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HomeMy WebLinkAboutMINUTES - 07121988 - 1.127 HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA TO: BOARD OF COMMISSIONERS DATE: June 22, 1988 FROM: cc: Perfecto Villarreal , Executive Director SUBJECT: REVISION OF STATEMENT OF POLICIES AND PROCEDURES GOVERNING ADMISSION TO AND CONTINUED OCCUPANCY OF THE PUBLIC HOUSING PROGRAM AND GOVERNING THE ISSUANCE OF RENTAL ASSISTANCE UNDER THE VARIOUS SECTION 8 PROGRAMS OPERATED BY THE HOUSING AUTHORITY I . RECOMMENDED ACTION: APPROVAL of Revised Statement of Policies and Procedures governing admission to and continued occupancy of HUD Aided Low Rent Housing and Governing receipt of applications, establishment of a waiting list and issuance of certificates of family participation and housing vouchers for the Section 8 programs of existing housing and moderate rehabilitation administered by the Housing Authority, as recommended by the Advisory Housing .Commission. II. FINANCIAL IMPACT: None. III. REASONS FOR RECOMMENDATION/BACKGROUND: On January 15, 1988 the U. S. Department of Housing and Urban Development (HUD) issued federal regulations concerning the granting of federal preferences in the provision of housing assistance to families eligible for the public housing and Section 8 programs funded by HUD. The federal regulations require all housing authorities to revise their policies and procedures to include the federal preferences by July 13, 1988. In addition, the Housing Authority has been advised by HUD that the agency should convert to a centralized waiting list for the public housing and Section 8 programs. The Statement of Policies and Procedures for the public housing and Section 8 programs have been revised to include the required HUD- regulations and directives. In addition, some other changes have been incorporated in the revised policies and procedures. The major changes are the following: CONTINUED ON ATTACHMENT: YES SIGNATURE: �t✓n�ti RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S) ACTION OF BOARD ON JUL 1 2 F988 APPROVED AS RECOMMENDED 1 OTHER VOTE OF COMMISSIONERS X..._ UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS A TRUE AND AYES: NOES: CORRECT COPY OF AN ACTION TAKEN AND ABSENT: ABSTAIN: ENTERED ON THE MINUTES OF THE BOARD OF COMMISSIONERS ON THE DATE SHOWN. CC: County Administrator ATTESTED JUL 12 1989 Housing Authority Phil Batchelor. Clerk of the County Counsel Board of Commissioners M3e2/7-e3 8Y DEPUTY L 7 Y. V Board of Commissioners June 22, 1988 Page -2- 1. Establishment of federal preferences. 2. Establishment of a county-wide waiting list for the public housing and Section 8 programs. 3. Establishment of a unit transfer policy. 4. Establishment of Plan A - one choice - system of offering public housing vacancies to applicants on the waiting list. 5. Establishment of a preference for every 10th tenant selection in the public houisng program to achieve the HUD mandated broad range of incomes policy. 6. Provision of elderly person/family preference for tenants selected to live in the senior citizen complexes operated by the Housing Authority. 7. Establishment of.' an Independent Living Assessment policy and procedure for senior citizen and disabled applicants. 8. Establishment of revised procedures in closing of the public housing and Section 8 waiting lists. . At a Special Meeting on June 21, 1988 the Advisory Housing Commission voted to recommend adoption of the revised Statements of Policies and Procedures to the Board of Commissioners subject to consideration of possible revisions after the receipt of comments from the public during a required 30-day public comment period. IV. CONSEQUENCES OF NEGATIVE ACTION: Should the Board of Commissioners elect to not adopt the revised Statements of Policies and Procedures by July 13, 1988, the Housing Authority would fail to be in compliance with HUD-mandated federal regulations concerning admission and continued occupancy of the public housing program and governing the issuance of rental assistance under the various Section 8 programs operated by the Housing Authority. This non-compliance could result in HUD sanctions against the Housing Authority. 1 - HOUSING AU-14-10IZITY ' of tits COUNTY. Of-, C'ONTIkA COSTA 3133 ESIU(IIIIo Stroet P.O. Dux 2759 Marlinez, California 94553 STATEMENT OF POLICIES GOVERNING ADMISSION TO ' AND CONTINUED OCCUPANCY OF HUD AIDED L014—RENT HOUSING OPERATED BY THE HOUSING AUTHORITY OF TIME ' COUNTY OF CONTRA COSTA 1 51 1 n • I t i r' I E 1 1 ' PHA JULY-1988 _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ _ 9.0 ' TABLE OF CONTENTS ' SECTION PAGE NO. ' I . Eligibility for Admission and Processing of Applications 1 A. Nondiscrimination 1 B. Marketing 2 t C. Eligibility for Admission 2 D. Processing Applications for Admission 3 E. Management of the Centralized Waiting List 6 ' F. Screening and Tenant Selection Criteria/ 10 Suitability for Admission G. Preferences for Tenant Selection 11 ' H. Broad Range of Incomes 24 I . Bedroom Occupancy Standards 25 J. Leasing of Dwelling Units 21 K. Unit Transfers 28 II . Tenant Selection and Assignment Plan 30 ' A. Organization of the Waiting List 30 B. Method of Applicant Selection 30 ' C. Justified Rejection of a Unit 30 III . Continued Occupancy and Periodic Re-examinations 32 ' A. Eligibility for Continued Occupancy 32 B. Regular Re-examinations 32 C. Special Re-exam inations 32 ' 0. Re-examination Procedures 32 E. Action Following Re-examination 33 ' IV. Establishing Rents between Admission and First Re-examination 33 and Between Scheduled Re-examinations (Fixed Rent System) ' A. Rent Decreases and Adjustments 33 B. . Effective Date of Adjustments 35 C. Failure to Report Accurate Information 35 ' D. Management Errors in Computation and Failure to Process 35 ' V. Lease Termination Procedures 36 A. Notice Requirements 36 ' B. Recordkeeping Requirements (Terminations/Evictions) 36 ' PHA JULY-1988 _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ _ 9.0 ' TABLE OF CONTENTS SECTION PAGE NO. VI . Tenant-Paid Utilities_ 37 VII. Security Deposit 37 VIII . Pets 37 IX. Rent Collection Policy 38 ' A. Informing Tenants of Policy 38 B. Payment of Rent 38 C. Penalty for Non-Payment 39 D. Partial Payment 39 E. Repeated Non-Payment 39 X. Definitions and Procedures to be Used 39 in Determining Income and Rent ' A. Annual Income 39 B. Items Exluded from Annual Income 41 C. Annualizing Income 43 0. Anticipating Annual Income 44 E. Adjusted Income 44 F. Verifying Annual Income 46 ' G. Rent Computation 47 XI . Definition of Terms Used in this Statement of Policies 48 r ' -ii- ti 1 PHA JULY_19t3ti _ _ _ _ _ _POLICY. AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 ' STATEMENT OF POLICIES GOVERNING ADMISSION TO AND CONTINUED OCCUPANCY OF THE HUD-AIDED LOW-INCOME ' HOUSING PROJECTS OWNED AND OPERATED BY THE HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA I. ELIGIBILITY FOR ADMISSION AND PROCESSING OF APPLICATIONS ' A. NONDISCRIMINATION The Housing Authority shall not discriminate because of race, color, creed, age, sex, handicap, religion, or national origin in the leasing, rental , or other disposition of housing or related facilities (includ- ing land) included in any project or projects under its jurisdiction covered by a contract for annual contributions under the United States Housing Act of 1937, as amended, or in the use of occupancy thereof. ' The Housing Authority shall not on account of race, color, creed, age, sex, handicap, religion, or national origin: ' 1. Deny to any family the opportunity to apply for such housing, nor deny to any eligible applicant the opportunity to lease such housing suitable to its needs; ' 2. Provide housing which is different than that provided others; 3. Subject a person to segregation or disparate treatment; 4. Restrict a person' s access to any benefit enjoyed by others in connection with the public housing program; ' 5. Treat a person differently in determining eligibility or other requirements for admission; ' 6. Deny a person access to the same level of services; or 7. Deny a person the opportunity to participate in a planning or advisory group which is an intergral part of the public housing pruyra�n. l7,lii:i. l i(Ev-2) ' The Housing Authority shall not automatically deny admission to a particular group or category of otherwise eligible applicants (e.g. , unwed mothers, families with children, elderly person(s) or families ' whose head or spouse is a student) . Each applicant in a particular group or category will be treated on an individual basis in the normal processing routine. ' -1= PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 _ ' A. Nondiscrimination .(cont'd) ' The Housing Authority records with respect to applications for admission to any low-income housing assisted under the United States Housing Act of 1937, as amended, shall indicate for each application the date and time of receipt; the determination of the Housing Authority as. to eligibility or non-eligibility of .the applicant, where eligible, the unit size for which eligible, the preference rating, if any, and. the. date, location, identification, and circumstances of each vacancy offered and accepted or rejected. ' B. MARKETING ' The Authority will conduct outreach in an effort to obtain and maintain a well-balanced application pool . Outreach efforts will take into account the level of vacancy in the Authority' s units, unit availability through turnover, and waiting list characteristics. The Authority will periodically assess these factors in order to determine the need and scope of the marketing effort. ' Marketing efforts will be designed to attract applicants from appropriate segments of the lower and very low income population. The Authority will use its marketing program to achieve a more representative income mix of lower income families among those on the waiting list and thereby attain a broad range of income in its projects as required by Federal Law (7465.1 REV-2, Para.5-3(b)(2) (a)) . C. ELIGIBILITY FOR ADMISSION ' Only the following applicants will be admitted: 1. Woo qualify as a family, defined as: ' Two or more persons regularly living together, related by blood, marriage, adoption, guardianship or operation of law; or an Elderly family, Displaced Person or remaining member of a tenant family. Members temporarily absent will be considered a part of the family group for purposes of income and rent. Foster children and live-in aides may reside with a family ' provided prior written approval has been granted by the Housing Authority, but under no circumstances shall they have any right to the unit as the remaining member of a tenant family. ' -2- PHA JULY 1988 POLICY AND PROCEDURE MANUAL 9.0 C. Eligibility for Admission (cont'd) 2. Whose Annual Income at the time of admission, does not exceed income limits for occupancy established by the Department of Housing and Urban Development, and posted separately in Authority offices. The Lower Income Limits defined in these policies are applicable to new admissions at all Housing Developments, except for CA110015, Elder Winds. (For all other projects the date of full availability is prior to 10/1/81. See 7465.1 REV-2 Para. 3=2a. ) The Very Low Income limits as defined in these policies are applicable to new admissions to the following project: CA110015 - Elder Winds. Whose date of full availability is after 10/l/81. ) NOTE : While Foster Children and Live-in Aides shall be used in determining the appropriate.-sized unit for an applicant family, they will not be included in determining the appro- priate income limit. D. PROCESSING APPLICATIONS FOR ADMISSION 1 . Applications a. An Application must be completed and signed b the head pp P 9 y of the household and/or spouse, and other responsible adult members present at the application interview. b. Applications may be filed at any of the Authority' s management field offices, but information relating to family name, address, and composition, appropriate bedroom size, preference category and time and date of application shall be forwarded to the Central Office, where the Authority' s county-wide waiting list shall be maintained, and unit assignments for new admissions and transfers shall be processed. At the time of application, families shall be advised that .they are applying for a unit from Contra Costa County Housing Authority, not a unit at the complex where their. application is being taken. C. At the time the application is taken, Authority personnel will interview the applicant and complete the following checklists: ° Annual Income Checklist ° Asset Checklist ° Allowance Checklist ° Federal Preference Checklist ° Independent Living Assessment Checklist (as applicable) -3- PHA ' JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 _ D. Processing Applications For Admission (cont'd) d. At the conclusion of the application interview, applicants will be provided with a letter advising them of the follow- ing factors relating to their, application for housing: ° A preliminary determination of their eligiblity/non- ' eligibility for a unit at the Authority, based solely on the information supplied at the interview and on the various checklists. 1 ° A preliminary determination of their qualification for a Federal Preference, based on responses to the Prefer- ence Checklist. The applicant' s signature on the check- list shall be considered a certification that all state- ments contained therein do represent, truthfully and completely, the family' s circumstances at that time. ' ° A reminder that all information relating to eligibility, income, allowances, Federal Preferences, and suitability will be verified before the family is permitted to move ' into a unit. e. Before leaving the interview, applicants will be required ' to sign a release for information needed to determine final eligibility, Annual and Adjusted Income, qualifica- tions for Federal Preferences, and tenant suitability. (7465.1 REV-2, par. 2(b)(4) 2. Centralized Application Waiting List The application will be placed on a centralized, county-wide waiting list based on the size and type of unit required, Federal and/or Local Preferences for tenant selection, and the time and date of application filing. Applicants will then be notified of how long they may reasonably expect to be on the waiting list before getting to the top. 3. Verification Process ' All information relative to income, eligibility and rent, net assets, screening and preference rating will be verified, documented and recorded in the applicants file in accordance ' with the following: ' -4- ' PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 ' D. Processing Applications For Admission (cont'd) a. As families approach the top of the centralized waiting list (approximately 90 to 120 days prior to being offered a unit) , the following items will be verified to determine the applicant' s final ' eligibility and suitability for admission to the Authority' s housing: ° Eligibility Information Annual Income ° Assets and Asset Income ° Allowance Information ° Federal Preferences ° State/Local Preferences Information used in Tenant screening ' At this same time, applicants will be notified that they will be considered for admission in about 90 t to 120 days, and that they should begin to save money to pay for the costs associated with moving, should they be accepted for an Authority unit. ' b. Documentation obtained as part of the verification process may include: Checklists completed as part of the inter- view process, reports of interviews, letters or telephone ' conversations with rel.iable sources. At a minimum, such reports will indicate the date of the conversation, source of the information, name and job title of the individual contacted, and a written summary of the information received. c. . Sources of information may include, but are not limited to: The applicant by means of interviews or home visits; ' present or former landlords, present and former employers, family social workers, parole officers, court records, drug treatment centers, clinics, physicians, clergy or police departments where warranted by the particular circumstances. d. Annual Income used to determine eligibility and adjusted income, used to compute rent must be verified. r ' -5- PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 D. Processing Applications For Admission (cont'd) 1 ' e. Acceptable forms of verifications may include: Third Party written; ° Third Party oral with a record kept in the file; ' ° Copies or review of documents provided by the fami ly; In the absence of any of the above; affidavits ' from the family. f. Information verified shall remain valid for the ' following periods of time- 0 Information not subject to change need only be verified once; ' Information subject to change shall be valid, beginning from the date of receipt at the ' Authority, for an initial period of 90 days. The valid term of this information may be extended. an additional 30 days through a follow-up phone call . (Should the follow-up be performed, the file must be notated to indicate such an action was taken. ) ' E. MANAGEMENT OF THE CENTRALIZED WAITING LIST 1. Closing the Waiting List: ' In order to maintain a balanced application pool , the. Authority at its discretion, may restrict application taking, suspend ' application taking, and close the waiting list in whole or in part. The Authority will also update the waiting list by removing the names of those who are no longer interested or no longer qualify for housing. If the Authority has too many applications, it may elect to: (7465.1 REV-2 par. 2-3) . a. close the waiting list completely; ' b. close the list during certain times of the year; or c. restrict intake by type of project, or by size and type of dwelling unit. Decisions about the waiting list will be based on the number of applications available for a particular size and type of ' unit, the number of applicants who qualify for a Federal Preference, and the ability of the Authority to house an applicant in an appropriate unit within a reasonable period -6- r rPHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 E. Management of Centralized Waiting List (cont'd) 1 ' of time. Closing the waiting list or restricting intake in any way will be publicly announced. r During periods when the waiting list is closed, the Authority will not maintain a list of individuals who wish to be notified when the waiting list is reopened. rAlthough the Authority may not be accepting additional applica- tions for tenancy because of the length of the waiting list, the Authority may not refuse to place an applicant on the waiting list if the applicant is otherwise eligible for assistance and claims that he/she qualifies for a Federal Preference; except that the Authority may refuse to place such an applicant if the following conditions exist: a. There is an adequate pool of applicants already on the r waiting list who are likely to qualify for a Federal Preference; and b. It is unlikely that under the Authority's system for applying the Federal Preferences that the applicant would qualify for assistance before other applicants on the waiting list. The' determination in (b) above is based on the system for applying the Federal Preferences as described in these ' policies, the preference or preferences claimed by applicants already on the waiting list, and the preference or preferences claimed by the subject applicant. 2. Determining if the waiting list may be closed: The Authority will use the following method to determine whether ' the waiting list may be closed: a. The Authority will compute the average number of move-ins per year, by bedroom size, over the past 5 years. The average number will be multipled by 90%. (24 CFR 960.211(b)(2) (ii ) ' b. The waiting list will then be examined to determine how many applicants there are in the "top priority" category, established by the Federal Preference System employed by the Authority and the Federal Preferences for which ' applicants on the waiting list qualify. NOTE : The "top priority" category at the Authority is; Families of Veterans or Servicemen who qualify for one or more of the Federal Preferences. ' -7- I PHA JULY 1988 _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ — _ _ _ _ 9.0 E. Management of Centralized Waiting Lists (cont'd) ' c. If, for any given bedroom size, the number of "top priority" applicants is less then 90% times the average number of move-ins per year, the waiting list for that bedroom size may not be closed. ' d. If, for any given bedroom size, the number of "top priority" applicants is equal to or greater than 90% of the average ' number of move-ins per year, the waiting list for that bedroom size may be closed, because the average wait of a new applicant in the "top priority" category would. be more than one year. (7465.1, REV-2, 2-3(3)) e. If at an point after the waiting list for given bedroom y P 9 size has been closed, the number of applicants in the "top t priority" category drops below 90% of the average number of move-ins per year, the Authority will re-open the waiting list for that bedroom size and begin to take. new applications. ' 3. Notifying Families Currently on the Waiting List of the Federal Preferences ' a. The Authority shall notify all families already on the waiting list at the time of implementation of these policies that they may qualify for Federal Preferences and will request that families complete a Federal Preference questionaire, certifying to their qualifications, or lack thereof, for a Federal Preference. Such families will be requested to return the completed questionaire in a self-addressed, stamped envelope to the Authority, which the Authority shall provide for that purpose. Once all questionaires have been returned, and the responses processed, applicants shall be notified of any changes in their status on the waiting list. The Authority is under no obligation to carry out this notification in a mass mailing effort, but may choose to carry out the notification on a piecemeal basis. Notification will be performed in order beginning with the earliest date of application on up to the present. , (24 CFR 960.211 (a)(2) (i )) . b. Except for the 10% of move-ins exempted from the Federal Preferences, no units will be offered to any applicants not in the "top priority" category until all applicants already on the waiting list at the time of implementation of this policy have been notified of the Federal Preferences, and given a chance to qualify.. Likewise, no families applying after the policy' s implementation shall be offered a unit until all families already on the waiting list have been notified of the Federal Preferences and given a chance to qualify. (24 CFR 960.201 (b)(2)) -8- PHA ' JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ 9.0 _ E. Management of Centralized Waiting List (cont'd) 4. Change in Preference Status While on the Waiting List Occasionally, families on the waiting list who did not qualify for a Federal Preference will experience a change in circum- stances that qualifies them for a Federal Preference. In such ' instances, it will be the family' s responsibility to contact the Authority, so that a certified statement of their qualif- ication for a Federal Preference may be obtained. Once the family' s certification has been obtained, their place on the waiting list will be re-determined, in accordance with ' the Federal and Local Preferences. for which they qualify, and the time and date their application was originally filed. The family will then be informed in writing of how the change in status has affected their place on the waiting list. (24 CFR 960.211 (c) (2)) 5. Removal of Applicants from the Waiting List The Authority will not remove an appliant' s name from the waiting list unless: ' a. The applicant requests that the name be removed. b. The applicant has failed to advise the Authority of his/ her continued interest in public housing. The PHA requires applicants to .notify the Authority of continued interest on a yearly basis. This includes advising the Authority of any change in family status, change in preference status, or, change in living or mailing address. c. The Authority has made reasonable efforts to contact the ' applicant to determine continued interest but has been unsuccessful ; correspondence to the latest address will constitute documentation of reasonable effort to contact ' the applicant. d. The Authority has notified the Applicant of its intention to remove the Applicant' s name because the applicant no longer qualifies for public housing. e. The Authority has made reasonable efforts to contact the applicant to either schedule interviews necessary to complete the application process, or obtain information necessary to process the application, and the applicant has failed to respond, or provide the information requested by the Authority. f. When an applicant fails to keep a scheduled interview or fails to provide the Authority with the information t PHA JULY 1986 POLICY AND PROCEDURE MANUAL 9.0 1 E. Management of Centralized Waiting List (cont'd) that is necessary to process the application, the Authority will notify the applicant in writing that he/she has 10 ' working days within which to reschedule the interview or provide the needed information. If the applicant fails to respond within that period, the application will be withdrawn from the waiting list. The Authority will consider mitigating circumstances such as health problems or lack of transportation in determining if the application should be withdrawn. ' g. The applicant fails to pay an outstanding balance owed ' to the Authority or fails to meet the home visit require- ments, or fails to pass the Tenant Selection Criteria in any way. (Applicants who have their applications withdrawn because of the reasons cited in this para- graph will be sent a Notice of Rejection in accordance with these policies. ) ' F. SCREENING AND TENANT SELECTION CRITERIA/SUITABILITY FOR ADMISSION ' 1. The Screening Process Information to be considered in completing tenant screening shall be reasonably related to assessing the conduct of the applicant family in present or prior housing. The history of family conduct must demonstrate that the applicant family did not: ° Interfere with other tenants, staff or the general public in such a manner as to diminish ' their enjoyment of the premises by affecting their health, safety, or welfare; ° Adversely affect the physical environment or financial stability of the project. 2. Information to be Considered in Screening Relevent information with respect to habits or practices to be considered in the screening process may include, ' but not be limited to: a. An applicant ' s past performance in meeting financial obligations, especially rent. -10- r PHA JULY 198$ POLICY AND PROCEDURE MANUAL 9.0 F. Screening and Tenant Selection Criteria/Suitability for Admission (cont'd) A former Authority tenant (otherwise eligible) who applies owing a balance consisting of uncollected rent and/or mis- cellaneous charges will not be considered for housing until that balance is paid in full . In this case, the Authority takes no distinction between an outstanding balance carried as a current receivable and an outstanding balance which has been written off as a collection loss. Otherwise eligible families. who apply for housing with an outstanding balance owed to the Authority may still be placed on the waiting list. Such families must pay any balance owed the Authority prior to admission._ Failure to pay prior to admission will result in the application being withdrawn from the waiting list. Applicants who have their applica- tions withdrawn because of failure to pay an outstanding balance will be sent a written notification regarding this action. b. A history of disturbance of neighbors, destruction of property, or living or housekeeping habits at prior or present residences which may adversely affect the health, safety, or welfare of other tenants or neighbors. c. A history of criminal activity on the part of any applicant family member involving crimes of physical violence to persons or property or other criminal acts which affect r the health, safety, or welfare of other persons. Other criminal acts may include but are not limited to: " ilrrea or conviction for drug-related offenses Organized gambling activities d. If an applicant, as a former resident in subsidized housing, was involuntarily compelled to terminate a lease for reasons listed in (b) and (c) above, the applicant may not be considered for housing again within a period of five years from the involuntary termination date. (In applying this restriction the Authority will consider evidence of rehab- ilitation presented with any application submitted during the five year period. ) ' e. Applicants must be able to demonstrate the ability to live independently. Applicants may be required to successfully ' -11- PHA JULY 1988 POLICY AND PROCEDURE MANUAL 9.0 ' F. Screening and Tenant Selection Criteria/Suitability for Admission (cont'd) complete the independent living assessment as outlined in Section 3 below. f. Home visits will be performed only after all other factors relating to the family' s eligibility, preference status, and suitability have been verified and found to be acceptable. Home visits shall inspect for: ° Conditions in living room, kitchen (food preparation and clean-up) , bathrooms and bedrooms Conditions of entrance-ways, halls, and yard Cleanliness in each room ' ° General care of furniture, appliances, fixtures, windows, doors, and cabinets ° Evidence of destruction or tenant abuse ° Tenant contributions to hazardous conditions Upkeep of the exterior of the unit and premises; in particular, accumulation of refuse and abandoned autos. All applicants shall have one week' s advance notice of home visits. The Authority shall request on the notice, 48 hours advance notice, if the scheduled time for the home visit poses a hardship for the applicant. Home visits will only be re-scheduled once. Applicants who fail the home visit or fail to keep a scheduled appointment will be sent a Notice of Rejection in accordance with these policies. These applicants will be considered ineligible for a period of one year. After the one year period has expired, the family may re-apply for housing subject to the conditions described in this policy. 3. The Independent Living Assessment a. As part of the independent living assessment for elderly/ disabled families, the Authority will make a preliminary determination of the applicant' s ability to live independ- ently. This preliminary assessment will check the applicant' s ability to perform simple domestic chores (e.g. , cooking, cleaning, shopping, and to maintain an independent life- style. if this preliminary home assessment raises questions about the applicant' s ability to live independently, the Authority may seek third party assistance to determine what local support services are available to assist -12- PHA JULY_1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 F. Screening and Tenant Selection Criteria/Suitability for Admission (cont'd) the family. The Authority will consider the impact this support has on suitability for admission. b. Elderly/Disabled Applicants for Authority units must complete a "Household Assistance Agreement." If the applicant loses the ability to live independently while a resident in an Authority unit, the Agreement designates a relative or other appropriate third party as a support person. c. The responsibilities of the Support Person(s) named in the Agreement are to assist the tenant, by direct aid or in conjunction with others, to live independently. In the event the Tenant is no longer able to live in t the unit, the Support Person will work with the Authority to relocate the tenant to the appropriate care facilities. ' 4. Mitigating Circumstances In the event of the receipt of unfavorable information with respect to an applicant, consideration shall be given to the time, nature, and extent of the applicant' s conduct and to factors which might indicate a reasonable probability of favorable future conduct or financial prospects; for example: ° Evidence of rehabilitation; or ° Evidence of the applicant family' s participation in or willingness to participate in social service or other appropriate counselling service. 5. Additional Screening Considerations a. Applicant households with an involuntary displacement preference due to actual or threatened physical violence, as defined in these policies, will be considered eligible for admission in accordance with the tenant screening criteria, but the person(s) in the household who engage in such violence will not be admitted as part of the household. Verification of involuntary displacement due to actual or threatened physical violence shall be sufficient under these tenant screening criteria to preclude the admission of person(s) engaging in such violence. b. Where applicants have been verified to be involuntarily displaced by a disaster, such as fire or flood, the ' -13- ' PHA JULY-1988 _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 _ F. Screening and Tenant Selection Criteria/Suitability For Admission (cont'd) Authority will attempt to obtain information from the agency or unit of local government supplying the third- party verification on the nature and cause of the disaster displacing the family. Where the verifying agency states that the displacement was caused 'by intent or negligence by a member of the applicant' s household, the Authority will deny admission to the family in question. c. If an applicant household qualifies for a preference based on the definition of a homeless person as contained in the ' Federal Substandard Housing Preference, the Authority will not admit such person(s) if they are: ° in a facility that provides a temporary residence for individuals intended to be institutionalized in more permanent living accomodations; and ° the applicant has a verifiable date for the move to the institution. d. Applicants who. meet the definition of homeless in accordance with the Federal Preference critiera must still be eligible as a family, as defined in these policies, and meet the Authority' s Tenant Selection and Screening criteria, as outlined in these policies. The Authority does not intend to relax the goal and intent of using Agency housing as perma- nent, residential housing, as opposed to stop-gap, temporary housing, or housing of last resort. . e. An applicant' s falsification, misrepresentation, or conceal- ment of information relating to the Federal Preferences or other tenant eligibility will be considered grounds for denying admission to the Authority' s housing. ' f. All screening criteria contained in this policy shall be applied to all applicants. ' g. Verified information will be analyzed and a final deter- mination made with regard to: ° Eligibility of the applicant as a family Eligibility of the applicant with respect to income limits for admission I -14- I PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 _ F. Screening and Tenant Selection Criteria/Suitability for Admission (cont'd) ' ° Unit size required for the family ° Preference category to which the family belongs 6. Notification Regarding Eligibility/Ineligibility for Federal Preference Applicants will be informed of their verified status with one of the following letters: a. Applicants who qualify for one or more of the Federal Preferences will be sent the letter headed "You have been verified to qualify for the following Federal ' Preferences". b. Applicants who have been determined not to qualify for a Federal Preference will be sent the letter headed "You do not qualify for a Federal Preference because. . ." (24 CFR 960.211 (k) ) Such applicants will be given 10 days to set up an infor- mal meeting to discuss the rejection of their Federal Preferences and will be advised of their right to due process in a court of law if they feel the decision was based upon illegal discrimination. The informal meeting may be conducted by the Authority employee who denied the Federal Preferences and one other Authority employee. At the informal meeting, tyle Authority is under no obligation to justify or deny either its definitions ' of the Federal Preference categories, or its verification requirements relating to the Federal Preferences. The Authority need only justify its decision to award or deny tyle preferences. (CFR 960.211 (k)) 7. Eligible and Ineligible Applicants ' a. Eligible applicants will be offered a suitable unit, as soon as one is available, and they reach the top of the 1 waiting list. b. The Authority will make every effort to estimate accurately an approximate date of occupancy. However, the date given ' does not mean that applicants should expect to be housed by that date. The availability of a suitable unit to offer a family is contingent upon factors not directly ' controlled by the Authority, such as; turnover rates -15- PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 ' F. Screening and Tenant Selection Criteria/Suitability for Admission (cont'd) t and market demands as they effect the bedroom sizes and project location. c. Applicants determined to be ineligible or unsuitable for admission will be promptly notified. These applicants 1 will receive a Notice of Rejection from the Authority, stating the basis for such determination. The Authority shall provide such applicants with an opportunity for ' an informal review of the determination. The applicant must contact the Authority in writing within ten (10) working days of receipt of such determination. Upon ' receipt of the applicant' s written request, the Authority shall schedule an informal hearing. The hearing shall be scheduled within the 30-day period following the determina- tion of ineligibility/unsuitability. ' d. The Notice of Rejection must include the above information plus a description of the informal hearing process. During the hearing the applicant family will be afforded an oppor- tunity to present evidence with respect to: ' ° information that affect eligibility issues ° information pertaining to rehabilitation in the area of Tenant Selection or Screening ' (suitability). The informal hearing will conform to the following due process requirements: • If the decision to deny admission is based on allegations ' by a third party, the Authority will attempt to have the third party present. ° The PHA employee who made the decision must be present to provide available facts, and for questioning. ° The hearing must be conducted by an employee .of the Authority who did not participate in the decision and who is not directly involved in the day-to-day administration of the program. ° The decision must be based solely on evidence presented at the hearing. ' -16- 1 PHA JULY 1988 POLICY AND PROCEDURE MANUAL 9.0 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1 F. Screening and Tenant Selection Criteria/Suitability for Admission (cont'd) 1 ° The applicant has a right to inspect the file. 1 NOTE : The grievance procedures for public housing tenants do not apply to Authority determinations affecting applicants. Also the Housing Authority does not need to provide an informal review for the following types of determinations: (1) To review discretionary administrative determinations 1 by the Authority, or to consider general policy issues on class grievances. ' (2) To review the Authority' s determination of the number of bedrooms necessary for the family. e. Tile Housing Authority will retain information pertaining 1 to applicant eligibility/ineligibility for a period of three years, or until audited by HUD. G. PREFERENCES FOR TENANT SELECTION 1 1. A Preference does not guarantee admission. The applicant must still meet the Authority' s tenant screening criteria before being accepted as a tenant. Preferences will be given to applicants who are otherwise eligible and who, at the time informtion is verified, meet the definitions of the preferences described below. 1 2. The following preference system will be applied in the selection of applicants for admission: ' a. A preference for admission of elderly families shall be granted, but only to those units specifically designed or designated for elderly families. 1 1 1 1 _17_ PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 G. Preferences for Tenant Selection (cont'd) An elderly family retains this preference over a non-elderly family who both are being considered for admission to a pro- ject for the elderly. The elderly family preference has primacy even if the non-elderly family qualifies for one of the Federal Preferences. Thus, the order in which families are selected from the waiting list for units designated for the elderly is: ' ° Elderly families with Federal Preferences-Veteran ° Elderly families with Federal Preference-Non-Veteran ° Elderly families with no Federal Preferences-Veteran ° Elderly families with no Federal Preferences-Non Veteran Non-elderly families (in accordance with assigned Federal Preferences) ' b. Federal Preferences for admission shall be granted to applicant families whose verified circumstances at the tune of being offered a unit (prior to execution . of a ' lease) correspond to one of the following definitions: ° Involuntarily displaced; ° Living in Substandard Housing; ° Paying more than 50% of family income for rent. The Authority has chosen to assign each of the three Federal Preferences an equal weight. The three preferences will 1 not be combined or aggregated in any manner. Applicants are considered on the basis of any of the Federal Preferences they can verify. ' c. The Authority recognizes a preference for families of Veterans or Servicemen, as mandated by California State Law. See the ' definitions section of this policy to see how a family would qualify for this preference. 1 -18- r PHA JULY 1988 _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 G. Preferences for Tenant Selection (cont'd) r ' d. Order of Preference: All units except those that are specifically designed and designated for the Elderly will be assigned to applicants for admission in the ' following order: r ° Families with Federal Preference-Veteran ° Families with Federal Preference-Non-Veteran ° Families with no Federal Preference-Veteran ° Families with no Federal Preferences-Non-Veteran r In addition to the above mentioned Order of Preference the Authority will assign a preference for broad range of income to every tenth applicant in accordance with Section H of these policies. r 3. Primacy of the Federal Preferences a. Except for admission to elderly complexes as described in 2(a) above, applicants who qualify for a Federal Preference will receive assistance before applicants who are not so qualified. The Federal Preference for assistance shall take precedence regardless of the non-Federal Preference applicant' s qualifications with respect to State or local r preferences established in these policies, broad range of income goals, place on the waiting list, or date of the application. ' b. Any move-in mandated by court orders related to desegrega- tion .or Fair Housing and Equal Opportunity will take a precedence over the Federal Preferences. (24 CFR 960.211 ' (b)(3) and pg. 1131, 15 January 1988 Regulation) 1 r r -19- PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ __ _ 9.0 _ G. Preferences for Tenant Selection (cont'd) 4. Administration of Federal Preferences a. The. Authority requires that applicants certify their quali- fication for a Federal Preference at the time of application. Final verification at the time of admission will be done by the Authority prior to the execution of a lease. b. At the time of initial application, the Authority will use a Federal Preference checklist to determine whether families I prospectively qualify for any of the Federal Preferences. Only the families who certify to having qualifications for a preference will be given that status on the waiting list. c. Families that do not qualify for a preference at the time of application will be notified in writing in accordance with Section F. paragraph 6 of these policies. At the application interview they will be advised to notify the Authority of any change that may affect their ability to qualify for a preference. If otherwise eligible, the family' s application will then be placed on the waiting list in a non-Federal Preference category. d. Applicants that certify to Federal Preference at the time of application but do not qualify for any Federal Preference at the time of admission will lose the preference qualifi- cation and their standing on the waiting list. e. If an applicant has a Federal Preference for living in sub- standard housing or involuntary displacement at the time of application and obtains standard, permanent replacement housing prior to the Authority' s verification at the time of admission, the applicant will be denied the preference. LLikewise if an applicant is no longer paying more than 50% ' of income for rent at the time they are considered for admission, that preference would also be lost. ' f. At the time of admissions review--families that lose their original Federal Preference may 'still qualify for one of the other Federal Preferences and would not lose their position on the waiting list. g. At the time of admissions review--Applications for families that cannot qualify for any of the Federal Preferences will be moved into a non-Federal Preference category, in a lower position on the waiting list based on any applicable State/local preference, date and time of application. -20- PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 _ G. Preference for Tenant Selection and Income Ranges (cont'd) 5. Qualifying for a Federal Preference An applicant qualifies for a Federal Preference in accordance with the following: a. INVOLUNTARILY DISPLACED--The applicant has been involuntarily displaced and is not living in standard, permanent replace- ment housing or within no more than six months from the date of any PHA verification the applicant will be involuntarily displaced. NOTE : An Applicant may not qualify for this preference if they were a tenant family and refused to comply with applicable program policies o,r procedures under the 1937 Housing Act with respect to the occupancy of underoccupied and overcrowded units; or failed to accept a transfer to another housing unit in 1 accordance with a court decree or in accordance with the policies and procedures of a HUD-approved desegregation plan. b. LIVING IN SUBSTANDARD HOUSING--Applicants must be living in substandard housing at the time of any verification by the PHA. c. PAYING MORE THAN 50 . OF INCOME FOR. RENT--A family must be paying more than 50% of income for rent at, the time of any verification by the PHA. NOTE: An applicant may not qualify for this preference if he/she is paying more than 50% of income for rent because the applicant' s assistance under the United States Housing Act of 1937 or Section 101 of the Housing and Urban Development Act of 1965 has been terminated as a result of the applicant' s failure to 1 comply with program policies and procedures with respect to occupancy of underoccupied and overcrowded units. d. The definitions for the Federal Preferences may be found in the Definitions Section of this policy. ' 6. Required Verifications for the Federal Preferences Applicants will qualify for the Federal ' Preferences to the extent that their status is verified in accordance with the following requirements: r -21- PHA JULY 1988 POLICY AND PROCEDURE MANUAL 9.0 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - G. Preferences for Tenant Selection (cont'd) a. Involuntary Displacement (1) NATURAL DISASTER: For applicants claiming displacement resulting from a disaster, such as fire or flood, the Authority will require a third-party written verifica- tion from a unit or agency of government certifying that the applicant has been displaced or will be displaced within the next six months, as a result of a disaster. The Authority will ask the verifying agency to state the cause of the disaster, if known, for the purposes of conducting tenant screening. (24 CFR 960.211 (e)(1) ) (2) GOVEKNMENTAL ACTION: For applicants claiming displacement resulting from code enforcement or a public improvement or development program carried on by a governmental body or agency, the Authority will require a third-party verifica- tion from the appropriate unit or agency of government certifying that the applicant has been moved or will be moving in the next six months, as a result of code enforce- ment or a public improvement or development program. (24 CFR 960.211 (e)(2) ) (3) LANDLORD' S ACTION: For applicants claiming displacement 1 resulting from a landlord' s actions, the Authority will require a third-party written verification from the land- lord or the landlord' s agent, certifying that the appli- cant has been displaced or will be displaced within the next six months as a result of the landlord' s action. For sucha verification to be considered valid, it must indicate the reason for, or nature of the landlord' s action, and include a certification stating that: The reason for the action is beyond the applicant' s ability to control or prevent; ° The action has happened or will be happening despite I the applicant having met a previously imposed condition of occupancy; and ° The action is other than a rent increase. (4) ABUSIVE SITUATION: For applicants claiming displacement pursuant to there being an abusive or threatening house- hold member, the Authority shall require: ° The applicant to supply the name of the abusive or threatening household member; and 1 ' -22- r PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 G. Preferences for Tenant Selection (Cont'd) r r ° An acceptable third-party written verification from the court of competent jurisdiction, a clergyman, a physician, or a public or private facility that provides shelter or counselling to the victims of domestic violence. (24 CFR 960.211 (e) (4) ) . Such a verification will not be rconsidered valid unless it: * Supplies the name of the threatening or abusive household member; * Describes how the situation came to the verifier' s attention; and * Indicates that the threats and/or violence are of a recent or continuing nature. b. Substandard Housing (1) SUBSTANDARD UNIT: For applicants claiming to be residing in substandard housing, the Housing Authority will require a third-party written verification from a unit or agency of government, of the applicant's landlord, indicating one or more of the deficiencies outlined in the Definitions Section of this policy. Where units or agencies of govern- ment or the applicant' s landlord are unable or unwilling to supply such verification, a PHA employee may verify that the applicant' s housing is substandard, after having first conducted an inspection of the applicant' s unit. (24 CFR 960.211 (g) ) (2) HOMELESS: For Applicants claiming to be homeless, the Authority will require: ° The applicant' s statement that he/she lacks a fixed regular and adequate night-time residence, and; ° A third-party written verification from a public or private facility that provides shelter for homeless individuals, or the local police department, or a social services agency. certifying the family' s homeless status in accordance with the r definition supplied in these policies. For individuals who are homeless by virtue of having a primary night- time residence for individuals intended to be institutionalized the Authority will attempt to ascertain whether such individuals have, in fact, been prospectively placed in an institution, and if so, the date set for institutionalization. r -23- 1 PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 G. Preferences for Tenant Selection (cont'd) i c. Paying more than 50% of Family Income for rent. (1) For applicants claiming to be paying more than 50% of family income for rent, the Authority will require the following verifications: (24 CFR 9bO.211 (j )) Complete verification of everything involved in ' determining Annual Income, including Net Family Assets and Asset Income. ° Verification of rent due to the family's landlord or cooperative under the lease or occupancy agreement by reguiring the family to supply its most recent rental receipts, or a copy of the family' s current lease or occupancy agreement; or contacting the landlord or cooperative directly. ° Cost of amortizing the purchase price of a manufactured home will be verified by requiring the family to supply copies of its most recent payment receipts, which may include cancelled checks or money order receipts or a copy of the current purchase agreement; or contacting the lien holder directly. ' ° Tenant paid utilities will be verified by having the family supply the appropriate bills or receipts; or, obtaining the information directly from the utility or service supplier. H. BROAD RANGE OF INCOMES 1. Within the limitations imposed .by the Federaly Mandated Preferences it is the policy of the Authority to avoid concentrations of the most economically and socially deprived families and to house families with a broad range of incomes of lower income families in the area of operation and with rent paying ability sufficient to achieve financial stability of Public Housing units owned and operated by the Authority. To accomplish this objective, studies will be conducted at least annually to compile the following data: ° Actual distribution of incomes of all families residing in the Public Housing units and average rent which is being achieved from these families. -24- r ' PHA JULY 1988 _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 H. Broad Range of Incomes (cont'd) r ' Average operating costs of the Public Housing units. ° Average rent required to meet the operating costs. 2. On the basis of the foregoing, two income ranges. will be established to achieve a "broad range of incomes" goal of a tenant body that consists of at least 25% lower income, but not very low income families. In an effort to achieve this goal , applicants without a Federal Preference, but who will be admitted under the 10% exception rule will be selected for available units in the manner described below: a. The Authority may house lower-income applicants who do ' not qualify for any Federal Preference ahead of Federal Preference applicantsrp ovided the number of applicants so assisted does not exceed 10% of all families newly admitted to the Authority' s housing in any one year period. b. To ensure compliance with the 10% rule and attempt to ' achieve the broad range of income goals every tenth family admitted shall be a lower-income family that does not qualify for a Federal Preference. This means that as vacancies occur, and families are r selected from the waiting list, every 10th family selected shall be a lower-income family from the Non-Federal Preference pool of applicants. c. If at any time there are no applicants on the waiting list(s) that qualify for the Federal Preferences, otherwise eligible families admitted to units during such times will not be counted against the 10% admissions limit established in this section. The Authority will not hold units vacant for pros- pective applicants with Federal Preferences, nor will it relax eligibility or screening criteria to admit unsuitable appli- cants with Federal Preferences. rI. BEDROOM OCCUPANCY STANDARDS The following standards will govern the ,number of bedrooms required to accomodate a family of a given size and composition. Reasonable exceptions to these standards may be made in case of extreme emergency at the discretion of the Executive Director or designee. r -25- PHA JULY 1988 _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ 9.0 _ I . Bedroom Occupancy Standard (cont'd) 1. The standards as described below take into consideration the minimum number of occupants for admission and the maximum ' number of persons for continued occupancy. NUMBER OF PERSONS No.of Bedrooms Minimum Maximum at Maximum for ' Move-in Continued OOccupancy** 1 1 2 3 2 2 4 5 3 3 6 7 4 4* 8 9 5 5** 10 11 * These situations assume a medical need for a separate ' bedroom. ** Families showing the maximums listed here shall be put on the transfer list. 2. An unborn child will not be counted as a person. 3. Dwellings will be so assigned that: a. It will not be necessary for persons of different genera- tions or opposite sex, other than husband and wife, to occupy the same bedroom. (An exception may be made for infants and young children up to the age of two who are of the opposite sex. ) b. For verified reasons of health (old age, physical disability, etc. ), a separate bedroom may be provided for an individual family member; and c. The living room will not be. regularly used as a bedroom. d. A single head of household parent shall not be required to share a bedroom with his/her children. -26- PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 1 J. LEASING OF DWELLING UNITS 1 1. A lease agreement shall be signed by the head and/or spouse of ' the household accepted as a tenant family and by the Housing Manager or other authorized representative of the Authority, prior to actual admission. Other adult members of the house- hold must sign the lease, as well , before one year has passed ' after move-in. 2. If a tenant transfers within or between the project(s) a new ' lease will be executed for the dwelling into which the family moves. 3. If, at any time during the life of the lease agreement, a change ' in the tenant' s status results in the need of changing or amending any provision of the lease, either: ' a. A new lease agreement will be executed, or b. A Notice of Rent Adjustment will be executed, or ' C. An appropriate rider will be prepared and made a part of the existing lease, or appropriate insertions made within ' the lease. All copies of such riders or insertions are to be dated and signed by the tenant and by the Executive Director or other authorized representative of the Housing Authority. 4. Only those persons listed on the most recent certification form shall be permitted to occupy a dwelling unit, unless there is a birth to a family member, or other addition authorized by the ' Authority' s designee in writing. a. Family members over age 18 who move from the dwelling unit to establish new households shall be removed from the lease. These individuals may not be readmitted to the unit and must apply as a new applicant household for placement on the waiting list (subject to applicable income limits, preferences, tenant selection, and screening requirements) . Medical hardship, or other extenuating circumstances shall be considered in making in making determinations under this paragraph. ' b. Overnight guests may be permitted in a dwelling unit, provided they are reported to the Housing Manager within forty-eight hours of their arrival or prior thereto. Visits not exceeding ' fifteen days may be authorized by the Housing Manager. Visits of more than fifteen days shall not be authorized. Visitors remaining beyond this period shall be considered trespassers ' -27- ' PHA JULY 1988 POLICY AND PROCEDURE MANUAL 9.0 J. Leasing of Dwelling Units (cont'd) ' and the tenant shall be guilty of a breach of the lease. Repeated lengthy visits by the same guest will be considered an attempt to subvert the lease. C. Roomers and lodgers shall not be permitted to occupy a dwelling ' unit, nor shall they be permitted to move in with any family occupying a dwelling unit. d. Tenants will not be given permission to allow a former tenant ' of the Authority who has been evicted to occupy the unit for any period of time. ' K. UNIT TRANSFERS ' Transfers will be made without regard to race, sex, color, creed, age, religion, handicap, or national origin. 1. Transfers shall be performed on a county-wide basis, but will always be done within the following guidelines: a. If a unit of appropriate size or design is located in the ' complex where the family needing the transter is currently residing, the family (barring emergency situations) will be transferred to an appropriate unit within that same complex. In this manner, the Authority shall attempt to avoid uprooting families from friends, relatives, familiar surroundings and work opportunities. b. If a unit of appropriate size or design is not located in the complex where the family needing the transfer is cur- rently residing, the family will be transferred to an appropriate unit in a different complex. 2. Tenants will not be transferred to a dwelling unit of equal size within a site or between sites except to alleviate hardship of the ' tenant or other undesirable conditions as determined by the Executive Director or designee. ' 3. Transfers shall be performed to address the following situations: a. Medical need for a different unit (size or type) ' b. Over-crowding or under-crowding ;' ' -28- ' PHA JULY 19818 _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 ' K. Unit Transfers (cont'➢ c. Unit safety issues or hazardous conditions (emergencies) d. CIAP or maintenance-dictated situations. I Transfers in categories (a) and (b) shall be performed on a one- to-one basis with neva admissions. Transfers in categories (c) and (d) shall always take precedence over new admissions. The only temporary transfers shall be CIAP relocations. 4. Tenant Transfer Criteria ' a. Standard Routine Transfers--Over/under housed tenants may be recommended for transfer at time of re-examination or interim ' redetermination. This is the only method used to determine over/under housed status. Tenants will be informed that a transfer shall be required and is pending. Interviewers will record transfer requirements on individual forms in duplicate for• each transfer, and submit a copy of the form to Central Office for processing. ' Tenants who owe back rent or other charges, or show a pattern of late payment will riot be considered for transfers (provided that emergency conditions are not an issue) . ' ° Children of the same sex are expected to share a bedroom. ° When a female head of household, originally housed in a bedroom by herself, has a child, that child may remain in the parent' s bedroom until it it two years of age before a transfer is recommended. (Exception: Husband returns to unit or marriage takes place. ) b. Medical Transfer--Requests for medical transfer will be made ' to the Housing Manager. The Housing Manager will obtain the necessary verification and/or documentation to substantiate the need for a medical transfer. Whenever feasible, trans- fers will be made within a tenant' s area. Medical transfers may be initiated by the Authority (e.g. , moving a person with mobility problems to a lower floor) . c. Families will not be transferred during periods when eviction proceedings have been inititated against them. ' ' -29- ' PHA JULY 1968 _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 _ K. Unit Transfers (cont'd) d. Emergency transfers are permitted when unit conditions pose an immediate threat to tenant health and safety, as determined by the Authority. e. Families may be reimbursed their out-of-pocket expenses only for emergency and CIAP transfers mandated by the Authority. f. The Housing Managers have the responsibility to obtain and document all pertinent information relative to a request for transfer. ' II . TENANT SELECTION AND ASSIGNMENT PLAN A. ORGANIZATION OF THE WAITING LIST Each applicant shall be assigned his/her appropriate place on a waiting list on a county-wide basis in sequence based upon date and time the application is received, suitable type or size of unit, and factors affecting preference or priority established by the Authority' s policies, which are not inconsistent with ' the objectives of Title VI of the Civil Rights. Act of 1964 and the HUD regulations and requirements pursuant thereto. B. METHOD OF APPLICANT SELECTION The plan for selection of applicants and assignment .of dwelling units ' to assure equal opportunity and non-discrimination on grounds of race, color, creed, age, sex, religion, handicap, or national origin is as follows: The Authority hereby establishes a plan in accordance with HUD Regulations (Plan A per 7465.1 REV-2, Chapter 5, par. 5-7) under which the eligible applicant first in sequence must accept the vacancy offered or be moved to last place on the eligible applicant list. C. JUSTIFIED REJECTION OF A UNIT ' If an applicant presents to the satisfaction of the Authority clear evidence that acceptance of the offer of a suitable vacancy will result in undue hardship or handicap not related to considerations of race, color, creed, age, sex, religion, handicap or national origin, refusal of the offer shall not require that the applicant be placed at the bottom of the waiting list. -30- e PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 C. Justified Rejection of Unit (cont'd) An applicant will be considered not to have been offered a unit in the following instances: .1. The unit is not of the proper size and type and the applicant would be able to reside there only temporarily (for example, a specially designed unit that is awaiting a handicapped appli- cant needing such a unit) . 2. The unit contains lead-based paint, and accepting the offer could result in subjecting the applicant' s children under seven years of age to lead-based poisoning. 3. The applicant is unable to move at the time of the offer and presents clear evidence which substantiates this to the Authority' s satisfaction. Examples: ° a doctor verifies that the applicant has just undergone major surgery and needs a period to recuperate; ° a court verifies that the applicant is serving on a jury which has been sequestered. NOTE : Since applicants will be notified approximately four months in advance of their projected move-in date, "not having the money" will not be considered acceptable grounds for rejecting a unit. 4. Accepting the offer would make employment, day care, or ' medical facilities inaccessible. 5. Reasons 1 through 4 shall be the `only justified reasons an applicant may reject a unit without going to the bottom of ' the waiting list. Applicants sent to the bottom of the waiting list shall have their applications time-stamped and re-dated to coincide with the time of the unit rejection, and the application shall then be returned to the waiting list, taking into consideration the new time and date, preference category of the applicant and unit size and type required. The Authority sha11 maintain a record of the units offered, including location, date, and circumstances of each offer, and each rejection Ior acceptance. The Authority will note the reason for any rejection. Transfers to correct occupancy standards and alleviate medical ' problems will be performed on a one-to-one basis with new admissions. Transfers to address emregency situations or perform major main- tenance functions shall take precedence over new admissions. ' -31- 1 , PHA JULY 1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 III . CONTINUED OCCUPANCY AND PERIODIC RE-EXAMINATIONS A. ELIGIBILITY FOR CONTINUED OCCUPANCY I At the time of annual re-examinations, an assessment shall be made based on the family' s lease compliance during the past year to determine whether they are suitable for continued occupancy. If a family is determined to be unsuitable for continued occupancy, they will be issued a 30-day Notice of non-renewal of the lease and termina- tion proceedings will be started. B. REGULAR RE-EXAMINATIONS The Authority shall , at least once a year., re-examine the incomes of all resident families. The Authority reserves the right to implement alternate re-examination schedules, in the interest of evening out management workloads, so long as no family goes more than 12 months without being re-examined. C. SPECIAL RE-EXAMINATIONS Occasionally, at the time of admission or regular reexamina- tion, a family' s circumstances will be such that it: 1. has no income, and no prospect of income; or 2. has a sole source of income of unemployment compensation. ' In such instances, a temporary determination will be made with respect to income and a special re-examination will be scheduled ' every 60 days until the family' s economic circumstances stabilize. The family wi l l be notified in advance as to the date of the . special re-examinations. D. RE-EXAMINATION PROCEDURES 1. At the time of re-examination, all adult members will be required to sign an application for continued occupancy and. other• required HUD forms. -32- i PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 D. Re-examination Procedures (cont'd) 2. Employment, income, allowances, and such other data as. is deemed 1 necessary will be verified, and all verified findings will be documented and filed in the tenant' s folder. 3. Verified information will be analyzed and a determination made with respect to: i a. Eligibility of the tenant as a family or as the remaining member of a family; b. Unit size required for the family; c. Rent the family should pay. 4. Income shall be computed in accordance with the definitions and procedures set forth in this policy. 5. Families failing to respond to the initial re-examination appointment will be issued a final appointment within the same month. Failure to respond to the final request will result in the tenant being referred to the Housing Administrator for ' lease termination for failure to comply with the terms and conditions of occupancy as indicated in the lease. E. ACTION FOLLOWING RE-EXAMINATION 1. If there is any change .in rent, the lease will be amended, ' or a new lease will be executed, or a Notice of Rent Adjustment will be issued. 2. If any change in the unit size is required, the tenant will be moved to a unit of appropriate size and a new lease executed. If a unit of appropriate size is not available, the tenant will be placed on a county-wide transfer list and moved to an appro- priate unit when one does become available. IV. ESTABLISHING RENTS BETWEEN ADMISSION AND FIRST RE-EXAMINATION AND BETWEEN SCHEDULED RE-EXAMINATIONS (FIXED RENT SYSTEM) A. RENT DECREASES AND ADJUSTMENTS There will be adjustments in rent between admission and first reexamination or between scheduled re-examinations only when i i -33- PHA JULY-1988 _ _ _ _ _ _ ---POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 _ ' A. Rent Decreases and Adjustments (cont'd) l the tenant can show a change in his/her circumstances (such as a decline in income or change in family composition) which would result in the tenant' s paying more than the higher of 30% of Monthly Adjusted Income, or 10% of Monthly Income for the Total Tenant Payment. 1. Rent will remain in effect for the period between annual rent redeteminations, UNLESS during such period: a. A person with income joins the family; b. The tenant can show a change in his/her circumstances (such as decline or loss of income) which would justify a reduction in rent. If a reduction is granted, the Tenant must report subsequent changes in income within 10 days of the occurrence, until the next scheduled re-examination. (Failure to report within the 10 days may result in a retroactive rent charge. ) c. It is found that the tenant has misrepresented the facts at the annual re-examination upon which the rent is based so that the rent the Tenant is paying is less than the rent that he/she should have been charged, the Authority may apply an increase in rent retroactive to the first of the month following the month in which the misrepresentation occurred. d. Rent formulas or procedures are changed by Federal law or regulation. 2. All changes in family composition must be reported to the Housing Manager within 10 days of the occurrence. Failure to report within the 10 days may result in a retroactive rent charge. 3. Complete justification and verification of the circumstances applicable to rent adjustments will be documented and approved by the Executive Director or his designee. 4. The Authority will process interim adjustments in rent in accor- dance with the following policy: -34- PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 ' A. Rent Decreases and Adjustments (cont'd) a. When a decrease in income is reported, and the Authority receives confirmation that the decrease will last less than 30 days, an interim adjustment will not be processed. b. Tenants reporting decreases in income that are expected to last more than 30 days will have an interim adjustment processed. B. EFFECTIVE DATE OF ADJUSTMENTS Tenants will be notified in writing of any rent adjustments and such notice will state the effective date of the adjustment. I 1. Rent decreases go into effect the month following the month in which the change was reported, provided the change in income or circumstances was reported in a timely manner. 2. Rent increases are to be made effective the first of the second month following that. in which the change occurred. (Retroactively, if necessary) C. FAILURE TO REPORT ACCURATE INFORMATION If it is found that the Tenant has misrepresented or failed to report to Management the facts upon which his/her rent is based so that the rent being paid is less than what should have been charged, then the increase in rent will be made retroactive. Failure to report accurate information is grounds for initiating eviction proceedings in accordance with the Authority' s Dwelling Lease. ' D. MANAGEMENT ERRORS IN COMPUTATION AND FAILURE TO PROCESS 1. If a tenant is undercharged, due to management' s errors in computation or failure to process reported changes, the earliest the tenant' s rent may be increased is the first of the second month following that in which the error or failure ' to process was detected. -35- P HA JULY 1988 _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 . D. Management Errors in Computation and Failure to Process (cont'd) 2. If a tenant is overcharged, due to management' s error in computation or failure to process reported charges, the rent shall be decreased, for an error, retroactive to the effective date of the incorrect rent computation. For the failure to process a reported change, the decreased rent will be retroactive to the month following the month in which the unprocessed changes were reported. V. LEASE TERMINATION PROCEDURES A. NOTICE REQUIREMENTS No tenant shall be given a Notice of Lease Termination without being told by the Authority in writing the reason for the ter- mination. The tenant must also be informed of his/her right to request a hearing in accordance with Authority' s Tenant Grievance Procedure, and be given the opportunity to make such a reply as he/she may wish. B. RECORDKEEPING REQUIREMENTS FOR TERMINATIONS/EVICTIONS A written record of every termination and/or eviction shall be maintained by the Authority in the individual tenant files. This record shall differentiate between tenant-initiated ter- ininations in compliance with the lease, tenant-initiated ter- minati.ons not in compliance with the lease, and evictions. The record shall contain the following information: 1. Name of tenant, number and identification of unit occupied; 2. Date(s) of the 14 Day Notice of Lease Termination (HUD requirement) and the Notice to Quit (State Law Requirement). NOTE : Such notices shall be in the file only of eviction cases. r3. specific reason(s) for the notices, with lease violations, disturbances, and other facts pertinent to the issuing of the Notices described in detail ; 4. Date and method of notifying tenant; 5. Summaries of any conferences held with tenant including the names of conference participants and conclusions. i -36- D D P FIA JULY 1988 POLICY AND PROCEDURE MANUAL 9.0 a VI . TENANT-PAID UTILITIES In some of the 'Authority' s developments tenants pay the cost of certain utilities directly to the supplier of the utilities. When this is the case, the tenants' rents are reduced by an Allowance of Utilities that is developed by the Authority in consultation with tlie utility supplier and approved by HUD. In Developments with tenant-paid utilities, paying D the utility bill is the Tenant' s obligation under the Authority' s lease. Failure to pay utilities is grounds for eviction. VII. SECURITY DEPOSIT At the time the dwelling lease is executed, each new family accepted as a tenant shall pay as a security deposit the greater of one month' s Total Tenant Payment or $100. No increase in security deposit will be required for tenants in residence or in the event of transfer. Atter termination of the dwelling lese, the security deposit will be returned to the tenants, without interest, provided all charges pro- perly deductible from said deposit have been paid. VIII. PETS J� The dwelling lease may be amended or a separate "Pet Agreement" U executed to permit keeping common household pets under the following circumstances: 1. Tenants, age sixty and over, residing in any public housing unit may request permission to have pets in accordance with the Housing Authority Pet Ownership Rules; and will be granted such permission provided they execute the proper "Pet Agreement" PHA #90. An additional pet deposit will be required for each pet at the time the agreement is signed. (State Law effective 1/1/82) 2. Tenants, regardless of age, residing in projects designated for occupancy by the elderly or handicapped may request permission to have pets in accordance with the Housing Authority Pet Ownership Rules; and will be granted such permission provided they execute the proper "Pet Agreement" PHA #90. An additional refundable pet deposit will be required for each pet at the time the agreement is signed. Projects designated as Elderly/Handicapped are: CAO11011; CAO11012; CAO11013; CA011015 .(Federal Rule, effective 3/2/87) . D 1 D -37- PHA JULY 1988 POLICY AND PROCEDURE MANUAL 9.0 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - VIII. Pets (cont'd) 3. In all other cases the "No Pet" rule will be strictly enforced. Animals to assist the handicapped such as a "guide dog" properly trained for the Blind or a "signal Dog" shall not be denied access to housing accomodations. Persons having such animals will not be required to enter into "Pet Agreements". 4. Other requests will be handled on a case by case basis. IX. RENT COLLECTION POLICY Sound rent collection principles and techniques will be impartially applied to all tenants in order to contribute to the efficient opera- tion and financial stability of the public housing units owned and operated by the Authority. A. INFORMING TENANTS OF THE POLICY Tenants will be made aware of the provisions in the dwelling lease which spell out their responsibilities and obligations regarding rent payment. The following considerations will be brought out during the initial interview: 1. The manner in which the rent is calculated. 2. The date the rent is due. 3. The date by which the rent is determined to be delinquent. 4. Penalty for non-payment. -� B. PAYMENT OF RENT In accoroance with the Dwelling Lease, all tenant rents are "due and payable" in advance on the first day of each calendar month. If prior arrangenments have not been made for an extension of credit, the rent is determined to be delinquent on the sixth day of the month. 1 -38- ' PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 C. PENALTY FOR NON-PAYMENT Tenants who have been determined to be delinquent in their rent shall have their tenancy terminated in accordance with Federal notification requirements and applicable state laws. D. PARTIAL PAYMENT Extensions of credit or partial payments may be granted from time to time for tenants who have an emergency situation. Once the 14-Day Notice and 3-Day Notice has been served on a tenant, no partial payments will be accepted. Tenants who request extensions month after month shall be denied these extensions and their failure to pay rent within the acceptable time frame will result in eviction. E. REPEATED NON-PAYMENT Tenants who are consistently delinquent in their rent, requiring the PHA to process 14-Day Notices before paying their rent, shall , atter being counselled and warned, be served a non-curable 90-Day Notice of Proposed Termination of Tenancy". X. DEFINITIONS AND PROCEDURES TO BE USED IN DETERMINING INCOME AND RENT A. ANNUAL INCOME (24 CFR, 913.106) Annual income is the anticipated total income from all sources, including net income derived from assets, received by the Family Head and Spouse (even if temporarily absent) and by each additional family member. Annual income is anticipated income for the 12-month period following the effective date of initial determination or re-examination of income, exclusive of income that is temporary, non-recurring, or sporadic as defined later in this section or is specifically excluded from income by other federal statute. 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; -39- PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 ' A. Annual Income (cont'd) ' 2. Tile net income from operation of a business or profession including the withdrawal of cash or assets (for this purpose, expenditures for business expansion or amortization of capital indebtedness shall not be deducted to determine the net income from a business. A straight line depreciation of assets used in the business or profession may be deducted. ) 3. Interest, dividends, and other net income of any kind from real or personal property (for this purpose, expenditures for amortization of capital idebtedness and an allowance for ' depreciation of capital assets shall not be deducted to determine tyle net income from real or personal property). Where the family has Net Family Assets in excess of $5,0005 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. Income will be imputed on assets in excess of $5,000 at a rate of 5.5% until HUD notifies the Authority to use a different percentage. 4. The full of periodic payments 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 payment for the delayed start of a periodic payment. NOTE: Where Social Security is making a reduction in monthly benefits to recoup amounts previously over-paid to a family; Annual Income shall ' include the portion of the monthly payment remaining after the deduction for over-payment has been made. ' 5. Payments in lieu of earnings, such as unemployment and disability compensation, worker' s compensation, and severance pay. (See the paragraph in the next section concerning lump-sum additions to family assets. ) 6. All welfare assistance payments received by or on behalf of any family member.. NOTE: Where welfare is making a reduction in monthly benefits to recoup amounts previously over-paid to a family, Annual Income shall include the portion of the monthly payment remaining after ' the deduction for over-payment - has been made. -40- PHA JULY 1988 POLICY AND PROCEDURE MANUAL 9.0 A. Annual Income (cont'd) 7. Periodic and determinable allowances, such as alimony and child support payments, and regular cash contributions or gifts received from persons not residing in the dwelling unit. 8. All . regular pay, special pay, and allowances of a member of the Armed Forces. (See paragraph in the next section concerning exposure to hostile fire. ) ' 9. Any earned income tax credit to the extent it exceeds income tax liability. B. ITEMS EXCLUDED FROM ANNUAL INCOME ' Annual Income .excludes the following amounts: 1. Income from the employment of children (including foster children) under the age of 18 years; 1 2. Payments received for the care of foster children; ' 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 settlements for personal property losses; (but see ' paragraph 5 in the previous section if payments are/will be periodic in nature) . 4. Amounts received by the family that are specifically for, or in reimbursement of the cost of medical expense for any family metttber; r5. Income of live-in aide; b. Amounts of educational scholarships paid directly to the student or to the educational institution, and amounts paid by the government to a veteran, for use in meeting the costs of tuition, fees, books, equipment, materials, supplies, ' transportation, and miscellaneous personal expenses of the student.. Payment to a veteran not used for the above purpose that is available for subsistence is to be included in income; ' 7. The special pay to a family member serving in the Armed Forces who is exposed to hostile fire; -41- 1 ' PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL__ _ _ _ _ _ _ _ 9.0 B. Items Excluded from Annual Income (cont'd) r ' 8. Amounts received under training programs funded by HUD; and amounts received by a disabled person that are dis- regarded for a limited time for purposes of Supplemental t Security Income and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS) : OR 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. ) to allow participation in a. specific program (e.g. , Job Training Partnership Act); 9. Temporary, non-recurring, or sporadic income (including gifts; ) or 10. 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 the United States Housing Act of 1937. (A notice will be published by HUD ' in the Federal Register identifying the benefits that qualify for this exclusion. Updates will be published and . distributed when .necessary. ) The following is a list of benefits that qualify for the exclusion as of April 1, 1988. ' Relocation payments made under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4621-4638) . ' The value of the allotment provided to an eligible household for coupons under the Food Stamp Act of 1977 (7 U.S.C. 2011-2029) . ° Payments to volunteers under the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951-4993) . ' ° Payments received under the Alaska Native Claims Settlement Act (43. U.S.C. 5044g, 5058) . ° Income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes (25 U.S.C. 459e) . ° Payments or allowances made under the Department y p of Health and Human Services Low-Income Home Energy ' Assistance Program (42 U.S.C. 8621-8629) . -42- PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 B. Items Excluded from Annual Income (cont'd) r r . ° Payments received from the Job Training Partner- ship Act (29 U.S.C. 1552(b) . Income derived from the disposition of funds ' of the Grand River Band of Ottawa Indians (Pub. L. 94-540, 90 State 2503-2504, and ° The frst $2,000.00 of per capita shares received from judgement funds awarded by the Indian Claims Commission or the Court of Claims (25 U.S.C. 1407- 1408) , or from funds held in trust for an Indian ' Tribe by the Secretary of Interior (25 U.S.C. 117) ; and Amounts of scholarships funded under Title IV of ' the Higher Education Act of 1965 that are used to cover the cost of attendance at an educational institution. Examples of Title IV Programs are: Basic Educational Opportunity Grants (Pell Grants) , Supplemental Opportunity Grants, State Student Incentive Grants, College Work Study, and Byrd Scholarships. See 6 above for the kinds of expenses that are excluded from Annual Income. ° Payments received from programs funded under Title V of the Older Americans Act of 1965 (42 U.S.C. 3056 (f). Examples of programs under this Act are: Senior Community Services Employ- ment Program (SCSEP) Green Thumb, and the Senior Aide Programs. C. ANNUALIZING INCOME The following computations will be used to annualize income: 1. Full-Time Employment. Multipy: ° hourly wages by 2,080 (for an 8-hour day) weekly wages by 52 (NOT by 4 weeks/month X 12 months) bi -weekly amounts by 26 ° Semi -monthly amounts by 24 Monthly amounts by 12. -43- PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 _ C. Annualizing Income (cont'd) ' 2. Part-Time Employment. Multiply: Hourly wages times number of hours anticipated fo.r the year ° Average weekly amounts times the number of weeks work is anticipated Other periodic amounts (monthly, etc. ) times the ' number of such periods that the family member expects to work ' 3. Use of an annual wage without additional calculations. For example, if a teacher is paid $15,000/year, use $15,000 whether the payment is made in 12 monthly ' installments, 9 installments, or some other payment schedule. (This policy eliminates the need for interim adjustments in the summer months) . D. ANTICIPATING ANNUAL INCOME ' If it is not feasible to anticipate a level of income over a 12-month period, the Authority may use the annualized income anticipated for a shorter period, subject to a redetermination at the end of the shorter period. E. ADJUSTED INCOME (24 CFR, 913.102) ' Adjusted Income (the income upon which rent is based) means Annual Income less the following deductions and exemptions: For- All Families 1. Child Care Expenses--A deduction of amounts anticipated to be paid by the family for the care of children under 13 years of age for the period for which Annual Income is computed, but only when such care is necessary to enable a family member ' to be gainfully employed or to further his/her education. Amounts deducted must be unreimbursed expenses and shall not exceed: ° The amount of income earned by the family member released to work; or An amount determined to be reasonable by the Authority when the expense is incurred to permit education or look for, work. 1 -44- r 1 PHA JULY_1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 _ E. Adjusted Income .(cont 'd) r r 2. An Y 9 exemption of $480 for each member of the family residing in p the household (other than the head, or spouse, live-in aide, or foster child) who is under eighteen years of age or who is eighteen years of age or older and disabled, handicapped, or a full-time student. 3. Handicapped Expenses--a deduction of unreimbursed amounts paid for attendant care or auxilary apparatus expenses for handicapped family members where such expenses are necessary to permit a family member(s) , including the handicapped/disabled member, to be employed. In no event may the amount of the deduction exceed the employment income earned by the family member(s) freed to work. Equipment and auxiliary apparatus may include but are not limited to: wheelchairs, lifts, reading devices for the visually handicapped, and equipment added to cars and vans to perniit their use by the handicapped or disabled family member. Where major expenses for handicapped apparatus are being paid for over time, only the portion of the total bill being paid off during the twelve months covered by the certification or re-examination shall be permitted. Allowable handicapped expenses for a year will be equal to: Total unreimbursed expenses anticipated for the coming twelve months minus 3% of Annual Income, but NEVER more than the employment income made possible by the care or apparatus. For Elderly Families. Only: 1. Medical Expenses Deduction--A deduction of unreimbursed medical expenses, including insurance premiums, anticipated for the period for which Annual Income is computed. Medical expenses include but are not limited to: Services of physicians and other health care professionals, services of health care facilities, insurance premiums (including the cost ' of Medicare) , prescription and non-prescription medicines, transportation to and from treatment, dental expenses, eye- glasses, hearing aide and batteries, attendant care . (unrelated to employment of family members), and payment accumulated medical bills. To be considered by the Authority for the purpose of determining a deduction from income the expenses claimed_ must be verifiable. NOTE : Need for a live-in aide must be verified by a third-party before the Authority will permit a family to move a live-in aide into the unit. r -45- PHA JULY-1988 _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 E. Adjusted Income (cont'd) NOTE: Whether an Elderly family is claiming only medical or handicapped expenses, or both of . the deductions, 3% of Annual Income shall be deducted once, from the sum of verified unreimbursed handicapped and medical expenses anticipated for the coming year, in deter- mining the combined allowable amount. 2. Elderly Household Exemption--An exemption of $400 per Household. F. VERIFYING ANNUAL INCOME 1. Projections of Annual Income shall be based on the best available information, with due consideration to past year' s income, current income rate and effective date; and shall include estimates for each income recipient in the family group. 2. The income of irregular workers will be estimated on the basis of the best information available, with due consideration to earning ability and work history. 3. Overtime will be computed in accordance with verification ' obtained from the employer in the absence of more reliable or accurate information. 4. Income is the most important factor in determining a family' s eligibility and rent. The Authority has established methods of verifying income which include: a. Written third-party verification through an employer or public agency. Authority staff may update this verifica- tion by phone provided a memorandum to the file is prepared. b. Authority review of documentation provided by the family, such as: ° Benefit Checks Income tax returns I ° W-2 forms c. In the absence of any of the above, affidavits from the family describing the amount and type of income are acceptable documentation. Note: The Authority will not copy checks issued by the U.S. Government. ' -46- PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 G. RENT COMPUTATION ' 1. All .rents shall be computed using the following formula: Total Tenant Payment equals thereg ater of: ° 30% of Monthly Adjusted Income OR 10% of Monthly Income 2. Application of the 10% Rent Increase Limitation a. For tenants who moved into the Authority' s housing prior. to 8/1/82, and who have resided there continuously since that time, rents .will be computed so as to ensure that rent increases in excess of 10% per year do not occur as a result of the cumulative effect of: ° The elimination of ceiling rents in effect at the Authority as of 7/31/82; ° The change in the rent formula mandated by the ' 1981 Housing and Community Development Amendments, in which a public housing tenant' s share of the rent increased from 25% of monthly adjusted income to 30% of monthly adjusted income. ° The changes in income, asset and allowance policies mandated by the 1983 Housing and Urban Rural Recovery Act, which went into effect on 10/1/84. b. For tenants who moved into the Authority's housing between 8/1/82 and 6/30/84, and who have resided there continuously since move-in, rents will be computed so as to ensure that rent increases in excess of 10% per year do not occur as a result of the cumulative effect of: ° The changes in income, asset, and allowance policies mandated by the 1983 Housing and Urban Rural Recovery Act, which went into effect on 10/1/84. Tenants in the categories (2a) and (2b) above shall have their rents tested for the effect of the 10% rent increase limita- tion any time their rents are computed, whether at an annual or interim re-examination, until a rent is computed for which -47- PHA JULY 1988 _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 G. Rent Computation (cont'd) it was not necessary to apply the 10% cap. Once an uncapped rent is calculated for a tenant, the tenant loses the right to the rent increase limitation, and it shall no longer be necessary to subject future rent computations to the rent increase limitation test. NOTE . THE AUTHORITY SHALL USE RENT WORKSHEETS TO ENSURE THAT RENTS ARE COMPUTED CORRECTLY. XI.- DEFINITION OF TERMS USED IN THIS STATEMENT OF POLICIES 1. Area of Operation--Housing units owned by the Housing Authority of the County of Contra Costa. 2. Assets--Assets means "cash" (including checking accounts) , stocks, bonds, . savings, equity in real property, or the cash value of life insurance policies, not including the value of personal property such as furniture, automobiles and household effects." (7465.1 REV-2 5b)' IMPORTANT: See. definition number 24 for a description of of Family Assets, used to' compute Annual Income. 3. Authority--The Housing Authority of the County of Contra Costa. 4. Child Care Expenses--Costs incurred for the care of children under the age of 13, where such care .enables a family member to. work or further his/her education. Where such costs are incurred to permit employment, the amount permitted may not exceed the employment income made possible by the care. In any case, the cost of care must be reasonable given the hours and type of care provided, and the number and age of the children for whom care is provided. Third-party written verification must be received by the Authority before such expenses will be allowed. For such costs to be eligible, they must not be paid to any family member residing in the unit, must not be pre-paid or reimbursed by any outside agency or individual , and there must be no adult family member (18 or older, head or spouse) at home during the hours care is provided who would be capable of providing the care. r j -48- PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ 9.0 XI . Definitions of Terms Used in this Statement of Policies (cont'd) i 5. Co-head--An adult member of a family and co-signor to the lease who is not in a spousal relationship with the head. EXAMPLE: Two unrelated women, aged 75 and 73, share a unit. Rather than designating one the head and the other the spouse, both would be designated "co-head". 6. Common Household Pet--A smaller domesticated animal , such as a dog, cat, bird, rodent, fish, or turtle, that is traditionally kept in the home for pleasure rather than for commercial purposes. Reptiles (except turtles) do not qualify as common household pets at the Authority. 7. Dependent--A member of the household, other than head, spouse, sole member, foster child, or live-in aide, who is under 18 years of age, or 18 years of age or older and disabled, handicapped or a full-time student. (24 CFR 913.102) 8. Disabled Person--A person who is under a disability as defined in Section 223 of the Social Security Act or in Section 102(5)(b) of the Developmental Disabilities Services and Facilities Construction Amendments of 1970. (24 CFR 913.102) . a. Section 223 of the Social Security Act defines disability as: ° 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) , and unable by reason of such blind- ness to engage in substantial gainful activity requiring skills abilities comparable to those of any gainful activity in which he/she has previously engaged with some regularity and over a substantial period of time. 1 -49= PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 _ XI . Definition of Terms Used in this Statement of Policies (cont'd) 1� b. Section 102(5)(b) of the Development Disabilities Services and Facilities Construction Amendments of 1970 defines disability as: Disability attributable to mental retardation, cerebral palsy, epilepsy, or another neurological condition of an individual found by the Secretary of. Health, Education and Welfare to be closely related to mental retardation or to require treatment similar to that required for mentally retarded individuals, which disability originates before such individual attains age 18, which has continued indefinitely, and which constitutes a substantial handicap to such individual . (7465.1 REV-2; Appendix 3) 9. Displaced Family--A person or family involuntarily displaced as defined in this section. (See Involuntarily Displaced) 10. Divestiture Income--Income imputed on assets disposed of within the past two years for less than Fair Market Value, by an applicant or tenant. (See Net Family Assets) 11. Elderly Family--A family whose head, spouse, or sole member is at least sixty-two years of age, or handicapped or disabled. It may also include two unrelated persons sixty-two or older, handicapped ' or disabled, or one or more such persons living with a live-in aide or aides. (24 CFR 913.102) . 12. Elderly Person--A person who is at least 62 years of age. 13. Family--Two or more persons regularly living together, related by blood, marriage, adoption, guardianship or operation of law; or an Elderly Family, Displaced Person or remaining member of a tenant family (as defined in this section) . Foster children and live-in aides may reside in a unit, provided prior written approval has been granted by the Housing Authority, but under no circumstances shall they have any rights to the unit as the remaining member of a tenant family. 14. Family of a Veteran or Serviceman--A family shall be considered as qualifying for this definition if: a. The head is a veteran or serviceman; b. The family includes a veteran or serviceman related to the head (spouse, son or' daughter of the head); c. The spouse, who has not re-married of a deceased veteran, -50- PHA JULY 1988 _ P-LICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 _ XI . Definition of Terms Used in this Statement of Policies (cont'd) td. The surviving relative of a deceased .veteran who was a family member other than head at the time of death (i .e. mother of a soldier killed in Vietnam); e. The family of a veteran or serviceman,. formerly head, who is now permanently absent due to hospitilization, separation, desertion, or divorce. Such a family shall qualify only if: The remaining spouse has not re-married, and there remains in the unit one or more persons for whom the former head is 1 legally responsible. f. The family of a veteran or serviceman, now permanently hos- pitalized, who was a family member other than head at the time of hospitalization, and there remains in the family at least two persons related to the hospitalized individual . (i .e. Mother and sister of a hospitalized Vietnam Veteran) . 15. Full-Time Student--A person who is carrying a subject load which is considered full-time for day students under the standards and prac- tices of the educational institution attended. Educational insti- tution shall include, but not be limited to, college, university, secondary school , vocational school , or trade school . (24 CFR 913.102).. 16. Handicapped Expense Allowance--Costs incurred for apparatus or attendant care for handicapped/disabled family member(s) , which permit a family member (including the handicapped/disabled person) to work. Such expenses may not .exceed the employment income made possible by the care or apparatus. Both the amount of such expenses and the need for them, as a condition of employment, must be veri- fied before the Authority will allow them. Expenses pre-paid or reimbursed by outside agencies or individuals are ineligible. Where substantial expenses for apparatus are being paid off by time payments, only the portion paid off during the 12 month period for which rent is computed shall be allowed. 17 . Handicapped Person--A person having an impairment which (a) is expected to be of long continued and indefinite duration, (b) sub- stantially impedes his/her ability to live independently, and (c) is of such nature that such disability could be improved by more suitable housing conditions. (24 CFR 913.102) . 18. Head of Household--The person who assumes responsibility for the household. Authority policy dictates that a head of household must be at least 18 years of age to execute a lease agreement. -51- PHA _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 _ XI . Definition of Terms Used in this Statement of Policies (cont'd) 19. InvoluntarilY Displaced--An applicant qualifies for this Federal Preference if: a. The applicant has been involuntarily displaced and is not living in standard, permanent replacement housing, OR b. The applicant will be involuntarily displaced within no more than six months from the date of any verification received by the Authority. For the involuntary displacement to qualify the applicant for the Federal Preference, it must fall into one or more of the following categories of action: ° A disaster, such as fire or flood, that results in the uninhabitability of the unit; ° Activity carried on by an agency or unit of government (Federal of Local ) connected with code enforcement, public improvement programs, or public development programs; * Action taken by a housing owner that results in an applicant having to vacate his/her unit,. provided that: c. The reason for the owner' s action is beyond an applicant' s ability to control or prevent. d. The action occurs despite the applicant having met all previously imposed conditions of occupancy (thus, eviction for non-payment of rent or other lease violations disqual- ifies an applicant for this category of displacement); AND e. The action taken is other than a rent increase. f. Eligible actions a housing owner might take that could qualify an applicant as involuntarily displaced include, but are not limited to: ° Conversion of the unit to non-rental or non-residential use; ° Closing of the unit for rehabilitation or any other reason; j -52- PHA. JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 _ XI . Definition of Terms Used in this Statement of Policies (cont'd) ° Notice to an applicant that he/she must vacate the unit for the owner' s personal or family use or occupancy; Sale of the unit in which the applicant resides under an agreement to vacate when possession is transferred; Any other legal act that results or will result in the withdrawal of the unit by the owner from the rental market. The reasons listed above do not include vacating the unit by the tenant as a result of actions taken because the tenant refused to: Comply with applicable program policies or procedures under this title (the 1937 Housing Act) with respect to the occupancy of underoccupied and overcrowded units ° Accept a transfer to another housing unit in accordance with a court decree or in accordance with the policies and procedures of a HUD-approved desegregation plan. g. An Applicant may also qualify as involuntarily displaced, if; ° The applicant has vacated his/her housing unit as the result of actual or threatened physical violence directed against the applicant or one or more member of the applicant' s household. ° The applicants lives in a unit with an individual who engages in such threats or violence. The actual or threatened violence must be verified in accordance with the Authority's requirements and be of a recent or continuing nature, for an applicant claiming these circumstances to qualify as involuntarily displaced. -53- jPHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 _ XI . Definition of Terms Used in this Statement of Policies (cont'd) 20. Live-In-Aide--A person who resides with an Elder! Handicapped or P y� PP Disabled Person or persons, and who: a. Is determined by the Authority to be essential to the care and well -being of the persons; ib. is not obligated to support .the family member for whom care is being provided; and c. would not be living in the unit except to provide the necessary supportive services. (7465.1 REV-2 Par. 3-3 and 24 CFR 913. 102) Housing Authority policy on Live-in Aides stipulates that: ° Before a Live-In Aide may be moved into a unit, a third-party.written verification must be supplied which establishes the need for care; 1 ° Move-in of a Live-In Aide must not result in over-crowding; . ° The family of a Live-In Aide will not be permit ted to move into the unit; ° Live-In Aides have no right to the unit as the remaining member of a tenant family, and ° Relatives who satisfy the definitions and stipula- tions may qualify as live-in aides. However, they must sign a statement relinquishing all rights to the unit as a remaining member. of a tenant family. 21. Lower Income Family--A family whose Annual Income does not exceed 80% of the median income for the area as determined by HUD with adjustments for smaller and larger families. (24 CFR 913.102) 22. Medical Expense Allowance--For purposes of adjusted income determination; for elderly families only, medical expenses mean the medical expenses in excess of 3% of Annual Income, where these expenses are not compensated for or covered by insurance. (24 CFR 913.102) 23. Minor--A minor is a person less than 18 years of age. An unborn chilif will not be considered a minor. 24. Net Family Assets--The net cash value, after deducting reasonable costs that would be incurred in disposing of; ° Real property ( land, houses, mobile homes) ° Savings (CDS, IRA or KEOUGH accounts, checking and savings accounts, precious metals) -54- PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ — _ _ _ —. 9.0 _ XI . Definition of Terms Used in this Statement of Policies (cont'd) ° Cash value of life insurance policies Stocks and bonds (mutual fund, corporate bonds, savings. bonds) ° Other forms of capital investments (business equipment) Net cash value is determined by subtracting the reasonable costs likely to be incurred in selling or disposing of an asset from- the market value of the asset. Examples of such costs are: Broker or legal fees, settlement costs for real property, penalties for withdrawing savings funds before maturity. Net Family Assets also includes the amount in excess of any consi- deration received or assets disposed of by an applicant or tenant for less than fair market value during the two years preceding the date of the initial application or re-examination. This does not apply to assets transferred as the result of a foreclosure or bank- ruptcy sale. In the case of a disposition as a part of a separation or divorce settlement, the dispostion will not be considered to be less than fair market value if the applicant or tenant receives important 1 considerations not measurable in dollar terms. (24 CFR 913.102) 25. Offer--It shall be considered that the Authority has made an offer of a unit to an applicant when the applicant is offered, via mail , a specific unit in a s ecific housing complex. 26. Paying more than 50% of Income for Rent--A family must be paying more than 50%of income for rent at the time of verification by the Authority to qualify for this Federal Preference. Family Income is Monthly Income or 1/12 of Annual Income. Rent is the actual amount due, calculated on a monthly basis, under a lease or occupancy agreement between a family and the family' s current landlord. Rent includes the monthly cost of shelter plus utilities when utilities are tenant-paid. For applicants who own a manufactured home, but rent the space upon which it is located, rent includes the monthly payment to amortize the purchase price of the home. For applicants who are members of a cooperative, rent means the charges under the occupancy agreement between the members and the cooperative. If the utilities are purchased directly by the tenant from the utility providers the applicable utility cost is determined in one of two ways: -55- PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 XI . Definition of Terms Used in this Statement of Policies (cont'd) ° The Authority' s reasonable estimate of tenant- purlicased utilities (except telephone) and the other housing services normally included in rent (e.g. trash collectin) OR If the Family Chooses, the average monthly payments that it actually made for these utilities and services for the most recent 12=month period; or if that informa- tion is not obtainable for the entire 12-month period, for an appropriate recent period. Amounts paid to or on behalf of the family under any energy assis- tance program must be subtracted from the rent amount to the extent that they are not included in income. The formula for establishing the 50% of income for rent preference can be expressed as follows: (A) RENT = MONTHLY RENT OR SHELTER 1 + MONTHLY UTILITY OR HOUSING SERVICES LESS ENERGY ASSISTANCE PAYMENTS NOT COUNTED IN INCOME (8) 50% OF FAMILY INCOME = ANNUAL INCOME DIVIDED BY 12 X 50% (C) IS (A) GREATER THAN (B)? YES NO If yes, the family qualifies; if no the family is not entitled to the preference. 27. Servicemen-- A person in the active military services of the United States, meaning only the Army, Navy, Air Force, Marine Corps, and Coast Guard. Such service does not include Merchant Marine, Red Cross, National Guard, Active Reserve Service, or. any other organization not actually part of the Military or Naval Service of the. United States. 28. Single Person--A person living alone or intending to live alone who does not qualify as an elderly family, displaced person, or the remaining member of a tenant family. (24 CFR 912.2) The Authority will not admit single persons without prior authoriza- tion by. HUD. Single persons who are a displaced family, or an elderly family as defined in this section, or the remaining member of a tenant family, may be housed without HUD approval . -66- PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 XI . Definition of Terms Used in this Statement of Policies (cont'd) 29. Spouse--Spouse means the husband or wife of the head of the household. 30. Standard, Permanent, Replacement Housing--Such housing is: ° Decent, safe and sanitary ° Adequate for the family size ° Occupied pursuant to a lease or occupancy agreement; and ° IS NOT a transient facility such as a motel , hotel , or temporary shelter for victims of domestic violence or homeless families. . (In the case of domestic violence, the housing unit which the applicant shared with the person who engaged in the violence is specifically excluded from this defihition. ) 31. Substandard Housing--A unit is substandard if it: ° Is dilapidated ° Does not have operable indoor plumbing ° Does not have a usable flush toilet inside the unit for the exclusive use of the family ° Does not have a usable bathtub or shower inside the unit for the exclusive use of the family ° 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; or Has been declared unfit for habitation by an agency or unit of government. A housing unit is delapidated if it: ° does not provide safe and adequate shelter, and in its present condition endangers the health, safety, or well-being of the family; or ° it has one or more critical defects, or a combination of intermediate defects in sufficient number and extent to require considerable repair or rebuilding. The defects may involve original construction, or they may result from continued neglect or lack of repair, or from serious damage to the structure. NOTE : Single Room Occupancy (SRO) is not considered substandard solely because it lacks sanitary or food preparation facilities (or both) . -57- PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 _ XI . Definition of Terms Used in this Statement of Policies (cont'd) Applicants who are homeless families are considered to be living in substandard housing. A homeless family is defined in the McKinney Homeless Assistance Act (PL 100-77. approved July 22, 1987) . The definition of a homeless family includes any individual or family who: Lacks a fixed, regular, and adequate nightime residence, and 0 . Has arimar ni htime residence that is: P y 9 A supervised publicly or privately operated shelter designed to provide temporary living accomodations (including welfare hotels, congregate shelters, and transitional housing for the mentally ill ); An institution that provides a temporary residence for individuals intended to be institutionalized; or A public or private place not designed for, or ordinarily used as a regular sleeping accomodation for human beings. Homeless family does NOT include any individual imprisoned by otherwise detained pursuant to an Act of Congress or State Law. 32. Tenant Rent--The amount payable monthly by the Family as rent to the Authority. Where all utilities (except telephone) and other essential housing services are supplied by the Authority, Tenant Rent equals Total Tenant Payment. Where some or all utilities (except telephone) and other essential housing services are not supplied by the Authority and the cost thereof is not included in the amount paid as rent, Tenant Rent equals Total Tenant Payment less the Utility Allowance. (24 CFR, 913.102) 33. Total Tenant Payment--The Total Tenant Payment is the total monthly amount paid by the tenant for shelter and utilities. .34. Utilities--Utilities means water, electricity, gas, other heating, refrigeration and cooking fuels, trash collection, and sewerage services. Telephone service is not included as a utility. (7465.1 REV-2 App. 3) 35. Utility Reimbursement--Funds that are reimbursed to a tenant if the utility allowance exceeds the Total Tenant Payment. (24 CFR 913.102) -58- PHA JULY-1988 _ _ _ _ _ _ _ PULICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ 9.0 _ XI . Definition of Terms Used in this Statement of Policies (cont'd) 36. Very Low Income Family--A family whose Annual Income does not exceed 50% of the median Annual Income for the area, with adjustments for smaller and larger families, as determined by the Secretary of Housing and Urban Development. (24 CFR, 913.102) 1 37. Veteran-- A person who has served in the active military or naval service of the United States, is no longer in the service, and was not dishonorably discharged. -59- PHA ' JULY 1928 _ _ _POLICY AND PROCEDURE 14ANUAL_ _ _ _ _ _ _ _ _ _ —14.0 ' POLICIES AND PROCEDURES OF THE HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA GOVERNING RECEIPT OF APPLICATIONS, ESTABLISHMENT OF A WAITING LIST AND ISSUANCE OF CERTIFICATES OF FAMILY PARTICIPATION AhD HOUSING VOUCHERS FOR THE SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAMS ' EXISTING HOUSING AND MODERATE REHABILITATION StCTION I. RECEIPT OF APPLICATIONS AND ESTABLISHMENT OF A WAITING LIST ' A. Public Notice to Lower-Income Families. The Housing Authority of the County of Contra Costa (herein called the "Authority") shall make known to the public, through publication in a newspaper of general circula- tion as well as through minority media and other suitable means, the availability and nature of housing assistance for lower-income families, including assistance with respect to units already occupied by the families if the units qualify as Existing Housing. The notice shall ' inform such families of the location at which they may apply for Certificates of Family Participation or a Housing Voucher. ' Publicity shall state that applicants on waiting lists for public housing units and occupants of such assisted housing must apply specifically for the Section 8 Housing Assistance Payments Programs. ' The notice shall also specify that such applicants will not lose their place on the public housing waiting list. ' B. Receipt of Applications. Applications are to be accepted from all families (1) apparently eligible for the issuance of Certificate or Voucher or (2) who are occupying units approved for Rental or Moderate Rehabilitation. This rule is to hold unless the Authority determines ' at any time that there is insufficient funding to admit all eligible applicants for participation. In such a case application taking will be temporarily suspended, except for applicants who are occupying units ' approved for Rental or Moderate Rehabilitation. The suspension of application taking will be publicly announced by publication of a notice in a newspaper of general circulation as well as through minority media and other suitable means. The announcement will specify the effective ' date of the suspension. Identical methods of announcement will be utilized prior to the resumption of application taking. ' Applications may be filed at any of the Authority' s management field offices, but information relating to family name, address, and composi- tion, appropriate bedroom size, preference category and time and date of application shall be forwarded to the Central Office, where the Authority' s county-wide waiting list shall be maintained and the allocation of Section 8 Certificates or Vouchers will be processed. C. Processing of Applications. The Application constitutes the basic record of each family applying for Section 8 Housing Assistance Pay- ments. Each Application shall reflect the date and time received. To ' -1- PHA JULY 1923 POLICY AND PROCEDURE MANUAL 14.0 1 assure that the data upon which determination of eligiblity, establish- ment of preferences, Total Tenant Payment and size of dwelling required are accurate and complete, the information submitted by each applicant will be verified before issuing a Certificate or Voucher. ' At the time the application is taken, Authority personnel will interview the applicant and complete the following checklists: ' ° Annual Income Checklist Asset Checklist ' ° Allowance Checklist ° Federal Preference Checklist ' The Application together with all other materials relating to the family' s eligibility, preference, rating, etc. , will be maintained in an active file for each eligible applicant. ' At the conclusion of the application interview, applicants will be provided with a letter advising them of the following factors relating ' to their application for housing: A preliminary determination of their eligiblity/non- eligibility for a Certificate or Voucher based solely on the information supplied at the interview and on the various checklists. 1 A preliminary determination of their qualification for a Federal Preference, based on responses to the Preferernce Checklist. The applicant' s signature on the checklist ' shall be considered a certification that all statements contained therein do represent, truthfully and completely, the family' s circumstances at that time. ' ° A reminder that all information relating to eligibility, income, allowances, Federal Preferences, and suitability will be verified before the family is issued a Certificate ' or Voucher. Before leaving the interview, applicants will be required to sign a release for information needed to determine final eligibility, Annual and Adjusted Income and qualifications for Federal Preferences. D. Centralized Application Waiting List. The application will be placed on a centralized, county-wide waiting list based on the size and type of Certificate or Voucher required, Federal and/or Local Preferences for tenant selection, and the time and date of application. 1 -2- PHA JULY 1988 POLICY AND PROCEDURE MANUAL 14.0 ' - - — - - - — — — — — — — - - - - - - - - - - - - - - — — — — — — — — — — — — — Applicants will then be notified of how long they may reasonably expect to be on the waiting list before receiving a Section 8 Certificate or Voucher. ' E. Verification Process. All information relative to income, eligibility and rent, net assets, and preference rating will be verified, documented, ' and recorded in the applicants file. Documentation obtained as part of the verification process may include: ' Checklists completed as part of the interview process, reports of inter- views, letters or telephone conversations with reliable sources. At. a minimum, such reports will indicate the date of the conversation, source of the information, name and job title of the individual contacted, and a written summary of the information received. Annual Income used to determine eligibility and adjusted income used to ' compute rent must be verified. Acceptable forms of verifications may include: ° Third Party ,written• ° Third Party oral with a record kept in the file; ° Copies or review of documents provided by the family; ° In the absence of any of. the above; affidavits Ifrom the family. ' Information verified shall remain valid for the following periods of time: Information not subject to change need only ' be verified once; ° Information subject to change shall be valid, beginning from the date of receipt at the Authority, for an initial period of 90 days. The valid term of this information may be extended an additional 30 days through a follow-up phone call . (Should the follow-up be performed, the file must be notated to indicate such an action was taken. ) -3- .1 PHA JULY 1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ _ _ — F. Notifying Families Currently on the Waiting List of the Federal Preference. ' a. The Authority shall notify all families already on the waiting list at the time of implementation of these policies that they may qualify for Federal Preferences and will request that families complete a Federal Preference questionaire, certify- ing to their qualifications, or lack thereof, for a Federal Preference. Such families will be requested to return the completed questionaire in a self-addressed, stamped envelope ' to the Authority, which the Authority shall provide for that purpose. Once all questionaires have been returned, and the responses processed, applicants shall be notified of any changes ' in their status on the wai t i n•. 1 i st. The P,uti ori ty is under no obligation to carry out this notification in a mass mailing effort, but may choose to carry out the notification on a piecemeal basis. Notification will be performed in order beginning with the earliest date of application on up to the present. b. The Authority will house applicants who do not qualify for any Federal Preference ahead of Federal Preference applicants provided the number of applicants so assisted does not exceed 10% of all families newly admitted to :the Authority' s housing ' in any one year period. Consequently, every 10th issuance of a Certificate or Voucher will be to an applicant on the waiting list who does not qualify for a Federal Preference. ' c. Except for the 10% allowable exemption from the Federal Preferences, no assistance will be offered to any applicants not in the "top priority" category until all applicants already on the waiting list ' at the time of implementation of this policy have been notified of the Federal Preferences, and given a chance to qualify. Likewise, no families applying after the policy' s implementation shall be assisted until all families already on the waiting list have been notified of the Federal Preferences and given a chance to qualify. G. Change in Preference Status While on the Waiting List. ' Occasionally, families on the waiting list who did not qualify for a Federal Preference will experience a change in circum- stances that qualifies them for a. Federal Preference. In such instances, it will be the family' s responsibility to contact the Authority, so that a certified statement of their qualif- ication for a Federal Preference may be obtained. Once the family' s certification has been obtained, their place on the waiting list will be re-determined, in accordance with the Federal and Local Preferences for which they qualify, and the time and date their application was originally filed. The family will then be informed in writing of how the change in status has affected their place on the waiting list. -4- PHA . JULY 1988 POLICY AND PROCEDURE MANUAL 14.0 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - = - - - - - - SECTION II . SELECTION OF FAMILIES FOR ISSUANCE OF CERTIFICATES OF ' FANCILY PARTICIPATION OR HOUSING VOUCHERS A. Governing Conditions. Each applicant family issued a Certificate shall be advised that it may select a unit in any locality within the operating jurisdiction of the Authority as listed below: Antioch Martinez Brentwood Moraga Clayton Pinole ' Concord Pleasant Hill El Cerrito San Pablo Lafayette San Ramon Walnut Creek Unincorporated County Areas Each applicant family issued a Voucher shall be advised that in addition to selecting a unit in any of the localities specified above; the family, if eligible, may use the portability feature of its Housing Voucher. ' As among eligible applicant families of the size and composition appropriate to the dwelling units authorized in the Annual Contribu- tions Contract, selection for the issuance of a Certificate of Family ' Participation or a Housing Voucher shall be made in accordance with the preferences set forth in Paragraph B of this Section, SUBJECT to the provisions of Paragraph A of Section III. Selection shall be made without regard to race, color, creed, religion, sex or national origin. B. Order of Preference. Preference shall be granted as follows: a. Federal Preference for selection shall be granted to applicant families whose verified circumstances at the time of being issued a Certificate or Voucher correspond to one of the following defintions: ° Involuntarily displaced Living in substandard Housing ° Paying more than 50% of family income for rent The Authority has chosen to assign each of the three Federal Preferences an equal weight. The three preferences will not be combined or aggre- gated in any manner. Applicants are considered on the basis of any of the Federal Preferences they can verify. -5- PHA JULY 1988 POLICY AND PROCEDURE MANUAL 14.0 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - rSection II . (cont' d) ' b. The Authorityrecognizes a reference for families of Veterans or 9 p Servicemen, as mandated by California State Law. ' c. A local preference will be granted to families participating in the Project Self-Sufficiency Program. ' The above preferences will result in the following order for issuing Certificates or Vouchers: ° Families with Federal Preference-Veteran Families with Federal Preference-Non-Veteran ° Families with no Federal Preference-Veteran ' ° Families with no Federal Preferences-Project Self- Sufficiency .° Families with no Federal Preferences-Non-Veteran C. Administration of Federal Preferences. a. The Authority requires that applicants certify their quali- fication for a Federal Preference at the time of application. ' Final verification at the time of admission will be done by the Authority prior to the issuance of a Certificate of Voucher. 1 b. At. the time of initial application, the Authority will use a Federal Preference checklist to determine whether families prospectively qualify for any of the Federal Preferences. Only the families who certify to having qualifications for a preference will be given that status on the waiting list. c. Families that do not qualify for a preference at the time of application will be notified in writing in accordance with paragraph F of this Section II. At the application interview they will be advised to notify the Authority of any change that may affect their ability to qualify for a preference. If other- wise eligible, the family's application will then be placed on the waiting list in a non-Federal Preference category. ' d. Applicants that certify to Federal Preference at the time of application but do not qualify for any Federal Preference at the time of selection for issuance of a Certificate or Voucher will lose the preference qualification and their respective standing on the waiting list. -6- ' PHA JULY 1988 POLICY AND PROCEDURE MANUAL 14.0 Section I1 . (cont' d) e. If an applicant has a Federal Preference for living in sub- PP 9 standard housing or involuntary displacement at the time of application and obtains standard, permanent replacement housing prior to the Authority' s verification at the time of selection for issuance of a Certificate or a Voucher, the applicant will be denied .the preference Likewise if an applicant is no longer paying more than 50% of income for rent at the time they are considered for selection that preference would also be lost. f. At the time of selection review--families that lose their original Federal Preference may still qualify for one of the other Federal Preferences and would not lose their position on the waiting list. g. At the time of selection review--Applications for families that cannot qualify for any of the Federal Preferences will be moved into a non-Federal Preference category, in a lower position on the waiting list based on any applicable State/ ' local preference, date and time of application. D. Qualifying for a Federal Preference. An applicant qualifies for a Federal Preference in accordance with the following: a. INVOLUNTARILY DISPLACED--The applicant has been involuntarily displaced and is not living in . standard, permanent replace- ment housing or within no more than six months from the date of any PHA verification the applicant will be involuntarily displaced. NOTE: An Applicant may not qualify for this preference if they were a tenant family and refused to comply with applicable program policies or procedures under the ' 1937 Housing Act with respect to the occupancy of underoccupied and overcrowded units; or failed to accept a transfer to another housing unit in accordance with a court decree or in accordance with the policies and procedures of a HUD-approved desegregation plan. b. LIVING IN SUBSTANDARD HOUSING--Applicants must be living in substandard housing at the time of any verification by the PHA. ' PHA JULY 1988 POLICY AND PROCEDURE MANUAL 14.0 Section II . (cont' d) c. PAYING MuRE THAN 50% OF INCOME FOR RENT--A family must be paying more than 50% of income for rent at the time of any verification by the PHA. NOTE : An applicant may not qualify for this preference if he/she is paying more than 50% of income for rent because the applicant' s assistance under the United States Housing Act of 1937 or Section 101 of the Housing and Urban Development Act of 1965 has been terminated as a result of the applicant' s failure to comply with program policies and procedures with respect to occupancy of underoccupied and overcrowded units. d. The definitions for the Federal Preferences may be found in Section VIII of this policy. E. Required Verifications for the Federal Preferences. Applicants will qualify for the Federal Preferences to the extent that their status is verified in accordance with the following requirements: a. Involuntary Displacement (1) NATURAL DISASTER: For applicants claiming displacement resulting from a disaster, such as fire or flood, the Authority will require a third-party written verifica- tion from a unit or agency of government certifying that the applicant has been displaced or will be displaced within the next six months, as a result of a disaster. (2) GOVERNMENTAL ACTION: For applicants claiming displacement resulting from code enforcement or a public improvement or development program carried on by a governmental body or agency, the Authority will require a third-party verifica- tion from the appropriate unit or agency of government ' certifying that the applicant has been moved or will be moving in the next six months, as a result of code enforce- ment or a public improvement or development program. (3) LANDLORD' S ACTION: For applicants claiming displacement resulting from a landlord' s actions, the Authority will require a third-party written verification from the land- lord or the landlord' s agent, certifying that the appli- cant has been displaced or will be displaced within the next six months as a result of the landlord' s action. -S- PHA JULY 1988 - POLICY AND PROCEDURE MANUAL 14.0 — - - - - - -- - - - - — — - - - - - - - - - - - - - - - - - - - - - - - - - - - - ' Section II . (cont' d) For such a verification to be considered valid, it must ' indicate the reason for, or nature of the landlord' s action, and include a certification stating that: ' ° The reason for the action is beyond the applicant' s ability to control or prevent; The action has happened or will be happening despite the applicant having met a previously imposed condition of occupancy, and ' ° The action is other than a recent increase. (4) ABUSIVE SITUATION: For applicants claiming displacement ' pursuant to there being an abusive or threatening house- hold member, the Authority shall require: The applicant to supply the name of the abusive or threatening household member; and An acceptable third-party written verification from ' the court of competent jurisdiction, a clergyman, a physician, or a public or private facility that provides shelter or counselling to the victims of domestic violence. ' Such a verification will not be considered valid unless it: Supplies the name of the threatening or abusive house- hold member; ° Describes how the situation came to the verifier' s atten- tion; and ' ° Indicates. that the threats and/or violence are of a recent or continuing nature. b. Substandard Housing. (1) SUBSTANDARD UNIT: For applicants claiming to be residing ' in substandard housing, the Housing Authority will require a third-party written verification from a unit or agency of government, of the applicant' s landlord, indicating one or more of the deficiencies outlined in the Definitions Section of this policy. Where units or agencies of govern- ment or the applicant' s landlord are unable or unwilling to ' supply such verification, an Authority employee may verify that the applicant' s housing is substandard, after having first conducted an inspection of the applicant' s unit. -9- PHA JULY 198$ POLICY AND PROCEDURE MANUAL 14.0 Section II . (cont'd) (2) HOMELESS: For Applicants claiming to be homeless, the Authority will require: (a) The applicant' s statement that he/she lacks a fixed regular and adequate night-time residence; and (b) A third-party written verification from a public or private facility that provides .shelter for homeless individuals, or the local police department, or a social services agency. certifying the family' s homeless status in accordance with the definition supplied in these policies. For individuals who are homeless by virtue of having a primary night- time residence for individuals intended to be institutionalized the Authority will attempt to ascertain whether such individuals have, in fact been prospectively placed in an institution, and ' if so, the date set for institutionalization. c. Paying more than 50% of Family Income for rent. (1) For applicants claiming to be paying more than 506 of family income for rent, the Authority will require the following verifications: ° Complete verification of everything involved in determining Annual Income, including Net Family Assets and Asset Income. ° Verification of rent due to the family' s landlord ' or cooperative under the lease or occupancy agreement by requiring the family to supply its most recent rental receipts, or a copy of the family' s current lease or occupancy agreement; or contacting the ' landlord or cooperative directly. ° Cost of amortizing the purchase price of a manufactured home will be verified by requiring the family to supply copies of its most recent payment receipts, which may include cancelled checks or money order receipts or a copy of the current purchase agreement; or contacting the lien holder directly. ° Tenant paid utilities will be verified by having ' the family supply the appropriate bills or receipts; or, obtaining the information directly from the utility or service supplier. -lO- PHA JULY 1988 POLICY AND PROCEDURE MANUAL 14.0 Section II . (cont'd) ' F. Notification Regarding Eligibility/Ineligibility for Federal Preference. Applicants will be informed of their verified status with one of the following letters: a. Applicants who qualify for one or more of the Federal Preferences will be sent the letter headed "You have ' been verified to qualify for the following Federal Preferences". ' b. Applicants who have been determined not to qualify for a Federal Preference will be sent the letter headed "You do not qualify for a Federal Preference because. . . " Such applicants will be given 10 days to set up an infor- mal meeting to discuss the rejection of their Federal Preferences and will be advised of their right to due ' process in a court of law if they feel the decision was based upon illegal discrimination. The informal meeting may be conducted by the Authority employee who denied the Federal Preferences and one other Authority employee. At the informal meeting, the Authority is under no obligation to justify or deny either its definitions ' of the Federal Preference categories, or its verification requirements relating to the Federal Preferences. The Authority need only justify its decision to award or deny the preferences. G. Families Determined to be Ineligible. If an applicant family is determined to be ineligible on the basis of income, family composition ' or for any other reason the application shall be notified promptly by letter of the determination and the reasons therefor. The applicant shall be informed in the letter of his/her right to an informal review, if requested within 10 days from the date of the letter, to make a reply or explanation as he/she may wish. If, after the hearing, the applicant is still determined to be ineligible, the applicant shall be ' notified in writing. The procedures of the above paragraph do not preclude the applicant from exercising his/her other rights if it believes it is being dis- criminated against on the basis of race, color, creed, religion, sex, or national origin. The PHA shall retain for three years a copy of the application, the notification letters, the applicant' s response if any, the record of any informal review, and a statement of final aisposition. -11- i PHA JULY 1988 POLICY AND PROCEDURE MANUAL 14.0 SECTION III . ISSUANCE OF CERTIFICATES OF FAMILY PARTICIPATION OR HOUSING VOUCHER ' A. Certificates will be issued only Very-Low Ver -Low Income Families .unless prior approval has been received by HUD. Housing Vouchers will be issued to families that (1) qualify as very- low income families or as lower-income families displaced 1/ by Rental Rehabilitation Program activity; or (2) have been continuously assisted under the U.S. Housing Act of 1937. B. The Authority shall maintain a system to assure that it will be able to r honor all outstanding Certificates of Family Participation or Housing Vouchers within its Annual Contributions Contract authorization and that it will comply, to the maximum extent feasible, with the unit distribution in the said Contract. C. Authority records on applicant and certified families shall be maintained so as to provide HUD with racial , gender, and ethnic data for families, in the Existing, Voucher, and the Moderate Rehabilitation Program. An on-going record shall be maintained of the number of leases approved ' for lower but not very low income families in the Existing, Voucher and Rehabilitation Programs. D. In the selection of applicants for assistance; the same waiting list for ' the Housing Voucher Program and the Certificate Program will be used. A family may not be penalized for refusing a Certificate if it desires to wait for a Housing Voucher or conversely for refusing a Housing Voucher to wait for a Certificate. If the family refuses the second form of assistance when it is offered, the family will be taken off ' the waiting list. The family may at any time reapply provided the Authority is accepting applications. 1/ A Lower-Income Family in a rental rehabilitation project that is forced to vacate a unit because of physical construction; housing overcrowding or a change in use of the unit; is considered displaced for purposes of deter- mining housing voucher eligibility. -12- PHA JULY 1988 POLICY AND PROCEDURE MANUAL 14.0 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - SECTION IV. OCCUPANCY STANDARDS ' The PHA shall enteron the Certificate or Voucher the smallest number of bedrooms which will avoid overcrowding and at the same time be consistant with the applicable Housing Quality Standards. Therefore, ' each Voucher or Certificate will identify at least one bedroom for each two persons. ' The PHA shall grant exceptions from the standards if the PHA determines the exceptions are justified by the relationship, age, sex, health or handicap of family members, or other individual circumstances. ' Certificates or Vouchers for a particular number of bedrooms shall be issued consistent with this Occupancy Standard and consistently for all families of like composition. 1 -13- 1 ' PHA JULY 1988 POLICY AND PROCEDURE MANUAL 14.0 SECTION V. SPECIAL PROVISIONS FOR FAMILIES RESIDING IN UNITS DESIGNATED FOR REHABILITATION. ( Including CIAP) 1. Applications will be accepted from all families residing in units designated for rehabilitation. These applications will be processed in the same manner as those accepted for the Existing Housing Program. Families residing in units to be rehabbed (including those who are temporarily relocated) shall not be placed on the waiting list nor shall they be ' subject to the provisions of Section II and Section III . A lower-income single person residing in a unit to be re-habbed may be determined eligible even if under age 62 and not disabled ' or handicapped. (Such a person would be eligible if displaced, and the occupant, if required to move, would be displaced and thus eligible for re-occupancy. ) ' 2. Families with lower (but not very-low) incomes will be approved for units in the Moderate Rehabililtation Program to prevent displacement of lower-income families residing in the property ' prior to rehabilitation. In the Moderate Rehabilitation Program, Owners are required to fill vacant units by selecting families from the waiting list for the Existing Housing Program. Therefore, applicants who are at the top of the waiting list and eligible for assistance may be referred .to Owners of available Moderately Rehabilitated Units. 3. In the case of lower income families living in rental a rehabilita- tion project, before rehabilitation: ' (1) A Certificate or Voucher shall be made available for families who are required to move out of their units because of the ' physical rehabilitation activities or because of overcrowding; and (2) A Certificate, shall be made available for families who have to ' pay more than 30 percent of their adjusted income for rent after rehabilitation whether they choose to remain in, or move from, the project.. ' 4. The Authority must issue a Housing Voucher to any eligible family forced by rental rehabilitation activities to vacate a unit because of physical construction, housing overcrowding or a change in use ' of the unit; or whose rent would exceed 50 percent of its adjusted income as a result of rental rehabilitation activities. -14- t '.. PHA JULY 1988 POLICY AND PROCEDURE MANUAL 14.0 1 Section V. (cont'd) If an applicant is occupying a unit that has been, or is being, re- ' habilitated under the Rental Rehabilitation Program, the applicant will be considered as paying more than 50% of its income for rent if the applicant has been notified that following completion of reha- bilitation its rent will be increased and the applicant in fact would be required no later than 60 days from the issuance of a Certificate under this part to pay more than 50 percent of its income to continue ' renting the rehabilitation unit. 5. Section 103(b) HCD Act 1987 exempts from percentage limitation dwelling units made available under Section 8 Housing Assistance Contracts for ' the purpose of preventing displacement or amelinating the effects of displacement causea by rents exceeding 30 percent of monthly adjusted income of Lower-Income Families from projects being rehabilitated under ' the Rental Rehabilitation Program. 6. After the grantee approves a rental rehabilitation project, the Authority shall issue any needed Housing Vouchers to families living in the project to be rehabilitated. The Vouchers shall be issued so as to give the families sufficient time to decide whether to move; and to give them time to locate other units where they are ' required to move or choose to move. 7. The PHA may offer a Housing Voucher to a family from its Section 8 Waiting List who agrees to initially move into a dwelling unit rehab- ilitated under the Rental Rehabilitation Program and specifically identified by the PHA at the time the Housing Voucher is offered. The Voucher must be issued approximately 60 days before estimated rehabilitation completion work. 8. In using Voucher for families from the waiting list, the PHA shall not ' exceed the number of Vouchers allocated in connection with rental rehabilitation in FY ' s 1984, 1985 and 1986. 1 t PHA JULY 1988 POLICY AND PROCEDURE MANUAL 14.0 1 SECTION VI . HOLDERS OF CERTIFICATES OF FAMILY PARTICIPATIUN/HOUSING VOUCHER ' A. Each holder of a Certificate of Family Participation issued by this PHA shall be responsible for finding an Existing Housing Unit suitable to the holder' s needs and desires in any area within the Authority' s ' operating jurisdiction. A holder of a Certificate may select the dwelling unit which the holder already occupies if the unit qualifies as Existing Housing. ' A Certificate Holder may select a unit with fewer bedrooms than shown on the Certificate if the unit meets the space requirements of the ' Housing Quality Standards. The Certificate Holder may select a unit with more bedrooms than shown on the Certificate if the gross rent does not exceed the FMR for the number of bedrooms shown on the Certificate. B. Each Voucher Holder shall be responsible for finding a unit suitable to their needs and desires in any area within the Authority' s operating ' jurisdiction or by using the portability feature of the Voucher. The Voucher Holder may select the dwelling unit which it already occupies if the unit meets the Housing Quality Standards. The Voucher Holder may select a unit with more or fewer bedrooms than shown on the Housing Voucher for their family size; however if the family selects a unit with fewer bedrooms, the unit must 1 meet the space requirements of the Housing .Quality Standard. The Voucher Holder may choose a unit with a rent higher or lower ' than the Applicable Payment Standard in effect at the time a lease is approved as long as the unit meets the Housing Quality Standards. A Voucher Holder who intends to use the portability feature of their Voucher and locate a dwelling unit outside the Authority' s operating jurisdiction must first live in the Initial PHA' s jurisdiction or be a current participant in the Initial PHA' s Housing Voucher Program. The Authority shall deny a request to move when the number of Families assisted under the portability feature of the Housing Voucher Program would constitute more then 15 percent of units under lease in the Initial PHA' s Housing Voucher Program. The PHA shall issue a Housing Voucher or a Certificate to a Family ' moving from the Housing Voucher Program of another Authority, after being notified to expect the family; or act in the capacity of the Receiving PHA and perform all functions normally associated with ' providing assistance. -16- PHA JULY 1988 POLICY AND PROCEDURE MANUAL 14.0 Section VI (cont'd) The Authority will promptly notify the Initial Authority if the Family has entered into an Assisted Lease or has failed to submit a Request for ' Lease Approval by the date specified by the Initial PHA; and at any time the Family ceases to be a current participant in the Initial PHA' s Housing Voucher Program. C. If a Certificate of Family Participation or Housing Voucher expires or is about to expire, a family may submit a request for an extension. The PHA will review with the family the efforts it has made to find a suitable dwelling unit and the problems it has encountered, and shall determine what advice or assistance might be helpful . If the ' Authority determines that there is a reasonable possibility that the family may, with additional advice or assistance, find a suitable unit, the Authority may grant one or more extensions, not to exceed a maximum total of 120 days. Extensions beyond 120 days are prohibited. Expira- tion of a Certificate or Voucher will not preclude the Family from filing a new application for another Certificate, if, at the time the Authority is accepting applications and the family continues to meet the eligi - bility criteria. D. Upon request, the Authority will provide assistance in finding units for those families who, because of age, handicap, or other reasons, are unable to locate approvable units. The Authority will also. provide assistance where the family alleges that discrimination is preventing it from finding a suitable unit. ' E. Subject to the availability of Annual Contributions Contract authorization and the eligibility of an assisted family for continued participation, the ' PHA .will : 1. Issue a new Certificate of Family Participation or a Housing ' Voucher to a qualified assisted family 1/ who wishes to find another dwelling unit either within the Authority' s jurisdic- tion or, in the case of a family using the portability feature of the Voucher Program, in the jurisdiction of another Authority. 2. Issue a new Certificate of Family Participation or a Housing Voucher to a family assisted under the Existing Housing Program, ' who is eligible for continued assistance and who is required to move through no fault of its own, such as increase or decrease in family size. 3. Without prior HUD approval issue a new Certificate or Voucher to an otherwise qualified lower-income family who wants to move or who is required to move with continued assistance. 1/ Qualified assisted family is a family who is or who has been a participant under the Section 8 Housing Assistance Payments Program and who has not ' been denied issuance of another Certificate or Voucher. ' PHA JULY 19138 _ _ _POLICY AND PROCEDURE MANUNL_ _ _ _ _ _ _ _ —14.0 Section VI . (cont'd) E. 4. Provide aid to a Family, residing in a moderately rehabilitated unit, which is forced to move through no fault. of its own, such as an increase or decrease in family size, prov.ided the Family is eligible to continue to receive housing assistance. Aid will be provided through one of the following means in the order stated: (a) Referral to the Owner of any appropriate vacant moderately rehabilitated unit, if such a vacancy exists. ' (b) Referral to the Owner of the next vacant unit which will receive Moderate Rehabilitation provided a vacancy will occur within a reasonable time after the Family is notified to vacate its present unit. (c) Issuance of a Certificate of Family Participation or a Housing Voucher (if available) for the Existing Housing Program with assistance provided in locating a suitable replacement unit. :.,(d.) Offer of the next available suitable unit in the conventional Public Housing Program. 1 (e) Provide assistance in locating other suitable available housing in the locality (assisted or unassisted) within the Family' s ability to pay. 1 -18- PHA ' JULY-1988 _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ —14.0 SECTION VII. DETERMINATION OF TOTAL TENANT PAYMENT--INCOME, ALLOWANCES AND RENT COMPUTATIONS A. ANNUAL INCOME Annual income is the anticipated total income from all sources, including net income derived from assets, received by the Family Head and Spouse (even if temporarily absent) and by each additional family member. Annual income is anticipated income for the 12-month period following the effective date of initial determination or 1 re-examination of income, exclusive of income that is temporary, non-recurring, or sporadic as defined later in this section or is specifically excluded from income by other federal statute. 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 operation .of a business or profession including the withdrawal of cash or assets (for this purpose, expenditures for business expansion or amortization of capital indebtedness shall not be deducted to determine the net income from a business. A straight line depreciation of assets used 1 in the business or profession may be deducted. ) 3. Interest, dividends, and other net income of any kind from real or personal property (for this purpose, expenditures for amortization of capital idebtedness and an allowance for depreciation of capital assets shall not be deducted to determine the net income from real or personal property). Where the family has Net Family Assets in excess of $5,000, 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. Income will be imputed on assets in excess ! of $5,000 at a rate of 5.5% until HUD notifies the Authority to use a different percentage. 4. The full of periodic payments 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 payment for the delayed start of a periodic payment. NOTE : Where Social Security is making a reduction in monthly benefits to recoup amounts previously ' -19- PHA JULY 1988 _ _ _ _ _POLICY AND PROCEDURE WiANUAL_ _ _ _ _ _ _ _ —14.0 _ Section VII . (cont' d) over-paid to a family; Annual Income shall ' include the portion of the monthly payment remaining after the deduction for over-payment has been made. 5. Payments in lieu of earnings, such as unemployment and disability compensation, worker' s compensation, and severance pay. (See the paragraph in the next section concerning lump-sum additions to family assets. ) 6. All welfare assistance payments received by or on behalf of any family member. . NOTE: Where welfare is making a reduction in monthly ' benefits to recoup amounts previously over-paid to a family, Annual Income shall include the portion of the monthly payment remaining after the deduction for over-payment has been made. 7. Periodic and determinable allowances, such as alimony and child support payments, and regular cash contributions or gifts received from persons not residing in the dwelling unit. 8. All regular pay, special pay, and .allowances of a member of the Armed Forces. (See paragraph in the next section concerning exposure to hostile fire. ) 9. Any earned income tax credit to the extent it exceeds income tax liability. B. ITEMS EXCLUDED FROM ANNUAL INCOME ' Annual Income excludes the following amounts: 1. Income from the employment of children (including foster children) under the age of 18 years; 2. Payments received for the care of foster children; 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 settlements for personal property losses; (but see paragraph 5 in the previous section if payments are/will be periodic in nature) . -20- PHA JULY_1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ —14.0 _ _ _ Section VII . (cont'd) 4. Amounts received by the family that are specifically for, or in reimbursement of the cost of medical expense for any family member; ' 5. Income of live-in aide; 6. Amounts of educational scholarships paid directly to the student or to the educational institution, and amounts paid by the government to a veteran, for use in meeting the costs of tuition, fees, books, equipment, materials, supplies, transportation, and miscellaneous personal expenses of the student. Payment to a veteran not used for the above purpose that is available for subsistence is to be included in income; 7. The special pay to a family member serving in the Armed Forces who is exposed to hostile fire; ' 8. Amounts received under training . programs funded by HUD; and amounts received by a disabled person that are dis- regarded for a limited time for purposes of Supplemental Security Income and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS) : OR .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. ) to allow participation in a specific program (e.g. , Job Training Partnership Act); 9. Temporary, non-recurring, or sporadic income (including gifts; ) or 10. Amounts specifically excluded by any other Federal Statute from consideration as income for purposes of determining 1 eligibility or benefits under a category of assistance programs that includes assistance under the United States Housing Act of 1937. (A notice will be published by HUD in the Federal Register identifying the benefits that qual.ify for this exclusion. Updates will be published and distributed when necessary. ) The following is a list of benefits that qualify for the exclusion as of April 1, 1988. ° Relocation payments made under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4621-4638) . -21- r PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ —14.0 Section VII . (cont'd) 1 ° The value of the allotment provided to an eligible household for coupons under the Food Stamp Act of 1977. (7 U.S.C. 2011-2029) . ° Payments to volunteers under the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951-4993) . ° Payments received under the Alaska Native Claims Settlement Act (43 U.S.C. 5044g, 5058) . ° Income derived from certain submarginal land of the United States that is held in trust . for certain Indian tribes (25 U.S.C. 459e) . ° Payments or allowances made under the Department of Health and Human Services Low-Income Home Energy Assistance Program (42 U.S.C. 8621-8629) . r ° Payments received from the Job Training Partner- ship Act (29 U.S.C. 1552(b). ° Income derived from the disposition of funds of the Grand River Band of Ottawa Indians (Pub. L. 94-540, 90 State 2503-2504, and ° The frst $2,000.00 of per capita shares received from judgement funds awarded by the Indian Claims Commission or the Court of Claims (25 U.S.C. 1407- 1408) , or from funds held in trust for an Indian Tribe by the Secretary of Interior (25 U.S.C. 117) ; and Amounts of scholarships funded under Title IV of the Higher Education Act of 1965 that are used to cover :the cost of attendance at 'an educational institution. Examples of Title IV Programs are: Basic Educational Opportunity Grants (Pell Grants), Supplemental Opportunity Grants, State Student Incentive Grants, College Work Study, and Byrd Scholarships. See 6 above for the kinds of expenses that are excluded from Annual Income. ° Payments received fromro rams funded under. P 9 Title V of the Older Americans Act of 1965 (42 U.S.C. 3056 (f). Examples of programs under this Act are: Senior Community Services Employ- ment Program (SCSEP) Green Thumb, and the Senior Aide Programs. -22- I PHA JULY 1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _14.0 _ Section VII . (cont'd) ' C. ANNUALIZING INCOME The following computations will be used to annualize income: 1. Full-Time Employment. Multipy: ° hourly wages by 2,080 (for an 8-hour day) weekly wages by 52 (NOT by 4 weeks/month X 12 months) bi-weekly amounts by 26 ' ° Semi-monthly amounts by 24 ° Monthly amounts by 12. 2. Part-Time Employment. Multiply: ° Hourly wages times number of hours anticipated for the year ° Average weekly amounts times the number of weeks work is anticipated ° Other periodic amounts (monthly, etc. ) times the number of such periods that the family member expects to work 3. Use of an annual wage without additional calculations. For example, if a teacher is paid $15,000/year, use $15,000 whether the payment is made in 12 monthly installments, 9 installments, or some other payment I schedule. (This policy eliminates the need for interim adjustments in the summer months). D. ANTICIPATING ANNUAL INCOME If it is not feasible to anticipate a level of income over a 12-month period, the Authority may use the annualized income anticipated for a shorter period, subject to a redetermination at the end of the shorter period. E. ADJUSTED INCOME t Adjusted Income (the income upon which rent is based) means Annual Income less the following deductions and exemptions: For All Families 1. Child Care Expenses--A deduction of amounts anticipated to be paid by the family for the care of children under 13 years of -23- PHA JULY 1988 _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ —14.0 Section VII . (cont'd) age for the period for which Annual Income is computed, but only when such care is necessary to enable a family member to be gainfully employed or to further his/her education. Amounts deducted must be unreimbursed expenses and shall not exceed: ° The amount of income earned by the family membe r released to work; or ° An amount determined to be reasonable by the Authority when the expense is incurred to permit education or ' look for work. 2. An exemption of $480 for each member of the family residing in the household (other than the head, or spouse, live-in aide, or foster child) who is under eighteen years of age or who is eighteen years of age or older and disabled, handicapped, or a full -time student. 3. Handicapped Expenses--a deduction of unreimbursed amounts paid for attendant care or auxilary apparatus expenses for handicapped family members where such expenses are necessary to permit a family member(s), including the handicapped/disabled member, to be employed. In no event may the amount of the deduction exceed the employment income earned by the family ' member(s) freed to work. Equipment and auxiliary apparatus may include but are not limited to: wheelchairs, lifts, reading devices for the visually handicapped, and equipment added to cars and vans to permit their use by the handicapped or disabled family member. Where major expenses for handicapped apparatus are being paid for over time, only the portion of the total bill being paid off during the twelve months covered by the certification or re-examination shall be permitted. Allowable handicapped expenses for a year will be equal to: Total unreimbursed expenses anticipated for the coming twelve months minus 3% of Annual Income, but NEVER more than the employment income made possible by the care or apparatus. For Elderly Families Only: 1. Medical Expenses Deduction--A deduction of unreimbursed medical expenses, including insurance premiums, anticipated for the period for which Annual Income is computed. Medical expenses include but are not limited to: Services of physicians and other health care professionals, services of health care facilities, insurance premiums (including the cost -24- PHA jULY_1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ —14.0 _ _ _ Section VII . (cont'd) of Medicare) , prescription and non-prescription medicines, transportation to and from treatment, dental expenses, eye- glasses, hearing aide and batteries, attendant care (unrelated to employment of family members) , and payment accumulated medical bills. To be considered by the Authority for the purpose of determining a deduction from income the expenses claimed must be verifiable. NOTE : Need for alive-in aide must be verified by a third-party before the Authority will permit a family to move a live-in aide into the unit. NOTE: Whether an Elderly family is claiming only medical or handicapped expenses, or both of the deductions, 3% of Annual Income shall be deducted once., from the sum of verified unreimbursed handicapped and medical expenses anticipated for the coming year, in deter- mining the combined allowable amount. ' 5. Elderly Household Exemption--An exemption of $400 per Household. ' F. VERIFYING ANNUAL INCOME 1. Projections of Annual Income shall be based on the best available information, with due consideration to past year' s income, current income rate and effective date; and shall include estimates for each income recipient in the family group. 2. The income of irregular workers will be estimated on the basis of. the best information available, . with due consideration to earning ability and work history. 3. Overtime will be computed . in accordance with verification obtained from the employer in the absence of more reliable or accurate information. 4. Income is the most important factor in determining a family's eligibility and rent. The Authority has established methods of verifying income which include: a. Written third-party verification through an employer or public agency. Authority staff may update this verifica- tion by. phone provided a memorandum. to the file is prepared. 1 -25- PHA JULY-1988 _ _ _ _ _ _ _ POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ —14.0 Section V1I. (cont'd) b. Authority review of documentation provided by the family, such as: ° Benefit Checks ° Income tax .returns ° W-2 forms c. In the absence of any of the above, affidavits from the family describing the amount and type of income are acceptable documentation. t Note: The Authority will not copy checks issued by the U.S. Government. ' G. RENT COMPUTATION 1. All rents shall be computed using the following formula: Total Tenant Payment equals therg eater of: 30% of Monthly Adjusted Income iOR 10% of Monthly Income 2. Application of the 10% Rent Increase Limitation a. For tenants who were assisted prior to 8/1/82, and . who have been assisted continuously since that time; rents will be computed so as to ensure that rent ' increases in excess of 10% per year do not occur as a result of the cumulative effect of: ° The elimination of ceiling rents in effect at the Authority as of 7/31/82; ° The change in the rent formula mandated by the .1981 Housing and Community Development Amendments, in which a public housing tenant' s share of the rent increased from 25% of monthly adjusted income to 30% of ' monthly adjusted income. ° The changes in income, asset and allowance policies mandated by the 1983 Housing and Urban Rural Recovery Act, which went into effect on 10/1/84. i -26- PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ —14.0 Section VII. (cont'd) 1 b. For tenants who were assisted between 8/1/82 and 6/30/84, and who have been assisted continuously since their move-in; rents will be computed so 1 as to ensure that rent increases in excess of 10% per year do not occur as a result of the cumulative effect of: ° The changes in income, asset, and allowance policies mandated by the 1983 Housing and Urban 1 Rural Recovery Act, which went into effect on 10/1/84. Tenants in the categories (2a) and (2b) above shall have their ' rents tested for the effect of the 10% rent increase limita- tion any time their rents are computed, whether at an annual or interim re-examination, until a rent is computed for which 1 it was not necessary to apply the 10% cap. Once an uncapped rent is calculated for a tenant, the tenant loses the right to the rent increase limitation, and it shall no longer be necessary to subject future rent computations to the rent increase limitation test. (VOTE : THE AUTHORITY SHALL USE RENT WORKSHEETS TO ENSURE THAT RENTS ARE COMPUTED CORRECTLY. r i i . 1 1 -27- i ' PHA JULY-198.8 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ _ —14.0 _ SECTION VIII . DEFINTION OF TERMS USED IN THIS POLICY 1. Area of Operation--Housing units owned by the Housing Authority of the County of Contra Costa. 2. Assets--Assets means "cash" (including checking accounts) , stocks, ' bonds, savings, equity in real property, or the cash value of life insurance policies, not including the value of personal property such as furniture, automobiles and household effects. " IMPORTANT: See definition number 24 for a description of ' of Family Assets, used to compute Annual Income. 3. Authority--The Housing Authority of the County of Contra Costa. ' 4. Child Care Expenses--Costs incurred for the care of children under the age of 13, where such care enables a family member to work or further his/her education. Where such costs are incurred to permit ' employment, the amount permitted may not exceed the employment income made possible by the care. In any case, the cost of care must be reasonable given the hours and type of care provided, and the number and age of the children for whom care is provided. Third-party written verification must be received by the Authority before such expenses will be allowed. For such costs to be eligible, they must not be paid to any family member residing in the unit, must not be pre-paid or reimbursed by any outside agency or individual , and there must be no adult family member (18 or older, head or spouse) at home during the hours care is provided who would be capable of providing the care. 5. Co-head--An adult member of a family and co-signor to the lease ' who is not in a spousal relationship with the head. EXAMPLE. Two unrelated women, aged 75 and 73, share a unit. Rather than designating one the head and the other ' the spouse, both would be designated "co-head". ' 6. Dependent--A member of the household, other than head, spouse, sole member, foster child, or live-in aide, who is under 18 years of age, or 18 years of age or older and disabled, handicapped or a full-time student. ' 7. Disabled Person--A person who is under a disability as defined in Section 223 of the Social Security Act or in Section 102(5)(b) of ' the Developmental . Disabilities Services and Facilities Construction Amendments of 1970. ' a. Section 223 of the Social Security Act defines disability as: -28- PHA JULY 198 _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ _ —14.0 Section VIII . (cont'd) 1 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(1 )(1) of this title) , and unable by reason of such blind- ness to engage in substantial gainful activity requiring skills abilities comparable to those of any gainful activity in which he/she has ' previously engaged with some regularity and over a substantial period of time. b. Section 102(5)(b) of the Development Disabilities Services and Facilities Construction Amendments of 1970 defines disability as: Disability attributable to mental retardation, cerebral palsy, epilepsy, or another neurological condition of an individual found by the Secretary of Health, Education and Welfare to be closely related to mental retardation or to require treatment similar to that required for mentally retarded individuals, which disability originates before such individual attains age 18, which has continued indefinitely, and which constitutes a substantial handicap to such individual . 8. Displaced Family--A person or family involuntarily displaced as defined in this section. (See Involuntarily Displaced) 9. Divestiture Income--Income imputed on assets disposed of within the past two years for less than Fair Market Value, by an applicant or tenant. (See Net Family Assets) 10. Elderly Family--A family whose head, spouse, or sole member is at least sixty-two years of age, or handicapped or disabled. It may also include two unrelated persons sixty-two or older, handicapped or disabled, or one or more such persons living with a live-in aide or aides. ' 11. Elderly Person--A person who is at least 62' years of age. 12. Family--Two or more persons regularly living together, related by blood, marriage, adoption, guardianship or operation of law; or an Elderly Family, Displaced Person or remaining member of a tenant ' -29- 1 PHA ' JULY_1982 _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ _ _ — _ _ Section VIII . (cont 'd) family (as defined in this section) . Foster children and live-in aides may reside in a unit, provided prior written approval has been granted by the Housing Authority, but under no circumstances shall they have any rights to the unit as the remaining member of a tenant family. 13. Family of a Veteran or Serviceman--A family shall be considered as qualifying for this definition if: ' f a. The head is a veteran or serviceman; ' b. The family includes a veteran or serviceman related to the head (spouse, son or daughter of the head); ' c. The spouse, who has not re-married of a deceased veteran; d. The surviving relative of a deceased veteran who was a family member other than head at the time of death (i .e. mother of a ' soldier killed in Vietnam); e. The family of a veteran or serviceman, formerly head, who is ' now permanently absent due to hospitilization, separation, desertion, or divorce. Such a family shall qualify only if: The remaining spouse has not re-married, and there remains in the unit one or more persons for whom the former head is ' legally responsible. f. The family of a veteran or serviceman, now permanently hos- pitalized, who was a family member other than head at the time of hospitalization, and there remains in the family at least two persons related to the hospitalized individual . (i .e. ' Mother and sister of a hospitalized Vietnam Veteran) . 14. Full-Time Student--A person who is carrying a subject load which is considered full-time for day students under the standards and prac- tices of the educational institution attended. Educational insti- tution shall include, but not be limited to, college, university, secondary school , vocational school , or trade school . ' (24 CFR 913.102) . 15. Handicapped Expense Allowance--Costs incurred for apparatus or ' attendant care for handicapped/disabled family member(s) , which permit a family member (including the handicapped/disabled person) to work. Such. expenses may not exceed the employment income made possible by the care or apparatus. Both the amount of such .expenses 1 and the need for them, as a condition of employment, must be veri- fied before the Authority will allow them. Expenses pre-paid or reimbursed by outside agencies or individuals are ineligible. 1 -30- PHA JUL Y_1988 _ _ _ _ _ _ _ _PULICY AND PROCEDURE 14ANUAL_ _ _ _ _ _ _ _ _ _ —14.0 Section VIII . (cont'd) 1 Where substantial expenses for apparatus are being paid off by time payments, only the portion paid off during the 12 month period for which rent is computed shall be allowed. ' 16. Handicapped Person--A person having an impairment which (a) is expected to be of long continued and indefinite duration, (b) sub- stantially impedes his/her ability to live independently, and (c) ' is of such nature that such disability could be improved by more suitable housing conditions. (24 CFR 913.102) . ' 17. Head of Household--The person who assumes responsibility for the household. Authority policy dictates that a head of household must be at least 18 years of age to execute a lease agreement. 18. Involuntarily Displaced--An applicant qualifies for this Federal Preference if: ' a. The applicant has been involuntarily displaced and is not living in standard, permanent replacement housing, OR b. The applicant will be involuntarily displaced within no more than six months from the date of any verification received by the Authority. ' For the involuntary displacement to qualify the applicant for the Federal Preference, it must .fall into one or more of the following categories of action: ° A disaster, such as fire or flood, that results in the uninhabitability of the unit; ' ° Activity carried on by an agency or unit of government (Federal of Local) connected with code enforcement, public improvement programs, ' or public development programs; *. Action taken by a housing owner that results in an applicant ' having to vacate his/her unit, provided that: c. The reason for the owner' s action is beyond an applicant' s ' ability to control or prevent. d. The action occurs despite the applicant having met all previously imposed conditions of occupancy (thus, eviction ' for non-payment of rent or other lease violations disqual- ifies an applicant for this category of displacement); AND -31- i PHA JULY-198.8 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ _ —14.0 Section VIII . (cont'd) ' e. The action taken is other than a rent increase. f. Eligible actions a housing. owner might take that could qualify an applicant as involuntarily displaced include, but are not limited to: ° Conversion of the unit to non-rental or non-residential use; ° Closing of the unit for rehabilitation or any other reason; ' ° Notice to an applicant that he/she must vacate the unit for the owner' s personal or family use or occupancy; ° Sale of the unit in which the applicant resides under an agreement to vacate when possession is transferred; Any other legal act that results or will result in the ' withdrawal of the unit by the owner from the rental market. The reasons listed above do not include vacating the unit by the tenant as a result of actions taken because the tenant refused to: ° Comply with applicable program policies or procedures ' under this title (the 1937 Housing Act) with respect to the occupancy of underoccupied and overcrowded units ' ° Accept a transfer to another housing unit in accordance with a court decree or in accordance with the policies and procedures of. a. HUD-approved desegregation plan. ' 9• An Applicant may also qualify as involuntarily displaced, if; ' ° The applicant has vacated his/her housing unit as the result of actual or threatened physical violence directed against the applicant or one or more member iof the applicant' s household. The applicants lives in a unit with an individual who ' engages in such threats or violence. The actual or threatened violence must be .verified in accordance with the Authority's requirements and be of a recent or continuing nature, for an applicant claiming these circumstances to qualify as involuntarily displaced. ' -32- PHA ' JULY-198.8 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ _ —14.0 Section V1II . (cont'd) ' 19. Live-In-Aide--Ay erson who resides with an Elderly, Handica ed or P � PP Disabled Person or persons, and who: . (a) Is determined by the Authority to be essential to the care and well-being of the persons; (b) is not obligated to support the family member for whom care is being provided; and (c) would not be living in the unit except to provide the necessary supportive services. Housing Authority policy on Live-in Aides stipulates that: ' ° Before a Live-In Aide may be moved into a unit, a third-party written .verification must be supplied which establishes the need for care; ° Move-in of a Live-In Aide must not result in . over-crowding; The family of a Live-In Aide will not be permit ted to move into the unit; Live-In Aides have no right to the unit as the remaining member of a tenant family, and 1 ° Relatives who satisfy the definitions and stipula- tions may qualify as live-in aides. However, they must sign a statement relinquishing all rights to the unit as a remaining member of a tenant family. 20. Lower Income Family--A family whose Annual Income does not exceed ' 80% of the median income for the area as determined by HUD with adjustments for smaller and larger families. 21. Medical Expense Allowance--For purposes of adjusted income determination, for elderly families only,. medical expenses mean the medical expenses in excess of 3% of Annual Income, where these expenses are not compensated for or covered by insurance. 22. Minor--A minor is a person less than 18 years of age. An unborn child will not be considered a minor. 23. Net Family Assets--The net cash value, after deducting reasonable costs that would be incurred in disposing of; ' ° Real property (land, houses, mobile homes) Savings. (CDS, IRA or KEOUGH accounts, checking and savings accounts, precious metals) r -33- PHA ' JuLY_1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ _ —14.0 Section VIII . .(cont'd) ° Cash value of life insurance policies 1 Stocks and bonds (mutual fund, corporate bonds,savings bonds) ° Other forms of capital investments (business equipment) Net cash value is determined by subtracting the reasonable costs likely to be incurred in selling or disposing of an asset from the market value of the asset. Examples of such costs are: Broker or legal I fees, settlement costs for real property, penalties for withdrawing savings funds before maturity. Net Family Assets also includes the amount in excess of any consi- deration received or assets disposed of by an applicant or tenant for less than fair market value during the two years preceding the date of the initial application or re-examination. This does not apply to assets transferred as the result of a foreclosure or bank- ruptcy sale. In the case of a disposition as a part of a separation or divorce settlement, the dispostion will not be considered .to be less than fair market value if the applicant or tenant receives important ' considerations not measurable in dollar terms. (24 CFR 913.102) 24. Paying more than 50% of Income for Rent--A family must be paying more than 50% of income for rent at the time of verification by the Authority to qualify for this Federal Preference. Family Income is Monthly Income or 1/12 of Annual Income. Rent is the actual amount due, calculated on a monthly basis, under a lease ' or occupancy agreement between a family and the family's current landlord. Rent includes the monthly cost of shelter plus utilities when utilities are tenant-paid. For applicants who own a manufactured home, but rent the space upon which it is located, rent includes the monthly payment to amortize the purchase price of the home. For applicants who are members of a cooperative, rent means the charges under the occupancy agreement between the members and the ' cooperative. If the utilities are purchased directly by the tenant from the utility providers the applicable utility cost is determined in one of two ways: -34- I PHA ' JULY-198.8 _ _ _ _ _ _ _ _POLICY AND PROCEDURE IIANUAL_ _ _ _ _ _ _ _ _ _ —14.0 Section VIII . (cont'd) The Authority' s reasonable estimate of tenant- punccased utilities (except telephone) and the other housing services normally included in rent (e.g. trash collectin) OR ° If the Family Chooses, the average monthly payments that it actually made for these utilities and services for the most recent 12-month period; or if that informa- tion is not obtainable for 'the entire 12-month period, for an appropriate recent period. Amounts paid to or on behalf of the family under any energy assis- tance program must be subtracted from the rent amount to the extent that they are not included in income. r The formula for establishing the 50% of income for rent preference can be expressed as follows: (A) RENT = MONTHLY RENT OR SHELTER + MONTHLY UTILITY OR HOUSING SERVICES LESS ENERGY ASSISTANCE PAYMENTS NOT COUNTED IN INCOME (B) 50% OF FAMILY INCOME = ANNUAL INCOME DIVIDED BY 12 X 50% r (C) IS (A) GRATER THAN (B)? YES NO If yes, the family qualifies; if no the family is not entitled to the preference. 25. Servicemen-- A person in the active military services of the United States, meaning only the Army, Navy, Air Force, Marine Corps, and Coast Guard. Such service does not include Merchant Marine, Red Cross, National Guard, Active Reserve Service, or any other organization not actually part of the Military or Naval Service of the United States. 26. Single Person--A person living alone or intending to live alone who does not qualify as an elderly family, displaced person, or the remaining member of a tenant family. (24 CFR 912.2) The Authority will not admit single persons without prior authoriza- tion by HUD. Single persons who are a displaced family, or an elderly family as defined in this section, or the remaining member of a tenant family, may be housed without HUD approval . -35- PHA JULY_1988 _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ _ _ — _ _ Section VIII . (cont'd) 27. Spouse--Spouse means the husband or wife of the head of the household. 28. Standard, Permanent, Replacement Housing--Such housing is: * Decent, safe and sanitary * Adequate for the family size * Occupied pursuant to a lease or occupancy agreement; and * IS NOT a transient facility such as a motel , hotel , or temporary shelter for victims of domestic violence or homeless families. (In the case of domestic violence, the housing unit which the applicant shared with the person who engaged in the violence is specifically excluded from this definition. ) 29. Substandard Housing--A unit is substandard if it: * Is dilapidated * Does not have operable indoor plumbing * Does not have a usable flush toilet inside the unit for the exclusive use of the family * Does not have a usable bathtub or shower inside the unit for the exclusive use of the family * 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; or * Has been declared unfit for habitation by an agency or unit of government. A housing unit is delapidated if it. -- does not provide safe and adequate shelter, and in its present condition endangers the health, safety, or well-being of the family; or -- it has one or more critical defects, or a combination of intermediate defects in sufficient number and extent to require considerable repair or rebuilding. The defects may involve original construction, or they may result from continued neglect or lack of repair, or from serious damage to the structure. NOTE: Single Room Occupancy (SRO) is not considered substandard solely because it lacks sanitary or food preparation facilities (or both) . -36- PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ _ —14.0 _ Section VIII . (cont'd) Applicants who are homeless families are considered to be living in substandard housing. A homeless family is defined in the McKinney Homeless Assistance Act (PL 100-77. approved July 22, 1987) . The definition of a homeless family includes any individual or family who: ° Lacks a fixed, regular, and adequate nightime residence, and ' ° Has a primary nightime residence that is: A supervised publicly or privately operated shelter designed to provide temporary living accomodations (including welfare hotels, congregate shelters, and transitional housing for the mentally ill ); An institution that provides a temporary residence for individuals intended to be institutionalized; or A public or private place not designed for, or ordinarily used as a regular sleeping accomodation for human beings. Homeless family does NOT include any individual imprisoned ' by otherwise detained pursuant to an Act of Congress or State Law. 30. Tenant Rent--The amount payable monthly by the Family as rent to the Authority. Where all utilities (except telephone) and other essential housing services are supplied by the Authority, ' Tenant Rent equals Total Tenant Payment. Where some or all utilities (except telephone) and other essential housing services are not supplied by the Authority and the cost thereof is not included in the amount paid as rent, Tenant ' Rent equals Total Tenant Payment less the Utility Allowance. (24 CFR, 913.102) 31. Total Tenant Payment--The Total Tenant Payment is the total monthly amount paid by the tenant for shelter and utilities. 32. Utilities--Utilities means water, electricity, gas, other heating, refrigeration and cooking fuels, trash collection, and sewerage services. Telephone service is not included as a utility. (7465.1 REV-2 App.3) 33. Utility Reimbursement--Funds that are reimbursed to a tenant if the utility allowance exceeds the Total Tenant Payment. ' (24 CFR 913.102) ' -37- 1 PHA JULY-1988 _ _ _ _ _ _ _ _POLICY AND PROCEDURE MANUAL_ _ _ _ _ _ _ _ _ _ —14.0 Section VIII . (cont'd) 34. Very Low Income Family--A family whose Annual Income does not exceed 50% of the median Annual Income for the area, with adjustments for smaller and larger families, as determined by the Secretary .of Housing and. Urban Development. 35. Veteran-- A person who has served in the active military or naval service of the United States, is no longer in the service, and was not dishonorably discharged. i 1 1 1 1 , 1 1 1 1 1 -38-