or other partnering agency must certify that the EHV applicants they refer to HACCC meet at least one of the four EHV eligibility criteria. HACCC will maintain 801 TPS-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 a copy of the referral or certification from the CoC or other partnering agency in the participant’s file along with other eligibility paperwork. Homeless service providers shall use the certification form found in Exhibit TPS-2 of this chapter. Victim services providers shall use the certification form found in Exhibit TPS-3 of this chapter when identifying eligible families who qualify as victims of human trafficking. As part of the MOU, HACCC and CoC or other partnering agency will identify staff positions to serve as lead EHV liaisons. These positions will be responsible for transmission and acceptance of referrals. The CoC or partnering agency must commit sufficient staff and resources to ensure eligible individuals and families are identified and determined eligible in a timely manner. HACCC liaison responsible for acceptance of referrals will contact the CoC or partnering agency liaison via email indicating the number of vouchers available and requesting an appropriate number of referrals. No more than five business days from the date the CoC or partnering agency receives this notification, the CoC or partnering agency liaison will provide HACCC with a list of eligible referrals including the name, address, and contact phone number for each adult individual who is being referred; a completed release form for each adult family member; and a written certification for each referral indicating they are EHV-eligible. HACCC and CoC have determined that the best approach to utilize the EHVs is to create better flow and mobility within the supportive housing and sheltered community. Households who were initially directed to Permanent Supportive Housing (PSH) through the Coordinated Entry System or are eligible for Moving On prioritization would best be served ahead of all other categories. Households that are identified as no longer needing a higher level of care or services and ready to transition to a permanent assisted housing option using the EHV would be prioritized to move out of the PSH/RRH units and make them available for other families who need those service-enriched housing options. This would increase the flow of housing opportunities within the CoC and would also open up PSH/RRH slots for those who need the level of services and subsidy that come with PSH/RRH. In addition, as a third priority category, HACCC and the CoC will direct EHV to eligible homeless families pursuant to the HUD definition of homelessness indicated above. A. Moving On As part of its strategic priority to end homelessness, the Continuum of Care (CoC) has adopted Moving On strategies in the community for clients in permanent supportive housing (PSH) who may no longer need or want the intensive services offered in PSH but continue to need assistance to maintain their housing. Moving On strategies challenge a community to create partnerships between the CoC and mainstream housing programs such as the Housing Choice Voucher (HCV) program, and HUD-funded multifamily housing providers. Moving On enables tenants to move on from supportive housing by offering affordable housing and connections to other resources. This may include a physical move to a new home, or a ‘transition in place’ arrangement where the services move on to another tenant. The decision to pursue Moving On is always voluntary and driven by the tenant. 802 TPS-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 B. Permanent Supportive Housing Permanent supportive housing is an intervention that combines affordable housing assistance with voluntary support services to address the needs of chronically homeless people. The services are designed to build independent living and tenancy skills and connect people with community-based health care, treatment and employment services. Permanent supportive housing is permanent housing with indefinite leasing or rental assistance paired with supportive services to assist homeless persons with a disability or families with an adult or child member with a disability achieve housing stability. C. Shelters Shelters serve households who are literally homeless and offer an array of housing and case management services depending on the shelter provider. Many participants of shelter programs have income and have reached stability but need deeply affordable and subsidized housing. The lack of affordable housing options presents significant barriers for those in shelter to rapidly exit, and thereby reduces the number of beds available for new clients. Those who remain in the shelter for past 180 days are considered long term stayers and have significant challenges exiting to permanent housing. Prioritization As a result of defining the criteria of eligible households, the following prioritization system has been developed to memorialize the order in which households will be considered for an EHV. Category 1 – PSH Moving On Qualifies under EHV Eligibility Category 4 Recently Homeless: Section 8 defines this as individuals and families who have previously been classified by the COC as homeless, but are not currently homeless as a result of homelessness assistance (financial or services), temporary rental assistance, etc. and where the COC or its designee determines that the loss of such assistance would result in a return to homelessness. Examples of such households may include (but are not limited to) participants in PSH. 1. PSH/Moving On + DV criteria (Fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking) 2. PSH/Moving On Category 2 – Homeless/Sheltered Long Stayers Qualifies under EHV Eligibility Category 1: Homeless. 3. Homeless - DV criteria AND highest length of time at shelter, basic income, needs few to no services (Long Term Stayer) 4. Homeless - AND highest length of time at shelter, basic income, needs few to no services (Long Term Stayer) 803 TPS-9 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 TPS-II.D. REFERRAL PROCESS HACCC shall notify the CoC’s Coordinated Entry System Administrator when EHVs become available. Within five (5) business days of being notified of the availability of EHVs, the CoC shall make every effort to make a referral to HACCC’s point of contact. For PSH clients that are interested in and eligible for Emergency Housing Vouchers through the Moving On Program, CE will convene the Housing Placement Committee to review the client’s case history to discuss the key indicators of the client’s capacity for the Moving On program. Among the indicators to be considered are as follows: • Housing History • Financial Stability • Service Needs and Supports (includes connections to health, mainstream resources, and family or other natural supports) • Household Composition Weighing these indicators, the Housing Placement Committee will make a determination as to whether the client should be recommended for an Emergency Housing Voucher. Recommended clients will be referred to the Housing Authority of Contra Costa County by CE once all eligibility documentation has been received. Any and all grievances regarding the CoC process will be handled within the grievance procedures outlined in the CoC’s written standards while any grievances regarding denial to participate or termination of assistance in the EHV Program shall be addressed through the HACCC Administrative Plan for the Housing Choice Voucher Program. CE will only send HACCC referrals for the number of spaces that are open and will not send more than one referral per opening, unless requested by HACCC. Offers of Assistance with CoC Referral Referrals for EHVs must come through the CoC’s Coordinated Entry (CE) system. However, HACCC may make an EHV available without a referral from the CoC or other partnering organization in order to facilitate an emergency transfer under VAWA in accordance with the HACCC’s Emergency Transfer Plan (ETP) in Chapter 16. HACCC must also take direct referrals from outside the CoC if: • The CoC does not have a sufficient number of eligible families to refer to HACCC; or • The CoC does not identify families that may be eligible for EHV assistance because they are fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking or human trafficking. In the latter two exceptions, the PHA must enter into a partnership to receive direct referrals from another entity (e.g., a homeless service provider, VSP, or anti-trafficking service provider if the CE system is not referring victims fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking). PHAs should work with the CoC to come up with an alternative referral system that allows for prioritization according to the standards set out in the MOU and the referring organization and that will transition easily to the CoC’s CE system when it comes online or is able to begin making referrals. 804 TPS-10 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If at any time HACCC is not receiving enough referrals or is not receiving referrals in a timely manner from the CoC or other partner referral agencies (or HACCC and CoC cannot identify any such alternative referral partner agencies), HUD may permit HACCC on a temporary or permanent basis to take EHV applications directly from applicants and admit eligible families to the EHV program in lieu of or in addition to direct referrals in those circumstances. VAWA Direct Referral Pursuant to guidance in PIH 2021-15, HACCC will also accept direct referrals for VAWA- eligible households who may be fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking. HACCC shall execute separate MOUs with these entities to ensure proper HUD compliance. In addition, HACCC shall inform the CoC, through CES, in the event that an EHV household is assisted directly so that proper tracking and services are made available to the household. 805 TPS-11 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART III: WAITING LIST MANAGEMENT TPS-III. A. HCV WAITING LIST The regulation that requires the PHA to admit applicants as waiting list admissions or special admissions in accordance with admission policies in Chapter 4 does not apply to PHAs operating the EHV program. Direct referrals are not added to the PHA’s HCV waiting list. The PHA must inform families on the HCV waiting list of the availability of EHVs by, at a minimum, either by posting the information to their website or providing public notice in their respective communities in accordance with the requirements listed in Notice PIH 2021-15. HACCC Policy HACCC will give public notice by publishing, on its website, a description of the eligible populations to which EHVs are limited; • Clearly state that the availability of these EHVs is managed through a direct referral process; • Advise the family to contact the CoC (or any other HACCC referral partner, if applicable) if the family believes they may be eligible for EHV assistance. HACCC will ensure effective communication with persons with disabilities, including those with vision, hearing, and other communication-related disabilities in accordance with Chapter 2. HACCC will also take reasonable steps to ensure meaningful access for persons with limited English proficiency (LEP) in accordance with Chapter 2. TPS-III.B. EHV WAITING LIST The HCV regulations requiring the PHA to operate a single waiting list for admission to the HCV program do not apply to PHAs operating the EHV program. Instead, when the number of applicants referred by the CoC or partnering agency exceeds the EHVs available, the PHA must maintain a separate waiting list for EHV referrals, both at initial leasing and for any turnover vouchers that may be issued prior to September 30, 2023. Further, the EHV waiting list is not subject to PHA policies in Chapter 4 regarding opening and closing the HCV waiting list. The PHA will work directly with its CoC and other referral agency partners to manage the number of referrals and the size of the EHV waiting list. HACCC Policy HACCC shall not establish and operate a separate waiting list for EHV eligible families for whom a voucher is not readily available. The CoC through CES will only refer applicants for available vouchers. TPS-III.C. PREFERENCES HCV Waiting List Preferences 806 TPS-12 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If local preferences are established by the PHA for HCV, they do not apply to EHVs. However, if the PHA has a homeless preference or a VAWA preference for the HCV waiting list, the PHA must adopt additional policies related to EHVs in accordance with Notice PIH 2021-15. HACCC Policy HACCC does not offer either a homeless or a VAWA preference for the HCV waiting list. EHV Waiting List Preferences With the exception of a residency preference, the PHA may choose, in coordination with the CoC and other referral partners, to establish separate local preferences for EHVs. The PHA may, however, choose to not establish any local preferences for the EHV waiting list. HACCC Policy HACCC has not adopted any preferences for the EHV waiting list because it is choosing not to maintain an EHV wait list. CES will provide priority for households fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking or human trafficking. 807 TPS-13 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART IV: FAMILY ELIGIBILTY TPS-IV.A. OVERVIEW The CoC or referring agency determines whether the individual or family meets any one of the four eligibility criteria described in Notice PIH 2021-15 and then refers the family to the PHA. The PHA determines that the family meets other eligibility criteria for the HCV program, as modified for the EHV program and outlined below. TPS-IV.B. REFERRING AGENCY DETERMINATION OF ELIGIBLITY In order to be eligible for an EHV, an individual or family must meet one of four eligibility criteria: • Homeless as defined in 24 CFR 578.3; • At risk of homelessness as defined in 24 CFR 578.3; • Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking (as defined in Notice PIH 2021-15), or human trafficking (as defined in the 22 U.S.C. Section 7102); or • Recently homeless and for whom providing rental assistance will prevent the family’s homelessness or having high risk of housing instability as determined by the CoC or its designee in accordance with the definition in Notice PIH 2021-15. As applicable, the CoC or referring agency must provide documentation to the PHA of the referring agency’s verification that the family meets one of the four eligible categories for EHV assistance. The PHA must retain this documentation as part of the family’s file. Detailed definitions of the four eligibility criteria can be found in the authorizing HUD Notice PIH 2021-15. TPS-IV.C. PHA SCREENING Overview HUD waived 24 CFR 982.552 and 982.553 in part for the EHV applicants and established alternative requirement for mandatory and permissive prohibitions of admissions. Except where applicable, PHA policies regarding denials in Chapter 3 of this policy do not apply to screening individuals and families for eligibility for an EHV. Instead, the EHV alternative requirement listed in this section will apply to all EHV applicants. The mandatory and permissive prohibitions listed in Notice PIH 2021-15 and in this chapter, however, apply only when screening the individual or family for eligibility for an EHV. When adding a family member after the family has been placed under a HAP contract with EHV assistance, the regulations at 24 CFR 982.551(h)(2) apply. Other than the birth, adoption, or court- awarded custody of a child, the PHA must approve additional family members and may apply its regular HCV screening criteria in Chapter 3 in doing so. Mandatory Denials Under alternative requirements for the EHV program, mandatory denials for EHV 808 TPS-14 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 applicants include: • 24 CFR 982.553(a)(1)(ii)(C), which prohibits admission if any household member has ever been convicted of drug-related criminal activity for manufacture or production of methamphetamine on the premises of federally assisted housing. • 24 CFR 982.553(a)(2)(i), which prohibits admission to the program if any member of the household is subject to a Tier 3: Lifetime registration requirement under a state sex offender registration program. The PHA must deny admission to the program if any member of the family fails to sign and submit consent forms for obtaining information as required by 24 CFR 982.552(b)(3) but should notify the family of the limited EHV grounds for denial of admission first. HACCC Policy While HACCC will deny admission to the program if any adult member (or head of household or spouse, regardless of age) fails to sign and submit consent forms, HACCC will first notify the family of the limited EHV grounds for denial of admission as part of the notice of denial that will be mailed to the family. In addition, HACCC shall deny admission to any household with Net Family Assets of over $100,000 or has a present ownership interest in, a legal right to reside in, and the effective legal authority to sell the real property (based on laws of the State or locality in which the property is located) that is suitable for occupancy by the family as a residence. Permissive Denial Notice PIH 2021-15 lists permissive prohibitions for which the PHA may, but is not required to, deny admission to EHV families. The notice also lists prohibitions that, while allowable under the HCV program, may not be used to deny assistance for EHV families. If the PHA intends to establish permissive prohibition policies for EHV applicants, the PHA must first consult with its CoC partner to understand the impact that the proposed prohibitions may have on referrals and must take the CoC’s recommendations into consideration. HACCC Policy In consultation with the CoC, HACCC will apply permissive prohibitions to the screening of EHV applicants. Determinations using permissive prohibitions will be made based on an individualized assessment of relevant mitigating information in accordance with policies in Section 3-III.E. HACCC will establish the following permissive prohibitions: If HACCC determines that any household member is currently engaged in, or has engaged in within the previous 12 months: • Violent criminal activity • Other 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 809 TPS-15 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • If the family engaged in or threatened abusive or violent behavior toward HACCC personnel within the previous 12 months. • HACCC will also deny assistance to household members already receiving assistance from another program in accordance with Section 9.h. of Notice PIH 2021-15. Prohibitions based on criminal activity for the eligible EHV populations regarding drug possession will be considered apart from criminal activity against persons (i.e., violent criminal activity). In compliance with PIH 2021-15, HACCC will not deny an EHV applicant admission regardless of whether: • Any member of the family has been evicted from federally assisted housing in the last five years; • A PHA has ever terminated assistance under the program for any member of the family; • The family currently owes rent or other amounts to HACCC or to another PHA in connection with Section 8 or public housing assistance under the 1937 Act; • The family has not reimbursed any PHA for amounts paid to an owner under a HAP contract for rent, damages to the unit, or other amounts owed by the family under the lease; • The family breached an agreement with HACCC to pay amounts owed to a PHA, or amounts paid to an owner by a PHA; • The family would otherwise be prohibited admission under alcohol abuse standards established by HACCC in accordance with 24 CFR 982.553(a)(3); • HACCC determines that any household member is currently engaged in or has engaged in during a reasonable time before the admission, drug-related criminal activity. TPS-IV.D. INCOME VERIFICATION AT ADMISSION Self-Certification at Admission The requirement to obtain third-party verification of income in accordance with Notice PIH 2018- 18 does not apply to the EHV program applicants at admission, and alternatively, PHAs may consider self-certification the highest form of income verification at admission. As such, PHA policies related to the verification of income in Section 7-I.B. do not apply to EHV families at admission. Instead, applicants must submit an affidavit attesting to their reported income, assets, expenses, and other factors that would affect an income eligibility determination. Additionally, applicants may provide third-party documentation that represents the applicant’s income within the 60-day period prior to admission or voucher issuance but is not dated within 60 days of the PHA’s request. HACCC Policy 810 TPS-16 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Any documents used for verification must be the original (not photocopies) and dated within the 60-day period prior to admission. The documents must not be damaged, altered, or in any way illegible. Printouts from webpages are considered original documents. Any family self-certifications must be made in a format acceptable to HACCC and must be signed by the family member whose information or status is being verified. HACCC will incorporate additional procedures to remind families of the obligation to provide true and complete information in accordance with Chapter 14. HACCC will address any material discrepancies (i.e., unreported income or a substantial difference in reported income) that may arise later. HACCC shall offer the family a repayment agreement in accordance with Chapter 16. If the family fails to repay the excess subsidy, HACCC will terminate the family’s assistance in accordance with the policies in Chapter 12. Any applicable exceptions made under the CARES Act for the “regular” voucher program, will be applied to EHV participants. Recently Conducted Income Determinations PHAs may accept income calculations and verifications from third-party providers or from an examination that the PHA conducted on behalf of the family for another subsidized housing program in lieu of conducting an initial examination of income as long as: • The income was calculated in accordance with rules outlined at 24 CFR Part 5 and within the last six months; and • The family certifies there has been no change in income or family composition in the interim. HACCC Policy HACCC will accept income calculations and verifications from third-party providers provided they meet the criteria outlined above. The family certification must be made in a format acceptable to HACCC and must be signed by all adult family members whose information or status is being verified. At the time of the family’s annual reexamination HACCC shall conduct the annual reexamination of income as outlined at 24 CFR 982.516 and HACCC’s policies in Chapter 11. EIV Income Validation Once HUD makes the EIV data available to PHAs under this waiver and alternative requirement, the PHA must: • Review the EIV Income and Income Validation Tool (IVT) reports to confirm and validate family-reported income within 90 days of the PIC submission date; • Print and maintain copies of the EIV Income and IVT Reports in the tenant file; and • Resolve any income discrepancy with the family within 60 days of the EIV Income or IVT Report dates. 811 TPS-17 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Prior to admission, PHAs must continue to use HUD’s EIV system to search for all household members using the Existing Tenant Search in accordance with PHA policies in Chapter 3. If a PHA later determines that an ineligible family received assistance, the PHA must take steps to terminate that family from the program in accordance with Chapter 12. TPS-IV.E. SOCIAL SECURITY NUMBER AND CITIZENSHIP STATUS VERIFICATION For the EHV program, the PHA is not required to obtain and verify SSN documentation and documentation evidencing eligible noncitizen status before admitting the family to the EHV program. Instead, PHAs may adopt policies to admit EHV applicants who are unable to provide the required SSN or citizenship documentation during the initial eligibility determination. As an alternative requirement, such individuals must provide the required documentation within 180 days of admission to be eligible for continued assistance, pending verification, unless the PHA provides an extension based on evidence from the family or confirmation from the CoC or other partnering agency that the family has made a good- faith effort to obtain the documentation. If a PHA determines that an ineligible family received assistance, the PHA must take steps to terminate that family from the program. HACCC Policy HACCC will not admit EHV applicants who are unable to provide the required SSN or citizenship documentation during the initial eligibility determination. HACCC will follow existing policies regarding the disclosure and documentation of these two factors of eligibility. HACCC may provide an additional 60-day extension based on evidence from the family or confirmation from the CoC or other partnering agency that the family has made a good- faith effort to obtain the documentation. If HACCC determines that an ineligible family received assistance, HACCC will take steps to terminate that family from the program in accordance with policies in Chapter 12. Any applicable exceptions made under the CARES Act for the “regular” voucher program, will be applied to EHV participants. TPS-IV.F. AGE AND DISABILITY VERIFICATION PHAs may accept self-certification of date of birth and disability status if a higher level of verification is not immediately available. If self-certification is used, the PHA must obtain a higher level of verification within 90 days of admission or verify the information in EIV. If a PHA determines that an ineligible family received assistance, the PHA must take steps to terminate that family from the program. HACCC Policy HACCC will follow existing policies regarding the disclosure and documentation of birth or disability status. Any applicable exceptions made under the CARES Act for the “regular” voucher program, will be applied to EHV participants. 812 TPS-18 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If the PHA determines that an ineligible family received assistance, the PHA will take steps to terminate that family from the program in accordance with policies in Chapter 12. TPS-IV.G. INCOME TARGETING The PHA must determine income eligibility for EHV families in accordance with 24 CFR 982.201 and PHA policy in Chapter 3; however, income targeting requirements do not apply for EHV families. The PHA may still choose to include the admission of extremely low-income EHV families in its income targeting numbers for the fiscal year in which these families are admitted. HACCC Policy HACCC will not include the admission of extremely low-income EHV families in its income targeting numbers for the fiscal year in which these families are admitted. 813 TPS-19 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART V: HOUSING SEARCH AND LEASING TPS-V.A. INITIAL VOUCHER TERM Unlike the standard HCV program, which requires an initial voucher term of at least 60 days, EHV vouchers must have an initial search term of at least 120 days. PHA policies on extensions as outlined in Section 5-II.E. will apply. HACCC Policy All EHVs will have an initial term of 120 calendar days. The family must submit a Request for Tenancy Approval and proposed lease within the 120- day period unless the PHA grants an extension. An extension of the search period will be determined on a case-by-case basis. All households will be asked to document their housing search to confirm that they made efforts to locate housing before any extension will be considered or granted. TPS-V.B. HOUSING SEARCH ASSISTANCE The PHA must ensure housing search assistance is made available to EHV families during their initial housing search. The housing search assistance may be provided directly by the PHA or through the CoC or another partnering agency or entity. At a minimum, housing search assistance must: • Help individual families identify potentially available units during their housing search, including physically accessible units with features for family members with disabilities, as well as units in low-poverty neighborhoods; • Provide transportation assistance and directions to potential units; • Conduct owner outreach; • Assist with the completion of rental applications and PHA forms; and • Help expedite the EHV leasing process for the family HACCC Policy As identified in the MOU between HACCC and CoC, the following housing search assistance will be provided to each EHV family either directly or through a third party contracted by HACCC: HACCC’s Housing Search Assistance shall include the following: • Conduct owner outreach in accordance with policies in Chapter 13 • Provide directions to potential units as part of the EHV briefing packet • Expedite the EHV leasing process for the family to the extent practicable and in accordance with policies in this chapter 814 TPS-20 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 • At least every 30 days, conduct proactive check-ins via email and telephone with families who are searching with an EHV and remind them of their voucher expiration date • Assign a dedicated landlord liaison for EHV voucher families The CoC shall further assist with the following: • Help families identify potentially available units during their housing search, including physically accessible units with features for family members with disabilities, as well as units in low-poverty neighborhoods • Provide transportation assistance to potential units when available • Assist the family with the completion of rental applications and PHA forms TPS-V.C. HQS PRE-INSPECTIONS To expedite the leasing process, PHAs may pre-inspect available units that EHV families may be interested in leasing in order to maintain a pool of eligible units. HACCC Policy HACCC will not conduct any pre-inspections of available units. HACCC will make every effort to fast-track the inspection process, including adjusting the normal inspection schedule for any required re-inspections. TPS-V.D. INITIAL LEASE TERM Unlike in the standard the HCV program, EHV voucher holders may enter into an initial lease that is for less than 12 months, regardless of the PHA policy in Section 9-I.E., Term of Assisted Tenancy. TPS-V.E. PORTABILITY The normal HCV portability procedures and requirements outlined in Chapter 10 generally apply to EHVs. Exceptions are addressed below. Nonresident Applicants Under EHV, applicant families may move under portability even if the family did not have legal residency in the jurisdiction of the initial PHA when they applied, regardless of PHA policy in Section 10-II.B. Billing and Absorption A receiving PHA cannot refuse to assist an incoming EHV family, regardless of whether the PHA administers EHVs under its own ACC. • If the EHV family moves under portability to another PHA that administers EHVs under its own ACC: - The receiving PHA may only absorb the incoming EHV family with an EHV (assuming it has an EHV voucher available to do so). 815 TPS-21 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 - If the PHA does not have an EHV available to absorb the family, it must bill the initial PHA. The receiving PHA must allow the family to lease the unit with EHV assistance and may not absorb the family with a regular HCV when the family leases the unit. - Regardless of whether the receiving PHA absorbs or bills the initial PHA for the family’s EHV assistance, the EHV administration of the voucher is in accordance with the receiving PHA’s EHV policies. • If the EHV family moves under portability to another PHA that does not administer EHV under its own ACC, the receiving PHA may absorb the family into its regular HCV program or may bill the initial PHA. Family Briefing In addition to the applicable family briefing requirements at 24 CFR 982.301(a)(2) as to how portability works and how portability may affect the family’s assistance, the initial PHA must inform the family how portability may impact the special EHV services and assistance that may be available to the family. The initial PHA is required to help facilitate the family’s portability move to the receiving PHA and inform the family of this requirement in writing, taking reasonable steps to ensure meaningful access for persons with limited English proficiency (LEP). HACCC Policy In addition to following HACCC’s policy on briefings in Chapter 5, as part of the briefing packet for EHV families, the PHA will include a written notice that the PHA will assist the family with moves under portability. For limited English proficient (LEP) applicants, HACCC provides interpretation services in accordance with the LEP plan (See Chapter 2). Coordination of Services If the portability move is in connection with the EHV family’s initial lease-up, the receiving PHA and the initial PHA must consult and coordinate on the EHV services and assistance that will be made available to the family. HACCC Policy For EHV families who are exercising portability, when HACCC contacts the receiving PHA in accordance with Section 10-II.B. Preapproval Contact with Receiving PHA, HACCC will consult and coordinate with the receiving PHA to ensure there is no duplication of EHV services and assistance and ensure the receiving PHA is aware of the maximum amount of services fee funding that HACCC may provide to the receiving PHA on behalf of the family. Services Fee Standard portability billing arrangements apply for HAP and ongoing administrative fees for EHV families. For service fees funding, the amount of the service fee provided by the initial PHA may not exceed the lesser of the actual cost of the services and assistance provided to the family by the receiving 816 TPS-22 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PHA or $1,750, unless the initial PHA and receiving PHA mutually agree to change the $1,750 cap. Service fees are paid as follows: • If the receiving PHA, in consultation and coordination with the initial PHA, will provide eligible services or assistance to the incoming EHV family, the receiving PHA may be compensated for those costs by the initial PHA, regardless of whether the receiving PHA bills or absorbs. • If the receiving PHA administers EHVs, the receiving PHA may use its own services fee and may be reimbursed by the initial PHA, or the initial PHA may provide the services funding upfront to the receiving PHA for those fees and assistance. • If the receiving PHA does not administer EHVs, the initial PHA must provide the services funding upfront to the receiving PHA. Any amounts provided to the receiving PHA that are not used for services or assistance on behalf of the EHV family must promptly be returned by the receiving PHA to the initial PHA. Placement Fee/Issuance Reporting Fee If the portability lease-up qualifies for the placement fee/issuance reporting fee, the receiving PHA receives the full amount of the placement component of the placement fee/issuing reporting fee. The receiving PHA is eligible for the placement fee regardless of whether the receiving PHA bills the initial PHA or absorbs the family into its own program at initial lease-up. The initial PHA qualifies for the issuance reporting component of the placement fee/issuance reporting fee, as applicable. TPS-V.F. PAYMENT STANDARDS Payment Standard Schedule For the EHV program, HUD has waived the regulation requiring a single payment standard for each unit size. Instead, the PHA may, but is not required to, establish separate higher payment standards for EHVs. Lower EHV payment standards are not permitted. If the PHA is increasing the regular HCV payment standard, the PHA must also increase the EHV payment standard if it would be otherwise lower than the new regular HCV payment standard. The separate EHV payment standard must comply with all other HCV requirements with the exception of the alternative requirements discussed below. Further, if the PHA chooses to establish higher payments standards for EHVs, HUD has provided other regulatory waivers: • Defining the “basic range” for payment standards as between 90 and 120 percent of the published Fair Market Rent (FMR) for the unit size (rather than 90 to 110 percent). • Allowing a PHA that is not in a designated Small Area FMR (SAFMR) area or has not opted to voluntarily implement SAFMRs to establish exception payment standards for a ZIP code area above the basic range for the metropolitan FMR based on the HUD published SAFMRs. The PHA may establish an exception payment standard up to 120 percent (as opposed to 110 percent) of the HUD published Small Area FMR for that ZIP code area. The exception payment standard must apply to the entire ZIP code area. - The PHA must notify HUD if it establishes an EHV exception payment standard based on the SAFMR. 817 TPS-23 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 HACCC Policy HACCC will implement higher payment standards for EHVs. The EHV payment standards will be set at 110% of the HUD-published Fair Market Rent (FMR). At no time will the EHV payment standards fall below the HCV payment standards. If HACCC increases the HCV payment standard, HACCC will also increase the EHV payment standard if it would be otherwise lower than the new regular HCV payment standard. Rent Reasonableness All rent reasonableness requirements apply to EHV units, regardless of whether the PHA has established an alternative or exception EHV payment standard. Increases in Payment Standards The requirement that the PHA apply increased payment standards at the family’s first regular recertification on or after the effective date of the increase does not apply to EHV. The PHA may, but is not required to, establish an alternative policy on when to apply the increased payment standard, provided the increased payment standard is used to calculate the HAP no later than the effective date of the family’s first regular reexamination following the change. HACCC Policy HACCC will not establish an alternative policy for increases in the payment standard. HACCC policy in Section 11-III.B. governing increases in payment standards will apply to EHV. TPS-V.G. TERMINATION OF VOUCHERS After September 30, 2023, a PHA may not reissue EHVs when assistance for an EHV- assisted family ends. This means that when an EHV participant (a family that is receiving rental assistance under a HAP contract) leaves the program for any reason, the PHA may not reissue that EHV to another family unless it does so no later than September 30, 2023. If an applicant family that was issued the EHV is unsuccessful in finding a unit and the EHV expires after September 30, 2023, the EHV may not be reissued to another family. All EHVs under lease on or after October 1, 2023, may not under any circumstances be reissued to another family when the participant leaves the program for any reason. An EHV that has never been issued to a family may be initially issued and leased after September 30, 2023, since this prohibition only applies to EHVs that are being reissued upon turnover after assistance to a family has ended. However, HUD may direct PHAs administering EHVs to cease leasing any unleased EHVs if such action is determined necessary by HUD to ensure there will be sufficient funding available to continue to cover the HAP needs of currently assisted EHV families. As explained in Notice 2023-14, issued on June 29, 2023, HUD is identifying whether a voucher issuance is a turnover voucher or a voucher that has never been leased by counting the number of cumulative EHV lease-ups. (Note that cumulative leased vouchers is equal to all households leased since the start of the EHV program—this includes households that have left the program.) 818 TPS-24 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Once a PHA’s total cumulative leased EHV count reaches their total EHV allocation of the consolidated annual contributions contract (EHV-CACC), any EHV issuance is considered a reissuance. PHAs that have reached their cumulative EHV lease-up count may not reissue any EHV voucher after September 30, 2023. If a PHA has not reached its EHV-CACC in cumulative leased vouchers, the PHA may continue to issue vouchers to eligible households after September 30, 2023, until the cumulative leased vouchers equal the number of EHVs currently under the PHA’s EHV- CACC, or until directed by HUD to stop issuing EHVs. If a PHA is reallocated additional EHVs, these EHVs are considered never leased and may be issued. PHAs must adjust their EHV voucher issuances according to their most recent EHV success rate, i.e., the likelihood that the voucher-holder will successfully secure an EHV lease. PHAs can consider evaluating their success rate similar to the EHV dashboard that provides a 180-day lease rate. For example, the PHA calculates that 50 percent of recent EHV voucher holders successfully establish an EHV lease in 180 days; therefore, their EHV 180-day success rate is 50 percent. EXAMPLES 1. As of October 1, 2023, a PHA has cumulatively leased 60 of its 100 EHV allocation under their EHV-CACC. The PHA may continue to issue and lease the remaining 40 EHVs that have never been leased. 2. As of October 1, 2023, a PHA has cumulatively leased 80 of its 100 EHV allocation and has a success rate of 50 percent. Therefore, the PHA may have no more than 40 families with a voucher searching for a unit, which – considering a 180-day success rate – would equate to 20 new leases, and thus a fully leased program. If these voucher holders do not equate to 20 new leases, the PHA may continue to issue vouchers, (considering a 180-day success rate) until the EHV-CACC limit is reached. EHV participants may still move (including under portability) after September 30, 2023. The the termination of vouchers upon turnover provision does not impact an individual or family’s ability to move within the PHA’s jurisdiction or their ability to move under the portability procedures to another PHA’s jurisdiction. 819 TPS-25 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PART VI: USE OF FUNDS, REPORTING, AND FINANCIAL RECORDS EHV funds allocated to HACCC for HAP (both funding for the initial allocation and HAP renewal funding) may only be used for eligible EHV HAP purposes. EHV HAP funding obligated to HACCC may not be used for EHV administrative expenses or the other EHV eligible expenses under this notice. Likewise, EHV administrative fees and funding obligated to HACCC are to be used for those purposes and must not be used for HAP. The appropriated funds for EHVs are separate from the regular HCV program and may not be used for the regular HCV program but may only be expended for EHV eligible purposes. EHV HAP funds may not roll into the regular HCV restricted net position (RNP) and must be tracked and accounted for separately as EHV RNP. EHV administrative fees and funding for other eligible expenses permitted by Notice PIH 2021-15 may only be used in support of the EHVs and cannot be used for regular HCVs. EHV funding may not be used for the repayment of debts or any amounts owed to HUD by HUD program participants including, but not limited to, those resulting from Office of Inspector General (OIG), Quality Assurance Division (QAD), or other monitoring review findings. HACCC must comply with EHV reporting requirements in the Voucher Management System (VMS) and Financial Data Schedule (FDS) as outlined in Notice PIH 2021-15. HACCC must maintain complete and accurate accounts and other records for the program and provide HUD and the Comptroller General of the United States full and free access to all accounts and records that are pertinent the administration of the EHVs in accordance with the HCV program requirements at 24 CFR 982.158. 820 TPS-26 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Exhibit TPS-1: MEMORANDUM OF UNDERSTANDING - (MOU) Memorandum of Understanding Emergency Housing Vouchers (EHV) Rental Assistance Program This Memorandum of Understanding (MOU) has been created and entered into on July 15, 2021 between the Housing Authority of the County of Contra Costa (HACCC) and the Contra Costa County Department of Health, Housing and Homeless Services (H3) in their capacity as administrators for the County Continuum of Care. I. Introduction and Goals: I. HACCC and CoC’s commitment to administering the EHVs in accordance with all program requirements. II. HACCC goals and standards of success in administering the program. 1. Increase the flow of households in and out of homeless shelters, Moving On, Rapid Rehousing and Permanent Supportive Housing situations by making permanent assisted housing options available to households ready to live independently. 2. Streamline solutions to victims who are fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking. 3. Increase the number of households placed in permanent housing from shelters, RRH, PSH or DV situations. 4. Full Utilization of allocated vouchers. III. Identification of staff position at the HACCC and CoC who will serve as the lead EHV liaisons. Lead HCV Liaison: Ingrid Layne, Director of Assisted Housing Programs The Lead HCV Liaison shall ensure that all program requirements are being met including referral and intake of eligible households; issuance of Emergency Housing Vouchers; Providing housing search assistance to certified households; inspection of all dwelling units at initial and annual certifications; processing payments to landlords and providing on-going monitoring of participants for program compliance. Name and title of CoC staff position: Shelby Ferguson, Coordinated Entry Manager – Department of Health, Housing and Homeless Services 821 TPS-27 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 The CoC EHV Liaison shall certify that all EHV referrals from the CoC to HACCC meet Coordinated Entry eligibility criteria specific to the identified and agreed upon priority categories identified in this MOU. All referrals will be tracked and monitored for quality assurance and compliance. II. Define the populations eligible for EHV assistance to be referred by CoC. In order to be eligible for an EHV, an individual or family must meet one of four eligibility categories: • Homeless • At risk of homelessness • Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking • Recently homeless and for whom providing rental assistance will prevent the family’s homelessness or having high risk of housing instability. A detailed description of each category can be accessed in HUD Notice PIH 2021-15. Prioritization of Eligible EHV Families HACCC and CoC have determined that the best approach to utilize the EHVs is to create better flow and mobility within the supportive housing and sheltered community. Households who were initially directed to Permanent Supportive Housing (PSH) or Rapid ReHousing (RRH) options through the Coordinated Entry System or are eligible for Moving On prioritization would best be served ahead of all other categories. Households that are identified as no longer needing a higher level of care or services and ready to transition to a permanent assisted housing option using the EHV would be prioritized to move out of the PSH/RRH units and make them available for other families who need those service-enriched housing options. This would increase the flow of housing opportunities within the CoC and would also open up PSH/RRH slots for those who need the level of services and subsidy that come with PSH/RRH. In addition, as a third priority category, HACCC and the CoC will direct EHV to eligible homeless families pursuant to the HUD definition of homelessness indicated above. A. Moving On As part of its strategic priority to end homelessness, the Continuum of Care (CoC) has adopted Moving On strategies in the community for clients in permanent supportive housing (PSH) who may no longer need or want the intensive services offered in PSH but continue to need assistance to maintain their housing. Moving On strategies challenge a community to create partnerships between the CoC and mainstream housing programs such as the Housing Choice Voucher (HCV) program, and HUD-funded multifamily housing providers. Moving On enables tenants to move on from supportive housing by offering affordable housing and connections to other resources. This may include a physical move to a new home, or a ‘transition in place’ arrangement where the services move on to another tenant. The decision to pursue Moving On is always voluntary and driven by the tenant. 822 TPS-28 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 B. Rapid ReHousing Rapid rehousing helps individuals and families to quickly exit homelessness by getting them housed. Rapid rehousing has three main components: Housing Identification, Rent and Move-In Assistance (Financial assistance) and Case Management and services. Rapid rehousing programs help households to find appropriate rental housing. They also help the households to solve some of the common hurdles faced in finding housing. In addition, rapid rehousing programs help individuals and families pay for housing for a short period of time that enables them to move quickly out of homelessness and stabilize in permanent housing. Rapid re-housing (RRH) emphasizes housing search and relocation services and short- and medium-term rental assistance to move homeless persons and families (with or without a disability) as rapidly as possible into permanent housing. Rapid Rehousing programs also connect people to services like employment counseling and job trainings that help them retain their housing in the long term. It is not necessary that a household use all the three components of rapid rehousing – they can use the ones that are most relevant to them. C. Permanent Supportive Housing Permanent supportive housing is an intervention that combines affordable housing assistance with voluntary support services to address the needs of chronically homeless people. The services are designed to build independent living and tenancy skills and connect people with community-based health care, treatment and employment services. Permanent supportive housing is permanent housing with indefinite leasing or rental assistance paired with supportive services to assist homeless persons with a disability or families with an adult or child member with a disability achieve housing stability. D. Shelters Shelters serve households who are literally homeless and offer an array of housing and case management services depending on the shelter provider. Many participants of shelter programs have income and have reached stability but need deeply affordable and subsidized housing. The lack of affordable housing options presents significant barriers for those in shelter to rapidly exit, and thereby reduces the number of beds available for new clients. Those who remain in the shelter for past 180 days are considered long term stayers and have significant challenges exiting to permanent housing. Prioritization As a result of defining the criteria of eligible households, the following prioritization system has been developed to memorialize the order in which households will be considered for an EHV. Category 1 – PSH/RRH Moving On Qualifies under EHV Eligibility Category 4 Recently Homeless: Section 8 defines this as individuals and families who have previously been classified by the COC as homeless, but are not 823 TPS-29 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 currently homeless as a result of homelessness assistance (financial or services), temporary rental assistance, etc. and where the COC or its designee determines that the loss of such assistance would result in a return to homelessness. Examples of such households may include (but are not limited to) participants in Rapid ReHousing or PSH. 1. RRH/Moving On + DV criteria (Fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking) + 62 2. RRH/Moving On + DV criteria 3. PSH/Moving On + DV criteria + 62 4. PSH/Moving On + DV criteria 5. RRH/Moving On + 62+ 6. RRH/Moving On 7. PSH/Moving On + 62+ 8. PSH/Moving On Category 2 – PSH/RRH Transfers Qualifies under EHV Eligibility Category 4 Recently Homeless: Section 8 defines this as individuals and families who have previously been classified by the COC as homeless but are not currently homeless as a result of homelessness assistance (financial or services), temporary rental assistance, etc. and where the COC or its designee determines that the loss of such assistance would result in a return to homelessness. Examples of such households may include (but are not limited to) participants in Rapid ReHousing or PSH. 9. RRH participant meeting DV criteria and 62+ and requests a transfer and does not otherwise meet Moving On criteria. * EHV’s may also be used to facilitate an emergency transfer plan in accordance with the Violence Against Women Act (VAWA) 10. RRH participant meeting DV criteria and requests a transfer and does not otherwise meet Moving On criteria. * EHV’s may also be used to facilitate an emergency transfer plan in accordance with the Violence Against Women Act (VAWA) 11. PSH participant meeting DV criteria and 62+ and requests a transfer and does not otherwise meet Moving On criteria. * EHV’s may also be used to facilitate an emergency transfer plan in accordance with the Violence Against Women Act (VAWA) 12. PSH participant meeting DV criteria and requests a transfer and does not otherwise meet Moving On criteria. * EHV’s may also be used to facilitate an emergency transfer plan in accordance with the Violence Against Women Act (VAWA) 13. RRH participant 62 + who has been housed for a minimum of 1 year and requests a transfer due to special circumstances, and/or household change, etc but does not otherwise qualify for Moving On based on length of time in program. Client meets all other Moving On eligibility around basic income, rent payment. 824 TPS-30 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 14. PSH participant 62 + who has been housed for a minimum of 1 year and requests a transfer due to special circumstances, and/or household change, etc but does not otherwise qualify for Moving On based on length of time in program. Client meets all other Moving On eligibility around basic income, rent payment. 15. RRH participant who has been housed for a minimum of 1 year and request a transfer due to special circumstances, and/or household change, etc but do not otherwise qualify for Moving On based on length of time in program. Client meets all other Moving On eligibility around basic income, rent payment. 16. PSH participant who has been housed for a minimum of 1 year and request a transfer due to special circumstances, and/or household change, etc but do not otherwise qualify for Moving On based on length of time in program. Client meets all other Moving On eligibility around basic income, rent payment. Category 3 – Homeless/Sheltered Long Stayers Qualifies under EHV Eligibility Category 1: Homeless. 17. Homeless - DV criteria + 62 AND highest length of time at shelter, basic income, needs few to no services (Long Stayer) 18. Homeless - DV criteria AND highest length of time at shelter, basic income, needs few to no services (Long Stayer) 19. Homeless - 62+ AND highest length of time at shelter, basic income, needs few to no services (Long Stayer) Referral Process HACCC shall notify the CoC’s Coordinated Entry System Administrator when EHVs become available. Within five (5) business days of being notified of the availability of EHVs, the CoC shall make every effort to make a referral to HACCC’s point of contact. For PSH/RRH clients that are interested in and eligible for Emergency Housing Vouchers through the Moving On Program, CE will convene the Housing Placement Committee to review the client’s case history to discuss the key indicators of the client’s capacity for the Moving On program. Among the indicators to be considered are as follows: • Emotional independence • Financial Capacity • Housing history and length of time in program • Intensity of service use • Health/behavioral health • Connection to mainstream resources • Connection to family or other natural supports • Community living skills • Activities of daily living skills 825 TPS-31 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Weighing these indicators, the Housing Placement Committee will make a determination as to whether the client should be recommended for an Emergency Housing Voucher. Recommended clients will be referred to the Housing Authority of Contra Costa County by CE once all eligibility documentation has been received. Any and all grievances regarding the CoC process will be handled within the grievance procedures outlined in the CoC’s written standards while any grievances regarding denial to participate or termination of assistance in the EHV Program shall be addressed through the HACCC Administrative Plan for the Housing Choice Voucher Program. CE will only send HACCC referrals for the number of spaces that are open and will not send more than one referral per opening, unless requested by HACCC. Transfer Process The Transfer Process will be implemented as directed in the CoC written standards. The written standards are being amended to reflect permissions and variations to the CoC written standards invoked by the EHV program. Shelter Long-term stayer process The Shelter Referral Process for long-term stayers will be implemented as directed in the CoC written standards. The referral process for long-term shelter stayers is being amended to reflect permissions and variations to the CoC written standards invoked by the EHV program. III. Services to be provided to eligible EHV families List the services to be provided to assist individuals and families have success in the program and who will provide them. 1. Partnering service providers will support individuals and families in completing applications and obtaining necessary supporting documentation to support referrals and applications for assistance; while aiding households in addressing barriers. 2. Partnering service providers will support HACCC in ensuring appointment notifications to eligible individuals and families and will assist eligible households in getting to meetings with the HACCC. 3. HACCC will establish windows of time for EHV applicants to complete intake interviews for EHV. 4. Partnering service providers will provide housing search assistance for eligible individuals and families. 5. Partnering service providers will provide counseling on compliance with rental lease requirements. 6. Partnering service providers will assess individuals and families who may require referrals for assistance on security deposits, utility hook-up fees, and utility deposits. 7. Partnering service providers will assess and refer individuals and families to benefits and supportive services, where applicable. 826 TPS-32 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 IV. HACCC Roles and Responsibilities 1. Coordinate and consult with the CoC in developing the services and assistance to be offered under the EHV services fee. 2. Accept direct referrals for eligible individuals and families through the CoC Coordinated Entry System. 3. Provide the necessary training to CoC staff necessary to assist in completing eligibility determination packages for all referrals; 4. Commit a sufficient number of staff and necessary resources to ensure that the application, certification, and voucher issuance processes are completed in a timely manner. 5. Ensure families and individuals meet all EHV Program requirements as described in the Notice. 6. Commit a sufficient number of staff and resources to ensure that inspections of units are completed in a timely manner. 7. Perform initial, annual and Interim income certifications as needed. 8. Conduct initial, annual and special Housing Quality Standards inspections as needed. 9. Provide assistance with unit search. 10. Negotiate contract rents with landlords to ensure that rents are reasonable. 11. Execute Housing Assistance Payments (HAP) and Tenancy Addendums for all participants. 12. Process rent payments to landlords. 13. Provide participants who request one with security deposit grant of up to one month’s rent. If a security deposit is provided, the participant shall be entitled to keep any proceeds returned by the owner after the tenancy ends. 14. Communicate problems with the application or client participation to the CES representative. 15. Provide a list, each month, of all clients leased under this program and a status report on the EHV wait list. 16. Perform any financial or program reporting required by HUD, except where provided by CoC’s CES. 17. HACCC will reimburse CES for all allowable activities under supportive services and administrative budget line items that are outside normal CES activities subject to funding limitations. 18. Meet regularly, but no less than quarterly, with CES staff to discuss program issues related to policy and procedures, funding levels, leasing goals, and any other issues related to the program. 19. Participate in periodic updates to the CoH by CES on the status of services offered by the CoC program, to discuss new program policies and to evaluate existing EHV policies. HACCC will also utilize CoH to become aware of new funding and service opportunities for the EHV program and clients. 20. Designate a staff to serve as the lead EHV liaison. 21. Comply with the provisions of this MOU. 22. Apply all Administrative Plan criteria as applicable. V. CoC Roles and Responsibilities HACCC is partnering with the Contra Costa Continuum of Care to establish an EHV Program that takes referrals directly from the Contra Costa Coordinated Entry System. To identify potential participants, homeless service providers operating one or more HUD Continuum of Care Permanent Supportive Housing (PSH) programs or Rapid Rehousing (RRH) programs in Contra Costa County, will identify and assess as many eligible clients as possible who may be ready to 827 TPS-33 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 “graduate” from PSH and RRH (i.e., are still in need of housing supports, but no longer in need of intensive services). 1. Designate and maintain a lead EHV liaison to communicate with the HACCC. 2. Refer eligible individuals and families to HACCC using the community’s coordinated entry system. 3. Refer at least (1) family for every EHV opening within 5 days of the referral request by the HACCC. - Referrals will be submitted using the authorized referral form. 4. Support eligible individuals and households in completing and applying for supportive documentation to accompany admissions application to the HACCC (i.e. self- certifications, birth certificate, social security card, etc.). 5. Attend EHV participant briefings when needed. 6. Assess all households referred for EHV for mainstream benefits and supportive services available to support eligible individuals and families through their transition. 7. Identify and provide supportive services to EHV families. (While EHV participants are not required to participate in services, the CoC should assure that services are available and accessible.) 8. Keep accurate records of the referrals made and make them available as necessary to the PHA, auditors etc. Make staff available to respond to questions from auditors, HUD etc. necessary to ensure HACCC’s compliance with the EHV regulations 9. Provide HACCC with regular monthly reports of services provided to EHV families including demographics of families referred. 10. Comply with the provisions of this MOU. Continuum of Care Processes: CES Policy is being amended to conform with EHV referral process. CoC Policy is being amended to conform with EHV referral process. VI. Third Party Entity Roles Responsibilities Service Providers or CoC recipients it designates will fulfill each of the following responsibilities: 1. Attend initial meetings regarding the startup of the EHVs in the CoC’s coverage area. 2. Designate and maintain a lead EHV liaison to communicate with HACCC and CoC. 3. Commit a sufficient number of staff and necessary resources to ensure that the application is completed in a timely manner. 4. Refer eligible individuals and families to the CoC using the Coordinated Entry System. 5. Support eligible individuals and households in completing and applying for supportive documentation to accompany admissions application to HACCC. 6. Secure other eligible funds for security deposit costs, as needed (i.e., ESG, ESG-CV) 7. Attend EHV participant briefings when needed. 8. Assess all households referred for EHV for mainstream benefits and supportive services available to support eligible individuals and families through their transition. 828 TPS-34 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 9. Conduct owner outreach and recruitment to ensure an adequate pool of rental units are available for individuals and families. This includes contacting current owners to inquire about availability of current units. 10. Identify and provide supportive services to EHV individuals and families throughout the first year of tenancy. (While EHV participants are not required to participate in services, the Service Provider should assure that services are available and accessible.) 11. Comply with the provisions of this MOU. VII. Disputes In the event of any controversy or dispute related to or arising out of this MOU, a Party shall notify the other Parties in writing. Within fifteen business (15) days of such notice, the Parties shall meet and confer in good faith to attempt to resolve the controversy or dispute without an adversarial proceeding. If the controversy or dispute is not resolved to the mutual satisfaction of the Parties at the initial meeting, the Parties will agree to meet and confer at least one (1) additional meeting prior to taking any additional action against any Party. If a controversy, claim, or dispute cannot be resolved by said process, a party may pursue its claims as allowed by law, and the prevailing party will be entitled to recover from the non‐prevailing party or parties all of its reasonable expenses, including but not limited to reasonable attorneys’ fees, accountants’ fees, expert witness fees and court. VIII. No Personal Liability No officer, director, shareholder, employee, agent, or other person authorized to act on behalf of either party shall be personally liable for any obligation, expressed or implied, hereunder. IX. Non-Discrimination In the performance of this MOU, the parties agree that they will not discriminate against any person because of race, color, religion, sex, national origin, age, or disabilities as defined in the Americans with Disabilities Act. X. No Third-Party Beneficiaries. This MOU is made and entered into for the sole protection and benefit of the Parties hereto and shall not create any rights in any third parties, including, but not limited to eligible EHV program participants or applicants. No other person or entity shall have any right of action based upon the provisions of this MOU. XI. Indemnification Neither HACCC, the CoC nor third party agencies or any of their respective Board of Supervisors members, Board of Commissioners members, officers, directors, employees, or agents thereof shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by any other Party arising out of or related to any work, authority or jurisdiction delegated to a Party under this MOU. It is further agreed that pursuant to Government Code Section 895.4, each Party shall fully indemnify and hold the other Parties harmless from any liability 829 TPS-35 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 imposed for injury (as defined in Government Code Section 810.8) occurring by reason of anything done or omitted to be done by such Party arising out of or related to any work, authority or jurisdiction delegated to the Party under this MOU. XII. Compliance with Laws and Regulations. By executing this MOU, County, and each Housing Authority agrees to comply with all applicable federal, state and local laws, regulations and ordinances, and Notice PIH 2021- 15(HA), including any amendments, modifications or additions thereto. XIII. Independent Contractor Each participating agency is not an employee of the other participating agencies. Nothing contained in this MOU will be deemed or construed to create an employee/employer relationship between the participating agencies. Each agency will have no authority to create any obligation or make representation or warranties binding on the other agencies. All personnel supplied or used by a named participating agency alone will not be considered employees, agents, or subcontractors of the other agencies for any purpose whatsoever. Each participating agency alone is responsible for its work, direction, compensation, and personal conduct. Nothing included in any provision of this MOU shall impose any liability or duty upon any participating agency in any capacity whatsoever, or make any participating agency liable for the acts, omissions, liabilities, or obligations, in whatsoever nature, of another participating agency or its personnel. XIV. Amendments In the event of any Party to the MOU desiring to amend the terms, a Party shall notify the other Parties in writing. Within fifteen business (15) days of such notice, the Parties shall meet and confer in good faith to discuss the desired amendment. If there is agreement, the Parties will draft an Amendment to be signed by all Parties and the Amendment will be attached to the original MOU. XV. Assignment. No Party shall delegate or assign its interest in this MOU, and shall not transfer any interest in the same, whether by operation of law or otherwise, without the prior written consent of the other Parties. XVI. Notices Any notices, bills, invoices, or reports relating to this MOU, and any request, demand, statement or other communication required or permitted hereunder shall be in writing to the addresses set forth below and shall be deemed to have been received on (a) the day of delivery, if delivered by hand during regular business hours or by confirmed facsimile during regular business hours; or (b) on the third business day following deposit in the United States mail, postage prepaid: If to HACCC: Ingrid Layne Housing Authority of the County of Contra Costa 2870 Howe Rd. Martinez, CA 94553 830 TPS-36 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 If to CoC: Lavonna Martin Contra Costa County Department of Health, Housing and Homeless Services 2400 Bisso Lane, Suite D, 2nd Floor Concord, CA 94520 XVII. Entire Agreement. This MOU is intended by the Parties hereto as a final expression of their understanding with respect to the subject matter hereof and as a complete and exclusive statement of the terms and conditions thereof and supersedes any and all prior and contemporaneous MOU’s and understandings, oral or written, in connection therewith. Any amendments to or clarification of this MOU shall be in writing and acknowledged by all Parties to the MOU. XVIII. Program Evaluation The HACCC, and CoC or designated CoC recipient agree to cooperate with HUD, provide requested data to HUD or HUD-approved contractor delegated the responsibility of program evaluation protocols established by HUD or HUD-approved contractor, including possible random assignment procedures. 831 TPS-37 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Exhibit TPS-2: HOMELESS PROVIDER’S CERTIFICATION HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA Emergency Housing Voucher (EHV) HOMELESS CERTIFICATION EHV Applicant Name: Household without dependent children (complete one form for each adult in the household) Household with dependent children (complete one form for household) Number of persons in the household: This is to certify that the above named individual or household meets the following criteria based on the check mark, other indicated information, and signature indicating their current living situation- Check only one box and complete only that section Living Situation: place not meant for human habitation (e.g., cars, parks, abandoned buildings, streets/sidewalks) The person(s) named above is/are currently living in (or, if currently in hospital or other institution, was living in immediately prior to hospital/institution admission) a public or private place not designed for, or ordinarily used as a regular sleeping accommodation for human beings, including a car, park, abandoned building, bus station, airport, or campground. 832 TPS-38 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Description of current living situation: Homeless Street Outreach Program Name: This certifying agency must be recognized by the local Continuum of Care (CoC) as an agency that has a program designed to serve persons living on the street or other places not meant for human habitation. Examples may be street outreach workers, day shelters, soup kitchens, Health Care for the Homeless sites, etc. Authorized Agency Representative Signature: Date: Living Situation: Emergency Shelter The person(s) named above is/are currently living in (or, if currently in hospital or other institution, was living in immediately prior to hospital/institution admission) a supervised publicly or privately operated shelter as follows: Emergency Shelter Program Name: This emergency shelter must appear on the CoC’s Housing Inventory Chart submitted as part of the most recent CoC Homeless Assistance application to HUD or otherwise be recognized by the CoC as part of the CoC inventory (e.g., newly established Emergency Shelter). Authorized Agency Representative Signature: Date: 833 TPS-39 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Living Situation: Recently Homeless The person(s) named above is/are currently receiving financial and supportive services for persons who are homeless. Loss of such assistance would result in a return to homelessness (ex. Households in Rapid Rehousing Programs, residents of Permanent Supportive Housing Programs participating in Moving On, etc.) Authorized Agency Representative Signature: This referring agency must appear on the CoC’s Housing Inventory Chart submitted as part of the most recent CoC Homeless Assistance application to HUD or otherwise be recognized by the CoC as part of the CoC inventory. Immediately prior to entering the household’s current living situation, the person(s) named above was/were residing in: emergency shelter OR a place unfit for human habitation Authorized Agency Representative Signature: Date: 834 TPS-40 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Exhibit TPS-3: VICTIM SERVICES PROVIDER’S CERTIFICATION HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA Emergency Housing Voucher (EHV) HUMAN TRAFFICKING CERTIFICATION Purpose of Form: The Victims of Trafficking and Violence Protection Act of 2000 provides assistance to victims of trafficking making housing, educational health care, job training and other Federally-funded social service programs available to assist victims in rebuilding their lives. Use of This Optional Form: In response to this request, the service provider may complete this form and submit it to the Public Housing Agency (PHA) to certify eligibility for EHV assistance. Confidentiality: All information provided to the service provider concerning the incident(s) of human trafficking shall be kept confidential and such details shall not be entered into any shared database. Employees of the PHA will not have access to these details, and such employees may not disclose this information to any other entity or individual, except to the extent that disclosure is: (i) consented to by you in writing in a time-limited release; (ii) required for use in an eviction proceeding or hearing regarding termination of assistance; or (iii) otherwise required by applicable law. TO BE COMPLETED ON BEHALF OF HUMAN TRAFFICKING SURVIVOR 835 TPS-41 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 EHV Applicant Name: This is to certify that the above named individual or household meets the definition for persons who are fleeing or attempting to flee human trafficking under section 107(b) of the Trafficking Victims Protection Act of 2000. Immediately prior to entering the household’s current living situation, the person(s) named above was/were residing in: This is to certify that the information provided on this form is true and correct to the best of my knowledge and recollection, and that the individual(s) named above is/has been a victim of human trafficking. I acknowledge that submission of false information could jeopardize program eligibility and could be the basis for denial of admission, termination of assistance, or eviction. 1. Authorized Agency Representative Signature: Date: 836 TPS-42 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 First Amendment of the Memorandum of Understanding Emergency Housing Vouchers (EHV) Rental Assistance Program This first amendment of the Memorandum of Understanding (MOU) for the Emergency Housing Voucher Program has been created and entered into on November 28, 2021 between the Housing Authority of the County of Contra Costa (HACCC) and the Contra Costa County Department of Health, Housing and Homeless Services (H3) in their capacity as administrators for the County Continuum of Care. I. Introduction and Goals: a. HACCC and CoC’s commitment to administering the EHVs in accordance with all program requirements. b. HACCC goals and standards of success in administering the program. 1. All 201 vouchers are fully utilized by September 2023 2. 75-80% of Coordinated Entry referrals accepted by HACCC 3. Average length of time of 120 days from program enrollment to housing move in 4. 95% of households referred from a permanent supportive housing program maintain their housing through September 2023 5. 80% of households referred from emergency shelter maintain their housing through September 2023 c. Identification of staff position at the HACCC and CoC who will serve as the lead EHV liaisons. Lead HCV Liaison: Ingrid Layne, Director of Assisted Housing Programs The Lead HCV Liaison shall ensure that all program requirements are being met including referral and intake of eligible households; issuance of Emergency Housing Vouchers; Providing housing search assistance to certified households; inspection of all dwelling units at initial and annual certifications; processing payments to landlords and providing on-going monitoring of participants for program compliance. Name and title of CoC staff position: 837 TPS-43 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Shelby Ferguson, Coordinated Entry Manager – Department of Health, Housing and Homeless Services The CoC EHV Liaison shall certify that all EHV referrals from the CoC to HACCC meet Coordinated Entry eligibility criteria specific to the identified and agreed upon priority categories identified in this MOU. All referrals will be tracked and monitored for quality assurance and compliance. II. Define the populations eligible for EHV assistance to be referred by CoC. In order to be eligible for an EHV, an individual or family must meet one of four eligibility categories: x Homeless x At risk of homelessness x Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking x Recently homeless and for whom providing rental assistance will prevent the family’s homelessness or having high risk of housing instability. A detailed description of each category can be accessed in HUD Notice PIH 2021-15. Prioritization of Eligible EHV Families HACCC and CoC have determined that the best approach to utilize the EHVs is to create better flow and mobility within the supportive housing and sheltered community. Households that are identified as no longer needing a higher level of care or services and ready to transition to a permanent assisted housing option (“Move On”) would be prioritized to move out of the PSH units and make them available for other families who need those service- enriched housing options. This would increase the flow of housing opportunities within the CoC and would also open up PSH slots for those who need the level of services and subsidy that come with PSH. Households that are long stayers in shelter programs will also be prioritized for EHV to make shelter available to other households needing that support. A. Move On As part of its strategic priority to end homelessness, the Continuum of Care (CoC) has adopted Move On strategies in the community for clients in permanent supportive housing (PSH) who may no longer need or want the intensive services offered in PSH but continue to need assistance to maintain their housing. Move On strategies challenge a community to create partnerships between the CoC and mainstream housing programs such as the Housing Choice Voucher (HCV) program, and HUD-funded multifamily housing providers. Move On enables tenants to move on from supportive housing by offering affordable housing and connections to other resources. This may include a physical move to a new home, or a ‘transition in 838 TPS-44 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 place’ arrangement where the services move on to another tenant. The decision to pursue Move On is always voluntary and driven by the tenant. B. Permanent Supportive Housing (PSH) Permanent supportive housing is an intervention that combines affordable housing assistance with voluntary support services to address the needs of chronically homeless people. The services are designed to build independent living and tenancy skills and connect people with community-based health care, treatment and employment services. Permanent supportive housing is permanent housing with indefinite leasing or rental assistance paired with supportive services to assist homeless persons with a disability or families with an adult or child member with a disability achieve housing stability. Those who remain in permanent supportive housing for more than 3 years are considered long stayers and ready to consider moving on. C. Shelters Shelters serve households who are literally homeless and offer an array of housing and case management services depending on the shelter provider. Many participants of shelter programs have income and have reached stability but need deeply affordable and subsidized housing. The lack of affordable housing options presents significant barriers for those in shelter to rapidly exit, and thereby reduces the number of beds available for new clients. Those who remain in the shelter for 180 consecutive days or more are considered long term stayers and have significant challenges exiting to permanent housing. Prioritization As a result of defining the criteria of eligible households, the following prioritization system has been developed to memorialize the order in which households will be considered for an EHV. Category 1 – Permanent Supportive Housing (PSH) Moving On Qualifies under EHV Eligibility Category 4 Recently Homeless: Section 8 defines this as individuals and families who have previously been classified by the COC as homeless, but are not currently homeless as a result of homelessness assistance (financial or services), temporary rental assistance, etc. and where the COC or its designee determines that the loss of such assistance would result in a return to homelessness. Examples of such households may include (but are not limited to) participants in PSH. - PSH/Moving On + Length of most recent consecutive enrollment in HMIS-participating permanent supportive housing program (3 years or more) o For individuals and families with identical lengths of stays in PSH: PSH/Moving On + Current or previous experience of domestic violence (including dating violence, sexual assault, stalking, and/or human trafficking). 839 TPS-45 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 PSH/Moving On + Previous experience of eviction and/or involuntary displacement from applicant’s primary place of residence. PSH/Moving On + Poor (below 600) or no credit. PSH/Moving On + Previous experience with the criminal legal system (e.g., detention by law enforcement, arrest, prosecution, incarceration, community supervision). Category 2 – Homeless/Sheltered Long Stayers Qualifies under EHV Eligibility Category 1: Homeless. - Sheltered Long Stayer + Length of most recent consecutive enrollment in HMIS- participating emergency shelter program or local domestic violence shelter (180 days or more) - For individuals or families with identical lengths of stay: • Sheltered Long Stayer + Current or previous experience of domestic violence (including dating violence, sexual assault, stalking, and/or human trafficking). • Sheltered Long Stayer + Previous experience of eviction and/or involuntary displacement from applicant’s primary place of residence. • Shelter Long Stayer + Poor (below 600) or no credit. • Shelter Long Stayer + Previous experience with the criminal legal system (e.g., detention by law enforcement, arrest, prosecution, incarceration, community supervision). Referral Process HACCC shall notify the CoC’s Coordinated Entry System Administrator when EHVs become available. Within five (5) business days of being notified of the availability of EHVs, the CoC shall make every effort to make a referral to HACCC’s point of contact. For PSH clients that are interested in and eligible for Emergency Housing Vouchers through the Moving On Program, CE will convene the Housing Placement Committee to review the client’s case history to discuss the key indicators of the client’s capacity for the Moving On program. Among the indicators to be considered are as follows: • Housing History • Financial Stability • Service Needs and Supports (includes connections to health, mainstream resources, and family or other natural supports) • Household Composition Weighing these indicators, the Housing Placement Committee will make a determination as to whether the client should be recommended for an Emergency Housing Voucher. Recommended 840 TPS-46 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 clients will be referred to the Housing Authority of Contra Costa County by CE once all eligibility documentation has been received. Any and all grievances regarding the CoC process will be handled within the grievance procedures outlined in the CoC’s written standards while any grievances regarding denial to participate or termination of assistance in the EHV Program shall be addressed through the HACCC Administrative Plan for the Housing Choice Voucher Program. The CoC Complaint Policy and Form are publicly available on the CoC website. CE will only send HACCC referrals for the number of spaces that are open and will not send more than one referral per opening, unless requested by HACCC. Coordinated Entry Referral Process The Coordinated Entry Referral Process for long-stayers in emergency shelter and permanent supportive housing will be implemented as directed in the addendum to the CoC Coordinated Entry Policies and Procedures entitled “EHV Coordinated Entry Policies.” The referral process was developed in alignment with local community processes and includes variations invoked by the EHV program. VAWA Direct Referral Pursuant to guidance in PIH 2021-15, HACCC will also accept direct referrals for VAWA-eligible households who may be fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking. HACCC shall execute separate MOUs with these entities to ensure proper HUD compliance. In addition, HACCC shall inform the CoC, through CES, in the event that an EHV household is assisted directly so that proper tracking and services are made available to the household. III. Services to be provided to eligible EHV families List the services to be provided to assist individuals and families have success in the program and who will provide them. 1. Referring agencies will explain the EHV Program to eligible clients and the risks and benefits associated with client participation using communication materials provided by H3 and HACCC. 2. Referring agencies will work with the eligible and interested client to complete the EHV Screening Tool, PSH or ES Certification Form, and Candidate Interest Form in HMIS. 3. Referring agencies will attend the Housing Placement Committee to determine if the client will be recommended for EHV referral through Coordinated Entry. 4. Referring agencies will complete any other necessary documentation to complete the referral process to HACCC. 5. Referring agencies will complete an Individualized Transition Plan with each client 841 TPS-47 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 6. Referring agencies will connect clients to new or existing Community Supports that are not dependent on the client’s housing status (e.g., behavioral health, physical health, veterans’ affairs, IHSS, support groups, recovery groups, family, friends, faith community). 7. Referring agencies will assist clients with practicing and mastering activities of daily living. 8. Referring agencies will check-in with clients after they have moved into an EHV unit and continue to work on the goals outlined in the Individualized Transition Plan. 9. Partnering agencies (EHV Navigators) will provide housing navigation or location assistance to EHV program participants. 10. Partnering agencies (EHV Navigators) will provide 30 days of light-touch post-move in support to program participants. This support will primarily focus on relationships with the landlord, resolving issues with the financial components of the EHV, and accessing flexible housing funds as needed and appropriate. 11. Partnering agencies (EHV Navigators) will cultivate relationships with landlords and provide housing search support for EHV clients. 12. Partnering agencies (EHV Navigators) will support lease negotiation, signing, and move in logistics. 13. Partnering agencies (EHV Navigators) will provide expedited access to flexible housing funds to support move-in (i.e., funds may be used for security deposits, application fees, credit checks, etc.). 14. HACCC will establish windows of time for EHV applicants to complete intake interviews for EHV. IV. HACCC Roles and Responsibilities 1. Coordinate and consult with the CoC in developing the services and assistance to be offered under the EHV services fee. 2. Accept direct referrals for eligible individuals and families through the CoC Coordinated Entry System. 3. Provide the necessary training to CoC staff necessary to assist in completing eligibility determination packages for all referrals; 4. Commit a sufficient number of staff and necessary resources to ensure that the application, certification, and voucher issuance processes are completed in a timely manner. 5. Ensure families and individuals meet all EHV Program requirements as described in the Notice. 6. Commit a sufficient number of staff and resources to ensure that inspections of units are completed in a timely manner. 7. Perform initial, annual and Interim income certifications as needed. 8. Conduct initial, annual and special Housing Quality Standards inspections as needed. 9. Provide assistance with unit search. 10. Negotiate contract rents with landlords to ensure that rents are reasonable. 11. Execute Housing Assistance Payments (HAP) and Tenancy Addendums for all participants. 12. Process rent payments to landlords. 13. Provide participants who request one with security deposit grant of up to one month’s rent. If a security deposit is provided, the participant shall be entitled to keep any proceeds returned by the owner after the tenancy ends. 14. Communicate problems with the application or client participation to the CES representative. 842 TPS-48 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 15. Provide a list, each month, of all clients leased under this program and a status report on the EHV wait list. 16. Perform any financial or program reporting required by HUD, except where provided by CoC’s CES. 17. HACCC will reimburse CES for all allowable activities under supportive services and administrative budget line items that are outside normal CES activities subject to funding limitations. 18. Meet regularly, but no less than quarterly, with CES staff to discuss program issues related to policy and procedures, funding levels, leasing goals, and any other issues related to the program. 19. Participate in periodic updates to the CoH by CES on the status of services offered by the CoC program, to discuss new program policies and to evaluate existing EHV policies. HACCC will also utilize CoH to become aware of new funding and service opportunities for the EHV program and clients. 20. Designate a staff to serve as the lead EHV liaison. 21. Comply with the provisions of this MOU. 22. Apply all Administrative Plan criteria as applicable. V. CoC Roles and Responsibilities HACCC is partnering with the Contra Costa Continuum of Care to establish an EHV Program that takes referrals directly from the Contra Costa Coordinated Entry System. To identify potential participants, homeless service providers operating one or more HUD Continuum of Care Permanent Supportive Housing (PSH) programs in Contra Costa County, will identify and assess as many eligible clients as possible who may be ready to “move on” from PSH (i.e., are still in need of housing supports, but no longer in need of intensive services) or transition out of shelter after a long stay. 1. Designate and maintain a lead EHV liaison to communicate with the HACCC. 2. Refer eligible individuals and families to HACCC using the community’s coordinated entry system. 3. Refer at least (1) household for every EHV opening within 5 days of the referral request by the HACCC. Referrals will be submitted using the authorized referral form. 4. Support eligible individuals and households in completing and applying for supportive documentation to accompany admissions application to the HACCC (i.e. self- certifications, birth certificate, social security card, etc.). 5. Attend EHV participant briefings when needed. 6. Assess all households referred for EHV for mainstream benefits and supportive services available to support eligible individuals and families through their transition. 7. Identify and provide supportive services to EHV families. (While EHV participants are not required to participate in services, the CoC should assure that services are available and accessible.) 843 TPS-49 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 8. Keep accurate records of the referrals made and make them available as necessary to the PHA, auditors etc. Make staff available to respond to questions from auditors, HUD etc. necessary to ensure HACCC’s compliance with the EHV regulations 9. Provide HACCC with regular monthly reports of services provided to EHV families including demographics of families referred. 10. Comply with the provisions of this MOU. Continuum of Care Processes: CES Policy has been amended to conform with EHV referral process. CoC Policy has been amended to conform with EHV referral process. VI. Third Party Entity Roles Responsibilities Service Providers or CoC recipients it designates will fulfill each of the following responsibilities: 1. Attend initial meetings regarding the startup of the EHVs in the CoC’s coverage area. 2. Designate and maintain a lead EHV liaison to communicate with HACCC and CoC. 3. Commit a sufficient number of staff and necessary resources to ensure that the application is completed in a timely manner. 4. Refer eligible individuals and families to the CoC using the Coordinated Entry System. 5. Support eligible individuals and households in completing and applying for supportive documentation to accompany admissions application to HACCC. 6. Secure other eligible funds for security deposit costs, as needed (i.e., ESG, ESG-CV) 7. Attend EHV participant briefings when needed. 8. Assess all households referred for EHV for mainstream benefits and supportive services available to support eligible individuals and families through their transition. 9. Conduct owner outreach and recruitment to ensure an adequate pool of rental units are available for individuals and families. This includes contacting current owners to inquire about availability of current units. 10. Identify and provide supportive services to EHV individuals and families throughout the first year of tenancy. (While EHV participants are not required to participate in services, the Service Provider should assure that services are available and accessible.) 11. Comply with the provisions of this MOU. 12. Comply with CES and CoC Policy regarding the EHV program. VII. Disputes In the event of any controversy or dispute related to or arising out of this MOU, a Party shall notify the other Parties in writing. Within fifteen business (15) days of such notice, the Parties shall meet and confer in good faith to attempt to resolve the controversy or dispute without an adversarial proceeding. If the controversy or dispute is not resolved to the mutual satisfaction of the Parties at the initial meeting, the Parties will agree to meet and confer at least one (1) additional meeting prior to taking any additional action against any Party. If a controversy, claim, or dispute cannot be resolved by said process, a party may pursue its claims as allowed by law, and the prevailing party will be entitled to recover from the non‐prevailing party or parties all of its reasonable expenses, 844 TPS-50 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 including but not limited to reasonable attorneys’ fees, accountants’ fees, expert witness fees and court. VIII. No Personal Liability No officer, director, shareholder, employee, agent, or other person authorized to act on behalf of either party shall be personally liable for any obligation, expressed or implied, hereunder. IX. Non-Discrimination In the performance of this MOU, the parties agree that they will not discriminate against any person because of race, color, religion, sex, national origin, age, or disabilities as defined in the Americans with Disabilities Act. X. No Third-Party Beneficiaries. This MOU is made and entered into for the sole protection and benefit of the Parties hereto and shall not create any rights in any third parties, including, but not limited to eligible EHV program participants or applicants. No other person or entity shall have any right of action based upon the provisions of this MOU. XI. Indemnification Neither HACCC, the CoC nor third party agencies or any of their respective Board of Supervisors members, Board of Commissioners members, officers, directors, employees, or agents thereof shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by any other Party arising out of or related to any work, authority or jurisdiction delegated to a Party under this MOU. It is further agreed that pursuant to Government Code Section 895.4, each Party shall fully indemnify and hold the other Parties harmless from any liability imposed for injury (as defined in Government Code Section 810.8) occurring by reason of anything done or omitted to be done by such Party arising out of or related to any work, authority or jurisdiction delegated to the Party under this MOU. XII. Compliance with Laws and Regulations. By executing this MOU, County, and each Housing Authority agrees to comply with all applicable federal, state and local laws, regulations and ordinances, and Notice PIH 2021- 15(HA), including any amendments, modifications or additions thereto. XIII. Independent Contractor Each participating agency is not an employee of the other participating agencies. Nothing contained in this MOU will be deemed or construed to create an employee/employer relationship between the participating agencies. Each agency will have no authority to create any obligation or make representation or warranties binding on the other agencies. All personnel supplied or used by a named participating agency alone will not be considered employees, agents, or subcontractors of the other agencies for any purpose whatsoever. Each participating agency alone is responsible for 845 TPS-51 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 its work, direction, compensation, and personal conduct. Nothing included in any provision of this MOU shall impose any liability or duty upon any participating agency in any capacity whatsoever, or make any participating agency liable for the acts, omissions, liabilities, or obligations, in whatsoever nature, of another participating agency or its personnel. XIV. Amendments In the event of any Party to the MOU desiring to amend the terms, a Party shall notify the other Parties in writing. Within fifteen business (15) days of such notice, the Parties shall meet and confer in good faith to discuss the desired amendment. If there is agreement, the Parties will draft an Amendment to be signed by all Parties and the Amendment will be attached to the original MOU. XV. Assignment. No Party shall delegate or assign its interest in this MOU, and shall not transfer any interest in the same, whether by operation of law or otherwise, without the prior written consent of the other Parties. XVI. Notices Any notices, bills, invoices, or reports relating to this MOU, and any request, demand, statement or other communication required or permitted hereunder shall be in writing to the addresses set forth below and shall be deemed to have been received on (a) the day of delivery, if delivered by hand during regular business hours or by confirmed facsimile during regular business hours; or (b) on the third business day following deposit in the United States mail, postage prepaid: If to HACCC: Ingrid Layne Housing Authority of the County of Contra Costa 2870 Howe Rd. Martinez, CA 94553 If to CoC: Christine Saxton Contra Costa County Department of Health, Housing and Homeless Services 2400 Bisso Lane, Suite D, 2nd Floor Concord, CA 94520 XVII. Entire Agreement. This MOU is intended by the Parties hereto as a final expression of their understanding with respect to the subject matter hereof and as a complete and exclusive statement of the terms and conditions thereof and supersedes any and all prior and contemporaneous MOU’s and understandings, oral or written, in connection therewith. Any amendments to or clarification of this MOU shall be in writing and acknowledged by all Parties to the MOU. 846 TPS-52 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 XVIII. Program Evaluation The HACCC, and CoC or designated CoC recipient agree to cooperate with HUD, provide requested data to HUD or HUD-approved contractor delegated the responsibility of program evaluation protocols established by HUD or HUD-approved contractor, including possible random assignment procedures. SIGNATURES ON FOLLOWING PAGES 847 TPS-53 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Signed and dated by the official representatives of the HACCC, CoC, CoC Contractor organization (if applicable), and third-party entities (if applicable. Joseph Villarreal, Executive Director Date Christine Saxton, Interim Director Date Health, Housing and Homeless Services 848 TPS-54 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Attachment 3 - Homeless Provider’s Certification HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA Emergency Housing Voucher (EHV) HOMELESS CERTIFICATION EHV Applicant Name: Household without dependent children (complete one form for each adult in the household) Household with dependent children (complete one form for household) Number of persons in the household: This is to certify that the above named individual or household meets the following criteria based on the check mark, other indicated information, and signature indicating their current living situation- Check only one box and complete only that section Living Situation: place not meant for human habitation (e.g., cars, parks, abandoned buildings, streets/sidewalks) The person(s) named above is/are currently living in (or, if currently in hospital or other institution, was living in immediately prior to hospital/institution admission) a public or private place not designed for, or ordinarily used as a regular sleeping accommodation for human beings, including a car, park, abandoned building, bus station, airport, or camp ground. Description of current living situation: 849 TPS-55 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Homeless Street Outreach Program Name: This certifying agency must be recognized by the local Continuum of Care (CoC) as an agency that has a program designed to serve persons living on the street or other places not meant for human habitation. Examples may be street outreach workers, day shelters, soup kitchens, Health Care for the Homeless sites, etc. Authorized Agency Representative Signature: Date: Living Situation: Emergency Shelter The person(s) named above is/are currently living in (or, if currently in hospital or other institution, was living in immediately prior to hospital/institution admission) a supervised publicly or privately operated shelter as follows: Emergency Shelter Program Name: This emergency shelter must appear on the CoC’s Housing Inventory Chart submitted as part of the most recent CoC Homeless Assistance application to HUD or otherwise be recognized by the CoC as part of the CoC inventory (e.g., newly established Emergency Shelter). 850 TPS-56 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Authorized Agency Representative Signature: Date: Living Situation: Recently Homeless The person(s) named above is/are currently receiving financial and supportive services for persons who are homeless. Loss of such assistance would result in a return to homelessness (ex. Households in Rapid Rehousing Programs, residents of Permanent Supportive Housing Programs participating in Moving On, etc.) Authorized Agency Representative Signature: This referring agency must appear on the CoC’s Housing Inventory Chart submitted as part of the most recent CoC Homeless Assistance application to HUD or otherwise be recognized by the CoC as part of the CoC inventory. Immediately prior to entering the household’s current living situation, the person(s) named above was/were residing in: emergency shelter or a place unfit for human habitation Authorized Agency Representative Signature: Date: 851 TPS-57 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Attachment #4 Victim Services Provider’s Certification HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA Emergency Housing Voucher (EHV) HUMAN TRAFFICKING CERTIFICATION Purpose of Form: The Victims of Trafficking and Violence Protection Act of 2000 provides assistance to victims of trafficking making housing, educational health care, job training and other Federally-funded social service programs available to assist victims in rebuilding their lives. Use of This Optional Form: In response to this request, the service provider may complete this form and submit it to the Public Housing Agency (PHA) to certify eligibility for EHV assistance. Confidentiality: All information provided to the service provider concerning the incident(s) of human trafficking shall be kept confidential and such details shall not be entered into any shared database. Employees of the PHA will not have access to these details, and such employees may not disclose this information to any other entity or individual, except to the extent that disclosure is: (i) consented to by you in writing in a time-limited release; (ii) required for use in an eviction proceeding or hearing regarding termination of assistance; or (iii) otherwise required by applicable law. 852 TPS-58 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 TO BE COMPLETED ON BEHALF OF HUMAN TRAFFICKING SURVIVOR EHV Applicant Name: This is to certify that the above-named individual or household meets the definition for persons who are fleeing or attempting to flee human trafficking under section 107(b) of the Trafficking Victims Protection Act of 2000. Immediately prior to entering the household’s current living situation, the person(s) named above was/were residing in: This is to certify that the information provided on this form is true and correct to the best of my knowledge and recollection, and that the individual(s) named above is/has been a victim of human trafficking. I acknowledge that submission of false information could jeopardize program eligibility and could be the basis for denial of admission, termination of assistance, or eviction. Authorized Agency Representative Signature: Date: 853 GLOSSARY-1 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 GLOSSARY A. ACRONYMS USED IN THE HOUSING CHOICE VOUCHER (HCV) PROGRAM ACC Annual contributions contract ADA Americans with Disabilities Act of 1990 AIDS Acquired immune deficiency syndrome BR Bedroom CDBG Community Development Block Grant (Program) CES Coordinated Entry System CFR Code of Federal Regulations (published federal rules that define and implement laws; commonly referred to as “the regulations”) CoC Continuum of Care CPI Consumer price index (published monthly by the Department of Labor as an inflation indicator) RAD Rental Assistance Demonstration Program EHV Emergency Housing Vouchers EIV Enterprise Income Verification FDIC Federal Deposit Insurance Corporation FHA Federal Housing Administration (HUD Office of Housing) FHEO Fair Housing and Equal Opportunity (HUD Office of) FICA Federal Insurance Contributions Act (established Social Security taxes) FMR Fair market rent FR Federal Register 854 GLOSSARY-2 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 FSS Family Self-Sufficiency (Program) FY Fiscal year FYE Fiscal year end GAO Government Accountability Office GR Gross rent HA Housing authority or housing agency HAP Housing assistance payment HCV Housing choice voucher HIP Housing Information Portal HOTMA Housing Opportunity through Modernization Act of 2016 HQS Housing quality standards HUD Department of Housing and Urban Development HUDCLIPS HUD Client Information and Policy System IPA Independent public accountant IRA Individual retirement account IRS Internal Revenue Service IVT Income Validation Tool JTPA Job Training Partnership Act LBP Lead-based paint LEP Limited English proficiency MSA Metropolitan statistical area (established by the U.S. Census Bureau) MTW Moving to Work NOFA Notice of funding availability 855 GLOSSARY-3 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 NSPIRE National Standards for the Physical Inspection of Real Estate OGC HUD's Office of General Counsel OIG HUD’s Office of Inspector General OMB Office of Management and Budget PASS Plan to Achieve Self-Support PBV Project-based voucher PHA Public housing agency PIH (HUD Office of) Public and Indian Housing PS Payment standard QC Quality control RAD Rental Assistance Demonstration Program REAC (HUD) Real Estate Assessment Center RFP Request for proposals RFTA Request for tenancy approval RIGI Regional inspector general for investigation (handles fraud and program abuse matters for HUD at the regional office level) RVI Remote Video Inspection SEMAP Section 8 Management Assessment Program SRO Single room occupancy SSA Social Security Administration SSI Supplemental security income SWICA State wage information collection agency TANF Temporary assistance for needy families TPV Tenant protection vouchers 856 GLOSSARY-4 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 TR Tenant rent TTP Total tenant payment UA Utility allowance UFAS Uniform Federal Accessibility Standards UIV Upfront income verification URP Utility reimbursement payment VASH Veterans Affairs Supportive Housing VAWA Violence Against Women Act VCA Voluntary Compliance Agreement VMS Voucher Management System 857 GLOSSARY-5 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 B. GLOSSARY OF SUBSIDIZED HOUSING TERMS Absorption. In portability (under subpart H of this part 982): the point at which a receiving PHA stops billing the initial PHA for assistance on behalf of a portability family. The receiving PHA uses funds available under the receiving PHA consolidated ACC. Accessible. The facility or portion of the facility can be approached, entered, and used by persons with disabilities. Adjusted income. Annual income, less allowable HUD deductions and allowances. Administrative fee. Fee paid by HUD to the PHA for administration of the program. See §982.152. Administrative plan. The plan that describes PHA policies for administration of the tenant-based programs. The Administrative Plan and any revisions must be approved by the PHA’s board and included as a supporting document to the PHA Plan. See §982.54. Admission. The point when the family becomes a participant in the program. The date used for this purpose is the effective date of the first HAP contract for a family (first day of initial lease term) in a tenant-based program. Affiliated individual. With respect to an individual, a spouse, parent, brother, sister, or child of that individual, or an individual to whom that individual stands in loco parentis (in the place of a parent), or any individual, tenant, or lawful occupant living in the household of that individual Amortization payment. In a manufactured home space rental: The monthly debt service payment by the family to amortize the purchase price of the manufactured home. Annual. Happening once a year. Annual contributions contract (ACC). The written contract between HUD and a PHA under which HUD agrees to provide funding for a program under the 1937 Act, and the PHA agrees to comply with HUD requirements for the program. Annual income. All amounts not specifically excluded in 24 CFR 5.609(b), received from all sources by each member of the family who is 18 years of age or older or is the head of household, spouse or cohead, plus unearned income by or on behalf of each dependent who is under 18 years of age.The anticipated total income of an eligible family from all sources for the 12-month period following the date of determination of income, computed in accordance with the regulations. Applicant (applicant family). A family that has applied for admission to a program but is not yet a participant in the program. Area exception rent. An amount that exceeds the published FMR. See 24 CFR 982.504(b). As-paid states. States where the welfare agency adjusts the shelter and utility component of the welfare grant in accordance with actual housing costs. Assets. (See net family assets.) 858 GLOSSARY-6 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Auxiliary aids. Services or devices that enable persons with impaired sensory, manual, or speaking skills to have an equal opportunity to participate in, and enjoy the benefits of, programs or activities receiving federal financial assistance. Biennial. Happening every two years. Bifurcate. With respect to a public housing or Section 8 lease, to divide a lease as a matter of law such that certain tenants can be evicted or removed while the remaining family members’ lease and occupancy rights are allowed to remain intact. Budget authority. An amount authorized and appropriated by the Congress for payment to PHAs under the program. For each funding increment in a PHA program, budget authority is the maximum amount that may be paid by HUD to the PHA over the ACC term of the funding increment. Child. A member of the family other than the family head or spouse who is under 18 years of age. Child care expenses. 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 their 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. Citizen. A citizen or national of the United States. Cohead. An individual in the household who is equally responsible for the lease with the head of household. A family may have a cohead or spouse but not both. A cohead never qualifies as a dependent. The cohead must have legal capacity to enter into a lease. Common space. In shared housing, the space available for use by the assisted family and other occupants of the unit. Computer match. The automated comparison of databases containing records about individuals. Confirmatory review. An on-site review performed by HUD to verify the management performance of a PHA. Consent form. Any consent form approved by HUD to be signed by assistance applicants and participants to obtain income information from employers and SWICAs; return information from the Social Security Administration (including wages, net earnings from self- employment, and retirement income); and return information for unearned income from the IRS. Consent forms expire after a certain time and may authorize the collection of other information to determine eligibility or level of benefits. Congregate housing. Housing for elderly persons or persons with disabilities that meets the HQS NSPIRE standards for congregate housing. A special housing type: see 24 CFR 982.606–609. Contiguous MSA. In portability (under subpart H of part 982): An MSA that shares a common boundary with the MSA in which the jurisdiction of the initial PHA is located. 859 GLOSSARY-7 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Continuously assisted. An applicant is continuously assisted under the 1937 Act if the family is already receiving assistance under any 1937 Housing Act program when the family is admitted to the voucher program. Contract authority. The maximum annual payment by HUD to a PHA for a funding increment. Cooperative (term includes mutual housing). Housing owned by a nonprofit corporation or association, and where a member of the corporation or association has the right to reside in a particular apartment, and to participate in management of the housing. A special housing type (see 24 CFR 982.619). Covered families. Statutory term for families who are required to participate in a welfare agency economic self-sufficiency program and who may be subject to a welfare benefit sanction for noncompliance with this obligation. Includes families who receive welfare assistance or other public assistance 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 the assistance. Dating violence. Violence committed by a person who is or has been in a social relationship of a romantic or intimate nature with the victim; and where the existence of such a relationship shall be determined based on a consideration of the following factors: - The length of the relationship - The type of relationship - The frequency of interaction between the persons involved in the relationship Day laborer. An individual hired and paid one day at a time without an agreement that the individual will be hired or work again in the future. De minimis error. An error that results in a difference in the determination of a family’s adjusted income of $30 or less per month. Dependent. A member of the family (except foster children and foster adults) other than the family head or spouse, who is under 18 years of age, or is a person with a disability, or is a full-time student. Dependent child. In the context of the student eligibility restrictions, a dependent child of a student enrolled in an institution of higher education. The dependent child must also meet the definition of dependent as specified above. Disability assistance expenses. Reasonable expenses that, when combined with health and medical care expenses, exceed 10 percent of annual income and are anticipated, during the period for which annual income is computed, for attendant care and auxiliary apparatus for a disabled family member, and that are necessary to enable a family member (including the disabled member) to be employed, provided that the expenses are neither paid to a member of the family nor reimbursed by an outside source. Disabled family. A family whose head, cohead, spouse, or sole member is a person with disabilities; two or more persons with disabilities living together; or one or more persons with disabilities living with one or more live-in aides. Disabled person. See person with disabilities. 860 GLOSSARY-8 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Disallowance. Exclusion from annual income. Displaced family. A family in which each member, or whose sole member, is a person displaced by governmental action, or a person whose dwelling has been extensively damaged or destroyed as a result of a disaster declared or otherwise formally recognized pursuant to federal disaster relief laws. Domestic violence. Felony or misdemeanor crimes committed by a current or former spouse or intimate partner of the victim, under the family or domestic violence laws of the jurisdiction receiving grant funding, and in the case of victim services, includes the user or attempted use of physical abuse or sexual abuse, or a pattern of any other coercive behavior committed, enabled, or solicited to gain or maintain power and control over a victim, including verbal, psychological, economic, or technological abuse that may or may not constitute criminal behavior, by a person who is: x The current or former spouse or intimate partner of the victim, or person similarly situated to a spouse or intimate partner of the victim x A person who is cohabitating or has cohabitated with the victim as a spouse or intimate partner x A person with whom the victim shares a child in common x A person who commits acts against a youth or adult victim who is protected from those acts under the domestic or family violence laws of the jurisdiction Domicile. The legal residence of the household head or spouse as determined in accordance with state and local law. Drug-related criminal activity. The illegal manufacture, sale, distribution, or use of a drug, or the possession of a drug with intent to manufacture, sell, distribute, or use the drug. Earned income. Income or earnings from wages, tips, salaries, other employee compensation, and net income from self-employment. Earned income does not include any pension or annuity, transfer payments (meaning payments made or income received in which no goods or services are being paid for, such as welfare, social security, and governmental subsidies for certain benefits), or any cash or in-kind benefits. Economic abuse. Behavior that is coercive, deceptive, or unreasonably controls or restrains a person’s ability to acquire, use, or maintain economic resources to which they are entitle, including using coercion, fraud, and manipulation to: x Restrict a person’s access to money, assets, credit, or financial information x Unfairly use a person’s personal economic resources, including money, assets, and credit, for one’s own advantage x Exert undue influence over a person’s financial and economic behavior or decisions, including forcing default on joint or other financial obligations, exploiting powers of attorney, guardianship, or conservatorship, or to whom one has a fiduciary duty Economic self-sufficiency program. Any program designed to encourage, assist, train or facilitate the economic independence of assisted families, or to provide work for such families. Can include job training, employment counseling, work placement, basic skills training, education, English proficiency, Workfare, financial or household management, 861 GLOSSARY-9 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 apprenticeship, or any other program necessary to ready a participant to work (such as treatment for drug abuse or mental health treatment). Includes any work activities as defined in the Social Security Act (42 U.S.C. 607(d)). Also see 24 CFR 5.603(c). Elderly family. A family whose head, cohead, spouse, or sole member is a person who is at least 62 years of age; two or more persons who are at least 62 years of age living together; or one or more persons who are at least 62 years of age living with one or more live-in aides. Elderly person. An individual who is at least 62 years of age. Eligible family A family that is income eligible and meets the other requirements of the 1937 Act and Part 5 of 24 CFR. See also family. Employer identification number (EIN). The nine-digit taxpayer identifying number that is assigned to an individual, trust, estate, partnership, association, company, or corporation. Evidence of citizenship or eligible status. The documents which must be submitted as evidence of citizenship or eligible immigration status. See 24 CFR 5.508(b). Extremely low-income family. A family whose annual income does not exceed the federal poverty level or 30 percent of the median income for the area, whichever number is higher. Area median income is determined by HUD, with adjustments for smaller and larger families. HUD may establish income ceilings higher or lower than 30 percent of median income if HUD finds such variations are necessary due to unusually high or low family incomes. See 24 CFR 5.603. Facility. All or any portion of buildings, structures, equipment, roads, walks, parking lots, rolling stock, or other real or personal property or interest in the property. Fair Housing Act. Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988. Fair market rent (FMR). The rent, including the cost of utilities (except telephone), as established by HUD for units of varying sizes (by number of bedrooms), that must be paid in the housing market area to rent privately owned, existing, decent, safe, and sanitary rental housing of modest (non-luxury) nature with suitable amenities. See periodic publications in the Federal Register in accordance with 24 CFR Part 888. Family. Includes but is not limited to the following, regardless of actual or perceived sexual orientation, gender identity, or marital status, and can be further defined in PHA policy. Family includes a single person, who may be: - An elderly person, displaced person, disabled person, near-elderly person, or any other single person; - An otherwise eligible youth who has attained at least 18 years of age and not more than 24 years of age and who has left foster care, or will leave foster care within 90 days, in accordance with a transition plan described in section 475(5)(H) of the Social Security 862 GLOSSARY-10 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Act (42 U.S.C. 675(5)(H)), and is homeless or is at risk of becoming homeless at age 16 or older; or Family also includes a group of persons residing together, and such group includes, but is not limited to: - A family with or without children (a child who is temporarily away from the home because of placement in foster care is considered a member of the family); - An elderly family; - A near-elderly family; - A disabled family; - A displaced family; and - The remaining member of a tenant family. - A family with or without children (the temporary absence of a child from the home due to placement in foster care is not considered in determining family composition and family size) - An elderly family or a near-elderly family - A displaced family - The remaining member of a tenant family - A single person who is not an elderly or displaced person, or a person with disabilities, or the remaining member of a tenant family. Family rent to owner. In the voucher program, the portion of rent to owner paid by the family. Family self-sufficiency program (FSS program). The program established by a PHA within its jurisdiction to promote self-sufficiency among participating families, including the coordination of supportive services to these families (24 CFR 984.103). Family share. The portion of rent and utilities paid by the family. For calculation of family share, see 24 CFR 982.515(a). Family unit size. The appropriate number of bedrooms for a family, as determined by the PHA under the PHA subsidy standards. Federal agency. A department of the executive branch of the federal government. Foster adult. A member of the household who is 18 years of age or older and meets the definition of a foster adult under state law. In general, a foster adult is a person who is 18 years of age or older, is unable to live independently due to a debilitating physical or mental condition, and is placed with the family by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Foster child. A member of the household who meets the definition of a foster child under state law. In general, a foster child is placed with the family by an authorized placement agency (e.g., public child welfare agency) or by judgment, decree, or other order of any court of competent jurisdiction. 863 GLOSSARY-11 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Foster child care payment. A payment to eligible households by state, local, or private agencies appointed by the state to administer payments for the care of foster children. Full-time student. A person who is attending school or vocational training on a full-time basis (carrying a subject load that is considered full-time for day students under the standards and practices of the educational institution attended). See 24 CFR 5.603. Funding increment. Each commitment of budget authority by HUD to a PHA under the consolidated annual contributions contract for the PHA program. Gender identity. Actual or perceived gender-related characteristics. Gross rent. The sum of the rent to owner plus any utility allowance. Group home. A dwelling unit that is licensed by a state as a group home for the exclusive residential use of two to twelve persons who are elderly or persons with disabilities (including any live-in aide). (A special housing type: see 24 CFR 982.610–614.) Handicap. Any condition or characteristic that renders a person an individual with handicaps. (See person with disabilities.) HAP contract. The housing assistance payments contract. A written contract between the PHA and an owner for the purpose of providing housing assistance payments to the owner on behalf of an eligible family. Head of household. The adult member of the family who is the head of the household for purposes of determining income eligibility and rent. Health and medical care expenses. Any costs incurred in the diagnosis, cure, mitigation, treatment, or prevention of disease or payments for treatments affecting any structure or function of the body. Health and medical care expenses include medical insurance premiums and long-term care premiums that are paid or anticipated during the period for which annual income is computed. Household. A household includes additional people other than the family who, with the PHA’s permission, live in an assisted unit, such as live-in aides, foster children, and foster adults. Housing assistance payment. The monthly assistance payment by a PHA, which includes: (1) A payment to the owner for rent to the owner under the family's lease; and (2) An additional payment to the family if the total assistance payment exceeds the rent to owner. Housing agency (HA). See public housing agency. Housing quality standards (HQS). The HUD minimum quality standards for housing assisted under the voucher program. HUD. The U.S. Department of Housing and Urban Development. Human trafficking. A crime involving the exploitation of a person for labor, services, or commercial sex. The Trafficking Victims Protection Act of 2000 and its subsequent reauthorizations recognize and define two primary forms of human trafficking: - Sex trafficking is the recruitment, harboring, transportation, provision, obtaining, patronizing, or soliciting of a person for the purpose of a commercial sex act in which a 864 GLOSSARY-12 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 commercial sex act is induced by force, fraud, or coercion, or in which the person induced to perform such act has not attained 18 years of age. See 22 U.S.C. § 7102(11)(A). - Forced labor is the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery. See 22 U.S.C. § 7102(11)(B). Imputed asset. An asset disposed of for less than fair market value during the two years preceding examination or reexamination. Imputed asset income. The PHA-established passbook rate multiplied by the total cash value of assets. The calculation is used when net family assets exceed $50,000. Imputed welfare income. An amount of annual income that is not actually received by a family as a result of a specified welfare benefit reduction, but is included in the family’s annual income and therefore reflected in the family’s rental contribution. Income. Income from all sources of each member of the household, as determined in accordance with criteria established by HUD. Income for eligibility. Annual income. Income information means information relating to an individual’s income, including: - All employment income information known to current or previous employers or other income sources. - All information about wages, as defined in the state's unemployment compensation law, including any social security number; name of the employee; quarterly wages of the employee; and the name, full address, telephone number, and, when known, employer identification number of an employer reporting wages under a state unemployment compensation law. - Whether an individual is receiving, has received, or has applied for unemployment compensation, and the amount and the period receive. - Unearned IRS income and self-employment, wages, and retirement income. - Wage, social security, and supplemental security income data obtained from the Social Security Administration. - Independent contractor. An individual who qualifies as an independent contractor instead of an employee in accordance with the Internal Revenue Code Federal income tax requirements and whose earnings are consequently subject to the Self-Employment Tax. In general, an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. Individual with handicaps. See person with disabilities. Inflationary index. An index based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) used to make annual adjustments to the deduction for elderly disabled families, the cap for imputing returns on assets, the restriction on net family assets, 865 GLOSSARY-13 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 the amount of net assets the PHA may determine based on self-certification by the family, and the dependent deduction. Initial PHA. In portability, the term refers to both: (1) A PHA that originally selected a family that later decides to move out of the jurisdiction of the selecting PHA; and (2) A PHA that absorbed a family that later decides to move out of the jurisdiction of the absorbing PHA. Initial payment standard. The payment standard at the beginning of the HAP contract term. Initial rent to owner. The rent to owner at the beginning of the HAP contract term. Inside. Under NSPIRE, the inside of HUD housing (or “inside areas”) refers to the common areas and building systems that can be generally found within the building interior and are not inside a unit. Examples of “inside” common areas may include, basements, interior or attached garages, enclosed carports, restrooms, closets, utility rooms, mechanical rooms, community rooms, day care rooms, halls, corridors, stairs, shared kitchens, laundry rooms, offices, enclosed porches, enclosed patios, enclosed balconies, and trash collection areas. Examples of building systems include those components that provide domestic water such as pipes, electricity, elevators, emergency power, fire protection, HVAC, and sanitary services. Institution of higher education. An institution of higher education as defined in 20 U.S.C. 1001 and 1002. See Exhibit 3-2 in this Administrative Plan. Jurisdiction. The area in which the PHA has authority under state and local law to administer the program. Landlord. Either the owner of the property or their representative, or the managing agent or their representative, as shall be designated by the owner. Lease. A written agreement between an owner and a tenant for the leasing of a dwelling unit to the tenant. The lease establishes the conditions for occupancy of the dwelling unit by a family with housing assistance payments under a HAP contract between the owner and the PHA. Life Threatening deficiency. Under NSPIRE, the life-threatening category includes deficiencies that, if evident in the home or on the property, present a high risk of death or severe illness or injury to a resident. Live-in aide. A person who resides with one or more elderly persons, or near-elderly persons, or persons with disabilities, and who: - Is determined to be essential to the care and well-being of the persons; - Is not obligated for the support of the persons; and - Would not be living in the unit except to provide the necessary supportive services. Living/sleeping room. A living room may be used as sleeping (bedroom) space, but no more than two persons may occupy the space. A bedroom or living/sleeping room must have at least one window and two electrical outlets in proper operating condition. See HCV GB p. 10-6 and 24 CFR 982.401. Local preference. A preference used by the PHA to select among applicant families. 866 GLOSSARY-14 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Low deficiency. Under NSPIRE, deficiencies critical to habitability but not presenting a substantive health or safety risk to resident. Low-income family. A family whose income does not exceed 80 percent of the median income for the area as determined by HUD with adjustments for smaller or larger families, except that HUD may establish income limits higher or lower than 80 percent for areas with unusually high or low incomes. Manufactured home. A manufactured structure that is built on a permanent chassis, is designed for use as a principal place of residence, and meets the HQSNSPIRE standards. (A special housing type: see 24 CFR 982.620 and 982.621.) Manufactured home space. In manufactured home space rental: A space leased by an owner to a family. A manufactured home owned and occupied by the family is located on the space. See 24 CFR 982.622 to 982.624. Medical expenses. Medical expenses, including medical insurance premiums, that are anticipated during the period for which annual income is computed, and that are not covered by insurance (a deduction for elderly or disabled families only). These allowances are given when calculating adjusted income for medical expenses in excess of 3 percent of annual income. Minor. A member of the family household other than the family head or spouse, who is under 18 years of age. Mixed family. A family whose members include those with citizenship or eligible immigration status, and those without citizenship or eligible immigration status. Moderate deficiency. Under NSPIRE, this includes deficiencies that, if evident in the home or on the property, present a moderate risk of an adverse medical event requiring a healthcare visit; cause temporary harm; or if left untreated, cause or worsen a chronic condition that may have long-lasting adverse health effects; or that the physical security or safety of a resident or their property could be compromised. Monthly adjusted income. One twelfth of adjusted income. Monthly income. One twelfth of annual income. Mutual housing. Included in the definition of cooperative. National. A person who owes permanent allegiance to the United States, for example, as a result of birth in a United States territory or possession. National Standards for the Physical Inspection of Real Estate. HUD’s housing inspection approach. NSPIRE is a single inspection standard for all units under the Public Housing, HCV, Multifamily, and Community Planning and Development (CPD) programs. NSPIRE’s focus is on the areas that impact residents the most, such as the dwelling unit. Near-elderly family. A family whose head, spouse, or sole member is a person who is at least 50 years of age but below the age of 62; or two or more persons, who are at least 50 years of age but below the age of 62, living together; or one or more persons who are at least 50 years of age but below the age of 62 living with one or more live-in aides. 867 GLOSSARY-15 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Net family assets. The net cash value of all assets owned by the family, after deducting reasonable costs that would be incurred in disposing real property, savings, stocks, bonds, and other forms of capital investment. In determining net family assets, PHAs or owners, as applicable, must include the value of any business or family assets disposed of by an applicant or tenant for less than fair market value (including a disposition in trust, but not in a foreclosure or bankruptcy sale) during the two years preceding the date of application for the program or reexamination, as applicable, in excess of the consideration received therefor. In the case of a disposition as part of a separation or divorce settlement, the disposition will not be considered to be for less than fair market value if the applicant or tenant receives consideration not measurable in dollar terms. Negative equity in real property or other investments does not prohibit the owner from selling the property or other investments, so negative equity alone would not justify excluding the property or other investments from family assets. Net family assets. (1) Net cash value after deducting reasonable costs that would be incurred in disposing of real property, savings, stocks, bonds, and other forms of capital investment, excluding interests in Indian trust land and excluding equity accounts in HUD homeownership programs. The value of necessary items of personal property such as furniture and automobiles shall be excluded. - In cases where a trust fund has been established and the trust is not revocable by, or under the control of, any member of the family or household, the value of the trust fund will not be considered an asset so long as the fund continues to be held in trust. Any income distributed from the trust fund shall be counted when determining annual income under §5.609. - In determining net family assets, PHAs or owners, as applicable, shall include the value of any business or family assets disposed of by an applicant or tenant for less than fair market value (including a disposition in trust, but not in a foreclosure or bankruptcy sale) during the two years preceding the date of application for the program or reexamination, as applicable, in excess of the consideration received therefore. In the case of a disposition as part of a separation or divorce settlement, the disposition will not be considered to be for less than fair market value if the applicant or tenant receives important consideration not measurable in dollar terms. Noncitizen. A person who is neither a citizen nor national of the United States. Notice of funding availability (NOFA). For budget authority that HUD distributes by competitive process, the Federal Register document that invites applications for funding. This document explains how to apply for assistance and the criteria for awarding the funding. Office of General Counsel (OGC). The General Counsel of HUD. Outside. Under NSPIRE, outside of HUD housing (or “outside areas”) refers to the building site, building exterior components, and any building systems located outside of the building or unit. Examples of “outside” components may include fencing, retaining walls, grounds, lighting, mailboxes, project signs, parking lots, detached garage or carport, driveways, play areas and equipment, refuse disposal, roads, storm drainage, non-dwelling buildings, and walkways. Components found on the exterior of the building are also considered outside areas, and examples may include doors, attached porches, attached patios, balconies, car ports, fire escapes, foundations, lighting, roofs, walls, and windows. 868 GLOSSARY-16 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Overcrowded. A unit that does not meet the following HQS space standards: (1) Provide adequate space and security for the family; and (2) Hhave at least one bedroom or living/sleeping room for each two persons. Owner. Any person or entity with the legal right to lease or sublease a unit to a participant. PHA Plan. The annual plan and the 5-year plan as adopted by the PHA and approved by HUD. PHA’s quality control sample. An annual sample of files or records drawn in an unbiased manner and reviewed by a PHA supervisor (or by another qualified person other than the person who performed the original work) to determine if the work documented in the files or records conforms to program requirements. For minimum sample size see CFR 985.3. Participant (participant family). A family that has been admitted to the PHA program and is currently assisted in the program. The family becomes a participant on the effective date of the first HAP contract executed by the PHA for the family (first day of initial lease term). Payment standard. The maximum monthly assistance payment for a family assisted in the voucher program (before deducting the total tenant payment by the family). Person with disabilities. For the purposes of program eligibility. A person who has a disability as defined under the Social Security Act or Developmental Disabilities Care Act, or a person who has a physical or mental impairment expected to be of long and indefinite duration and whose ability to live independently is substantially impeded by that impairment but could be improved by more suitable housing conditions. This includes persons with AIDS or conditions arising from AIDS but excludes persons whose disability is based solely on drug or alcohol dependence. For the purposes of reasonable accommodation. A person with a physical or mental impairment that substantially limits one or more major life activities, a person regarded as having such an impairment, or a person with a record of such an impairment. Portability. Renting a dwelling unit with a Section 8 housing choice voucher outside the jurisdiction of the initial PHA. Premises. The building or complex in which the dwelling unit is located, including common areas and grounds. Previously unemployed. With regard to the earned income disallowance, a person with disabilities who has earned, in the 12 months previous to employment, no more than would be received for 10 hours of work per week for 50 weeks at the established minimum wage. Private space. In shared housing, the portion of a contract unit that is for the exclusive use of an assisted family. Processing entity. The person or entity that, under any of the programs covered, is responsible for making eligibility and related determinations and any income reexamination. In the HCV program, the “processing entity” is the “responsible entity.” Project owner. The person or entity that owns the housing project containing the assisted dwelling unit. Public assistance. Welfare or other payments to families or individuals, based on need, which are made under programs funded, separately or jointly, by federal, state, or local governments. 869 GLOSSARY-17 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Public housing agency (PHA). Any state, county, municipality, or other governmental entity or public body, or agency or instrumentality of these entities, that is authorized to engage or assist in the development or operation of low-income housing under the 1937 Act. Qualified family (under the earned income disallowance). A family participating in an applicable assisted housing program or receiving HCV assistance: - Whose annual income increases as a result of employment of a family member who is a person with disabilities and who was previously unemployed for one or more years prior to employment; - Whose annual income increases as a result of increased earnings by a family member who is a person with disabilities during participation in any economic self-sufficiency or other job training program; or - Whose annual income increases, as a result of new employment or increased earnings of a family member who is a person with disabilities, during or within six months after receiving assistance, benefits or services under any state program for temporary assistance for needy families funded under Part A of Title IV of the Social Security Act, as determined by the responsible entity in consultation with the local agencies administering temporary assistance for needy families (TANF) and Welfare-to-Work (WTW) programs. The TANF program is not limited to monthly income maintenance, but also includes such benefits and services as one-time payments, wage subsidies and transportation assistance-- provided that the total amount over a six-month period is at least $500. Qualified census tract. With regard to certain tax credit units, any census tract (or equivalent geographic area defined by the Bureau of the Census) in which at least 50 percent of households have an income of less than 60 percent of Area Median Gross Income (AMGI), or where the poverty rate is at least 25 percent, and where the census tract is designated as a qualified census tract by HUD. Real property. Real property has the same meaning as that provided under the law of the state in which the property is located. Reasonable rent. A rent to owner that is not more than rent charged: (1) For comparable units in the private unassisted market; and (2) For comparable unassisted units in the premises. Reasonable accommodation. A change, exception, or adjustment to a rule, policy, practice, or service to allow a person with disabilities to fully access the PHA’s programs or services. Receiving PHA. In portability: A PHA that receives a family selected for participation in the tenant-based program of another PHA. The receiving PHA issues a voucher and provides program assistance to the family. Recertification. Sometimes called reexamination. The process of securing documentation of total family income used to determine the rent the tenant will pay for the next 12 months if there are no additional changes to be reported. Remaining member of the tenant family. The person left in assisted housing who may or may not normally qualify for assistance on their own circumstances (i.e., an elderly spouse dies, leaving widow age 47 who is not disabled). 870 GLOSSARY-18 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Rent to owner. The total monthly rent payable to the owner under the lease for the unit (also known as contract rent). Rent to owner covers payment for any housing services, maintenance, and utilities that the owner is required to provide and pay for. Residency preference. A PHA preference for admission of families that reside anywhere in a specified area, including families with a member who works or has been hired to work in the area (See residency preference area). Residency preference area. The specified area where families must reside to qualify for a residency preference. Responsible entity. For the public housing and the Section 8 tenant-based assistance, project- based voucher assistance, and moderate rehabilitation programs, the responsible entity means the PHA administering the program under an ACC with HUD. For all other Section 8 programs, the responsible entity means the Section 8 owner. Secretary. The Secretary of Housing and Urban Development. Section 8. Section 8 of the United States Housing Act of 1937. Section 8 covered programs. All HUD programs which assist housing under Section 8 of the 1937 Act, including Section 8 assisted housing for which loans are made under Section 202 of the Housing Act of 1959. Section 214. Section 214 of the Housing and Community Development Act of 1980, as amended. Section 214 covered programs. The collective term for the HUD programs to which the restrictions imposed by Section 214 apply. These programs are set forth in 24 CFR 5.500. Security deposit. A dollar amount (maximum set according to the regulations) which can be used for unpaid rent or damages to the owner upon termination of the lease. Seasonal worker. An individual who is hired into a short-term position and the employment begins about the same time each year (such as summer or winter). Typically, the individual is hired to address seasonal demands that arise for the particular employer or industry. Set-up charges. In a manufactured home space rental, charges payable by the family for assembling, skirting, and anchoring the manufactured home. Severe deficiency. Under NSPIRE, the severe category includes deficiencies that, if evident in the home or on the property, present a high risk of permanent disability, or serious injury or illness, to a resident; or the physical security or safety of a resident or their property would be seriously compromised. Sexual assault. Any nonconsensual sexual act proscribed by federal, tribal, or state law, including when the victim lacks capacity to consent (42 U.S.C. 13925(a)). Sexual orientation. Homosexuality, heterosexuality or bisexuality. Shared housing. A unit occupied by two or more families. The unit consists of both common space for shared use by the occupants of the unit and separate private space for each assisted family. (A special housing type: see 24 CFR 982.615–982.618.) Single person. A person living alone or intending to live alone. 871 GLOSSARY-19 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Single room occupancy housing (SRO). A unit that contains no sanitary facilities or food preparation facilities, or contains either, but not both, types of facilities. (A special housing type: see 24 CFR 982.602–982.605.) Small rural public housing agency (PHA). Section 38 defines the term “small public housing agency” as a public housing agency “for which the sum of the number of public housing dwelling units administered by the agency and the number of vouchers under section 8(o) administered by the agency is 550 or fewer” and “that predominantly operates in a rural area, as described in section 1026.35(b)(2)(iv)(A) of title 12, Code of Federal Regulations.” After consideration of the public comments discussed above, HUD is interpreting “predominantly operates in a rural area” to mean a small PHA that: (1) Has a primary administrative building with a physical address in a rural area as described in 12 CFR 1026.35(b)(2)(iv)(A); or (2) more than 50 percent of its combined public housing units and voucher units under section 8(o) are in rural areas as described in 12 CFR 1026.35(b)(2)(iv)(A). HUD also clarifies that voucher units under section 8(o) include those in the tenant-based Housing Choice Voucher (HCV) program and the Project-Based Voucher (PBV) program. Social security number (SSN). The nine-digit number that is assigned to a person by the Social Security Administration and that identifies the record of the person’s earnings reported to the Social Security Administration. The term does not include a number with a letter as a suffix that is used to identify an auxiliary beneficiary. Special admission. Admission of an applicant that is not on the PHA waiting list or without considering the applicant’s waiting list position. Special housing types. See subpart M of part 982. Subpart M states the special regulatory requirements for: SRO housing, congregate housing, group homes, shared housing, cooperatives (including mutual housing), and manufactured homes (including manufactured home space rental). Specified welfare benefit reduction. Those reductions of welfare benefits (for a covered family) that may not result in a reduction of the family rental contribution. A reduction of welfare benefits because of fraud in connection with the welfare program, or because of welfare sanction due to noncompliance with a welfare agency requirement to participate in an economic self-sufficiency program. Spouse. The marriage partner of the head of household. Stalking. To follow, pursue, or repeatedly commit acts with the intent to kill, injure, harass, or intimidate; or to place under surveillance with the intent to kill, injure, harass, or intimidate another person; and in the course of, or as a result of, such following, pursuit, surveillance, or repeatedly committed acts, to place a person in reasonable fear of the death of, or serious bodily injury to, or to cause substantial emotional harm to (1) that person, (2) a member of the immediate family of that person, or (3) the spouse or intimate partner of that person. State wage information collection agency (SWICA). The state agency, including any Indian tribal agency, receiving quarterly wage reports from employers in the state, or an alternative system that has been determined by the Secretary of Labor to be as effective and timely in providing employment-related income and eligibility information. 872 GLOSSARY-20 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 Subsidy standards. Standards established by a PHA to determine the appropriate number of bedrooms and amount of subsidy for families of different sizes and compositions. Suspension. The term on the family’s voucher stops from the date the family submits a request for PHA approval of the tenancy, until the date the PHA notifies the family in writing whether the request has been approved or denied. This practice is also called tolling. Tax credit rent. With regard to certain tax credit units, the rent charged for comparable units of the same bedroom size in the building that also receive the low-income housing tax credit but do not have any additional rental assistance (e.g., tenant-based voucher assistance). Technological abuse. An act or pattern of behavior that occurs within domestic violence, dating violence, sexual assault, or stalkingSexual assault, stalking, or human trafficking and is intended to harm, threaten, intimidate, control, stalk, harass, impersonate, exploit, extort, or monitor another person, except as otherwise permitted by law, that occurs using any form of technology, including but not limited to: - Internet enabled devices - Online spaces and platforms - Computers - Mobile devices - Cameras and imaging programs - Apps - Location tracking devices - Communication technologies - Any other emergency technologies Tenancy addendum. For the housing choice voucher program, the lease language required by HUD in the lease between the tenant and the owner. Tenant. The person or persons (other than a live-in aide) who executes the lease as lessee of the dwelling unit. Tenant rent to owner. See family rent to owner. Term of lease. The amount of time a tenant agrees in writing to live in a dwelling unit. Total tenant payment (TTP). The total amount the HUD rent formula requires the tenant to pay toward rent and utilities. Unearned income. Any annual income, as calculated under 24 CFR 5.609, that is not earned income. Unit. Under NSPIRE, a unit (or “dwelling unit”) of HUD housing refers to the interior components of an individual unit. Examples of components included in the interior of a unit may include the balcony, bathroom, call-for-aid (if applicable), carbon monoxide devices, ceiling, doors, electrical systems, enclosed patio, floors, HVAC (where individual units are provided), kitchen, lighting, outlets, smoke detectors, stairs, switches, walls, water heater, and windows.Residential space for the private use of a family. The size of a unit is based on 873 GLOSSARY-21 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 the number of bedrooms contained within the unit and generally ranges from zero (0) bedrooms to six (6) bedrooms. Utilities. Water, electricity, gas, other heating, refrigeration, cooking fuels, trash collection, and sewage services. Telephone service is not included. Utility allowance. If the cost of utilities (except telephone) and other housing services for an assisted unit is not included in the tenant rent but is the responsibility of the family occupying the unit, an amount equal to the estimate made or approved by a PHA or HUD of the monthly cost of a reasonable consumption of such utilities and other services for the unit by an energy- conservative household of modest circumstances consistent with the requirements of a safe, sanitary, and healthful living environment. Utility reimbursement. In the voucher program, the portion of the housing assistance payment which exceeds the amount of rent to owner. Utility hook-up charge. In a manufactured home space rental: Costs payable by a family for connecting the manufactured home to utilities such as water, gas, electrical and sewer lines. Very low-income family. A low-income family whose annual income does not exceed 50 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. HUD may establish income limits higher or lower than 50 percent of the median income for the area on the basis of its finding that such variations are necessary because of unusually high or low family incomes. This is the income limit for the housing choice voucher program. Veteran. A person who has served in the active military or naval service of the United States at any time and who shall have been discharged or released therefrom under conditions other than dishonorable. Violence Against Women Act (VAWA). Prohibits denying admission to the program to an otherwise qualified applicant or terminating assistance on the basis that the applicant or program participant is or has been a victim of domestic violence, dating violence, sexual assault, stalking or human trafficking. Violent criminal activity. Any illegal criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force against the person or property of another. Voucher (housing choice voucher). A document issued by a PHA to a family selected for admission to the housing choice voucher program. This document describes the program and the procedures for PHA approval of a unit selected by the family. The voucher also states obligations of the family under the program. Voucher holder. A family holding a voucher with an unexpired term (search time). Voucher program. The housing choice voucher program. Waiting list. A list of families organized according to HUD regulations and PHA policy who are waiting for a unit to become available. Waiting list admission. An admission from the PHA waiting list. Welfare assistance. Income assistance from federal or state welfare programs, including assistance provided under TANF and general assistance. Does not include assistance directed 874 GLOSSARY-22 Administrative Plan - HCV Program Revised 12/05/202307/09/2024 solely to meeting housing expenses, nor programs that provide health care, child care or other services for working families. For the FSS program (24 CFR 984.103), welfare assistance includes only cash maintenance payments designed to meet a family’s ongoing basic needs. Does not include nonrecurring short term benefits designed to address individual crisis situations, work subsidies, supportive services such as child care and transportation provided to families who are employed, refundable earned income tax credits, contributions to and distributions from Individual Development Accounts under TANF, services such as counseling, case management, peer support, child care information and referral, financial empowerment, transitional services, job retention, job advancement, and other employment- related services that to not provide basic income support, amounts solely directed to meeting housing expenses, amounts for health care, Supplemental Nutrition Assistance Program (SNAP) and emergency rental and utilities assistance, SSI, SSDI, or social security, and child-only or non-needy TANF grants made to or on behalf of a dependent child solely on the basis of the child’s need and not the need of the child’s current non-parental caretaker. 875 876 877 878 THE BOARD OF COMMISSIONERS HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA RESOLUTION NO. 5260 ESTABLISHING SALARY AND BENEFIT CHANGES FOR REPRESENTED EMPLOYEES The Board of Commissioners of the Housing Authority of the County of Contra Costa RESOLVES that: WHEREAS, the Executive Director of the Housing Authority of the County of Contra Costa has submitted a Memorandum of Understanding to be entered into with Public Employees Union, Local #1/AFSCME providing for wages, non-healthcare benefits, and other employment conditions for the term of July 1, 2024, through June 30, 2027; NOW, THEREFORE BE IT RESOLVED that the Memorandum of Understanding referred to above, having been fully considered, is APPROVED. PASSED AND ADOPTED ON ______________________________________by the following vote of the Commissioners. AYES: NOES: ABSENT: ABSTAIN: I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND ENTERED ON THE MINUTES OF THE BOARD OF COMMISSIONERS ON THE DATE SHOWN. ATTESTED______________________________ JOSEPH VILLARREAL, CLERK OF THE BOARD OF COMMISSIONERS AND EXECUTIVE DIRECTOR BY____________________________________ 879 MEMORANDUM OF UNDERSTANDING Between HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA And Public Employees Union, Local #1/AFSCME July 1, 2024 through June 30, 2027 880 i HACCC Local #1/AFSCME MOU 2021-2024 MEMORANDUM OF UNDERSTANDING HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA TABLE OF CONTENTS PREAMBLE _________________________________________________________________ 1 Section 1. Recognition _____________________________________________________ 1 Section 2. Management Rights ______________________________________________ 1 Section 3. Union Rights ____________________________________________________ 2 Section 4. No Discrimination Provisions ______________________________________ 2 Section 5. No Strike and No Lockout Guarantee ________________________________ 3 Section 6. Union Representation ____________________________________________ 4 Section 7. Seniority _______________________________________________________ 5 Section 8. Layoff __________________________________________________________ 7 Section 9. Holidays Observed _______________________________________________ 9 Section 10. Vacation Leave _________________________________________________ 10 Section 11. Paid Sick Leave ________________________________________________ 11 Section 12. Workers' Compensation _________________________________________ 13 Section 13. Jury Duty and Witness Duty ______________________________________ 15 Section 14. Leaves of Absence Without Pay ___________________________________ 16 Section 15. Family Medical Leave ____________________________________________ 16 Section 16. Bereavement Leave _____________________________________________ 18 Section 17. Restoration of Service Credits _____________________________________ 18 Section 18. Days and Hours of Work _________________________________________ 19 Section 19. Rest and Clean-up Periods Rest Periods ____________________________ 19 Section 20. Health and Safety _______________________________________________ 19 Section 21. Wages and Classifications _______________________________________ 20 Section 22. Employment ___________________________________________________ 21 881 ii HACCC Local #1/AFSCME MOU 2021-2024 Section 23. Benefits _______________________________________________________ 21 Section 24. Overtime ______________________________________________________ 23 Section 25. Grievance Procedure ____________________________________________ 24 Section 26. Disciplinary Actions _____________________________________________ 27 Section 27. Posting and Filling Vacant Positions _______________________________ 29 Section 28. Working Out of Classification _____________________________________ 32 Section 29. Personnel Files _________________________________________________ 33 Section 30. Miscellaneous Pay Provisions ____________________________________ 34 Section 31. Performance Evaluation _________________________________________ 35 Section 32. Voluntary Demotions ____________________________________________ 35 Section 33. Clothing _______________________________________________________ 36 Section 34. Catastrophic Leave _____________________________________________ 38 Section 35. Miscellaneous Provisions ________________________________________ 39 Section 36. Scope of Agreement_____________________________________________ 41 Section 37. Saving Clause __________________________________________________ 41 Section 38. Term __________________________________________________________ 42 EXHIBIT A Represented Employees Salaries _______________________________ - 43 - EXHIBIT B 4/10 Work Schedule Plan ______________________________________ - 46 - EXHIBIT C Maintenance Division On-Call Procedures _______________________ - 49 - EXHIBIT D Maintenance Mechanic Pay Level B Qualifications ________________ - 53 - 882 1 HACCC Local #1/AFSCME MOU 2021-2024 MEMORANDUM OF UNDERSTANDING Between HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA and PUBLIC EMPLOYEES’ UNION, LOCAL #1/AFSCME PREAMBLE This Memorandum of Understanding (MOU) is made and entered into as of the 1 day of July, 2024 by and between the Housing Authority of the County of Contra Costa (hereinafter called HACCC or "Authority") and the Public Employees Union, Local #1/ AFSCME (hereinafter called Local #1 or "Union"). The Authority is a public body, corporate and politic, organized and existing under and pursuant to the laws of the State of California. As such, the Authority must comply with all applicable laws of the United States and the State of California, including provisions of the Meyers-Milias Brown Act, and all administrative regulations promulgated by the Department of Housing and Urban Development (hereinafter referred to as "HUD"), pursuant to the Annual Contributions and Administration Contract between it and the Authority. Section 1. Recognition Public Employees’ Union, Local #1/AFSCME is hereby recognized as the exclusive bargaining representative for all employees in the job classifications hereafter set forth in Exhibit A. The term "employee" as used in this MOU, unless it is clearly indicated otherwise, shall be deemed to mean only those employees who are included in the bargaining unit hereinafter set forth in Exhibit A of this MOU. There shall be two (2) bargaining units: Maintenance and Clerical. Section 2. Management Rights The Authority has the right to manage the Authority and to direct the work force including the determination of staffing requirements, classifications, and content of job descriptions. The Authority has the right to establish reasonable rules and regulations. Such rules and regulations so established shall be conspicuously posted. All management rights and functions, except those which are clearly and expressly abridged by this MOU, shall remain vested with the Authority. The Authority shall have full freedom in determining the qualifications and hiring of new employees for positions covered under this MOU. 883 2 HACCC Local #1/AFSCME MOU 2021-2024 Section 3. Union Rights 3.1 Duty of Fair Representation Local #1/AFSCME agrees that it has a duty to provide fair and non-discriminatory representation to all employees in all classes in the unit for which this section is applicable regardless of whether they are members of Local #1/AFSCME. 3.2 Notice . An employee employed in or hired into a job class represented by Local #1/AFSCME shall be notified that the Housing Authority has a MOU with the Union regarding wages, benefits and terms and conditions of employment. 3.3 Indemnification All provisions regarding Union membership are governed by the Union. Local #1/AFSCME shall indemnify, defend, and hold the Housing Authority harmless against any and all claims, demands, suits, orders or judgments, or other forms of liability that arise out of or by reason of this Local #1/AFSCME membership section, or action taken or not taken by the Housing Authority under this Section. This includes, but is not limited to, the Housing Authority's Attorneys' fees and costs. The provisions of this subsection shall not be subject to the grievance procedure. 3.4 Bargaining Unit Update The Housing Authority shall monthly furnish a list of all new hires within the bargaining unit to Local #1/AFSCME. 3.5 Union Organizational Security Employees who are currently members of the Union, or are new or returning members, may authorize deductions of member dues or initiation fees and/or assessments. Union deduction authorizations and cancellations will be provided to the employer by the Union. Section 4. No Discrimination Provisions 4.1 No Discrimination There shall be no discrimination because of race, religious creed, color, national origin, sex, sexual orientation, or Union protected activity against any employee of the Employer or by anyone employed by the Authority; and to the extent prohibited by applicable state and federal law there shall be no discrimination because of age. 4.2 Americans With Disabilities Act (ADA) Accommodation There shall be no discrimination against any disabled person solely because of such disability unless that disability prevents the person from meeting the minimum standards established for the position. The Employer and the Union recognize that the Authority has an obligation to reasonably accommodate disabled employees. If by reason of the aforesaid 884 3 HACCC Local #1/AFSCME MOU 2021-2024 requirement the Authority contemplates actions to provide reasonable accommodation to an individual employee in compliance with laws covering employees with disabilities which are in conflict with any provision of this Agreement, the Union will be advised of such proposed accommodation. Upon request, the Authority will meet and confer with the Union on the impact of such accommodation. If the Authority and the Union do not reach agreement, the Authority may implement the accommodation if required by law without further negotiations. Nothing in this MOU shall preclude the Authority from taking actions necessary to comply with the requirements of the law. 4.3 No Harassment Provision The Authority does not tolerate harassment of or by employees at the workplace or in any work-related situation. Harassment is any treatment of an employee which has the purpose or effect of affecting employment decisions concerning an individual, or unreasonably interfering with an individual's work performance, or creating an intimidating or hostile work environment. Such conduct includes but is not limited to unwelcome sexual advances, requests for sexual favors, and other verbal, or physical conduct of a sexual nature, arbitrary or capricious changes of assignments, or conduct of an Authority employee which creates a hostile work environment. All employees are required to comply with this provision. Should any employee learn of or be advised of a possible infraction of this provision, they should immediately report the incident to their supervisor or to Human Resources. An employee who witnesses or believes that they have been the object of harassment should notify their supervisor or Human Resources. The Authority will investigate all reports of harassment and will take appropriate remedial action. The Authority considers harassment a serious offense and any employee who is reasonably believed to have violated this provision may be subject to discipline, up to and including termination. Section 5. No Strike and No Lockout Guarantee 5.1 No Strike The Union and its officials will not, directly or indirectly, take part in any action or strike against the operation of the Authority during the term of this MOU. In the event an unauthorized work stoppage occurs, Union shall, as soon as possible and after written notification by the Authority, post notice at the facilities that such action is unauthorized and promptly take steps to return its members to work. 885 4 HACCC Local #1/AFSCME MOU 2021-2024 5.2 No Lockout The Authority shall not conduct a lockout of its employees during the term of this MOU. Section 6. Union Representation 6.1 Official Union Representatives The Employer recognizes and agrees to work with the designated Union Stewards and Representatives of the Union in all matters relating to grievances and the interpretation of this MOU. 6.2 Shop Stewards The Union may designate three (3) Shop Stewards for each unit. A Steward shall be allowed reasonable time to investigate a specified grievance, provided it is in their assigned work area, or the Steward has received advance approval from the supervisor to leave their immediate work area. The shop Steward shall be allowed to attend meetings with management representatives, to be present at hearings where matters within the scope of representation are being considered, and at such other times as may be authorized by the Authority. Such authorization is subject to prior notification and approval of the immediate supervisor. Supervisors shall not deny Stewards a reasonable time except under extraordinary circumstances and in no case shall denial be arbitrary or capricious. 6.3 Union Access Union representatives shall have access to all employees in the unit on an individual basis during working hours. Representatives of the Union shall be permitted to enter the premises of the Employer in which the Union has members at any time during regular working hours to conduct business pertaining to the scope of representation without interference with, or interruption of, the work effort. 6.4 Unit Authorized Leave The Employer agrees that upon appropriate request from the Union designating the employee(s) and the date(s), the Employer will grant up to a maximum of three (3) days' authorized leave with pay annually for the represented unit as a whole to attend training related to Authority related Union issues. At least two (2) weeks' notice shall be given by the Union and work schedules must not be unduly interrupted. 6.5 Use of In-House Mailing Employees designated as Shop Stewards or official representatives of Union shall be granted the use of the Employer's in-house mailing for Union business. 6.6 Bulletin Boards The employer shall provide the Union with space on bulletin boards in areas where the Union has employees it represents, for the purpose of posting non-controversial Union notices. Such notices may be posted by the Steward. Although not limited to the following notices, they may include: 886 5 HACCC Local #1/AFSCME MOU 2021-2024 1) Recreational and social events of Union 2) Union meetings 3) Union elections and appointments 4) Results of Union elections 5) Other matters relating to the scope of representation In the event a dispute arises concerning the appropriateness of material posted, the Business Representative of the Union will be advised by the Executive Director of the nature of the dispute and the notices will be removed from the bulletin boards until the dispute is resolved. Section 7. Seniority 7.1 Defined Seniority is defined as the length of service from the date of hire as a permanent employee. 7.2 Loss of Seniority Seniority shall not accrue during periods of leave without pay after an absence of six (6) months. Employees shall lose their seniority for the following reasons: 1) Discharge for just cause 2) Resignation 3) Failure to return to work when recalled from layoff. The employer shall forward the return-to-work notice to the recalled employee’s last known address by certified mail, and the recalled employee shall have ten (10) days to respond after the mailing of the notice 4) Failure to return to work after expiration of a formal leave of absence 5) Retirement 6) Layoff for a continuous period of two (2) years 7) Constructive Resignation 7.3 New Employee Probation Provisions 1) All new employees shall serve a twelve (12) month probationary period. The probationary period shall commence on the date of hire and conclude exactly twelve (12) months later. If this date occurs on a Saturday or Sunday, the probation period shall end on the preceding Friday. Absences of five (5) or more days during the probationary period shall extend the probationary period by the number of days not worked. 2) All newly hired probationary employees shall receive written performance evaluations at the end of the first three (3) months of employment, at the end of six (6) months, at the end of nine (9) months, and after the first twelve (12) months of employment. If either of the first three (3) evaluations shows less than satisfactory performance, the rater shall comment in writing on those specific matters raised. The rater shall inform the employee in writing what improvements should be made to reach a satisfactory level of performance in order to achieve permanent status. 887 6 HACCC Local #1/AFSCME MOU 2021-2024 3) Probationary employees shall be granted access to the grievance procedures except for probationary releases. 4) A probationary employee may be released from employment at any time during the initial probationary period without advance notice and without right of appeal or hearing. 7.4 Promotional Employee Probation Provisions 1) An employee promoting to a higher paying classification within the bargaining unit shall serve a probation period of nine (9) months. 2) Promotional probationary employees shall be formally evaluated at three (3) months, six (6) months, and at nine (9) months. 3) Absences of five (5) or more days during the promotional probationary period may extend the probationary period by the number of days not worked. 4) At Management discretion, the promotional probationary period may be extended to allow employee to reach a satisfactory level of performance or obtain required certifications in order to achieve permanent status in promoted position. 5) Employees may be released from promotional probation without notice and without right of appeal but shall be returned to the position and step formerly held. Any employee who promotes and while on probation is terminated for cause, shall be entitled to notice and appeal as provided in this MOU. 7.5 Seniority Upon Break in Bargaining Unit Service Employees transferred or promoted to other positions within the Authority, but outside the jurisdiction of this MOU, will retain, but not accrue, their seniority in the event of subsequent transfer back to a position covered by this MOU. If the transfer or assigned work out of class is temporary in nature, the employee will continue to accrue seniority in his/her permanent position. 7.6 Seniority List The Authority shall prepare and maintain a seniority list which shall show the names, classification title, seniority unit, and seniority date of hire of all bargaining unit employees. The Union shall be given two (2) copies of the list within thirty (30) calendar days after the date of this MOU, and thereafter a current list upon request. A copy of this seniority unit list, including the same information, shall be emailed to all employees using their assigned work email address. This list shall be available for inspection by the employee and their Steward. In the event that two (2) or more employees have the same seniority date (hire date) and an incident arises which requires a seniority decision affecting those employees, the respective seniority of such employees shall be determined on an 888 7 HACCC Local #1/AFSCME MOU 2021-2024 incident by incident basis. For each incident, the names of affected employees will be placed in a lot, from which one name will be drawn by management in the presence of affected employees. The affected employee whose name is drawn will be deemed to have seniority rights over the other affected employees for this incident only, and any remaining ties shall be resolved by repeating the process. The Authority may determine the required qualifications of employees for the purpose of promotions, demotions, and employment of new employees. In determining the employee's qualifications to meet the requirements, the Authority will take into consideration: 1) The employee's knowledge of the duties to be performed and the equipment to be used; 2) The employee's performance in their current assignment or employment; and 3) The employee's training, ability and experience, if any, in similar lines of work. Section 8. Layoff 8.1 Notice of Layoff Permanent employee unit members affected by layoff shall be given no less than thirty (30) calendar days’ written notice of such action. 8.2 Order of Layoff When one (1) or more employees performing in the same classification are to be laid off for lack of work, reorganization, or lack of funds, the order of layoff shall be as follows: 1) All temporary employees 2) All probationary employees 3) All permanent employees in the inverse order of their seniority 4) Employees affected in (3) above will be allowed to accept demotion to a lower classification if they have previously held that lower classification for a period of at least six (6) months, or can meet the qualifications for the entry level position in any seniority unit, and have seniority over an incumbent in that position or the position is vacant When an employee was initially employed in an identifiable entry level position within an existing specific family grouping of classifications, that employee shall retain seniority for that entry level position even though the position has been reclassified and/or the title changed, provided the employee meets minimum qualifications required for the entry level position. 889 8 HACCC Local #1/AFSCME MOU 2021-2024 8.3 Layoff Bumping Order Employees "bumped" by the foregoing will, for purposes of this Section, be treated as notified of layoff and the same rights will apply. The employee may continue to bump into successive lower classes in which they’ve served and for which they are qualified to avoid layoff. Employees accepting demotion to a classification paid at a lower salary range will have their salaries adjusted so that they occupy the same step in the new lower range as they did in their previous range. An employee may elect to be laid off in lieu of bumping. Accepting such layoff does not affect the employee's reemployment rights under this MOU. Seniority for permanent part-time employees shall be determined by converting the employee's total hours to a full-time equivalency. Employees "bumped" and/or demoted as a result of a reorganization not associated with lack of work or lack of funds situation shall maintain their present salary and shall not receive any additional compensation until the salary of the lower position they are filling is equal to their salary. This procedure is known as "Y" rating. 8.4 Layoff Unit Transfer Rights If a vacant position is outside of the laid off employee’s unit, employees who are laid off may fill any vacant position for which they meet the minimum qualifications. Such an employee shall have preference over outside applicants. 8.5 Reemployment List The names of employees laid off shall be entered upon a reemployment list in the inverse order of seniority that they were laid off and a copy submitted to The Union. The person ranking highest on the reemployment list for a particular classification shall be offered the appointment when a permanent or permanent part-time or temporary vacancy exists in that classification prior to public advertising. The reemployment list shall be applicable for twenty-four (24) months. 890 9 HACCC Local #1/AFSCME MOU 2021-2024 Section 9. Holidays Observed 9.1 The following holidays shall be observed with pay for full-time and permanent part- time employees: New Year's Day January 1 Martin Luther King Jr. Day 3rd Monday in January Presidents’ Day 3rd Monday in February Memorial Day Last Monday in May Juneteenth Day June 19 Independence Day July 4 Labor Day First Monday in September Veterans Day November 11 Thanksgiving Day 4th Thursday in November Day after Thanksgiving Friday following Thanksgiving Christmas Day December 25 Every day declared by the governing body, by resolution, to be a holiday will be paid for eight (8) hours on the observed holiday. Employees shall be credited with 3.34 hours per month for each month of employment to be used as floating personal holiday leave. Employees shall be allowed to use such time in increments of no less than one quarter (¼) hour increments . On separation from Authority service, an employee shall be paid for any unused floating personal holiday leave at the employee's current pay rate. The Union and the Employer agree that by mutual consent any of the above holidays can be observed on a date other than listed in this Section. When a holiday falls on a Sunday, the Monday following shall be observed as the holiday. When a holiday falls on a Saturday, the preceding Friday will be observed as the holiday. Where coverage is required, the employee may have their holiday offset. If a legal holiday as set forth in this Section falls on a workday for a full-time employee on an irregular workweek, such employee will be entitled to the holiday. However, if a holiday falls on the employee’s day off, the employee will be entitled to a day off and will observe the holiday on the last workday before the holiday or first workday after the holiday. 9.2 Holiday Pay Employees who work on a holiday shall be paid one and one-half (1½) times their regular rate for all hours worked in addition to their earned holiday payment. 891 10 HACCC Local #1/AFSCME MOU 2021-2024 Section 10. Vacation Leave 10.1 Vacation Accrual 1) Employees in permanent positions are entitled to vacation with pay. Accrual is based upon straight time hours of working time per calendar month of service and begins on the date of appointment to a permanent position. 2) No employee who has been granted a leave without pay or unpaid military leave shall accrue any vacation credit during the time of such leave, nor shall an employee who is absent without pay accrue vacation credit during the absence. 10.2 Vacation Accrual Rates Employees' vacation credits accrue and the maximum accumulation thereof is listed below. All permanent employees employed under the terms of this MOU shall be entitled to vacation pay subject to the following schedule: Monthly Accrual Max Cumulative Length of Service Hours Hours Less than 11 years 10 240 Beginning 11th year 10⅔ 256 Beginning 12th year 11⅓ 272 Beginning 13th year 12 288 Beginning 14th year 12⅔ 304 Beginning 15th through 19th year 13⅓ 320 Beginning 20th through 24th year 16⅔ 400 Beginning 25th through 29th year 20 480 Beginning 30 years and up 23⅓ 560 Increased accruals begin on the first month following the month in which the employee qualifies. Accrual for portions of a month shall be prorated based on hours worked. 10.3 Vacation Use 1) Vacation credits may not be taken during the first six (6) months of employment except where sick leave has been exhausted or at the discretion of the Executive Director or designee. The use of vacation credits shall not be allowed in excess of available accrual at the time vacation is taken. Employee must present a physician’s note for the duration of vacation accrual utilized for sick leave purposes. If employee is unable to provide a physician’s note, time will be deemed unpaid. 2) Vacation leave shall be charged in no less that one quarter (¼) hour increments. 892 11 HACCC Local #1/AFSCME MOU 2021-2024 10.4 Vacation Pay Out for Separated Employees On separation from Authority service, an employee shall be paid for any unused vacation credits at the employee's then current pay rate. 10.5 Scheduling of Vacations By March 1st of each year a vacation schedule shall be drawn up for that year scheduling vacations on a departmental or operational basis. The vacation period shall be taken at a time mutually agreeable to the Employer and the employee and on a seniority basis within the department or Asset Management Project (AMP) to which the employee is regularly assigned. Employee requests for vacation shall be received no later than February 15th of each year and the approved vacation schedule shall be provided to the employees, in writing, no later than March 1st. Employer shall respond, in writing, to initial and subsequent vacation requests within ten (10) working days of submission. 10.6 Vacation Pay Option Employees may elect to receive vacation pay off equal to one-half (½) of their annual vacation accrual. The employee may utilize the vacation payoff option two times each calendar year. In no event shall an employee be paid in excess of one- half (½) of the annual accrual. In order to be eligible for the above payoff the employee must have accrued the amount of leave requested at the time of payoff. Annual leave balances will be reduced by the number of hours purchased. Section 11. Paid Sick Leave 11.1 Sick Leave Accrual All full-time permanent employees shall accumulate sick leave credit from the first day of appointment to a permanent position on the basis of eight (8) hours sick leave credit per month. Effective the first day of appointment to a permanent position, part-time employees shall accrue pro-rated credit based on the percentage of full-time hours worked. 11.2 Sick Leave Accrual for Retirement Credit Sick leave credit earned but not used may be carried from year to year and upon retirement, may be applied to longevity in the County Retirement Plan as provided for by the CCCERA Retirement Board. 11.3 Sick Leave Use Employee is responsible for notifying their reporting Supervisor or Department Director of an absence no less than one (1) hour prior to the commencement of their work shift or as soon as possible. Employee is also responsible for keeping their reporting Supervisor or Department Director informed on a continuing basis of their probable date of return to work. 893 12 HACCC Local #1/AFSCME MOU 2021-2024 For eligible employees, sick leave may be taken for one or more of the following reasons: x Diagnosis, care or treatment of an existing health condition for an employee or covered family member, as defined below. x Preventive care (medical and dental) for an employee or an employee's covered family member. x For certain, specified purposes when the employee is a victim of domestic violence, sexual assault or stalking. x The birth of the employee's child, or placement of a child with the employee for adoption or foster care (FMLA/CFRA); x For incapacity due to pregnancy, prenatal medical care or childbirth (FMLA only); x For a serious health condition that makes the employee unable to perform his or her job (FMLA/CFRA); x To care for the employee's spouse, child, or parent who has a serious health condition (FMLA/CFRA); x To care for the employee's registered domestic partner (CFRA only). For purposes of paid sick leave, a covered family member includes: x Child defined as a biological, foster or adopted child; a stepchild; or a legal ward, regardless of the age or dependency status of the child. A "child" also may be someone for whom the employee has accepted the duties and responsibilities of raising, even if they are not the employee’s legal child. x "Parent" defined as a biological, foster or adoptive parent; a stepparent; or a legal guardian of an employee or the employee's spouse or registered domestic partner. A parent may also be someone who accepted the duties and responsibilities of raising a child when the child was a minor, even if the employee is not the legal parent. x Spouse x Registered domestic partner x Grandparent or grandparent-in-law x Grandchild x Sibling Sick leave shall be charged in no less than one quarter (¼) hour increments. 11.4 Sick Leave Pay 1) For the purpose of this Section, full pay shall mean pay for the regular daily schedule of working hours for those days which the employee would have worked had the need for sick leave use not occurred, calculated at the employee's straight time rate. 2) The amount of sick pay allowance payable to an employee shall be reduced by any temporary disability benefits or indemnity that the employee may become entitled to under or by virtue of any federal, state or other statutory disability benefits. The sum of the two payments will equal no more than full 894 13 HACCC Local #1/AFSCME MOU 2021-2024 sick allowance. Benefits derived from temporary disability will be used to repurchase, on an hourly basis, charges against sick leave. 3) Sick leave will not be paid out at time of employee separation. 11.5 Sick Leave Use Verification A doctor's certificate or other reasonable proof of illness may be required by the management for probable cause and may be subject to verification by the Authority. 11.6 Sick Leave Payout Employees may, upon request, be paid for unused sick leave to a maximum of forty (40) hours under the following conditions: 1) The employee must have a minimum balance of 200 hours of sick leave on November 1st of the year preceding payment. 2) The maximum amount of sick leave that can be used during the payment year is 56 hours. 3) If an employee uses over 56 hours of sick leave during the year, they are ineligible for payment in that year. 4) The maximum payment of unused sick leave credits for the year is 40 hours. An employee must notify the Fiscal Department by November 5th of the payment year of the intent to receive payment. 5) All unused sick leave credits as of November 1st of the payment year are accrued to the employee's sick leave account. 6) Sick leave credits are reduced by the number of hours for which the employee is being paid up to a maximum of 40 hours. 7) Employees eligible for receiving payment of unused sick leave credits and electing to receive said payment will be paid on the first payday in December of the year for which the employee qualified for payment. Section 12. Workers' Compensation 12.1 Employees who leave work as a result of an on-the-job injury or illness will have the balance of that day charged to sick leave providing the time is four (4) hours or more. If less than four (4) hours remains in the scheduled work day, no time will be charged to the sick leave account. Three (3) consecutive calendar days following the last day worked constitutes a waiting period before Workers' Compensation starts. The last day worked is the workday prior to the date of injury or illness. The time the employee was scheduled to work during the Workers’ Compensation qualifying period will be charged to the employee’s leave account. In order to qualify for Workers' Compensation, the employee must be under the care of a physician. Compensable temporary disability absence for the purpose of this section is any absence due to work connected disability which qualified for temporary disability compensation under the Workers’ Compensation Law set forth in the California Labor Code. When any disability becomes permanent, the salary provided in this subsection shall terminate. 895 14 HACCC Local #1/AFSCME MOU 2021-2024 Temporary compensation is payable for the first week of disability when the injury or illness necessitates hospitalization. 1) A permanent employee shall receive seventy five percent (75%) of their regular straight time wages after integration with temporary Workers’ Compensation disability payments during any period of compensable temporary disability absence, not to exceed six (6) months from the start of temporary disability. The six (6) month’s pay limitation is per claim, not per incident. For example: An employee who takes Worker’s Compensation Leave for five (5) months and returns to work at a later date and becomes disabled again due to the original injury is only entitled to another one (1) month of supplemental pay. 2) The employee shall notify the Fiscal Department of all payments received by him/her from the Employer’s Workers’ Compensation carrier. 3) No charge or accruals will be made to leave accounts while the employee is receiving temporary disability benefits for the first six (6) months. After six (6) months of supplemental pay, the employee shall then utilize paid leave balances to supplement temporary disability payments. 4) Employees receiving Workers' Compensation or State Disability Insurance Benefits and who are "buying back" paid leave time (either sick or annual leave) shall have the amounts rounded to the nearest whole number. 5) Whenever an employee who has been injured on the job and has returned to work is required by an attending physician to leave work for treatment during working hours, the employee shall be allowed time off up to three (3) hours for such treatment without loss of pay or benefits. This provision applies only to claims that have been accepted by the Housing Authority as job connected injuries and shall terminate three (3) months after the employee’s return to work or upon the effective date the claim is closed, or settled, whichever is sooner. Any additional treatments or appointments outside of this timeframe shall be charged to employee’s sick leave accrual. If sick leave accrual is exhausted employee may use compensatory time, personal, or vacation leave accruals. 896 15 HACCC Local #1/AFSCME MOU 2021-2024 Section 13. Jury Duty and Witness Duty 13.1 Jury Duty For purposes of this Section, jury duty shall be defined as any time an employee is obligated to report to the court in response to a jury summons. When called for jury duty, Authority employees, like other citizens, are expected to discharge their jury duty responsibilities. Employees shall advise their supervisor as soon as possible if scheduled to appear for jury duty. When an employee is summoned for jury duty selection or is selected as a juror, employees may remain in a regular pay status if they waive all fees (other than mileage) and the following shall apply: 1) If an employee elects to remain in a regular pay status and waive or surrender all fees (other than mileage), the employee shall obtain from the Clerk or jury Commissioner a certificate indicating the days attended and noting that fees other than mileage are waived or surrendered. The employee shall furnish the certificate to their supervisor. 2) An employee who elects to retain all fees must take leave (vacation, personal holiday, etc.) or leave without pay. 3) If more than two hours remain in the workday, employees are to return to work following release from jury duty to complete a scheduled work day. Employees are not permitted to engage in any employment occupation before or after daily jury service that would affect their ability to properly serve as jurors. An employee on short notice standby to report to court, whose job duties make short notice response impossible or impractical, shall be given alternate work assignments for those days to enable them to respond to the court on short notice. 13.2 Witness Duty Employees called upon as a witness or an expert witness in a case arising in the course of their work may remain in their regular pay status and turn over to the Authority all fees and expenses paid to them other than mileage allowance or they may take vacation leave or leave without pay and retain all fees and expenses. Employees called to serve as witnesses in private cases or personal matters (e.g., accident suits and family relations) shall take vacation leave or leave without pay and retain all witness fees paid to them. Employees shall advise their manager or director as soon as possible if scheduled to appear for witness duty. 897 16 HACCC Local #1/AFSCME MOU 2021-2024 Section 14. Leaves of Absence Without Pay 14.1 Requests 1. Requests for Leave of Absence without pay regardless of duration shall be submitted in writing to the Executive Director and Human Resources. The Request shall state specifically the reason for the request, the date when it is desired to begin and the probable date of return. 2. Requests for an extension of approved leave must be submitted no later than thirty (30) calendar days before the expiration of the original leave end date, or upon receipt of knowledge of extended leave date, whichever is sooner. 14.2 Extended Leaves and Duration Upon written request, a Leave of Absence without pay may be granted to any permanent employee with at least one (1) year of service for a period not to exceed six (6) months, with prior approval of the Executive Director or designee for the following reasons that are not otherwise covered by FMLA, CFRA, and PDL: 1. Illness or disability not covered by paid sick leave 2. Pregnancy (in accordance with applicable law) 3. Education which would relate to the employee's career with the Authority 4. Family care 5. Other acceptable reasons Such leave may be extended beyond the six (6) month period, not to exceed one (1) year at the sole discretion of the Executive Director. 14.3 Leave of Absence Ongoing and Return to Work Status Ongoing return-to-work status reports shall be submitted directly to Human Resources. When leave of absence without pay is related to illness or injury, a Return-to-Work note is required from the provider and shall be submitted to Human Resources. The Authority may request the Employee to complete satisfactorily an employment health examination, at the expense of the Authority, before return to active employment. 14.4 Accruals During Leave Without Pay No employee who has been granted leave of absence without pay for any duration shall accrue any vacation, personal, or sick leave credit during the time of such leave. Section 15. Family Medical Leave 15.1 Family Care and Medical Leave (FMLA/CFRA) Upon request to the Executive Director, any eligible employee shall be entitled to twelve (12) weeks leave (less if so requested by the employee) in any 12-month period for any of the reasons set forth in the federal Family Medical Leave Act (FMLA) and California Family Rights Act (CFRA). The 12-month period in which the 12 week leave entitlement occurs is a “rolling” 12-month period measured backward from the date an employee uses any FMLA/CFRA leave. Under the 898 17 HACCC Local #1/AFSCME MOU 2021-2024 “rolling” 12-month period, each time an employee takes FMLA/CFRA leave, the remaining leave entitlement would be any balance of the 12 weeks which has not been used during the immediately preceding 12 months. FMLA/CFRA leave eligibility and use will be administered in accordance with the FMLA and CFRA and their implementing regulations, as may be revised from time to time. 15.2 Intermittent FMLA/CFRA The twelve (12) weeks entitlement may be in broken periods, intermittently on a regular or irregular basis, or may include reduced work schedules depending on the specific circumstances and situations surrounding the request for leave. The twelve (12) weeks will include use of available paid leave accruals and state wage replacement benefits, if eligible. 15.3 Dual Coverage In the situation where husband and wife are both employed by the Authority, the family care or medical leave entitlement based on the birth, adoption or foster care of a child is limited to an aggregate for both employees together of twelve (12) weeks during each rolling 12 month period. Employees requesting family care leave are required to advise the Executive Director or the Executive Director’s designee when their spouse is also employed by the Authority. 15.4 Reinstatement from Leave The Executive Director may assign employees on a temporary basis to perform the duties of an employee who is on a Leave of Absence. Upon the expiration of the leave of absence, the returning employee shall be reinstated to their former position and location at the same classification and pay provided that such a position exists and any employee who was temporarily assigned to that position shall revert to their former classification and location. If no comparable position exists when the employee returns from Leave of Absence, the employee may "bump" in accordance with the Layoff provisions contained in this MOU. 15.5 Leave Accrual while on Leave Employees may not accrue annual or sick leave while on Leave of Absence without pay; however, employees returning to work following a Leave of Absence without pay shall retain their accumulated sick leave, vacation, and holiday leave accrual rates. All accumulated leave shall be used prior to being granted Leave of Absence without pay. An employee shall not be required to use sick leave accruals for Family Care Leave, but may elect to do so by mutual agreement with the Employer. 15.6 Group Health Insurance Plan for FMLA/CFRA During an approved FMLA/CFRA leave, in order to continue to participate in the Authority’s health and welfare program, the Employee is required to continue to pay the Employee’s share of the required premium and the Employer will pay the Employer’s share of the required premium. While on unpaid leaves granted in excess of the FMLA/CFRA leave entitlement, the Employee is responsible for payment of the full premium cost (no Employer contribution) in order to maintain benefits. 899 18 HACCC Local #1/AFSCME MOU 2021-2024 15.7 Medical Clearance For an employee granted a Leave of Absence for medical reasons, a return-to- work note is required from the provider and shall be submitted to Human Resources. The Authority may request said employee to complete satisfactorily an employment health examination, at the expense of the Authority, before return to active employment. 15.8 Pregnancy Disability Leave Insofar as pregnancy disability leave is used under this Section for Pregnancy Disability, that time will not be considered a part of the twelve (12) week CFRA leave period. Section 16. Bereavement Leave The Authority agrees that it will grant to all employees, upon notification of the employee's supervisor, leave for up to forty (40) hours with pay at the employee’s regular rate for the purpose of arranging for and/or attending the funeral in the event of a death in the immediate family of such employee. It is understood that "immediate family" shall mean spouse, domestic partner, father, mother, son, daughter, brother, sister, grandparents, step parents or step children, grandchild, mother-in-law, father-in law, grandparent-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, or any relative or dependent residing in the home of the employee at the time of death. The Employer may require that the employee provide proof of death and/or relationship of the deceased. Upon the approval of the Executive Director, accrued sick leave may be used to attend the funeral of friends and distant relatives not listed above. Upon the approval of the Executive Director, leave in excess of forty (40) hours will be charged to the employee's accumulated sick leave or annual leave account, or approved leave without pay. Bereavement leave must be used within three (3) months of the family member's death. Section 17. Restoration of Service Credits 17.1 Voluntary Separation A separated employee in good standing who returns to active employment with the Employer within twelve (12) months from their date of separation shall have their service credits which were accrued and unused prior to their separation restored for purposes of: 1) Vacation eligibility but not vacation scheduling 2) Sick leave eligibility 3) Service awards 17.2 Layoff Separation When the separation was due to involuntary layoff, twenty four (24) months shall apply, provided the employee returns within his/her eligibility period. 900 19 HACCC Local #1/AFSCME MOU 2021-2024 Section 18. Days and Hours of Work 18.1 Normal Work Week The normal work schedule for employees shall be the 4/10 work week as authorized in the provisions of Exhibit B. In the event the 4/10 work week is terminated; the work week shall revert to eight (8) hours per day Monday through Friday. 18.2 Notification of Absence If unable to report to work, an employee shall notify their supervisor no less than one (1) hour prior to the start of the employee’s scheduled shift. Section 19. Meal Break, Rest and Clean-up Periods 19.1 Meal Break Each employee shall have an unpaid, duty-free meal break of thirty (30) minutes. 19.2 Rest Periods 1) All employees shall be granted and take a rest period of fifteen (15) minutes during each half shift or four (4) hours of work. The rest periods shall be paid at the employee's prevailing rate. Rest periods will not be combined or added to the meal breaks. Rest breaks will not be used to allow an employee to come in fifteen (15) minutes late or leave fifteen (15) minutes early. 2) When overtime is worked, employees shall have a rest period of fifteen (15) minutes at the end of their regular shift and one every two (2) hours thereafter. 19.3 Clean-up Periods Maintenance employees and other employees who become dirty from the work environment shall be allowed up to ten (10) minutes immediately prior to the end of each half of any shift for the purpose of personal clean up. Those ten (10) minutes shall be paid at the employee's prevailing rate. Section 20. Health and Safety 20.1 Safety Provisions The Authority shall make reasonable provisions to ensure the safety and health of each employee during the hours of their employment. Employees shall be required to use all safety clothing and protective devices which will be made available by the Authority and shall also be required to observe safety rules promulgated for their protection. Each employee shall be expected to immediately report any unsafe practice or condition of which they are aware to their supervisor. 901 20 HACCC Local #1/AFSCME MOU 2021-2024 20.2 Safety Equipment Requirements Safety goggles or shields, respirators and other safety equipment shall be furnished by the Authority and used by employees when required by State or Federal safety standards and laws or otherwise deemed necessary. 20.3 Joint Labor-Management Safety Committee A Local 1 safety committee is established to review matters related to employee safety. Said committee shall consist of two (2) representatives appointed by Local 1 and two (2) representatives appointed by the Authority. 20.4 Pandemic Provision The Employer agrees to meet and confer with the Union in the event a pandemic is declared by local, state, and federal public health officials. Section 21. Wages and Classifications 21.1 One-Time Lump-Sum Ratification Payment Effective upon Union ratification and Board of Commissioner approval of this Agreement, each member of the bargaining unit shall receive a one-time lump- sum payment of Two Thousand Five Hundred Dollars ($2500.00). 21.2 Market Equity Adjustments In an effort to institute a consistent practice of placing new hires at Step 1, all Bargaining Unit classifications will receive a one-time, five and a one-half percent (5.5%) Market Equity adjustment effective the first full pay period of Board of Commissioner approval. 21.3 Salary Schedules Wages shall be paid in accordance with the salary schedule as set forth in Exhibit "A" of this MOU. The first step in each range is the minimum rate and shall normally be the entry (hiring or promotion) rate for the classifications. The Executive Director may approve appointment at a higher step. The second step shall be paid after the completion of twelve (12) months of satisfactory service at the first step for new employees and at the completion of nine (9) months of satisfactory service for promotional probation employees. The third step shall be paid at completion of twelve (12) months of satisfactory service at the previous step. 21.4 Salary Upon Promotion or Work in a Higher Classification An employee promoted or reclassified to a higher classification shall be paid in the new position at least five percent (5%) above the salary rate he/she was receiving in the position from which promoted or reclassified. 21.5 Job Classifications The Employer shall meet and confer with the Union regarding salaries, minimum qualifications, and impact on employees prior to the creation of new job classifications or changes in current job classifications. 902 21 HACCC Local #1/AFSCME MOU 2021-2024 21.6 Call Back Any employee who is called back to duty shall be paid one and one-half (1½) for hours at the employee’s base rate of pay for the actual time worked. Such employee called back shall be paid a minimum of two (2) hours at the one and one-half (1½) for hours at the employee’s base rate of pay for the actual time worked for each call back. Section 22. Employment 22.1 Permanent Positions Permanent positions shall be those positions authorized by the governing board in its annual operating budget and designated to be filled by the Executive Director. Only those employees who have satisfactorily completed their probationary period may be appointed to permanent status. 22.2 Temporary Positions Temporary positions shall be those positions authorized by the Executive Director for a duration not to exceed one (1) year. Exceptions will be made to accommodate ongoing recruitment, leave of absence, and special projects as approved by the Executive Director. Employees hired for temporary positions shall be considered temporary employees. 22.3 Permanent Part-Time Positions An employee who is assigned to an authorized permanent position and who works less than forty (40) hours per week can be designated as a permanent part-time employee. Such positions shall have an authorized number of hours. Employees filling such positions shall receive benefits in accordance with the formula followed by the Authority for its permanent part-time employees. Positions filled by permanent part-time employees shall be designated as X/40 positions, with X being the number of hours worked per week. Section 23. Benefits 23.1 The Employer will offer the following benefits: 1) Medical Plan 2) Dental Plan 3) Life and Accidental Death & Dismemberment Plan 4) Long Term Disability Plan 5) I.R.C. 125 Plan (Flexible Spending Plan) 6) Vision Reimbursement Plan 7) Retirement 23.2 Effective Date of Benefit Plans Participation Generally, commencing with the first day of the following month after the date of initial employment, employees hired for permanent positions may become participating members in those plans outlined in the Benefits provisions of this MOU. 903 22 HACCC Local #1/AFSCME MOU 2021-2024 23.3 Medical Plan Contribution Rates The Employer shall contribute the following premium subsidy of the CalPERS Kaiser Premium plan towards all plans offered for the purpose of providing medical benefits: 64% Effective January 1, 2022 67% Effective January 1, 2023 70% Effective January 1, 2024 If the maximum amount is not sufficient to provide such benefit, any excess amounts necessary shall be paid for by the Employee through payroll deduction. 23.4 Dental Plan Contribution Rates The Authority shall contribute the following maximum amounts per month for the purpose of providing the dental benefits. If the maximum amount is not sufficient to provide such benefits, any excess amount necessary shall be paid for by the employee through payroll deduction. Employer Maximum Contribution for Dental Employee Only $63.72 Employee +1 $110.81 Employee +2 $186.36 23.5 Life and Accidental Death & Dismemberment Plan Permanent and Permanent Part-Time employees who regularly work thirty (30) hours or more per week shall be eligible for Life Insurance in the amount of Thirty Thousand Dollars ($30,000.00). Life and AD&D insurance shall be in accordance with the provisions of the Personnel Policy and Procedures. 23.6 Long Term Disability Plan Permanent and Permanent Part-Time employees who regularly work thirty (30) hours or more per week shall be eligible for Long Term Disability and shall be in accordance with the provisions of the Personnel Policy and Procedures. 23.7 I.R.C. 125 Plan (Flexible Spending Plan) The Employer shall provide an I.R.C. 125 Plan for Dependent Care and Health Care Spending. This Plan allows employees to elect to deduct child care costs and unreimbursed medical costs from their pay on a pre-tax basis in accordance with the plan provisions and applicable law. 23.8 Vision Reimbursement Plan The Authority will provide an employee reimbursement up to Six Hundred Dollars ($600.00) for the 3-year term of the MOU. Employees will be reimbursed for the purchase of prescription eye wear and/or frames for employees and dependents. Expenses for reimbursement must have been incurred within the 3-year MOU term. 23.9 Retirement 904 23 HACCC Local #1/AFSCME MOU 2021-2024 1) Employees who became members of the Contra Costa County Employees’ Retirement Association (CCCERA) on or before December 31, 2012, are included in Tier I, enhanced benefit of 2% at 55. 2) For employees who become members of CCCERA after December 31, 2012, retirement benefits are governed by the California Public Employees’ Pension Reform Act of 2013 (PEPRA), (Chapters 296, 297, Statutes of 2012). To the extent PEPRA conflicts with any provision of this MOU, PEPRA will govern. 23.10 Change in Plans The right to change medical and/or dental plan contents and providers during the term of the Agreement in an effort to provide comparable benefits at reduced costs shall be by agreement of both parties. 23.11 Group Health Insurance Eligibility on Leave of Absence (For other than FMLA/CFRA/PDL) Employees on an Authorized Leave of Absence and in paid status, except those on FMLA/CFRA/PDL, may maintain their health plan coverage and receive the Authority contribution towards the medical and/or dental plan premium. Once the employee is on an unpaid status, they will be responsible for the full monthly premium of their medical and/or dental coverage with no Authority contribution and must submit premium payments directly to the Authority in order to maintain group coverage. Section 24. Overtime 24.1 Overtime Defined Each hour worked in excess of ten (10) hours in a day or forty (40) hours in a week shall be paid at one and one-half (1½) times the employee's regular rate. Hours paid for but not worked shall not be considered in the computation as time worked for the purpose of computing overtime. Overtime relating to 4/10 work schedule is defined in Exhibit B of this MOU. 24.2 Distribution of Overtime (add rotational element to mechanics of process) The Authority agrees to distribute overtime hours equally, based on qualifications, whenever practical among employees in their respective classifications and departments on a seniority basis. After the first overtime assignment has been made, additional work will be offered in rotational list order. Notice of scheduled overtime will be given as soon as possible. An employee on light duty may be deemed ineligible to work overtime due to work restrictions. 24.3 Compensatory Time Off The following provisions shall apply: 1) Employees may elect to accrue compensatory time off (CTO) in lieu of 905 24 HACCC Local #1/AFSCME MOU 2021-2024 overtime pay. Eligible employees must notify their Department Head or his/her designee of their intention to accrue CTO or to receive overtime pay. 2) CTO may be accrued at the overtime rate for actual authorized overtime hours worked by the employee. 3) Employees may not accrue a CTO balance that exceeds eighty (80) hours. Once the maximum balance has been attained, authorized overtime hours will be paid at the overtime rate. If the employee's balance falls below eighty (80) hours the employee may again accrue CTO for authorized overtime hours worked until the employee's balance again reaches eighty (80) hours. 4) Accrued CTO shall be carried over for use in the next fiscal year; however, as provided in 3 above, accrued CTO balances may not exceed eighty (80) hours. 5) Employees may not use more than eighty (80) hours of CTO in any single fiscal year period of the Authority (April 1 - March 31). 6) The use of accrued CTO shall be by mutual agreement between the Department Head or designee and the employee. CTO shall not be taken when the employee will be replaced by another employee who would be eligible to receive overtime payment. This provision may be waived at the discretion of the Department Head or their designee. 7) Since employees accrue CTO at the rate of one and one-half (1½) hours for each hour of authorized overtime worked, accrued CTO balances will be paid off accordingly whenever: a. The employee changes status and is no longer eligible for CTO b. The employee separates from Housing Authority service c. The employee retires Section 25. Grievance Procedure 25.1 It is the intent of the parties to this MOU to anticipate and diminish causes of grievances and to settle any which arise, informally at the lowest practicable level of supervision and as fairly and promptly as possible. Therefore, it is agreed that there should be time limits between the initiation of a grievance and its occurrence, between steps of the grievance procedure and the time in which each answer must be given. Any grievance not initiated, or pursued by Local #1, the aggrieved employee, or the Employer, as the case may be, within these time limits, will be considered settled on the basis of the last timely demand or answer by the Employer as the case may be, unless the time is extended by agreement of both parties. At each step of the grievance procedure, the Employer shall make available any record relied upon to sustain the action which gave rise to the grievance. 906 25 HACCC Local #1/AFSCME MOU 2021-2024 25.2 Definition – Grievance A grievance is any dispute between (a) the parties, or (b) the Employer and an employee or employees with respect to the meaning, interpretation, application or enforcement of this MOU or any terms or provisions thereof and the application of the Personnel Policy. 25.3 General 1) Initial Presentation The initial (or lowest level) presentation of a grievance shall be to the immediate supervisor of the employee claiming to have a grievance. The grievance may be submitted verbally or in writing. If made in writing, this written grievance shall comply with the requirements of the Formal Presentation. 2) Formal Presentation The formal presentation of a grievance shall be written and shall state the circumstances over which the grievant claims to be aggrieved, how the meaning, interpretation, application or enforcement of this MOU is affecting them to their detriment, and the redress the employee seeks. 3) Time Limit Grievances must be filed within thirty (30) days of the incident or occurrence about which the employee claims to have a grievance. 4) Filing at Above First Step Grievances may be filed at Step 2 or Step 3, provided both parties agree that filing above Step 1 is appropriate. 25.4 Procedure Step 1 The grievance shall be presented to the immediate supervisor in accordance with the Causes paragraph of this Section. The immediate supervisor shall have seven (7) working days to respond. This response shall be written. Step 2 If the grievance is not settled at Step 1, the grievant shall present their grievance to the employee’s Department Head. The grievant shall have ten (10) working days from the time they receive the immediate supervisor's response to grieve to Step 2. The Department Head shall respond in writing within ten (10) working days after hearing the grievance. Step 3 If the grievance is not settled at Step 2, above, it shall be presented to the Executive Director or his/her designated representative within ten (10) working days following delivery of the Department Head's response. The grievance shall be presented along with all pertinent written materials to date and testimony from witnesses where required. If the grieving employee or group of employees wishes Local #1 representation in the presentation 907 26 HACCC Local #1/AFSCME MOU 2021-2024 of the case before the Executive Director, or their designated representative, such representation shall consist of not more than two (2) representatives of Local #1. The Executive Director shall reply to the grievance in writing to Local #1's office within ten (10) working days of the date of presentation of the written grievance. Step 4 A grievance which is not settled by the Executive Director may be appealed in writing to an Adjustment Board. The written notice of appeal must be filed with the Executive Director within ten (10) working days of the receipt of his/her written reply. The Adjustment Board shall be comprised of three (3) Union representatives, no more than two (2) of whom shall be either an employee of the Authority or an elected or appointed official of the Union presenting the grievance, and three (3) representatives of the Authority, no more than (2) of whom shall be either an employee of the Authority or a member of the staff of an organization employed to represent the Authority in labor relations. The Adjustment Board shall meet and render a decision within twenty (20) workdays of receipt of the written request. If the Authority fails to meet the timelines specified in Step 4 and the Union demands in writing that an Adjustment Board be convened, the Authority will convene an Adjustment Board within ten (10) workdays of receipt of request or the grievance will move to arbitration upon demand. Step 5 A grievance which is not settled by a majority decision of the Adjustment Board may be appealed in writing for final determination to an arbitrator. The written notice of appeal must be filed with the Executive Director within ten (10) working days of receipt of the written decision of the Adjustment Board. a. Arbitration Selection Within ten (10) working days after receipt of the notice of appeal, the Executive Director and the grievant(s) shall proceed with the Executive Director and Local #1 trying to select a mutually acceptable arbitrator who agrees to serve. If the parties cannot agree, a list of five (5) arbitrators will be requested from the California State Mediation and Conciliation Service, American Arbitration Association, or some other source mutually agreed upon, and each party (beginning by lot) shall alternately strike one name from the list until one name remains, who shall be the arbitrator if they agree to serve. If they will not serve, the process shall be repeated until an arbitrator is found. Notwithstanding the above an arbitrator shall be selected within thirty (30) days. b. Evidence and Full Disclosure 908 27 HACCC Local #1/AFSCME MOU 2021-2024 Neither party shall be permitted to assert in the arbitration proceedings any fact or report or written stipulation or any evidence which has not been submitted to the other party during the prior levels of the grievance procedure. Should new evidence become available, the procedure shall revert back to Step 4. c. The Arbitration The arbitrator shall promptly hold a hearing and shall issue their decision no later than thirty (30) days from the date of the close of hearing, or, if the oral hearings have been waived, from the date the first written statements and arguments are submitted to them by the parties. The decision shall be in writing and shall set forth the findings of fact, reasoning, and conclusions on the issues. It shall be submitted to the Executive Director and to the grievant and shall be final and binding on the parties. d. Costs The costs and/or fees of the arbitration and the arbitrator (including any per diem expenses, travel, and subsistence expenses), the cost of any hearing room and the cost of preparing the transcript of the hearing, if any, for the arbitrator shall be borne equally by both parties. All other costs and expenses shall be borne by the party incurring them. 25.5 Arbitration Decision Copies of the decision will be furnished to both parties. The arbitrator shall have no authority to add to, delete from, or alter any provisions of this MOU, but shall limit his/her decision to the scope, application and interpretation of the provisions of this MOU and shall make no decisions in violation of existing law. In case of a grievance involving any money claim against the Employer, no award shall be made by the arbitrator which shall allow any alleged accruals prior to the date when such grievance shall have been presented to the Employer in writing, except in cases whereby the employee or Local #1, due to lack of knowledge, could not know prior to that date that there were grounds for a claim. In such cases, retroactive claims shall be limited to a period of sixty (60) calendar days prior to the date the claim was first filed in writing. 25.6 Time Limits Grievances not appealed to the next higher step within the time limits as set forth in the above procedure shall be considered settled on the basis of the last answer and no further appeal may be made. The above time limits may be extended by mutual written agreement. Section 26. Disciplinary Actions 26.1 General Provisions A permanent employee may be suspended, demoted or dismissed by the Executive Director for cause. 909 28 HACCC Local #1/AFSCME MOU 2021-2024 26.2 Disciplinary actions used by the Employer are as follows: 1) Verbal reprimand 2) Written reprimand 3) Suspension, which shall mean disciplinary leave from work without pay or, in the alternative, a temporary reduction in pay of not more than five percent (5%) for a period of time not to exceed three months. 4) Demotion 5) Dismissal The extent of the disciplinary action taken shall be commensurate with the offense provided that the prior employment history of the employee may also be considered pertinent. While it shall be the Employer's policy to use progressive discipline, discipline may be imposed based on the severity of the offense not withstanding progressive discipline. 26.3 Causes The causes which shall be deemed sufficient for suspension, demotion, or dismissal of permanent employees shall include but are not limited to the following: 1) Unauthorized absence without leave 2) Disorderly or immoral conduct 3) Incompetency or inefficiency 4) Insubordination 5) Use of alcoholic beverages or narcotics, or being under the influence of either or both while on duty 6) Neglect of duty 7) Negligent or willful damage to the Employer's property, or waste of the Employer's supplies or equipment 8) Willful violation of a reasonable regulation or order given by a supervisor or department head regarding duties, conduct, or performance of the employee 9) Dishonesty or theft 10) Violation of Housing Authority policy 11) Excessive tardiness 12) Falsification of forms, records or reports including timecards or employment records 26.4 Notice of Intent The employee shall be provided written notice (Skelly Notice) of the intent to take disciplinary action. Verbal and written reprimands are not subject to this procedure. Such notice must be served on the employee in person or by certified or registered mail prior to the disciplinary action becoming effective. The Skelly notice must be served within thirty (30) business days after the occurrence or first knowledge of the action upon which the disciplinary action is based and shall include: 1) Statement of the nature of the disciplinary actions 2) Effective date of the action to be taken 910 29 HACCC Local #1/AFSCME MOU 2021-2024 3) Statement of the cause thereof 4) Statement in ordinary language of the specific act or the omissions upon which the cause is based 5) Statement that employee is entitled to review all written materials upon which the Authority based the decision 6) Statement advising the employee of his/her right to appeal from such action and the right to representation 26.5 Skelly Hearing After the Skelly notice has been issued, and prior to the disciplinary action being initiated, upon the request of the employee, the Executive Director shall conduct a Skelly hearing. At this hearing, the employee and their representative shall be afforded the opportunity to respond to the charges, either orally or in writing. The Executive Director may reduce or modify the intended action as a result of the Skelly hearing. 26.6 Skelly Decision Appeal Subsequent to the notice of action by the Executive Director, the employee may appeal the disciplinary order in accordance with the Grievance Procedure in this MOU. The appeal of the Executive Director's decision shall begin at Step 4 of the Grievance Procedure. Section 27. Posting and Filling Vacant Positions 27.1 Posting of all Vacant Positions A Permanent position vacancy is defined as an opening in a permanent position which occurs as a result of a promotion, demotion, transfer, termination or resignation of the incumbent, or which is a newly budgeted and approved position for which there is no incumbent. Posting of all vacant positions shall be for a minimum of seven (7) work days at all work locations and shall be concurrently posted internally and externally. A copy of the posting shall be provided to the Union at the time the vacancy is posted. The posting shall state: x The worksite or Asset Management Project (AMP) of the vacancy x The number of hours and days of work x The job classification and salary range x Minimum qualifications x Closing date of posting x Type of selection process During the posting period, the vacancy shall not be permanently filled. Any employee going on leave during the period of posting can request a copy of the notice by providing the Employer with a means of notifying the employee of the vacancy. 911 30 HACCC Local #1/AFSCME MOU 2021-2024 1) The position(s) shall be posted and all employees who meet the minimum qualifications will be encouraged to apply for either transfer or promotional opportunities. 2) Employees must apply in writing for the position, and shall clearly indicate on their application whether they wish to transfer to the newly vacated position or be considered for a promotional opportunity. 3) The Housing Authority will consider employees who meet the minimum qualifications for the position in the following order: a. Transfer requests b. Promotional opportunities c. Voluntary demotions 4) An employee is not eligible for a promotion if they were promoted once within the last twelve (12) months. An employee is not eligible for transfer if he/she has received an unsatisfactory performance evaluation during the most recent evaluation period. An employee is not eligible for transfer or promotion if he/she was demoted from a position in the past twelve (12) months or if he/she is currently subject to discipline for performance. Upon receipt of all transfer bids, Human Resources will review and determine if the internal candidate(s) meet requirements one (1) through four (4) listed above. Qualified internal candidate(s) will be invited to interview for the transfer. Internal candidate(s) selected for transfer will be placed in vacant position(s); all other candidate(s) shall be considered for any remaining positions. 27.2 Filling a Vacant Position The department having the vacancy shall first consider the most qualified applicant in order of ranking after the testing and evaluation process. 27.3 Voluntary Transfers for Permanent Positions Prior to filling a vacant permanent position, the Employer shall grant a transfer request if an employee wishes to transfer from their current work site to the vacancy, provided the vacancy is within the same classification. Voluntary transfers shall be granted in accordance with the following procedures: 1) Any employee desiring a transfer shall submit a written bid request by the close of the seven (7) day posting period. The bid request shall list all desired transfer locations in order of preference. Any employee on leave may submit a written bid request and employees about to take leave may submit a written bid request to the Human Resources Department for positions that may become available while the employee is on leave. The most senior eligible employee requesting the transfer shall receive the transfer. 2) Newly hired employees shall be eligible to submit a bid request for a transfer 912 31 HACCC Local #1/AFSCME MOU 2021-2024 immediately upon completion of the probationary period. 3) Employees who promote into a new classification shall be eligible to submit a bid request for transfer in their new classification immediately upon completion of the probationary period. 27.4 Seniority Used in Filling Position Where merit and qualifications are equal, preference in hiring permanent and permanent part-time promotional positions shall be given to the employee with the greater amount of seniority with the Employer. In the event of a dispute regarding the filling of a promotional position, the Local One Representative shall have the right to review the qualification ranking sheet summary. 27.5 External Applicants Only after all the provisions mentioned above have been met, may the Employer recruit individuals who are not current employees for the position. 27.6 Involuntary Transfer Authority management, at its sole discretion, may determine from time to time that involuntary transfers of staff are required. Involuntary transfers are the transfer of permanent employees in their existing classifications to a new worksite or work schedule. Such decisions may result from an inability to fill a vacancy through the transfer procedure or from a determination that excess staff are allocated to a certain site or work schedule. An involuntary transfer may also result from an employee returning to work following an occupational injury or illness and such employee has been determined to be permanent and stationary pursuant to ADA accommodation. This policy shall not apply to temporary transfers of less than eight (8) weeks duration to cover such things as vacation relief, sick leave/workers’ compensation absence, workload adjustments, or special work assignments as may be required by the Authority, or temporary short-term assignments to cover vacant positions which could not be filled through the voluntary transfer policy . Involuntary Transfer Procedure Employees who are subject to a temporary (less than eight [8] weeks) transfer shall be eligible for mileage reimbursement for their personal vehicle for any additional commute miles caused by the transfer. If a temporary transfer is expected to exceed eight (8) weeks in duration, the Housing Authority shall either use the below listed procedure or will meet and confer with the Union on a case-by-case basis regarding an alternative approach: 1) Management will identify the classifications and positions/work locations from which transfers are necessary. 2) Affected employees will be provided with a list of the vacancies for which they may apply. Volunteers will be considered first in accordance with Voluntary Transfer Procedures. 3) If there are insufficient or no volunteers for each assignment and involuntary 913 32 HACCC Local #1/AFSCME MOU 2021-2024 transfers are still required, the least senior qualified affected employee shall be transferred to the vacant assignment identified by management followed by the next least senior employee, in inverse order of seniority until all necessary transfers are completed. Qualified is defined as a person possessing the necessary training or experience for their specific assignment. 4) Seniority for transfer purposes shall be defined as seniority within classification. Nothing contained in this section shall prohibit the Authority and the Union from making a mutually agreed upon alternative arrangement. Involuntary transfers may not be used for disciplinary purposes. 27.7 Involuntary Transfer for Performance Monitoring Transfers may not be used for disciplinary purposes. While the Authority may temporarily transfer an employee who has received an unsatisfactory performance evaluation and/or for whom a Performance Improvement Plan (PIP) has been implemented if the employee does not have direct supervision at the employee’s worksite. The temporary transfer shall be to another location where the employee will have direct supervision until the employee meets performance requirements. No other employee shall be adversely affected by the transfer. The Authority may involuntarily transfer an employee who is the subject of a complaint of unlawful harassment or discrimination of an employee(s) if there is some basis-in-fact support the complaint. No other employee shall be adversely affected by the transfer. Any such transfer shall not be considered disciplinary. 27.8 Office Closures and Reorganization Involuntary transfers that result from a decision of the Authority to reorganize or to close an office shall be in accordance with the procedures outlined in the Involuntary Transfer Procedure with the exception that mileage will not be paid. Section 28. Working Out of Classification 28.1 Temporary Assignment 1) The Executive Director may assign employees to work in a different classification on a temporary basis. When an employee is assigned to work in a higher classification, he/she shall receive the salary for that classification for the duration of the assignment. When an employee is assigned to work in a lower classification, he/she shall be paid at his/her present salary for the duration of the assignment. 2) Assignments for ten (10) working days or less may be made by the Executive Director or his/her designee. If an assignment is to be for a period of more than ten (10) days, volunteers shall be solicited from the Unit. If there is more than one volunteer, the most senior qualified employee shall receive the temporary assignment. The employee must meet the minimum qualifications for the position to which he/she is to be assigned. Temporary assignments shall not be made for more one (1) year. Exceptions to the one 914 33 HACCC Local #1/AFSCME MOU 2021-2024 (1) year limitation will be made to accommodate ongoing recruitment, leave of absence, and special projects as approved by the Executive Director. The Employer shall not make a series of assignments of less than ten (10) working days to circumvent the intent of this Section. Section 29. Personnel Files 29.1 Access to Personnel Files Materials in personnel files of employees which may serve as a basis for affecting the status of their employment are to be made available for the inspection of the employee involved. 1) Every employee shall have the right to inspect, examine, and obtain copies of any materials in his/her employee personnel file by request to Human Resources. 2) Copies of all materials placed in the personnel file shall be provided to the employee. 3) An employee shall have the right to enter their comments to any and all materials in their personnel file. 29.2 Maintenance of Files The personnel file of each employee shall be maintained at the Authority's Central Administration office. No adverse action shall be based upon materials which are contained in the personnel file unless the materials had been previously provided to the employee. 29.3 Examination of Files An employee shall have the right to any reasonable time to examine and/or obtain copies of any material from the employee's personnel file. 1) Such review shall take place during normal business hours, and the employee shall, upon approval of their supervisor, be released from duty for a reasonable time for this purpose without salary deduction. 2) With specific written authorization from the employee, authorized representatives shall also have the right, at any reasonable interval during the regular business hours of the Housing Authority, to examine and/or obtain copies of any material from the employee's personnel file. 29.4 Confidentiality All personnel files shall be kept in confidence and shall be available for inspection only to other employees designated by the Executive Director when actually necessary in the proper administration of the Housing Authority's affairs or the supervision of the employee. 29.5 Discipline and Investigatory Documents All discipline and investigatory documents placed in an employee's file shall be signed and dated by the preparer. The employee shall be notified prior to the 915 34 HACCC Local #1/AFSCME MOU 2021-2024 material being placed in the file and shall be given the opportunity to initial and date same. Refusal to do so shall be noted on the copy placed in the file. Employee evaluations shall remain in the employee’s file. Section 30. Miscellaneous Pay Provisions 30.1 Bilingual Pay A salary differential of One Hundred Dollars ($100.00) per month shall be paid to employees utilizing verbal bilingual proficiency or Two Hundred Dollars ($200.00) per month as designated by the Executive Director or designee. Said differential shall be prorated for employees working less than full-time and/or who are on an unpaid leave of absence. Designation of positions for which bilingual proficiency is required is the sole prerogative of the Employer. The procedure for determining competency and qualifications for bilingual pay shall be determined by the employer. 30.2 Mileage Reimbursement The mileage allowance for use of personal vehicles on Authority business shall be paid according to the rates allowed by the Internal Revenue Service and shall be adjusted to reflect changes in this rate on the date it becomes effective or the first of the month following announcement of the changed rate by the Internal Revenue Service, whichever is later. 30.3 Training and Tuition Reimbursement Guidelines for reimbursement of training, tuition and book expenses for employees furthering their professional education or career development are provided in the Authority’s Policy and Procedures Manual. 30.5 On-Call Pay Maintenance “B” and Lead employees covered by this Agreement, who have successfully completed probation, may be assigned On-Call duties. Employees so assigned, shall be required to carry their assigned cellular phone and respond within the specified time. Employees assigned On-Call duties shall be assigned an Authority vehicle while responding to calls. Employees assigned On-Call duties shall be paid two (2) hours of straight time pay for each weekday and four (4) hours of straight time pay for Fridays off, Saturday, Sunday, and holidays. While responding to calls, employees shall be paid pursuant to Callback (Section 21.6) and applicable overtime provisions (Section 24.1) of this Agreement. Specific procedures are contained in the Maintenance Division’s On -Call Procedures Side Letter (Exhibit D) attached to this MOU and incorporated herein. 30.6 Longevity Pay Employees who have ten (10) or more years of Authority service shall be paid an additional two and one-half percent (2.5%) longevity pay. 916 35 HACCC Local #1/AFSCME MOU 2021-2024 Section 31. Performance Evaluation 31.1 Goal The basic goal of the employee evaluation process is to help each employee perform their present job more effectively to the mutual benefit of the individual and the Employer. 31.2 Objectives 1) To provide a means of evaluating each employee's performance in the specific context of his/her job 2) To determine individual needs for improvement and development 3) To secure continuing communication of individual development 4) To provide a basis for giving recognition for praiseworthy service 31.3 Procedure 1) The immediate supervisor has the major responsibility for the evaluation of employees under their supervision. 2) Initial hire probationary employees shall be evaluated in accordance with the Probationary Employee Evaluation provisions of Section 7.3 of this MOU. 3) Promotional probationary employees shall be formally evaluated at three (3) months, six (6) months, and at nine (9) months in accordance with Section 7.4 of this MOU. 4) Permanent employees shall be evaluated once annually. 5) Evaluation forms shall be maintained in the employee's personnel file in the Central Administration office and are available for the employee's inspection. A copy of the completed forms shall be given to the employee. 6) Employees will have an opportunity to discuss evaluations with the evaluator prior to the placement of the evaluation in the employee's personnel file. Ratings reflecting below average performance shall include specific recommendations for improvement and such ratings shall be supported by appropriate prior documentation. The employee shall have the right to respond in writing to an evaluation and such response shall be attached to the evaluation and included in the personnel file. Section 32. Voluntary Demotions 32.1 Definition A voluntary demotion shall occur when an employee voluntarily vacates their 917 36 HACCC Local #1/AFSCME MOU 2021-2024 current class and fills a vacant position in a lower paying class for which that employee meets the qualifications. 32.2 Reasons for Voluntary Demotions An employee may take a voluntary demotion when a vacancy exists in a lower classification and the employee desires to demote. 32.3 Procedure for Voluntary Demotions The procedure in the Posting and Filling Vacancies Section of this MOU shall be followed. Employees seeking a voluntary demotion under these circumstances shall be considered after employees eligible for a transfer and after employees eligible for promotion as provided for in the Posting and Filling Vacancies Section of this MOU. Employees seeking voluntary demotion in accordance with the above procedure shall be placed in the lower classification at the same step level the employee occupied in the higher class. 32.4 Voluntary Demotions Provision 1) An employee demoted to a lower paying classification within the bargaining unit shall be subject to a review period of nine (9) months. 2) An employee demoted shall be formally evaluated at three (3) months, six (6) months, and at nine (9) months. 3) Absences of five (5) or more days during the demotion review period shall extend the review period by the number of days not worked. The demotion review period may be extended to allow the employee to reach a satisfactory level of performance or obtain the required certification. 4) Any employee who is terminated for cause while in the demotion review period, shall be entitled to notice and appeal as provided in this MOU. Failure of the employee to reach a satisfactory level of performance or obtain required certifications shall be subject to termination. Section 33. Clothing 33.1 Maintenance Employees Employees assigned to the Maintenance Classification shall wear appropriately fitted long pants, Authority-provided shirts and appropriate foot gear suitable for field assignments. Dress attire should adhere to Authority Professional Appearance Standards Policy, including attendance at conferences and training. 1) Shirts The Authority shall provide Maintenance Unit employees with ten (10) shirts with Authority identification each year between September and November. The shirts will be one color and worn at all times while on duty. 918 37 HACCC Local #1/AFSCME MOU 2021-2024 The employee may choose any combination of the following, not to exceed eight (10): Long sleeve shirt Short sleeve shirt “T” shirt (of good quality cotton) Effective 2025, the Authority shall provide Maintenance Unit employees with two (2) collared shirts with Authority identification every other year between September and November. 2) Coveralls/overalls/work pants The Authority will provide a combination of five (5) pairs of regular coveralls/overalls/work pants to maintenance employees each year between September and November. In addition, the Employer will supply disposable coveralls as needed. 3) Jacket The Authority will provide and replace, as needed, a jacket with Authority identification, to be worn by employees during cold weather. 4) Boot Allowance Maintenance Unit employees will be referred to a vendor for the selection of approved safety footwear to be purchased by the Authority. If the Employee requires footwear that is unavailable through the provided vendor, the Employer will work to provide alternative vendors for approved safety footwear upon approval of the Executive Director or his/her designee. Maintenance Unit employees will receive an allowance up to Five Hundred Dollars ($500) every two (2) years between September and November. This amount shall remain in effect for the term of this MOU. The Authority agrees to coordinate the purchase of safety boots for new hires. Safety footwear must be worn while on duty and must conform to Authority safety standards. Safety footwear shall be leather, hard soled, non-slip with heels and have steel or other approved safety toe and ankle protection. 5) Protective Clothing Gloves, rain suits, coveralls and rubber boots shall be furnished by the Authority where it is deemed necessary by the Authority for protection of the employee or their clothing. 33.2 Clerical Employees Employees working in non-maintenance classifications shall wear attire appropriate for an office environment or suitable for field assignments, if applicable. Dress attire should adhere to Authority Professional Appearance 919 38 HACCC Local #1/AFSCME MOU 2021-2024 Standards Policy, including attendance at conferences and training. 1) Shirts The Authority shall provide employees in the Housing Program Specialist, Senior Property Assistant, and Senior Housing Assistant classification two (2) shirts with Authority identification each year between September and November. The employee may choose any combination of the following, not to exceed two (2): Long sleeve shirt Short sleeve shirt “T” shirt (of good quality cotton) Effective 2025, the Authority shall provide all other Clerical Unit employees with two (2) collared shirts with Authority identification every other year between September and November. 2) Boot Allowance Housing Program Specialist, Senior Property Assistant, and Senior Housing Assistant classification employees will be referred to a vendor for the selection of approved safety footwear to be purchased by the Authority. If the Employee requires footwear that is unavailable through the provided vendor, the Employer will work to provide alternative vendors for approved safety footwear upon approval of the Executive Director or his/her designee. Eligible clerical unit employees will receive an allowance up to Two Hundred Dollars ($200) every two (2) years between September and November. This amount shall remain in effect for the term of this MOU. The Authority agrees to coordinate the purchase of safety boots for new hires. Safety footwear must be worn while on duty and must conform to Authority safety standards. Safety footwear shall be leather, hard soled, non-slip with heels and have steel or other approved safety toe and ankle protection. 3) Protective Clothing Gloves, rain suits, coveralls and rubber boots shall be furnished by the Authority where it is deemed necessary by the Authority for protection of the employee or their clothing. Section 34. Catastrophic Leave 34.1 Eligibility Permanent employees may be eligible to receive donations of paid leave other 920 39 HACCC Local #1/AFSCME MOU 2021-2024 than sick leave, to be included in the recipient employee's sick leave balance if the employee or immediate family member has suffered a catastrophic illness or injury resulting in the employee’s inability to work. 34.2 Procedure 1) Recipient Employee The recipient employee, recipient employee's family or other person designated in writing by the recipient employee shall submit a request in writing to the Executive Director or designee. The recipient employee shall not be eligible so long as the employee has paid leaves available, however, the request may be initiated prior to the anticipated date leave balance being exhausted. A medical verification shall be provided by the recipient employee. A recipient employee is eligible to receive four hundred eighty (480) hours of donated time per incident. 2) Donations Donations shall be made in hourly increments, and are irrevocable. The donor employee may donate vacation up to any amount so long as the donor employee retains at least eighty (80) hours of vacation. Sick leave may not be donated. Time donated will be converted from the type of time donated to sick leave and credited to the recipient employee's sick leave balance on an hour-for- hour basis and shall be paid at the rate of pay of the recipient employee. All sick leave provisions will apply. Time donated in any pay period may be used in the following pay periods. No retroactive donations will be permitted. The determination of the employee's eligibility for Catastrophic Sick Leave donation shall be at the Executive Director's sole discretion and shall be final and non-grievable. Section 35. Miscellaneous Provisions 35.1 Personnel Policies Where a specific provision contained in a section of this MOU conflicts with a specific provision contained in a section of the Personnel Policies, the provision of this MOU shall prevail. Those provisions of the Personnel Policies which are not within the scope of representation shall be considered in full force and effect. Those provisions of the Personnel Policies within the scope of representation shall not be changed, amended or otherwise invalidated without a prior meeting with Union. 35.2 Temporary Employees 921 40 HACCC Local #1/AFSCME MOU 2021-2024 It is understood that the Authority may utilize temporary employees to provide back-up for vacancies in regular bargaining unit positions during the job recruitment and employee selection process, when regular employees are on leave or for certain peak workload periods. The Authority agrees to monitor the usage in an effort to reduce any unnecessary or prolonged assignment of temporary employees to perform bargaining unit work. Upon request of the Union, the Authority will meet to review the numbers and assignments of temporary employees. 35.3 Rest Rooms The Authority will provide sufficient sanitary rest room facilities for employees. Employees will be expected and required to cooperate in maintaining sanitary facilities for their use. 35.4 Constructive Resignation Any employee, who is absent without leave for five (5) consecutive workdays, will be considered to have constructively resigned, provided that the Employer shall send a Registered/Certified Notice of Resignation to the Employee’s last known address. The effective date of the constructive resignation shall be five (5) consecutive workdays after the date the notice was mailed. 35.5 Driver’s License Requirement. While actively employed by the Authority, employees required to drive Authority vehicles as part of their job shall maintain: 1) A current valid California driver's license; and 2) A driving record acceptable to the Authority's auto insurance carrier and which will not cause the Authority to be required to pay excessive insurance premiums. If an employee does not have a valid driver’s license, and cannot perform the functions of his/her job, the Authority will follow the employer’s Vehicle Policy. 35.6 Health Examination The Housing Authority may require an employee to undergo a medical examination if the Authority has a reasonable belief that the employee's physical or mental condition may prevent the employee from safely and productively performing his/her job. A health examination shall be conducted by a licensed physician, qualified in industrial medicine. The cost for the medical examination shall be paid by the Authority. 35. 7 Joint Labor Management Committees The parties agree to schedule regular meetings to discuss issues of mutual concern. Union representatives shall be allowed release time to attend such meetings. The parties shall schedule separate meetings for the Clerical and Maintenance units for the purpose of addressing issues specific to each unit. The parties agree that these meetings do not constitute meet and confer, or collective bargaining, nor shall they address issues that fall under the MOU grievance process. To the extent possible, during each meeting, the Committee 922 41 HACCC Local #1/AFSCME MOU 2021-2024 shall set the agenda for the next meeting and any agenda additions shall be relayed to the Committee members as soon as possible prior to the next meeting. Minutes of each Joint Labor Management Committee meeting will be distributed to the Clerical and/or Maintenance unit employees, respectively. Recommendations from the Committee will be forwarded to the Executive Director for review and final decision. Section 36. Scope of Agreement Except as otherwise specifically provided herein, this MOU fully and completely incorporates the understanding of the parties hereto and constitutes the sole and entire agreement between the parties in any and all matters subject to meet and confer. Neither party shall, during the term of this MOU demand any change herein, provided that nothing herein shall prohibit the parties from changing the terms of this MOU by mutual agreement. Section 37. Saving Clause 37.1 Should any part hereof or any provisions herein contained be rendered or declared invalid by reason of any existing or subsequently enacted legislation or by a decree of a court of competent jurisdiction, such invalidation of such part or portion of this Agreement shall not invalidate any remaining portions which shall continue in full force and effect. Union and the Authority shall, within thirty (30) days, meet and confer regarding the affected portion of this MOU. Any modification or changes in the MOU brought about by the above meet and confer process shall be in writing and signed by the parties hereto. 37.2 Waiver of Performance The waiver of performance of any obligations of the Sections of the MOU by either party at any time or for any period shall not be construed as a waiver of the right of such parties to insist upon full performance of such obligations thereafter. 923 42 HACCC Local #1/AFSCME MOU 2021-2024 Section 38. Term 38.1 Unless otherwise provided for in this MOU, the term of this Memorandum shall become effective on July 1, 2024 and terminate on June 30, 2027. 38.2 Written notice of desire to negotiate amendments as an extension of this MOU or any new MOU must be given by either party at least sixty (60) days prior to the expiration date. Negotiations, therefore, shall commence no less than thirty (30) days prior to the expiration of said MOU. If a notice is given, as specified above, and complete agreement upon modifications or amendments to this MOU has not been reached by the expiration date, it may be temporarily extended by mutual agreement. Dated this 27th day of June, 2024 PUBLIC EMPLOYEES’ UNION HOUSING AUTHORITY OF THE LOCAL #1/AFSCME COUNTY OF CONTRA COSTA By:_________________________________ By:_________________________________ Jaclyn Ellsworth, Clerical Unit President Joseph Villarreal Executive Director By:_________________________________ By:_______________________________ Jaime Cisneros, Maintenance Unit President Charlene Calica Director of Human Resources By:_________________________________ By:_________________________________ Heather Brackenridge Nataline Jindoian Administrative Services Officer By:_________________________________ By:_________________________________ Victor Carranza Ingrid Layne Director of Assisted Housing Programs By:________________________________ _ By:_________________________________ Jeff Apkarian, Local #1/AFSCME Noor Al Forsland Union Representative Director of Asset Management By:_________________________________ Stacey Cue, IEDA Authority Representative 924 - 43 - HACCC Local #1/AFSCME MOU 2021-2024 EXHIBIT A REPRESENTED EMPLOYEES SALARIES 925 - 44 - HACCC Local #1/AFSCME MOU 2021-2024 926 - 45 - HACCC Local #1/AFSCME MOU 2021-2024 927 - 46 - HACCC Local #1/AFSCME MOU 2021-2024 EXHIBIT B 4/10 WORK SCHEDULE PLAN HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA 4/10 WORK SCHEDULE PLAN The following represents the terms and conditions of a 4/10 Work Schedule Plan, as agreed to by the Housing Authority and Local 1/AFSCME. TRANSITION The 4/10 Plan has three optional time shifts: 6:00 a.m. - 4:30 p.m., 6:30 a.m. - 5:00 p.m. or 7:00 a.m. - 5:30 p.m. Authority reserves the right to schedule crews or work units at the same start and end times. Employer will meet and confer with the Union prior to changing existing work schedules All offices will be open to the public Monday through Thursday from 8:00 a.m. to 4:30 p.m. and will be closed on Friday. I. DURATION AND TERMINATION The Housing Authority may, at its sole discretion, terminate the 4/10 Plan after meeting with Local 1/AFSCME to discuss the reasons for the termination. In the event the 4/10 plan is terminated, HACCC and the Union will meet and confer regarding alternate schedules. Two (2) weeks advance notice of 4/10 plan termination shall be given to the Union and affected employees. II. PLAN PARTICIPATION The 4/10 plan consists of four ten-hour days and one scheduled day off in the work week. . The scheduled day off will be Friday and the eight (8) hour day will be the other Friday. III. WORKWEEK The 4/10 workweek begins on Saturday at 12:00 p.m. and ends with the completion of the seventh day, Friday at 11:59 p.m. IV. FEDERAL AND STATE REGULATIONS All applicable federal and state regulations pertaining to work hours shall be followed. V. WORK EXPECTATIONS Employees are urged to schedule doctor, dental and personal appointments on their scheduled day off whenever possible. Everyone must respect the working time of others. Employees arriving or leaving should avoid distracting the employees who are working. 928 - 47 - HACCC Local #1/AFSCME MOU 2021-2024 VI. SCHEDULING Adequate daily and weekly coverage in the work site must be maintained and is the responsibility of the appropriate supervisor. It is understood that an individual employee's daily and weekly schedule may be changed due to the requirements of the Department. If an employee requests or is required by the department to work on a different daily or weekly schedule during that work week (only) to attend training, meetings, meet work deadlines, appear in court or for personal reasons, it must be by advance arrangement and with prior approval of the appropriate supervisor. In addition, in the event coverage within a work site becomes temporarily reduced, an employee's schedule may be temporarily changed by the appropriate supervisor. If the work day modification is for more than five (5) business days, other than for vacation coverage, the Supervisor shall notify the Union. The Supervisor will schedule a meeting at the request of either party to discuss the extended schedule change. Vacation requests will be closely reviewed by the appropriate supervisor and approved in accordance with Section 10.5 of the MOU. VII. HOLIDAYS If a holiday falls on a ten-hour workday, the employee will observe an 8-hour holiday. The employee has the option to use two (2) hours of accrued leave time (excluding sick leave) or leave without pay on the holiday or to work two (2) extra hours in the week the holiday is taken. Should a holiday fall on a scheduled day off, the employee will take the preceding or following work day off. All of Section 9, Holidays, of the MOU, apply. VIII. SICK LEAVE AND VACATION Participants in the 4/10 plan may not use sick leave on their scheduled day off. Sick leave or vacation time will be charged on an hour-for-hour basis, i.e., if the employee takes leave on a scheduled ten-hour day, he/she shall be charged ten hours of leave time. IX. JURY DUTY AND VOLUNTARY TRAINING Participants will not receive overtime or compensatory time credit for jury duty or voluntary training on their scheduled day off. X. OVERTIME Overtime shall be defined as authorized time worked which exceeds the employee's normal 4/10 work schedule. Such authorized overtime shall be 929 - 48 - HACCC Local #1/AFSCME MOU 2021-2024 compensated on the basis set forth in the MOU. Adjusted hours that occur within a work week are not considered as overtime. XI. BEREAVEMENT LEAVE Employees on the 4/10 plan who utilize bereavement leave shall be entitled to a maximum of forty hours paid bereavement leave. Employees shall be required to supplement bereavement leave pursuant to Section VIII. 930 - 49 - HACCC Local #1/AFSCME MOU 2021-2024 EXHIBIT C MAINTENANCE DIVISION ON-CALL PROCEDURES HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA MAINTENANCE DIVISION ON-CALL PROCEDURES On Call duty is any time other than time when a maintenance employee is on regular duty. When assigned to On-Call duty, the employee is required to be available and ready to report for duty when contacted by phone call. On-Call Hours On-Call hours are from the end of the regularly scheduled work day to the beginning of the next regularly scheduled shift on week days and twenty-four (24) hours on week- ends and holidays. Establishment of On-Call List Maintenance employees who have successfully completed probation as a Maintenance Mechanic B shall be eligible to volunteer for On-Call duty. The Housing Authority will semi-annually establish a schedule of On-Call assignments. Employees may switch weekly assignments among themselves provided management is notified in writing at least seven (7) days in advance of the change. The On-Call rotation shall remain voluntary, provided at least nine (9) employees are available to create the semiannual list. The Housing Authority will meet with the Union should the number of volunteers fall below nine (9) and prior to making, by inverse order of seniority, the rotation assignment mandatory. Each Maintenance Mechanic must be at work during the normal work day and available for the full period of the On-call assignment. During the On-call assignment period the On-Call Maintenance Mechanic may not utilize any: a. Vacation leave b. Personal leave c. Compensatory leave in lieu of overtime d. Unpaid leave e. Sick leave Authority management may authorize the On-Call Maintenance Mechanic leave accrual use during the On-Call assignment period if the employee is unexpectedly called away to a family matter/medical emergency and the Mechanic can be fully present for the on-call period following their absence during the work day to attend to family matters. i. If the family matter/medical emergency continues longer than one day, the On-Call assignment will be forfeited. The On-call Mechanic must immediately advise the Director of Asset Management, or designee of their inability to continue the assignment. The assignment will be forfeited for that Mechanic. ii. The Replacement List will then be accessed by Authority management to find an alternate Mechanic based on rotating seniority order to complete the rest of the Mechanic’s On-call assignment. 931 - 50 - HACCC Local #1/AFSCME MOU 2021-2024 Assignment Period Each On-Call duty rotation shall consist of no less than two (2) maintenance employees, one employee responsible for covering all properties in East County through to Bay Point, and the other employee responsible for covering Martinez through to all West County properties. Maintenance employees may only sign up to cover for either East or West County during the six (6) month On-Call duty rotation with the exception to sign up on the On- Call Replacement List. Each On-Call duty rotation shall be one (1) week in duration. Development of the On-Call Assignment List a. On-call scheduling meetings will be held twice each year at six (6) month intervals. All Maintenance Mechanics are required to attend the meetings. Mechanics will sign up for on-call duty. b. For safety reasons, there will be at least a one week break between assignments. Back-to-back assignments may occur only during emergency On- call situations. Authority management staff shall determine whether an emergency exists and approve back-to-back scheduling of On-Call assignment. No self-assigned back-to-back assignments will be accepted. On-Call Replacement List This list is created by order of seniority for all Authority mechanics who wish to take replacement On-call assignments. This list will be accessed by Authority management in order to find a replacement if a mechanic on the On-Call assignment list cannot meet their assignment obligations. On-Call Pay Employees assigned On-Call duties shall be paid two (2) hours of straight pay each weekday and four (4) hours of straight pay for Saturday, Sunday, 4/10 Friday off, and holidays. Call Back Pay Any employee who is called back to duty shall be paid time and one-half (1½) for the actual time worked. Such employee called back shall be paid a minimum of two (2) hours at a time and at one-half (1½) for each call back. Acknowledgement of Assignments and On-Call Service Response Criteria Each maintenance employee on rotation shall be assigned a cellular phone, provided by the Authority, and shall return a phone call from the on-call service, Bay Alarm, or other Authority personnel within fifteen (15) minutes. It shall be the On-call Maintenance employee’s responsibility to ensure that the Authority issued equipment is charged and in working order at all times. All employees on the On-Call list will receive site specific orientation, training and general instructions regarding the criteria for immediate versus next day service call response. 932 - 51 - HACCC Local #1/AFSCME MOU 2021-2024 On-Call Equipment a. Vehicles Employees serving On-Call rotation will be assigned an Authority vehicle to drive to and from home for the duration of the assignment. Each Maintenance Mechanic will have a designated On-Call vehicle in good working condition. The Authority’s management staff shall make reasonable accommodations for vehicle exchange at each rotation. No unauthorized person(s) shall be allowed in the Authority vehicle in accordance with the Authority Vehicle Policy. Unauthorized person(s) shall not be allowed to accompany Authority staff when responding to a call out. Authorized persons are those who are involved in Authority business. b. Tools The On-Call Maintenance Mechanic shall inventory and equip their On-Call vehicles, as necessary, with the appropriate tools required for assignment. Authority Management will ensure each employee has adequate tools to report for On-Call duty. Maintenance Mechanic on duty is responsible for auditing and securing tools and notifying management of theft or loss when discovered. c. Other Equipment Each work site office shop shall have a lock box for code, gate key and entry key. Authority management shall arrange for code, gate key and entry key. Ensuring Safety When Performing On-Call Assignments To ensure safety, an employee serving On-Call may call the other On-Call employee or call a Supervisor for further direction if they believe the work environment is not safe. If necessary, the On-Call employee may call in another maintenance employee to assist. Authority management and the Union shall develop training to ensure all Mechanics know how to do their job safely, and how to ensure personal safety on the job. Authority management shall develop training to ensure that all mechanics know how to perform their jobs in a safe manner and how to ensure their personal safety while at work. If an employee believes that their personal safety is at risk, the employee shall immediately call 911 to report the incident and remove themself from the unsafe situation. After calling 911, the employee is to utilize the Emergency Contact List provided and report the situation to HACCC management. Authority management staff will provide next step instructions to the employee. If a Mechanic performing On-Call duty requires the assistance of another mechanic or vendor, the mechanic must first contact Authority management and state the situation. Authority management will determine if additional assistance is necessary and authorize emergency services as needed. To ensure safety, the employee serving On-Call must wear their provided Authority identifying clothing/uniform when responding to a call out. Any loss, damage, or theft of tools or materials when on-call must be reported 933 - 52 - HACCC Local #1/AFSCME MOU 2021-2024 immediately to the respective Asset Manager responsible for the property. These provisions will be reviewed regularly by the Union and Management. The parties will meet on an as needed basis and at the request of either party to assess the need for change in these procedures. Changes may be made to this side letter during the term of this agreement, subject to meet and confer obligations. 934 - 53 - HACCC Local #1/AFSCME MOU 2021-2024 EXHIBIT E HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA MAINTENANCE MECHANIC PAY LEVEL B QUALIFICATIONS (Revised December 13, 2011) Purpose 1.1 In order to promote longevity, consistency, and compensatory equality among the Maintenance Mechanic classification, the Housing Authority shall administer a non-competitive test for Maintenance Mechanic up-grade to the higher (Level B) pay scale. Qualifications 2.1 A Maintenance Mechanic is eligible for up-grade to Level B after thirty-six (36) months of consistently acceptable service (as demonstrated by annual performance evaluations) at pay scale Level A. A Maintenance Mechanic may make a written request of the Executive Director (or the designee), within six (6) months of that eligibility, to be tested for the Level B pay scale. 2.2 The eligibility shall be considered completed on the first day of the month following thirty-six (36) months of unbroken service. The Housing Authority will then schedule a qualified third-party to administer the pay scale up-grade test upon receipt of the Maintenance Mechanic’s request for testing, annually during the month of January. The pay scale increase shall become effective in the first full pay period following the date that the Maintenance Mechanic passes the exam. 2.3 The Housing Authority may, at its sole option, elect to administer the test to a Maintenance Mechanic up to six months prior to her / his eligibility date in order to test multiple candidates at one time. The Housing Authority will notify those candidates of its intent to consolidate the test in order to meet the requirements of this paragraph. The effective date for pay scale increases for mechanics that test early shall be at the required first date of eligibility. Although the Pay Level may change, the employee does not need to complete a probation period as the Job Classification will remain as “Maintenance Mechanic”. The Anniversary date will correspond with the Pay Level increase on the first of the month following the date of eligibility. Thus annual evaluations and subsequent increases will be given annually by this date. 2.4 Should a candidate fail the skills test, the candidate may request and take the exam the following year during the month of January or twelve (12) months after the date of the initial exam, whichever is later. 935 - 54 - HACCC Local #1/AFSCME MOU 2021-2024 Testing 3.1 The test shall consist of two parts, a written test and an ‘on the job’ demonstration of Maintenance Mechanic B skills. The written test and demonstrated skills shall be consistent with and inclusive of the “Illustrative Tasks” and “Knowledge, Skills, and Abilities” portion of the Maintenance Mechanic B job description. The passing score for the written test is seventy-five percent (75%). 3.2 The skills test shall consist of those abilities that are readily verifiable in a controlled setting. The skills set tests shall be on a “Pass / Fail” basis. The passing score for the skills test is one hundred percent (100%) for each skills test given. The Housing Authority will notify the Maintenance Mechanics of their scores within five (5) working days of the completed test. Upon request, Housing Authority management will review test results with unsuccessful candidates. 3.3 The Maintenance Mechanic may request notification of the required demonstrated skills up to twelve months prior to their anniversary date. Housing Authority Management shall make reasonable accommodations with the Maintenance Mechanic to ensure completion of the demonstrated skills review prior to the practical test date. The demonstrated skills may include the following: plumbing stoppages; water heater installation; toilet installation; use and care of tools; spray painting; cabinet refinishing; tenant relations; work safety; and other areas of the “Illustrative Tasks” and “Knowledge, Skills, and Abilities” portion of the Maintenance Mechanic job description. 936 937 THE BOARD OF COMMISSIONERS HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA RESOLUTION NO. 5261 ESTABLISHING SALARY AND BENEFIT CHANGES FOR UNREPRESENTED EMPLOYEES The Board of Commissioners of the Housing Authority of the County of Contra Costa RESOLVES that: All unrepresented permanent full-time employees will receive a one-time lump sum ratification payment of Two Thousand Five Hundred Dollars ($2,500) upon Board ratification. All unrepresented employees will receive a one-time, five and one-half percent (5.5%) market equity adjustment for all classifications effective the first full pay period following Board ratification. The Executive Director will not receive this adjustment. All unrepresented employees will be granted a cost-of-living adjustment (COLA) to salary that coincides with the represented staff COLA increase at five percent (5%) effective the first full pay period upon Board ratification; five percent (5%) effective the first full pay period including July 1, 2025, and five percent (5%) effective first full pay period including July 1, 2026. All unrepresented employees will receive vision reimbursement of Six Hundred Dollars ($600.00) every three years beginning July 1, 2024 – June 30, 2027. All unrepresented employees will receive forty (40) hours of Personal Holiday Leave annually. All unrepresented eligible employees will receive a salary differential of One Hundred Dollars ($100.00) per month paid to employees utilizing verbal bilingual proficiency or Two Hundred Dollars ($200.00) per month paid to employees utilizing bilingual verbal and written proficiency. PASSED, ADOPTED AND APPROVED this 9th day of July 2024, by the following vote: AYES: NOES: ABSENT: ABSTAIN: I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND ENTERED ON THE MINUTES OF THE BOARD OF COMMISSIONERS ON THE DATE SHOWN. ATTESTED _____________________________________ CLERK OF THE BOARD OF COMMISSIONERS By _______________________________________ JOSEPH VILLARREAL, EXECUTIVE DIRECTOR 938 939