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SR 04-11-2023 12A
Housing Authority Report City Council Meeting: April 11, 2023 Agenda Item: 12.A 1 of 9 To: Housing Authority From: Danielle Noble, Acting Director, Community Services Department, Housing and Human Services Subject: Adoption of Santa Monica Housing Authority Draft Fiscal Year 2023-24 Annual and Administrative Plans Recommended Action Staff recommends that following the close of the public hearing the Housing Authority Board: 1. Adopt the FY 2023-24 Santa Monica Housing Authority Annual Plan, provided as Attachment A; 2. Adopt the FY 2023-24 Santa Monica Housing Authority Administrative Plan, provided as Attachment B; 3. Adopt the New Family Self-Sufficiency Action Plan (Formerly Chapter 18 of the Administrative Plan) as Attachment C; and 4. Authorize the Submission of the FY 2023-24 Annual and Administrative Plans to the United States Department of Housing and Urban Development. 5. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines. Summary The Santa Monica Housing Authority (SMHA) administers approximately 1,675 rental assistance vouchers to extremely low-, very low-, and low-income Santa Monica households amongst five federal housing programs: • Housing Choice Voucher (HCV); • Continuum of Care (CoC); • HOME Investment Partnerships Program (HOME); • Veterans Affairs Supportive Housing (VASH); and • Emergency Housing Voucher (EHV). 12.A Packet Pg. 1352 2 of 9 Each year, SMHA is required to submit an Annual Plan and progress report to the U.S. Department of Housing and Urban Development (HUD) to inform the agency, voucher participants, and members of the public of updates to the Authority’s mission, goals, and objectives. The SMHA’s mission mirrors that of HUD’s, which is to promote adequate and affordable housing, economic opportunity, and a suitable living environment free from discrimination. The SMHA operates in accordance with the rules and regulations detailed in its Administrative Plan, which is a combination of federally established regulations and local policies and procedures. This year, the SMHA is proposing two discretionary policy changes to the Administrative Plan (Attachments B and F) in response to input from Resident Advisory Board members, voucher participants, and the Legal Aid Foundation of Los Angeles. The proposed changes would enhance opportunities for utilizing vouchers in shared housing and clarify responsibilities and notification requirements regarding annual rent increases. In accordance with federal regulations and HUD guidance, the SMHA has prepared an updated Family Self-Sufficiency (FSS) Action Plan (Attachment C). The proposed FSS Action Plan is a stand-alone policy document based on HUD’s template FSS Action Plan (Attachment D). Therefore, the corresponding FSS content from the former Chapter 18 of the Administrative Plan has been transferred to the proposed FSS Action Plan, which incorporates updated policies to comply with the new federal regulations. Background Council, along with two tenant representatives, act as the Housing Authority Board for the SMHA. On October 13, 2020, the Housing Authority Board approved the SMHA’s current 5-Year Plan (Attachment E). On April 12, 2022, the Housing Authority Board approved the SMHA’s current Administrative Plan, which details the rules and regulations that govern SMHA’s operations. HUD issues mandatory updates to the Administrative Plan annually, and Housing Authorities like the SMHA can propose discretionary changes to the Administrative Plan. 12.A Packet Pg. 1353 3 of 9 Each year, the SMHA is required to submit an Annual Plan, updated progress on the 5- Year Plan, and any updates to the Administrative Plan to HUD. Each SMHA HUD- funded voucher program has its own set of requirements for performance reporting, and the Annual Plan represents progress updates regarding the HCV program. Specifically, the SMHA prepares and submits a Streamlined Annual Plan due to its “voucher only” designation. The designation is reserved for Housing Authorities that administer more than 550 HCVs, do not own or manage public housing, and was not designated as troubled in its most recent Section Eight Management Assessment Program (SEMAP) performance assessment. The deadline to submit the Fiscal Year (FY) 2023-24 Annual Plan is April 17, 2023. Discussion Recent changes brought on by the passage of the Economic Growth, Regulatory Relief, and Consumer Protection Act, which was codified via the federal ruling process, amended HUD's regulations to the FSS Program and required significant changes to Chapter 18 of the Administrative Plan. The FSS Program was designed to work in tandem with the SMHA’s rental assistance programs (such as HCV) to enable participating low-income families to increase earned income, achieve economic stability, and reduce or eliminate their need for welfare assistance and rental subsidies. To accommodate these changes, HUD encouraged the use of and provided Housing Authorities with a template for an FSS Action Plan to exist as a stand-alone policy document regarding program administration and tenant rights. For this reason, the SMHA is proposing the transfer of Chapter 18 of the Administrative Plan for FY 2023-24 into HUD’s template FSS Action Plan. The proposed FSS Action Plan encompasses all the federally required changes of FSS program administration, tenant’s rights under the program, and outlines the program in a user-friendly way. The proposed FY 2023-24 Annual Plan remains unchanged from the existing FY 2022- 23 Annual Plan and includes the following progress updates: • Three more City-funded affordable housing developments totaling 179 apartments (1834 14th St., 1413 Michigan Ave., and 1819 Pico Blvd.) are 12.A Packet Pg. 1354 4 of 9 anticipated for completion during 2023 which will also provide new opportunities for voucher holders. • 67 affordable apartments within otherwise market-rate buildings created pursuant to zoning policies (known as inclusionary housing) were completed during 2021 and 2022, and an additional 20 affordable inclusionary apartments are scheduled for completion in 2023. • During 2022, City staff was able to increase the HOME voucher program to assist 19 new households and achieved a high point of 52 households assisted; the HOME voucher program prioritizes residents who are at risk of losing their housing due to rent burden and other factors. • Beginning in October 2022 and continuing through 2023, approximately 191 voucher households are/will be receiving City-funded rental assistance, through the Rent Control Adjustment Relief program, to reduce the severe rent burden resulting from annual rent increases. • The SMHA achieved a historic voucher utilization highpoint during 2022 of 1,366 Housing Choice Vouchers (also known as Section 8). • Santa Monica’s eviction prevention efforts include an ordinance that requires landlords to report all eviction attempts and a Right to Counsel program that helps fund a local legal services office’s effort that every low-income family has an attorney in their eviction case. The City has also passed tenant protection laws and funded enforcement programs that protect key classes of persons such as tenants living with disabilities. Two proposed discretionary changes to the Administrative Plan, in response to input from Resident Advisory Board members and other stakeholders, are discussed below. Community Input The proposed streamlined and formulaic Annual Plan requires a 45-day public comment period and subsequent approval by the Housing Authority Board, even if there are no substantive changes since the previously approved Annual Plan. The SMHA welcomed input regarding the Annual Plan, Administrative Plan, and FSS Action Plan during the 12.A Packet Pg. 1355 5 of 9 public review period. All documents were available for review and public comment through March 20, 2023 and are provided as attachments to this report. On February 3, 2023, staff posted the start of the public review period on the Housing Office website. Notices were published in the Santa Monica Daily Press on February 4, and February 25, 2023. On February 6, 2023, staff directly notified, via direct mail and email correspondence, members of the Resident Advisory Board (RAB; all participants in the HCV program are RAB members) and all other voucher participants, of the opportunity to provide input on the SMHA Plans. Staff also invited all voucher participants to the Housing Commission meeting held on March 2, 2023, at 6:00 PM, to provide comments and input on the SMHA Plans. Input was received from 12 voucher participants and the Legal Aid Foundation of Los Angeles responding to the SMHA’s written outreach. Additionally, staff invited all voucher program participants to a workshop on March 13, 2023, during the afternoon, which served as another opportunity and an alternative to the evening Housing Commission meeting, to provide input during the public review period. The workshop offered information to voucher participants about the discretionary policies and the federally-mandated regulations contained in the Administrative Plan. A total of 26 people attended the workshop, among which five provided input. Housing Commission Input The Housing Commission considered the draft Annual/Administrative Plans at its March 2, 2023 meeting. Commissioners were not able to reach a consensus regarding advisory input to the Housing Authority Board. Two motions were made - one to recommend approval of the Plans, and another to recommend that the Housing Authority Board not approve the Plans until the RAB/CAB has an opportunity to meet, but neither motion passed. Only two members of the public attended the meeting, neither provided input, although two voucher participants submitted comments. RAB/Voucher Participant/General Public Input Overall, participation in the public comment period resulted in staff receiving feedback via email, mail, in-person, over the phone, through the Housing Commission meeting, 12.A Packet Pg. 1356 6 of 9 and at the Administrative Plan Workshop. Staff received several comments regarding the RAB’s implementation, representation, and structure. Although comments regarding the RAB do not relate to changes to the Administrative Plan, the comments are directly related to the Annual Plan process. Staff has developed recommendations regarding the RAB at the direction of the Housing Authority Board that address these comments which will be presented at the April 11, 2023, Council meeting under a separate agenda item. Staff is proposing two discretionary policy changes to the Administrative Plan based on input from RAB members and the Legal Aid Foundation of Los Angeles that would enhance opportunities for utilizing vouchers in shared housing and clarify responsibilities and notification requirements regarding annual rent increases. The changes can be found in the draft Administrative Plan and an excerpt of the proposed changes can be found in Attachment F. The first change is proposed in response to a comment from a RAB member about expanding voucher opportunities to shared housing. Shared housing would allow voucher holders to cohabitate and rent individual rooms in a household with non- voucher participants. Staff understands the difficulties of securing housing in the private market and agrees that shared housing offers greater choice to voucher holders. To accommodate the shared housing element, the draft Administrative Plan would be amended to allow for that option. The draft policy can be found in Chapter 15, Page 15- 1, of the draft Administrative Plan. The second change is proposed in response to comments from RAB members, voucher participants, and the Legal Aid Foundation of Los Angeles. The comments addressed the Santa Monica Housing Authority’s current rent increase policy, practices, and procedures. Staff agrees that the current annual rent increase policy should be revised to require landlords to affirmatively request rent increases at least 60-days in advance and notify tenants regarding rent increases, in addition to the SMHA’s existing practice of notification to tenants of rent increases. The draft policy can be found in Chapter 8, Page 8-20 and 8-21 of the draft Administrative Plan. 12.A Packet Pg. 1357 7 of 9 Staff also received input regarding creating two new programs and restarting a completed program, additional staffing, payment standards, customer service and delivery. Staff has summarized and responded to all comments in Attachment G. Staff received input about creating a homeownership program, applying for the Move to Work (MTW) program, and restarting the FSS program. MTW is a program for Housing Authorities (not voucher participants) that provides opportunities to design and test innovative, locally designed strategies to help residents find employment and become self-sufficient. The FSS program’s goal is for voucher participants to increase earned income, achieve economic stability, and reduce or eliminate their need for welfare assistance and rental subsidies. Housing Authorities must achieve a mandated number of graduates in the FSS program. The SMHA administered the FSS program for more than a decade, met and exceeded the federal mandate, and closed the program to new participants a few years ago due to insufficient resources from HUD and limited staff capacity within the SMHA and supportive service agencies to effectively administer the program. The SMHA does not currently have resources to create and administer a homeownership program, MTW program, or FSS program and is focused on completing its core responsibilities for Santa Monica residents according to HUD’s requirements. However, staff can explore the viability of pursuing these programs as the capacity of the Santa Monica Housing Authority and Housing Division expand. Staff received feedback about the need for new specialized staff positions of Landlord Liaison/Housing Navigator and Veteran Liaison, as well as the payment standard. The SMHA currently does not have the financial resources to hire the requested staff and such resources in whole or in part are provided through City-funded social service agencies and the Veterans Administration. The potential of increasing the payment standard amount is currently under review per previous direction from Council and will be determined following the completion of a financial feasibility analysis. 12.A Packet Pg. 1358 8 of 9 Staff also received a variety of input regarding customer service and delivery. Staff acknowledges the feedback involving improvements in transparency, accessibility, and communication strategies and will work to enhance customer service and delivery in those areas. A full list of comments received from RAB members, other voucher program participants, and the public about the draft SMHA Plans are along with staff responses. The actual written comments are attached verbatim in Attachment H. Environmental Review The draft SMHA Plans are categorically exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The plans is covered by the common sense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The proposed strategies allocate vouchers for housing and do not cause the construction of any new projects that could have a significant environmental effect. Therefore, it can be seen with certainty that the SMHA plans would not result in adverse physical impacts on the environment, and as such, is categorically exempt from CEQA. Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Prepared By: Patrick Komesu, Sr. Administrative Analyst Approved Forwarded to Council 12.A Packet Pg. 1359 9 of 9 Attachments: A. Draft Annual Plan FY 2023-24 B. Draft Administrative Plan FY2023-24 C. Draft FSS Action Plan D. HUD's Template FSS Action Plan E. 5-YearPlan FY 2020 F. Propose Changes to Administrative Plan G. Summary of Comments and Responses H. Actual Written Comments I. Written Comments 12.A Packet Pg. 1360 Streamlined Annual PHA Plan (HCV Only PHAs) U.S. Department of Housing and Urban Development Office of Public and Indian Housing OMB No. 2577-0226 Expires 03/31/2024 Page 1 of 5 form HUD-50075-HCV (03/2024) Purpose. The 5-Year and Annual PHA Plans provide a ready source for interested parties to locate basic PHA policies, rules, and requirements concerning the PHA’s operations, programs, and services, including changes to these policies, and informs HUD, families served by the PHA, and members of the public of the PHA’s mission, goals and objectives for serving the needs of low- income, very low- income, and extremely low- income families Applicability. The Form HUD-50075-HCV is to be completed annually by HCV-Only PHAs. PHAs that meet the definition of a Standard PHA, Troubled PHA, High Performer PHA, Small PHA, or Qualified PHA do not need to submit this form. Where applicable, separate Annual PHA Plan forms are available for each of these types of PHAs. Definitions. (1)High-Performer PHA – A PHA that owns or manages more than 550 combined public housing units and housing choice vouchers, and was designated as a high performer on both the most recent Public Housing Assessment System (PHAS) and Section Eight Management Assessment Program (SEMAP) assessments if administering both programs, or PHAS if only administering public housing. (2)Small PHA - A PHA that is not designated as PHAS or SEMAP troubled, that owns or manages less than 250 public housing units and any number of vouchers where the total combined units exceed 550. (3)Housing Choice Voucher (HCV) Only PHA - A PHA that administers more than 550 HCVs, was not designated as troubled in its most recent SEMAP assessment and does not own or manage public housing. (4)Standard PHA - A PHA that owns or manages 250 or more public housing units and any number of vouchers where the total combined units exceed 550, and that was designated as a standard performer in the most recent PHAS and SEMAP assessments. (5)Troubled PHA - A PHA that achieves an overall PHAS or SEMAP score of less than 60 percent. (6)Qualified PHA - A PHA with 550 or fewer public housing dwelling units and/or housing choice vouchers combined and is not PHAS or SEMAP troubled. A. PHA Information. A.1 PHA Name: Santa Monica Housing Authority_______________________________________________ PHA Code: CA 111_________ PHA Plan for Fiscal Year Beginning: (MM/YYYY): ___07/01/23___________ PHA Inventory (Based on Annual Contributions Contract (ACC) units at time of FY beginning, above) Number of Housing Choice Vouchers (HCVs) 1,521________ PHA Plan Submission Type: Annual Submission Revised Annual Submission Availability of Information. In addition to the items listed in this form, PHAs must have the elements listed below readily available to the public. A PHA must identify the specific location(s) where the proposed PHA Plan, PHA Plan Elements, and all information relevant to the public hearing and proposed PHA Plan are available for inspection by the public. Additionally, the PHA must provide information on how the public may reasonably obtain additional information of the PHA policies contained in the standard Annual Plan but excluded from their streamlined submissions. At a minimum, PHAs must post PHA Plans, including updates, at the main office or central office of the PHA. PHAs are strongly encouraged to post complete PHA Plans on their official website. PHA Consortia: (Check box if submitting a joint Plan and complete table below) Participating PHAs PHA Code Program(s) in the Consortia Program(s) not in the Consortia No. of Units in Each Program Lead HA: Attachment A 12.A.a Packet Pg. 1361 Attachment: Draft Annual Plan FY 2023-24 [Revision 3] (5601 : Housing Authority Annual Plan) Page 2 of 5 form HUD-50075-HCV (03/2024) B. Plan Elements. B.1 Revision of Existing PHA Plan Elements. a) Have the following PHA Plan elements been revised by the PHA since its last Annual Plan submission? Y N Statement of Housing Needs and Strategy for Addressing Housing Needs. Deconcentration and Other Policies that Govern Eligibility, Selection, and Admissions. Financial Resources. Rent Determination. Operation and Management. Informal Review and Hearing Procedures. Homeownership Programs. Self Sufficiency Programs and Treatment of Income Changes Resulting from Welfare Program Requirements. Substantial Deviation. Significant Amendment/Modification. (b) If the PHA answered yes for any element, describe the revisions for each element(s): B.2 New Activities. – Not Applicable B.3 Progress Report. Provide a description of the PHA’s progress in meeting its Mission and Goals described in its 5-Year PHA Plan. The progress report is attached. B.4 Capital Improvements. – Not Applicable B.5 Most Recent Fiscal Year Audit. (a)Were there any findings in the most recent FY Audit? Y N N/A (b)If yes, please describe: C. Other Document and/or Certification Requirements. C.1 Resident Advisory Board (RAB) Comments. (a) Did the RAB(s) have comments to the PHA Plan? Y N (b)If yes, comments must be submitted by the PHA as an attachment to the PHA Plan. PHAs must also include a narrative describin g their analysis of the RAB recommendations and the decisions made on these recommendations. C.2 Certification by State or Local Officials. Form HUD 50077-SL, Certification by State or Local Officials of PHA Plans Consistency with the Consolidated Plan , must be submitted by the PHA as an electronic attachment to the PHA Plan. C.3 Civil Rights Certification/ Certification Listing Policies and Programs that the PHA has Revised since Submission of its Last Annual Plan. Form HUD-50077-ST-HCV-HP, PHA Certifications of Compliance with PHA Plan, Civil Rights, and Related Laws and Regulations Including PHA Plan Elements that Have Changed, must be submitted by the PHA as an electronic attachment to the PHA Plan. 12.A.a Packet Pg. 1362 Attachment: Draft Annual Plan FY 2023-24 [Revision 3] (5601 : Housing Authority Annual Plan) Page 3 of 5 form HUD-50075-HCV (03/2024) C.4 Challenged Elements. If any element of the PHA Plan is challenged, a PHA must include such information as an attachment with a description of any challenges to Plan elements, the source of the challenge, and the PHA’s response to the public. (a)Did the public challenge any elements of the Plan? Y N If yes, include Challenged Elements. D. Affirmatively Furthering Fair Housing (AFFH). D.1 Affirmatively Furthering Fair Housing (AFFH). Provide a statement of the PHA’s strategies and actions to achieve fair housing goals outlined in an accepted Assessment of Fair Housing (AFH) consistent with 24 CFR § 5.154(d)(5). Use the chart provided below. (PHAs should add as many goals as necessary to overcome fair housing issues and contributing factors.) Until such time as the PHA is required to submit an AFH, the PHA is not obligated to complete this chart. The PHA will fulfill, nevertheless, the requirements at 24 CFR § 903.7(o) enacted prior to August 17, 2015. See Instructions for further detail on completing this item. Fair Housing Goal: Describe fair housing strategies and actions to achieve the goal (Per e-mail communication with the U.S. Department of Housing and Urban Development, as indicated in instruction above, PHAs are not required to fill out this section.) Fair Housing Goal: Describe fair housing strategies and actions to achieve the goal (Per e-mail communication with the U.S. Department of Housing and Urban Development, as indicated in instruction above, PHAs are not required to fill out this section.) Fair Housing Goal: Describe fair housing strategies and actions to achieve the goal (Per e-mail communication with the U.S. Department of Housing and Urban Development, as indicated in instruction above, PHAs are not required to fill out this section.) 12.A.a Packet Pg. 1363 Attachment: Draft Annual Plan FY 2023-24 [Revision 3] (5601 : Housing Authority Annual Plan) Page 4 of 5 form HUD-50075-HCV (03/2024) Instructions for Preparation of Form HUD-50075-HCV Annual PHA Plan for HCV-Only PHAs ___________________________________________________________________________ A. PHA Information. All PHAs must complete this section. (24 CFR §903.4) A.1 Include the full PHA Name, PHA Code, PHA Type, PHA Fiscal Year Beginning (MM/YYYY), Number of Housing Choice Vouchers (HCVs), PHA Plan Submission Type, and the Availability of Information, specific location(s) of all information relevant to the public hearing and proposed PHA Plan. PHA Consortia: Check box if submitting a Joint PHA Plan and complete the table. (24 CFR §943.128(a)) B. Plan Elements. All PHAs must complete this section. (24 CFR §903.11(c)(3)) B.1 Revision of Existing PHA Plan Elements. PHAs must: Identify specifically which plan elements listed below that have been revised by the PHA. To specify which elements have been revised, mark the “yes” box. If an element has not been revised, mark “no." Statement of Housing Needs and Strategy for Addressing Housing Needs. Provide a statement addressing the housing needs of low-income, very low-income and extremely low-income families and a brief description of the PHA’s strategy for addressing the housing needs of families who reside in the jurisdiction served by the PHA and other families who are on the Section 8 tenant-based assistance waiting lists. The statement must identify the housing needs of (i) families with incomes below 30 percent of area median income (extremely low-income); (ii) elderly families (iii) households with individuals with disabilities, and households of various races and ethnic groups residing in the jurisdiction or on the public housing and Section 8 tenant- based assistance waiting lists. The statement of housing needs shall be based on information provided by the applicable Consolidated Plan, information provided by HUD, and generally available data. The identification of housing needs must address issues of affordability, sup ply, quality, accessibility, size of units, and location. Once the PHA has submitted an Assessment of Fair Housing (AFH), which includes an assessment of disproportionate housing needs in accordance with 24 CFR 5.154(d)(2)(iv), information on households with individuals with disabilities and households of various races and ethnic groups residing in the jurisdiction or on the waiting lists no longer needs to be included in the Statement of Housing Needs and Strategy for Addressing Housing Needs. (24 CFR § 903.7(a)). The identification of housing needs must address issues of affordability, supply, quality, accessibility, size of units, and l ocation. (24 CFR §903.7(a)(2)(i)) Provide a description of the ways in which the PHA intends, to the maximum extent practicable, to address those housing needs in the upcoming year and the PHA’s reasons for choosing its strategy. (24 CFR §903.7(a)(2)(ii)) Deconcentration and Other Policies that Govern Eligibility, Selection, and Admissions. A statement of the PHA’s policies that govern resident or tenant eligibility, selection and admission including admission preferences for HCV. (24 CFR §903.7(b)) Financial Resources. A statement of financial resources, including a listing by general categories, of the PHA’s anticipated resources, such as PH A HCV funding and other anticipated Federal resources available to the PHA, as well as tenant rents and other income available to support tenant-based assistance. The statement also should include the non-Federal sources of funds supporting each Federal program, and state the planned use for the resources. (24 CFR §903.7(c)) Rent Determination. A statement of the policies of the PHA governing rental contributions of families receiving tenant-based assistance, discretionary minimum tenant rents, and payment standard policies. (24 CFR §903.7(d)) Operation and Management. A statement that includes a description of PHA management organization, and a listing of the programs administered by the PHA. (24 CFR §903.7(e)). Informal Review and Hearing Procedures. A description of the informal hearing and review procedures that the PHA makes available to its applicants. (24 CFR §903.7(f)) Homeownership Programs. A statement describing any homeownership programs (including project number and unit count) administered by the agency under section 8y of the 1937 Act, or for which the PHA has applied or will apply for approval. (24 CFR §903.7(k)) Self Sufficiency Programs and Treatment of Income Changes Resulting from Welfare Program Requirements. A description of any PHA programs relating to services and amenities coordinated, promoted, or provided by the PHA for assisted families, including those resulting from the PHA’s partnership with other entities, for the enhancement of the economic and social self-sufficiency of assisted families, including programs provided or offered as a result of the PHA’s partnerships with other entities, and activities subject to Section 3 of the Housing and Community Development Act of 1968 (24 CFR Part 135) and under requirements for the Family Self-Sufficiency Program and others. Include the program’s size (including required and actual size of the FSS program) and means of allocating assistance to households. (24 CFR §903.7(l)(i)) Describe how the PHA will comply with the requirements of section 12(c) and (d) of the 1937 Act that relate to treatment of income changes resulting from welfare program requirements. (24 CFR §903.7(l)(iii)). Substantial Deviation. PHA must provide its criteria for determining a “substantial deviation” to its 5-Year Plan. (24 CFR §903.7(r)(2)(i)) Significant Amendment/Modification. PHA must provide its criteria for determining a “Significant Amendment or Modification” to its 5-Year and Annual Plan. If any boxes are marked “yes”, describe the revision(s) to those element(s) in the space provided. 12.A.a Packet Pg. 1364 Attachment: Draft Annual Plan FY 2023-24 [Revision 3] (5601 : Housing Authority Annual Plan) Page 5 of 5 form HUD-50075-HCV (03/2024) B.2 New Activities. This section refers to new capital activities which is not applicable for HCV-Only PHAs. B.3 Progress Report. For all Annual Plans following submission of the first Annual Plan, a PHA must include a brief statement of the PHA’s progres s in meeting the mission and goals described in the 5-Year PHA Plan. (24 CFR §903.11(c)(3), 24 CFR §903.7(r)(1)) B.4 Capital Improvements. This section refers to PHAs that receive funding from the Capital Fund Program (CFP) which is not applicable for HCV-Only PHAs B.5 Most Recent Fiscal Year Audit. If the results of the most recent fiscal year audit for the PHA included any findings, mar k “yes” and describe those findings in the space provided. (24 CFR §903.7(p)) C. Other Document and/or Certification Requirements. C.1 Resident Advisory Board (RAB) comments. If the RAB had comments on the annual plan, mark “yes,” submit the comments as an attachment to the Plan and describe the analysis of the comments and the PHA’s decision made on these recommendations. (24 CFR §903.13(c), 24 CFR §903.19) C.2 Certification by State of Local Officials. Form HUD-50077-SL, Certification by State or Local Officials of PHA Plans Consistency with the Consolidated Plan, must be submitted by the PHA as an electronic attachment to the PHA Plan. (24 CFR §903.15). Note: A PHA may request to change its fiscal year to better coordinate its planning with planning done under the Consolidated Plan process by State or local officials as applicable. C.3 Civil Rights Certification/ Certification Listing Policies and Programs that the PHA has Revised since Submission of its Last Annual Plan. Provide a certification that the following plan elements have been revised, provided to the RAB for comment before imp lementation, approved by the PHA board, and made available for review and inspection by the public. This requirement is satisfied by completing and submitting form HUD-50077 ST-HCV-HP, PHA Certifications of Compliance with PHA Plan, Civil Rights, and Related Laws and Regulations Including PHA Plan Elements that Have Changed. Form HUD-50077-ST-HCV-HP, PHA Certifications of Compliance with PHA Plan, Civil Rights, and Related Laws and Regulations Including PHA Plan Elements that Have Changed must be submitted by the PHA as an electronic attachment to the PHA Plan. This includes all certifications relating to Civil Rights and related regulations. A PHA will be considered in compliance with the certification requirement to affirmatively further fair housin g if the PHA fulfills the requirements of §§ 903.7(o)(1) and 903.15(d) and: (i) examines its programs or proposed programs; (ii) ident ifies any fair housing issues and contributing factors within those programs, in accordance with 24 CFR 5.154; or 24 CFR 5.160(a)(3) as applicable (iii) specifies actions and strategies designed to address contributing factors, related fair housing issues, and goals in the applicable Assessment of Fair Housing consistent with 24 CFR 5.154 in a reasonable manner in view of the resources available; (iv) works with jurisdictions to implement any of the jurisdiction's initiatives to affirmatively further fair housing that require the PHA's involvement; (v) operates programs in a manner consistent with any applicable consolidated plan under 24 CFR part 91, and with any order or agreement, to comply with the authorities specified in paragraph (o)(1) of this s ection; (vi) complies with any contribution or consultation requirement with respect to any applicable AFH, in accordance with 24 CFR 5.150 through 5.180; (vii) maintains records reflecting these analyses, actions, and the results of these actions; and (viii) takes steps acceptable to HUD to remedy know n fair housing or civil rights violations. impediments to fair housing choice within those programs; addresses those impediments in a reasonable fashion in view of the resources available; works with the local jurisdiction to implement any of the jurisdiction’s initiatives to affirmatively further fair housing; and assures that the annual plan is consistent with any applicable Consolidated Plan for its jurisdiction. (24 CFR §903.7(o)). C.4 Challenged Elements. If any element of the Annual PHA Plan or 5-Year PHA Plan is challenged, a PHA must include such information as an attachment to the Annual PHA Plan or 5-Year PHA Plan with a description of any challenges to Plan elements, the source of the challenge, and the PHA’s response to the public. D. Affirmatively Furthering Fair Housing (AFFH). D.1 Affirmatively Furthering Fair Housing. The PHA will use the answer blocks in item D.1 to provide a statement of its strategies and actions to implement each fair housing goal outlined in its accepted Assessment of Fair Housing (AFH) consistent with 24 CFR § 5.1 54(d)(5) that states, in relevant part: “To implement goals and priorities in an AFH, strategies and actions shall be included in program participants' … PHA Plans (incl uding any plans incorporated therein) …. Strategies and actions must affirmatively further fair housing ….” Use the chart provided to specify each fair housing goal from the PHA’s AFH for which the PHA is the responsible program participant – whether the AFH was prepared solely by the PHA, jointly with one or more other PHAs, or in collaboration with a state or local jurisdiction – and specify the fair housing strategies and actions to be implemented by the PHA during the period covered by this PHA Plan. If there are more than three fair housing goals, add answer blocks as necessary. Until such time as the PHA is required to submit an AFH, the PHA will not have to complete section D., nevertheless, the PHA will address its obligation to affirmatively further fair housing in part by fulfilling the requirements at 24 CFR 903.7(o)(3) enacted prior to August 17, 2015, which means that it examines its own programs or proposed programs; identifies any impediments to fair housing choice within those programs; addresses those i mpediments in a reasonable fashion in view of the resources available; works with local jurisdictions to implement any of the jurisdiction’s initiatives to affirmatively further fair housing that require the PHA’s involvement; and maintain records reflecting these analyses and actions. Furthermore, under Section 5A(d)(15) of the U.S. Housing Act of 1937, as amended, a PHA must submit a civil rights certification with its Annual PHA Plan, which is described at 24 CFR 903.7(o)(1) except for qualified PHAs who submit the Form HUD-50077-CR as a standalone document. This information collection is authorized by Section 511 of the Quality Housing and Work Responsibility Act, which added a ne w section 5A to the U.S. Housing Act of 1937, as amended, which introduced the Annual PHA Plan. The Annual PHA Plan provides a ready source for interested parties to locate basic PHA policies, rules, and requirements concerning the PHA’s operations, programs, and services, and informs HUD, families served by the PHA, and members of the public for serving the needs of low- income, very low- income, and extremely low- income families. Public reporting burden for this information collection is estimated to average 6.02 hour per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. HUD may not collect this information, and respondents are not required to complete this form, unless it displays a currently valid OMB Control Number. Privacy Act Notice. The United States Department of Housing and Urban Development is authorized to solicit the information requested in this form by virtue of Title 12, U.S. Code, Section 1701 et seq., and regulations promulgated thereunder at Title 12, Code of Federal Regulations. Responses to the collection of information are required to obtain a benefit or to retain a benefit. The information requested does not lend itself to confidentiality 12.A.a Packet Pg. 1365 Attachment: Draft Annual Plan FY 2023-24 [Revision 3] (5601 : Housing Authority Annual Plan) Santa Monica Housing Authority (SMHA) 5-Year Plan Progress Report Below are the goals and objectives identified in the SMHA 5-year Plan. The 5-year Plan was approved by the Housing Authority Board on October 13, 2020. • Goal: Expand access to Permanent Supportive Housing (PSH) by attaching project-based vouchers to PSH apartments. Progress: One supportive housing development targeting persons experiencing homelessness has received its City housing trust fund financing commitment, State of California Tax Credit Allocation Committee funding commitment, and land use and design approvals, and is currently in construction with an anticipated completion in 2023. The SMHA has allocated 57 project-based vouchers to this development. Another development targeting young adults at risk of homelessness or experiencing housing insecurity is in the predevelopment stage, has received some funding commitments, and staff will be finalizing a housing trust fund commitment from the City in 2023. The SMHA intends to allocate approximately 13 project-based vouchers to this development. • Goal: Increase voucher applicant diversity by outreaching to the Santa Monica workforce with the goal of reaching employees who work 25 hours a week or more in Santa Monica. Progress: A significant amount of voucher applicants continues to be households in the Santa Monica workforce. The most recent data from 2021 indicates that almost ¾ of applicants pulled from the waitlist (444 out of 600) work 25 hours a week or more in Santa Monica. Additional tenant-based Housing Choice vouchers (also known as Section 8 vouchers) were not issued during 2022 due to limitations in the SMHA’s federally- allocated rental assistance budget. • Goal: Apply for mainstream vouchers, as they are available, to assist non-elderly persons living with disabilities. Progress: No updates to report. Note, that in 2021 the SMHA was allocated 104 Emergency Housing Vouchers by the federal department of Housing and Urban Development, which prioritizes people experiencing homelessness, many of whom are living with disabilities. • Goal: Continue to serve veterans and individuals experiencing homelessness by applying for Veterans Affairs Supportive Housing (VASH) and Continuum of Care vouchers, as they are available. Progress: SMHA has 35 VASH vouchers, 20 of which were awarded on 2/1/2020. Twenty of the vouchers are being utilized, and SMHA relies on the Veterans Administration to connect veterans to available vouchers. Additionally, the SMHA achieved a highpoint of 250 lease-up Continuum of Care vouchers during 2022. • Goal: Reduce barriers to housing by establishing a funding source to provide insurance to property owners who lease apartments to voucher holders with poor credit. Progress: No updates to report. 12.A.a Packet Pg. 1366 Attachment: Draft Annual Plan FY 2023-24 [Revision 3] (5601 : Housing Authority Annual Plan) • Goal: Explore options for outsourcing annual eligibility recertification work and shift staff focus to new admissions with the goal of fully utilizing the PHA’s budget authority and maintaining program quality. Progress: o SMHA contracted with Nan McKay (NMA) to conduct 500 annual recertifications, which were completed during 2021. This assisted the SMHA with handling an increased workload due to pandemic-related income loss affecting households and the associated interim reexaminations, which result in lowering tenants’ portion of rent. SMHA also expanded the contract with NMA to include eligibility determination for 300 waitlist applicants, which was completed in December 2021 and resulted in the issuance of more than 100 vouchers to new program participants. o SMHA achieved a historic voucher utilization highpoint during 2022 of 1,366 Housing Choice Vouchers. • Goal: Establish relationships with agencies that provide volunteer opportunities and employment services to assist participants who are unemployed or underemployed. Progress: No updates to report. • Goal: Expand opportunities to apply for housing by opening waitlists for the Housing Choice Voucher (HCV), Affordable Housing, and Preserving Our Diversity (POD) programs and keeping them open continuously. Progress: o On May 1, 2020, SMHA opened waitlists for the HCV program. As of this report the HCV waitlist has more than 26,000 applicants. o On May 1, 2020, the Below Market Housing (BMH) program waitlist opened. As of this report, the BMH waitlist has more than 10,500 applicants. o The city continues to conduct outreach for the POD program to increase awareness and enrollment. The POD program provides cash assistance to very low-income seniors in rent-controlled apartments to prevent displacement. As of this report, the POD program has 201participants receiving an average of $500 in monthly cash assistance. • Goal: Maintain housing of low-income households by using available resources to prevent homelessness and support well-being of participants. Progress: o During 2022, staff was able to increase the HOME voucher program to assist 19 new households and achieved a highpoint of 52 households assisted. the HOME voucher program prioritizes residents who are at risk of losing their housing due to rent burden and other factors. Beginning in October 2022 and continuing through 2023, approximately 191 voucher households are/will be receiving City rental assistance to reduce severe rent burden resulting from annual rent increases. o During 2021, the rehabilitation of a residential rental property containing 30 apartments and serving mostly low-income households, many of whom are in voucher programs, was also completed in 2021. 12.A.a Packet Pg. 1367 Attachment: Draft Annual Plan FY 2023-24 [Revision 3] (5601 : Housing Authority Annual Plan) • Goal: Coordinate with Human Services and service providers to prevent eviction and displacement. Progress: o Santa Monica’s eviction prevention efforts include an ordinance that requires landlords to report all eviction attempts and a Right to Counsel program that helps fund a local legal services office’s attempt to make sure that every low-income family has an attorney in their eviction case. The City has also passed tenant protection laws and funded enforcement programs that protect key protected classes such as tenants with disabilities. o As of July 2020, the city’s Housing and Human Services divisions have merged into one division for improved coordination and service delivery. SMHA staff are embedded into the city’s Housing and Human Services Division and work closely with other city departments (City Attorney’s office, Code Enforcement, Rent Control) to prevent eviction and displacement. o The City provides funding to the Legal Aid Foundation of Los Angeles, which has an office in Santa Monica and represents low-income Santa Monica residents who face possible eviction and displacement. o The City provides funding to various social service providers, such as Wise and Healthy Aging, St. Joseph Service Center, Step Up On Second, and The People Concern, who provide supportive services to low-income residents to assist in preventing eviction and displacement. • Goal: Conduct extensive marketing of the programs and provide education that reduces the stigma of needs-based programs. Progress: No updates to report. • Goal: Develop a client-focused customer service policy. Progress: No updates to report. • Goal: Increase community integration for persons with disabilities Progress: o On May 1, 2020 the BMH program waitlist opened, which seeks information regarding accommodations for applicants living with disabilities, and then matches applicants to affordable housing opportunities which can meet the applicant needs. o SMHA supports community integration of persons with disabilities by referring voucher households to the City Attorney’s Office’s Consumer Protection Unit (CPU), which provides the Santa Monica community with a three-prong approach to eliminating housing discrimination against persons with disabilities: 1) Investigating fair housing complaints; 2) Providing public education with workshops about housing rights and responsibilities, newspapers articles, webpages, and then information by phone or email; and 3) Advising the City Council whether new legal protections might be needed. Regarding the first prong, for those investigations that show fair housing violations, then the CPU’s deputy city attorneys help resolve those informally or through litigation. 12.A.a Packet Pg. 1368 Attachment: Draft Annual Plan FY 2023-24 [Revision 3] (5601 : Housing Authority Annual Plan) • Goal: Promote civic engagement of recipients Progress: SMHA directly contacts all voucher program recipients one or more times annually and encourages participation in revising and updating voucher administration policy, including opportunities for engaging with the Housing Commission and the City Council. • Goal: Reduce barriers to housing by increasing total supply of housing for voucher holders to potentially access. Progress: During 2021 and 2022, three City-funded affordable housing developments totaling 116 apartments were completed, which provided new opportunities for voucher holders. Additionally, three more City-funded affordable housing developments totaling 179 apartments are anticipated for completion during 2023 which will also provide new opportunities for voucher holders. Furthermore, 67 affordable apartments within otherwise market-rate buildings created pursuant to zoning policies (known as inclusionary housing) were completed during 2021 and 2022, and an additional 20 affordable inclusionary apartments are scheduled for completion in 2023. 12.A.a Packet Pg. 1369 Attachment: Draft Annual Plan FY 2023-24 [Revision 3] (5601 : Housing Authority Annual Plan) SANTA MONICA HOUSING AUTHORITY ADMINISTRATIVE PLAN FOR THE HOUSING CHOICE VOUCHER PROGRAM Approved by the HA Board of Commissioners: Submitted to HUD: Approved by HUD: Attachment B 12.A.b Packet Pg. 1370 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Copyright 2022 by Nan McKay & Associates, Inc. All rights reserved Permission to reprint granted only to the Public Housing Authority or Housing Agency that has purchased this plan from Nan McKay & Associates, Inc. This document may not be reprinted or distributed to any other person or entity other than the purchasing agency without the express written permission of Nan McKay & Associates, Inc. 12.A.b Packet Pg. 1371 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-1 Introduction ABOUT THE REFERENCES CITED IN THE MODEL ADMINISTRATIVE PLAN Chapter 1 OVERVIEW OF THE PROGRAM AND PLAN PART I: THE PHA ................................................................................................................ 1-1 1-I.A.Overview ................................................................................................. 1-1 1-I.B.Organization and Structure of the PHA .................................................. 1-2 1-I.C.PHA Mission .......................................................................................... 1-2 1-I.D.The PHA’s Programs .............................................................................. 1-3 1-I.E.The PHA’s Commitment to Ethics and Service ..................................... 1-3 PART II: THE HOUSING CHOICE VOUCHER (HCV) PROGRAM ................................. 1-5 1-II.A.Overview and History of the Program .................................................... 1-5 1-II.B.HCV Program Basics .............................................................................. 1-7 1-II.C.The HCV Partnerships ............................................................................ 1-7 The HCV Relationships: ................................................................... 1-8 What Does HUD Do? ....................................................................... 1-9 What Does the PHA Do? .................................................................. 1-9 What Does the Owner Do? ............................................................. 1-10 What Does the Family Do? ............................................................. 1-11 1-II.D.Applicable Regulations ......................................................................... 1-12 PART III: THE HCV ADMINISTRATIVE PLAN ............................................................... 1-13 1-III.A. Overview and Purpose of the Plan ........................................................ 1-13 1-III.B. Contents of the Plan (24CFR 982.54) ................................................... 1-13 Mandatory vs. Discretionary Policy ............................................... 1-15 1-III.C. Organization of the Plan ....................................................................... 1-15 1-III.D. Updating and Revising the Plan ........................................................... 1-15 Chapter 2 FAIR HOUSING AND EQUAL OPPORTUNITY PART I: NONDISCRIMINATION....................................................................................... 2-3 2-I.A.Overview ................................................................................................. 2-3 2-I.B.Nondiscrimination .................................................................................. 2-4 Providing Information to Families and Owners ............................... 2-5 Discrimination Complaints ............................................................... 2-5 PART II: POLICIES RELATED TO PERSONS WITH DISABILITIES ............................. 2-7 2-II.A.Overview ................................................................................................. 2-7 2-II.B.Definition of Reasonable Accommodation ............................................ 2-8 Types of Reasonable Accommodations ............................................ 2-8 2-II.C.Request for an Accommodation ............................................................. 2-9 2-II.D.Verification of Disability ...................................................................... 2-10 2-II.E.Approval/Denial of a Requested Accommodation [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act, Notice PIH 2010-26]. ............................................................................ 2-11 12.A.b Packet Pg. 1372 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-2 2-II.F. Program Accessibility for Persons with Hearing or Vision Impairments ......................................................................... 2-12 2-II.G. Physical Accessibility ........................................................................... 2-13 2-II.H. Denial or Termination of Assistance .................................................... 2-14 PART III: IMPROVING ACCESS TO SERVICES FOR PERSONS WITH LIMITED ENGLISH PROFICIENCY (LEP) ....................................................................... 2-15 2-III.A. Overview ............................................................................................... 2-15 2-III.B. Oral Interpretation ................................................................................ 2-16 2-III.C. Written Translation ............................................................................... 2-16 2-III.D. Implementation Plan ............................................................................. 2-17 Exhibit 2-1: Definition of a Person with a Disability Under Federal Civil Rights Laws [24 CFR Parts 8.3, and 100.201] ............................... 2-19 Chapter 3 ELIGIBILITY PART I: DEFINITIONS OF FAMILY AND HOUSEHOLD MEMBERS.......................... 3-3 3-I.A. Overview ................................................................................................. 3-3 3-I.B. Family and Household [24 CFR 982.201(c); FR Notice 02/03/12; Notice PIH 2014-20] ............................................................................... 3-3 Family ............................................................................................... 3-3 Household ......................................................................................... 3-3 3-I.C. Family Breakup and Remaining Member of Tenant Family .................. 3-4 Family Breakup [24 CFR 982.315] .................................................. 3-4 Remaining Member of a Tenant Family [24 CFR 5.403] ................ 3-4 3-I.D. Head of Household [24 CFR 5.504(b)] .................................................. 3-5 3-I.E. Spouse, Cohead, and Other Adult .......................................................... 3-5 3-I.F. Dependent [24 CFR 5.603] ..................................................................... 3-6 Joint Custody of Dependents ............................................................ 3-6 3-I.G. Full-Time Student [24 CFR 5.603, HVC GB, p. 5-29] .......................... 3-6 3-I.H. Elderly and Near-Elderly Persons, and Elderly Family [24 CFR 5.100 and 5.403, FR Notice 02/03/12]..................................... 3-6 Elderly Persons ................................................................................ 3-6 Near-Elderly Persons ........................................................................ 3-6 Elderly Family .................................................................................. 3-6 3-I.I. Persons with Disabilities and Disabled Family [24 CFR 5.403, FR Notice 02/03/12] ............................................................................... 3-7 Persons with Disabilities................................................................... 3-7 Disabled Family ................................................................................ 3-7 3-I.J. Guests [24 CFR 5.100] ........................................................................... 3-7 3.I.K. Foster Children and Foster Adults .......................................................... 3-8 3-I.L. Absent Family Members ......................................................................... 3-8 Definitions of Temporarily and Permanently Absent ....................... 3-8 Absent Students ................................................................................ 3-8 Absences Due to Placement in Foster Care [24 CFR 5.403] ............ 3-9 Absent Head, Spouse, or Cohead ..................................................... 3-9 12.A.b Packet Pg. 1373 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-3 Family Members Permanently Confined for Medical Reasons [HCV GB, p. 5-22] ........................................................................... 3-9 Return of Permanently Absent Family Members ............................. 3-9 3-I.M. Live-In Aide .......................................................................................... 3-10 PART II: BASIC ELIGIBILITY CRITERIA ....................................................................... 3-11 3-II.A. Income Eligibility and Targeting .......................................................... 3-11 Income Limits ................................................................................. 3-11 Definitions of the Income Limits [24 CFR 5.603(b)] ..................... 3-11 Using Income Limits for Eligibility [24 CFR 982.201] ................. 3-11 Using Income Limits for Targeting [24 CFR 982.201] .................. 3-12 3-II.B. Citizenship or Eligible Immigration Status [24 CFR 5, Subpart E] ..... 3-13 Declaration [24 CFR 5.508] ........................................................... 3-13 Mixed Families ............................................................................... 3-14 Ineligible Families [24 CFR 5.514(d), (e), and (f)] ........................ 3-14 Timeframe for Determination of Citizenship Status [24 CFR 5.508(g)] .......................................................................... 3-15 3-II.C. Social Security Numbers [24 CFR 5.216 and 5.218, Notice PIH 2012-10] ............................................................................. 3-15 3-II.D. Family Consent to Release of Information [24 CFR 5.230; HCV GB, p. 5-13] ................................................................................. 3-16 3-II.E. Students Enrolled In Institutions of Higher Education [24 CFR 5.612, FR Notice 4/10/06] ..................................................... 3-17 Definitions ...................................................................................... 3-17 Determining Student Eligibility ...................................................... 3-19 PART III: DENIAL OF ASSISTANCE ................................................................................ 3-21 3-III.A. Overview ............................................................................................... 3-21 Forms of Denial [24 CFR 982.552(a)(2); HCV GB, p. 5-35] ........ 3-21 Prohibited Reasons for Denial of Program Assistance [24 CFR 982.202(b), 24 CFR 5.2005(b)] ....................................... 3-21 3-III.B. Mandatory Denial of Assistance [24 CFR 982.553(a)] ........................ 3-22 3-III.C. Other Permitted Reasons for Denial of Assistance ............................... 3-23 Criminal Activity [24 CFR 982.553] .............................................. 3-23 Previous Behavior in Assisted Housing [24 CFR 982.552(c)] ....... 3-24 3-III.D. Screening .............................................................................................. 3-25 Screening for Eligibility ................................................................. 3-25 Screening for Suitability as a Tenant [24 CFR 982.307] ................ 3-26 3-III.E. Criteria for Deciding to Deny Assistance ............................................. 3-27 Evidence [24 CFR 982.553(c)] ....................................................... 3-27 Consideration of Circumstances [24 CFR 982.552(c)(2)] .............. 3-27 Removal of a Family Member's Name from the Application......... 3-29 Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)] ............. 3-29 3-III.F. Notice of Eligibility or Denial .............................................................. 3-30 12.A.b Packet Pg. 1374 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-4 3-III.G. Prohibition Against Denial of Assistance to Victims of Domestic Violence, Dating Violence, Sexual Assault, and Stalking .................... 3-31 Notification ..................................................................................... 3-31 Documentation ................................................................................ 3-32 Exhibit 3-1: Detailed Definitions Related to Disabilities ......................................................... 3-33 Person with Disabilities [24 CFR 5.403] ........................................ 3-33 Individual with Handicaps [24 CFR 8.3] ........................................ 3-35 Exhibit 3-2: Definition of Institution of Higher Education [20 U.S.C 1001 and 1002] ............ 3-37 Eligibility of Students for Assisted Housing Under Section 8 of the U.S. Housing Act of 1937; Supplementary Guidance; Notice [Federal Register, April 10, 2006] ...................................... 3-37 Chapter 4 APPLICATIONS, WAITING LIST AND TENANT SELECTION PART I: THE APPLICATION PROCESS ........................................................................... 4-3 4-I.A. Overview ................................................................................................. 4-3 4-I.B. Applying for Assistance [HCV GB, pp. 4-11 – 4-16, Notice PIH 2009-36] .................................. 4-3 4-I.C. Accessibility of the Application Process ................................................ 4-4 Elderly and Disabled Populations [24 CFR 8 and HCV GB, pp. 4-11 – 4-13] ................................................................................ 4-4 Limited English Proficiency ............................................................. 4-4 4-I.D. Placement on the Waiting List ................................................................ 4-5 Ineligible for Placement on the Waiting List .................................... 4-5 Eligible for Placement on the Waiting List ...................................... 4-5 PART II: MANAGING THE WAITING LIST...................................................................... 4-7 4-II.A. Overview ................................................................................................. 4-7 4-II.B. Organization of the Waiting List [24 CFR 982.204 and 205] ................ 4-7 4-II.C. Opening and Closing the Waiting List [24 CFR 982.206] ..................... 4-8 Closing the Waiting List ................................................................... 4-8 Reopening the Waiting List .............................................................. 4-8 4-II.D. Family Outreach [HCV GB, pp. 4-2 to 4-4] ........................................... 4-9 4-II.E. Reporting Changes in Family Circumstances ....................................... 4-10 4-II.F. Updating the Waiting List [24 CFR 982.204] ...................................... 4-10 Purging the Waiting List ................................................................. 4-10 Removal from the Waiting List ...................................................... 4-11 PART III: SELECTION FOR HCV ASSISTANCE ............................................................. 4-13 4-III.A. Overview ............................................................................................... 4-13 4-III.B. Selection and HCV Funding Sources ................................................... 4-13 Special Admissions [24 CFR 982.203] .......................................... 4-13 Targeted Funding [24 CFR 982.204(e)] ......................................... 4-13 Regular HCV Funding .................................................................... 4-13 4-III.C. Selection Method .................................................................................. 4-14 Local Preferences [24 CFR 982.207; HCV p. 4-16] ...................... 4-14 Income Targeting Requirement [24 CFR 982.201(b)(2)] ............... 4-14 12.A.b Packet Pg. 1375 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-5 Order of Selection ........................................................................... 4-15 4-III.D. Notification of Selection ....................................................................... 4-16 4-III.E. The Application Interview .................................................................... 4-16 4-III.F. Completing the Application Process .................................................... 4-18 Chapter 5 BRIEFINGS AND VOUCHER ISSUANCE PART I: BRIEFINGS AND FAMILY OBLIGATIONS ...................................................... 5-1 5-I.A. Overview ................................................................................................. 5-1 5-I.B. Briefing [24 CFR 982.301] ..................................................................... 5-2 Notification and Attendance ............................................................. 5-2 Oral Briefing [24 CFR 982.301(a)] .................................................. 5-3 Briefing Packet [24 CFR 982.301(b)] .............................................. 5-4 Additional Items to be Included in the Briefing Packet ................... 5-5 5-I.C. Family Obligations ................................................................................ 5-6 Time Frames for Reporting Changes Required by Family Obligations ........................................................................................ 5-6 Family Obligations [24 CFR 982.551] ............................................. 5-6 PART II: SUBSIDY STANDARDS AND VOUCHER ISSUANCE .................................. 5-11 5-II.A. Overview ............................................................................................... 5-11 5-II.B. Determining Family Unit (Voucher) Size [24 CFR 982.402] .............. 5-11 5-II.C. Exceptions to Subsidy Standards .......................................................... 5-13 5-II.D. Voucher Issuance [24 CFR 982.302] .................................................... 5-14 5-II.E. Voucher Term and Extensions.............................................................. 5-15 Voucher Term [24 CFR 982.303] ................................................... 5-15 Extensions of Voucher Term [24 CFR 982.303(b)] ....................... 5-15 Suspensions of Voucher Term [24 CFR 982.303(c)] ..................... 5-17 Expiration of Voucher Term ........................................................... 5-17 Chapter 6 INCOME AND SUBSIDY DETERMINATIONS [24 CFR Part 5, Subparts E and F; 24 CFR 982] PART I: ANNUAL INCOME ............................................................................................... 6-2 6-I.A. Overview ................................................................................................. 6-2 6-I.B. Household Composition and Income ...................................................... 6-3 Summary of Income Included and Excluded by Person ................... 6-3 Temporarily Absent Family Members .............................................. 6-4 Family Members Permanently Confined for Medical Reasons ........ 6-5 Joint Custody of Dependents ............................................................ 6-5 Caretakers for a Child ....................................................................... 6-6 6-I.C. Anticipating Annual Income .................................................................. 6-7 Basis of Annual Income Projection .................................................. 6-7 Projecting Income ............................................................................. 6-8 6-I.D. Earned Income ........................................................................................ 6-9 Types of Earned Income Included in Annual Income ...................... 6-9 Types of Earned Income Not Counted in Annual Income ............... 6-9 12.A.b Packet Pg. 1376 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-6 6-I.E. Earned Income Disallowance for Persons with Disabilities [24 CFR 5.617; Streamlining Final Rule (SFR) Federal Register 3/8/16] ....................................................................... 6-13 Eligibility ........................................................................................ 6-13 Calculation of the Disallowance ..................................................... 6-14 Original Calculation Method .......................................................... 6-14 Revised Calculation Method ........................................................... 6-15 6-I.F. Business Income [24 CFR 5.609(b)(2)] ................................................ 6-16 Business Expenses .......................................................................... 6-16 Business Expansion ........................................................................ 6-16 Capital Indebtedness ....................................................................... 6-16 Negative Business Income .............................................................. 6-17 Withdrawal of Cash or Assets from a Business .............................. 6-17 Co-owned Businesses ..................................................................... 6-17 6-I.G. Assets [24 CFR 5.609(b)(3); 24 CFR 5.603(b)] ................................... 6-18 Overview ......................................................................................... 6-17 General Policies .............................................................................. 6-18 Types of Assets ............................................................................... 6-22 6-I.H. Periodic Payments ................................................................................ 6-22 Periodic Payments Included in Annual Income .............................. 6-26 Lump-Sum Payments for the Delayed Start of a Periodic Payment ............................................................................ 6-26 Treatment of Overpayment Deductions from Social Security Benefits .................................................................. 6-26 Periodic Payments Excluded from Annual Income ........................ 6-27 6-I.I. Payments In Lieu of Earnings............................................................... 6-28 6-I.J. Welfare Assistance ............................................................................... 6-29 Overview ......................................................................................... 6-29 Sanctions Resulting in the Reduction of Welfare Benefits [24 CFR 5.615] ............................................................................... 6-29 6-I.K. Periodic and Determinable Allowances [24 CFR 5.609(b)(7)] ............ 6-30 Alimony and Child Support ............................................................ 6-30 Regular Contributions or Gifts ....................................................... 6-30 6-I.L. Student Financial Assistance [24 CFR 5.609(b)(9); Notice PIH 2015-21] ............................................................................. 6-31 Student Financial Assistance Included in Annual Income [24 CFR 5.609(b)(9) ); FR 4/10/06; Notice PIH 2015-21] ............. 6-31 Student Financial Assistance Excluded from Annual Income [24 CFR 5.609(c)(6)] ...................................................................... 6-32 6-I.M. Additional Exclusions From Annual Income ....................................... 6-33 PART II: ADJUSTED INCOME.......................................................................................... 6-37 6-II.A. Introduction ........................................................................................... 6-37 Overview ......................................................................................... 6-37 Anticipating Expenses .................................................................... 6-37 6-II.B. Dependent Deduction ........................................................................... 6-38 6-II.C. Elderly or Disabled Family Deduction ................................................. 6-38 12.A.b Packet Pg. 1377 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-7 6-II.D. Medical Expenses Deduction [24 CFR 5.611(a)(3)(i)] ........................ 6-39 Definition of Medical Expenses...................................................... 6-39 Summary of Allowable Medical Expenses from IRS Publication 502 ............................................................................... 6-39 Families That Qualify for Both Medical and Disability Assistance Expenses ....................................................................... 6-40 6-II.E. Disability Assistance Expenses Deduction [24 CFR 5.603(b) and 24 CFR 5.611(a)(3)(ii)] ........................................................................ 6-41 Earned Income Limit on the Disability Assistance Expense Deduction ......................................................................... 6-41 Eligible Disability Expenses ........................................................... 6-42 Necessary and Reasonable Expenses .............................................. 6-43 Families That Qualify for Both Medical and Disability Assistance Expenses ....................................................................... 6-43 6-II.F. Child Care Expense Deduction ............................................................. 6-44 Clarifying the Meaning of Child for This Deduction ..................... 6-44 Qualifying for the Deduction .......................................................... 6-44 Earned Income Limit on Child Care Expense Deduction .............. 6-46 Eligible Child Care Expenses ......................................................... 6-47 PART III: CALCULATING FAMILY SHARE AND PHA SUBSIDY ............................... 6-49 6-III.A. Overview of Rent and Subsidy Calculations ........................................ 6-49 TTP Formula [24 CFR 5.628] ........................................................ 6-49 Family Share [24 CFR 982.305(a)(5)] ............................................ 6-49 PHA Subsidy [24 CFR 982.505(b)]................................................ 6-50 Utility Reimbursement [24 CFR 982.514(b); 982.514(c)] ............. 6-50 6-III.B. Financial Hardships Affecting Minimum Rent [24 CFR 5.630] .......... 6-51 Overview ......................................................................................... 6-51 HUD-Defined Financial Hardship .................................................. 6-51 Implementation of Hardship Exemption ........................................ 6-53 6-III.C. Applying Payment Standards [24 CFR 982.505; 982.503(b)] ............. 6-56 Overview ......................................................................................... 6-56 Changes in Payment Standards ....................................................... 6-56 Reasonable Accommodation .......................................................... 6-57 6-III.D. Applying Utility Allowances [24 CFR 982.517] .................................. 6-58 Overview ......................................................................................... 6-58 Reasonable Accommodation .......................................................... 6-58 Utility Allowance Revisions ........................................................... 6-58 6-III.E. Prorated Assistance for Mixed Families [24 CFR 5.520] ..................... 6-59 Exhibit 6-1: Annual Income Inclusions .................................................................................... 6-61 HHS Definition of "Assistance" ........................................................................... 6-62 Exhibit 6-2: Annual Income Exclusions ................................................................................... 6-64 Exhibit 6-3: Treatment of Family Assets .................................................................................. 6-66 Exhibit 6-4: Earned Income Disallowance for Persons with Disabilities ................................. 6-67 Exhibit 6-5: The Effect of Welfare Benefit Reduction ............................................................. 6-69 12.A.b Packet Pg. 1378 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-8 Chapter 7 VERIFICATION [24 CFR 982.516, 24 CFR 982.551, 24 CFR 5.230, Notice PIH 2010-19] PART I: GENERAL VERIFICATION REQUIREMENTS ................................................. 7-1 7-I.A. Family Consent to Release of Information [24 CFR 982.516 and 982.551, 24 CFR 5.230] ................................................................... 7-1 Consent Forms .................................................................................. 7-1 Penalties for Failing to Consent [24 CFR 5.232] ............................. 7-1 7-I.B. Overview of Verification Requirements ................................................. 7-2 HUD’s Verification Hierarchy [Notice PIH 2010-19] ..................... 7-2 Requirements for Acceptable Documents ........................................ 7-2 File Documentation .......................................................................... 7-3 7-I.C. Up-Front Income Verification (UIV) ..................................................... 7-3 Upfront Income Verification Using HUD’s Enterprise Income Verification (EIV) System (Mandatory) ........................................... 7-4 Upfront Income Verification Using Non-HUD Systems (Optional) ........................................................................... 7-5 7-I.D. Third-Party Written and Oral Verification ............................................. 7-6 Written Third-Party Verification [Notice PIH 2010-19] .................. 7-6 Written Third-Party Verification Form ............................................ 7-7 Oral Third-Party Verification [Notice PIH 2010-19] ....................... 7-7 When Third-Party Verification is Not Required [Notice PIH 2010-19] ....................................................................... 7-8 7-I.E. Self-Certification .................................................................................... 7-9 PART II: VERIFYING FAMILY INFORMATION ............................................................ 7-11 7-II.A. Verification of Legal Identity ............................................................... 7-11 7-II.B. Social Security Numbers [24 CFR 5.216, Notice PIH 2012-10] .......... 7-12 7-II.C. Documentation of Age .......................................................................... 7-14 7-II.D. Family Relationships ............................................................................ 7-14 Marriage .......................................................................................... 7-14 Separation or Divorce ..................................................................... 7-15 Absence of Adult Member.............................................................. 7-15 Foster Children and Foster Adults .................................................. 7-15 7-II.E. Verification of Student Status ............................................................... 7-16 General Requirements .................................................................... 7-16 Restrictions on Assistance to Students Enrolled in Institutions of Higher Education ..................................................... 7-16 7-II.F. Documentation of Disability ................................................................. 7-17 Family Members Receiving SSA Disability Benefits .................... 7-18 Family Members Not Receiving SSA Disability Benefits ............. 7-18 7-II.G. Citizenship or Eligible Immigration Status [24 CFR 5.508] ................ 7-19 Overview ......................................................................................... 7-19 U.S. Citizens and Nationals ............................................................ 7-19 Eligible Immigrants ........................................................................ 7-20 7-II.H. Verification of Preference Status .......................................................... 7-20 12.A.b Packet Pg. 1379 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-9 PART III: VERIFYING INCOME AND ASSETS ............................................................... 7-21 7-III.A. Earned Income ...................................................................................... 7-21 Tips ................................................................................................. 7-21 7-III.B. Business and Self Employment Income ............................................... 7-21 7-III.C. Periodic Payments and Payments In Lieu of Earnings ......................... 7-22 Social Security/SSI Benefits ........................................................... 7-22 7-III.D. Alimony or Child Support .................................................................... 7-23 7-III.E. Assets and Income From Assets ........................................................... 7-24 Assets Disposed of for Less than Fair Market Value ..................... 7-24 7-III.F. Net Income From Rental Property ........................................................ 7-22 7-III.G. Retirement Accounts ............................................................................ 7-25 7-III.H. Income From Excluded Sources ........................................................... 7-26 7-III.I. Zero Annual Income Status .................................................................. 7-26 7-III.J. Student Financial Assistance ................................................................ 7-27 7-III.K. Parental Income of Students Subject to Eligibility Restrictions ........... 7-28 PART IV: VERIFYING MANDATORY DEDUCTIONS ................................................... 7-29 7-IV.A. Dependent and Elderly/Disabled Household Deductions ..................... 7-29 Dependent Deduction ..................................................................... 7-29 Elderly/Disabled Family Deduction ............................................... 7-27 7-IV.B. Medical Expense Deduction ................................................................. 7-30 Amount of Expense ........................................................................ 7-30 Eligible Household ......................................................................... 7-31 Qualified Expenses ......................................................................... 7-31 Unreimbursed Expenses ................................................................. 7-31 Expenses Incurred in Past Years ..................................................... 7-31 7-IV.C. Disability Assistance Expenses ............................................................ 7-32 Amount of Expense ........................................................................ 7-32 Family Member is a Person with Disabilities ................................. 7-33 Family Member(s) Permitted to Work ........................................... 7-33 Unreimbursed Expenses ................................................................. 7-33 7-IV.D. Child Care Expenses ............................................................................. 7-34 Eligible Child .................................................................................. 7-34 Unreimbursed Expense ................................................................... 7-34 Pursuing an Eligible Activity ......................................................... 7-35 Allowable Type of Child Care ........................................................ 7-36 Reasonableness of Expenses ........................................................... 7-36 Exhibit 7-1: Summary of Documentation Requirements for Noncitizens [HCV GB, pp. 5-9 and 5-10] ................................................................................ 7-37 12.A.b Packet Pg. 1380 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-10 Chapter 8 HOUSING QUALITY STANDARDS AND RENT REASONABLENESS DETERMINATIONS [24 CFR 982 Subpart I and 24 CFR 982.507] PART I: PHYSICAL STANDARDS .................................................................................... 8-2 8-I.A. General HUD Requirements ................................................................... 8-2 HUD Performance and Acceptability Standards .............................. 8-2 Tenant Preference Items ................................................................... 8-2 Modifications to Provide Accessibility ............................................ 8-3 8-I.B. Additional Local Requirements .............................................................. 8-4 Thermal Environment [HCV GB p.10-7] ......................................... 8-4 Clarifications of HUD Requirements ............................................... 8-5 8-I.C. Life-Threatening Conditions [24 CFR 982.404(a)] ................................ 8-6 8-I.D. Owner and Family Responsibilities [24 CFR 982.404] .......................... 8-7 Family Responsibilities .................................................................... 8-7 Owner Responsibilities ..................................................................... 8-7 8-I-E. Special Requirements for Children with Environmental Intervention Blood Lead Level [24 CFR 35.1225] ................................. 8-8 8-I-F. Violation of HQS Space Standards [24 CFR 982.401, 24 CFR 982.403]....................................................... 8-8 PART II: THE INSPECTION PROCESS .............................................................................. 8-9 8-II.A. Overview [24 CFR 982.405] .................................................................. 8-9 Types of Inspections ......................................................................... 8-9 Inspection of PHA-Owned Units [24 CFR 982.352(b)] ................... 8-9 Inspection Costs [Notice PIH 2016-05] .......................................... 8-10 Notice and Scheduling .................................................................... 8-10 Owner and Family Inspection Attendance ..................................... 8-10 8-II.B. Initial HQS Inspection [24 CFR 982.401(a)] ....................................... 8-11 Timing of Initial Inspections .......................................................... 8-11 Inspection Results and Reinspections ............................................. 8-11 Utilities ........................................................................................... 8-12 Appliances ...................................................................................... 8-12 8-II.C. Annual/Biennial HQS Inspections [24 CFR 982.405; 982.406, Notice PIH 2016-05] ............................................................................. 8-13 Scheduling the Inspection ............................................................... 8-13 8-II.D. Special Inspections [24 CFR 982.405(g)] ............................................ 8-13 8-II.E. Quality Control Inspections [24 CFR 982.405(b), HCV GB p. 10-32] ................................................................................ 8-14 8-II.F. Inspection Results and Reinspections for Units Under HAP Contract ........................................................................................ 8-14 Notification of Corrective Actions ................................................. 8-14 Extensions ....................................................................................... 8-15 Reinspections .................................................................................. 8-15 12.A.b Packet Pg. 1381 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-11 8-II.G. Enforcing Owner Compliance .............................................................. 8-16 HAP Abatement .............................................................................. 8-16 HAP Contract Termination ............................................................. 8-16 8-II.H. Enforcing Family Compliance with HQS [24 CFR 982.404(b)] .......... 8-16 PART III: RENT REASONABLENESS [24 CFR 982.507] ................................................. 8-17 8-III.A. Overview ............................................................................................... 8-17 PHA-Owned Units [24 CFR 982.352(b)] ....................................... 8-17 8-III.B. When Rent Reasonableness Determinations Are Required.................. 8-18 Owner-Initiated Rent Determinations ............................................. 8-18 PHA- and HUD-Initiated Rent Reasonableness Determinations ... 8-18 LIHTC- and HOME-Assisted Units [24 CFR 982.507(c) ............. 8-19 8-III.C. How Comparability Is Established ....................................................... 8-19 Factors to Consider ......................................................................... 8-19 Units that Must Not be Used as Comparables ................................ 8-19 Rents Charged for Other Units on the Premises ............................. 8-20 8-III.D. PHA Rent Reasonableness Methodology ............................................. 8-21 How Market Data Is Collected ....................................................... 8-21 How Rents Are Determined ............................................................ 8-21 Exhibit 8-1: Overview of HUD Housing Quality Standards .................................................... 8-23 Exhibit 8-2: Summary of Tenant Preference Areas Related to Housing Quality ..................... 8-27 Chapter 9 GENERAL LEASING POLICIES 9-I.A. Tenant Screening .................................................................................... 9-2 9-I.B. Requesting Tenancy Approval [Form HUD-52517] .............................. 9-3 9-I.C. Owner Participation ................................................................................ 9-4 9-I.D. Eligible Units .......................................................................................... 9-5 Ineligible Units [24 CFR 982.352(a)] ............................................... 9-5 PHA-Owned Units [24 CFR 982.352(b)] ......................................... 9-5 Special Housing Types [24 CFR 982 Subpart M] ............................ 9-5 Duplicative Assistance [24 CFR 982.352(c)] ................................... 9-6 Housing Quality Standards (HQS) [24 CFR 982.305 and 24 CFR 982.401] .............................................................................. 9-6 Unit Size ........................................................................................... 9-7 Rent Reasonableness [24 CFR 982.305 and 24 CFR 982.507] ........ 9-7 Rent Burden [24 CFR 982.508] ........................................................ 9-7 9-I.E. Lease and Tenancy Addendum ............................................................... 9-8 Lease Form and Tenancy Addendum [24 CFR 982.308] ................. 9-8 Lease Information [24 CFR 982.308(d)] .......................................... 9-8 Term of Assisted Tenancy ................................................................ 9-9 Security Deposit [24 CFR 982.313 (a) and (b)] ............................... 9-9 Separate Non-Lease Agreements between Owner and Tenant ....... 9-10 PHA Review of Lease .................................................................... 9-11 9-I.F. Tenancy Approval [24 CFR 982.305] .................................................. 9-12 9-I.G. HAP Contract Execution [24 CFR 982.305] ........................................ 9-13 12.A.b Packet Pg. 1382 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-12 9-I.H. Changes in Lease or Rent [24 CFR 982.308] ....................................... 9-14 Chapter 10 MOVING WITH CONTINUED ASSISTANCE AND PORTABILITY PART I: MOVING WITH CONTINUED ASSISTANCE ................................................. 10-1 10-I.A. Allowable Moves .................................................................................. 10-1 10-I.B. Restrictions On Moves ......................................................................... 10-3 Denial of Moves ............................................................................. 10-3 Restrictions on Elective Moves [24 CFR 982.354(c)] .................... 10-4 10-I.C. Moving Process .................................................................................... 10-5 Notification ..................................................................................... 10-5 Approval ......................................................................................... 10-5 Reexamination of Family Income and Composition ...................... 10-5 Voucher Issuance and Briefing ....................................................... 10-5 Housing Assistance Payments [24 CFR 982.311(d)] ..................... 10-6 PART II: PORTABILITY .................................................................................................... 10-7 10-II.A. Overview ............................................................................................... 10-7 10-II.B. Initial PHA Role ................................................................................... 10-8 Allowable Moves under Portability ................................................ 10-8 Determining Income Eligibility ...................................................... 10-9 Reexamination of Family Income and Composition ...................... 10-9 Briefing ......................................................................................... 10-10 Voucher Issuance and Term ......................................................... 10-10 Voucher Extensions and Expiration ............................................. 10-10 Preapproval Contact with the Receiving PHA ............................. 10-11 Initial Notification to the Receiving PHA .................................... 10-11 Sending Documentation to the Receiving PHA ........................... 10-12 Initial Billing Deadline [Notice PIH 2012-42, Letter to Executive Directors, 9/15/15] ........................................ 10-13 Monthly Billing Payments [24 CFR 982.355(e), Notice PIH 2012-42] ..................................................................... 10-13 Annual Updates of Form HUD-50058 ......................................... 10-14 Denial or Termination of Assistance [24 CFR 982.355(c)(17)] ... 10-14 10-II.C. Receiving PHA Role ........................................................................... 10-15 Responding to Initial PHA’s Request [24 CFR 982.355(c)] ........ 10-15 Initial Contact with Family ........................................................... 10-15 Briefing ......................................................................................... 10-16 Income Eligibility and Reexamination ......................................... 10-16 Voucher Issuance .......................................................................... 10-17 Notifying the Initial PHA ............................................................. 10-18 Administering a Portable Family’s Voucher ................................ 10-18 Absorbing a Portable Family ........................................................ 10-21 12.A.b Packet Pg. 1383 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-13 Chapter 11 REEXAMINATIONS PART I: ANNUAL REEXAMINATIONS [24 CFR 982.516] ........................................... 11-1 11-I.A. Overview ............................................................................................... 11-1 11-I.B Streamlined Annual Reexaminations [24 CFR 982.516(b)] ................. 11-2 11-I.C. Scheduling Annual Reexaminations ..................................................... 11-3 Notification of and Participation in the Annual Reexamination Process ................................................................... 11-3 11-I.D. Conducting Annual Reexaminations .................................................... 11-4 11-I.E. Determining Ongoing Eligibility of Certain Students [24 CFR 982.552(b)(5)] ........................................................................ 11-6 11-I.F. Effective Dates ...................................................................................... 11-7 PART II: INTERIM REEXAMINATIONS [24 CFR 982.516] ........................................... 11-9 11-II.A. Overview ............................................................................................... 11-9 11-II.B. Changes In Family and Household Composition ................................. 11-9 New Family Members Not Requiring PHA Approval ................... 11-9 New Family and Household Members Requiring Approval ........ 11-10 Departure of a Family or Household Member .............................. 11-11 11-II.C. Changes Affecting Income or Expenses ............................................. 11-12 PHA-Initiated Interim Reexaminations ........................................ 11-12 Family-Initiated Interim Reexaminations ..................................... 11-13 11-II.D. Processing the Interim Reexamination ............................................... 11-14 Method of Reporting ..................................................................... 11-14 Effective Dates .............................................................................. 11-14 PART III: RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT .............. 11-15 11-III.A. Overview ............................................................................................. 11-15 11-III.B. Changes In Payment Standards and Utility Allowances .................... 11-15 Payment Standards [24 CFR 982.505] ......................................... 11-15 Subsidy Standards [24 CFR 982.505(c)(4)] ................................. 11-16 Utility Allowances [24 CFR 982.517(d)] ..................................... 11-16 11-III.C. Notification of New Family Share and HAP Amount ........................ 11-16 11-III.D. Discrepancies ...................................................................................... 11-16 12.A.b Packet Pg. 1384 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-14 Chapter 12 TERMINATION OF ASSISTANCE AND TENANCY PART I: GROUNDS FOR TERMINATION OF ASSISTANCE ...................................... 12-1 12-I.A. Overview ............................................................................................... 12-1 12-I.B. Family No Longer Requires Assistance [24 CFR 982.455] ................. 12-1 12-I.C. Family Chooses to Terminate Assistance ............................................. 12-2 12-I.D. Mandatory Termination of Assistance .................................................. 12-2 Eviction [24 CFR 982.552(b)(2), 24 CFR 5.2005(c)(1)]................ 12-2 Failure to Provide Consent [24 CFR 982.552(b)(3)] ...................... 12-2 Failure to Document Citizenship [24 CFR 982.552(b)(4) and 24 CFR 5.514(c)] ..................................................................... 12-3 Failure to Disclose and Document Social Security Numbers [24 CFR 5.218(c), Notice PIH 2012-10] ........................................ 12-3 Methamphetamine Manufacture or Production [24 CFR 983.553(b)(1)(ii)] ............................................................. 12-3 Failure of Students to Meet Ongoing Eligibility Requirements [24 CFR 982.552(b)(5) and FR 4/10/06] ................. 12-3 Death of the Sole Family Member [24 CFR 982.311(d) and Notice PIH 2010-3] ......................................................................... 12-4 12-I.E. Mandatory Policies and Other Authorized Terminations ..................... 12-4 Mandatory Policies [24 CFR 982.553(b) and 982.551(l)] .............. 12-4 Other Authorized Reasons for Termination of Assistance [24 CFR 982.552(c), 24 CFR 5.2005(c)] ........................................ 12-7 PART II: APPROACH TO TERMINATION OF ASSISTANCE ....................................... 12-9 12-II.A. Overview ............................................................................................... 12-9 12-II.B. Method of Termination [24 CFR 982.552(a)(3)] ................................. 12-9 12-II.C. Alternatives to Termination of Assistance ........................................... 12-9 Change in Household Composition ................................................ 12-9 Repayment of Family Debts ........................................................... 12-9 12-II.D. Criteria for Deciding to Terminate Assistance ................................... 12-10 Evidence ....................................................................................... 12-10 Consideration of Circumstances [24 CFR 982.552(c)(2)(i)] ........ 12-10 Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)] ........... 12-11 12-II.E. Terminations Related to Domestic Violence, Dating Violence, Sexual Assault or Stalking .................................................................. 12-12 VAWA Protections against Terminations .................................... 12-12 Limitations on VAWA Protections [24 CFR 5.2005(d) and (e)] .......................................................... 12-13 Documentation of Abuse [24 CFR 5.2007] .................................. 12-14 Terminating the Assistance of a Domestic Violence Perpetrator ..................................................................... 12-14 12-II.F. Termination Notice ............................................................................. 12-15 12.A.b Packet Pg. 1385 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-15 PART III: TERMINATION OF TENANCY BY THE OWNER........................................ 12-17 12-III.A. Overview ............................................................................................. 12-17 12-III.B. Grounds for Owner Termination of Tenancy [24 CFR 982.310, 24 CFR 5.2005(c), and Form HUD-52641-A, Tenancy Addendum]....................................... 12-17 Serious or Repeated Lease Violations .......................................... 12-17 Violation of Federal, State, or Local Law .................................... 12-17 Criminal Activity or Alcohol Abuse ............................................. 12-17 Other Good Cause ......................................................................... 12-18 12-III.C. Eviction [24 CFR 982.310(e) and (f) and Form HUD-52641-A, Tenancy Addendum] .......................................................................... 12-19 12-III.D. Deciding Whether to Terminate Tenancy [24 CFR 982.310(h), 24 CFR 982.310(h)(4)]..................................... 12-20 12-III.E. Effect of Tenancy Termination on the Family’s Assistance .............. 12-20 Exhibit 12-1: Statement of Family Obligations ........................................................................ 12-21 Chapter 13 OWNERS PART I: OWNERS IN THE HCV PROGRAM ................................................................. 13-3 13-I.A. Owner Recruitment and Retention [HCV GB, pp. 2-4 to 2-6] ............. 13-3 Recruitment ..................................................................................... 13-3 Retention ......................................................................................... 13-4 13-I.B. Basic HCV Program Requirements ...................................................... 13-5 13-I.C. Owner Responsibilities [24 CFR 982.452] ........................................... 13-7 13-I.D. Owner Qualifications ............................................................................ 13-8 Owners Barred from Participation [24 CFR 982.306(a) and (b)] ... 13-8 Leasing to Relatives [24 CFR 982.306(d), HCV GB p. 11-2] ....... 13-8 Conflict of Interest [24 CFR 982.161; HCV GB p. 8-19] .............. 13-8 Owner Actions That May Result in Disapproval of a Tenancy Request [24 CFR 982.306(c)] ........................................ 13-10 Legal Ownership of Unit .............................................................. 13-11 13-I.E. Non-Discrimination [HAP Contract – Form HUD-52641] ................ 13-11 PART II: HAP CONTRACTS ............................................................................................ 13-13 13-II.A. Overview ............................................................................................. 13-13 13-II.B. HAP Contract Contents ...................................................................... 13-14 13-II.C. HAP Contract Payments ..................................................................... 13-16 General .......................................................................................... 13-16 Owner Certification of Compliance.............................................. 13-16 Late HAP Payments [24 CFR 982.451(a)(5)] .............................. 13-17 Termination of HAP Payments [24 CFR 982.311(b)] .................. 13-17 13-II.D. Breach of HAP Contract [24 CFR 982.453] ....................................... 13-18 13-II.E. HAP Contract Term and Terminations ............................................... 13-19 13-II.F. Change In Ownership / Assignment of the HAP Contract [HUD-52641] ...................................................................................... 13-21 12.A.b Packet Pg. 1386 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-16 Chapter 14 PROGRAM INTEGRITY PART I: PREVENTING, DETECTING, AND INVESTIGATING ERRORS AND PROGRAM ABUSE ............................................................................................ 14-3 14-I.A. Preventing Errors and Program Abuse ................................................. 14-3 14-I.B. Detecting Errors and Program Abuse ................................................... 14-4 Quality Control and Analysis of Data ............................................ 14-4 Independent Audits and HUD Monitoring ..................................... 14-4 Individual Reporting of Possible Errors and Program Abuse ........ 14-4 14-I.C. Investigating Errors and Program Abuse .............................................. 14-5 When the PHA Will Investigate ..................................................... 14-5 Consent to Release of Information [24 CFR 982.516] ................... 14-5 Analysis and Findings..................................................................... 14-5 Consideration of Remedies ............................................................. 14-6 Notice and Appeals ......................................................................... 14-6 PART II: CORRECTIVE MEASURES AND PENALTIES ............................................... 14-7 14-II.A. Subsidy Under- or Overpayments ........................................................ 14-7 Corrections ...................................................................................... 14-7 Reimbursement ............................................................................... 14-7 14-II.B. Family-Caused Errors and Program Abuse .......................................... 14-8 Family Reimbursement to PHA [HCV GB pp. 22-12 to 22-13] .... 14-8 PHA Reimbursement to Family [HCV GB p. 22-12] ..................... 14-8 Prohibited Actions .......................................................................... 14-9 Penalties for Program Abuse .......................................................... 14-9 14-II.C. Owner-Caused Error or Program Abuse ............................................. 14-10 Owner Reimbursement to the PHA .............................................. 14-10 Prohibited Owner Actions ............................................................ 14-10 Remedies and Penalties ................................................................ 14-11 14-II.D. PHA-Caused Errors or Program Abuse .............................................. 14-12 Repayment to the PHA ................................................................. 14-12 PHA Reimbursement to Family or Owner ................................... 14-12 Prohibited Activities ..................................................................... 14-12 14-II.E. Criminal Prosecution .......................................................................... 14-13 14-II.F. Fraud and Program Abuse Recoveries ............................................... 14-14 12.A.b Packet Pg. 1387 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-17 Chapter 15 SPECIAL HOUSING TYPES [24 CFR 982 Subpart M] PART I: SINGLE ROOM OCCUPANCY [24 CFR 982.602 through 982.605] ................ 15-3 15-I.A. Overview ............................................................................................... 15-3 15-I.B. Payment Standard, Utility Allowance, and HAP Calculation .............. 15-3 15-I.C. Housing Quality Standards (HQS) ....................................................... 15-3 PART II: CONGREGATE HOUSING [24 CFR 982.606 through 982.609] ....................... 15-5 15-II.A. Overview ............................................................................................... 15-5 15-II.B. Payment Standard, Utility Allowance, and HAP Calculation .............. 15-6 15-II.C. Housing Quality Standards ................................................................... 15-6 PART III: GROUP HOME [24 CFR 982.610 through 982.614 and HCV GB p. 7-4] ......... 15-7 15-III.A. Overview ............................................................................................... 15-7 15-III.B. Payment Standard, Utility Allowance, and HAP Calculation .............. 15-7 15-III.C. Housing Quality Standards ................................................................... 15-8 PART IV: SHARED HOUSING [24 CFR 982.615 through 982.618] .................................. 15-9 15-IV.I. Overview ............................................................................................... 15-9 15-IV.B. Payment Standard, Utility Allowance and HAP Calculation ............... 15-9 15-IV.C. Housing Quality Standards ................................................................. 15-10 PART V: COOPERATIVE HOUSING [24 CFR 982.619]................................................ 15-11 15-V.A. Overview ............................................................................................. 15-11 15-V.B. Payment Standard, Utility Allowance and HAP Calculation ............. 15-11 15-V.C. Housing Quality Standards ................................................................. 15-11 PART VI: MANUFACTURED HOMES [24 CFR 982.620 through 982.624] .................. 15-13 15-VI.A. Overview ............................................................................................. 15-13 15-VI.B. Special Policies for Manufactured Home Owners Who Lease A Space ............................................................................ 15-13 Family Income .............................................................................. 15-13 Lease and HAP Contract .............................................................. 15-13 15-VI.C. Payment Standard, Utility Allowance and HAP Calculation ............. 15-14 Payment Standards ........................................................................ 15-14 Utility Allowance .......................................................................... 15-14 Space Rent .................................................................................... 15-14 Housing Assistance Payment ........................................................ 15-14 Rent Reasonableness .................................................................... 15-14 15-VI.D. Housing Quality Standards ................................................................. 15-15 12.A.b Packet Pg. 1388 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-18 PART VII: HOMEOWNERSHIP [24 CFR 982.625 through 982.643] ................................ 15-17 15-VII.A. Overview [24 CFR 982.625] .............................................................. 15-17 15-VII.B. Family Eligibility [24 CFR 982.627].................................................. 15-18 15-VII.C. Selection of Families [24 CFR 982.626] ............................................ 15-19 15-VII.D. Eligible Units [24 CFR 982.628] ........................................................ 15-19 15-VII.E. Additional PHA Requirements for Search and Purchase [24 CFR 982.629] ............................................................................... 15-20 15-VII.F. Homeownership Counseling [24 CFR 982.630] ................................ 15-21 15-VII.G. Home Inspections, Contract of Sale, and PHA Disapproval of Seller [24 CFR 982.631] ..................................................................... 15-22 Home Inspections ......................................................................... 15-22 Contract of Sale ............................................................................ 15-22 Disapproval of a Seller ................................................................. 15-22 15-VII.H. Financing [24 CFR 982.632] .............................................................. 15-23 15-VII.I. Continued Assistance Requirements; Family Obligations [24 CFR 982.633] ............................................................................... 15-23 15-VII.J. Maximum Term of Homeowner Assistance [24 CFR 982.634]......... 15-24 15-VII.K. Homeownership Assistance Payments and Homeownership Expenses [24 CFR 982.635] ............................................................... 15-24 15-VII.L. Portability [24 CFR 982.636, 982.637, 982.353(b) and (c), 982.552, 982.553] ............................................................................... 15-27 15-VII.M. Moving with Continued Assistance [24 CFR 982.637] .................... 15-27 15-VII.N. Denial or Termination of Assistance [24 CFR 982.638] .................... 15-28 12.A.b Packet Pg. 1389 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-19 Chapter 16 PROGRAM ADMINISTRATION PART I: ADMINISTRATIVE FEE RESERVE [24 CFR 982.155] ................................... 16-3 PART II: SETTING PROGRAM STANDARDS AND SCHEDULES .............................. 16-5 16-II.A. Overview ............................................................................................... 16-5 16-II.B. Payment Standards [24 CFR 982.503; HCV GB, Chapter 7] ............... 16-5 Updating Payment Standards .......................................................... 16-6 Exception Payment Standards [982.503(c)] ................................... 16-7 Unit-by-Unit Exceptions [24 CFR 982.503(b), 24 CFR 982.505(d), Notice PIH 2010-26] ..................................... 16-7 "Success Rate" Payment Standard Amounts [24 CFR 982.503(e)] ....................................................................... 16-8 Decreases in the Payment Standard below the Basic Range [24 CFR 982.503(d)] ........................................... 16-8 16-II.C. Utility Allowances [24 CFR 982.517] .................................................. 16-9 Air Conditioning ............................................................................. 16-9 Reasonable Accommodation .......................................................... 16-9 Utility Allowance Revisions ........................................................... 16-9 PART III: INFORMAL REVIEWS AND HEARINGS ...................................................... 16-11 16-III.A. Overview ............................................................................................. 16-11 16-III.B. Informal Reviews ................................................................................ 16-11 Decisions Subject to Informal Review ........................................ 16-11 Notice to the Applicant [24 CFR 982.554(a)] .............................. 16-12 Scheduling an Informal Review ................................................... 16-12 Informal Review Procedures [24 CFR 982.554(b)] ..................... 16-12 Informal Review Decision [24 CFR 982.554(b)] ......................... 16-13 16-III.C. Informal Hearings for Participants [24 CFR 982.555] ....................... 16-14 Decisions Subject to Informal Hearing ......................................... 16-14 Informal Hearing Procedures ........................................................ 16-16 16-III.D. Hearing and Appeal Provisions for Noncitizens [24 CFR 5.514] ................................................................................... 16-23 Notice of Denial or Termination of Assistance [24 CFR 5.514(d)] ........................................................................ 16-23 USCIS Appeal Process [24 CFR 5.514(e)] ................................... 16-24 Informal Hearing Procedures for Applicants [24 CFR 5.514(f)] ......................................................................... 16-24 Informal Hearing Procedures for Residents [24 CFR 5.514(f)] ......................................................................... 16-26 Retention of Documents [24 CFR 5.514(h)] ................................ 16-26 12.A.b Packet Pg. 1390 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-20 PART IV: OWNER OR FAMILY DEBTS TO THE PHA ................................................. 16-27 16-IV.A. Overview ............................................................................................. 16-27 16-IV.B. Repayment Policy ............................................................................... 16-28 Owner Debts to the PHA .............................................................. 16-28 Family Debts to the PHA .............................................................. 16-28 Repayment Agreement [24 CFR 792.103] ................................... 16-28 General Repayment Agreement Guidelines for Families ............. 16-28 Repayment Agreements Involving Improper Payments ............... 16-30 PART V: SECTION 8 MANAGEMENT ASSESSMENT PROGRAM (SEMAP) .......... 16-31 16-V.A. Overview ............................................................................................. 16-31 16-V.B. SEMAP Certification [24 CFR 985.101] ............................................ 16-32 HUD Verification Method ............................................................ 16-32 16-V.C. SEMAP Indicators [24 CFR 985.3 and form HUD-52648] ............... 16-33 SEMAP Indicators Chart .............................................................. 16-33 PART VI: RECORD KEEPING ......................................................................................... 16-37 16-VI.A. Overview ............................................................................................. 16-37 16-VI.B. Record Retention [24 CFR 982.158] .................................................. 16-37 16-VI.C. Records Management ......................................................................... 16-38 Privacy Act Requirements [24 CFR 5.212 and Form-9886] ........ 16-38 Upfront Income Verification (UIV) Records ............................... 16-38 Criminal Records .......................................................................... 16-39 Medical/Disability Records .......................................................... 16-39 Documentation of Domestic Violence, Dating Violence, Sexual Assault, or Stalking .............................. 16-39 PART VII: REPORTING AND RECORD KEEPING FOR CHILDREN WITH ENVIRONMENTAL INTERVENTION BLOOD LEAD LEVEL ................... 16-41 16-VII.A. Overview ............................................................................................. 16-41 16-VII.B. Reporting Requirement [24 CFR 35.1225(e)] .................................... 16-41 16-VII.C. Data Collection and Record Keeping [24 CFR 35.1225(f)] ............... 16-41 PART VIII: DETERMINATION OF INSUFFICIENT FUNDING ...................................... 16-43 16-VIII.A. Overview ........................................................................................... 16-43 16-VIII.B. Methodology ..................................................................................... 16-43 PART IX: VIOLENCE AGAINST WOMEN ACT (VAWA): NOTIFICATION, DOCUMENTATION, CONFIDENTIALITY ................................................... 16-45 16-IX.A. Overview ............................................................................................. 16-45 16-IX.B. Definitions [24 CFR 5.2003] ............................................................... 16-45 16-IX.C. Notification [24 CFR 5.2005(a), 42 USC 13925] ............................... 16-47 Notification to Public .................................................................... 16-47 Notification to Program Applicants and Participants [24 CFR 5.2005(a)(1)] .................................................................. 16-48 Notification to Owners and Managers [24 CFR 5.2005(a)(2)] .................................................................. 16-48 16-IX.D. Documentation [24 CFR 5.2007] ........................................................ 16-49 Conflicting Documentation [24 CFR 5.2007(e)] .......................... 16-50 12.A.b Packet Pg. 1391 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-21 Discretion to Require No Formal Documentation [24 CFR 5.2007(d)] ...................................................................... 16-50 16-IX.E. CONFIDENTIALITY [24 CFR 5.2007(b)(4)] .................................... 16-50 Exhibit 16-1: Sample Notice to Housing Choice Voucher Applicants and Participants Regarding the Violence Against Women Act (VAWA) .................................... 16-51 Exhibit 16-2: Sample Notice to Housing Choice Voucher Owners and Managers Regarding the Violence Against Women Act (VAWA) .................................... 16-55 Chapter 17 PROJECT-BASED VOUCHERS PART I: GENERAL REQUIREMENTS ............................................................................ 17-3 17-I.A. Overview [24 CFR 983.5] .................................................................... 17-3 17-I.B. Tenant-Based vs. Project-Based Voucher Assistance [24 CFR 983.2] ..................................................................................... 17-3 17-I.C. Relocation Requirements [24 CFR 983.7]............................................ 17-4 17-I.D. Equal Opportunity Requirements [24 CFR 983.8] ............................... 17-4 PART II: PBV OWNER PROPOSALS ............................................................................... 17-5 17-II.A. Overview ............................................................................................... 17-5 17-II.B. Owner Proposal Selection Procedures [24 CFR 983.51(b)] ................. 17-5 Solicitation and Selection of PBV Proposals [24 CFR 983.51(c)] ......................................................................... 17-6 PHA-Owned Units [24 CFR 983.51(e), 983.59, and Notice PIH 2015-05] ................................................................ 17-9 PHA Notice of Owner Selection [24 CFR 983.51(d)] .................. 17-10 17-II.C. Housing Type [24 CFR 983.52] ......................................................... 17-10 17-II.D. Prohibition of Assistance for Certain Units ........................................ 17-11 Ineligible Housing Types [24 CFR 983.53] ................................. 17-11 Subsidized Housing [24 CFR 983.54] .......................................... 17-11 17-II.E. Subsidy Layering Requirements [24 CFR 983.55, FR Notice 11/24/08, FR Notice 7/9/10, and FR Notice 6/25/14] ...................................................................... 17-12 17-II.F. Cap On Number of PBV Units in Each Project ................................. 17-12 25 Percent per Project Cap [24 CFR 983.56(a)] ....................................................................... 17-12 Exceptions to 25 Percent per Project Cap [24 CFR 983.56(b)] ...................................................................... 17-13 Promoting Partially-Assisted Buildings [24 CFR 983.56(c)] ....................................................................... 17-13 17-II.G. Site Selection Standards .................................................................... 17-14 Compliance with PBV Goals, Civil Rights Requirements, and HQS Site Standards [24 CFR 983.57(b)] ............................... 17-14 Existing and Rehabilitated Housing Site and Neighborhood Standards [24 CFR 983.57(d)] ...................................................... 17-15 New Construction Site and Neighborhood Standards [24 CFR 983.57(e)] ....................................................................... 17-15 12.A.b Packet Pg. 1392 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-22 17-II.H. Environmental Review [24 CFR 983.58] ........................................... 17-16 PART III: DWELLING UNITS ........................................................................................... 17-17 17-III.A. Overview ............................................................................................. 17-17 17-III.B. Housing Quality Standards [24 CFR 983.101] ................................... 17-17 Lead-based Paint [24 CFR 983.101(c)] ........................................ 17-17 17-III.C. Housing Accessibility for Persons with Disabilities .......................... 17-17 17-III.D. Inspecting Units .................................................................................. 17-18 Pre-selection Inspection [24 CFR 983.103(a)] ............................. 17-18 Pre-HAP Contract Inspections [24 CFR 983.103(b)] ................... 17-18 Turnover Inspections [24 CFR 983.103(c)] .................................. 17-18 Annual/Biennial Inspections [24 CFR 983.103(d), FR Notice 6/25/14] ....................................................................... 17-18 Other Inspections [24 CFR 983.103(e)] ....................................... 17-18 Inspecting PHA-Owned Units [24 CFR 983.103(f)] .................... 17-19 PART IV: REHABILITATED AND NEWLY CONSTRUCTED UNITS ......................... 17-21 17-IV.A. Overview [24 CFR 983.151] .............................................................. 17-21 17-IV.B. Agreement to Enter into HAP Contract .............................................. 17-21 Content of the Agreement [24 CFR 983.152(d)] .......................... 17-21 Execution of the Agreement [24 CFR 983.153] ......................................................................... 17-22 17-IV.C. Conduct of Development Work .......................................................... 17-23 Labor Standards [24 CFR 983.154(b)] ......................................... 17-23 Equal Opportunity [24 CFR 983.154(c)] ...................................... 17-23 Owner Disclosure [24 CFR 983.154(d) and (e)] .......................... 17-23 17-IV.D. Completion of Housing....................................................................... 17-24 Evidence of Completion [24 CFR 983.155(b)] ............................ 17-24 PHA Acceptance of Completed Units [24 CFR 983.156] ............ 17-24 PART V: HOUSING ASSISTANCE PAYMENTS CONTRACT (HAP) ........................ 17-25 17-V.A. Overview ............................................................................................. 17-25 17-V.B. HAP Contract Requirements .............................................................. 17-25 Contract Information [24 CFR 983.203] ...................................... 17-25 Execution of the HAP Contract [24 CFR 983.204] ...................... 17-26 Term of HAP Contract [24 CFR 983.205] ................................... 17-26 Statutory Notice Requirements: Contract Termination or Expiration [24 CFR 983.206] .................................................. 17-28 Remedies for HQS Violations [24 CFR 983.208(b)] ................... 17-28 17-V.C. Amendments to the HAP Contract ..................................................... 17-29 Substitution of Contract Units [24 CFR 983.207(a)].................... 17-29 Addition of Contract Units [24 CFR 983.207(b)] ........................ 17-29 17-V.D. HAP Contract Year, Anniversary and Expiration Dates [24 CFR 983.207(b) and 983.302(e)] ................................................. 17-29 17-V.E. Owner Responsibilities Under the HAP [24 CFR 983.210] ............... 17-30 17-V.F. Additional HAP Requirements ........................................................... 17-31 Housing Quality and Design Requirements [24 CFR 983.101(e) and 983.208(a)] ........................................... 17-31 12.A.b Packet Pg. 1393 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-23 Vacancy Payments [24 CFR 983.352(b)] ..................................... 17-31 PART VI: SELECTION OF PBV PROGRAM PARTICIPANTS ...................................... 17-33 17-VI.A. Overview ............................................................................................. 17-33 17-VI.B. Eligibility for PBV Assistance [24 CFR 983.251(a) and (b)] ............ 17-33 In-Place Families [24 CFR 983.251(b)] ....................................... 17-34 17-VI.C. Organization of the Waiting List [24 CFR 983.251(c)] ........................................................................... 17-35 17-VI.D. Selection From the Waiting List [24 CFR 983.251(c)] ........................................................................... 17-35 Income Targeting [24 CFR 983.251(c)(6)] .................................. 17-35 Units with Accessibility Features [24 CFR 983.251(c)(7)] .......... 17-35 Preferences [24 CFR 983.251(d), FR Notice 11/24/08] ............... 17-36 17-VI.E. Offer of PBV Assistance .................................................................... 17-37 Refusal of Offer [24 CFR 983.251(e)(3)] ..................................... 17-37 Disapproval by Landlord [24 CFR 983.251(e)(2)] ....................... 17-37 Acceptance of Offer [24 CFR 983.252] ....................................... 17-37 17-VI.F. Owner Selection of Tenants ............................................................... 17-38 Leasing [24 CFR 983.253(a)] ....................................................... 17-38 Filling Vacancies [24 CFR 983.254(a)] ........................................ 17-38 Reduction in HAP Contract Units Due to Vacancies [24 CFR 983.254(b)] .................................................................... 17-38 17-VI.G. Tenant Screening [24 CFR 983.255] .................................................. 17-39 PHA Responsibility ...................................................................... 17-39 Owner Responsibility ................................................................... 17-39 PART VII: OCCUPANCY .................................................................................................... 17-41 17-VII.A. Overview ............................................................................................. 17-41 17-VII.B. Lease [24 CFR 983.256] ..................................................................... 17-41 Form of Lease [24 CFR 983.256(b)] ............................................ 17-41 Lease Requirements [24 CFR 983.256(c)] ................................... 17-41 Tenancy Addendum [24 CFR 983.256(d)] ................................... 17-42 Initial Term and Lease Renewal [24 CFR 983.256(f)] ................. 17-42 Changes in the Lease [24 CFR 983.256(e)] .................................. 17-42 Owner Termination of Tenancy [24 CFR 983.257] ..................... 17-43 Continuation of Housing Assistance Payments [24 CFR 983.258] ........................................................................ 17-43 Security Deposits [24 CFR 983.259] ............................................ 17-44 17-VII.C. Moves ................................................................................................. 17-45 Overcrowded, Under-Occupied, and Accessible Units [24 CFR 983.260] ......................................................................... 17-45 Family Right to Move [24 CFR 983.261] .................................... 17-46 17-VII.D. Exceptions to the Occupancy Cap [24 CFR 983.262] ........................ 17-47 12.A.b Packet Pg. 1394 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) Administrative Plan -Table of Contents © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use TOC-24 PART VIII: DETERMINING RENT TO OWNER ............................................................... 17-49 17-VIII.A. Overview ........................................................................................... 17-49 17-VIII.B. Rent Limits [24 CFR 983.301] ......................................................... 17-49 Certain Tax Credit Units [24 CFR 983.301(c)] ............................ 17-49 Reasonable Rent [24 CFR 983.301(e) and 983.302(c)(2)] .......... 17-50 Use of FMRs, Exception Payment Standards, and Utility Allowances [24 CFR 983.301(f)] ............................... 17-51 Redetermination of Rent [24 CFR 983.302]................................. 17-52 PHA-Owned Units [24 CFR 983.301(g)] ..................................... 17-52 17-VIII.C. Reasonable Rent [24 CFR 983.303] ................................................. 17-53 When Rent Reasonable Determinations Are Required ................ 17-53 How to Determine Reasonable Rent ............................................. 17-53 PHA-Owned Units ........................................................................ 17-53 Owner Certification of Reasonable Rent ...................................... 17-54 17-VIII.D. Effect of Other Subsidy and Rent Control ........................................ 17-54 Other Subsidy [24 CFR 983.304] ................................................. 17-54 Rent Control [24 CFR 983.305] ................................................... 17-54 PART IX: PAYMENTS TO OWNER ................................................................................. 17-55 17-IX.A. Housing Assistance Payments [24 CFR 983.351] .............................. 17-55 17-IX.B. Vacancy Payments [24 CFR 983.352]................................................ 17-55 17-IX.C. Tenant Rent to Owner [24 CFR 983.353] .......................................... 17-57 Tenant and PHA Responsibilities ................................................. 17-57 Utility Reimbursements ................................................................ 17-57 17-IX.D. Other Fees and Charges [24 CFR 983.354] ........................................ 17-58 Meals and Supportive Services ..................................................... 17-58 Other Charges by Owner .............................................................. 17-58 Chapter 18 – Continuum of Care Program…………………………………19-1 through 19-28 Chapter 19 – HOME TENANT BASED RENTAL ASSISTANCE.............20-1 through 20-30 Chapter 20 – TEMPORARY POLICY SUPPLEMENT..............................20-1 through 20-30 Chapter 21 – EMERGENCY HOUSING VOUCHERS (EHVs) ................20-1 through 20-30 12.A.b Packet Pg. 1395 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Intro-I Introduction ABOUT THE REFERENCES CITED IN THE MODEL ADMINISTRATIVE PLAN AUTHORITIES FOR POLICIES IN THE MODEL ADMINISTRATIVE PLAN The authority for PHA policies is derived from many sources. Primary among these sources are federal statues, federal regulations and guidance issued by HUD. State law also directs PHA policy. State law must be followed where such law exists and does not conflict with federal regulations. Industry practice may also be used to develop policy as long as it does not conflict with federal requirements or prohibitions. HUD HUD provides the primary source of PHA policy through federal regulations, HUD notices and handbooks. Compliance with federal regulations, current HUD notices and current HUD handbooks is mandatory. HUD also provides guidance to PHAs through other means such as HUD-published guidebooks, expired HUD notices, and expired handbooks. Basing PHA policy on HUD guidance is optional, as long as PHA policies comply with federal law, federal regulations and mandatory policy. Because HUD has already determined that the guidance it provides is consistent with mandatory policies, PHA reliance on HUD guidance provides the PHA with a “safe harbor.” Material posted on the HUD website can provide further clarification of HUD policies . For example, FAQs on the HUD website can provide direction on the application of federal regulations in various aspects of the program. State Law Where there is no mandatory federal guidance, PHAs must comply with state law, if it exists. Where state law is more restrictive than federal law, but does not conflict with it, the PHA should follow the state law. Industry Practice Where no law or HUD authority exists on a particular subject, industry practice may support PHA policy. Industry practice refers to a way of doing things or a policy that has been adopted by a majority of PHA’s. RESOURCES CITED IN THE MODEL ADMINISTRATIVE PLAN The model administrative plan cites several documents. Where a document or resource is cited frequently, it may be abbreviated. Where it is cited only once or twice, the model administrative plan may contain the entire name of the document or resource. Following is a key to abbreviations used for various sources that are frequently cited in the administrative plan and a list of references and document locations that are referenced in the model administrative plan or that may be helpful to you. 12.A.b Packet Pg. 1396 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Intro-II Abbreviations Throughout the model administrative plan, abbreviations are used to designate certain documents in citations. The following is a table of abbreviations of documents cited in the model administrative plan. Abbreviation Document CFR Code of Federal Regulations HCV GB Housing Choice Voucher Program Guidebook (7420.10G), April 2001. HUD-50058 IB HUD-50058 Instruction Booklet RHIIP FAQs Rental Housing Integrity Improvement Program (RHIIP) Frequently Asked Questions. VG PIH Notice 2004-01 Verification Guidance, March 9, 2004. HB 4350.3 Occupancy Requirements of Subsidized Multifamily Housing Programs Resources and Where to Find Them Following is a list of resources helpful to the PHA or referenced in the model administrative plan, and the online location of each. Document and Location Code of Federal Regulations https://www.ecfr.gov/ Earned Income Disregard FAQ https://www.hud.gov/program_offices/public_indian_housing/phr/about/ao_faq_eid Eligibility of Students for Assisted Housing Under Section 8 of the U.S. Housing Act of 1937; Final Rule http://edocket.access.gpo.gov/2008/pdf/E8-19435.pdf Enterprise Income Verification (EIV) System, Security Procedures for Upfront Income Verification data https://www.hud.gov/sites/documents/EIVSECGUIDEPHA.PDF Executive Order 11063 https://www.archives.gov/federal-register/codification/executive-order/11063.html 12.A.b Packet Pg. 1397 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Intro-III Federal Register https://www.federalregister.gov/ Housing Choice Voucher Program Guidebook (7420.10G) Updated Chapters https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/guidebook HUD-50058 Instruction Booklet http://portal.hud.gov/hudportal/documents/huddoc?id=50058i.pdf Joint Statement of the Department of Housing and Urban Development and the Department of Justice, issued May 17, 2004 https://www.justice.gov/sites/default/files/crt/legacy/2010/12/14/joint_statement_ra.pdf Final Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition Against National Origin Discrimination Affecting Limited English Proficient Persons, published January 22, 2007 https://www.lep.gov/guidance/HUD_guidance_Jan07.pdf Notice PIH 2010-26 (HA), Nondiscrimination and Accessibility Notice https://www.hud.gov/sites/documents/DOC_8993.PDF Notice PIH 2017-12, Administrative Guidance for Effective and Mandated Use of the Enterprise Income Verification (EIV) System https://www.hud.gov/sites/documents/PIH2017-12EIVNOTICE.PDF Notice PIH 2012-10, Verification of Social Security Numbers (SSNs) and Supplemental Security Income (SSI) Benefits; and Effective Use of the Enterprise Income Verification (EIV) System’s Identity Verification Report http://portal.hud.gov/huddoc/pih2012-10.pdf OMB Circular A-133 https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/circulars/A133/a133.pdf 12.A.b Packet Pg. 1398 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Intro-IV Project-Based Voucher Program; Final Rule http://www.gpo.gov/fdsys/pkg/FR-2005-10-13/pdf/05- 20035.pdf VAWA Final Rule http://www.gpo.gov/fdsys/pkg/FR-2010-10-27/pdf/2010-26914.pdf The HUD website is http://portal.hud.gov/hudportal/HUD. Guidebooks, handbooks and other HUD resources may be found at the HUDClips website: http://portal.hud.gov/hudportal/HUDsrc=/program_offices/administration/hudclips. 12.A.b Packet Pg. 1399 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use Page 1-1 Chapter 1 OVERVIEW OF THE PROGRAM AND PLAN INTRODUCTION The PHA receives its funding for the Section 8 Housing Choice Voucher (HCV) program, HOME and CDBG, and the Continuum of Care program from the Department of Housing and Urban Development. The PHA is not a federal department or agency. A public housing agency (PHA) is a governmental or public body, created and authorized by state law to develop and operate housing and housing programs for low-income families. The PHA enters into contracts with HUD to administer the program requirements on behalf of HUD. The PHA must ensure compliance with federal laws, regulations and notices and must establish policy and procedures to clarify federal requirements and to ensure consistency in program operation. This chapter contains information about the PHA and its programs. It also contains information about the purpose, intent and use of the plan and guide. There are three parts to this chapter: Part I: The Public Housing Agency (PHA). This part includes a description of the PHA, its jurisdiction, its programs, and its mission and intent. Part II: The Section 8 HCV Program. This part contains information about the Housing Choice Voucher program operation, roles and responsibilities, and partnerships. Part III: The Section 8 HCV Administrative Plan. This part discusses the purpose and organization of the plan and its revision requirements. 12.A.b Packet Pg. 1400 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use Page 1-2 PART I: THE PHA 1-I.A. OVERVIEW This part explains the origin of the PHA’s creation and authorization, the general structure of the organization, and the relationship between the PHA Board and staff. 1-I.B. ORGANIZATION AND STRUCTURE OF THE PHA The programs are funded by the federal government and administered by the Housing Authority of the City of Santa Monica for the jurisdiction of City of Santa Monica in Los Angeles County. The officials of a PHA are appointed in accordance with state housing law as commissioners or, collectively, as the board of commissioners. Commissioners are and generally serve in the same capacity as the directors of a corporation, establishing policies under which the PHA conducts business, ensuring that policies are followed by PHA staff and ensuring that the PHA is successful in its mission. The board is responsible for preserving and expanding the agency’s resources and assuring the agency’s continued viability. Formal actions of the PHA are taken through written resolutions, adopted by the board of commissioners and entered into the official records of the PHA. 1-I.C. PHA MISSION The purpose of a mission statement is to communicate the purpose of the agency to people inside and outside of the agency. It provides guiding direction for developing strategy, defining critical success factors, searching out key opportunities, making resource allocation choices, satisfying clients and stakeholders, and making decisions. PHA Policy The mission of the PHA is the same as that of the Department of Housing & Urban Development: To create strong, sustainable, inclusive communities and quality affordable homes for all. 1-I.D. THE PHA’S PROGRAMS The following programs are included under this administrative plan: PHA Policy The PHA’s administrative plan is applicable to the operation of the Section 8 Housing Choice Voucher (HCV) program [including the Family Self Sufficiency (FSS) program], including project-based vouchers, the Continuum of Care (CoC) program, and the HOME voucher program. 12.A.b Packet Pg. 1401 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use Page 1-3 1-I.E. THE PHA’S COMMITMENT TO ETHICS AND SERVICE As a public service agency, the PHA is committed to providing excellent service to program participants, owners, and to the community. The PHA’s standards include: • Administer applicable federal and state laws and regulations to achieve high ratings in performance measurement indicators while maintaining efficiency in program operation to ensure fair and consistent treatment of clients served. • Provide decent, safe, and sanitary housing – in compliance with program housing quality standards – for very low-income families while ensuring that family rents are fair, reasonable, and affordable. • Encourage self sufficiency of participant families and assist in the expansion of family opportunities which address educational, socio-economic, recreational and other human services needs. • Promote fair housing and the equal opportunity for very low-income families of all ethnic backgrounds to experience freedom of housing choice. • Promote a housing program which maintains quality service and integrity while providing an incentive to private property owners to rent to very low-income families. • Promote a market-driven housing program that will help qualified low income families to be successful in obtaining affordable housing and increase the supply of housing choices for such families. • Create positive public awareness and expand the level of family, owner, and community support in accomplishing the PHA’s mission. • Attain and maintain a high level of standards and professionalism in day-to-day management of all program components. • Administer an efficient, high-performing agency through continuous improvement of the PHA’s support systems and a high level of commitment to our employees and their development. The PHA will make every effort to keep program participants informed of program rules and regulations, and to advise participants of how the program rules affect them. 12.A.b Packet Pg. 1402 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use Page 1-4 PART II: THE SECTION 8 HOUSING CHOICE VOUCHER (HCV) PROGRAM 1-II.A. OVERVIEW AND HISTORY OF THE PROGRAM The intent of this section is to provide the public and staff with information related to the overall operation of the programs. There have been many changes to the programs since their inception, a brief history of the program will assist the reader to better understand programs. The United States Housing Act of 1937 (the “Act”) is responsible for the birth of federal housing program initiatives. The Act was intended to provide financial assistance to states and cities for public works projects, slum clearance and the development of affordable housing developments for low-income residents. The Housing and Community Development (HCD) Act of 1974 created a new federally assisted housing program – the Section 8 Existing program (also known as the Section 8 Certificate program). The HCD Act represented a significant shift in federal housing strategy from locally owned public housing to privately owned rental housing. Under the Certificate program, federal housing assistance payments were made directly to private owners of rental housing, where this housing was made available to lower-income families. Eligible families were able to select housing in the private rental market. Assuming that the housing met certain basic physical standards of quality (“housing quality standards”) and was within certain HUD-established rent limitations (“fair market rents”), the family would be able to receive rental assistance in the housing unit. Family contribution to rent was generally set at 30 percent of the family’s adjusted income, with the remainder of the rent paid by the program. Another unique feature of the Certificate program was that the rental assistance remained with the eligible family, if the family chose to move to another privately-owned rental unit that met program requirements (in contrast to the public housing program where the rental assistance remains with the unit, should the family decide to move). Consequently, the Certificate program was characterized as tenant-based assistance, rather than unit-based assistance. The Housing and Community Development (HCD) Act of 1987 authorized a new version of tenant-based assistance – the Section 8 Voucher program. The Voucher program was very similar to the Certificate program in that eligible families were able to select housing in the private rental market and receive assistance in that housing unit. However, the Voucher program permitted families more options in housing selection. Rental housing still had to meet the basic housing quality standards, but there was no fair market rent limitation on rent. In addition, family contribution to rent was not set at a limit of 30 percent of adjusted income. Consequently, depending on the actual rental cost of the unit selected, a family might pay more or less than 30 percent of their adjusted income for rent. 12.A.b Packet Pg. 1403 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use Page 1-5 From 1987 through 1999, public housing agencies managed both the Certificate and Voucher tenant-based assistance programs, with separate rules and requirements for each. From 1994 through 1998, HUD published a series of new rules, known as “conforming” rules, to more closely combine and align the two similar housing programs, to the extent permitted by the law. In 1998, the Quality Housing and Work Responsibility Act (QHWRA) – also known as the Public Housing Reform Act – was signed into law. QHWRA eliminated all statutory differences between the Certificate and Voucher tenant-based programs and required that the two programs be merged into a single tenant-based assistance program, now known as the Section 8 Housing Choice Voucher (HCV) program. The Section 8 HCV program was modeled closely on the pre-merger Voucher program. However, unlike the pre-merger Voucher program, the Section 8 HCV program requires an assisted family to pay at least 30 percent of adjusted income for rent. The transition of assistance from the Certificate and Voucher programs to the new Section 8 HCV program began in October 1999. By October 2001, all families receiving tenant-based assistance were converted to the Section 8 HCV program. 1-II.B. PROGRAM BASICS The purpose of the voucher programs is to provide rental assistance to eligible families. The rules and regulations of the programs are determined by the U.S. Department of Housing and Urban Development. The PHA is afforded choices in the operation of the programs, which are included in the PHA’s administrative plan, a document approved by the board of commissioners of the PHA. The programs offer mobility to eligible families because they may search for suitable housing anywhere in the PHA’s jurisdiction and may also be eligible to move under portability to other PHAs’ jurisdictions. When a family is determined to be eligible for the program and funding is available, the PHA issues the family a housing voucher. When the family finds a suitable housing unit and f unding is available, the PHA will enter into a contract with the owner and the family will enter into a lease with the owner. Each party makes their respective payment to the owner so that the owner receives full rent. Even though the family is determined to be eligible for the program, the owner has the responsibility of approving the family as a suitable renter. The PHA continues to make payments to the owner as long as the family is eligible, and the housing unit continues to qualify under the program. 1-II.C. THE SECTION 8 HCV PARTNERSHIPS To administer the voucher programs, the PHA enters into a contractual relationship with HUD (Consolidated Annual Contributions Contract, grant agreement, or contract). The PHA also 12.A.b Packet Pg. 1404 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use Page 1-6 enters into contractual relationships with the assisted family and the owner or landlord of the housing unit. For the voucher programs to work and be successful, all parties involved – HUD, the PHA, the owner, and the family – have important roles to play. The roles and responsibilities of all parties are defined in federal regulations and in legal documents that pa rties execute to participate in the program. The chart on the following page illustrates key aspects of these relationships. 12.A.b Packet Pg. 1405 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use Page 1-7 The Relationships: Congress Appropriates Funding HUD Provides Funding To PHA PHA Administers Program Owner / Landlord Family (Program Participant) Voucher specifies Family Obligations Contract specifies Owner and PHA Obligations Lease specifies Tenant and Landlord Obligations HUD Program Regulations and documents specify PHA Obligations and Funding 12.A.b Packet Pg. 1406 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use Page 1-8 What Does HUD Do? HUD has the following major responsibilities: • Develop regulations, requirements, handbooks, notices and other guidance to implement housing program legislation passed by Congress; • Allocate program funds to PHAs; • Provide technical assistance to PHAs on interpreting and applying program requirements; • Monitor PHA compliance with program requirements and PHA performance in program administration. What Does the PHA Do? The PHA administers the programs under contract with HUD and has the following major responsibilities: • Establish local policies to administer the program; • Review applications from interested applicant to determine whether they are eligible for the program; • Maintain waiting list and select families for admission ; • Issue vouchers to eligible families and provide information on how to lease a unit; • Conduct outreach to owners, with special attention to owners outside areas of poverty or minority concentration; • Approve the rental unit (including assuring compliance with housing quality standards a nd rent reasonableness), the owner, and the tenancy; • Make housing assistance payments to the owner in a timely manner; • Recertify families for continued eligibility under the program; • Ensure that owners and families comply with their contractual obligations; • Provide families and owners with prompt, professional service; • Comply with all fair housing and equal opportunity requirements , HUD regulations and requirements, the Annual Contributions Contract, HUD-approved applications for funding, the PHA’s administrative plan, and other applicable federal, state and local laws. PHA Policy General Complaints If a family disagrees with an action or inaction of the PHA, the Housing Specialist will make every effort to resolve complaints from families. If the complaints are not resolved by the initial Housing Specialist, it will be referred to a peer for review, however as a general practice, families will not be assigned to a new Housing Specialist unless the PHA rotates 12.A.b Packet Pg. 1407 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use Page 1-9 caseloads. If a family feels they require different attention related to a reasonable accommodation, the request must be made in writing and must follow the guidelines and procedures detailed in Chapter 2 of this Plan. What Does the Owner Do? The owner has the following major responsibilities: • Screen families who apply for tenancy, to determine suitability as renters. - The PHA can provide some information to the owner, but the primary responsibility for tenant screening rests with the owner. - The owner should consider family background factors such as rent and bill-paying history, history of caring for property, respecting the rights of others to peaceful enjoyment of the property, compliance with essential conditions of tenancy, whether the family is engaging in drug-related criminal activity or other criminal activity that might threaten others. • Comply with the terms of the contract, executed with the PHA; • Comply with all applicable fair housing laws and do not discriminate against anyone; • Maintain the housing unit in accordance with Standards and make necessary repairs in a timely manner; • Collect rent due from the assisted family and otherwise comply with and enforce provisions of the dwelling lease. What Does the Family Do? The family has the following responsibilities: • Provide the PHA with complete and accurate information, determined by the PHA to be necessary for administration of the program; • Make their best and most timely efforts to locate qualified and suitable housing; • Attend all appointments scheduled by the PHA; • Allow the PHA to inspect the unit at reasonable times and after reasonable notice; • Take responsibility for care of the housing unit, including any violations of housing standards caused by the family; • Comply with the terms of the lease with the owner; • Comply with the family obligations of the voucher; • Not commit serious violations of the lease; • Not engage in drug-related or violent criminal activity; 12.A.b Packet Pg. 1408 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use Page 1-10 • Notify the PHA and the owner before moving or terminating the lease; • Use the assisted unit only for residence and as the sole residence of the family. Not sublet the unit, assign the lease, or have any interest in the unit; • Promptly notify the PHA of any changes in family composition; • Not commit fraud, bribery, or any other corrupt or criminal act in connection with any housing programs. 1-II.D. APPLICABLE REGULATIONS Applicable regulations include: • 24 CFR Part 5: General Program Requirements • 24 CFR Part 8: Nondiscrimination • 24 CFR Part 100: The Fair Housing Act • 24 CFR Part 982: Section 8 Tenant-Based Assistance: Housing Choice Voucher Program • 24 CFR Part 983: Project-Based Vouchers • 24 CFR Part 985: The Section 8 Management Assessment Program (SEMAP) 12.A.b Packet Pg. 1409 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use Page 1-11 PART III: THE SECTION 8 HCV ADMINISTRATIVE PLAN 1-III.A. OVERVIEW AND PURPOSE OF THE PLAN The administrative plan is required by HUD. The purpose of the administrative plan is to establish policies for carrying out the programs in a manner consistent with HUD requirements and local goals and objectives contained in the PHA’s agency plan. This Administrative Plan is a supporting document to the PHA agency plan and is available for public review as required by CFR 24 Part 903. This administrative plan is set forth to define the PHA's local policies for operation of the housing programs in accordance with federal laws and regulations. All issues related to Section 8 HCV program not addressed in this document are governed by such federal regulations, HUD handbooks and guidebooks, notices and other applicable law. The policies in this administrative plan have been designed to ensure compliance with the contracts and all HUD-approved applications for program funding. The PHA is responsible for complying with all changes in HUD regulations pertaining to programs. If such changes conflict with this plan, HUD regulations will have precedence. Administration of the programs and the functions and responsibilities of PHA staff shall be in compliance with the PHA's personnel policy and HUD’s regulations as well as all federal, state and local fair housing laws and regulations. 1-III.B. CONTENTS OF THE PLAN [24 CFR 982.54] The HUD regulations at 24 CFR 982.54 define the policies that must be included in the administrative plan. They are as follow: • Selection and admission of applicants from the PHA waiting list, including any PHA admission preferences, procedures for removing applicant names from the waiting list, and procedures for closing and reopening the PHA waiting list (Chapter 4); • Issuing or denying vouchers, including PHA policy governing the voucher term and any extensions of the voucher term. If the PHA decides to allow extensions of the voucher term, the PHA administrative plan must describe how the PHA determines whether to grant extensions, and how the PHA determines the length of any extension (Chapter 5); • Any special rules for use of available funds when HUD provides f unding to the PHA for a special purpose (e.g., desegregation), including funding for specified families or a specified category of families (Chapter 4); 12.A.b Packet Pg. 1410 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use Page 1-12 • Occupancy policies, including definition of what group of persons may qualify as a 'family', definition of when a family is considered to be 'continuously assisted'; standards for denying admission or terminating assistance based on criminal activity or alcohol abuse in accordance with 982.553 (Chapters 3 and 12); • Encouraging participation by owners of suitable units located outside areas of low income or minority concentration (Chapter 13); • Assisting a family that claims that illegal discrimination has prevented the family from leasing a suitable unit (Chapter 2); • Providing information about a family to prospective owners (Chapters 3 and 9); • Disapproval of owners (Chapter 13); • Subsidy standards (Chapter 5); • Family absence from the dwelling unit (Chapter 12); • How to determine who remains in the program if a family breaks up (Chapter 3); • Informal review procedures for applicants (Chapter 16); • Informal hearing procedures for participants (Chapter 16); • The process for establishing and revising voucher payment standards, including policies on administering decreases in the payment standard during the HAP contract term (Chapter 16); • The method of determining that rent to owner is a reasonable rent (initially and during the term of a HAP contract) (Chapter 8); • Special policies concerning special housing types in the program (e.g., use of shared housing) (Chapter 15); • Policies concerning payment by a family to the PHA of amounts the family owes the PHA (Chapter 16); • Interim redeterminations of family income and composition (Chapter 11); • Restrictions, if any, on the number of moves by a participant family (Chapter 10); • Approval by the board of commissioners or other authorized officials to charge the administrative fee reserve (Chapter 16); • Procedural guidelines and performance standards for conducting required housing quality standards inspections (Chapter 8); and • PHA screening of applicants for family behavior or suitability for tenancy (Chapter 3). • Special Needs Programs (Chapter 17). 12.A.b Packet Pg. 1411 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use Page 1-13 Mandatory vs. Discretionary Policy HUD makes a distinction between: • Mandatory policies: those driven by legislation, regulations, current handbooks, notices, and legal opinions, and • Optional, non-binding guidance, including guidebooks, notices that have expired and recommendations from individual HUD staff. HUD expects PHAs to adopt local policies and procedures that are consistent with mandatory policies in areas where HUD gives the PHA discretion. The PHA's administrative plan is the foundation of those policies and procedures. HUD’s directions require PHAs to make policy choices that provide sufficient guidance to staff and ensure consistency to program applicants and participants. Creating policies based upon HUD guidance is not mandatory but provides a PHA with a “safe harbor.” HUD has already determined that the recommendations and suggestions it makes are consistent with mandatory policies. If a PHA adopts an alternative strategy, it must make its own determination that the alternative approach is consistent with legislation, regulations, and other mandatory requirements. There may be very good reasons for adopting a policy or procedure that is different than HUD’s safe harbor, but PHAs should carefully think through those decisions. 1-III.C. ORGANIZATION OF THE PLAN The Plan is organized to provide information to users in particular areas of operation. 1-III.D. UPDATING AND REVISING THE PLAN The PHA will revise this administrative plan as needed to comply with changes in HUD regulations. The original plan and any changes must be approved by the board of commissioners of the agency, the pertinent sections included in the Agency Plan, and a copy provided to HUD. PHA Policy The PHA will review and update the plan as needed, to reflect changes in regulations and PHA operations, or when needed to ensure staff consistency in operation. The Plan will become effective the date it is approved by City Council. 12.A.b Packet Pg. 1412 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. Page 2-1 Chapter 2: FAIR HOUSING AND EQUAL OPPORTUNITY INTRODUCTION This chapter explains the laws and HUD regulations requiring PHAs to affirmatively further civil rights and fair housing in all federally assisted housing programs. The letter and spirit of these laws are implemented through consistent policy and processes. The responsibility to further nondiscrimination pertains to all areas of the PHA’s housing voucher operations. This chapter describes HUD regulations and PHA policies related to these topics in three parts: Part I: Nondiscrimination. This part presents the body of laws and regulations governing the responsibilities of the PHA regarding nondiscrimination. Part II: Policies Related to Persons with Disabilities. This part discusses the rules and policies of the housing voucher programs related to reasonable accommodation for persons with disabilities. These rules and policies are based on the Fair Housing Act (42.U.S.C.) and Section 504 of the Rehabilitation Act of 1973, and incorporate guidance from the Joint Statement of The Department of Housing and Urban Development and the Department of Justice (DOJ), issued May 17, 2004. Part III: Prohibition of Discrimination Against Limited English Proficiency Persons. This part details the obligations of the PHA to ensure meaningful access to the HCV program and its activities by persons with limited English proficiency (LEP). This part incorporates HUD and DOJ’s Notice of Guidance, published December 19, 2003 in the Federal Register, and “Final Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition Against National Origin Discrimination Affecting Limited English Proficient Persons; Notice” (Jan. 22, 2007), which can be found at: http://www.gpo.gov/fdsys/pkg/FR-2007-01-22/pdf/07-217.pdf. 12.A.b Packet Pg. 1413 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. Page 2-2 PART I: NONDISCRIMINATION 2-I.A. OVERVIEW Federal laws require PHAs to treat all applicants and participants equally, providing the same opportunity to access services, regardless of family characteristics and background. Federal law prohibits discrimination in housing on the basis of race, color, religion, sex, national origin, age, familial status, disability, and status as a victim of domestic violence, dating violence, sexual assault, or stalking. In addition, HUD regulations provide for additional protections regarding sexual orientation, gender identity, and marital status. The PHA will comply fully with all federal, state, and local nondiscrimination laws, and with rules and regulations governing fair housing and equal opportunity in housing and employment, including: • Title VI of the Civil Rights Act of 1964 • Title VIII of the Civil Rights Act of 1968 (as amended by the Community Development Act of 1974 and the Fair Housing Amendments Act of 1988) • Executive Orders 11063 and 13988 • Section 504 of the Rehabilitation Act of 1973 • The Age Discrimination Act of 1975 • Title II of the Americans with Disabilities Act (to the extent that it applies, otherwise Section 504 and the Fair Housing Amendments govern) The Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity Final Rule, published in the Federal Register February 3, 2012. • Violence Against Women Reauthorization Act of 2013 (VAWA) • HUD LEP Guidance, “Final Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition Against National Origin Discrimination Affecting Limited English Proficient Persons; Notice,” 72 Fed. Reg. 2732 (Jan. 22, 2007). • Executive Order 13166 When more than one civil rights law applies to a situation, the laws will be read and applied together. Any applicable state laws or local ordinances and any legislation protecting individual rights of tenants, applicants, or staff that may subsequently be enacted will also apply. 2-I.B. NONDISCRIMINATION Federal regulations prohibit discrimination against certain protected classes and other groups of people. State and local requirements, as well as PHA policies, can prohibit discrimination based on other factors. The PHA shall not discriminate because of race, color, sex, religion, familial status, age, disability or national origin (called “protected classes”). 12.A.b Packet Pg. 1414 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. Page 2-3 Familial status includes children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18. The PHA will not discriminate on the basis of an individual’s status as a victim of domestic violence, dating violence, sexual assault or stalking. The PHA will not discriminate on the basis of marital status, gender identity, or sexual orientation [FR Notice 02/03/12; Executive Order 13988]. In addition, the PHA will not discriminate on the basis of gender expression, ancestry , source of income, or genetic information. [Fair Employment and Housing Act, Cal. Gov. Code § 12955] PHA Policy Consistent with the City of Santa Monica’s Municipal Code Section 4.28.030, the Housing Anti-Discrimination Code, the PHA prohibits discrimination based on “source of income”. “Source of income” includes any lawful source of income or rental assistance from any federal, State, local, or non-profit-administered benefit or subsidy program including, but not limited to, rental housing voucher programs. PHA Policy The PHA does not identify any additional protected classes. The PHA will not use any of these factors to: • Deny to any family the opportunity to apply for housing, nor deny to any qualified applicant the opportunity to participate in the housing choice voucher program • Provide housing that is different from that provided to others • Subject anyone to segregation or disparate treatment • Restrict anyone's access to any benefit enjoyed by others in connection with the housing program • Treat a person differently in determining eligibility or other requirement s for admission • Steer an applicant or participant toward or away from a particular area based on any of these factors • Deny anyone access to the same level of services • Deny anyone the opportunity to participate in a planning or advisory group that is an integral part of the housing program • Discriminate in the provision of residential real estate transactions • Discriminate against someone because they are related to or associated with a member of a protected class 12.A.b Packet Pg. 1415 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. Page 2-4 • Publish or cause to be published an advertisement or notice indicating the availability of housing that prefers or excludes persons who are members of a protected class. • Coerce, intimidate, threaten, or interfere with any individual in the exercise or enjoyment of fair housing rights. Additionally, the PHA will not retaliate against individuals for exercising, or encouraging others to exercise, their fair housing rights. Providing Information to Families and Owners The PHA must take steps to ensure that families and owners are fully aware of all applicable civil rights laws. As part of the briefing process, the PHA must provide information to applicant families about civil rights requirements and the opportunity to rent in a broad range of neighborhoods [24 CFR 982.301]. The Housing contract informs owners of the requirement not to discriminate against any person because of race, color, religion, sex, national origin, age, familial status, or disability in connection with the contract. Discrimination Complaints If an applicant or participant believes that any family member has been discriminated against by the PHA or an owner, the family should advise the PHA. HUD requires the PHA to make every reasonable attempt to determine whether the applicant or participant’s assertions have merit and take any warranted corrective action. In addition, the PHA is required to provide the applicant or participant with information about how to file a discrimination complaint [24 CFR 982.304]. Upon receipt of a housing discrimination complaint, the PHA is requi red to: • Provide written notice of the complaint to those alleged and inform the complainant that such notice was made • Investigate the allegations and provide the complainant and those alleged with findings and either a proposed corrective action or an explanation of why corrective action is not warranted • Keep records of all complaints, investigations, notices, and corrective actions [Notice PIH 2014-20] PHA Policy Applicants or participants who believe that they have been subject to unlawful discrimination may notify the PHA of the complaint in writing. Exceptions to allow oral complaints will be made for reasonable accommodation. The PHA will attempt to remedy discrimination complaints made against the PHA . The PHA will provide a copy of a discrimination complaint form to the complainant and provide them with information on how to complete and submit the form to HUD ’s Office of Fair Housing and Equal Opportunity (FHEO) and California Department of Fair Employment and Housing (DFEH). 12.A.b Packet Pg. 1416 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. Page 2-5 Families may also seek recourse through the Fair Housing Division of the City Attorney’s Office. 12.A.b Packet Pg. 1417 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. Page 2-6 PART II: POLICIES RELATED TO PERSONS WITH DISABILITIES 2-II.A. OVERVIEW One type of disability discrimination prohibited by the Fair Housing Act is the refusal to make reasonable accommodation in rules, policies, practices, or services when such accommodation may be necessary to afford a person with a disability the equal opportunity to use and enjoy a program or dwelling under the program. The PHA must ensure that persons with disabilities have full access to the PHA’s programs and services. This responsibility begins with the first contact by an interested family and continues through every aspect of the program. PHA Policy The PHA will ask all applicants and participants if they require any type of accommodations, in writing, on the intake application, reexamination documents, and notices of adverse action by the PHA, by including the following language: “If you or anyone in your family is a person with disabilities, and you require a specific accommodation in order to fully utilize our programs and services, please contact the housing authority.” A specific name and phone number of designated staff will be provided to process requests for accommodation. The PHA will display posters and other housing information and signage in locations throughout the PHA’s office in such a manner as to be easily readable from a wheelchair. 2-II.B. DEFINITION OF REASONABLE ACCOMMODATION A reasonable accommodation is an adjustment made to a rule, policy, practice, or service that allows a person with a disability to have equal access to the HCV program. For example, reasonable accommodations may include making home visits, extending the voucher term, or approving an exception payment standard in order for a participant to lease an accessible dwelling unit. Federal regulations stipulate that requests for accommodations will be considered reasonable if they do not create an "undue financial and administrative burden" for the PHA, or result in a “fundamental alteration” in the nature of the program or service offered. A fundamental alteration is a modification that alters the essential nature of a provider’s operations. Types of Reasonable Accommodations When needed, the PHA will modify normal procedures to accommodate the needs of a person with disabilities. Examples include: 12.A.b Packet Pg. 1418 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. Page 2-7 • Permitting applications and reexaminations to be completed by mail or online • Conducting home visits • Using higher payment standards (either within the acceptable range or with HUD approval of a payment standard outside the PHA range) if the PHA determines this is necessary to enable a person with disabilities to obtain a suitable housing unit • Providing time extensions for locating a unit when necessary because of lack of availability of accessible units or special challenges of the family in seeking a unit • Permitting an authorized designee or advocate to participate in the application or certification process and any other meetings with PHA staff 2-II.C. REQUEST FOR AN ACCOMMODATION If an applicant or participant indicates that an exception, change, or adjustment to a rule, policy, practice, or service is needed because of a disability, HUD requires that the PHA treat the information as a request for a reasonable accommodation, even if no formal request is made [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act]. The family must explain what type of accommodation is needed to provide the person with the disability full access to the PHA’s programs and services. If the need for the accommodation is not readily apparent or known to the PHA, the family must explain the relationship between the requested accommodation and the disability. There must be an identifiable connection, or nexus, between the requested accommodation and the individual’s disability. PHA Policy The PHA will encourage the family to make its request in writing using a reasonable accommodation request form. However, the PHA will consider the accommodation any time the family indicates that an accommodation is needed, whether or not a formal written request is submitted. Reasonable accommodation requests may be submitted to: • Housing specialist assigned to participant • Reasonable accommodation mailbox • ADA Coordinator Contact information is provided on the housing authority website. 12.A.b Packet Pg. 1419 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. Page 2-8 2-II.D. VERIFICATION OF DISABILITY The regulatory civil rights definition for persons with disabilities is provided in Exhibit 2-1 at the end of this chapter. The definition of a person with a disability for the purpose of obtaining a reasonable accommodation is much broader than the HUD definition of disability which is used for waiting list preferences and income allowances. Before providing an accommodation, the PHA must determine that the person meets the definition of a person with a disability, and that the accommodation will enhance the family’s access to the PHA’s programs and services. If a person’s disability is obvious or otherwise known to the PHA, and if the need for the requested accommodation is also readily apparent or known, no further verification will be required [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act]. If a family indicates that an accommodation is required for a disability that is not obvious or otherwise known to the PHA, the PHA must verify that the person meets the definition of a person with a disability, and that the limitations imposed by the disability require the requested accommodation. When verifying a disability, the PHA will follow the verification policies provided in Chapter 7. All information related to a person’s disability will be treated in accordance with the confidentiality policies provided in Chapter 16. In addition to the general requirements that govern all verification efforts, the following requirements apply when verifying a disability: • Third-party verification must be obtained from an individual identified by the family who is competent to make the determination. A doctor or other medical professional, a peer support group, a non-medical service agency, or a reliable third party who is in a position to know about the individual’s disability may provide verification of a disability [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act] • The PHA must request only information that is necessary to evaluate the disability-related need for the accommodation. The PHA will not inquire about the nature or extent of any disability. • Medical records will not be accepted or retained in the participant file. • In the event that the PHA does receive confidential information about a person’s specific diagnosis, treatment, or the nature or severity of the disability, the PHA will dispose of it. In place of the information, the PHA will note in the file that the disability and other requested information have been verified, the date the verification was received, and the name and address of the knowledgeable professional who sent the information [Notice PIH 2010-26]. 2-II.E. APPROVAL/DENIAL OF A REQUESTED ACCOMMODATION [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act 12.A.b Packet Pg. 1420 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. Page 2-9 Notice PIH 2010-26]. The PHA must approve a request for an accommodation if the following three conditions are met: • The request was made by or on behalf of a person with a disability. • There is a disability-related need for the accommodation. • The requested accommodation is reasonable, meaning it would not impose an undue financial and administrative burden on the PHA, or fundamentally alter the nature of the PHA’s operations (including the obligation to comply with HUD requirements and regulations). Requests for accommodations must be assessed on a case-by-case basis, taking into account factors such as the overall size of the PHA’s programs with respect to the number of employees, workforce, the nature and cost of the requested accommodation, and the availability of alternative accommodations that would effectively meet the family’s disability-related needs. Before making a determination whether to approve the request, the PHA may enter into discussion and negotiation with the family, request more information from the family, or may require the family to sign a consent form so that the PHA may verify the need for the requested accommodation. PHA Policy After a request for an accommodation is presented, the PHA will respond in writing, acknowledging receipt of the request, within a reasonable time not to exceed 10 business days. Based on the verified need for the accommodation, or the absence thereof, the PHA will render its decision within a reasonable period of time. Before the PHA denies a request for an accommodation because there is no relationship, or nexus, found between the disability and the requested accommodation, the notice will inform the family of the right to appeal the PHA’s decision through an informal review (if applicable) or informal hearing (see Chapter 16). If the PHA denies a request for an accommodation because it is not reasonable (it would impose an undue financial and administrative burden or fundamentally alter the nature of the PHA’s operations), the PHA will discuss with the family whether an alternative accommodation could effectively address the family’s disability-related needs without a fundamental alteration to the program and without imposing an undue financial and administrative burden. If the need for the accommodation was not readily apparent or known to the PHA, and the family was n ot able to demonstrate the relationship or nexus between the requested accommodation and the disability, the PHA may also deny the request. If the PHA believes that the family has failed to identify a reasonable alternative accommodation after interactive discussion and negotiation, the PHA will notify the family in writing of its determination within 15 business days from the date of the most 12.A.b Packet Pg. 1421 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. Page 2-10 recent discussion or communication with the family. The PHA may be required to respond in less than 15 business days. A flyer regarding the HUD/DFEH complaint process can be found on the housing authority website. 2-II.F. PROGRAM ACCESSIBILITY FOR PERSONS WITH HEARING OR VISION IMPAIRMENTS HUD regulations require the PHA to ensure that persons with disabilities related to hearing and vision have reasonable access to the PHA's programs and services [24 CFR 8.6]. At the initial point of contact with each applicant, the PHA shall inform all applicants of alternative forms of communication that can be used other than plain language paperwork. PHA Policy To meet the needs of persons with hearing impairments, TTD/TTY [(310) 917-6626] communication will be available. To meet the needs of persons with vision impairments, large-print of key program documents will be made available upon request. Audio versions may be made available upon request. When visual aids are used in public meetings or presentations, or in meetings with PHA staff, one-on-one assistance will be provided upon request. Additional examples of alternative forms of communication are sign language interpretation; having material explained orally by staff; or having a third party representative (a friend, relative or advocate, named by the applicant) to receive, interpret and explain housing materials, be present at meetings held with the family, or to represent the family and the family’s interests. Should the family designate an individual as such a representative, a written, notarized authorization must be submitted to the PHA specifically designating the individual, including an acknowledgement that the family is still responsible for all family obligations under the programs. 2-II.G. PHYSICAL ACCESSIBILITY The PHA must comply with a variety of regulations pertaining to physical accessibility, including the following: • PIH 2010-26 • Section 504 of the Rehabilitation Act of 1973 • The Americans with Disabilities Act of 1990 • The Architectural Barriers Act of 1968 • The Fair Housing Act of 1988 The PHA’s policies concerning physical accessibility must be readily available to applicants and 12.A.b Packet Pg. 1422 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. Page 2-11 participants. They can be found in three key documents: • This plan describes the key policies that govern the PHA’s responsibilities with regard to physical accessibility. • Notice PIH 2010-26 summarizes information about pertinent laws and implementing regulations related to non-discrimination and accessibility in federally-funded housing programs. • The PHA Plan provides information about self-evaluation, needs assessment, and transition plans. The design, construction, or alteration of PHA facilities must conform to the Uniform Federal Accessibility Standards (UFAS). Newly-constructed facilities must be designed to be readily accessible to and usable by persons with disabilities. Alterations to existing facilities must be accessible to the maximum extent feasible, defined as not imposing an undue financial and administrative burden on the operations of the HCV program. When issuing a voucher to a family that includes an individual with disabilities, the PHA will include a current list of available accessible units known to the PHA and will assist the family in locating an available accessible unit, if necessary. In general, owners must permit the family to make reasonable modifications to the unit. However, the owner is not required to pay for the modification and may require that the unit be restored to its original state at the family’s expense when the family moves. 2-II.H. DENIAL OR TERMINATION OF ASSISTANCE A PHA’s decision to deny or terminate the assistance of a family that includes a person with disabilities is subject to consideration of reasonable accommodation [24 CFR 982.552 (2)(iv)]. When applicants with disabilities are denied assistance, the notice of denial must inform them of the PHA’s informal review process and their right to request an informal review. In addition, the notice must inform applicants with disabilities of their right to request reasonable accommodations to participate in the informal review process. When a participant family’s assistance is terminated, the notice of termination must inform them of the PHA’s informal hearing process and their right to request a hearing and reasonable accommodation. When reviewing reasonable accommodation requests, the PHA must consider whether any mitigating circumstances can be verified to explain and overcome the problem that led to the PHA’s decision to deny or terminate assistance. If a reasonable accommodation will allow the family to meet the requirements, the PHA must make the accommodation. 12.A.b Packet Pg. 1423 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. Page 2-12 PART III: IMPROVING ACCESS TO SERVICES FOR PERSONS WITH LIMITED ENGLISH PROFICIENCY (LEP) 2-III.A. OVERVIEW Language for Limited English Proficiency Persons (LEP) can be a barrier to accessing important benefits or services, understanding and exercising important rights, complying with applicable responsibilities, or understanding other information provided by the programs. In certain circumstances, failure to ensure that LEP persons can effectively participate in or benefit from federally-assisted programs and activities may violate the prohibition under Title VI against discrimination on the basis of national origin. This part incorporates the Notice of Guidance to Federal Assistance Recipients Regarding Title VI Prohibition Affecting Limited English Proficient Persons, published December 19, 2003 in the Federal Register, and “Final Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition Against National Origin Discrimination Affecting Limited English Proficient Persons; Notice” (Jan. 22, 2007). The PHA will take affirmative steps to communicate with people who need services or information in a language other than English. These persons will be referred to as Persons with Limited English Proficiency (LEP). LEP is defined as persons who do not speak En glish as their primary language and who have a limited ability to read, write, speak or understand English. For the purposes of this administrative plan, LEP persons are applicants and participants, and parents and family members of applicants and participants. In order to determine the level of access needed by LEP persons, the PHA will balan ce the following four factors: (1) the number or proportion of LEP persons eligible to be served or likely to be encountered by the Housing Choice Voucher program; (2) the frequency with which LEP persons come into contact with the programs; (3) the nature and importance of the program, activity, or service provided by the programs to people’s lives; and (4) the resources available to the PHA and costs. Balancing these four factors will ensure meaningful access by LEP persons to critical services while not imposing undue burdens on the PHA. PHA Policy The PHA has completed the four-factor analysis and developed a written LEP plan which is provided as Exhibit 2-2 at the end of this chapter. 2-III.B. ORAL INTERPRETATION The PHA will offer competent interpretation services free of charge, upon request to the LEP person. PHA Policy 12.A.b Packet Pg. 1424 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. Page 2-13 The PHA will utilize a language line for telephone interpreter services. When exercising the option to conduct remote briefings, informal reviews, or hearings, however, the PHA will coordinate with a remote interpretation service which, when available, uses video conferencing technology rather than voice-only interpretation. Where feasible, the PHA will train and hire bilingual staff to be available to act as interpreters and translators, will pool resources with other PHAs, and will standardize documents. Where feasible and possible, the PHA will encourage the use of qualified community volunteers if caution is taken to ensure that the volunteers are appropriately trained and that confidentiality concerns regarding individual applicants and tenants are adequately taken into account. Where LEP persons desire, they will be permitted to use, at their own expense, a qualified interpreter of their own choosing, in place of or as a supplement to the free language services offered by the PHA. The PHA, at its discretion, may choose to use the language services even when LEP persons desire to use an interpre ter of their choosing. The interpreter may be a family member or friend. If the interpreter chosen by the family is a minor, the PHA will not rely on the minor to serve as the interpreter. The PHA will analyze the various kinds of contacts it has with the public, to assess language needs and decide what reasonable steps should be taken. “Reasonable steps” may not be reasonable where the costs imposed substantially exceed the benefits. Where feasible and possible, according to its language assistance plan (LAP), the PHA will train and hire bilingual staff to be available to act as interpreters and translators, will pool resources with other PHAs, and will standardize documents. 2-III.C. WRITTEN TRANSLATION Translation is the replacement of a written text from one language into an equivalent written text in another language. PHA Policy In order to comply with written-translation obligations, the PHA will take the following steps: The PHA will provide written translations of vital documents for each eligible LEP language group that constitutes 5 percent or 1,000 persons, whichever is less, of the population of persons eligible to be served or likely to be affected or encountered. Translation of other documents, if needed, can be provided orally; or If there are fewer than 50 persons in a language group that reaches the 5 percent trigger, the PHA does not translate vital written materials, but provides written notice in the primary language of the LEP language group of the right to receive competent oral interpretation of those written materials, free of cost. 12.A.b Packet Pg. 1425 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. Page 2-14 2-III.D. IMPLEMENTATION PLAN After completing the four-factor analysis and deciding what language assistance services are appropriate, the PHA shall determine whether it is necessary to develop a written implementation plan to address the identified needs of the LEP populations it serves. If the PHA determines that it is not necessary to develop a written implementation plan, the absence of a written plan does not obviate the underlying obligation to ensure meaningful access by LEP persons to the PHA’s Housing Choice Voucher p rogram and services. PHA Policy If it is determined that the PHA serves very few LEP persons, and the PHA has very limited resources, the PHA will not develop a written LEP plan, but wi ll consider alternative ways to articulate in a reasonable manner a plan for providing meaningful access. Entities having significant contact with LEP persons, such as schools, grassroots and faith-based organizations, community groups, and groups working with new immigrants, will be contacted for input into the process. The PHA has developed a written LEP plan, following these five steps: (1) Identifying LEP individuals who need language assistance; (2) identifying language assistance measures; (3) training staff; (4) providing notice to LEP persons; and (5) monitoring and updating the LEP plan. EXHIBIT 2-1: DEFINITION OF A PERSON WITH A DISABILITY UNDER FEDERAL CIVIL RIGHTS LAWS [24 CFR Parts 8.3 and 100.201] A person with a disability, as defined under federal civil rights laws, is any person who: • Has a physical or mental impairment that substantially limits one or more of the major life activities of an individual, or • Has a record of such impairment, or • Is regarded as having such impairment. The phrase “physical or mental impairment” includes: • Any physiological disorder or condition, cosmetic or disfigurement, or anatomical loss affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive; digestive; genito-urinary; hemic and lymphatic; skin; and endocrine; or • Any mental or psychological disorder, such as mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities. The term “physical or mental impairment” includes, but is not limited to: such diseases and conditions as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental retardation, emotional 12.A.b Packet Pg. 1426 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. Page 2-15 illness, drug addiction and alcoholism. “Major life activities” includes, but is not limited to, caring for oneself, performing manual tasks, walking, seeing, hearing, breathing, learning, and/or working. “Has a record of such impairment” means has a history of, or has been misclassified as having, a mental or physical impairment that substantially limits one or more major life activities. “Is regarded as having an impairment” is defined as having a physical or mental impairment that does not substantially limit one or more major life activities but is treated by a public entity (such as the PHA) as constituting such a limitation; has none of the impairments defined in this section but is treated by a public entity as having such an impairment; or has a physical or mental impairment that substantially limits one or more major life activities, only as a result of the attitudes of others toward that impairment. The definition of a person with disabilities does not include: • Current illegal drug users • People whose alcohol use interferes with the rights of others • Persons who objectively pose a direct threat or substantial risk of harm to others that cannot be controlled with a reasonable accommodation under the programs The above definition of disability determines whether an applicant or participant is entitled to any of the protections of federal disability civil rights laws. Thus, a person who does not meet this disability is not entitled to a reasonable accommodation under federal civil rights and fair housing laws and regulations. The HUD definition of a person with a disability is much narrower than the civil rights definition of disability. The HUD definition of a person with a disability is used for purposes of receiving the disabled family preference, the $400 elderly/disabled household deduction, the $480 dependent deduction, the allowance for medical expenses, or the allowance for disability assistance expenses. (Not applicable in all programs) The definition of a person with a disability for purposes of granting a reasonable accommodation request is much broader than the HUD definition of disability. Many people will not qualify as a disabled person under the programs, yet an accommodation is needed to provide equal opportunity. 12.A.b Packet Pg. 1427 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. Page 2-16 EXHIBIT 2-2: SANTA MONICA HOUSING AUTHORITY LANGUAGE ASSISTANCE PLAN I. PLAN STATEMENT The Santa Monica Housing Authority (SMHA) is committed to promoting adequate and affordable housing, economic opportunity and a suitable living environment free from discrimination. The SMHA has adopted this Language Assistance Plan to ensure that its programs and resources are accessible to persons with Limited English Proficiency (LEP) without discrimination. The SMHA will provide language assistance to participants/residents who request assistance from the SMHA for their LEP needs and whose primary language constitutes 5% or greater of the population of persons eligible to be served or likely to be affected or encountered. The information in this Plan is based on 2010 Census data and will be updated as updated Census data becomes available. Limited English Proficient (LEP) persons are those whose proficiency in speaking, reading, writing, or understanding English is such that it would deny or limit their meaningful access to programs and services provided by the SMHA if language assistance were not provided. II. MEANINGFUL ACCESS: FOUR FACTOR ANALYSIS The following four factors have been researched and considered in order to develop a Limited English Proficiency Program which ensures meaningful assistance for LEP individuals and families. A. Factor One: The number or proportion of LEP persons eligible to be served or likely to be encountered by the Housing Choice Voucher Program The service area of the Santa Monica Housing Authority (SMHA) is the City of Santa Monica. The City of Santa Monica has a total population that consists of 77.6% White, 3.9% Black, 9.0% Asian, 0.4% American Indian and Alaska Native and 0.1% Native Hawaiian and Other Pacific Islander as reported in the U.S Bureau of the Census, 2010 Census. 13.1% of the city’s population is of Hispanic or Latino origin. 15,769 (18%) households receive some form of low-income assistance. 11.1% of families received income below that of the poverty level between 2006 and 2010. 11.5% of all residents aged 65 years an older received income below the poverty level. 23% of the population were foreign born and 25.7% of all residents speak a language other than English at home including Spanish, other Indo-European, Asian Pacific Islander languages. Most came to the United States prior to 2000 from Europe, Asia and Latin America. The majority identifies their ancestry as English, German, and Irish. 12.A.b Packet Pg. 1428 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. Page 2-17 B. Factor Two: The frequency with which LEP individuals come into contact with the Housing Choice Voucher Program • The SMHA administers 1,092 Section 8 Housing Choice Vouchers, 238 Continuum of Care Program Vouchers, and 45 HOME vouchers • The SMHA provides housing assistance to over 1,800 individuals, seniors, children and persons with disabilities • The SMHA employees have daily contact with potential applicants, property owners, and participants C. Factor Three: The nature and importance of the program, activity, or service provided by the program to people’s lives The SMHA is the largest provider of affordable housing in the Ci ty of Santa Monica and provides a critical resource of housing assistance to over 1,800 low income individuals. D. Factor Four: Resources currently available to participants/residents The SMHA currently makes the following resources available to LEP individuals and families in order to provide meaningful access to SMHA programs and services: • Bilingual staff in designated positions to provide oral translation services • Program documents translated into Spanish (a participant population of 5% or more who speak a language other than English in the home if that language can be identified) • HUD website contains LEP documents at www.hud.gov/offices/fheo/promotingfh/lep.cfm. Additional documents are available throughout the HUD clips Form Library. III. LANGUAGE ASSISTANCE The Santa Monica Housing Authority will: 1. List the telephone extension on all notices addressing language assistance. 2. Utilize language identification flashcards to assist limited English proficient individuals to inform staff of the language they are most comfortable using to communicate. 3. Utilize signage in the lobby of the housing authority and on the website informing the public of translation and interpreter service. 4. Inquire as to the need for, and provide qualified interpreter assistance for, all required group meetings (i.e. briefings) at no cost to the participant. 5. Provide translated versions of vital documents to LEP applicants and participants. 12.A.b Packet Pg. 1429 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. Page 2-18 6. Provide free interpretation assistance upon request for all other housing authority transactions. Interpreters To the extent that they are available, qualified interpreters will be provided for all group meetings (i.e. briefings) at no cost to the participants, if the assistance is requested at least 2 work days prior to the meeting. Notice announcing the meeting, including appointment letters, will advise individuals of their ability to request assistance in advance of a group meeting. Interpretation assistance via telephone conferencing will be offered for one-on-one meetings with staff as needed. Friends will be strongly discouraged as interpreters; minor children will not be permitted to act as interpreters. The City of Santa Monica has a Translation Services List of employees who are proficient in interpreting specific languages. Translation While every effort will be made to ensure that all documents translated remain true to the English version, the text of the English version is the official statement and/or policy of the SMHA. Eventual errors in translation may be considered as a mitigating factor in assessing any resulting complications. The SMHA will make available, upon request or identification of need, any forms that have been translated by the U.S. Department of Housing and Urban Development. The SMHA will also provide written translations (Spanish and other language(s) for participants as indicated by the annual needs assessment) of: a. Any flier announcing the availability of, and the associated application form for admission to the Programs b. The statement of Family Obligations c. Termination notices d. Notices advising of the right to request an Informal Review or Informal Hearing Vital Documents The SMHA will conduct an initial review of its written documents for the purpose of accessing whether any document is vital and requires translation. HUD’s LEP Guidance states that “[v]ital. documents are those that are critical for ensuring meaningful access by beneficiaries or potential beneficiaries generally and LEP persons specifically” [72 Fed. Reg. at 2,736]. Whether a document is important depends on the “importance of the program, information, encounter, or service involved, and the consequences to the LEP person if the information in question is not provided accurately or in a timely manner.” Id. at 2752. A similar review will be conducted to determine if new documents are vital and need translation. The Santa Monica Housing Authority will rely on HUD to translate its own required documents. Examples of vital documents may include, but are not limited to Personal Declaration, Housing Choice Voucher 12.A.b Packet Pg. 1430 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. Page 2-19 (HUD-52646), Family Obligations, and Tenant Integrity Certification, and the HUD Tenancy Addendum. IV. OUTREACH The SMHA will post notices of the availability of language assistance services in the front lobby of the Santa Monica Housing Authority, 1901 Main Street, Santa Monica, CA. Notice regarding the availability of language assistance services will also be posted on the SMHA’s website and will be included in annual recertification packages sent to residents and participants. Outreach will also include advertising waitlist openings in non-English media. V. TRAINING The SMHA will provide ongoing training for appropriate staff regarding the LAP policy and procedures. Training will include: • An overview of the SMHA’s Limited English Proficiency Policy and Procedures. • How and when to use the Santa Monica Housing Authority’s Language Identification Card to identify the language in which the LEP person needs assistance. • How and when to access language services through bilingual staff or Language Line Services. • How to work with an interpreter. • Prohibition against requiring or asking LEP person to bring his/her own interpreter. • Cultural sensitivity. • The potential consequences of having close friends or children act as interpreters. VI. MONITORING AND RECORDKEEPING A. Housing Authority staff will monitor the provision of language assistance servi ces to LEP persons on an ongoing basis to meet with staff to coordinate and facilitate the delivery of language services and address issues related to language services. SMHA staff will: 1. Monitor the implementation of the Santa Monica Housing Authority’s Language Assistance Plan and update it annually. 2. Track LEP persons served, including the language, type of service and how language services were provided if available. 3. Consult with front line staff to identify emerging languages and changes in the proportion of existing language groups. 4. Ensure compliance with the requirements for providing language assistance services. 12.A.b Packet Pg. 1431 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. Page 2-20 5. Assess the language assistance needs of the SMHA on an annual basis by reviewing data on the provision of language services and the prior year’s provision of language assistance services and recommend modifications of the Plan to the Housing Authority Administrator. 6. Monitor the translation of vital documents. 7. Oversee quality control assessment of language services. COMPLAINTS SMHA employees who receive a report or become aware that a LEP person believes that he/she has not been provided with language assistance services, in accordance with the provisions of the Language Assistance Plan, should report that information to the Housing Authority Administrator in person or via telephone at 310-458-8743. 12.A.b Packet Pg. 1432 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-1 Chapter 3: ELIGIBILITY INTRODUCTION The PHA is responsible for ensuring that every individual and family admitted to the program s meet all program eligibility requirements. This includes any individual approved to join the family after the family has been admitted to the program. The family must provide any information needed by the PHA to confirm eligibility and determine the level of the family’s assistance. To be eligible for the programs: •The applicant family must: -Qualify as a family as defined by HUD and the PHA. -Have income at or below HUD-specified income limits. -Qualify on the basis of citizenship or the eligible immigrant status of family members. -Provide social security number information for household members as required. -Consent to the PHA’s collection and use of family information as provided for in PHA- provided consent forms. -Not currently be receiving a duplicative subsidy. •The PHA must determine that the current or past behavior of household members does not include activities that are prohibited by HUD or the PHA. This chapter contains three parts: Part I: Definitions of Family and Household Members. This part contains HUD and PHA definitions of family and household members and explains initial and ongoing eligibility issues related to these members. Part II: Basic Eligibility Criteria. This part discusses income eligibility, and rules regarding citizenship, social security numbers, and family consent. Part III: Denial of Assistance. This part covers factors related to an applicant’s past or current conduct (e.g. criminal activity) that can cause the PHA to deny assistance. 12.A.b Packet Pg. 1433 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-2 PART I: DEFINITIONS OF FAMILY AND HOUSEHOLD MEMBERS 3-I.A. OVERVIEW Some eligibility criteria and program rules vary depending upon the composition of the family requesting assistance. In addition, some requiremen ts apply to the family as a whole and others apply to individual persons who will live in the assisted unit. This part provides information that is needed to correctly identify family and household members, and to apply HUD's eligibility rules. 3-I.B. FAMILY AND HOUSEHOLD [24 CFR 982.201(c); HUD-50058 IB, p. 13; FR Notice 02/03/12] The terms family and household have different meanings in the HCV program. Family To be eligible for assistance, an applicant must qualify as a family. Family as defined by HUD includes, but is not limited to the following, regardless actual or perceived sexual orientation, gender identity, or marital status, a single person, who may be an elderly person, disabled person, near-elderly person, or any other single person; or a group of persons residing together. Such group includes, but is not limited to a family with or without children (a child who is temporarily away from the home because of placement in foster care is considere d a member of the family), an elderly family, a near-elderly family, a disabled family, a displaced family, or the remaining member of a tenant family. The PHA has the discretion to determine if any other group of persons qualifies as a family. Gender Identity means actual or perceived gender characteristics. Sexual orientation means homosexuality, heterosexuality, or bisexuality. PHA Policy A family also includes two or more individuals who are not related by blood, marriage, adoption, or other operation of law but who either can demonstrate that they have lived together previously or certify that each individual’s income and other resources will be available to meet the needs of the family. Each family must identify the individuals to be included in the f amily at the time of application and must notify the PHA if the family’s composition changes. Household Household is a broader term that includes additional people who, with the PHA’s permission, live in an assisted unit, such as live-in aides, foster children, and foster adults. 12.A.b Packet Pg. 1434 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-3 3-I.C. FAMILY BREAK-UP AND REMAINING MEMBER OF TENANT FAMILY Family Break-up [24 CFR 982.315; Notice PIH 2017-08] Except under the following conditions, the PHA has discretion to determine which members of an assisted family continue to receive assistance if the family breaks up: • If the family breakup results from an occurrence of domestic violence, dating violence, sexual assault, or stalking, the PHA must ensure that the victim retains assistance. (For documentation requirements and policies related to domestic violence, dating violence, sexual assault, and stalking, see section 16-IX.D of this plan.)In accordance with Notice PIH 2017-08, for HUD–Veterans Affairs Supportive Housing (HUD–VASH) vouchers, when the veteran is the perpetrator of domestic violence, dating violence, sexual assault, or stalking, the victim must continue to be assisted. Upon termination of the perpetrator’s HUD–VASH voucher, the victim should be given a regular HCV if one is available, and the perpetrator’s HUD–VASH voucher should be used to serve another eligible family. If a regular HCV is not available, the victim will continue to use the HUD–VASH voucher, which must be issued to another eligible family upon the voucher’s turnover. • If a court determines the disposition of property between members of the assisted family, the PHA is bound by the court's determination of which family members continue to receive assistance. PHA Policy When a family on the waiting list breaks up into two otherwise eligible f amilies, only one of the new families may retain the original application date. Other former family members may make a new application with a new application date if the waiting list is open. If a family breaks up into two otherwise eligible families while receiving assistance, only one of the new families will continue to be assisted. In the absence of a judicial decision-, or an agreement among the original family members, the PHA will determine which family will retain their placement on the waiting list or continue to receive assistance. In making its determinations, the PHA will take into consideration the following factors: (1) the interest of any minor children, including custody arrangements; (2) the interest of any ill, elderly, or disabled family members; (3) the interest of any family member who is the victim of domestic violence, dating violence, sexual assault, or stalking, including a family member who was forced to leave an assisted unit as a result of such actual or threatened abuse; (4) any possible risks to family members as a result of criminal activity; and (5) the recommendations of social service professionals. Remaining Member of a Tenant Family [24 CFR 5.403] The HUD definition of family includes the remaining member of a tenant family, which is a member of an assisted family who remains in the unit when other members of the family have 12.A.b Packet Pg. 1435 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-4 left the unit. Household members such as live-in aides, foster children, and foster adults do not qualify as remaining members of a family. If dependents are the only “remaining members of a tenant family” and there is no family member able to assume the responsibilities of the head of household, see Chapter 6, Section 6 - I.B, for the policy on “Caretakers for a Child.” 3-I.D. HEAD OF HOUSEHOLD [24 CFR 5.504(b)] Head of household means the adult member of the family who is considered the head for purposes of determining income eligibility and rent. The head of household is responsible for ensuring that the family fulfills all of its responsibilities unde r the program, alone or in conjunction with a cohead or spouse. PHA Policy The family may designate any qualified family member as the head of household. The head of household must have the legal capacity to enter into a lease under state and local law. A minor who is emancipated under state law may be designated as head of household. 3-I.E. SPOUSE, COHEAD, AND OTHER ADULT A family may have a spouse or cohead, but not both [HUD-50058 IB, p. 13]. Spouse means the marriage partner of the head of household. PHA Policy A marriage partner includes the partner in a "common law" marriage as defined in state law. [California Law: California does not recognize common law marriages. However, if a couple meets the requirements for a common law marriage in a state th at does recognize common law marriages, and the couple then moves to California, California will recognize the "common law" marriage. For example, if a couple lived in Texas, a state recognizing common law marriage, and met the requirements for a common la w marriage, and then moved to California, which does not recognize common law marriage, California will recognize the couple as being married.] The term “spouse” does not apply to friends, roommates, or significant others who are not marriage partners. A minor who is emancipated under state law may be designated as a spouse. A cohead is an individual in the household who is equally responsible with the head of household for ensuring that the family fulfills all of its responsibilities under the program, but who is not a spouse. A family can have only one cohead. 12.A.b Packet Pg. 1436 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-5 PHA Policy Minors who are emancipated under state law may be designated as a cohead. Other adult means a family member, other than the head, spouse, or cohead, who is 18 years of age or older. Foster adults and live-in aides are not considered other adults. 3-I.F. DEPENDENT [24 CFR 5.603] A dependent is a family member who is under 18 years of age or a person of any age who is a person with a disability or a full-time student, except that the following persons can never be dependents: the head of household, spouse, cohead, foster children/adults and live-in aides. Identifying each dependent in the family is important because each dependent qualifies the family for a dependent allowance as described in Chapter 6. Joint Custody of Dependents PHA Policy Dependents that are subject to a joint custody arrangement will be considered a member of the family, if they live with the applicant or participant family 50 percent or more than 50% of the time. The PHA considers joint custody to be legal only whereby a court order exists determining primary place of residence of the children. If the dependent(s) resides in two households, each of which have a housing subsidy, the addition of said dependent(s) will create a Multiple Subsidy error and is not approved without the household submitting a request to the PHA. Failure to report the existence of duplicate housing subsidy assistance is a violation of Family Obligations. The PHA must then, upon approval of the request, submit a waiver request to the local field office. If the local field office approves the request, it will be forwarded to HUD for final approval. When appropriate, the Housing Authorities involved may remove the name of the dependent(s) as they change households during the year. When more than one applicant or participant family is claiming the same dependents as family members, the family with primary custody at the time of the initial examination or reexamination will be able to claim the dependents and receive the dependent allowance/deduction. If there is a dispute about which family should claim them, the PHA will make the determination based on available documents such as court orders, IRS returns showing which family has claimed the child for income tax purposes, and school records. When more than one applicant or participant family is claiming the same dependents as family members, the family with primary custody at the time of the initial examination or reexamination will be able to claim the dependents. If there is a dispute about which family should claim them, the PHA will make the determination based on available documents such as court orders, IRS returns showing which family has claimed the child for income tax purposes, and school records. 12.A.b Packet Pg. 1437 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-6 3-I.G. FULL-TIME STUDENT [24 CFR 5.603; HCV GB, p. 5-29] A full-time student (FTS) is a person who is attending school or vocational training on a full-time basis. The time commitment or subject load that is needed to be full-time is defined by the educational institution. Identifying each FTS is important because: (1) each family member that is an FTS, other than the head, spouse, or cohead, qualifies the family for a dependent allowance, and (2) the earned income of such an FTS is treated differently from the income of other family members as described in Chapter 6-I.D. Earned Income of Full-Time Students. 3-I.H. ELDERLY AND NEAR-ELDERLY PERSONS, AND ELDERLY FAMILY [24 CFR 5.100 and 5.403, FR Notice 02/03/12] Elderly Persons An elderly person is a person who is at least 62 years of age. Near-Elderly Persons A near-elderly person is a person who is 50-61 years of age. Elderly Family An elderly family is one in which the head, spouse, cohead, or sole member is an elderly person. Identifying elderly families is important because elderly families qualify for the elderly family allowance as described in Chapter 6. 3-I.I. PERSONS WITH DISABILITIES AND DISABLED FAMILY [24 CFR 5.403, FR Notice 02/03/12] Persons with Disabilities Under the HCV program, special rules apply to persons with disabilities and to any family whose head, spouse, or cohead is a person with disabilities. The technical definitions of individual with handicaps and persons with disabilities are provided in Exhibit 3 -1 at the end of this chapter. These definitions are used for a number of purposes including ensuring that persons with disabilities are not discriminated against based upon disability. As discussed in Chapter 2, the PHA must make all aspects of the HCV program accessible to persons with disabilities and consider reasonable accommodations requested based upon a person’s disability. Disabled Family A disabled family is one in which the head, spouse, or cohead is a person with disabilities. Identifying disabled families is important because these families qualify for the disabled family allowance as described in Chapter 6. 12.A.b Packet Pg. 1438 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-7 Even though persons with drug or alcohol dependencies are considered persons with disabilities, this does not prevent the PHA from denying assistance for reasons related to alcohol and drug abuse in accordance with policies found in Part III of this chapter, or from terminating assistance in accordance with the policies in Chapter 12. 3-I.J. GUESTS [24 CFR 5.100] A guest is a person temporarily staying in the unit with the consent of a member of the household who has expressed or implied authority to so consent. PHA Policy A guest can remain in the assisted unit no longer than 14 consecutive days or a total of 28 cumulative calendar days during any 12-month period. If the lease agreement conflicts with PHA policy, then lease agreement supersedes PHA policy. Minor children who are subject to a joint custody arrangement or for whom a family has visitation privileges, that are not included as a family member because they live outside of the assisted household more than 50 percent of the time, are not subject to the time limitations of guests as described above. A student who was a former member of the household (other than head of household or spouse) who is currently enrolled as a full-time student and attends school away from home may return to the home for school recesses so long as the stay in the unit lasts no more than 14 consecutive days or 24 cumulative days within a 12-month period. Stays more than 14 consecutive days or 24 cumulative days within a 12-month period are subject to an interim reexamination to account for changes in the household composition (see Chapter 11-II.B). A family may request an exception to this policy for valid reasons (e.g., care of a relative recovering from a medical procedure is expected to last 40 consecutive days). An exception will not be made unless the family can identify and provide documentation of the residence to which the guest will return. 3-I.K. FOSTER CHILDREN AND FOSTER ADULTS Foster adults are usually persons with disabilities, unrelated to the tenant family, who are unable to live alone [24 CFR 5.609]. The term foster child is not specifically defined by the regulations. Foster children and foster adults who are living with an applicant or who have been approved by the PHA to live with a participant family are considered household members but not family members. The income of foster children/adults is not counted in family annual income, and foster children/adults do not qualify for a dependent deduction [24 CFR 5.603; HUD-50058 IB, p. 13]. 12.A.b Packet Pg. 1439 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-8 PHA Policy A foster child is a child that is in the legal guardianship or custody of a state, county, or private adoption or foster care agency, yet is cared for by foster parents in their own homes, under some kind of foster care arrangement with the custodial agency. A foster child or foster adult may be allowed to reside in the unit if their presence would not result in a violation of HQS space standards according to 24 CFR 982.401. However, the PHA will not approve the addition of a foster child or foster adult if the family requires an additional bedroom to accommodate the foster child or foster adult. Children that are temporarily absent from the home as a result of placement in foster care are discussed in Section 3-I.L. 3-I.L. ABSENT FAMILY MEMBERS Individuals may be absent from the family, either temporarily or permanently, for a variety of reasons including educational activities, placement in foster care, employment, illness, incarceration, and court order. Definitions of Temporarily and Permanently Absent PHA Policy Generally, an individual who is or is expected to be absent from the assisted unit for 90 consecutive days or less is considered temporarily absent and continues to be considered a family member. An individual who is or is expected to be absent from the assisted unit for more than 90 consecutive days is considered permanently absent and no longer a family member. Exceptions to this general policy are discussed below. Absent Students PHA Policy When a student who has been considered a former member of the household attends school away from home, the person will not be considered a family member unless the head of household notifies the PHA in writing and the PHA determines that the student is returning to the unit as a resident, including those situations where the student has returned as a guest and remained past the authorized guest period and requires an interim reexamination in accordance with Chapter 11-II.B. Absences Due to Placement in Foster Care [24 CFR 5.403] Children temporarily absent from the home as a result of placement in foster care are considered members of the family. 12.A.b Packet Pg. 1440 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-9 PHA Policy If a child has been placed in foster care, the head of household will notify the PHA in writing and provide written verification from the appropriate agency whether and when the child is expected to be returned to the home. If the time period is to be greater than 90 days from the date of removal of the children, the voucher size will be reduced. If the agency confirms that the child has been permanently removed from the home, the child will not be counted as a family member and the voucher size will be adjusted in accordance with the PHA’s subsidy standards if appropriate. The family head, spouse, or co-head is responsible for keeping the PHA notified of changes in the family composition. If the family head, spouse, or co-head receives verification that the child has been permanently removed from the home, the assisted family must supply the information to the PHA. Failure to supply the information within 10 days is cause for termination of the assisted voucher. Absent Head, Spouse, or Cohead PHA Policy An employed head, spouse, or cohead absent from the unit more than 180 consecutive days due to employment will continue to be considered a family member. Family Members Permanently Confined for Medical Reasons [HCV GB, p. 5-22] If a family member is confined to a nursing home or hospital on a permanent basis, that person is no longer considered a family member and the income of that person is not counted [HCV GB, p. 5-22]. PHA Policy An individual confined to a nursing home or hospital on a permanent basis is not considered a family member. The PHA will request verification of the family member’s permanent absence from a responsible medical professional. If the responsible medical professional cannot provide a determination, the person will be considered temporarily absent. If the family certifies that the family member is confined on a permanent basis, they may present, and the PHA will consider, any additional documentation or evidence. Return of Permanently Absent Family Members PHA Policy The head of household must request PHA approval for the return of any adult family members that the PHA previously determined to be permanently absent. The individual is subject to the eligibility and screening requirements discussed elsewhere in this 12.A.b Packet Pg. 1441 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-10 chapter. If this request includes an increase in bedroom size, the PHA will determine whether it has sufficient funding in accordance with the policies in Part VIII of Chapter 16. The lease must be modified to reflect the change in household. 3-I.M. LIVE-IN AIDE [PIH 2012-33] A live-in aide a person who resides with one or more elderly persons, or ne ar-elderly persons, or persons with disabilities, and who: (1) is determined to be essential to the care and well- being of the persons, (2) is not obligated for the support of the persons, and (3) would not be living in the unit except to provide the necessary supportive services [24 CFR 5.403]. The PHA must approve a live-in aide if needed as a reasonable accommodation in accordance with 24 CFR 8, to make the program accessible to and usable by the family member with disabilities. The income of a live-in aide is not counted in the calculation of annual income for the family [24 CFR 5.609(b)]. Relatives may be approved as live-in aides if they meet all of the criteria defining a live-in aide. Because live-in aides are not family members, a relative who serves as a live-in aide would not be considered a remaining member of a tenant family. A PHA may only approve one additional bedroom for a live-in aide however, SMHA does not provide a bedroom for a live-in aide. Although a live-in aide may have PHA-approved family member/s live with him/her in the assisted unit, no additional bedrooms will be provided for the family members of the live-in aide. The PHA must ensure that housing quality standards (HQS) will not be violated and that there will be no more than two people per bedroom or living/sleeping space in the unit in accordance with 24 CFR §982.401(d)(2)(ii). If the approval of additional family members of a live-in aide would result in the violation of HQS, the additional family members of the live-in aide may not be approved PHA Policy A head of household’s request for a live-in aide must be made in writing using a live-in aide request form. Written verification will be required from a knowledgeable professional, such as a doctor, social worker, or case worker, that a live-in aide is necessary for the care and well being of the elderly or disabled family member. For continued approval, the family must submit a new, written request -subject to PHA verification-at each annual reexamination, and the live-in aide must participate in the annual reexamination appointment. In addition, the family and live-in aide will be required to complete a Live-In Aide Agreement certification form stating that the live-in aide is (1) not obligated for the support of the person(s) needing the care, and (2) would not be living in the unit except to provide the necessary supportive services at each annual reexamination. The PHA will not approve a particular person as a live-in aide, and may withdraw such approval if [24 CFR 982.316(b)]: The person commits fraud, bribery or any other corrupt or criminal act in connection with any federal housing program; 12.A.b Packet Pg. 1442 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-11 The person commits drug-related criminal activity or violent criminal activity; or The person currently owes rent or other amount s to the PHA or to another PHA in connection with housing assistance under the 1937 Act. The live-in aide services are not required for at least 8 hours a day. The person will not continually reside in the assisted unit with the disabled family member and use the assisted unit as his/her principal place of residence. The person is a helper or guest of the participant who comes and goes during the day. Has been terminated previously from the Section 8 Program due to program non-compliance. The PHA may deny the addition of a proposed live-in aide to the household if that proposed live-in aide would have been ineligible for the program at initial admission in accordance with Chapter 3, Eligibility, or Chapter 12 Termination of Assistance and Tenancy, of this Administrative Plan. Eligibility checks will be completed (and documented in the file) for all prospective live- in aides (and any family members that will live with them in the assisted unit) and they must meet the same eligibility criteria as a program app licant or participant, excluding income criteria. The PHA will notify the family of its decision in writing within 15 business days of receiving written third-party verification for a live-in aide. PHA Policy Live-in aids are not subject to the Citizenship or Eligible Immigration Status Rule as set forth in Chapter 3-II.B. 12.A.b Packet Pg. 1443 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-12 PART II: BASIC ELIGIBILITY CRITERIA 3-II.A. INCOME ELIGIBILITY AND TARGETING Income Limits HUD establishes income limits for all areas of the country and publishes them annually in the Federal Register. They are based upon estimates of median family income with adjustments for family size. The income limits are used to determine eligibility for the programs and for income targeting purposes as discussed in this section. Definitions of the Income Limits [24 CFR 5.603(b)] Low-income family. A family whose annual income does not exceed 80 percent of the median income for the area, adjusted for family size. Very low-income family. A family whose annual income does not exceed 50 percent of the median income for the area, adjusted for family size. Extremely low-income family. A family whose annual income does not exceed 30 percent of the median income for the area, adjusted for family size. HUD may establish income ceilings higher or lower than 30, 50, or 80 percent of the median income for an area if HUD finds that such variations are necessary because of unusually high or low family incomes. Using Income Limits for Eligibility [24 CFR 982.201] Income limits are used for eligibility only at admission. Income eligibility is determined by comparing the annual income of an applicant to the applicable income limits for their family size. In order to be income eligible, an applicant family must be one of the following: • A very low-income family • A low-income family that has been "continuously assisted" under the 1937 Housing Act. A family is considered to be continuously assisted if the family is already receiving assistance under any 1937 Housing Act program at the time the family is admitted t o the HCV program [24 CFR 982.4; 24 CFR 982.201(b)] PHA Policy The PHA will consider a family to be continuously assisted if the family was leasing a unit under any 1937 Housing Act program within 120 days of the time they were selected from the PHA’s waiting list. • A low-income family that qualifies for voucher assistance as a non-purchasing household living in HOPE 1 (public housing homeownership), HOPE 2 (multifamily housing homeownership) developments, or other HUD-assisted multifamily homeownership programs covered by 24 CFR 248.173 12.A.b Packet Pg. 1444 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-13 • A low-income or moderate-income family that is displaced as a result of the prepayment of a mortgage or voluntary termination of a mortgage insurance contract on eligible low - income housing as defined in 24 CFR 248.101 HUD permits the PHA to establish additional categories of low-income families that may be determined eligible. The additional categories must be consistent with the PHA plan and the consolidated plans for local governments within the PHA’s jurisdiction. PHA Policy The PHA has established the following additional categories of low-income families that may be determined eligible: o A family physically displaced from a Rental Rehabilitation Development due to physical construction, overcrowding, or change in the use of the unit o A family assisted under another federal housing program and displaced from that program for reasons beyond their control or because they did not participate in a home ownership program o A family living in a HUD-owned project when HUD sells, forecloses or demolishes the project) Using Income Limits for Targeting [24 CFR 982.201] At least 75 percent of the families admitted to the PHA's program during a PHA fiscal year must be extremely low-income families. HUD may approve exceptions to this requirement if the PHA demonstrates that it has made all required efforts but has been unable to attract an adequate number of qualified extremely low-income families. Families continuously assisted under the 1937 Housing Act and families living in eligible low - income housing that are displaced as a result of prepayment of a mortgage or voluntary termination of a mortgage insurance contract are not counted for income targeting purposes. 3-II.B. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5, Subpart E] Housing assistance is available only to individuals who are U.S. citizens, U.S. nationals (herein referred to as citizens and nationals), or noncitizens that have eligible immigration status. At least one family member must be a citizen, national, or noncitizen with eligible i mmigration status in order for the family to qualify for any level of assistance. All applicant families must be notified of the requirement to submit evidence of their citizenship status when they apply. Where feasible, and in accordance with the PHA’s Li mited English Proficiency Plan, the notice must be in a language that is understood by the individual if the individual is not proficient in English. 12.A.b Packet Pg. 1445 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-14 Declaration [24 CFR 5.508] HUD requires each family member to declare whether the individual is a citizen, a national, or an eligible noncitizen, except those members who elect not to contend that they have eligible immigration status. Those who elect not to contend their status are considered to be ineligible noncitizens. For citizens, nationals and eligible noncitizens the declaration must be signed personally by the head, spouse, cohead, and any other family member 18 or older, and by a parent or guardian for minors. The family must identify in writing any family members who elect not to contend their immigration status (see Ineligible Noncitizens below). No declaration is required for live-in aides, foster children, or foster adults. In accordance with SMHA’s LEP Plan, a translated version of the declaration of eligible immigration status, and other appropriate language assistance, will be provided to LEP applicants. U.S. Citizens and Nationals In general, citizens and nationals are required to submit only a signed declaration as verification of their status. However, HUD regulations permit the PHA to reques t additional documentation of their status, such as a passport. PHA Policy The PHA requires all applicant families to submit verification of their citizenship. All families will be notified of the requirement to submit evidence of their citizenship or legal residency status when they apply. If evidence cannot reasonably be provided by the family, the PHA may accept a signed declaration from all family members as verification of citizenship. Eligible Noncitizens In addition to providing a signed declaration, those declaring eligible noncitizen status must sign a verification consent form and cooperate with PHA efforts to verify their immigration status as described in Chapter 7. The documentation required for establishing eligible noncitizen status varies depending upon factors such as the date the person entered the U.S., the conditions under which eligible immigration status has been granted, the person’s age, and the date on which the family began receiving HUD-funded assistance. Lawful residents of the Marshall Islands, the Federated States of Micronesia, and Palau, together known as the Freely Associated States, or FAS, are eligible for housing assistance under section 141 of the Compacts of Free Association between the U.S. Government and the Governments of the FAS [Public Law 106-504]. In accordance with SMHA’s LEP Plan, a translated version of the verification consent form, and other appropriate language assistance, will be provided to LEP applicants who declare eligible noncitizen status. 12.A.b Packet Pg. 1446 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-15 Ineligible Noncitizens Those noncitizens who do not wish to contend their immigration status are required to have their names listed on a noncontending family members listing, signed by the head, spouse, or cohead (regardless of citizenship status), indicating their ineligible immigration status. The PHA is not required to verify a family member’s ineligible status and is not required to report an individual’s unlawful presence in the U.S. to the United States Citizenship and Immigration Services (USCIS). In accordance with SMHA’s LEP Plan, a translated version of the non-contending family members listing, and other appropriate language assistance, will be provided to LEP applicants with household members who do not wish to assert eligible immigration status. Providing housing assistance to noncitizen students is prohibited [24 CFR 5.522]. This prohibition extends to the noncitizen spouse of a noncitizen student as well as to minor children who accompany or follow to join the noncitizen student. Such prohibition does n ot extend to the citizen spouse of a noncitizen student or to the children of the citizen spouse and noncitizen student. Such a family is eligible for prorated assistance as a mixed family. Mixed Families A family is eligible for assistance as long as at least one member is a citizen, national, or eligible noncitizen. Families that include eligible and ineligible individuals are considered mixed families. Such families will be given notice that their assistance will be prorated, and that they may request a hearing if they contest this determination. See Chapter 6 for a discussion of how rents are prorated, and Chapter 16 for a discussion of informal hearing procedures. In accordance with SMHA’s LEP Plan, a translated version of the notification of prorated assistance, and other appropriate language assistance, will be provided to LEP applicants with mixed households. Ineligible Families [24 CFR 5.514(d), (e), and (f)] A PHA may elect to provide assistance to a family before the verification of the eligibility of the individual or one family member [24 CFR 5.512(b)]. Otherwise, no individual or family may be assisted prior to the affirmative establishment by the PHA that the individual or at least one family member is eligible. Verification of eligibility for this purpose occurs when the individual or family members have submitted documentation to the PHA in accordance with program requirements [24 CFR 5.512(a)]. PHA Policy The PHA will not provide assistance to a family before the verification of at least one family member is determined eligible. 12.A.b Packet Pg. 1447 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-16 When a PHA determines that an applicant family does not include any citizens, nationals, or eligible noncitizens, following the verification process, the family will be sent a written notice within 15 business days of the determination. The notice will explain the reasons for the denial of assistance, that the family may be eligible for proration of assistance (if program permits), and will advise the family of its right to request an appeal to the United States Citizenship and Immigration Services (USCIS), or to request an informal hearing with the PHA. The informal hearing with the PHA may be requested in lieu of the USCIS appeal, or at the conclusion of the USCIS appeal process. The notice must also inform the applicant that assistance may not be delayed until the conclusion of the USCIS appeal process, but that it may be delayed pending the completion of the informal hearing process. In accordance with SMHA’s LEP Plan, a translated version of the notice of denial of assistance, and other appropriate language assistance, will be provided to LEP applicants with mixed households. Informal hearing procedures are contained in Chapter 16. Timeframe for Determination of Citizenship Status [24 CFR 5.508(g)] For new occupants joining the assisted family, the PHA must verify status at the first interim or regular reexamination following the person’s occupancy, whichever comes first. If an individual qualifies for a time extension for the submission of required documents, the PHA must grant such an extension for no more than 30 days [24 CFR 5.508(h)]. Each family member is required to submit evidence of eligible status only one time during continuous occupancy. PHA Policy The PHA will verify the citizenship status of applicants at the time other eligibility factors are determined. 3-II.C. SOCIAL SECURITY NUMBERS [24 CFR 5.216 and 5.218, Notice PIH 2012-10] The applicant and all members of the applicant’s household age 6 or older must disclose the complete and accurate social security number (SSN) assigned to each household member and the documentation necessary to verify each SSN. If a child under age 6 has been added to an applicant family within 6 months prior to voucher issuance, an otherwise eligible family may be admitted to the program and must disclose and document the child’s SSN within 90 days of the effective date of the initial HAP contract. A detailed discussion of acceptable documentation is provided in Chapter 7. 12.A.b Packet Pg. 1448 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-17 Note: These requirements do not apply to noncitizens who do not contend eligible immigration status. In addition, each participant who has not previously disclosed an SSN, must submit their complete and accurate SSN and the documentation required to verify the SSN at the time of the next interim or annual reexamination or recertification. Participants age 62 or older as of January 31, 2010, whose determination of eligibility was begun after January 31, 2010 are exempt from this requirement and remain exempt even if they move to a new assisted unit. The PHA must deny assistance to an applicant family if they do not meet the SSN disclosure, documentation and verification, and certification requirements contained in 24 CFR 5.216. 3-II.D. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 5.230, HCV GB, p. 5-13] HUD requires each adult family member, and the head of household, spouse, or cohead, regardless of age, to sign form HUD-9886, Authorization for the Release of Information/Privacy Act Notice, the form HUD-52675 Debts Owed to Public Housing Agencies and Terminations, and other consent forms as needed to collect information relevant to the family’s eligibility and level of assistance. Chapter 7 provides detailed information concerning the consent forms and verification requirements. The PHA must deny admission to the program if any member of the applicant family fails to sign and submit the consent forms for obtaining information in accordance with 24 CFR 5, Subparts B and F [24 CFR 982.552(b)(3)]. A translated notice of this consent form, and other appropriate language assistance, should be provided to LEP applicants. 3-II.E. STUDENTS ENROLLED IN INSTITUTIONS OF HIGHER EDUCATION [24 CFR 5.612 and FR Notice 4/10/06, FR Notice 9/21/16] Section 327 of Public Law 109-115 and the implementing regulation at 24 CFR 5.612 established new restrictions on the eligibility of certain students (both part- and full-time) who are enrolled in institutions of higher education. If a student enrolled at an institution of higher education is under the age of 24, is not a veteran, is not married, does not have a dependent child, and is not a person with disabilities receiving HCV assistance as of November 30, 2005, the student’s eligibility must be examined along with the income eligibility of the student’s parents. In these cases, both the student and the student’s parents must be income eligible for the student to receive HCV assistance. If, however, a student in these circumstances is determined independent from their parents in accordance with PHA policy, the income of the student’s parents will not be considered in determining the student’s eligibility. 12.A.b Packet Pg. 1449 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-18 The new law does not apply to students who reside with parents who are applying to receive HCV assistance. It is limited to students who are seeking assistance on their own, separate ly from their parents. Definitions In determining whether and how the new eligibility restrictions apply to a student, the PHA will rely on the following definitions [FR Notice 4/10/06, FR Notice 9/21/16]. Dependent Child In the context of the student eligibility restrictions, dependent child means a dependent child of a student enrolled in an institution of higher education. The dependent child must also meet the definition of dependent in 24 CFR 5.603, which states that the dependent must be a member of the assisted family, other than the head of household or spouse, who is under 18 years of age, or is a person with a disability, or is a full-time student. Foster children and foster adults are not considered dependents. Independent Student PHA Policy The PHA will consider a student “independent” from their parents and the parents’ income will not be considered when determining the student’s eligibility if the following four criteria are all met: The individual is of legal contract age under state law. The individual has established a household separate from their parents for at least one year prior to application for occupancy or the individual meets the U.S. Department of Education’s definition of independent student . To be considered an independent student according to the Department of Education, a student must meet one or more of the following criteria: The individual is at least 24 years old by December 31 of the award year for which aid is sought The individual is an orphan, in foster care, or a ward of the court, or was an orphan, in foster care, or ward of the court at any time when the individual was 13 years of age or older The individual is, or was immediately prior to attaining the age of majority, an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual’s state of legal residence 12.A.b Packet Pg. 1450 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-19 The individual is a veteran of the U.S. Armed Forces or is currently serving on active duty in the Armed Forces for other than training purposes The individual is a graduate or professional student The individual is married The individual has one or more legal dependents other than a spouse (for example, dependent children or an elderly dependent parent) The individual has been verified during the school year in which the application is submitted as either an unaccompanied youth who is a homeless child or youth, or as unaccompanied, at risk of homelessness, and self-supporting by: A local educational agency homeless liaison The director of a program funded under subtitle B of title IV of the McKinney-Vento Homeless Assistance Act or a designee of the director A financial aid administrator The individual is a student for whom a financial aid administrator makes a documented determination of independence by reason of other unusual circumstances The individual was not claimed as a dependent by their parents pursuant to IRS regulations, as demonstrated on the parents’ most recent tax forms or the student’s FAFSA. The individual provides a certification of the amount of financial assistance that will be provided by their parents. This certification must be signed by the individual providing the support and must be submitted even if no assistance is being provided. If the PHA determines that an individual meets the definition of a vulnerable youth such a determination is all that is necessary to determine that the person is an independent student for the purposes of using only the student’s income for determining eligibility for assistance. The PHA will verify that a student meets the above criteria in accordance with the policie s in Section 7-II.E. Institution of Higher Education The PHA will use the statutory definition under section 102 of the Higher Education Act of 1965 to determine whether a student is attending an institution of higher education (see Exhibit 3-2). 12.A.b Packet Pg. 1451 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-20 Parents PHA Policy For purposes of student eligibility restrictions, the definition of parents includes biological or adoptive parents, stepparents (as long as th ey are currently married to the biological or adoptive parent), and guardians (e.g., grandparents, au nt/uncle, godparents, etc). Person with Disabilities The PHA will use the statutory definition under section 3(b ) (3)(E) of the 1937 Act to determine whether a student is a person with disabilities (see Exhibit 3-1). Veteran PHA Policy A veteran is a person who served in the active United States military, naval, or air service and who was discharged or released from such service under conditions other than dishonorable. Included in this definition are reservists, who are armed forces personnel on part time duty, and persons who served on the National Guard. Vulnerable Youth PHA Policy A vulnerable youth is an individual who meets the U.S. Department of Education’s definition of independent student in paragraphs (b), (c), or (h), as adopted in Section II of FR Notice 9/21/16: The individual is an orphan, in foster care, or a ward of the court, or was an orphan, in foster care, or ward of the court at any time when the individual was 13 years of age or older The individual is, or was immediately prior to attaining the age of majority, an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual’s state of legal residence The individual has been verified during the school year in which the application is submitted as either an unaccompanied youth who is a homeless child or youth, or as unaccompanied, at risk of homelessness, and self-supporting by: A local educational agency homeless liaison The director of a program funded under subtitle B of title IV of the McKinney-Vento Homeless Assistance Act or a designee of the director A financial aid administrator 12.A.b Packet Pg. 1452 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-21 Determining Student Eligibility If a student is applying for assistance on their own, apart from their parents, the PHA must determine whether the student is subject to the eligibility restrictions contained in 24 CFR 5.612. If the student is subject to those restrictions, the PHA must ensure that : (1) the student is individually eligible for the program, (2) either the student is independent from their parents or the student’s parents are income eligible for the program, and (3) the “family” with which the student is applying is collectively eligible for the program. PHA Policy For any student who is subject to the 5.612 restrictions, the PHA will: Follow its usual policies in determining whether the student individually and the student’s “family” collectively are eligible for the program Determine whether the student is independent from their parents in accordance with the definition of independent student in this section Follow the policies below, if applicable, in determining whether the student’s parents are income eligible for the program If the PHA determines that the student, the student’s parents (if applicable), or the student’s “family” is not eligible, the PHA will send a notice of denial in accordance with the policies in Section 3-III.F, and the applicant family will have the right to request an informal review in accordance with the policies in Section 16-III.B. Determining Parental Income Eligibility PHA Policy For any student who is subject to the 5.612 restrictions and who does not satisfy the definition of independent student in this section, the PHA will determine the income eligibility of the student’s parents as follows: If the student’s parents are married and living together, the PHA will obtain a joint income declaration and certification of joint income from the parents. If the student’s parent is widowed or single, the PHA will obtain an income declaration and certification of income from that parent. If the student’s parents are divorced or separated, the PHA will obtain an income declaration and certification of income from each parent. If the student has been living with one of their parents and has not had contact with or does not know where to contact their other parent, the PHA will require the student to submit a certification under penalty of perjury describing the circumstances and stating that the student does not receive financial assistance from the other parent. The PHA will then obtain an income declaration and certification of income from the parent with whom the student has been living or had contact. 12.A.b Packet Pg. 1453 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-22 In determining the income eligibility of the student’s parents, the PHA will use the income limits for the jurisdiction in which the parents live. 3-II.F. EIV SYSTEM SEARCHES [Notice PIH 2018-18; EIV FAQs; EIV System Training 9/30/20] Existing Tenant Search Prior to admission to the program, the PHA must search for all household members using the EIV Existing Tenant Search module. The PHA must review the reports for any SSA matches involving another PHA or a multifamily entity and follow up on any issues identified. The PHA must provide the family with a copy of the Existing Tenant Search results if requested. At no time may any family member receive duplicative assistance. If the tenant is a new admission to the PHA, and a match is identified at a multifamily property, the PHA must report the program admission date to the multifamily property and document the notification in the tenant file. The family must provide documentation of move-out from the assisted unit, as applicable. PHA Policy The PHA will contact the PHA or owner identified in the report to confirm that the family has moved out of the unit and obtain documentation of current tenancy status, including a form HUD-50058 or 50059, as applicable, showing an end of participation. The PHA will only approve assistance contingent upon the move-out from the currently occupied assisted unit. Debts Owed to PHAs and Terminations All adult household members must sign the form HUD-52675 Debts Owed to Public Housing and Terminations. Prior to admission to the program, the PHA must search for each adult family member in the Debts Owed to PHAs and Terminations module. If a current or former tenant disputes the information in the module, the tenant should contact the PHA directly in writing to dispute the information and provide any documentation that supports the dispute. If the PHA determines that the disputed information is incorrect, the PHA will update or delete the record from EIV. Former tenants may dispute debt and termination information for a period of up to three years from the end of participation date in the program. PHA Policy The PHA will require each adult household member to sign the form HUD-52675 once at the eligibility determination. Any new members added to the household after admission will be required to sign the form HUD-52675 prior to being added to the household. The PHA will search the Debts Owed to PHAs and Terminations module as part of the eligibility determination for new households and as part of the screening process for any household members added after the household is admitted to the program. If any information on debts or terminations is returned by the search, the PHA will determine 12.A.b Packet Pg. 1454 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-23 if this information warrants a denial in accordance with the policies in Part III of this chapter. Income and Income Validation Tool (IVT) Reports For each new admission, the PHA is required to review the EIV Income and IVT Reports to confirm and validate family reported income within 120 days of the IMS/PIC submission date of the new admission. The PHA must print and maintain copies of the EIV Income and IVT reports in the tenant file and resolve any discrepancies with the family within 60 days of the EIV Income or IVT report dates. 12.A.b Packet Pg. 1455 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-24 PART III: DENIAL OF ASSISTANCE 3-III.A. OVERVIEW A family that does not meet the eligibility criteria discussed in Parts I and II, must be denied assistance. In this section we will discuss other situations and circumstances in which denial of assistance is mandatory for the PHA, and those in which denial of assistance is optional for the PHA. While the regulations state that the PHA must prohibit admission for certain types of criminal activity and give the PHA the option to deny for other types of previous criminal history, more recent HUD rules and OGC guidance must also be taken into consideration when determining whether a particular individual’s criminal history merits denial of admission. When considering any denial of admission, PHAs may not use arrest records as the basis for the denial. Further, HUD does not require the adoption of “One Strike” policies and reminds PHAs of their obligation to safeguard the due process rights of applicants and tenants [Notice PIH 2015-19]. HUD’s Office of General Counsel issued a memo on April 4, 2016, regarding the application of Fair Housing Act standards to the use of criminal records. This memo states that a PHA violates the Fair Housing Act when their policy or practice has an unjustified discriminatory effect, even when the PHA had no intention to discriminate. Where a policy or practice that restricts admission based on criminal history has a disparate impact on a particular race, national origin, or other protected class, that policy or practice is in violation of the Fair Housing Act if it is not necessary to serve a substantial, legitimate, nondiscriminatory interest of the PHA, or if that interest could be served by another practice that has a less discriminatory effect [OGC Memo 4/4/16]. PHAs who impose blanket prohibitions on any person with any conviction record, no matter when the conviction occurred, what the underlying conduct entailed, or what the convicted person has done since then will be unable to show that such policy or practice is necessary to achieve a substantial, legitimate, nondiscriminatory interest. Even a PHA with a more tailored policy or practice that excludes individuals with only certain types of convictions must still prove that its policy is necessary. To do this, the PHA must show that its policy accurately distinguishes between criminal conduct that indicates a demonstrable risk to resident safety and property and criminal conduct that does not. 12.A.b Packet Pg. 1456 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-25 Forms of Denial [24 CFR 982.552(a)(2); HCV GB, p. 5-35] Denial of assistance includes any of the following: • Not placing the family's name on the waiting list • Denying or withdrawing a voucher • Not approving a request for tenancy or refusing to enter into a HAP contract • Refusing to process a request for or to provide assistance under portability procedures Prohibited Reasons for Denial of Program Assistance [24 CFR 982.202(b), 24 CFR 5.2005(b)] HUD rules prohibit denial of program assistance to the program based on any of the following criteria: • Age, disability, race, color, religion, sex, or national origin. (See Chapter 2 for additional information about fair housing and equal opportunity requirements.) • Where a family lives prior to admission to the program • Where the family will live with assistance under the program. Although eligibility is not affected by where the family will live, there may be restrictions on the family's ability to move outside the PHA's jurisdiction under portability (See Chapter 10.) • Whether members of the family are unwed parents, recipients of public assistance, or children born out of wedlock • Whether the family includes children • Whether a family decides to participate in a family self-sufficiency program • Whether or not a qualified applicant is or has been a victim of domestic violence, dating violence, sexual assault, or stalking if the applicant is otherwise qualified for assistance (See section 3-III.G.) • Gender identity, sexual orientation, or marital status [HUD Equal Access Rule, 77 Fed. Reg. 5662 (Feb. 3, 2012] 12.A.b Packet Pg. 1457 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-26 3-III.B. MANDATORY DENIAL OF ASSISTANCE [24 CFR 982.553(a)] HUD requires the PHA to deny assistance in the following cases: • Any member of the household has been evicted from federally-assisted housing in the last three years for drug-related criminal activity. HUD permits, but does not require, the PHA to admit an otherwise-eligible family if the household member has completed a PHA-approved drug rehabilitation program or the circumstances which led to eviction no longer exist (e.g., the person involved in the criminal activity no longer lives in the household). PHA Policy The PHA will admit an otherwise-eligible family who was evicted from federally-assisted housing within the past three years for drug-related criminal activity if the PHA is able to verify that the household member who engaged in the criminal activity has completed a supervised drug rehabilitation program approved by the PHA, or the person who committed the crime, is no longer living in the household. • The PHA determines that any household member is currently engaged in the use of illegal drugs. PHA Policy Currently engaged in is defined as any use of illegal drugs during the previous three months. • The PHA has reasonable cause to believe that any household member’s current use or pattern of use of illegal drugs, or current abuse or pattern of abuse of alcohol, may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents. PHA Policy In determining reasonable cause, the PHA will consider all credible evidence, including but not limited to, any record of convictions, arrests, or evictions of household members related to the use of illegal drugs or the abuse of alcohol. A record or records of arrest will not be used as the sole basis of determining reasonable cause. The PHA will also consider evidence from treatment providers or community-based organizations providing services to household members. • Any household member has ever been convicted of drug-related criminal activity for the production or manufacture of methamphetamine on the premises of federally assisted housing • Any household member (14 years of age or older) is subject to a lifetime registration requirement under a state sex offender registration program Medical Marijuana Based on federal law, new admissions of medical marijuana users are prohibited into the Public Housing and Housing Choice Voucher Programs. The Controlled Substances Act (CSA) 12.A.b Packet Pg. 1458 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-27 lists marijuana as a Schedule I drug, a substance with a very high potential for abuse and no accepted medical use in the United States. The Quality Housing and Work Responsibility Act (QHWRA) of 1998 (42 U.S.C. §13661) requires that PHAs administering the HUD's rental assistance programs establish standards and lease provisions that prohibit admission into the PH and HCV programs based on the illegal use of controlled substances, including state legalized medical marijuana. PHA Policy New Admissions: The PHA will not admit any medical marijuana user into the program. Current Participants who were admitted to the program prior to February 1, 2011, who can demonstrate evidence that a valid medical marijuana card was issued to the participant, as allowed for under California state law, prior to March 14, 2012, shall not be subject to termination for using or possessing medical marijuana. Acceptable documentary evidence shall be a medical marijuana card with an issuance date showing it was issued prior to March 14, 2012. In the event a medical marijuana card does not have issuance date on the card, the participant must provide a copy of the medical marijuana card and additional written documentation that demonstrates the card was issued prior to March 14, 2012. Nothing in this section shall prohibit termination for violating any lease provision, which may include a prohibition of using or possessing marijuana. 3-III.C. OTHER PERMITTED REASONS FOR DENIAL OF ASSISTANCE HUD permits, but does not require, the PHA to deny assistance for the reasons discussed in this section. Criminal Activity [24 CFR 982.553] HUD permits, but does not require, the PHA to deny assistance if the PHA determines that any household member is currently engaged in or has engaged in during a reasonable time before the family would receive assistance, certain types of criminal activity. PHA Policy If any household member is convicted of any of the following criminal activities, within the past three years, the family will be denied assistance. Drug-related criminal activity, defined by HUD as the illegal manufacture, sale, distribution, or use of a drug, or the possession of a drug with intent to manufacture, sell, distribute or use the drug [24 CFR 5.100]. Violent criminal activity, defined by HUD as any criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force substantial enough to cause, or be reasonably likely to cause, serious bodily injury or property damage [24 CFR 5.100]. 12.A.b Packet Pg. 1459 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-28 Criminal activity that may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents or persons residing in the immediate vicinity; or Criminal activity that may threaten the health or safety of property owners, management staff, and persons performing contract administration functions or other responsibilities on behalf of the PHA (including a PHA employee or a PHA contractor, subcontractor, or agent). Immediate vicinity means within the City of Santa Monica. Evidence of such criminal activity includes, but is not limited to: Any conviction for drug-related or violent criminal activity within the past three years. Records of arrests for drug-related or violent criminal activity within the past three years, although a record or records of arrest will not be used as the sole basis for the denial or proof that the applicant engaged in disqualifying criminal activity. The criminal records collected by the PHA provide a cumulative criminal history for an individual. If a criminal history report is indicative of a potential pattern of violent or predatory criminal activity, the PHA may consider criminal history records that are older than 5 years. In making its decision to deny assistance, the PHA will consider the factors discussed in Section 3-III.E. Upon consideration of such factors, the PHA may, on a case-by-case basis, decide not to deny assistance. Previous Behavior in Assisted Housing [24 CFR 982.552(c)] HUD authorizes the PHA to deny assistance based on the family’s previous behavior in assisted housing: PHAs are not permitted to deny assistance to a family because the family previously failed to meet its obligations under the Family Self-Sufficiency (FSS) program [24 CFR 984.101(d)]. PHA Policy The PHA will deny assistance to an applicant family if: The family does not provide information that the PHA or HUD determines is necessary in the administration of the program. The family does not provide complete and true information to the PHA. Any family member has been evicted from federally-assisted housing in the last three years. Any family member has committed fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program. 12.A.b Packet Pg. 1460 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-29 The family owes rent or other amounts to any PHA in connection with Section 8 or other public housing assistance under the 1937 Act, unless the family repays the full amount of the debt prior to being selected from the waiting list. If the family has not reimbursed any PHA for amounts the PHA paid to an owner under a HAP contract for rent, damages to the unit, or other amounts owed by the family under the lease, unless the family repays the full amount of the debt prior to being selected from the waiting list. The family has breached the terms of a repayment agreement entered into with the PHA, unless the family repays the full amount of the debt covered in the repayment agreement prior to being selected from the waiting list. When denying admission due to family debts as shown in HUD’s EIV system, the PHA will provide the family with a copy of the EIV Debt Owed to PHA and Termination report. If the family wishes to dispute the information in the report, the family must contact the PHA that entered the information in EIV in writing, explaining why EIV information is disputed. The family must also provide a copy of the letter and all applicable verification to the PHA to support the family’s claim. The PHA will consider the information provided by the family prior to issuing a notice of denial. A family member has engaged in or threatened violent or abusive behavior toward PHA personnel. Abusive or violent behavior towards PHA personnel or owner/agent includes verbal as well as physical abuse or violence. Use of racial epithets, or other language, written or oral, that is customarily used to intimidate may be considered abusive or violent behavior. Threatening refers to oral or written threats or physical gestures that communicate intent to abuse or commit violence. In making its decision to deny assistance, the PHA will consider the factors discussed in Section 3-III.E. Upon consideration of such factors, the PHA may, on a case-by-case basis, decide not to deny assistance. 3-III.D. SCREENING Screening for Eligibility PHAs are authorized to obtain criminal conviction records from law enforcement agencies to screen applicants for admission to the HCV program. This authority a ssists the PHA in complying with HUD requirements and PHA policies to deny assistance to applicants who are engaging in or have engaged in certain criminal activities. In order to obtain access to the records the PHA 12.A.b Packet Pg. 1461 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-30 must require every applicant family to submit a consent form signed by each adult household member [24 CFR 5.903]. PHA Policy The PHA will perform a criminal background check for every incoming adult household member. Criminal background checks will only be performed: 1. At initial admission into the programs in Santa Monica or when porting into Santa Monica from another jurisdiction; AND/OR 2. When the Head of Household is requesting to add a member to their household who is 18 years of age or older. If the results of the criminal background check indicate that there may be past criminal activity in the last 5 years, but the results are inconclusive, the PHA Administrator or other designated staff person will request an in-person meeting with the household member(s) whose records are in question. The PHA will notify the tenant/household member of his/her decision within 15 business days. While a PHA has regulatory authority to use criminal conviction records for the purpose of applicant screening for admission, there is no corresponding authority to use these records to check for criminal and illegal drug activity by participants, and therefore, PHAs may not use records for this purpose. PHAs are required to perform criminal background checks necessary to determine whether any household member is subject to a lifetime registration requirement under a state sex offender program in the state where the housing is located, as well as in any other state where a household member is known to have resided [24 CFR 982.553(a)(2)(i)]. PHA Policy The PHA will use the National Sex Offender database to screen applicants for admission. Additionally, PHAs must ask whether the applicant or any member of the applicant’s household who is 14 years of age or older, is subject to a lifetime registered sex offender registration requirement in any state [Notice PIH 2012-28]. If the PHA proposes to deny assistance based on a criminal record or on lifetime sex offender registration information, the PHA must notify the household of the proposed action and must provide the subject of the record and the applicant a copy of the record and an opportunity to dispute the accuracy and relevance of the information prior to a denial of admission. [24 CFR 5.903(f) and 5.905(d)]. Screening for Suitability as a Tenant [24 CFR 982.307] The PHA has no liability or responsibility to the owner for the family’s behavior or suitability for tenancy. The PHA has the authority to conduct additional screening to determine whether an applicant is likely to be a suitable tenant. PHA Policy 12.A.b Packet Pg. 1462 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-31 The PHA will not conduct additional screening to determine an applicant family’s suitability for tenancy. The owner is responsible for screening and selection of the family to occu py the owner’s unit. The PHA must inform the owner that screening and selection for tenancy is the responsibility of the owner. An owner may consider a family’s history with respect to factors such as: payment of rent and utilities, caring for a unit and premises, respecting the rights of other residents to the peaceful enjoyment of their housing, criminal activity that is a threat to the health, safety or property of others, and compliance with other essential conditions of tenancy. HUD requires the PHA to provide prospective owners with the family's current and prior address (as shown in PHA records) and the name and address (if known) of the owner at the family's current and prior addresses. HUD permits the PHA to provide owners with additional information, as long as families are notified that the information will be provided, and the same type of information is provided to all owners. The PHA may not disclose to the owner any confidential information provided to the PHA by the family in response to a PHA request for documentation of domestic violence, sexual assault, dating violence, or stalking except at the written request or with the written consent of the individual providing the documentation [24 CFR 5.2007(a)(4)]. PHA Policy The PHA will inform owners of their responsibility to screen prospective tenants and will provide owners with the required known name and address information, at the time of the initial inspection or before. The PHA will not provide any additional information to the owner, such as tenancy history or criminal history, etc. 3-III.E. CRITERIA FOR DECIDING TO DENY ASSISTANCE Evidence [24 CFR 982.553(c)] PHA Policy The PHA will use the concept of the preponderance of the evidence as the standard for making all admission decisions. Preponderance of the evidence is defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not. Preponderance of the evidence may not be determined by the number of witnesses, but by the greater weight of all evidence. Consideration of Circumstances [24 CFR 982.552(c)(2)] 12.A.b Packet Pg. 1463 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-32 HUD authorizes the PHA to consider all relevant circumstances when deciding wh ether to deny assistance based on a family’s past history except in the situations for which denial of assistance is mandatory (see Section 3-III.B). PHA Policy The PHA will consider the following facts and circumstances prior to making its decision: The seriousness of the case, especially with respect to how it would affect other residents’ safety or property. The effects that denial of assistance may have on other members of the family who were not involved in the action or failure to act. The extent of participation or culpability of individual family members, including whether the culpable family member is a minor or a person with disabilities, or (as discussed further in section 3-III.G) a victim of domestic violence, dating violence, sexual assault, or stalking. The length of time since the violation occurred, including the age of the individual at the time on the conduct, as well as the family’s recent history and the likelihood of favorable conduct in the future. While a record or records of arrest will not be used as the sole basis for denial, an arrest may trigger an investigation to determine whether the applicant actually engaged in disqualifying criminal activity. As part of its investigation, the PHA may obtain the police report associated with the arrest and consider the reported circumstances of the arrest. The PHA may also consider: Any statements made by witnesses or the applicant not included in the police report Whether criminal charges were filed Whether, if filed, criminal charges were abandoned, dismissed, not prosecuted, or ultimately resulted in an acquittal Any other evidence relevant to determining whether or not the applicant engaged in disqualifying activity Evidence of criminal conduct will be considered if it indicates a demonstrable risk to safety and/or property In the case of drug or alcohol abuse, whether the culpable household member is participating in or has successfully completed a supervised drug or alcohol rehabilitation program or has otherwise been rehabilitated successfully. The PHA will require the applicant to submit evidence of the household member’s current participation in or successful completion of a supervised drug or alcohol rehabilitation program, or evidence of otherwise having been rehabilitated successfully. In the case of debts owed to another PHA, SMHA will reconsider the family’s application for admission if the family either: 1) provides proof that the debt owed to the other PHA was paid 12.A.b Packet Pg. 1464 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-33 in full prior to the date the family was selected for admission, or 2) provides proof that it has paid the debt in full within 15 days of the date the family was notified that its application would be denied due to the debt owed. Removal of a Family Member's Name from the Application Should the PHA’s screening process reveal that an applicant’s household includes an individual subject to state lifetime registered sex offender registration; the PHA must offer the family the opportunity to remove the ineligible family member from the household. If the family is unwilling to remove that individual from the household, the PHA must deny admission to the family [Notice PIH 2012-28]. For other criminal activity, the PHA may permit the family to exclude the culpable family members as a condition of eligibility. [24 CFR 982.552(c)(2)(ii)]. PHA Policy As a condition of receiving assistance, a family may agree to remove the culpable family member from the application. In such instances, the head of household must certify that the family member will not be permitted to visit, stay as a guest, or reside in the assisted unit. After admission to the program, the family must present evidence of the former family member’s current address upon PHA request. Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)] If the family includes a person with disabilities, the PHA’s decision concerning denial of admission is subject to consideration of reasonable accommodation in accordance with 24 CFR Part 8. PHA Policy If the family indicates that the behavior of a family member with a disability is the reason for the proposed denial of assistance, the PHA will determine whether the behavior is related to the disability. If so, upon the family’s request, the PHA will determine whether admitting the family as a reasonable accommodation is app ropriate. The PHA will only consider accommodations that can reasonably be expected to address the behavior that is the basis of the proposed denial of assistance. See Chapter 2 for a discussion of reasonable accommodation. 3-III.F. NOTICE OF ELIGIBILITY OR DENIAL If the family is eligible for assistance, the PHA will notify the family in writing and schedule a tenant briefing, as discussed in Chapter 5. Any notification of the family’s eligibility for assistance will be translated in accordance with SMHA’s LEP Plan. 12.A.b Packet Pg. 1465 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-34 If the PHA determines that a family is not eligible for the program for any reason, the family must be notified promptly. The notice must describe: (1) the reasons for which assistance has been denied, (2) the family’s right to an informal review, and (3) the process for obtaining the informal review [24 CFR 982.554 (a)]. See Chapter 16, for informal review policies and procedures. PHA Policy The family will be notified of a decision to deny assistance in writing within 15 business days of the determination. In accordance with SMHA’s LEP Plan, a translated version of the notification of denial of assistance, and other appropriate language assistance, will be provided to LEP applicants. If a PHA uses a criminal record or sex offender registration information obtained under 24 CFR 5, Subpart J, as the basis of a denial, a copy of the record must precede the notice to deny, with an opportunity for the applicant to dispute the accuracy and relevance of the information before the PHA can move to deny the application. In addition, a copy of the record must be provided to the subject of the record [24 CFR 5.903(f) and 5.905(d)]. The PHA must give the family an opportunity to dispute the accuracy and relevance of that record, in the informal review process in accordance with program requirements [24 CFR 982.553(d)]. PHA Policy If based on a criminal record or sex offender registration information, an applicant family appears to be ineligible; the PHA will notify the family in writing of the proposed denial and provide a copy of the record to the applicant and to the subject of the record. The family will be given 10 business days to dispute the accuracy and relevance of the information. If the family does not contact the PHA to dispute the information within that 10-day period, the PHA will proceed with issuing the notice of denial of admission. A family that does not exercise their right to dispute the accuracy of the information prior to issuance of the official denial letter will still be given the opportunity to do so as part of the informal review process. Notice requirements related to denying assistance to noncitizens are contained in Section 3- II.B. Notice policies related to denying admission to applicants who may be victims of domestic violence, dating violence, sexual assault, or stalking are contained in Section 3-III.G. 3-III.G. PROHIBITION AGAINST DENIAL OF ASSISTANCE TO VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING The Violence Against Women Act of 2013 (VAWA) and the HUD regulation at 24 CFR 5.2005(b) prohibit PHAs from denying an applicant admission to programs on the basis or as a direct 12.A.b Packet Pg. 1466 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-35 result of the fact that the applicant is or has been a victim of domestic violence, dating violence, sexual assault, or stalking, if the applicant otherwise qualifies for assistance or admission. Definitions of key terms used in VAWA are provided in section 16-IX of this plan, where general VAWA requirements and policies pertaining to notification, documentation, and confidential ity are also located. Notification VAWA 2013 expanded notification requirements to include the obligation for PHAs to provide applicants who are denied assistance with a VAWA Notice of Occupancy Rights (form HUD- 5380) and a domestic violence certification form (HUD-5382) at the time the applicant is denied PHA Policy The PHA acknowledges that a victim of domestic violence, dating violence, sexual assault, or stalking may have an unfavorable history (e.g., a poor credit history, poor rental history, a record of previous damage to an apartment, a prior arrest record) due to adverse factors that would warrant denial under the PHA’s policies. While the PHA is not required to identify whether adverse factors that resulted in the applicant’s denial are a result of domestic violence, dating violence, sexual assault, or stalking, the applicant may inform the PHA that their status as a victim is directly related to the grounds for the denial. The PHA will request that the applicant provide enough information to the PHA to allow the PHA to make an objectively reasonable determination, based on all circumstances, whether the adverse factor is a direct result of their status as a victim. The PHA will include in its notice of denial the VAWA information described in section 16-IX.C of this plan as well as including a copy of the form HUD-5382. The PHA will request in writing that an applicant wishing to claim protection under VAWA notify the PHA within 14 business days. Should SMHA make a written request to an applicant seeking to assert VAWA protections, SMHA will provide a translated copy of this request, and provide other appropriate language assistance, in accordance with the SMHA LEP Plan. Documentation Victim Documentation PHA Policy If an applicant claims the protection against denial of assistance that VAWA provides to victims of domestic violence, dating violence, sexual assault or stalking, the PHA will request in writing that the applicant provide documentation supporting the claim in accordance with section 16-IX.D of this plan. Should SMHA make a written request to an 12.A.b Packet Pg. 1467 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-36 applicant seeking to assert VAWA protections, SMHA will provide a translated copy of this request, and provide other appropriate language assistance, in accordance with the SMHA LEP Plan. Perpetrator Documentation PHA Policy If the perpetrator of the abuse is a member of the applicant family, the applicant must provide additional documentation consisting of one of the following: A signed statement (1) requesting that the perpetrator be removed from the application and (2) certifying that the perpetrator will not be permitted to visit or to stay as a guest in the assisted unit. Documentation that the perpetrator has successfully completed, or is successfully undergoing, rehabilitation or treatment. The documentation must be signed by an employee or agent of a domestic violence service provider or by a medical or other knowledgeable professional from whom the perpetrator has sought or is receiving assistance in addressing the abuse. The signer must at test under penalty of perjury to their belief that the rehabilitation was successfully completed or is progressing successfully. The victim and perpetrator must also sign or attest to the documentation. EXHIBIT 3-1: DETAILED DEFINITIONS RELATED TO DISABILITIES Person with Disabilities [24 CFR 5.403] The term person with disabilities means a person who has any of the following types of conditions: • Has a disability, as defined in 42 U.S.C. Section 423(d)(1)(A), which reads: Inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death, or which has lasted or can be expected to last for a continuous period of not less than 12 months; or In the case of an individual who has attained the age of 55 and is blind (within the meaning of “blindness” as defined in section 416(i)(1) of this title), inability by reason of such blindness to engage in substantial gainful activity, requiring skills or ability comparable to those of any gainful activity in which he has previously engaged with some regularity and over a substantial period of time. • Has a developmental disability as defined in the Developmental Disabilities Assistance and Bill of Rights Act of 2000 [42 U.S.C.15002(8)], which defines developmental disability in functional terms as follows: (A) In General 12.A.b Packet Pg. 1468 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-37 The term “developmental disability” means a severe, chronic disability of an individual that: (i) is attributable to a mental or physical impairment or combination of mental and physical impairments; (ii) is manifested before the individual attains age 22; (iii) is likely to continue indefinitely; (iv) results in substantial functional limitations in 3 or more of the following areas of major life activity: (I) Self-care, (II) Receptive and expressive language, (III) Learning, (IV) Mobility, (V) Self-direction, (VI) Capacity for independent living, (VII) Economic self-sufficiency; and (v) reflects the individual’s need for a combination and sequence of spec ial, interdisciplinary, or generic services, individualized supports, or other forms of assistance that are of lifelong or extended duration and are individually planned and coordinated. (B) Infants and Young Children An individual from birth to age 9, inclusive, who has a substantial developmental delay or specific congenital or acquired condition, may be considered to have a developmental disability without meeting 3 or more of the criteria described in clauses (i) through (v) of subparagraph (A) if the individual, without services and supports, has a high probability of meeting those criteria later in life. • Has a physical, mental, or emotional impairment that is expected to be of long-continued and indefinite duration; substantially impedes their ability to live independently and is of such a nature that the ability to live independently could be improved by more suitable housing conditions. People with the acquired immunodeficiency syndrome (AIDS) or any conditions arising from the etiologic agent for AIDS are not excluded from this definition. A person whose disability is based solely on any drug or alcohol dependence does not qualify as a person with disabilities for the purposes of this program. For purposes of reasonable accommodation and program accessibility for persons with disabilities, the term person with disabilities refers to an individual with handicaps. Individual with Handicaps [24 CFR 8.3] Individual with handicaps means any person who has a physical or mental impairment that substantially limits one or more major life activities; has a record of such impairment; or is regarded as having such impairment. The term does not include any individual who is an alcoholic or drug abuser whose current use of alcohol or drugs prevents the indivi dual from participating in the program or activity in question, or whose participation, by reason of such 12.A.b Packet Pg. 1469 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-38 current alcohol or drug abuse, would constitute a direct threat to property or the safety of others. As used in this definition, the phrase: (1) Physical or mental impairment includes: (a) Any physiological disorder or condition, cosmetic disfigurement, or anatomical loss affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive; digestive; genito-urinary; hemic and lymphatic; skin; and endocrine; or (b) Any mental or psychological disorder, such as mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities. The term physical or mental impairment includes, but is not limited to, such diseases and conditions as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental retardation, emotional illness, drug addiction and alcoholism. (2) Major life activities mean functions such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning and working. (3) Has a record of such an impairment means has a history of, or has been misclassified as having, a mental or physical impairment that substantially limits one or more major life activities. (4) Is regarded as having an impairment means: (a) Has a physical or mental impairment that does not substantially limit one or more major life activities but that is treated by a recipient as constituting such a limitation; (b) Has a physical or mental impairment that substantially limits one or more major life activities only as a result of the attitudes of others toward such impairment; or (c) Has none of the impairments defined in paragraph (1) of this section but is treated by a recipient as having such an impairment. EXHIBIT 3-2: DEFINITION OF INSTITUTION OF HIGHER EDUCATION [20 U.S.C. 1001 and 1002] Eligibility of Students for Assisted Housing Und er Section 8 of the U.S. Housing Act of 1937; Supplementary Guidance; Notice [Federal Register, April 10, 2006] Institution of Higher Education shall have the meaning given this term in the Higher Education Act of 1965 in 20 U.S.C. 1001 and 1002. Definition of ‘‘Institution of Higher Education’’ From 20 U.S.C. 1001 (a) Institution of higher education. For purposes of this chapter, other than subchapter IV and part C of subchapter I of chapter 34 of Title 42, the term ‘‘institution of higher education’’ means an educational institution in any State that (1) Admits as regular students only persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate; 12.A.b Packet Pg. 1470 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-39 (2) Is legally authorized within such State to provide a program of education beyond secondary education; (3) Provides an educational program for which the institution awards a bachelor’s degree or provides not less than a 2-year program that is acceptable for full credit toward such a degree; (4) Is a public or other nonprofit institution; and (5) Is accredited by a nationally recognized accrediting agency or association, or if not so accredited, is an institution that has been granted preaccreditation status by such an agency or association that has been recognized by the Secretary for the granting of pre accreditation status, and the Secretary has determined that there is satisfactory assurance that the institution will meet the accreditation standards of such an agency or association within a reasonable time. (b) Additional institutions included. For purposes of this chapter, other than subchapter IV and part C of subchapter I of chapter 34 of Title 42, the term ‘‘institution of higher education’’ also includes— (1) Any school that provides not less than a 1-year program of training to prepare students for gainful employment in a recognized occupation and that meets the provision of paragraphs (1), (2), (4), and (5) of subsection (a) of this section; and (2) A public or nonprofit private educational institution in any State that, in lieu of the requirement in subsection (a)(1) of this section, admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located. (c) List of accrediting agencies. For purposes of this section and section 1002 of this title, the Secretary shall publish a list of nationally recognized accrediting agencies or associations that the Secretary determines, pursuant to subpart 2 of part G of subchapter IV of this chapter, to be reliable authority as to the quality of the education or training offered. Definition of ‘‘Institution of Higher Education’’ From 20 U.S.C. 1002 (a) Definition of institution of higher education for purposes of student assistance programs (1) Inclusion of additional institutions. Subject to paragraphs (2) through (4) of this subsection, the term ‘‘institution of higher educatio n’’ for purposes of subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42 includes, in addition to the institutions covered by the definition in section 1001 of this title— (A) A proprietary institution of higher education (as defined in subsection (b) of this section); (B) A postsecondary vocational institution (as defined in subsection (c) of this section); and (C) Only for the purposes of part B of subchapter IV of this chapter, an institution outside the United States that is comparable to an institution of higher education as 12.A.b Packet Pg. 1471 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-40 defined in section 1001 of this title and that has been approved by the Secretary for the purpose of part B of subchapter IV of this chapter. (2) Institutions outside the United States (A) In general. For the purpose of qualifying as an institution under paragraph (1)(C), the Secretary shall establish criteria by regulation for the approval of institutions outside the United States and for the determination that such institutions are comparable to an institution of higher education as defined in section 1001 of this title (except that a graduate medical school, or a veterinary school, located outside the United States shall not be required to meet the requirements of section 1001 (a)(4) of this title ). Such criteria shall include a requirement that a student attending such school outside the United States is ineligible for loans made, insured, or guaranteed under part B of subchapter IV of this chapter unless— (i) In the case of a graduate medical school located outside the United States— (I)(aa) At least 60 percent of those enrolled in, and at least 60 percent of the graduates of, the graduate medical school outside the United States were not persons described in section 1091(a)(5) of this title in the year preceding the year for which a student is seeking a loan under part B of subchapter IV of this chapter; and (bb) At least 60 percent of the individuals who were students or graduates of the graduate medical school outside the United States or Canada (both nationals of the United States and others) taking the examinations administered by the Educational Commission for Foreign Medical Graduates received a passing score in the year preceding the year for which a student is seeking a loan under part B of subchapter IV of this chapter; or (II) The institution has a clinical training program that was approved by a State as of January 1, 1992; or (ii) In the case of a veterinary school located outside the United States that does not meet the requirements of section 1001(a)(4) of this title, the institution’s students complete their clinical training at an approved veterinary school located in the United States. (B) Advisory panel (i) In general. For the purpose of qualifying as an institution under paragraph (1)(C) of this subsection, the Secretary shall establish an advisory panel of medical experts that shall— (I) Evaluate the standards of accreditation applied to applicant foreign medical schools; and (II) Determine the comparability of those standards to standards for accreditation applied to United States medical schools. 12.A.b Packet Pg. 1472 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-41 (ii) Special rule if the accreditation standards described in clause (i) are determined not to be comparable, the foreign medical school shall be required to meet the requirements of section 1001 of this title. (C) Failure to release information. The failure of an institution outside the United States to provide, release, or authorize release to the Secretary of such information as may be required by subparagraph (A) shall render such institution ineligible for the purpose of part B of subchapter IV of this chapter . (D) Special rule. If, pursuant to this paragraph, an institution loses eligibility to participate in the programs under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, then a student enrolled at such institution may, notwithstanding such loss of eligibility, continue to be eligible to receive a loan under part B while attending such institution for the academic year succeeding t he academic year in which such loss of eligibility occurred. (3) Limitations based on course of study or enrollment. An institution shall not be considered to meet the definition of an institution of higher education in paragraph (1) if such institution— (A) Offers more than 50 percent of such institution’s courses by correspondence, unless the institution is an institution that meets the definition in section 2471 (4)(C) of this title; (B) Enrolls 50 percent or more of the institution’s students in correspondence courses, unless the institution is an institution that meets the definition in such section, except that the Secretary, at the request of such institution, may waive the applicability of this subparagraph to such institution for good cause, as determined by the Secretary in the case of an institution of higher education that provides a 2-or 4-year program of instruction (or both) for which the institution awards an associate or baccalaureate degree, respectively; (C) Has a student enrollment in which more than 25 percent of the students are incarcerated, except that the Secretary may waive the limitation contained in this subparagraph for a nonprofit institution that provides a 2-or 4-year program of instruction (or both) for which the institution awards a bachelor’s degree, or an associate’s degree or a postsecondary diploma, respectively; or (D) Has a student enrollment in which more than 50 percent of the students do not have a secondary school diploma or its recognized equivalent, and does no t provide a 2-or 4-year program of instruction (or both) for which the institution awards a bachelor’s degree or an associate’s degree, respectively, except that the Secretary may waive the limitation contained in this subparagraph if a nonprofit instituti on demonstrates to the satisfaction of the Secretary that the institution exceeds such limitation because the institution serves, through contracts with Federal, State, or local government agencies, significant numbers of students who do not have a secondary school diploma or its recognized equivalent. 12.A.b Packet Pg. 1473 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-42 (4) Limitations based on management. An institution shall not be considered to meet the definition of an institution of higher education in paragraph (1) if— (A) The institution, or an affiliate of the institution that has the power, by contract or ownership interest, to direct or cause the direction of the management or policies of the institution, has filed for bankruptcy, except that this paragraph shall not apply to a nonprofit institution, the primary function of which is to provide health care educational services (or an affiliate of such an institution that has the power, by contract or ownership interest, to direct or cause the direction of the institution’s management or policies) that files for bankruptcy under chapter 11 of title 11 between July 1, 1998, and December 1, 1998; or (B) The institution, the institution’s owner, or the institution’s chief executive officer has been convicted of, or has pled nolo contendere or guilty to, a crime involvin g the acquisition, use, or expenditure of funds under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, or has been judicially determined to have committed fraud involving funds under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42. (5) Certification. The Secretary shall certify an institution’s qualification as an institution of higher education in accordance with the requirements of subpart 3 of part G of subchapter IV of this chapter. (6) Loss of eligibility. An institution of higher education shall not be considered to meet the definition of an institution of higher education in paragraph (1) if such institution is removed from eligibility for funds under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42 as a result of an action pursuant to part G of subchapter IV of this chapter. (b) Proprietary institution of higher education (1) Principal criteria. For the purpose of this section, the term ‘‘propri etary institution of higher education’’ means a school that— (A) Provides an eligible program of training to prepare students for gainful employment in a recognized occupation; (B) Meets the requirements of paragraphs (1) and (2) of section 1001 (a) of t his title; (C) Does not meet the requirement of paragraph (4) of section 1001 (a) of this title; (D) Is accredited by a nationally recognized accrediting agency or association recognized by the Secretary pursuant to part G of subchapter IV of this chapter; (E) Has been in existence for at least 2 years; and (F) Has at least 10 percent of the school’s revenues from sources that are not derived from funds provided under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, as determined in accordance with regulations prescribed by the Secretary. 12.A.b Packet Pg. 1474 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 3-43 (2) Additional institutions. The term ‘‘proprietary institution of higher education’’ also includes a proprietary educational institution in any State that, in lieu of the requirement in paragraph (1) of section 1001 (a) of this title, admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located. (c) Postsecondary vocational institution. (1) Principal criteria. For the purpose of this section, the term ‘‘postsecondary vocational institution’’ means a school that— (A) Provides an eligible program of training to prepare students for gainful employment in a recognized occupation; (B) Meets the requirements of paragraphs (1), (2), (4), and (5) of section 1001 (a) of this title; and (C) Has been in existence for at least 2 years. (2) Additional institutions. The term ‘‘postsecondary vocational institution’’ also includes an educational institution in any State that, in lieu of the requirement in paragraph (1) of section 1001 (a) of this title, admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located. 12.A.b Packet Pg. 1475 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 4-1 Chapter 4 APPLICATIONS, WAITLIST, AND TENANT SELECTION INTRODUCTION When a household wishes to receive assistance under the Section 8 Housing Choice Voucher (HCV) program, the household must submit an application that provides the PHA with the information needed to determine the household’s eligibility. HUD requires the PHA to place all households that apply for assistance on a waitlist. When Section 8 HCV assistance becomes available, the PHA must select applicants from the waitlist in accordance with HUD requirements and PHA policies as stated in the Administrative Plan and the Annual Plan. The PHA is required to adopt clear policies and procedures for accepting applications, placing applicants on the waitlist, and selecting applicants from the waitlist, and must follow these policies and procedures consistently. The actual order in which applicants are selected from the waitlist can be affected if an applicant has certain characteristics designated by HUD or the PHA that justify their selection. Examples of this are the selection of applicants for income targeting and the selection of applicants that qualify for targeted funding. HUD regulations require that all households have an equal opportunity to apply for and receive housing assistance, and that the PHA affirmatively further fair housing goals in the administration of the program [24 CFR 982.53, HCV GB p. 4-1]. Adherence to the selection policies described in this chapter ensures that the PHA will be in compliance with all relevant f air housing requirements, as described in Chapter 2. This chapter describes HUD and PHA policies for taking applications, managing the waitlist, and selecting applicants for Section 8 HCV assistance. The policies outlined in this chapter are organized into three sections, as follows: Part I: The Application Process. This part provides an overview of the application process and discusses how applicants can obtain and submit applications. It also specifies how the PHA will handle the applications it receives. Part II: Managing the Waitlist. This part presents the policies that govern how the PHA’s waitlist is structured, when it is opened and closed, and how the public is notified of the opportunity to apply for assistance. It also discusses the process the PHA will use to keep the waitlist current. Part III: Selection for Section 8 HCV Assistance. This part describes the policies that guide the PHA in selecting households for Section 8 HCV assistance as such assistance becomes available. It also specifies how in-person interviews will be used to ensure that the PHA has the information needed to make a final eligibility determination. 12.A.b Packet Pg. 1476 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 4-2 PART I: THE APPLICATION PROCESS 4-I.A. OVERVIEW This part describes the PHA policies for making applications available, accepting applications, making preliminary determinations of eligibility, and the placement of applicants on the waitlist. This part also describes the PHA’s obligation to ensure the accessibility of the application process to elderly persons, people with disabilities, and people with limited English proficiency (LEP). 4-I.B. APPLYING FOR ASSISTANCE [HCV GB, pp. 4-11 – 4-16, Notice PIH 2009-36] Any household that wishes to receive housing assistance must apply for admission to the program. HUD permits the PHA to determine the format and content of Section 8 HCV applications, as well as how such applications will be made available to interested households and how applications will be accepted by the PHA. The PHA must include Form HUD-92006, Supplement to Application for Federally Assisted Housing, as part of the PHA’s application. PHA Policy Applications must be completed online in the method described in the instructions on the PHA’s website in order to be accepted by the PHA for processing. All required information must be filled out before the system will accept the application. Depending upon the length of time that applicants may need to wait to receive assistance, the PHA may use a one- or two-step application process. A one-step process will be used when it is expected that a household will be selected from the waitlist within 60 days of the application. At application, the household must provide all the information necessary to establish eligibility and level of assistance. A two-step process will be used when it is expected that a household will not be selected from the waitlist for at least 60 days from the date of application. Under the two-step application process, the PHA initially will require households to provide only the information needed to make an initial assessment of the household’s eligibility and to determine the household’s placement on the waitlist. This information will be obtained from the household via a preliminary application online when applications are being accepted. As a reasonable accommodation, households may also apply by telephone. At the time of selection from the waitlist, the household will be required to provide all of the information necessary to establish household eligibility and level of assistance. The information will be obtained from the household via a full application form. 4-I.C. Accessibility of the Application Process If a person with disabilities is unable to complete the online pre-application process due to the nature of their disability, they may request a reasonable accommodation for assistance with the 12.A.b Packet Pg. 1477 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 4-3 application process. The PHA will accept reasonable accommodation requests from the time that the formal announcement of the waitlist opening is made until the waitlist closes. Requests for reasonable accommodations received before or after this period will not be approved. In order to prevent delay in the pre-application process for these individuals, the PHA will not verify with a third party the individual’s need for a reasonable accommodation. As a reasonable accommodation, the PHA may allow the applicant to apply by telephone. The applicant must contact the PHA before the deadline specified by the PHA. Limited English Proficiency PHAs are required to take reasonable steps to ensure equal access to their programs and activities by persons with limited English proficiency (LEP) [24 CFR 1]. Throughout the application, waitlist, and selection process, the PHA must ensure that LEP individuals are provided with meaningful language access in accordance with HUD’s 2007 LEP Guidance and the PHA LEP Plan. This includes, but is not limited to, providing translated documents to applicants and conducting outreach about waitlist openings/closures and admissions preferences in non-English ethnic media. Chapter 2 provides a full discussion of the PHA’s policies related to ensuring access to LEP individuals. 4-I.D. PLACEMENT ON THE WAITLIST The PHA must review each complete application received and make a preliminary assessment of the household’s eligibility. The PHA must accept applications from households for whom the list is open unless there is good cause for not accepting the application (such as denial of assistance) for the grounds stated in the regulations [24 CFR 982.206(b)(2)]. Where the household is determined to be ineligible, the PHA must notify the household in writing [24 CFR 982.201(f)]. Where the household is not determined to be ineligible, the household will be placed on a waitlist of applicants. No applicant has a right or entitlement to be listed on the waitlist, or to any particular position on the waitlist [24 CFR 982.202(c)]. Ineligible for Placement on the Waitlist PHA Policy If the PHA can determine from the information provided that a n applicant is ineligible, the applicant will not be placed on the waitlist. Where an applicant is determined to be ineligible, the PHA will send written notification of the ineligibility determination. The notice will specify the reasons for ineligibility and will inform the applicant of their right to request an informal review and explain the process for doing so (see Chapter 16). If the applicant wants to provide additional documentation, it must be submitted at the time the informal review is requested. 12.A.b Packet Pg. 1478 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 4-4 Eligible for Placement on the Waitlist PHA Policy Waitlist applicants will receive instant confirmation of receipt of application when all required information is completed. A final determination of eligibility will be made when the applicant is selected and all factors of eligibility are verified including preferences. Once the online application has been accepted, a receipt will be displayed. Waitlist status for the Section 8 HCV waitlist can be viewed on waitlistcheck.com using the account created during the application process. The status of the applications will be available in 30 business days. The PHA will not verify waitlist status via phone or email. AssistanceCheck pins will be issued for applicants to ensure applicant confidentiality. AssistanceCheck can be used to update household information. Reasonable accommodation requests regarding assistance can be made to the PHA. If the waitlist remains open indefinitely, applicants will be pulled from the waitlist based on preference and date and time of the application. PART II: MANAGING THE WAITLIST 4-II.A. OVERVIEW The PHA must have policies regarding various aspects of organizing and managing the waitlist of applicants. This includes opening the list to new applicants, closing the list to new applicants, notifying the public of waitlist openings and closings, updating waitlist information, purging the list of households that are no longer interested in or eligible for assistance, as well as conducting outreach to ensure a sufficient number of applicants. 12.A.b Packet Pg. 1479 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 4-5 In addition, HUD imposes requirements on how a PHA may structure its waitlist and how households must be treated if they apply for assistance from a PHA that administers more than one assisted housing program. 4-II.B. ORGANIZATION OF THE SECTION 8 HCV WAITLIST [24 CFR 982.204 and 205] The PHA’s waitlist must be organized in such a manner to allow the PHA to accurately identify and select applicants for assistance in the proper order, according to the admissions policies described in this plan. The waitlist must contain the following information for each applicant listed: • Applicant name; • Household size; • Date and time of application; • Qualification for any local preference; • Racial or ethnic designation of the head of household ; and • Income. HUD requires the PHA to maintain a single waitlist for the Section 8 HCV program unless it serves more than one county or municipality. Such PHAs are permitted, but not required, to maintain a separate waitlist for each county or municipality served. HUD permits, but does not require, that PHAs maintain a single merged waitlist for their public housing, Section 8 HCV, and other subsidized housing programs. A household’s decision to apply for, receive, or refuse other housing assistance must not affect the household’s placement on the Section 8 HCV waitlist, or any preferences for which the household may qualify. PHA Policy The PHA will maintain a single waitlist for Section 8 HCV vouchers. The PHA will maintain an additional waitlist for HOME vouchers, a waitlist for continuum of Care (CoC) vouchers, and multiple waitlists for project-based (PBV) Section 8 vouchers. HUD directs that a household that applies for assistance from the Section 8 HCV program must be offered the opportunity to be placed on the waitlist for any public housing, project-based voucher or moderate rehabilitation program the PHA operates if 1) the other programs’ waitlists are open, and 2) the household is qualified for the other programs. For PBV waitlist procedures, see Chapter 17. For CoC waitlist procedures, see Chapter 19. For HOME waitlist procedures, see Chapter 20. 4-II.C. OPENING AND CLOSING THE WAITLIST [24 CFR 982.206] Closing the Waitlist 12.A.b Packet Pg. 1480 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 4-6 A PHA is permitted to close the waitlist if it has an adequate pool of households to use its available assistance. Alternatively, the PHA may elect to continue to accept applications only from certain categories of households that meet particular preferences or funding criteria. PHA Policy The PHA may close the waitlist when it has an adequate pool of households to use the available assistance. Where the PHA has particular preferences or funding criteria that require a specific category of household, such as homeless or project-based voucher (PBV), the PHA may elect to continue to accept applications from these applicants while closing the waitlist to others. Reopening the Waitlist If the waitlist has been closed, it cannot be reopened until the PHA pu blishes a notice in local newspapers of general circulation, minority media, and other suitable media outlets. The notice must comply with HUD fair housing requirements and must specify who may apply, and where and when applications will be received. PHA Policy The PHA will announce the reopening of the waitlist at least 10 business days prior to the date applications will first be accepted. If the list is only being reopened for certain categories of applicants, this information will be contained in the notice. The PHA will give public notice by publishing the relevant information in suitable media outlets including, but not limited to: • Placing a notice in the local newspaper • Posting a notice in plain view in the City Hall lobby, with a translated version(s) in accordance with the PHA’s LEP Plan • Placing a notice in the Spanish language newspaper, as well as newspapers that serve other language communities in accordance with the PHA’s LEP Plan • Posting a notice in community centers, including those that serve largely non- English speaking populations • Arranging http://www.smgov.net/ and cable TV public service announcements; including announcements that are accessible in non-English languages, in accordance with the PHA’s LEP Plan • Arranging for announcements in non-English ethnic media • Sending a mailing to local Legal Aid Office, community organizations, and civic groups. 4-II.D. APPLICANT OUTREACH [HCV GB, pp. 4-2 to 4-4] 12.A.b Packet Pg. 1481 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 4-7 The PHA must conduct outreach as necessary to ensure that the PHA has a sufficient number of applicants on the waitlist to use the resources it has been allotted. Because HUD requires the PHA to admit a specified percentage of extremely low-income households to the program (see Chapter 4, Part III), the PHA may need to conduct special outreach to ensure that an adequate number of such households apply for assistance [HCV GB, p. 4-20 to 4- 21]. PHA outreach efforts must comply with fair housing requirements. This includes: • Analyzing the housing market area and the populations currently being served to identify underserved populations • Ensuring that outreach efforts are targeted to media outlets that reach eligible populations that are underrepresented in the program • Avoiding outreach efforts that prefer or exclude people who are members of a protected class. PHA outreach efforts must be designed to inform qualified households about the availability of assistance under the program. These efforts may include, as needed, any of the following activities: • Submitting press releases to local newspapers, including minority and non-English newspapers • Developing informational materials and flyers to distribute to other agencies • Providing application forms to other public and private agencies that serve the low-income population • Developing partnerships with other organizations that serve similar populations, including agencies that provide services for persons with disabilities, as well as immigrant populations. PHA Policy The PHA will monitor the characteristics of the population being served and the characteristics of the population as a whole in the PHA’s jurisdiction. Targeted outreach efforts will be undertaken if a comparison suggests that certain populations are being underserved. 4-II.E. REPORTING CHANGES IN HOUSEHOLD CIRCUMSTANCES PHA Policy While the household is on the waitlist, the household must immediately inform the PHA of changes in income and contact information, including current residence, mailing address, and phone number. The changes must be submitted in writing within 15 calendar days of the date of the change using the AssistanceCheck website. The household will not be permitted to report changes in household size or composition (add new household members not included on the household’s pre-application) after the household has received notification of being selected from the waitlist, except: 12.A.b Packet Pg. 1482 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 4-8 The household may add children who joined the household as a result of birth, adoption, or court-awarded custody. The household may add other household members due to marriage or domestic partnership (spouse, domestic partners, co-head). 4-II.F. UPDATING THE WAITLIST [24 CFR 982.204] HUD requires the PHA to establish policies to use when removing applicant names from the waitlist. Purging the Waitlist The decision to withdraw an applicant household that includes a person with disabilities from the waitlist is subject to reasonable accommodation. If the applicant did not respond to a PHA request for information or updates, and the PHA determines that the household did not respond because of the household member’s disability, the PHA must reinstate the applicant household to their former position on the waitlist [24 CFR 982.204(c)(2)]. PHA Policy The PHA reserves the right to purge the waitlist annually by removing (deleting) all applications that were not selected during the 12-month period that began on the date the waitlist was closed. To update the waitlist, the PHA will re-open the waitlist based on need or on a schedule to be determined and published on the PHA’s website. The PHA may stop accepting applications if it is determined that the existing waitlist contains an adequate pool of applicants to utilize the program funding that is available during the 12-month period following the closing of the waitlist. Applicants will be notified at time of application that their application to the waitlist is valid for a minimum of 12 months and that if not selected during that time period they may need to re-apply when the waitlist is re-opened. Removal from the Waitlist PHA Policy If at any time an applicant is on the waitlist, the PHA determines that the applicant is not eligible for assistance (see Chapter 3), the applicant will be removed from the waitlist. If an applicant is removed from the waitlist because the PHA has determined the applicant is not eligible for assistance, a notice will be sent to the applicant’s address of record as well as to any alternate address provided on the initial application. The notice will state the reasons the applicant was removed from the waitlist and will inform the household how to request an informal review regarding the PHA’s decision (see Chapter 16) [24 CFR 982.201(f)]. In accordance with the PHA’s LEP Plan, a translated version of the notice of 12.A.b Packet Pg. 1483 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 4-9 removal from the waitlist, and other appropriate language assistance, will be provided to known LEP applicants. PHA will remove names of applicants: • That do not respond to a written request for information or updates; or • If correspondence to the applicant if returned by the Postal Service for any reason. • That have become a participant in any of the PHA’s programs. In these instances, the PHA is not required to make any further effort to contact the applicant. An informal review is not required to be offered. 12.A.b Packet Pg. 1484 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 4-10 PART III: SELECTION FOR SECTION 8 HCV ASSISTANCE 4-III.A. OVERVIEW As vouchers become available, applicants on the waitlist must be selected for assistance in accordance with the policies described in this part. The order in which applicants are selected from the waitlist depends on the selection method chosen by the PHA and is impacted in part by any selection preferences for which the applicant qualifies. The availability of targeted funding may affect the order in which applicants are selected from the waitlist. The PHA must maintain a clear record of all information required to verify that the applicant is selected from the waitlist according to the PHA’s selection policies [24 CFR 982.204(b) and 982.207(e)]. 4-III.B. SELECTION AND SECTION 8 HCV FUNDING SOURCES Special Admissions (non-waitlist) [24 CFR 982.203] HUD may award funding for specifically-named households living in specified types of units (e.g., a household that is displaced by demolition of public housing; a non-purchasing household residing in a HOPE 1 or 2 projects; or a household potentially displaced because of mortgage prepayment; or HUD 811, 202, or 236 where an existing project is to convert to market). In these cases, the PHA may admit such households whether or not they are on the waitlist, and, if they are on the waitlist, without considering the household’s position on the waitlist. These households are considered non-waitlist selections. The PHA must maintain records showing that such households were admitted with special program funding. Targeted Funding [24 CFR 982.204(e)] HUD may award a PHA funding for a specified category of households on the waitlist. The PHA must use this funding only to assist the households within the specified category. In order to assist households within a targeted funding category, the PHA may skip households that do not qualify within the targeted funding category. Within this category of households, the order in which such households are assisted is determined according to the policies provided in Section 4-III.C. PHA Policy The PHA administers the following types of targeted funding: • Continuum of Care (see Chapter 19 for waitlist selection policies) and HOME programs (see Chapter 20 for waitlist selection policies). 12.A.b Packet Pg. 1485 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 4-11 Project-Based Targeting The PHA may offer additional preferences for the project-based Section 8 program (PBV) or for particular PBV projects or units. Applicants for these programs must meet additional, specific eligibility requirements. In order to assist these applicants, the PHA may skip applicants that do not qualify. (Please refer to Chapter 17 for additional details on Project-Based Vouchers) 4-III.C. SELECTION METHOD PHAs must describe the method for selecting applicants from the waitlist, including the system of admission preferences that the PHA will use [24 CFR 982.202(d)]. Local Preferences [24 CFR 982.207; HCV p. 4-16] PHAs are permitted to establish local preferences, and to give priority to serving applicants that meet those criteria. HUD specifically authorizes and places restrictions on certain types of local preferences. HUD also permits the PHA to establish other local preferences, at its discretion. Any local preferences established must be consistent with the PHA plan and the consolidated plan and must be based on local housing needs and priorities that can be documented by generally accepted data sources. PHA Policy The PHA will use the following local preferences in order listed: Tier 1 Preferences: • Displaced: Involuntarily displaced applicants are applicants who have or will (within 12 months from the date of verification) be required to vacate housing in the City of Santa Monica as a result of: ▪ A disaster (fire, flood, earthquake, civil disturbance, etc.) that occurred through no fault of the applicant; ▪ Displacement from another federal housing program for reasons beyond their control or because they did not participate in a home ownership program; ▪ Domestic Violence. Victims of domestic violence/familial abuse, sexual assault, or stalking, who have been displaced in the City of Santa Monica as a result of the victimization. Supporting documentation shall be in accordance with the guidelines in Chapter 16 Section XI. D of this Plan; ▪ Federal, state or local government action related to code enforcement, public improvement or development; ▪ An eviction pursuant to the Ellis Act or Civil Code section 798.56(g) of the Mobile Home Residency Law; 12.A.b Packet Pg. 1486 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 4-12 ▪ Owner/relative occupancy evictions from rent controlled units under Section 1806(a)(8) of the Santa Monica Rent Control Amendment and under Santa Monica City Charter, Article XVIII, Section 2304(c)(8); orOwner-occupancy decontrol of a unit in their duplex or triplex that results in the tenant paying more than 40% of their gross annual income toward rent. In order to receive the displaced preference, applicants who have been displaced in the previous 12-month period must not be living in “standard, permanent replacement housing”. Standard, permanent replacement housing is defined as housing that is decent, safe and sanitary (according to HUD HQS), that is adequate for the household size (according to HUD HQS) and that the household is occupying pursuant to a lease or occupancy agreement. Minor HQS violations that are few in a number do not disqualify replacement housing. Standard replacement housing does not include transient facilities, hotels, motels, or temporary shelters. • Households who receive a displaced preference, who have had an actual loss of their unit, will be given highest preference. For example, households who have been physically displaced from their unit as the result of a non-tenant caused fire or flood will be given the highest preference.Funding shortfalls: Applicants that have been terminated from the PHA’s Section 8 HCV program due to insufficient program funding and are at greatest risk of homelessness. CoC and supportive housing graduates: The PHA may prioritize a limited number of Section 8 HCV program vouchers for Continuum of Care program participants (“CoC graduates”) or tenants residing in City-funded supportive housing properties in Santa Monica (“supportive housing graduates”) who are stable and no longer require service participation to prevent them from recycling into homelessness. This will allow the community to serve more homeless applicants and better utilize services for those most in need. The PHA shall limit the current number of households eligible for this preference to 25 annually.Tier 1 households who qualify for the displaced or funding shortfalls preferences will have priority over CoC graduates and supportive housing graduates. The wait list for Tier 1 applicants shall always remain open. Tier 2 Preferences: • Live: Applicants who live in rent-controlled apartments in Santa Monica and pay more than 40% of their gross annual income toward rent. • Work: 12.A.b Packet Pg. 1487 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 4-13 o Applicants who work a minimum of 25 hours per week in Santa Monica. (Applicants who work for a temporary agency do not qualify for preference if they are on a temporary assignment.) o Applicants who are residents of Santa Monica and work a minimum of 25 hours per week outside of Santa Monica. o Applicants who were immediately previously in the Santa Monica workforce but are now receiving unemployment, worker’s compensation, vocational rehabilitation benefits, disability benefits, or retirement benefits from a Santa Monica employer. o Applicants who are in a job training program in Santa Monica, subject to the PHA’s approval. Tier 3: • Applicants who are residents of Santa Monica and do not meet the live or work criteria for Tier 2. (Chronically homeless applicants on the Santa Monica Service Registry are considered residents of Santa Monica). Tier 4: Applicants who do not qualify for the Tier 1 – 3 preferences. Order of Selection Within Tiers The PHA system of preferences may select households based on local preferences according to the date and time of application, or by a random selection process (lottery) [24 CFR 982.207(c)]. If a PHA does not have enough funding to assist the household at the top of the waitlist, it is not permitted to skip down the waitlist to a household that it can afford to subsidize when there are not sufficient funds to subsidize the household at the top of the waitlist [24 CFR 982.204(d) and (e)]. PHA Policy • Applicants will be selected from the waitlists based on the targeted funding or selection preference(s) for which they qualify, and in accordance with the PHA’s hierarchy of preferences, if applicable. Within each targeted funding or preference category (i.e., Tier), applicants will be selected on a first-come, first- served basis according to the date and time their complete application is received by the PHA. • Preference Denial: If the PHA denies an applicant’s preference claim, the PHA shall return the applicant to the waitlist and will notify the applicant in writing of the reasons for the denial. If the applicant fraudulently claimed the 12.A.b Packet Pg. 1488 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 4-14 preference (i.e., by falsifying documents), the application is denied and removed from the waitlist. The notice shall advise the applicant of their right to contest denial of preference (informal review). Income Targeting Requirement [24 CFR 982.201(b)(2)] HUD requires that extremely low-income (ELI) households make up at least 75% of the households admitted to the Section 8 HCV program during the PHA’s fiscal year. ELI households are those with annual incomes at or below 30% of the area median income. To ensure this requirement is met, a PHA may skip non-ELI households on the waitlist in order to select an ELI household. Low income households admitted to the program that are “continuously assisted” under the 1937 Housing Act [24 CFR 982.4(b)], as well as low-income or moderate-income households admitted to the program that are displaced as a result of the prep ayment of the mortgage or voluntary termination of an insurance contract on eligible low-income housing, are not counted for income targeting purposes [24 CFR 982.201(b)(2)(v)]. PHA Policy The PHA will monitor progress in meeting the income-targeting requirement throughout the fiscal year. Extremely low-income households will be selected ahead of other eligible households on an as-needed basis to ensure the income-targeting requirement is met. 4-III.D. NOTIFICATION OF SELECTION When a household has been selected from the waitlist, the PHA must notify the household [24 CFR 982.554(a)]. PHA Policy The PHA will notify the applicant when selected from the waitlist. Applicants must complete an application and provide all required documentation by the date specified, or the applicant will be removed from the waitlist. After two documented attempts to notify the applicant without response, the applicant will be removed from the waitlist. In accordance with PHA’s LEP Plan, the PHA will include a translated statement for LEP applicants in the selection notification packet; this statement will notify LEP applicants of the availability of translated materials and additional language assistance. 4-III.E. THE APPLICATION INTERVIEW HUD recommends that the PHA obtain the information and documentation needed to make an eligibility determination though a face-to-face interview with a PHA representative [HCV GB, pg. 4- 16]. Being invited to attend an interview does not constitute admission to the program. 12.A.b Packet Pg. 1489 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 4-15 Assistance cannot be provided to the household until all SSN documentation requirements are met. However, if the PHA determines that an applicant household is otherwise eligible to participate in the program, the household may retain its place on the waitlist for a period of time determined by the PHA [Notice PIH 2012-10, Final Streamlining Rule; See Chapter 7 for PHA’s Verification Policies] Reasonable accommodation must be made for persons with disabilities who are unable to attend an interview due to their disability. PHA Policy Households selected from the waitlist are required to participate in an eligibility interview. All adult household members are required to attend the interview together. Other household members may be required to attend the interview if it is necessary to make an eligibility determination. The adult household members must provide acceptable documentation of legal identity. (Chapter 7 provides a discussion of proper documentation of legal identity). If any adult household member does not provide the required documentation at the time of the interview, they will be required to provide it within 10 business days. Pending disclosure and documentation of social security numbers, the PHA will allow the household to retain its place on the waitlist for three months. If all household members have not disclosed their SSNs at the next time the PHA is issuing vouchers, the PHA will issue a voucher to the next eligible applicant on the waitlist. The household must provide the information necessary to establish the household’s eligibility and determine the appropriate level of assistance, and must complete required forms, provide required signatures, and submit required documentation. If any materials are missing, the PHA will provide the household with a written list of items that must be submitted. Any required documents or information that the household is unable to provide at the interview must be provided within five business days of the interview (Chapter 7 provides details about longer submission deadlines for particular items, including documentation of eligible noncitizen status). If the household is unable to obtain the information or materials within the required time frame, an extension may be granted depending upon the circumstances. If the required documents and information are not provided within the required time frame (plus any extensions), the household will be sent a notice of denial (See Chapter 3). Per the PHA’s LEP Policy (see Chapter 2, Part III LEP for more information), an advocate, interpreter, or other assistant may assist the household with the application and the interview process. No minor children will be permitted to act as an interpreter for these interviews. Interviews will be conducted in English. For LEP applicants, the PHA will provide interpretation services free of charge in accordance with the PHA’s LEP plan. 12.A.b Packet Pg. 1490 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 4-16 During the interview process, the PHA will also provide translated copies of any documents considered to be “vital documents” in accordance with the PHA LEP Plan. If the household is unable to attend a scheduled interview, the household should contact the PHA in advance of the interview to reschedule a new appointment. Applicants who fail to attend the scheduled interview without PHA approval will be denied assistance based on the household’s failure to supply information needed to determine eligibility. A notice of denial will be issued in accordance with policies contained in Chapter 3. 4-III.F. COMPLETING THE APPLICATION PROCESS The PHA must verify all information provided by the household (see Chapter 7). Based on verified information, the PHA must make a final determination of eligibility (see Chapter 3) and must confirm that the household qualified for any special admission, targeted funding, or selection preference that affected the order in which the household was selected from the waitlist. PHA Policy If the PHA determines that the household is ineligible, the PHA will send written notification of the ineligibility determination within 10 business days of the determination. The notice will specify the reasons for ineligibility and will inform the household of its right to request an informal review (Chapter 16). Additional documentation to be considered by the PHA must be provided by applicant at the time of request for the informal re view. If a household fails to qualify for any criteria that affected the order in which it was selected from the waitlist (e.g. targeted funding, extremely low-income), the household will be returned to the waitlist. The PHA will notify the household in writing that it has been returned to the waitlist and will specify the reasons for it. If the applicant made fraudulent claims (i.e., by falsifying documents), they will be removed from the waitlist. In accordance with the PHA’s LEP Plan, a translated version of the notice of ineligibility, and/or notification of the availability of other appropriate language assistance regarding the notice, will be provided to LEP applicants. If the PHA determines that the household is eligible to receive assistance, the PHA will invite the applicant and all household members to attend a briefing in accordance with the policies in Chapter 5. 12.A.b Packet Pg. 1491 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 4-17 EXHIBIT 4-1: PHA’S SECTION 8 HCV WAITLIST & HIERARCHY OF PREFERENCES The below table is a summary; please see section 4-III.C. SELECTION METHOD for more detailed information on each preference. TIER PREFERENCES POINT VALUE One Displaced Preference: • An involuntarily displaced household who has or will be required to vacate housing in the City of Santa Monica 5 One Funding Shortfalls Preference: • An eligible household that was previously terminated from a PHA program due to insufficient program funding 4 One Continuum of Care (CoC) Graduate or Supportive Housing Graduate Preference: • CoC graduates or tenants residing in City-funded supportive housing properties in Santa Monica who are stable and no longer require service participation to prevent them from recycling into homelessness. The PHA shall limit the current number of households eligible for this preference to 25 annually. 3 Two • Live Preference: Applicants who live in rent-controlled apartments in Santa Monica and pay more than 40% of their gross annual income toward rent. • Work Preference: Applicants who work a minimum of 25 hours per week in Santa Monica (Applicants who work for a temporary agency do not qualify for preference if they are on a temporary assignment.) • Applicants who are residents of Santa Monica and work a minimum of 25 hours per week outside of Santa Monica. • Applicants who were immediately previously in the Santa Monica workforce but are now receiving unemployment, worker’s compensation, vocational rehabilitation benefits, disability benefits or retirement benefits from a Santa Monica employer. • Applicants who are in a job training program in Santa Monica, subject to the PHA’s approval. 2 Three Applicants who are residents of Santa Monica and do not meet the live or work criteria for Tier 2. 1 12.A.b Packet Pg. 1492 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 4-18 Four Applicants who do not qualify for the Tier 1 – 3 preferences. 0 The numerical point values indicated in the table above reflect the priorities among Tiers 1 – 4. Households can meet the criteria for only one of the point values. 12.A.b Packet Pg. 1493 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 5-1 CHAPTER 5: BRIEFINGS AND VOUCHER ISSUANCE INTRODUCTION This chapter explains the briefing and voucher issuance process. When a family is determined to be eligible for the Housing Choice Voucher (HCV) program, the PHA must ensure that the family fully understands the way the program operates and the family’s obligations under the program. This is accomplished through both an oral briefing and provision of a briefing packet containing of the HUD-required documents and other information the family needs to know in order to lease a unit under the program. Once the family is fully informed of the program’s requirements, the PHA issues the family a voucher. The voucher includes the unit size for which the family qualifies based on the PHA’s subsidy standards, as w ell as the issue and expiration date of the voucher. The voucher is the document that authorizes the family to begin its search for a unit and limits the amount of time the family must successfully locate an acceptable unit. This chapter describes HUD regulations and PHA policies related to these topics in two parts: Part I: Briefings and Family Obligations. This part details the program’s requirements for briefing families orally, and for providing written materials describing the program and its requirements. It includes a focus on the family’s obligations under the program. Part II: Subsidy Standards and Voucher Issuance. This part discusses the PHA’s standards for determining how many bedrooms a family of a given composition qualifies for, which in turn affects the amount of subsidy the family can receive. It also discusses the policies that dictate how vouchers are issued, and how long families must locate a unit. 12.A.b Packet Pg. 1494 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 5-2 PART I: BRIEFINGS AND FAMILY OBLIGATIONS 5-I.A. OVERVIEW HUD regulations require the PHA to conduct mandatory briefings for applicant families who qualify for a voucher. The briefing provides a broad description of owner and family responsibilities, explains the PHA’s procedures, and includes instructions on how to lease a unit. This part describes how oral briefings will be conducted, specifies what written information will be provided to families via the SMHA website, and lists the family’s obligations under the program. 5-I.B. BRIEFING [24 CFR 982.301] Notification of Briefing Prior to issuance of a voucher, the PHA must give the family an oral briefing and provide the family with a briefing packet containing written information about the program. Families may be briefed in individual face-to-face meetings, through group briefing sessions, or via remote briefing sessions. PHA Policy Families will be notified of their eligibility for assistance at the time they are invited to a briefing. The notice will be sent by first class mail and will also be sent by email if the family has provided a valid email address to the PHA. The notice will advise the family of the type of briefing, who is required to be present at the briefing, and the date and time of the briefing. The notice will also inform the family of any additional requirements for in-person or remote briefings as addressed in relevant policy elsewhere in this section. If the notice is returned by the post office with no forwarding address, the applicant will be denied and their name will not be placed back on the waiting list. If the notice is returned by the post office with a forwarding address, the notice will be resent to the address indicated. In-Person Briefing At the briefing, the PHA must ensure effective communication in accordance with Section 504 requirements (Section 504 of the Rehabilitation Act of 1973) and ensure that the briefing site is accessible to individuals with disabilities. For a more thorough discussion of accessibility requirements, refer to Chapter 2. PHA Policy Briefing packets containing written information about the program are available to participants online through their AssistanceCheck account. Paper copies are available for participants upon request. 12.A.b Packet Pg. 1495 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 5-3 In-person briefings will generally be conducted in group meetings. At the family’s written request, the PHA may provide an individual briefing. The head of household is required to attend the briefing. Families that attend group briefings and still need individual assistance will be referred to an appropriate PHA staff person. Briefings will be conducted in English. For limited English proficient (LEP) applicants, the PHA will provide interpretation services free of charge in accordance with the PHA’s LEP plan (See Chapter 2). Before and during the briefing process, SMHA will also provide translated copies of any documents considered to be “vital documents” in accordance w ith the SMHA LEP Plan. Attendance PHA Policy Applicants who fail to attend a scheduled in-person briefing will be scheduled for another briefing automatically. The PHA will notify the family of the date and time of the second scheduled briefing. Applicants who fail to attend two scheduled briefings, without prior PHA approval, will be denied assistance (see Chapter 3). Remote Briefings [Notice PIH 2020-32] Remote briefings may be conducted over the phone, via video conferencing, or through other virtual platforms. PHA Policy The PHA has the sole discretion to require that briefings be conducted remotely in case of local, state, or national physical distancing orders, and in cases of inclement weather or natural disaster. If the PHA schedules a remote briefing, the PHA will conduct a face-to- face briefing upon request of the applicant as a reasonable accommodation for a person with a disability if safety and health concerns can be reasonably addressed. In addition, the PHA will conduct a briefing remotely upon request of the applicant as a reasonable accommodation for a person with a disability, if an applicant does not have child care or transportation that would enable them to attend the briefing, or if the applicant believes an in-person briefing would create an undue health risk. The PHA will consider other reasonable requests for a remote briefing on a case-by-case basis. Accessibility Requirements for Persons with Disabilities and LEP Individuals As with in-person briefings, the platform for conducting remote briefings must be accessible and the briefing conducted in accordance with Section 504 and accessibility requirements. This includes ensuring any information, websites, emails, digital notifications, and other virtual platforms are accessible for persons with vision, hearing, and other disabilities. Further, providing effective communication in a digital context may require the use of individualized auxiliary aids or services, such as audio description, captioning, sign language and other types of interpreters, keyboard accessibility, accessible documents, screen reader support, and transcripts. 12.A.b Packet Pg. 1496 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 5-4 Auxiliary aids or services must be provided in accessible formats, in a timely manner, and in such a way to protect the privacy and independence of the individual. If no method of conducting a remote briefing is available that appropriately accommodates an individual’s disability, the PHA may not hold against the individual their inability to participate in the remote briefing, and the PHA should consider whether postponing the remote briefing to a later date is appropriate or whether there is a suitable alternative. Due to the individualized nature of disability, the appropriate auxiliary aid or service necessary, or reasonable accommodation, will depend on the specific circumstances. Limited English Proficiency (LEP) requirements also apply to remote briefings, including the use of interpretation services and document translation. See Chapter 2 for a more thorough discussion of accessibility and LEP requirements, all of which apply in the context of remote briefings. Conducting Remote Briefings The PHA must ensure that the lack of technology or inability to use technology for remote briefings does not pose a disadvantage to families that may not be apparent to the PHA. The PHA must ensure that the family has appropriate technological access in order to fully participate in the remote briefing. PHA Policy At least 10 business days prior to scheduling the remote briefing, the PHA will provide written notification via first class mail and/or email to families participating in the briefing to advise of technological requirements and to request the family notify the PHA of any known barriers. If any family does not respond within five business days, or if the written notification is returned by the post office or the email is rejected, the PHA will contact the family by telephone to identify potential technological barriers and to determine which technology resources are accessible to the family. The PHA will resolve any barriers using the guidance in Section 6 of Notice PIH 2020-32, including offering the family the opportunity to attend an in-person briefing or have a one-on-one briefing over the phone, as appropriate. The PHA will conduct remote briefings via a video conferencing platform when available. If applicants are unable to adequately access the video conferencing platform, the briefing will be conducted by telephone conferencing call-in. If the family is unable to adequately access the telephone conferencing call-in, the remote briefing will be postponed, and an in-person alternative or one-on-one briefing over the phone will be provided. The PHA will provide login information and/or conferencing call-in information and an electronic copy of the briefing packet via email at least five business days before the briefing. The PHA will provide a paper copy of the briefing packet upon family request, and may reschedule the briefing to allow adequate time for the family to receive the physical briefing packet. The PHA will ensure that all electronic information stored or transmitted as part of the briefing meets the requirements for accessibility for persons with disabilities and persons 12.A.b Packet Pg. 1497 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 5-5 with LEP, and is secure, including ensuring personally identifiable information (PII) is protected. The PHA will ensure that families who participate in remote briefings have the opportunity to ask questions as part of the briefing. If families lose connectivity during any remote briefing or otherwise feel they were unable to access information presented during the briefing, the family may request a one- on-one briefing over the phone or in person with the PHA. Oral Briefing [24 CFR 982.301(a)] Each briefing must provide information on the following subjects: • How the Housing Choice Voucher program works; • Family and owner responsibilities; • Where the family can lease a unit, including renting a unit inside or outside the PHA’s jurisdiction; • An explanation of how portability works. The PHA may not discourage the family from choosing to live anywhere in the PHA jurisdiction or outside the PHA jurisdiction under portability, unless otherwise expressly authorized b y statute, regulation, PIH Notice, or court order; • The PHA must inform the family of how portability may affect the family’s assistance through screening, subsidy standards, payment standards, and any other elements of the portability process which may affect the family’s assistance; • The advantages of areas that do not have a high concentration of low-income families; and • For families receiving welfare-to-work vouchers, a description of any local obligations of a welfare-to-work family and an explanation that failure to meet the obligations is grounds for denial of admission or termination of assistance. In briefing a family that includes a person with disabilities, PHA must also take steps to ensure effective communication. Briefing Packet [24 CFR 982.301(b); New HCV GB, Housing Search and Leasing, p. 7] Documents and information provided in the briefing packet must include the following: • The term of the voucher, voucher suspensions, and the PHA’s policies on any extensions of the term. If the PHA allows extensions, the packet must explain how the family can request an extension. • A description of the method used to calculate the housing assistance payment for a family, including how the PHA determines the payment standard for a family, how the PHA determines total tenant payment for a family, and information on the payment standard and utility allowance schedule. 12.A.b Packet Pg. 1498 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 5-6 • An explanation of how the PHA determines the maximum allowab le rent for an assisted unit. • Where the family may lease a unit and an explanation of how portability works, including information on how portability may affect the family’s assistance through screening, subsidy standards, payment standards, and any other elements of the portability process that may affect the family’s assistance; • The HUD-required tenancy addendum, which must be included in the lease. • The form the family must use to request approval of tenancy, and a description of the procedure for requesting approval for a tenancy. • A statement of the PHA policy on providing information about families to prospective owners. • The PHA subsidy standards including when and how exceptions are made. • Materials (e.g., brochures) on how to select a unit and any additional information on selecting a unit that HUD provides (e.g., HUD brochure entitled, “A Good Place to Live”). • Information on federal, state and local equal opportunity laws and a copy of the housing discrimination complaint form, including information on how to complete the form and file a fair housing complaint. • A list of landlords known to the PHA who may be willing to lease a unit to the family or other resources (e.g., newspapers, organizations, online search tools) known to the PHA that may assist the family in locating a unit. PHAs must ensure that the list of landlords or other resources covers areas outside of poverty or minority concentration. • Notice that if the family includes a person with disabilities, the family may request a list of available accessible units known to the PHA. • The family obligations under the program, including any obligations of a welfare-to-work family, and any obligations of other special programs if the family is participating in one of those programs. • The grounds on which the PHA may terminate assistance for a participant family because of family action or failure to act. • PHA informal hearing procedures including when the PHA is required to offer a participant family the opportunity for an informal hearing, and how to request the hearing. • An explanation of the advantages of moving to an area that does not have a high concentration of low-income families. • The HUD pamphlet on lead-based paint entitled, “Protect Your Family from Lead in Your Home." If the PHA is located in a metropolitan area, the following additional information must be included in the briefing packet in order to receive full points under SEMAP Indicator 7, Expanding Housing Opportunities [24 CFR 985.3(g)]. 12.A.b Packet Pg. 1499 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 5-7 • Maps showing areas with housing opportunities outside areas of poverty or minority concentration, both within its jurisdiction and its neighboring jurisdiction. • Information about the characteristics of these areas including job opportunities, schools, transportation and other services. • An explanation of how portability works, including a list of portability contact persons for neighboring PHAs including names, addresses, and telephone n umbers. Additional Items to be Included in the Briefing Packet In addition to items required by the regulations, PHAs may wish to include supplemental materials to help explain the program to both participants and owners [HCV GB p. 8-7, Notice PIH 2017-12]. PHA Policy The PHA will provide the following additional materials in the briefing pa cket: Information on how to fill out and file a housing discrimination complaint form The publication Things You Should Know (HUD-1140-OIG) that explains the types of actions a family must avoid and the penalties for program abuse The form HUD-5380 domestic violence certification form and the form HUD- 5382 notice of occupancy rights, which contains information on VAWA protections for victims of domestic violence, dating violence, sexual assault, and stalking “Is Fraud Worth It?” (form HUD-1141-OIG), which explains the types of actions a family must avoid and the penalties for program abuse “What You Should Know about EIV,” a guide to the Enterprise Income Verification (EIV) system published by HUD as an attachment to Notice PIH 2017- 12 Proof of effort search record. Packet for owners with an HQS checklist. Eligibility requirements for medical expense deduction. Family Self-Sufficiency Program information. Information regarding risks associated with lead-based paint. Reminder to family that it is mandatory that the household report any changes in Household Income (for all household members 18 and older) in writing within 10 business days. This reminder shall detail information about income discrepancies and the Income Verification system used by the PHA. 5-I.C. FAMILY OBLIGATIONS Obligations of the family are described in the housing choice voucher (HCV) regulations and on the voucher itself. These obligations include responsibilities the family is required to fulfill, as 12.A.b Packet Pg. 1500 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 5-8 well as prohibited actions. The PHA must inform families of these obligations during the oral briefing, and the same information must be included in the briefing packet. When the family’s unit is approved and the HAP contract is executed, the family must meet those obligations in order to continue participating in the program. Violation of any family obligation may result in termination of assistance, as described in Chapter 12. Time Frames for Reporting Changes Required by Family Obligations PHA Policy Unless otherwise noted below, when family obligations require the family to respond to a request or notify the PHA of a change, notifying the PHA of the request or change within 10 business days is considered prompt notice. When a family is required to provide notice to the PHA, the notice must be in writing. Family Obligations [24 CFR 982.551] The family obligations of the voucher are listed as follows: 1. The family must supply any information that the PHA or HUD determines to be necessary in the administration of the program, including submission of required evidence of citizenship or eligible immigration status. “Information” includes any requested certification, release or other documentation. 2. The family must supply any information requested by the PHA or HUD for use in a regularly scheduled reexamination or interim reexamination of family income and composition in accordance with HUD requirements. 3. The family must disclose and verify social security numbers and sign and submit consent forms for obtaining information. 4. Any information supplied by the family must be true and complete. 5. The family is responsible for any Housing Quality Standards (HQS) breach caused by the family as described in 24 CFR Section 982.404(b). a. PHA Policy The tenant is responsible to notify the owner in writing of any/all items needing repair in the apartment or other issues related to damage or inoperability in the apartment, whether they are tenant caused or the result of normal wear an d tear. 6. The family must allow the PHA to inspect the unit at reasonable times and after reasonable notice, as described in Chapter 8 of this plan. 7. The family must not commit any serious violation of the lease. PHA Policy The PHA will determine if a family has committed serious violations of the lease based on available evidence, including but not limited to, a court-ordered eviction, or an owner’s notice to evict, police reports, and affidavits from the owner, neighbors, or other credible parties with direct knowledge. 12.A.b Packet Pg. 1501 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 5-9 Serious lease violations will include, but not be limited to, nonpayment of rent, disturbance of neighbors, destruction of property, or living or housekeeping habits that cause damage to the unit or premises, pose a safety hazard, or are criminal activities. Generally, the criterion to be used will be whether or not the reason for the eviction was the fault of the tenant or guests. Any incidents of, or criminal activity related to, domestic violence, dating violence, sexual assault, or stalking will not be construed as serious lease violations by the victim [42 U.S.C. § 14043e-11(b)(3)(A); 24 CFR 5.2005(c)(1)]. 8. The family must notify the PHA and the owner before moving out of the unit or terminating the lease. PHA Policy The family must comply with lease requirements regarding written notice to the owner. The family must provide written notice to the PHA at the same time the owner is notified, but no less than 30 days. The family must request PHA approval to move and comply with PHA’s transfer and portability procedures. The family must submit the request to move in writing at least sixty (60) days before the requested lease termination/move out date. 9. The family must promptly give the PHA a copy of any owner eviction notice within 10 business days. PHA Policy The family must promptly provide to the PHA a copy of any rent increase notice, notice of lease violation, or other official notice served on the family by the landlord, including notices of rent increase and notices of lease violation . The family must promptly provide to PHA a copy of any notice served on the family by the landlord, 10. The family must use the assisted unit for residence by the family. The unit must be the family’s only residence. The composition of the assisted family residing in the unit must be approved by the PHA. The family must promptly notify the PHA in writing of the birth, adoption, or court-awarded custody of a child. The family must request PHA approval to add any other family member as an occupant of the unit in advance. A criminal background will be conducted prior to adding any member to the household if the member is age 18 or older. No other person(s) (i.e., nobody but members of the assisted family) may reside in the unit (except for a foster child or live-in aide as provided below). 11. PHA Policy The request to add a family member must be submitted in writing and approved prior to the person moving into the unit. The PHA will d etermine eligibility of the new member in accordance with the policies in Chapter 3. 12.A.b Packet Pg. 1502 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 5-10 12. The family must promptly notify the PHA in writing if any family member no longer lives in the unit. PHA Policy The notification of a change in household size must be submitted in writing and may require PHA approval prior to the person being removed from the household. 13. If the PHA has given approval, a foster child or a live-in aide may reside in the unit. The PHA has the discretion to adopt reasonable policies concerning residency by a foster child or a live-in aide, and to define when PHA consent may be given or denied. For policies related to the request and approval/disapproval of foster children, foster adults, and live-in aides, see Chapter 3 (Sections I.K and I.M), and Chapter 11 (Section II.B). 14. Members of the household may engage in legal profitmakin g activities in the unit, but only if such activities are incidental to primary use of the unit for residence by m embers of the family. 15. The family must not sublease or let the unit. PHA Policy Subleasing includes receiving payment to cover rent and utility costs by a person living in the unit who is not listed as a household member. 16. The family must not assign the lease or transfer the unit. 17. The family must supply any information or certification requested by the PHA to verify that the family is living in the unit, or related to family absence from the unit, including any PHA- requested information or certification for the purposes of family absences. The family must cooperate with the PHA for this purpose. The family must promptly notify the PHA of absence from the unit. PHA Policy Notice is required under this provision when any family member will be absent from the unit for an extended period. An extended period is defined as any period greater than 30 calendar days. Written notice must be provided to the PHA prior to the start of the extended absence. 18. The family must not own or have any interest in the unit (other than in a cooperative and owners of a manufactured home leasing a manufactured home space). 19. Family members must not commit fraud, bribery, or any other corrupt or criminal act in connection with the program (See Chapter 14, Program Integrity for additional information). 20. Family members must not engage in drug-related criminal activity or violent criminal activity or other criminal activity that threatens the health, safety or right to peaceful enjoyment of other residents and persons residing in the immediate vicinity of the premises (See Chapter 12 for HUD and PHA policies related to drug-related and violent criminal activity). 12.A.b Packet Pg. 1503 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 5-11 21. Members of the household must not engage in abuse of alcohol in a way that threatens the health, safety or right to peaceful enjoyment of the other residents and persons residing in the immediate vicinity of the premises (See Chapter 12 for a discussion of HUD and PHA policies related to alcohol abuse). 22. An assisted family or member of the family must not receive HCV program assistance while receiving another housing subsidy, for the same unit or a different unit under any other federal, state or local housing assistance program. 23. A family must not receive HCV program assistance while residing in a unit owned by a parent, child, grandparent, grandchild, sister or brother of any member of the family, unless the PHA has determined (and has notified the owner and the family of such determination) that approving rental of the unit, notwithstanding such relationship, would provide reasonable accommodation for a family member who is a person with disabilities. [Form HUD-52646, Voucher] 24. The family must immediately notify the PHA in writing of any increases in family income or assets. 25. The family must immediately notify the PHA in writing when a full-time adult student is no longer enrolled and/or attending school full-time. 26. The family must pay utility bills and provide and maintain any appliances that the owner is not required to provide under the lease [Form HUD-52646, Voucher]. 27. The family (including each family member) must not damage the unit or premises (other than damage from ordinary wear and tear) or permit any guest to damage the unit or premises. 28. The family agrees not to pay the owner/landlord any additional compensation (either monetary or other) other than that which is approved by the lease or approved by the PHA. 29. The family must not engage in or threaten abusive or violent beha vior towards any PHA employee or representative. 12.A.b Packet Pg. 1504 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 5-12 PART II: SUBSIDY STANDARDS AND VOUCHER ISSUANCE 5-II.A. OVERVIEW The PHA must establish subsidy standards that determine the number of bedrooms needed for families of different sizes and compositions. This part presents the policies that will be used to determine the family unit size (also known as the voucher size) a particular family should receive, and the policies that govern making exceptions to those standards. The PHA must also establish policies related to the issuance of the voucher, to the voucher term, and to any extensions of the voucher term. 5-II.B. DETERMINING FAMILY UNIT (VOUCHER) SIZE [24 CFR 982.402] For each family, the PHA determines the appropriate number of bedrooms under the PHA subsidy standards and enters the family unit size on the voucher that is issued to the family. The family unit size does not dictate the size of unit the family must actually lease, nor does it determine who within a household will share a bedroom/sleeping room . The following requirements apply when the PHA determines family unit size: • The subsidy standards must provide for the smallest number of bedrooms needed to house a family without overcrowding. • The subsidy standards must be consistent with space requiremen ts under the housing quality standards. • The subsidy standards must be applied consistently for all families of like size and composition. • A child who is temporarily away from the home because of placement in foster care is considered a member of the family in determining the family unit size. PHA Policy If the child is or is expected to be absent from the assisted unit for more than 90 consecutive days, the voucher size will be reduced in accordance with the PHA’s subsidy standards. Temporarily away is defined as any period less than 90 calendar days. Written notice must be provided to the PHA within 10 days of the chi ld’s removal. • A family that consists of a pregnant woman (with no other persons) must be treated as a two-person family. • Any live-in aide (approved by the PHA to reside in the unit to care for a family member who is disabled or is at least 50 years of age) must be counted in determining the family unit size; • Unless a live-in-aide resides with a family, the family unit size for any family consisting of a single person must be either a zero- or one-bedroom unit, as determined under the PHA subsidy standards. An approved live-in aide will not be given a designated bedroom unless necessary by reasonable accommodation. 12.A.b Packet Pg. 1505 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 5-13 PHA Policy The PHA will assign one bedroom for each two persons within the household, except in the following circumstances: Single person families will be allocated a zero or 1-bedroom Space will not be provided for any family member who is absent from the home in excess of 90 consecutive days per calendar year. The number of bedrooms on the voucher cannot be more than the number of persons in the household. At admission, the PHA will reference the following chart in determining the appropriate voucher size for a family: Voucher Size Persons in Household (Minimum – Maximum) 0 Bedroom 1-2 1 Bedroom 1-3 2 Bedrooms 3-5 3 Bedrooms 5-7 4 Bedrooms 7-9 5 Bedrooms 9-11 PHA Policy If a family reports a reduction in family size which would result in there being less than one person per bedroom, the household will be given notice that they have 12 months to search for a new unit and referred to opportunities available in other Santa Monica affordable housing programs, such as the Affordable Housing Production Program. At the end of the 12 months, the subsidy size will be reduced to no more than one bedroom per person unless necessary by reasonable accommodation. Proof of effort must be provided at annual recertification. 5-II.C. EXCEPTIONS TO SUBSIDY STANDARDS In determining family unit size for a particular family, the PHA may grant an exception to its established subsidy standards if the PHA determines that the exception is justified by the age, sex, health, handicap, or relationship of family members or other personal circumstances [24 CFR 982.402(b)(8)]. Reasons may include, but are not limited to: • A need for an additional bedroom for medical equipment • A need for a separate bedroom for reasons related to a family member’s disability, medical or health condition 12.A.b Packet Pg. 1506 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 5-14 For a single person who is not elderly, disabled, or a remaining family member, an exception cannot override the regulatory limit of a zero or one bedroom [24 CFR 982.402(b)(8)]. PHA Policy The PHA will consider granting an exception for any of the reasons specified in the regulation: the age, sex, health, handicap, or relationship of family members or other personal circumstances. The family must request any exception to the subsidy standards in writing. The request must explain the need or justification for a larger family unit size, and must include PHA required documentation. Requests based on health-related reasons must be verified by a knowledgeable professional source (e.g., doctor or health professional), unless the disability and the disability–related request for accommodation is readily apparent or otherwise known. The family’s continued need for an additional bedroom due to special medical equipment must be re-verified at annual reexamination. After a request for an exception is presented, the PHA will respond in writing, acknowledging receipt of the request, within 10 business days. Based on the verified need for the exception or the absence thereof, the PHA will render its decision within a reasonable period of time. If a participant family’s request is denied, the notice will inform the family of their right to request an informal review. 5-II.D. VOUCHER ISSUANCE [24 CFR 982.302] When a family is selected from the waiting list (or as a special admission as described in Chapter 4), or when a participant family wants to move to another unit, the PHA issues a Housing Choice Voucher, form HUD-52646. This chapter deals only with voucher issuance for applicants. For voucher issuance associated with moves of program participants, please refer to Chapter 10. The voucher is the family’s authorization to search for housing. It specifies the unit size for which the family qualifies and includes both the date of voucher issuance and date of expiration. It contains a brief description of how the program works and explains the family obligations under the program. The voucher is evidence that the PHA has determined t he family to be eligible for the program, and that the PHA expects to have money available to subsidize the family if the family finds an approvable unit. However, the PHA does not have any liability to any party by the issuance of the voucher, and the voucher does not give the family any right to participate in the PHA’s housing choice voucher program [Voucher, form HUD- 52646] A voucher can be issued to an applicant family only after the PHA has determined that the family is eligible for the program based on verification of information received within the 60 days prior to issuance [24 CFR 982.201(e)] and after the family has attended an oral briefing [HCV 8-1]. PHA Policy 12.A.b Packet Pg. 1507 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 5-15 Vouchers will be issued to eligible applicants immediately following the mandatory briefing. The PHA should have sufficient funds to house an applicant before issuing a voucher. If funds are insufficient to house the family at the top of the waiting list, the PHA must wait until it has adequate funds before it calls another family from the list [HCV GB p. 8-10]. PHA Policy Prior to issuing any vouchers, the PHA will determine whether it has sufficient funding in accordance with the policies in Part VIII of Chapter 16. If the PHA determines that there is insufficient funding after a voucher has been issued, the PHA may rescind the voucher and place the affected family back on the waiting list. 5-II.E. VOUCHER TERM, AND EXTENSIONS Voucher Term [24 CFR 982.303] The initial term of a voucher must be at least 60 calendar days. The initial term mu st be stated on the voucher [24 CFR 982.303(a)]. PHA Policy The initial voucher term will be 180 calendar days. The family must submit a Request for Tenancy Approval and p roposed lease within the 180-day period unless the PHA grants an extension. Extensions of Voucher Term [24 CFR 982.303(b)] The PHA has the authority to grant extensions of search time, to specify the length of an extension, and to determine the circumstances under which extensions will be granted. There is no limit on the number of extensions that the PHA can approve. Discretionary policies related to extension and expiration of search time must be described in the PHA’s administrative plan [24 CFR 982.54]. PHAs must approve additional search time if needed as a reasonable accommodati on to make the program accessible to and usable by a person with disabilities. The extension period must be reasonable for the purpose. The family must be notified in writing of the PHA’s decision to approve or deny an extension. The PHA’s decision to deny a request for an extension of the voucher term is not subject to informal review [24 CFR 982.554(c)(4)]. PHA Policy The PHA may approve three 30-day extensions upon written request from the family. The PHA will approve additional extensions only in the following circumstances: It is necessary as a reasonable accommodation for a person with disabilities. It is necessary due to reasons beyond the family’s control, as determined by the PHA. Following is a list of extenuating circumstances that the PHA may consider 12.A.b Packet Pg. 1508 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 5-16 in making its decision. The presence of these circumstances does not guarantee that an extension will be granted: Serious illness or death in the family Other family emergency Obstacles due to employment Whether the family has already submitted requests for tenancy approval that were not approved by the PHA Whether family size or other special circumstances make it difficult to find a suitable unit Any request for an additional extension must include the reason(s) an additional extension is necessary. The PHA will require the family to provide documentation to support the request including a proof of effort form. All requests for extensions to the voucher term must be mad e in writing and submitted to the PHA prior to the expiration date of the voucher. The PHA will decide whether to approve or deny an extension request within 10 business days of the date the request is received, and will immediately provide the family written notice of its decision. Suspensions of Voucher Term [24 CFR 982.303(c)] The PHA must provide for suspension of the initial or any extended term of the voucher from the date the family submits a request for PHA approval of the tenancy until the date the PHA notifies the family in writing whether the request has been approved or denied. PHA Policy The term is suspended (tolled) while a Request for Tenancy Approval (RTA) is pending for up to 30 days. In the event HQS deficiencies must be cured, the term may be suspended for up to 60 days). Expiration of Voucher Term Once a family’s housing choice voucher term (including any extensions) expires, the family is no longer eligible to search for housing under the program. If the family still wishes to receive assistance, the PHA may require that the family reapply, or may place the family on the waiting list with a new application date but without requiring reapplication. Such a family does not become ineligible for the program on the grounds that it was unabl e to locate a unit before the voucher expired [HCV GB p. 8-13]. PHA Policy If an applicant family’s voucher term or extension expires before the PHA has approved a tenancy, the PHA will require the family to reapply for assistance. Within 10 business days after the expiration of the voucher term or any extension, the PHA will notify the 12.A.b Packet Pg. 1509 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 5-17 family in writing that the voucher term has expired and that the family must reapply when the waiting list is open in order to be placed on the waiting list. 12.A.b Packet Pg. 1510 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-1 Chapter 6 INCOME AND SUBSIDY DETERMINATIONS [24 CFR Part 5, Subparts E and F; 24 CFR 982] INTRODUCTION A family’s income determines eligibility for assistance and is also used to calculate the family’s payment and the PHA’s subsidy. The PHA will use the policies and methods described in this chapter to ensure that only eligible families receive assistance and that no family pays more or less than its obligation under the regulations. This chapter describes HUD regulations and PHA policies related to these topics in three parts as follows: •Part I: Annual Income. HUD regulations specify the sources of income to include and exclude to arrive at a family’s annual income. These requirements and PHA policies for calculating annual income are found in Part I. •Part II: Adjusted Income. Once annual income has been established HUD regulations require the PHA to subtract from annual income any of five mandatory deductions for which a family qualifies. These requirements and PHA policies for calculating adjusted income are found in Part II. •Part III: Calculating Family Share and PHA Subsidy. This part describes the statutory formula for calculating total tenant payment (TTP), the use of utility allowances, and the methodology for determining PHA subsidy and required family payment. 12.A.b Packet Pg. 1511 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-2 PART I: ANNUAL INCOME 6-I.A. OVERVIEW The general regulatory definition of annual income shown below is from 24 CFR 5.609. 5.609 Annual income. (a) Annual income means all amounts, monetary or not, which: (1) Go to, or on behalf of, the family head or spouse (even if temporarily absent) or to any other family member; or (2) Are anticipated to be received from a source outside the family during the 12-month period following admission or annual reexamination effective date; and (3) Which are not specifically excluded in paragraph [5.609(c)]. (4) Annual income also means amounts derived (during the 12 -month period) from assets to which any member of the family has access. In addition to this general definition, HUD regulations establish policies for treating specific types of income and assets. The full texts of those portions of the regulations are provided in exhibits at the end of this chapter as follows: • Annual Income Inclusions (Exhibit 6-1) • Annual Income Exclusions (Exhibit 6-2) • Treatment of Family Assets (Exhibit 6-3) • Earned Income Disallowance for Persons with Disabilities (Exhibit 6-4) • The Effect of Welfare Benefit Reduction (Exhibit 6-5) Sections 6-I.B and 6-I.C discuss general requirements and methods for calculating annual income. The rest of this section describes how each source of income is treated for the purposes of determining annual income. HUD regulations present income inclusions and exclusions separately [24 CFR 5.609(b) and 24 CFR 5.609(c)]. In this plan , however, the discussions of income inclusions and exclusions are integrated by topic (e.g., all policies affecting earned income are discussed together in section 6-I.D). Verification requirements for annual income are discussed in Chapter 7. 6-I.B. HOUSEHOLD COMPOSITION AND INCOME Income received by all family members must be counted unless specifically excluded by the regulations. It is the responsibility of the head of household to report changes in family composition. The rules on which sources of income are counted vary somewhat by family member. The chart below summarizes how family composition affects income determinations. 12.A.b Packet Pg. 1512 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-3 Summary of Income Included and Excluded by Person Live-in aides Income from all sources is excluded [24 CFR 5.609(c)(5)]. Foster child or foster adult Income from all sources is excluded [24 CFR 5.609(c)(2)]. Head, spouse, or cohead Other adult family members All sources of income not specifically excluded by the regulations are included. Children under 18 years of age Employment income is excluded [24 CFR 5.609(c)(1)]. All other sources of income, except those specifically excluded by the regulations, are included. Full-time students 18 years of age or older (not head, spouse, or cohead) Employment income above $480/year is excluded [24 CFR 5.609(c)(11)]. All other sources of income, except those specifically excluded by the regulations, are included. Temporarily Absent Family Members The income of family members approved to live in the unit will be counted, even if the family member is temporarily absent from the unit [HCV GB, p. 5-18]. PHA Policy Generally, an individual who is or is expected to be absent from the assisted unit for 90 consecutive days or less is considered temporarily absent and continues to be considered a family member. An individual who is or is expected to be absent from the assisted unit for more than 90 consecutive days is considered permanently absent and no longer a family member. Exceptions to this general policy are discussed below. It is the responsibility of the head of household to report changes in family composition. Absent Students PHA Policy When someone who has been considered a family member attends school away from home and resides with the family during school recess, the person will not be considered a family member as long as the person’s stay meets the policy regarding guests as set forth in Chapter 3-I.J. Absences Due to Placement in Foster Care Children temporarily absent from the home as a result of placement in foster care are considered members of the family [24 CFR 5.403]. 12.A.b Packet Pg. 1513 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-4 PHA Policy If a child has been placed in foster care, the head of household will notify the PHA in writing and provide written verification from the appropriate agency whether and when the child is expected to return to the home. If the agency confirms that the child has been permanently removed from the home, the child will not be counted as a family member. Absent Head, Spouse, or Cohead PHA Policy An employed head, spouse, or cohead absent from the unit more than 90 consecutive days due to employment will not continue to be considered a family member, with the exception of military personnel as required by the Service Members Civil Relief Act (SCRA) [50 U.S.C. § 101 et seq. SCRA § 508 (b)]. Family Members Permanently Confined for Medical Reasons If a family member is confined to a nursing home or hospital on a permanent basis, that person is no longer considered a family member and the income of that person is not counted [HCV GB, p. 5-22]. PHA Policy The PHA will request verification from a responsible medical professional and will use this determination. If the verification indicates that the family member will be permanently confined to a nursing home, the family will be considered permanently absent. If the responsible medical professional cannot provide a determination, the person generally will be considered temporarily absent. At the family’s request, this may be re-evaluated after 3 months. The family may present evidence that the family member is confined on a permanent basis and request that the person not be considered a family member. When an individual who has been counted as a family member is determined permanently absent, the family is eligible for the medical expense deduction only if the remaining head, spouse, or cohead qualifies as an elderly person or a person with disabilities. Joint Custody of Dependents PHA Policy Dependents that are subject to a joint custody arrangement will be considered a member of the family, if they live with the applicant or participant family 50 percent or more of the time. 12.A.b Packet Pg. 1514 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-5 When more than one applicant or participant family is claiming the same dependents as family members, the family with primary custody at the time of the initial examination or reexamination will be able to claim the dependents and receive the dependent allowance/deduction. If there is a dispute about which family should claim them, the PHA will make the determination based on available documents such as court orders, school records, or an IRS return showing which family has claimed the child for income tax purposes, or school/childcare records. Caretakers for a Child PHA Policy The approval of a caretaker is at the owner and PHA’s discretion and subject to the owner and PHA’s screening criteria. If neither a parent nor a designated guardian remains in a household receiving HCV assistance, the PHA will take the following actions. (1) If a responsible agency has determined that another adult is to be brought into the assisted unit to care for a child for an indefinite period, the designated caretaker will not be considered a family member until a determination of custody or legal guardianship is made. (2) If a caretaker has assumed responsibility for a child without the involvement of a responsible agency or formal assignment of custody or legal guardianship, the caretaker will be treated as a visitor for 90 days. After the 90 days has elapsed, the caretaker will be considered a family member unless information is provided that would confirm that the caretaker’s role is temporary. In such cases the PHA will extend the caretaker’s status as an eligible visitor and review the status in 30 days. (3) At any time that custody or guardianship legally has been awarded to a caretaker, the housing choice voucher will be transferred to the caretaker and the income of that caretaker should be counted. All other eligibility criteria apply to the caretaker as well. (4) During any period that a caretaker is considered a visitor, the income of the caretaker is not counted in annual income and the caretaker does not qualify the family for any deductions from income. 6-I.C. ANTICIPATING ANNUAL INCOME The PHA is required to count all income “anticipated to be received from a source outside the family during the 12-month period following admission or annual reexamination effective date” [24 CFR 5.609(a)(2)]. Policies related to anticipating annual income are provided below. 12.A.b Packet Pg. 1515 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-6 Basis of Annual Income Projection The PHA generally will use current circumstances to determine anticipated income for the coming 12-month period. HUD authorizes the PHA to use other than current circumstances to anticipate income when: • An imminent change in circumstances is expected [HCV GB, p. 5-17] • It is not feasible to anticipate a level of income over a 1 2-month period (e.g., seasonal or cyclic income) [24 CFR 5.609(d)] • The PHA believes that past income is the best available indicator of expected future income [24 CFR 5.609(d)] PHAs are required to use HUD’s Enterprise Income Verification (EIV) system in its entirety as a third-party source to verify employment and income information, reduce fraud and administrative subsidy payment errors in accordance with HUD administrative guidance [24 CFR 5.233(a)(2)]. HUD allows PHAs to use tenant-provided documents (pay stubs) to project income once EIV data has been received in such cases where the family does not dispute the EIV employer data and where the PHA does not determine it is necessary to obtain additional third -party data. PHA Policy When EIV is obtained and the family does not dispute the EIV employer data, the PHA will use current tenant-provided documents to project annual income. When the tenant-provided documents are pay stubs, the PHA will make every effort to obtain 3 current and consecutive pay stubs dated within the last 60 days. The PHA will obtain written and/or oral third-party verification in accordance with the verification requirements and policy in Chapter 7 in the following cases: If EIV or other UIV data is not available, If the family disputes the accuracy of the EIV employer data, and/or If the PHA determines additional information is needed. In such cases, the PHA will review and analyze current data to anticipate annual income. In all cases, the family file will be documented with a clear record of the reason for the decision, and a clear audit trail will be left as to how the PHA annualized projected income. When the PHA cannot readily anticipate income based upon current circumstances (e.g., in the case of seasonal employment, unstable working hours, or suspected fraud), the PHA will review and analyze historical data for patterns of employment, paid benefits, and receipt of other income and use the results of this analysis to establish annual income. 12.A.b Packet Pg. 1516 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-7 Any time current circumstances are not used to project annual income, a clear rationale for the decision will be documented in the file. In all such cases the family may present information and documentation to the PHA to show why the historic pattern does not represent the family’s anticipated income. Known Changes in Income If the PHA verifies an upcoming increase or decrease in income, annual income will be calculated by applying each income amount to the appropriate part of the 12 -month period. Example: An employer reports that a full-time employee who has been receiving $8/hour will begin to receive $8.25/hour in the eighth week after the effective date of the reexamination. In such a case the PHA would calculate annual income as follows: ($8/hour × 40 hours × 7 weeks) + ($8.25 × 40 hours × 45 weeks). The family may present information that demonstrates that implementing a change before its effective date would create a hardship for the family. In such cases the PHA will calculate annual income using current circumstances and then require an interim reexamination when the change actually occurs. This requirement will be imposed even if the PHA’s policy on reexaminations does not require interim reexaminations for other types of changes. When tenant-provided third-party documents are used to anticipate annual income, they will be dated within the last 60 days of the reexamination interview date. Projecting Income In HUD’s EIV webcast of January 2008, HUD made clear that PHAs are not to use EIV quarterly wages to project annual income. 6-I.D. EARNED INCOME Types of Earned Income Included in Annual Income Wages and Related Compensation The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for per sonal services is included in annual income [24 CFR 5.609(b)(1)]. PHA Policy For persons who regularly receive bonuses or commissions, the PHA will verify and then average amounts received for the two years preceding admission or reexamination. If only a one-year history is available, the PHA will use the prior year amounts. In either case the family may provide, and the PHA will consider, a credible justification for not 12.A.b Packet Pg. 1517 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-8 using this history to anticipate future bonuses or commissions. If a new employee has not yet received any bonuses or commissions, the PHA will count only the amount estimated by the employer. The file will be documented appropriately. Some Types of Military Pay All regular pay, special pay and allowances of a member of the Armed Forces are counted [24 CFR 5.609(b)(8)] except for the special pay to a family member serving in the Armed Forces who is exposed to hostile fire [24 CFR 5.609(c)(7)]. Types of Earned Income Not Counted in Annual Income Temporary, Nonrecurring, or Sporadic Income [24 CFR 5.609(c)(9)] This type of income (including gifts) is not included in annual income. Sporadic income includes temporary payments from the U.S. Census Bureau for employment lasting no longer than 180 days [Notice PIH 2009-19] PHA Policy Temporary income is income that is received for a period of no more than 60 days in any 12- month period and cannot be reliably anticipated to reoccur. For example, the earned income of an individual who works one or more temporary positions which are not anticipated to exceed 60 cumulative days in any 12-month period, is temporary income. This does not include an individual whose field of employment is short term but recurring in nature, in which case the PHA may use previous 12 to a maximum of 36 months of actual earnings to calculate income, if the family member intends to continue in the same type of employment. Nonrecurring income is income that is received one time only and is not anticipated to reoccur in any 12-month period. For example, a one-time gift of $100 from a daughter to her elderly mother for her birthday would be considered nonrecurring income. Sporadic income is income that is not received periodically and cannot be reliably predicted. For example, the income of an individual who works occasionally as a handyman, or a person who gains income from recycling cans, would be considered sporadic if future work could not be anticipated and no historic, stable pattern of income existed. (See “Regular Contributions or Gifts” for definition of regular income.) Children’s Earnings Employment income earned by children (including foster children) under the age of 18 years is not included in annual income [24 CFR 5.609(c)(1)]. (See Eligibility chapter for a definition of foster children.) PHA Policy 12.A.b Packet Pg. 1518 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-9 If a child in the household turns 18 and is employed, or becomes employed, it is the responsibility of the head of household to report that change to the PHA within 10 days (of the birthdate or the hire date, as applicable). Certain Earned Income of Full-Time Students Earnings in excess of $480 for each full-time student 18 years old or older (except for the head, spouse, or cohead) are not counted [24 CFR 5.609(c)(11)]. To be considered “full-time,” a student must be considered “full-time” by an educational institution with a degree or certificate program [HCV GB, p. 5-29]. Income of a Live-in Aide Income earned by a live-in aide, employed by Section 8 recipients, as defined in [24 CFR 5.403], is not included in annual income [24 CFR 5.609(c)(5)]. (See Eligibility chapter for a full discussion of live-in aides.) Income Earned under Certain Federal Programs Income from some federal programs is specifically excluded from consideration as income [24 CFR 5.609(c)(17)], including: • Payments to volunteers under the Domestic Volunteer Services Act of 1973 (42 U.S.C. 5044(g), 5058) • Awards under the federal work-study program (20 U.S.C. 1087uu) • Payments received from programs funded under Title V of the Older Americans Act of 1985 (42 U.S.C. 3056(f)) • Allowances, earnings, and payments to AmeriCorps participants under the National and Community Service Act of 1990 (42 U.S.C. 12637(d)) • Allowances, earnings, and payments to participants in programs funded under the Workforce Investment Act of 1998 (29 U.S.C. 2931) Resident Service Stipend Amounts received under a resident service stipend are not included in annual income. A resident service stipend is a modest amount (not to exceed $200 per individual per month) received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development. Such services may include, but are not limited to, fire patrol, hall monitoring, lawn maintenance, resident initiatives coordination, and serving as a member of the PHA’s governing board. No resident may receive more than one such stipend during the same period of time [24 CFR 5.600(c)(8)(iv)]. 12.A.b Packet Pg. 1519 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-10 State and Local Employment Training Programs Incremental earnings and benefits to any family member resulting from participation in qualifying state or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff are excluded from annual income. Amounts excluded by this provision must be receiv ed under employment training programs with clearly defined goals and objectives and are excluded only for the period during which the family member participates in the training program [24 CFR 5.609(c)(8)(v)]. PHA Policy The PHA defines training program as “a learning process with goals and objectives, generally having a variety of components, and taking place in a series of sessions over a period of time. It is designed to lead to a higher level of proficiency, and it enhances the individual’s ability to obtain employment. It may have performance standards to measure proficiency. Training may include but is not limited to: (1) classroom training in a specific occupational skill, (2) on-the-job training with wages subsidized by the program, or (3) basic education” [expired Notice PIH 98-2, p. 3]. The PHA defines incremental earnings and benefits as the difference between: (1) the total amount of welfare assistance and earnings of a family member prior to enrollment in a training program, and (2) the total amount of welfare assistance and earnings of the family member after enrollment in the program [expired Notice PIH 98 -2, pp. 3–4]. In calculating the incremental difference, the PHA will use as the pre-enrollment income the total annualized amount of the family member’s welfare assistance and earnings reported on the family’s most recently completed HUD-50058. End of participation in a training program must be reported in accordance with the PHA's interim reporting requirements. HUD-Funded Training Programs Amounts received under training programs funded in whole or in part by HUD [24 CFR 5.609(c)(8)(i)] are excluded from annual income. Eligible sources of funding for the training include operating subsidy, Section 8 administrative fees, and modernization, Community Development Block Grant (CDBG), HOME program, and other grant funds received from HUD. PHA Policy To qualify as a training program, the program must meet the definition of training program provided above for state and local employment training programs. Earned Income Tax Credit Earned income tax credit (EITC) refund payments received on or after January 1, 1991 (26 U.S.C. 32(j)), are excluded from annual income [24 CFR 5.609(c)(17)]. Although many families receive 12.A.b Packet Pg. 1520 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-11 the EITC annually when they file taxes, an EITC can also be received throughout the year. The prorated share of the annual EITC is included in the employee’s payroll check. Earned Income Disallowance The earned income disallowance for persons with disabilities is discussed in section 6-I.E below. 6-I.E. EARNED INCOME DISALLOWANCE FOR PERSONS WITH DISABILITIES [24 CFR 5.617; Streamlining Final Rule (SFR) Federal Register 3/8/16] The earned income disallowance (EID) encourages people with disabilities to enter the work force by not including the full value of increases in earned income for a period of time. The full text of 24 CFR 5.617 is included as Exhibit 6-4 at the end of this chapter. Eligibility criteria and limitations on the disallowance are summarized below. Eligibility This disallowance applies only to individuals in families already participating in the HCV program (not at initial examination). To qualify, the family must experience an increase in annual income that is the result of one of the following events: • Employment of a family member who is a person with disabilities and who was previously unemployed for one or more years prior to employment. Previously unemployed includes a person who annually has earned not more than the minimum wage applicable to the community multiplied by 500 hours. The applicable minimum wage is the federal minimum wage unless there is a higher state or local minimum wage. • Increased earnings by a family member who is a person with disabilities and whose earnings increase during participation in an economic self-sufficiency or job-training program. A self- sufficiency program includes a program designed to encourage, assist, train, or facilitate the economic independence of HUD-assisted families or to provide work to such families [24 CFR 5.603(b)]. • New employment or increased earnings by a family member who is a person with disabilities and who has received benefits or services under Temporary Assistance for Needy Families (TANF) or any other state program funded under Part A of Title IV of the Social Security Act within the past six months. If the benefits are received in the form of monthly maintenance, there is no minimum amount. If the benefits or services are received in a form other than monthly maintenance, such as one-time payments, wage subsidies, or transportation assistance, the total amount received over the six-month period must be at least $500. PHA Policy The PHA will provide EID eligibility criteria during the annual recertification process. 12.A.b Packet Pg. 1521 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-12 Calculation of the Disallowance Calculation of the earned income disallowance for an eligible member of a qualified family begins with a comparison of the member’s current income with their “baseline income.” The family member’s baseline income is their income immediately prior to qualifying for the EID. The family member’s baseline income remains constant throughout the period that they are participating in the EID. Calculation Method Initial 12-Month Exclusion During the initial exclusion period of 12 consecutive months, the full amount (100 percent) of any increase in income attributable to new employment or increased earning is excluded. PHA Policy The initial EID exclusion period will begin on the first of the month following the date an eligible member of a qualified family is first employed or first experiences an increase in earning. Second 12-Month Exclusion During the second exclusion period of 12 consecutive months, the PHA must exclude at least 50 percent of any increase in income attributable to employment or increase earnings. PHA Policy During the second 12-month exclusion period, the PHA will exclude 100 percent of any increase in income attributable to new employment or increased earning. Lifetime Limitation The EID has a two-year (24-month) lifetime maximum. The two-year eligibility period begins at the same time that the initial exclusion period begins and ends 24 months later. Duri ng the 24- month period, an individual remains eligible for EID even if they begin to receive assistance from a different housing agency, move between public housing and section 8 assistance, or have breaks in assistance. 6-I.F. BUSINESS INCOME [24 CFR 5.609(b)(2)] Annual income includes “the net income from the operation of a business or profession. Expenditures for business expansion or amortiz ation of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight-line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a 12.A.b Packet Pg. 1522 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-13 business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family” [24 CFR 5.609(b)(2)]. Business Expenses Net income is “gross income less business expense” [HCV GB, p. 5-19]. PHA Policy To determine business expenses that may be deducted from gross income, the PHA will use current applicable Internal Revenue Service (IRS) rules for determin ing allowable business expenses [see IRS Publication 535], unless a topic is addressed by HUD regulations or guidance as described below. Business Expansion HUD regulations do not permit the PHA to deduct from gross income e xpenses for business expansion. PHA Policy Business expansion is defined as any capital expenditures made to add new business activities, to expand current facilities, or to operate the business in additional locations. For example, purchase of a street sweeper by a construction busines s for the purpose of adding street cleaning to the services offered by the business would be considered a business expansion. Similarly, the purchase of a property by a hair care business to open at a second location would be considered a business expansion. Capital Indebtedness HUD regulations do not permit the PHA to deduct from gross income the amortization of capital indebtedness. PHA Policy Capital indebtedness is defined as the principal portion of the payment on a capital asset such as land, buildings, and machinery. This means the PHA will allow as a business expense interest, but not principal, paid on capital indebtedness. Negative Business Income If the net income from a business is negative, no business income will be included in annual income; a negative amount will not be used to offset other family income. 12.A.b Packet Pg. 1523 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-14 Withdrawal of Cash or Assets from a Business HUD regulations require the PHA to include in annual income the withdrawal of cash or assets from the operation of a business or profession unless the withdrawal reimburses a family member for cash or assets invested in the business by the family. PHA Policy Acceptable investments in a business include cash loans and contributions of assets or equipment. For example, if a member of an assisted family provided an up-front loan of $2,000 to help a business get started, the PHA will not count as income any withdrawals from the business up to the amount of this loan until the loan has been repaid if the loan is documented by parties through an executed loan agreement Investments do not include the value of labor contributed to the business without compensation. Co-owned Businesses PHA Policy If a business is co-owned with someone outside the family, the family must document the share of the business it owns. If the family’s share of the income is lower than its share of ownership, the family must document the reasons for the difference. 6-I.G. ASSETS [24 CFR 5.609(b)(3); 24 CFR 5.603(b)] Overview There is no asset limitation for participation in the HCV program. However, HUD requires that the PHA include in annual income the anticipated “interest, dividends, and other net income of any kind from real or personal property” [24 CFR 5.609(b)(3)]. This section discusses how the income from various types of assets is determined. For most types of assets, the PHA must determine the value of the asset in order to compute income from the asset. Therefore, for each asset type, this section discusses: • How the value of the asset will be determined • How income from the asset will be calculated Exhibit 6-1 provides the regulatory requirements for calculating income from assets [24 CFR 5.609(b)(3)], and Exhibit 6-3 provides the regulatory definition of net family assets. This section begins with a discussion of general policies related to assets and then provides HUD rules and PHA policies related to each type of asset. Optional policies for family self-certification of assets are found in Chapter 7. 12.A.b Packet Pg. 1524 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-15 General Policies Income from Assets The PHA generally will use current circumstances to determine both the value of an asset and the anticipated income from the asset. As is true for all sources of income, HUD authorizes the PHA to use other than current circumstances to anticipate income when (1) an imminent change in circumstances is expected (2) it is not feasible to anticipate a level of income over 12 months or (3) the PHA believes that past income is the best indicator of anticipated income. For example, if a family member owns real property that t ypically receives rental income but the property is currently vacant, the PHA can take into consideration past rental income along with the prospects of obtaining a new tenant. PHA Policy Anytime current circumstances are not used to determine asset income, a clear rationale for the decision will be documented in the file. In such cases the family may present information and documentation to the PHA to show why the asset income determination does not represent the family’s anticipated asset income. Valuing Assets The calculation of asset income sometimes requires the PHA to make a distinction between an asset’s market value and its cash value. • The market value of an asset is its worth in the market (e.g., the amount a buyer would pay for real estate or the total value of an investment account). • The cash value of an asset is its market value less all reasonable amounts that would be incurred when converting the asset to cash. PHA Policy Reasonable costs that would be incurred when disposing of an asset include, but are not limited to, penalties for premature withdrawal, broker and legal fees, and settlement costs incurred in real estate transactions [HCV GB, p. 5-28]. Lump-Sum Receipts Payments that are received in a single lump sum, such as inheritances, capital gains, lottery winnings, insurance settlements, and proceeds from the sale of property, are generally considered assets, not income. However, such lump-sum receipts are counted as assets only if they are retained by a family in a form recognizable as an asset (e.g., deposited in a savings or checking account) [RHIIP FAQs]. (For a discussion of lump-sum payments that represent the delayed start of a periodic payment, most of which are counted as income, see sections 6-I.H and 6-I.I.) 12.A.b Packet Pg. 1525 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-16 Imputing Income from Assets [24 CFR 5.609(b)(3), Notice PIH 2012-29] When net family assets are $5,000 or less, the PHA will include in annual income the actual income anticipated to be derived from the assets. When the family has net family assets in excess of $5,000, the PHA will include in annual income the greater of (1) the actual income derived from the assets or (2) the imputed income. Imputed income from assets is the total cash value of all family assets multiplied by an average passbook savings rate as determined by the PHA. • Note: The HUD field office no longer provides an interest rate for imputed asset income. The “safe harbor” is now for the PHA to establish a passbook rate within 0.75 percent of a national average. • The PHA must review its passbook rate annually to ensure that it remains within 0.75 percent of the national average. PHA Policy The PHA initially set the imputed asset passbook rate at the national rate established by the Federal Deposit Insurance Corporation (FDIC). The PHA will review the passbook rate annually. The rate will not be adjusted unless the current PHA rate is no longer within 0.75 percent of the national rate. If it is no longer within 0.75 percent of the national rate, the passbook rate will be set at the current national rate. The effective date of changes to the passbook rate will be determined at the time of the review. Determining Actual Anticipated Income from Assets It may or may not be necessary for the PHA to use the value of an asset to compute the actual anticipated income from the asset. When the value is required to compute the anticipated income from an asset, the market value of the asset is used. For example, if the asset is a property for which a family receives rental income, the anticipated income is determined by annualizing the actual monthly rental amount received for the property; it is not based on the property’s market value. However, if the asset is a savings account, the anticipated income is determined by multiplying the market value of the account by the interest rate on the account. Withdrawal of Cash or Liquidation of Investments Any withdrawal of cash or assets from an investment will be included in income except to the extent that the withdrawal reimburses amounts invested by the family. For example, when a family member retires, the amount received by the family from a retirement investment plan is not counted as income until the family has received payments equal to the amount the family member deposited into the retirement investment plan. Jointly Owned Assets 12.A.b Packet Pg. 1526 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-17 The regulation at 24 CFR 5.609(a)(4) specifies that annual income includes “amounts derived (during the 12-month period) from assets to which any member of the family has access.” PHA Policy If an asset is owned by more than one person and any family memb er has unrestricted access to the asset, the PHA will count the full value of the asset. A family member has unrestricted access to an asset when they can legally dispose of the asset without the consent of any of the other owners. If an asset is owned by more than one person, including a family member, but the family member does not have unrestricted access to the asset, the PHA will prorate the asset according to the percentage of ownership. If no percentage is specified or provided for by state or local law, the PHA will prorate the asset evenly among all owners. Assets Disposed of for Less than Fair Market Value [24 CFR 5.603(b)] HUD regulations require the PHA to count as a current asset any business or family asset that was disposed of for less than fair market value during the two years prior to the effective date of the examination/reexamination, except as noted below. Minimum Threshold The HCV Guidebook permits the PHA to set a threshold below which assets disposed of for less than fair market value will not be counted [HCV GB, p. 5-27]. PHA Policy The PHA will not include the value of assets disposed of for less than fair market value unless the cumulative fair market value of all assets disposed of during the past two years exceeds the gross amount received for the assets by more than $1,000. When the two-year period expires, the income assigned to the disposed asset(s) also expires. If the two-year period ends between annual recertifications, the family may request an interim recertification to eliminate consideration of the asset(s). Assets placed by the family in nonrevocable trusts are considered assets disposed of for less than fair market value except when the assets placed in trust were received through settlements or judgments. Separation or Divorce The regulation also specifies that assets are not considered disposed of for less than f air market value if they are disposed of as part of a separation or divorce settlement and the applicant or tenant receives important consideration not measurable in dollar terms. PHA Policy 12.A.b Packet Pg. 1527 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-18 All assets disposed of as part of a separation or divorce settlement will be considered assets for which important consideration not measurable in monetary terms has been received. In order to qualify for this exemption, a family member must be subject to a formal separation or divorce settlement agreement established through arbitration, mediation, or court order. Foreclosure or Bankruptcy Assets are not considered disposed of for less than fair market value when the disposition is the result of a foreclosure or bankruptcy sale. Family Declaration PHA Policy Families must sign a declaration form at initial certification and each annual recertification identifying all assets that have been disposed of for less than fa ir market value or declaring that no assets have been disposed of for less than fair market value. The PHA may verify the value of the assets disposed of if other information available to the PHA does not appear to agree with the information reported by th e family. Types of Assets Checking and Savings Accounts For regular checking accounts and savings accounts, cash value has the same meaning as market value. If a checking account does not bear interest, the anticipated income from the account is zero. PHA Policy In determining the value of checking accounts and saving accounts, the PHA will use the current balance. In determining the anticipated income from an interest-bearing checking or savings account, the PHA will multiply the value of the account by the current rate of interest paid on the account. Investment Accounts Such as Stocks, Bonds, Saving Certificates, and Money Market Funds Interest or dividends earned by investment accounts are counted as actual income from assets even when the earnings are reinvested. The cash value of such an asset is determined by deducting from the market value any broker fees, penalties for early withdrawal, or other costs of converting the asset to cash. PHA Policy 12.A.b Packet Pg. 1528 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-19 In determining the market value of an investment account, the PHA will use the value of the account on the most recent investment report. How anticipated income from an investment account will be calculated depends on whether the rate of return is known. For assets that are held in an investment account with a known rate of return (e.g., savings certificates), asset income will be calculated based on that known rate (market value multiplied by rate of earnings). When the anticipated rate of return is not known (e.g., stocks), the PHA will calculate asset income based on the earnings for the most recent reporting period. Equity in Real Property or Other Capital Investments Equity (cash value) in a property or other capital asset is the estimated current market value of the asset less the unpaid balance on all loans secured by the asset and reasonable costs (such as broker fees) that would be incurred in selling the asset [HCV GB, p. 5-25]. PHA Policy In determining the equity, the PHA will determine market value by examining recent sales of at least three properties in the surrounding or similar neighborhood that possess comparable factors that affect market value. The PHA will first use the payoff amount for the loan (mortgage) as the unpaid bal ance to calculate equity. If the payoff amount is not available, the PHA will use the basic loan balance information to deduct from the market value in the equity calculation. Equity in real property and other capital investments is considered in the calcu lation of asset income except for the following types of assets: • Equity accounts in HUD homeownership programs [24 CFR5.603(b)] • The value of a home currently being purchased with assistance under the HCV program Homeownership Option for the first 10 years after the purchase date of the home [24 CFR 5.603(b), Notice PIH 2012-3] • Equity in owner-occupied cooperatives and manufactured homes in which the family lives [HCV GB, p. 5-25] • Equity in real property when a family member’s main occupation is real estate [HCV GB, p. 5-25]. This real estate is considered a business asset, and income related to this asset will be calculated as described in section 6-I.F. • Interests in Indian Trust lands [24 CFR 5.603(b)] • Real property and capital assets that are part of an active business or farming operation [HCV GB, p. 5-25] 12.A.b Packet Pg. 1529 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-20 The PHA must also deduct from the equity the reasonable costs for converting the asset to cash. Using the formula for calculating equity specified above, the net cash value of real property is the market value minus the balance of the loan (mortgage) minus the expenses to convert to cash [Notice PIH 2012-3]. PHA Policy For the purposes of calculating expenses to convert to cash for real property, the PHA will use ten percent of the market value of the home. A family may have real property as an asset in two ways: (1) owning the property itself and (2) holding a mortgage or deed of trust on the property. In the case of a property owned by a family member, the anticipated asset income generally will be in the form of rent or other payment for the use of the property. If the property generates no income, actual anticipated income from the asset will be zero. In the case of a mortgage or deed of trust held by a family member, the outstanding balance (unpaid principal) is the cash value of the asset. The interest portion only of payments made to the family in accordance with the terms of the mortgage or deed of trust is counted as anticipated asset income. PHA Policy In the case of capital investments owned jointly with others not living in a family’s unit, a prorated share of the property’s cash value will be counted as an asset unless the PHA determines that the family receives no income from the property and is unable to sell or otherwise convert the asset to cash. Trusts A trust is a legal arrangement generally regulated by state law in which one party (the creator or grantor) transfers property to a second party (the trustee) who holds the property for the benefit of one or more third parties (the beneficiaries). Revocable Trusts If any member of a family has the right to withdraw the funds in a trust, the value of the trust is considered an asset [HCV GB, p. 5-25]. Any income earned as a result of investment of trust funds is counted as actual asset income, whether the income is paid to the family or deposited in the trust. Nonrevocable Trusts In cases where a trust is not revocable by, or u nder the control of, any member of a family, the value of the trust fund is not considered an asset . However, any income distributed to the family from such a trust is counted as a periodic payment or a lump-sum receipt, as appropriate [24 CFR 5.603(b)]. (Periodic payments are covered in Section 6-I.H. Lump-sum receipts are discussed earlier in this section.) 12.A.b Packet Pg. 1530 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-21 Retirement Accounts Company Retirement/Pension Accounts In order to correctly include or exclude as an asset any amount held in a company retirement or pension account by an employed person, the PHA must know whether the money is accessible before retirement [HCV GB, p. 5-26]. While a family member is employed, only the amount the family member can withdraw without retiring or terminating employment is counted as an asset [HCV GB, p. 5-26]. After a family member retires or terminates employment, any amount distributed to the family member is counted as a periodic payment or a lump-sum receipt, as appropriate [HCV GB, p. 5- 26], except to the extent that it represents funds invested in the account by the family member. (For more on periodic payments, see section 6-I.H.) The balance in the account is counted as an asset only if it remains accessible to the family member. IRA, Keogh, and Similar Retirement Savings Accounts IRA, Keogh, and similar retirement savings accounts are counted as assets even though early withdrawal would result in a penalty [HCV GB, p. 5-25]. Personal Property Personal property held as an investment, such as gems, jewelry, coin collections, antique/classic cars, luxury vehicles valued at $30,000.00 or higher, etc., is considered an asset [HCV GB, p. 5-25]. PHA Policy In determining the value of personal property held as an investment, the PHA will use the family’s estimate of the value. The PHA may use other general practice methods to confirm the value of the asset if there is reason to believe that the family’s es timated value is off by $50 or more. In the event it is necessary to establish the value of personal property held for investment the family must cooperate with the appraiser, but cannot be charged any costs related to the appraisal. Generally, personal property held as an investment generates no income until it is disposed of. If regular income is generated (e.g., income from renting the personal property), the amount that is expected to be earned in the coming year is counted as actual income from the asset. Necessary items of personal property are not considered assets [24 CFR 5.603(b)]. PHA Policy Necessary personal property consists of only those items not held as an investment, and may include clothing, furniture, household furnishings, jewelry, and vehicles other than 12.A.b Packet Pg. 1531 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-22 antique/classic and luxury vehicles as described above, including those specially equipped for persons with disabilities. Life Insurance The cash value of a life insurance policy available to a family member before death, such as a whole life or universal life policy is included in the calculation of the value of the family’s assets [HCV GB 5-25]. The cash value is the surrender value. If such a policy earns dividends or interest that the family could elect to receive, the anticipated amount of dividends or interest is counted as income from the asset whether or not the family actually receives it. Annuities An “annuity” is a contract between a person and a life insurance company. An annuity accumulates and invests money and pays it out as income over time. An annuity may have a cash value countable as an asset or is providing income. An annuity may be either an asset or it may be providing income but an annuity is never both income and an asset at the same time. Annuities have two distinct phases: the first is the accumulation phase (money is deposited in a lump sum or contributed over time in regular installments and grows through investment) and the second phase is the payout (or “annuitization”) period during which regular payments are made to the owner of the annuity usually for a specified period of time or the life of the annuity’s owner, whichever is longer. Once the contract is “annuitized,” and payments begin, it no longer has a “cash value” and it cannot (under any circumstance) be “cashed in.” Payments are usually monthly, but they can also be quarterly or annual. 6-I.H. PERIODIC PAYMENTS Periodic payments are forms of income received on a regular basis. HUD regulations specify periodic payments that are and are not included in annual income. Periodic Payments Included in Annual Income • Periodic payments from sources such as social security, unemployment and welfare assistance, annuities, insurance policies, retirement funds, and pensions . However, periodic payments from retirement accounts, annuities, and similar forms of investments are counted only after they exceed the amount contributed by the family [24 CFR 5.609(b)(4) and (b)(3)]. • Disability or death benefits and lottery receipts paid periodically, rather than in a single lump sum [24 CFR 5.609(b)(4) and HCV, p. 5-14] 12.A.b Packet Pg. 1532 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-23 Lump-Sum Payments for the Delayed Start of a Periodic Payment Most lump sums received as a result of delays in processing periodic payments , such as unemployment or welfare assistance, are counted as income. However, lump-sum receipts for the delayed start of periodic social security or supplemental security income (SSI) payments are not counted as income [CFR 5.609(b)(4)].Additionally, any deferred disability benefits that are received in a lump-sum or in prospective monthly amounts from the Department of Veterans Affairs are to be excluded from annual income [FR Notice 11/24/08]. PHA Policy When a delayed-start payment is received and reported during the period in which the PHA is processing an annual reexamination, the PHA will adjust the family share and PHA subsidy retroactively for the period the payment was intended to cover. The family may pay in full any amount due or request to enter into a repayment agreement with the PHA. DISTRIBUTIONS FROM IRREVOCABLE TRUSTS WHEN PRINCIPAL CONSISTS OF LUMP-SUMS EXCLUDED FROM INCOME UNDER 24 CFR 5.609 (c)(3) Periodic payments in the form of distributions to a family are not counted in annual income when those distributions are from the principal of an irrevocable trust (such as a special needs trust) and when the principal consists of lump-sum additions to family assets excluded from annual income under 24 CFR 5.609 (c)(3). Any interest accruing from such lump-sum additions are included in annual income. 24 CFR 5.603 (b)(3). Periodic Payments Excluded from Annual Income • Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the assisted family, who are unable to live alone) [24 CFR 5.609(c)(2)]. Kinship guardianship assistance payments (Kin-Gap) and other similar guardianship payments are treated the same as foster care p ayments and are likewise excluded from annual income [Notice PIH 2012-1]. PHA Policy The PHA will exclude payments for the care of foster children and foster adults only if the care is provided through an official arrangement with a local welfare agency [HCV GB, p. 5-18]. • Amounts paid by a state agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home [24 CFR 5.609(c)(16)] • Amounts received under the Low-Income Home Energy Assistance Program (42 U.S.C. 1626(c)) [24 CFR 5.609(c)(17)] 12.A.b Packet Pg. 1533 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-24 • Amounts received under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858q) [24 CFR 5.609(c)(17)] • Earned Income Tax Credit (EITC) refund payments (26 U.S.C. 32(j)) [24 CFR 5.609(c)(17)]. Note: EITC may be paid periodically if the family elects to receive the amount due as part of payroll payments from an employer. • Lump sums received as a result of delays in processing Social Security and SSI payments (see section 6-I.J.) [24 CFR 5.609(b)(4)]. • Lump sums or prospective monthly amounts received as deferred disability benefits from the Department of Veterans Affairs (VA) [FR Notice 11/24/08]. 6-I.I. PAYMENTS IN LIEU OF EARNINGS Payments in lieu of earnings, such as unemployment and disability compensation, worker ’s compensation, and severance pay, are counted as income [24 CFR 5.609(b)(5)] if they are received either in the form of periodic payments or in the form of a lump-sum amount or prospective monthly amounts for the delayed start of a periodic payment. If they are received in a one-time lump sum (as a settlement, for instance), they are treated as lump-sum receipts [24 CFR 5.609(c)(3)]. (See also the discussion of periodic payments in section 6-I.H and the discussion of lump-sum receipts in section 6-I.G.) 6-I.J. WELFARE ASSISTANCE Overview Welfare assistance is counted in annual income. Welfare assistance includes Temporary Assistance for Needy Families (TANF) and any payments to individuals or families based on need that are made under programs funded separately or jointly by federal, state , or local governments [24 CFR 5.603(b)]. Sanctions Resulting in the Reduction of Welfare Benefits [24 CFR 5.615] The PHA must make a special calculation of annual income when the welfare agency imposes certain sanctions on certain families. The full text of the regulation at 24 CFR 5.615 is provided as Exhibit 6-5. The requirements are summarized below. This rule applies only if a family was receiving HCV assistance at the time the sanction was imposed. Covered Families The families covered by 24 CFR 5.615 are those “who receive welfare assistance or other public assistance benefits (‘welfare benefits’) from a State or other public agency (’welfare agency’) under a program for which Federal, State or local law requires that a member of the family 12.A.b Packet Pg. 1534 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-25 must participate in an economic self-sufficiency program as a condition for such assistance” [24 CFR 5.615(b)] Imputed Income When a welfare agency imposes a sanction that reduces a family’s welfare income because the family commits fraud or fails to comply with the agency’s economic self-sufficiency program or work activities requirement, the PHA must include in annual income “imputed” welfare income. The PHA must request that the welfare agency provide the reason for the reduction of benefits and the amount of the reduction of benefits. The imputed welfare income is the amount that the benefits were reduced as a result of the sanction. This requirement does not apply to reductions in welfare benefits: (1) at the expiration of the lifetime or other time limit on the payment of welfare benefits, (2) if a family member is unable to find employment even though the family member has complied w ith the welfare agency economic self-sufficiency or work activities requirements, or (3) because a family member has not complied with other welfare agency requirements [24 CFR 5.615(b)(2)]. Offsets The amount of the imputed welfare income is offset by the amount of additional income the family begins to receive after the sanction is imposed. When the additional income equals or exceeds the imputed welfare income, the imputed income is reduced to zero [24 CFR 5.615(c)(4)]. 6-I.K. PERIODIC AND DETERMINABLE ALLOWANCES [24 CFR 5.609(b)(7)] Annual income includes periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing with an assisted family. Alimony and Child Support The PHA must count alimony or child support amounts awarded as part of a divorce or separation agreement. PHA Policy The PHA will count court-awarded amounts for alimony and child support unless the PHA verifies that: (1) the payments are not being made, and (2) the family has made reasonable efforts to collect amounts due, including filing with courts or agenci es responsible for enforcing payments [HCV GB, pp. 5-23 and 5-47]. Families who do not have court-awarded alimony and child support awards are not required to seek a court award and are not required to take independent legal action to obtain collection. 12.A.b Packet Pg. 1535 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-26 Regular Contributions or Gifts The PHA must count as income regular monetary and nonmonetary contributions or gifts from persons not residing with an assisted family [24 CFR 5.609(b)(7)]. Temporary, nonrecurring, or sporadic income and gifts are not counted [24 CFR 5.609(c)(9)]. PHA Policy Any contribution or gift received more than three times per year will be considered a “regular” contribution or gift, unless the amount is less than $100 per occurrence. This includes rent and utility payments made on behalf of the family and other cash or non- cash contributions provided on a regular basis. Examples of regular contributions include: (1) regular payment of a family’s bills (e.g., utilities, telephone, rent, credit cards, car payments and/or automobile insurance payments, (2) cash gift(s) exceeding $300 annually or other liquid assets provided to any family member, and (3) “in-kind” contributions such as groceries and clothing provided to the participant family on a regular basis. Nonmonetary contributions will be valued at the cost of purchasing the items, as determined by the PHA. For contributions that may vary from month to month (e.g., utility payments), the PHA will include an average amount based upon past history. A family benefit that is used exclusively by the family, but not titled to the family (i.e., automobile, storage unit), will be counted as in-kind income. The income would include insurance, car payments, maintenance, and other vehicle expenses that are regularly paid by someone outside of the assisted household. If the family’s expenses exceed its known income, the PHA will question the family about contributions and gifts. 6-I.L. STUDENT FINANCIAL ASSISTANCE [24 CFR 5.609(b)(9); Notice PIH 2015-21] In 2005, Congress passed a law (for Section 8 programs only) requiring that certain student financial assistance be included in annual income. Prior to that, the full amount of student financial assistance was excluded. For some students, the full exclusion still applies. Student Financial Assistance Included in Annual Income [24 CFR 5.609(b)(9); FR 4/10/06; Notice PIH 2015-21] The regulation requiring the inclusion of certain student financial assistance applies only to students who satisfy all of the following conditions: • They are enrolled in an institution of higher education, as defined under the Higher Education Act (HEA) of 1965. 12.A.b Packet Pg. 1536 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-27 • They are seeking or receiving Section 8 assistance on their own—that is, apart from their parents—through the HCV program, the project-based voucher program, or the moderate rehabilitation program. • They are under 24 years of age OR they have no dependent children. For students who satisfy these three conditions, any financial assistance in excess of tuition and any other required fees and charges received: (1) under the 1965 HEA, (2) from a private source, or (3) from an institution of higher education, as defined under the 1965 HEA, must be included in annual income. To determine annual income in accordance with the above requirements, the PHA will use the definitions of dependent child, institution of higher education, and parents in Section 3-II.E, along with the following definitions [FR 4/10/06, pp. 18148-18150]: • Assistance under the Higher Education Act of 1965 includes Pell Grants, Federal Supplement Educational Opportunity Grants, Academic Achievement Incentive Scholarships, State Assistance under the Leveraging Educational Assistan ce Partnership Program, the Robert G. Byrd Honors Scholarship Program, and Federal Work Study programs. • Assistance from private sources means assistance from nongovernmental sources, including parents, guardians, and other persons not residing with the student in an HCV assisted unit. • Tuition and fees are defined in the same manner in which the Department of Education defines tuition and fees [Notice PIH 2015-21]. - This is the amount of tuition and required fees covering a full academic year most frequently charged to students. - The amount represents what a typical student would be charged and may not be the same for all students at an institution. - If tuition is charged on a per-credit-hour basis, the average full-time credit hour load for an academic year is used to estimate average tuition. - Required fees include all fixed sum charges that are required of a large proportion of all students. Examples include, but are not limited to, writing and science lab fees and fees specific to the student’s major or program (i.e., nursing program). - Expenses related to attending an institution of higher education must not be included as tuition. Examples include, but are not limited to, room and board, books, supplies, meal plans, transportation and parking, student health insurance plans, and other non-fixed sum charges. Student Financial Assistance Excluded from Annual Income [24 CFR 5.609(c)(6)] Any student financial assistance not subject to inclusion under 24 CFR 5.609(b)(9) is fully excluded from annual income under 24 CFR 5.609(c)(6), whether it is paid directly to the student or to the educational institution the student is attending. This includes any financial assistance received by: 12.A.b Packet Pg. 1537 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-28 • Students residing with parents who are seeking or receiving Section 8 assistance • Students who are enrolled in an educational institution that does not meet the 1965 HEA definition of institution of higher education • Students who are over 23 AND have at least one dependent child, as defined in Section 3-II.E • Students who are receiving financial assistance through a governmental program not authorized under the 1965 HEA. 6-I.M. ADDITIONAL EXCLUSIONS FROM ANNUAL INCOME Other exclusions contained in 24 CFR 5.609(c) that have not been discussed earlier in this chapter include the following: • Reimbursement of medical expenses [24 CFR 5.609(c)(4)] • Amounts received by participants in other publicly assisted programs which are specifically for or in reimbursement of out-of-pocket expenses incurred and which are made solely to allow participation in a specific program [24 CFR 5.609(c)(8)(iii)] • Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS) [(24 CFR 5.609(c)(8)(ii)] • Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era [24 CFR 5.609(c)(10)] • Adoption assistance payments in excess of $480 per adopted child [24 CFR 5.609(c)(12)] • Refunds or rebates on property taxes paid on the dwelling unit [24 CFR 5.609(c)(15)] • Amounts paid by a state agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home [24 CFR 5.609(c)(16)] • Amounts specifically excluded by any other federal statute [24 CFR 5.609(c)(17), FR Notice 5/20/14]. HUD publishes an updated list of these exclusions periodically. It includes: (a) The value of the allotment provided to an eligible household under the Food Stamp Act of 1977 (7 U.S.C. 2017 (b)) (b) Benefits under Section 1780 of the School Lunch Act and Child Nutrition Act of 1966, including WIC (c) Payments to volunteers under the Domestic Volunteer Services Act of 1973 (42 U.S.C. 5044(g), 5058) (d) Payments received under the Alaska Native Claims Settlement Act (43 U.S.C. 1626(c)) 12.A.b Packet Pg. 1538 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-29 (e) Income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes (25 U.S.C. 459e) (f) Payments or allowances made under the Department of Health and Human Services’ Low-Income Home Energy Assistance Program (42 U.S.C. 8624(f)) (g) Payments received under programs funded in whole or in part under the Workforce Investment Act of 1998 (29 U.S.C. 2931) (h) Deferred disability benefits from the Department of Veteran Affairs, whether received as a lump sum or in monthly prospective amounts (i) Income derived from the disposition of funds to the Grand River Band of Ottawa Indians (Pub. L. 94-540, 90 Stat. 2503-04) (j) Payments, funds, or distributions authorized, established, or directed by the Seneca Nation Settlement Act of 1990 (25 U.S.C. 1774f(b)) (k) The first $2,000 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the U. S. Claims Court, the interests of individual Indians in trust or restricted lands, including the first $2,000 per year of income received by individual Indians from funds derived from interests held in such trust or restric ted lands (25 U.S.C. 1407-1408) (l) Benefits under the Indian Veterans Housing Opportunity Act of 2010 (only applies to Native American housing programs) (m) Allowances, earnings and payments to AmeriCorps participants under the National and Community Service Act of 1990 (42 U.S.C. 12637(d)) (n) Payments received from programs funded under Title V of the Older Americans Act of 1985 (42 U.S.C. 3056(f)) (o) Payments received on or after January 1, 1989, from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in In Re Agent Orange- product liability litigation, M.D.L. No. 381 (E.D.N.Y.) (Pub. L. 101–201 and 101–39) (p) Payments received under the Maine Indian Claims Settlement Act of 1980 (Public Law 96–420, 25 U.S.C. 1721) pursuant to 25 U.S.C. 1728(c) (q) The value of any child care provided or arranged (or any amount received as payment for such care or reimbursement for costs incurred for such care) under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858q) (r) Earned income tax credit (EITC) refund payments received on or after January 1, 1991 (26 U.S.C. 32(l)) (s) Payments by the Indian Claims Commission to the Confederated Tribes and Bands of Yakima Indian Nation or the Apache Tribe of Mescalero Reservation (Pub. L. 95-433) (t) Amounts of scholarships funded under Title IV of the Higher Education Act of 1965j, including awards under federal work-study programs or under the Bureau of Indian Affairs student assistance programs (20 U.S.C. 1087uu). For Section 8 programs, the 12.A.b Packet Pg. 1539 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-30 exception found in § 237 of Public Law 109–249 applies and requires that the amount of financial assistance in excess of tuition and mandatory fees shall be considered income in accordance with the provisions codified at 24 CFR 5.609(b)(9), except for those persons with disabilities as defined by 42 U.S.C. 1437a(b)(3)(E) (Pub. L. 109–249) (See See Section 6-I.L. for exceptions.) (u) Any amount of crime victim compensation (under the Victims of Crime Act) received through crime victim assistance (or payment or reimbursement of the cost of such assistance) as determined under the Victims of Crime Act because of the commission of a crime against the applicant under the Victims of Crime Act (42 U.S.C. 10602) (v) Allowances, earnings and payments to individuals participating in pro grams under the Workforce Investment Act of 1998 (29 U.S.C. 2931) (w) Any amount received under the School Lunch Act and the Child Nutrition Act of 1966 (42 U.S.C. 1780(b)), including reduced-price lunches and food under the Special Supplemental Food Progr am for Women, Infants, and Children (WIC); (x) Payments, funds or distributions authorized, established, or directed by the Seneca Nation Settlement Act of 1990 (25 U.S.C. 1774f(b)); (y) Payments from any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amoun t or in prospective monthly amounts as provided by an amendment to the definition of annual income in the U.S. Housing Act of 1937 (42 U.S.C. 1437) by Section 2608 of the Housing and Economic Recovery Act of 2008 (Pub. L. 110–289, 42 U.S.C. 4501); (z) Compensation received by or on behalf of a veteran for service-connected disability, death, dependency, or indemnity compensation as provided by an amendment by the Indian Veterans Housing Opportunity Act of 2010 (Pub. L. 111–269) to the definition of income applicable to programs authorized under the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101) and administered by the Office of Native American Programs; and (aa) A lump sum or a periodic payment received by an individual Indian pursuant to the Class Action Settlement Agreement in the case entitled Elouise Cobell et al. v. Ken Salazar et al., United States District Court, District of Columbia, for a period of one year from the time of receipt of that payment as provided in the Claims Resolution Act of 2010 (Pub. L. 111–291). (bb) Payments received under 38 U.S.C. 1833(c) to children of Vietnam veterans born with spinal bifida, children of women Vietnam veterans born with certain birth defects, and children of certain Korean service veterans born with spinal bifida (cc) Any amounts in an "individual development account" as provided by the Assets for Independence Act, as amended in 2002 (dd) Payments made from the proceeds of Indian tribal trust cases as described in Notice PIH 2013–30, "Exclusion from Income of Payments under Recent Tribal Trust Settlements" (25 U.S.C. 117b(a)) 12.A.b Packet Pg. 1540 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-31 (ee) Major disaster and emergency assistance received under the Robert T. Stafford Disaster Relief and Emergency Assistance Act and comparable disaster assistance provided by states, local governments, and disaster assistance organizations PHA Policy • Employer Reimbursement of Mileage Expenses – Employer reimbursement for mileage expenses for use of personal vehicle is not considered income as long as the reimbursement is reasonable as compared to the Internal Revenue Service (IRS) mileage rate. Mileage logs may be required. The amount of the mileage reimbursement that exceeds the standard rate will be counted as income. • Loans – Loans to a participant/applicant from an institution are not considered income. However, “loans” from private parties are considered income if it is apparent there is little likelihood the loan will be repaid within the next three yea rs, loans from the previous year have not been repaid, and if there was no written, well-defined notarized loan agreement executed at the time the “loan” began. Repayment of a loan back to the participant/applicant is not considered income if documentation can be presented that the loan was made by the participant/applicant to the person repaying the loan. If no documentation is provided, the “repayments” are considered income. Repayments back of a loan made by the assisted household must be documented as f ollows in order to not count the payments as regular contributions to the family: 1. Bank statement withdrawals indicating the assisted household made the loan. 2. Cancelled checks indicating the amount of the loan and to whom the loan was paid. 3. Notarized loan repayment agreement executed around the time the loan was made, with the terms and amount of the loan. • Employer Contributions to a Flexible Spending Account – Employer contributions to a flexible medical or childcare expense account are not considered income as long as the money is only accessible to the family as reimbursement for out-of-pocket medical or childcare expenses. However, childcare or medical expenses will not be allowed as a deduction if they are reimbursable through a flexible employer contribution account. Documentation regarding the requirements of the account may be required. 12.A.b Packet Pg. 1541 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-32 PART II: ADJUSTED INCOME 6-II.A. INTRODUCTION Overview HUD regulations require PHAs to deduct from annual income any of five mandatory deductions for which a family qualifies. The resulting amount is the family’s adjusted income. Mandatory deductions are found in 24 CFR 5.611. 5.611(a) Mandatory deductions. In determining adjusted income, the responsible entity [PHA] must deduct the following amounts from annual income : (1) $480 for each dependent; (2) $400 for any elderly family or disabled family; (3) The sum of the following, to the extent the sum exceeds three percent of annual income: (i) Unreimbursed medical expenses of any elderly family or disabled family; (ii) Unreimbursed reasonable attendant care and auxiliary apparatus expenses for each member of the family who is a person with disabilities, to the extent necessary to enable any member of the family (including the member who is a person with disabilities) to be employed. This deduction may not exceed the earned income received by family members who are 18 years of age or older and who are able to work because of such attendant care or auxiliary apparatus; and (4) Any reasonable childcare expenses necessary to enable a member of the family to be employed or to further their education. This part covers policies related to these mandatory deductions. Verification requirements related to these deductions are found in Chapter 7. Anticipating Expenses PHA Policy Generally, the PHA will use current circumstances to anticipate expenses. When possible, for costs that are expected to fluctuate during the year (e.g., childcare during school and non-school periods and cyclical medical expenses), the PHA will estimate costs based on historic data and known future costs. If a family has an accumulated debt for medical or disability assistance expenses, the PHA will include as an eligible expense the portion of the debt that the family expects to pay during the period for which the income determination is being made. However, amounts previously deducted will not be allowed even if the amounts were not paid as expected in a preceding period. The PHA may require the family to provide documentation of payments made in the preceding year. 12.A.b Packet Pg. 1542 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-33 6-II.B. DEPENDENT DEDUCTION An allowance of $480 is deducted from annual income for each dependent [24 CFR 5.611(a)(1)]. Dependent is defined as any family member other than the head, spouse, or cohead who is under the age of 18 or who is 18 or older and is a person with disabilities or a full-time student. Foster children, foster adults, and live-in aides are never considered dependents [24 CFR 5.603(b)]. 6-II.C. ELDERLY OR DISABLED FAMILY DEDUCTION A single deduction of $400 is taken for any elderly or disabled family [24 CFR 5.611(a)(2)]. An elderly family is a family whose head, spouse, cohead, or sole member is 62 years of age or older, and a disabled family is a family whose head, spouse, cohead, or sole member is a person with disabilities [24 CFR 5.403]. 6-II.D. MEDICAL EXPENSES DEDUCTION [24 CFR 5.611(a)(3)(i)] Unreimbursed medical expenses may be deducted to the extent that, in combination with any disability assistance expenses, they exceed three percent of gross annual income. The medical expense deduction is permitted only for families in which the head, spouse, or cohead is at least 62 or is a person living with disabilities. If a family is eligible for a medical expense deduction, the medical expenses of all family members are counted [VG, p. 28]. PHA Policy Families who claim medical expenses must submit a certification indicating if medical expenses have been, or will be, reimbursed by an outside source. It is the responsibility of the family to provide documentation of expenses in the format required by the PHA. Expenses supported by confusing, unclear, or non-descriptive documentation will be disallowed. Eligible Medical Expenses - Medicines, equipment, treatments and prescriptions that are for the treatment of a disability-related medical condition are eligible medical expenses. This does not include medicines, vitamin supplements, over-the-counter medications, and treatments recommended to maintain general health, or as a preventive treatment, including medical marijuana. Treatment in a non-traditional, non-medical setting is not an eligible medical expense unless it is directly administered by a licensed medical professional. Proof of direct administration or supervision will be required documentation for the specific medical condition. Dental cleanings that can be anticipated based on past actual bills may be included as medical expense deductions. 12.A.b Packet Pg. 1543 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-34 Necessary and Reasonable Expenses- The PHA will only allow necessary and reasonable medical expenses and may verify the reasonableness of those expenses by obtaining information from third party service professionals. Definition of Medical Expenses HUD regulations define medical expenses at 24 CFR 5.603(b) to mean “medical expenses, including medical insurance premiums, that are anticipated during the period for which annual income is computed, and that are not covered by insurance.” PHA Policy The most current IRS Publication 502, Medical and Dental Expenses, will be used as a reference to determine the costs that qualify as medical expenses. Summary of Allowable Medical Expenses from IRS Publication 502 Services of medical professionals Surgery and medical procedures that are necessary, legal, non-cosmetic Services of medical facilities Hospitalization, long-term care, and in- home nursing services Prescription medicines and over-the- counter medications that are prescribed by a doctor; insulin. Improvements to housing directly related to medical needs (e.g., ramps for a wheel chair, handrails) Substance abuse treatment programs Psychiatric treatment Ambulance services and some costs of transportation related to medical expenses The cost and care of necessary equipment related to a medical condition (e.g., eyeglasses/lenses, hearing aids, crutches, and artificial teeth) Cost and continuing care of necessary service animals Medical insurance premiums or the cost of a health maintenance organization (HMO) Note: This chart provides a summary of eligible medical expenses only. Detailed information is provided in IRS Publication 502. Medical expenses are considered only to the extent they are not reimbursed by insurance or some other source. Families That Qualify for Both Medical and Disability Assistance Expenses PHA Policy This policy applies only to families in which the head, spouse, or cohead is 62 or older or is a person with disabilities. 12.A.b Packet Pg. 1544 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-35 When expenses anticipated by a family could be defined as either medical or disability assistance expenses, the PHA will consider them medical expenses unless it is clear that the expenses are incurred exclusively to enable a person with disabilities to work. 6-II.E. DISABILITY ASSISTANCE EXPENSES DEDUCTION [24 CFR 5.603(b) and 24 CFR 5.611(a)(3)(ii)] Reasonable expenses for attendant care and auxiliary apparatus for a disabled family member may be deducted if they: (1) are necessary to enable a family member 18 years or older to work, (2) are not paid to a family member or reimbursed by an outside source, (3) in combination with any medical expenses, exceed three percent of annual income, and (4) do not exceed the earned income received by the family member who is enabled to work. Earned Income Limit on the Disability Assistance Expense Deduction A family can qualify for the disability assistance expense deduction only if at least one family member (who may be the person with disabilities) is enabled to work [24 CFR 5.603(b)]. The disability expense deduction is capped by the amount of “earned income received by family members who are 18 years of age or older and who are able to work” because of the expense [24 CFR 5.611(a)(3)(ii)]. The earned income used for this purpose is the amount verified before any earned income disallowances or income exclusions are applied. PHA Policy The family must identify the family members enabled to work as a result of the disability assistance expenses. In evaluating the family’s request, the PHA will consider factors such as how the work schedule of the relevant family members relates to the hours of care provided, the time required for transportation, the relationship of the family members to the person with disabilities, and any special needs of the person with disabilities that might determine which family members are enabled to work. When the PHA determines that the disability assistance expenses enable more than one family member to work, the expenses will be capped by the sum of the family members’ incomes. Eligible Disability Expenses Examples of auxiliary apparatus are provided in the HCV Guidebook as follows: “Auxiliary apparatus are items such as wheelchairs, ramps, adaptations to vehicles, or special equipment to enable a blind person to read or type, but only if these items are directly related to permitting the disabled person or other family member to work” [HCV GB, p. 5-30]. HUD advises PHAs to further define and describe auxiliary apparatus [VG, p. 30]. 12.A.b Packet Pg. 1545 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-36 Eligible Auxiliary Apparatus PHA Policy Expenses incurred for maintaining or repairing an auxiliary apparatus is eligible. In the case of an apparatus that is specially adapted to accommodate a person with disabilities (e.g., a vehicle or computer), the cost to maintain the special adaptations (but not maintenance of the apparatus itself) is an eligible expense. The cost of service animals trained to give assistance to persons with disabilities, including the cost of acquiring the animal, veterinary care, food, grooming, and other continuing costs of care, will be included. Eligible Attendant Care The family determines the type of attendant care that is appropriate for the person with disabilities. PHA Policy Attendant care includes, but is not limited to, reasonable costs for home medical care, nursing services, in-home or center-based care services, interpreters for persons with hearing impairments, and readers for persons with visual disabilities. Attendant care expenses will be included for the period that the person enabled to work is employed plus reasonable transportation time. The cost of general housekeeping and personal services is not an eligible attendant care expense. However, if the person enabled to work is the person with disabilities, personal services necessary to enable the person with disabilities to work are eligible. If the care attendant also provides other services to the family, the PHA will prorate the cost and allow only that portion of the expenses attributable to attendant care that enables a family member to work. For example, if the care provider also cares for a child who is not the person with disabilities, the cost of care must be prorated. Unless otherwise specified by the care provider, the calculation will be based upon the number of hours spent in each activity and/or the number of persons under care. Payments to Family Members No disability assistance expenses may be deducted for payments to a member of an assisted family [24 CFR 5.603(b)]. However, expenses paid to a relative who is not a member of the assisted family may be deducted if they are not reimbursed by an outside source. Necessary and Reasonable Expenses The family determines the type of care or auxiliary apparatus to be provided and must describe how the expenses enable a family member to work. The family must certify that the disability assistance expenses are necessary and are not paid or reimbursed by any other source. 12.A.b Packet Pg. 1546 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-37 PHA Policy The PHA determines the reasonableness of the expenses based on typical costs of care or apparatus in the locality. To establish typical costs, the PHA will collect information from organizations that provide services and support to persons with disabilities. A family may present, and the PHA will consider, the family’s justification for costs that exceed typical costs in the area. Families That Qualify for Both Medical and Disability Assistance Expenses PHA Policy This policy applies only to families in which the head or spouse is 62 or older or is a person with disabilities. When expenses anticipated by a family could be defined as either medical or disability assistance expenses, the PHA will consider them medical expenses unless it is clear that the expenses are incurred exclusively to enable a person with disabilities to work. 6-II.F. CHILD CARE EXPENSE DEDUCTION HUD defines child care expenses at 24 CFR 5.603(b) as “amounts anticipated to be paid by the family for the care of children under 13 years of age during the period for which annual income is computed, but only where such care is necessary to enable a family member to actively seek employment, be gainfully employed, or to further their education and only to the extent such amounts are not reimbursed. The amount deducted shall reflect reasonable charges for child care. In the case of child care necessary to permit employment, the amount deducted shall not exceed the amount of employment income that is included in annual income.” Clarifying the Meaning of Child for This Deduction Child care expenses do not include child support payments made to another on behalf of a minor who is not living in an assisted family’s household [VG, p. 26]. However, child care expenses for foster children that are living in the assisted family’s household are included when determining the family’s child care expenses [HCV GB, p. 5-29]. Qualifying for the Deduction Determining Who Is Enabled to Pursue an Eligible Activity PHA Policy 12.A.b Packet Pg. 1547 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-38 The family must identify the family member(s) enabled to pursue an eligible activity. The term eligible activity in this section means any of the activities that may make the family eligible for a child care deduction (seeking work, pursuing an education, or being gainfully employed). In evaluating the family’s request, the PHA will consider factors such as how the schedule for the claimed activity relates to the hours of care provided, the time required for transportation, the relationship of the family member(s) to the child, and any special needs of the child that might help determine which family member is enabled to pursue an eligible activity. Seeking Work PHA Policy If the child care expense being claimed is to enable a family member to seek employment, the family must provide evidence of the family member’s efforts to obtain employment at each reexamination on a PHA proof of seeking work form. The deduction may be reduced or denied if the family member’s job search efforts are not commensurate with the child care expense being allowed by the PHA. Furthering Education PHA Policy If the child care expense being claimed is to enable a family member to further their education, the member must be enrolled in school (academic or vocational) or participating in a formal training program. The family member is not required to be a full-time student, but the time spent in educational activities must be commensurate with the child care claimed. Being Gainfully Employed PHA Policy If the child care expense being claimed is to enable a family member to be gainfully employed, the family must provide evidence of the family member’s employment during the time that child care is being provided. Gainful employment is any legal work activity (full- or part-time) for which a family member is compensated. Earned Income Limit on Child Care Expense Deduction When a family member looks for work or furthers their education, there is no cap on the amount that may be deducted for child care – although the care must still be necessary and reasonable. However, when child care enables a family member to work, the deduction is capped by “the amount of employment income that is included in annual income” [24 CFR 5.603(b)]. 12.A.b Packet Pg. 1548 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-39 The earned income used for this purpose is the amount of earned income verified after any earned income disallowances or income exclusions are applied. When the person who is enabled to work is a person with disabilities who receives the earned income disallowance (EID) or a full-time student whose earned income above $480 is excluded, child care costs related to enabling a family member to work may not exceed the portion of the person’s earned income that actually is included in annual income. For example, if a family member who qualifies for the EID makes $15,000 but because of the EID only $5,000 is included in annual income, child care expenses are limited to $5,000. The PHA must not limit the deduction to the least expensive type of child care. If the care allows the family to pursue more than one eligible activity, including work, the cap is calculat ed in proportion to the amount of time spent working [HCV GB, p. 5-30]. PHA Policy When the child care expense being claimed is to enable a family member to work, only one family member’s income will be considered for a given period of time. When more than one family member works during a given period, the PHA generally will limit allowable child care expenses to the earned income of the lowest-paid member. The family may provide information that supports a request to designate another family member as the person enabled to work. Eligible Child Care Expenses The type of care to be provided is determined by the assisted family. The PHA may not refuse to give a family the child care expense deduction because there is an adult family member in the household that may be available to provide child care [VG, p. 26]. Allowable Child Care Activities PHA Policy For school-age children, costs attributable to public or private school activities during standard school hours are not considered. Expenses incurred for supervised activities after school or during school holidays (e.g., summer day camp, after-school sports league) are allowable forms of child care. The costs of general housekeeping and personal services are not eligible. Likewise, child care expenses paid to a family member who lives in the family’s unit are not eligible; however, payments for child care to relatives who do not live in the unit are eligible. If a child care provider also renders other services to a family or child care is used to enable a family member to conduct activities that are not eligible for consideration, the PHA will prorate the costs and allow only that portion of the expenses that is attributable to child care for eligible activities. Unless otherwise specified by the child 12.A.b Packet Pg. 1549 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-40 care provider, the calculation will be based upon the number of hours spent in each activity and/or the number of persons under care. Necessary and Reasonable Costs Child care expenses will be considered necessary if: (1) a family adequately explains how the care enables a family member to work, actively seek employment, or further their education, and (2) the family certifies, and the child care provider verifies, that the expenses are not paid or reimbursed by any other source. PHA Policy Child care expenses will be considered for the time required for the eligible activity plus reasonable transportation time. For child care that enables a family member to go to school, the time allowed may include not more than one half study hour for each hour spent in class. To establish the reasonableness of child care costs, the PHA will use the schedule of child care costs from a qualified local entity that either subsidizes child care costs or licenses child care providers. Families may present, and the PHA will consider, justification for costs that exceed typical costs in the area. 12.A.b Packet Pg. 1550 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-41 PART III: CALCULATING FAMILY SHARE AND PHA SUBSIDY 6-III.A. OVERVIEW OF RENT AND SUBSIDY CALCULATIONS TTP Formula [24 CFR 5.628] HUD regulations specify the formula for calculating the total tenant payment (TTP) for an assisted family. TTP is the highest of the following amounts, rounded to the nearest dollar: • 30 percent of the family’s monthly adjusted income (adjusted income is defined in Part II) • 10 percent of the family’s monthly gross income (annual income, as defined in Part I, divided by 12) • The welfare rent (in as-paid states only) • A minimum rent between $0 and $50 that is established by the PHA The PHA has authority to suspend and exempt families from minimum rent when a financial hardship exists, as defined in section 6-III.B. The amount that a family pays for rent and utilities (the family share) will never be less than the family’s TTP but may be greater than the TTP depending on the rent charged for the unit the family selects. Welfare Rent [24 CFR 5.628] PHA Policy Welfare rent does not apply in this locality. Minimum Rent [24 CFR 5.630] PHA Policy The minimum rent for this locality is $50.00. Family Share [24 CFR 982.305(a)(5)] If a family chooses a unit with a gross rent (rent to owner plus an allowance for tenant -paid utilities) that exceeds the PHA’s applicable payment standard: (1) the family will pay more than the TTP, and (2) at initial occupancy the PHA will not approve the tenancy if it would require the family share to exceed 40 percent of the family’s monthly adjusted income. COC and HOME programs cannot exceed 30 percent of family’s monthly adjusted income. Income calculated to determine the TTP will be calculated based on income verified when the RTA is issued. The income used for this determination must have been verified no earlier than 60 days before the family’s voucher was issued. (For a discussion of the application of payment standards, see section 6-III.C.) 12.A.b Packet Pg. 1551 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-42 PHA Subsidy [24 CFR 982.505(b)] The PHA will pay a monthly housing assistance payment (HAP) for a family that is equal to the lower of (1) the applicable payment standard for the family minus the family’s TTP or (2) the gross rent for the family’s unit minus the TTP. (For a discussion of the application of payment standards, see section 6-III.C.) Utility Reimbursement [24 CFR 982.514(b); 982.514(c)] When the PHA subsidy for a family exceeds the rent to owner, the family is due a utility reimbursement. HUD permits the PHA to pay the reimbursement to the family or directly to the utility provider. PHA Policy The PHA will generally make utility reimbursements to the family, but in some instances may elect to directly pay the utility provider. The PHA may make all utility reimbursement payments to qualifying families on a monthly basis or may make quarterly payments when the monthly reimbursement amount is $15.00 or less. Reimbursements must be made once per calendar-year quarter and must be prorated if the family leaves the program in advance of its next quarterly reimbursement. The PHA must also adopt hardship policies for families for whom receiving quarterly reimbursement would create a financial hardship. PHA Policy The PHA will issue all utility reimbursements monthly. 6-III.B. FINANCIAL HARDSHIPS AFFECTING MINIMUM RENT [24 CFR 5.630] PHA Policy The financial hardship rules described below does apply in this jurisdiction because the PHA has established a minimum rent of $50.00. Overview If the PHA establishes a minimum rent greater than zero, the PHA must grant an exemption from the minimum rent if a family is unable to pay the minimum rent because of financial hardship. The financial hardship exemption applies only to families required to pay the minimum rent. If a family’s TTP is higher than the minimum rent, the family is not eligible for a hardship exemption. If the PHA determines that a hardship exists, the family share is the highest of the remaining components of the family’s calculated TTP. HUD-Defined Financial Hardship 12.A.b Packet Pg. 1552 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-43 Financial hardship includes the following situations: (1) The family has lost eligibility for or is awaiting an eligibility determination for a federal, state, or local assistance program. This includes a family member who is a noncitizen lawfully admitted for permanent residence under the Immigration and Nationality Act who would be entitled to public benefits but for Title IV of the Personal Responsibility and Work Opportunity Act of 1996. PHA Policy A hardship will be considered to exist only if the loss of eligibility has an impact on the family’s ability to pay the minimum rent. For a family waiting for a determination of eligibility, the hardship period will end as of the first of the month following: (1) implementation of assistance, if approved, or (2) the decision to deny assistance. A family whose request for assistance is denied may request a hardship exemption based upon one of the other allowable hardship circumstances. (2) The family would be evicted because it is unable to pay the minimum rent. PHA Policy For a family to qualify under this provision, the cause of the potential eviction must be the family’s failure to pay rent to the owner or tenant-paid utilities. (3) Family income has decreased because of changed family circumstances, including the loss of employment. (4) A death has occurred in the family. PHA Policy In order to qualify under this provision, a family must describe how the death has created a financial hardship (e.g., because of funeral-related expenses or the loss of the family member’s income). (5) The family has experienced other circumstances determined by the PHA. PHA Policy The PHA has not established any additional hardship criteria. Implementation of Hardship Exemption Determination of Hardship When a family requests a financial hardship exemption, the PHA must suspend the minimum rent requirement beginning the first of the month following the family’s request. The PHA then determines whether the financial hardship exists and whether the hardship is temporary or long-term. PHA Policy 12.A.b Packet Pg. 1553 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-44 The PHA defines temporary hardship as a hardship expected to last 90 days or less. Long-term hardship is defined as a hardship expected to last more than 90 days. When the minimum rent is suspended, the family share reverts to the highest of the remaining components of the calculated TTP. The example below demonstrates the effect of the minimum rent exemption. Example: Impact of Minimum Rent Exemption Assume the PHA has established a minimum rent of $50. Family Share – No Hardship Family Share – With Hardship $0 $15 N/A $50 30% of monthly adjusted income 10% of monthly gross income Welfare rent Minimum rent $0 $15 N/A $50 30% of monthly adjusted income 10% of monthly gross income Welfare rent Minimum rent Minimum rent applies. TTP = $50 Hardship exemption granted. TTP = $15 PHA Policy To qualify for a hardship exemption, a family must submit a request for a hardship exemption in writing. The request must explain the nature of the hardship and how the hardship has affected the family’s ability to pay the minimum rent. For LEP participants, the PHA will provide appropriate language assistance in submitting this written request, in accordance with the PHA’s LEP Plan. The PHA will make the determination of hardship within 30 calendar days. No Financial Hardship If the PHA determines there is no financial hardship, the PHA will reinstate the minimum rent and require the family to repay the amounts suspended. PHA Policy The PHA will require the family to repay the suspended amount within 30 calendar days of the PHA’s notice that a hardship exemption has not been granted. Temporary Hardship If the PHA determines that a qualifying financial hardship is temporary, the PHA must suspend the minimum rent for the 90-day period beginning the first of the month following the date of the family’s request for a hardship exemption. 12.A.b Packet Pg. 1554 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-45 At the end of the 90-day suspension period, the family must resume payment of the minimum rent and must repay the PHA the amounts suspended. HUD requires the PHA to offer a reasonable repayment agreement, on terms and conditions established by the PHA. The PHA also may determine that circumstances have changed and the hardship is now a long-term hardship. PHA Policy The PHA will enter into a repayment agreement in accordance with the procedures found in Chapter 16 of this plan. Long-Term Hardship If the PHA determines that the financial hardship is long-term, the PHA must exempt the family from the minimum rent requirement for so long as the hardship continues. The exemption will apply from the first of the month following the family’s request until the end of the qualifying hardship. When the financial hardship has been determined to be long-term, the family is not required to repay the minimum rent. PHA Policy The hardship period ends when any of the following circumstances apply: (1) At an interim or annual reexamination, the family’s calculated TTP is greater than the minimum rent. (2) For hardship conditions based on loss of income, the hardship condition will continue to be recognized until new sources of income are received that are at least equal to the amount lost. For example, if a hardship is approved because a family no longer receives a $60/month child support payment, the hardship will continue to exist until the family receives at least $60/month in income from another source or once again begins to receive the child support. (3) For hardship conditions based upon hardship-related expenses, the minimum rent exemption will continue to be recognized until the cumulative amount exempted is equal to the expense incurred. 6-III.C. APPLYING PAYMENT STANDARDS [24 CFR 982.505; 982.503(b)] Overview The PHA’s schedule of payment standards is used to calculate housing assistance payments for HCV families. This section covers the application of the PHA’s payment standards. The establishment and revision of the PHA’s payment standard schedule are covered in Chapter 16. Payment standard is defined as “the maximum monthly assistance payment for a family assisted in the voucher program (before deducting the total tenant payment by the family)” [24 CFR 982.4(b)]. 12.A.b Packet Pg. 1555 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-46 The payment standard for a family is the lower of (1) the payment standard for the family unit size, which is defined as the appropriate number of bedrooms for the family under the PHA’s subsidy standards [24 CFR 982.4(b)], or (2) the payment standard for the size of the dwelling unit rented by the family. If the PHA has established an exception payment standard for a designated part of a zip code are or FMR area and a family’s unit is located in the exception area, the PHA must use the appropriate payment standard for the exception area. The PHA is required to pay a monthly housing assistance payment (HAP) for a family that is the lower of (1) the payment standard for the family minus the family’s TTP or (2) the gross rent for the family’s unit minus the TTP. If during the term of the HAP contract for a family’s unit, the owner lowers the rent, the PHA will recalculate the HAP using the lower of the initial payment standard or the gross rent for the unit [HCV GB, p. 7-8]. For Deed Restricted Affordable Housing Payment Standard information, see Chapter 16 II B. Changes in Payment Standards When the PHA revises its payment standards during the term of the HAP contract for a family’s unit, it will apply the new payment standards in accordance with HUD regulations. Decreases If a PHA changes its payment standard schedule, resulting in a lower payment standard amount, during the term of a HAP contract, the PHA is not required to reduce the payment standard used to calculate subsidy for families under HAP contract as long as the HAP contract remains in effect [FR Notice 11/16/16]. However, if the PHA does choose to reduce the payment standard for families currently under HAP contract, the initial reduction to the payment standard may not be applied any earlier than the effective date of the family’s second regular reexamination following the effective date of the decrease in the payment standard amount. At that point, the PHA may either reduce the payment standard to the current amount in effect on the PHA’s payment standard schedule, or may reduce the payment standard to another amount that is higher than the normally applicable amount on the schedule. The PHA may also establish different policies for designated areas within their jurisdiction (e.g., differ ent zip code areas). In any case, the PHA must provide the family with at least 12 months’ notice that the payment standard is being reduced before the effective date of the change. The PHA’s policy on decreases in the payment standard during the term of the HAP contract apply to all families under HAP contract at the time of the effective date of the decrease in t he payment standard within the designated area. PHA Policy 12.A.b Packet Pg. 1556 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-47 If a PHA changes its payment standard schedule resulting in a lower payment standard amount, during the term of a HAP contract, the PHA will not reduce the payment standard used to calculate subsidy for families under HAP contract as long as the HAP contract remains in effect. The PHA will not establish different policies for decreases in the payment standard for designated areas within their jurisdiction. Increases If the payment standard is increased during the term of the contract, the increased payment standard will be used to calculate the monthly housing assistance payment for the fa mily beginning on the effective date of the family’s first regular reexamination on or after the effective date of the increase in the payment standard. Families requiring or requesting interim reexaminations will not have their HAP payments calculated using the higher payment standard until their next annual reexamination [HCV GB, p. 7-8]. Changes in Family Unit Size (Voucher Size) Irrespective of any increase or decrease in the payment standard, if the family unit size increases or decreases during the contract term, the new family unit size must be used to determine the payment standard for the family in accordance with Chapter 5 Part II of this plan. Reasonable Accommodation If a family requires a higher payment standard as a reasonable accommodation for a family member who is a person with disabilities, the PHA is allowed to establish a higher payment standard for the family of not more than 120 percent of the published FMR. 6-III.D. APPLYING UTILITY ALLOWANCES [24 CFR 982.517] Overview A PHA-established utility allowance schedule is used in determining family share and PHA subsidy. A family’s utility allowance is determined by the size of the dwelling unit leased by a family or the voucher unit size for which the family qualifies using PHA subsidy sta ndards, whichever is the lower of the two. See Chapter 5 for information on the PHA’s subsidy standards. For policies on establishing and updating utility allowances, see Chapter 16. Reasonable Accommodation 12.A.b Packet Pg. 1557 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-48 HCV program regulations require a PHA to approve a utility allowance amount higher than shown on the PHA’s schedule if a higher allowance is needed as a reasonable accommodation for a family member with a disability. For example, if a family member with a disability requires such an accommodation, the PHA will approve an allowance for air-conditioning, even if the PHA has determined that an allowance for air-conditioning generally is not needed. The family must request the higher allowance and provide the PHA with an explanation of the need for the reasonable accommodation and information about the amount of additional allowance required [HCV GB, p. 18-8]. Utility Allowance Revisions At reexamination, the PHA must use the PHA current utility allowance schedule [HCV GB, p. 18- 8]. PHA Policy Revised utility allowances will be applied to a family’s rent and subsidy calculations at the first annual reexamination that is effective after the allowance is adopted. 6-III.E. PRORATED ASSISTANCE FOR MIXED FAMILIES [24 CFR 5.520] HUD regulations prohibit assistance to ineligible family members. A mixed family is one that includes at least one U.S. citizen or eligible immigrant and any number of ineligible fam ily members. The PHA must prorate the assistance provided to a mixed family. The PHA will first determine assistance as if all family members were eligible and then prorate the assistance based upon the percentage of family members that are eligible. For e xample, if the PHA subsidy for a family is calculated at $500 and two of four family members are ineligible , the PHA subsidy would be reduced to $250. 12.A.b Packet Pg. 1558 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-49 EXHIBIT 6-1: ANNUAL INCOME INCLUSIONS 24 CFR 5.609 (a) Annual income means all amounts, monetary or not, which: (1) Go to, or on behalf of, the family head or spouse (even if temporarily absent) or to any other family member; or (2) Are anticipated to be received from a source outside the family during the 12- month period following admission or annual reexamination effective date; and (3) Which are not specifically excluded in paragraph (c) of this section. (4) Annual income also means amounts derived (during the 12-month period) from assets to which any member of the family has access. (b) Annual income includes, but is not limited to: (1) The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services; (2) The net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight-line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family; (3) Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation is permitted only as authorized in paragraph (b)(2) of this section. Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $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; (4) The full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump-sum amount or prospective monthly amounts for the delayed start of a periodic amount (except as provided in paragraph (c)(14) of this section); (5) Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay (except as provided in paragraph (c)(3) of this section); 12.A.b Packet Pg. 1559 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-50 (6) Welfare assistance payments. (i) Welfare assistance payments made under the Temporary Assistance for Needy Families (TANF) program are included in annual income only to the extent such payments: (A) Qualify as assistance under the TANF program definition at 45 CFR 260.311; and (B) Are not otherwise excluded under paragraph (c) of this section. (ii) If the welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the welfare assistance agency in accordance with the actual cost of shelter and utilities, the amount of welfare assistance income to be included as income shall consist of: (A) The amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities; plus (B) The maximum amount that the welfare assistance agency could in fact allow the family for shelter and utilities. If the family's welfare assistance is ratably reduced from the standard of need by applying a percentage, the amount calculated under this paragraph shall be the amount resulting from one application of the percentage. (7) Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing in the dwelling; (8) All regular pay, special pay and allowances of a member of the Armed Forces (except as provided in paragraph (c)(7) of this section) 1 Text of 45 CFR 260.31 follows. (9) For section 8 programs only and as provided in 24 CFR 5.612, any financial assistance, in excess of amounts received for tuition, that an individual receives under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), from private sources, or from an institution of higher education (as defined under the Higher Education Act of 1965 (20 U.S.C. 1002)), shall be considered income to that individual, except that financial assistance described in this paragraph is not considered annual income for persons over the age of 23 with dependent children. For purposes of this paragraph, “financial assistance” does not include loan proceeds for the purpose of determining income. HHS DEFINITION OF "ASSISTANCE" 45 CFR: GENERAL TEMPORARY ASSISTANCE FOR NEEDY FAMILIES 260.31 What does the term “assistance” mean? (a)(1) The term “assistance” includes cash, payments, vouchers, and other forms of benefits designed to meet a family’s ongoing basic needs (i.e., for food, clothing, shelter, utilities, household goods, personal care items, and general incidental expenses). (2) It includes such benefits even when they are: (i) Provided in the form of payments by a TANF agency, or other agency on its behalf, to individual recipients; and (ii) Conditioned on participation in work experience or community service (or any other work activity under 261.30 of this chapter). 12.A.b Packet Pg. 1560 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-51 (3) Except where excluded under paragraph (b) of this section, it also includes supportive services such as transportation and child care provided to families who are not employed. (b) [The definition of “assistance”] excludes: (1) Nonrecurrent, short-term benefits that: (i) Are designed to deal with a specific crisis situation or episode of need; (ii) Are not intended to meet recurrent or ongoing needs; and (iii) Will not extend beyond four months. (2) Work subsidies (i.e., payments to employers or third parties to help cover the costs of employee wages, benefits, supervision, and training); (3) Supportive services such as child care and transportation provided to families who are employed; (4) Refundable earned income tax credits; (5) Contributions to, and distributions from, Individual Development Accounts; (6) Services such as counseling, case management, peer support, child care information and referral, transitional services, job retention, job advancement, and other employment-related services that do not provide basic income support; and (7) Transportation benefits provided under a Job Access or Reverse Commute project, pursuant to section 404(k) of [the Social Security] Act, to an individual who is not otherwise receiving assistance. 12.A.b Packet Pg. 1561 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-52 EXHIBIT 6-2: ANNUAL INCOME EXCLUSIONS 24 CFR 5.609 (c) Annual income does not include the following: (1) Income from employment of children (including foster children) under the age of 18 years; (2) Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the tenant family, who are unable to live alone); (3) Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses (except as provided in paragraph (b)(5) of this section); (4) Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member; (5) Income of a live-in aide, as defined in Sec. 5.403; (6) Subject to paragraph (b)(9) of this section, the full amount of student financial assistance paid directly to the student or to the educational institution; (7) The special pay to a family member serving in the Armed Forces who is exposed to hostile fire; (8) (i) Amounts received under training programs funded by HUD; (ii) Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS); (iii) Amounts received by a participant in other publicly assisted programs which are specifically for or in reimbursement of out-of- pocket expenses incurred (special equipment, clothing, transportation, child care, etc.) and which are made solely to allow participation in a specific program; (iv) Amounts received under a resident service stipend. A resident service stipend is a modest amount (not to exceed $200 per month) received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development. Such services may include, but are not limited to, fire patrol, hall monitoring, lawn maintenance, resident initiatives coordination, and serving as a member of the PHA's governing board. No resident may receive more than one such stipend during the same period of time; (v) Incremental earnings and benefits resulting to any family member from participation in qualifying State or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives, and are excluded only for the period during which the family member participates in the employment training program; (9) Temporary, nonrecurring or sporadic income (including gifts); 12.A.b Packet Pg. 1562 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-53 (10) Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era; (11) Earnings in excess of $480 for each full- time student 18 years old or older (excluding the head of household and spouse); (12) Adoption assistance payments in excess of $480 per adopted child; (13) [Reserved] (14) Deferred periodic amounts from supplemental security income and social security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or prospective monthly amounts. (15) Amounts received by the family in the form of refunds or rebates under State or local law for property taxes paid on the dwelling unit; (16) Amounts paid by a State agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home; or (17) Amounts specifically excluded by any other Federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in 24 CFR 5.609(c) apply. A notice will be published in the Federal Register and distributed to PHAs and housing owners identifying the benefits that qualify for this exclusion. Updates will be published and distributed when necessary. [See Section 6- I.M. for a list of benefits that qualify for this exclusion.] 12.A.b Packet Pg. 1563 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-54 EXHIBIT 6-3: TREATMENT OF FAMILY ASSETS 24 CFR 5.603(b) Net Family Assets (1) Net cash value after deducting reasonable costs that would be incurred in disposing of real property, savings, stocks, bonds, and other forms of capital investment, excluding interests in Indian trust land and excluding equity accounts in HUD homeownership programs. The value of necessary items of personal property such as furniture and automobiles shall be excluded. (2) In cases where a trust fund has been established and the trust is not revocable by, or under the control of, any member of the family or household, the value of the trust fund will not be considered an asset so long as the fund continues to be held in trust. Any income distributed from the trust fund shall be counted when determining annual income under Sec. 5.609. (3) In determining net family assets, PHAs or owners, as applicable, shall include the value of any business or family assets disposed of by an applicant or tenant for less than fair market value (including a disposition in trust, but not in a foreclosure or bankruptcy sale) during the two years preceding the date of application for the program or reexamination, as applicable, in excess of the consideration received therefor. In the case of a disposition as part of a separation or divorce settlement, the disposition will not be considered to be for less than fair market value if the applicant or tenant receives important consideration not measurable in dollar terms. (4) For purposes of determining annual income under Sec. 5.609, the term "net family assets'' does not include the value of a home currently being purchased with assistance under part 982, subpart M of this title. This exclusion is limited to the first 10 years after the purchase date of the home. 12.A.b Packet Pg. 1564 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-55 EXHIBIT 6-4: EARNED INCOME DISALLOWANCE FOR PERSONS WITH DISABILITIES 24 CFR 5.617 Self-sufficiency incentives for persons with disabilities–Disallowance of increase in annual income. (a) Applicable programs. The disallowance of earned income provided by this section is applicable only to the following programs: HOME Investment Partnership Program (24 CFR part 92); Housing Opportunities for Persons with AIDS (24 CFR part 583); and the Housing Choice Voucher Program (24 CFR part 982). (b) Definitions. The following definitions apply for purposes of this section. Baseline income. The annual income immediately prior to implementation of the disallowance described in paragraph (c)(1) of this section of a person with disabilities (who is a member of a qualified family). Disallowance. Exclusion from annual income. Previously unemployed includes a person with disabilities who has earned, in the twelve months previous to employment, no more than would be received for 10 hours of work per week for 50 weeks at the established minimum wage. Qualified family. A family residing in housing assisted under one of the programs listed in paragraph (a) of this section or receiving tenant-based rental assistance under one of the programs listed in paragraph (a) of this section. (1) Whose annual income increases as a result of employment of a family member who is a person with disabilities and who was previously unemployed for one or more years prior to employment; (2) Whose annual income increases as a result of increased earnings by a family member who is a person with disabilities during participation in any economic self-sufficiency or other job training program; or (3) Whose annual income increases, as a result of new employment or increased earnings of a family member who is a person with disabilities, during or within six months after receiving assistance, benefits or services under any state program for temporary assistance for needy families funded under Part A of Title IV of the Social Security Act, as determined by the responsible entity in consultation with the local agencies administering temporary assistance for needy families (TANF) and Welfare-to-Work (WTW) programs. The TANF program is not limited to monthly income maintenance, but also includes such benefits and services as one- time payments, wage subsidies and transportation assistance-- provided that the total amount over a six-month period is at least $500. (c) Disallowance of increase in annual income— (1) Initial twelve month exclusion. During the 12-month period beginning on the date a member who is a person with disabilities of a qualified family is first employed or the family first experiences an increase in annual income attributable to employment, the responsible entity must exclude from annual income (as defined in the regulations governing the applicable program listed in paragraph (a) of this section) of a qualified family any increase in income of the family member who is a person with disabilities as a result of employment over prior income of that family member. 12.A.b Packet Pg. 1565 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-56 (2) Second twelve-month exclusion and phase-in. Upon expiration of the 12-month period defined in paragraph (c)(1) of this section and for the subsequent 12-month period, the responsible entity must exclude from annual income of a qualified family at least 50 percent of any increase in income of such family member as a result of employment over the family member’s baseline income. (3) Maximum 2-year disallowance. The disallowance of increased income of an individual family member who is a person with disability’s as provided in paragraph (c)(1) or (c)(2) of this section is limited to a lifetime 24-month period. The disallowance applies for a maximum of 12 months for disallowance under paragraph (c)(1) of this section and a maximum of 12 months for disallowance under paragraph (c)(2) of this section, during the 24-month period starting from the initial exclusion under paragraph (c)(1) of this section. (4) Effect of changes on currently participating families. Families eligible for and participating in the disallowance of earned income under this section prior to May 9, 2016 will continue to be governed by this section in effect as it existed immediately prior to that date (see 24 CFR parts 0 to 199, revised as of April 1, 2016). (d) Inapplicability to admission. The disallowance of increases in income as a result of employment of persons with disabilities under this section does not apply for purposes of admission to the program (including the determination of income eligibility or any income targeting that may be applicable). 12.A.b Packet Pg. 1566 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-57 EXHIBIT 6-5: THE EFFECT OF WELFARE BENEFIT REDUCTION 24 CFR 5.615 Public housing program and Section 8 tenant-based assistance program: How welfare benefit reduction affects family income. (a) Applicability. This section applies to covered families who reside in public housing (part 960 of this title) or receive Section 8 tenant-based assistance (part 982 of this title). (b) Definitions. The following definitions apply for purposes of this section: Covered families. Families who receive welfare assistance or other public assistance benefits ("welfare benefits'') from a State or other public agency ("welfare agency'') under a program for which Federal, State, or local law requires that a member of the family must participate in an economic self- sufficiency program as a condition for such assistance. Economic self-sufficiency program. See definition at Sec. 5.603. Imputed welfare income. The amount of annual income not actually received by a family, as a result of a specified welfare benefit reduction, that is nonetheless included in the family's annual income for purposes of determining rent. Specified welfare benefit reduction. (1) A reduction of welfare benefits by the welfare agency, in whole or in part, for a family member, as determined by the welfare agency, because of fraud by a family member in connection with the welfare program; or because of welfare agency sanction against a family member for noncompliance with a welfare agency requirement to participate in an economic self-sufficiency program. (2) "Specified welfare benefit reduction'' does not include a reduction or termination of welfare benefits by the welfare agency: (i) at expiration of a lifetime or other time limit on the payment of welfare benefits; (ii) because a family member is not able to obtain employment, even though the family member has complied with welfare agency economic self-sufficiency or work activities requirements; or (iii) because a family member has not complied with other welfare agency requirements. (c) Imputed welfare income. (1) A family's annual income includes the amount of imputed welfare income (because of a specified welfare benefits reduction, as specified in notice to the PHA by the welfare agency), plus the total amount of other annual income as determined in accordance with Sec. 5.609. (2) At the request of the PHA, the welfare agency will inform the PHA in writing of the amount and term of any specified welfare benefit reduction for a family member, and the reason for such reduction, and will also inform the PHA of any subsequent changes in the term or amount of such specified welfare benefit reduction. The PHA will use this information to determine the amount of imputed welfare income for a family. (3) A family's annual income includes imputed welfare income in family annual income, as determined at the PHA's interim or regular 12.A.b Packet Pg. 1567 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-58 reexamination of family income and composition, during the term of the welfare benefits reduction (as specified in information provided to the PHA by the welfare agency). (4) The amount of the imputed welfare income is offset by the amount of additional income a family receives that commences after the time the sanction was imposed. When such additional income from other sources is at least equal to the imputed (5) The PHA may not include imputed welfare income in annual income if the family was not an assisted resident at the time of sanction. (d) Review of PHA decision. (1) Public housing. If a public housing tenant claims that the PHA has not correctly calculated the amount of imputed welfare income in accordance with HUD requirements, and if the PHA denies the family's request to modify such amount, the PHA shall give the tenant written notice of such denial, with a brief explanation of the basis for the PHA determination of the amount of imputed welfare income. The PHA notice shall also state that if the tenant does not agree with the PHA determination, the tenant may request a grievance hearing in accordance with part 966, subpart B of this title to review the PHA determination. The tenant is not required to pay an escrow deposit pursuant to Sec. 966.55(e) for the portion of tenant rent attributable to the imputed welfare income in order to obtain a grievance hearing on the PHA determination. (2) Section 8 participant. A participant in the Section 8 tenant-based assistance program may request an informal hearing, in accordance with Sec. 982.555 of this title, to review the PHA determination of the amount of imputed welfare income that must be included in the family's annual income in accordance with this section. If the family claims that such amount is not correctly calculated in accordance with HUD requirements, and if the PHA denies the family's request to modify such amount, the PHA shall give the family written notice of such denial, with a brief explanation of the 12.A.b Packet Pg. 1568 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-59 basis for the PHA determination of the amount of imputed welfare income. Such notice shall also state that if the family does not agree with the PHA determination, the family may request an informal hearing on the determination under the PHA hearing procedure. (e) PHA relation with welfare agency. (1) The PHA must ask welfare agencies to inform the PHA of any specified welfare benefits reduction for a family member, the reason for such reduction, the term of any such reduction, and any subsequent welfare agency determination affecting the amount or term of a specified welfare benefits reduction. If the welfare agency determines a specified welfare benefits reduction for a family member, and gives the PHA written notice of such reduction, the family's annual incomes shall include the imputed welfare income because of the specified welfare benefits reduction. (2) The PHA is responsible for determining the amount of imputed welfare income that is included in the family's annual income as a result of a specified welfare benefits reduction as determined by the welfare agency, and specified in the notice by the welfare agency to the PHA. However, the PHA is not responsible for determining whether a reduction of welfare benefits by the welfare agency was correctly determined by the welfare agency in accordance with welfare program requirements and procedures, nor for providing the opportunity for review or hearing on such welfare agency determinations. (3) Such welfare agency determinations are the responsibility of the welfare agency, and the family may seek appeal of such determinations through the welfare agency's normal due process procedures. The PHA shall be entitled to rely on the welfare agency notice to the PHA of the welfare agency's determination of a specified welfare benefits reduction. EXHIBIT 6-6: SAVINGS NATIONAL RATE Current Savings National Rate in effect at the time the PHA established its passbook rate of .5 On May 29, 2009, the FDIC Board of Directors approved a final rule making certain revisions to the interest rate restrictions applicable to less than well-capitalized institutions under Part 337.6 of the FDIC Rules and Regulations. The final rule redefined the “national rate” as a simple average of rates paid by U.S. depository institutions as calculated by the FDIC. The national rates and rate caps for various deposit maturities and sizes are provided below. For more information see Financial Institution Letter FIL-25-2009 Rates updated September 24, 2012 Non-Jumbo Deposits (< $100,000) Deposit Products National Rate 1 Rate Cap 2 Savings 0.08 0.83 12.A.b Packet Pg. 1569 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-60 Interest Checking 0.05 0.80 Money Market 0.12 0.87 1 month CD 0.07 0.82 3 month CD 0.11 0.86 6 month CD 0.17 0.92 12 month CD 0.26 1.01 24 month CD 0.43 1.18 36 month CD 0.58 1.33 48 month CD 0.72 1.47 60 month CD 0.94 1.69 12.A.b Packet Pg. 1570 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 6-61 Jumbo Deposits (≥ $100,000) Deposit Products National Rate 1 Rate Cap 2 Savings 0.08 0.83 Interest Checking 0.05 0.80 Money Market 0.18 0.93 1 month CD 0.08 0.83 3 month CD 0.11 0.86 6 month CD 0.18 0.93 12 month CD 0.27 1.02 24 month CD 0.44 1.19 36 month CD 0.59 1.34 48 month CD 0.73 1.48 60 month CD 0.95 1.70 The FDIC began posting the National Rate and Rate Cap on May 18, 2009. Data is not available prior to May 18, 2009. This historical data can be accessed at Previous Rates 1National rates are calculated based on a simple average of rates paid (uses annual percentage yield) by all insured depository institutions and branches for which data are available. Data used to calculate the national rates are gathered by RateWatch. Savings and interest checking account rates are based on the $2,500 product tier while money market and certificate of deposit are based on the $10,000 and $100,000 product tiers for non -jumbo and jumbo accounts, respectively. Account types and maturities published in these tables are those most commonly offered by the banks and branches for which we have data —no fewer than 49,000 locations and as many as 81,000 locations reported. The deposit rates of credit unions are not included in the calculation. 2The rate cap is determined by adding 75 basis points to the national rate. To determine conformance with the regulation, compare rates offered by the institution, based on size and maturity of the deposit, to the rate caps. For accounts less than $100,00 0 use the applicable rate cap under the non-jumbo column, and for accounts $100,000 and over, use the rate caps under the jumbo column. Interpolation should be used for deposits with maturities not listed above. 12.A.b Packet Pg. 1571 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-1 Chapter 7 VERIFICATION [24 CFR 982.516, 24 CFR 982.551, 24 CFR 5.230, Notice PIH 2017-12] INTRODUCTION The PHA must verify all information that is used to establish the family’s eligibility and level of assistance and is required to obtain written authorization from the family in order to collect the information. Applicants and program participants must cooperate with the verification process as a condition of receiving assistance. The PHA must not pass on the cost of verification to the family. The PHA will follow the verification guidance provided by HUD in Notice PIH 2017-12 and any subsequent guidance issued by HUD. This chapter summarizes those requirements and provides supplementary PHA policies. Part I describes the general verification process. Part II provides more detailed requirements related to family information. Part III provides information income and assets, and Part IV covers mandatory deductions. Verification policies, rules and procedures will be modified as needed to accommodate persons with disabilities. All information obtained through the verification process will be handled in accordance with the records management policies of the PHA. During the verification process, the PHA will provide appropriate language assistance for LEP applicants and program participants, including interpretation services and translation of any vital documents, in accordance with the PHA LEP Plan. 12.A.b Packet Pg. 1572 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-2 PART I: GENERAL VERIFICATION REQUIREMENTS 7-I.A. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 982.516 AND 982.551, 24 CFR 5.230] The family must supply any information that the PHA or HUD determines is necessary to the administration of the program and must consent to PHA verification of that information [24 CFR 982.551]. Consent Forms It is required that all adult applicants and participants sign form HUD-9886, Authorization for Release of Information. The purpose of form HUD-9886 is to facilitate automated data collection and computer matching from specific sources and provides the family's consent only for the specific purposes listed on the form. HUD and the PHA may collect information from State Wage Information Collection Agencies (SWICAs) and current and former employers of adult family members. Only HUD is authorized to collect information directly from the Internal Revenue Service (IRS) and the Social Security Administration (SSA). Adult family members must sign other consent forms as needed to collect information relevant to the family’s eligibility and level of assistance. Penalties for Failing to Consent [24 CFR 5.232] If any family member who is required to sign a consent form fails to do so, the PHA will deny admission to applicants and terminate assistance of participants. The family may request an informal review (applicants) or informal hearing (participants) in accordance with PHA procedures. 7-I.B. OVERVIEW OF VERIFICATION REQUIREMENTS HUD’s Verification Hierarchy [Notice PIH 2017-12] HUD mandates the use of the EIV system and offers administrative guidance on the use of other methods to verify family information and specifies the circumstances in which each method will be used. In general HUD requires the PHA to use the most reliable form of verification that is available and to document the reasons when the PHA uses a lesser form of verification. In order of priority, the forms of verification that the PHA will use are: • Up-front Income Verification (UIV) using HUD’s Enterprise Income Verification (EIV) system • Up-front Income Verification (UIV) using a non-HUD system • Written Third Party Verification (may be provided by applicant or participant) • Written Third-party Verification Form • Oral Third-party Verification 12.A.b Packet Pg. 1573 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-3 • Self-Certification Each of the verification methods is discussed in subsequent sections below. Requirements for Acceptable Documents PHA Policy Any documents used for verification must be the original (not photocopies) and generally must be dated within 60 days of the PHA request. The documents must not be damaged, altered, or in any way illegible. Print-outs from webpages are considered original documents. The PHA staff member who views the original document must scan the document into the PHA secure records retention system. Any family self-certifications must be made in a format acceptable to the PHA and must be signed by the family member whose information or status is being verified. File Documentation The PHA must document in the file how the figures used in income and rent calculations were determined. All verification attempts, information obtained, and decisions reached during the verification process will be recorded in the family’s file in sufficient detail to demonstrate that the PHA has followed all of the verification policies set forth in this plan. The record should be sufficient to enable a staff member or HUD reviewer to under stand the process followed and conclusions reached. PHA Policy The PHA will document, in the family file, the following: Reported family annual income Value of assets Expenses related to deductions from annual income Other factors influencing adjusted income When the PHA is unable to obtain third- party verification, the PHA will document in the family file the reason that third-party verification was not available [24 CFR 982.516(a)(2); Notice PIH 2017-12]. 12.A.b Packet Pg. 1574 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-4 7-I.C. UP-FRONT INCOME VERIFICATION (UIV) Up-front income verification (UIV) refers to the PHA’s use of the verification tools available from independent sources that maintain computerized information about earnings and benefits. UIV will be used to the extent that these systems are available to the PHA. There may be legitimate differences between the information provided by the family and UIV - generated information. If the family disputes the accuracy of UIV data, no adverse action can be taken until the PHA has independently verified the UIV information and the family has been granted an opportunity to contest any adverse findings through the informal review/hearing process of the PHA. See Chapter 6 for the PHA’s policy on the use of UIV/EIV to project annual income. Upfront Income Verification Using HUD’s Enterprise Income Verification (EIV) System (Mandatory) PHA’s must use HUD’s EIV system in its entirety as a third-party source to verify tenant employment and income information during mandatory reexaminations or recertification of family composition and income in accordance with 24 CFR 5.236 and administrative guidance issued by HUD. The EIV system contains data showing earned income, unemployment benefits, Social Security benefits, and SSI benefits for participant families. The following policies apply to the use of HUD’s EIV system. EIV Income Reports The data shown on income reports is updated quarterly. Data may be between 3 and 6 months old at the time reports are generated. PHA Policy The PHA will obtain income reports for annual reexaminations on a monthly basis. Reports will be generated as part of the regular reexamination process. Income reports will be compared to family-provided information as part of the annual reexamination process. Income reports may be used in the calculation of annual income, as described in Chapter 6-I.C. Income reports may also be used to meet the regulatory requirement for third party verification, as described above. Policies for resolving discrepancies between income reports and family-provided information will be resolved as described in Chapter 6-I.C. and in this chapter. Income reports will be used in interim reexaminations to identify any discrepancies between reported income and income shown in the EIV system, and as necessary to verify earned income, and to verify and calculate, unemployment benefits, Social Security and/or SSI benefits. EIV will also be used to verify that families claiming zero income are not receiving income from any of these sources. 12.A.b Packet Pg. 1575 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-5 Income reports will be retained in participant files with the applicable annual or interim reexamination documents. When the PHA determines through income reports and third- party verification that a family has concealed or under-reported income, corrective action will be taken pursuant to the policies in Chapter 14, Program Integrity. EIV Identity Verification The EIV system verifies tenant identities against SSA records. These records are compared to PIC data for a match on Social Security number, name, and date of birth. PHAs are required to use EIV’s Identity Verification Report on a monthly basis to improve the availability of income information in EIV [Notice PIH 2017-12] When identity verification for a participant fails, a message will be displayed within the EIV system and no income information will be displayed. PHA Policy The PHA will identify participants whose identity verification has failed by reviewing EIV’s Identity Verification Report on a monthly basis. The PHA will attempt to resolve PIC/SSA discrepancies by obtaining appropriate documentation from the participant. When the PHA determines that discrepancies exist due to PHA errors such as spelling errors or incorrect birth dates, the errors will be corrected promptly. Upfront Income Verification Using Non-HUD Systems In addition to mandatory use of the EIV system, HUD encourages PHAs to utilize other upfront verification sources. PHA Policy The PHA will inform all applicants and participants of its use of the following UIV resources during the admission and reexamination process: HUD’s EIV system The Work Number 7-I.D. THIRD-PARTY WRITTEN AND ORAL VERIFICATION HUD’s current verification hierarchy defines two types of written third-party verification. The more preferable form, “written third-party verification,” consists of an original document generated by a third-party source, which may be received directly from a third -party source or provided to the PHA by the family. If written third-party verification is not available, the PHA 12.A.b Packet Pg. 1576 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-6 must attempt to obtain a “written third-party verification form.” This is a standardized form used to collect information from a third party. Written Third-Party Verification [Notice PIH 2017-12] Written third-party verification documents must be original and authentic and may be supplied by the family or received from a third-party source. Examples of acceptable tenant-provided documents include, but are not limited to: pay stubs, payroll summary reports, employer notice or letters of hire and termination, SSA benefit verification letters, bank statements, child support payment stubs, welfare benefit letters and/or printouts, and unemployment monetary benefit notices. The PHA is required to obtain, at minimum, two current and consecutive pay stubs for determining annual income from wages. The PHA may reject documentation provided by the family if the document is not an original, if the document appears to be forged, or if the document is altered, mutilated, or illegible. PHA Policy Third-party documents provided by the family must be dated within 60 days of the P HA request date. If the PHA determines that third-party documents provided by the family are not acceptable, the PHA will explain the reason to the family and request additional documentation. As verification of earned income, the PHA will require the family to provide the two most current consecutive pay stubs. At the PHA’s discretion, if additional paystubs are needed due to the family’s circumstances (e.g., sporadic income, fluctuating schedule, etc.), the PHA may request additional paystubs or a payroll record. Written Third-Party Verification Form When upfront verification is not available and the family is unable to provide written third- party documents, the PHA must request a written third -party verification form. HUD’s position is that this traditional third-party verification method presents administrative burdens and risks which may be reduced through the use of family-provided third-party documents. PHAs may mail, fax, or e-mail third-party written verification form requests to third-party sources. PHA Policy The PHA will send third-party verification forms directly to the third party. Third-party verification forms will be sent when third-party verification documents are unavailable or are rejected by the PHA. 12.A.b Packet Pg. 1577 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-7 Oral Third-Party Verification [Notice PIH 2017-12] For third-party oral verification, PHAs contact sources, identified by UIV techniques or by the family, by telephone or in person. Oral third-party verification is mandatory if neither form of written third-party verification is available. Third-party oral verification may be used when requests for written third-party verification forms have not been returned within a reasonable time--e.g., 10 business days. PHAs should document in the file the date and time of the telephone call or visit, the name of the person contacted, the telephone number, as well as the information confirmed. PHA Policy In collecting third-party oral verification, PHA staff will record in the family’s file the name and title of the person contacted, the date and time of the conversation (or attempt), the telephone number used, and the facts provided. When any source responds verbally to the initial written request for verification the PHA will accept the verbal response as oral verification but will also request that the source complete and return any verification forms that were provided. When Third-Party Verification is Not Required [Notice PIH 2017-12] Third-party verification may not be available in all situations. HUD has a cknowledged that it may not be cost-effective or reasonable to obtain third-party verification of income, assets, or expenses when these items would have a minimal impact on the family’s total tenant payment. PHA Policy If the family cannot provide original documents, the PHA will pay the service charge required to obtain third-party verification, unless it is not cost effective in which case a self-certification will be acceptable as the only means of verification. The cost of verification will not be passed on to the family. The cost of postage and envelopes to obtain third-party verification of income, assets, and expenses is not an unreasonable cost [VG, p. 18]. Primary Documents Third-party verification is not required when legal documents are the primary source, such as a birth certificate or other legal documentation of birth. Imputed Assets HUD permits PHAs to accept a self-certification from a family as verification of assets disposed of for less than fair market value [HCV GB, p. 5-28]. 12.A.b Packet Pg. 1578 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-8 PHA Policy The PHA will accept a self-certification from a family as verification of assets disposed of for less than fair market value. Value of Assets and Asset Income [24 CFR 982.5169(a)] For families with net assets totaling $5,000 or less, the PHA may accept the family’s declaration of asset value and anticipated asset income. However, the PHA is required to obtain third-part verification of all assets regardless of the amount during the intake process and at least every three years thereafter. PHA Policy For families with net assets totaling $5,000 or less, the PHA will accept the family’s self- certification of the value of family assets and anticipated asset income when applicable. The family’s declaration must show each asset and the amount of income expected from that asset. All family members 18 years of age and older must sign the family’s declaration. The PHA will use third-party documentation for assets as part of the intake process, whenever a family member is added to verify the individual’s assets, and every three years thereafter. 7-I.E. SELF-CERTIFICATION When HUD required third-party verification, self-certification, or “tenant declaration,” is used as a last resort when the PHA is unable to obtain third -party verification. Self-certification, however, is an acceptable form of verification when: • A source of income is fully excluded • Net family assets total $5,000 or less and the PHA has adopted a policy to accept self- certification at annual recertification, when applicable • The PHA has adopted a policy to implement streamlined annual recertifications for fixed sources of income (See Chapter 11) When the PHA was required to obtain third-party verification but instead relies on a tenant declaration for verification of income, assets, or expenses, the family’s file must be documented to explain why third-party verification was not available. PHA Policy 12.A.b Packet Pg. 1579 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-9 When information cannot be verified by a third party or by review of documents, family members will be required to submit self-certifications attesting to the accuracy of the information they have provided to the PHA. The PHA may require a family to certify that a family member does not receive a particular type of income or benefit. The self-certification must be made in a format acceptable to the PHA and must be signed by the family member whose information or status is being verified. 12.A.b Packet Pg. 1580 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-10 PART II: VERIFYING FAMILY INFORMATION 7-II.A. VERIFICATION OF LEGAL IDENTITY PHA Policy The PHA will require families to furnish verification of legal identity for each household member. Verification of Legal Identity for Adults Verification of Legal Identity for Children Certificate of birth, naturalization papers Church issued baptismal certificate Current, valid driver's license or Department of Motor Vehicles identification card U.S. military discharge (DD 214) Current U.S. passport Current government employer identification card with picture Certificate of birth Adoption papers Custody agreement Health and Human Services ID Certified school records If a document submitted by a family is illegible for any reason or otherwise questionable, more than one of these documents may be required. If none of these documents can be provided and at the PHA’s discretion, a third party who knows the person may attest to the person’s identity. The certification must be provided in a format acceptable to the PHA and must be signed by the family member whose information or status is being verified . Legal identity will be verified for all applicants at the time of eligibility determination and in cases where the PHA has reason to doubt the identity of a person representing themselves to be a participant. 7-II.B. SOCIAL SECURITY NUMBERS [24 CFR 5.216, Notice PIH 2012-10] The family must provide documentation of a valid social security number (SSN) for each member of the household, with the exception of noncitizen individuals who do not claim eligible immigration status. Exemptions also include existing program participants who were at least 62 years of age as of January 31, 2010 and had not previously disclosed an SSN. Note that an individual who previously declared to have eligible immigration status may not change their declaration for the purpose of avoiding compliance with the SSN disclosure and documentation requirements or penalties associated with noncompliance with these 12.A.b Packet Pg. 1581 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-11 requirements. Nor may the head of household opt to remove a household member from the family composition for this purpose. The PHA must accept the following documentation as acceptable evidence of the social security number: • An original SSN card issued by the Social Security Administration (SSA) • An original SSA-issued document, which contains the name and SSN of the individual • An original document issued by a federal, state, or local government agency, which contains the name and SSN of the individual The PHA may only reject documentation of an SSN provided by an applicant or participant if the document is not an original document or if the original document has been altered, mutilated, is illegible, or appears to be forged. PHA Policy The PHA will explain to the applicant or participant the reasons the document is not acceptable and request that the individual obtain and submit acceptable docume ntation of the SSN to the PHA within 90 days. In the case of Moderate Rehabilitation Single Room Occupancy (SRO) individuals, the required documentation must be provided within 90 calendar days from the date of admission into the program. The PHA must grant one additional 90-day extension if it determines that the applicant’s failure to comply was due to circumstance that w ere beyond the applicant’s control and could not have been reasonable foreseen. PHA Policy The PHA will grant one additional 90-day extension if needed for reasons beyond the participant’s control such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency. If the individual fails to comply with SSN disclosure and documentation requirements upon expiration of the provided time period, the PHA will terminate the individual’s assistance. If an applicant family includes a child under six years of age who joined the household within the six months prior to the date of voucher issuance, an otherwise eligible family may be admitted to the program and the family must provide documentation of the child’s SSN within 90 days of the effective date of the initial HAP contract. A 90-day extension will be granted if the PHA determines that the participant’s failure to comply was due to unforeseen circumstances and was outside of the participant’s control. PHA Policy The PHA will grant one additional 90-day extension if needed for reasons beyond the applicant’s control, such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency. When a participant requests to add a new household member who is at least six years of age, or who is under the age of six and has an SSN, the participant must provide the complete and 12.A.b Packet Pg. 1582 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-12 accurate SSN assigned to each new member at the time of reexamination or recertification, in addition to the documentation required to verify it. The PHA may not add the new household member until such documentation is provided. When a participant requested to add a new household member who is under the age of six and has not been assigned an SSN, the participant must provide the SSN assigned to each new child and the required documentation within 90 calendar days of the child being added to the household. A 90-day extension will be granted if the PHA determines that the participant’s failure to comply was due to unforeseen circumstances and was outside of the participant’s control. During the period the PHA is awaiting documentation of the SSN, the child will be counted as part of the assisted household. PHA Policy The PHA will grant one additional 90-day extension if needed for reasons beyond the participant’s control such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency. Social security number must be verified only once during continuously assisted occupancy. PHA Policy The PHA will verify each disclosed SSN by: Obtaining documentation from applicants and participants that is acceptable as evidence of social security numbers Scanning the original documentation submitted, returning it to the individual, and retaining it in the file folder. Once the individual’s verification status is classified as “verifi ed” the PHA may, at its discretion, remove and destroy copies of documentation accepted as evidence of social security numbers. The retention of the EIV Summary Report or Income Report is adequate documentation of an individual’s SSN. PHA Policy Once an individual’s status is classified as “verified” in HUD’s EIV system, the PHA will not remove and destroy copies of documentation accepted as evidence of social security numbers. For every family member age six or older, the family must provide documentation of a valid social security number (SSN), or a self-certification stating that no SSN has been issued. The self-certification must be executed personally by any family member 18 or older, or by a parent or guardian for a minor. If the family reports an SSN but cannot provide acceptable documentation of the number, the PHA will require a self-certification stating that documentation of the SSN cannot be provided at this time. The PHA will require documentation of the SSN within 60 calendar days from the date of the family member’s self-certification mentioned above. If the family is an applicant, assistance cannot be provided until proper documentation of the SSN is provided. 12.A.b Packet Pg. 1583 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-13 PHA Policy The PHA will instruct the family to obtain a duplicate card from the local Social Security Administration (SSA) office. For individuals who are at least 62 years of age and are unable to submi t the required documentation of their SSN within the initial 60-day period, the PHA will grant an additional 60 calendar days to provide documentation. Social security numbers must be verified only once during continuously assisted occupancy. If any family member obtains an SSN after admission to the program, the new SSN must be disclosed at the next regularly scheduled reexamination. In addition, if a child reaches the age of 6 and has no SSN, the parent or guardian must execute a self-certification stating that the child has no SSN at the next regularly scheduled reexamination . The social security numbers of household members, such as live-in aids, must be verified for the purpose of conducting criminal background checks. If a family is unable to provide documentation of a valid SSN for any of the household members due to domestic violence, dating violence, sexual assault, or stalking, the PHA will grant the family an extension of at least 90 days in order to permit the family to obtain a replacement social security card. 7-II.C. DOCUMENTATION OF AGE A birth certificate or other official record of birth is the preferred form of age verification for all family members. For elderly family members an original document that provides evidence of the receipt of social security retirement benefits is acceptable. PHA Policy If an official record of birth or evidence of social security retirement benefits cannot be provided, the PHA will require the family to submit other documents that support the reported age of the family member (e.g., school records, driver's license if birth year is recorded) and to provide a self-certification. Age must be verified only once during continuously assisted occupancy. If a family is unable to provide documentation of age for any of the household members due to domestic violence, dating violence, sexual assault, or stalking, the PHA will grant the family an extension of at least 90 days in order to permit the family to obtain replacement documentation. 12.A.b Packet Pg. 1584 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-14 7-II.D. FAMILY RELATIONSHIPS Applicants and program participants are required to identify the relationship of each household member to the head of household. Definitions of the primary household relationships are provided in the Eligibility chapter. PHA Policy Family relationships are verified only to the extent necessary to determine a family’s eligibility and level of assistance. Certification by the head of household normally is sufficient verification of family relationships. Marriage PHA Policy Certification by the head of household is normally sufficient verification. If the PHA has reasonable doubts about a marital relationship, the PHA will require the family to document the marriage. A marriage certificate generally is required to verify that a couple is married. Separation or Divorce PHA Policy Certification by the head of household is normally sufficient verification. If the PHA has reasonable doubts about a separation or divorce, the PHA will require the family to provide documentation of the divorce, or separation. A certified copy of a divorce decree, signed by a court officer, is required to document that a couple is divorced. A copy of a court-ordered maintenance or other court record is required to document a separation. If no court document is available, documentation from a community-based agency will be accepted. Absence of Adult Member PHA Policy If an adult member who was formerly a member of the household is reported to be permanently absent, the family must provide, at a minimum, two forms of evidence to support that the person is no longer a member of the family (e.g., documentation of another address at which the person resides such as a lease, utility bill, or driver’s 12.A.b Packet Pg. 1585 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-15 license), if the PHA so requests. In addition, the PHA will require a signed/notarized statement from the family confirming that the person is not residing in the unit including the understanding of the HUD rules regarding unauthorized occupancy. Foster Children and Foster Adults PHA Policy Third-party verification from the state or local government agency responsible for the placement of the individual with the family is required. 7-II.E. VERIFICATION OF STUDENT STATUS General Requirements PHA Policy The PHA requires families to provide information about the student status of all full- time students who are 18 years of age or older. This information will be verified only if: The family reports full-time student status for an adult other than the head, spouse, or co-head if family member is employed. The family reports childcare expenses to enable a family member to further their education. The family includes an adult student enrolled in an institution of higher education. If the full-time adult student has employment income. Verification of full-time student status includes: • Written verification from the registrar’s office indicating enrollment for sufficient number of credits to be considered a full-time student by the educational institution. Full-time student status will be verified at each certification. Failure to complete the required college units will result in the loss of full-time student status. • Head of Household will be required to complete a Notice of Student Status form at each certification. • Certified college transcripts to verify completion of college units. • If the student has part-time enrollment status in more than one educational institution, the units may be combined to achieve full -time student status. 12.A.b Packet Pg. 1586 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-16 Restrictions on Assistance to Students Enrolled in Institutions of Higher Education This section applies only to students who are seeking assistance on their own, separately from their parents. It does not apply to students residing with parents who are seeking or receiving HCV assistance. PHA Policy In accordance with the verification hierarchy described in Section 7-1.B, the PHA will determine whether the student is exempt from the restrictions in 24 CFR 5.612 by verifying any one of the following exemption criteria: The student is enrolled at an educational institution that does not meet the definition of institution of higher education in the Higher Education Act of 1965 (see Section Exhibit 3-2). The student is at least 24 years old. The student is a veteran, as defined in Section 3-II.E. The student is married. The student has at least one dependent child, as defined in Section 3-II.E. The student is a person with disabilities, as defined in Section 3 -II.E, and was receiving assistance prior to November 30, 2005. If the PHA cannot verify at least one of these exemption criteria, the PHA will conclude that the student is subject to the restrictions on assistance at 24 CFR 5.612. In addition to verifying the student’s income eligibility, the PHA will then proceed to verify either the student’s parents’ income eligibility (see Section 7-III.J) or the student’s independence from their parents (see below). Independent Student PHA Policy The PHA will verify a student’s independence from their parents to determine that the student’s parents’ income is not relevant for determining the student’s eligibility by doing all of the following: Reviewing and verifying previous address information to determine whether the student has established a household separate from their parents for at least one year or reviewing and verifying documentation relevant to determining whether the student meets the U.S. Department of Education’s definition of independent student (see Section 3-II.E) Reviewing the student’s prior year income tax returns to verify the student is independent or verifying the student meets the U.S. Department of Education’s definition of independent youth (see section 3-II.E) 12.A.b Packet Pg. 1587 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-17 Requesting and obtaining written certification directly from the student’s parents identifying the amount of support they will be providing to the student, even if the amount of support is $0 , except in cases in which the PHA determines that the student is a vulnerable youth (see section 3-II.E) 7-II.F. DOCUMENTATION OF DISABILITY The PHA must verify the existence of a disability in order to allow certain income disallowances and deductions from income. The PHA is not permitted to inquire about the nature or extent of a person’s disability [24 CFR 100.202(c)]. The PHA may not inquire about a person’s diagnosis or details of treatment for a disability or medical condition. If the PHA receives a verification document that provides such information, the PHA will not place this information in the tenant file. Under no circumstances will the PHA request a participant’s medical record(s). For more information on health care privacy laws, see the Department of Health and Human Services’ website at http://www.hhs.gov/ocr/privacy. The above cited regulation does not prohibit the following inquiries, provided these inquiries are made of all applicants, whether or not they are persons with disabilities [VG, p. 24]: • Inquiry into an applicant’s ability to meet the requirements of ownership or tenancy • Inquiry to determine whether an applicant is qualified for a dwelling a vailable only to persons with disabilities or to persons with a particular type of disability • Inquiry to determine whether an applicant for a dwelling is qualified for a priority available to persons with disabilities or to persons with a particular type of disability • Inquiring whether an applicant for a dwelling is a current illegal abuser or addict of a controlled substance • Inquiring whether an applicant has been convicted of the illegal manufacture or distribution of a controlled substance Family Members Receiving SSA Disability Benefits Verification of the receipt of disability benefits from the Social Security Administration (SSA) is sufficient verification of disability for the purpose of qualifying for waiting list preferences (if applicable) or certain income disallowances and deductions [VG, p. 23]. PHA Policy For family members claiming disability who receive disability benefits from the SSA, the PHA will attempt to obtain information about disability benefits through the HUD Enterprise Income Verification (EIV) system. If documentation from HUD’s EIV System is not available, the PHA will request a current (dated within the last 60 days) SSA benefit verification letter from each family member claiming disability status. If the family is unable to provide the document(s), the PHA will ask the family to request a benefit 12.A.b Packet Pg. 1588 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-18 verification letter by either calling SSA at 1-800-772-1213, or by requesting it from www.ssa.gov. Once the applicant or participant receives the benefit verification letter they will be required to provide it to the PHA. Family Members Not Receiving SSA Disability Benefits Receipt of veteran’s disability benefits, worker’s compensation, or other non -SSA benefits based on the individual’s claimed disability are not sufficient verification that the individual meets HUD’s definition of disability in 24 CFR 5.403. PHA Policy For family members claiming disability who do not receive disability benefits from the SSA, a knowledgeable professional must provide third-party verification that the family member meets the HUD definition of disability. See the Eligibility chapter for the HUD definition of disability. The knowledgeable professional will verify whether the family member does or does not meet the HUD definition. 7-II.G. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5.508] Overview Housing assistance is not available to persons who are not citizens, nationals, or eligible immigrants. Prorated assistance is provided for "mixed families" containing both eligible and ineligible persons. A detailed discussion of eligibility requirements is in the Eligibility chapter. This verifications chapter discusses HUD and PHA verification requirements related to citizenship status. The family must provide a certification that identifies each family member as a U.S. citizen, a U.S. national, an eligible noncitizen or an ineligible noncitizen and submit the documents discussed below for each family member. Once eligibility to receive assistance has been verified for an individual it need not be collected or verified again during continuously assisted occupancy. [24 CFR 5.508(g)(5)] If a family is unable to provide documentation of immigration status for any of the household members due to domestic violence, dating violence, sexual assault, or stalking, the PHA will grant the family an extension of at least 90 days in order to permit the family to obtain a replacement documentation. During the eligible immigration status verification process, the PHA will provide appropriate language assistance for LEP applicants and program participants, including interpretation services and translation of any vital documents, in accordance with the PHA LEP Plan. 12.A.b Packet Pg. 1589 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-19 U.S. Citizens and Nationals HUD requires a declaration for each family member who claims to be a U.S. citizen or national. The declaration must be signed personally by any family member 18 or older and by a guardian for minors. The PHA may request verification of the declaration by requiring presentation of a birth certificate, United States passport or other appropriate documentation. PHA Policy The PHA requires all adult applicant family members to submit verification of their citizenship. All families will be notified of the requirement to submit evidence of their citizenship status when they apply. If evidence cannot reasonably be provided by the family, the PHA may accept a signed declaration from all family members as verification of citizenship, unless the PHA receives credible information indicating that an individual’s declaration may not be accurate. The PHA may utilize third party verification of citizenship if available. Eligible Immigrants Documents Required All family members claiming eligible immigration status must declare their status in the same manner as U.S. citizens and nationals. The documentation required for eligible noncitizens varies depending upon factors such as the date the person entered the U.S., the conditions under which eligible immigration status has been granted, age, and the date on which the family began receiving HUD-funded assistance. Exhibit 7-1 at the end of this chapter summarizes documents family members must provide. PHA Verification [HCV GB, pp. 5-3 and 5-7] For family members age 62 or older who claim to be eligible immigrants, proof of age is required in the manner described in 7-II.C. of this plan. No further verification of eligible immigration status is required. For family members under the age of 62 who claim to be eligible immigrants, the PHA must verify immigration status with the United States Citizenship and Immigration Services (USCIS). The PHA will follow all USCIS protocols for verification of eligible immigration status. 7-II.H. VERIFICATION OF PREFERENCE STATUS The PHA must verify any preferences claimed by an applicant that determined placement on the waiting list. 12.A.b Packet Pg. 1590 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-20 PHA Policy The PHA will offer a preference to any family that has been terminated from its Section 8 HCV program due to insufficient program funding. The PHA will verify this preference using the PHA’s termination records. The PHA also offers a preference for victims of domestic violence, dating violence, sexual assault, or stalking, as described in Section 4-III.C. To verify that applicants qualify for the preference, the PHA will follow documentation requirements outlined in Section 16-IX.D. Displacement Preference: Families who claim they are being or have been displaced due to a disaster, government action, an eviction pursuant to the Ellis Act, Civil Code section 798.56(g) of the Mobile Home Residency Law, owner/relative occupancy from a rent controlled unit under Section 1806(a)(8) of the Santa Monica Rent Control Amendment, or owner-occupancy decontrol of a unit in a duplex or triplex must provide written verification by the displacing unit or agency of government, or by a service agency such as the Red Cross or FEMA. The PHA must also verify that the family has not yet relocated to standard replacement housing. The verification should be provided by the displacing entity. Residency Preference: In order to verify that an applicant is a resident, the PHA will require the following documents: rent receipts, lease, utility bills, employer or agency records, school records, driver’s licenses, or voters registration records to verify residency. For families who have been hired to work in Santa Monica, a statement from the employer will be required. The employed family member must work at least 25 hours weekly in Santa Monica. In order to qualify for a residential preference, homeless applicants must have become homeless in Santa Monica, must meet the definition of DedicatedPLUS and must be on the Santa Monica Service Registry. Continuum of Care or Supportive Housing Graduates: The PHA may prioritize a limited number of current Continuum of Care program participants (“CoC graduates”) or tenants residing in City-funded supportive housing properties in Santa Monica (“supportive housing graduates”) who are stable and no longer require service participation to prevent them from recycling into homelessness. Eligibility for such preference must be documented by the current supportive services provider for the CoC program participant in the form indicated in Chapter 19. 12.A.b Packet Pg. 1591 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-21 Project-Based Targeting: The PHA may offer additional preferences for the PBV program or for particular PBV projects or units. Applicants for these programs must meet additional, specific eligibility requirements. 12.A.b Packet Pg. 1592 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-22 PART III: VERIFYING INCOME AND ASSETS Chapter 6, Part I of this plan describes in detail the types of income that are included and excluded and how assets and income from assets are handled. Any assets and income reported by the family must be verified. This part provides PHA policies that supplement the general verification procedures specified in Part I of this chapter. 7-III.A. EARNED INCOME PHA Policy As verification of earned income, the PHA will require the 3 most current consecutive pay stubs dated within 60-day period prior to the PHA’s request or the recertification interview, whichever is later. In the event that 3 consecutive pay stubs dated within the 60-day period are unavailable as a result of the employer’s payroll schedule (i.e. the employer pays on a monthly basis), PHA will utilize all available pay stubs dated within the 60-day period plus any additional pay stubs up to 90 days old to provide a total of 3 consecutive pay stubs. In any case, fewer than 3 pay stubs will only be accepted in the event that the employee has been employed for less than 90 days. Wages PHA Policy For wages other than tips, the family must provide originals of the two most current, consecutive pay stubs. Tips PHA Policy Unless tip income is included in a family member’s W-2 by the employer, persons who work in industries where tips are standard will be required to sign a certified estimate of tips received for the prior year and tips anticipated to be received in the coming year. 7-III.B. BUSINESS AND SELF-EMPLOYMENT INCOME PHA Policy Business owners and self-employed persons will be required to provide: An audited financial statement for the previous fiscal year if an audit was conducted. If an audit was not conducted, a statement of income and expenses must be submitted and the business owner or self-employed person must certify to its accuracy. All schedules completed for filing federal and local taxes in the preceding year. 12.A.b Packet Pg. 1593 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-23 If accelerated depreciation was used on the tax return or financial statement, an accountant's calculation of depreciation expense, computed using straight-line depreciation rules. The PHA will provide a format for any person who is unable to provide such a statement to record income and expenses for the coming year. The business owner/self -employed person will be required to submit the information requested and to certify to its accuracy at all future reexaminations. At any reexamination the PHA may request documents that support submitted financial statements such as manifests, appointment books, cash books, or bank statements. If a family member has been self-employed less than three (3) months, the PHA will accept the family member's certified estimate of income and schedule an interim reexamination in three (3) months. If the family member has been self-employed for three (3) to twelve (12) months the PHA will require the family to provide documentation of income and expenses for this period and use that information to project income. 7-III.C. PERIODIC PAYMENTS AND PAYMENTS IN LIEU OF EARNINGS For policies governing streamlined income determinations for fixed sources of income, please see Chapter 11. Social Security/SSI Benefits To ensure consistency in the determination of annual Social Security and SSI income, PHAs are required to use EIV-reported Social Security and SSI benefit amounts unless the tenant disputes the EIV-reported amount [Notice PIH 2018-24]. PHA Policy To verify the SS/SSI benefits of applicants, the PHA will request a current (dated within the last 60 days) SSA benefit verification letter from each family member that receives social security benefits. If the family is unable to provide the document(s), the PHA will help the applicant request a benefit verification letter from SSA’s website at www.ssa.gov or ask the family to request one by calling SSA at 1-800-722-1213. Once the applicant has received the benefit verification letter, they will be required to provide it to the PHA. To verify the SS/SSI benefits of participants, the PHA will obtain information about social security/SSI benefits through the HUD EIV System, and confirm with the participant(s) that the current listed benefit amount is correct. If the participant disputes the EIV- reported benefit amount, or if benefit information is not available in HUD systems, the PHA will request a current SSA benefit verification letter from each family member that receives social security benefits. If the family is unable to provide the document(s) the PHA will help the participant request a benefit verification letter from SSA’s website at 12.A.b Packet Pg. 1594 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-24 www.ssa,.gov or ask the family to request one by calling SSA at 1-800-772-1213. Once the participant has received the benefit verification letter, they will be required to provide it to the PHA. 7-III.D. ALIMONY OR CHILD SUPPORT PHA Policy The methods the PHA will use to verify alimony and child support payments differ depending on whether the family declares that it receives regular payments. If the family declares that it receives regular payments, verification will be obtained in the following order of priority. Copies of the receipts and/or payment stubs for the 60 days prior to PHA request Third-party verification form from the state or local child support enforcement agency Third-party verification form from the person paying the support Family's self-certification of amount received. If the family declares that it receives irregular or no payments, in addition to the verification process listed above, the family must provide evidence that it has taken all reasonable efforts to collect amounts due. This may include: A statement from any agency responsible for enforcing payment that shows the family has requested enforcement and is cooperating with all enforcement efforts If the family has made independent efforts at collection, a written statement from the attorney or other collection entity that has assisted the family in these efforts Note: Families are not required to undertake independent enforcement action. 7-III.E. ASSETS AND INCOME FROM ASSETS Assets Disposed of for Less than Fair Market Value The family must certify whether any assets have been disposed of for less than fair market value in the preceding two years. The PHA needs to verify only those certifications that warrant documentation [HCV GB, p. 5-28]. PHA Policy The PHA will verify the value of assets disposed of only if: The PHA does not already have a reasonable estimation of its value from previously collected information, or 12.A.b Packet Pg. 1595 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-25 The amount reported by the family in the certification appears obviously in error. Example 1: An elderly participant reported a $10,000 certificate of deposit at the last annual reexamination and the PHA verified this amount. Now the person reports that she has given this $10,000 to her son. The PHA has a reasonable estimate of the value of the asset; therefore, re-verification of the value of the asset is not necessary. Example 2: A family member has disposed of its 1/4 share of real property located in a desirable area and has valued her share at approximately $5,000. Based upon market conditions, this declaration does not seem realistic. Therefore, the PHA will verify the value of this asset. 7-III.F. NET INCOME FROM RENTAL PROPERTY PHA Policy The family must provide: A current executed lease for the property that shows the rental amount or certification from the current tenant A self-certification from the family members engaged in the rental of property providing an estimate of expenses for the coming year and the most recent IRS Form 1040 with Schedule E (Rental Income). If schedule E was not prepared, the PHA will require the family members involved in the rental of property to provide a self-certification of income and expenses for the previous year and may request documentation to support the statement including: tax statements, insurance invoices, bills for reasonable maintenance and utilities, and bank statements or amortization schedules showing monthly interest expense. 7-III.G. RETIREMENT ACCOUNTS PHA Policy The PHA will accept written third-party documents supplied by the family as evidence of the status of retirement accounts. The type of original document that will be accepted depends upon the family member’s retirement status. Before retirement, the PHA will accept an original document from the entity holding the account with a date that shows it is the most recently scheduled statement for the account but in no case earlier than 6 months from the effective date of the examination. 12.A.b Packet Pg. 1596 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-26 Upon retirement, the PHA will accept an original document from the entity holding the account that reflects any distributions of the account balance, any lump sums taken and any regular payments. After retirement, the PHA will accept an original document from the entity holding the account dated no earlier than 12 months before that reflects any distributions of the account balance, any lump sums taken and any regular payments. 7-III.H. INCOME FROM EXCLUDED SOURCES A detailed discussion of excluded income is provided in Chapter 6, Part I. HUD guidance on verification of excluded income draws a distinction between income which is fully excluded and income which is only partially excluded. For fully excluded income, the PHA is not required to follow the verification hierarchy, document why third-party verification is not available, or report the income on the 50058. Fully excluded income is defined as income that is entirely excluded from the annual income determination (for example, food stamps, earned income of a minor, or foster care funds) [Notice PIH 2013-04]. PHAs may accept a family’s signed application or reexamination form as self-certification of fully excluded income. They do not have to require additional documentation. However, if there is any doubt that a source of income qualifies for full exclusion, PHAs have the option of requiring additional verification. For partially excluded income, the PHA is required to follow the verification hierarchy and all applicable regulations, and to report the income on the 50058. Partially excluded income is defined as income where only a certain portion of what is reported by the family qualifies to be excluded and the remainder is included in annual income (for example, the income of an adult full-time student, or income excluded under the earned income disallowance). PHA Policy The PHA will accept the family’s self-certification as verification of fully excluded income. The PHA may request additional documentation if necessary to document the income source. The PHA will verify the source and amount of partially excluded income as described in Part 1 of this chapter. 12.A.b Packet Pg. 1597 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-27 7-III.I. ZERO ANNUAL INCOME STATUS PHA Policy Families who report zero income are required to complete a written certification every 3 months as long as the family continues to report that they have no income. Families that report zero income will be required to complete a zero income checklist and worksheet and provide information regarding their means of basic sustenance, such as food, utilities, transportation, etc. This information may be used to determine family income. The PHA will check EIV sources and require the family to provide written third-party verifications to verify that income from public benefits (e.g. unemployment benefits, TANF, SS, SSI and earnings) are not being received by families claiming to have zero annual income. 7-III.J. STUDENT FINANCIAL ASSISTANCE [Notice PIH 2015-21] Any financial assistance, in excess of amounts received for tuition, fees, and other required charges that a person attending an institution of higher education receives under the Higher Education Act of 1965, from private sources, or from an institution of higher education must be considered income unless the student is over the age of 23 with dependent children or is residing with parents who are seeking or receiving HCV assistance [24 CFR 5.609(b)(9) and FR 4/10/06]. For students over the age of 23 with dependent chi ldren or students residing with parents who are seeking or receiving HCV assistance, the full amount of student financial assistance is excluded from annual income [24 CFR 5.609(c)(6)]. The full amount of student financial assistance is also excluded for students attending schools that do not qualify as institutions of higher education (as defined in Exhibit 3-2). Excluded amounts are verified only if, without verification, the PHA would not be able to determine whether or to what extent the income is to be excluded (see Section 7-III.H). PHA Policy For a student subject to having a portion of their student financial assistance included in annual income in accordance with 24 CFR 5.609(b)(9), the PHA will request written third-party verification of both the source and the amount. Family-provided documents from the educational institution attended by the student will be requested, as well as documents generated by any other person or entity providing such assistance, as reported by the student such as the FAFSA (Federal Application For Student Aid) In addition, the PHA will request written verification of the student’s tuition, fees, and other required charges. 12.A.b Packet Pg. 1598 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-28 If the PHA is unable to obtain third-party written verification of the requested information, the PHA will pursue other forms of verification following the verification hierarchy in Section 7-I.B. 7-III.K. PARENTAL INCOME OF STUDENTS SUBJECT TO ELIGIBILITY RESTRICTIONS If a student enrolled at an institution of higher education is under the age of 24, is not a veteran, is not married, does not have a dependent child, and is not a person with disabilities receiving HCV assistance as of November 30, 2005, the income of the student’s parents must be considered when determining income eligibility, unless the student is determined independent from their parents or a vulnerable youth in accordance with PHA policy [24 CFR 5.612, FR Notice 4/10/06, p. 18146, and FR Notice 9/21/16]. This provision does not apply to students residing with parents who are seeking or receiving HCV assistance. It is limited to students who are seeking or receiving assistance on their own, separately from their parents. PHA Policy If the PHA is required to determine the income eligibility of a student’s parent s, the PHA will request an income declaration and certification of income from the appropriate parent(s) (as determined in Section 3-II.E). The PHA will send the request directly to the parents, who will be required to certify to their income under penalty of perjury. The parents will be required to submit the information directly to the PHA. The required information must be submitted (postmarked) within 10 business days of the date of the PHA’s request or within any extended timeframe approved by the PHA. The PHA reserves the right to request and review supporting documentation at any time if it questions the declaration or certification. Supporting documentation may include , but is not limited to, Internal Revenue Service (IRS) tax returns, consecutive and original pay stubs, bank statements, pension benefit statements, benefit award letters, and other official and authentic documents from a federal, state, or local agency. 12.A.b Packet Pg. 1599 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-29 PART IV: VERIFYING MANDATORY DEDUCTIONS 7-IV.A. DEPENDENT AND ELDERLY/DISABLED HOUSEHOLD DEDUCTIONS The dependent and elderly/disabled family deductions require only that the PHA verify that the family members identified as dependents or elderly/disabled persons meet the sta tutory definitions. No further verifications are required. Dependent Deduction See Chapter 6 (6-II.B.) for a full discussion of this deduction. The PHA must verify that: • Any person under the age of 18 for whom the dependent deduction is claimed is not the head, spouse, or co-head of the family and is not a foster child • Any person age 18 or older for whom the dependent deduction is claimed is not a foster adult or live-in aide, and is a person with a disability or a full-time student Elderly/Disabled Family Deduction See Eligibility chapter for a definition of elderly and disabled families and Chapter 6 (6-II.C.) for a discussion of the deduction. The PHA must verify that the head, spouse, or co-head is 62 years of age or older or a person with disabilities. 7-IV.B. MEDICAL EXPENSE DEDUCTION Policies related to medical expenses are found in 6-II.D. The amount of the deduction will be verified following the standard verification procedures described in Part I. Amount of Expense PHA Policy Medical expenses will be verified through: Medical Expense Claim form completed by the family. Written third-party documents provided by the family, such as pharmacy printouts or receipts. The PHA will make a best effort to determine what expenses from the past are likely to continue to occur in the future. The PHA will also accept evidence of monthly payments or total payments that will be due for medical expenses during the upcoming 12 months. Written third-party verification forms, if the family is unable to provide acceptable documentation. 12.A.b Packet Pg. 1600 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-30 If third-party or document review is not possible, written family certification as to costs anticipated to be incurred during the upcoming 12 months In addition, the PHA must verify that: • The household is eligible for the deduction. • The costs to be deducted are qualified medical expenses. • The expenses are not paid for or reimbursed by any other source. • Costs incurred in past years are counted only once. Eligible Household The medical expense deduction is permitted only for households in which the head, spouse, or co-head is at least 62, or a person with disabilities. The PHA must verify that the family meets the definition of an elderly or disabled family provided in the Eligibility chapter and as described in Chapter 7 (7-IV.A.) of this plan. Qualified Expenses To be eligible for the medical expenses deduction, the costs must qualify as medical expenses. See Chapter 6 (6-II.D.) for the PHA’s policy on what counts as a medical expense. Unreimbursed Expenses To be eligible for the medical expenses deduction, the costs must not be reimbursed by another source. PHA Policy The family will be required to certify that the medical expenses are not paid or reimbursed to the family from any source. If expenses are verified through a third party, the third party must certify that the expenses are not paid or reimbursed from any other source. Expenses Incurred in Past Years PHA Policy When anticipated costs are related to ongoing payment of medical bills incurred in past years, the PHA will verify: • The anticipated repayment schedule • The amounts paid in the past, and 12.A.b Packet Pg. 1601 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-31 • Whether the amounts to be repaid have been deducted from the family’s annual income in past years 7-IV.C. DISABILITY ASSISTANCE EXPENSES Policies related to disability assistance expenses are found in 6-II.E. The amount of the deduction will be verified following the standard verification procedures described in Part I. Amount of Expense Attendant Care PHA Policy The PHA will accept written third-party documents provided by the family. If family-provided documents are not available, the PHA will provide a third-party verification form directly to the care provider requesting the needed information. Expenses for attendant care will be verified through: Written third-party documents provided by the family, such as receipts or cancelled checks. Third-party verification form signed by the provider, if family provided documents are not available. If third-party verification is not possible, written family certification as to costs anticipated to be incurred for the upcoming 12 months Auxiliary Apparatus PHA Policy Expenses for auxiliary apparatus will be verified through: Written third-party documents provided by the family, such as billing statements for purchase of auxiliary apparatus, or other evidence of monthly payments or total payments that will be due for the apparatus during the upcoming 12 months. Third-party verification form signed by the provider, if family provided documents are not available. If third-party verification is not possible, written family certification of estimated apparatus costs for the upcoming 12 months. In addition, the PHA must verify that: • The family member for whom the expense is incurred is a person with disabilities (as described in 7-II.F above). 12.A.b Packet Pg. 1602 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-32 • The expense permits a family member, or members, to work (as described in 6-II.E.). • The expense is not reimbursed from another source (as described in 6-II.E.). Family Member is a Person with Disabilities To be eligible for the disability assistance expense deduction, the costs must be incurred for attendant care or auxiliary apparatus expense associated with a person with disabilities. The PHA will verify that the expense is incurred for a person with disabilities (See 7-II.F.). Family Member(s) Permitted to Work The PHA must verify that the expenses claimed actually enable a family member, or members, (including the person with disabilities) to work. PHA Policy The PHA will request third-party verification from a Rehabilitation agency or knowledgeable medical professional indicating that the person with disabilities requires attendant care or an auxiliary apparatus to be employed, or that the attendant care or auxiliary apparatus enables another family member, or members, to work (See 6-II.E.). This documentation may be provided by the family If third-party verification has been attempted and is either unavailable or proves unsuccessful, the family must certify that the disability assistance expense frees a family member, or members (possibly including the family member receiving the assistance), to work. Unreimbursed Expenses To be eligible for the disability expenses deduction, the costs must not be reimbursed by another source. PHA Policy The family will be required to certify that attendant care or auxiliary apparatus expenses are not paid by or reimbursed to the family from any source. 7-IV.D. CHILD CARE EXPENSES Policies related to child care expenses are found in Chapter 6 (6-II.F). The amount of the deduction will be verified following the standard verif ication procedures described in Part I of this chapter. In addition, the PHA must verify that: • The child is eligible for care (12 or younger). • The costs claimed are not reimbursed. 12.A.b Packet Pg. 1603 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-33 • The costs enable a family member to work, actively seek work, or further their education. • The costs are for an allowable type of childcare. • The costs are reasonable. Eligible Child To be eligible for the childcare deduction, the costs must be incurred for the care of a child under the age of 13. The PHA will verify that the child being cared for (including foster children) is under the age of 13 (See 7-II.C.). Unreimbursed Expense To be eligible for the childcare deduction, the costs must not be reimbursed by another source. PHA Policy The family (and the care provider) will be required to certify that the childcare expenses are not paid or reimbursed to the family from any source. Pursuing an Eligible Activity The PHA must verify that the family member(s) that the family has identified as being enabled to seek work, pursue education, or be gainfully employed, are actually pursuing those activities. PHA Policy The PHA will verify information about how the schedule for the claimed activity relates to the hours of care provided, the time required for transportation, the time req uired for study (for students), the relationship of the family m ember(s) to the child, and any special needs of the child that might help determine which family member is enabled to pursue an eligible activity. Seeking Work Whenever possible the PHA will use documentation from a state or local agency that monitors work-related requirements (e.g., welfare or unemployment). In such cases the PHA will request family-provided verification from the agency of the member’s job seeking efforts to date and require the family to submit to the PHA any reports provided to the other agency. In the event third-party verification is not available, the PHA will provide the family with a form on which the family member must record job search efforts. The PHA will review this information at each subsequent reexamination for which this deduction is claimed. 12.A.b Packet Pg. 1604 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-34 Furthering Education The PHA will request third-party documentation to verify that the person permitted to further their education by the childcare is enrolled and provide information about the timing of classes for which the person is registered. The documentation may be provided by the family. Gainful Employment The PHA will seek third-party verification of the work schedule of the person who is permitted to work by the childcare. In cases in which two or more family members could be permitted to work, the work schedules for all relevant family members may be verified. The documentation may be provided by the family. Allowable Type of Child Care The type of care to be provided is determined by the family, but must fall within certain guidelines, as discussed in Chapter 6. PHA Policy The PHA will verify that the type of child care selected by the family is allowable, as described in Chapter 6 (6-II.F). The PHA will verify that the fees paid to the child care provider cover only child care costs (e.g., no housekeeping services or personal services) and are paid only for the care of an eligible child (e.g., prorate costs if some of the care is provided for ineligible fam ily members). The PHA will verify that the childcare provider is not an assisted family member. Verification will be made through the head of household’s declaration of family members who are expected to reside in the unit. Reasonableness of Expenses Only reasonable childcare costs can be deducted. PHA Policy The actual costs the family incurs will be compared with the PHA’s established standards of reasonableness for the type of care in the locality to ensure that the costs are reasonable. If the family presents a justification for costs that exceed typical costs in the area, the PHA will request additional documentation, as required, to support a determination that the higher cost is appropriate. 12.A.b Packet Pg. 1605 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 7-35 EXHIBIT 7-1: SUMMARY OF DOCUMENTATION REQUIREMENTS FOR NONCITIZENS [HCV GB, pp. 5-9 and 5-10] • All noncitizens claiming eligible status must sign a declaration of eligible immigrant status on a form acceptable to the PHA. • Except for persons 62 or older, all noncitizens must sign a verification consent form • Additional documents are required based upon the person's status. Elderly Noncitizens • A person 62 years of age or older who claims eligible immigration status also must provide proof of age such as birth certificate, passport, or documents showing receipt of SS old-age benefits. All other Noncitizens • Noncitizens that claim eligible immigration status also must present the applicable USCIS document. Acceptable USCIS documents are listed below. • Form I-551 Alien Registration Receipt Card (for permanent resident aliens) • Form I-94 Arrival-Departure Record annotated with one of the following: • “Admitted as a Refugee Pursuant to Section 207” • “Section 208” or “Asylum” • “Section 243(h)” or “Deportation stayed by Attorney General” • “Paroled Pursuant to Section 221 (d)(5) of the USCIS” • Form I-94 Arrival-Departure Record with no annotation accompanied by: • A final court decision granting asylum (but only if no appeal is taken); • A letter from a USCIS asylum officer granting asylum (if application is filed on or after 10/1/90) or from a USCIS district director granting asylum (application filed before 10/1/90); • A court decision granting withholding of deportation; or • A letter from an asylum officer granting withholding or deportation (if application filed on or after 10/1/90). • Form I-688 Temporary Resident Card annotated “Section 245A” or Section 210”. Form I-688B Employment Authorization Card annotated “Provision of Law 274a. 12(11)” or “Provision of Law 274a.12”. • A receipt issued by the USCIS indicating that an application for issuance of a replacement document in one of the above listed categories has been made and the applicant’s entitlement to the document has been verified; or • Other acceptable evidence. If other documents are determined by the USCIS to constitute acceptable evidence of eligible immigration status, they will be announced by notice published in the Federal Register 12.A.b Packet Pg. 1606 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-1 Chapter 8 HOUSING QUALITY STANDARDS AND RENT REASONABLENESS DETERMINATIONS [24 CFR 982 Subpart I and 24 CFR 982.507] INTRODUCTION HUD requires that all units occupied by families receiving Section 8 Housing Choice Voucher (HCV) assistance meet HUD's Housing Quality Standards (HQS) and permits the PHA to establish additional requirements. The use of the term "HQS" in this plan refers to the combination of both HUD and PHA-established requirements. All units must pass an HQS inspection prior to the approval of a lease. HOME and Continuum of Care programs require annual inspections. All other programs will be inspected at least once every 24 months during the term of the contract, and at other times as needed, to determine that the unit meets HQS. HUD also requires PHAs to determine that units rented by families assisted under the HCV program have rents that are reasonable when compared to comparable unassisted units in the market area. This chapter explains HUD and PHA requirements related to housing quality a nd rent reasonableness as follows: Part I. Physical Standards. This part discusses the physical standards required of units occupied by Section 8 HCV-assisted families and identifies decisions about the acceptability of the unit that may be made by the family based upon the family's preference. It also identifies life-threatening conditions that must be addressed on an expedited basis. Part II. The Inspection Process. This part describes the types of inspections the PHA will make and the steps that will be taken when units do not meet HQS. Part III. Rent Reasonableness Determinations. This part discusses the policies the PHA will use to make rent reasonableness determinations. Special HQS requirements for homeownership, manufactured homes, and other special housing types are discussed in Chapter 15 to the extent that they apply in this jurisdiction. 12.A.b Packet Pg. 1607 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-2 PART I: PHYSICAL STANDARDS 8-I.A. GENERAL HUD REQUIREMENTS HUD Performance and Acceptability Standards HUD's performance and acceptability standards for Section 8 HCV-assisted housing are provided in 24 CFR 982.401. These standards cover the following areas: •Sanitary facilities •Food preparation and refuse disposal •Space and Security •Thermal Environment •Illumination and electricity •Structure and materials •Interior Air Quality •Water Supply •Lead-based paint •Access •Site and neighborhood •Sanitary condition •Smoke and Carbon Monoxide Detectors A summary of HUD performance criteria is provided in Exhibit 8-1. Additional guidance on these requirements is found in the following HUD resources: •Housing Choice Voucher Guidebook, Chapter 10. •HUD Housing Inspection Manual for Section 8 Housing •HUD Inspection Form, form HUD-52580 (3/01) and Inspection Checklist, form HUD-52580-A (9/00) •HUD Notice 2003-31, Accessibility Notice: Section 504 of the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Architectural Barriers Act of 1968 and the Fair Housing Act of 1988. Tenant Preference Items HUD requires the PHA to enforce minimum HQS but also recognizes that certain judgments about the acceptability of the unit are left to the family. For example, the PHA must ensure that the unit contains the required sanitary facilities, but the family decides whether the cosmetic 12.A.b Packet Pg. 1608 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-3 appearance of the facilities is acceptable. Exhibit 8-2 summarizes those items that are considered tenant preferences. Modifications to Provide Accessibility Under the Fair Housing Act of 1988 an owner must not refuse the request of a family that contains a person with a disability to make necessary and reasonable modifications to the unit. Such modifications are at the family's expense. The owner may require restoration of the unit to its original condition if the modification would interfere with the owner or next occupant's full enjoyment of the premises. The owner may not increase a customarily required security deposit. However, the landlord may negotiate a restoration agreement that requires the family to restore the unit and, if necessary, to ensure the likelihood of restoration, may require the tenant to pay a reasonable amount into an interest-bearing escrow account over a reasonable period of time. The interest in any such account accrues to the benefit of the tenant. The owner may also require reasonable assurances that the quality of the work will be acceptable and that any required building permits will be obtained. [24 CFR 100.203; Notice 2003-31]. Modifications to units to provide access for a person with a disability must meet all applicable HQS requirements and conform to the design, construction, or alteration of facilities contained in the UFAS and the ADA Accessibility Guidelines (ADAAG) [28 CFR 35.151(c) and Notice 2003 - 31] See Chapter 2 of this plan for additional information on reasonable accommodations for persons with disabilities. PHA Policy Any owner that intends to negotiate a restoration agreement or require an escrow account must submit the agreement(s) to the PHA for review. 8-I.B. ADDITIONAL LOCAL REQUIREMENTS The PHA may impose variations to the HQS as long as the additional criteria are not likely to adversely affect the health or safety of participant families or severely restrict housing choice s for families. HUD approval is required for variations to the HQS. HUD approval is not required if the variations are clarifications of HUD's acceptability criteria or performance standards [24 CFR 982.401(a)(4)]. Thermal Environment [HCV GB p.10-7] The PHA must define a “healthy living environment” for the local climate. This may be done by establishing a temperature that the heating system must be capable of maintaining, that is appropriate for the local climate. PHA Policy The heating system must be functioning when the temperature outside is 60 degrees Fahrenheit or below. 12.A.b Packet Pg. 1609 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-4 Clarifications of HUD Requirements PHA Policy As permitted by HUD, the PHA has adopted the following specific requirements that elaborate on HUD standards. Security If window security bars or security screens are present on emergency exit windows, they must be equipped with a quick release system. The ow ner is responsible for ensuring that the family is instructed on the use of the quick release system. Water Heaters Requirements for water heaters apply to all water heaters in the assisted unit and in the common areas of the building in which the unit is located. All gas water heaters must have a gas shut-off valve. All water heaters must have a cold-water shut-off valve. All water heaters must have the correct temperature- pressure relief valve according to the psi needed for the size of the wate r heater. Discharge line must be copper, galvanized or high-heat PVC and of proper length. To ensure against explosion and fire due to earthquakes, all gas water heaters must be properly secured in accordance with their size as prescribed by Code for new installations and by manufacturer’s specifications. Water heaters used by the assisted unit are the responsibility of the owner of the unit even if they are not in the direct control and/or sole ownership of that owner (e.g. condominium). Smoke Detectors Each dwelling unit must contain at least one battery-operated or hard-wired smoke detector in proper working condition on each level of the unit. If the unit is occupied by hearing-impaired persons, smoke detectors must have an alarm system designed for hearing-impaired persons in each bedroom occupied by a hearing-impaired person. A smoke detector must be installed in each sleeping area and in areas such as hallways that give access to sleeping areas. If two bedrooms are immediately adjacent, one detector may be located between them at the discretion of the inspector. Tenants are responsible for providing and replacing batteries for battery-powered units except at initial occupancy. Carbon Monoxide Detectors California Health and Safety Code Section 17926 ET requires that owner install a carbon monoxide device, approved and listed by the State Fire Marshal pursuant to Section 13263 in each existing dwelling unit having a fossil fuel burning heater or appliance, fireplace, or an attached garage. 12.A.b Packet Pg. 1610 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-5 Regulation of Smoking Under Santa Monica Municipal Code § 4.44, units are designated as either “Smoking” or “Non- Smoking” by the landlord. Units currently occupied by a tenant which are designated as “Smoking” units will continue as such and be grandfathered for the lifetime of that tenant’s lease. PHA Policy Tenants and owners requesting more information regarding the smoking ordinance will be referred to: smconsumer.org or directed to call the City Attorney's Office at 310-458- 8336 for assistance. 8-I.C. LIFE-THREATENING CONDITIONS [24 CFR 982.404(a); FR Notice 1/18/17] HUD requires the PHA to define life-threatening conditions and to notify the owner or the family (whichever is responsible) of the corrections required. The responsible party must correct life-threatening conditions within 24 hours of PHA notification. PHA Policy The following are considered life-threatening conditions: Any condition that jeopardizes the security of the unit Major plumbing leaks or flooding, waterlogged ceiling or floor in imminent danger of falling Natural or LP gas or fuel oil leaks A fuel storage vessel, fluid line, valve, or connection that supplies fuel to a HVAC unit is leaking or a strong odor is detected with potential for explosion or fire or that results in a health risk if inhaled Any electrical problem or condition that could result in shock or fire A light fixture is readily accessible, is not securely mounted to the ceiling or wall, and electrical connections or wires are exposed A light fixture is hanging by its wires A light fixture has a missing or broken bulb, and the open socket is readily accessible to the tenant during the day-to-day use of the unit A receptacle (outlet) or switch is missing or broken and electrical connections or wires are exposed An open circuit breaker position is not appropriately blanked off in a panel board, main panel board, or other electrical box that contains circuit breakers or fuses 12.A.b Packet Pg. 1611 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-6 A cover is missing from any electrical device box, panel box, switch gear box, control panel, etc., and there are exposed electrical connections Any nicks, abrasions, or fraying of the insulation that exposes conducting wire Exposed bare wires or electrical connections Any condition that results in openings in electrical panels or electrical control device enclosures Water leaking or ponding near any electrical device Any condition that poses a serious risk of electrocution or fire and poses an immediate life-threatening condition Absence of a working heating system when outside temperature is below 60 degrees Fahrenheit. Utilities not in service, including no running hot water, unless tenant is responsible for utilities. Conditions that present the imminent possibility of injury Obstacles that prevent safe entrance or exit from the unit Any components that affect the function of the fire escape are missing or damaged Stored items or other barriers restrict or prevent the use of the fire escape in the event of an emergency The building’s emergency exit is blocked or impeded, thus limiting the ability of occupants to exit in a fire or other emergency Absence of a functioning toilet in the unit Broken glass where someone could be injured Inoperable or missing smoke detectors Missing or inoperable carbon monoxide detector Missing, damaged, discharged, overcharged, or expired fire extinguisher (where required) Gas/oil-fired water heater or heating, ventilation, or cooling system with missing, damaged, improper, or misaligned chimney venting The chimney or venting system on a fuel-fired water heater is misaligned, negatively pitched, or damaged, which may cause improper or dangerous venting or gases A gas dryer vent is missing, damaged, or is visually determined to be inoperable, or the dryer exhaust is not vented to the outside 12.A.b Packet Pg. 1612 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-7 A fuel-fired space heater is not properly vented or lacks available combustion air A non-vented space heater is present Safety devices on a fuel-fired space heater are missing or damaged The chimney or venting system on a fuel-fired heating, ventilation, or cooling system is misaligned, negatively pitched, or damaged, which may cause improper or dangerous venting of gas Deteriorating paint as defined at 24 CFR 35.110 in a unit built before 1978 that is to be occupied by a family with a child under six years of age if it would prevent the family from moving into the unit If an owner fails to correct life-threatening conditions as required by the PHA, the PHA will enforce the HQS in accordance with HUD requirements. See 8-II-G. If a family fails to correct a family caused life-threatening condition as required by the PHA, the PHA will enforce the family obligations. See 8-II.H. The owner will be required to repair an inoperable smoke detector unless the PHA determines that the family has intentionally disconnected it (by removing batteries o r other means). In this case, the family will be required to repair the smoke detector within 24 hours. 8-I.D. OWNER AND FAMILY RESPONSIBILITIES [24 CFR 982.404] Family Responsibilities The family is responsible for correcting the following HQS deficiencies: • Tenant-paid utilities not in service • Failure to provide or maintain appliances owned by the family • Damage to the unit or premises caused by a household member or guest beyond normal wear and tear that result in a breach of the HQS. "Normal wear and tear" is defined as items which could not be charged against the tenant's security deposit under state law or court practice. PHA Policy 12.A.b Packet Pg. 1613 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-8 The family is responsible to notify the owner in writing of any/all items needing repair in the apartment or other issues related to damage or inoperability in the apartment, whether they are tenant caused or the result of normal wear and tear. Owner Responsibilities The owner is responsible for all HQS violations not listed as a family responsibility above, even if the violation is caused by the family's living habits (e.g., vermin infestation). However, if the family's actions constitute a serious lease violation the owner may take legal action to evict the family. 8-I.E. SPECIAL REQUIREMENTS FOR CHILDREN WITH ELEVATED BLOOD LEAD LEVEL [24 CFR 35.1225; FR Notice 1/13/17; Notice PIH 2017-13] If a PHA is notified by a public health department or other medical health care provider, or verifies information from a source other than a public health department or medical health care provider, that a child of less than six years of age, living in an HCV-assisted unit has been identified as having an elevated blood lead level, the PHA must complete an environmental investigation of the dwelling unit within 15 calendar days after being notified by a public health department or other medical health care provider. The environmental investigation must be completed in accordance with program requirements, and the result of the environmental investigation must be immediately provided to the owner of the dwelling unit. In cases where the public health department has already completed an evaluation of the unit, this information must be provided to the owner. Within 30 days after receiving the environmental investigation report from the PHA, or the evaluation from the public health department, the owner is required to complete the reduction of identified lead-based paint hazards in accordance with the lead-based paint regulations [24 CFR 35.1325 and 35.1330; 40 CFR 745.227]. If the owner does not complete the “hazard reduction” as required, the dwelling unit is in violation of HQS and the PHA will take action in accordance with Section 8-II.G. PHA reporting requirements, and data collection and record keeping responsibilities related to children with an elevated blood lead level are discussed in Chapter 16. 8-I.F. VIOLATION OF HQS SPACE STANDARDS [24 CFR 982.401, 24 CFR 982.403] A dwelling unit must: • Provide adequate space and security for the family • Have at least one bedroom or living/sleeping room for each two persons A unit that does not meet these HQS space standards is defined as overcrowded. 12.A.b Packet Pg. 1614 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-9 A living room may be used as sleeping (bedroom) space, but no more than two persons may occupy the space [HCV GB p. 10-6]. A bedroom or living/sleeping room must have at least: • One window • Two electrical outlets in proper operating condition (permanent overhead or wall -mounted light fixtures may count as one of the required electrical outlets) If the PHA determines that a unit is overcrowded because of an increase in family size or a change in family composition, the PHA must issue the family a new voucher, and the family and PHA must try to find an acceptable unit as soon as possible. If an acceptable unit is available for rental by the family, the PHA must terminate the HAP contract in accordance with its terms. 8-I.G. BED BUG INFESTATION [Notice PIH 2012-5] Bed bugs are a growing national problem. The purpose of this policy is to set forth the roles and responsibilities of all parties (The PHA, Tenant, and Landlord) in minimizing the potential for bed bugs. The policy will also provide guidance in cases where bed bugs are present in order to eliminate them as quickly as possible. Bed bugs are difficult to contain without the proper treatment. Therefore, it is imperative that all parties work simultaneously toward a common goal, extermination and elimination. Left untreated, bed bugs can spread throughout a residence affecting current and future tenants. PHA Policy Subsequent to an assertion by the tenant that the contract unit has bed bugs, the presence of bed bugs in the contract unit must be observed and documented by a County of Los Angeles inspector (as a neutral third-party). The PHA does not have direct responsibility for bed bug removal. As stated in both the Housing Quality Standards (HQS) and the contract, landlords are responsible to ensure the dwelling unit and its equipment must be sanitary condition and free of vermin infestation. If the contract is violated, the cancelation process outlined in the PHA’s Administrative Plan will be followed. Landlord Roles and Responsibilities The contract requires the landlord to maintain the contract unit and its premises in accordance with Housing Quality Standards (HQS). If bed bugs are present (as observed and documented by a County of Los Angeles inspector), it is the responsibility of the landlord, as stated in the HQS (CFR 982.401), to ensure that the dwelling unit and its equipment be in sanitary condition and free of vermin and rodent infestation. In order to comply with the HQS, if the presence of bed bugs is suspected, the landlord must notify the PHA immediately and it is strongly recommended that the landlord contact an extermination professional for an immediate inspection. 12.A.b Packet Pg. 1615 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-10 PHA Policy Prior to triggering any responsibilities of the landlord or tenant, the presence of bed bugs in the contract unit must be observed and documented by a County of Los Angeles inspector (as a neutral third-party). If treatment is deemed necessary, a ‘Bed Bug Management Plan Landlord/Tenant Certification Statement’ describing the treatment performed must be provided to the PHA by the landlord within 72 hours of final treatment is required. Failure to comply with the above requirements is a direct violation of the HAP contract and may result in abatement, termination of the contract and/or suspension of eligibility of the affected unit to participate in the housing programs. Tenant Roles and Responsibilities The contract requires the tenant to keep the unit and its premises free from damage. Therefore, if the presence of bed bugs is suspected, it is the tenant’s responsibility to notify the landlord and the PHA immediately in order to minimize any potential damage to the unit. In addition, it is the responsibility of the tenant to work cooperatively with the landlord and/or extermination professional to ensure the successful elimination of bed bugs. Tenant non- compliance may result in the loss of their voucher. PHA Policy Once a unit has been successfully treated for bed bugs, the tenant and landlord/owner will be required to complete and return a ‘Bed Bug Management Plan Landlord/Tenant Certification Statement,’ which will be provided by the landlord. If there is a reoccurrence of bed bug infestation after a su ccessful professional extermination, the tenant may be responsible for the fumigation of the unit. If the resident notifies the landlord of the presence of bedbugs and the landlord fails to take action within a reasonable period of time, the resident should notify the PHA for assistance. PHA Roles and Responsibilities: The PHA will ensure the landlord maintains the unit within HQS guidelines and provide guidance on the resolution of any potential bed bug problems. The PHA will also require all program participants and landlords to disclose at intake, recertification, and inspection any exposures to bed bugs within the last 12-month period. The above provisions do not supersede existing lease provisions that comply with state and/or local landlord/tenant laws and that have been approved by HUD (where such approval is required). All parties should refer to the property lease executed between the tenant and the O/A, and the property House Rules, for details on owner and resident rights and responsibilities related to infestations and housing physical condition standards. 12.A.b Packet Pg. 1616 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-11 PART II: THE INSPECTION PROCESS 8-II.A. OVERVIEW [24 CFR 982.405] Types of Inspections The PHA conducts the following types of inspections as needed. Each type of inspection is discussed in the paragraphs that follow. • Initial Inspections. The PHA conducts initial inspections in response to a request from the family to approve a unit for participation in a program. • Annual/Biennial Inspections. HUD requires the PHA to inspect each unit under lease at least annually or biennially, depending on PHA policy, to confirm that the unit still meets HQS. The inspection may be conducted in conjunction with the family's annual reexamination but also may be conducted separately. • Special Inspections. A special inspection may be requested by the owner, the family, or a third party as a result of problems identified with a unit between annual inspections. • Quality Control Inspections. HUD requires that a sample of units be inspected by a supervisor or other qualified individual to evaluate the work of the inspector(s) and to ensure that inspections are performed in compliance with the HQS . Inspection of PHA-Owned Units [24 CFR 982.352(b)] The PHA must obtain the services of an independent entity to perform all HQS inspections in cases where an HCV family is receiving assistance in a PHA-owned unit. A PHA-owned unit is defined as a unit that is owned by the PHA that administers the assistance under the consolidated ACC (including a unit owned by an entity substantially controlled by the PHA). The independent agency must communicate the results of each inspection to the family and the PHA. The independent agency must be approved by HUD and may be the unit of general local government for the PHA jurisdiction (unless the PHA is itself the unit of general local government or an agency of such government). Inspection Costs [Notice PIH 2016-05] The PHA may not charge the family for unit inspections or reinspections [24 CFR 982.405(e)]. In the case of inspections of PHA-owned units, the PHA may compensate the independent agency from ongoing administrative fee for inspections performed. The PHA and the independent agency may not charge the family any fee or charge for the inspection [24 CFR.982.352(b)]. The PHA may not charge the owner for the inspection of the unit prior to the initial term of the lease or for a first inspection during assisted occupancy of the unit. However, the PHA may charge a reasonable fee to owners for reinspections in two situations: when the owne r notifies the PHA that a repair has been made but the deficiency has not been corrected, and when the time for repairs has elapsed and the deficiency has not been corrected. Fees may not be 12.A.b Packet Pg. 1617 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-12 imposed for tenant-cause damages, for cases in which the inspector could not gain access to the unit, or for new deficiencies discovered during a reinspection. The owner may not pass the cost of a reinspection fee to the family. Reinspection fees must be added to the PHA’s administrative fee reserves and may only be use d for activities related to the provision of tenant-based assistance. PHA Policy The PHA will not charge a fee for failed reinspections. Remote Video Inspections (RVIs) [Notice PIH 2020-31] As an alternative to some or all on-site inspections, the PHA may, but is not required to, perform HQS inspections from a remote location using video streaming technology and a proxy at the inspection site. Since there may be some circumstances in which the application of technology provides insufficient information or evidence to allow the PHA to make appropriate determinations about whether a condition violates HQS, Notice PIH 2020-31 requires that if a PHA chooses to implement RVIs, the PHA should have policies and procedures in place to address such limitations. PHA Policy The PHA may conduct HQS inspection using RVI. Notice and Scheduling The family must allow the PHA to inspect the unit at reasonable times with reasonable notice [24 CFR 982.551(d)]. PHA Policy Both the family and the owner will be given reasonable notice of all inspections. Except in the case of a life-threatening emergency, reasonable notice is considered to be not less than 48 hours. Inspections may be scheduled between 8:00 a.m. and 5:00 p.m. Generally, inspections will be conducted on business days only. In the case of a life- threatening emergency, the PHA will give as much notice as possible, given the nature of the emergency. Notices of inspection will be translated for LEP participants, and will note that availability of appropriate language assistance, in accordance with the PHA’s LEP Plan. Any required notices sent by the PHA will be addressed to the head of household and must be deliverable to the address of the subsidized apartment. Owner and Family Inspection Attendance HUD permits the PHA to set policy regarding family and owner presence at the time of inspection [HCV GB p. 10-27]. 12.A.b Packet Pg. 1618 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-13 PHA Policy When a family occupies the unit at the time of inspection an authorized adult must be present for the inspection. The presence of the owner or the owner’s representative is not required. At initial inspection of a vacant unit, the PHA will inspect the unit . The owner is not required to be present. 8-II.B. INITIAL HQS INSPECTION [24 CFR 982.401(a)] Initial Inspections [FR Notice 1/18/17] The PHA may, but is not required to, approve assisted tenancy and start HAP if the unit fails HQS inspection, but only if the deficiencies identified are non-life-threatening. Further, the PHA may, but is not required to, authorize occupancy if a unit passed an alternative inspection in the last 24 months. PHA Policy The unit must pass the HQS inspection on or before the effective date of the HAP contract. The PHA will not rely on alternative inspections and will conduct an HQS inspection for each unit prior to executing a HAP contract with the owner. Timing of Initial Inspections HUD requires PHAs with fewer than 1,250 budgeted units to complete the initial inspection, determine whether the unit satisfies HQS, and notify the owner and the family of the determination within 15 days of submission of the Request for Tenancy Approval (RTA). For PHAs with 1,250 or more budgeted units, to the extent practicable such inspection and determination must be completed within 15 days. The 15-day period is suspended for any period during which the unit is not available for inspection [982.305(b)(2)]. PHA Policy The PHA will complete the initial inspection, determine whether the unit satisfies HQS, and notify the owner and the family of the determination within 15 days of submission of the Request for Tenancy Approval (RTA). Inspection Results and Reinspections PHA Policy If any HQS violations are identified, the owner will be notified of the deficiencies and be given up to 14 days to correct them. If requested by the owner, the time frame for correcting the deficiencies may be extended by the PHA for good cause. The PHA will re - 12.A.b Packet Pg. 1619 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-14 inspect the unit within 10 business days of the date the owner notifies the PHA that the required corrections have been made. If the family can provide evidence they will lose the unit if the re-inspection does not occur sooner, the PHA should make every effort to accommodate the family as Section 8 units are difficult to secure in the City of Santa Monica. If the time period for correcting the deficiencies (or any PHA-approved extension) has elapsed, or the unit fails HQS at the time of the reinspection, the PHA will notify the owner and the family that the unit has been rejected and that the family must search for another unit. The PHA may agree to conduct a second reinspection, for good cause, at the request of the family and owner. Following a failed reinspection, the family may submit a new Request for Tenancy Approval after the owner has made repairs, if they are unable to locate another suitable unit. Utilities Generally, at initial lease-up the owner is responsible for demonstrating that all utilities are in working order including those utilities that the family will be responsible for paying. PHA Policy The utility service needs to be available for testing at the time of the initial inspection. Appliances [Form HUD-52580] PHA Policy If the family is responsible for supplying the stove and/or refrigerator, the PHA will allow the stove and refrigerator to be placed in the unit after if the unit has met all other HQS requirements. The inspection will be noted as a passed inspection and the family must submit a certified statement to the PHA that the required appliances are installed and in good working order prior to the HAP contract being executed by the PHA. A confirmatory inspection may be scheduled within 30 days of HAP contract approval at the discretion of the PHA. 8-II.C. ANNUAL/BIENNIAL HQS INSPECTIONS [24 CRF 982.405; and 982.406; Notice PIH 2016- 05] PHA Policy Each Voucher unit under contract must be inspected biennially within 24 months of the last full HQS inspection. The PHA reserves the right to require annual inspections of any unit or owner at any time. All other housing programs require annual inspections. 12.A.b Packet Pg. 1620 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-15 The PHA will not rely on alternative inspection standards. Scheduling the Inspection PHA Policy If an adult cannot be present on the scheduled date, the family must reschedule the appointment prior to the scheduled date. Appointments will only be rescheduled for good cause, or if it is needed as a reasonable accommodation for a person with disabilities. Good cause is defined as an unavoidable conflict which seriously affects the health, or welfare of the family. At its discretion, the PHA may request d ocumentation of the “good cause” prior to rescheduling the appointment. The PHA and family will agree on a new inspection date that generally should take place within 10 business days of the originally scheduled date. The PHA may schedule an inspection more than 10 business days after the original date for good cause. If the family misses the first scheduled appointment without requesting a new inspection date, the PHA will automatically schedule a second inspection. If the family misses two scheduled inspections without PHA approval, the PHA will consider the family to have violated its obligation to make the unit available for inspection. This may result in termination of the family’s assistance in accordance with Chapter 12. 8-II.D. SPECIAL INSPECTIONS [24 CFR 982.405(g)] If a participant or government official reports a life-threatening condition which the owner would be required to repair within 24 hours, the PHA must inspect the unit within 24 hours of notification. If the reported condition is not l ife-threatening, the PHA must inspect the unit within 15 days of notification. PHA Policy During a special inspection, the PHA generally will inspect only those deficiencies that were reported. However, the inspector will record any additional HQS deficien cies that are observed and will require the responsible party to make the necessary repairs. If the annual/biannual inspection has been scheduled or is due within 120 days of the date the special inspection is scheduled the PHA may elect to conduct a full annual/biannual inspection. 12.A.b Packet Pg. 1621 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-16 8-II.E. QUALITY CONTROL INSPECTIONS [24 CFR 982.405(b); 24 CFR 985.3(e); HCV GB, p. 10- 32] HUD requires a PHA supervisor or other qualified person to conduct quality control inspections of a sample of units to ensure that each inspector is cond ucting accurate and complete inspections and that there is consistency in the application of the HQS. The unit sample must include only units that have been inspected within the preceding three months. The selected sample should be drawn to represent a cross section of neighborhoods and the work of a cross section of inspectors. 8-II.F. INSPECTION RESULTS AND REINSPECTIONS FOR UNITS UNDER CONTRACT Notification of Corrective Actions The owner and the family will be notified in writing of the results of all inspections. When an inspection identifies HQS failures, the PHA will determine (1) whether or not the failure is a life- threatening condition and (2) whether the family or owner is responsible. Notices of corrective action will be translated for LEP participants, and will note the availability of appropriate language assistance, in accordance with the PHA’s LEP Plan. PHA Policy When life-threatening conditions are identified, the PHA will immediately notify both parties by telephone or email. The notice will specify who is responsible for correcting the violation. The corrective actions must be taken within 24 hours of the PHA’s notice. When failures that are not life threatening are identified, the PHA will send the owner and the family a written notification of the insp ection results within five business days of the inspection. The written notice will specify who is responsible for correcting the violation, and the time frame within which the failure must be corrected. Generally, not more than 30 days will be allowed for the correction. The notice of inspection results will inform the owner that if life-threatening conditions are not corrected within 24 hours, and non-life threatening conditions are not corrected within the specified time frame (or any PHA-approved extension), the owner’s contract will be abated in accordance with PHA policy (see 8-II.G.). Likewise, in the case of family caused deficiencies, the notice will inform the family that if corrections are not made within the specified time frame (or any PHA-approved extension, if applicable) the family’s assistance will be terminated in accordance with PHA policy (see Chapter 12). Extensions 12.A.b Packet Pg. 1622 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-17 For conditions that are life threatening, the PHA cannot grant an extension to the 24-hour corrective action period. For conditions that are not life threatening, the PHA may grant an exception to the required time frames for correcting the violation, if the PHA determines that an extension is appropriate [24 CFR 982.404]. PHA Policy Extensions will be granted in cases where the PHA has determined that the owner has made a good faith effort to correct the deficiencies and is unable to for reasons beyond the owner’s control. Reasons may include, but are not limited to: A repair cannot be completed because required parts or services are not available. A repair cannot be completed because of weather conditions. An accommodation is needed because the family includes a person with disabilities. The length of the extension will be determined on a case-by-case basis, but will not exceed 60 days, except in the case of delays caused by weather conditions. In the case of weather conditions, extensions may be continued until the weather has improved sufficiently to make repairs possible. The necessary repairs must be made within 15 calendar days, once the weather conditions have subsided. Reinspections PHA Policy The PHA will conduct a reinspection immediately following the end of the corrective period, or any PHA approved extension. The family and owner will be given reasonable notice of the reinspection appointment. If the deficiencies have not been corrected by the time of the reinspection, the PHA will send a notice of abatement to the owner, or in the case of family caused violations, a notice of termination to the family, in accordance with PHA policies. If the PHA is unable to gain entry to the unit in order to conduct the scheduled reinspection, the PHA will consider the family to have violated its obligation to make the unit available for inspection. This may result in termination of the family’s assistance in accordance with Chapter 12. Verifying HQS Deficiencies Remotely The PHA must not make any housing assistance payments for a dwelling unit that fails to meet the HQS, unless the owner corrects the defect within the period specified by the PHA and the PHA verifies the correction. If a defect is life threatening, the owner must correct the defect within no more than 24 hours. For other defects, the owner must correct the defect within no more than 30 calendar days (or any PHA-approved extension) [24 CFR 982.404 (a)(3)]. 12.A.b Packet Pg. 1623 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-18 PHA Policy If the PHA determines that a unit does not meet HQS requirements during an annual, special, or management inspection, verification that the deficiencies are corrected may be done by means other than a re-inspection. Any one of three of the following items needs to be provided as a method of verifying the correction of unit deficiencies remotely: ▪ Owner’s or Tenant’s Certification ▪ Receipts from vendor ▪ Photos of the unit This policy will not include life-threatening deficiencies, tenant caused deficiencies, and Initial inspections. Housekeeping Issues PHA Policy If a unit fails an inspection repeatedly (on more than one occasion) due to housekeeping issues caused by the tenant, the unit may be subject to annual inspections. Examples of housekeeping issues may include but are not limited to hoarding which impedes walkways and entry/exit, excessive lack of cleanliness which may lead to infestation or other damage to the unit, and other tenant caused issues. 8-II.G. ENFORCING OWNER COMPLIANCE If the owner fails to maintain the dwelling unit in accordance with HQS, the PHA must take prompt and vigorous action to enforce the owner obligations. HAP Abatement If an owner fails to correct HQS deficiencies by the time specified by the PHA, the PHA will request the assistance of local Code Enforcement entities (such as City of Santa Monica and County of Los Angeles) to help ensure the dwelling unit is returned to a habitable condition in a timely manner. The PHA will also refer the affected household to a local legal services agency which provides legal assistance to low income households (such as the Legal Aid Foundation of Los Angeles), so the household can receive legal advice and possible representation toward ensuring the owner completes the necessary repairs. HUD requires the PHA to abate housing assistance payments no later than the first of the month following the specifie d correction period (including any approved extension) [24 CFR 985.3(f)]. No retroactive payments will be made to the owner for the period of time the rent was abated. Owner rents are not abated as a result of HQS failures that are the family's responsibility. 12.A.b Packet Pg. 1624 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-19 PHA Policy The PHA will make all HAP abatements effective the first of the month following the expiration of the PHA specified correction period (including any extension). The PHA will inspect abated units within five business days of the owner's notification that the work has been completed. Payment will resume effective on the day the unit passes inspection. During any abatement period the family continues to be responsible for its share of the rent. The owner must not seek payment from the family for abated amounts and may not use the abatement as cause for eviction. HAP Contract Termination The PHA must decide how long any abatement period will continue before the HAP contract will be terminated. The PHA should not terminate the contract until the family finds another unit, provided the family does so in a reasonable time [HCV GB p. 10-29] and must give the owner reasonable notice of the termination. The PHA will issue a voucher to permit the family to move to another unit as described in Chapter 10 . PHA Policy The maximum length of time that HAP may be abated is 180 days. However, if the owner completes corrections and notifies the PHA before the termination date of the HAP contract, the PHA may rescind the termination notice if (1) the family stil l resides in the unit and wishes to remain in the unit and (2) the unit passes inspection. Also within this 180- day period, repairs may be completed by the family, should the family wish to resolve the corrective action. The family will then advise the PHA that repairs have been completed and request a re-inspection of the unit. Reasonable notice of HAP contract termination by the PHA is 30 days. 8-II.H. ENFORCING FAMILY COMPLIANCE WITH HQS [24 CFR 982.404(b)] Families are responsible for correcting any HQS violations listed in paragraph 8.I.D. If the family fails to correct a violation within the period allowed by the PHA (and any extensions), the PHA will terminate the family’s assistance, according to the policies described in Chapter 12. If the owner carries out a repair for which the family is responsible under the lease, the owner may bill the family for the cost of the repair. 12.A.b Packet Pg. 1625 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-20 PART III: RENT REASONABLENESS [24 CFR 982.507] 8‐III.A. OVERVIEW No contract can be approved until the PHA has determined that the rent for the unit is reasonable. The purpose of the rent reasonableness test is to ensure that a fair rent is paid for each unit rented under the housing programs. HUD regulations define a reasonable rent as one that does not exceed the rent charged for comparable, unassisted units in the same market area. HUD also requires that owners not charge more for assisted units than for comparable units on the premises. This part explains the method used to determine whether a unit’s rent is reasonable. PHA‐Owned Units [24 CFR 982.352(b)] In cases where a family is receiving assistance in a PHA‐owned unit, the PHA must obtain the services of an independent entity to determine rent reasonableness in accordance with program requirements, and to assist the family in negotiating the contract rent when the family requests assistance. A PHA‐owned unit is defined as a unit that is owned by the PHA that administers the assistance under the consolidated ACC (including a unit owned by an entity substantially controlled by the PHA). The independent agency must communicate the results of the rent reasonableness determination to the family and the PHA. The independent agency must be approved by HUD, and may be the unit of general local government for the PHA jurisdiction (unless the PHA is itself the unit of general local government or an agency of such government). 8‐III.B. WHEN RENT REASONABLENESS DETERMINATIONS ARE REQUIRED Annual Rent Increases The PHA must make a rent reasonableness determination at initial occupancy and whenever there is a rent adjustment. The owner and family first negotiate the rent for a unit. The PHA (or independent agency in the case of PHA‐owned units) will assist the family with the negotiations upon request. At initial occupancy the PHA must determine whether the proposed rent is reasonable before a contract is signed. The owner must not change the rent during the initial lease term. Rent adjustments must be consistent with the lease between the owner and the family. Rent increases will not be approved unless any failed items identified by the most recent HQS inspection have been corrected. PHA Policy After the initial occupancy period, rent increase requests shall landlords must affirmatively request a rent increase in writing at least 60‐days prior to the effective date, which will be 12.A.b Packet Pg. 1626 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-21 timed with a tenant’s annual reexamination. Only one increase in a 12‐month period is allowed. Annual Adjustments are established by Santa Monica Rent Control Department annual percentage adjustments only and this allowable increase will be effective October 1st of each year. . For rent increase requests after initial lease‐up, the PHA may request owners to provide information about the rents charged for other units on the premises, if the premises include more than 4 units. In evaluating the proposed rents in comparison to other units on the premises the PHA will consider unit size and length of tenancy in the other units. All rents adjustments will be effective the first of the month following the PHA’sa 30‐ day notice to the tenant of the HAP payment and tenant share of rent. PHA‐ and HUD‐Initiated Rent Reasonableness Determinations HUD requires the PHA to make a determination of rent reasonableness (even if the owner has not requested a change) if there is a 10 percent decrease in the fair market rent that goes into effect at least 60 days before the contract anniversary date. HUD also may direct the PHA to make a determination at any other time. The PHA may decide that a new determination of rent reasonableness is needed at any time. PHA Policy In addition to the instances described above, the PHA will make a determination of rent reasonableness at any time after the initial occupancy period if: (1) the PHA determines that the initial rent reasonableness determination was in error or (2) the PHA determines that the information provided by the owner about the unit or other units on the same premises was incorrect. 8‐III.C. HOW COMPARABILITY IS ESTABLISHED Factors to Consider HUD requires PHAs to take into consideration the factors listed below when determining rent comparability. The PHA may use these factors to make upward or downward adjustments to the rents of comparison units when the units are not identical to the HCV‐assisted unit. Location and age Unit size including the number of rooms and square footage of rooms The type of unit including construction type (e.g., single family, duplex, garden, low‐rise, high‐rise) The quality of the units including the quality of the original construction, maintenance and improvements made. Amenities, services, and utilities included in the rent 12.A.b Packet Pg. 1627 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-22 Units that Must Not be Used as Comparables Comparable units must represent unrestricted market rents. Therefore, units that receive some form of federal, state, or local assistance that imposes rent restrictions cannot be considered comparable units. These include units assisted by HUD through any of the following programs: Section 8 project-based assistance, Section 236 and Section 221(d)(3) Below Market Interest Rate (BMIR) projects, HOME or Community Development Block Grant (CDBG) program-assisted units in which the rents are subsidized; units subsidized through federal, state, or l ocal tax credits; units subsidized by the Department of Agriculture rural housing programs, and units that are rent-controlled by local ordinance. [Notice PIH 2002-22, Notice PIH 2005-20, and Notice PIH 2020-19]. Note: Notice PIH 2020-19, issued August 21, 2020, provides further guidance on the issue of what constitutes an assisted unit. Rents Charged for Other Units on the Premises The Request for Tenancy Approval (HUD-52517) requires owners to provide information, on the form itself, about the rent charged for other unassisted comparable units on the premises if the premises include more than 4 units. By accepting the PHA payment each month the owner certifies that the rent is not more than the rent charged for comparable unassisted units on the premises. If asked to do so, the owner must give the PHA information regarding rents charged for other units on the premises. 8-III.D. PHA RENT REASONABLENESS METHODOLOGY How Market Data Is Collected PHA Policy The data will be maintained by bedroom size and market area. Market area is defined as located in the City of Santa Monica. The data, obtained from Rent Control, will be updated on an ongoing basis and rent information for decontrolled units that are more than 12 months old will be eliminated from the database. How Rents Are Determined PHA Policy The rent for a unit proposed for assistance will be compared to the rent charged for three comparable units in the same market area, leased within the last 12 months. The PHA will notify the owner of the rent the PHA can approve based upon its analysis of rents for comparable units. The owner may submit information about other comparable units in the market area. The PHA will confirm the accuracy of the information provided and consider this additional information when making rent 12.A.b Packet Pg. 1628 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-23 determinations. The owner must submit any addition al information within five business days of the PHA’s request for information or the owner’s request to submit information. Rent adjustments are not allowed prior to the end of the first year of the Lease. After that date, rent increases as permitted by the lease are effective with a 60-day notice to the family following PHA approval of the proposed increase. Rent increases shall be timed with a tenant’s annual reexamination. Only one increase in a 12-month period is allowed. Annual Adjustments are established by Santa Monica Rent Control Department annual percentage adjustments only and this allowable increase will be effective October 1 of each year; the PHA does not approve the addition of surcharges or pass through fees. The PHA disapproves rents that are not reasonable. General adjustments are approved on an annual basis if funding is available (This also applies to affordable apartments subject to deed- restricted affordability covenant). Santa Monica laws limit rents on rent-controlled units to the greater of the Payment Standard or the Maximum Allowable Rent under Rent Control. After January 1, 1999, at voluntary vacancy, the requested Maximum Allowable Rent becomes the rent agreed to by the owner and the prospective tenant and delineated in the Request for Lease Approval (RLA). The PHA is required to document Rent Reasonableness before the requested Maximum Allowable Rent becomes the Maximum Allowable Rent for Section 8 purposes. 12.A.b Packet Pg. 1629 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-24 EXHIBIT 8-1: OVERVIEW OF HUD HOUSING QUALITY STANDARDS Note: This document provides an overview of HQS. For more detailed information see the following documents: • 24 CFR 982.401, Housing Quality Standards (HQS) • Housing Choice Voucher Guidebook, Chapter 10. • HUD Housing Inspection Manual for Section 8 Housing • HUD Inspection Form, form HUD-52580 (3/01) and Inspection Checklist, form HUD-52580-A (9/00) Sanitary Facilities The dwelling unit must include sanitary facilities within the unit. The sanitary facilities must be usable in privacy and must be in proper operating condition and adequate for personal cleanliness and disposal of human waste. Food Preparation and Refuse Disposal The dwelling unit must have space and equipment suitable for the family to store, prepare, and serve food in a sanitary manner. Space and Security The dwelling unit must provide adequate space and security for the family. This includes having at least one bedroom or living/sleeping room for each two persons. Thermal Environment The unit must have a safe system for heating the dwelling unit. Air conditioning is not required but if provided must be in proper operating condition. The dwelling unit must not contain unvented room heaters that burn gas, oil, or kerosene. Portable electric room heaters or kitchen stoves with built-in heating units are not acceptable as a primary source of heat for units located in climatic areas where permanent heat systems are required. Illumination and Electricity Each room must have adequate natural or artificial illumination to permit normal indoor activities and to support the health and safety of occupants. The dwelling unit must have sufficient electrical sources so occupants can use essential electrical appliances. Minimum standards are set for different types of rooms. Once the minimum standards are met, the number, type and location of electrical sources are a matter of tenant preference. 12.A.b Packet Pg. 1630 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-25 Structure and Materials The dwelling unit must be structurally sound. Handrails are required when four or more steps (risers) are present, and protective railings are required when p orches, balconies, and stoops are thirty inches or more off the ground. The elevator servicing the unit must be working [if there is one]. Manufactured homes must have proper tie-down devices capable of surviving wind loads common to the area. Interior Air Quality The dwelling unit must be free of air pollutant levels that threaten the occupants’ health. There must be adequate air circulation in the dwelling unit. Bathroom areas must have one openable window or other adequate ventilation. Any sleeping room must have at least one window. If a window was designed to be opened, it must be in proper working ord er. Water Supply The dwelling unit must be served by an approved public or private water supply that is sanitary and free from contamination. Plumbing f ixtures and pipes must be free of leaks and threats to health and safety. Lead-Based Paint Lead-based paint requirements apply to dwelling units built prior to 1978 that are occupied or can be occupied by families with children under six years of age, ex cluding zero bedroom dwellings. Owners must: • Disclose known lead-based paint hazards to prospective tenants before the lease is signed, • provide all prospective families with "Protect Your Family from Lead in Your Home", • Stabilize deteriorated painted surfaces and conduct hazard reduction activities within 30 days when identified by the PHA • Notify tenants each time such an activity is performed • Conduct all work in accordance with HUD safe practices • As part of ongoing maintenance ask each family to repor t deteriorated paint • Maintain covered housing without deteriorated paint if there is a child under six in the family For units occupied by elevated blood lead level (lead poisoned) children under six years of age, an environmental investigation must be conducted (paid for by the PHA). If lead hazards are identified during the environmental investigation, the owner must complete hazard reduction activities within 30 days. 12.A.b Packet Pg. 1631 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-26 See HCV GB p. 10-15 for a detailed description of these requirements. For additional information on lead-based paint requirements see 24 CFR 35, Subparts A, B, M, and R. Access Use and maintenance of the unit must be possible without unauthorized use of other private properties. The building must provide an alternate means of exit in case of fire. Site and Neighborhood The site and neighborhood must be reasonably free from disturbing noises and reverberations, excessive trash or vermin, or other dangers to the health, safety, and general welfare of the occupants. Sanitary Condition The dwelling unit and its equipment must be in sanitary condition and free of vermin and rodent infestation. The unit must have adequate barriers to prevent infestation. Smoke Detectors Smoke detectors must be installed in accordance with and meet the requirem ents of the National Fire Protection Association Standard (NFPA) 74 (or its successor standards). If th e dwelling unit is occupied by any person with a hearing impairment, smoke detectors must have an appropriate alarm system as specified in NFPA 74 (or successor standards). Carbon Monoxide Detectors California Health and Safety Code Section 17926 ET requ ires that owner install a carbon monoxide devise, approved and listed by the State Fire Marshal pursuant to Section 13263 in each existing dwelling unit having a fossil fuel burning heater or appliance, fireplace, or an attached garage. Hazards and Heath/Safety The unit, interior and exterior common areas accessible to the family, the site, and the surrounding neighborhood must be free of hazards to the family's health and safety. 12.A.b Packet Pg. 1632 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-27 EXHIBIT 8-2: SUMMARY OF TENANT PREFERENCE AREAS RELATED TO HOUSING QUALITY Note: This document provides an overview of unit and site characteristics and conditions for which the family determines acceptability. For more detailed information see the following documents: •Housing Choice Voucher Guidebook, Chapter 10. •HUD Housing Inspection Manual for Section 8 Housing •HUD Inspection Form, form HUD-52580 (3/01) and Inspection Checklist, form HUD-52580-A (9/00) Provided the minimum housing quality standards have been met, HUD permits the family to determine whether the unit is acceptable with regard to the following characteristics. •Sanitary Facilities. The family may determine the adequacy of the cosmetic condition and quality of the sanitary facilities, including the size of the lavatory, tub, or shower; the location of the sanitary facilities within the unit; and the adequacy of the water heater. •Food Preparation and Refuse Disposal. The family selects size and type of equipment it finds acceptable. When the family is responsible for supplying cooking appliances, the family may choose to use a microwave oven in place of a conventional oven, stove, or range. When the owner is responsible for providing cooking appliances, the owner may offer a microwave oven in place of an oven, stove, or range only if other subsidized and unsubsidized units on the premises are furnished with microwave ovens only. The adequacy of the amount and type of storage space, the cosmetic conditions of all equip ment, and the size and location of the kitchen are all determined by the family. •Space and Security. The family may determine the adequacy of room sizes and room locations. The family is also responsible for deciding the acceptability of the type of door and window locks. •Energy conservation items. The family may determine whether the amount of insulation, presence of absence of storm doors and windows and other energy conservation items are acceptable. •Illumination and Electricity. The family may determine whether the location and the number of outlets and fixtures (over and above those required to meet HQS standards) are acceptable or if the amount of electrical service is adequate for the use of appliances, computers, or stereo equipment. •Structure and Materials. Families may determine whether minor defects, such as lack of paint, or worn flooring or carpeting will affect the livability of the unit. •Indoor Air. Families may determine whether window and door screens, filters, fans, or other devices for proper ventilation are adequate to meet the family’s needs. However, if screens are present they must be in good condition. 12.A.b Packet Pg. 1633 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 8-28 • Sanitary Conditions. The family determines whether the sanitary conditions in the unit, including minor infestations, are acceptable. • Neighborhood conditions. Families may determine whether neighborhood conditions such as the presence of drug activity, commercial enterprises, and convenience to shopping will affect the livability of the unit. Families have no discretion with respect to lead-based paint standards and carbon monoxide and smoke detectors. 12.A.b Packet Pg. 1634 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 9-1 Chapter 9 GENERAL LEASING POLICIES INTRODUCTION Chapter 9 covers the lease-up process from the family's submission of a Request for Tenancy Approval to execution of the contract. In order for the PHA to assist a family in a particular dwelling unit, or execute a contract with the owner of a dwelling unit, the PHA must determine that all the following program requirements are met: •The unit itself must qualify as an eligible unit [24 CFR 982.305(a)] •The unit must be inspected by the PHA and meet the Housing Quality Standards (HQS) [24 CFR 982.305(a)] •The lease offered by the owner must be approvable and must include the required Tenancy Addendum [24 CFR 982.305(a)] •The rent to be charged by the owner for the unit must be reasonable [24 CFR 982.305(a)] •The owner must be an eligible owner, approvable by the PHA, with no conflicts of interest [24 CFR 982.306] •For families initially leasing a unit only: Where the gross rent of the unit exceeds the applicable payment standard for the family, the share of rent to be paid by the family cannot exceed 40 percent of the family’s monthly adjusted income calculated at the time the RTA is issued [24 CFR 982.305(a)] 9-I.A. TENANT SCREENING The PHA has no liability or responsibility to the owner or other persons for the fami ly’s behavior or suitability for tenancy [24 CFR 982.307(a)(1)]. The PHA may elect to screen applicants for family behavior or suitability for tenancy. See Chapter 3 for a discussion of the PHA’s policies with regard to screening applicant families for program eligibility [24 CFR 982.307(a)(1)]. The owner is responsible for screening and selection of the family to occupy the owner's unit. At or before PHA approval of the tenancy, the PHA must inform the owner that screening and selection for tenancy is the responsibility of the owner [24 CFR 982.307(a)(2)]. The PHA must also inform the owner or manager of their rights and obligations under the Violence Against Women Act of 2013 (VAWA)[24 CFR 5.2005(a)(2)]. 12.A.b Packet Pg. 1635 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 9-2 The PHA must provide the owner with the family's current and prior address (as shown in the PHA records) and the name and address (if known to the PHA) of the landlord at the family's current and prior address. [24 CFR 982.307 (b)(1)]. The PHA is permitted, but not required, to offer the owner other information in the PHA’s possession about the tenancy history or drug trafficking of family members [24 CFR 982.307(b)(2)]. The PHA’s policy on providing information to the owner must be included in the family’s briefing packet [24 CFR 982.307(b)(3)]. The PHA may not disclose to the owner any confidential information provided by the family in response to a PHA request for documentation of domestic violence, dating violence, sexual assault, or stalking except at the written request or with the written consent of the individual providing the documentation [42 U.S.C. § 14043e-11(c)(4); 24 CFR 5.2007(b)(4)]. PHA Policy The PHA will not screen applicants for family behavior or suitability for tenancy. The PHA will not provide additional screening information to the ow ner. The PHA will provide the owner with the family’s current and prior address and the name and address of the landlord at the family’s current and prior address only if requested by the owner. 9-I.B. REQUESTING TENANCY APPROVAL [Form HUD-52517] After the family is issued a voucher, the family must locate an eligible unit, with an owner or landlord willing to participate in the voucher program. Once a family finds a suitable unit and the owner is willing to lease the unit under the program, the owner and the family must request the PHA to approve the assisted tenancy in the selected unit. The owner and the family must submit two documents to the PHA: • Completed Request for Tenancy Approval (RTA) – Form HUD-52517 • Copy of the proposed lease, including the HUD-prescribed Tenancy Addendum – Form HUD- 52641-A The RTA contains important information about the rental unit selected by the family, including the unit address, number of bedrooms, structure type, year constructed, utilities included in the rent, and the requested beginning date of the lease, necessary for the PHA to determine whether to approve the assisted tenancy in this unit. Owners must certify to the most recent amount of rent charged for the unit and provide an explanation for any difference between the prior rent and the proposed rent. 12.A.b Packet Pg. 1636 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 9-3 Owners must certify that they are not the parent, child, grandparent, grandchild, sister or brother of any member of the family, unless the PHA has granted a request for reasonable accommodation for a person with disabilities who is a member of the tenant household. For units constructed prior to 1978, owners must either 1) certify that the unit, common areas, and exterior have been found to be free of lead -based paint by a certified inspector; or 2) attach a lead-based paint disclosure statement. Both the RTA and the proposed lease must be submitted no later than the expiration date stated on the voucher. [HCV GB p.8-15]. PHA Policy The RTA must be signed by both the family and the owner. The owner may submit the RTA on behalf of the family. Completed RTA (including the proposed dwelling lease) must be submitted as hard copies, in-person, by mail, or by fax. The family may not submit, and the PHA will not process, more than one (1) RTA at a time. When the family submits the RTA the PHA will review the RTA for completeness. If the RTA is incomplete (including lack of signature by family, owner, or both), or if the dwelling lease is not submitted with the RTA, the PHA will notify the family and the owner of the deficiencies. Missing information and/or missing documents will only be accepted as hard copies, in-person, by mail, or by fax. The PHA will not accept missing information over the phone. When the family submits the RTA and proposed lease, the PHA will also review the terms of the RTA for consistency with the terms of the proposed lease. If the terms of the RTA are not consistent with the terms of the proposed lease, the PHA will notify the family and the owner of the discrepancies. Corrections to the terms of the RTA and/or the proposed lease will only be accepted as hard copies, in-person, by mail or by fax. The PHA will not accept corrections by phone. Because of the time sensitive nature of the tenancy approval process, the PHA will attempt to communicate with the owner and family by phone, fax, or email. The PHA will use mail when the parties cannot be reached by phone, fax, or email. 12.A.b Packet Pg. 1637 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 9-4 9-I.C. OWNER PARTICIPATION The PHA does not formally approve an owner to participate in the HCV program. However, there are a number of criteria where the PHA may deny approval of an assisted tenancy based on past owner behavior, conflict of interest, or other owner -related issues. There are also criteria for which the PHA must disapprove an owner. No owner has a right to participate in the HCV program [24 CFR 982.306(e)] See Chapter 13 for a full discussion of owner qualification to participate in the HCV program. 9-I.D. ELIGIBLE UNITS There are a number of criteria that a dwelling unit must meet in order to be eligible for assistance under the voucher program. Generally, a voucher-holder family may choose any available rental dwelling unit on the market in the PHA’s jurisdiction. This includes the dwelling unit they are currently occupying. Ineligible Units [24 CFR 982.352(a)] The PHA may not assist a unit under the voucher program if the unit is a public housing or Indian housing unit; a unit receiving project-based assistance under section 8 of the 1937 Act (42 U.S.C. 1437f); nursing homes, board and care homes, or facilities providing continual psychiatric, medical, or nursing services; college or other school dormitories; units on the grounds of penal, reformatory, medical, mental, and similar public or private institutions; a unit occupied by its owner or by a person with any in terest in the unit. PHA-Owned Units [24 CFR 982.352(b)] Otherwise eligible units that are owned or substantially controlled by the PHA issuing the voucher may also be leased in the voucher program. In order for a PHA-owned unit to be leased under the voucher program, the unit must not be ineligible housing and the PHA must inform the family, both orally and in writing, that the family has the right to select any eligible unit available for lease and that the family is free to select a PHA-owned unit without any pressure or steering by the PHA. PHA Policy The PHA does not have any eligible PHA-owned units available for leasing under the voucher program. 12.A.b Packet Pg. 1638 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 9-5 Assisted Living Facilities [Notice PIH 2012-40 (HA)] In accordance with the definition under Section 232(b) of the National Housing Act (12 USC 1715w(b)), an assisted living facility is a public facility, proprietary facility, or facility of a private nonprofit corporation that: (1) is licensed and regulated by the State (or if there is no State law providing for such licensing and regulation b y the State, by the municipality or other political subdivision in which the facility is located); (2) makes available to residents supportive services to assist the residents in carrying out activities of daily living, such as bathing, dressing, eating, getting in and out of bed or chairs, walking, going outdoors, using the toilet, laundry, home management, preparing meals, shopping for personal items, obtaining and taking medication, managing money, using the telephone, or performing light or heavy housework, and which may make available to residents home health care services, such as nursing and therapy; and (3) provides separate dwelling units for residents, each of which may contain a full kitchen and bathroom, and which includes common rooms and other facilities appropriate for the provision of supportive services to the residents of the facility. Assisted living facilities may be referred to as residential care facilities, adult care facilities, congregate care facilities or group homes as long as they meet the requirements noted above. Assisting living facilities are designed for residents who have the physical ability to live independently but need assistance with some activities of daily living such as personal care, transportation, meals, laundry, medication monitoring, security and housekeeping. A person residing in an assisted living unit must not require continual medical or nursing care. PHAs are allowed to require a family to pay more than 40 percent of its monthly adjusted income for a unit in an assisted living facility if the amount or percentage is reasonable given the services and amenities provided by the assisted living facility and as the Secretary deems appropriate. A PHA may submit a request for a waiver of 24 CFR § 982.508 and § 982.305(a)(5) through the waiver process under 24 CFR § 5.110 to require a family to pay more than 40 percent of its monthly adjusted income for an assisted unit, in order to allow the family to lease an assisted living unit that would otherwise be disapproved because the family share would exceed 40 percent of monthly adjusted income. HUD will review such requests on a case-by-case basis and may grant the waiver if HUD determines the request demonstrates good cause. HUD would expect that such requests would not result in the family share exceeding 70 percent of the family’s adjusted income. Special Housing Types [24 CFR 982 Subpart M] HUD regulations permit, but do not generally require, the PHA to permit families to use voucher assistance in a number of special housing types in accordance with the specific requirements applicable to those programs. These special housing types include single room occupancy (SRO) housing, congregate housing, group home, shared housing, manufactured home space (where the family owns the manufactured home and leases only the space), 12.A.b Packet Pg. 1639 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 9-6 cooperative housing and homeownership option. See Chapter 15 for specific information and policies on any of these housing types that the PHA has chosen to allow. The regulations do require the PHA to permit use of any special housing type if needed as a reasonable accommodation so that the program is readily accessible to and usab le by persons with disabilities. Duplicative Assistance [24 CFR 982.352(c)] A family may not receive the benefit of tenant-based assistance while receiving the benefit of any of the following forms of other housing subsidy, for the same unit or for a different unit : • Public or Indian housing assistance; • Other Section 8 assistance (including other tenant- or project based assistance); • Assistance under former Section 23 of the United States Housing Act of 1937 (before amendment by the Housing and Community Development Act of 1974); • Section 101 rent supplements; • Section 236 rental assistance payments; • Tenant-based assistance under the HOME Program; • Rental assistance payments under Section 521 of the Housing Act of 1949 (a program of the Rural Development Administration); • Any local or State rent subsidy; • Section 202 supportive housing for the elderly; • Section 811 supportive housing for persons with disabilities; (11) Section 202 projects for non-elderly persons with disabilities (Section 162 assistance); or • Any other duplicative federal, State, or local housing subsidy, as determined by HUD . For this purpose, 'housing subsidy' does not include the housing component of a welfare payment, a social security payment received by the family, or a rent reduction because of a tax credit. Housing Quality Standards (HQS) [24 CFR 982.305 and 24 CFR 982.401] In order to be eligible, the dwelling unit must be in decent, safe and sanitary condition. This determination is made using HUD’s Housing Quality Standards (HQS) and/or equivalent state or local standards approved by HUD. See Chapter 8 for a full discussion of the HQS standards, as well as the process for HQS inspection at initial lease-up. 12.A.b Packet Pg. 1640 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 9-7 Unit Size In order to be eligible, the dwelling unit must be appropriate for the number of persons in the household. A family must be allowed to lease an otherwise acceptable dwelling unit with fewer bedrooms than the number of bedrooms stated on the voucher issued to the family, provided the unit meets the applicable HQS space requirements [24 CFR 982.402(d)]. The family must be allowed to lease an otherwise acceptable dwelling unit with more bedrooms than the number of bedrooms stated on the voucher issued to the family. See Chapter 5 for a full discussion of subsidy standards. Rent Reasonableness [24 CFR 982.305 and 24 CFR 982.507] In order to be eligible, the dwelling unit must have a reasonable rent. The rent must be reasonable in relation to comparable unassisted units in the area and must not be in excess of rents charged by the owner for comparable, unassisted units on the premises. See Chapter 8 for a full discussion of rent reasonableness and the rent reasonableness determination process. Rent Burden [24 CFR 982.508] Where a family is initially leasing a unit and the gross rent of the unit exceeds the applicable payment standard for the family, the family share cannot exceed 40 percent of the family’s adjusted monthly income as determined at the time of the RTA issuance. The term “family share” refers to the amount the family pays toward rent and utilities. The gross rent for the unit minus the total housing assistance payment (HAP) for the unit equals the family share. See Chapter 6 for a discussion of calculation of gross rent, the use of payment standards, and calculation of family income, family share of rent and HAP. 9-I.E. LEASE AND TENANCY ADDENDUM The family and the owner must execute a written dwelling lease agreement for the assisted unit. This written lease is a contract between the tenant family and the owner; the PHA is not a party to the contract. The tenant must have legal capacity to enter a lease under State and local law. 'Legal capacity' means that the tenant is bound by the terms of the lease and may enforce the terms of the lease against the owner [24 CFR 982.308(a)] Lease Form and Tenancy Addendum [24 CFR 982.308] If the owner uses a standard lease form for rental to unassisted tenants in the locality or the premises, the lease must be in such standard form. If the owner does not use a standard lease form for rental to unassisted tenants, the owner may use another form of lease. The contract prescribed by HUD contains the owner's certification that if the owner uses a standard lease 12.A.b Packet Pg. 1641 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 9-8 form for rental to unassisted tenants, the lease for the assisted tenants is in such standard form. All provisions in the HUD-required Tenancy Addendum must be added word-for-word to the owner's standard lease form. The Tenancy Addendum includes the HUD requirements for the program tenancy. Because it is a part of the lease, the tenant shall have the right to enforce the Tenancy Addendum against the owner. If there is a conflict between the owner’s lease and the Tenancy Addendum, and the terms of the Tenancy Addendum shall prevail over any other provisions of the lease. PHA Policy The PHA does not provide a model or standard dwelling lease for owners to use in the HCV program. Lease Information [24 CFR 982.308(d)] The assisted dwelling lease must contain all of the required information as listed below : • The names of the owner and the tenant: • The unit rented (address, apartment number, and any other informat ion needed to identify the contract unit) • The term of the lease (initial term and any provisions for renewal) • The amount of the monthly rent to owner • A specification of what utilities and appliances are to be supplied by the owner, and what utilities and appliances are to be supplied by the family Term of Assisted Tenancy The initial term of the assisted dwelling lease must be for at least one year [24 CFR 982.309]. The initial lease term is also stated in the contract. The HUD program regulations permit the PHA to approve a shorter initial lease term if certain conditions are met. PHA Policy The PHA may approve an initial lease term of less than one (1) year. During the initial term of the lease, the owner may not raise the rent to owner [24 CFR 982.309]. Any provisions for renewal of the dwelling lease will be stated in the dwelling lease [HCV Guidebook, pg. 8-22]. There are no HUD requirements regarding any renewal extension terms, except that they must be stated in the dwelling lease if they exist. 12.A.b Packet Pg. 1642 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 9-9 The PHA may execute the contract even if there is less than one year remaining from the beginning of the initial lease term to the end of the last expiring funding increment under the consolidated ACC. [24 CFR 982.309(b)]. Security Deposit [24 CFR 982.313 (a) and (b)] The owner may collect a security deposit from the tenant. The PHA may prohibit security deposits in excess of private market practice, or in excess of amounts charged by the owner to unassisted tenants. However, if the PHA chooses to do so, langu age to this effect must be added to Part A of the contract [Form HUD-52641]. PHA Policy The PHA will allow the owner to collect any security deposit amount the owner determines is appropriate and is consistent with state regulations. Therefore, no modifications to the contract will be necessary. Separate Non-Lease Agreements between Owner and Tenant Owners may not demand or accept any rent payment from the family in excess of the rent to the owner as approved by the PHA minus the PHA’s housing assistance payments to the owner [24 CFR 982.451(b)(4)]. The owner may not charge the tenant extra amounts for items customarily included in rent in the locality or provided at no additional cost to unsubsidized tenants in the premises [24 CFR 982.510(c)]. PHA Policy The PHA permits owners and families to execute separate, non-lease agreements for services, appliances (other than range and refrigerator) and other items that are not included in the lease. Any items, appliances, or other services that are customarily pro vided to unassisted families as part of the dwelling lease with those families, or are permanently installed in the dwelling unit must be included in the dwelling lease for the assisted family. These items, appliances or services cannot be placed under a separate non-lease agreement between the owner and family. Side payments for additional rent, or for items, appliances or services customarily provided to unassisted families as part of the dwelling lease for those families, are prohibited. Any items, appliances, or other services that are not customarily provided to unassisted families as part of the dwelling lease with those families, are not permanently installed in the dwelling unit and where the family has the sole option of not utilizing the item, appliance or service, may be included in a separate non-lease agreement between the owner and the family. 12.A.b Packet Pg. 1643 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 9-10 The family is not liable and cannot be held responsible under the terms of the assisted dwelling lease for any charges pursuant to a separate non -lease agreement between the owner and the family. Non-payment of any charges pursuant to a separate non-lease agreement between the owner and the family cannot be a cause for eviction or termination of tenancy under the terms of the assisted dwelling lease. Separate non-lease agreements that involve additional items, appliances or other services may be considered amenities offered by the owner and may be taken into consideration when determining the reasonableness of the rent for the property. PHA Review of Lease The PHA will review the dwelling lease for compliance with all applicable requirements. PHA Policy If the dwelling lease is incomplete or incorrect, the PHA will notify the family and the owner of the deficiencies. Missing and corrected lease information will only be accepted as hard copies, in-person, by mail, or by fax. The PHA will not accept missing and corrected information over the phone HOME Program: The PHA will review the lease to make certain it does not contain any of the following prohibited lease terms (24 CFR 92.253 (b)): • Agreement by the tenant to be sued, to admit guilt or to a judgment in favor of the owner in a lawsuit brought in connection with the lease. • Agreement by the tenant that the owner may take, hold or sell personal property of household members without notice to the tenant and a court decision on the rights of the parties. This prohibition, however, does not apply to an agreement by the tenant concerning disposition of personal property remaining in the housing unit after the tenant has moved out of the unit. In that case, the owner may dispose of this personal property in accordance with state law. • Agreement by the tenant not to hold the owner or the owner’s agents legally responsible for any action or the failure to act, whether intentional or negligent. • Agreement of the tenant that the owner may institute a lawsuit without notice to the tenant. • Agreement by the tenant that the owner may evict the tenant or household members without instituting a civil court proceeding in which the tenant has the opportunity to present a defense or before a court decision on the rights of the parties. • Agreement by the tenant to waive any right to a trial by jury. 12.A.b Packet Pg. 1644 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 9-11 • Agreement by the tenant to waive the tenant’s right to appeal or to otherwise challenge in court a decision in connection with the lease. • Agreement by the tenant to pay attorney fees or other legal costs even if the tenant wins in a court proceeding by the owner against the tenant. The tenant, however, may be obligated to pay costs if the tenant loses. Because the initial leasing process is time-sensitive, the PHA will attempt to communicate with the owner and family by phone, fax, or email. The PHA will use mail when the parties can’t be reached by phone, fax, or email. The PHA is permitted, but is not required, to review the lease to determine if the lease complies with State and local law and is permitted to decline to approve the tenancy if the PHA determines that the lease does not comply with State or local law [24 CFR 982.308(c)] PHA Policy The PHA will not review the owner’s lease for compliance with state/local law, unless the HOME program funds the voucher. 9-I.F. TENANCY APPROVAL [24 CFR 982.305] After receiving the family's Request for Tenancy Approval, with proposed dwelling lease, the PHA must promptly notify the family and owner whether the assisted tenancy is approved. Prior to approving the assisted tenancy and execution of a contract, the PHA must ensure that all required actions and determinations; discussed in Part I of this chapter have been completed. These actions include ensuring that the unit is eligible; the unit has been inspected by the PHA and meets the Housing Quality Standards (HQS); the lease offered by the owner is approvable and includes the required Tenancy Addendum; the rent to be charged by the owner for the unit must is reasonable; where the family is initially leasing a unit and the gross rent of the unit exceeds the applicable payment standard for the family, the share of rent to be paid by the family does not exceed 40 percent of the family’s monthly adjusted income [24 CFR 982.305(a)]; the owner is an eligible owner, not disapproved by the PHA, with no conflicts of interest [24 CFR 982.306]; the family and the owner have executed the lease, including the Tenancy Addendum, and the lead-based paint disclosure information [24 CFR 982.305(b)]. PHA Policy The PHA will complete its determination within 10 business days of receiving all required information. If the terms of the RTA/proposed lease are changed for any reason, including but not limited to negotiation with the PHA, the PHA will obtain corrected copies of the RTA and proposed lease, signed by the family and the owner. 12.A.b Packet Pg. 1645 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 9-12 Corrections to the RTA/proposed lease will only be accepted as hard copies, in - person, by mail, or by fax. The PHA will not accept corrections over the phone. If the PHA determines that the tenancy cannot be approved for any reason, the owner and the family will be notified in writing and given the opportunity to address any reasons for disapproval. The PHA will instruct the owner and family of the steps that are necessary to obtain approval of the tenancy. Where the tenancy is not approvable because the unit is not approvable, the family must continue to search for eligible housing within the timeframe of the issued voucher. If the tenancy is not approvable due to rent affordability or rent reasonableness, the tenant may attempt to negotiate the rent with the owner. At the request of the family, the PHA will assist the tenant in negotiating a reasonable rent with the owner in accordance with federal regulations [42 U.S.C. § 1437(f)(o)(10)(B)]. If a new, approvable rent is negotiated, the tenancy will be approved. If the owner is not willing to negotiate an approvable rent, the family must continue to search for eligible housing within the timeframe of the issued voucher. If the unit passes the PHA’s initial inspection but the tenancy is cancelled by the family or owner, the PHA need not reinspect the unit if an RTA is submitted by another family and the initial inspection is less than sixty (60) days old. 9-I.G. HAP CONTRACT EXECUTION [24 CFR 982.305] The contract is a written agreement between the PHA and the owner of the dwelling unit. Under the HAP contract, the PHA agrees to make housing assistance payments to the owner on behalf of the family, and the owner agrees to comply with all program requirements as stated in the HAP contract. The contract form is prescribed by HUD. If the PHA has given approval for the family of the assisted tenancy, the owner and the PHA must execute the contract. The term of the contract must be the same as the term of the lease [24 CFR 982.451(a)(2)]. The PHA is permitted to execute a contract even if the funding currently available does not extend for the full term of the HAP contract. The PHA must make a best effort to ensure that the contract is executed before the beginning of the lease term. Regardless, the HAP contract must be executed no later than 60 calendar days from the beginning of the lease term. The PHA may not pay any housing assistance payment to the owner until the contract has been executed. If the contract is executed during the period of 60 calendar days from the beginning of the lease term, the PHA will pay housing assistance payments afte r execution of the contract 12.A.b Packet Pg. 1646 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 9-13 (in accordance with the terms of the HAP contract), to cover the portion of the lease term before execution of the HAP contract (a maximum of 60 days). Any contract executed after the 60-day period is void, and the PHA may not pay any housing assistance payment to the owner. PHA Policy Owners who have not previously participated in the program will be offered the opportunity to attend a meeting with the PHA in which the terms of the Tenancy Addendum and the contract will be explained. The owner and the assisted family will execute the dwelling lease and the owner must provide a copy to the PHA. The PHA will ensure that both the owner and the assisted family receive copies of the dwelling lease. The owner and the PHA will execute the contract. The PHA will not execute the contract until the owner has submitted IRS form W-9 and the Direct Deposit form. The PHA will ensure that the owner receives a copy of the executed contract. As required under VAWA 2013, once the HAP contract and lease have been executed and the family has been admitted to the program, the PHA will notify families of their rights under VAWA by providing all families with a copy of the domestic violence certification form (HUD-5382) as well as the VAWA notice of occupancy rights (form HUD-5380). See Chapter 13 for a discussion of the contract and contract provisions. 9-I.H. CHANGES IN LEASE OR RENT [24 CFR 982.308] If the tenant and the owner agree to any changes in the lease, such changes must be in writing, and the owner must immediately give the PHA a copy of such changes. The lease, including any changes, must remain in accordance with the requirements of this chapter. Generally, PHA approval of tenancy and execution of a new contract are not required for changes in the lease. However, under certain circumstances, the execution of a new lease and contract are required. These circumstances include: • Changes in lease requirements governing tenant or owner responsibilities for utilities or appliances • Changes in lease provisions governing the term of the lease • The family moves to a new unit, even if the unit is in the same building or complex In these cases, if the assistance is to continue, the family must submit a new Request for Tenancy Approval (RTA) along with a new dwelling lease containing the proposed terms. A new tenancy must then be approved in accordance with thi s chapter. 12.A.b Packet Pg. 1647 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 9-14 Where the owner is changing the amount of the rent to owner, the owner must notify the PHA at least 60 days before any such changes go into effect [24 CFR 982.308(g)(4)]. The PHA will agree to such an increase only if the amount of the rent to owner is considered reasonable according to the rent reasonableness standards discussed in Chapter 8 , the program permits the increase, and no increase has been granted in the previous 12-month period. If the requested rent is not found to be reasonable, the owner must either reduce the requested rent increase, or terminate the tenancy in accordance with the terms of the lease. No rent increase is permitted during the initial term of the lease [24 CFR 982.309(a)(3)]. PHA Policy Where the owner is requesting a rent increase, the PHA will determine whether the requested increase is reasonable within 15 business days of receiving the request from the owner. The owner will be notified of the determination in writing. Rent increases will go into effect on the first of the month following the 60-day period after the owner notifies the PHA of the rent change or on the date specified by the owner, whichever is later. 12.A.b Packet Pg. 1648 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-1 Chapter 10 MOVING WITH CONTINUED ASSISTANCE AND PORTABILITY INTRODUCTION Freedom of housing choice is a hallmark of the Section 8 Housing Choice Voucher (HCV) program. In general, HUD regulations impose few restrictions on where families may live or move with HCV assistance. This chapter sets forth HUD regulations and PHA policies governing moves within or outside the PHA’s jurisdiction in two parts: Part I: Moving with Continued Assistance. This part covers the general rules that apply to all moves by a family assisted under the PHA’s HCV program, whether the family moves to another unit within the PHA’s jurisdiction or to a unit outside the PHA’s jurisdiction under portability. Part II: Portability. This part covers the special rules that apply to moves by a family under portability, whether the family moves out of or into the PHA’s jurisdiction. This part also covers the special responsibilities that the PHA has under portability regulations and procedures. 12.A.b Packet Pg. 1649 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-2 PART I: MOVING WITH CONTINUED ASSISTANCE 10-I.A. ALLOWABLE MOVES HUD lists six regulatory conditions under which an assisted family is allowed to move to a new unit with continued assistance. Permission to move is subject to the restrictions set forth in section 10-I.B. • The family has a right to terminate the lease on notice to the owner (for the owner’s breach or otherwise) and has given a notice of termination to the owner in accordance with the lease [24 CFR 982.354(b)(3)]. If the family terminates the lease on notice to the owner, the family must give the PHA a copy of the notice at the same time [24 CFR 982.354(d)(1)]. • The lease for the family’s unit has been terminated by mutual agreement of the owner and the family [24 CFR 982.354(b)(1)(ii)]. PHA Policy If the family and the owner mutually agree to terminate the lease for the family’s unit, the family must give the PHA a copy of the termination agreement. • The owner has given the family a notice to vacate, has commenced an action to evict the family, or has obtained a court judgment or other process allowing the owner to evict the family [24 CFR 982.354(b)(2)]. The family must give the PHA a copy of any owner eviction notice [24 CFR 982.551(g)]. • The family or a member of the family is or has been the victim of domestic violence, dating violence, sexual assault, or stalking and the move is needed to protect the health or safety of the family or family member [24 CFR 982.354(b)(4)]. This condition applies even when the family has moved out of its unit in violation of the lease, with or with out prior notification to the PHA, if the family or family member who is the victim reasonably believed that they were imminently threatened by harm from further violence if they remained in the unit [24 CFR 982.354(b)(4), 24 CFR 982.353(b)]. The PHA must adopt an emergency transfer plan as required by regulations at 24 CFR 5.2007(e). PHA Policy If a family requests permission to move with continued assistance for an external transfer to another covered housing program operated by the PHA based on a claim that the move is necessary to protect the health or safety of a family member who is or has been the victim of domestic violence, dating violence, sexual assault, or stalking, the PHA will request that the resident request the emergency transfer using form HUD- 5383, and the PHA will request documentation in accordance with section 16-IX.D of this plan. The PHA reserves the right to waive the documentation requirement if it determines that a statement or other corroborating evidence from the family o r family member will suffice. In such cases the PHA will document the waiver in the family’s file. 12.A.b Packet Pg. 1650 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-3 The PHA may choose to provide a voucher to facilitate an emergency transfer of the victim without first terminating the assistance of the perpetrator. Before granting an emergency transfer, the PHA will ensure the victim is eligible to receive continued assistance based on the citizenship or immigration status of the victim. The PHA has adopted an emergency transfer plan, which is included as Exhibit 16 -3 to this plan and discusses external transfers to other covered housing programs . • The PHA has terminated the HAP contract for the family’s unit for the owner’s breach [24 CFR 982.354(b)(1)(i)]. • The PHA determines that the family’s current unit does not meet the HQS space standards because of an increase in family size or a change in family composition . In such cases, the PHA must issue the family a new voucher, and the family and PHA must try to find an acceptable unit within 60 days. The PHA should make every effort to accommodate the family as Section 8 units are difficult to secure in the City of Santa Monica. If an acceptable unit is available for the family, the PHA must terminate the HAP contract for the family’s old unit in accordance with the HAP contract terms and must notify both the family and the owner of the termination. The HAP contract terminates at the end of the calendar month that follows the calendar month in which the PHA gives notice to the owner. [24 CFR 982.403(a) and (c)] 10-I.B. RESTRICTIONS ON MOVES A family’s right to move is generally contingent upon the family’s compliance with program requirements [24 CFR 982.1(b)(2)]. HUD specifies two conditions under which a PHA may deny a family permission to move and two ways in which a PHA may r estrict moves by a family. Denial of Moves HUD regulations permit the PHA to deny a family permission to move under the following conditions: Insufficient Funding The PHA may deny a family permission to move either within or outside the PHA’s jurisdiction if the PHA does not have sufficient funding for continued assistance [24 CFR 982.354(e)(1)]. However, Notices PIH 2016-09 significantly restrict the ability of PHAs to deny permission to move due to insufficient funding and places further requirements on PHAs regarding moves denied due to lack of funding. The requirements found in this notice are mandatory. 12.A.b Packet Pg. 1651 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-4 PHA Policy The PHA will deny a family permission to move on grounds that the PHA does not have sufficient funding for continued assistance if (a) the move is initiated by the family, not the owner or the PHA; (b) the PHA can demonstrate that the move will, in fact, result in higher subsidy costs;(c) the PHA can demonstrate, in accordance with the policies in Part VIII of Chapter 16, that it does not have sufficient funding in its annual budget to accommodate the higher subsidy costs; and (d) for portability moves, the receiving PHA is not absorbing the voucher. If the PHA does not have sufficient funding for continued assistance, but the family must move from their unit (e.g., the unit failed HQS), the family may move to a higher cost unit if the move is within the PHA’s jurisdiction. The PHA, however, will not allow the family to move under portability in this situation if the family wishes to move to a higher cost area. For both moves within the PHA’s jurisdiction and outside under portability, the PHA will not deny a move due to insufficient funding if the PHA previously approved the move and subsequently experienced a funding shortfall if the family cannot remain in their current unit. The PHA will rescind the voucher in this situation if the family will be allowed to remain in their current unit. The PHA will create a list of families whose moves have been denied due to insufficient funding. The PHA will keep the family’s request open indefinitely, and when funds become available, the families on this list will take precedence over families on the waiting list. The PHA will use the same procedures for notifying families with open requests to move when funds become available as it uses for notifying families on the waiting list (see section 4-III.D). The PHA will inform the family of its policy regarding moved denied due to insufficient funding in a letter to the family at the time the move is denied. When a request to move is due to a disability of a family member, even if a family might otherwise be restricted from moving (e.g., under a “one move per year” policy or because of insufficient funding), the PHA will consider requests for reasonable accommodations in accordance with HUD’s regulations at 24 CFR 100.204, 24 CFR 8.33, and 28 CFR 35.130, including reasonable accommodations relating to moves, that are necessary for a qualified individual with a disability to benefit from the program. In cases where the limitation on portability is compelled by regulation, the PHA will first assess whether the requested accommodation would impose an undue financial and administrative burden. If it is not, the PHA will forward the request to HUD so the relevant regulatory provision can be waived by the Assistant Secretary. 12.A.b Packet Pg. 1652 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-5 Grounds for Denial or Termination of Assistance The PHA may deny a family permission to move if it has grounds for denying or terminating the family’s assistance [24 CFR 982.354(e)(2)]. PHA Policy If the PHA has grounds for denying or terminating a family’s assistance, the PHA will act on those grounds in accordance with the regulations and policies set forth in Chapter s 3 and 12, respectively. In general, it will not deny a family permission to move for this reason; i.e., holding the family accountable for its action or failure to act without taking the more drastic step of denying or terminating the family’s assistance; however, it retains the discretion to do so under special circumstances. If termination proceedings have commenced the participant may not be considered a tenant in good standing and may not move with assistance. The PHA should not accept or act upon any RTAs submitted by the participant while an appeal is pending. Restrictions on Elective Moves [24 CFR 982.354(c)] HUD regulations permit the PHA to prohibit any elective move by a participant family during the family’s initial lease term. They also permit the PHA to prohibit more than one elective move by a participant family during any 12-month period. However, such prohibitions, if adopted, do not apply when the family or a member of the family is or has been the victim of domestic violence, dating violence, sexual assault, or stalking and the move is needed to protect the health or safety of the family or family member. (For the policy on documentation of abuse, see section 10-I.A.) In addition, the PHA may not establish a policy permitting moves only at reexamination [Notice PIH 2016-09]. PHA Policy The PHA will deny a family permission to make an elective move during the family’s initial lease term. This policy applies to moves within or outside of the PHA’s jurisdiction under portability. The PHA will also deny a family permission to make more than one elective move during any 12-month period. This policy applies to all assisted families residing in the PHA’s jurisdiction. If the family moves without prior approval from the PHA, the family will lose their rental assistance and be responsible for the full rent at the new unit . The PHA will deny permission to move if the family has violated a family obligation, or is not current on an executed repayment agreement with the PHA. The PHA will consider exceptions to these policies for the following reasons: to protect the health or safety of a family member (e.g., lead-based paint hazards, domestic violence, and witness protection programs), to accommodate a change in family 12.A.b Packet Pg. 1653 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-6 circumstances (e.g., new employment, school attendance in a distant area), or to address an emergency situation over which a family has no control. In addition, the PHA will allow exceptions to these policies for purposes of reasonable accommodation of a family member who is a person with disabilities (see Chapter 2). 10-I.C. MOVING PROCESS Notification If a family wishes to move to a new unit, the family must notify the PHA and the owner before moving out of the old unit or terminating the lease on notice to the owner [24 CFR 982.354(d)(2)]. If the family wishes to move to a unit outside the PHA’s jurisdiction under portability, the notice to the PHA must specify the area where the family wishes to move [24 CFR 982.354(d)(2)]. The notices must be in writing [24 CFR 982.5]. Approval PHA Policy Upon receipt of a family’s notification that it wishes to move, the PHA will determine whether the move is approvable in accordance with the regulations and policies set forth in sections 10-I.A and 10-I.B. The PHA will notify the family orally or in writing of its determination within 15 business days following receipt of the family’s notification. Reexamination of Family Income and Composition PHA Policy For families approved to move to a new unit within the PHA’s jurisdiction, the PHA will perform a new annual reexamination in accordance with the policies set forth in Chapter 11 of this plan. When a family moves to a new unit and thereby establishes a new contract anniversary date, if the family’s latest annual reexamination took effect within 4 months prior to the new contract anniversary, the PHA may simply ascertain whether there has been any change in the family’s adjusted income since the last annual reexamination and, if so, obtain acceptable verification of only the change. The PHA must then use any new verified information together with information from the last annual reexamination to re-determine the family share of rent and the subsidy payment. [SEMAP Final Rule, 63 Fed. Reg. 48552-48553] (See Chapter 7 for Verification Requirements) For families moving into or families approved to move out of the PHA’s jurisdiction under portability, the PHA will follow the policies set forth in Part II of this chapter. 12.A.b Packet Pg. 1654 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-7 Voucher Issuance and Briefing PHA Policy For families approved to move to a new unit within the PHA’s jurisdiction, the PHA will issue a new voucher within 15 business days of the PHA’s written approval to move. The family must attend a voucher issuance appointment. The PHA will follow the policies set forth in Chapter 5 on voucher term, extension, and expiration. If a family does not locate a new unit within the term of the voucher and any extensions, the family may remain in its current unit with continued voucher assistance if the owner agrees and the PHA approves. Otherwise, the family will lose its assistance. For families moving into or families approved to move out of the PHA’s jurisdiction under portability, the PHA will follow the policies set forth in Part II of this chapter. Housing Assistance Payments [24 CFR 982.311(d)] When a family moves out of an assisted unit, the PHA may not make any housing assistance payment to the owner for any month after the month the family moves out. The owner may keep the housing assistance payment for the month when the family moves out of the unit. PHA Policy If the family vacates the assisted unit on the 1st day of the month, the owner will not be entitled to keep the housing assistance payment for that entire month. If a participant family moves from an assisted unit with continued tenant-based assistance, the term of the assisted lease for the new assisted unit may begin during the month the family moves out of the first assisted unit. Overlap of the last housing assistance payment (for the month when the family moves out of the old unit) and the first assistance payment for the new unit, is not considered to constitute a duplicative housing subsidy. 12.A.b Packet Pg. 1655 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-8 PART II: PORTABILITY 10-II.A. OVERVIEW Within the limitations of the regulations and this p lan, a participant family or an applicant family that has been issued a voucher has the right to use tenant-based voucher assistance to lease a unit anywhere in the United States providing that the unit is located within the jurisdiction of a PHA administering a tenant-based voucher program [24 CFR 982.353(b)]. The process by which a family obtains a voucher from one PHA and uses it to lease a unit in the jurisdiction of another PHA is known as portability. The PHA that issues the voucher is called the initial PHA. The PHA that has jurisdiction in the area to which the family wants to move is called the receiving PHA. The receiving PHA has the option of administering the family’s voucher for the initial PHA or absorbing the family into its own program. Under the first option, the receiving PHA provides all housing services for the family and bills the initial PHA for the family’s housing assistance payments and the fees for administering the family’s voucher. Under the second option, the receiving PHA pays for the family’s assistance with its own program funds, and the initial PHA has no further relationship with the family. The initial PHA must contact the receiving PHA via email or other confirmed delivery method to determine whether the receiving PHA will administer or absorb the initial PHA’s voucher. Based on the receiving PHA’s response, the initial PHA must determine whether they will approve or deny the portability request [Notice PIH 2016-09]. PHAs commonly act as both the initial and receiving PHA because families may move into or out of their jurisdiction under portability. Each role involves different responsibilities. The PHA will follow the rules and policies in section 10-II.B when it is acting as the initial PHA for a family. It will follow the rules and policies in section 10-II.C when it is acting as the receiving PHA for a family. In administering portability, the initial PHA and the receiving PHA must comply with financial procedures required by HUD, including the use of HUD -required forms [24 CRF 982.355(e)(5)]. PHAs must also comply with billing and payment deadlines. HUD may reduce an administrative fee to an initial or receiving PHA if the PHA does not comply with HUD portability requirements [24 CFR 982.355(e)(7). 10-II.B. INITIAL PHA ROLE Allowable Moves under Portability A family may move with voucher assistance only to an area where there is at least one PHA administering a voucher program [24 CFR 982.353(b)]. If there is more than one PHA in the area, the initial PHA provides the family with the contact information for the receiving PHAs that serve the area, and the family selects the receiving PHA. The family must inform the initial 12.A.b Packet Pg. 1656 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-9 PHA which receiving PHA it has selected. If the family prefers not to select the receiving PHA, the initial PHA will select the receiving PHA on behalf of the family [24 CRF 982.255(b)]. Applicant families that have been issued vouchers as well as participant families may qualify to lease a unit outside the PHA’s jurisdiction under portability. HUD regulations and PHA policy, determines whether a family qualifies. Applicant Families Under HUD regulations, most applicant families qualify to lease a unit outside the PHA’s jurisdiction under portability. However, HUD gives the PHA discretion to deny a portability move by an applicant family for the same two reasons that it may deny any move by a participant family: insufficient funding and grounds for denial or termination of assistance. If a PHA intends to deny a family permission to move under portability due to insuffi cient funding, the PHA must notify HUD within 10 business days of the determination to deny the move [24 CFR 982.355(e)]. PHA Policy In determining whether or not to deny an applicant family permission to move under portability because the PHA lacks sufficient funding or has grounds for denying assistance to the family, the initial PHA will follow the policies established in section 10- I.B of this chapter. If the PHA does deny the move due to insufficient funding, the PHA will notify HUD in writing within 10 business days of the PHA’s determination to deny the move. In addition, the initial PHA may establish a policy denying the right to portability to nonresident applicants during the first 12 months after they are admitted to the program [24 CFR 982.353(c)]. PHA Policy If neither the head of household nor the spouse/co-head of an applicant family had a domicile (legal residence) in the initial PHA’s jurisdiction at the time that the family’s initial application for assistance was submitted, the family must lease a unit within the initial PHA’s jurisdiction for at least 12 months before requesting portability. The PHA will consider exceptions to this policy for purposes of reasonable accommodation (see Chapter 2) or reasons related to domestic violence, dating violence, sexual assault, or stalking. Participant Families The initial PHA must not provide portable assistance for a parti cipant if a family has moved out of its assisted unit in violation of the lease [24 CFR 982.353(b)]. The Violence Against Women Act of 2013 (VAWA) creates an exception to this prohibition for families who are otherwise in compliance with program obligations but have moved to protect the health or safety of a family 12.A.b Packet Pg. 1657 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-10 member who is or has been a victim of domestic violence, dating violence, sexual assault, or stalking and who reasonably believed they were imminently threatened by harm from further violence if they remained in the unit [24 CFR 982.353(b)]. PHA Policy The PHA will determine whether a participant family may move out of the PHA’s jurisdiction with continued assistance in accordance with the regulations and policies set forth here and in sections 10-I.A and 10-I.B of this chapter. The PHA will notify the family of its determination in accordance with the approval policy set forth in section 10-I.C of this chapter. Determining Income Eligibility Applicant Families An applicant family may lease a unit in a particular area under portability only if the family is income eligible for admission to the voucher program in that area [24 CFR 982.353(d)(1)]. The family must specify the area to which the family wishes to move [24 CRF 982.355(c)(1)]. The initial PHA is responsible for determining whether the family is income eligible in the area to which the family wishes to move [24 CFR 982.353(d)(1), 24 CFR 982.355(9)]. If the applicant family is not income eligible in that area, the PHA must inform the family that it may not move there and receive voucher assistance [Notice PIH 2016-09]. Participant Families The income eligibility of a participant family is not re-determined if the family moves to a new jurisdiction under portability [24 CFR 982.353(d)(2)]. Reexamination of Family Income and Composition No new reexamination of family income and composition is required for an applicant family. PHA Policy For a participant family approved to move out of its jurisdiction under portability, the PHA generally will conduct a reexamination of family income and composition only if the family’s annual reexamination must be completed on or before the initial billing deadline specified on form HUD-52665, Family Portability Information. The PHA will make any exceptions to this policy necessary to remain in compliance with HUD regulations. 12.A.b Packet Pg. 1658 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-11 Briefing The regulations and policies on briefings set forth in Chapter 5 of this plan require the PHA to provide information on portability to all applicant families that qualify to lea se a unit outside the PHA’s jurisdiction under the portability procedures. Therefore, no special briefing is required for these families. PHA Policy No formal briefing will be required for a participant family wishing to move outside the PHA’s jurisdiction under portability. However, the PHA will provide the family with the same oral and written explanation of portability that it provides to applicant families selected for admission to the program (see Chapter 5). The PHA will provide the name, address, and telephone number of the contact for the PHAs in the jurisdiction to which they wish to move. If there is more than one PHA with jurisdiction over the area to which the family wishes to move, the PHA will advise the family that the family selects the receiving PHA and notify the initial PHA of which receiving PHA was selected. The PHA will provide the family with contact information for all of the receiving PHAs that serve the area. The PHA will not provide any additional information about receiving PHAs in the area. The PHA will further inform the family that if the family prefers not to select the receiving PHA, the initial PHA will select the receiving PHA on behalf of the family. In this case, the PHA will not provide the family with information for all receiving PHAs in the area. The PHA will advise the family that they will be under the receiving PHA’s policies and procedures, including screening, subsidy standards, voucher extension policies, and payment standards. Voucher Issuance and Term An applicant family has no right to portability until after the family has been issued a voucher [24 CFR 982.353(b)]. In issuing vouchers to applicant families, the PHA will follow the regulations and procedures set forth in Chapter 5. PHA Policy For participating families approved to move under portability, the PHA will issue a new voucher within 15 business days of the PHA’s approval to move. Income will be verified at the time the RTA is issued to assure participant TTP does not exceed 40 percent of their adjusted income. The initial term of the voucher will be 60 days. 12.A.b Packet Pg. 1659 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-12 Voucher Extensions and Expiration PHA Policy The initial PHA will not approve extensions to a voucher issued to an applicant or participant family porting out of the PHA’s jurisdiction except under the following circumstances: (a) the initial term of the voucher will expire before the portable family will be issued a voucher by the receiving PHA, (b) the family decides to return to the initial PHA’s jurisdiction and search for a unit there, or (c) the family decides to search for a unit in a third PHA’s jurisdiction . In such cases, the policies on voucher extensions set forth in Chapter 5, section 5-II.E, of this plan will apply, including the requirement that the family apply for an extension in writing prior to the expiration of the initial voucher term. To receive or continue receiving assistance under the initial PHA’s voucher program, a family that moves to another PHA’s jurisdiction under portability must be under HAP contract in the receiving PHA’s jurisdiction within 90 days following the expiration date of the initial PHA’s voucher term (including any extensions). (See below under “Initial Billing Deadline” for one exception to this policy.) Preapproval Contact with the Receiving PHA Prior to approving a family’s request to move under portability, the initial PHA must contract the receiving PHA via e-mail or other confirmed delivery method to determine whether the receiving PHA will administer or absorb the family’s voucher. Based on the receiving PHA’s response, the initial PHA must determine whether it will approve or deny the move [24 CFR 982.355(c)(3)]. PHA Policy The PHA will use e-mail, when possible, to contact the receiving PHA regarding whether the receiving PHA will administer or absorb the family’s voucher. Initial Notification to the Receiving PHA After approving a family’s request to move under portability, the initial PHA must promptly notify the receiving PHA via email or other confirmed delivery method to expect the family [24 CFR 982.355(c)(3); 24 CFR 982.355(c)(7)]. The initial PHA must also advise the family how to contact and request assistance from the receiving PHA [24 CFR 982.355(c)(6)]. PHA Policy Because the portability process is time-sensitive, the PHA will notify the receiving PHA by phone, fax, or e-mail to expect the family. The initial PHA will provide the name, fax, 12.A.b Packet Pg. 1660 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-13 email address and telephone number of the staff person at the receiving PHA responsible for business with incoming portable families. Sending Documentation to the Receiving PHA The initial PHA is required to send the receiving PHA the following documents: • Form HUD-52665, Family Portability Information, with Part I filled out [Notice PIH 2016-09] • A copy of the family’s voucher [Notice PIH2016-09] • A copy of the family’s most recent form HUD-50058, Family Report, or, if necessary in the case of an applicant family, family and income information in a format similar to that of form HUD-50058 [24 CFR 982.355(c)(74), Notice PIH2016-09] • Copies of the income verifications backing up the form HUD-50058, including a copy of the family’s current EIV data [24 CFR 982.355(c)(74), Notice PIH2016-09] PHA Policy In addition to these documents, the PHA will provide the following information, if available, to the receiving PHA: Social security numbers (SSNs) Documentation of citizenship or eligible immigration status Documentation of participation in the earned income disallowance (EID) benefit Documentation of participation in a family self-sufficiency (FSS) program Documentation of SSNs for all non-exempt household members whose SSNs have not been verified through the EIV system Documentation of legal identity Initial Billing Deadline [Notice PIH2016-09] The deadline for submission of initial billing is 90 days following the expiration date of the voucher issued to the family by the initial PHA. In cases where suspension of the voucher delays the initial billing submission, the receiving PHA must notify the initial PHA of delayed billing before the billing deadline and document the delay is due to the suspension. In this case, the initial PHA must extend the billing deadline by 30 days. If the initial PHA does not receive a billing notice by the deadline and does not intend to honor a late billing submission, it must notify the receiving PHA in writing. The initial PHA may report to HUD the receiving PHA’s failure to comply with the deadline. If the initial PHA will honor the late billing, no action is required. PHA Policy 12.A.b Packet Pg. 1661 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-14 The initial PHA’s decision as to whether to accept late billing will be based on internal PHA factors, including the initial PHA’s leasing or funding status. If the PHA has not received an initial billing notice from the receiving PHA within the billing deadline and does not intend to honor the late billing, it will contact the receiving PHA to inform them that it will not honor a late billing submission and will return any subsequent billings that it receives on behalf of the family. In this case, the PHA will send the receiving PHA a written confirmation of its decision by mail. Among other considerations as to whether to accept late billing will be if the family includes a person with disabilities and the late billing is a result of a reasonable accommodation granted to the family by the receiving PHA. Monthly Billing Payments [24 CFR 982.355(e), Notice PIH2016-09] If the receiving PHA is administering the family’s voucher, the receiving PHA bills the initial PHA for housing assistance payments and administrative fees. When reimbursing for administrative fees, the initial PHA must promptly reimburse the receiving PHA for the lesser of 80 percent of the initial PHA ongoing administrative fee or 100 percent of the receiving PHA’s ongoing administrative fee for each program unit under contract on the first day of the month for which the receiving PHA is billing the initial PHA under portability. If the administrative fees are prorated for the HCV program, the proration will apply to the amount of the administrative fee for which the receiving PHA may bill [24 CRF 982.355(e)(2)]. The initial PHA is responsible for making billing payments in a timely manner. The first billing amount is due within 30 calendar days after the initial PHA receives Part II of form HUD-52665 from the receiving PHA. Subsequent payments must be received by the receiving PHA no later than the fifth business day of each month. The payments must be provided in a form and manner that the receiving PHA is able and willing to accept. The initial PHA may not terminate or delay making payments under existing portability billing arrangements as a result of over leasing or funding shortfalls. The PHA must manage its tenant- based program in a manner that ensures that it has the financial ability to provide assistance for families that move out of its jurisdiction under portability and are not absorbed by receiving PHAs as well as for families that remain within its jurisdiction. PHA Policy The initial PHA may utilize direct deposit to ensure that the payment is received by the deadline unless the receiving PHA notifies the initial PHA that direct deposit is not acceptable to them. If the initial PHA extends the term of the voucher, the receiving PHA’s voucher will expire 30 calendar days from the new expiration date of the initial PHA’s voucher. Annual Updates of Form HUD-50058 12.A.b Packet Pg. 1662 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-15 If the initial PHA is being billed on behalf of a portable family, it should receive an updated f orm HUD-50058 each year from the receiving PHA. If the initial PHA fails to receive an updated 50058 by the family’s annual reexamination date, the initial PHA should contact the receiving PHA to verify the status of the family. The initial PHA must continue paying the receiving PHA based on the last form HUD-50058 received, unless instructed otherwise by HUD. The initial PHA may seek absorption of the vouchers by following steps outlined in Notice PIH 2016 -09. Denial or Termination of Assistance [24 CFR 982.355(c)(17)] At any time, either the initial PHA or the receiving PHA may make a determination to deny or terminate assistance with the family in accordance with 24 CFR 982.552 and 24 CFR 982.553. (For PHA policies on denial and termination, see Chapters 3 and 12, respectively.) 10-II.C. RECEIVING PHA ROLE If a family has a right to lease a unit in the receiving PHA’s jurisdiction under portability, the receiving PHA must provide assistance for the family [24 CFR 982.355(10)]. HUD may determine in certain instances that a PHA is not required to accept incoming portable families, such as a PHA in a declared disaster area. However, the PHA must have approval in writing from HUD before refusing any incoming portable families [24 CFR 982.355(b)]. Administration of the voucher must be in accordance with receiving PHA’s policies. This requirement also applies to policies of Moving to Work agencies. The receiving PHA procedures and preferences for selection among eligible applicants do not apply to the family, and the receiving PHA waiting list is not used [24 CFR 982.355(c)(10)]. The family’s unit, or voucher, size is determined in accordance with the subsidy standards of the receiving PHA [24 CFR 982.355(c)(12)], and the receiving PHA’s policies on extensions of the voucher term apply [24 CFR 982.355(c)(14)]. Responding to Initial PHA’s Request [24 CFR 982.355(c)] The receiving PHA must respond via e-mail or other confirmed delivery method to the initial PHA’s inquiry to determine whether the family’s voucher will be billed or absorbed [24 CFR 982.355(c)(3)]. If the receiving PHA informs the initial PHA that it will be absorbing the voucher, the receiving PHA cannot reverse its decision at a later date without consent of the initial PHA [24 CFR 982.355(c)(4)]. PHA Policy The PHA will use e-mail, when possible, to notify the initial PHA whether it will administer or absorb the family’s voucher. Initial Contact with Family 12.A.b Packet Pg. 1663 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-16 When a family moves into the PHA’s jurisdiction under portability, the family is responsible for promptly contacting the PHA and complying with the PHA’s procedures for incoming portable families. The family’s failure to comply may result in denial or termination of the receiving PHA’s voucher [24 CFR 982.355(c)(8)]. If the voucher issued to the family by the initial PHA has expired, the receiving PHA must contact the initial PHA to determine if it will extend the vou cher [24 CFR 982.355(c)(13)]. An informal hearing is not required when a voucher has expired without the family leasing a unit. If for any reason the receiving PHA refuses to process or provide assistance to a family under the portability procedures, the family must be given the opportunity for an informal review or hearing [Notice PIH2016-09]. (For more on this topic, see later under “Denial or Termination of Assistance.”) Screening for Eligibility PHA Policy The PHA may, at its discretion, perform a criminal background check for adult household members as part of the portability intake process. The PHA will comply with the policies for criminal background screening and denial outlined at 3-III.B, 3-III.C and 3-III.D. Briefing HUD allows the receiving PHA to require a briefing for an incoming portable family as long as the requirement does not unduly delay the family’s search [Notice PIH2016-09]. PHA Policy The PHA will not require the family to attend a briefing. The PHA will provide the family information on the family’s obligations, the PHA’s payment and subsidy standards, procedures for requesting approval of a unit, the unit inspection process, and the leasing process. Income Eligibility and Reexamination The receiving PHA does not re-determine eligibility for a portable family that was already receiving assistance in the initial PHA’s voucher program [24 CFR 982.355(c)(9)]. If the receiving PHA opts to conduct a new reexamination for a current participant family, the receiving PHA may not delay issuing the family a voucher or otherwise delay approval of a unit [24 CFR 982.355(c)(11)]. PHA Policy For any family moving into its jurisdiction under portability, the PHA may conduct a new reexamination of family income and composition and conduct its own criminal background check. However, the PHA will not delay issuing the family a voucher for this 12.A.b Packet Pg. 1664 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-17 reason. Nor will the PHA delay approving a unit for the family until the reexamination process is complete unless the family is an applicant and the PHA cannot otherwise confirm that the family is income eligible for admission to the program in the area where the unit is located. In conducting its own reexamination, the PHA will rely upon any verification provided by the initial PHA to the extent that they (a) accurately reflect the family’s current circumstances and (b) were obtained within the last 120 days. Any new information may be verified by documents provided by the family and adjusted, if necessary, when third party verification is received. However, the PHA will take subsequent action (e.g., recalculating the HAP payment based on updated income information; terminating the family’s participation in the program due to criminal background or failing to disclose necessary information) against the family based on any information. Voucher Issuance When a family moves into its jurisdiction under portability, the receiving PHA is required to issue the family a voucher [24 CFR 982.355(c)(13)]. The family must submit a request for tenancy approval to the receiving PHA during the term of the receiving PHA’s voucher [24 CFR 982.355(c)(15)]. Timing of Voucher Issuance HUD expects the receiving PHA to issue the voucher within two weeks after receiving the family’s paperwork from the initial PHA if the information is in order, the family has contacted the receiving PHA, and the family complies with the receiving PHA’s procedures [Notice PIH2016-09]. PHA Policy When a family ports into its jurisdiction, the PHA will issue the family a voucher based on the paperwork provided by the initial PHA unless the family’s paperwork from the initial PHA is incomplete, the family’s voucher from the initial PHA has expired or the family does not comply with the PHA’s procedures. The PHA will update the family’s information when verification has been completed. Voucher Term The term of the receiving PHA’s voucher may not expire before 30 calendar days from the expiration of the initial PHA’s voucher [24 CFR 982.355(c)(13)]. If the initial PHA extends the term of the voucher, the receiving PHA’s voucher may not expire before 30 days from the new expiration date of the initial PHA’s voucher [Notice PIH 2016-09]. PHA Policy 12.A.b Packet Pg. 1665 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-18 The receiving PHA’s voucher will expire 30 calendar days from the expiration date of the initial PHA’s voucher. If the initial PHA extends the term of the voucher, the receiving PHA’s voucher will expire 30 calendar days from the new expiration date of the initial PHA’s voucher. Voucher Extensions [24 CFR 982.355(c)(14), Notice2016-09] Once the receiving PHA issues the portable family a voucher, the receiving PHA’s policies on extensions of the voucher term apply. The receiving PHA must inform the initial PHA of any extension granted to the term of the voucher. It must also bear in mind the billing deadline provided by the initial PHA. Unless willing and able to absorb the family, the receiving PHA should ensure that any voucher expiration date would leave sufficient time to process a request for tenancy approval, execute a HAP contract, and deliver the initial billing to the initial PHA. PHA Policy The PHAs will consider that individuals with disabilities and families that include a member with a disability may require additional time to locate a suitable unit and may provide additional time beyond the expiration dat e. The PHA generally will not extend the term of the voucher that it issues to an incoming portable family unless the PHA plans to absorb the family into its own program, in which case it will follow the policies on voucher extension set forth in section 5-II.E. Voucher Suspensions [24 CFR 982.303, 24 CFR 982.355(c)(15)] If the family submits a request for tenancy approval during the term of the receiving PHA’s voucher, the PHA must suspend the term of that voucher. The term of the voucher stops from the date that the family submits a request for PHA approval of the tenancy until the date the PHA notifies the family in writing whether the request has been approved or denied [24 CFR 982.4(b)] (see Section 5-II.E). Notifying the Initial PHA The receiving PHA must promptly notify the initial PHA if the family has leased an eligible unit under the program or if the family fails to submit a request for tenancy approval for an eligible unit within the term of the receiving PHA’s voucher [24 CFR 982.355(c)(16)]. The receiving PHA is required to use Part II of form HUD-52665, Family Portability Information, for this purpose [Notice PIH2016-09]. (For more on this topic and the deadline for notification, see below under “Administering a Portable Family’s Voucher,”) 12.A.b Packet Pg. 1666 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-19 If an incoming portable family ultimately decides not to lease in the jurisdiction of the receiving PHA but instead wishes to return to the initial PHA’s jurisdiction or to search in another jurisdiction, the receiving PHA must refer the family back to the initial PHA. In such a case the voucher of record for the family is once again the voucher originally issued by the initial PHA. Any extension of search time provided by the receiving PHA’s voucher is only valid for the family’s search in the receiving PHA’s jurisdiction. [Notice PIH2016-09] Administering a Portable Family’s Voucher Portability Billing [24 CFR 982.355(e)] To cover assistance for a portable family that was not absorbed, the receiving PHA bills the initial PHA for housing assistance payments and administrative fees. The amount of the housing assistance payment for a portable family in the receiving PHA’s program is determin ed in the same manner as for other families in the receiving PHA’s program. The receiving PHA may bill the initial PHA for the lesser of 80 percent of the initial PHA’s ongoing administrative fee or 100 percent of the receiving PHA’s ongoing administrative fee for each program unit under contract on the first day of the month for which the receiving PHA is billing the initial PHA under portability. If the administrative fees are prorated for the HCV program, the proration will apply to the amount of the administrative fee for which the receiving PHA may bill (i.e., the receiving PHA may bill for the lesser of 80 percent of the initial PHA’s prorated ongoing administrative fee or 100 percent of the receiving PHA’s ongoing administrative fee). If both PHAs agree, the PHAs may negotiate a different amount of reimbursement. PHA Policy Unless the PHA negotiates a different amount of reimbursement with the initial PHA, the PHA will bill the initial PHA the maximum amount of administrative fees allowed, ensuring any administrative fee proration has been properly applied. Initial Billing Deadline If a portable family’s search for a unit is successful and the receiving PHA intends to administer the family’s voucher, the receiving PHA must submit its initial billing notice (Part II of form HUD- 52665) with sufficient time so that the notice will be received by the initial PHA no later than 90 days following the expiration date of the family’s voucher issued by the initial PHA [Notice PIH2016-09]. This deadline may be extended for 30 additional days if the delay is due to suspension of the voucher’s term (see Initial Billing Section). A copy of the family’s form HUD- 50058, Family Report, completed by the receiving PHA must be attached to the initial billing notice. The receiving PHA may send these documents by mail, fax, or e-mail. PHA Policy The PHA will send its initial billing notice by fax or e-mail, if necessary, to meet the billing deadline but will also send the notice by regular mail. 12.A.b Packet Pg. 1667 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-20 If the receiving PHA fails to send the initial billing by the deadline, it is required to absorb the family into its own program unless (a) the initial PHA is willing to accept the late submission or (b) HUD requires the initial PHA to honor the late submission (e.g., because the receiving PHA is over leased) [Notice PIH2016-09]. Ongoing Notification Responsibilities [Notice PIH2016-09, HUD-52665] Annual Reexamination. The receiving PHA must send the initial PHA a copy of a portable family’s updated form HUD-50058 after each annual reexamination for the duration of time the receiving PHA is billing the initial PHA on behalf of the family, regardless of whe ther there is a change in the billing amount. PHA Policy The PHA will send a copy of the updated HUD-50058 by regular mail no later than 10 business days after the effective date of the reexamination, but no later than 30 days after the effective date of the action. If the receiving PHA has not conducted the annual reexamination in a timely manner, the initial PHA must be notified of such. Change in Billing Amount. The receiving PHA is required to notify the initial PHA, using form HUD-52665, of any change in the billing amount for the family as a result of: • A change in the contract amount (because of a reexamination, a change in the applicable payment standard, a move to another unit, etc.) • An abatement or subsequent resumption of the HAP payments • Termination of the contract • Payment of a damage/vacancy loss claim for the family • Termination of the family from the program The timing of the notice of the change in the billing amount should correspond with the notification to the owner and the family in order to provide the initial PHA with advance notice of the change. Under no circumstances should the notification be later than 10 business days following the effective date of the change in the billing amount. If the receiving PHA fails to send Form HUD-52665 within 10 days of effective date of billing changes, the initial PHA is not responsible for any increase prior to notification. If the change resulted in a decrease in the monthly billing amount, the initial PHA will offset future monthly payments until the difference is reconciled. Late Payments [Notice PIH2016-09] If the initial PHA fails to make a monthly payment for a portable family by the fifth business day of the month, the receiving PHA must promptly notify the initial PHA in writing of the 12.A.b Packet Pg. 1668 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-21 deficiency. The notice must identify the family, the amount of the billing payment, the date the billing payment was due, and the date the billing payment was received (if it arrived late). The receiving PHA must send a copy of the notification to the Office of Public Housing (OPH) in the HUD area office with jurisdiction over the receiving PHA. If the initial PHA fails to correct the problem by the second month following the notification, the receiving PHA may request by memorandum to the director of the OPH with jurisdiction over the receiving PHA that HUD transfer the unit in question. A copy of the initial notification and any subsequent correspondence between the PHAs on the matter must be attached. The receiving PHA must send a copy of the memorandum to the initial PHA. If the OPH decides to grant the transfer, the billing arrangement on behalf of the family ceases with the transfer, but the initial PHA is still responsible for any outstanding payments due to the receiving PHA. Overpayments [Notice PIH 2016-09] In all cases where the receiving PHA has received billing payments for billing arrangements no longer in effect, the receiving PHA is responsible for returning the full amount of the overpayment (including the portion provided for administrative fees) to the initial PHA. In the event that HUD determines billing payments have continued for at least three months because the receiving PHA failed to notify the initial PHA that the billing arrangement was terminated, the receiving PHA must take the following steps: • Return the full amount of the overpayment, including the portion provided for administrative fees, to the initial PHA. • Once full payment has been returned, notify the Office of Public Housing in the HUD area office with jurisdiction over the receiving PHA of the date and the amount of reimbursement to the initial PHA. At HUD’s discretion, the receiving PHA will be subject to the sanctions spelled out in Notice PIH2016-09. Denial or Termination of Assistance At any time, the receiving PHA may make a determination to deny or terminate assistance to a portable family for family action or inaction [24 CFR 982.355(c)(9), 24 CFR 982.355(c)(10)]. In the case of a termination, the PHA should provide adequate notice of the effective date to the initial PHA to avoid having to return a payment. In no event should the receiving PHA fail to notify the initial PHA later than 10 business days following the effective date of the termination of the billing arrangement. [HUD-52665; Notice PIH2016-09] PHA Policy If the PHA elects to deny or terminate assistance for a portable family, the PHA will notify the initial PHA within 10 business days after the informal review or hearing if the denial or termination is upheld. The PHA will base its denial or termination decision on 12.A.b Packet Pg. 1669 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 10-22 the policies set forth in Chapter 3 or Chapter 12, respectively. The informal review or hearing will be held in accordance with the policies in Chapter 16. The receiving PHA will furnish the initial PHA with a copy of the review or hearing decision. Absorbing a Portable Family The receiving PHA may absorb an incoming portable family into its own program when the PHA executes a HAP contract on behalf of the family or at any time thereafter providing that the PHA has funding available under its annual contributions contract (ACC) [24 CFR 982.355(d)(1), Notice PIH2016-09]. If the receiving PHA absorbs a family from the point of admission, the admission will be counted against the income-targeting obligation of the receiving PHA [24 CFR 982.201(b)(2)(vii)]. If the receiving PHA absorbs a family after providing assistance for the family under a billing arrangement with the initial PHA, the receiving PHA must send an updated form HUD-52665 to the initial PHA no later than 10 business days following the effecti ve date of the termination of the billing arrangement. [Notice PIH2016-09] PHA Policy If the PHA decides to absorb a portable family upon the execution of a HAP contract on behalf of the family, the PHA will notify the initial PHA by the initial billing deadline specified on form HUD-52665. The effective date of the HAP contract will be the effective date of the absorption. If the PHA decides to absorb a family after that, it will provide the initial PHA with 30 days’ advance notice, but no later than 10 business days following the effective date of the termination of the billing arrangement. Following the absorption of an incoming portable family, the family is assisted with funds available under the consolidated ACC for the receiving PHA’s voucher program [24 CFR 982.355(d)], and the receiving PHA becomes the initial PHA in any subsequent moves by the family under portability [24 CFR 982.355(e)(4)]. 12.A.b Packet Pg. 1670 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 11-1 Chapter 11 REEXAMINATIONS INTRODUCTION The PHA is required to reexamine each family’s income and composition at least annually, and to adjust the family’s level of assistance accordingly. Interim reexaminations are also needed in certain situations. This chapter discusses both annual and interim reexaminations, and the recalculation of family share and subsidy that occurs as a result. HUD regulations and PHA policies concerning reexaminations are presented in three parts: Part I: Annual Reexaminations. This part discusses the process for conducting annual reexaminations. Part II: Interim Reexaminations. This part details the requirements for families to report changes in family income and composition between annual reexaminations. Part III: Recalculating Family Share and Subsidy Amount. This part discusses the recalculation of family share and subsidy amounts based on the results of annual and interim reexaminations. Policies governing reasonable accommodation, family privacy, required family cooperation, and program abuse, as described elsewhere in this plan, apply to both annual and interim reexaminations. 12.A.b Packet Pg. 1671 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 11-2 PART I: ANNUAL REEXAMINATIONS [24 CFR 982.516] 11-I.A. OVERVIEW The PHA must conduct a reexamination of family income and composition at least annually. This includes gathering and verifying current information about family composition, income, and expenses. Based on this updated information, the family’s income and r ent must be recalculated. This part discusses the schedule for annual reexaminations, the information to be collected and verified, and annual reexamination effective dates. 11-I.B. STREAMLINED ANNUAL REEXAMINATIONS [24 CFR 982.516(b); New HCV GB, Reexaminations] HUD permits PHAs to streamline the income determination process f or family members with fixed sources of income. While third-party verification of all income sources must be obtained during the intake process and every three years thereafter, in the intervening years the PHA may determine income from fixed sources by applying a verified cost of living adjustment (COLA) or rate of interest. The PHA may, however, obtain third-party verification of all income, regardless of the sources. Further, upon request of the family, the PHA must perform third - party verification of all income sources. Fixed sources of income include Social Security and SSI benefits, pensions, annuities, disability or death benefits, and other sources of income subject to a COLA or rate of interest. The determination of fixed income may be streamlined even if the family also received income from other non-fixed sources. Two streamlining options are available, depending upon the percentage of the family’s income that is received from fixed sources. If at least 90 percent of the family’s income is from fix ed sources, the PHA may streamline the verification of fixed income but is not required to verify non-fixed income amounts. If the family receives less than 90 percent of its income from fixed sources, the PHA may streamline the verification of fixed income and must verify non-fixed income annually. PHA Policy The PHA will streamline that annual reexamination process by applying the verified COLA or interest rate to fixed-income sources. The PHA will document in the file how the determination that a source of income was fixed was made. If a family member with a fixed source of income is added, the PHA will use third -party verification of all income amounts for that family member. If verification of the COLA or rate of interest is not available, the PHA will obtain third- party verification of income amounts. 12.A.b Packet Pg. 1672 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 11-3 Third-party verification of fixed sources of income will be obtained during the intake process and at least once every three years thereafter. Third-party verification of non-fixed income will be obtained annually regardless of the percentage of family income received from fixed sources. 11-I.C. SCHEDULING ANNUAL REEXAMINATIONS The PHA must establish a policy to ensure that the annual reexamination for each f amily is completed within a 12-month period and may require reexaminations more frequently [HCV GB p. 12-1]. PHA Policy The PHA will begin the annual reexamination process between 90 and 120 days in advance of its scheduled effective date. Generally, the PHA will schedule annual reexamination effective dates to coincide with the family’s anniversary date. Anniversary date is defined as 12 months from the effective date of the family’s last annual reexamination or, during a family’s first year in the program, on the first day of the month from the effective date of the family’s initial examination (admission). In accordance with new requirements as the Secretary shall establish, the PHA will implement triennial recertifications for households who establish that 90 percent or more of the family income consists of fixed income, as defined by the Secretary, and that the sources of such income have not changed since the previous year. The PHA shall conduct a review of each such family’s income not less than once every 3 years. If the family moves to a new unit, the PHA will perform a new annual reexamination. When a family moves to a new unit and thereby establishes a new contract anniversary date, if the family’s latest annual reexamination took effect within 4 months prior to the new contract anniversary, the PHA may simply ascertain whether there has been any change in the family’s adjusted income since the last annual reexamination and, if so, obtain acceptable verification of only the change. The PHA must the n use any new verified information together with information from the last annual reexamination to re-determine the family share of rent and the subsidy payment. [SEMAP Final Rule, 63 Fed.Reg. 48553] (See Chapter 7 for Verification Requirements) The PHA also may schedule an annual reexamination for completion prior to the anniversary date for administrative purposes. Notification of and Participation in the Annual Reexamination Process The PHA is required to obtain the information needed to conduct annual reexaminations. How that information will be collected is left to the discretion of the PHA. However, PHAs should 12.A.b Packet Pg. 1673 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 11-4 give tenants who were not provided the opportunity the option to complete Form HUD-92006 at this time [Notice PIH 2009-36]. PHA Policy Families are required to complete an annual reexamination. Notification of annual reexamination will be sent by first-class mail or email and will contain the date and location to return the completed reexamination forms and required documents. Any required notices sent by the PHA will be addressed to the Head of Household and must be deliverable to the address of the subsidized apartment. If the family is unable to submit the required forms and documents by the due date, the family should contact the PHA in advance of the due date to request an extension. , If a family fails to complete the annual reexamination, or if the notice is returned by the post office, a notice of termination (see Chapter 12) will be sent to the family’s address of record, and to any alternate address provided in the family’s file. An advocate, interpreter, or other assistant may assist the family in the reexamination process. No minor children will be permitted to act as an interpreter for these interviews. The family and the PHA must execute a certification attesting to the role and the assistance provided by any such third party. For Limited English Proficient (LEP) applicants, the PHA will provide interpretation services free of charge in accordance with the PHA’s LEP Plan. 11-I.D. CONDUCTING ANNUAL REEXAMINATIONS As part of the annual reexamination process, families are required to provide updated information to the PHA regarding the family’s income, expenses, and composition [24 CFR 982.551(b)]. PHA Policy Families will be asked to mail, email, or deliver all required information (as described in the reexamination notice) to the PHA office. The required information will include: PHA-designated reexamination form Personal Declaration Form Authorization for the Release of Information/Privacy Act Notice Documents or forms related to the family’s income, assets, and deductions/allowances Most current income tax return School verifications for all adult dependents that attend school full-time and or work Any signature forms that are required by the PHA 12.A.b Packet Pg. 1674 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 11-5 If the family is unable to obtain the information or materials within the required time frame, the family may request an extension not to exceed 10 days from the date of the deadline. If the family does not provide the required documents or information within the required time period (plus any extensions), the family will be sent a notice of termination (See Chapter 12). The information provided by the family generally must be verified in accordance wit h the policies in Chapter 7. Unless the family reports a change, or the PHA has reason to believe a change has occurred in information previously reported by the family, certain types of information that are verified at admission typically do not need to b e re-verified on an annual basis. These include: • Age • Social security numbers • A person’s disability status • Citizenship or immigration status If adding a new family member to the unit causes overcrowding according to the Housing Quality Standards (HQS) (see Chapter 8), the PHA must issue the family a new voucher, and the family and PHA must try to find an acceptable unit as soon as possible. If an acceptable unit is available for rental by the family, the PHA must terminate the contract in accordance with it s terms [24 CFR 982.403]. Criminal Background Checks PHA Policy The PHA may, at its discretion, perform a criminal background check for adult household members as part of the annual reexamination process. The PHA will comply with the policies for criminal background screening and denial outlined at 3-III.B, 3-III.C and 3-III.D. 11-I.E. DETERMINING ONGOING ELIGIBILITY OF CERTAIN STUDENTS [24 CFR 982.552(b)(5)] Section 327 of Public Law 109-115 established new restrictions on the ongoing eligibility of certain students (both part- and full-time) who are enrolled in institutions of higher education. If a student enrolled in an institution of higher education is under the age of 24, is not a veteran, is not married, does not have a dependent child, and is not a person with disabilities receiving HCV assistance as of November 30, 2005, the student’s eligibility must be reexamined along with the income eligibility of the student’s parents on an annual basis. In these cases, both the student and the student’s parents must be income eligible for the student to continue 12.A.b Packet Pg. 1675 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 11-6 to receive HCV assistance. If, however, a student in these circumstances is determined independent from their parents or is considered a vulnerable youth in accordance with PHA policy, the income of the student’s parents will not be considered in determining the student’s ongoing eligibility. Students who reside with parents in an HCV assisted unit are not subject to this provision. It is limited to students who are receiving assistance on their own, separately from their parents. PHA Policy During the annual reexamination process, the PHA will determine the ongoing eligibility of each student who is subject to the eligibility restrictions in 24 CFR 5.612 by reviewing the student’s individual income as well as the income of the student’s parents. If the student has been determined “independent” from their parents or is considered a vulnerable youth based on the policies in Sections 3-II.E and 7-II.E, the parents’ income will not be reviewed. If the student is no longer income eligible based on their own income or the income of their parents, the student’s assistance will be terminated in accordance with the policies in Section 12-I.D. If the student continues to be income eligible based on their own income and the income of their parents (if applicable), the PHA will process a reexamination in accordance with the policies in this chapter. 11-I.F. EFFECTIVE DATES The PHA must establish policies concerning the effective date of changes that result from an annual reexamination [24 CFR 982.516]. PHA Policy In general, an increase in the family share of the rent that results from an annual reexamination will take effect on the family’s anniversary date, and the family will be notified at least 30 days in advance. If less than 30 days remain before the scheduled effective date, the increase will take effect on the first of the month following the end of the 30 -day notice period. If a family moves to a new unit, the increase will take effect o n the effective date of the new lease and contract, and no 30-day notice is required. If the PHA chooses to schedule an annual reexamination for completion prior to the family’s anniversary date for administrative purposes, the effective date will be determined by the PHA, but will always allow for the 30-day notice period, unless the family waives their right to a 30-day notice in writing. 12.A.b Packet Pg. 1676 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 11-7 If there has been a misrepresentation or a material omission by the family, or if the family causes a delay in processing the annual reexamination, increases in the family share of the rent will be applied retroactively, to the scheduled effective date of the annual reexamination. The family will be responsible for any overpaid subsidy and may be offered a repayment agreement in accordance with the policies in Chapter 16. In general, a decrease in the family share of the rent that results from an annual reexamination will take effect on the family’s anniversary date. If a family moves to a new unit, the decrease will take effect on the effective date of the new lease and contract. If the PHA chooses to schedule an annual reexamination for completion prior to the family’s anniversary date for administrative purposes, the effective date will be determined by the PHA. If the family causes a delay in processing the annual reexamination, decreases in the family share of the rent will be applied prospectively, from the first day of the month following completion of the reexamination processing. Delays in reexamination processing are considered to be caused by the family if the family fails to provide information requested by the PHA by the date specified, and this delay prevents the PHA from completing the reexamination as scheduled. 12.A.b Packet Pg. 1677 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 11-8 PART II: INTERIM REEXAMINATIONS [24 CFR 982.516] 11-II.A. OVERVIEW Family circumstances may change between annual reexaminations. HUD and PHA policies dictate what kinds of information about changes in family circumstances must be reported, and under what circumstances the PHA must process interim reexaminations to reflect those changes. HUD regulations also permit the PHA to conduct interim reexaminations of income or family composition at any time. When an interim reexamination is conducted, only those factors that have changed are verified and adjusted [HCV GB, p. 12-10]. In addition to specifying what information the family must report, HUD regulations permit the family to request an interim determination if other aspects of the family’s income or composition changes. The PHA must complete the interim reexamination within a reasonable time after the family’s request. This part includes HUD and PHA policies describing what changes families are required to report, what changes families may choose to report, and how the PHA will process both PHA - and family-initiated interim reexaminations. 11-II.B. CHANGES IN FAMILY AND HOUSEHOLD COMPOSITION The family is required to report all changes in family composition. The PHA must adopt policies prescribing when and under what conditions the family must report changes in income and family composition. However, due to family obligations under the program, the PHA has limited discretion in this area. PHA Policy The PHA will conduct interim reexaminations to account for any changes in household composition that occur between annual reexaminations. New Family Members Not Requiring PHA Approval The addition of a family member as a result of birth, adoption or court-awarded custody does not require PHA approval. However, the family is required to promptly notify the PHA of the addition [24 CFR 982.551(h)(2)]. PHA Policy The family must inform the PHA in writing of the birth, adoption or court-awarded custody of a child within 10 business days. 12.A.b Packet Pg. 1678 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 11-9 New Family and Household Members Requiring Approval With the exception of children who join the family as a result of birth, adoption, or court- awarded custody, a family must request PHA approval to add a new family member [24 CFR 982.551(h)(2)] or other household member (live-in aide or foster child) [24 CFR 982.551(h)(4)]. Although the PHA must verify aspects of program eligibility when any new family member is added, the Streamlining Final Rule removed the requirement that PHAs conduct a reexamination of income whenever a new family member is added. The PHA may state in policy that an income reexamination will be conducted. PHA Policy The PHA will not approve the addition of a new household member unless they are a spouse or partner, a child through birth, custody, adoption, or foster, or a household member who is added at the time the applicant receives notification that they have been selected from the waitlist. When any new family member is added, the PHA must conduct a reexamination to determine any new income or deductions associated with the additional family member and to make appropriate adjustments in the family share of the rent and the HAP payment [24 CFR 982.516(e)]. If a change in family size causes a violation of Housing Quality Standards (HQS) space standards (see Chapter 8), the PHA must issue the family a new voucher, and the family and PHA must try to find an acceptable unit within 60 days. The PHA should make every effort to accommodate the family as Section 8 units are difficult to secure in the City of Santa Monica. If an acceptable unit is available for rental by the family, the PHA must terminate the family’s contract in accordance with its terms [24 CFR 982.403]. PHA Policy Families must request PHA approval to add a new family member, live-in aide, foster child, or foster adult. This includes returning absent students who have been away for college and any person not on the lease who is expected to stay in the unit for more than 14 consecutive days or 28 cumulative days within a 12-month period and therefore no longer qualifies as a “guest.” Requests must be made in writing and approved by the PHA prior to the individual moving in the unit. The PHA will not approve the addition of a new family or household member unless the individual meets the PHA’s eligibility criteria (see Chapter 3) and documentation requirements (see Chapter 7, Part II). The PHA will not approve the addition of a foster child or foster adult if it will cause a violation of HQS space standards. If the PHA determines an individual meets the PHA’s eligibility criteria and documentation requirements, the PHA will provide written approval to both the family and the owner. A copy of the PHA approval will be attached to the contract. If the approval of a new family member or live-in aide will cause overcrowding according to 12.A.b Packet Pg. 1679 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 11-10 HQS standards, the approval letter will explain that the family will be issued another voucher and will be required to move. If the PHA determines that an individual does not meet the PHA’s eligibility criteria or documentation requirements, the PHA will notify the family in writing of its decision to deny approval of the new family or household member and the reasons for the denial. The PHA will make its determination within 20 business days of receiving all information required to verify the individual’s eligibility. Departure of a Family or Household Member Families must immediately notify the PHA if any family member no longer lives in the unit [24 CFR 982.551(h)(3)]. Because household members are considered when determining the family unit (voucher) size [24 CFR 982.402], the PHA also needs to know when any live-in aide, foster child, or foster adult ceases to reside in the unit. PHA Policy If a household member ceases to reside in the unit, the family must inform the PHA in writing, within 10 business days. This requirement also applies to a family member who has been considered temporarily absent at the point that the family concludes the individual is permanently absent. 11-II.C. CHANGES AFFECTING INCOME OR EXPENSES Interim reexaminations can be scheduled either because the PHA has reason to believe that changes in income or expenses may have occurred, or because the family reports a change. When a family reports a change, the PHA may take different actions depending on whether the family reported the change voluntarily, or because it was required to do so. PHA-Initiated Interim Reexaminations PHA-initiated interim reexaminations are those that are scheduled based on circumstances or criteria defined by the PHA. They are not scheduled because of changes reported by the family. PHA Policy The PHA will conduct interim reexaminations in each of the following instances: For families receiving the Earned Income Disallowance (EID), the PHA will conduct an interim reexamination at the start and conclusion of the 24-month eligibility period. All zero income participants are subject to an interim change following the acquisition of any reasonably stable income. Income that is continuous but from different or changing sources (i.e., odd jobs, etc.) can be anticipated for the future by averaging past months’ income as reported on the zero income 12.A.b Packet Pg. 1680 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 11-11 checklist and worksheet required by the PHA. If at the time of the annual reexamination, it is not feasible to anticipate a level of income for the next 12 months (e.g. seasonal or cyclic income), the PHA will schedule an interim reexamination to coincide with the end of the period for which it is feasible to project income. If at the time of the annual reexamination, tenant declarations were used on a provisional basis due to the lack of third-party verification, and third-party verification becomes available, the PHA will conduct an interim reexamination. The PHA may conduct an interim reexamination at any time in order to correct an error in a previous reexamination, or to investigate a tenant fraud complaint. Family-Initiated Interim Reexaminations The PHA must adopt policies prescribing when and under what conditions the family must report changes in family income or expenses [24 CFR 982.516(c)]. In addition, HUD regulations require that the family be permitted to obtain an interim reexamination any time the family has experienced a change in circumstances since the last determination [24 CFR 982.516(b)(2)]. Required Reporting HUD regulations give the PHA the freedom to determine the circumstances under which families will be required to report changes affecting income. PHA Policy Families are required to report in writing all increases in annual income (monetary or not including gifts, gambling winnings, and loans), earned income/assets, including new employment, loss of full-time student status, within 10 business days of the date the change takes effect. The PHA will only conduct interim reexaminations for families that qualify for the earned income disallowance (EID), and only when the EID family’s share of rent will change as a result of the increase. If the monthly increase in income is less than $200.00 the PHA will note the information in the family’s file, and will not conduct an interim reexamination. In all other cases, the PHA will conduct an interim reexamination. At its sole discretion, the PHA may post- pone all interim re-certifications resulting from increases of income until the participant’s next annual recertification to address changes in HUD funding. In addition, the PHA may adjust the rent portion for an increase less than $200.00 for those participants previously reporting zero or very low incomes or when a participants’ income source changes. Families are required to report any other changes in income, assets, or expenses. 12.A.b Packet Pg. 1681 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 11-12 Optional Reporting The family may request an interim reexamination any time the family has experienced a change in circumstances since the last determination [24 CFR 982.516(b)(2)]. The PHA must process the request if the family reports a change that will result in a reduced family income [HCV GB, p. 12-9]. If a family reports a decrease in income from the loss of welfare benefits due to fraud or non- compliance with a welfare agency requirement to participate in an economic self-sufficiency program, the family’s share of the rent will not be reduced [24 CFR 5.615]. For more information regarding the requirement to impute welfare income see Chapter 6. PHA Policy If a family reports a change that it was not required to report and that would result in a decrease in the family share of rent, the PHA will conduct an interim reexamination only if: • The decrease in income is anticipated to last more than thirty (30) days. If a family reports a change to expenses that it was not required to report and that would result in a decrease in the family share of rent, the PHA will conduct an inter im reexamination only if: • The change in expenses is anticipated to last more than thirty (30) days; AND • The change in expenses will result in a decrease in the family share or rent of $15 or more. 11-II.D. PROCESSING THE INTERIM REEXAMINATION Method of Reporting PHA Policy The family must notify the PHA of changes in writing by completing and signing a “Request for Interim Certification.” The family may be required to attend an interview for an interim reexamination. However, if the PHA determines that an interview is not warranted, the family may not be required to attend. Based on the type of change reported, the PHA will determine the documentation the family will be required to submit. The family must submit any required information or documents within 10 business days of receiving a request from the PHA. This time frame may be extended for good cause with PHA approval. The PHA will accept required documentation by mail, email, or in person. All rent reduction requests will be completed with the effective date as the first of the following month when the necessary verifications are received prior to the 20th of the 12.A.b Packet Pg. 1682 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 11-13 month. Interim re-certifications will be completed in accordance with our interim Re- Exam Procedure. Effective Dates The PHA must establish the time frames in which any changes that result from an interim reexamination will take effect [24 CFR 982.516(d)]. The changes may be applied either retroactively or prospectively, depending on whether there is to be an increase or a decrease in the family share of the rent, and whether the family reported any required information within the required time frames [HCV GB, p. 12-10]. PHA Policy If the family share of the rent is to increase: The increase generally will be effective on the first of the month following 30 days’ notice to the family, if the change was reported within the required time frames. If new income can only be verified through 3rd party generated documents and subsequently the verification is delayed, through no fault of the family, the change in rent will be effective on the first of the month following 30 days’ notice once the information is properly verified. If a family fails to report a change within the required time frame or fails to provide all required information within the required time frames, the increase will be applied retroactively, to the 1st of the month following the date of the action. In this case, the PHA will not provide 30 days’ notice to the family. Additionally, the family will be responsible for any overpaid subsidy and may be offered a repayment agreement in accordance with the policies in Chapter 16. If the family share of the rent is to decrease: The decrease will be effective on the first day of the month following the month in which the change was reported and all required documentation was submitted. When income is calculated using an anticipated annual average income, PHA may determine that a change is not necessary. A downward change may not be made if it is determined that the change is temporary (less than 30 consecutive days). 12.A.b Packet Pg. 1683 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 11-14 PART III: RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT 11-III.A. OVERVIEW After gathering and verifying required information for an annual or interim reexamination, the PHA must recalculate the family share of the rent and the subsidy amount, and notify the family and owner of the changes [24 CFR 982.516(d)(2), HCV 12-6 and 12-10]. While the basic policies that govern these calculations are provided in Chapter 6, this part lays out policies that affect these calculations during a reexamination. 11-III.B. CHANGES IN PAYMENT STANDARDS AND UTILITY ALLOWANCES In order to calculate the family share of the rent and HAP amount correctly, changes in payment standards, subsidy standards, or utility allowances may need to be update d and included in the PHA’s calculations. Specific policies governing how subsidy standards, payment standards, and utility allowances are applied are discussed below. Payment Standards [24 CFR 982.505] The family share of the rent and HAP calculations mu st use the correct payment standard for the family, taking into consideration the family unit size, the size of unit, and the area in which the unit is located [HCV GB, p. 12-5]. See Chapter 6 for information on how to select the appropriate payment standard. When the PHA changes its payment standards or the family’s situation changes, new payment standards are applied at the following times: • If the PHA’s payment standard amount changes during the term of the contract, the date on which the new standard is applied depends on whether the standard has increased or decreased: - If the payment standard amount has increased, the increased payment standard will be applied at the first annual reexamination following the effective date of the increase in the payment standard. - If the payment standard amount has decreased, during the term of a HAP contract, the PHA is not required to reduce the payment standard as the HAP contract remains in effect. At the family’s second annual reexamination, the PHA may, but is not required to, apply the decreased payment standard or may gradually implement the reduced payment standard (See Chapter 6 for the PHA’s policy on decreases in the payment standard). 12.A.b Packet Pg. 1684 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 11-15 • If the family moves to a new unit, or a new contract is executed due to change s in the lease (even if the family remains in place) the current payment standard applicable to the family will be used when the new contract is processed. Subsidy Standards [24 CFR 982.505(c)(4)] If there is a change in the family unit size that would ap ply to a family during the contract term, either due to a change in family composition, or a change in the PHA’s subsidy standards (see Chapter 5), the new family unit size must be used to determine the payment standard amount for the family at the family’s first annual reexamination following the change in family unit size. Utility Allowances [24 CFR 982.517(d)] The family share of the rent and HAP calculations must reflect any changes in the family’s utility arrangement with the owner, or in the PHA’s u tility allowance schedule [HCV GB, p. 12-5]. Chapter 16 discusses how utility allowance schedules are established. When there are changes in the utility arrangement with the owner, the PHA must use the utility allowances in effect at the time the new lease and HAP contract are executed. At reexamination, the PHA must use the PHA current utility allowance schedule [HCV GB, p. 18- 8]. PHA Policy Revised utility allowances will be applied to a family’s rent and subsidy calculations at the first annual reexamination after the allowance is adopted. 11-III.C. NOTIFICATION OF NEW FAMILY SHARE AND HAP AMOUNT The PHA must notify the owner and family of any changes in the amount of the HAP payment [HUD-52641, HAP Contract]. The notice must include the following information [HCV GB, p. 12- 6]: • The amount and effective date of the new HAP payment • The amount and effective date of the new family share of the rent • The amount and effective date of the new tenant rent to owner The family must be given an opportunity for an informal hearing regarding the PHA’s determination of their annual or adjusted income, a nd the use of such income to compute the housing assistance payment [24 CFR 982.555(a)(1)(i)] (see Chapter 16). 12.A.b Packet Pg. 1685 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 11-16 PHA Policy The notice will state the family has the right to request an explanation of how the assistance was calculated and if the family disagrees, they have the right to an informal hearing. The notice will include the procedures for requesting an informal hearing. 11-III.D. DISCREPANCIES During an annual or interim reexamination, the PHA may discover that information previously reported by the family was in error, or that the family intentionally misrepresented information. In addition, the PHA may discover errors made by the PHA. When errors resulting in the overpayment or underpayment of subsidy are discovered, corrections will be made in accordance with the policies in Chapter 14. Any overpayments resulting from the family’s failure to report income will be resolved in accordance with Repayment Agreement policies in Chapter 16. 12.A.b Packet Pg. 1686 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-1 Chapter 12 TERMINATION OF ASSISTANCE AND TENANCY HUD regulations specify mandatory and optional grounds for which a PHA can terminate a family’s assistance. They also specify the circumstances under which an owner may terminate the tenancy of an assisted family. This chapter describes the policies that govern mandatory and optional terminations of assistance, and termination of tenancy by the owner. It is presented in three parts: Part I: Grounds for Termination of Assistance. This part describes the various circumstances under which assistance under the program can be terminated by the family or by the PHA. Part II: Approach to Termination of Assistance. This part describes the policies and the process that the PHA will use in evaluating decisions on whether to terminate assistance due to actions or inactions of the family where termination is an option . It specifies the alternatives that the PHA may consider in lieu of termination, the criteria the PHA will use when deciding what action to take and the step s the PHA must take when terminating a family’s assistance. Part III: Termination of Tenancy by the Owner. This part describes the HUD policies that govern the owner’s right to terminate an assisted tenancy. 12.A.b Packet Pg. 1687 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-2 PART I: GROUNDS FOR TERMINATION OF ASSISTANCE 12-I.A. OVERVIEW HUD requires the PHA to terminate assistance for certain actions and inactions of the family and when the family no longer requires assistance due to increases in family income. HUD permits the PHA to terminate assistance for certain other actions or inactions of the family. In addition, a family may decide to withdraw from the program and terminate their HCV assistance at any time by notifying the PHA. 12-I.B. FAMILY NO LONGER REQUIRES ASSISTANCE [24 CFR 982.455] As a family’s income increases, the amount of the housing assistance payment decreases. If the amount of assistance provided by the PHA is reduced to zero, the family's assistance terminates automatically 180 days after the last HAP payment. PHA Policy If a participating family receiving zero assistance experiences a change in circumstances that would result in a HAP payment to the owner, the family must notify the PHA in writing of the change and request an interim reexamination before the expiration of the 180-day period. 12-I.C. FAMILY CHOOSES TO TERMINATE ASSISTANCE The family may request that the PHA terminate housing assistance payments on behalf of the family at any time. PHA Policy The request to terminate assistance shall be made in writing and signed by the head of household, and spouse or co-head if applicable. Before terminating the family’s assistance, the PHA will follow the notice requirements in Section 12 -II.F. 12-I.D. MANDATORY TERMINATION OF ASSISTANCE HUD requires the PHA to terminate assistance in the following circumstances. Eviction [24 CFR 982.552(b)(2), Pub.L. 109-162] The PHA must terminate assistance whenever a family is evicted from a unit assisted under the HCV program for a serious violation of the lease. As discussed further in section 12-II.E, incidents of actual or threatened domestic violence, dating violence, sexual assault, or stalking 12.A.b Packet Pg. 1688 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-3 may not be construed as serious violations of the lease by the victim or threatened victim of such violence or stalking nor considered good cause for terminating assistance or tenancy of the victim or threatened victim. PHA Policy Step 1: The PHA will first determine if the family has been evicted. A family will be considered evicted if the property owner has an unconditional judgment to evict the family, and a writ of possession is issued by the court, and the sheriff posts a notice to vacate and/or the sheriff physically locks the tenant out, and (or the tenant moves in response to that notice to vacate). If the family settles the case prior to trial, the PHA will not consider the family to have been evicted so long as the family meets all of the conditions of the stipulation, including vacating timely if required. The family will not be considered evicted just because a stipulation requires the entry of a judgment, the issuance of a writ of possession and/or the posting of a notice to vacate so long as the family complies with the terms of the stipulation, including vacating timely. In cases where a default judgment has been entered at no fault of the family, the family will not be considered evicted. Step 2: In every case, even if the family has been evicted, the PHA will make a determination if the eviction was based on a serious lease violation or if the lease violation is also a violation of other family obligations. Serious lease violations include, but are not limited to, nonpayment of rent or other amounts due under the lease, disturbance of neighbors, destruction of property, or living or housekeeping habits that cause damage to the unit or premises, criminal activity, and other good cause. The PHA will also consider the property owner’s motivation for filing the eviction. The PHA will make this determination based on available evidence. In making its decision, the PHA will consider the factors described in sections 12-II.D and 12-II.E. Upon consideration of such factors, the PHA may, on a case-by-case basis, choose not to terminate assistance. If a family moves after the owner has given the family an eviction notice for serious lease violations but before a legal eviction order has been issued, termination of assistance is not mandatory. In such cases the PHA will determine whether the family has committed serious violations of the lease based on available evidence and may terminate assistance or take any of the alternative measures described in section 12-II.C. In making its decision, the PHA will consider the factors described in sections 12-II.D and 12-II.E. Upon consideration of such factors, the PHA may, on a case- by-case basis, choose not to terminate assistance. Notification of Eviction [24 CFR 982.551(g)] A family must promptly give the PHA a copy of any owner eviction notice the tenant actually receives. If the family requests assistance to move, but has not provided the PHA with a copy of the eviction within 10 days of receiving the notice of lease termination, the move will be denied. 12.A.b Packet Pg. 1689 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-4 Failure to Provide Consent [24 CFR 982.552(b)(3)] The PHA must terminate assistance if any family member fails to sign and submit any consent form they are required to sign for a regular or interim reexamination. See Chapter 7 for a complete discussion of consent requirements. Failure to Document Citizenship [24 CFR 982.552(b)(4) and [24 CFR 5.514(c)] The PHA must terminate assistance if (1) a family fails to submit required documentation within the required timeframe concerning any family member’s citizenship or immigration status; (2) a family submits evidence of citizenship and eligible immigration status in a timely manner, but United States Citizenship and Immigration Services (USCIS) primary and secondary verification does not verify eligible immigration status of the family; or (3) a family member, as determined by the PHA, has knowingly permitted another individual who is not eligible for assistan ce to reside (on a permanent basis) in the unit. For (3) above, such termination must be for a period of at least 24 months. This does not apply to ineligible noncitizens already in the household where the family’s assistance has been prorated. See Chapter 7 for a complete discussion of documentation requirements. Failure to Disclose and Document Social Security Numbers [24 CFR 5.218(c), Notice PIH 2012- 10] The PHA must terminate assistance if a participant family fails to disclose the complete and accurate social security numbers of each household member and the documentation necessary to verify each social security number. However, if the family is otherwise eligible for continued program assistance, and the PHA determines that the family’s failure to meet the SSN disclosure and documentation requirements was due to circumstances that could not have been foreseen and were outside of the family’s control, the PHA may defer the family’s termination and provide the opportunity to comply with the requirement within a period not to exceed 90 calendar days from the date the PHA determined the family to be noncompliant. PHA Policy The PHA will defer the family’s termination and provide the family with the opportunity to comply with the requirement for a period of 90 calendar days for circumstances beyond the participant’s control such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency, if there is a reasonable likelihood that the participant will be able to disclose an SSN by the deadline. 12.A.b Packet Pg. 1690 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-5 Methamphetamine Manufacture or Production [24 CFR 982.553(b)(1)(ii)] The PHA must terminate assistance if any household member has ever been convicted of the manufacture or production of methamphetamine on the premises of federally assisted housing. Lifetime Registered Sex Offenders [Notice PIH 2012 -28] Should a PHA discover that a member of an assisted household was subject to a lifetime registration requirement at admission and was erroneously admitted after June 25, 2001, the PHA must immediately terminate assistance for the household member. In this situation, the PHA must offer the family the opportunity to remove the ineligible family member from the household. If the family is unwilling to remove that individual from the household, the PHA must terminate assistance for the household. Failure of Students to Meet Ongoing Eligibility Requirements [24 CFR 982.552 (b)(5) and FR 4/10/06] If a student enrolled at an institution of higher education is und er the age of 24, is not a veteran, is not married, does not have dependent children, is not residing with their parents in an assisted household, and is not a person with disabilities receiving assistance as of November 30, 2005, the PHA must the terminate the student’s assistance if, at the time of reexamination, either the student’s income or the income of the student’s parents (if applicable) exceeds the applicable income limit. If a participant household consists of both eligible and ineligible students, the eligible students shall not be terminated, but must be issued a voucher to move with continued assistance in accordance with program regulations and PHA policies, or must be given the opportunity to lease in place if the terminated ineligible student members elect to move out of the assisted unit. Death of the Sole Family Member [24 CFR 982.311(d) and Notice PIH 2010 -9] The PHA must immediately terminate program assistance for deceased single member households. Lifetime Sex Offenders [24 CFR 5.856, 960.204(a)(4) and 982.553(a)(2)] HUD prohibits admission after June 25, 2001, if any member of a household is subject to a State lifetime sex offender registration requirement. This regulation reflects a statutory prohibition. A household receiving assistance with such a member is receiving assistance in violation of federal law. If an owner or the PHA discovers that a household member was erroneously admitted (the household member was subject to a lifetime registration requirement at admission and was admitted after June 25, 2001), the owner or PHA must immediately pursue eviction or 12.A.b Packet Pg. 1691 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-6 termination of assistance for the household member. Regulations for hearings for Housing Choice Voucher (HCV) programs, at 24 CFR § 966 Subpart B and § 982.555, respectively, continue to apply. If the PHA erroneously admitted a lifetime sex offender, the PHA must offer the family the opportunity to remove the ineligible family member from the household. If the family is unwilling to remove that individual from the household, the PHA must terminate assistance for the household. 12-I.E. MANDATORY POLICIES AND OTHER AUTHORIZED TERMINATIONS Mandatory Policies [24 CFR 982.553(b) and 982.551(l)] HUD requires the PHA to establish policies that permit the PHA to terminate assistance if the PHA determines that: • Any household member is currently engaged in any illegal use of a drug, or has a pattern of illegal drug use that interferes with the health, safety, or right to peaceful enjoyment of the premises by other residents • Any household member’s abuse or pattern of abuse of alcohol may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents • Any household member has violated the family’s obligation not to engage in violent criminal activity Use of Illegal Drugs and Alcohol Abuse PHA Policy The PHA will terminate a family’s assistance if any household member is currently engaged in any illegal use of a drug or has a pattern of illegal drug use that interferes with the health, safety, or right to peaceful enjoyment of the premises by other residents. The PHA will terminate assistance if any household member’s abuse or pattern of abuse of alcohol threatens the health, safety, or right to peaceful enjoyment of the premises by other residents. Currently engaged in is defined as any use of illegal drugs during the previous three months. The PHA will consider all credible evidence, including but not limited to, any record of arrests, convictions, or eviction of household members related to the use of illegal drugs or abuse of alcohol. A record or records of arrest will not be used as the sole basis for the termination or proof that the participant engaged in disqualifying criminal activity. 12.A.b Packet Pg. 1692 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-7 In making its decision to terminate assistance, the PHA will consider alternatives as described in Section 12-II.C and other factors described in Sections 12-II.D and 12-II.E. Upon consideration of such alternatives and factors, the PHA may, on a case-by-case basis, choose not to terminate assistance. Drug-Related and Violent Criminal Activity [24 CFR 5.100] Drug means a controlled substance as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802). Drug-related criminal activity is defined by HUD as the illegal manufacture, sale, distribution, or use of a drug, or the possession of a drug with intent to manufacture, sell, distribute or use the drug. Violent criminal activity means any criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force substantial enough to cause, or be reasonably likely to cause, serious bodily injury or property damage. PHA Policy The PHA will terminate a family’s assistance if any household member has violated the family’s obligation not to engage in any drug-related or violent criminal activity (including gang-related criminal activity) during participation in the program. The PHA will consider all credible evidence, including but not limited to, any record of arrests and/or convictions of household members related to drug-related or violent criminal activity, and any eviction or notice to evict based on drug-related or violent criminal activity. A record or records of arrest will not be used as the sole basis for the termination or proof that the participant engaged in disqualifying criminal activity. In making its decision to terminate assistance, the PHA will consider alternatives as described in Section 12-II.C and other factors described in Sections 12-II.D and 12-II.E. Upon consideration of such alternatives and factors, the PHA may, on a case-by-case basis, choose not to terminate assistance. Other Authorized Reasons for Termination of Assistance [24 CFR 982.552(c), 24 CFR 5.2005(c), 24 CFR 984.101(d)] HUD permits the PHA to terminate assistance under a number of other circumstances. It is left to the discretion of the PHA whether such circumstances in general warrant consideration for the termination of assistance. As discussed further in section 12-II.E, the Violence Against Women Act of 2013 explicitly prohibits PHAs from considering incidents of, or criminal activity directly related to, domestic violence, dating violence, sexual assault, or stalking as reasons for terminating the assistance of a victim of such abuse. 12.A.b Packet Pg. 1693 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-8 Additionally, per 24 CFR 984.101(d), PHAs are no longer permitted to terminate assistance to a family due to the family’s failure to meet its obligations under the Family Self -Sufficiency (FSS) contract of participation. PHA Policy The PHA will terminate a family’s assistance if: The family has failed to comply with any family obligations under the program. See Exhibit 12-1 for a listing of family obligations and related PHA policies. Program Violation Warnings: If it is the first occurrence of a violation of family obligations, and the violation was believed by the PHA to be unintentional, and depending on the severity of the circumstances, the participant may be allowed to remain on the program, by signing a Program Violation Warning, and Repayment Agreement if necessary. If the participant violates the same obligation twice, termination will proceed. In no case shall a participant be offered more than a total of two Program Violation Warnings during their participation. The supervisor and/or administrator will determine when a Program Violation Warning is merited. Participants must sign Program Violation Warnings when issued to avoid further violations of Family Obligations. Any family member has been evicted from federally assisted housing in the last five years. Any family member has committed fraud, bribery, or any other corrupt or criminal act in connection with any federal housing p rogram. The family currently owes rent or other amounts to any PHA in connection with Section 8 or public assistance under the 1937 Act. The family has not reimbursed any PHA for amounts the PHA paid to an owner under a contract for rent, damages to the unit, or other amounts owed by the family under the lease. The family has breached the terms of a repayment agreement entered into with the PHA. A family member has engaged in or threatened violent or abusive behavior toward PHA personnel. Abusive or violent behavior towards PHA personnel includes verbal as well as physical abuse or violence. Use of racial epithets, or other language, written or oral, that is customarily used to intimidate may be considered abusive or violent behavior. Threatening refers to oral or written threats or physical gestures that communicate intent to abuse or commit violence. In making its decision to terminate assistance, the PHA will consider alternatives as described in Section 12-II.C and other factors described in Sections 12-II.D and 12-II.E. 12.A.b Packet Pg. 1694 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-9 Upon consideration of such alternatives and factors, the PHA may, on a case-by-case basis, choose not to terminate assistance. Family Absence from the Unit [24 CFR 982.312] The family may be absent from the unit for brief periods. The PHA must establish a policy on how long the family may be absent from the assisted unit. However, the family may not be absent from the unit for a period of more than 90 consecutive calendar days for any reason. Absence in this context means that no member of the family is residing in the unit. PHA Policy If the family is absent from the unit for more than 90 consecutive calendar days, the family’s assistance will be terminated. Notice of termination will be sent in accordance with Section 12-II.F. Insufficient Funding [24 CFR 982.454] The PHA may terminate contracts if the PHA determines, in accordance with HUD requirements, that funding under the consolidated ACC is insufficient to support continued assistance for families in the program. PHA Policy The PHA will determine whether there is sufficient funding to pay for currently assisted families according to the policies in Part VIII of Chapter 16. If the PHA determines there is a shortage of funding, prior to terminating any contracts, the PHA will determine if any other actions can be taken to reduce program costs. The PHA will notify the local Legal Aid Office of any substantial cuts in voucher funding. If after implementing all reasonable cost cutting measures there is not enough funding available to provide continued assistance for current participants, the PHA will terminate contracts as a last resort. Prior to terminating any contracts, the PHA will inform the local HUD field office. The PHA will terminate the minimum number needed in order to reduce HAP costs to a level within the PHA’s annual budget authority. If the PHA must terminate contracts due to insufficient funding, the PHA will do so in accordance with the following criteria and instructions: Families who have been assisted in the HCV program the longest will be the first to be terminated, excluding families that include elderly or disabled family members. Families comprising the required number of special purpose vouchers, including nonelderly disabled (NED), HUD-Veteran’s Affairs Supportive Housing (HUD- VASH), and family unification program (FUP) will be the last to be terminated. 12.A.b Packet Pg. 1695 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-10 PART II: APPROACH TO TERMINATION OF ASSISTANCE 12-II.A. OVERVIEW The PHA is required by regulation to terminate a family’s assistance for certain actions or inactions of the family. For other types of actions or inactions of the family, the regulations give the PHA the authority to either terminate the family’s assistance or to take another action. This part discusses the various actions the PHA may choose to take when it has discretion and outlines the criteria the PHA will use to make its decision about whether or not to terminate assistance. It also specifies the requirements for the notification to the family of the PHA’s intent to terminate assistance. 12-II.B. METHOD OF TERMINATION [24 CFR 982.552(a)(3)] Termination of assistance for a participant may include any or all of the following: • Terminating housing assistance payments under a current contract, • Refusing to enter into a new contract or approve a lease, or • Refusing to process a request for or to provide assistance under portabi lity procedures. 12-II.C. ALTERNATIVES TO TERMINATION OF ASSISTANCE Change in Household Composition As a condition of continued assistance, the PHA may require that any household member who participated in or was responsible for an offense no longer reside in the unit [24 CFR 982.552(c)(2)(ii)]. PHA Policy As a condition of continued assistance, the head of household must certify that the culpable family member has vacated the unit and will not be permitted to visit or to stay as a guest in the assisted unit. The family must present evidence of the former family member’s current address upon PHA request. Repayment of Family Debts PHA Policy If a family owes amounts to the PHA, as a condition of continued assistance, the PHA will require the family to repay the full amount or to enter into a repayment agreement, within 30 days of receiving notice from the PHA of the amount owed. See Chapter 16 for policies on repayment agreements. 12.A.b Packet Pg. 1696 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-11 12-II.D. CRITERIA FOR DECIDING TO TERMINATE ASSISTANCE Evidence For criminal activity, HUD permits the PHA to terminate assistance if a preponderance of the evidence indicates that a household member has engaged in the activity, regardless of whether the household member has been arrested or convicted [24 CFR 982.553(c)]. PHA Policy The PHA will use the concept of the preponderance of the evidence as the standard for making all termination decisions. Preponderance of the evidence is defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not. Preponderance of the evidence may not be determined by the number of witnesses, but by the greater weight of all evidence. Use of Criminal Conviction Records after Admission [24 CFR 5.903] The regulation at 24 CFR 5.903 governs a PHA’s access to and use of criminal conviction records obtained from a “law enforcement agency” such as the National Crime Information Center (NCIC), police departments, and other law enforcement agencies that hold criminal conviction records. While the regulatory listing of permitted uses for these records includes PHA screening of applicants for admission to the HCV program, it specifically excludes the use of records for lease enforcement and eviction of HCV participants and excludes by omission a PHA’s use of records to terminate assistance for participants. While a PHA has regulatory authority to use criminal conviction records for the purpose of applicant screening for admission, there is no corresponding authority to use these records to check for criminal and illegal drug activity by participants, and therefore, PHAs may not use records for this purpose. The limitations, however, do not apply to criminal conviction information searches from non-federal sources (i.e., sources other than the “law enforcement agencies” defined in 24 CFR 5.902(b)). There is no prohibition that bars a PHA from using non-federal sources to conduct criminal background checks of program participants. Consideration of Circumstances [24 CFR 982.552(c)(2)(i)] The PHA is permitted, but not required, to consider all relevant circumstances when determining whether a family’s assistance should be terminated. PHA Policy The PHA will consider the following facts and circumstances when making its decision to terminate assistance: The seriousness of the case, especially with respect to how it would affect other residents’ safety or property 12.A.b Packet Pg. 1697 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-12 The effects that termination of assistance may have on other members of the family who were not involved in the action or failure to act The extent of participation or culpability of individual family members, including whether the culpable family member is a minor or a person with disabilities or (as discussed further in section 12-II.E) a victim of domestic violence, dating violence, sexual assault, or stalking The length of time since the violation occurred, including the age of the individual at the time of the conduct, as well as the family’s recent history and the likelihood of favorable conduct in the future While a record or records of arrest will not be used as the sole basis for termination, an arrest may, however, trigger an investigation to determine whether the participant actually engaged in disqualifying criminal activity. As part of its investigation, the PHA may obtain the police report associated with the arrest and consider the reported circumstances of the arrest. The PHA may also consider: Any statements made by witnesses or the participant not included in the police report Whether criminal charges were filed Whether, if filed, criminal charges were abandoned, dismissed, not prosecuted, or ultimately resulted in an acquittal Any other evidence relevant to determining whether or not the participant engaged in disqualifying activity Evidence of criminal conduct will be considered if it indicated a demonstrable risk to safety and/or property In the case of drug or alcohol abuse, whether the culpable household member is participating in or has successfully completed a supervised drug or alcohol rehabilitation program or has otherwise been rehabilitated successfully The PHA will require the participant to submit evidence of the household member’s current participation in or successful completion of a supervised drug or alcohol rehabilitation program, or evidence of otherwise having been rehabilitated successfully. In the case of program abuse, the dollar amount of the overpaid assistance and whether or not a false certification was signed by the family Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)] If the family includes a person with disabilities, the PHA’s decision to terminate the family’s assistance is subject to consideration of reasonable accommodation in accordance with 24 CFR Part 8. 12.A.b Packet Pg. 1698 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-13 PHA Policy If a family indicates that the behavior of a family member with a disability is related to the reason for a proposed termination of assistance, the PHA will determine whether there is a nexus between the disability and the behavior. If so, upon the family’s request, the PHA will determine whether alternative measures are appropriate as a reasonable accommodation. The PHA will only consider accommodations that can reasonably be expected to address the behavior that is the basis of the proposed termination of assistance. See Chapter 2 for a discussion of reasonable accommodation. Limited English Proficiency The PHA will not terminate an LEP family’s assistance if the family was not provided properly translated notices and therefore not provided an opportunity to correct a violation that could otherwise have been remedied. 12-II.E. TERMINATIONS RELATED TO DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING This section describes the protections against termination of assistance that the Violence Against Women Act of 2013 (VAWA) provides for victims of domestic violence, dating violence, sexual assault, and stalking. For general VAWA requirements, key VAWA definitions, and PHA policies pertaining to notification, documentation, and confidentiality, see section 16-IX of this plan. VAWA Protections Against Termination VAWA provides four specific protections against termination of HCV assistance for victims of domestic violence, dating violence, sexual assault, or stalking. (Note: The second, third, and fourth protections also apply to terminations of tenancy or occupancy by owners participating in the HCV programs, as do the limitations discussed under the next heading.) First, VAWA provides that a PHA may not terminate assistance to a family that moves out of an assisted unit in violation of the lease, with or without prior notification to the PHA, if the move occurred to protect the health or safety of a family member who is or has been the victim of domestic violence, dating violence, sexual assault, or stalking and who reasonably believed they were imminently threatened by harm from further violence if they remained in the unit [24 CFR 982.354(b)(4)]. Second, it provides that an incident or incidents of actual or threa tened domestic violence, dating violence, sexual assault, or stalking may not be construed as a serious lease violation by the victim or as good cause to terminate the assistance of the victim [24 CFR 5.2005(c)(1)]. Third, it provides that criminal activity directly related to domestic violence, dating violence, sexual assault, or stalking may not be construed as cause for terminating the assistance of a 12.A.b Packet Pg. 1699 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-14 tenant if a member of the tenant’s household, a guest, or another person under the tenant’s control is the one engaging in the criminal activity and the tenant or affiliated individual or other individual is the actual or threatened victim of the domestic violence, dating violence, sexual assault, or stalking [24 CFR 5.2005(c)(2)]. Fourth, it gives PHAs the authority to terminate assistance to any tenant or lawful occupant who engages in criminal acts of physical violence against family members or others without terminating assistance to, or otherwise penalizing, the victim of the violence [24 CFR 5.2009(a)]. Limitations on VAWA Protections [24 CFR 5.2005(d) and (e)] VAWA does not limit the authority of a PHA to terminate the assistance of a victim of abuse for reasons unrelated to domestic violence, dating violence, sexual assault, or stalking so long as the PHA does not subject the victim to a more demanding standard than it applies to other program participants [24 CFR 5.2005(d)(1)]. Likewise, VAWA does not limit the authority of a PHA to terminate the assistance of a victim of domestic violence, dating violence, sexual assault, or stalking if the PHA can demonstrate an actual and imminent threat to other tenants or those employed at or providing service to the assisted property if the victim is not terminated from assistance [24 CFR 5.2005(d)(2)]. HUD regulations define actual and imminent threat to mean words, gestures, actions, or other indicators of a physical threat that (a) is real, (b) would occur within an immediate time frame, and (c) could result in death or serious bodily harm [24 CFR 5.2005(d)(2) and (e)]. In determining whether an individual would pose an actual and imminent threat, the factors to be considered include: • The duration of the risk • The nature and severity of the potential harm • The likelihood that the potential harm will occur • The length of time before the potential harm would occur [24 CFR 5.2005(e)] In order to demonstrate an actual and imminent threat, the PHA must have objective evidence of words, gestures, actions, or other indicators. Even when a victim poses an actual and imminent threat, however, HUD regulations authorize a PHA to terminate the victim’s assistance “only when there are no other actions that could be taken to reduce or eliminate the threat” [24 CFR 5.2005(d)(3)]. The Violence Against Women Reauthorization Act of 2013 (VAWA) provides that an individual cannot be denied housing assistance, tenancy, or occupancy rights due to “criminal activity directly relating to domestic violence, dating violence, sexual assault, or stalking, that is engaged in by a member of the household of the tenant or any guest or other person under the control of the tenant, if the tenant or an affiliated individual of the tenant is the victim or threatened victim of such domestic violence, dating, violence, sexual assault, or stalking [42 U.S.C. § 14043e-11(b)(3)(A). VAWA also gives PHAs the authority to “evict, remove or terminate assistance to any individual who is a tenant or lawful occupant of the housing and who engages in criminal activity directly 12.A.b Packet Pg. 1700 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-15 related to domestic violence, dating violence, sexual assault, or stalking against an affiliated individual or other individual, without evicting, removing, terminating assistance to, or otherwise penalizing a victim of such criminal activity who is also a tenant or lawful occupant of the housing [42 U.S.C. § 14043e-11(b)(3)(B)(i).” VAWA does not limit the authority of the PHA to terminate the assistance of any participant if the PHA “can demonstrate an actual and imminent threat to other tenants or those employed at or providing service to the property if that tenant is not evicted or terminated from assistance.” However, situations where this might be relevant are extremely rare. PHA Policy In determining whether a program participant who is a victim of domestic violence, dating violence, sexual assault, or stalking is an actual and imminent threat to other tenants or those employed at or providing service to a property, the PHA will consider the following, and any other relevant, factors: Whether the threat is toward an employee or tenants other than the victim of domestic violence, dating violence, sexual assault or stalking Whether the threat is a physical danger beyond a speculative threat Whether the threat is likely to happen within an immediate time frame Whether the threat to other tenants or employees can be eliminated in some other way, such as by helping the victim relocate to a confidential location or seeking a legal remedy to prevent the perpetrator from acting on the threat If the participant wishes to contest the PHA’s determination that they are an actual and imminent threat to other tenants or employees, the participant may do so as part of the informal hearing. Documentation of Abuse [24 CFR 5.2007] PHA Policy When an individual facing termination of assistance for reasons related to domestic violence, dating violence, sexual assault, or stalking claims protection under VAWA, the PHA will request that the individual provide documentation supporting the claim in accordance with the policies in section 16-IX.D of this plan. The PHA reserves the right to waive the documentation requirement if it determines that a statement or other corroborating evidence from the individual will suffice. In such cases the PHA will document the waiver in the individual’s file. Terminating the Assistance of a Domestic Violence Perpetrator Although VAWA provides protection against termination of assistance for victims of domestic violence, it does not provide such protection for perpetrators. VAWA gives the PHA the explicit 12.A.b Packet Pg. 1701 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-16 authority to “terminate assistance to any individual who is a tenant or lawful occupant and who engages in criminal acts of physical violence against family members or others without terminating assistance to “or otherwise penalizing the victim of such violence who is also a tenant or lawful occupant” [24 CFR 5.2009(a)]. This authority is not dependent on a bifurcated lease or other eviction action by an owner against an individual family member. Further, t his authority supersedes any local, state, or other federal law to the contrary. However, if the PHA chooses to exercise this authority, it must follow any procedures prescribed by HUD or by applicable local, state, or federal law regarding termination of assistance. This means that the PHA must follow the same rules when terminating assistance to an individual as it would when terminating the assistance of an entire family [3/16/07 Federal Register notice on the applicability of VAWA to HUD programs]. If the perpetrator remains in the unit, the PHA continues to pay the ow ner until the PHA terminates the perpetrator from the program. The PHA must not stop paying HAP until 30 days after the owner bifurcates the lease to evict the perpetrator. The PHA may pay HAP for the full month if the 30-day period will end mid-month [Notice PIH 2017-08]. If the perpetrator is the only participant eligible to receive assistance, the PHA will provide any remaining participant a chance to establish eligibility for the program. If the remaining participant cannot do so, the PHA will provide them with 30 days to establish eligibility for another housing program prior to termination of the HAP contract. PHA Policy The PHA will terminate assistance to a family member if the PHA determines that the family member has committed criminal acts of physical violence against other family members or others. This action will not affect the assistance of the remaining, non- culpable family members. In making its decision, the PHA will consider all credible evidence, including, but not limited to, a signed certification (form HUD-5382) or other documentation of abuse submitted to the PHA by the victim in accordance with this section. The PHA will also consider the factors in section 12-II.D. Upon such consideration, the PHA may, on a case-by-case basis, choose not to terminate the assistance of the culpable family member. If the PHA does terminate the assistance of the culpable family member, it will do so in accordance with applicable law, HUD regulations, and the policies in this plan. 12-II.F. TERMINATION NOTICE HUD regulations require PHAs to provide written notice of termination of assistance to a family only when the family is entitled to an informal hearing. However, since the family’s contract and lease will also terminate when the family’s assistance terminates [form HUD-52641], it is a good business practice to provide written notification to both owner and family anytime assistance will be terminated, whether voluntarily or involuntarily. 12.A.b Packet Pg. 1702 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-17 PHA Policy Whenever a family’s assistance will be terminated, the PHA will send a written notice of termination to the family and to the owner. The PHA will also send a form HUD-5382 and form HUD-5380 to the family with the termination notice. The notice will state the date on which the termination will become effective. This date generally will be at least 30 calendar days following the date of the termin ation notice, but exceptions will be made whenever HUD rules, other PHA policies, or the circumstances surrounding the termination require. When the PHA notifies an owner that a family’s assistance will be terminated, the PHA will, if appropriate, advise the owner of their right to offer the family a separate, unassisted lease. SMHA will provide translated copies of the termination notice to LEP participants, in accordance with SMHA’s LEP Plan. If a family whose assistance is being terminated is entitled to an informal hearing, the notice of termination that the PHA sends to the family must meet the additional HUD and PHA notice requirements discussed in section 16-III.C of this plan. VAWA 2013 expands notification requirements to require PHAs to provide notice of VAWA rights and the HUD 5382 form when a PHA terminates a household’s housing benefits. VAWA also requires that this notice of VAWA rights be translated in accordance with HUD’s LEP Guidance and Executive Order 13166. PHA Policy Whenever the PHA decides to terminate a family’s assistance because of the family’s action or failure to act, the PHA will include in its termination notice the VAWA information described in section 16-IX.C of this plan and a form HUD-5382 and form HUD-5380. The PHA will request in writing that a family member wishing to claim protection under VAWA notify the PHA within 14 business days. Still other notice requirements apply in two situations: • If a criminal record is the basis of a family’s termination, the PHA must provide a copy of the record to the subject of the record and the tenant so that they have an opportunity to dispute the accuracy and relevance of the record [24 CFR 982.553(d)]. • If immigration status is the basis of a family’s termination, as discussed in section 12-I.D, the special notice requirements in section 16-III.D must be followed. 12.A.b Packet Pg. 1703 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-18 PART III: TERMINATION OF TENANCY BY THE OWNER 12-III.A. OVERVIEW Termination of an assisted tenancy is a matter between the owner and the family; the PHA is not directly involved. However, the owner is under some constraints when terminating an assisted tenancy. Termination of tenancy for certain reasons will also result in termination of assistance as discussed in this section. 12-III.B. GROUNDS FOR OWNER TERMINATION OF TENANCY [24 CFR 982.310, 24 CFR 5.2005(c), and Form HUD-52641-A, Tenancy Addendum During the term of the lease, the owner is not permitted to terminate the tenan cy except for just cause. During the term of the lease, the owner is not permitted to terminate the tenancy except for serious or repeated violations of the lease, certain violations of state or local law, or other good cause. Serious or Repeated Lease Violations The owner is permitted to terminate the family’s tenancy for serious or repeated violations of the terms and conditions of the lease, except when the violations are related to incidents of actual or threatened domestic violence, dating violence, sexual assault or stalking and the victim is protected from eviction by the Violence against Women Act of 2013 (see section 12-II.E). A serious lease violation includes failure to pay rent or other amounts due under the lease. However, the PHA’s failure to make a HAP payment to the owner is not a violation of the lease between the family and the owner. Violation of Federal, State, or Local Law The owner is permitted to terminate the tenancy if a family member violates federal, state, or local law that imposes obligations in connection with the occupancy or use of the premises. Criminal Activity or Alcohol Abuse The owner may terminate tenancy during the term of the lease if any covered person—meaning any member of the household, a guest, or another person under the tenant’s control—commits any of the following types of criminal activity (for applicable definitions see 24 CFR 5.100): • Any criminal activity that threatens the health or safety of, or the right to peaceful enjoyment of the premises by, other residents (including property management staff residing on the premises) • Any criminal activity that threatens the health or safety of, or the right to peaceful enjoyment of their residences by, persons residing in the immediate vicinity of the premises • Any violent criminal activity on or near the premises • Any drug-related criminal activity on or near the premises 12.A.b Packet Pg. 1704 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-19 However, in the case of criminal activity directly related to domestic violence, dating violence, sexual assault or stalking, if the tenant or an affiliated individual is the victim, the criminal activity may not be construed as cause for terminating the victim’s tenancy (see section 12-II.E). The owner may terminate tenancy during the term of the lease if any member of the household is: • Fleeing to avoid prosecution, custody, or confinement after conviction for a crime or an attempt to commit a crime that is a felony under the laws of the place from which the individual flees, or that, in the case of the State of New Jersey, is a high misdemeanor; or • Violating a condition of probation or parole imposed under federal or state law. The owner may terminate tenancy during the term of the lease if any member of the household has engaged in abuse of alcohol that threatens the health, safety, or right to peaceful enjoyment of the premises by other residents. Evidence of Criminal Activity The owner may terminate tenancy and evict by judicial action a family for criminal activity by a covered person if the owner determines the covered person has engaged in the criminal activity, regardless of whether the covered person has been arrested or convicted for such activity and without satisfying the standard of proof used for a criminal conviction. This is the case except in certain incidents where the criminal activity directly relates to domestic violence, dating violence, sexual assault, or stalking, and the tenant or an affiliated individual is the victim or threatened victim of the domestic violence, dating violence, sexual assault, or stalking. Other Good Cause During the initial lease term, the owner may not terminate the tenancy for “other good cause” unless the owner is terminating the tenancy because of something the family did or failed to do. During the initial lease term or during any extension term, other good cause includes the disturbance of neighbors, destruction of property, or living or housekeeping habits that cause damage to the unit or premises. After the initial lease term, “other good cause” for termination of tenancy by the owner includes: • Failure by the family to accept the offer of a new lease or revision • The owner’s desire to use the unit for personal or family use, or for a purpose other than as a residential rental unit • A business or economic reason for termination of the tenancy (such as sale of the property, renovation of the unit, or desire to lease the unit at a higher rent) After the initial lease term, the owner may give the family notice at any time, in accordance with the terms of the lease. If a property is subject to foreclosure, during the term of the lease, the new owner of the property does not have good cause to terminate the tenant’s lease, unless the new owner will occupy the unit as their primary residence and has provided the tenant with at least a 90-day notice. In that case, the lease may be terminated effective on the date of sale, although the tenant is still entitled to a 90-day notice to vacate. See Section 13-II.G for a discussion of PHA policies relating to units in foreclosure. 12.A.b Packet Pg. 1705 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-20 PHA Policy Property owners in Santa Monica must act in accordance with the Santa Monica City Charter Articles XVIII and XXIII. These articles detail the grounds for owner termination of tenancy, and mandate that an owner may only terminate tenancy if there are documented serious lease violations, certain violations of state or local law, or other good cause. 12-III.C. EVICTION [24 CFR 982.310(e) and (f) and Form HUD-52641-A, Tenancy Addendum] The owner must give the tenant a written notice that specifies the grounds for termination of tenancy during the term of the lease. The tenancy does not terminate before the owner has given this notice, and the notice must be given at or before commencement of the eviction action. The notice of grounds may be included in, or may be combined with, any owner eviction notice to the tenant. Owner eviction notice means a notice to vacate, or a complaint or other initial pleading used under state or local law to commence an eviction action. The owner may only evict the tenant from the unit by instituting a court action. The owner must give the PHA a copy of any eviction notice at the same time the owner notifies the family. The family is also required to give the PHA a copy of any eviction notice (see Chapter 5). PHA Policy If the eviction action is finalized in court, the owner must provide the PHA with documentation related to the eviction, including notice of the eviction date, as soon as possible, but no later than 5 business days following the court-ordered eviction. 12-III.D. DECIDING WHETHER TO TERMINATE TENANCY [24 CFR 982.310(h), 24 CFR 982.310(h)(4)] An owner who has grounds to terminate a tenancy is not required to do so and may consider all of the circumstances relevant to a particular case before making a decision. These might include: • The nature of the offending action • The seriousness of the offending action; • The effect on the community of the termination, or of the owner’s failure to terminate the tenancy; • The extent of participation by the leaseholder in the offending action; 12.A.b Packet Pg. 1706 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-21 • The effect of termination of tenancy on household members not involved in the offending activity; • The demand for assisted housing by families who will adhere to lease responsibilities; • The extent to which the leaseholder has shown personal responsibility and taken all reasonable steps to prevent or mitigate the offending action; • The effect of the owner's action on the integrity of the program. The owner may require a family to exclude a household member in order to co ntinue to reside in the assisted unit, where that household member has participated in or been culpable for action or failure to act that warrants termination. In determining whether to terminate tenancy for illegal use of drugs or alcohol abuse by a household member who is no longer engaged in such behavior, the owner may consider whether such household member is participating in or has successfully completed a supervised drug or alcohol rehabilitation program or has otherwise been rehabilitated successfully (42 U.S.C. 13661). For this purpose, the owner may require the tenant to submit evidence of the household member's current participation in, or successful completion of, a supervised drug or alcohol rehabilitation program or evidence of otherwise having been rehabilitated successfully. The owner's termination of tenancy actions must be consistent with the fair housing and equal opportunity provisions in 24 CFR 5.105. An owner’s decision to terminate tenancy for incidents related to domestic violence, dat ing violence, sexual assault, or stalking is limited by the Violence against Women Act of 2005 (VAWA) and the conforming regulations in 24 CFR Part 5, Subpart L. (See section 12-II.E.) 12-III.E. EFFECT OF TENANCY TERMINATION ON THE FAMILY’S ASSISTANCE If a termination is not due to a serious violation of the lease, and if the PHA has no other grounds for termination of assistance, the PHA may issue a new voucher so that the family can move with continued assistance (see Chapter 10). 12.A.b Packet Pg. 1707 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-22 EXHIBIT 12-1: STATEMENT OF FAMILY OBLIGATIONS Following is a listing of a participant family’s obligations under the HCV program: 1. The family must supply any information that the PHA or HUD determines to be necessary in the administration of the program, including submission of required evidence of citizenship or eligible immigration status. “Information” includes any requested certification, release or other documentation. 2. The family must supply any information requested by the PHA or HUD for use in a regularly scheduled reexamination or interim reexamination of family income and composition in accordance with HUD requirements. 3. The family must disclose and verify social security numbers and sign and submit consent forms for obtaining information. 4. Any information supplied by the family must be true and complete. 5. The family is responsible for any Housing Quality Standards (HQS) breach caused by the family as described in 24 CFR Section 982.404(b). 6. The family must allow the PHA to inspect the unit at reasonable times and after reasonable notice, as described in Chapter 8 of this plan. 7. The family must not commit any serious violation of the lease. PHA Policy The PHA will determine if a family has committed serious violations of the lease based on available evidence, including but not limited to, a court-ordered eviction or an owner’s notice to evict. Serious lease violations will include, but not be limited to, nonpayment of rent, disturbance of neighbors, destruction of property, living or housekeeping habits that cause damage to the unit or premises and criminal activity. Generally, the criterion to be used will be whether or not the reason for the eviction was the fault of the tenant or guests. Any incidents of, or criminal activity related to, domestic violence, dating violence, sexual assault, or stalking will not be construed as serious lease violations by the victim [24 CFR 5.2005(c)(1)]. 8. The family must notify the PHA and the owner before moving out of the unit or terminating the lease. PHA Policy The family must comply with lease requirements regarding written notice to the owner. The family must provide written notice to the PHA at the same time the owner is notified, but no less than 30 days prior to moving or terminating the lease. 9. The family must promptly give the PHA a copy of any owner eviction notice. 12.A.b Packet Pg. 1708 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-23 10. The family must use the assisted unit for residence by the family. The unit must be the family’s only residence. 11. The composition of the assisted family residing in the unit must be approved by the PHA. The family must immediately notify the PHA in writing of the birth, adoption, or court- awarded custody of a child. The family must request PHA approval to add any other family member as an occupant of the unit. No other person (i.e., nobody but members of the assisted family) may reside in the unit (except for a foster child or live-in aide as provided below). PHA Policy The request to add a family member must be submitted in writing and approved prior to the person moving into the unit. The PHA will determine eligibility of the new member in accordance with the policies in Chapter 3. 12. The family must immediately notify the PHA in writing if any family member no longer lives in the unit. 13. If the PHA has given approval, a foster child or a live-in aide may reside in the unit. The PHA has the discretion to adopt reasonable policies concerning residen cy by a foster child or a live-in aide, and to define when PHA consent may be given or denied. For policies related to the request and approval/disapproval of foster children, foster adults, and live-in aides, see Chapter 3 (Sections I.K and I.M), and Chapter 11 (Section II.B). 14. Members of the household may engage in legal profitmaking activities in the unit, but only if such activities are incidental to primary use of the unit for residen ce by members of the family. 15. The family must not sublease or let the unit. PHA Policy Subleasing includes receiving payment to cover rent and utility costs by a person living in the unit who is not listed as a family member. 16. The family must not assign the lease or transfer the unit. 17. The family must supply any information or certification requested by the PHA to verify that the family is living in the unit, or related to family absence from the unit, including any PHA requested information or certification for the purposes of family absences. The family must cooperate with the PHA for this purpose. The family must promptly notify the PHA when the family is absent from the unit. PHA Policy Notice is required under this provision only when all family members will be absent from the unit for an extended period. An extended period is defined as any period greater than 30 calendar days. Written notice must be provided to the PHA prior to the start of the extended absence. 12.A.b Packet Pg. 1709 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 12-24 18.The family must not own or have any interest in the unit (other than in a cooperative and owners of a manufactured home leasing a manufactured home space). 19.Family members must not commit fraud, bribery, or any other corrupt or criminal act in connection with the program (See Chapter 14, Program Integrity for additional information). 20.Family members must not engage in drug-related criminal activity or violent criminal activity or other criminal activity that threatens the health, safety or right to peaceful enjoyment of other residents and persons residing in the immediate vicinity of the premises (See Chapter 12 for HUD and PHA policies related to drug-related and violent criminal activity). 21.Members of the household must not engage in abuse of alcohol in a way that threatens the health, safety or right to peaceful enjoyment of the other residents and persons residing in the immediate vicinity of the premises (See Chapter 12 for a discussion of HUD and PHA policies related to alcohol abuse). 22.An assisted family or member of the family must not receive HCV program assistance while receiving another housing subsidy, for the same unit or a different unit under any other federal, state or local housing assistance program. 23.A family must not receive HCV program assistance while residing in a unit owned by a parent, child, grandparent, grandchild, sister or brother of any member of the family, unless the PHA has determined (and has notified the owner and the family of such determination) that approving rental of the unit, notwithstanding such relationship, would provide reasonable accommodation for a family member who is a person with disabilities. [Form HUD-52646, Voucher] 24.The family must immediately notify the PHA in writing of any increases in family income or assets. 25.The family must immediately notify the PHA in writing when a full-time adult student is no longer enrolled and/or attending school full-time. 26.The family must pay utility bills and provide and maintain any appliances that the owner is not required to provide under the lease [Form HUD-52646, Voucher]. 27.The family (including each family member) must not damage the unit or premises (other than damage from ordinary wear and tear) or permit any guest to damage the unit or premises. 28.The family agrees not to pay the owner/landlord any additional compensation (either monetary or other) other than that which is approved by th e lease or approved by the PHA. 29.The family must not engage in or threaten abusive or violent behavior towards any PHA employee or representative. 12.A.b Packet Pg. 1710 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 13-1 Chapter 13 OWNERS INTRODUCTION Owners play a major role in the programs by supplying decent, safe, and sanitary housing for participating families. The term “owner” refers to any person or entity with the legal right to lease or sublease a unit to a participant in the programs [24 CFR 982.4(b)]. The term “owner” includes a principal or other interested party [24 CFR 982.453; 24 CFR 982.306(f)], such as a designated agent of the owner. Owners have numerous responsibilities under the program, including screening and leasing to families, maintaining the dwelling unit, enforcing the lease, and complying with various contractual obligations. The chapter is organized in two parts: Part I: Owners in the Program. This part discusses the role of an owner in the PHA’s program and highlights key owner rights and responsibilities. Part II: HAP Contracts. This part explains provisions of the contract and the relationship between the PHA and the owner as expressed in the contract. For detailed information about program responsibilities and processes, including PHA policies in key areas, owners will need to refer to several other chapters in this plan. Where appropriate, Chapter 13 will reference the other chapters. 12.A.b Packet Pg. 1711 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 13-2 PART I. OWNERS IN THE PROGRAM 13-I.A. OWNER RECRUITMENT AND RETENTION [HCV GB, pp. 2-4 to 2-6; HCV Landlord Strategy Guidebook for PHAs] Recruitment PHAs are responsible for ensuring that very low income families have access to all types and ranges of affordable housing in the PHA’s jurisdiction, particularly housing outside areas of poverty or minority concentration. A critical element in fulfilling this responsibility is for the PHA to ensure that a sufficient number of owners, representing all types and ranges of affordable housing in the PHA’s jurisdiction, are willing to participate in the programs. To accomplish this objective, PHAs must identify and recruit new owners to participate in the program. If the PHA will be conducting outreach events, the PHA must ensure that notices and communications during outreach events are provided in a manner that is effective for persons with hearing, visual, and other communications-related disabilities. PHAs must also take reasonable steps to ensure meaningful access to programs to persons with limited English proficiency. PHA Policy The PHA will conduct owner outreach to ensure that owners are familiar with the program and its advantages. The PHA will actively recruit property owners with property located outside areas of poverty and minority concentration. These outreach strategies will include: Distributing an owner packet of printed material about the program to property owners and managers Contacting property owners and managers by phone or in-person Holding owner recruitment/information meetings. Participating in community-based organizations comprised of private property and apartment owners and managers Developing working relationships with owners, apartment associations, industry investor groups, and real estate brokers associations To the extent practical, partnering with and attending events hosted by other area agencies to deliver information about the HCV program Outreach strategies will be monitored for effectiveness and adapted accordingly. Retention In addition to recruiting owners to participate in the programs, the PHA must also provide the kind of customer service that will encourage participating owners to remain active in the program. 12.A.b Packet Pg. 1712 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 13-3 PHA Policy All PHA activities that may affect an owner’s ability to lease a unit will be processed as rapidly as possible, in order to minimize vacancy losses for owners. The PHA will provide owners with a factsheet that explains the programs, including HUD and PHA policies and procedures, in easy-to-understand language. The PHA will give special attention to helping new owners succeed through activities such as: Providing the owner with a designated PHA contact person. Coordinating inspection and leasing activities between the PHA, the owner, and the family. Initiating telephone contact with the owner to explain the inspection process and providing an inspection booklet and other resource mater ials about HUD housing quality standards. Providing other written information about how the program operates through a landlord handbook, including answers to frequently asked questions. Contacting owners via emails or texts to disseminate information. Additional services may be undertaken on an as-needed basis, and as resources permit. 13-I.B. BASIC HCV PROGRAM REQUIREMENTS HUD requires the PHA to assist families in their housing search by providing the family with a list of landlords or other parties known to the PHA who may be willing to lease a unit to the family, or to help the family find a unit. Although the PHA cannot maintain a list of owners that are pre-qualified to participate in the program, owners may indicate to the PHA their willingness to lease a unit to an eligible family, or to help the family find a unit [24 CFR 982.301(b)(11)]. PHA Policy Owners that wish to indicate their willingness to lease a unit to an eligible family or to help the family find a unit must notify the PHA. The PHA will maintain a listing of such units and provide this listing to the family as part of the informational briefing packet if available. When a family approaches an owner to apply for tenancy, the owner is responsible for screening the family and deciding whether to lease to the family, just as the owner would with any potential unassisted tenant. The PHA has no liability or responsibility to the owner or other persons for the family’s behavior or suitability for tenancy. See chapters 3 and 9 for more detail on tenant family screening policies and process. 12.A.b Packet Pg. 1713 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 13-4 If the owner is willing, the family and the owner must jointly complete a Request for Tenancy Approval (RTA, Form HUD 52517), which constitutes the family's request for assistance in the specified unit, and which documents the owner's willingness to lease to the family and to foll ow the program’s requirements. When submitted to the PHA, this document is the first step in the process of obtaining approval for the family to receive the financial assistance it will need in order to occupy the unit. Also submitted with the RTA is a copy of the owner’s proposed dwelling lease, including the HUD-required Tenancy Addendum (Form HUD-52641-A). See Chapter 9 for more detail on request for tenancy approval policies and process. HUD regulations stipulate requirements for the approval of an assisted tenancy. The owner must be qualified to participate in the program [24 CFR 982.306]. Some owners are precluded from participating in the program, or from renting to a particular family, either because of past history with this or another federal housing program, or because of certain conflicts of interest. Owner qualifications are discussed later in this chapter. The selected unit must be of a type that is eligible for the program [24 CFR 982.305(a)]. Certain types of dwelling units cannot be assisted under the program. Oth er types may be assisted under certain conditions. See chapter 9 for more detail on unit eligibility policies and process. The selected unit must meet HUD’s Housing Quality Standards (HQS) and/or equivalent state or local standards approved by HUD [24 CFR 982.305(a)]. The PHA will inspect the owner’s dwelling unit at least annually to ensure that the unit continues to meet HQS requirements. See chapter 8 for a discussion of the HQS standards, and policies for HQS inspections at initial lease- up and throughout the family’s tenancy. The PHA must determine that the proposed rent for the unit is reasonable [24 CFR 982.305(a)]. The rent must be reasonable in relation to comparable unassisted units in the area and must not be in excess of rents charged by the owner for comparable, unassisted units on the premises. See chapter 8 for a discussion of requirements and policies on rent reasonableness, rent comparability and the rent reasonableness determination process. At initial lease-up of a unit, if the gross rent exceeds the applicable payment standard, the PHA must ensure that the family share does not exceed 40 percent of the family’s monthly adjusted income [24 CFR 982.305(a)]. See chapter 6 for a discussion of the calculation of family income, family share of rent and HAP. The dwelling lease must comply with all program requirements [24 CFR 982.308]. Owners are encouraged to use their standard leases when renting to an assisted family. The HUD Tenancy Addendum includes the HUD requirements governing the tenancy and must be added word- for-word to the owner’s lease. See chapter 9 for a discussion of the dwelling lease and tenancy addendum, including lease terms and provisions. The PHA and the owner must execute a Contract (Form HUD-52641). The contract format is prescribed by HUD. See Chapter 9 for a discussion of the HUD requirements for execution of the contract. 12.A.b Packet Pg. 1714 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 13-5 13-I.C. OWNER RESPONSIBILITIES [24 CFR 982.452] The basic owner responsibilities in the program are outlined in the regulations as follows: • Complying with all of the owner's obligations under the contract and the lease • Performing all management and rental functions for the assisted unit, including selecting a voucher-holder to lease the unit, and deciding if the family is suitable for tenancy of the unit • Maintaining the unit in accordance with the Housing Quality Standards (HQS), in cluding performance of ordinary and extraordinary maintenance • Complying with equal opportunity requirements • Preparing and furnishing to the PHA information required under the HAP contract • Collecting and the security deposit, the tenant rent, and any charges for unit damage by the family. • Enforcing tenant obligations under the dwelling lease. • Paying for utilities and services that are not the responsibility of the family as specified in the lease • Allowing reasonable modifications to a dwelling unit occupied or to be occupied by a disabled person [24 CFR 100.203] • Comply with the Violence Against Women Reauthorization Act of 2013 (VAWA) when screening and terminating tenants. 13-I.D. OWNER QUALIFICATIONS The PHA does not formally approve an owner to participate in the program. However, there are several criteria where the PHA may deny approval of an assisted tenancy based on past owner behavior, conflict of interest, or other owner-related issues. No owner has a right to participate in the program [24 CFR 982.306(e)]. Owners Barred from Participation [24 CFR 982.306(a) and (b)] The PHA must not approve the assisted tenancy if the PHA has been informed that the owner has been debarred, suspended, or subject to a limited denial of participation under 24 CFR part 24. HUD may direct the PHA not to approve a tenancy request if a court or administrative agency has determined that the owner violated the Fair Housing Act or other federal equal opportunity requirements, or if such an action is pending. 12.A.b Packet Pg. 1715 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 13-6 Leasing to Relatives [24 CFR 982.306(d), HCV GB p. 11-2] The PHA must not approve a tenancy if the owner is the parent, child, grandparent, grandchild, sister, or brother of any member of the family. The PHA may make an exception as a reasonable accommodation for a family member with a disability. The owner is required to certify that no such relationship exists. This restriction applies at the time that the family receives assistance under the program for occupancy of a particular unit. Current contracts on behalf of owners and families that are related may continue, but any new leases or contracts for these families may not be approved. PHA Policy In cases where the owner and tenant bear the same last name, the PHA may, at its discretion, require the family and or owner to certify whether they are related to each other in any way. Conflict of Interest [24 CFR 982.161; HCV GB p. 8-19; Form HUD-52641, Section 13] The PHA must not approve a tenancy in which any of the following classes of persons has any interest, direct or indirect, during tenure or for one year thereafter: • Any present or former member or officer of the PHA (except a participant commissioner) • Any employee of the PHA, or any contractor, subcontractor or agent o f the PHA, who formulates policy or who influences decisions with respect to the programs • Any public official, member of a governing body, or State or local legislator, who exercises functions or responsibilities with respect to the programs • Any member of the Congress of the United States Such “covered individual” may not have any direct or indirect interest in the HAP contract or in any benefits or payments under the contract (including the interest of an immediate family member of such covered individual) while such person is a covered individual or for one year thereafter. Immediate family member means the spouse, parent (including a stepparent), child (including a stepchild), grandparent, grandchild, sister, or brother (including a stepsister or stepbrother) of any covered individual. HUD may waive the conflict of interest requirements, except for members of Congress, for good cause. The PHA must submit a waiver request to the appropriate HUD Field Office for determination. Any waiver request submitted by the PHA must include the following [HCV Guidebook pp.11-2 and 11-3]: • Complete statement of the facts of the case; • Analysis of the specific conflict of interest provision of the HAP contract and justification as to why the provision should be waived; 12.A.b Packet Pg. 1716 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 13-7 • Analysis of and statement of consistency with state and local laws. The local HUD office, the PHA, or both parties may conduct this analysis. Where appropriate, an opinion by the state’s attorney general should be obtained; • Opinion by the local HUD office as to whether there would be an appearance of impropriety if the waiver were granted; • Statement regarding alternative existing housing available for lease under the HCV program or other assisted housing if the waiver is denied; • If the case involves a hardship for a particular family, statement of the circumstances and discussion of possible alternatives; • If the case involves a public official or member of the governing body, explanation of their duties under state or local law, including reference to any re sponsibilities involving the program; • If the case involves employment of a family member by the PHA or assistance under the program for an eligible PHA employee, explanation of the responsibilities and duties of the position, including any related to the program; • If the case involves an investment on the part of a member, officer, or employee of the PHA, description of the nature of the investment, including disclosure/divestiture plans. Where the PHA has requested a conflict of interest waiver, the PHA may not execute the contract until HUD has made a decision on the waiver request. PHA Policy In considering whether to request a conflict of interest waiver from HUD, the PHA will consider certain factors such as consistency of the waiver with state and local laws; the existence of alternative housing available to families, the individual circumstances of a particular family; the specific duties of individuals whose positions present a possible conflict of interest; the nature of any financial investment in th e property and plans for disclosure/divestiture; and the possible appearance of impropriety. Owner Actions That May Result in Disapproval of a Tenancy Request [24 CFR 982.306(c)] HUD regulations permit the PHA to disapprove a request for tenancy for various actions and inactions of the owner. If the PHA disapproves a request for tenancy because an owner is not qualified, it may not terminate the contract for any assisted families that are already living in the owner’s properties unless the owner has violated the HAP contract for those units [HCV GB p. 11-4]. PHA Policy The PHA will refuse to approve a request for tenancy if the PHA becomes aware that any of the following are true: 12.A.b Packet Pg. 1717 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 13-8 The owner has violated obligations under a contract under Section 8 of the 1 937 Act (42 U.S.C. 1437f); The owner has committed fraud, bribery or any other corrupt or criminal act in connection with any federal housing program; The owner has engaged in any drug-related criminal activity or any violent criminal activity; The owner has a history or practice of non-compliance with the HQS for units leased under the tenant-based programs, or with applicable housing standards for units leased with project-based Section 8 assistance or leased under any other federal housing program; The owner has a history or practice of failing to terminate tenancy of tenants of units assisted under Section 8 or any other federally assisted housing program for activity engaged in by the tenant, any member of the household, a guest or another person under the control of any member of the household that: (i) Threatens the right to peaceful enjoyment of the premises by other residents; (ii) Threatens the health or safety of other residents, of employees of the PHA, or of owner employees or other persons engaged in management of the housing; (iii) Threatens the health or safety of, or the right to peaceful enjoyment of their residences, by persons residing in the immediate vicinity of the premises; or (iv) Is drug-related criminal activity or violent criminal activity; The owner has a history or practice of renting units that fail to meet state or local housing codes; The owner has not paid state or local real estate taxes, fines, or assessment; The owner has engaged in or threatened violent or abusive behavior toward PHA personnel; or The proposed unit is in foreclosure. In considering whether to disapprove owners for any of the discretionary reasons listed above, the PHA will consider any mitigating factors. Such factors may include, but are not limited to, the seriousness of the violation in relation to program requirements, the impact on the ability of families to lease units under the program, health and safety of participating families, among others. Upon consideration of such circumstances, the PHA may, on a case-by-case basis, choose to approve an owner. 12.A.b Packet Pg. 1718 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 13-9 Legal Ownership of Unit The following represents PHA policy on legal ownership of a dwelling unit to be assisted under the HCV program. PHA Policy The PHA will only enter into a contractual relationship with the legal owner of a qualified unit. No tenancy will be approved without acceptable documentation of legal ownership (e.g., deed of trust, proof of taxes for most recent year). If a professional management firm represents the owner, the PHA will require a letter from the owner verifying this arrangement. The PHA will also require a Tax ID number for tax purposes and bank deposit information for direct deposit. No housing assistance payment will be made prior to the PHA receiving these documents. 13-I.E. NON-DISCRIMINATION [HAP Contract – Form HUD-52641] The owner must not discriminate against any person because of race, color, religion, sex, national origin, age, familial status, disability, or status as a victim of domestic violence, dating violence, sexual assault, or stalking, in connection with any actions or responsibilities under the program and the contract with the PHA. The owner must cooperate with the PHA and with HUD in conducting any equal opportunity compliance reviews and complaint investigations in connection with the program and the contract with the PHA. See Chapter 2 for a more thorough discussion of Fair Housing and Equal Opportunity requirements in the program. 12.A.b Packet Pg. 1719 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 13-10 PART II. HAP CONTRACTS 13-II.A. OVERVIEW The contract represents a written agreement between the PHA and the owner of the dwelling unit occupied by an assisted family. The contract spells out the owner’s responsibilities under the program, as well as the PHA’s obligations. Under the contract, the PHA agrees to make housing assistance payments to the owner on behalf of the family approved by the PHA to occupy the unit. The contract is used for all tenant-based program tenancies except for assistance under the Section 8 homeownership program, and assistance to families that own a manufactured h ome and use their assistance to lease the space for the manufactured home. See chapter 15 for a discussion of any special housing types included in the PHA’s HCV program. When the PHA has determined that the unit meets program requirements and the tenancy is approvable, the PHA and owner must execute the contract. See chapter 9 for a discussion of the leasing process, including provisions for execution of the contract. 13-II.B. HAP CONTRACT CONTENTS The contract format is required by HUD, specifically Housing Assistance Payment (HAP) Contract, Form HUD-52641. The HAP contract contains three parts. Part A of the contract includes basic contract information: the names of the tenant and all household members, the address of the contract unit, start and end dates of initial lease term, the amount of initial monthly rent to owner, the amount of initial housing assistance payment, the utilities and appliances to be supplied by owner and tenant, and the signatures of the PHA representative and owner [HCV Guidebook, pp 11-10 and 11-11]. In general, the contract cannot be modified. However, PHAs do have the discretion to add language to Part A of the contract which prohibits the owner from collecting a security deposit in excess of private market practices or in excess of amounts charged to unassisted tenants. PHA policy on the amount of security deposit an owner may collect is found in Chapter 9. PHAs also have the discretion to add language to Part A of the contract that defines when the housing assistance payment by the PHA is deemed received by the owner (e.g., upon mailing by the PHA or actual receipt by the owner). PHA Policy The PHA has not adopted a policy that defines when the housing assistance payment by the PHA is deemed received by the owner. Therefore, no modifications to the contract will be necessary. 12.A.b Packet Pg. 1720 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 13-11 Part B is the body of the contract. It describes in detail program requirements affecting the owner and owner roles and responsibilities under the program. Most of the requirements contained in Part B of the HAP contract are outlined elsewhere in this plan. Topics addressed in Part B include: • Lease of Contract Unit • Maintenance, Utilities, and Other Services • Term of Contract • Provision and Payment of Utilities and Appliances • Rent to Owner: Reasonable Rent • PHA Payment to Owner • Prohibition of Discrimination • Owner’s Breach of HAP Contract • PHA and HUD Access to Premises and Owner’s Records • Exclusion of Third Party Rights • Conflict of Interest • Assignment of the HAP Contract • Written Notices • Entire Agreement Interpretation Part C of the contract includes the Tenancy Addendum (Form HUD-52641-A). The addendum sets forth the tenancy requirements for the program and the composition of the household, as approved by the PHA. The tenant has the right to enforce the Tenancy Addendum against the owner. The terms of the Tenancy Addendum prevail over any other provisions of the lease. PHA Policy To cover the special requirements of the HOME Program, the PHA requires a Lease Addendum to be executed between the tenant and the landlord, which covers the prohibited lease provisions that may not be enforced by the landlord. 13-II.C. HAP CONTRACT PAYMENTS General During the term of the contract, and subject to the provisions of the contract, the PHA must make monthly HAP payments to the owner on behalf of the family at the beginning of each month. If a lease term begins after the first of the month, the HAP payment for the first month is prorated for a partial month. 12.A.b Packet Pg. 1721 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 13-12 The amount of the payment is determined according to the policies des cribed in Chapter 6 and is subject to change during the term of the contract. The PHA must notify the owner and the family in writing of any changes in the HAP payment. HAP payments can be made only during the lease term, and only while the family is residing in the unit. The monthly HAP payment by the PHA is credited toward the monthly rent to owner under the family’s lease. The total of the rent paid by the tenant and the HAP payment is equal to the rent to owner as specified in the lease. The family is not responsible for payment of the HAP payment, and the PHA is not responsible for payment of the family share of rent. The family’s share of the rent cannot be more than the difference between the rent to owner and the HAP payment. The owner may not demand or accept any rent payment from the tenant in excess of this maximum [24 CFR 982.451(b)(4)]. The owner may not charge the tenant extra amounts for items customarily included in rent in the locality or provided at no additional cost to unsubsidized tenants in the premises [24 CFR 982.510(c)]. See Chapter 9 for a discussion of separate, non-lease agreements for services, appliances and other items that are not included in the lease. If the owner receives any excess HAP from the PHA, the excess amount must be returned immediately. If the PHA determines that the owner is not entitled to all or a portion of the HAP, the PHA may deduct the amount of overpayment from any amounts due to the owner, including amounts due under any other Section 8 HCV contract. See Chapter 16 for additional detail on owner reimbursement of HAP overpayments. PHA Policy The PHA requires property owners to participate in direct deposit of HAP payments. To begin direct deposit service, property owners must provide a completed Direct Deposit Authorization form. Owner Certification of Compliance Unless the owner complies with all provisions of the contract, the owner is not entitled to receive housing assistance payments under the contract [HAP Contract – Form HUD-52641]. By accepting the monthly check from the PHA, the owner certifies to compliance with the terms of the contract. This includes certification that the owner is maintaining the unit and premises in accordance with HQS; that the contract unit is leased to the tenant family and, to the best of the owner’s knowledge, the family resides in the unit as the family’s only residence; the rent to owner does not exceed rents charged by the owner for comparable unassisted units on the premises; and that the owner does not receive (other than rent to owner) any additional payments or other consideration for rent of the contract unit during the HAP term. 12.A.b Packet Pg. 1722 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 13-13 Late HAP Payments [24 CFR 982.451(a)(5)] The PHA is responsible for making HAP payments promptly when due to the owner, in accordance with the terms of the contract. After the first two calendar months of the contract term, the contract provides for late penalties if the PHA fails to make the HAP payment on time. Penalties for late HAP payments can only be imposed if 1) the penalties are in accordance with generally accepted local rental market practices and law governing penalties for late payment by tenants; 2) it is the owner’s normal business practice to charge late payment penalties for both assisted and unassisted families; and 3) the owner charges the assisted family for late payment of the family’s share of the rent. The PHA is not required to pay a late payment penalty if HUD determines that the payment is late for reasons beyond the PHA’s control. In addition, late payment penalties are not required if the PHA intentionally delays or denies payment as a remedy to an owner breach of the HAP contract [HCV Guidebook p. 11-7]. Termination of HAP Payments [24 CFR 982.311(b)] The PHA must continue making housing assistance payments to the owner in accordance with the contract as long as the tenant continues to occupy the unit and the contract is not violated. HAP payments terminate when the contract terminates or when the tenancy is terminated in accordance with the terms of the lease. If the owner has initiated eviction proceedings against the family and the family continues to reside in the unit, the PHA must continue to make housing assistance payments to the owner until the owner has obtained a court judgment or other process allowing the owner to evict the tenant. PHA Policy The owner must inform the PHA when the owner has initiated eviction proceedings against the family and the family continues to reside in the unit. Notification includes providing a copy of the eviction notice to the PHA at the same time the owner serves the tenant. The owner must inform the PHA when the owner has obtained a court judgment or other process allowing the owner to evict the tenant and provide the PHA with a copy of such judgment or determination. After the owner has obtained a court judgment or other process allowing the owner to evict the tenant, the PHA will continue to make HAP payments to the owner until the family actually moves from the unit or until the family is physically evicted from the unit, whichever is earlier. The owner must inform the PHA of the date when the family moves from the unit or the family is physically evicted from the unit. 12.A.b Packet Pg. 1723 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 13-14 13-II.D. BREACH OF CONTRACT [24 CFR 982.453] Any of the following actions by the owner constitutes a brea ch of the contract: • If the owner violates any obligations under the contract including failure to maintain the unit in accordance with HQS • If the owner has violated any obligation under any other contract • If the owner has committed fraud, bribery or any ot her corrupt or criminal act in connection with any federal housing program • For projects with mortgages insured by HUD or loans made by HUD, if the owner has failed to comply with the regulation for the applicable program; or if the owner has committed fraud, bribery or any other corrupt or criminal act in connection with the mortgage or loan • If the owner has engaged in drug-related criminal activity • If the owner has committed any violent criminal activity If the PHA determines that a breach of the contract has occurred, it may exercise any of its rights and remedies under the contract. The PHA rights and remedies against the owner under the contract include recovery of any HAP overpayment, suspension of housing assistance payments, abatement or reduction of the housing assistance payment, termination of the payment or termination of the contract. The PHA may also obtain additional relief by judicial order or action. The PHA must notify the owner of its determination and provide in writing the reasons for the determination. The notice may require the owner to take corrective action by an established deadline. The PHA must provide the owner with written notice of any reduction in housing assistance payments or the termination of the contract. PHA Policy Before the PHA invokes a remedy against an owner, the PHA will evaluate all information and documents available to determine if the contract has been breached. If relevant, the PHA will conduct an audit of the owner’s records pertaining to the tenancy or unit. If it is determined that the owner has breached the contract, the PHA will consider all of the relevant factors including the seriousness of the breach, the effect on the family, the owner’s record of compliance and the number and seriousness of any prior contract violations. 13-II.E. HAP CONTRACT TERM AND TERMINATIONS The term of the contract runs concurrently with the term of the dwelling lease [24 CFR 982.451(a)(2)], beginning on the first day of the initial term of the lease and terminating on the last day of the term of the lease, including any lease term extensions. 12.A.b Packet Pg. 1724 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 13-15 The contract and the housing assistance payments made under the contract terminate if [HCV Guidebook pp.11-4 and 11-5, pg. 15-3]: • The owner or the family terminates the lease; • The lease expires; • The PHA terminates the contract; • The PHA terminates assistance for the family; • The family moves from the assisted unit. In this situation, the owner is entitled to keep the housing assistance payment for the month when the family moves out of the unit . • 180 calendar days have elapsed since the PHA made the last housing assistance payment to the owner; • The family is absent from the unit for longer than the maximum period permitted by the PHA; • The Annual Contributions Contract (ACC) between the PHA and HUD expires • The PHA elects to terminate the contract. PHA Policy The PHA may elect to terminate the contract in each of the following situations: Available program funding is not sufficient to support continued assistance for families in the program [24 CFR 982.454]; The unit does not meet HQS size requirements due to change in family composition [24 CFR 982.403] – see chapter 8; The unit does not meet HQS [24 CFR 982.404] – see chapter 8; The family breaks up [HUD Form 52641] – see chapter 3; The owner breaches the contract [24 CFR 982.453(b)] – see Section 13-II.D. If the PHA terminates the contract, the PHA must give the owner and the family written notice. The notice must specify the reasons for the termination and the effective date of the termination. Once a contract is terminated, no further HAP payments may be made under that contract [HCV Guidebook pg.15-4]. PHA Policy In all cases, the contract terminates at the end of the calendar month that follows the calendar month in which the PHA gives written notice to the owner. The owner is not entitled to any housing assistance payment after this period and must return to the PHA any housing assistance payment received after this period. If the family moves from the assisted unit into a new unit, even if the new unit is in the same building or complex as the assisted unit, the contract for the assisted unit terminates. A new contract would be required [HCV GB, p. 11-17]. 12.A.b Packet Pg. 1725 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 13-16 When the family moves from an assisted unit into a new unit, t he term of the contract for the new unit may begin in the same month in which the family moves out of its old unit. This is not considered a duplicative subsidy [HCV GB, p. 8-22]. 13-II.F. CHANGE IN OWNERSHIP / ASSIGNMENT OF THE HAP CONTRACT [HUD-52641] The contract cannot be assigned to a new owner without the prior written consent of the PHA. An owner under a contract must notify the PHA in writing prior to a change in the legal ownership of the unit. The owner must supply all information as requested by the PHA. Prior to approval of assignment to a new owner, the new owner must agree to be bound by and comply with the contract. The agreement between the new owner and the former owner must be in writing and in a form that the PHA finds acceptable. The new owner must provide the PHA with a copy of the executed agreement. PHA Policy Assignment of the contract will be approved only if the new owner is qualified to become an owner under the program according to the policies in Section 13 -I.D. of this chapter. The PHA must receive a signed, written request from the existing owner stating the name and address of the new HAP payee and the effective date of the assignment in order to change the HAP payee under an outstanding contract. The new owner must provide a written certification to th e PHA that includes: A copy of the escrow statement or other document showing the transfer of title and recorded deed; A copy of the owner’s IRS Form W-9, Request for Taxpayer Identification Number and Certification, or the social security number of the new owner; The effective date of the contract assignment; A written agreement to comply with the terms of the contract; and A certification that the new owner is not a prohibited relative. If the new owner wants to offer the family a new lease, and the family elects to stay with continued assistance, the PHA will process the leasing in accordance with the policies in Chapter 9. 13-II.G. FORECLOSURE [Notice PIH 2010-49] Families receiving HCV assistance are entitled to certain protections set forth under the Protecting Tenants at Foreclosure Act (PTFA). During the term of the lease, the new owner of 12.A.b Packet Pg. 1726 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 13-17 the property does not have good cause to terminate the tenant’s lease, unless the new owner will occupy the unit as their primary residence and has provided the tenant with at least a 90-day notice. In that case, the lease may be terminated effective on the date of sale, although the tenant is still entitled to a 90-day notice to vacate. Further, the new owner assumes interest in the lease between the prior owner and the tenant and to the HAP contract. Any state or local law that provides longer time periods or other additional protections for tenants also applies. PHA Policy If a property is in foreclosure, the PHA will make all reasonable efforts to determine the status of the foreclosure and ownership of the property and will continue to make payments to the original owner until ownership legally transfers in accordance with the HAP contract. The PHA will attempt to obtain a written acknowledgement of the assignment of the HAP contract from the successor in interest. This will include a request for owner information, including a tax identification number and payment instructions from the new owner. Even if the new owner does not acknowledge the assignment of the HAP contract in writing, the assignment is still effective by operation of law. The PHA will inform the tenant that they must continue to pay rent in accordance with the lease, and if the new owner refuses to accept payment or cannot be identified, the tenant should pay rent into escrow. Failure to pay rent may constitute an independent ground for eviction. In the event that the PHA is unable to make HAP payments to the new owner due to an action or inaction by the new owner that prevents such payments (e.g., rejection of payments or failure to maintain the property according to HQS), or due to an inability to identify the new owner, the PHA will either use the funds to pay: The utilities that are the owner’s responsibility after taking reasonable steps to notify the owner; except that if the unit has been or will be rendered uninhabitable due to termination or threat of termination of service, prior notice is not required. In the latter case, the PHA shall notify the owner within a reasonable time after making the utility payment; or For the family’s reasonable moving costs, including security deposit costs. The PHA will also refer the tenant, as needed, to the local legal aid office in order to ensure adequate protection of the tenant’s rights and enforcement of the successor in interest’s performance under the HAP contract. See Section 12-III.B for a discussion of foreclosure as it pertains to owner termination of tenancy. 12.A.b Packet Pg. 1727 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 14-1 Chapter 14 PROGRAM INTEGRITY INTRODUCTION The PHA is committed to ensuring that subsidy funds made available to the PHA are spent in accordance with HUD requirements. This chapter covers HUD and PHA policies designed to prevent, detect, investigate, and resolve instances of program abuse or fraud. It also describes the actions that will be taken in the case of unintentional errors and omissions. Part I: Preventing, Detecting, and Investigating Errors and Program Abuse. This part presents PHA policies related to preventing, detecting, and investigating errors and program abuse. Part II: Corrective Measures and Penalties. This part describes the corrective measures the PHA must and may take when errors or program abuses are found. 12.A.b Packet Pg. 1728 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 14-2 PART I: PREVENTING, DETECTING, AND INVESTIGATING ERRORS AND PROGRAM ABUSE 14-I.A. PREVENTING ERRORS AND PROGRAM ABUSE HUD created the Enterprise Income Verification (EIV) system to provide PHAs with a powerful tool for preventing errors and detecting program abuse. PHAs are required to use the EIV system in its entirety in accordance with HUD administrative guidance [24 CFR 5.233]. PHAs are further required to: • Provide applicants and participants with form HUD-52675, “Debts Owed to PHAs and Terminations” • Require all adult members of an applicant or participant family to acknowledge receipt of form HUD-52675 by signing a copy of the form for retention in the family file PHA Policy To ensure that the PHA’s programs are administered effectively and according to the highest ethical and legal standards, the PHA will employ a variety of techniques to ensure that both errors and intentional program abuse are rare. The PHA will discuss program compliance and integrity issues during the voucher briefing sessions described in Chapter 5. The PHA will provide each applicant and participant with a copy of “Is Fraud Worth It?” (form HUD-1141-OIG), which explains the types of actions a family must avoid and the penalties for program abuse. The PHA will provide each applicant and participant with a copy of “What You Should Know about EIV,” a guide to the Enterprise Income Verification (EIV) system published by HUD as an attachment to Notice PIH 2017-12. In addition, the PHA will require the head of each household to acknowledge receipt of the guide by signing a copy for retention in the family file. The PHA will place a warning statement about the penalties for fraud (as described in 18 U.S.C. 1001 and 1010) on key PHA forms and form letters that request information from a family or owner. At every regular reexamination, PHA staff will explain any changes in HUD regulations or PHA policy that affect program participants. The PHA will require first-time owners (or their agents) to participate in a briefing session on contract requirements. The PHA will provide owners with ongoing information about the program, with an emphasis on actions and situations to avoid. 12.A.b Packet Pg. 1729 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 14-3 PHA staff will provide the family the opportunity for review and will explain when the family requests clarification, the contents of HUD and PHA required forms when requesting family member signatures. The PHA will inform participants of the investigative process and their rights by providing each participant with the PHA’s Investigation Protocol in the following manner: 1. As part of the annual recertification process; and 2. Immediately prior to commencement of the investigatory interview. The PHA will provide each PHA employee with the necessary training on program rules and the organization’s standards of conduct and ethics. For purposes of this chapter the term error refers to an unintentional error or omission. Program abuse or fraud refers to a single act or pattern of actions that constitute a false statement, omission, or concealment of a substantial fact, made with the intent to deceive or mislead that result in payment of funds in violation of program requirements. 14-I.B. DETECTING ERRORS AND PROGRAM ABUSE In addition to taking steps to prevent errors and program abuse, the PHA will use a variety of activities to detect errors and program abuse. Quality Control and Analysis of Data Under the Section 8 Management Assessment Program (SEMAP), HUD requires the PHA to review a random sample of tenant records annually to determine if the records conform to program requirements and to conduct quality control inspections of a sample of units to ensure HQS compliance [24 CFR, Part 985]. (See Chapter 16 for additional information about SEMAP requirements). PHA Policy In addition to the SEMAP quality control requirements, the PHA will employ a variety of methods to detect errors and program abuse. The PHA routinely will use HUD and other non-HUD sources of up-front income verification. This includes The Work Number and any other private or public databases available to the PHA. At each annual reexamination, current information provided by the family will be compared to information provided at the last annual reexamination to identify inconsistencies and incomplete information. The PHA will compare family-reported income and expenditures to detect possible unreported income. 12.A.b Packet Pg. 1730 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 14-4 Every two years (subject to funding availability) the PHA may obtain a credit report on all adult family members, at no expense to the family. Independent Audits and HUD Monitoring OMB Circular A-133 requires all PHAs that expend $500,000 or more in federal awards annually to have an independent audit (IPA). In addition, HUD conducts periodic on-site and automated monitoring of PHA activities and notifies the PHA of errors and potential cases of program abuse. PHA Policy The PHA will use the results reported in any IPA or HUD monitoring reports to identify potential program abuses as well as to assess the effectiveness of the PHA’s error detection and abuse prevention efforts. Individual Reporting of Possible Errors and Program Abuse PHA Policy The PHA will encourage staff, program participants, and the public to report possible program abuse. 14-I.C. INVESTIGATING ERRORS AND PROGRAM ABUSE When the PHA Will Investigate PHA Policy The PHA will review all referrals, specific allegations, complaints, and tips from any source including other agencies, companies, and individuals, to determine if they warrant investigation. In order for the PHA to investigate, the allegation must contain at least one independently-verifiable item of information, such as the name of an employer or the name of an unauthorized household member. The PHA will investigate when inconsistent or contradictory information is detected through file reviews, the verification process and, when needed, an independent fraud investigator. Consent to Release of Information [24 CFR 982.516] The PHA may investigate possible instances of error or abuse using all available PHA and public records. If necessary, the PHA will require families to sign consent forms for the release of additional information. 12.A.b Packet Pg. 1731 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 14-5 Analysis and Findings PHA Policy The PHA will base its evaluation on a preponderance of the evidence collected during its investigation. Preponderance of the evidence is defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence that as a whole shows that the fact sought to be proved is more probable than not. Preponderance of evidence may not be determined by the number of witnesses, but by the greater weight of all evidence For each investigation the PHA will determine (1) whether an error or program abuse has occurred, (2) whether any amount of money is owed the PHA, and (3) what corrective measures or penalties will be assessed. Consideration of Remedies All errors and instances of program abuse must be corrected prospectively. Whether the PHA will enforce other corrective actions and penalties depends upon the nature of the error or program abuse. PHA Policy In the case of family-caused errors or program abuse, the PHA will take into consideration (1) the seriousness of the offense and the extent of participation or culpability of individual family members, (2) any special circumstances surrounding the case, (3) any mitigating circumstances related to the disability of a family member, (4) the effects of a particular remedy on family members who were not involved in the offense. In the case of owner-caused errors or program abuse, the PHA will take into consideration (1) the seriousness of the offense, (2) the length of time since the violation has occurred, and (3) the effects of a particular remedy on family members who were not involved in the offense. Notice and Appeals PHA Policy The PHA will inform the relevant party in writing of its findings and remedies within 10 business days of the conclusion of the investigation. The notice will include (1) a description of the error or program abuse, (2) the basis on which the PHA determined the error or program abuses, (3) the remedies to be employe d, and (4) the family’s right to appeal the results through the informal review or hearing process, if applicable (see Chapter 16). 12.A.b Packet Pg. 1732 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 14-6 PART II: CORRECTIVE MEASURES AND PENALTIES 14-II.A. SUBSIDY UNDER- OR OVERPAYMENTS A subsidy under- or overpayment includes (1) an incorrect housing assistance payment to the owner, (2) an incorrect family share established for the family, and (3) an incorrect utility reimbursement to a family. Corrections Whether the incorrect subsidy determination is an overpayment or underp ayment of subsidy, the PHA must promptly correct the HAP, family share, and any utility reimbursement prospectively. PHA Policy Increases in the family share will be implemented on the first of the month following a written 30-day notice. Any decreases in family share will become effective the first of the month following the discovery of the error. Reimbursement Whether the family or owner is required to reimburse the PHA or the PHA is required to make retroactive subsidy payments to the owner or family depends upon which party is responsible for the incorrect subsidy payment and whether the action taken was an error or program abuse. Policies regarding reimbursement are discussed in the three sections that follow. 14-II.B. FAMILY-CAUSED ERRORS AND PROGRAM ABUSE Family obligations and general administrative requirements for participating in the program are discussed throughout this plan. This section deals specifically with errors and program abuse by family members. An incorrect subsidy determination caused by a family generally would be the result of incorrect reporting of family composition, income, assets, or expenses, but also would include instances in which the family knowingly allows the PHA to use incorrect information provided by a third party. 12.A.b Packet Pg. 1733 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 14-7 Family Reimbursement to PHA [HCV GB pp. 22-12 to 22-13] PHA Policy In the case of family-caused errors or program abuse, the family will be required to repay any excess subsidy received. The PHA may, but is not required to, offer the family a repayment agreement in accordance with Chapter 16. If the family fails to repay the excess subsidy or creates more than two overpayments in 36 months by failing to report income, the PHA will terminate the family’s assistance in accordance with the policies in Chapter 12. PHA Reimbursement to Family [HCV GB p. 22-12] PHA Policy The PHA will not reimburse the family for any underpayment of assistance when the underpayment clearly is caused by the family. Prohibited Actions An applicant or participant in the program must not knowingly: • Make a false statement to the PHA [Title 18 U.S.C. Section 1001]. • Commit fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program [24 CFR 982.552(c)(iv)]. PHA Policy Any of the following will be considered evidence of family program abuse: Payment to the owner in excess of amounts authorized by the PHA for rent, security deposit, and additional services Offering bribes or illegal gratuities to the PHA Board of Commissioners, employees, contractors, or other PHA representatives Offering payments or other incentives to the owner or a third party as an inducement for the third party to make false or misleading statements to the PHA on the family’s behalf Use of a false name or the use of falsified, forged, or altered documents Intentional misreporting of family information or circumstances (e.g. income, family composition) Omitted facts that were obviously known by a family member (e.g., not reporting employment income) Admission of program abuse by an adult family member 12.A.b Packet Pg. 1734 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 14-8 The PHA may determine other actions to be program abuse based upon a preponderance of the evidence, as defined earlier in this chapter. Penalties for Program Abuse In the case of program abuse caused by a family the PHA may, at its discretion, impose any of the following remedies. • The PHA may require the family to repay excess subsidy amounts paid by the PHA, as described earlier in this section. • The PHA may require, as a condition of receiving or continuing assistance, that a culpable family member not reside in the unit. See policies in Chapter 3 (for applicants) and Chapter 12 (for participants). • The PHA may deny or terminate the family’s assistance following the policies set forth in Chapter 3 and Chapter 12 respectively. • The PHA may refer the family for state or federal criminal prosecution as described in section 14-II.E. 14-II.C. OWNER-CAUSED ERROR OR PROGRAM ABUSE Owner requirements that are part of the regular process of offering, leasing, and maintaining a unit (e.g., HQS compliance, fair housing) are addressed in the appropriate chapters of this plan. This section focuses on errors and program abuse by owners. An incorrect subsidy determination caused by an owner generally would be the result of an incorrect owner statement about the characteristics of the assisted unit (e.g., the number of bedrooms, which utilities are paid by the family). It also includes accepting duplicate housing assistance payments for the same unit in the same month, or after a family no longer r esides in the unit. Owner Reimbursement to the PHA In all cases of overpayment of subsidy caused by the owner, the owner must repay to the PHA any excess subsidy received. The PHA may recover overpaid amounts by withholding housing assistance payments due for subsequent months, or if the debt is large, the PHA may allow the owner to pay in installments over a period of time [HCV GB p. 22-13]. PHA Policy In cases where the owner has received excess subsidy, the PHA will require the owner to repay the amount owed in accordance with the policies in Section 16-IV.B, or by withholding housing assistance payments due for subsequent months. 12.A.b Packet Pg. 1735 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 14-9 Prohibited Owner Actions An owner participating in the program must not: • Make any false statement to the PHA [Title 18 U.S.C. Section 1001]. • Commit fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program [24 CFR 982.453(a)(3)] including: PHA Policy Any of the following will be considered evidence of owner program abuse: Charging the family rent above or below the amount specified by the PHA Charging a security deposit other than that specified in the family’s lease Charging the family for services that are provided to unassisted tenants at no extra charge Knowingly accepting housing assistance payments for any month(s) after the family has vacated the unit Knowingly accepting incorrect or excess housing assistance payments Offering bribes or illegal gratuities to the PHA Board of Commissioners, employees, contractors, or other PHA representatives Offering payments or other incentives to a family as an inducement for the family to make false or misleading statements to the PHA Residing in the unit with an assisted family Remedies and Penalties When the PHA determines that the owner has committed program abuse, the PHA may take any of the following actions: • Require the owner to repay excess housing assistance payments, as discussed earlier in this section and in accordance with the policies in Chapter 16. • Terminate the contract (See Chapter 13). • Bar the owner from future participation in any PHA programs. • Refer the case to state or federal officials for criminal prosecution as described in section 14-II.E. 14-II.D. PHA-CAUSED ERRORS OR PROGRAM ABUSE The responsibilities and expectations of PHA staff with respect to normal program administration are discussed throughout this plan. This section specifically addresses actions of a PHA staff member that are considered errors or program abuse related to the program. Additional standards of conduct may be provided in the PHA personnel policy. 12.A.b Packet Pg. 1736 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 14-10 PHA-caused incorrect subsidy determinations include (1) failing to correctly apply rules regarding family composition, income, assets, and expenses, (2) assigning the incorrect voucher size to a family, and (3) errors in calculation. Repayment to the PHA Neither a family nor an owner is required to repay an overpayment of subsidy if the error or program abuse is caused by PHA staff [HCV GB. 22-12]. PHA Reimbursement to Family or Owner The PHA must reimburse a family for any underpayment of subsidy, regardless of whether the underpayment was the result of staff-caused error or staff or owner program abuse. Funds for this reimbursement must come from the PHA’s administrative fee reserves [HCV GB p. 22 -12]. Prohibited Activities PHA Policy Any of the following will be considered evidence of program abuse by PHA staff : Failing to comply with any program requirements for personal gain Failing to comply with any program requirements as a result of a conflict of interest relationship with any applicant, participant, or owner Seeking or accepting anything of material value from applicants, participating families, vendors, owners, contractors, or other persons who provide services or materials to the PHA Disclosing confidential or proprietary information to outside parties Gaining profit as a result of insider knowledge of PHA activities, policies, or practices Misappropriating or misusing funds Destroying, concealing, removing, or inappropriately using any records related to the program Committing any other corrupt or criminal act in connection with any federal housing program 14-II.E. CRIMINAL PROSECUTION PHA Policy When the PHA determines that program abuse by an owner, family, or PHA staff member has occurred and the amount of overpaid subsidy meets or exceeds the 12.A.b Packet Pg. 1737 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 14-11 threshold for prosecution under local or state law, the PHA will refer the matter to the appropriate entity for prosecution. When the amount of overpaid assistance meets or exceeds the federal threshold, the case will also be referred to the HUD Office of Inspector General (OIG). Other criminal violations related to the program will be referred to the appropriate local, state, or federal entity. 14-II.F. FRAUD AND PROGRAM ABUSE RECOVERIES The PHA may retain a portion of program fraud losses that the PHA recovers from a family or owner through litigation, court order, or a repayment agreement [24 CFR 982.163]. The PHA must be the principal party initiating or sustaining the action to recover amounts due from tenants that are due as a result of fraud and abuse. 24 CFR 792.202 permits the PHA to retain the greater of: • 50 percent of the amount collected from a judgment, litigation (including settlement of a lawsuit) or an administrative repayment agreement, or • Reasonable and necessary costs that the PHA incurs related to the collection including costs of investigation, legal fees, and agency collection fees. The family must be afforded the opportunity for an informal hearing in accordance with requirements in 24 CFR 982.555. If HUD incurs costs on behalf of the PHA related to the collection, these costs must be deducted from the amount retained by the PHA. 12.A.b Packet Pg. 1738 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-1 Chapter 15 SPECIAL HOUSING TYPES [24 CFR 982 Subpart M; New HCV GB, Special Housing Types] INTRODUCTION The PHA may permit a family to use any of the special housing types discussed in this chapter. However, the PHA is not required to permit families receiving assistance in its jurisdiction to use these housing types, except that PHAs must permit use of any special housing type if needed as a reasonable accommodation for a person with a disability. The PHA also may limit the number of families who receive assistance in these housing types and cannot require families to use a particular housing type. No special funding is provided for special housing types. PHA Policy Families will not be permitted to use any special housing types, with the exception of Shared Housing, and manufactured homes where the family owns the home and leases the space, unless use is needed as a reasonable accommodation so that the program is readily accessible to a person with disabilities. Special housing types include single room occupancy (SRO), congregate housing, group homes, shared housing, cooperative housing, manufactured homes where the family owns the home and leases the space, and homeownership [24 CFR 982.601]. A single unit cannot be designated as more than one type of special housing. The PHA cannot give preference to households that wish to live in any of these types of housing and cannot require households to select any of these types of housing [New HCV GB, Special Housing Types, p. 3]. This chapter consists of the following seven parts. Each part contains a description of the housing type and any special requirements associated with it. Except as modified by this chapter, the general requirements of the HCV program apply to special housing types. Part I: Single Room Occupancy Part II: Congregate Housing Part III: Group Homes Part IV: Shared Housing Part V: Cooperative Housing Part VI: Manufactured Homes (including manufactured home space rental) Part VII: Homeownership 12.A.b Packet Pg. 1739 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-2 PART I: SINGLE ROOM OCCUPANCY [24 CFR 982.602 through 982.605; Form HUD-52641; New HCV GB, Special Housing Types, p. 4] 15-I.A. OVERVIEW A single room occupancy (SRO) unit provides living and sleeping space for the exclusive use of the occupant but requires the occupant to share sanitary and/or food preparation facilities with others. More than one person may not occupy an SRO unit. HCV regulations do not limit the number of units in an SRO facility, but the size of a facility may be limited by local ordinances. When providing assistance to an SRO unit, a separate lease and contract are executed for each assisted person. The standard form of the contract is used (form HUD-52641) with the special housing type specified in Part A of the contract, as follows: “This contract is used for the following special housing type under HUD regulations for the Section 8 voucher program: Single room occupancy (SRO) housing.” 15-I.B. PAYMENT STANDARD, UTILITY ALLOWANCE, AND HAP CALCULATION The payment standard for SRO housing is 75 percent of the zero-bedroom payment standard amount on the PHA’s payment standard schedule. The utility allowance for an assisted person residing in SRO housing is 75 percent of the zero- bedroom utility allowance. The HAP for an assisted occupant in an SRO facility is the lower of the SRO payment standard amount minus the TTP or the gross rent for the unit minus the TTP. 15-I.C. HOUSING QUALITY STANDARDS (HQS) HQS requirements described in Chapter 8 apply to SRO housing e xcept that sanitary facilities, and space and security characteristics must meet local code standards for SRO housing. In the absence of applicable local code standards for SRO housing, the following standards apply: • Access: Access doors to the SRO unit must have working locks for privacy. The occupant must be able to access the unit without going through any other unit. Each unit must have immediate access to two or more approved means of exit from the building, appropriately marked and leading to safe and open space at ground level. The SRO unit must also have any other means of exit required by State or local law. • Fire Safety: All SRO facilities must have a sprinkler system that protects major spaces. “Major spaces” are defined as hallways, large common areas, and any other areas specified in local fire, building, or safety codes. SROs must also have hard-wired smoke detectors, and any other fire and safety equipment required by state or local law. 12.A.b Packet Pg. 1740 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-3 Sanitary facilities and space and security standards must meet local code requirements for SRO housing. In the absence of local code standards, the requirements discussed below apply [24 CFR 982.605]. • Sanitary Facilities: At least one flush toilet that can be used in privacy, a lavatory basin, and a bathtub or shower in proper operating condition must be provided for each six persons (or fewer) residing in the SRO facility. If the SRO units are leased only to males, flush urinals may be substituted for up to one half of the required number of toilets. Sanitary facilities must be reasonably accessible from a common hall or passageway to all persons sharing them and may not be located more than one floor above or below the SRO unit. They may not be located below grade unless the SRO units are located on that level. • Space and Security: An SRO unit must contain at least 110 square feet of floor space, and at least four-square feet of closet space with an unobstructed height of at least five feet, for use by the occupant. If the closet space is less than four square feet, the habitable floor space in the SRO unit must be increased by the amount of the deficiency. Exterior doors and windows accessible from outside the SRO unit must be lockable. If no children live in SRO housing, the housing quality standards applicable to lead -based paint do not apply. 12.A.b Packet Pg. 1741 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-4 PART II: CONGREGATE HOUSING [24 CFR 982.606 through 982.609; Form HUD-52641; New HCV GB, Special Housing Types, p. 6] 15-II.A. OVERVIEW Congregate housing is intended for use by elderly persons or persons with disabilities. A congregate housing facility contains a shared central kitchen and dining area and a private living area for the individual household that includes at least a living room, bedroom and bathroom. Food service for residents must be provided. If approved by the PHA, a family member or live-in aide may reside with the elderly person or person with disabilities. The PHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. When providing assistance in congregate housing, a separate lease and contract are executed for each assisted family. The standard form of the contract is used (form HUD-52641) with the special housing type specified in Part A of the contract, as follows: “This contract is used for the following special housing type under HUD regulations for the Section 8 voucher program: Congregate housing.” 15-II.B. PAYMENT STANDARD, UTILITY ALLOWANCE, AND HAP CALCULATION The payment standard for an individual unit in a congregate housing facility is based on the number of rooms in the private living area for the assisted family. If there is only one room in the unit (not including the bathroom or the kitchen, if a kitchen is provided), the PHA must use the payment standard for a zero-bedroom unit. If the unit has two or more rooms (other than the bathroom and the kitchen), the PHA must use the one-bedroom payment standard. The HAP for an assisted occupant in a congregate housing facility is the lower of the applicable payment standard minus the TTP or the gross rent for the unit minus the TTP. The gross rent for the unit for the purpose of calculating assistance is the shelter portion (including utilities) of the resident’s monthly housing expense only. The residents’ costs for food service should not be included in the rent for a congregate housing unit. 15-II.C. HOUSING QUALITY STANDARDS HQS requirements as described in Chapter 8 apply to congregate housing except for the requirements stated below. Congregate housing must have a refrigerator of appropriate size in the private living area of each resident, a central kitchen and dining facilities located within the premises and accessible to the residents, and food service for the residents, that is not provided by the residents themselves. 12.A.b Packet Pg. 1742 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-5 The congregate housing must contain adequate facilities and services for the sanitary disposal of food waste and refuse, including facilities for temporary storage where necessary. The housing quality standards applicable to lead-based paint do not apply unless a child under the age of six is expected to reside in the unit. 12.A.b Packet Pg. 1743 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-6 PART III: GROUP HOME [24 CFR 982.610 through 982.614; Form HUD-52641; New HCV GB, Special Housing Types, p. 8] 15-III.A. OVERVIEW A group home is a state-approved (licensed, certified, or otherwise approved in writing by the state) facility intended for occupancy by elderly persons and/or persons with disabilities. Except for live-in aides, all persons living in a group home, whether assisted or not, must be elderly persons or persons with disabilities. Persons living in a group home must not require continuous medical or nursing care. A group home consists of bedrooms for residents, which can be shared by no more than two people, and a living room, kitchen, dining area, bathroom, and other appropriate social, recreational, or community space that may be shared with other residents. No more than 12 persons may reside in a group home including assisted and unassisted residents and any live-in aides. If approved by the PHA, a live-in aide may live in the group home with a person with disabilities. The PHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. When providing assistance in a group home, a separate lease and contract is executed for each assisted family. The standard form of the contract is used (form HUD-52641) with the special housing type specified in Part A of the contract, as follows: “This contract is used for the following special housing type under HUD regulations for the Section 8 vouche r program: Group home.” 15-III.B. PAYMENT STANDARD, UTILITY ALLOWANCE, AND HAP CALCULATION Unless there is a live-in aide, the family unit size (voucher size) for an assisted occupant of a group home must be zero- or one-bedroom. If there is a live-in aide, the aide must be counted in determining the household’s unit size. The payment standard used to calculate the HAP is the lower of the payment standard for the family unit size or the prorata share of the payment standard for the group home size. The prorata share is calculated by dividing the number of persons in the assisted household by the number of persons (assisted and unassisted) living in the group home. The number of persons in the assisted household equals one assisted person plus any PHA-approved live-in aide. The HAP for an assisted occupant in a group home is the lower of the payment standard minus the TTP or the gross rent minus the TTP. The utility allowance for an assisted occupant in a group home is the prorata share of the family unit size to the utility allowance for the group home. 12.A.b Packet Pg. 1744 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-7 The rents paid for participants residing in group homes are subject to generally applicable standards for rent reasonableness. The rent for an assisted person must not exceed the prorata portion of the reasonable rent for the group home. In determining reasonable rent, the PHA must consider whether sanitary facilities and facilities for food preparation and service are common facilities or private facilities. 12.A.b Packet Pg. 1745 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-8 15-III.C. HOUSING QUALITY STANDARDS The entire unit must comply with HQS requirements described in Chapter 8, except for the requirements stated below. • Sanitary Facilities: A group home must have at least one bathroom in the facility, with a flush toilet that can be used in privacy, a fixed basin with hot and cold running water, and a shower or bathtub with hot and cold running water. A group home may contain private or common bathrooms. However, no more than four residents can be required to share a bathroom. • Food Preparation and Service: Group home units must contain a kitchen and dining area with adequate space to store, prepare, and serve food. The facilities for food preparation and service may be private or may be shared by the residents. The kitchen must contain a range, an oven, a refrigerator, and a sink with hot and cold running water. The sink must drain into an approvable public or private disposal system. • Space and Security: Group homes must contain at least one bedroom of appropriate size for every two people, and a living room, kitchen, dining area, bathroom, and other appropriate social, recreational, or community space that may be shared with other residents. Doors and windows accessible from outside the unit must be lockable. • Structure and Material: To avoid any threat to the health and safety of the residents, group homes must be structurally sound. Elevators must be in good condition. Group homes must be accessible to and usable by residents with disabilities. • Site and Neighborhood: Group homes must be located in a residential setting. The site and neighborhood should be reasonably free from disturbing noises and reverberations, and other hazards to the health, safety, and general welfare of the residents, and should not be subject to serious adverse conditions, such as: - Dangerous walks or steps - Instability - Flooding, poor drainage - Septic tank back-ups - Sewage hazards - Mud slides - Abnormal air pollution - Smoke or dust - Excessive noise - Vibrations or vehicular traffic - Excessive accumulations of trash - Vermin or rodent infestation, and - Fire hazards. The housing quality standards applicable to lead-based paint do not apply unless a child under the age of six is expected to reside in the unit. 12.A.b Packet Pg. 1746 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-9 PART IV: SHARED HOUSING [24 CFR 982.615 through 982.618; Form HUD-52641; Notice PIH 2021-05; New HCV GB, Special Housing Types, p. 11] 15-IV.A. OVERVIEW Families in markets with tight rental conditions or with a prevalence of single-family housing may determine a shared housing living arrangement to be a useful way to secure affordable housing. PHAs offering shared housing as a housing solution may also experience some reduction in the average per-unit-cost (PUC) paid on behalf of assisted families. Shared housing is a single housing unit occupied by an assisted family and another resident or residents. The unit may be a house or an apartment. The shared unit consists of both common space for use by the occupants of the unit and separate private space for each assisted family. An assisted family may share a unit with other persons assisted under the program or with other unassisted persons. Shared housing may be offered in a number of ways, including for-profit co-living (such as a boarding house, single bedroom with common living room/kitchen/dining room) run by a private company [Notice PIH 2021-05]. The owner of a shared housing unit may reside in the unit, but housing assistance may not be paid on behalf of the owner. The resident owner may not be related by blood or marriage to the assisted family. If approved by the PHA, a live-in aide may reside with the family to care for a person with disabilities. The PHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. When shared housing is offered as a housing option, HUD encourages PHAs to consider ways in which the families may be assisted in finding shared housing, including for -profit shared housing matching (such as roommates or single-family homes) and online sites that charge a fee for their matching services, or nonprofit shared housing matching services. HUD further encourages PHAs to include information about this housing possibility in the family’s voucher briefing. PHAs should be aware of potential local legal barriers to HCV participants using shared housing, which can create additional obstacles for shared housing: • Municipalities may have occupancy limits for the number of unrelated persons who may share a housing unit. • Local zoning codes for single family housing may restrict occupancy in certain areas to households whose family members are related by blood. PHAs should work with local jurisdictions to find solutions that encourage affordable housing and are consistent with the Fair Housing Act, Title VI, and other federal, state, and local fair 12.A.b Packet Pg. 1747 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-10 housing laws. PHAs should inform HUD if they encounter barriers to shared housing that may conflict with fair housing laws. When providing assistance in shared housing, a separate lease and contract are executed for each assisted family. The standard form of the contract is used (form HUD-52641) with the special housing type specified in Part A of the contract, as follows: “This contract is used for the following special housing type under HUD regulations for the Section 8 voucher progra m: Shared housing.” 15-IV.B. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION The payment standard for a family in shared housing is the lower of the payment standard for the family unit size (voucher size) or the prorata share of the payment standard for the shared housing unit size. The prorata share is calculated by dividing the number of bedrooms available for occupancy by the assisted family in the private, non-shared space by the total number of bedrooms in the unit. The HAP for a family in shared housing is the lower of the payment standard minus the TTP or the gross rent minus the TTP. The utility allowance for an assisted family living in shared housing is the prorata share of the utility allowance for the shared housing unit. Example: A family holds a 2-bedroom voucher. The family decides to occupy 3 out of 4 bedrooms available in the unit. The utility allowance for a 4-bedroom unit equals $200 The utility allowance for a 2-bedroom unit equals $100 The prorata share of the utility allowance is $150 (3/4 of $200) The PHA will use the 2-bedroom utility allowance of $100. The rents paid for families living in shared housing are subject to generally applicable standards for rent reasonableness. The rent paid to the owner for the assisted family must not exceed the pro-rata portion of the reasonable rent for the shared unit. In determining reasonable rent, the PHA may consider whether sanitary and food preparation areas are private or shared. 15-IV.C. HOUSING QUALITY STANDARDS The PHA may not give approval to reside in shared housing unless the entire unit, including the portion of the unit available for use by the assisted family under its lease, meets the housing quality standards. 12.A.b Packet Pg. 1748 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-11 HQS requirements described in Chapter 8 apply to shared housing except for the requi rements stated below. • Facilities Available for the Family: Facilities available to the assisted family, whether shared or private, must include a living room, a bathroom, and food preparation and refuse disposal facilities. • Space and Security: The entire unit must provide adequate space and security for all assisted and unassisted residents. The private space for each assisted family must contain at least one bedroom for each two persons in the family. The number of bedrooms in the private space of an assisted family must not be less than the family unit size. A zero- bedroom or one-bedroom unit may not be used for shared housing. 12.A.b Packet Pg. 1749 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-12 PART V: COOPERATIVE HOUSING [24 CFR 982.619; New HCV GB, Special Housing Types, p. 14] 15-V.A. OVERVIEW This part applies to rental assistance for a cooperative member residing in cooperative housing. It does not apply to assistance for a cooperative member who has purchased membership under the HCV homeownership option, or to rental assistance for a family that leases a cooperative housing unit from a cooperative member. A cooperative is a form of ownership (nonprofit corporation or association) in which the residents purchase memberships in the ownership entity. Rather than being charged “rent”, a cooperative member is charged a “carrying charge.” The monthly carrying charge includes the member’s share of the cooperative debt service, operating expenses, and necessary payments to cooperative reserve funds. It does not include down payments or other payments to purchase the cooperative unit or to amortize a loan made to the family for this purpose. The occupancy agreement, or lease and other appropriate documents, must provide that the monthly carrying charge is subject to Section 8 limitations on rent to owner, and the rent must be reasonable as compared to comparable unassisted units. When providing assistance in cooperative housing, the standard form of the contract is used with the special housing type specified in Part A of the contract, as follows: “This contract is used for the following special housing type under HUD regulations for the Section 8 voucher program: Cooperative housing.” 15-V.B. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION The payment standard and utility allowance are determined according to regular HCV program requirements. The HAP for a cooperative housing unit is the lower of the payment standard minus the TTP or the gross rent (monthly carrying charge for the unit, plus any utility allowance ) minus the TTP. The monthly carrying charge includes the member’s share of the cooperative debt service, operating expenses, and necessary payments to cooperative reserve funds. The carrying charge does not include down payments or other payments to purchase the cooperative unit or to amortize a loan made to the family for this purpose. 15-V.C. HOUSING QUALITY STANDARDS All standard HQS requirements apply to cooperative housing units. There are no additional HQS requirements. The PHA remedies described in 24 CFR 982.404 do not apply. Rather, if the unit and premises are not maintained in accordance with HQS, the PHA may exercise all available remedies regardless of whether the family or cooperative is responsible for the breach of HQS. 12.A.b Packet Pg. 1750 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-13 No housing assistance payment can be made unless unit meets HQS and the defect is corrected within the period as specified by the PHA and the PHA verifies correction (see Chapter 8). In addition to regular breaches of HQS, breaches of HQS by the family include failu re to perform any maintenance for which the family is responsible in accordan ce with the terms of the cooperative occupancy agreement [HCV GB]. 12.A.b Packet Pg. 1751 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-14 PART VI: MANUFACTURED HOMES [24 CFR 982.620 through 982.624; FR Notice 1/18/17; New HCV GB, Special Housing Types, p. 15] 15-VI.A. OVERVIEW A manufactured home is a manufactured structure, transportable in one or more parts, which is built on a permanent chassis, and designed for use as a principal place of residence . Assisted families may occupy manufactured homes in three different ways. (1) A family can choose to rent a manufactured home already installed on a space, and the PHA must permit it. In this instance, program rules are the same as when a family rents any other residential housing, except that there are special HQS requirements as provided in 15-VI.D below. (2) A family can purchase a manufactured home under the Housing Choice Voucher Homeownership program. (3) HUD also permits an otherwise eligible family that owns a manufactured home to rent a space for the manufactured home and receive HCV assistance with the rent for the space as well as certain other housing expenses. PHAs may, but are not required to, provide assistance for such families. 15-VI.B. SPECIAL REQUIREMENTS FOR MANUFACTURED HOMEOWNERS WHO LEASE A SPACE Family Income In determining the annual income of families leasing manufactured home spaces, the value of the family’s equity in the manufactured home in which the famil y resides is not counted as a family asset. Lease and HAP Contract There is a designated HAP Contract (form HUD-52642) and designated Tenancy Addendum (form HUD 52642-A) for this special housing type. 15-VI.C. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION [FR Notice 1/18/17] Payment Standards The PHA payment standard for manufactured homes is determined in accordance with 24 CFR 982.505 and is the payment standard used for the PHA’s HCV program. It is based on the applicable FMR for the area in which the manuf actured home space is located. 12.A.b Packet Pg. 1752 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-15 The payment standard for the family is the lower of the family unit size (voucher size) or the payment standard for the number of bedrooms in the manufactured home. Utility Allowance The PHA must establish utility allowances for manufactured home space rental. For the first 12 months of the initial lease term only, the allowance must include an amount for a utilit y hook- up charge if the family actually incurred a hook-up charge because of a move. This allowance will not be given to a family that leases in place. Utility allowances for manufactured home space must not include the costs of digging a well or installing a septic system. If the amount of the monthly assistance payment for a family exceeds the monthly rent for the manufactured home space (including the owner’s monthly management and maintenance charges), the PHA may pay the remainder to the family, lender, or utility company. Space Rent The rent for the manufactured home space (including other eligible housing expenses) is the total of: • The rent charged for the manufactured home space; • Owner maintenance and management charges for the space; • The monthly payments made by the family to amortize the cost of purchasing the manufactured home, including any required insurance and property taxes; and • The applicable allowance for tenant-paid utilities. Amortization Costs The monthly payment made by the family to amortize the cost of purchasing the manufactured home is the debt service established at the time of application t o a lender for financing the purchase of the manufactured home if monthly payments are still being made. Any increase in debt service due to refinancing after purchase of the home may not be included in the amortization cost. Debt service for set-up charges incurred by a family may be included in the monthly amortization payments made by the family. In addition, set-up charges incurred before the family became an assisted family may be included in the amortization cost if monthly payments are still being made to amortize the charges. Housing Assistance Payment The HAP for a manufactured home space under the housing choice voucher program is the lower of the payment standard minus the TTP or the manufactured home space rent (including other eligible housing expenses) minus the TTP. 12.A.b Packet Pg. 1753 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-16 Rent Reasonableness Initially, and at least annually thereafter, the PHA must determine that the rent for the manufactured home space is reasonable based on rents for comparable manufactured home spaces. The PHA must consider the location and size of the space, and any services and maintenance to be provided by the owner. By accepting the monthly housing assistance payment, the owner of the manufactured home space certifies that the rent does not exceed rents charged by the owner for comparable unassisted spaces in the same manufactured home park or elsewhere. If requested by the PHA, the owner must give the PHA information on rents charged by the owner for other manufactured home spaces. 15-VI.D. HOUSING QUALITY STANDARDS Under either type of occupancy described in 15 -VI. A above, the manufactured home must meet all HQS performance requirements and acceptability crit eria discussed in Chapter 8 of this plan. In addition, the following requirement applies: Manufactured Home Tie-Down A manufactured home must be placed on the site in a stable manner and must be free from hazards such as sliding or wind damage. The home must be securely anchored by a tie-down device that distributes and transfers the loads imposed by the unit to appropriate ground anchors to resist overturning and sliding. 12.A.b Packet Pg. 1754 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-17 PART VII: HOMEOWNERSHIP [24 CFR 982.625 through 982.643] 15-VII.A. OVERVIEW [24 CFR 982.625] The homeownership option is used to assist a family residing in a home purchased and owned by one or more members of the family. A family assisted under this option may be newly admitted or an existing participant in the HCV program. The PHA must have the capacity to operate a successful HCV homeownership program as defined by the regulations. There are two forms of homeownership assistance described in the regulations: monthly homeownership assistance payments, and single down payment assistance grants. However, PHAs may not offer down payment assistance until and unless funding is allocated by Congress. Since this has not yet happened, only monthly homeownership assistance may be offered. The PHA may choose not to offer homeownership assistance. However, the PHA must offer homeownership assistance if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. It is the sole responsibility of the PHA to determine whether it is reasonable to implement a homeownership program as a reasonable accommodation. The PHA must determine what is reasonable based on the specific circumstances and individual needs of the person with a disability. The PHA may determine that it is not reasonable to offer homeownership assistance as a reasonable accommodation in cases where the PHA has otherwise opted not to implement a homeownership program. The PHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. 15-VII.B. FAMILY ELIGIBILITY [24 CFR 982.627] If the PHA offers the homeownership option, participation by the family is optional. However, the family must meet all of the requirements listed below before the commencement of homeownership assistance. The PHA may also establish additional initial requirements as long as they are described in the PHA administrative plan. • The family must have been admitted to the Housing Choice Voucher program. • The family must qualify as a first-time homeowner or may be a cooperative member. • The family must meet the Federal minimum income requirement. The family must have a gross annual income equal to the Federal minimum wage multiplie d by 2000, based on the income of adult family members who will own the home. The PHA may establish a higher income standard for families. However, a family that meets the federal minimum income requirement (but not the PHA's requirement) will be considere d to meet the minimum income requirement if it can demonstrate that it has been pre-qualified or pre-approved for financing that is sufficient to purchase an eligible unit. 12.A.b Packet Pg. 1755 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-18 • For disabled families, the minimum income requirement is equal to the current SSI m onthly payment for an individual living alone, multiplied by 12. • For elderly or disabled families, welfare assistance payments for adult family members who will own the home will be included in determining whether the family meets the minimum income requirement. It will not be included for other families. • The family must satisfy the employment requirements by demonstrating that one or more adult members of the family who will own the home at commencement of homeownership assistance is currently employed on a full-time basis (the term 'full-time employment' means not less than an average of 25 hours per week); and has been continuously so employed during the year before commencement of homeownership assistance for the family. • The employment requirement does not apply to elderly and disabled families. In addition, if a family, other than an elderly or disabled family includes a person with disabilities, the PHA must grant an exemption from the employment requirement if the PHA determines that it is needed as a reasonable accommodation. • The family has not defaulted on a mortgage securing debt to purchase a home under the homeownership option • Except for cooperative members who have acquired cooperative membership shares prior to commencement of homeownership assistance, no family member has a present ownership interest in a residence at the commencement of homeownership assistanc e for the purchase of any home. • Except for cooperative members who have acquired cooperative membership shares prior to the commencement of homeownership assistance, the family has entered a contract of sale in accordance with 24 CFR 982.631(c). 15-VII.C. SELECTION OF FAMILIES [24 CFR 982.626] Unless otherwise provided (under the homeownership option), the PHA may limit homeownership assistance to families or purposes defined by the PHA and may prescribe additional requirements for commencement of homeownership assistance for a family. Any such limits or additional requirements must be described in the PHA administrative plan. If the PHA limits the number of families that may participate in the homeownership option, the PHA must establish a system by which to select families to participate. 12.A.b Packet Pg. 1756 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-19 15-VII.D. ELIGIBLE UNITS [24 CFR 982.628] In order for a unit to be eligible, the PHA must determine that the unit satisfies all of the following requirements: • The unit must meet HUD’s “eligible housing” requirements. The unit may not be any of the following: - A public housing or Indian housing unit; - A unit receiving Section 8 project-based assistance; - A nursing home, board and care home, or facility providing continual psychiatric, medical or nursing services; - A college or other school dormitory; - On the grounds of penal, reformatory, medical, mental, or similar public or private institutions. • The unit must be a one-unit property or a single dwelling unit in a cooperative or condominium. • The unit must have been inspected by the PHA and by an independent inspector designated by the family. • The unit must meet Housing Quality Standards (see Chapter 8). • For a unit where the family will not own fee title to the real property (such as a manufactured home), the home must have a permanent foundation and the family must have the right to occupy the site for at least 40 years. Families may enter into contracts of sale for units not yet under construction. However, the PHA will not commence homeownership assistance for the family for that unit until: 1. Either the responsible entity completes the environmental review as required by 24 CFR part 58 and HUD approved the environmental certification and request for release of funds prior to commencement of construction or HUD performed an environmental review under CFR part 50 and notified the PHA in writing of environmental approval of the site prior to construction commencement; and 2. Construction of the unit has been completed and the unit has passed the required HQS inspection and independent inspection as addressed elsewhere in this chapter. • For PHA-owned units all of the following conditions must be satisfied: - The PHA informs the family, both orally and in writing, that the family has the right to purchase any eligible unit and a PHA-owned unit is freely selected by the family without PHA pressure or steering; - The unit is not ineligible housing; - The PHA obtains the services of an independent agency to inspect the unit for compliance with HQS, review the independent inspection report, review the contract of 12.A.b Packet Pg. 1757 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-20 sale, determine the reasonableness of the sales price and any PHA provided financing . All of these actions must be completed in accordance with program requirements. The PHA must not approve the unit if the PHA has been informed that the seller is debarred, suspended, or subject to a limited denial of participation. 15-VII.E. ADDITIONAL PHA REQUIREMENTS FOR SEARCH AND PURCHASE [24 CFR 982.629] It is the family’s responsibility to find a home that meets the criteria for voucher homeownership assistance. The PHA may establish the maximum time that will be allowed for a family to locate and purchase a home and may require the family to report on their progress in finding and purchasing a home. If the family is unable to purchase a home within the maximum time established by the PHA, the PHA may issue the family a voucher to lease a unit or place the family’s name on the waiting list for a voucher. 15-VII.F. HOMEOWNERSHIP COUNSELING [24 CFR 982.630] Before commencement of homeownership assistance for a family, the family must attend and satisfactorily complete the pre-assistance homeownership and housing counseling program required by the PHA. HUD suggests the following topics for the PHA-required pre-assistance counseling: • Home maintenance (including care of the grounds); • Budgeting and money management; • Credit counseling; • How to negotiate the purchase price of a home; • How to obtain homeownership financing and loan pre-approvals, including a description of types of financing that may be available, and the pros and cons of different types of financing; • How to find a home, including information about homeownership opportunities, schools, and transportation in the PHA jurisdiction; • Advantages of purchasing a home in an area that does not have a high concentration of low-income families and how to locate homes in such areas; • Information on fair housing, including fair housing lending and local fair housing enforcement agencies; and 12.A.b Packet Pg. 1758 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-21 • Information about the Real Estate Settlement Procedures Act (12 U.S.C. 2601 et seq.) (RESPA), state and Federal truth-in-lending laws, and how to identify and avoid loans with oppressive terms and conditions. The PHA may adapt the subjects covered in pre-assistance counseling (as listed) to local circumstances and the needs of individual families. The PHA may also offer additional counseling after commencement of homeownership assistance (ongoing counseling). If the PHA offers a program of ongoing counseling for participants in the homeownership option, the PHA shall have discretion to determine whether the family is required to participate in the ongoing counseling. If the PHA does not use a HUD-approved housing counseling agency to provide the counseling, the PHA should ensure that its counseling program is consistent with the counseling provided under HUD’s Housing Counseling program. 15-VII.G. HOME INSPECTIONS, CONTRACT OF SALE, AND PHA DISAPPROVAL OF SELLER [24 CFR 982.631] Home Inspections The PHA may not commence monthly homeownership assistance payments for a family until the PHA has inspected the unit and has determined that the unit passes HQS. An independent professional inspector selected by and paid for by the family must also inspect the unit. The independent inspection must cover major building systems and components, including foundation and structure, housing interior and exterior, and the roofing, plumbing, electrical, and heating systems. The independent in spector must be qualified to report on property conditions, including major building systems and components. The PHA may not require the family to use an independent inspector selected by the PHA. The independent inspector may not be a PHA employee or cont ractor, or other person under control of the PHA. However, the PHA may establish standards for qualification of inspectors selected by families under the homeownership option. The PHA may disapprove a unit for assistance based on information in the indepen dent inspector’s report, even if the unit was found to comply with HQS. Contract of Sale Before commencement of monthly homeownership assistance payments, a member or members of the family must enter into a contract of sale with the seller of the unit to be acquired by the family. The family must give the PHA a copy of the contract of sale. The contract of sale must: • Specify the price and other terms of sale by the seller to the purchaser; 12.A.b Packet Pg. 1759 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-22 • Provide that the purchaser will arrange for a pre-purchase inspection of the dwelling unit by an independent inspector selected by the purchaser; • Provide that the purchaser is not obligated to purchase the unit unless the inspection is satisfactory to the purchaser; • Provide that the purchaser is not obligated to pay for any necessary repairs; and • Contain a certification from the seller that the seller has not been debarred, suspended, or subject to a limited denial of participation under CFR part 24. • A contract for the sale of a unit not yet under construction must meet all above requirements, and requirements below. Commencement of construction in violation of the below requirements voids the purchase contract. - The purchaser is not obligated to purchase the unit unless an environmental review has been performed and the site received environmental approval prior to commencement of construction in accordance with 24 CFR 982.628; and - The construction will not commence until the environmental review has been completed and the seller has received written notice from the PHA that environmental approval has been obtained. Environmental approval may be conditioned on the contracting parties’ agreement to modification to the unit design or to mitigation actions. Disapproval of a Seller In its administrative discretion, the PHA may deny approval of a seller for the same reasons a PHA may disapprove an owner under the regular HCV program [see 24 CFR 982.306(c)]. 15-VII.H. FINANCING [24 CFR 982.632] The PHA may establish requirements for financing purchase of a home under the homeownership option. This may include requirements concerning qualification of lenders, terms of financing, restrictions concerning debt secured by the home, lender qualifications, loan terms, and affordability of the debt. The PHA must establish policies describing these requirements in the administrative plan. A PHA may not require that families acquire financing from one or more specified lenders, thereby restricting the family’s ability to secure favorable financing terms. 15-VII.I. CONTINUED ASSISTANCE REQUIREMENTS; FAMILY OBLIGATIONS [24 CFR 982.633] 12.A.b Packet Pg. 1760 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-23 Homeownership assistance may only be paid while the family is residing in the home. If the family moves out of the home, the PHA may not continue homeownership assistance after the month when the family moves out. The family or lender is not required to refund to the PHA the homeownership assistance for the month when the family moves out. Before commencement of homeownership assistance, the family must execute a statement of family obligations in the form prescribed by HUD [form HUD-52649]. In the statement, the family agrees to comply with all family obligations under the homeownership option. The family must comply with the following obligations: • The family must comply with the terms of the mortgage securing debt incurred to purchase the home, or any refinancing of such debt. • The family may not convey or transfer ownership of the home, except for purposes of financing, refinancing, or pending settlement of the estate of a deceased family member. Use and occupancy of the home are subject to 24 CFR 982.551 (h) and (i). • The family must supply information to the PHA or HUD as specified in 24 CFR 982.551(b). The family must further supply any information required by the PHA or HUD concerning mortgage financing or refinancing, sale or transfer of any interest in the home, or homeownership expenses. • The family must notify the PHA before moving out of the home. • The family must notify the PHA if the family defaults on the mortgage used to purchase the home. • The family must provide the PHA with information on any satisfaction or payment of the mortgage debt. • No family member may have any ownership interest in any other residential property. • The family must comply with the obligations of a participant family described in 24 CFR 982.551, except for the following provisions which do not apply to assistance under the homeownership option: 24 CFR 982.551(c), (d), (e), (f), (g) and (j). 15-VII.J. MAXIMUM TERM OF HOMEOWNER ASSISTANCE [24 CFR 982.634] Except in the case of a family that qualifies as an elderly or disabled family, other family members (described below) shall not receive homeownership assistance for more than: • Fifteen years, if the initial mortgage incurred to finance purchase of the home has a term of 20 years or longer; or • Ten years, in all other cases. The maximum term described above applies to any member of the family who: 12.A.b Packet Pg. 1761 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-24 • Has an ownership interest in the unit during the time that homeownership payments are made; or • Is the spouse of any member of the household who has an ownership interest i n the unit during the time homeownership payments are made. In the case of an elderly family, the exception only applies if the family qualifies as an eld erly family at the start of homeownership assistance. In the case of a disabled family, the exception applies if at any time during receipt of homeownership assistance the family qualifies as a disabled family. If, during the course of homeownership assistance, the family ceases to qualify as a disabled or elderly family, the maximum term becomes applicable from the date homeownership assistance commenced. However, such a family must be provided at least 6 months of homeownership assistance after the maximum term becomes applicable (provided the family is otherwise eligible to receive homeownership assistance). If the family has received such assistance for different homes, or from different PHAs, the total of such assistance terms is subject to the maximum term described in this part. 15-VII.K. HOMEOWNERSHIP ASSISTANCE PAYMENTS AND HOMEOWNERSHIP EXPENSES [24 CFR 982.635] The monthly homeownership assistance payment is the lower of: the voucher payment standard minus the total tenant payment, or the monthly homeownership expenses minus the total tenant payment. In determining the amount of the homeownership assistance payment, the PHA will use the same payment standard schedule, payment standard amounts, and subsidy standards as those described in elsewhere in this plan. The payment standard for a family is the greater of (i) The payment standard as determined at the commencement of homeownership assistance for occupancy of the home, or (ii) The payment standard at the most recent regular reexamination of family income and composition since the commencement of homeownership assistance for occupancy of the home. The PHA must adopt policies for determining the amount of homeownership expenses to be allowed by the PHA in accordance with HUD requirements. Homeownership expenses (not including cooperatives) must include amounts allowed by the PHA to cover: • Principal and interest on initial mortgage debt, any refinancing of such debt, and any mortgage insurance premium incurred to finance purchase of the home; • Real estate taxes and public assessments on the home; • Home insurance; • The PHA allowance for maintenance expenses; 12.A.b Packet Pg. 1762 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-25 • The PHA allowance for costs of major repairs and replacements; • The PHA utility allowance for the home; • Principal and interest on mortgage debt incurred to finance costs for major repairs, replacements or improvements for the home. If a member of the family is a person with disabilities, such debt may include debt incurred by the family to finance costs needed to make the home accessible for such person, if the PHA determines that allowance of such costs as homeownership expenses is needed as a reasonable accommodation so that the homeownership option is readily accessible to and usable by such person; • Land lease payments where a family does not own fee title to the real property on which the home is located; [see 24 CFR 982.628(b)]. • For a condominium unit, condominium operating charges or maintenance fees assessed by the condominium homeowner association. The PHA does not have the discretion to exclude any of the listed homeownership expenses or to add any additional items. Homeownership expenses for a cooperative member include amounts allowed by the PHA to cover: • The cooperative charge under the cooperative occupancy agreement including payment for real estate taxes and public assessments on the home; • Principal and interest on initial debt incurred to finance purchase of cooperative membership shares and any refinancing of such debt; • Home insurance; • The PHA allowance for maintenance expenses; • The PHA allowance for costs of major repairs and replacements; • The PHA utility allowance for the home; and • Principal and interest on debt incurred to finance major repairs, replacements or improvements for the home. If a member of the family is a person with disabilities, such debt may include debt incurred by the family to finance costs needed to make the home accessible for such person, if the PHA determines that allowance of such costs as homeownership expenses is needed as a reasonable accommodation so that the homeownership option is readily accessible to and usable by such person. • Cooperative operating charges or maintenance fees assessed by the cooperative homeowner association. The PHA may pay the homeownership assistance payments directly to the family, or at the PHA’s discretion, to a lender on behalf of the family. If the assistance payment exceeds the amount due to the lender, the PHA must pay the excess directly to the family. 15-VII.L. PORTABILITY [24 CFR 982.636, 982.637, 982.353(b) and (c), 982.552, 982.553] 12.A.b Packet Pg. 1763 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-26 Subject to the restrictions on portability included in HUD regulations and PHA policies, a family may exercise portability if the receiving PHA is administering a voucher homeownership program and accepting new homeownership families. The receiving PHA may absorb the family into its voucher program, or bill the initial PHA. The family must attend the briefing and counseling sessions required by the receiving PHA. The receiving PHA will determine whether the financing for, and the physical condition of the unit, is acceptable. The receiving PHA must promptly notify the initial PHA if the family has purchased an eligible unit under the program, or if the family is unable to purchase a home within the maximum time established by the PHA. 15-VII.M. MOVING WITH CONTINUED ASSISTANCE [24 CFR 982.637] A family receiving homeownership assistance may move with continued tenant-based assistance or with voucher homeownership assistance. The PHA must determine that all initial requirements have been satisfied if a family that has received homeownership assistance wants to move with continued homeownership ass istance. However, the following do not apply: • The requirement that a family must be a first-time homeowner is not applicable. • The requirement for pre-assistance counseling is not applicable. However, the PHA may require that the family complete additional counseling (before or after moving to a new unit with continued homeownership assistance). Continued tenant-based assistance for a new unit cannot begin so long as any family member holds title to the prior home. However, when the family or a member of the family is or has been the victim of domestic violence, dating violence, sexual assault or stalking and the move is needed to protect the health or safety of the family or family member (or any family member has been the victim of a sexual assault that occurred on the premises during the 90-calendar- day period preceding the family’s request to move), such family or family member may be assisted with continued tenant-based assistance even if they own any title or other interest in the prior home. The PHA may deny permission to move to a new unit with continued voucher assistance: • If the PHA has insufficient funding to provide continued assistance. • In accordance with 24 CFR 982.638, regarding denial or termination of assistance. • In accordance with the PHA’s policy regarding number of moves within a 12-month period. The PHA must deny the family permission to move to a new unit with continued voucher rental assistance if: • The family defaulted on an FHA-insured mortgage; and 12.A.b Packet Pg. 1764 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 15-27 • The family fails to demonstrate that the family has conveyed, or will convey, title to the home, as required by HUD, to HUD or HUD's designee; and • The family has moved, or will move, from the home within the period established or approved by HUD. 15-VII.N. DENIAL OR TERMINATION OF ASSISTANCE [24 CFR 982.638] At any time, the PHA may deny or terminate homeownership assistance in accordance with HCV program requirements in 24 CFR 982.552 (Grounds for denial or termination of assistance) or 24 CFR 982.553 (Crime by family members). The PHA may also deny or terminate assistance for violation of participant obligations described in 24 CFR Parts 982.551 or 982.633 and in accordance with its own policy, with the exception of failure to meet obligations under the Family Self-Sufficiency program as prohibited under the alternative requirements set forth in FR Notice 12/29/14 . Homeownership assistance for a family automatically terminates 180 calendar days after the last homeownership assistance payment on behalf of the family. However, a PHA may grant relief from this requirement in those cases where automatic termination would resu lt in extreme hardship for the family. The PHA must terminate voucher homeownership assistance for any member of family receiving homeownership assistance that is dispossessed from the home pursuant to a judgment or order of foreclosure on any mortgage (whether FHA insured or non -FHA) securing debt incurred to purchase the home, or any refinancing of such debt. 12.A.b Packet Pg. 1765 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-1 Chapter 16 PROGRAM ADMINISTRATION INTRODUCTION This chapter discusses administrative policies and practices that are relevant to the activities covered in this plan. The policies are discussed in seven parts as described below: Part I: Administrative Fee Reserve. This part describes the PHA’s policies with regard to oversight of expenditures from its administrative fee reserve. Part II: Setting Program Standards and Schedules. This part describes what payment standards are, and how they are updated, as wel l as how utility allowances are established and revised. Part III: Informal Reviews and Hearings. This part outlines the requirements and procedures for informal reviews and hearings, and for informal hearings regarding citizenship status. Part IV: Owner or Family Debts to the PHA. This part describes policies for recovery of monies that the PHA has overpaid on behalf of families, or to owners, and describes the circumstances under which the PHA will offer repayment agreements to owners and families. Also discussed are the consequences for failure to make payments in accordance with a repayment agreement. Part V: Section 8 Management Assessment Program (SEMAP). This part describes what the SEMAP scores represent, how they are established, and how those scores affect a PHA. Part VI: Record-Keeping. All aspects of the program involve certain types of record-keeping. This part outlines the privacy rights of applicants and participants and record retention policies the PHA will follow. Part VII: Reporting and Record Keeping for Children with Elevated Blood Lead Level. This part describes the PHA’s responsibilities for reporting, data collection, and record keeping relative to children with elevated blood lead levels that are less than six years of age and are receiving HCV assistance. Part VIII: Determination of Insufficient Funding. This part describes the PHA’s policies for determining if there is sufficient funding to issue vouchers, to approve moves to higher cost units or areas, and to continue assistance for all participant families. Part IX: Violence Against Women Act (VAWA): Notification, Documentation, Confidentiality. This part contains key terms used in VAWA and describes requirements related to notifying families and owners about their rights and responsibilities under VAWA; requesting documentation from victims of domestic violence, dating violence, sexual assault, and stalking; and maintaining the confidentiality of information obtained from victims. 12.A.b Packet Pg. 1766 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-2 PART I: ADMINISTRATIVE FEE RESERVE [24 CFR 982.155] The PHA will maintain administrative fee reserves, or unrestricted net position (UNP) for the program to pay program administrative expenses in excess of administrative fees paid by HUD for a PHA fiscal year. HUD appropriations acts beginning with FFY 2004 have specified that administrative fee funding may be used only for activities related to the provision of HCV assistance, including related development activities. Notice PIH 2012-9 cites two examples of related development activities: unit modification for accessibility purposes and development of project-based voucher units. The notice makes clear that other activities may also qualify as related development activities. Administrative fees that remain in the UNP account from funding provided prior to 2004 may be used for “other housing purposes permitted by state and local law,” in accordance with 24 CFR 982.155(b)(1). In addition, as specified in Notice PIH 2022-18, PHAs may use administrative fee funding for both administrative and “other expenses” needed to employ strategies and undertake activities beyond regular administrative responsibilities to facilitate the successful leasing and use of housing choice vouchers by families, such as through the use of security deposit assistance and landlord recruitment and incentive payments, among other allowable expenses specified in the notice. PHAs are also permitted to use UNP for these expenses [Notice PIH 2022-18] If a PHA has not adequately administered its HCV program, HUD may prohibit use of funds in the UNP Account and may direct the PHA to use funds in that account to improve administration of the program, for HCV HAP expenses, or to reimburse ineligible expenses in accordance with the regulation at 24 CFR 982.155(b)(3). HUD requires the PHA Board of Commissioners or other authorized officials to establish the maximum amount that may be charged against the UNP account without specific approval. PHA Policy Expenditures from the UNP account will be made in accordance with all applicable federal requirements. Expenditures are approved by HUD and the Board annual budget. 12.A.b Packet Pg. 1767 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-3 PART II: SETTING PROGRAM STANDARDS AND SCHEDULES 16-II.A. OVERVIEW Although many of the program’s requirements are established centrally by HUD, the HCV program’s regulations recognize that some flexibility is required to allow the PHA to adapt the program to local conditions. This part discusses how the PHA establishes and updates certain schedules and standards that are used to administer the program locally. Details about how these schedules are applied to individual families are provided in other chapters. The schedules and standards discussed here include: • Payment Standards, which dictate the maximum subsidy a family can receive (application of the payment standards is discussed in Chapter 6); and • Utility Allowances, which specify how a family’s payment should be adjusted to account for tenant-paid utilities (application of utility allowances is discussed in Chapter 6). PHA Policy Copies of the payment standard and utility allowance schedu les are available for review in the PHA’s offices during normal business hours. The PHA will maintain documentation to support its annual review of payment standards and utility allowance schedules. This documentation will be retained for at least 3 years electronically. Establishing and updating the PHA passbook rate, which is used to calculate imputed income from assets, is covered in Chapter 6 (see Section 6 -I.G.). 16-II.B. PAYMENT STANDARDS [24 CFR 982.503; HCV GB, Chapter 7] The payment standard sets the maximum subsidy payment a family can receive from the PHA each month [24 CFR 982.505(a)]. Payment standards are based on fair market rents (FMRs) published annually by HUD. FMRs are set at a percentile within the rent distribution of standard quality rental housing units in each FMR area. For most jurisdictions FMRs are set at the 40th percentile of rents in the market area. The PHA must establish a payment standard schedule that establishes payment standard amounts for each FMR area within the PHA’s jurisdiction, and for each unit size within each of the FMR areas. For each unit size, the PHA may establish a single payment standard amount for the whole FMR area or may set different payment standards for different parts of the FMR area. Unless HUD gran ts an exception, the PHA is required to establish a payment standard within a “basic range” established by HUD – between 90 and 110 percent of the published FMR for each unit size. PHA Policy Payment Standards for Deed Restricted affordable apartments in Santa Monica are created either through a City Housing Trust Fund loan or grant to purchase and renovate or to develop for newly constructed affordable housing. Apartments are income and rent 12.A.b Packet Pg. 1768 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-4 restricted for a period of 55-years. Frequently these apartments are created by non-profit organizations using other funding sources from state, federal, or other sources. Alternatively, deed restricted apartments are also created through development agreements where a developer has offered a community benefit (housing , parks, etc.,) in exchange for a development benefit. A covenant is recorded on the property title that the developer agrees to provide a portion of the apartments as deed restricted and affordable for 55-years. The restriction limits income targets and rent amounts. Each deed restriction may vary slightly and as standards have changed so have the restrictions. Effective upon the recertification of each tenant which occurs after the adoption of the Administrative Plan the following policy applies: The payment standard shall be equal to the rent limit established by the recorded deed- restriction. Supportive Housing developments which restrict 100 percent of their housing and are owned by nonprofit organizations are not subject to the above-stated limitation. Deed-restricted units are eligible for rent increases under the following circumstances: The rent, with increase, does not exceed the deed restricted limit for that apartment, there has not been a rent increase in the previous 12-month period, the rent increase coincides with the annual recertification date, and the PHA allowable rent increase will become effective October 1 of each year. Updating Payment Standards When HUD updates its FMRs, the PHA must update its payment standards if the standards are no longer within the basic range [24 CFR 982.503(b)]. HUD may require the PHA to make further adjustments if it determines that rent burdens for assisted families in the PHA’s jurisdiction are unacceptably high [24 CFR 982.503(g)]. PHA Policy The PHA will review the appropriateness of the payment standards on an annual basis when the new FMR is published, and at other times as determined necessary. The PHA will consider the following factors when determining whether an adjustment should be made to the payment standard schedule, including in determining whether to request an exception payment standard from HUD: Funding Availability: The PHA will review the budget to determine the impact projected subsidy adjustments will have on funding available for the program and the number of families served. The PHA will compare the number of families who could be served under revised payment standard amounts with the number assisted under current payment standard amounts. Rent Burden of Participating Families: Rent burden will be determined by identifying the percentage of families, for each unit size, that are paying more than 30 percent of their monthly adjusted income as the family share. When 40 percent or more of families, for any given unit size, are paying more than 30 percent of adjusted monthly income as the family share, the PHA will consider increasing the payment standard. In 12.A.b Packet Pg. 1769 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-5 evaluating rent burdens, the PHA will not include families renting a larger unit than their family unit size. Quality of Units Selected: The PHA may review the quality of units selected by participant families when making the determination of the percent of income families are paying for housing, to ensure that payment standard increases are only made when needed to reach the mid-range of the market. Changes in Rent to Owner: The PHA may review a sample of the units to determine how often owners are increasing or decreasing rents and the average percent of increases/decreases by bedroom size. Unit Availability: The PHA may review the availability of units for each unit size, particularly in areas with low concentrations of poor and minority families. Lease-up Time and Success Rate: The PHA may consider the percentage of families that are unable to locate suitable housing before the voucher expires and whether families are leaving the jurisdiction to find affordable housing. Effective dates of changes to payment standard amounts will be determined at time of update. The PHA will always ensure the payment standards will be within the basic range. Exception Payment Standards [982.503(c)(5), Notice PIH 2018-01, FR Notice 9/27/21] A non-SAFMR PHA may establish an exception payment standard for a zip code area of up to and including 110 percent of the SAFMR determined by HUD for that zip code area. Regardless of the level of the exception payment standard compared to the metropolitan area FMRs (MAFMRs), the PHA must send an email to SAFMRs@hud.gov to notify HUD that it has adopted an exception payment standard based on the SAFMR. A PHA that adopts an exception payment standard pursuant to this authority must apply it to the entire ZIP code area, for both its HCV, and if applicable, its PBV program. For the PBV program, this means that the rent to owner may not exceed the new exception payment standard amount, provided the rent is still reasonable. A PHA that adopts an exception payment standard area must revise its briefing materials to make families aware of the exception payment standard and the area that it covers. In addition, HUD allows PHAs to establish a HUD-Veterans Affairs Supportive Housing (HUD-VASH) exception payment standard. PHAs may go up to but no higher than 120 percent of the FMR or SAFMR specifically for VASH families. PHAs who want to establish a VASH exception payment standard over 120 percent must still request a waiver from HUD (See Section 19-III.E.). Unit-by-Unit Exceptions [24 CFR 982.503(b), 24 CFR 982.505(d), Notice PIH 2010-26] Unit-by-unit exceptions to the PHA’s payment standards generally are not permitted. However, an exception may be made as a reasonable accommodation for a family that includes a person with 12.A.b Packet Pg. 1770 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-6 disabilities. (See Chapter 2 for a discussion of reasonable accommodations.) This type of exception does not affect the PHA’s payment standard schedule. When needed as a reasonable accommodation, the PHA may make an exception to the payment standard without HUD approval if the except ion amount does not exceed 120 percent of the applicable FMR for the unit size [24 CRF 982.503(b)]. The PHA may request HUD approval for an exception to the payment standard for a particular fam ily if the required amount exceeds120 percent of the FMR. PHA Policy A family that requires a reasonable accommodation may request a higher payment st andard at the time the Request for Tenancy Approval (RTA) is submitted. If the adjusted gross rent is above 120 percent of the FMR, the request must be submitted to Headquarters for approval. The regulatory waiver process in Public and Indian Housing requires PHAs to first send their request to the local field office; the field office then forwards the waive r request to the appropriate program office at HUD headquarters along with a field office recommendation (See PIH Notice 2009-41). The family must document the need for the exception. In order to approve an exception, or request an exception from HUD, the PHA must determine that: There is a shortage of affordable units that would be appropriate for the family; The family's TTP would otherwise exceed 40 percent of adjusted monthly income; and The rent for the unit is reasonable. The unit has the feature/s required to meet the needs of the person with disabilities as noted in the statement from the health care provider where such a statement is necessary. "Success Rate" Payment Standard Amounts [24 CFR 982.503(e)] If a substantial percentage of families have difficulty finding a suitable unit, the PHA may request a “success rate payment standard” that applies to the entire jurisdiction. If approved by HUD, a success rate payment standard allows the PHA to set its payment standards at 90-110 percent of a higher FMR (the 50th, rather than the 40th percentile FMR). To support the request, the PHA must demonstrate that during the most recent 6-month period for which information is available: • Fewer than 75 percent of families who were issued vouchers became particip ants; • The PHA had established payment standards for all unit sizes, and for the entire jurisdiction, at 110 percent of the published FMR; and • The PHA had a policy of allowing voucher holders who made sustained efforts to locate units at least 90 days to search for a unit. 12.A.b Packet Pg. 1771 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-7 Although HUD approves the success rate payment standard for all unit sizes in the FMR area, the PHA may choose to adjust the payment standard for only some unit sizes in all, or a designated part, of the PHA’s jurisdiction within the FMR area. Decreases in the Payment Standard below the Basic Range [24 CFR 982.503(d)] The PHA must request HUD approval to establish a payment standard amount that is lower than the basic range. At HUD’s sole discretion, HUD may approve establishment of a payment standard lower than the basic range. HUD will not approve a lower payment standard if the family share for more than 40 percent of program participants exceeds 30 percent of adjusted monthly income. 16-II.C. UTILITY ALLOWANCES [24 CFR 982.517] A PHA-established utility allowance schedule is used in determining family share and PHA subsidy. The PHA must maintain a utility allowance schedule for (1) all tenant-paid utilities, (2) the cost of tenant-supplied refrigerators and ranges, and (3) other tenant-paid housing services such as trash collection. The utility allowance schedule must be determined based on the typical cost of utilities and service s paid by energy-conservative households that occupy housing of similar size and type in the same locality. In developing the schedule, the PHA must use normal patterns of consumption for the community as a whole, and current utility rates. The utility allowance must include the utilities and services that are necessary in the locality to provide housing that complies with housing quality standards. Costs for telephone, cable/satellite television, and Internet services are not included in the utility allowance schedule. In the utility allowance schedule, the PHA must classify utilities and other housing services according to the following general categories: space heating; air conditioning; cooking; water heating; water; sewer; trash collection; other electric; cost of tenant-supplied refrigerator; cost of tenant-supplied range; and other specified housing services. The cost of each utility and housing service must be stated separately by unit size and type. Chapter 18 of the HCV Guidebook provides detailed guidance to the PHA about establishing utility allowance schedules. Air Conditioning An allowance for air-conditioning must be provided when the majority of housing units in the market have central air-conditioning or are wired for tenant-installed air conditioners. PHA Policy The PHA has not included an allowance for air-conditioning in its schedule. 12.A.b Packet Pg. 1772 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-8 Reasonable Accommodation HCV program regulations require a PHA to approve a utility allowance amount higher than shown on the PHA’s schedule if a higher allowance is needed as a reasonable accommodation for a family member with a disability. For example, if a family member with a disability requires such an accommodation, the PHA will approve an allowance for air-conditioning, even if the PHA has determined that an allowance for air-conditioning generally is not needed (See Chapter 2 for policies regarding the request and approval of reasonable accommodations). Utility Allowance Revisions The PHA must review its schedule of utility allowances each year and must revise the schedule if there has been a change of 10 percent or more in any utility rate since the last time the allowance for that utility was revised. The PHA must maintain information supporting its annual review of utility allowance and any revisions made in its utility allowance schedule. PHA Policy The utility allowances are updated each year by Housing Authority staff, and are consistent with HUD requirements for annual reviews and updated utility allowances. Revised utility allowance schedules are not subject to approval or adoption by the HA’s Board of Commissioners if the utility allowance study is conducted in accordance with 24 CFR Part 965.476, subpart E. The annual utility allowance study is prepared in accordance with 24 CFR Part 965.476, subpart E of the federal register rules and regulations which states that allowances should be “based upon the reasonable consumption of utilities by an energy-conservative household of modest circumstances consistent with the requirements of a safe, sanitary, and healthful living environment.” The establishment of these utility allowances is based on accepted engineering calculation methods which recognize the design characteristics of each unit type, and load and use of appliances. HUD Handbook 7420.8, Form 52667 and Instructions are utilized in the preparation of new utility allowance schedules for the HCV program. 12.A.b Packet Pg. 1773 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-9 PART III: INFORMAL REVIEWS AND HEARINGS 16-III.A. OVERVIEW Both applicants and participants have the right to disagree with, and appeal, certain decisions of the PHA that may adversely affect them. PHA decisions that may be appealed by applicants and participants are discussed in this section. The process for applicant appeals of PHA decisions is called the “informal review.” For participants (or applicants denied admission because of citizenship issues), the appeal process is called an “informal hearing.” PHAs are required to include informal review procedures for applicants and informal hearing procedures for participants in their administrative plans [24 CFR 982.54(d)(12) and (13)]. 16-III.B. INFORMAL REVIEWS Informal reviews are provided for program applicants. An applicant is someone who has applied for admission to the program but is not yet a participant in the program. Informal revi ews are intended to provide a “minimum hearing requirement” [24 CFR 982.554],and need not be as elaborate as the informal hearing requirements (Federal Register 60, no. 127 (3 July 1995): 34690]. Decisions Subject to Informal Review [24 CFR 982.554(a) and (c)] The PHA must give an applicant the opportunity for an informal review of a decision denying assistance [24 CFR 982.554(a)]. Denial of assistance may include any or all of the following [24 CFR 982.552(a)(2)]: • Denying listing on the PHA waiting list • Denying or withdrawing a voucher • Refusing to enter into a contract or approve a lease • Refusing to process or provide assistance under portability procedures Informal reviews are not required for the following reasons [24 CFR 982.554(c)]: • Discretionary administrative determinations by the PHA • General policy issues or class grievances • A determination of the family unit size under the PHA subsidy standards • A PHA determination not to approve an extension of a voucher term • A PHA determination not to grant approval of the tenancy • A PHA determination that the unit is not in compliance with the HQS • A PHA determination that the unit is not in accordance with the HQS due to family size or composition 12.A.b Packet Pg. 1774 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-10 PHA Policy The PHA will only offer an informal review to applicants f or whom assistance is being denied. Denial of assistance includes: denying or withdrawing a voucher; refusing to enter into a contract or approve a lease; refusing to process or provide assistance under portability procedures. Informal reviews will not be offered to individuals whose names are removed from the waitlist, in accordance with the policies in Chapter 4 – Updating the Waitlist. Notice to the Applicant [24 CFR 982.554(a)] The PHA must give an applicant prompt notice of a decision denying assistance. The notice must contain a brief statement of the reasons for the PHA decision, and must also state that the applicant may request an informal review of the decision. The notice must describe how to obtain the informal review. In accordance with the PHA’s LEP Plan, a translated version of the notification of denial of assistance, and other appropriate language assistance, will be provided to LEP applicants. Scheduling an Informal Review PHA Policy A request for an informal review must be made in writing , specify the determination being disputed, and delivered to the PHA either in person or by first class mail by the close of the business day, no later than 10 business days from the date of the PHA’s denial of assistance. The PHA must schedule and send written notice of the informal review within 15 business days of the family’s request. If the informal review will be conducted remotely, at the time the PHA notifies the family of the informal review, the family will be informed: Regarding the processes to conduct a remote informal review; That, if needed, the PHA will provide technical assistance prior to and during the informal review; and That if the family or any individual witness has any technological, resource, or accessibility barriers preventing them from fully accessing the remote informal review, the family may inform the PHA and the PHA will assist the family in either resolving the issues or allow the family to participate in an in-person informal review, as appropriate. Informal Review Procedures [24 CFR 982.554(b)] The informal review must be conducted by a person other than the one who made or approved the decision under review, or a subordinate of this person. The applicant must be provided an opportunity to present written or oral objections to the decision of the PHA. Free language assistance will be provided for LEP applicants, in accordance with the PHA’s LEP Plan. 12.A.b Packet Pg. 1775 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-11 Remote Informal Reviews [Notice PIH 2020-32] There is no requirement that informal reviews be conducted in-person and, as such, HUD allows PHAs to conduct all or a portion of their informal review remotely either over the phone, via video conferencing, or through other virtual platforms. If the PHA chooses to conduct remote informal reviews, applicants may still request an in-person informal review, as applicable.PHA Policy The PHA has the sole discretion to require that informal reviews be conducted remotely in case of local, state, or national physical distancing orders, and in cases of inclement weather or natural disaster. In addition, the PHA will conduct an informal review remotely upon request of the applicant as a reasonable accommodation for a person with a disability, if an applicant does not have child care or transportation that would enable them to attend the informal review, or if the applicant believes an in-person informal review would create an undue health risk. The PHA will consider other reasonable requests for a remote informal review on a case-by-case basis. Ensuring Accessibility for Persons with Disabilities and LEP Individuals As with in-person informal reviews, the platform for conducting remote informal reviews must be accessible to persons with disabilities and the informal review must be conducted in accordance with Section 504 and accessibility requirements. This includes ensuring any information, websites, emails, digital notifications, and other virtual platforms are accessible for persons with vision, hearing, and other disabilities. Further, providing effective communication in a digital context may require the use of individualized auxiliary aids or services, such as audio description, captioning, sign language and other types of interpreters, keyboard accessibility, accessible documents, screen reader support, and transcripts. Auxiliary aids or services must be provided in accessible formats, in a timely manner, and in such a way to protect the privacy and independence of the individual. PHAs may never request or require that individuals with disabilities provide their own auxiliary aids or services, including for remote informal hearings. PHAs are required to make reasonable accommodations in policies, practices, and procedures to ensure persons with disabilities have a full and equal opportunity to participate in and benefit from all aspects of the informal review process. See Chapter 2 for a more detailed discussion of reasonable accommodation requirements. If no method of conducting a remote informal review is available that appropriately accommodates an individual’s disability, the PHA may not hold against the individual their inability to participate in the remote informal review, and the PHA should consider whether postponing the remote informal review to a later date is appropriate or whether there is a suitable alternative. Due to the individualized nature of disability, the appropriate auxiliary aid or service necessary, or reasonable accommodation, will depend on the specific circumstances and requirements. As with in-person reviews, Limited English Proficiency (LEP) requirements also apply to remote informal reviews, including the use of interpretation services and document translation. See Chapter 2 for a more thorough discussion of accessibility and LEP requirements, all of which apply in the context of remote informal reviews. Conducting Remote Informal Reviews 12.A.b Packet Pg. 1776 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-12 The PHA must ensure that the lack of technology or inability to use technology for remote informal reviews does not pose a disadvantage to families that may not be apparent to the PHA. The PHA should determine through a survey or other means if these barriers exist prior to conducting the remote informal review and, if the family does not have the proper technology to fully participate, either postpone the informal review or provide an alternative means of access. As with in-person informal reviews, the PHA must provide all materials presented, whether paper or electronic, to the family prior to the remote informal review. The family must also be provided with an accessible means by which to transmit their own evidence. The PHA must ensure that the applicant has the right to hear and be heard. All PHA policies and processes for remote informal reviews must be conducted in accordance with due process requirements and be in compliance with HUD regulations at 24 CFR 982.554 and guidance specified in Notice PIH 2020-32. PHA Policy The PHA will conduct remote informal reviews via a video conferencing platform, when available. If, after attempting to resolve any barriers, applicants are unable to adequately access the video conferencing platform at any point, or upon applicant request, the informal review will be conducted by telephone conferencing call-in. If the family is unable to adequately access the telephone conferencing call-in at any point, the remote informal review will be postponed, and an in-person alternative will be provided promptly within a reasonable time. At least five business days prior to scheduling the remote review, the PHA will provide the family with login information and/or conferencing call-in information and an electronic and/or physical copy of all materials being presented via first class mail and/or email. The notice will advise the family of technological requirements for the hearing and request the family notify the PHA of any known barriers. The PHA will resolve any barriers using the guidance in Section 6 of Notice PIH 2020-32, including offering the family the opportunity to attend an in- person hearing. If the informal review is to be conducted remotely, the PHA will require the family to provide any documents directly relevant to the informal review at least 24 hours before the scheduled review through the mail or via email. The PHA will scan and email copies of these documents to the PHA representative the same day. Documents will be shared electronically whenever possible. The PHA will follow up the email with a phone call and/or email to the applicant at least one business day prior to the remote informal review to ensure that the applicant received all information and is comfortable accessing the video conferencing or call-in platform. The PHA will ensure that all electronic information stored or transmitted with respect to the informal review is secure, including protecting personally identifiable information (PII), and meets the requirements for accessibility for persons with disabilities and persons with LEP. Informal Review Decision [24 CFR 982.554(b)] The PHA must notify the applicant of the PHA’s final decision, including a brief statement of the reasons for the final decision. 12.A.b Packet Pg. 1777 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-13 PHA Policy In rendering a decision, the PHA will evaluate the following matters: Whether or not the grounds for denial were stated factually in the notice to the family. The validity of the grounds for denial of assistance- If the grounds for denial are not specified in the regulations, then the decision to deny assistance will be overturned. The validity of the evidence-The PHA will evaluate whether the facts presented prove the grounds for denial of assistance. If the facts prove that there are grounds for denial, and the denial is required by HUD, the PHA will uphold the decision to deny assistance. If the facts prove the grounds for denial, and the denial is dis cretionary, the PHA will consider the recommendation of the person conducting the informal review in making the final decision whether to deny assistance. The PHA will notify the applicant of the final decision, including a statement explaining the reason(s) for the decision. The notice will be mailed within 15 business days of the informal review, to the applicant and their representative, if any, along with proof of mailing. If the decision to deny is overturned as a result of the informal review, processing for admission will resume. If the family fails to appear for their informal review, the denial of admission will stand and the family will be so notified. 16-III.C. INFORMAL HEARINGS FOR PARTICIPANTS [24 CFR 982.555] PHAs must offer an informal hearing for certain PHA determinations relating to the individual circumstances of a participant family. A participant is defined as a family that has been admitted to the PHA’s program and is currently assisted in the program. The purpose of the informal hearing is to consider whether the PHA’s decisions related to the family’s circumstances are in accordance with the law, HUD regulations and PHA policies. The PHA is not permitted to terminate a family’s assistance until the time allowed for the family to request an informal hearing has elapsed, and any requested hearing has been completed. Termination of assistance for a participant may include any or all of the following: • Refusing to enter into a contract or approve a lease • Terminating housing assistance payments under an outstanding contract • Refusing to process or provide assistance under portability procedures Decisions Subject to Informal Hearing 12.A.b Packet Pg. 1778 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-14 Circumstances for which the PHA must give a participant family an opportunity for an informal hearing are as follows: • A determination of the family’s annual or adjusted income, and the use of such income to compute the housing assistance payment • A determination of the appropriate utility allowance (if any) for tenant-paid utilities from the PHA utility allowance schedule • A determination of the family unit size under the PHA’s subsidy standards • A determination to terminate assistance for a participant family because of the family’s actions or failure to act • A determination to terminate assistance because the participant has been absent from the assisted unit for longer than the maximum period permitted under PHA policy and HUD rules • A determination to terminate a family’s Family Self Sufficiency contract, withhold supportive services, or propose forfeiture of the family’s escrow account [24 CFR 984.303(i)] Circumstances for which an informal hearing is not required are as follows: • Discretionary administrative determinations by the PHA • General policy issues or class grievances • Establishment of the PHA schedule of utility allowances for families in the program • A PHA determination not to approve an extension or suspension of a voucher term • A PHA determination not to approve a unit or tenancy • A PHA determination that a unit selected by the applicant is not in compliance with the HQS • A PHA determination that the unit is not in accordance with HQS because of family size • A determination by the PHA to exercise or not to exercise any right or remedy against an owner under a contract PHA Policy The PHA will only offer participants the opportunity for an informal hearing when required to by the regulations, and if the PHA denies a request for a reasonable accommodation (see Chapter 2). Remote Informal Hearings [Notice PIH 2020-32] There is no requirement that informal hearings be conducted in-person, and as such, HUD allows PHAs to conduct all or a portion of their informal hearings remotely either over the phone, via video conferencing, or through other virtual platforms. If the PHA chooses to conduct remote informal hearings, applicants may still request an in-person informal hearing, as applicable. PHA Policy The PHA has the sole discretion to require that informal hearings be conducted remotely in case of local, state, or national physical distancing orders, and in cases of inclement weather or natural disaster. 12.A.b Packet Pg. 1779 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-15 In addition, the PHA will conduct an informal hearing remotely upon request as a reasonable accommodation for a person with a disability, if a participant does not have child care or transportation that would enable them to attend the informal hearing, or if the participant believes an in-person hearing would create an undue health risk. The PHA will consider other reasonable requests for a remote informal hearing on a case-by-case basis. 12.A.b Packet Pg. 1780 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-16 Ensuring Accessibility for Persons with Disabilities and LEP Individuals As with in-person informal hearings, the platform for conducting remote informal hearings must be accessible to persons with disabilities and the informal hearings must be conducted in accordance with Section 504 and accessibility requirements. This includes ensuring any information, websites, emails, digital notifications, and other virtual platforms are accessible for persons with vision, hearing, and other disabilities. Further, providing effective communication in a digital context may require the use of individualized auxiliary aids or services, such as audio description, captioning, sign language and other types of interpreters, keyboard accessibility, accessible documents, screen reader support, and transcripts. Auxiliary aids or services must be provided in accessible formats, in a timely manner, and in such a way to protect the privacy and independence of the individual. PHAs may never request or require that individuals with disabilities provide their own auxiliary aids or services, including for remote informal hearings. PHAs are required to make reasonable accommodations in policies, practices, and procedures to ensure persons with disabilities have a full and equal opportunity to participate in and benefit from all aspects of the informal hearing process. See Chapter 2 for a more detailed discussion of reasonable accommodation requirements. If no method of conducting a remote informal hearings is available that appropriately accommodates an individual’s disability, the PHA may not hold against the individual their inability to participate in the remote informal hearing, and the PHA should consider whether postponing the remote hearing to a later date is appropriate or whether there is a suitable alternative. Due to the individualized nature of disability, the appropriate auxiliary aid or service necessary, or reasonable accommodation will depend on the specific circumstances and requirements. As with in-person reviews, Limited English Proficiency (LEP) requirements also apply to remote informal hearings, including the use of interpretation services and document translation. See Chapter 2 for a more thorough discussion of accessibility and LEP requirements, all of which apply in the context of remote informal hearings. 12.A.b Packet Pg. 1781 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-17 Conducting Informal Hearings Remotely The PHA must ensure that the lack of technology or inability to use technology for remote informal hearings does not pose a disadvantage to families that may not be apparent to the PHA. The PHA should determine through a survey or other means if these barriers exist prior to conducting the remote informal hearing and, if the family does not have the proper technology to fully participate, either postpone the informal hearing or provide an alternative means of access. As with in-person informal hearings, the PHA must provide all materials presented, whether paper or electronic, to the family prior to the remote informal hearing. The family must also be provided with an accessible means by wich to transmit their own evidence. The PHA’s essential responsibility is to ensure informal hearings meet the requirements of due process and comply with HUD regulations. Therefore, all PHA policies and processes for remote informal hearings will be conducted in accordance with due process requirements, and will be in compliance with HUD regulations at 24 CFR 982.555 and the guidance for conducting remote hearings specified in Notice PIH 2020-32. PHA Policy The PHA will conduct remote informal hearings via a video conferencing platform, when available. If, after attempting to resolve any barriers, participants are unable to adequately access the video conferencing platform at any point, or upon request, the informal hearing will be conducted by telephone conferencing call-in. If the family is unable to adequately access the telephone conferencing call-in at any point, the remote informal hearing will be postponed, and an in-person alternative will be provided promptly within a reasonable time. At least five business days prior to scheduling the remote hearing, the PHA will provide the family with login information and/or conferencing call-in information and an electronic copy of all materials being presented via first class mail and/or email. The notice will advise the family of technological requirements for the hearing and request the family notify the PHA of any known barriers. The PHA will resolve any barriers using the guidance in Section 6 of Notice PIH 2020-32, including offering the family the opportunity to attend an in-person hearing. The PHA will follow up with a phone call and/or email to the family at least one business day prior to the remote informal hearing to ensure that the family received all information and is comfortable accessing the video conferencing or call-in platform. The PHA will ensure that all electronic information stored or transmitted with respect to the informal hearing is secure, including protecting personally identifiable information (PII), and meets the requirements for accessibility for persons with disabilities and persons with LEP. Informal Hearing Procedures Notice to the Family [24 CFR 982.555(c)] When the PHA makes a decision that is subject to informal hearing procedures, the PHA must inform the family of its right to an informal hearing at the same time that it informs the family of the decision. For decisions related to the family’s annual or adjusted income, the determination of the appropriate utility allowance, and the determination of the family unit size, the PHA must notify the family that they may ask for an explanation of the basis of the determination, and that if t hey do not agree with the decision, they may request an informal hearing on the decision. 12.A.b Packet Pg. 1782 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-18 For decisions related to the termination of the family’s assistance, or the denial of a family’s request for an exception to the PHA’s subsidy standards, the notice m ust contain a brief statement of the reasons for the decision, a statement that if the family does not agree with the decisio n, the family may request an informal hearing on the decision, and a statement of the deadline for the family to request an informal hearing. In accordance with the PHA’s LEP Plan, a translated version of the notification of denial of assistance, and other appropriate language assistance, will be provided to LEP applicants. PHA Policy In cases where the PHA makes a decision for which an informal hearing must be offered, the notice to the family will include all of the following: The proposed action or decision of the PHA. A brief statement of the reasons for the decision, including the regulatory reference. A copy of all the relevant documents utilized to render the determination. The date the proposed action will take place. A statement of the family’s right to an explanation of the basis for the PHA’s decision. A deadline for the family to request the informal hearing. To whom the hearing request should be addressed. A copy of the PHA’s hearing procedures. That the family may request a remote informal hearing. A statement of the family’s right to request a Reasonable Accommodation for a person with a disability. A referral to the Santa Monica Office of the Legal Aid Foundation of Los Angeles. A statement that if the family does not avail itself of the opportunity for an informal hearing at the PHA, it may not appeal a termination decision. Availability of free language assistance, in accordance with the PHA’s LEP Plan; and That the participant may bring an interpreter to the informal hearing (other than a minor child) Scheduling an Informal Hearing [24 CFR 982.555(d)] When an informal hearing is required, the PHA must proceed with the hearing in a reasonably expeditious manner upon the request of the family. PHA Policy A request for an informal hearing must be made in writing, specify the determination being disputed, and delivered to the PHA either in person or by first class mail, by the close of the 12.A.b Packet Pg. 1783 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-19 business day, no later than 10 business days from the date of the PHA’s decision or notice to terminate assistance. The PHA must schedule and send written notice of the informal hearing to the family within 15 business days of the family’s request. The hearing is scheduled prior to the date of the final termination (unless there is no landlord involved). If the hearing cannot be scheduled prior to the effective date of the termination, and the participant still lives in the unit, the Housing Assistance Payment will be extended by 1 month to allow for the hearing process to be completed. If the PHA hearing will be conducted remotely, at the time the notice is sent to the family, the family will be notified: Regarding the processes involved in a remote informal hearing; That the PHA will provide technical assistance prior to and during the informal hearing, if needed; and That if the family or any individual witness has any technological, resource, or accessibility barriers, the family may inform the PHA and the PHA will assist the family in either resolving the issue or allow the family to participate in an in-person hearing, as appropriate. The family may request to reschedule a hearing for good cause, or if it is needed as a reasonable accommodation for a person with disabilities. Good cause is defined as an unavoidable conflict which seriously affects the health, safety or welfare of the family. Requests to reschedule a hearing must be made orally or in writing prior to the hearing date. At its discretion, the PHA may request documentation of the “good cause” prior to rescheduling the hearing. If the family does not appear within 20 minutes of the initial scheduled time, and was unable to reschedule the hearing in advance due to the nature of the conflict, the family must contact the PHA within 24 hours of the scheduled hearing date, excluding weekends and holidays. The PHA will reschedule the hearing only if th e family can show good cause for the failure to appear, or if it is needed as a reasonable accommodation for a person with disabilities. If the family cannot show good cause for the failure to appear, or a rescheduling is not needed as a reasonable accommodation, the PHA’s decision will stand. PHA will not grant more than one re-scheduled appointment. Pre-Hearing Right to Discovery [24 CFR 982.555(e)] Participants and the PHA are permitted pre-hearing discovery rights. The family must be given the opportunity to examine before the hearing any PHA documents that are directly relevant to the hearing. The family must be allowed to copy any such documents at their own expense. If the PHA does not make the document available for examination on request of the fam ily, the PHA may not rely on the document at the hearing. For the purpose of informal hearings, documents include records and regulations. PHA Policy 12.A.b Packet Pg. 1784 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-20 The family will be allowed to copy any documents related to the hearing at no cost to the family. The family must request discovery of PHA documents no later than five business days prior to the scheduled hearing date If the hearing will be conducted remotely, the PHA will compile a hearing packet, consisting of all documents the PHA intends to produce at the informal hearing. The PHA will mail copies of the hearing packet to the family, the family’s representatives, if any, and the hearing officer at least three days before the scheduled remote informal hearing. The original hearing packet will be in the possession of the PHA representative and retained by the PHA. Documents will be shared electronically whenever possible. The PHA hearing procedures may provide that the PHA must be given the opportunity to examine at the PHA offices before the hearing any family documents that are directly relevant to the hearing. The PHA must be allowed to copy any such document at the PHA’s expense. If the family does not make the document available for examination on request of the PHA, the family may not rely on the document at the hearing. PHA Policy For in-person hearings, the PHA will not require pre-hearing discovery by the PHA of family documents directly relevant to the hearing. If the informal hearing is to be conducted remotely, the PHA will require the family to provide any documents directly relevant to the informal hearing at least 24 hours before the scheduled hearing through the mail or via email. The PHA will scan and email copies of these documents to the hearing officer and the PHA representative the same day. Documents will be shared electronically whenever possible. Participant’s Right to Bring Counsel [24 CFR 982.555(e)(3)] At its own expense, the family may be represented by a lawyer or other representative at the informal hearing. If the family will be represented by legal counsel it must notify the PHA at least 5 business days prior to the hearing, and must provide the name, address and telephone number of their designated legal counsel. Informal Hearing Officer [24 CFR 982.555(e)(4)] Informal hearings will be conducted by a person or persons approved by the PHA, other than the person who made or approved the decision or a subordinate of the person who made or approved the decision. Attendance at the Informal Hearing PHA Policy Hearings may be attended by a hearing officer and the following applicable persons: A PHA representative(s) and any witnesses for the PHA The participant and any witnesses for the participant 12.A.b Packet Pg. 1785 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-21 The participant’s counsel or other representative The family is entitled to arrange for an interpreter to attend the hearing, at the expense of the family, or the PHA, if requested by the family. Any other person approved by the PHA as a reasonable accommodation for a person with a disability Conduct at Hearings The person who conducts the hearing may regulate the conduct of the hearing in accordance with the PHA’s hearing procedures [24 CFR 982.555(4)(ii)]. PHA Policy The hearing officer is responsible to manage the order of business and to ensure that hearings are conducted in a professional and businesslike manner. Attendees are expected to comply with all hearing procedures established by the hearing officer and guidelines for conduct. Any person demonstrating disruptive, abusive or otherwise inappropriate behavior will be excused from the hearing at the discretion of the hearing officer. Recording of the Hearing The family is entitled to have the hearing recorded. The PHA may, but is not required, to provide a transcript of the hearing. PHA Policy The PHA will have the hearing recorded but will not provide a transcript of the hearing. The family shall be responsible for any fee associated with obtaining the recording. Evidence [24 CFR 982.555(e)(5)] The PHA and the family must be given the opportunity to present evidence and question any witnesses. In general, all evidence is admissible at an informal hearing. Evidence may be considered without regard to admissibility under the rules of evidence applicable to judicial proceedings. PHA Policy Any evidence to be considered by the hearing officer must be presented at the time of the hearing. There are four categories of evidence. Oral evidence: the testimony of witnesses Documentary evidence: a writing which is relevant to the case, for example, a letter written to the PHA. Writings include all forms of recorded communication or representation, including letters, words, pictures, sounds, videotapes or symbols or combinations thereof. 12.A.b Packet Pg. 1786 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-22 Demonstrative evidence: Evidence created specifically for the hearing and presented as an illustrative aid to assist the hearing officer, such as a model, a chart or other diagram. Real evidence: A tangible item relating directly to the case. Hearsay Evidence is evidence based not on a witness’ personal knowledge. In and of itself, hearsay evidence carries no weight when making a finding of fact. The hearing officer may include hearsay evidence when considering their decision if it is corroborated by other evidence. Even though hearsay evidence is generally admissible in a hearing, the hearing officer will not base a hearing decision on hearsay alone unless there is clear probative value and credibility of the evidence, and the party seeking the change has met the burden of proof.If either the PHA (or the family, if required in a remote hearing) fail to comply with the discovery requirements described above, the hearing officer will refuse to admit such evidence. Other than the failure of a party to comply with discovery, the hearing officer has the authority to overrule any objections to evidence. Procedures for Rehearing or Further Hearing PHA Policy The hearing officer may ask the family for additional information and/or might adjourn the hearing in order to reconvene at a later date, before reach ing a decision. If the family misses an appointment or deadline ordered by the hearing officer, the action of the PHA will take effect and another hearing will not be granted. Hearing Officer’s Decision [24 CFR 982.555(e)(6)] The person who conducts the hearing must issue a written decision, stating briefly the reasons for the decision. Factual determinations relating to the individual circumstances of the family must be based on a preponderance of evidence presented at the hearing. PHA Policy In rendering a decision, the hearing officer will consider the following matters: PHA Notice to the Family: The hearing officer will determine if the reasons for the PHA’s decision are factually stated in the Notice. Discovery: The hearing officer will determine if the PHA and the family were given the opportunity to examine any relevant documents in accordance with PHA policy. PHA Evidence to Support the PHA Decision: The evidence consists of the facts presented. Evidence is not conclusion and it is not argument. The hearing officer will evaluate the facts to determine if they support the PHA’s conclusion. Validity of Grounds for Termination of Assistance (when applicable): The hearing officer will determine if the termination of assistance is for one of the grounds 12.A.b Packet Pg. 1787 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-23 specified in the HUD regulations and PHA policies. If the grounds for termination are not specified in the regulations or in compliance with PHA policies, then the decision of the PHA will be overturned. The hearing officer will issue a written decision to the family and the PHA no later than 15 business days after the hearing. The report will contain the following information: Hearing information: Name of the participant; Date, time and place of the hearing; Name of the hearing officer; Name of the PHA representative; and Name of family representative (if any). Background: A brief, impartial statement of the reason for the hearing. Summary of the Evidence: The hearing officer will summarize the testimony of each witness and identify any documents that a witness produced in support of their testimony and that are admitted into evidence. Findings of Fact: The hearing officer will include all findings of fact, based on a preponderance of the evidence. Preponderance of the evidence is defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not. Preponderance of the evidence may not be determined by the number of witnesses, but by the greater weight of all evidence. Conclusions: The hearing officer will render a conclusion derived from the facts that were found to be true by a preponderance of the evidence. The conclusion will result in a determination of whether these facts uphold the PHA’s decision. Order: The hearing report will include a statement of whether the PHA’s decision is upheld or overturned. If it is overturned, the hearing officer will instruct the PHA to change the decision in accordance with the hearing officer’s determination. In the case of termination of assistance, the hearing officer will instruct the PHA to restore the participant’s program status. Issuance of Decision [24 CFR 982.555(e)(6)] A copy of the hearing must be furnished promptly to the family. PHA Policy The hearing officer will mail a “Notice of Hearing Decision” to the PHA and to the participant on the same day. This notice will be sent by first-class mail. The participant will be mailed the original “Notice of Hearing Decision” and a copy of the proof of mailing. A copy of the “Notice of Hearing Decision” will be maintained in the PHA’s file. 12.A.b Packet Pg. 1788 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-24 Effect of Final Decision [24 CFR 982.555(f)] The PHA is not bound by the decision of the hearing officer for matters in which the PHA is not required to provide an opportunity for a hearing, decisions that exceed the authority of the hearing officer, decisions that conflict with or contradict HUD regulations, requirements, or are otherwise contrary to federal, state or local laws. If the PHA determines it is not bound by the hearing officer’s decision in accordance with HUD regulations, the PHA must promptly notify the family of the determination and the reason for the determination. The Housing Manager may determine the final decision if the hearing officer’s decision conflicts with regulations or if the hearing is not required. PHA Policy The Executive Director has the authority to determine that the PHA is not bound by the decision of the hearing officer because the PHA was not required to provide a hearing, the decision exceeded the authority of the hearing officer, the decision conflicted with or contradicted HUD regulations, requirements, or the decision was otherwise contrary to federal, state, or local laws. In such a case, the PHA will mail a “Notice of Final Decision” to the PHA and the participant on the same day. The “Notice of Final Decision” will be sent by first-class mail. A copy of this notice will be maintained in the PHA’s file. 16-III.D. HEARING AND APPEAL PROVISIONS FOR NON-CITIZENS [24 CFR 5.514] Denial or termination of assistance based on immigration status is subject to special hearing and notice rules. Applicants who are denied assistance due to immigration status are entitled to an informal hearing, not an informal review. Assistance to a family may not be delayed, denied, or terminated on the basis of immigration status at any time prior to a decision under the United States Citizenship and Immigration Services (USCIS) appeal process. Assistance to a family may not be terminated or denied while the PHA hearing is pending, but assistance to an applicant may be delayed pending the completion of the informal hearing. A decision against a family member, issued in accordance with the USCIS appeal process or the P HA informal hearing process, does not preclude the family from exercising the right, that may otherwise be available, to seek redress directly through judicial procedures. Notice of Denial or Termination of Assistance [24 CFR 5.514(d)] The notice of denial or termination of assistance for noncitizens must advise the family: • That financial assistance will be denied or terminated, and provide a brief explanation of the reasons for the proposed denial or termination of assistance. 12.A.b Packet Pg. 1789 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-25 • The family may be eligible for proration of assistance. • In the case of a participant, the criteria and procedures for obtaining relief under the provisions for preservation of families [24 CFR 5.514 and 5.518]. • That the family has a right to request an appeal to the USCIS of the results of secondary verification of immigration status and to submit additional documentation or explanation in support of the appeal. • That the family has a right to request an informal hearing with the PHA either upon completion of the USCIS appeal or in lieu of the USCIS appeal. • For applicants, assistance may not be delayed until the conclusion of the USCIS appeal process, but assistance may be delayed during the period of the informal hearing process. USCIS Appeal Process [24 CFR 5.514(e)] When the PHA receives notification that the USCIS secondary verification failed to confirm eligible immigration status, the PHA must notify the family of the results of the USCIS verification. The family will have 30 days from the date of the notification to request an appeal of the USCIS results. The request for appeal must be made by the family in writing directly to the USCIS. The family must provide the PHA with a copy of the written request for appeal and the proof of mailing. PHA Policy The PHA will notify the family in writing of the results of the USCIS secondary verification within 10 business days of receiving the results. The family must provide the PHA with a copy of the written request for appeal and proof of mailing within 10 business days of sending the request to the USCIS. In accordance with the PHA’s LEP Plan, a translated version of this notice, or notification of other appropriate language assistance, will be provided to LEP applicants. The family must forward to the designated USCIS office any additional documentation or written explanation in support of the appeal. This material must include a copy of the USCIS document verification request (used to process the secondary request) or such other form specified by the USCIS, and a letter indicating that the family is requesting an appeal of the USCIS immigration status verification results. The USCIS will notify the family, with a copy to the PHA, of its decision. When the USCIS notifies the PHA of the decision, the PHA must notify the family of its right to request an informal hearing. PHA Policy The PHA will send written notice to the family of its right to request an informal hearing within 10 business days of receiving notice of the USCIS decision regarding the family’s immigration status. Informal Hearing Procedures for Applicants [24 CFR 5.514(f)] 12.A.b Packet Pg. 1790 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-26 After notification of the USCIS decision on appeal, or in lieu of an appeal to the USCIS, the family may request that the PHA provide a hearing. The request for a hearing must be made either within 30 days of receipt of the PHA notice of denial, or within 30 days of receipt of the USCIS appeal decision. The informal hearing procedures for applicant families are described below. Informal Hearing Officer The PHA must provide an informal hearing before an impartial individual, other than a person who made or approved the decision under review, and other than a person who is a subordinate of the person who made or approved the decision. See Section 16-III.C. for a listing of positions that serve as informal hearing officers. Evidence The family must be provided the opportunity to examine and copy at the family’s expense, at a reasonable time in advance of the hearing, any documents in the possession of the PHA pertaining to the family’s eligibility status, or in the possession of the USCIS (as permitted by USCIS requirements), including any records and regulations that may be relevant to the hearing. PHA Policy The family will be provided copies of documents related to the hearing at a cost of $.20 per page. The family must request discovery of PHA documents no later than five business days prior to the hearing. The family must be provided the opportunity to present evidence and arguments in support of eligible status. Evidence may be considered without regard to admissibility under the rules of evidence applicable to judicial proceedings. The family must also be provided the opportunity to refute evidence relied upon by the PHA, and to confront and cross-examine all witnesses on whose testimony or information the PHA relies. Representation and Interpretive Services The family is entitled to be represented by an attorney or other designee, at the family’s expense, and to have such person make statements on the family’s behalf. The family is entitled to request an interpreter. Upon request, the PHA will provide competent interpretation services, free of charge. Recording of the Hearing The family is entitled to have the hearing recorded by audiotape. The PHA may, but is not required to, provide a transcript of the hearing. PHA Policy 12.A.b Packet Pg. 1791 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-27 The PHA will not provide a transcript of an audio taped hearing. Hearing Decision The PHA must provide the family with a written final decision, based solely on the facts presented at the hearing, within 14 calendar days of the date of the informal hearing. The decision must state the basis for the decision. Informal Hearing Procedures for Residents [24 CFR 5.514(f)] After notification of the USCIS decision on appeal, or in lieu of an appeal to the USCIS, the family may request that the PHA provide a hearing. The request for a hearing must be made either within 30 days of receipt of the PHA notice of termination, or within 30 days of receipt of the USCIS appeal decision. For the informal hearing procedures that apply to participant famil ies whose assistance is being terminated based on immigration status, see Section 16-III.C. Retention of Documents [24 CFR 5.514(h)] The PHA must retain electronically for a minimum of 3 years the following documents that may have been submitted to the PHA by the family, or provided to the PHA as part of the USCIS appeal or the PHA informal hearing process: • The application for assistance • The form completed by the family for income reexamination • Photocopies of any original documents, including original USCIS documents • The signed verification consent form • The USCIS verification results • The request for a USCIS appeal • The final USCIS determination • The request for an informal hearing • The final informal hearing decision 12.A.b Packet Pg. 1792 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-28 PART IV: OWNER OR FAMILY DEBTS TO THE PHA 16-IV.A. OVERVIEW PHAs are required to include in the administrative plan, policies concerning repayment by a family of amounts owed to the PHA [24 CFR 982.54]. If the family breaches an agreement with the PHA to pay amounts owed to a PHA, or amounts paid to an owner by a PHA, the PHA, at its discretion, may offer a family the opportunity to enter an agreement to pay amounts owed to a PHA or amounts paid to an owner by a PHA. The PHA may prescribe the terms of the agreement [24 CFR 982.552(c)(1)(vii). This part describes the PHA’s policies for recovery of monies owed to the PHA by families or owners. PHA Policy When an action or inaction of an owner or participant results in the overpayment of housing assistance, the PHA holds the owner or participant liable to return any overpayments to the PHA. The PHA will enter into repayment agreements in accordance with the policies contained in this part as a means to recover overpayments. 16-IV.B. REPAYMENT POLICY Owner Debts to the PHA PHA Policy Any amount due to the PHA by an owner must be repaid by the owner within 30 days of the PHA determination of the debt. If the owner fails to repay the debt within the required time frame and is entitled to future HAP payments, the PHA will reduce the future HAP payments by the amount owed until the debt is paid in full. If the owner is not entitled to future HAP payments the PHA may, in its sole discretion, offer to enter into a repayment agreement on terms prescribed by the PHA. If the owner refuses to repay the debt, does not enter into a repayment agreement, or breaches a repayment agreement, the PHA will ban the owner from future participation in the program and pursue other modes of collection. When an owner refuses to repay monies owed to the PHA, the PHA will utilize other available collection alternatives including, but not limited to, the following: Collection agencies Small claims court Civil lawsuit State income tax set-off program 12.A.b Packet Pg. 1793 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-29 Family Debts to the PHA Families are required to reimburse the PHA if they were charged less rent than required because the family either underreported or failed to report income. PHAs are required to determine retroactive rent amounts as far back as the PHA has documentation of family unreported income [Notice PIH 2018-18]. PHA Policy Any amount owed to the PHA by an HCV family must be repaid by the family. If the family is unable to repay the debt within 30 days, the PHA will offer to enter into a repayment agreement in accordance with the policies below. Refusal to Enter into an Agreement If the family refuses to repay the debt, does not enter into a repayment agreement, or breaches a repayment agreement, the PHA must terminate assistance [Notice PIH 2018-18]. PHA Policy When a family refuses to repay monies owed to the PHA, in addition to termination of program assistance, the PHA will utilize other available collection alternatives including, but not limited to, the following: Collection agencies Small claims court Civil lawsuit State income tax set-off program Repayment Agreement [24 CFR 792.103] The term repayment agreement refers to a formal written document signed by a tenant or owner and provided to the PHA in which a tenant or owner acknowledges a debt in a specific amount and agrees to repay the amount due at specific time periods. General Repayment Agreement Guidelines for Families Down Payment Requirement PHA Policy Before executing a repayment agreement with a family, the PHA will generally require a down payment of 10 percent of the total amount owed or the PHA may, in its sole discretion, require a lesser percentage down payment. Payment Thresholds Notice PIH 2018-18 recommends that the total amount that a family must pay each month- the family’s monthly share of rent plus the monthly debt repayment amount- should not exceed 40 12.A.b Packet Pg. 1794 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-30 percent of the family’s monthly adjusted income. However, a family may already be paying 40 per cent or more of its monthly adjusted income in rent. Moreover, Notice PIH 2018-18 acknowledges that PHAs have the discretion to establish “thresholds and policies” for repayment agreements with families [24 CFR 982.552(c)(1)(vii)]. PHA Policy The PHA has established the following thresholds for repa yment of debts: Amounts between $3,000 and the federal or state threshold for criminal prosecution must be repaid within 36 months. Amounts between $2,000 and $2,999 must be repaid within 30 months. Amounts between $1,000 and $1,999 must be repaid within 2 4 months. Amounts under $1,000 must be repaid within 12 months. Execution of the Agreement All repayment agreements must be in writing, dated, and signed by both the family and the PHA [Notice PIH 2018-18]. PHA Policy Any repayment agreement between the PHA and a family must be signed and dated by the PHA and by the head of household and spouse/co-head (if applicable). Due Dates PHA Policy All payments are due by the close of business on the 15th day of the month. If the 15th does not fall on a business day, the due date is the close of business on the first business day after the 15th. Late or Missed Payments PHA Policy If a payment is not received by the end of the business day on the date due, and prior approval for the missed payment has not been given by the PHA, the PHA will send the family a delinquency notice giving the family 10 business days to make the late payment. If the payment is not received by the due date of the delinquency notice, it will be considered a breach of the agreement and the PHA will terminate assist ance in accordance with the policies in Chapter 12. If a family receives three delinquency notices for unexcused late payments in a 12- month period, the repayment agreement will be considered in default, and the PHA will terminate assistance in accordance with the policies in Chapter 12. When a default has occurred, the entire balance is due in full. In such cases, the PHA will deny eligibility to the family, will not 12.A.b Packet Pg. 1795 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-31 issue a new voucher, approve a new lease, or execute a new contract until the balance has been paid in full. In addition, under program regulations the PHA will terminate assistance in accordance with the policies in Chapter 12. No Offer of Repayment Agreement PHA Policy The PHA will not enter into a repayment agreement with a family if there is already a repayment agreement in place with the family or if the amount owed by the family exceeds the federal or state threshold for criminal prosecution, or if the family has entered into a repayment agreement with the PHA in the past 36 months. In the absence of a repayment agreement due to one of these conditions, the family will be required to pay the debt in full within 30 days. Repayment Agreement Terms All repayment agreements must be in writing, dated, signed by both the family and the PHA, include the total retroactive rent amount owed, any amount of lump sum payment made at time of execution, if applicable, and the monthly repayment amount. Notice PIH 201 8-18 requires certain provisions, at a minimum, be included in any repayment agreement involving amounts owed by a family because it underreported or failed to report income: • A reference to the items in the family briefing packet that state the family’s obligation to provide true and complete information at every reexamination and the ground s on which the PHA may terminate assistance because of a family’s action or failure to act • A statement clarifying that each month the family not only must pay to the PHA the monthly payment amount specified in the agreement but must also pay to the owner t he family’s monthly share of the rent to owner • A statement that the terms of the repayment agreement may be renegotiated if the family’s income decreases or increases • A statement that late or missed payments constitute default of the repayment agreement and may result in termination of assistance Renegotiation of Repayment Agreements • The PHA will consider a request for a renegotiation of a repayment agreement only under the circumstances that a family is current on the payments to the PHA and can demonstrate that their income has changed since the repayment agreement was issued. The request must be submitted in writing, along with applicable evidence of the change in income, before the family makes any changes to their payment amount. The request will be reviewed by the PHA within 10 business days, at which time a letter with the PHA’s decision will be mailed to the family. This request is not subject to an informal hearing. 12.A.b Packet Pg. 1796 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-32 PART V : SECTION 8 MANAGEMENT ASSESSMENT PROGRAM (SEMAP) 16-V.A. OVERVIEW The Section 8 Management Assessment Program (SEMAP) is a tool that allows HUD to measure PHA performance in key areas to ensure program integrity and accountability. SEMAP scores translate into a rating for each PHA as high performing, standard, or troubled. Scores on individual SEMAP indicators, as well as overall SEMAP ratings, can affect the PHA in several ways. • High-performing PHAs can be given a competitive advantage under notices of funding availability [24 CFR 985.103]. • PHAs with deficiencies on one or more indicators are required to correct the deficiencies and report to HUD [24 CFR 985.106]. • PHAs with an overall rating of “troubled” are subject to additional HUD oversight, including on- site reviews by HUD staff, a requirement to develop a corrective action p lan, and monitoring to ensure the successful implementation of the corrective action plan. In addition, PHAs that are designated “troubled” may not use any part of the administrative fee reserve for other housing purposes [24 CFR 985.107]. • HUD may determine that a PHA's failure to correct identified SEMAP deficiencies or to prepare and implement a corrective action plan required by HUD constitutes a default under the ACC [24 CFR 985.109]. 16-V.B. SEMAP CERTIFICATION [24 CFR 985.101] PHAs must submit the HUD-required SEMAP certification form within 60 calendar days after the end of its fiscal year. The certification must be approved by PHA board resolution and signed by the PHA executive director. If the PHA is a unit of local government or a state, a resolu tion approving the certification is not required, and the certification must be executed by the Housing Manager. PHAs with less than 250 voucher units are only required to be assessed every other PHA fiscal year. HUD will assess such PHAs annually if the PHA elects to have its performance assessed on an annual basis; or is designated as “troubled” [24 CFR 985.105]. Failure of a PHA to submit its SEMAP certification within the required time frame will result in an overall performance rating of “troubled.” A PHA’s SEMAP certification is subject to HUD verification by an on-site confirmatory review at any time. Upon receipt of the PHA’s SEMAP certification, HUD will rate the PHA’s performance under each SEMAP indicator in accordance with program requirements. 12.A.b Packet Pg. 1797 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-33 HUD Verification Method Several of the SEMAP indicators are scored based on a review of a quality control sample selected for this purpose. The PHA or the Independent Auditor must select an unbiased sample that provides an adequate representation of the types of information to be assessed, in accordance with SEMAP requirements [24 CFR 985.2]. If the HUD verification method for the indicator relies on data in the Form-50058 module (formerly known as MTCS) in the PIH Information Center (PIC), and HUD determines that those data are insufficient to verify the PHA's certification on the indicator due to the PHA's failure to adequately report family data, HUD will assign a zero rating for the indicator [24 CFR 985.3]. 16-V.C. SEMAP INDICATORS [24 CFR 985.3 and form HUD-52648] The table below lists each of the SEMAP indicators, contains a d escription of each indicator, and explains the basis for points awarded under each indicator. A PHA that expends less than $300,000 in Federal awards and whose Section 8 progra ms are not audited by an independent auditor, is not be rated under SEMAP indicators 1-7. 12.A.b Packet Pg. 1798 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-34 SEMAP Indicators Indicator 1: Selection from the waiting list Maximum Score: 15 • This indicator shows whether the PHA has written policies in its administrative plan for selecting applicants from the waiting list and whether the PHA follows these policies when selecting applicants from the waiting list. • Points are based on the percent of families that are selected from the waiting list in accordance with the PHA’s written policies, according to the PHA’s quality control samples. Indicator 2: Rent reasonableness Maximum Score: 20 • This indicator shows whether the PHA has and implements a reasonable written method to determine and document for each unit leased that th e rent to owner is reasonable based on current rents for comparable unassisted units at the required times. • Points are based on the percent of units for which the PHA follows its written method to determine reasonable rent and has documented its determination that the rent to owner is reasonable, according to the PHA’s quality control sample. Indicator 3: Determination of adjusted income Maximum Score: 20 • This indicator measures whether the PHA verifies and correctly determines adjusted income for each assisted family, and where applicable, uses the appropriate utility allowances for the unit leased in determining the gross rent. • Points are based on the percent of files that are calculated and verified correctly, according to the PHA’s quality control sample. Indicator 4: Utility allowance schedule Maximum Score: 5 • This indicator shows whether the PHA maintains an up-to-date utility allowance schedule. • Points are based on whether the PHA has reviewed the utility allowance schedule and adjusted it when required, according to the PHA’s certification. Indicator 5: HQS quality control inspections Maximum Score: 5 • This indicator shows whether a PHA supervisor re-inspects a sample of units under contract during the PHA fiscal year, which meets the minimum sample size requirements for quality control of HQS inspections. • Points are based on whether the required quality control reinspection’s were completed, according to the PHA’s certification. 12.A.b Packet Pg. 1799 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-35 Indicator 6: HQS enforcement Maximum Score: 10 • This indicator shows whether, following each HQS inspection of a unit under contract where the unit fails to meet HQS, any cited life-threatening deficiencies are corrected within 24 hours from the inspection and all other deficiencies are corrected within no more than 30 calendar days from the inspection or any PHA-approved extension. • Points are based on whether the PHA corrects all HQS deficiencies in accordance with required time frames, according to the PHA’s certification. Indicator 7: Expanding housing opportunities Maximum Points: 5 • Only applies to PHAs with jurisdiction in metropolitan FMR areas. • This indicator shows whether the PHA has adopted and implemented a written policy to encourage participation by owners of units located outside areas of poverty or minority concentration; informs voucher holders of the full range of areas where they may lease units both inside and outside the PHA’s jurisdiction; and supplies a list of landlords or other parties who are willing to lease units or help families find units, including units outside areas of poverty or minority concentration. • Points are based on whether the PHA has adopted and implemented written policies in accordance with SEMAP requirements, according to the PHA’s certification. Indicator 8: FMR limit and payment standards Maximum Points: 5 points • This indicator shows whether the PHA has adopted a payment standard schedule that establishes payment standard amounts by unit size for each FMR area in the PHA’s jurisdiction, that are within the basic range of 90 to 110 p ercent of the published FMR. • Points are based on whether the PHA has appropriately adopted a payment standard schedule(s), according to the PHA’s certification. Indicator 9: Annual reexaminations Maximum Points: 10 • This indicator shows whether the PHA completes a reexamination for each participating family at least every 12 months. • Points are based on the percent of reexaminations that are less than two months overdue, according to data from PIC. 12.A.b Packet Pg. 1800 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-36 Indicator 10: Correct tenant rent calculations Maximum Points: 5 • This indicator shows whether the PHA correctly calculates the family’s share of the rent to owner. • Points are based on the percent of correct calculations of family share of the rent, according to data from PIC. Indicator 11: Pre-contract HQS inspections Maximum Points: 5 • This indicator shows whether newly leased units pass HQS inspection on or before the effective date of the assisted lease and HAP contract. • Points are based on the percent of newly leased units that passed HQS inspection on or before the effective date of the lease and HAP contract, according to data from PIC. Indicator 12: Annual HQS inspections Maximum Points: 10 • This indicator shows whether the PHA inspects each unit under contract at least annually. • Points are based on the percent of annual HQS inspections of units under contract that are more than 2 months overdue, according to data from PIC. Indicator 13: Lease-up Maximum Points: 20 points • This indicator shows whether the PHA enters HAP contracts for at least 98 percent of the number of the PHA’s baseline voucher units in the ACC for the calendar year ending on or before the PHA’s fiscal year, or whether the PHA has expended at least 98 percent of its allocated budget authority for the same calendar year. The PHA can receive 15 points if 95 to 97 percent of vouchers are leased or budget authority is utilized. • Points are based on utilization of vouchers and HAP expenditures as reported in the voucher management system (VMS) for the most recently completed calendar year. Indicator 14: Family self-sufficiency (FSS) enrollment and escrow account balances Maximum Points: 10 • Only applies to PHAs with mandatory FSS programs. • This indicator shows whether the PHA has enrolled families in the FSS program as required and measures the percent of current FSS participants that have had increases in earned income which resulted in escrow account balances. • Points are based on the percent of mandatory FSS slots that are filled and the percent of families with escrow account balances, according to data from PIC. 12.A.b Packet Pg. 1801 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-37 Success Rate of Voucher Holders Maximum Points: 5 • Only applies to PHAs that have received approval to establish success rate payment standard amounts, and isn’t effective until the second full PHA fiscal year following the date of HUD approval of success rate payment standard amounts. • This indicator shows whether voucher holders were successful in leasing units with voucher assistance. • Points are based on the percent of families that were issued vouchers, and that became participants in the voucher program. Deconcentration Bonus Indicator Maximum Points: 5 • Submission of data for this indicator is mandatory for a PHA using one or more payment standard amount(s) that exceed(s) 100 percent of the published FMR set at the 50 percentile rent, starting with the second full PHA fiscal year following initial use of payment standard amounts based on the FMRs set at the 50th percentile. • Additional points are available to PHAs that have jurisdiction in metropolitan FMR areas and that choose to submit the required data. • Points are based on whether the data that is submitted meets the requi rements for bonus points. 12.A.b Packet Pg. 1802 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-38 PART VI: RECORD KEEPING 16-VI.A. OVERVIEW The PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. All such records must be made available to HUD or the Comptroller General of the United States upon request. In addition, the PHA must ensure that all applicant and p articipant files are maintained in a way that protects an individual’s privacy rights. 16-VI.B. RECORD RETENTION [24 CFR 982.158; 24 CFR 908.101] During the term of each assisted lease, and for at least three years thereafter, the PHA must keep: • A copy of the executed lease; • The contract; and • The application from the family. In addition, the PHA must keep the following records for at least three years: • Records that provide income, racial, ethnic, gender, and disability status data on program applicants and participants; • An application from each ineligible family and notice that the applicant is not eligible; • HUD-required reports; • Unit inspection reports; • Lead-based paint records as required by 24 CFR 35, Subpart B. • Accounts and other records supporting PHA budget and financial statements for the program; • Records to document the basis for PHA determination that rent to owner is a reasonable rent (initially and during the term of a contract); and • Other records specified by HUD. The PHA must keep the last three years of the Form HUD-50058 and supporting documentation during the term of each assisted lease, and for a period of at least three years from the end of participation (EOP) date [24 CFR 908.101]. The PHA must maintain Enterprise Income Verification (EIV) system Income Reports in the tenant file for the duration of the tenancy but for a period not to exceed three years from the EOP date [Notice PIH 2018-18]. Notice PIH 2014-20 requires PHAs to keep records of all complaints, investigations, notices, and corrective actions related to violations of the Fair Housing Act or the equal access final rule. 12.A.b Packet Pg. 1803 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-39 The PHA must keep confidential records of all emergency transfer requested by victims of domestic violence, dating violence, sexual assault, and stalking under the PHA’s Emergency Transfer Plan, as well as the outcomes of such requests, and retain the records for a period of three years [24 CFR 5.2002(e)(12)]. If an informal hearing to establish a family’s citizenship status is held, longer re tention requirements apply for some types of documents. For specific requirements, see Section 16-III.D, Retention of Documents. 16-VI.C. RECORDS MANAGEMENT PHAs must maintain applicant and participant files and information in accordance with the regulatory requirements described below. PHA Policy All applicant and participant information will be kept electronically in a secure location and access will be limited to authorized PHA staff. PHA staff will not discuss personal family information unless there is a business reason to do so. Inappropriate discussion of family information or improper disclosure of family information by staff will result in disciplinary action. Privacy Act Requirements [24 CFR 5.212 and Form-9886] The collection, maintenance, use, and dissemination of social security numbers (SSN), employer identification numbers (EIN), any information derived from these numbers, and income information of applicants and participants must be conducted, to the extent applicable, in compliance with the Privacy Act of 1974, and all other provisions of Federal, State, and local law. Applicants and participants, including all adults in the household, are required to sign a consent form, HUD-9886, Authorization for Release of Information. This form incorporates the Federal Privacy Act Statement and describes how the information collected using the form may be used, and under what conditions HUD or the PHA may release the information collected. Upfront Income Verification (UIV) Records PHAs that access UIV data through HUD’s Enterprise Income Verification (EIV) system are required to adopt and follow specific security procedures to ensure that all EIV data is protected in accordance with federal laws, regardless of the media on which the data is recorded (e.g. electronic, paper). These requirements are contained in the HUD issued document, Enterprise Income Verification (EIV) System, Security Procedures for Upfront Income Verification data. PHA Policy Prior to utilizing HUD’s EIV system, the PHA will adopt and implement EIV security procedures required by HUD. 12.A.b Packet Pg. 1804 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-40 Criminal Records The PHA may only disclose the criminal conviction records which the PHA receives from a law enforcement agency to officers or employees of the PHA, or to authorized representatives of th e PHA who have a job-related need to have access to the information [24 CFR 5.903(e)]. The PHA must establish and implement a system of records management that ensures that any criminal record received by the PHA from a law enforcement agency is maintained confidentially, not misused or improperly disseminated, and destroyed, once the purpose for which the record was requested has been accomplished, including expiration of the period for filing a challenge to the PHA action without institution of a challenge or final disposition of any such litigation [24 CFR 5.903(g)]. The PHA must establish and implement a system of records management that ensures that any sex offender registration information received by the PHA from a State or local agency is maintained confidentially, not misused or improperly disseminated, and destroyed, once the purpose for which the record was requested has been accomplished, including expiration of the period for filing a challenge to the PHA action without institution of a challenge or final disposition of any such litigation. However, a record of the screening, including the type of screening and the date performed must be retained [Notice PIH 2012-28]. This requirement does not apply to information that is public information, or is obtained by a PHA other than under 24 CFR 5.905. Medical/Disability Records PHAs are not permitted to inquire about the nature or extent of a person’s disability. The PHA may not inquire about a person’s diagnosis or details of treatment for a disability or medical condition. If the PHA receives a verification document that provides such information, the PHA should not place this information in the tenant file. The PHA should destroy the document. Documentation of Domestic Violence, Dating Violence, Sexual Assault, or Stalking For requirements and PHA policies related to management of documentation obtained from victims of domestic violence, dating violence, sexual assault, or stalking, see section 16-IX.E. 12.A.b Packet Pg. 1805 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-41 PART VII: REPORTING AND RECORD KEEPING FOR CHILDREN WITH ELEVATED BLOOD LEAD LEVEL 16-VII.A. OVERVIEW The PHA has certain responsibilities relative to children with elevated blood lead levels that are receiving HCV assistance. The notification, verification, and hazard reduction requirements ar e discussed in Chapter 8. This part deals with the reporting requirements, and data collection and record keeping responsibilities that the PHA is subject to. 16-VII.B. REPORTING REQUIREMENT [24 CFR 35.1225(e); Notice PIH 2017-13] The owner must report the name and address of a child identified as having an elevated blood lead level to the public health department within five business days of being so notified by any other medical health care professional. The owner must also notify the HUD field office and the HUD Office of Lead Hazard Control and Healthy Homes (OLHCHH) of the child’s address within five business days. The PHA may collaborate with the owner on the notification process, such as by agreeing with the owner to provide the required notifications on the owner’s behalf. PHA Policy Upon notification by the owner, the PHA will provide the public health department written notice of the name and address of any child identified as having an elevated blood lead level within five business days. Upon notification by the owner, the PHA will notify the HUD field office and the HUD Office of Lead Hazard Control and Healthy Homes (OLHCHH) of the child’s address within five business days. 16-VII.C. DATA COLLECTION AND RECORD KEEPING [24 CFR 35.1225(f)] At least quarterly, the PHA must attempt to obtain from the public health department(s) with a similar area of jurisdiction, the names and/or addresses of children less than 6 years old with an identified elevated blood lead level. If the PHA obtains names and addresses of elevated blood lead level children from the public health department(s), the PHA must match this information with the names and addresses of families receiving HCV assistance, unless the public health department performs such a procedure. If a match occurs, the PHA must carry out the notification, verification, and hazard reduction requirements discussed in Chapter 8, and the reporting requirement discussed above. At least quarterly, the PHA must also report an updated list of the addresses of units receiving assistance under the HCV program to the same public health department(s), unless the public health department(s) states that it does not wish to receive such a report. 12.A.b Packet Pg. 1806 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-42 PHA Policy HOME Program: At least quarterly, the PHA will communicate with the local public health department to both request and provide inform ation. The goal of this information sharing is to identify children with lead poisoning, under the age of six, in TBRA units, so that proper hazard reduction activity can take place. Specifically, the PHA will: 1) Attempt to obtain from the public health dep artment, the names and addresses of any children under age six with an environmental intervention blood level. If the PHA receives this list from the Public Health Department, the PHA will match those addresses against units receiving TBRA and take required hazard evaluation and reduction in those units per 24 CFR 35.1225. 2) Provide to the public health department a list of addresses of units receiving TBRA, unless the public health department states that they do not want to receive this list. 12.A.b Packet Pg. 1807 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-43 PART VIII: DETERMINATION OF INSUFFICIENT FUNDING 16-VIII.A. OVERVIEW The HCV regulations allow PHAs to deny families permission to move and to terminate Housing Assistance Payments (HAP) contracts if funding under the consolidated ACC is insufficient to support continued assistance [24 CFR 982.354(e)(1) and 982.454]. If a PHA denies a family a portability move based on insufficient funding, the PHA is required to notify the local HUD office within 10 business days [24 CFR 982.354]. Insufficient funding may also impact the PHA’s ability to issue vouchers to families on the waiting list. This part discusses the methodology the PHA will use to determine whether or not the PHA has sufficient funding to issue vouchers, approve moves, and to continue subsidizing all families currently under a HAP contract. 16-VIII.B. METHODOLOGY PHA Policy The PHA will determine whether there is adequate funding to issue vouchers, approve moves to higher cost units and areas, and continue subsidizing all current participants by comparing the PHA’s annual budget authority to the annual total HAP needs on a monthly basis. The total HAP needs for the calendar year will be projected by establishing the actual HAP costs year to date. To that figure, the PHA will add anticipated HAP expenditures for the remainder of the calendar year. Projected HAP expenditures will be calculated by multiplying the projected number of units leased per remaining months by the most current month’s average HAP. The projected number of units leased per month will take into account the average monthly turnover of participant families. If the total annual HAP needs equal or exceed the annual budget authority and funding reserves, or if the PHA cannot support the cost of the proposed subsidy commitment (voucher issuance or move) based on the funding analysis, the PHA will be considered to have insufficient funding. 12.A.b Packet Pg. 1808 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-44 PART IX: VIOLENCE AGAINST WOMEN ACT (VAWA) NOTIFICATION, DOCUMENTATION, CONFIDENTIALITY 16-IX.A. OVERVIEW The Violence Against Women Act of 2013 (VAWA) provides special protections for victims of domestic violence, dating violence, sexual assault, and stalking who are applying for or receiving assistance under the housing choice voucher (HCV) program. If your state or local laws provide greater protection for such victims, those laws apply in conjunction with VAWA. In addition to definitions of key terms used in VAWA, this part contains general VAWA requirements and PHA policies in three areas: notification, documentation, and confidentiality. Specific VAWA requirements and PHA policies are located primarily in the following sections: 3-I.C, “Family Breakup and Remaining Member of Tenant Family”; 3-III.G, “Prohibition against Denial of Assistance to Victims of Domestic Violence, Dating Violence, and Stalking”; 10-I.A, “Allowable Moves”; 10-I.B, “Restrictions on Moves”; 12-II.E, “Terminations Related to Domestic Violence, Dating Violence, or Stalking”; and 12-II.F, “Termination Notice.” 16-IX.B. DEFINITIONS [24 CFR 5.2003, 42 USC 13925] As used in VAWA: • The term bifurcate means, with respect to a public housing or Section 8 lease, to divide a lease as a matter of law such that certain tenants can be evicted or removed while the remaining family members’ lease and occupancy rights are allowed to remain intact. • The term dating violence means violence committed by a person who is or has been in a social relationship of a romantic or intimate nature with the victim; and where the existence of such a relationship shall be determined based on a consideration of the following factors: - The length of the relationship - The type of relationship - The frequency of interaction between the persons involved in the relationship • The term domestic violence includes felony or misdemeanor crimes of violence committed by a current or former spouse or intimate partner of the victim, by a person with whom the victim shares a child in common, by a person who is cohabitating with or has cohabitated with the victim as a spouse or intimate partner, by a person similarly situated to a spouse of the victim under the domestic or family violence laws of the jurisdiction receiving grant monies, or by any other person against an adult or youth victim who is protected from that person’s acts under the domestic or family violence laws of the jurisdiction. • The term affiliated individual means, with respect to a person: - A spouse, parent, brother or sister, or child of that individual, or an individual to whom that individual stands in the position or place of a parent; or - Any other individual, tenant, or lawful occupant living in the household of the victim of domestic violence, dating violence, sexual assault, or stalking. 12.A.b Packet Pg. 1809 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-45 • The term sexual assault means: - Any nonconsensual sexual act proscribed by federal, tribal, or state law, including when the victim lacks the capacity to consent • The term stalking means: - To engage in a course of conduct directed at a specific person that would cause a reasonable person to fear for their safety or the safety of others, or suffer substantial emotional distress. 16-IX.C. NOTIFICATION [24 CFR 5.2005(a)] Notification to Public The PHA adopts the following policy to help ensure that all actual and potential beneficiaries of its HCV program are aware of their rights under VAWA. PHA Policy The PHA will post the following information regarding VAWA in its offices and on its website. It will also make the information readily available to anyone who requests it. A copy of the notice of occupancy right under VAWA to housing choice voucher program applicants and participants who are or have been victims of domestic violence, dating violence, sexual assault, or stalking (Form HUD-5380, see exhibit 16-1) A copy of form HUD-5382, Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking and Alternate Documentation (see Exhibit 16-2) A copy of the PHA’s emergency transfer plan (Exhibit 16-3) A copy of HUD’s Emergency Transfer Request for Certain Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking, Form HUD-5383 (Exhibit 16-4) The National Domestic Violence Hot Line: 1-800-799-SAFE (7233) or 1-800-787-3224 (TTY) (included in Exhibits 16-1 and 16-2) Contact information for local victim advocacy groups or service providers Notification to Program Applicants and Participants [24 CFR 5.2005(a)(1)] PHAs are required to inform program applicants and participants of their rights under VAWA, including their right to confidentiality and the limits thereof , when they are denied assistance, when they are admitted to the program, and when they are notified of an eviction or termination of housing benefits. VAWA 2013 also requires that this notice of VAWA rights be translated in accordance with HUD’s LEP Guidance and Executive Order 13166. PHA Policy 12.A.b Packet Pg. 1810 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-46 The PHA will provide all applicants with information about VAWA at the time they request an application for housing assistance, as part of the written briefing packet, and at the time the family is admitted to the program. The PHA will also include information about VAWA in all notices of denial of assistance (see section 3-III.G). The PHA will provide all participants with information about VAWA at the time of admission (see section 5-I. B) and at annual reexamination. The PHA will also include information about VAWA in notices of termination of assistance, as provided in section 12-II.F. The VAWA information provided to applicants and participants will consist of the notice in Exhibits 16-1 and 16-2. The PHA is not limited to providing VAWA information at the times specified in the above policy. If the PHA decides to provide VAWA information to a participant following an incident of domestic violence, Notice PIH 2017-08 cautions against sending the information by mail, since the abuser may be monitoring the mail. The notice recommends that in such cases the PHA make alternative delivery arrangements that will not put the victim at risk. PHA Policy Whenever the PHA has reason to suspect that providing information about VAWA to a participant might place a victim of domestic violence at risk, it will attempt to deliver the information by hand directly to the victim or by having the victim come to an office or other space that may be safer for the individual, making reasonable accommodations as necessary. For example, the PHA may decide not to send mail regarding VAWA p rotections to the victim’s unit if the PHA believes the perpetrator may have access to the victim’s mail, unless requested by the victim. When discussing VAWA with the victim, the PHA will take reasonable precautions to ensure that no one can overhear the conversation, such as having conversations in a private room. The victim may, but is not required to, designate an attorney, advocate, or other secure contact for communications regarding VAWA protections. Notification to Owners and Managers While PHAs are no longer required by regulation to notify owners and managers participating in the HCV program of their rights and obligations under VAWA, the PHA may still choose to inform them. PHA Policy The PHA will provide owners and managers with information about their rights and obligations under VAWA when they begin their participation in the program and at least annually thereafter. The VAWA information provided to owners will consist of the notice in Exhibit 16-5 and a copy of form HUD-5382, Certification of Domestic Violence, Dating Violence, Sexual Assault, and Stalking and Alternate Documentation. 16-IX.D. DOCUMENTATION [42 U.S.C. § 14043e-11(c)(3); 24 CFR 5.2007] 12.A.b Packet Pg. 1811 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-47 A PHA presented with a claim for initial or continued assistance based on status as a victim of domestic violence, dating violence, sexual assault, stalking, or criminal activity related to any of these forms of abuse may—but is not required to—request that the individual making the claim document the abuse. Any request for documentation must be in writing, and the individual must be allowed at least 14 business days after receipt of the request to submit the documentation. The PHA may extend this time period at its discretion. [24 CFR 5.2007(a)] The individual may satisfy the PHA’s request by providing any one of the following three forms of documentation [24 CFR 5.2007(b)]: (1) A completed and signed HUD-approved certification form (HUD-5382, Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking), which must include the name of the perpetrator only if the name of the perpetrator is safe to provide and is known to the victim. The form may be filled out and submitted on behalf of the victim. (2) A federal, state, tribal, territorial, or local police report, or court record, or an administrative record (3) Documentation signed by a person who has assisted the victim in addressing domestic violence, dating violence, sexual assault, or stalking, or the effects of such abuse. This person may be an employee, agent, or volunteer of a victim service provider; an attorney; a mental health professional; or a medical professional. The person signing the documentation must attest under penalty of perjury to the person’s belief that the incidents in question are bona fide incidents of abuse. The victim must also sign the documentation. The PHA may not require third-party documentation (forms 2 and 3) in addition to certification (form 1), except as specified below under “Conflicting Documentation,” nor may it require certification in addition to third-party documentation [VAWA final rule]. PHA Policy Any request for documentation of domestic violence, dating violence, sexual assault, or stalking will be in writing, will specify a deadline of 14 business days following receipt of the request, will describe the three forms of acceptable documentation, will provide explicit instructions on where and to whom the documentation must be submitted, and will state the consequences for failure to submit the documentation or request an extension in writing by the deadline. The PHA may, in its discretion, extend the deadline for 10 business days. In determining whether to extend the deadline, the PHA will consider factors that may contrib ute to the victim’s inability to provide documentation in a timely manner, including cognitive limitations, disabilities, limited English proficiency, absence from the unit, administrative delays, the danger of further violence, and the victim’s need to address health or safety issues. Any extension granted by the PHA will be in writing. Once the victim provides documentation, the PHA will acknowledge receipt of the documentation within 10 business days. Conflicting Documentation [24 CFR 5.2007(e)] 12.A.b Packet Pg. 1812 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-48 In cases where the PHA receives conflicting certification documents from two or more members of a household, each claiming to be a victim and naming one or more of the other petitioning household members as the perpetrator, the PHA may determine which is the true victim by requiring each to provide acceptable third-party documentation, as described above (forms 2 and 3). The PHA may also request third-party documentation when submitted documentation contains information that conflicts with existing information already available to the PHA. Individuals have 30 calendar days to return third-party verification to the PHA. If the PHA does not receive third-party documentation, and the PHA will deny or terminate assistance as a result, the PHA must hold separate hearing s for the tenants [Notice PIH 2017-08]. The PHA must honor any court orders issued to protect the victim or to address the distribution of property. PHA Policy If presented with conflicting certification documents from members of the same household, the PHA will attempt to determine which is the true victim by requiring each of them to provide third-party documentation in accordance with 24 CFR 5.2007(e) and by following any HUD guidance on how such determinations should be made. When requesting third-party documents, the PHA will provide contact information for local domestic violence and legal aid offices. In such cases, applicants or tenants will be given 30 calendar days from the date of the request to provide such documentation. If the PHA does not receive third-party documentation within the required timeframe (and any extensions) the PHA will deny VAWA protections and will notify the applicant or tenant in writing of the denial. If, as a result, the applicant or tenant is denied or terminated from the program, the PHA will hold separate hearings for the applicants or tenants. Discretion to Require No Formal Documentation [24 CFR 5.2007(d)] The PHA has the discretion to provide benefits to an individual based solely on the individual’s statement or other corroborating evidence—i.e., without requiring formal documentation of abuse in accordance with 24 CFR 5.2007(b). HUD recommends documentation in a confidential manner when a verbal statement or other evidence is accepted. PHA Policy If the PHA accepts an individual’s statement or other corroborating evidence (as determined by the victim) of domestic violence, dating violence, sexual assault, or stalking, the PHA will document acceptance of the statement or evidence in the individual’s file. Failure to Provide Documentation [24 CFR 5.2007(c)] In order to deny relief for protection under VAWA, a PHA must provide the individual requesting relief with a written request for documentation of abuse. If the individual fails to provide the documentation within 14 business days from the date of receipt, or such longer time as the PHA may allow, the PHA may deny relief for protection under VAWA. 12.A.b Packet Pg. 1813 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-49 16-IX.E. CONFIDENTIALITY [24 CFR 5.2007(b)(4)] All information provided to the PHA regarding domestic violence, dating violence, sexual assault or stalking, including the fact that an individual is a victim of such violence or stalking, must be retained in confidence. This means that the PHA (1) may not enter the information into any shared database, (2) may not allow employees or others to access the information unless they are explicitly authorized to do so and have a need to know the information for purposes of their work, and (3) may not provide the information to any other entity or individual, except to the extent th at the disclosure is (a) requested or consented to by the individu al in writing, (b) required for use in an eviction proceeding, or (c) otherwise required by applicable law. PHA Policy If disclosure is required for use in an eviction proceeding or is otherwise required by applicable law, the PHA will inform the victim before disclosure occurs so that safety risks can be identified and addressed. 12.A.b Packet Pg. 1814 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-50 EXHIBIT 16-1: NOTICE OF OCCUPANCY RIGHTS UNDER THE VIOLENCE AGAINST WOMEN ACT, FORM HUD- 5380 Santa Monica Housing Authority Notice of Occupancy Rights under the Violence Against Women Act1 To all Tenants and Applicants The Violence Against Women Act (VAWA) provides protections for victims of domestic violence, dating violence, sexual assault, or stalking. VAWA protections are not only available to women, but are available equally to all individuals regardless of sex, gender identity, or sexual orientation.2 The U.S. Department of Housing and Urban Development (HUD) is the Federal agency that oversees that Housing Choice Voucher (HCV) Program is in compliance with VAWA. This notice explains your rights under VAWA. A HUD-approved certification form is attached to this notice. You can fill out this form to show that you are or have been a victim of domestic violence, dating violence, sexual assault, or stalking, and that you wish to use your rights under VAWA.” Protections for Applicants If you otherwise qualify for assistance under HCV, you cannot be denied admission or denied assistance because you are or have been a victim of domestic violence, dating violence, sexual assault, or stalking. Protections for Tenants If you are receiving assistance under HCV, you may not be denied assistance, terminated from participation, or be evicted from your rental housing because you are or have been a victim of domestic violence, dating violence, sexual assault, or stalking. Also, if you or an affiliated individual of yours is or has been the victim of domestic violence, dating violence, sexual assault, or stalking by a member of your household or any guest, you may not be denied rental assistance or occupancy rights under HCV solely on the basis of criminal activity directly relating to that domestic violence, dating violence, sexual a s sau l t , or stalking. Affiliated individual means your spouse, parent, brother, sister, or child, or a person to whom you stand in the place of a parent or guardian (for example, the affiliated individual is in your care, custody, or control); or any individual, tenant, or lawful occupant living in your household. Removing the Abuser or Perpetrator from the Household Santa Monica Housing Authority (PHA) may divide (bifurcate) your lease in order to evict the individual or terminate the assistance of the individual who has engaged in criminal activity (the abuser or perpetrator) directly relating to domestic violence, dating violence, sexual assault, or stalking. 1 Despite the name of this law, VAWA protection is available regardless of sex, gender identity, or sexual orientation. 12.A.b Packet Pg. 1815 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-51 2 Housing providers cannot discriminate on the basis of any protected characteristic, including race, color, national origin, religion, sex, familial status, disability, or age. HUD-assisted and HUD- insured housing must be made available to all otherwise eligible individuals regardless of actual or perceived sexual orientation, gender identity, or marital status. If the PHA chooses to remove the abuser or perpetrator, the PHA may not take away the rights of eligible tenants to the unit or otherwise punish the remaining tenants. If the evicted abuser or perpetrator was the sole tenant to have established eligibility for assistance under the program, the PHA must allow the tenant who is or has been a victim and other household members to remain in the unit for a period of time, in order to establish eligibility under the program or under another HUD housing program covered by VAWA, or, find alternative housing. In removing the abuser or perpetrator from the household, the PHA must follow Federal, State, and local eviction procedures. In order to divide a lease, the PHA may, but is not required to, ask you for documentation or certification of the incidences of domestic violence, dating violence, sexual assault, or stalking. Moving to Another Unit Upon request, the PHA may permit tenants to move to another unit, subject to the availability of other units, and still keep your assistance. In order to approve a request, the PHA may ask you to provide documentation that you are requesting to move because of an incidence of domestic violence, dating violence, sexual assault, or stalking. If the request is a request for emergency transfer, the PHA may ask you to submit a written request or fill out a form where you certify that you meet the criteria for an emergency transfer under VAWA. The criteria are: (1) You are a victim of domestic violence, dating violence, sexual assault, or stalking. If the PHA does not already have documentation that you are a victim of domestic violence, dating violence, sexual assault, or stalking, the P HA may ask you for such documentation, as described in the documentation section below. (2) You expressly request the emergency transfer. The PHA may choose to require that you submit a form or may accept another written or oral request. (3) You reasonably believe you are threatened with imminent harm from further violence if you remain in your current unit. This means you have a reason to fear that if you do not receive a transfer you would suffer violence in the very near future. OR You are a victim of sexual assault and the assault occurred on the premises during the 90-calendar-day period before you request a transfer. If you are a victim of sexual assault, then in addition to qualifying for an emergency transfer because you reasonably believe you are threatened with imminent harm from further violence if you remain in your unit, you may qualify for an emergency transfer if the sexual assault occurred on the premises of the property from which you are seeking your transfer, and that assault happened within the 90- calendar-day period before you expressly request the transfer. 12.A.b Packet Pg. 1816 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-52 The PHA will keep confidential requests for emergency transfers by victims of domestic violence, dating violence, sexual assault, or stalking, and the location of any move by such victims and their families. The PHA’s emergency transfer plan provides further information on emergency transfers, and the PHA must make a copy of its emergency transfer plan available to you if you ask to see it. Documenting You Are or Have Been a Victim of Domestic Violence, Dating Violence, Sexual Assault or Stalking The PHA can, but is not required to, ask you to provide documentation to “certify” that you are or have been a victim of domestic violence, dating violence, sexual assault, or stalking. Such request from the PHA must be in writing, and the PHA must give you at least 14 business days (Saturdays, Sundays, and Federal holidays do not count) from the day you receive the request t o provide the documentation. The PHA may, but does not have to, extend the deadline for the submission of documentation upon your request. You can provide one of the following to the PHA as documentation. It is your choice which of the following to submit if SMHA asks you to provide documentation that you are or have been a victim of domestic violence, dating violence, sexual assault, or stalking. • A complete HUD-approved certification form given to you by the PHA with this notice, that documents an incident of domestic violence, dating violence, sexual assault, or stalking. The form will ask for your name, the date, time, and location of the incident of domestic violence, dating violence, sexual assault, or stalking, and a description of the incident. The certification form provides for including the name of the abuser or perpetrator if the name of the abuser or perpetrator is known and is safe to provide. • A record of a Federal, State, tribal, territorial, or local law enforcement agency, court, or administrative agency that documents the incident of domestic violence, dating violence, sexual assault, or stalking. Examples of such records include police reports, protective orders, and restraining orders, among others. • A statement, which you must sign, along with the signature of an employee, agent, or volunteer of a victim service provider, an attorney, a medical professional or a mental health professional (collectively, “professional”) from whom you sought assistance in addressing domestic violence, dating violence, sexual assault, or stalking, or the effects of abuse, and with the professional selected by you attesting under penalty of perjury that they believe that the incident or incidents of domestic violence, dating violence, sexual assault, or stalking are grounds for protection. • Any other statement or evidence that the PHA has agreed to accept. If you fail or refuse to provide one of these documents within the 14 business days, the PHA does not have to provide you with the protections contained in this notice. If the PHA receives conflicting evidence that an incident of domestic violence, dating violence, sexual assault, or stalking has been committed (such as certification forms from two or more members of a household each claiming to be a victim and naming one or more of the other petitioning household members as the abuser or perpetrator), the PHA has the right to request that you provide third-party documentation within thirty 30 calendar days in order to resolve the conflict. If you fail or refuse to provide third-party documentation where there is conflicting 12.A.b Packet Pg. 1817 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-53 evidence, the PHA does not have to provide you with the protections contained in this notice. Confidentiality The PHA must keep confidential any information you provide related to the exercise of your rights under VAWA, including the fact that you are exercising your rights under VAWA. The PHA must not allow any individual administering assistance or other services on behalf of the PHA (for example, employees and contractors) to have access to confidential information unless for reasons that specifically call for these individuals to have access to this information under applicable Federal, State, or local law. The PHA must not enter your information into any shared database or disclose your information to any other entity or individual. The PHA, however, may disclose the information provided if: • You give written permission to the PHA to release the information on a time-limited basis. • The PHA needs to use the information in an eviction or termination proceeding, such as to evict your abuser or perpetrator or terminate your abuser or perpetrator from assistance under this program. • A law requires the PHA or your landlord to release the information. VAWA does not limit the PHA’s duty to honor court orders about access to or control of the property. This includes orders issued to protect a victim and orders dividing property among household members in cases where a family breaks up. Reasons a Tenant Eligible for Occupancy Rights under VAWA May Be Evicted or Assistance May Be Terminated You can be evicted and your assistance can be terminated for serious or repeated lease violations that are not related to domestic violence, dating violence, sexual assault, or stalking committed against you. However, the PHA cannot hold tenants who have been victims of domestic violence, dating violence, sexual assault, or stalking to a more demanding set of rules than it applies to tenants who have not been victims of domestic violence, dating violence, sexual assault, or stalking. The protections described in this notice might not apply, and you could be evicted and your assistance terminated, if the PHA can demonstrate that not evicting you or terminating your assistance would present a real physical danger that: 1) Would occur within an immediate time frame, and 2) Could result in death or serious bodily harm to other tenants or those who work on the property. If the PHA can demonstrate the above, the PHA should only terminate your assistance or evict you if there are no other actions that could be taken to reduce or eliminate the threat. Other Laws VAWA does not replace any Federal, State, or local law that provides greater protection for victims of domestic violence, dating violence, sexual assault, or stalking. You may be entitled to additional housing protections for victims of domestic violence, dating violence, sexual assault, or stalking under other Federal laws, as well as under State and local law. 12.A.b Packet Pg. 1818 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-54 Non-Compliance with The Requirements of This Notice You may report a PHA’s violations of these rights and seek additional assistance, if needed, by contacting or filing a complaint with HUD Los Angeles Field Office, 300 North Los Angeles Street, Suite 4054, Los Angeles, CA 90012, (213) 894-8000. For Additional Information You may view a copy of HUD’s final VAWA rule at https://www.gpo.gov/fdsys/pkg/FR- 2016- 11-16/pdf/2016-25888.pdf. Additionally, the PHA must make a copy of HUD’s VAWA regulations available to you if you ask to see them. For questions regarding VAWA, please contact Santa Monica Housing Authority, 1901 Main Street, Suite A, Santa Monica, CA 90405, (310) 458-8743. For help regarding an abusive relationship, you may call the National Domestic Violence Hotline at 1-800-799-7233 or, for persons with hearing impairments, 1-800-787-3224 (TTY). You may also contact The People Concern - Sojourn (310) 264-6644 or Westside Domestic Violence Network (310) 264-6646. For tenants who are or have been victims of stalking seeking help may visit the National Center for Victims of Crime’s Stalking Resource Center at https://www.victimsofcrime.org/our- programs/stalking-resource-center. For help regarding sexual assault, you may contact Rape Treatment Center, 1250 16th Street, Santa Monica 90404 (310) 319-4000, The People Concern - Sojourn (310) 264-6644 or Westside Domestic Violence Network (310) 264-6646 Victims of stalking seeking help may contact any of the above-mentioned organizations. Attachment: Certification form HUD-5382 12.A.b Packet Pg. 1819 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-55 EXHIBIT 16-2: CERTIFICATION OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING AND ALTERNATE DOCUMENTATION, FORM HUD-5382 CERTIFICATION OF U.S. Department of Housing OMB Approval No. 2577-0286 DOMESTIC VIOLENCE, and Urban Development Exp. 06/30/2017 DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING, AND ALTERNATE DOCUMENTATION Purpose of Form: The Violence Against Women Act (“VAWA”) protects applicants, tenants, and program participants in certain HUD programs from being evicted, denied housing assistance, or terminated from housing assistance based on acts of domestic violence, dating violence, sexual assault, or stalking against them. Despite the name of this law, VAWA protection is available to victims of domestic violence, dating violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation. Use of This Optional Form: If you are seeking VAWA protections from your housing provider, your housing provider may give you a written request that asks you to submit documentation about the incident or incidents of domestic violence, dating violence, sexual assault, or stalking. In response to this request, you or someone on your behalf may complete this optional form and submit it to your housing provider, or you may submit one of the following types of third-party documentation: (1) A document signed by you and an employee, agent, or volunteer of a victim service provider, an attorney, or medical professional, or a mental health professional (collectively, “professional”) from whom you have sought assistance relating to domestic violence, dating violence, sexual assault, or stalking, or the effects of abuse. The document must specify, under penalty of perjury, that the professional believes the incident or incidents of domestic violence, dating violence, sexual assault, or stalking occurred and meet the definition of “domestic violence,” “dating violence,” “sexual assault,” or “stalking” in HUD’s regulations at 24 CFR 5.2003. (2) A record of a Federal, State, tribal, territorial or local law enforcement agency, court, or administrative agency; or (3) At the discretion of the housing provider, a statement or other evidence provided by the applicant or tenant. Submission of Documentation: The time period to submit documentation is 14 business days from the date that you receive a written request from your housing provider asking that you provide documentation of the occurrence of domestic violence, dating violence, sexual assault, or stalking. Your housing provider may, but is not required to, extend the time period to submit the documentation, if you request an extension of the time period. If the requested information is not received within 14 business days of when you received the request for the documentation, or any extension of the date provided by your housing provider, your housing provider does not need to grant you any of the VAWA protections. Distribution or issuance of this form does not serve as a written request for certification. Confidentiality: All information provided to your housing provider concerning the incident(s) of domestic violence, dating violence, sexual assault, or stalking shall be kept confidential and such details shall not be entered into any shared database. Employees of your housing provider are not to have access to these details unless to grant or deny VAWA protections to you, and such employees may not disclose this information to any other entity or individual, except to the extent that disclosure is: (i) consented to by you in writing in a time-limited release; (ii) required for use in an eviction proceeding or hearing regarding 12.A.b Packet Pg. 1820 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-56 termination of assistance; or (iii) otherwise required by applicable law.TO BE COMPLETED BY OR ON BEHALF OF THE VICTIM OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING 1. Date the written request is received by victim: _________________________________________ 2. Name of victim: ___________________________________________________________________ 3. Your name (if different from victim’s):________________________________________________ 4. Name(s) of other family member(s) listed on the lease:___________________________________ ___________________________________________________________________________________ 5. Residence of victim: ________________________________________________________________ 6. Name of the accused perpetrator (if known and can be safely disclosed):____________________ __________________________________________________________________________________ 7. Relationship of the accused perpetrator to the victim:___________________________________ 8. Date(s) and times(s) of incident(s) (if known):___________________________________________ _________________________________________________________________ 10. Location of incident(s):_____________________________________________________________ This is to certify that the information provided on this form is true and correct to the best of my knowledge and recollection, and that the individual named above in Item 2 is or has been a victim of domestic violence, dating violence, sexual assault, or stalking. I acknowledge that submission of false information could jeopardize program eligibility and could be the basis for denial of admission, termination of assistance, or eviction. Signature __________________________________Signed on (Date) ___________________________ Public Reporting Burden: The public reporting burden for this collection of information is estimated to average 1 hour per response. This includes the time for collecting, reviewing, and reporting the data. The information provided is to be used by the housing provider to request certification that the applicant or tenant is a victim of domestic violence, dating violence, sexual assault, or stalking. The information is subject to the confidentiality requirements of VAWA. This agency may not collect this information, and you are not In your own words, briefly describe the incident(s): _____________________________________________________________________________ _________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ ____________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ ___________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ __________________ 12.A.b Packet Pg. 1821 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-57 required to complete this form, unless it displays a currently valid Office of Management and Budget control number. 12.A.b Packet Pg. 1822 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-58 EXHIBIT 16-3: EMERGENCY TRANSFER PLAN FOR VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING (HCV VERSION) Attachment: Certification form HUD-5382 Santa Monica Housing Authority Emergency Transfer Plan for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking Housing Choice Voucher Program Emergency Transfers The Santa Monica Housing Authority (PHA) is concerned about the safety of its tenants, and such concern extends to tenants who are victims of domestic violence, dating violence, sexual assault, or stalking. In accordance with the Violence Against Women Act (VAWA),4 the PHA allows tenants who are victims of domestic violence, dating violence, sexual assault, or stalking to request an emergency transfer from the tenant’s current unit to another unit. The ability to request a transfer is available regardless of sex, gender identity, or sexual orientation.5 The ability of the PHA to honor such request for tenants currently receiving assistance, however, may depend upon a preliminary determination that the tenant is or has been a victim of domestic violence, dating violence, sexual assault, or stalking, and on whether the PHA has another dwelling unit that is available and is safe to offer the tenant for temporary or more permanent occupancy. 4Despite the name of this law, VAWA protection is available to all victims of domestic violence, dating violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation. 5Housing providers cannot discriminate on the basis of any protected characteristic, including race, color, national origin, religion, sex, familial status, disability, or age. HUD-assisted and HUD-insured housing must be made available to all otherwise eligible individuals regardless of actual or perceived sexual orientation, gender identity, or marital status. 12.A.b Packet Pg. 1823 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-59 This plan identifies tenants who are eligible for an emergency transfer, the documentation needed to request an emergency transfer, confidentiality protections, how an emergency transfer may occur, and guidance to tenants on safety and security. This plan is based on a model emergency transfer plan published by the U.S. Department of Housing and Urban Development (HUD), the federal agency that oversees that the public housing and housing choice voucher (HCV) programs are in compliance with VAWA. Eligibility for Emergency Transfers A tenant who is a victim of domestic violence, dating violence, sexual assault, or stalking, as provided in HUD’s regulations at 24 CFR part 5, subpart L, is eligible for an emergency transfer if the tenant reasonably believes that there is a threat of imminent harm from further violence if the tenant remains within the same unit. If the tenant is a victim of sexual assault, the tenant may also be eligible to transfer if the sexual assault occurred on the premises within the 90-calendar- day period preceding a request for an emergency transfer. A tenant requesting an emergency transfer must expressly request the transfer in accordance with the procedures described in this plan. Tenants who are not in good standing may still request an emergency transfer if they meet the eligibility requirements in this section. Emergency Transfer Request Documentation To request an emergency transfer, the tenant shall notify the PHA’s management office and submit a written request for a transfer to any PHA office. The PHA will provide reasonable accommodations to this policy for individuals with disabilities. The tenant’s written request for an emergency transfer should include either: 1. A statement expressing that the tenant reasonably believes that there is a threat of imminent harm from further violence if the tenant were to remain in the same dwelling unit assisted under the PHA’s program; OR 2. A statement that the tenant was a sexual assault victim and that the sexual assault occurred on the premises during the 90-calendar-day period preceding the tenant’s request for an emergency transfer. 12.A.b Packet Pg. 1824 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-60 Confidentiality The PHA will keep confidential any information that the tenant submits in requesting an emergency transfer, and information about the emergency transfer, unless the tenant gives the PHA written permission to release the information on a time-limited basis, or disclosure of the information is required by law or required for use in an eviction proceeding or hearing regarding termination of assistance from the covered program. This includes keeping confidential the new location of the dwelling unit of the tenant, if one is provided, from the person or persons that committed an act of domestic violence, dating violence, sexual assault, or stalking against the tenant. See the Notice of Occupancy Rights under the Violence against Women Act for All Tenants for more information about the PHA’s responsibility to maintain the confidentiality of information related to incidents of domestic violence, dating violence, sexual assault, or stalking. Emergency Transfer Timing and Availability The PHA cannot guarantee that a transfer request will be approved or how long it will take to process a transfer request. The PHA will, however, act as quickly as possible to move a tenant who is a victim of domestic violence, dating violence, sexual assault, or stalking to another unit, subject to availability and safety of a unit. If a tenant reasonably believes a proposed transfer would not be safe, the tenant may request a transfer to a different unit. If a unit is available, the transferred tenant must agree to abide by the terms and conditions that govern occupancy in the unit to which the tenant has been transferred. The PHA may be unable to transfer a tenant to a particular unit if the tenant has not or cannot establish eligibility for that unit. If the PHA has no safe and available units for which a tenant who needs an emergency transfer is eligible, the PHA will assist the tenant in identifying other housing providers who may have safe and available units to which the tenant could move. At the tenant’s request, the PHA will also assist tenants in contacting the local organizations offering assistance to victims of domestic violence, dating violence, sexual assault, or stalking that are attached to this plan. 12.A.b Packet Pg. 1825 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-61 Emergency Transfers: Housing Choice Voucher (HCV) Program Tenant-based assistance: If you are a participant in the tenant-based HCV program and request an emergency transfer as described in this plan, the PHA will assist you to move to a safe unit quickly using your existing voucher assistance. The PHA will make exceptions to program regulations restricting moves as required. At your request, the PHA will refer you to organizations that may be able to further assist you. Project-based assistance: If you are assisted under the project-based voucher (PBV) program, you may request an emergency transfer under the following programs for which you are not required to apply: • Tenant-based voucher, if available • Project-based assistance in the same project (if a vacant unit is available and you determine that the vacant unit is safe) Emergency transfers under VAWA will take priority over waiting list admissions for these types of assistance. You may also request an emergency transfer under the following programs for which you are required to apply: • PBV assistance in another development not owned by the PHA • HOME • Continuum of Care Emergency transfers will not take priority over waiting list admissions for these programs. At your request, the PHA will refer you to organizations that may be able to further assist you. 12.A.b Packet Pg. 1826 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 16-62 Safety and Security of Tenants Pending processing of the transfer and the actual transfer, if it is approved and occurs, the tenant is urged to take all reasonable precautions to be safe. Tenants who are or have been victims of domestic violence are encouraged to contact the National Domestic Violence Hotline at 1-800-799-7233, or a local domestic violence shelter, for assistance in creating a safety plan. For persons with hearing impairments, that hotline can be accessed by calling 1- 800-787-3224 (TTY). Tenants who have been victims of sexual assault may call the Rape, Abuse, and Incest National Network’s National Sexual Assault Hotline at 1-800-656-HOPE, or visit the online hotline at: https://ohl.rainn.org/online/. Tenants who are or have been victims of stalking seeking help may visit the National Center for Victims of Crime’s Stalking Resource Center at: https://www.victimsofcrime.org/our- programs/stalking- resource-center. Attachment: Local organizations offering assistance to victims of domestic violence, dating violence, sexual assault, or stalking. 12.A.b Packet Pg. 1827 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2018 Nan McKay & Associates, Inc. Admin Plan 2018 Unlimited copies may be made for internal use. Page 16-63 Attachment: Local organizations offering assistance to victims of domestic violence, dating violence, sexual assault, or stalking. For help regarding an abusive relationship, you may call the National Domestic Violence Hotline at 1-800-799-7233 or, for persons with hearing impairments, 1-800-787-3224 (TTY). You may also contact: The People Concern - Sojourn (310) 264-6644 Westside Domestic Violence Network (310) 264-6646. For tenants who are or have been victims of stalking. You may visit the National Center for Victims of Crime’s Stalking Resource Center at https://www.victimsofcrime.org/our-programs/stalking-resource-center. For help regarding sexual assault, you may contact: Rape Treatment Center, 1250 16th Street, Santa Monica 90404 (310) 319-4000 The People Concern - Sojourn (310) 264-6644 Westside Domestic Violence Network (310) 264-6646 Victims of stalking seeking help may contact any of the above-mentioned organizations. 12.A.b Packet Pg. 1828 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2018 Nan McKay & Associates, Inc. Admin Plan 2018 Unlimited copies may be made for internal use. Page 16-64 EXHIBIT 16-4: EMERGENCY TRANSFER REQUEST FOR CERTAIN VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING, FORM HUD-5383 EMERGENCY TRANSFER U.S. Department of Housing OMB Approval No. 2577-0286 REQUEST FOR CERTAIN and Urban Development Exp. 06/30/2017 VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING Purpose of Form: If you are a victim of domestic violence, dating violence, sexual assault, or stalking, and you are seeking an emergency transfer, you may use this form to request an emergency transfer and certify that you meet the requirements of eligibility for an emergency transfer under the Violence Against Women Act (VAWA). Although the statutory name references women, VAWA rights and protections apply to all victims of domestic violence, dating violence, sexual assault or stalking. Using this form does not necessarily mean that you will receive an emergency transfer. See your housing provider’s emergency transfer plan for more information about the availability of emergency transfers. The requirements you must meet are: (1) You are a victim of domestic violence, dating violence, sexual assault, or stalking. If your housing provider does not already have documentation that you are a victim of domestic violence, dating violence, sexual assault, or stalking, your housing provider may ask you for such documentation. In response, you may submit Form HUD-5382, or any one of the other types of documentation listed on that Form. (2) You expressly request the emergency transfer. Submission of this form confirms that you have expressly requested a transfer. Your housing provider may choose to require that you submit this form or may accept another written or oral request. Please see your housing provider’s emergency transfer plan for more details. (3) You reasonably believe you are threatened with imminent harm from further violence if you remain in your current unit. This means you have a reason to fear that if you do not receive a transfer you would suffer violence in the very near future. OR You are a victim of sexual assault and the assault occurred on the premises during the 90-calendar-day period before you request a transfer. If you are a victim of sexual assault, then in addition to qualifying for an emergency transfer because you reasonably believe you are threatened with imminent harm from further violence if you remain in your unit, you may qualify for an emergency transfer if the sexual assault occurred on the premises of the property from which you are seeking your transfer, and that assault happened within the 90-calendar-day period before you submit this form or otherwise expressly request the transfer. Submission of Documentation: If you have third-party documentation that demonstrates why you are eligible for an emergency transfer, you should submit that documentation to your housing provider if it is safe for you to do so. Examples of third party documentation include, but are not limited to: a letter or other documentation from a victim service provider, social worker, legal assistance provider, pastoral counselor, mental health provider, or other professional from whom you have sought assistance; a current restraining order; a recent court order or other court records; a law enforcement report or records; communication records from the perpetrator of the violence or family members or friends of the perpetrator of the violence, including emails, voicemails, text messages, and social media posts. 12.A.b Packet Pg. 1829 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2018 Nan McKay & Associates, Inc. Admin Plan 2018 Unlimited copies may be made for internal use. Page 16-65 Confidentiality: All information provided to your housing provider concerning the incident(s) of domestic violence, dating violence, sexual assault, or stalking, and concerning your request for an emergency transfer shall be kept confidential. Such details shall not be entered into any shared database. Employees of your housing provider are not to have access to these details unless to grant or deny VAWA protections or an emergency transfer to you. Such employees may not disclose this information to any other entity or individual, except to the extent that disclosure is: (i) consented to by you in writing in a time-limited release; (ii) required for use in an eviction proceeding or hearing regarding termination of assistance; or (iii) otherwise required by applicable law. TO BE COMPLETED BY OR ON BEHALF OF THE PERSON REQUESTING A TRANSFER 1. Name of victim requesting an emergency transfer: ______________________________________ 2. Your name (if different from victim’s)_________________________________________________ 3. Name(s) of other family member(s) listed on the lease:____________________________________ ___________________________________________________________________________________ 4. Name(s) of other family member(s) who would transfer with the victim:____________________ ____________________________________________________________________________________ 5. Address of location from which the victim seeks to transfer: _______________________________________ 6. Address or phone number for contacting the victim:____________________________________ 7. Name of the accused perpetrator (if known and can be safely disclosed):___________________ 8. Relationship of the accused perpetrator to the victim:___________________________________ 9. Date(s), Time(s) and location(s) of incident(s):___________________________________________ _____________________________________________________________________________________ 10. Is the person requesting the transfer a victim of a sexual assault that occurred in the past 90 days on the premises of the property from which the victim is seeking a transfer? If yes, skip question 11. If no, fill out question 11. ______________ 11. Describe why the victim believes they are threatened with imminent harm from further violence if they remain in their current unit. _____________________________________________________________________________________ 12. If voluntarily provided, list any third-party documentation you are providing along with this notice: ___________________________________________________________________ This is to certify that the information provided on this form is true and correct to the best of my knowledge, and that the individual named above in Item 1 meets the requirement laid out on this form for an emergency transfer. I acknowledge that submission of false information could jeopardize program eligibility and could be the basis for denial of admission, termination of assistance, or eviction. Signature __________________________________Signed on (Date) ___________________________ 12.A.b Packet Pg. 1830 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2018 Nan McKay & Associates, Inc. Admin Plan 2018 Unlimited copies may be made for internal use. Page 16-66 MODEL OWNER NOTIFICATION OF RIGHTS AND OBLIGATIONS Santa Monica Housing Authority NOTIFICATION OF YOUR RIGHTS AND OBLIGATIONS UNDER THE VIOLENCE AGAINST WOMEN ACT (VAWA) VAWA provides protections for Section 8 Housing Choice Voucher (HCV) and PBV applicants, tenants, and participants from being denied assistance on the basis or as a direct result of being a victim of domestic violence, dating violence, sexual assault and stalking. Purpose Many of VAWA’s protections to victims of domestic violence, dating violence, sexual assault and stalking involve action by the public housing agency (PHA), but some situations involve action by owners of assisted housing. The purpose of this notice (herein called “Notice”) is to explain your rights and obligations under VAWA, as an owner of housing assisted through the PHA HCV program. Each component of this Notice also provides citations to HUD’s applicable regulations. Denial of Tenancy Protections for applicants: Owners cannot deny tenancy based on the applicant having been or currently being a victim of domestic violence, dating violence, sexual assault, or stalking. However, the applicant must be otherwise eligible for tenancy. (See 24 Code of Federal Regulations (CFR) 982.452(b)(1).) Eviction Protections for HCV participants: Incidents or threats of domestic violence, dating violence, sexual assault, or stalking will not be considered a serious or repeated lease violation by the victim, or good cause to terminate the tenancy of the victim (24 CFR 5.2005(c)). Protection also applies to criminal activity related directly to domestic violence, dating violence, sexual assault, or stalking, conducted by a member of a tenant’s household or any guest or other person under the tenant’s control, if the tenant or an affiliated individual of the tenant is the victim or threatened victim of such domestic violence, dating violence, sexual assault, or stalking (24 CFR 5.2005(b)(2)). Limitations of VAWA protections: a. Nothing in the VAWA Final Rule limits the authority of an owner, when notified of a court order, to comply with a court order with respect to (24 CFR 5.2005(d)(1)): 1) The rights of access or control of property, including civil protection orders issued to protect a victim of domestic violence, dating violence, sexual assault, or stalking; or 2) The distribution or possession of property among members of a household in a case. b. Nothing in the VAWA Final Rule limits an owner from evicting a victim of domestic violence, dating violence, sexual assault, or stalking for a lease violation that is not premised on an act of domestic violence, dating violence, sexual assault, or stalking, as long as the owner doe s not subject the victim to more demanding standards than other tenants when deciding whether to evict. (See 24 CFR 5.2005(d)(2).) c. Nothing in the VAWA Final Rule limits an owner from evicting a tenant (including the victim of domestic violence, dating violence, sexual assault, or stalking) if the owner can demonstrate an actual and imminent threat to other tenants or those employed at or providing services to the HCV property would be present if the tenant or lawful occupant is not evicted. (See 24 CFR 12.A.b Packet Pg. 1831 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2018 Nan McKay & Associates, Inc. Admin Plan 2018 Unlimited copies may be made for internal use. Page 16-67 5.2005(d)(3).) i. In this context, words, gestures, actions, or other indicators will be considered an “actual and imminent threat” if they meet the following standards: An actual and imminent threat consists of a physical danger that is real, would occur within an immediate time frame, and could result in death or serious bodily harm. In determining whether an individual would pose an actual and imminent threat, the factors to be considered include: the duration of the risk, the nature and severity o f the potential harm, the likelihood that the potential harm will occur, and the length of time before the potential harm would occur. (See 24 CFR 5.2003.) ii. Any eviction due to “actual and imminent threat” should be utilized by an owner only when there are no other actions that could be taken to reduce or eliminate the threat, including, but not limited to, transferring the victim to a different unit, barring the perpetrator from the property, contacting law enforcement to increase police presence or develop other plans to keep the property safe, or seeking other legal remedies to prevent the perpetrator from acting on a threat. Restrictions predicated on public safety cannot be based on stereotypes, but must be tailored to particularized concerns about individual residents. (See 24 CFR 5.2005(d)(4).) Documentation of Domestic Violence, Dating Violence, Sexual Assault, or Stalking If an applicant or tenant requests VAWA protection based on status as a victim of domestic violence, dating violence, sexual assault, or stalking, the owner has the option to request that the victim document or provide written evidence to demonstrate that the violence occurred. However, nothing in HUD’s regulation requires a covered housing provider to request this documentat ion. (See 24 CFR 5.2007(b)(3).) If the owner chooses to request this documentation, the owner must make such request in writing. The individual may satisfy this request by providing any one document type listed under 24 CFR 5.2007(b)(1): a. Form HUD-55383 (Self-Certification Form); or b. A document: 1) Signed by an employee, agent, or volunteer of a victim service provider, an attorney, or medical professional or a mental health professional (collectively, “professional”) from whom the victim has sought assistance relating to domestic violence, dating violence, sexual assault, or stalking, or the effects of abuse: 2) Signed by the applicant or tenant; and 3) That specifies, under penalty of perjury, that the professional believes in the occurrence of the incident of domestic violence, dating violence, sexual assault, or stalking that is the ground for protection and remedies under 24 CFR part 5, subpart L, and that the incident meets the applicable definition of domestic violence, dating violence, sexual assault, or stalking under 24 CFR 5.2003; or c. A record of a Federal, State, tribal, territorial or local law enforcement agency, court, or administrative agency; or d. At the discretion of a covered housing provider, a statement or other evidence provided by the applicant or tenant. The owner must accept any of the above items (a – c). The owner has discretion to accept a statement or other evidence (d). The owner is prohibited from requiring third-party documentation of the domestic violence, dating violence, sexual assault, or stalking, unless the submitted documentation contains conflicting information. 12.A.b Packet Pg. 1832 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2018 Nan McKay & Associates, Inc. Admin Plan 2018 Unlimited copies may be made for internal use. Page 16-68 If the owner makes a written request for documentation, the owner may require submission of that documentation within 14 business days after the date that the individual received the written request for documentation. (24 CFR 5.2007(a)(2)). The owner may extend this time period at its discretion. During the 14-business day period and any granted extensions of that time, no adverse actions, such as evictions or terminations, can be taken against the individual requesting VAWA protection. Once a victim provides documentation of domestic violence, dating violence, sexual assault, or stalking, the owner is encouraged to acknowledge receipt of the documentation in a timely manner. If the applicant or tenant fails to provide documentation that meets the criteria in 24 CFR 5.2007 within 14 business days after receiving the written request for that documentation or within the designated extension period, nothing in VAWA Final Rule may be construed to limit the authority of the covered housing provider to: a. Deny admission by the applicant or tenant to the housing or program; b. Deny assistance under the covered housing program to the applicant or tenant; c. Terminate the participation of the tenant in the covered housing program; or d. Evict the tenant, or a lawful occupant that commits a violation of a lease. An individual’s failure to timely provide documentation of domestic violence, dating violence, sexual assault, or stalking does not result in a waiver of the individual’s right to challenge the denial of assistance or termination, nor does it preclude the individual’s ability to raise an incident of domestic violence, dating violence, sexual assault, or stalking at eviction or termination proceedings. Moves A victim of domestic violence, dating violence, sexual assault, or stalking may move in violation of their lease if the move is required to protect their safety. If a move results in the termination of the Housing Assistance Payment Contract, the lease is automatically terminated. Lease Bifurcation Owners may choose to bifurcate a lease, or remove a household member from a lease in order to evict, remove, terminate occupancy rights, or terminate assistance to such member who engages in criminal activity directly relating to domestic violence, dating violence, sexual assault, or stalking against an affiliated individual or other individual. (See 24 CFR 5.2009(a).) If an owner chooses to bifurcate the lease, the owner must comply with the reasonable time to establish eligibility under the covered housing program or find alternative housing following lease bifurcation provision in 24 CFR 5.2009(b). VAWA protections, including bifurcation, do not apply to guests or unreported members of a household or anyone else residing in a household who is not a tenant. Eviction, removal, termination of occupancy rights, or termination of assistance must be effected in accordance with the procedures prescribed by federal, state, or local law for termination of leases. To avoid unnecessary delay in the bifurcation process, HUD recommends that owners seek court-ordered eviction of the perpetrator pursuant to applicable laws. This process results in the underlying lease becoming null and void once the owner regains possession of the unit. The owner would then execute a new lease with the victim. 12.A.b Packet Pg. 1833 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2018 Nan McKay & Associates, Inc. Admin Plan 2018 Unlimited copies may be made for internal use. Page 16-69 Evictions Due to “Actual and Imminent Threat” or Violations Not Premised on Abuse The VAWA Final Rule generally prohibits eviction on the basis or as a direct result of the fact that the applicant or tenant is or has been a victim of domestic violence, dating violence, sexual assault, or stalking, if the applicant or tenant otherwise qualifies for assistance, participation or occupancy. (See 24 CFR 5.2005.) However, the VAWA Final Rule does not prohibit an owner from evicting a tenant for any violation not premised on an act of domestic violence, dating violence, sexual assault, or stalking that is in question against the tenant or an affiliated individual of the tenant. Nor does the VAWA Final Rule prohibit an owner from evicting a tenant if the owner can demonstrate an actual and imminent threat to other tenants or those employed at or providing services to property of the owner would be present if that tenant or lawful occupant is not evicted or terminated from assistance. (See 5.2005(d)(2) and (3).) In order to demonstrate an actual and imminent threat to other tenants or employees at the property, the covered housing provider must have objective evidence of words, gestures, actions, or other indicators that meet the standards in the following definition: Actual and imminent threat refers to a physical danger that is real, would occur within an immediate time frame, and could result in death or serious bodily harm. In determining whether an individual would pose an actual and imminent threat, the factors to be considered include: • The duration of the risk; • The nature and severity of the potential harm; • The likelihood that the potential harm will occur; and • The length of time before the potential harm would occur. (See 24 CFR 5.2003 and 5.2005(d)(2).) Confidentiality Any information submitted to a covered housing provider under 24 CFR 5.2007, including the fact that an individual is a victim of domestic violence, dating violence, sexual assault, or stalking, must be maintained in strict confidence by the covered housing provider. (See 24 CFR 5.2007(c).) Employees of the owner (or those within their employ, e.g., contractors) must not have access to the information unless explicitly authorized by the owner for reasons that specifically call for these individuals to have access to this information under applicable Federal, State, or local law (e.g., the information is needed by an employee to provide the VAWA protections to the victim). The owner must not enter this information into any shared database, or disclose this information to any other entity or individual, except to the extent that disclosure is: a. Requested or consented to in writing by the individual (victim) in a time-limited release; b. Required for use in an eviction proceeding or hearing regarding termination of assistance from the covered program; or c. Otherwise required by applicable law. When communicating with the victim, owners must take precautions to ensure compliance with these confidentiality requirements. 12.A.b Packet Pg. 1834 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2018 Nan McKay & Associates, Inc. Admin Plan 2018 Unlimited copies may be made for internal use. Page 16-70 Service Providers The PHA has extensive relationships with local service providers. The PHA staff are available to provide referrals to shelters, counselors, and advocates. These resources are also provided in the PHA Annual and 5-Year Plan, Administrative Plan, VAWA Notice of Occupancy Rights, and Emergency Transfer Plan. A list of local service providers is attached to this Notice. Definitions Actual and imminent threat refers to a physical danger that is real, would occur within an immediate time frame, and could result in death or serious bodily harm. In determining whether an individual would pose an actual and imminent threat, the factors to be considered include: the duration of the risk, the nature and severity of the potential harm, the likelihood that the potential harm will occur, and the length of time before the potential harm would occur. Affiliated individual, with respect to an individual, means: (1) A spouse, parent, brother, sister, or child of that individual, or a person to whom that individual stands in the place of a parent or guardian (for example, the affiliated individual is a person in the care, custody, or control of that individual); or (2) Any individual, tenant, or lawful occupant living in the household of that individual. Bifurcate means to divide a lease as a matter of law, subject to the permissibility of s uch process under the requirements of the applicable HUD-covered program and State or local law, such that certain tenants or lawful occupants can be evicted or removed and the remaining tenants or lawful occupants can continue to reside in the unit under the same lease requirements or as may be revised depending upon the eligibility for continued occupancy of the remaining tenants and lawful occupants. Dating violence means violence committed by a person: (1) Who is or has been in a social relationship of a romantic or intimate nature with the victim; and (2) Where the existence of such a relationship shall be determined based on a consideration of the following factors: (i) The length of the relationship; (ii) The type of relationship; and (iii) The frequency of interaction between the persons involved in the relationship. Domestic violence includes felony or misdemeanor crimes of violence committed by a current or former spouse or intimate partner of the victim, by a person with whom the victim shares a child in common, by a person who is cohabitating with or has cohabitated with the victim as a spouse or intimate partner, by a person similarly situated to a spouse of the victim under the domestic or family violence laws of the jurisdiction receiving grant monies, or by any other person against an adult or youth victim who is protected from that person's acts under the domestic or family violence laws of the jurisdiction. The term “spouse or intimate partner of the victim” includes a person who is or has been in a social relationship of a romantic or intimate nature with the victim, as determined by the length of the relationship, the type of the relationship, and the frequency of interaction between the persons involved in the relationship. 12.A.b Packet Pg. 1835 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2018 Nan McKay & Associates, Inc. Admin Plan 2018 Unlimited copies may be made for internal use. Page 16-71 Sexual assault means any nonconsensual sexual act proscribed by Federal, tribal, or State law, including when the victim lacks capacity to consent. Stalking means engaging in a course of conduct directed at a specific person that would cause a reasonable person to: (1) Fear for the person’s individual safety or the safety of others; or (2) Suffer substantial emotional distress. VAWA means the Violence Against Women Act of 1994, as amended (42 U.S.C. 13925 and 42 U.S.C. 14043e et seq.). Attached: Legal services and the domestic violence resources for the Metro area Form HUD-5382 Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking PHA VAWA Notice of Occupancy Rights. 12.A.b Packet Pg. 1836 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-1 Chapter 17 PROJECT-BASED VOUCHERS INTRODUCTION This chapter describes HUD regulations and PHA policies related to the project-based voucher (PBV) program in nine parts: Part I: General Requirements. This part describes general provisions of the PBV program including maximum budget authority requirements, relocation requirements, and equal opportunity requirements. Part II: PBV Owner Proposals. This part includes policies related to the submission and selection of owner proposals for PBV assistance. It describes the factors the PHA will consider when selecting proposals, the type of housing that is eligible to receive PBV assistance, the cap on assistance at projects receiving PBV assistance, subsidy layering requirements, site selection standards, and environmental review requirements. Part III: Dwelling Units. This part describes requirements related to housing quality standards, the type and frequency of inspections, and housing accessibility for persons with disabilities. Part IV: Rehabilitated and Newly Constructed Units. This part describes requirements and policies related to the development and completion of rehabilitated and newly constructed housing units that will be receiving PBV assistance. Part V: Housing Assistance Payments Contract. This part discusses contract requirements and policies including the execution, term, and termination of the contract. In addition, it describes how the contract may be amended and identifies provisions that may be added to the contract at the PHA’s discretion. Part VI: Selection of PBV Program Participants. This part describes the requirements and policies governing how the PHA and the owner will select a household to receive PBV assistance. Part VII: Occupancy. This part discusses occupancy requirements related to the lease and describes under what conditions households are allowed or required to move. In addition, exceptions to the occupancy cap (which limits PBV assistance to 25 percent of the units in any project) are also discussed. Part VIII: Determining Rent to Owner. This part describes how the initial rent to owner is determined, and how rent will be redetermined throughout the life of the contract. Rent reasonableness requirements are also discussed. Part IX: Payments to Owner. This part describes the types of payments owners may receive under this program. 12.A.b Packet Pg. 1837 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-2 PART I: GENERAL REQUIREMENTS 17-I.A. OVERVIEW [24 CFR 983.5; FR Notice 1/18/17; Notice PIH 2017-21] The project-based voucher (PBV) program allows PHAs that already administer a Section 8 HCV tenant- based voucher program under an annual contributions contract (ACC) with HUD to allocate up to 20 percent of its authorized budget and attach the funding to specific sites rather than using it for tenant- based assistance [24 CFR 983.6]. PHAs may only operate a PBV program if doing so is consistent with the PHA’s Annual Plan, and the goal of deconcentrating poverty and expanding housing and economic opportunities [42 U.S.C. 1437f(o)(13)]. PHA Policy The PHA will operate a project-based voucher program using up to 20 percent of its authorized units for project-based assistance. PBV assistance may be attached to existing housing or newly constructed or rehabilitated housing [24 CFR 983.52]. If PBV units are already selected for project-based assistance either under an agreement to enter into HAP Contract (Agreement) or a HAP contract, the PHA is not required to reduce the number of these units if the amount of budget authority is subsequently reduced. However, the PHA is responsible for determining the amount of budget authority that is available for project-based vouchers and ensuring that the amount of assistance that is attached to units is within the amounts available under the ACC [24 CFR 983.6]. Additional Project-Based Units [FR Notice 1/18/17; Notice PIH 2017-21; FR Notice 1/24/22] The PHA may project-base an additional 10 percent of its units above the 20 percent program limit . The units may be distributed among one, all, or a combination of the categories as long as the total number of units does not exceed the 10 percent cap. For units under a HAP contract that was first executed on or after April 18, 2017, u nits qualify under this exception if the units: • Are specifically made available to house individuals and households that meet the definition of homeless under section 103 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302) and contained in the Continuum of Care Interim Rule at 24 CFR 578.3. • Are specifically made available to house households that are comprised of or include a veteran. - Veteran means an individual who has served in the United States Armed Forces. • Provide supportive housing to persons with disabilities or elderly persons as defined in 24 CFR 5.403. • Are located in a census tract with a poverty rate of 20 percent or less, as determined in the most recent American Community Survey Five-Year Estimates. PBV units that house eligible youth receiving FUPY/FYI assistance are also covered by this 10 percent exception authority if the units are under a HAP contract that became effectiv e after December 27, 2020, and if the unit is occupied by an eligible youth receiving FUPY/FYI assistance. FYI TPVs that were awarded under Notice PIH 2019-20 are not part of this exception since PHAs are prohibited from project - basing FYI TPVs. Units added after December 27, 2020, through an amendment of a HAP contract that became effective after December 27, 2020, are eligible for this 10 percent exception authority. In contrast, units added after December 27, 2020, through an amendment of a HAP contract that became 12.A.b Packet Pg. 1838 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-3 effective on or prior to December 27, 2020, are not eligible for this 10 percent exception authority [FR Notice 1/24/22]. See Chapter 19 for policies specific to project -basing FUPY vouchers. PHA Policy The PHA may project-base up to an additional 10 percent of its authorized units, up to 30 percent, in accordance with HUD regulations and requirements. Units Not Subject to the PBV Program Limitation [FR Notice 1/18/17] PBV units under the RAD program and HUD-VASH PBV set-aside vouchers do not count toward the 20 percent limitation when PBV assistance is attached to them. In addition, units that were previously subject to certain fede ral rent restrictions or were receiving another type of long-term housing subsidy provided by HUD are not subject to the cap. The unit must be covered under a PBV HAP contract that first became effective on or after 4/18/17. PHA Policy The PHA may project-base units not subject to the 20 percent cap in accordance with HUD regulations and requirements. 17-I.B. TENANT-BASED VS. PROJECT-BASED VOUCHER ASSISTANCE [24 CFR 983.2] Many of the Section 8 HCV tenant-based program regulations also apply to the PBV program. Consequently, many of the PHA policies related to tenant-based assistance also apply to PBV assistance. The provisions of the tenant-based voucher regulations that do not apply to the PBV program are listed at 24 CFR 983.2. PHA Policy Except as otherwise noted in this chapter, or unless specifically prohibited by PBV program regulations, the PHA policies for the Section 8 HCV tenant-based voucher program contained in this Administrative Plan also apply to the PBV program and its participants. 17-I.C. RELOCATION REQUIREMENTS [24 CFR 983.7] Any persons displaced as a result of implementation of the PBV program must be provided relocation assistance in accordance with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA) [42 U.S.C. 4201-4655] and implementing regulations at 49 CFR part 24. The cost of required relocation assistance may be paid with funds provided by the owner, local public funds, or funds available from other sources. PHAs may not use voucher program funds to cover relocation costs, except that PHAs may use their administrative fee reserve to pay for relocation expenses after all other program administrative expenses are satisf ied, and provided that payment of the relocation benefits is consistent with state and local law. Use of the administrative fee for these purposes must also be consistent with other legal and regulatory requirements, including the requirement in 24 CFR 982.155 and other official HUD issuances. 12.A.b Packet Pg. 1839 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-4 The acquisition of real property for a PBV project is subject to the URA and 49 CFR part 24, subpart B. It is the responsibility of the PHA to ensure the owner complies with these requirements. 17-I.D. EQUAL OPPORTUNITY REQUIREMENTS [24 CFR 983.8] The PHA must comply with all equal opportunity requirements under federal law and regulations in its implementation of the PBV program. This includes the requirements and authorities cited at 24 CFR 5.105(a). In addition, the PHA must comply with the PHA Plan certification on civil rights and affirmatively furthering fair housing, submitted in accordance with 24 CFR 903.7(o). 12.A.b Packet Pg. 1840 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-5 PART II: PBV OWNER PROPOSALS 17-II.A. OVERVIEW With certain exception, the PHA must describe the procedures for owner submission of PBV proposals and for PHA selection of PBV proposals [24 CFR 983.51]. Before selecting a PBV proposal, the PHA must determine that the PBV proposal complies with HUD program regulations and requirements, including a determination that the property is eligible housing [24 CFR 983.53 and 983.54], complies with the cap on the number of PBV units per project [24 CFR 983.56], and meets the site selection standards [24 CFR 983.57]. The PHA may not commit PBVs until or unless it has followed the proposal selection requirements defined in 24 CFR 983.51 [Notice PIH 2011-54]. 17-II.B. OWNER PROPOSAL SELECTION PROCEDURES [24 CFR 983.51(b)] The PHA must select PBV proposals in accordance with the selection procedures in the PHA administrative plan. The PHA must select PBV proposals by either of the following two methods. • PHA request for PBV Proposals. The PHA may solicit proposals by using a request for proposals to select proposals on a competitive basis in response to the PHA request. The PHA may not limit proposals to a single site or impose restrictions that explicitly or practically preclude owner submission of proposals for PBV housing on different sites. • The PHA may select proposal that were previously selected based on a competiti on. This may include selection of a proposal for housing assisted under a federal, state, or local government housing assistance program that was subject to a competition in accordance with the requirements of the applicable program, community development program, or supportive services program that requires competitive selection of proposals (e.g., HOME, and units for which competitively awarded Low Income Housing Tax Credits have been provided), where the proposal has been selected in accordance with such program's competitive selection requirements within three years of the PBV proposal selection date, and the earlier competitive selection proposal did not involve any consideration that the project would receive PBV assistance. Units Selected Non-Competitively [FR Notice 1/18/17; Notice PIH 2017-21; 24 CFR 983.51(b)] For certain public housing projects where the PHA has an ownership interest or control, the PHA may attach PBV assistance non-competitively without following one of the two processes above. This exception applies when the PHA is engaged in an initiative to improve, develop, or replace a public housing property or site. The public housing units may either currently be in the public housing inventory or may have been removed from the public housing inventory within five years of the date on which the PHA entered into the AHAP or HAP. If the PHA is planning rehabilitation or new construction on the project, a minimum threshold of $25,000 per unit in hard costs must be expended. If the PHA plans to replace public housing by attaching PBV assistance to existing housing in which the PHA has an ownership interest or control, then the $25,000 per unit minimum threshold does not apply as long as the existing housing substantially complies with HQS. 12.A.b Packet Pg. 1841 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-6 The PHA must include in the administrative plan what work it plans to do on the property or site and how many PBV units will be added to the site. PHA Policy The PHA will not attach PBVs to projects owned by the PHA as described above. Solicitation and Selection of PBV Proposals [24 CFR 983.51 (c)] PHA procedures for selecting PBV proposals must be designed and operated to provide broad public notice of the opportunity to offer PBV proposals for consideration by the PHA. The public notice procedures may include publication of the public notice in a local newspaper of general circulation and other means designed and operated to provide broad public notice. The public notice of the PHA request for PBV proposals must specify the submission deadline. Detailed application and selection information must be provided at the request of interested parties. PHA Policy The PHA will not accept proposals from developments funded by City Housing Trust Funds, except for properties which provide supportive housing for persons experiencing homelessness, or persons living with disabilities. PHA Policy A proposal submitted for a unit occupied by an existing tenant must include documentation that the tenant has occupied the unit for a minimum of twelve consecutive months. PHA Request for Proposals for Rehabilitated and Newly Constructed Units The PHA will advertise its request for proposals (RFP) for rehabilitated and newly constructed housing in the following newspapers and trade journals. Santa Monica Daily Press The advertisement will state the number of vouchers available to be project-based, the type of units that will be considered, the submission deadline, and will note how to obtain the full RFP with information on the application and selection process. Advertisements will also contain a statement that participation in the PBV program requires compliance with Fair Housing and Equal Opportunity (FHEO) requirements. In addition, the PHA will post the RFP and proposal submission and rating and ranking procedures on its website. The PHA will publish its advertisement in the newspapers and trade journals mentioned above for at least one day per week for three consecutive weeks. The advertisement will specify the number of units the PHA estimates that it will be able to assist under the funding the PHA is making available. Proposals will be due in the PHA office by close of business 15 calendar days from the date of the last publication. The PHA reserves the right to re-open project-based RFPs and to solicit additional proposals. 12.A.b Packet Pg. 1842 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-7 In order for the proposal to be considered, the owner must submit the proposal to the PHA by the published deadline date, and the proposal must respond to all requirements as outlined in the RFP. Incomplete proposals will not be reviewed. The PHA will rate and rank proposals for rehabilitated and newly constructed housing using the following criteria: Owner experience and capability to operate, build or rehabilitate housing as identified in the RFP; Extent to which the project furthers the PHA goal of deconcentrating poverty and expanding housing and economic opportunities; Population served, depending on the priorities established in the PHA Annual and Five- Year Plan; If applicable, to the extent to which services for special needs populations are provided on site or in the immediate area for occupants of the property; Applicant’s demonstrated ability to obtain financing commitments or actual financial commitments; Financial feasibility of proposed rehabilitation or new construction and operations; and Applicant experience and capacity in real estate development and property management for affordable housing; Three factors will be considered regarding supportive services: • Funding commitments • Experience with population • Location of services PHA Requests for Proposals for Existing Housing Units The PHA will advertise its request for proposals (RFP) for existing housing in the following newspapers and trade journals. Santa Monica Daily Press The advertisement will state the number of vouchers available to be project-based, the type of units that will be considered, the submission deadline, and will note how to obtain the full RFP with information on the application and selection process. Advertisements will also contain a statement that participation in the PBV program requires compliance with Fair Housing and Equal Opportunity (FHEO) requirements. In addition, the PHA will post the notice inviting such proposal submission and the rating and ranking procedures on its website. The PHA will periodically publish its advertisement in the newspapers and trade journals mentioned above for at least one day per week for three consecutive weeks. The advertisement will specify the number of units the PHA estimates that it will be able to assist under the funding the PHA is making available. The PHA reserves the right to re-open project-based RFPs and to 12.A.b Packet Pg. 1843 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-8 solicit additional proposals. Owner proposals will be accepted by an established deadline and will be evaluated using the following criteria: Owner experience and capability to operate, build or rehabilitate housing as identified in the RFP; Extent to which the project furthers the PHA goal of de-concentrating poverty and expanding housing and economic opportunities; Population served, depending on the priorities established in the PHA Annual and Five- Year Plan; If applicable, to the extent to which services for special needs populations are provided on site or in the immediate area for occupants of the property; Applicant’s demonstrated ability to obtain financing commitments or actual financial commitments; Financial feasibility of proposed rehabilitation or new construction and operations; and Applicant experience and capacity in real estate development and property management for affordable housing; Three factors will be considered regarding supportive services: • Funding commitments • Experience with population • Location of services PHA Selection of Proposals Subject to a Previous Competition under a Federal, State, or Local Housing Assistance Program The PHA may accept proposals for PBV assistance from owners that were competitively selected under another federal, state or local housing assistance program, including projects that were competitively awarded Low-Income Housing Tax Credits on an ongoing basis. The PHA may periodically advertise that it is accepting proposals, in the following newspapers and trade journals: Santa Monica Daily Press The advertisement will state the number of vouchers available to be project-based, the type of units that will be considered, the submission deadline, and will note how to obtain the full RFP with information on the application and selection process. Advertisements will also contain a statement that participation in the PBV program requires compliance with Fair Housing and Equal Opportunity (FHEO) requirements. 12.A.b Packet Pg. 1844 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-9 In addition to, or in place of advertising, the PHA may also directly contact specific owners that have already been selected for Federal, state, or local housing assistance based on a previously held competition, to inform them of available PBV assistance. Proposals will be reviewed on a first-come first-served basis. The PHA will evaluate each proposal on its merits using the following factors: Extent to which the project furthers the PHA goal of deconcentrating poverty and expanding housing and economic opportunities; and Extent to which the proposal complements other local activities such as the redevelopment of a public housing site under the HOPE VI program, the HOME program, CDBG activities, other development activities in a HUD-designated Enterprise Zone, Economic Community, Choice Neighborhood, or Renewal Community. PHA-Owned Units [24 CFR 983.51(e), 983.59, FR Notice 1/18/17, and Notice PIH 2017-21] A PHA-owned unit may be assisted under the PBV program only if the HUD field office or HUD-approved independent entity reviews the selection process and determines that the PHA-owned units were appropriately selected based on the selection procedures specified in the PHA administrative plan. This also applies to noncompetitive selections. If the PHA selects a proposal for housing that is owned or controlled by the PHA, the PHA must identify the entity that will review the PHA proposal selection process and perform specific functions with respect to rent determinations, the term of the HAP contract, and inspections. In the case of PHA-owned units, the term of the HAP contract and any HAP contract renewal must be agreed upon by the PHA and a HUD-approved independent entity. In addition, an independent entity must determine the initial rent to owner, the re-determined rent to owner, and reasonable rent. In addition, housing quality standards inspections must also be conducted by an independent entity. The independent entity that performs these program services may be the unit of general local government for the PHA jurisdiction (unless the PHA is itself the unit of general local government or an agency of such government) or another HUD-approved public or private independent entity. PHA Policy The PHA, a lessee, or a manager of PHA-owned units may submit a proposal for project-based housing that is owned or controlled by the PHA. If the proposal for PHA-owned housing is selected, the PHA will select an eligible entity to review the PHA selection process. The PHA will obtain HUD approval of the selected entity prior to selecting the proposal for PHA-owned housing. The PHA may only compensate the independent entity and appraiser from PHA ongoing administrative fee income (including amounts credited to the administrative fee rese rve). The PHA may not use other program receipts to compensate the independent entity and appraiser fo r their services. The PHA, independent entity, and appraiser may not charge the household any fee for the appraisal or the services provided by the independent entity. PHA Notice of Owner Selection [24 CFR 983.51(d)] The PHA must give prompt written notice to the party that submitted a selected prop osal and must also give prompt public notice of such selection. Public notice procedures may include publication of public 12.A.b Packet Pg. 1845 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-10 notice in a local newspaper of general circulation and other means designed and actually operated to provide broad public notice. PHA Policy Within 10 business days of the PHA making the selection, the PHA will post the selected owner(s) on its website. The PHA will also notify in writing all owners that submitted proposals that were not selected. In addition, the PHA will publish its notice for selection of PBV proposals for two consecutive days in the same newspapers and trade journals the P HA used to solicit the proposals. The announcement will include the name of the owner that was selected for the PBV program. The PHA will also post the notice of owner selection on its electronic web site. The PHA will make available to any interested party its rating and ranking sheets and documents that identify the PHA basis for selecting the proposal. These documents will be available for review by the public and other interested parties for one month after publication of the notice of owner selection. The PHA will not make available sensitive owner information that is privileged, such as financial statements and similar information about the owner. The PHA will make these documents available for review at the PHA during normal business hours. The cost for reproduction of allowable documents will be $.25 per page. 17-II.C. HOUSING TYPE [24 CFR 983.52] The PHA may attach PBV assistance for units in existing housing or for newly constructed or rehabilitated housing developed under and in accordance with an agreement to enter into a housing assistance payments contract that was executed prior to the start of construction. A housing unit is considered an existing unit for purposes of the PBV program, if, at the time of notice of PHA selection, the units substantially comply with HQS. Units for which new construction or rehabilitation was started in accordance with PBV program requirements do not qualify as existing housing. The PHA must decide what housing type, new construction, rehabilitation, or existing housing, will be used to develop project-based housing. The PHA choice of housing type must be reflected in its solicitation for proposals. 17-II.D. PROHIBITION OF ASSISTANCE FOR CERTAIN UNITS Ineligible Housing Types [24 CFR 983.53] The PHA may not attach or pay PBV assistance to shared housing units; units on the grounds of a penal reformatory, medical, mental, or similar public or private institution; nursing homes or facilities providing continuous psychiatric, medical, nursing services, board and care, or intermediate care (except that assistance may be provided in assisted living facilities); units that are owned or controlled by an educational institution or its affiliate and are designated for occupancy by students; manufactured homes; and transitional housing. In addition, the PHA may not attach or pay PBV assistance for a unit occupied by an owner and the PHA may not select or enter into an agreement to enter into a contract or contract for a unit occupied by a household ineligible for participation in the PBV program. 12.A.b Packet Pg. 1846 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-11 Subsidized Housing [24 CFR 983.54] A PHA may not attach or pay PBV assistance to units in any of the following types of subsidized housing: • A public housing unit; • A unit subsidized with any other form of Section 8 assistance; • A unit subsidized with any governmental rent subsidy; • A unit subsidized with any governmental subsidy that covers all or any part of the operating costs of the housing; • A unit subsidized with Section 236 rental assistance payments (except that a PHA may attach assistance to a unit subsidized with Section 236 interest reduction payments); • A Section 202 project for non-elderly with disabilities; • Section 811 project-based supportive housing for persons with disabilities; • Section 202 supportive housing for the elderly; • A Section 101 rent supplement project; • A unit subsidized with any form of tenant -based rental assistance; • A unit with any other duplicative federal, state, or local housing subsidy, as determined by HUD or the PHA in accordance with HUD requirements. 17-II.E. SUBSIDY LAYERING REQUIREMENTS [24 CFR 983.55, Notice PIH 2013-11, and FR Notice 2/28/20] The subsidy layering review is intended to prevent excessive public assistance by combining (layering) housing assistance payment subsidy under the PBV program with other governmental housing assistance from federal, state, or local agencies, including assistance such as tax concessions or tax credits. HUD requires new construction and rehabilitation housing that will include forms of governmental assistance other than PBVs to undergo a subsidy layering review (SLR) prior to entering into an Agreement to Enter into Housing Assistance Payments Contract (AHAP). Subsidy layering requirements do not apply to existing housing, when PBV is the only governmental assistance, or for projects already subject to a PBV HAP contract, even if the project is recapitalized with outside sources of funding. When a PHA selects a new construction or rehabilitation project, the PHA must require information regarding all HUD and/or other federal, state, or local governmental assistance to be disclosed by the project owner using Form HUD-2880. Appendix A of FR Notice 2/28/20 contains a list of all required documentation. Either HUD or a HUD-approved housing credit agency (HCA) in the PHA’s jurisdiction performs the subsidy layering review. The PHA must request an SLR through their local HUD Field Office or, if eligible, through a participating HCA. If the SLR request is submitted to an approved HCA, and the proposed project-based voucher assistance meets HUD subsidy layering requirements, the HCA must submit a certification to HUD and notify the PHA. The PHA may proceed to execute an AHAP at that time if the environmental approval is received. The HAP contract must contain the owner's certification that the project has not received and will not receive (before or during the term of the contract) any public assistance for acquisition, development, or 12.A.b Packet Pg. 1847 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-12 operation of the housing other than assistance disclosed in the subsidy layering review in accordance with HUD requirements. 17-II.F. CAP ON NUMBER OF PBV UNITS IN EACH PROJECT 25 Percent per Project Cap [24 CFR 983.56, FR Notice 1/18/17, and Notice PIH 2017-21] In general, the PHA may not select a proposal to provide PBV assistance for units in a project or enter into an agreement to enter into a contract or a contract to provide PBV assistance for units in a project, if the total number of dwelling units in the project that will receive PBV assistance during the term of the PBV contract is more than the greater of 25 units or 25 percent of the number of dwelling units (assisted or unassisted) in the project. Exceptions to 25 Percent per Project Cap [FR Notice 1/18/17; Notice PIH 2017-21; FR Notice 1/24/22] As of April 18, 2017, units are not counted against the 25 percent or 25 -unit per project cap if: • The units are exclusively for elderly families • The units are for households eligible for supportive services available to all families receiving PBV assistance in the project - If the project is located in a census tract with a poverty rate of 20 percent or less, as determined in the most recent American Community Survey Five-Year estimates, the project cap is the greater of 25 units or 40 percent (instead of 25 percent) of the units in the project [FR Notice 7/14/17]. The Housing Opportunity Through Modernization Act o f 2016 (HOTMA) eliminated the project cap exemption for projects that serve disabled families and modified the exception for supportive services. Under the Fostering Stable Housing Opportunities (FSHO) amendments, units exclusively made available to youth receiving FUPY/FYI assistance may be excepted from the project cap for HAP contracts first effective after December 27, 2020. For more information on excepted units for FUPY, see Chapter 19. Projects where these caps were implemented prior to HOTMA (HAP contracts executed prior to April 18, 2017) or FSHO (contract in effect on or prior to December 27, 2020) may continue to use the former exceptions and may renew their HAP contracts under the old requirements, unless the PHA and owner agree to change the conditions of the HAP contract. However, this change may not be made if it would jeopardize an assisted family’s eligibility for continued assistance in the project. Supportive Services PHAs must include in the PHA administrative plan the type of services offered to households for a project to qualify for the exception and the extent to which such services will be provided. As of 4/18/17, the project must make supportive services available to all households receiving PBV assistance in the project, but the household does not actually have to accept and receive supportive services for the exception to apply to the unit, although the household must be eligible to receive the supportive services. It is not necessary that the services be provided at or by the project but must be reasonably available to households receiving PBV assistance at the project and designed to help households in the project achieve self-sufficiency or live in the community as independently as possible A PHA may not require 12.A.b Packet Pg. 1848 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-13 participation in the supportive service as a condition of living in the excepted unit, although such services may be offered. PHA Policy Excepted units will be limited to units for elderly households and households receiving supportive services. Projects not Subject to a Project Cap [FR Notice 1/18/17; Notice PIH 2017-21] PBV units that were previously subject to certain federal rent restrictions or receiving another type of long-term housing subsidy provided by HUD are exempt from the project cap. In other words, 100 percent of the units in these projects may receive PBV assistance. PHA Policy The PHA administers PBV in buildings previously funded under Section 202 which were converted and are not subject to the cap. Promoting Partially Assisted Buildings [24 CFR 983.56(c)] A PHA may establish local requirements designed to promote PBV assistance in partially assisted buildings. A partially assisted building is a building in which there are fewer units covered by a contract than residential units [24 CFR 983.3]. A PHA may establish a per-building cap on the number of units that will receive PBV assistance or other project-based assistance in a multihousehold building containing excepted units or in a single-household building. A PHA may also determine not to provide PBV assistance for excepted units, or the PHA may establish a per-building cap of less than 25 units or 25 percent of units. PHA Policy: Excepted units will be limited to units for elderly families. Beyond that, the PHA will not impose any further cap on the number of PBV units assisted per building. 17-II.G. SITE SELECTION STANDARDS Compliance with PBV Goals, Civil Rights Requirements, and HQS Site Standards [24 CFR 983.57(b)] The PHA may not select a proposal for existing, newly constructed, or rehabilitated PBV housing on a site or enter into an agreement to enter into a contract or contract for units on the site, unless the PHA has determined that PBV assistance for housing at the selected site is consistent with the goal of deconcentrating poverty and expanding housing and economic opportunities. The standard for deconcentrating poverty and expanding housing and economic opportunities must be consistent with the PHA Plan under 24 CFR 903 and the PHA Administrative Plan. In addition, prior to selecting a proposal, the PHA must determine that the site is suitable from the standpoint of facilitating and furthering full compliance with the applicable Civil Rights Laws, regulations, 12.A.b Packet Pg. 1849 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-14 and Executive Orders, and that the site meets the HQS site and neighborhood standards at 24 CFR 982.401(l). PHA Policy It is the PHA goal to select sites for PBV housing that provide for deconcentrating poverty and expanding housing and economic opportunities. In complying with this goal, the PHA will limit approval of sites for PBV housing in census tracts that have poverty concentrations of 20 percent or less. However, the PHA will grant exceptions to the 20 percent standard where the PHA determines that the PBV assistance will complement other local redevelopment activities designed to deconcentrate poverty, mitigate gentrification, and expand housing and economic opportunities in census tracts with poverty concentrations greater than 20 percent, such as sites in : A census tract in which the proposed PBV development will be located in a HUD- designated Enterprise Zone, Economic Community, Choice Neighborhood, or Renewal Community; A census tract where the concentration of assisted units will be or has decreased as a result of public housing demolition and HOPE VI redevelopment; A census tract in which the proposed PBV development will be located is undergoing significant revitalization as a result of state, local, or federal dollars invested in the area; A census tract where new market rate units are being developed where such market rate units will positively impact the poverty rate in the area; A census tract where there has been an overall decline in the poverty rate within the past five years; or A census tract where there are meaningful opportunities for educational and economic advancement. Existing and Rehabilitated Housing Site and Neighborhood Standards [24 CFR 983.57(d)] The PHA may not enter into an agreement to enter into a contract nor enter into a contract for existing or rehabilitated housing until it has determined that the site complies with the HUD required site and neighborhood standards. The site must: • Be adequate in size, exposure, and contour to accommodate the number and type of units proposed; • Have adequate utilities and streets available to service the site; • Promote a greater choice of housing opportunities and avoid undue concentration of assisted persons in areas containing a high proportion of low-income persons; • Be accessible to social, recreational, educational, commercial, and health facilities and services and other municipal facilities and services equivalent to those found in neighborhoods consisting largely of unassisted similar units; and • Be located so that travel time and cost via public transportation or private automobile from the neighborhood to places of employment is not excessive. 12.A.b Packet Pg. 1850 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-15 New Construction Site and Neighborhood Standards [24 CFR 983.57(e)] In order to be selected for PBV assistance, a site for newly constructed housing must meet the following HUD required site and neighborhood standards: • The site must be adequate in size, exposure, and contour to accommodate the number and type of units proposed; • The site must have adequate utilities and streets available to service the site; • The site must not be located in an area of minority concentration unless the PHA determines that sufficient, comparable opportunities exist for housing for minority households in the income range to be served by the proposed project outside areas of minority concentration or that the p roject is necessary to meet overriding housing needs that cannot be met in that housing market area; • The site must not be located in a racially mixed area if the project will cause a significant increase in the proportion of minority to non-minority residents in the area. • The site must promote a greater choice of housing opportunities and avoid undue concentration of assisted persons in areas containing a high proportion of low-income persons; • The neighborhood must not be one that is seriously detrimental t o household life or in which substandard dwellings or other undesirable conditions predominate; • The housing must be accessible to social, recreational, educational, commercial, and health facilities and services and other municipal facilities and services equivalent to those found in neighborhoods consisting largely of unassisted similar units; and • Except for housing designed for elderly persons, the housing must be located so that travel time and cost via public transportation or private automobile from the neighborhood to places of employment is not excessive. 17-II.H. ENVIRONMENTAL REVIEW [24 CFR 983.58] The PHA activities under the PBV program are subject to HUD environmental regulations in 24 CFR parts 50 and 58. The responsible entity is responsible for performing the federal environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). The PHA may not enter into an agreement to enter into a HAP contract nor enter into a HAP contract until it has complied with the environmental review requirements. In the case of existing housing, the responsible entity that is responsible for the environmental review under 24 CFR part 58 must determine whether or not PBV assistance is categorically excluded from review under the National Environmental Policy Act and whether or not the assistance is subject to review under the laws and authorities listed in 24 CFR 58.5. The PHA may not enter into an agreement to enter into a HAP contract or a HAP contract with an owner, and the PHA, the owner, and its contractors may not acquire, rehabilitate, convert, lease, repair, dispose of, demolish, or construct real property or commit or expend program or local funds for PBV activities under this part, until the environmental review is completed. The PHA must supply all available, relevant information necessary for the responsible entity to perform any required environmental review for any site. The PHA must require the owner to carry out mitigating 12.A.b Packet Pg. 1851 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-16 measures required by the responsible entity (or HUD, if applicable) as a result of the environmental review. 12.A.b Packet Pg. 1852 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-17 PART III: DWELLING UNITS 17-III.A. OVERVIEW This part identifies the special housing quality standards that apply to the PBV program, housing accessibility for persons with disabilities, and special procedures for conducting housing quality standards inspections. 17-III.B. HOUSING QUALITY STANDARDS [24 CFR 983.101] The housing quality standards (HQS) for the tenant-based program, including those for special housing types, generally apply to the PBV program. HQS requirements for shared housing, manufactured home space rental, and the homeownership option do not apply because these housing types are not assisted under the PBV program. The physical condition standards at 24 CFR 5.703 do not apply to the PBV program. Lead-based Paint [24 CFR 983.101(c)] The lead-based paint requirements for the tenant-based voucher program do not apply to the PBV program. Instead, The Lead-based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846), the Residential Lead-based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and implementing regulations at 24 CFR Part 35, Subparts A, B, H, and R, and 40 CFR 745.227, apply to the PBV program. 17-III.C. HOUSING ACCESSIBILITY FOR PERSONS WITH DISABILITIES The housing must comply with program accessibility requirements of section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR part 8. The PHA must ensure that the percentage of accessible dwelling units complies with the requirements of section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), as implemented by HUD's regulations at 24 CFR 8, subpart C. Housing first occupied after March 13, 1991, must comply with design and construction requirements of the Fair Housing Amendments Act of 1988 and implementing regulations at 24 CFR 100.205, as applicable. (24 CFR 983.102) 17-III.D. INSPECTING UNITS Pre-selection Inspection [24 CFR 983.103(a)] The PHA must examine the proposed site before the proposal selection date. If the units to be assisted already exist, the PHA must inspect all the units before the proposal selection date and must determine whether the units substantially comply with HQS. To qualify as existing housing, units must substantially comply with HQS on the proposal selection date. However, the PHA may not execute the HAP contract until the units fully comply with HQS. 12.A.b Packet Pg. 1853 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-18 Pre-HAP Contract Inspections [24 CFR 983.103(b), FR Notice 1/18/17, and Notice PIH 2017-20] The PHA must inspect each contract unit before execution of the HAP contract. The PHA may not provide assistance on behalf of the family until the unit fully complies with HQS, unless the PHA has adopted a policy to enter into a HAP contract for units that fail the initial HQS inspection as a result of only non-life-threatening conditions, or if the unit passed an alternative inspection. PHA Policy The PHA will not provide assistance on behalf of the family until the unit fully complies with HQS. Turnover Inspections [24 CFR 983.103(c)] Before providing assistance to a new household in a contract unit, the PHA must inspect the unit. The PHA may not provide assistance on behalf of the household until the unit fully complies with HQS. Annual Inspections [24 CFR 983.103(d)] At least annually during the term of the contract, the PHA must inspect a random sample, consisting of at least 20 percent of the contract units in each building to determine if the contract units and the premises are maintained in accordance with HQS. Turnover inspections are not counted toward meeting this annual inspection requirement. The PHA also has the option in certain mixed finance properties to rely on alternative inspections conducted at least triennially. PHA Policy The PHA will inspect on an annual basis a random sample consisting of at least 20 percent of the contract units in each building to determine if the contract units and the pr emises are maintained in accordance with HQS. If more than 20 percent of the annual sample of inspected contract units in a building fails the initial inspection, the PHA must reinspect 100 percent of the contract units in the building. Other Inspections [24 CFR 983.103(e)] The PHA must inspect contract units whenever needed to determine that the contract units comply with HQS and that the owner is providing maintenance, utilities, and other services in accordance with the contract. The PHA must consider complaints and any other information coming to its attention in scheduling inspections. The PHA must conduct follow-up inspections needed to determine if the owner (or, if applicable, the household) has corrected an HQS violation, and must conduct inspections to determine the basis for exercise of contractual and other remedies for owner or household violation of HQS. In conducting PHA supervisory quality control HQS inspections, the PHA should include a representative sample of both tenant-based and project-based units. Inspecting PHA-Owned Units [24 CFR 983.103(f)] 12.A.b Packet Pg. 1854 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-19 In the case of PHA-owned units, the inspections must be performed by an independent entity designated by the PHA and approved by HUD. The independent entity must furnish a copy of e ach inspection report to the PHA and to the HUD field office where the project is located. The PHA must take all necessary actions in response to inspection reports from the independent entity, including exercise of contractual remedies for violation of the HAP contract by the PHA-owner. 12.A.b Packet Pg. 1855 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-20 PART IV: REHABILITATED AND NEWLY CONSTRUCTED UNITS 17-IV.A. OVERVIEW [24 CFR 983.151] There are specific requirements that apply to PBV assistance for newly constructed or rehabilitated housing that do not apply to PBV assistance in existing housing. This part describes the requirements unique to this type of assistance. Housing selected for this type of assistance may not at a later date be selected for PBV assistance as existing housing. 17-IV.B. AGREEMENT TO ENTER INTO HAP CONTRACT In order to offer PBV assistance in rehabilitated or newly constructed units, the PHA must enter into an agreement to enter into contract (Agreement) with the owner of the property. The Agreement must be in the form required by HUD [24 CFR 983.152(b)]. The PHA may not enter into an Agreement if commencement of construction or rehabilitation has commenced after proposal submission [24 CFR 983.152(c)]. Construction begins when excavation or site preparation (including clearing of the land) begins for the housing. Rehabilitation begins with the physical commencement of rehabilitation activity on the housing. In the Agreement the owner agrees to develop the PBV contract units to comply with HQS, and the PHA agrees that upon timely completion of such development in accordance with the terms of the Agreement, the PHA will enter into a contract with the owner for the contract units [24 CFR 983.152(a)]. Content of the Agreement [24 CFR 983.152(c)] At a minimum, the Agreement must describe the following features of the housing to be developed and assisted under the PBV program: • Site and the location of the contract units; • Number of contract units by area (size) and number of bedrooms and bathrooms; • Services, maintenance, or equipment to be supplied by the owner without charges in addition to the rent; • Utilities available to the contract units, including a specification of utility services to be paid by the owner and utility services to be paid by the tenant; • An indication of whether or not the design and construction requirements of the Fair Housing Act and section 504 of the Rehabilitation Act of 1973 apply to units under the Agreement. If applicable, any required work item resulting from these requirements must be included in the description of work to be performed under the Agreement; • Estimated initial rents to owner for the contract units; • Description of the work to be performed under the Agreement. For rehabilitated units, the description must include the rehabilitation work write up and, where deter mined necessary by the PHA, specifications and plans. For new construction units, th e description must include the working drawings and specifications. 12.A.b Packet Pg. 1856 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-21 • Any additional requirements for quality, architecture, or design over and above HQS. Execution of the Agreement [24 CFR 983.153] The Agreement must be executed promptly after PHA notice of proposal selection to the selected owner. Generally, the PHA may not enter into the Agreement with the owner until the subsidy layering review is completed. Likewise, the PHA may not enter into the Agreement until the environmental review is completed and the PHA has received environmental approval. However, the PHA does not need to conduct a subsidy layering review in the case of a HAP contract for an existing structure o r if the applicable state or local agency has conducted such a review. Similarly, environmental reviews are not required for existing structures unless otherwise required by law or regulation. PHA Policy The PHA will enter into the Agreement with the owner within 10 business days of receiving both environmental approval and notice that subsidy layering requirements have been met, and before construction or rehabilitation work requirements have been met, and also before construction or rehabilitation work are started. 17-IV.C. CONDUCT OF DEVELOPMENT WORK Labor Standards [24 CFR 983.154(b)] If an Agreement covers the development of nine or more contract units (whether or not completed in stages), the owner and the owner’s contractors and subcontractors must pay Davis-Bacon wages to laborers and mechanics employed in the development of housing. The HUD-prescribed form of the Agreement will include the labor standards clauses required by HUD, such as those involving Davis-Bacon wage rates. The owner, contractors, and subcontractors must also comply with the Contract Work Hours and Safety Standards Act, Department of Labor regulations in 29 CFR part 5, and other applicable federal labo r relations laws and regulations. The PHA must monitor compliance with labor st andards. Owner Disclosure [24 CFR 983.154(d) and (e)] The Agreement and contract must include a certification by the owner that the owner and other project principals are not on the U.S. General Services Administration list of parties excluded from f ederal procurement and non-procurement programs. The owner must also disclose any possible conflict of interest that would be a violation of the Agreement, the contract, or HUD regulations. 17-IV.D. COMPLETION OF HOUSING The Agreement must specify the deadlines for completion of the housing, and the owner must develop and complete the housing in accordance with these deadlines. The Agreement must also specify the deadline for submission by the owner of the required evidence of completion. 12.A.b Packet Pg. 1857 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-22 Evidence of Completion [24 CFR 983.155(b)] At a minimum, the owner must submit the following eviden ce of completion to the PHA in the form and manner required by the PHA: • Owner certification that the work has been completed in accordance with HQS and all requirements of the Agreement; and • Owner certification that the owner has complied with labor standards and equal opportunity requirements in development of the housing. At the PHA’s discretion, the Agreement may specify additional documentation that must be submitted by the owner as evidence of housing completion. PHA Policy The PHA will determine the need for the owner to submit additional documentation as evidence of housing completion on a case-by-case basis depending on the nature of the PBV project. The PHA will specify any additional documentation requirements in the Agreement to enter into contract. PHA Acceptance of Completed Units [24 CFR 983.156] Upon notice from the owner that the housing is completed, the PHA must inspect to determine if the housing has been completed in accordance with the Agreement, including compliance with HQS and any additional requirements imposed under the Agreement. The PHA must also determine if the owner h as submitted all required evidence of completion. If the work has not been completed in accordance with the Agreement, the PHA must not enter into contract. If the PHA determines the work has been completed in accordance with the Agreement and that the owner has submitted all required evidence of completion, the PHA must submit the c ontract for execution by the owner and must then execute the contract. 12.A.b Packet Pg. 1858 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-23 PART V: HOUSING ASSISTANCE PAYMENTS CONTRACT (HAP) 17-V.A. OVERVIEW The PHA must enter into a contract with an owner for units that are receiving PBV assistance. The purpose of the contract is to provide housing assistance payments for eligible households. Housing assistance is paid for contract units leased and occupied by eligible households during the contract term. The contract must be in the form required by HUD [24 CFR 983.202]. 17-V.B. HAP CONTRACT REQUIREMENTS Contract Information [24 CFR 983.203] The contract must specify the following information: • The total number of contract units by number of bedrooms; • The project’s name, street address, city or county, state and zip code, block and lot number (if known), and any other information necessary to clearly identify the site and the building; • The number of contract units in each building, the location of each contract unit, the area of each contract unit, and the number of bedrooms and bathrooms in each contract unit; • Services, maintenance, and equipment to be supplied by the owner and included in the rent to owner; • Utilities available to the contract units, including a specification of utility services to be paid by the owner (included in rent) and utility services to be paid by the tenant; • Features provided to comply with program accessibility requirements of Section 504 of the Rehabilitation Act of 1973 and implementing regulations at 24 CFR part 8; • The contract term; • The number of units in any project that will exceed the 25 percent per project cap, which will be set- aside for occupancy by qualifying households; and • The initial rent to owner for the first 12 months of the contract term. Execution of the HAP Contract [24 CFR 983.204] The PHA may not enter into a contract until each contract unit has been inspected and the PHA has determined that the unit complies with the Housing Quality Standards (HQS), unless the PHA has adopted a policy to enter into a HAP contract for units that fail the initial HQS inspection as a result of only non-life-threatening conditions. For existing housing, the contract must be executed promptly after the PHA selects the owner proposal and inspects the housing units. For newly constructed or rehabilitated housing the contract must be executed after the PHA has inspected the completed units and has determined that the units have been completed in accordance with the agreement to enter into the contract, and the owner furnishes all required evidence of co mpletion. For rehabilitated or newly constructed housing, the contract will be executed within 10 business days of the PHA determining that the units have been completed in accordance with the 12.A.b Packet Pg. 1859 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-24 agreement to enter into contract, all units meet HQS, and the owner has submitted all required evidence of completion. Term of HAP Contract [24 CFR 983.205, FR Notice 1/18/17, and Notice of PIH 2017-21] The PHA may enter into a HAP contract with an owner for an initial term of no less than one year and no more than 20 years. PHA Policy The term of all PBV contracts will be negotiated with the owner on a case-by-case basis. At any time before expiration of the contract, the PHA may extend the term of the contract for an additional term of up to 20 years if the PHA determines an extension is appropriate to continue providing affordable housing for low-income households. Subsequent extensions are subject to the same limitations. All extensions must be on the form and subject to the conditions prescribed by HUD at the time of the extension. PHA Policy When determining whether or not to extend an expiring PBV contract, the PHA will consider several factors including, but not limited to: The cost of extending the contract and the amount of available budget authority; The condition of the contract units; The owner’s record of compliance with obligations under the contract and lease(s); Whether the location of the units continues to support the goals of d econcentrating poverty and expanding housing opportunities; and Whether the funding could be used more appropriately for tenant-based assistance. Termination by PHA [24 CFR 983.205(c) and FR Notice 1/18/17] The contract must provide that the term of the PHA’s contractual commitment is subject to the availability of sufficient appropriated funding as determined by HUD or by the PHA in accordance with HUD instructions. For these purposes, sufficient funding means the availability of appropriations, and of funding under the ACC from such appropriations, to make full payment of housing assistance payments payable to the owner for any contract year in accordance with the terms of the contract. In times of insufficient funding, HUD requires that PHAs first take all cost-saving measures prior to failing to make payments under existing PBV HAP contracts. If it is determined that there may not be sufficient funding to continue housing assistance payments for all contract units and for the full term of the contract, the PHA may terminate the contract by notice to the owner. The termination must be implemented in accordance with HUD instructions. Termination by Owner [24 CFR 983.205(d)] If in accordance with program requirements the amount of rent to an owner for any contract unit is reduced below the amount of the rent to owner at the beginning of the contract term, the owner may 12.A.b Packet Pg. 1860 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-25 terminate the contract by giving notice to the PHA. In this case, households living in the contract units must be offered tenant-based assistance. Statutory Notice Requirements: Contract Termination or Expiration [24 CFR 983.206, FR Notice 1/18/17, and Notice of PIH 2017-21] Not less than one year before the HAP contract terminates, or if the owner refuses to renew the HAP contract, the owner must notify the PHA and assisted tenants of the termination. The notice must be provided in the form prescribed by HUD. If the owner does not give timely notice, the owner must permit the tenants in assisted units to remain in their units for the required notice period with no increase in the tenant portion of their rent, and with no eviction as a result of the owner's inability to collect an increased tenant portion of rent. An owner may renew the terminating contract for a period of time sufficient to give tenants one-year advance notice under such terms as HUD may require. Upon termination or expiration of the contract, a household living at the property is entitled to receive a tenant-based voucher. Tenant-based assistance would not begin until the owner’s required notice period ends. The PHA must provide the household with a voucher and the household must also be given the option by the PHA and owner to remain in their unit with HCV tenant-based assistance as long as the unit complies with inspection and rent reasonableness requirements. The household must pay their total tenant payment (TTP) and any additional amount if the gross rent exceeds the applicable payment standard. The household has the right to remain in the project as long as the units are used for rental housing and are otherwise eligible for HCV assistance. The owner may not terminate the tenancy of a household that exercises its right to remain except for serious or repeated lease violations or other good cause. Households that receive a tenant-based voucher at the expiration or termination of the PBV HAP contract are not new admissions to the PHA HCV tenant-based program and are not subject to income eligibility requirements or any other admission requirements. If the household chooses to remain in their unit with tenant-based assistance, the household may do so regardless of whether the household share would initially exceed 40 percent of the household’s adjusted monthly income. Remedies for HQS Violations [24 CFR 983.207(b)] The PHA may not make any payment to the owner for a contract unit during any period in which the unit does not comply with HQS. If the PHA determines that a contract does not comply with HQS, the PHA may exercise any of its remedies under the contract, for any or all of the contract units. Available remedies include termination of housing assistance payments, abatement or reduction of housing assistance payments, reduction of contract units, and termination of the contract. PHA Policy The PHA will abate and terminate PBV contracts for non-compliance with HQS in accordance with the policies used in the tenant-based voucher program. These policies are contained in Section 8- II.G., Enforcing Owner Compliance. 17-V.C. AMENDMENTS TO THE HAP CONTRACT Substitution of Contract Units [24 CFR 983.206(a)] 12.A.b Packet Pg. 1861 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-26 At the PHA’s discretion and subject to all PBV requirements, the contract may be amended to substitute a different unit with the same number of bedrooms in the same building for a previously covered contract unit. Before any such substitution can take place, the PHA must inspect the proposed unit and determine the reasonable rent for the unit. Addition of Contract Units [FR Notice 1/18/17 and Notice of PIH 2017-21] The PHA and owner may amend the HAP contract to add additional PBV contract units in projects that already have a HAP contract without having to fulfill the selection requirements found at 24 CFR 983.51(b) for those additional PBV units, regardless of when the HAP contract was signed. The additional PBV units, however, are still subject to the PBV program cap and individual project caps. Prior to attaching additional units without competition, the PHA must submit to the local field office information outlined in FR Notice 1/18/17. The PHA must also detail in the Administrative Plan their intent to add PBV units and the rationale for adding units to the specific PBV project. PHA Policy The PHA will add units to the contract on a case-by-case basis to ensure the availability of affordable housing as long as the addition of units does not exceed allowable project caps The PHA will consider adding units to the HAP contract when the PHA determines that additional housing is needed to serve eligible low-income households. Circumstances may include, but are not limited to: The local housing inventory is reduced due to a disaster (either due to loss of housing units, or an influx of displaced households); and Voucher holders are having difficulty finding units that meet program requirements such as units with mobility or hearing/visual features. Additional housing units have become available within the development. 17-V.D. HAP CONTRACT YEAR, ANNIVERSARY AND EXPIRATION DATES [24 CFR 983.206(c) and 983.302(e)] The contract year is the period of 12 calendar months preceding each annual anniversary of the contract during the contract term. The initial contract year is calculated from the first day of the first calendar month of the contract term. The annual anniversary of the contract is the first day of the first calendar month after the end of the preceding contract year. There is a single annual anniversary and expiration date for all units under a particular contract, even in cases where contract units are placed under the contract in stages (on different dates) or units are added by amendment. The anniversary and expiration dates for all units coincide with the dates for the contract units that were originally placed under contract. 17-V.E. OWNER RESPONSIBILITIES UNDER THE HAP CONTRACT [24 CFR 983.209] When the owner executes the contract s/he certifies that at such execution and at all times during the term of the contract: 12.A.b Packet Pg. 1862 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-27 • All contract units are in good condition and the owner is maintaining the pr emises and contract units in accordance with HQS; • The owner is providing all services, maintenance, equipment and utilities as agreed to under the HAP contract and the leases; • Each contract unit for which the owner is receiving HAP, is leased to an eligible household referred by the PHA, and the lease is in accordance with the contract and HUD requirements; • To the best of the owner’s knowledge the household resides in the contract unit for which the owner is receiving HAP, and the unit is the household’s only residence; • The owner (including a principal or other interested party) is not the spouse, parent, child, grandparent, grandchild, sister, or brother of any member of a household residing in a contract unit; • The amount of the HAP the owner is receiving is correct under the contract; • The rent for contract units does not exceed rents charged by the owner for comparable unassisted units; • Except for HAP and tenant rent, the owner has not received and will not receive any other payment or consideration for rental of the contract unit; and • The household does not own or have any interest in the contract unit. 17-V.F. ADDITIONAL HAP REQUIREMENTS Housing Quality and Design Requirements [24 CFR 983.101(e) and 983.207(a)] The owner is required to maintain and operate the contract units and premises in accordance with HQS, including performance of ordinary and extraordinary maintenance. The owner must provide all the services, maintenance, equipment, and utilities specified in the contract with the PHA and in the leas e with each assisted household. In addition, maintenance, replacement and redecoration must be in accordance with the standard practice for the building as established by the owner. The PHA may elect to establish additional requirements for quality, architecture, or design of PBV housing. Any such additional requirements must be specified in the Agreement to enter into a contract and the contract. These requirements must be in addition to, not in place of, compliance with HQS. PHA Policy The PHA will identify the need for any special features on a case-by-case basis depending on the intended occupancy of the PBV project. The PHA will specify any special design standards or additional requirements in the invitation for PBV proposals, the agreement to enter into contract. Vacancy Payments [24 CFR 983.352(b)] At the discretion of the PHA, the contract may provide for vacancy payments to the owner for a PHA- determined period of vacancy extending from the beginning of the first calendar month after the move - out month for a period not exceeding two full months following th e move-out month. The amount of the vacancy payment will be determined by the PHA and cannot exceed the monthly rent to owner under the assisted lease, minus any portion of the rental payment received by the owner (including amounts available from the tenant’s security deposit). 12.A.b Packet Pg. 1863 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-28 PHA Policy The PHA will decide on a case-by-case basis if the PHA will provide vacancy payments to the owner. The contract with the owner will contain any such agreement, including the amount of the vacancy payment and the period for which the owner will qualify for these payments. 12.A.b Packet Pg. 1864 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-29 PART VI: SELECTION OF PBV PROGRAM PARTICIPANTS 17-VI.A. OVERVIEW Many of the provisions of the tenant-based voucher regulations [24 CFR 982] also apply to the PBV program. This includes requirements related to determining eligibility and selecting applicants from the waitlist. Even with these similarities, there are requirements that are unique to the PBV program. This part describes the requirements and policies related to eligibility and admission to the PBV program. 17-VI.B. ELIGIBILITY FOR PBV ASSISTANCE [24 CFR 983.251(a) and (b)] The PHA may select households for the PBV program from those who are participants in the PHA’s tenant-based voucher program and from those who have applied for admission to the voucher program. For voucher participants, eligibility was determined at original admission to the voucher program and does not need to be redetermined at the commencement of PBV assistance. For all others, eligibility for admission must be determined at the commencement of PBV assistance. Applicants for PBV assistance must meet the same eligibility requirements as applicants for the tenant- based voucher program and any building specific targeting requirements. Applicants must qualify as a household as defined by HUD and the PHA, have income at or below HUD-specified income limits, and qualify on the basis of citizenship or the eligible immigration status of household members [24 CFR 982.201(a) and 24 CFR 983.2(a)]. In addition, an applicant household must provide social security information for household members [24 CFR 5.216 and 5.218] and consent to the PHA’s collection and use of household information regarding income, expenses, and household composition [24 CFR 5.230]. An applicant household must also meet HUD requirements related to current or past criminal activity. PHA Policy The PHA will determine an applicant household’s eligibility for the PBV program in accordance with the policies in Chapter 3. In-Place Households [24 CFR 983.251(b)] An eligible household residing in a proposed PBV contract unit on the date the proposal is selected by the PHA is considered an “in-place household.” These households are afforded protection from displacement under the PBV rule. If a unit to be placed under contract (either an existing unit or a unit requiring rehabilitation) is occupied by an eligible household on the date the proposal is selected, the in- place household must be placed on the PHA’s waitlist. Once the household’s continued eligibility is determined (the PHA may deny assistance to an in-place household for the grounds specified in 24 CFR 982.552 and 982.553), the household must be given an absolute selection preference and the PHA must refer these households to the project owner for an appropriately sized PBV unit in the project. Admission of eligible in-place households is not subject to income targeting requirements. This regulatory protection from displacement does not apply to households that are not eligible to participate in the program on the proposal selection date. 12.A.b Packet Pg. 1865 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-30 17-VI.C. ORGANIZATION OF THE WAITLIST [24 CFR 983.251(c)] The PHA may establish a separate waitlist for PBV units or it may use the same waitlist for both Section 8 HCV tenant-based and project-based assistance. The PHA may also merge the PBV waitlist with a waitlist for other assisted housing programs offered by the PHA. If the PHA chooses to offer a separate waitlist for PBV assistance, the PHA must offer to place applicants who are listed on the tenant-based waitlist on the waitlist for PBV assistance. If a PHA decides to establish a separate PBV waitlist, the PHA may use a single waitlist for the PHA’s whole PBV program, or it may establish separate waitlists for PBV units in particular projects or buildings or for sets of such units. PHA Policy The PHA will maintain multiple PBV waitlists. Applications to be Placed on PBV Waitlist(s) To be placed on a PBV waitlist, applicants must go to www.waitlistcheck.com and complete and submit the application in order to be accepted by the PHA for processing. Applicants must select all PBV waitlists that they wish to be placed on. Applicants must meet all requirements for each waitlist to be considered (see Eligibility and Placement on the Waitlist(s)). All required information must be filled out for the PHA to accept the application(s). Incomplete applications will not be accepted. Purging the PBV Waitlist(s) The PHA will periodically purge the waitlists. See Administrative Plan 4-II.F, pages 4-7. Removal from the Waitlist(s) See Administrative Plan 4-II.F, pages 4-7 and 4-8. Eligibility and Placement on the Waitlist(s) Applicants to a PBV waitlist are required to meet criteria specific to the PBV site. Some PBV sites have specific restrictions, such as being limited to seniors, supportive housing graduates, or transitional age youth. Applicants who do not meet the PBV site requirements are not eligible to be placed on the waitlist. To see the eligibility requirements for the current PBV sites, go to www.waitlistcheck.com. Eligible applicants will be placed on the PBV waitlist(s) according to any preference(s) for which they qualify, and the date and time their complete application is received by the PHA (see Selection Method). Applicants will receive instant confirmation of receipt when they complete the online application. Waitlist Applicants PBV waitlist status can be checked on waitlistcheck.com. The status of the applications will be available 30 business days after the opening date of the PBV waitlist. Reporting Changes in Household Circumstances See Administrative Plan 4-II.E page 4-6 12.A.b Packet Pg. 1866 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-31 Selection Method To be eligible for a PBV waitlist, applicants must meet additional, specific eligibility requirements. To see the eligibility requirements for the current PBV sites, go to waitlistcheck.com. Hierarchy of Preferences and Order of Selection PREFERENCES POINT VALUE Displaced Preference: • An involuntarily displaced applicant who has or will be required to vacate housing in the City of Santa Monica (See Section 4-III.C. SELECTION METHOD for full definition of displaced preference) 4 Funding Shortfalls Preference: • An eligible applicant that was previously terminated from a PHA program due to insufficient program funding 3 Continuum of Care (CoC) or Supportive Housing Graduate Preference: • CoC graduates or tenants residing in City-funded supportive housing properties in Santa Monica who are stable and no longer require service participation to prevent them from recycling into homelessness (See Chapter 19 for full definition of CoC and supportive housing graduates) 2 • Live: Applicants who are residents of Santa Monica • Work: ▪ Applicants who work a minimum of 25 hours per week in Santa Monica. (Applicants who work for a temporary agency do not qualify for the preference if they are on a temporary assignment). ▪ Applicants who were immediately previously in the Santa Monica workforce but are now receiving unemployment, worker’s compensation, vocational rehabilitation benefits, disability benefits, or retirement 1 12.A.b Packet Pg. 1867 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-32 benefits from a Santa Monica employer. ▪ Applicants who are in a job training program in Santa Monica, subject to the PHA’s approval. Date and Time of Application: Within each targeted funding or preference category, households will be selected on a first-come, first-served basis according to their PBV waitlist application date and time. 0 The numerical point values indicated in the table above reflect priority households. Households can meet the criteria for only one of the point values. Notification of Selection The PHA will notify the applicant when selected from the waitlist. Applicants must provide all required documentation by the date specified, or the applicant will be removed from the waitlist(s). Removal from the PBV waitlist(s) will not affect the applicant’s status on the Section 8 HCV tenant-based waitlist. See Administrative Plan 4-III.D, E, F, pages 4-15 to 4-17 17-VI.D. SELECTION FROM THE WAITLIST [24 CFR 983.251(c)] Applicants who will occupy units with PBV assistance must be selected from the PHA’s waitlist. The PHA may establish selection criteria or preferences for occupancy of particular PBV units. Income Targeting [24 CFR 983.251(c)(6)] 12.A.b Packet Pg. 1868 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-33 At least 75 percent of the households admitted to the PHA’s tenant-based and project-based voucher programs during the PHA fiscal year from the waitlist must be extremely low-income households. The income targeting requirement applies to the total of admissions to all programs. Units with Accessibility Features [24 CFR 983.251(c)(7)] When selecting households to occupy PBV units that have special accessibility features for persons with disabilities, the PHA must first refer households who require such features to the owner. Preferences [24 CFR 983.251(d), FR Notice 11/24/08] The PHA may use the same selection preferences that are used for the tenant-based voucher program, establish selection criteria or preferences for the PBV program as a whole, or for occupancy of particular PBV developments or units. The PHA must provide an absolute selection preference for eligible in-place households as described in Section 17-VI.B. above. The PHA may establish a selection preference for households who qualify for voluntary services, including disability-specific services, offered in conjunction with assisted units, provided that preference is consistent with the PHA plan. The PHA may not, however, grant a preference to a person with a specific disability [FR Notice 1/18/17]. In advertising such a project, the owner may advertise the project as offering services for a particular disability; however, the project must be open to all otherwise eligible disabled persons who may benefit from services provided in the project. In these projects, disabled residents may not be required to accept the particular services offered as a condition of occupancy. If the PHA has projects with “excepted units” for elderly households or supportive services, the PHA must give preference to such households when referring households to these units [24 CFR 983.261(b); FR Notice 1/18/17]. PHA Policy The PHA will provide a selection preference when required by the regulation (e.g., eligible in- place households, elderly households or units with supportive services, or mobility impaired persons for accessible units). The PHA may offer additional preferences for particular projects or units. 17-VI.E. OFFER OF PBV ASSISTANCE Refusal of Offer [24 CFR 983.251(e)(3)] The PHA is prohibited from taking any of the following actions against a household who has applied for, received, or refused an offer of PBV assistance: • Refuse to list the applicant on the waitlist for tenant-based voucher assistance; • Deny any admission preference for which the applicant qualifies; • Change the applicant’s place on the waitlist based on preference, date, and time of application, or other factors affecting selection under the PHA’s selection policy; • Remove the applicant from the tenant-based voucher waitlist. 12.A.b Packet Pg. 1869 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-34 Disapproval by Landlord [24 CFR 983.251(e)(2)] If a PBV owner rejects a household for admission to the owner’s units, such rejection may not affect the household’s position on the tenant-based voucher waitlist. Acceptance of Offer [24 CFR 983.252] Household Briefing When a household accepts an offer for PBV assistance, the PHA must give the household an oral briefing. The briefing must include information on how the program works and the responsibilities of the household and owner. In addition to the oral briefing, the PHA must provide a briefing packet that explains how the PHA determines the total tenant payment for a household, the household obligations under the program, and applicable fair housing information. Persons with Disabilities If an applicant household’s head or spouse is disabled, the PHA must assure effective communication, in accordance with 24 CFR 8.6, in conducting the oral briefing and in providing the written information packet. This may include making alternative formats available (see Chapter 2). In addition, the PHA must have a mechanism for referring a household that includes a member with mobility impairment to an appropriate accessible PBV unit. Persons with Limited English Proficiency The PHA should take reasonable steps to assure meaningful access by persons with limited English proficiency in accordance with Title VI of the Civil Rights Act of 1964 and Executive Order 13166 (see Chapter 2). 17-VI.F. OWNER SELECTION OF TENANTS The owner is responsible for developing written tenant selection procedures that are consistent with the purpose of improving housing opportunities for very low-income households and reasonably related to program eligibility and an applicant’s ability to fulfill their obligations under the lease. An owner must promptly notify in writing any rejected applicant of the grounds for any rejection [24 CFR 983.253(a)(2) and (a)(3)]. Leasing [24 CFR 983.253(a)] During the term of the contract, the owner must lease contract units to eligible households that are selected and referred by the PHA from the PHA’s waitlist. The contract unit leased to the household must be the appropriate size unit for the size of the household, based on the PHA’s subsidy standards. 12.A.b Packet Pg. 1870 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-35 Filling Vacancies [24 CFR 983.254(a)] The owner must promptly notify the PHA of any vacancy or expected vacancy in a contract unit. After receiving such notice, the PHA must make every reasonable effort to promptly refer a su fficient number of households for the owner to fill such vacancies. The PHA and the owner must make reasonable efforts to minimize the likelihood and length of any vacancy. PHA Policy The owner must notify the PHA in writing (mail, or e-mail) within 5 business days of learning about any vacancy or expected vacancy. The PHA will make every reasonable effort to refer households to the owner within 10 business days of receiving such notice from the owner. Reduction in Contract Units Due to Vacancies [24 CFR 983.254(b)] If any contract units have been vacant for 60 or more days since owner notice of the vacancy, the PHA may give notice to the owner amending the HAP contract to reduce the number of contract units by subtracting the number of contract units (according to the bedroom size) that have been vacant for this period. PHA Policy If any contract units have been vacant for 60 days, the PHA will give notice to the owner that the contract may be amended to reduce the number of contract units that have been vacant for this period. The PHA will provide the notice to the owner within 10 business days of the 60th day of the vacancy. The amendment to the contract will be effective the 1st day of the month following the date of the PHA’s notice. 17-VI.G. TENANT SCREENING [24 CFR 983.255] PHA Responsibility The PHA is not responsible or liable to the owner or any other person for the household’s behavior or suitability for tenancy. However, the PHA may opt to screen applicants for household behavior or suitability for tenancy and may deny applicants based on such screening. PHA Policy The PHA will not conduct screening to determine if applicant household’s is suitable for tenancy. The PHA must provide the owner with an applicant household’s current and prior address (as shown in PHA records) and the name and address (if known by the PHA) of the household’s current landlord and any prior landlords. In addition, the PHA may offer the owner other information the PHA may have about a household, including information about the tenancy history of household members or about drug trafficking and criminal activity by household members. The PHA must provide applicant households a description of the PHA policy on providing information to owners, and the PHA must give the same types of information to all owners. 12.A.b Packet Pg. 1871 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-36 The PHA may not disclose to the owner any confidential information provided in response to a request for documentation of domestic violence, dating violence, sexual assault, or stalking except at the written request or with the written consent of the individual providing the documentation [24 CFR 5.2007(a)(4)]. PHA Policy The PHA will inform owners of their responsibility to screen prospective tenants and will provide owners with the required known name and address information, at the time of t he turnover HQS inspection or before. The PHA will not provide any additional information to the owner, such as tenancy history, criminal history, etc. Owner Responsibility The owner is responsible for screening and selection of the household to occupy the owner’s unit. When screening households the owner may consider a household’s background with respect to the following factors: • Payment of rent and utility bills; • Caring for a unit and premises; • Respecting the rights of other residents to the peaceful enjoyment of their housing; • Drug-related criminal activity or other criminal activity that is a threat to the health, safety, or property of others; and • Compliance with other essential conditions of tenancy. 12.A.b Packet Pg. 1872 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-37 PART VII: OCCUPANCY 17-VII.A. OVERVIEW After an applicant has been selected from the waitlist, determined eligible by the PHA, referred to an owner and determined suitable by the owner, the household will sign the lease and occupancy of the unit will begin. 17-VII.B. LEASE [24 CFR 983.256] The tenant must have legal capacity to enter a lease under state and local law. Legal capacity means that the tenant is bound by the terms of the lease and may enforce the terms of the lease against the owner. Form of Lease [24 CFR 983.256(b)] The tenant and the owner must enter into a written lease agreement that is signed by both parties. If an owner uses a standard lease form for rental units to unassisted tenants in the locality or premises, the same lease must be used for assisted tenants, except that the lease must include a HUD-required tenancy addendum. The tenancy addendum must include, word-for-word, all provisions required by HUD. If the owner does not use a standard lease form for rental to unassisted tenants, the owner may use another form of lease, such as a PHA model lease. The PHA may review the owner’s lease form to determine if the lease complies with state and local law. If the PHA determines that the lease does not comply with state or lo cal law, the PHA may decline to approve the tenancy. PHA Policy The PHA may review the owner’s lease for compliance with state or local law. Lease Requirements [24 CFR 983.256(c)] The lease for a PBV unit must specify all of the following information: • The names of the owner and the tenant; • The unit rented (address, apartment number, if any, and any other information needed to identify the leased contract unit); • The term of the lease (initial term and any provision for renewal); • The amount of the tenant rent to owner, which is subject to change during the term of the lease in accordance with HUD requirements; • A specification of the services, maintenance, equipment, and utilities that will be provide by the owner; and • The amount of any charges for food, furniture, or supportive services. 12.A.b Packet Pg. 1873 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-38 Tenancy Addendum [24 CFR 983.256(d)] The tenancy addendum in the lease must state: • The program tenancy requirements; • The composition of the household as approved by the PHA (the names of household members and any PHA-approved live-in aide); • All provisions in the HUD-required tenancy addendum must be included in the lease. The terms of the tenancy addendum prevail over other provisions of the lease. Initial Term and Lease Renewal [24 CFR 983.256(f) and 983.257(b)] The initial lease term must be for at least one year. Upon expiration of the lease, an owner may renew the lease, refuse to renew the lease for “good cause,” or refuse to renew the lease without good cause. If the owner refuses to renew the lease without good cause, the PHA must provide the household with a tenant-based voucher and remove the unit from a PBV contract. Changes in the Lease [24 CFR 983.256(e)] If the tenant and owner agree to any change in the lease, the change must be in writing, and the owner must immediately give the PHA a copy of all changes. The owner must notify the PHA in advance of any proposed change in the lease regarding the allocation of tenant and owner responsibilities for utilities. Such changes may only be made if approved by the PHA and in accordance with the terms of the lease relating to its ame ndment. The PHA must redetermine reasonable rent, in accordance with program requirements, based on any change in the allocation of the responsibility for utilities between the owner and the tenant. The redetermined reasonable rent will be used in calculation of the rent to owner from the effective date of the change. Owner Termination of Tenancy [24 CFR 983.257] With two exceptions, the owner of a PBV unit may terminate tenancy for the same reasons an owner may in the tenant-based voucher program (see Section 12-III.B. and 24 CFR 982.310). In the PBV program, terminating tenancy for “good cause” does not include doing so for a business or economic reason, or a desire to use the unit for personal or household use or other non-residential purpose. Tenant Absence from the Unit [24 CFR 983.256(g) and 982.312(a)] The owner may specify in the lease a maximum period of tenant absence from the unit that is shorter than the maximum period permitted by PHA policy. According to program requirements, the household’s assistance must be terminated if tenants are absent from the unit for more than 90 consecutive days. Exceptions may be made for medical reasons, in-patient substance treatment, hospitalizations, household care for medical reasons, reserve or active military leave, domestic violence, or with the request of a reasonable accommodation. 12.A.b Packet Pg. 1874 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-39 Security Deposits [24 CFR 983.258] The owner may collect a security deposit from the tenant. The PHA may prohibit security deposits in excess of private market practice, or in excess of amounts charged by the owner to unassisted tenants. PHA Policy The PHA will allow the owner to collect a security deposit in the amount the owner determines is appropriate and which is consistent with state regulations. When the tenant moves out of a contract unit, the owner, subject to state and local law, may use the security deposit, including any interest on the deposit, in accordance with the lease, as reimbursement for any unpaid tenant rent, damages to the unit, or other amounts owed by the tenant under the lease. The owner must give the tenant a written list of all items charged against the security deposit and the amount of each item. After deducting the amount used to reimburse the owner, the owner must promptly refund the full amount of the balance to the tenant. If the security deposit does not cover the amount owed by the tenant under the lease, the owner may seek to collect the balance from the tenant. The PHA has no liability or responsibility for payment of any amount owed by the household to the owner. 17-VII.C. MOVES Overcrowded, Under-Occupied, and Accessible Units [24 CFR 983.259] If the PHA determines that a household is occupying a wrong size unit, based on the PHA’s subsidy standards, or a unit with accessibility features that the household does not require, and the unit is needed by a household that does require the features, the PHA must promptly notify the household and the owner of this determination, and the PHA must offer the household the opportunity to receive continued housing assistance in another unit. PHA Policy The PHA will notify the household and the owner of the household’s need to move based on the occupancy of a wrong-size or accessible unit within 10 business days of the PHA’s determination. The PHA will offer the household the following types of continued assistance in the following order, based on the availability of assistance: PBV assistance in the same building or project; PBV assistance in another project; and Tenant-based voucher assistance. If the PHA offers the household a tenant-based voucher, the PHA must terminate the housing assistance payments for a wrong-sized or accessible unit at expiration of the term of the household’s voucher (including any extension granted by the PHA). If the PHA offers the household another form of assistance that is not a tenant-based voucher, and the household does not accept the offer, does not move out of the PBV unit within a reasonable time as determined by the PHA, or both, the PHA must terminate the housing assistance payments for the unit at the expiration of a reasonable period as determined by the PHA. 12.A.b Packet Pg. 1875 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-40 PHA Policy When the PHA offers a household another form of assistance that is not a tenant-based voucher, the household will be given 30 days from the date of the offer to accept the offer and move out of the PBV unit. If the household does not move out within this 30-day time frame, the PHA will terminate the housing assistance payments at the expiration of this 30-day period. The PHA may make exceptions to this 30-day period if needed for reasons beyond the household’s control such as death, serious illness, or other medical emergency of a household member. Household Right to Move [24 CFR 983.260] The household may terminate the lease at any time after the first year of occupancy. The household must give advance written notice to the owner in accordance with the lease and provide a copy of such notice to the PHA. If the household wishes to move with continued tenant-based assistance, the household must contact the PHA to request the assistance prior to providing notice to terminate the lease. If the household terminates the lease in accordance with these requirements, the PHA is required to offer the household the opportunity for continued tenant-based assistance, in the form of a voucher or other comparable tenant-based rental assistance. If voucher or other comparable tenant-based assistance is not immediately available upon termination of the household’s lease in the PBV unit, the PHA must give the household priority to receive the next available opportunity for continued tenant- based assistance. If the household terminates the assisted lease before the end of the first year, the household relinquishes the opportunity for continued tenant-based assistance. Emergency Transfers under VAWA [Notice PIH 2017-08] Except where special consideration is needed for the project-based voucher program, the PHA will follow VAWA policies as outlined in Chapter 16 Part IX of this administrative plan, including using the Emergency Transfer Plan as the basis for PBV transfers under VAWA (Exhibit 16-4). HUD requires that the PHA include policies that address when a victim has been living in a unit for less than a year or when a victim seeks to move sooner than a tenant-based voucher is available. PHA Policy When the victim of domestic violence, dating violence, sexual assault, or stalking has lived in the unit for less than one year, the PHA will provide several options for continued assistance. The PHA will first try to transfer the participant to another PBV unit in the same development or transfer to a different development where the PHA has PBV units. The PHA will expedite the administrative processes in this case in an effort to conduct the transfer as quickly as possible. If no units are available for an internal transfer, or if there is reasonable cause to believe that such a transfer would put the victim in jeopardy, the participant may receive continued assistance through an external transfer to either tenant-based rental assistance (HCV) or assistance in the PHA’s public housing program. Such a decision will be made by the PHA based on the availability of tenant-based vouchers and/or vacancies in public housing units. Such 12.A.b Packet Pg. 1876 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-41 households must be selected from the waitlist for the applicable program. The PHA has adopted a waitlist preference for victims of domestic violence, dating violence, sexual assault, and stalking in both its HCV and public housing programs in order to expedite this process. See Section 4-III.C. of this administrative plan. If a victim wishes to move after a year of occupancy in the unit, but no tenant-based vouchers are available, the PHA will offer the participant an internal transfer to another PBV unit in the same development or a transfer to a different development where the PHA has PBV units. The PHA will expedite the administrative processes in this case in an effort to conduct the transfer as quickly as possible. If no units are available for an internal transfer, or if there is reasonable cause to believe that such a transfer would put the victim in jeopardy, the participant may receive continued assistance through an external transfer to the PHA’s public housing program. The PHA has adopted a waitlist preference for victims of domestic violence, dating violence, sexual assault, and stalking as part of the public housing ACOP in order to expedite this process. 17-VII.D. EXCEPTIONS TO THE OCCUPANCY CAP [24 CFR 983.262, FR Notice 1/18/17; Notice PIH 2017- 21] As of April 17, 2018, the PHA may not pay housing assistance under a PBV HAP contract for more than the greater of 25 units or 25 percent of the number of dwelling units in a project unless: • The units are exclusively for elderly households • The units are for households eligible for supportive services available to all households receiving PBV assistance in the project • If the project is located in a census tract with a poverty rate of 20 percent or less, as determined in the most recent American Community Survey Five-Year estimates, the project cap is the greater of 25 units or 40 percent (instead of 25 percent) of the units in the project [FR Notice 7/14/17]. When a household (or remaining members of a household) residing in an excepted unit that no longer meets the criteria for a “qualifying household” because the household is no longer elderly or disabled due to a change in household composition, the PHA has the discretion to allow the household to remain in the expected unit. If the PHA does not exercise this discretion, the household, must vacate the unit within a reasonable period of time established by the PHA, and the PHA must cease paying housing assistance payments on behalf of the non-qualifying household. Individuals in units with supportive services who choose to no longer participate in a service or who no longer qualify for services they qualified for at the time of initial occupancy cannot subsequently be denied continued housing opportunity because of this changed circumstance. A PHA or owner cannot determine that a participant’s needs exceed the level of care offered by qualifying services or require that individuals be transitioned to different projects based on service needs. If the household fails to vacate the unit within the established time, the unit must be removed from the contract unless the project is partially assisted, and it is possible for the contract to be amended to substitute a different unit in the building i n accordance with program requirements; or the owner terminates the lease and evicts the household. The housing assistance payments for a household 12.A.b Packet Pg. 1877 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-42 residing in an excepted unit that is not in compliance with its household obligations to comply with supportive services requirements must be terminated by the PHA. The PHA may allow a household that initially qualified for occupancy of an excepted unit based on elderly household status to continue to reside in a unit, where through circumstances beyond the control of the household (e.g., death of the elderly household member or long-term or permanent hospitalization or nursing care), the elderly household member no longer resides in the unit. In this case, the unit may continue to be counted as an excepted unit for as long as the household resides in that unit. Once the household vacates the unit, in order to continue as an excepted unit under the HAP contract, the unit must be made available to and occupied by a qualified household. PHA Policy The PHA will allow households who initially qualified to live in an excepted unit to remain when circumstances change due to circumstances beyond the remaining household members’ control. In all other cases, the PHA will provide written notice to the household and owner within 10 business days of making the determination. The household will be given 120 days from the date of the notice to move out of the PBV unit. If the household does not move out within this 120-day time frame, the PHA will terminate the housing assistance payments at the expiration of this 120- day period. The PHA may make exceptions to this 120-day period if needed for reasons beyond the household’s control such as death, serious illness, or other medical emergency of a household member. 12.A.b Packet Pg. 1878 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-43 PART VIII: DETERMINING RENT TO OWNER 17-VIII.A. OVERVIEW The amount of the initial rent to an owner of units receiving PBV assistance is established at the beginning of the contract term. Although for rehabilitated or newly constructed housing, the agreement to enter into contract (Agreement) states the estimated amount of the initial rent to owner, the actual amount of the initial rent to owner is established at the beginning of the contract term. During the tem of the contract, the rent to owner is redetermined at the owner’s request in accordance with program requirements, and at such time that there is a ten percent or greater decrease in the published fair market rent. 17-VIII.B. RENT LIMITS [24 CFR 983.301] Except for certain tax credit units (discussed below), the rent to owner must not exceed the lowest of the following amounts: • An amount determined by the PHA, not to exceed 110 percent of the applicable fair market rent (FMR) (or any HUD-approved exception payment standard) for the unit bedroom size minus any utility allowance; • The reasonable rent; or • The rent requested by the owner. Certain Tax Credit Units [24 CFR 983.301(c), FR Notice 11/24/08] For certain tax credit units, the rent limits are determined differently than for other PBV units. These different limits apply to contract units that meet all of the following criteria: • The contract unit receives a low-income housing tax credit under the Internal Revenue Code of 1986; • The contract unit is not located in a qualified census tract; • There are comparable tax credit units of the same bedroom size as the contract unit in the same building, and the comparable tax credit units do not have any form of rental assistance other than the tax credit; and • The tax credit rent exceeds a PHA-determined amount (not to exceed 110 percent of the FMR or any approved exception payment standard); For contract units that meet all of these criteria, the rent to owner must not exceed the lowest of: • The tax credit rent minus any utility allowance; • The reasonable rent; or • The rent requested by the owner. 12.A.b Packet Pg. 1879 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-44 However, PHAs are permitted to use the higher Section 8 rent for a tax credit unit if the tax credit rent is less than the amount that would be permitted under Section 8. In these cases, Section 8 rent reasonableness requirements must continue to be met. Definitions A qualified census tract is any census tract (or equivalent geographic area defined by the Bureau of the Census) in which at least 50 percent of households have an income of less than 60 percent of Area Median Gross Income (AMGI), or where the poverty rate is at least 25 percent and where the census tract is designated as a qualified census tract by HUD. Tax credit rent is the rent charged for comparable units of the same bedroom size in the building that also receive the low-income housing tax credit but do not have any additional rental assistance (e.g., tenant-based voucher assistance). Use of FMRs, Exception Payment Standards, and Utility Allowances [24 CFR 983.301(f)] When determining the initial rent to owner, the PHA must use the most recently published FMR in effect and the utility allowance schedule in effect at execution of th e HAP contract. When redetermining the rent to owner, the PHA must use the most recently published FMR and the utility allowance schedule in effect at the time of redetermination. At its discretion, the PHA may for initial rent, use the amounts in effect at any time during the 30-day period immediately before the beginning date of the HAP contract, or for redeterminations of rent, the 30-day period immediately before the redetermination date. Any HUD-approved exception payment standard amount under the tenant-based voucher program also applies to the project-based voucher program. HUD will not approve a different exception payment stand amount for use in the PBV program. Likewise, the PHA may not establish or apply different utility allowance amounts for the PBV program. The same utility allowance schedule applies to both the tenant-based and project-based voucher programs. PHA Policy Upon written request by the owner, the PHA will consider using the FMR or utility allowances in effect during the 30-day period before the start date of the HAP, or redetermination of rent. The owner must explain the need to use the previous FMRs or utility allowances and include documentation in support of the request. The PHA will review and make a decision based on the circumstances and merit of each request. In addition to considering a written request from an owner, the PHA may decide to use the FMR or utility allowances in effect during the 30-day period before the start date of the contract, or redetermination of rent, if the PHA determines it is necessary due to PHA budgetary constraints. Use of Small Area FMRs (SAFMRs) [24 CFR 888.113(h)] While small area FMRs (SAFMRs) do not apply to PBV projects, PHAs that operate a tenant-based program under SAFMRs may apply SAFMRs to all future PBV HAP contracts. If the PHA adopts this policy, it must apply to all future PBV projects and the PHA’s entire jurisdiction. The PHA and owner may not 12.A.b Packet Pg. 1880 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-45 subsequently choose to revert back to use of the FMRs once the SAFMRs have been adopted, even if the PHA subsequently changes its policy. Further, the PHA may apply SAFMRs to current PBV projects where the notice of owner selection was made on or before the effective date of PHA implementation, provided the owner is willing to mutually agree to doing so and the application is prospective. The PHA and owner may not subsequently choose to revert back to use of the FMRs once the SAFMRs have been adopted, even if the PHA subsequently changes its policy. If rents increase as a result of the use of SAFM Rs, the rent increase may not be effective until the first anniversary of the HAP contract. PHA Policy The PHA will not apply SAFMRs to the PHA’s PBV program. Redetermination of Rent [24 CFR 983.302] The PHA must redetermine the rent to owner upon the owner’s request or when there is a 10 percent or greater decrease in the published FMR. Rent Increase If an owner wishes to request an increase in the rent to owner from the PHA, it must be requested at the annual anniversary of the contract (see Section 17-V.D.). The request must be in writing and in the form and manner required by the PHA. The PHA may only make rent increases in accordance with the rent limits described previously. There are no provisions in the PBV program for special adjustments (e.g., adjustments that reflect increases in the actual and necessary expenses of owning and maintaining the units which have resulted from substantial general increases in real property taxes, utility rates, or similar costs). PHA Policy An owner’s request for a rent increase must be submitted to the PHA 60 days prior to the anniversary date of the contract and must include the new rent amount the owner is proposing. The PHA may not approve and the owner may not receive any increase of rent to owner until and unless the owner has complied with requirements of the contract, including compliance with HQS. The owner may not receive any retroactive increase of rent for any period of noncompliance. Rent Decrease If there is a decrease in the rent to owner, as established in accordance with program requirements such as a change in the FMR or exception payment standard, or reasonable rent amount, the rent to owner must be decreased regardless of whether the owner requested a rent adjustment. Notice of Rent Change The rent to owner is redetermined by written notice by the PHA to the owner specifying the amount of the redetermined rent. The PHA notice of rent adjustment constitutes an amendment of the rent to owner specified in the contract. The adjusted amount of rent to owner applies for the period of 12 calendar months from the annual anniversary of the contract. 12.A.b Packet Pg. 1881 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-46 PHA Policy The PHA will provide the owner with at least 30 days written notice of any change in the amount of rent to owner. PHA-Owned Units [24 CFR 983.301(g)] For PHA-owned PBV units, the initial rent to owner and the annual redetermination of rent at the anniversary of the contract are determined by the independent entity approved by HUD. The PHA must use the rent to owner established by the independent ent ity. 17-VIII.C. REASONABLE RENT [24 CFR 983.303] At the time the initial rent is established and all times during the term of the contract, the rent to owner for a contract unit may not exceed the reasonable rent for the unit as determined by the PHA. When Rent Reasonable Determinations Are Required The PHA must redetermine the reasonable rent for a unit receiving PBV assistance whenever any of the following occur: • There is a 10 percent or greater decrease in the published FMR in effect 60 days before the contract anniversary (for the unit sizes specified in the contract) as compared with the FMR that was in effect one year before the contract anniversary date; • The PHA approves a change in the allocation of responsibility for utilities between the owner and the tenant; • The contract is amended to substitute a different contract unit in the same building; or • There is any other change that may substantially affect the reasonable rent. How to Determine Reasonable Rent The reasonable rent of a unit receiving PBV assistance must be determined by comparison to rent for other comparable unassisted units. When making this determination, the PHA must consider factors that affect market rent. Such factors include the location, quality, size, type and age of the unit, as well as the amenities, housing services maintenance, and utilities to be provided by the owner. Comparability Analysis For each unit, the comparability analysis must use at least three comparable units in the private unassisted market. This may include units in the premises or project that is receiving project-based assistance. The analysis must show how the reasonable rent was determined, including major differences between the contract units and comparable unassisted units, and must be retained by the PHA. The comparability analysis may be performed by PHA staff or by another qualified person or entity. Those who conduct these analyses or are involved in determining the housing assistance payment based on the analyses may not have any direct or indirect interest in the property. 12.A.b Packet Pg. 1882 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-47 PHA-Owned Units For PHA-owned units, the amount of the reasonable rent must be determined by an independent agency approved by HUD in accordance with PBV program requirements. The independent entity must provide a copy of the determination of reasonable rent for PHA-owned units to the PHA and to the HUD field office where the project is located. Owner Certification of Reasonable Rent By accepting each monthly housing assistance payment, the owner certifies that the rent to owner is not more than rent charged by the owner for other comparable unassisted units in the premises. At any time, the PHA may require the owner to submit information on rents charged by the owner for other units in the premises or elsewhere. 17-VIII.D. EFFECT OF OTHER SUBSIDY AND RENT CONTROL In addition to the rent limits discussed in Section 17-VIII.B above, other restrictions may limit the amount of rent to owner in a PBV unit. In addition, certain types of subsidized housing are not even eligible to receive PBV assistance (see Section 17-II.D). Other Subsidy [24 CFR 983.304] At its discretion, a PHA may reduce the initial rent to owner because of other governmental subsidies, including grants and other subsidized financing. For units receiving assistance under the HOME program, rents may not exceed rent limits as required by that program. For units in any of the following types of federally subsidized projects, the rent to owner may not exceed the subsidized rent (basic rent) or tax credit rent as determined in accordance with requirements for the applicable federal program: • An insured or non-insured Section 236 project; • A formerly insured or non-insured Section 236 project that continues to receive Interest Reduction Payment following a decoupling action; • A Section 221(d)(3) below market interest rate (BMIR) project; • A Section 515 project of the Rural Housing Service; • Any other type of federally subsidized project specified by HUD. Combining Subsidy Rent to owner may not exceed any limitation required to comply with HUD subsidy layering requirements. 12.A.b Packet Pg. 1883 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-48 Rent Control [24 CFR 983.305] In addition to the rent limits set by PBV program regulations, the amount of rent to owner may also be subject to rent control or other limits under local, state, or federal law. 12.A.b Packet Pg. 1884 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-49 PART IX: PAYMENTS TO OWNER 17-IX.A. HOUSING ASSISTANCE PAYMENTS [24 CFR 983.351] During the term of the contract, the PHA must make housing assistance payments to the owner in accordance with the terms of the contract. During the term of the contract, payments must be made for each month that a contract unit complies with HQS and is leased to and occupied by an eligible household. The housing assistance payment must be paid to the owner on or about the first day of the month for which payment is due, unless the owner and the PHA agree on a later date. Except for discretionary vacancy payments, the PHA may not make any housing assistance payment to the owner for any month after the month when the household moves out of the unit (even if household goods or property are left in the unit). The amount of the housing assistance payment by the PHA is the rent to owner minus the tenant rent (total tenant payment minus the utility allowance). In order to receive housing assistance payments, the owner must comply w ith all provisions of the contract. Unless the owner complies with all provisions of the contract, the owner does not have a right to receive housing assistance payments. 17-IX.B. VACANCY PAYMENTS [24 CFR 983.352] If an assisted household moves out of the unit, the owner may keep the housing assistance payment for the calendar month when the household moves out. However, the owner may not keep the payment if the PHA determines that the vacancy is the owner’s fault. PHA Policy If the PHA determines that the owner is responsible for a vacancy and, as a result, is not entitled to the keep the housing assistance payment, the PHA will notify the landlord of the amount of housing assistance payment that the owner must repay. The PHA will require the owner to repa y the amount owed in accordance with the policies in Section 16-IV.B. At the discretion of the PHA, the contract may provide for vacancy payments to the owner. The PHA may only make vacancy payments if: • The owner gives the PHA prompt, written notice certifying that the household has vacated the unit and identifies the date when the household moved out (to the best of the owner’s knowledge); • The owner certifies that the vacancy is not the fault of the owner and that the unit was vacant during the period for which payment is claimed; • The owner certifies that it has taken every reasonable action to minimize the likelihood and length of vacancy; and • The owner provides any additional information required and requested by the PHA to verify that the owner is entitled to the vacancy payment. The owner must submit a request for vacancy payments in the form and manner required by the PHA and must provide any information or substantiation required by the PHA to determine the amount of any vacancy payment. 12.A.b Packet Pg. 1885 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-50 PHA Policy If an owner’s contract calls for vacancy payments to be made, and the owner wishes to receive vacancy payments, the owner must have properly notified the PHA of the vacancy in accordance with the policy in Section 17-VI.F. regarding filling vacancies. In order for a vacancy payment request to be considered, it must be made within 10 business days of the end of the period for which the owner is requesting the vacancy payment. The request must include the required owner certifications and the PHA may require the owner to provide documentation to support the request. If the owner does not provide the information requested by the PHA within 10 business days of the PHA’s request, no vacancy payments will be made. 17-IX.C. TENANT RENT TO OWNER [24 CFR 983.353] The tenant rent is the portion of the rent to owner paid by the household. The amount of tenant rent is determined by the PHA in accordance with HUD requirements. Any changes in the amount of tenant rent will be effective on the date stated in the PHA notice to the household and owner. The household is responsible for paying the tenant rent (total tenant payment minus the utility allowance). The amount of the tenant rent determined by the PHA is the maximum amount the owner may charge the household for rental of a contract unit. The tenant rent covers all housing services, maintenance, equipment, and utilities to be provided by the owner. The owner may not demand or accept any rent payment from the tenant in excess of the tenant rent as determined by the PHA. The owner must immediately return any excess payment to the tenant. Tenant and PHA Responsibilities The household is not responsible for the portion of rent to owner that is covered by the housing assistance payment and the owner may not terminate the tenancy of an assisted household for nonpayment by the PHA. Likewise, the PHA is responsible only for making the housing assistance payment to the owner in accordance with the contract. The PHA is not responsible for paying tenant rent, or any other claim by the owner, including damage to the unit. The PHA may not use housing assistance payments or other program funds (including administrative fee reserves) to pay any part of the tenant rent or other claim by the owner. Utility Reimbursements If the amount of the utility allowance exceeds the total tenant payment, the PHA must pay the amount of such excess to the tenant as a reimbursement for tenant-paid utilities, and the tenant rent to the owner must be zero. The PHA may pay the utility reimbursement directly to the household or to the utility supplier on behalf of the household. If the PHA chooses to pay the utility supplier directly, the PHA must notify the household of the amount paid to the utility supplier. 12.A.b Packet Pg. 1886 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates, Inc. Unlimited copies may be made for internal use. Page 17-51 PHA Policy The PHA will make utility reimbursements to the household. 17-IX.D. OTHER FEES AND CHARGES [24 CFR 983.354] Meals and Supportive Services With the exception of PBV assistance in assisted living developments, the owner may not require the tenant to pay charges for meals or supportive services. Non-payment of such charges is not grounds for termination of tenancy. In assisted living developments receiving PBV assistance, the owner may charge for meals or supportive services. These charges may not be included in the ren t to owner, nor may the value of meals and supportive services be included in the calculation of the reasonable rent. However, non-payment of such charges is grounds for termination of the lease by the owner in an assisted living development. Other Charges by Owner The owner may not charge extra amounts for items customarily included in rent in the locality or provided at no additional cost to unsubsidiz ed tenants in the premises. 12.A.b Packet Pg. 1887 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-1 CHAPTER 18: CONTINUUM OF CARE (COC) PART I: OVERVIEW OF THE COC PROGRAM 18-I.A. OVERVIEW The Continuum of Care (CoC) Program is a McKinney-Vento Homeless Assistance Program administered by HUD. It is designed to assist individuals (including unaccompanied youth) and households experiencing homelessness and to provide the services needed to help such individuals move into supportive and permanent housing with the goal of long-term stability. More broadly, the program is designed to promote community-wide planning and strategic use of resources to address homelessness; improve coordination and integration with mainstream resources and other programs targeted to people experiencing homelessness; improve data collection and performance measurement; and allow each community to tailor its program to the particular strengths and challenges within that community. The Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009 (HEARTH Act) amended the McKinney-Vento Homeless Assistance Act. Among other changes, the HEARTH Act consolidated the three separate McKinney-Vento homeless assistance programs (Supportive Housing program, Shelter Plus Care program, and Section 8 Moderate Rehabilitation Single Room Occupancy (SRO) program) into a single grant program known as the Continuum of Care (CoC) program. The CoC interim rule was published by HUD in the Federal Register on July 31, 2012 and was updated on April 1, 2017 . The rule now governs the CoC program. CoC funding is subject to federal funding availability and is a competitive annual process 18-I.B. PURPOSE [24 CFR 578.1] The CoC program is authorized by subtitle C of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11381-11389). The program is designed to assist sheltered and unsheltered homeless people by providing the housing and/or services needed to help individuals move into supportive permanent housing, with the goal of long-term stability. According to 24 CFR Part 578.1(b), the primary purpose of the CoC program is to: • Promote community-wide commitment to the goal of ending homelessness. • Provide funding for efforts by nonprofit providers, states, and local governments to re- house homeless individuals and households rapidly while minimizing the trauma and dislocation caused to homeless individuals, households, and communities as a consequence of homelessness. • Promote access to and effective use of mainstream programs by homeless individuals and households. 12.A.b Packet Pg. 1888 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-2 • Optimize self-sufficiency among individuals and households experiencing homelessness. 18-I.C. PROGRAM COMPONENTS [24 CFR 578.37] The CoC program can be used to fund five program components: permanent housing; transitional housing; supportive services only; Homeless Management Information System (HMIS); and, in some cases, homelessness prevention. PHA Policy The PHA receives funds for the permanent housing component only. The PHA provides permanent supportive housing assistance through two different models of rental assistance: Scattered site housing assistance: The PHA issues an eligible household a voucher, based on availability, and the household selects an apartment of its choice within the City of Santa Monica geographic area. If the household moves out of the apartment, the contract with the owner ends and the household can move with continued assistance to another apartment. Site specific housing assistance: The PHA refers an eligible household to a specific property run by a nonprofit organization, based on their service needs and availability. If the household no longer requires site-specific housing, and wishes to move, the household must fill out a move request or apply for the CoC graduate program (see Section 18X.D.). 18-I.D. ELIGIBLE COSTS Rental Assistance [24 CFR 578.51] Grant funds may be used for rental assistance for homeless individuals and households. Rental assistance cannot be provided to a program participant who is already receiving rental assistance or living in a housing unit receiving rental assistance or operating assistance t hrough other federal, state, or local sources. The PHA is awarded HUD funds for CoC program rental assistance to serve individuals and families who meet the DedicatedPLUS definition and where the applicant or at least one member of the household has been diagnosed with at least one of the following: • Chronic physical illness or disability • Substance use disorder • Serious mental illness 12.A.b Packet Pg. 1889 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-3 • Developmental disability (as defined in Section 102 of the Developmental Disabilities Assistance Bill of Rights Act of 2000 (42 U.S.C. 15002) • Post-traumatic stress disorder • Cognitive impairments resulting from brain injury Definition of DedicatedPLUS per HUD Notice of Funding Availability for 2017: Individuals and households who are: 1. Chronically homeless as defined in 24 CFR 578.3: a. An individual who: i. Is homeless and lives in a place not meant for human habitation, a safe haven, or an emergency shelter; and ii. Has been homeless and living or residing in a place not meant for human habitation, a safe haven, or an emergency shelter continuously for at least one year or on at least four separate occasion s in the last three years; and iii. Can be diagnosed with one or more of the following conditions: substance use disorder, serious mental illness, developmental disability (as defined in section 102 of the Developmental Disabilities Assistance Bill of Rights Act of 2000 (42 U.S.C. 15002)), post-traumatic stress disorder, cognitive impairments resulting from brain injury, or chronic physical illness or disability; b. An individual who: i. Has been residing in an institutional care facility, including a jail, substance abuse or mental health treatment facility, hospital, or other similar facility, for fewer than 90 days and met all of the criteria in paragraph 1 of this definition, before entering that facility; or ii. A household with an adult head of household (or if there is no adult in the household, a minor head of household) who meets all of the criteria in paragraph 1 of this definition, including a household whose composition has fluctuated while the head of household has been homeless. 2. Residing in a transitional housing project that will be eliminated and meets the definition of chronically homeless in effect at the time in which the individual or household entered the transitional housing project; 3. Was experiencing chronic homelessness, had been placed in permanent housing within the last year, but was unable to maintain the housing, and as a result currently residing in a place not meant for human habitation, emergency shelter, or safe haven; 12.A.b Packet Pg. 1890 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-4 4. Residing in transitional housing funded by a Joint Transitional Housing and Permanent Housing Rapid Re-Housing component project and who were experiencing chronic homelessness prior to entering the project; 5. Residing and has resided in a place not meant for human habitation, a safe haven, or emergency shelter for at least 12 months in the last three years, but has not done so on four separate occasions; or 6. Receiving assistance through a Department of Veterans Affairs (VA)-funded homeless assistance program and met one of the above criteria at initial intake to the VA's homeless assistance system. 18-I.E. SUPPORTIVE SERVICES The City of Santa Monica Community & Cultural Services Department, Human Services Division administers supportive services funds through its Human Services Grants Program (HSGP). Funding awarded through the HSGP comes from multiple sources both locally and nationally, including the City’s General Fund, City development agreements, Los Angeles C ounty Proposition A, and federal entitlement (CDBG) and federal competitive grants. The City of Santa Monica enters into contractual agreements with non-profit agencies that provide services to applicants and participants of the CoC program. These agencies provide the following eligible types of supportive services: • Annual assessment of service needs • Assistance with moving costs • Case management • Child care operations or vouchers • Education services • Employment assistance and job training • Food (meals or groceries for program participants) • Housing search and counseling • Legal services • Life skills training • Outpatient mental health services • Outpatient health services • Outreach services • Outpatient substance abuse treatment services • Transportation • Utility deposits 18-I.F. MATCH REQUIREMENT [24 CFR 578.73] 12.A.b Packet Pg. 1891 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-5 The PHA must match all grant funds, except for leasing funds, with no less than 25 percent of funds or in-kind contributions from other sources. . The PHA may use the value of any real property, equipment, goods, or services contributed to the project as match. Before grant execution, services to be provided by a third party must be documented by a contractual agreement between the PHA and the third party that will provide the services. Services provided by individuals must be valued at rates consistent with those ordinarily paid for similar work in the PHA. If the PHA does not have employees performing similar work, the rates must be consistent with those ordinarily paid by other employers for similar work in the same labor market. The contractual agreement must establish the unconditional commitment, except for selection to receive a grant, by the third party to provide the services, the specific service to be provided, the profession of the persons providing the service, and the hourly cost of the service to be provided. During the term of the grant, the PHA must keep and make available, for inspection, records documenting the service hours provided. All CoC applicants must be registered on the Santa Monica Service Registry prior to applying for the program. The City of Santa Monica will only provide matching funds for those program participants who are recorded on the Santa Monica Service Registry. The PHA will calculate and document services provided to CoC participants to meet the matching service dollars requirement of the grants based on the Human Services Division grant and reporting in the Homeless Management Information System (HMIS). Human Services will provide the PHA with annual reports documenting the supportive services match provided by the referral agencies and any other service providers in the community. The match reports will contain information relevant to services and in-kind match provided as the service provider’s contribution to the project. Match reports are due to the PHA no later than one month after the end of the grant’s operating year, May 31. Referral agencies must maintain individual match records on every CoC program participant and must submit the summary report to the PHA. Referral agencies must utilize HMIS for intake, service provision, and program exit data collection as required by HUD and the City of Santa Monica Human Services Division. The Human Services Division has developed procedures and reporting formats to collect and compile this information and oversee the HMIS system. 18-I.G. RENEWALS [24 CFR 578.33] Awards made under this part and title IV of the Act, as in effect before August 30, 2012 (the Supportive Housing Program and the Shelter Plus Care program), m ay be renewed to continue 12.A.b Packet Pg. 1892 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-6 ongoing leasing, operations, supportive services, rental assistan ce, HMIS, and administration beyond the initial funding period. To be considered for funding, recipients must submit a request in a form specified by HUD, must meet the requirements of this part, and must submit the request within the time frame established by HUD. Renewals of rental assistance may be for up to one year. 18-I.H. COC POLICIES AND PROCEDURES The PHA receives annual funding for the CoC program as a member of The Los Angeles Housing Services Authority (LAHSA) Continuum of Care. It is the CoC coordinating body that determines whether or not a CoC grant application is eligible to be submitted to HUD for renewal consistent with HUD criteria and priorities established countywide. [24 CRF 578.9 (a) (3)] LAHSA CoC provides for the consultation and participation of not less than one homeless or formally homeless individual to serve on the board of directors. [24 CFR 578.5 (b) (2)] The Santa Monica Housing Commission, which serves as the advisory board for the PHA, reviews and provides input on policies and procedures. The Santa Monica City Council, which serves as the Board of Directors for the PHA, adopts policies and procedures annually. The CoC program policies and procedures are modeled similarly to the Section 8 Housing Choice Voucher (HCV) program, except as otherwise noted in this document. If there is a conflict between program regulations and th is plan, the program regulations have precedence. PART II: FAIR HOUSING AND EQUAL OPPORTUNITY (Refer to THE PHA Administrative Plan Chapter 2, pages 2.2 to 2.19) 12.A.b Packet Pg. 1893 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-7 PART III: ELIGIBILITY (Refer to THE PHA Administrative Plan, Chapter 3, pages 3.2 to 3.37) 18-III.A. EVIDENCE OF ELIGIBILITY In addition to the evidence of eligibility required under the Section 8 HCV program, an applicant must provide evidence that they meet the definition of the DedicatedPLUS and at least one member of the household (can be a child) has a disabling condition at the time of application. Evidence of Meeting DedicatedPLUS Definition: Evidence of an individual or household’s current living situation as well as prior living situation may be documented, in the following order of priority, by: 1. Third party verification such as a letter from a shelter verifying applicant’s stay there; 2. A written referral by housing or service provider; 3. A written documentation of observation by an outreach worker; 4. Certification by the household seeking assistance (only if above documents are not obtainable) that demonstrates that the individual or head of household is currently homeless and living in a place not meant for human habitation, in an emergency shelter, o r a safe haven. Evidence of Applicant’s Disabling Condition Evidence is required of diagnosis with one or more of the following conditions: substance use disorder, serious mental illness, developmental disability (as defined in Section 102 of the Developmental Disabilities Assistance Bill of Rights Act of 2000 (42 U.S.C. 15002), post- traumatic stress disorder, cognitive impairments resulting from brain injury, or chronic physical illness or disability. Evidence of this condition must include one of the following: 1. Written verification of the condition from a professional licensed by the sta te to diagnose and treat the disability and his or her certification that the disability is expected to be long-continuing or of indefinite duration and substantially impedes the individual’s ability to live independently. 2. Written verification from the Social Security Administration; 3. Copies of a disability check (e.g., Social Security Disability Insurance check or Veterans Disability Compensation); 4. Intake staff (or referral staff) observation that is confirmed by written verification of the condition from a professional licensed by the state to diagnose and treat the condition 12.A.b Packet Pg. 1894 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-8 that is confirmed no later than 45 days of th e application for assistance and accompanied with one of the types of evidence above; or other documentation approved by HUD. 18-III.B. DENIAL OF ASSISTANCE (Refer to THE PHA Administrative Plan Chapter 3, pages 3.20 to 3.37) An applicant will be denied participation in the CoC program if the applicant does not meet: 1. The DedicatedPLUS definition established by HUD 2. The disabling condition definition These reasons for denial constitute CoC program specific admission criteria in addition to the HCV program requirements that must also be met. Participation will also be denied if the CoC applicant does not provide: 1. Information that the PHA or HUD determines is necessary in the administration of the program 2. Complete and true information and it is discovered that the applicant does not meet eligibility requirements 18-III.C. CRIMINAL BACKGROUND CHECKS [24 CFR 982.553 (a)(2)(i)] CoC applicants will be required to undergo criminal background check to determine if applicant or household member is a lifetime registered sex offender. Lifetime registered sex offenders will not be admitted into the CoC program. A criminal background check will be performed for head-of-household and all adult household members, and live-in aides fourteen years of age and older. 12.A.b Packet Pg. 1895 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-9 PART IV: APPLICATIONS, WAITLIST AND TENANT SELECTION 18-IV.A. APPLYING FOR ASSISTANCE Any individual or household that wishes to receive CoC assistance must apply for admission to the program. Assistance is strictly restricted to applicants who meet the definition of DedicatedPLUS on the Santa Monica Service Registry who became homeless in Santa Monica. The CoC applicant or household must be referred by one of the sponsor agencies currently operating under contract with the City of Santa Monica Human Services Division. Referral agencies utilize the Coordinated Entry System (CES) and the Vulnerability Index-Service Prioritization Decision Assistance Tool (VI-SPDAT) to refer applicants to the PHA based on their severity of needs. 18-IV.B. ACCESSIBILITY OF THE APPLICATION PROCESS Interested applicants must meet with a case manager at one of the below listed locations to begin the application process. The referring agencies must conduct VI-SPDAT survey, place individuals into CES, and register them with the Santa Monica Service Registry prior to referring them to the PHA for the CoC program. The People Concern Access Center 1453 16th Street Santa Monica, CA 90404 (310) 264-2646 Step Up on Second 1328 2nd Street Santa Monica, CA 90401 (310) 394-6889 St. Joseph Center 12420 Venice Blvd., Suite 200 Los Angeles, CA 90066 (310) 577-5510 18-IV.C. SCREENING AND ASSESSMENT The PHA requires the three listed referral agencies to screen applicants for eligibility and to submit to the PHA completed documents included in the CoC Application Packet. 12.A.b Packet Pg. 1896 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-10 Only completed packets with all supporting documents will be accepted. Any incomplete applications will be returned to the referral agency and will need to be resubmitted once completed. Applicants will not be placed on the waitlist or issued a voucher until a fully completed application is received. Completed documents will be used by the PHA to: 1) Determine applicant’s eligibility, 2) Prioritize applicants, and 3) Notify applicants of their obligations as a CoC participant and provide informational materials. Documents included in the CoC Application Packet are listed below: • Agency Referral Letter • Homeless and At Risk of Homelessness Certification Form • Certification of Disabling Condition Form (completed by licensed physician) • Applicant/Tenant Information Disclosure Certification and Application Form • Santa Monica Housing Authority Rental Assistance Program Household Obligations Form • Declaration of Citizen/Lawful Resident Status Form • Certification for Divestiture of Assets • Sex Offender and Criminal History/Disclosure Form • Employment/Bank Account/Income Tax Self-Certification Form • Authorization for Release of Information Forms for the PHA and HUD • Proof of the VI-SPDAT Score • Proof of registration on the Santa Monica Service Registry All income verification documents must be current within the last 60 days. (PIH Notice 2017-12) Case Managers will conduct a thorough screening and assessment of each individual’s care needs. The screening will include assessment of the individual’s ability to live independently and willingness to participate in supportive services program. In addition, the individual must not present a danger to himself/herself or others and the individual must not require a higher level of care than what is offered by the voucher program. Based on the applicant’s needs, case managers will recommend applicants for either a scattered site housing or a site specific housing voucher. 18-IV.D. TENANT SELECTION Applicants will be referred and selected based on their history of homelessness and severity of service needs. Service needs are identified and verified through the use of the following 12.A.b Packet Pg. 1897 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-11 standardized assessment tools: Vulnerability Index (VI) and the Service Prioritization Decision Assistance Tool (SPDAT). The determination is not based on a specific diagnosis or disability type, but only on the severity of needs of the individual. 18-IV.E. ORDER OF PRIORITY FOR PLACEMENT ON THE WAITLIST The PHA will prioritize applicants on the waitlist based on their VI-SPDAT score and the date and time their complete application is received by the PHA. 18-IV.F. PLACEMENT ON THE WAITLIST A separate waitlist is maintained for the CoC Program. The CoC waitlist will be continuously open for applications and eligibility criteria will be limited to requirements of the CoC program as described. Eligible for Placement on the Waitlist If the PHA determines the CoC applicant is eligible, the applicant’s name will be placed on the waitlist. The PHA will notify the referral agency of acceptance. Ineligible for Placement on the Waitlist If the PHA can determine from the information provided that an applicant is ineligible, the applicant will not be placed on the waitlist. Where an applicant is determined to be ineligible, the PHA will inform the referral agency of the ineligibility determination. Unavailability of Site Specific Housing Applicants will remain on the CoC waitlist until an apartment becomes available. Applicants can also elect to apply for scattered site housing (if available). Applicants for site specific housing who accept a scattered site housing voucher due to unavailability of site specific housing at the time of application may request to remain on the CoC waitlist for consideration of the next available site specific housing opportunity. Site specific housing applicants who request to remain on the waitlist after they have already moved into a scattered site apartment must be able to negotiate an agreement with their landlord to terminate their existing lease, within 30 days, at the time site specific housing becomes available. 12.A.b Packet Pg. 1898 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-12 Unavailability of Scattered Site Housing Applicants who applied for a scattered site housing voucher can be offered site specific housing if no scattered site vouchers are available at the time of application and there are no site specific housing applicants on the waitlist at the time an apartment becomes available. 18-IV.G. NOTIFICATION OF SELECTION When a CoC applicant has been selected from the waitlist, the PHA will notify in writing the referral agency of selection and of the initial briefing date. If the selected applicant is no longer interested or is unable to participate in the CoC program, the individual will be removed from the waitlist and will have to be re-referred at a later date if needed. 12.A.b Packet Pg. 1899 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-13 PART V: BRIEFINGS AND VOUCHER ISSUANCE (Refer to THE PHA Administrative Plan, Chapter 5, pages 5.2 to 5.14) INITIAL BRIEFING AND VOUCHER ISSUANCE The assigned case manager and the applicant, together with all adult members of the household must be present for the initial briefing and voucher issuance. 18-V.A. SCATTERED SITE VOUCHER ISSUANCE/REQUEST FOR TENANCY APPROVAL (RTA) Upon completion of the initial briefing, a CoC voucher will be issued. CoC program participants have up to 180 days to search for an apartment within the Santa Monica geographic area and submit an RTA to the PHA upon finding a suitable apartment. If an extension is needed, one may be requested. 18-V.B. SITE SPECIFIC HOUSING VOUCHER ISSUANCE/ REQUEST FOR TENANCY APPROVAL (RTA) Upon completion of the initial briefing, the PHA will refer the applicant to the property management at one of the non-profit housing locations. The management company will conduct a tenant screening for all applicants. If the applicant is approved, an RTA must be completed and returned to the PHA. If the applicant is not approved by the property management company, the applicant and case manager will contact the PHA for further guidance. 12.A.b Packet Pg. 1900 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-14 PART VI: INCOME AND SUBSIDY DETERMINATIONS [24 CFR Part 5, Subparts E and F; 24 CFR 982] (Refer to THE PHA Administrative Plan, Chapter 6, pages6.2 to 6.57) CoC program funds are contracted based on 100% of the Fair Market Rents published by HUD for the Los Angeles County area. RENT AT LEASE UP: CoC voucher holders may rent units at or below the Fair Market Rent (FMR) for the area. Santa Monica is part of Los Angeles County and the Los Angeles County FMRs apply. However, since the SMHA has been approved by HUD for an exception payment standard, which is above the Los Angeles County FMRs, the CoC participants may rent apartments at or below the SMHA payment standard at lease up, as long as the rent amount meets the rent reasonableness requirement. 18-VI.A. TENANT RENT PORTION [24 CFR 578.77(b)] Program participants are required to pay a portion of their rent if they are receiving CoC program rental assistance, unless they have no income. Participant rent must be equal to the highest of: • 30 percent of household’s monthly adjusted income (the tenant’s portion of the rent cannot exceed 30 percent of the household’s monthly adjusted income at any time) • 10 percent of household’s monthly gross income; or • The portion of the household’s welfare assistance, if any, that is designated for the payment of rent. The following is not applicable to the CoC program: • Earned Income Disallowance (EID) [24 CFR 5.617(a)] • Minimum Rent ($50) [24 CFR 578.77(b)] 12.A.b Packet Pg. 1901 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-15 PART VII: VERIFICATION [24 CFR 982.516, 24 CFR 982.551, 24 CFR 5.230] (Refer to THE PHA Administrative Plan, Chapter 7, pages7.2 to 7.30) The PHA will follow the verification process and requirements for acceptable documents as outlined in Chapter 7 of the HCV Administrative Plan with the exception of the following: • Up-front Income Verification (UIV) using HUD’s Enterprise Income Verification (EIV) • Up-front Income Verification (UIV) using a non-HUD system 12.A.b Packet Pg. 1902 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-16 PART VIII: HOUSING QUALITY STANDARDS AND RENT REASONABLENESS DETERMINATIONS [24 CFR 982 Subpart I and 24 CFR 982.507] (Refer to THE PHA Administrative Plan, Chapter 8, pages 8.2 to 8.27) 18-VIII.A. HOUSING QUALITY STANDARDS [24 CFR 578.75(b)] Housing leased with CoC program funds, or for which rental assistance payments are made with CoC program funds, must meet the applicable housing quality standards (HQS) under 24 CFR 982.401. Before any assistance will be provided on behalf of a program participant, the recipient, or subrecipient, must physically inspect each unit to assure that the unit meets HQS. Assistance will not be provided for units that fail to meet HQS, unless the owner corrects any deficiencies within 30 days from the date of the initial inspection and the recipient or subrecipient verifies that all deficiencies have been corrected. 18-VIII.B. RENT REASONABLENESS [24 CFR 578.51(g)] HUD will only provide rental assistance for a unit if the rent is reasonable. The recipient or subrecipient must determine whether the rent charged for the unit receiving rental assistance is reasonable in relation to rents being charged for comparable unassisted units, taking into account the location, size, type, quality, amenities, facilities, and management and maintenance of each unit. Reasonable rent must not exceed rents currently being charged by the same owner for comparable unassisted units. The maximum allowable contract rent amount is capped at the exception payment standard for the PHA Section 8 HCV program established in 2016. Rent increase requests shall be timed with a tenant’s annual reexamination. Only one increase in a 12-month period is allowed in the amount of Rent Control-approved annual percentage adjustment, subject to CoC funding availability. 12.A.b Packet Pg. 1903 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-17 PART IX: GENERAL LEASING POLICIES (Refer to THE PHA Administrative Plan, Chapter 9, pages9.1 to 9.12) When rental assistance funds are used to pay rent, the lease must be between the program participant and the landlord. Each program participant, on whose behalf rental assistance payments are made, must pay a contribution toward housing costs consistent with the requirements of the CoC interim rule. The landlord and participant are required to execute a lease to comply with the CoC rental assistance policies. 18-IX.A. PAYMENT FOR A VACATED UNIT [24 CFR 578.51(i)] If a unit assisted under this section is vacated before the expiration of the lease, the assistance for the unit may continue for a maximum of 30 days from the end of the month in which the unit was vacated, unless occupied by another eligible person. No additional assistance will be paid until the unit is occupied by another eligible person. 18-IX.C. PAYMENT FOR TENANT CAUSED DAMAGES [24 CFR 578.51(j)] THE PHA may use grant funds in an amount not to exceed one month’s rent to pay for any damage to housing due to the action of a program participant. This shall be a one-time cost per participant, incurred at the time a participant exists a housing unit. 18-IX.D. LIMITATIONS ON COC ASSISTANCE Exclusion Income Disability (EID) [24 CFR 5.617(a)] CoC participants are not eligible for EID. Change of Head of Household (HOH) [24 CFR 578.75 (i)] For permanent supportive housing projects, surviving members of any household who were living in a unit assisted under this part at the time of the qualifying member's death, long-term incarceration, or long-term institutionalization, have the right to rental assistance under this section until the expiration of the lease in effect at the time of the qualifying member's death, long-term incarceration, or long-term institutionalization. If the qualifying tenant is terminated for non-compliance, the remaining household members will not be eligible to continue in the CoC program. 12.A.b Packet Pg. 1904 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-18 PART X: MOVING WITH CONTINUED ASSISTANCE AND PORTABILITY (Refer to THE PHA Administrative Plan, Chapter 10, pages10.1 to 10.5) 18-X.A. MOVING WITH CONTINUED ASSISTANCE [24 CFR 578.51(c)(3)] Program participants who have complied with all program requirements during their residence retain the rental assistance if they move within the Continuum of Care geographic area. Program participants who have complied with all program requirements during their residence, who have been a victim of domestic violence, dating violence, sexual assault, or stalking, who reasonably believe they are imminently threatened by harm from further domestic violence, dating violence, sexual assault, or stalking (which would include threats from a third party, such as a friend or household member of the perpetrator of the violence), if they remain in the assisted unit, and who are able to document the violence and basis for their belief, may retain the rental assistance and move to a different Continuum of Care geographic area if they move out of the assisted unit to protect their health and safety. These program participants may move to a different CoC’s geographic service area even if the PHA cannot meet all regulatory requirements of this part in the new geographic area where the unit is located. The recipient or subrecipient, however, must be able to meet all statutory requirements of the CoC program either directly or through a third-party contract or agreement 18-X.B. PORTABILITY [24 CFR 578.51(c)(4)] CoC participants may choose housing outside of the CoC’s geographic area if the PHA through its employees or contractors is able to meet all requirements of the program. If the PHA cannot meet the requirements either directly or through a third-party contract or agreement, the PHA may refuse to permit the participant to retain the voucher if they choose to move outside of the CoC’s geographic area. 18-X.C. TENANT TRANSFERS FROM SITE SPECIFIC HOUSING TO SCATTERED SITE HOUSING AND FROM SCATTERED SITE HOUSING TO SITE SPECIFIC HOUSING If participants no longer require site specific housing and services, they may fill out a move request to transfer to scattered site housing. If a participant living at a scattered site requires site specific housing, they may fill out a move request and they will be placed on the waitlist for the next available apartment at one of the site specific housing locations. 18-X.D. TENANT TRANSFERS FROM COC TO HCV Current CoC participants and tenants living in City-funded supportive housing who no longer require permanent supportive housing and services shall receive a preference on the HCV waitlist as a “graduate” of the CoC program or a 12.A.b Packet Pg. 1905 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-19 supportive housing graduate. Eligibility for such preference must be documented by the current supportive services provider for the CoC Program participant in the form indicated. Candidates for the CoC and supportive housing graduate preference will be considered based on the following: • Applicant has an established goal in writing to reside in a more independent setting • Is not a registered sex offender • Does not have violent crime conviction within the last 5 years • Applicant is in good standing: o Applicant has maintained residency in housing in Santa Monica for at least two years and has not received an eviction notice during this period • Applicant has no outstanding payments with the Santa Monica Housing AuthorityApplicant participates in the community, as demonstrated by one of the following: o Applicant is currently employed, or enrolled in an employment/training program o Applicant is enrolled in an educational program o Applicant is participating in the community as demonstrated by volunteering. The PHA shall limit the current number of persons eligible for this preference not to exceed 25 households annually. If 25 households have received Housing Choice Vouchers under this local preference, the PHA shall continue to allow current applicants to claim such preference, however, the applicant will remain on the waitlist and will be offered the next voucher as it becomes available. PART XI: REEXAMINATIONS [24 CFR 582.310] (Refer to THE PHA Administrative Plan, Chapter 11, pages11.1 and 11.5) 12.A.b Packet Pg. 1906 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-20 PART XII: TERMINATION OF ASSISTANCE AND TENANCY (Refer to THE PHA Administrative Plan, Chapter 12 pages12.2 to 12.21) 12.A.b Packet Pg. 1907 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-21 PART XVIII: PROGRAM ADMINISTRATION (Refer to THE PHA Administrative Plan, Chapter 16, pages 16.2 to 16.82) HUD required Section 8 Management Assessment Program (SEMAP) is not applicable 12.A.b Packet Pg. 1908 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-1 CHAPTER 19: HOME TENANT BASED RENTAL ASSISTANCE PART I: OVERVIEW OF THE HOME PROGRAM 19-I.A. OVERVIEW The HOME tenant-based rental assistance program is a United States Department of Housing and Urban Development (HUD)-funded rental assistance program administered by the Santa Monica Housing Authority (PHA). The program adheres to the Section 8 Housing Choice Voucher (HCV) program model and it is designed to assist households who need help paying their rent. All applicants must meet income eligibility of a household combined annual income of up to 60 percent of Area Median Income (AMI). The program promotes community-wide planning and strategic use of resources to address the jurisdiction’s unmet needs and to narrow the gap in benefits and services received by cost- burdened households. 19-I.B. PURPOSE The purpose of the HOME program is to provide rental assistance in the form of a monthly rental subsidy to persons At Risk of Homelessness, Senior/Disabled Homeless persons, and Victims of Domestic Violence who are at or below the 60 percent AMI limit. 19-I.C. ELIGIBLE COSTS [24 CFR 92.209 (a)] The PHA is awarded HUD funds for the HOME program annually. Eligible costs are rental assistance and security deposit payments. Rental Assistance [24 CFR 92.209 (h)(1)]The amount of the monthly assistance that PHA may pay on behalf of a household may not exceed the difference between a rent standard for the unit size established by the PHA and 30 percent of the household’s monthly adjusted income. Security Deposits [24 CFR 92.902 (j)] A participating jurisdiction may use HOME funds provided for tenant-based rental assistance to provide loans or grants to very low- and low-income households for security deposits for rental of dwelling units. The amount of HOME funds that may be provided for a security deposit may not exceed the equivalent of two month's rent for the unit. Only the prospective tenant may apply for HOME security deposit assistance. A limited number of security deposit grants will be provided to eligible applicants, subject to the availability of HOME funds and at the sole discretion of the PHA. Participants must 12.A.b Packet Pg. 1909 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-2 document, in writing, their efforts to secure security deposit funding from other sources and demonstrate insufficient personal funds. The maximum amount of HOME funds that may be provided for the security deposit is the equivalent of two months’ contracted rent for the unit. Only the tenant (not the landlord) may apply for security deposit assistance. 19-I.D. TERM OF THE PROGRAM [24 CFR 92.902 (e)] The HOME program is awarded to localities to fund rental assistance for low-income applicants. HOME funds are awarded annually as formula grants to participating jurisdictions. HUD may award up to one year of rental assistance for the program with the option of being renewed for as long as there is a continuum of funding available. The Term of the Rental Assistance [24 CFR 92.902 (e)] The term of the rental assistance contract providing assistance with HOME funds may not exceed 24 months, but may be renewed, subject to the availability of HOME funds. 19-I.E. POLICIES AND PROCEDURES The PHA receives annual funding for the HOME program based on HUD’s availability of program funds. The Santa Monica Housing Commission, which serves as the advisory board for the PHA, reviews all policies and procedures. The Santa Monica City Council, which serves as the Board of Directors for the PHA, adopts policies and procedures annually. The HOME program adheres to the Section 8 HCV program model, unless otherwise noted in this plan. If there is a conflict between program regulations and the Section 8 HCV Administrative Plan, the HOME program regulations take precedence. PART II: FAIR HOUSING AND EQUAL OPPORTUNITY (Refer to PHA Administrative Plan, Chapter 2, pages 2-2 to 2-19) 12.A.b Packet Pg. 1910 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-3 PART III: ELIGIBILITY (Refer to PHA Administrative Plan, Chapter 3, pages 3-2 to 3-37) In addition to evidence of eligibility required under the HCV program, HOME applicants must meet one of the following requirements to qualify: 1. Person At Risk of Homelessness 2. Senior/Disabled Homeless person 3. Victim of Domestic Violence And 1. Be at or below the HUD 60 percent AMI limit 19-III.A. EVIDENCE OF ELIGIBILITY At Risk of Homelessness Certification HOME applicants who qualify under the definition of At Risk of Homelessness must provide the following documentation at the time of application to establish that they meet the required criteria: 1. The HOME applicant’s written certification that they have insufficient financial resources and support networks immediately available to attain housing stability; 2. Documentation to verify that the HOME applicant did not have sufficient resources or support networks immediately available to attain housing stability as evidenced by one of the following: A. Source documents (e.g., notice of termination from employment, bank statement, health care bill showing arrears); or B. Written statement by referring agency staff confirming that they spoke to a relevant third party to verify At Risk of Homelessness status; or C. Written statement by referring agency staff of the efforts taken to obtain verification through source documents and relevant third parties; 3. Verification that the HOME applicant met one of the seven conditions* under the definition of At Risk of Homelessness (for definition of At Risk of 12.A.b Packet Pg. 1911 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-4 Homelessness, refer to 19-IV.E. TENANT SELECTION – Hierarchy of preferences), as evidenced by one of the following: i. Source documents that evidence one or more of the conditions; ii. A written statement by a relevant third party or the written certification by referring agency staff of the oral verification by the relevant third party that the applicant meets one or more of the conditions; or iii. A written statement by the referring agency staff that the staff person has visited the applicant’s residence and determined that the applicant meets one or more of the conditions or, if a visit is not feasible or relevant to the determination, a written statement by the referring agency staff describing the efforts taken to obtain the required evidence. * 1. Has moved because of economic reasons two or more times during the 60 days immediately preceding the application for homelessness prevention assistance; 2. Is living in the home of another because of economic hardship; 3. Has been notified in writing that their right to occupy their current housing or living situation will be terminated within 30 days of the date of application for assistance; 4. Lives in a hotel or motel and the cost of the hotel or motel stay is not paid by charitable organizations or by federal, State, or local government programs for low-income individuals; 5. Lives in a single-room occupancy or efficiency apartment unit in which there reside more than two persons, or lives in a larger housing unit in which there reside more than 1.5 people per room, as defined by the U.S. Census Bureau; 6. Is exiting a publicly funded institution, or system of care (such as a health -care facility, a mental health facility, foster care or other youth facility, or correction program or institution); or 7. Otherwise lives in housing that has characteristics associated with instability and an increased risk of homelessness, as identified in the City of Santa Monica approved consolidated plan; • Rent burdened households – housing cost burden greater or equal to 40 percent Senior/Elderly Certification A birth certificate or other official record of birth is the preferred form of age verification (must be at least 62 years of age or older). An original document that provides evidence of the receipt of social security retirement benefits is acceptable. Homeless Certification 12.A.b Packet Pg. 1912 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-5 HOME applicants who qualify under the definition of Homeless must provide the following documentation at the time of application to establish that they meet the required criteria. Evidence of an individual or head of household’s current living situation must be documented by: 1. A written referral by a service provider; and 2. A Homeless Certification Form completed by a service provider In addition, one or more of the following must be provided: 1. A written documentation of observation by an outreach worker 2. A print out from the City’s Homeless Management Information System (HMIS) indicating the history of homelessness 3. A written certification by the household seeking assistance that demonstrates that the individual or head of household is currently homeless and living in a place not meant for human habitation, in an emergency shelter, or a safe haven. Disabling Condition Certification In order to receive Disabled/Disabling Condition preference, HOME applicants must present evidence of disabling condition diagnosis with one or more of the following conditions: substance use disorder, serious mental illness, developmental disability (as defined in Section 102 of the Developmental Disabilities Assistance Bill of Rights Act of 2000 (42 U.S.C. 15002), post-traumatic stress disorder, cognitive impairments resulting from brain injury, or chronic physical illness or disability. A disabling condition is defined by HUD as: 1. A physical, mental, or emotional impairment which is expected to be of long -continued and indefinite duration, substantially impedes an individual’s ability to live independently, and of such a nature that the disability could be imp roved by more suitable conditions; 2. A developmental disability as defined in section 102 of the Developmental Disabilities Assistance and Bill of Rights Act; 3. The disease of acquired immunodeficiency syndrome or any conditions arising from the etiological agency for acquired immunodeficiency syndrome; or 4. A diagnosable substance use disorder. Evidence of this criterion must include one of the following: 1. Written verification of the condition from a professional licensed by the state to diagnose and treat the condition; 2. Written verification from the Social Security Administration; 12.A.b Packet Pg. 1913 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-6 3. Copies of a disability check (e.g., Social Security Disability Insurance check or Veterans Disability Compensation); 4. Intake staff (or referral staff) observation that is confirmed by written verification of the condition from a professional licensed by the state to diagnose and treat the condition that is confirmed no later than 45 days of the application for assistance and accompanied with one of the types of evidence above; or other documentation approved by HUD. Victim of Domestic Violence Certification Only applicants who have or will (within twelve months from the date of verification) be required to vacate housing in the City of Santa Monica as a result of the victimization, qualify for HOME under Victims of Domestic Violence preference. Applicants must provide, at the time of application, one of the following three forms of documentation to testablish that they meet the preference [24 CFR 5.2007(b)]: 1. A completed and signed HUD-approved certification form (HUD-50066, Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking), which must include the name of the perpetrator only if the name of the perpetrator is safe to provide and is known to the victim; 2. A federal, state, tribal, territorial, or local police report, or court record, or an administrative record; or 3. Documentation signed by a person who has assisted the victim in addressing domestic violence, dating violence, sexual assault, or stalking, or the effects of such abuse. This person may be an employee, agent, or volunteer of a victim service provider; an attorney; a mental health professional; or a medical professional. The person signing the documentation must attest under penalty of perjury to the person’s belief that the incidents in question are bona fide incidents of abuse. The victim must also sign the documentation. 19-III.B. DENIAL OF ASSISTANCE (Refer to PHA Administrative Plan, Chapter 3, pages 3-20 to 3-24) An applicant will be denied participation in the HOME program if the applicant does not meet HOME program specific admission criteria in addition to the HCV program requirements. Participation will also be denied if the HOME applicant does not provide: 1. Information that the PHA or HUD determines is necessary in the administration of the program 2. Complete and true information and it is discovered that the applicant does not meet eligibility requirements. 12.A.b Packet Pg. 1914 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-7 19-III.C. CRIMINAL BACKGROUND CHECKS (Refer to PHA Administrative Plan, Chapter 3, pages 3-23 to 3-25) All participants will undergo criminal background checks based on Section 8 Housing Choice Voucher regulations. 12.A.b Packet Pg. 1915 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-8 PART IV: APPLICATIONS, WAITLIST AND TENANT SELECTION 19-IV.A. APPLYING FOR ASSISTANCE Any individual/household who wishes to receive HOME assistance must apply for admission to the program. The HOME program has a separate waitlist and assistance is restricted to persons At Risk of Homelessness, Senior/Disabled Homeless persons, and Victims of Domestic Violence who are at or below 60 percent AMI. 19-IV.B. ACCESSIBILITY OF THE APPLICATION PROCESS HOME applicants must be referred by one of the agencies listed below: The People Concern (formerly known as OPCC) 1453 16th Street Santa Monica, CA 90404 (310) 264-2646 Wise and Healthy Aging Ken Edwards Center 1527 4th St Santa Monica, CA 90401 (310) 394-9871 Legal Aid Foundation of Los Angeles (LAFLA) 1640 5th St #124 Santa Monica, CA 90401 (310) 899-6200 St Joseph Center 12420 Venice Blvd., Suite 200Los Angeles, CA 90066310-574-5510 City of Santa Monica Human Services Division can also refer applicants on behalf of other social services agencies that are funded by the City of Santa Monica. 19-IV.C. OUTREACH AND MARKETING The PHA targets Santa Monica area households who meet the program’s eligibility requirements. The Homeless Liaison Team (HLP Team), City of Santa Monica Human Services Division and other local outreach programs identify appropriate referrals to referral agencies. PHA staff regularly attends Chronic Homeless Program (CHP) Action Committee meetings, and senior and youth outreach meetings to market the program with member agencies. 19-IV.D. SCREENING AND ASSESSMENT 12.A.b Packet Pg. 1916 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-9 The PHA requires the listed referral agencies to screen applicants for eligibility and to submit to the PHA completed applicable documents included in the HOME Application Packet. Completed documents will be used by the PHA to: 1. Determine applicant’s eligibility 2. Select participants 3. Notify applicants of their obligations as a HOME voucher recipient Documents included in the HOME Application Packet are listed below: • Agency Referral Letter • Homeless and At Risk of Homelessness Certification Form • Certification of Disabling Condition Form (completed by licensed physician) • Applicant/Tenant Information Disclosure Certification and Application Form • Household• Declaration of Citizen/Lawful Resident Status Form • Sex Offender and Criminal History/Disclosure Form • • Authorization for Release of Information Forms for HUD • Authorization for Release of Information Forms for PHA • • • VI-SPDAT Report (if applicable) • • Notice of Occupancy Rights under the Violence Against Women Act – HUD-5380 • Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking, and Alternate Documentation – HUD-5382 (if applicable) All income verification documents must be current within the last 60 days. (PIH Notice 2017 -12) Case managers will conduct a thorough screening and assessment of each individual’s care needs. The screening will include assessment of the individual’s ability to live independently In addition, the individual must not present a danger to himself or others and the individual must not require a level of care that is not offered by the HOME voucher. 19-IV.E. TENANT SELECTION Selection Criteria Households will be selected based on the following targeted population selection criteria and selection preference method. Within the preference category, households will be selected based on severity of needs. Targeted Population: 12.A.b Packet Pg. 1917 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-10 • At Risk of Homelessness • Senior/Disabled Homeless (Chronically Homeless individuals will be referred to the CoC program) • Victims of Domestic Violence (Applicants will be referred to HCV program, if HCV vouchers are available) Households must meet the requirements and eligibility criteria of one of the above targeted population groups to qualify for HOME rental assistance. At Risk of Homelessness For At Risk of Homelessness applicants, severity of needs is identified and verified through the use of the At Risk of Homelessness Certification Form and submitted source documents. Senior/Disabled Homeless applicants and Victims of Domestic Violence For Senior and/or Disabled Homeless applicants and Victims of Domestic Violence, severity of needs is identified and verified through the use of the Vulnerability Index (VI) Service Prioritization Decision Assistance (SPDAT) standardized assessment tool. The determination is not based on a specific diagnosis or disability type, but only on the severity of needs of the individual. Targeted population includes individuals with a VI-SPDAT score of 7 and below who do not qualify for Continuum of Care (CoC) program. 19-IV.F. ORDER OF PRIORITY FOR PLACEMENT ON THE WAITLIST The HOME waitlist is open and will accept referrals until further notice. Order of Priority for Placement on the Waitlist Households will be selected from the waitlist based on the selection preference(s) for which they qualify, and in accordance with the PHA’s hierarchy of preferences. Within each targeted funding or preference category, households will be selected based on severity of needs. HOME HIERARCHY OF PREFERENCES PREFERENCE POINT VALUE Resident Preference: An individual or household who meets one of the 30 12.A.b Packet Pg. 1918 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-11 PREFERENCE POINT VALUE following requirements: • Is a resident of Santa Monica; • Is homeless in Santa Monica and is on the Santa Monica Service Registry; • Works a minimum of 25 hours per week in Santa Monica (Applicants who work for a temporary agency do not qualify for preference if they are on a temporary assignment); • Is enrolled in a job training program in the City of Santa Monica, subject to the PHA’s approval; • Immediately previously was in Santa Monica workforce but is now receiving unemployment, worker’s compensation, vocational rehabilitation benefits, disability benefits or retirement benefits from a Santa Monica employer. Working Household Preference: An individual or household who meets one of the following requirements: • Is working a minimum of 25 hours per week; • Is the age of 62 or older; • Is a person with disabilities 1 At Risk of Homelessness An individual or family who: • Does not have sufficient resources or support networks, e.g., family, friends, faith-based or other social networks, immediately available to prevent them from moving to an emergency shelter or another place described in paragraph 1 of the Homeless definition in this section and • Has not been terminated or is currently not in the process of being terminated from any rental assistance or any other subsidy program due to incompliance and/or violations of the program rules and regulations, including outstanding debts owed; and Meets one of the following conditions: 15 12.A.b Packet Pg. 1919 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-12 PREFERENCE POINT VALUE 1. Has moved because of economic reasons two or more times during the 60 days immediately preceding the application for homelessness prevention assistance; 2. Is living in the home of another because of economic hardship; 3. Has been notified in writing that their right to occupy their current housing or living situation will be terminated within 30 days of the date of application for assistance; 4. Lives in a hotel or motel and the cost of the hotel or motel stay is not paid by charitable organizations or by federal, State, or local government programs for low-income individuals; 5. Lives in a single-room occupancy or efficiency apartment unit in which there reside more than two persons, or lives in a larger housing unit in which there reside more than 1.5 people per room, as defined by the U.S. Census Bureau; 6. Is exiting a publicly funded institution, or system of care (such as a health-care facility, a mental health facility, foster care or other youth facility, or correction program or institution); or 7. Otherwise lives in housing that has characteristics associated with instability and an increased risk of homelessness, as identified in the City of Santa Monica approved consolidated plan; • Rent burdened households – housing cost burden greater or equal to 40 percent Homeless An individual or household who meets one of the following requirements: • Lacks a fixed, regular, and adequate nighttime residence, meaning: An individual or family with a primary nighttime residence that is a public or private place not designed for or ordinarily used as a regular sleeping accommodation for human 5 12.A.b Packet Pg. 1920 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-13 PREFERENCE POINT VALUE beings, including a car, park, abandoned building, bus or train station, airport, or camping ground; • Is living in a supervised publicly- or privately- operated shelter designated to provide temporary living arrangements (including congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, state, or local government programs for low-income individuals); • Is exiting an institution where he or she resided for 90 days or less and who resided in an emergency shelter or place not meant for human habitation immediately before entering that institution; • Will imminently lose their primary nighttime residence, provided that: The primary nighttime residence will be lost within 14 days of the date of application for homeless assistance; no subsequent residence has been identified; and the individual or family lacks the resources or support networks, e.g., family, friends, faith- based or other social networks, needed to obtain other permanent housing; or • Is fleeing, or is attempting to flee, domestic violence, dating violence, sexual assault, stalking, or other dangerous or life-threatening conditions that relate to violence against the individual or a family member, including a child, that has either taken place within the individual‘s or family’s primary nighttime residence or has made the individual or family afraid to return to their primary nighttime residence. Victims of Domestic Violence (VAWA) An individual or household who meets the following requirements: • Is a victim of domestic violence, dating violence, sexual assault, or stalking; • Has no other residence; and 12.A.b Packet Pg. 1921 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-14 PREFERENCE POINT VALUE • Lacks the resources or support networks, e.g., household, friends, and faith-based or other social networks, to obtain other permanent housing. VAWA means: The Violence Against Women and Department of Justice Reauthorization Act of 2005 (Pub. L. 109-162, approved August 28, 2006), as amended by the U.S. Housing Act of 1937 (42 U.S.C. 1437d and 42 42 U.S. 1437f). Domestic violence means: Felony or misdemeanor crimes of violence committed by a current or former spouse of the victim, by a person with whom the victim shares a child in common, by a person who is cohabitating with or has cohabitated with the victim as a spouse, by a person similarly situated to a spouse of the victim under the domestic or household violence laws of the jurisdiction receiving grant monies, or by any other person against an adult or youth victim who is protected from that person's acts under the domestic or household violence laws of the jurisdiction. Dating violence means violence committed by a person: (1) Who is or has been in a social relationship of a romantic or intimate nature with the victim; and (2) Where the existence of such a relationship shall be determined based on a consideration of the following factors: (i) The length of the relationship; (ii) The type of relationship; and (iii) The frequency of interaction between the persons involved in the relationship. 12.A.b Packet Pg. 1922 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-15 PREFERENCE POINT VALUE Sexual Assault means: Any nonconsensual sexual act proscribed by Federal, tribal, or State law, including when the victim lacks capacity to consent (See 42 U.S.C. 13925(a).) Stalking means: (1) (i) To follow, pursue, or repeatedly commit acts with the intent to kill, injure, harass, or intimidate another person; or (ii) To place under surveillance with the intent to kill, injure, harass, or intimidate another person; and (2) In the course of, or as a result of, such following, pursuit, surveillance, or repeatedly committed acts, to place a person in reasonable fear of the death of, or serious bodily injury to, or to cause substantial emotional harm to (i) That person, (ii) A member of the immediate household of that person, or (iii) The spouse or intimate partner of that person. Immediate household member means, with respect to a person: (1) A spouse, parent, brother, or sister, or child of that person, or an individual to whom that person stands in loco parentis; or (2) Any other person living in the household of that person and related to that person by blood or marriage. 12.A.b Packet Pg. 1923 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-16 PREFERENCE POINT VALUE Disabled/Disabling Condition An individual or household who meets one of the following requirements: • Has a physical, mental, or emotional impairment which is expected to be of long-continued and indefinite duration, substantially impedes an individual’s ability to live independently, and of such a nature that the disability could be improved by more suitable conditions; • Has a developmental disability as defined in section 102 of the Developmental Disabilities Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15002); • Has the disease of acquired immunodeficiency syndrome or any conditions arising from the etiological agency for acquired immunodeficiency syndrome; • Has a diagnosable substance abuse disorder 3 Senior An individual who: • Is at least 62 years of age or older 3 Placement on the Waitlist A separate waitlist will be maintained for the HOME Program. Eligible for Placement on the Waitlist If the PHA determines the HOME applicant is eligible, the applicant’s name will be placed on the waitlist. The waitlist will be maintained by assigning waitlist position numbers to applicants on a preference basis. The PHA will notify the referring agency of acceptance. Once all available vouchers have been issued, the applicant’s name will remain on the waitlist until a voucher becomes available. 12.A.b Packet Pg. 1924 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-17 Ineligible for Placement on the Waitlist If the PHA can determine from the information provided that a household is ineligible, the household will not be placed on the waitlist. Where a household is determined to be ineligible, the PHA will inform the referring agency of the ineligibility determination. Notification of Selection When a HOME applicant has been selected from the waitlist, the PHA will notify, in writing, the applicant and the referring agency of selection and of the initial briefing date. If the selected applicant is no longer interested or is unable to participate in the HOME program, the individual will be removed from the waitlist and will have to be re-referred at a later date. The applicant will lose their position on the waitlist. Income Eligibility [24 CFR 92.216]HOME applicants must have incomes at or below 60 percent of area median income. Income eligibility will be verified by the PHA according to source documents provided by the applicant. 12.A.b Packet Pg. 1925 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-18 PART V: BRIEFINGS AND VOUCHER ISSUANCE (Refer to PHA Administrative Plan, Chapter 5, pages 5-2 to 5-14) 19-V.A. INITIAL BRIEFING AND VOUCHER ISSUANCE The applicant, together with all adult members of the household and the assigned case manager (if applicable) must be present for the initial briefing and voucher issuance. 19-V.B. VOUCHER ISSUANCE/REQUEST FOR TENANCY APPROVAL Upon the completion of the initial briefing, a HOME voucher will be issued to the applicant. HOME participants have up to 180 days to search for an apartment within the Santa Monica geographic area and submit a Request for Tenancy Approval (RTA) to the PHA upon finding a suitable apartment. If an extension is needed, one may be requested. The request will be evaluated and a decision made Proof of Effort Form must be submitted to the PHA). 12.A.b Packet Pg. 1926 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-19 PART VI: INCOME AND SUBSIDY DETERMINATIONS [24 CFR Part 5, Subparts E and F; 24 CFR 982] (Refer to PHA Administrative Plan, Chapter 6, pages 6-2 to 6-57) 19-VI.A. TENANT RENT PORTION [24 CFR 5.628] Program participants are required to pay a portion of their rent if they are receiving HOME program rental assistance. Participant rent must be equal to the highest of: • 30 percent of household‘s monthly adjusted income; • 10 percent of household’s monthly gross income; or • A minimum rent of $50 contribution. households 12.A.b Packet Pg. 1927 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-20 PART VII: VERIFICATION [24 CFR 982.516, 24 CFR 982.551, 24 CFR 5.230] (Refer to PHA Administrative Plan, Chapter 7, pages 7-2 to 7-30) The PHA will follow the verification process and requirements for acceptable documents as outlined in Chapter 7 of the HCV Administrative Plan with the exception of the following: • Up-front Income Verification (UIV) using HUD’s Enterprise Income Verification (EIV) • Up-front Income Verification (UIV) using a non-HUD system 12.A.b Packet Pg. 1928 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-21 PART VIII: HOUSING QUALITY STANDARDS AND RENT REASONABLENESS DETERMINATIONS [24 CFR 982 Subpart I and 24 CFR 982.507] (Refer to PHA Administrative Plan, Chapter 8, pages 8-2 to 8-27) 19-VIII.A. HOUSING QUALITY STANDARDS [24 CFR 92.209 (i)] Housing Quality Standards (HQS) apartment inspections are required both at initial occupancy and annually thereafter for all HOME apartments. Newly leased apartments must pass the HQS inspection before the beginning date of the assisted lease and Housing Assistance Payment (HAP) Contract. 19-VIII.B. RENT REASONABLENESS [24 CFR 92.209 (3) (f)] The participating jurisdiction must disapprove a lease if the rent is not reasonable, based on rents that are charged for comparable unassisted rental units. Rent reasonableness review must be conducted before the HOME program participant rents an apartment. The PHA will pay rents up to the rent reasonable amount, not to exceed the exception payment standard for the PHA Section 8 HCV program. The HUD approved Exception Payment Standards will govern the HOME rent payment amounts. Bedroom Size Payment Standard 0 $1,512 1 $1,930 2 $2,640 3 $3,366 4 $3,366 12.A.b Packet Pg. 1929 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-22 PART IX: GENERAL LEASING POLICIES (Refer to PHA Administrative Plan, Chapter 9, pages 9-1 to 9-12) When rental assistance funds are used to pay rent for apartments , the lease must be between the program participant and the landlord. Each program participant, on whose behalf rental assistance payments are made, must pay a contribution toward rent consistent with the requirements of the HOME rules. The landlord and participant are required to execute a lease and a Contract Addendum to comply with the HOME rental assistance policies. [24 CFR 92.253] (Refer to Appendix A for HOME Prohibited Lease Terms and Contract Addendum) 19-IX.B. LIMITATIONS ON HOME ASSISTANCE Portability HOME participants are not eligible for portability and must remain within the City of Santa Monica geographic area. PART X: MOVING WITH CONTINUED ASSISTANCE AND PORTABILITY [24 CFR 92.209 (d)] (Refer to PHA Administrative Plan, Chapter 10, pages 10-1 to 10-6 Under the tenant-based rental assistance program, the PHA issues an eligible household a voucher and the household selects an apartment of its choice within the City of Santa Monica geographic area. If the household moves out of the apartment, the contract with the owner ends and the household can move with continued assistance to another apartment within the City of Santa Monica. HOME participants are not eligible for portability and must remain within the City of Santa Monica geographic area. 12.A.b Packet Pg. 1930 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-23 PART XI: REEXAMINATIONS [24 CFR 582.310] (Refer to PHA Administrative Plan, Chapter 11, pages 11-1 to 11-14) The PHA is required to process annual reexaminations. In cases where a household experiences a change in household composition and/or income between annual reexamination, the PHA will process an interim reexamination. The household is required to report all changes in household composition and/or income to the PHA within 10 calendar days of the occurrence. For more information regarding causes for processing annual/interim reexaminations and the requirements for completing annual/interim reexaminations, please refer to Chapter 11 of the Section 8 HCV Administrative Plan. 12.A.b Packet Pg. 1931 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-24 PART XII: TERMINATION OF ASSISTANCE AND TENANCY (Refer to PHA Administrative Plan, Chapter 12, pages 12-2 to 12-21) 12.A.b Packet Pg. 1932 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-25 PART XIII: PROGRAM ADMINISTRATION (Refer to PHA Administrative Plan, Chapter 16, pages 162 to 16-47) Section 8 Management Assessment Program (SEMAP) is not required. 12.A.b Packet Pg. 1933 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-26 APPENDIX A HOME Prohibited Lease Terms The HOME program requires that the lease does not contain the following provisions: HOME Program: The PHA will review the lease to make certain it does not contain any of the following prohibited lease terms (24 CFR 92.253 (b)): • Agreement by the tenant to be sued, to admit guilt or to a judgment in favor of the owner in a lawsuit brought in connection with the lease. • Agreement by the tenant that the owner may take, hold or sell personal property of household members without notice to the tenant and a court decision on the rights of the parties. This prohibition, however, does not apply to an agreement by the tenant concerning disposition of personal property remaining in the housing unit after the tenant has moved out of the unit. In that case, the owner may dispose of this personal property in accordance with state law. • Agreement by the tenant not to hold the owner or the owner’s agents legally responsible for any action or the failure to act, whether intentional or negligent. • Agreement of the tenant that the owner may institute a lawsuit without notice to the tenant. • Agreement by the tenant that the owner may evict the tenant or household members without instituting a civil court proceeding in which the tenant has the opportunity to present a defense or before a court decision on the rights of the parties. • Agreement by the tenant to waive any right to a trial by jury. • Agreement by the tenant to waive the tenant’s right to appeal or to otherwise challenge in court a decision in connection with the lease. • Agreement by the tenant to pay attorney fees or other legal costs even if the tenant wins in a court proceeding by the owner against the tenant. The tenant, however, may be obligated to pay costs if the tenant loses. 12.A.b Packet Pg. 1934 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-27 Contract Addendum CITY OF SANTA MONICA HOUSING AUTHORITY HOME Investment Partnerships Program LEASE ADDENDUM Tenant Based Rental Assistance Tenant Name: Contract Unit: Contract Number: Landlord Name: Purpose of Lease Addendum. Tenant has been approved to receive rental assistance under the HOME Investment Partnerships Program Tenant Based Rental Assistance (TBRA). The lease for the above referenced apartment is hereby amended to include provisions of this Lease Addendum, as follows: A. Conflict with other Provisions of the Lease. In the event of any conflict between provisions of this Lease Addendum and any sections of the Lease, the provisions of this Lease Addendum will prevail. B. Terms of Lease. The rental term of the Lease begins on and continues until the occurrence of one of the following events: 1. The Lease is terminated by the Landlord in accordance with applicable state and local laws; or 2. The Lease is terminated by the Tenant in accordance with the Lease, or by mutual agreement during the term of the Lease; or 3. The TBRA Contract is terminated. C. Housing Assistance Payment. Each month the Santa Monica Housing Authority (SMHA) will make a Housing Assistance Payment to the Landlord on behalf of the tenant. This payment shall be credited by the Landlord toward the monthly rent. The balance of the monthly rent shall be paid by the tenant. D. Security Deposit. 12.A.b Packet Pg. 1935 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-28 1. The Tenant has deposited $ with the Landlord as a Security Deposit. The Landlord will hold this Security Deposit during the period the Tenant occupies the apartment under the Lease. The Landlord will comply with state and local laws regarding interest earned on Security Deposits. 2. After the Tenant has vacated the apartment under the Lease, the Landlord may use the Security Deposit as reimbursement for rent or toward any other amounts payable by Tenant under the Lease, in accordance with state and local laws. The Landlord will provide the Tenant a written list specifying all damages, items, and amounts charged against the Security Deposit. Any Security Deposit amount remaining after the reimbursement to the Landlord has been deducted shall be promptly refunded to the Tenant. E. Household Members. Household members authorized to live in this apartment are listed below. Tenant may not permit other persons to join the household without prior written approval of the Housing Authority and Owner. F. Housing Quality Standards. The Landlord shall maintain the apartments t , common areas, equipment, facilities and appliances in decent, safe and sanitary condition (as determined by Section 8 Housing Quality Standards). G. Termination of Tenancy. The Landlord may evict the Tenant following applicable state and local laws. The Landlord must provide the Tenant with at least 30 days’ written notice of the termination. The Landlord must notify the SMHA in writing when eviction proceedings are begun. This may be done by providing the SMHA with a copy of the required notice to the Tenant. H. Prohibited Lease Provision. Any provision of the Lease which falls within the classification below shall not apply and not be enforced by the Landlord. 1. Confession of Judgment. Consent by the Tenant to be sued, to admit guilt, or to a judgment in favor of the landlord in a lawsuit brought in connection with the Lease. 2. Treatment of Property. Agreement by the Tenant that the Landlord may take or hold the Tenant’s property, or may sell such property without notice to the Tenant and a court decision on the rights of the parties. 3. Excusing the Landlord from Responsibility. Agreement by the Tenant not to hold the Landlord or Landlord’s agent legally responsible for any action or failure to 12.A.b Packet Pg. 1936 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Unlimited copies may be made for internal use. Page 19-29 act, whether intentional or negligent. 4. Waiver of Legal Notice. Agreement by the Tenant that the Landlord may institute a lawsuit without notice to the Tenant. 5. Waiver of Court Proceeding for Eviction. Agreement by the Tenant that the Landlord may evict a Tenant Household (i) without instituting a civil court proceeding in which the Household has the opportunity to present a defense, or (ii) before a decision by the court on the rights of the parties. 6. Waiver of Jury Trial. Authorization to the Landlord to waive the Tenant’s right to a jury trial. 7. Waiver of Right to Appeal Court Decision. Authorization to the Landlord to waive the Tenant’s right to appeal a court decision or waive the Tenant’s right to sue to prevent a judgment from being put into effect. 8. Tenant Chargeable with Cost of Legal Action Regardless of Outcome of the Lawsuit. Agreement by the Tenant to pay lawyer’s fees or other legal costs whenever the Landlord decides to sue, whether or not the Tenant wins. I. Nondiscrimination. The Landlord shall not discriminate against the Tenant in the Provision of services, or in any other manner, on the grounds of age, race, color, creed, religion, sex, disability, national origin, marital or familial status, or sexual orientation. TENANT SIGNATURES LANDLORD SIGNATURES Printed Name of Head of Household: Landlord Name: Signature of Head of Household and Date: Printed Name of Landlord Representative: Printed Name of Co-Head or Spouse: Signature of Landlord Representative and Date: Signature of Co-Head or Spouse and Date: 12.A.b Packet Pg. 1937 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-1 Unlimited copies may be made for internal use. CHAPTER 20: Temporary Policy Supplement CHAPTER 21 EMERGENCY HOUSING VOUCHERS (EHVs) INTRODUCTION On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 (ARP) (P.L. 117-2). Section 3202 of the ARP appropriated $5 billion for the creation, administration, and renewal of new incremental emergency housing vouchers (EHVs) and other eligible expenses related to COVID-19. On May 5, 2021, HUD issued Notice PIH 2021-15, which described HUD’s process for allocating approximately 70,000 EHVs to eligible PHAs and set forth the operating requirements for PHAs who administer them. Based on criteria outlined in the notice, HUD notified eligible PHAs of the number of EHVs allocated to their agency, and PHAs were able to accept or decline the invitation to participate in the program. PHAs may not project-base EHVs; EHVs are exclusively tenant-based assistance. All applicable nondiscrimination and equal opportunity requirements apply to the EHV program, including requirements that the PHA grant reasonable accommodations to persons with disabilities, effectively communicate with persons with disabilities, and ensure meaningful access for persons with limited English proficiency (LEP). This chapter describes HUD regulations and PHA policies for administering EHVs. The policies outlined in this chapter are organized into seven sections, as follows: Part I: Funding Part II: Partnering Agencies Part III: Waiting List Management Part IV: Family Eligibility Part V: Housing Search and Leasing Part VI: Use of Funds, Reporting, and Financial Records Except as addressed by this chapter and as required under federal statute and HUD requirements, the general requirements of the HCV program apply to EHVs. 12.A.b Packet Pg. 1938 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-2 Unlimited copies may be made for internal use. PART I: FUNDING TPS-I.A. FUNDING OVERVIEW The American Rescue Plan Act of 2021 (ARP) provides administrative fees and funding for the costs of administering emergency housing vouchers (EHVs) and other eligible expenses defined in Notice PIH 2021-15. These fees may only be used for EHV administration and other eligible expenses and must not be used for or applied to other PHA programs or vouchers. The PHA must maintain separate financial records from its regular HCV funding for all EHV funding. Housing Assistance Payments (HAP) Funding ARP funding obligated to the PHA as housing assistance payments (HAP) funding may only be used for eligible EHV HAP expenses (i.e., rental assistance payments). EHV HAP funding may not be used for EHV administrative expenses or for the eligible uses under the EHV services fee. The initial funding term will expire December 31, 2022. HUD will provide renewal funding to the PHA for the EHVs on a calendar year (CY) basis commencing with CY 2023. The renewal funding allocation will be based on the PHA’s actual EHV HAP costs in leasing, similar to the renewal process for the regular HCV program. EHV renewal funding is not part of the annual HCV renewal funding formula; EHVs are renewed separately from the regular HCV program. All renewal funding for the duration of the EHV program has been appropriated as part of the ARP funding. Administrative Fee and Funding The following four types of fees and funding are allocated as part of the EHV program: • Preliminary fees support immediate start-up costs that the PHA will incur in implementing alternative requirements under EHV, such as outreach and coordination with partnering agencies: - $400 per EHV allocated to the PHA, once the consolidated annual contributions contract (CACC) is amended. - This fee may be used for any eligible administrative expenses related to EHVs. - The fee may also be used to pay for any eligible activities under EHV service fees (TPS- I.B). 12.A.b Packet Pg. 1939 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-3 Unlimited copies may be made for internal use. • Placement fees/expedited issuance reporting fees will support initial lease-up costs and the added cost and effort required to expedite leasing of EHVs: - $100 for each EHV initially leased, if the PHA reports the voucher issuance date in Public Housing Information Center–Next Generation (PIC–NG) system within 14 days of voucher issuance or the date the system becomes available for reporting. - Placement fees: o $500 for each EHV family placed under a HAP contract effective within four months of the effective date of the ACC funding increment; or o $250 for each EHV family placed under a HAP contract effective after four months but less than six months after the effective date of the ACC funding increment. o HUD will determine placement fees in the event of multiple EHV allocations and funding increment effective dates. - Placement/expedited issuance fees only apply to the initial leasing of the voucher; they are not paid for family moves or to turnover vouchers. • Ongoing administrative fees, which are calculated in the same way as the standard HCV program: - PHAs are allocated administrative fees using the full column A administrative fee amount for each EHV under contract as of the first day of each month. - Ongoing EHV administrative fees may be subject to proration in future y ears, based on available EHV funding. • Services fees, which are a one-time fee to support PHAs’ efforts to implement and operate an effective EHV services program in its jurisdiction (TPS-I.B): - The fee is allocated once the PHA’s CACC is amended to reflect EHV funding. - The amount allocated is $3,500 for each EHV allocated. 12.A.b Packet Pg. 1940 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-4 Unlimited copies may be made for internal use. TPS-I.B. SERVICE FEES Services fee funding must be initially used for defined eligible uses and not for other administrative expenses of operating the EHV program. Service fees fall into four categories: • Housing search assistance • Security deposit/utility deposit/rental application/holding fee uses • Owner-related uses • Other eligible uses such as moving expenses or tenant-readiness services The PHA must establish the eligible uses and the parameters and requirements for service fees in the PHA’s administrative plan. PHA Policy Per the Memorandum of Understanding (MOU), the Continuum of Care (CoC) will provide services. The service fees will be used to fill any gaps. Direct assistance will be coordinated through the service provider, as assigned by the CoC through the EHV matching process. The eligible uses for service fees include: Housing search assistance, which may include activities such as, but not limited to, helping a family identify and visit potentially available units during their housing search, helping to find a unit that meets the household’s disability-related needs, providing transportation and directions, assisting with the completion of rental applications an d PHA forms, and helping to expedite the EHV leasing process for the family. Application fees/non-refundable administrative or processing fees/refundable application deposit assistance. The PHA may choose to assist the family with some or all these expenses. Holding fees are fees an owner requests that are rolled into the security deposit after an application is accepted but before a lease is signed. The PHA may cover part or all of the holding fee for units where the fee is required by the owner after a te nant’s application has been accepted but before the lease signing. The PHA and owner must agree how the holding fee gets rolled into the deposit, and under what conditions the fee will be returned. In general, owners need to accept responsibility for makin g needed repairs to a unit required by the initial housing quality standards (HQS) inspections and can only keep the holding fee if the client is at fault for not entering into a lease. Security deposit assistance. The amount of the security deposit assistance may not exceed the lesser of two months’ rent to owner, the maximum security deposit allowed under applicable state and/or local law, or the actual security deposit required by the owner. The PHA may pay the security deposit assistance directly to the owner or may pay the assistance to the family. If paid to the family, the PHA will require documentation that the family paid the security deposit. 12.A.b Packet Pg. 1941 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-5 Unlimited copies may be made for internal use. Utility deposit assistance/utility arrears. The PHA may provide utility deposit assistance for some or all of the family’s utility deposit expenses. Assistance can be provided for deposits (including connection fees) required for the utilities to be supplied by the tenant under the lease. The PHA may pay the utility deposit assistance directly to the utility company or may pay the assistance to the family. If paid to the family, the PHA will require documentation the family paid the utility deposit. The PHA will require the utility supplier or family to return the utility deposit assistance to the PHA at such time the deposit is returned by the utility supplier (less any amounts retained by the utility supplier). In addition, some families may have large balances with gas, electric, water, sewer, or trash companies that will make it difficult if not impossible to establish services for tenant-supplied utilities. The PHA may also provide the family with assistance to help address these utility arrears to facilitate leasing. Utility deposit assistance returned to the PHA will be used for either services fee eligib le uses or other EHV administrative costs, as required by HUD. Owner recruitment and outreach for EHVs. The PHA may use the service fee funding to conduct owner recruitment and outreach specifically for EHVs. In addition to traditional owner recruitment and outreach, activities may include conducting pre-inspections or otherwise expediting the inspection process, providing enhanced customer service, and offering owner incentive and/or retention payments. Owner incentive and/or retention payments. The PHA may make incentive or retention payments to owners that agree to initially lease their unit to an EHV family and/or renew the lease of an EHV family. Payments will be made as a single payment at the beginning of the assisted lease term (or lease renewal if a retention payment). Owner incentive and retentions payments are not housing assistance payments, are not part of the rent to owner, and are not taken into consideration when determining whether the rent for the unit is reasonable. Moving expenses (including move-in fees and deposits). The PHA may provide assistance for some or all of the family’s reasonable moving expenses when they initially lease a unit with the EHV. The PHA will not provide moving expenses assistance for subsequent moves unless the family is required to move for reasons other than something the family did or failed to do (e.g., the PHA is terminating the HAP contract because the owner did not fulfill the owner responsibilities under the HAP contract or the owner is refusing to offer the family the opportunity to enter a new lease after the initial lease term, as opposed to the family choosing to terminate the tenancy in order to move to another unit), or a family has to move due to domestic violence, dating violence, sexual assault, or stalking. Tenant-readiness services. The PHA may use fees to help create a customized plan to address or mitigate barriers that individual families may face in renting a unit with an EHV, such as negative credit, lack of credit, negative rental or utility h istory, or to connect the family to other community resources (including COVID-related resources) that can assist with rental arrears. 12.A.b Packet Pg. 1942 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-6 Unlimited copies may be made for internal use. Essential household items. The PHA may use services fee funding to assist the family with some or all of the costs of acquiring essential household items such as tableware, cooking equipment, beds or bedding, and essential sanitary products such as soap and toiletries. Renter’s insurance if required by the lease. The PHA may choose to assist the family with some or all this cost. Any services fee assistance that is returned to the PHA after its initial or subsequent use may only be applied to the eligible services fee uses defined in Notice PIH 2021-15 (or subsequent notice) or other EHV administrative costs. Any amounts not expended for these eligible uses when the PHA’s EHV program ends must be remitted to HUD. 12.A.b Packet Pg. 1943 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-7 Unlimited copies may be made for internal use. PART II: PARTNERING AGENCIES TPS-II.A. CONTINUUM OF CARE (CoC) PHAs that accept an allocation of EHVs are required to enter into a Memorandum of Understanding (MOU) with the Continuum of Care (CoC) to establish a partnership for the administration of EHVs. PHA Policy The SMHA has entered into an MOU with the Los Angeles Homeless Services Authority (LAHSA). See Exhibit TPS-1 for a copy of the MOU. TPS-II.B. OTHER PARTNERING ORGANIZATIONS The PHA may, but is not required to, partner with other organizations trusted by persons experiencing homelessness, such as victim services providers (VSPs) and other community partners. If the PHA chooses to partner with such agencies, the PHA must either enter into an MOU with the partnering agency or the partnering agency may be added to the MOU between the PHA and CoC. TPS-II.C. REFERRALS CoC and Partnering Agency Referrals The primary responsibility of the CoC under the MOU with the PHA is to make direct referrals of qualifying individuals and families to the PHA. The PHA must generally refer a family that is seeking EHV assistance directly from the PHA to the CoC or other r eferring agency for initial intake, assessment, and possible referral for EHV assistance. Partner CoCs are responsible for determining whether the family qualifies under one of the four eligibility categories for EHVs. The CoC must provide supporting documentation to the PHA of the referring agency’s verification that the family meets one of the four eligible categories for EHV assistance. 12.A.b Packet Pg. 1944 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-8 Unlimited copies may be made for internal use. PHA Policy The CoC must establish and implement a system to identify EHV-eligible individuals and families within the agency’s caseload and make referrals to the PHA. The CoC must certify that the EHV applicants they refer to the PHA meet at least one of the four EHV eligibility criteria. The PHA will maintain a copy of the referral or certification from the CoC in the participant’s file along with other eligibility paperwork. Homeless service providers may, but are not required to, use the certification form found in Exhibit TPS -2 of this chapter. Victim services providers may, but are not required to, use the certification form found in Exhibit TPS-3 of this chapter when identifying eligible families who qualify as victims of human trafficking. As part of the MOU, the PHA and CoC will identify staff positions to serve as lead EHV liaisons. These positions will be responsible for transmission and acceptance of referrals. The CoC must commit sufficient staff and resources to ensure eligible individuals and families are identified and determined eligible in a timely manner. The PHA liaison responsible for acceptance of referrals will contact the CoC liaison via email indicating the number of vouchers available and requesting an appropriate number of referrals. The CoC liaison will provide the PHA with a list of eligible referrals including the name, address, and contact phone number for each adult individual who is being referred; a completed release form for each adult family member; and a written certification for each referral indicating they are EHV-eligible. Offers of Assistance with CoC Referral The PHA may make an EHV available without a referral from the CoC or other partnering organization in order to facilitate an emergency transfer under VAWA in accordance with the PHA’s Emergency Transfer Plan (ETP) in Chapter 16. The PHA must also take direct referrals from outside the CoC if: • The CoC does not have a sufficient number of eligible families to refer to the PHA; or • The CoC does not identify families that may be eligible for EHV assistance because they are fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking or human trafficking. If at any time the PHA is not receiving enough referrals or is not receiving referrals in a timely manner from the CoC or other partner referral agencies (or the PHA and CoC cannot identify any such alternative referral partner agencies), HUD may permit the PHA on a temporary or permanent basis to take EHV applications directly from applicants and admit eligible families to the EHV program in lieu of or in addition to direct referrals in those circumstance s. 12.A.b Packet Pg. 1945 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-9 Unlimited copies may be made for internal use. PART III: WAITING LIST MANAGEMENT TPS-III. A. HCV WAITING LIST The regulation that requires the PHA to admit applicants as waiting list admissions or special admissions in accordance with admission policies in Chapter 4 does not apply to PHAs operating the EHV program. Direct referrals are not added to the PHA’s HCV w aiting list. The PHA must inform families on the HCV waiting list of the availability of EHVs by, at a minimum, either by posting the information to their website or providing public notice in their respective communities in accordance with the requirements listed in Notice PIH 2021-15. PHA Policy The PHA will post information on the SMHA website about the EHV program for families on the PHA’s HCV waiting list. The notice will: Describe the eligible populations to which EHVs are limited Clearly state that the availability of these EHVs is managed through a direct referral process Advise the family to contact the CoC (or any other PHA referral partner, if applicable) if the family believes they may be eligible for EHV assistance The PHA will ensure effective communication with persons with disabilities, including those with vision, hearing, and other communication-related disabilities in accordance with Chapter 2. The PHA will also take reasonable steps to ensure meaningful access for persons with limited English proficiency (LEP) in accordance with Chapter 2. TPS-III.B. EHV WAITING LIST The HCV regulations requiring the PHA to operate a single waiting list for admission to the HCV program do not apply to PHAs operating the EHV program. Instead, when the nu mber of applicants referred by the CoC or partnering agency exceeds the EHVs available, the PHA must maintain a separate waiting list for EHV referrals, both at initial leasing and for any turnover vouchers that may be issued prior to September 30, 2023. Further, the EHV waiting list is not subject to PHA policies in Chapter 4 regarding opening and closing the HCV waiting list. The PHA will work directly with its CoC and other referral agency partners to manage the number of referrals and the size of the EHV waiting list. 12.A.b Packet Pg. 1946 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-10 Unlimited copies may be made for internal use. TPS-III.C. PREFERENCES HCV Waiting List Preferences If local preferences are established by the PHA for HCV, they do not apply to EHVs. However, if the PHA has a homeless preference or a VAWA preference for the HCV waiting list, the PHA must adopt additional policies related to EHVs in accordance with Notice PIH 2021-15. PHA Policy The PHA does not offer either a homeless or a VAWA preference for the HCV waiting list. EHV Waiting List Preferences With the exception of a residency preference, the PHA may choose, in coordination with the CoC and other referral partners, to establish separate local preferences for EHVs. The PHA may, however, choose to not establish any local preferences for the EHV waiting list. PHA Policy LAHSA/the LA CoC will make EHV referrals in accordance with the prioritization policies adopted by the CES Policy Council. The LA CoC geography includes multiple PHAs and therefore the Coordinated Entry System (CES) will need to determine which clients to refer to the SMHA. Within each priority category, LAHSA matchers (as the CES lead for the CoC) will prioritize SMHA referrals to households that are most logical to be assisted by SMHA, based on whether they have service connections within the city of Santa Monica and where they individual or family is located. This geographic prioritization is consistent with LA CoC’s SPA-level CES approach and will ensure that: 1. Eligible households referred to SMHA can maintain access to critical supportive services offered by their current service providers, 2. recently homeless households who have been housed within the City of Santa Monica and are receiving temporary rental assistance can transition in place while minimizing the burden to SMHA of administering EHV, and 3. the EHV resources provided to SMHA can be targeted to meet the needs of the significant number of households experiencing homelessness, fleeing domestic violence, sexual assault, stalking, human trafficking, and those at0risk of homelessness within the City of Santa Monica. 12.A.b Packet Pg. 1947 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-11 Unlimited copies may be made for internal use. PART IV: FAMILY ELIGIBLTY TPS-IV.A. OVERVIEW The CoC or referring agency determines whether the individual or family meets any one of the four eligibility criteria described in Notice PIH 2021-15 and then refers the family to the PHA. The PHA determines that the family meets other eligibility criteria for the HCV program, as modified for the EHV program and outlined below. TPS-IV.B. REFERRING AGENCY DETERMINATION OF ELIGIBLITY In order to be eligible for an EHV, an individual or family must meet one of four eligibility criteria: • Homeless as defined in 24 CFR 578.3; • At risk of homelessness as defined in 24 CFR 578.3; • Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking (as defined in Notice PIH 2021-15), or human trafficking (as defined in the 22 U.S.C. Section 7102); or • Recently homeless and for whom providing rental assistance will prevent the family’s homelessness or having high risk of housing instability as determined by the CoC or its designee in accordance with the definition in Notice PIH 2021-15. As applicable, the CoC must provide documentation to the PHA of the referring agency’s verification that the family meets one of the four eligible categories for EHV assistance. The PHA must retain this documentation as part of the family’s file. 12.A.b Packet Pg. 1948 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-12 Unlimited copies may be made for internal use. TPS-IV.C. PHA SCREENING Overview HUD waived 24 CFR 982.552 and 982.553 in part for the EHV applicants and established alternative requirement for mandatory and permissive prohibitions of admissions. Except where applicable, PHA policies regarding denials in Chapter 3 of this policy do not apply to screening individuals and families for eligibility for an EHV. Instead, the EHV alternative requirement listed in this section will apply to all EHV applicants. The mandatory and permissive prohibitions listed in Notice PIH 2021-15 and in this chapter, however, apply only when screening the individual or family for eligibility for an EHV. When adding a family member after the family has been placed under a HAP contract with EHV assistance, the regulations at 24 CFR 982.551(h)(2) apply. Other than the birth, adoption, or court-awarded custody of a child, the PHA must approve additional family members and may apply its regular HCV screening criteria in Chapter 3 in doing so. Mandatory Denials Under alternative requirements for the EHV program, mandatory denials for EHV applicants include: • 24 CFR 982.553(a)(1)(ii)(C), which prohibits admission if any household member has ever been convicted of drug-related criminal activity for manufacture or production of methamphetamine on the premises of federally assisted housing. • 24 CFR 982.553(a)(2)(i), which prohibits admission to the program if any member of the household is subject to a lifetime registration requirement under a state sex offender registration program. The PHA must deny admission to the program if any member of the family fails to sign and submit consent forms for obtaining information as required by 24 CFR 982.552(b)(3) but should notify the family of the limited EHV grounds for denial of admission first. PHA Policy While the PHA will deny admission to the program if any adult member (or head of household or spouse, regardless of age) fails to sign and submit consent forms, the PHA will first notify the family of the limited EHV grounds for denial of admission as part of the notice of denial that will be mailed to the family. 12.A.b Packet Pg. 1949 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-13 Unlimited copies may be made for internal use. Permissive Denial Notice PIH 2021-15 lists permissive prohibitions for which the PHA may, but is not required to, deny admission to EHV families. The notice also lists prohibitions that, while allowable under the HCV program, may not be used to deny assistance for EHV families. If the PHA intends to establish permissive prohibition policies for EHV applicants, the PHA must first consult with its CoC partner to understand the impact that the proposed prohibitions may have on referrals and must take the CoC’s recommendations into consideration. PHA Policy The PHA will not adopt any permissive prohibitions for the EHV Program. 12.A.b Packet Pg. 1950 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-14 Unlimited copies may be made for internal use. TPS-IV.D. INCOME VERIFICATION AT ADMISSION Self-Certification at Admission The requirement to obtain third-party verification of income in accordance with Notice PIH 2018-18 does not apply to the EHV program applicants at admission, and alternatively, PHAs may consider self-certification the highest form of income verification at admission. As such, PHA policies related to the verification of income in Section 7-I.B. do not apply to EHV families at admission. Instead, applicants must submit an affidavit attesting to their r eported income, assets, expenses, and other factors that would affect an income eligibility determination. Additionally, applicants may provide third-party documentation that represents the applicant’s income within the 60-day period prior to admission or voucher issuance but is not dated within 60 days of the PHA’s request. PHA Policy Any documents used for verification must be the original (not photocopies) and dated within the 60-day period prior to admission. The documents must not be damaged, altered, or in any way illegible. Printouts from webpages are considered original documents. Any family self-certifications must be made in a format acceptable to the PHA and must be signed by the family member whose information or status is being verified. The PHA will incorporate additional procedures to remind families of the obligation to provide true and complete information in accordance with Chapter 14. The PHA will address any material discrepancies (i.e., unreported income or a substantial difference in reported income) that may arise later. The PHA may, but is not required to, offer the family a repayment agreement in accordance with Chapter 16. If the family fails to repay the excess subsidy, the PHA will terminate the family’s assistance in accordance with the policies in Chapter 12. 12.A.b Packet Pg. 1951 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-15 Unlimited copies may be made for internal use. Recently Conducted Income Determinations PHAs may accept income calculations and verifications from third -party providers or from an examination that the PHA conducted on behalf of the family for another subsidized housing program in lieu of conducting an initial examination of income as long as: • The income was calculated in accordance with rules outlined at 24 CFR Part 5 and within the last six months; and • The family certifies there has been no change in income or family composition in the interim. PHA Policy The PHA will accept income calculations and verifications from third-party providers provided they meet the criteria outlined above. The family certification must be made in a format acceptable to the PHA and must be signed by all adult family members whose information or status is being verified. At the time of the family’s annual reexamination the PHA must conduct the annual reexamination of income as outlined at 24 CFR 982.516 and PHA policies in Chapter 11. EIV Income Validation Once HUD makes the EIV data available to PHAs under this waiver and alternative requirement, the PHA must: • Review the EIV Income and Income Validation Tool (IVT) reports to confirm and validate family-reported income within 90 days of the PIC submission date; • Print and maintain copies of the EIV Income and IVT Reports in the tenant file; and • Resolve any income discrepancy with the family within 60 days of the EIV Income or IVT Report dates. Prior to admission, PHAs must continue to use HUD’s EIV system to search for all household members using the Existing Tenant Search in accordance with PHA policies in Chapter 3. If a PHA later determines that an ineligible family received assistance, the PHA must take steps to terminate that family from the program in accordance with Chapter 12. 12.A.b Packet Pg. 1952 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-16 Unlimited copies may be made for internal use. TPS-IV.E. SOCIAL SECURITY NUMBER AND CITIZENSHIP STATUS VERIFICATION For the EHV program, the PHA is not required to obtain and verify SSN documentation and documentation evidencing eligible noncitizen status before admitting the family to the EHV program. Instead, PHAs may adopt policies to admit EHV applicants who are unable to provide the required SSN or citizenship documentation during the initial eligibility determination. As an alternative requirement, such individuals must provide the required documentation within 180 days of admission to be eligible for continued assistance, pending verification, unless the PHA provides an extension based on evidence from the family or confirmation from th e CoC or other partnering agency that the family has made a good-faith effort to obtain the documentation. If a PHA determines that an ineligible family received assistance, the PHA must take steps to terminate that family from the program. PHA Policy The PHA will admit EHV applicants who are unable to provide the required SSN or citizenship documentation during the initial eligibility determination. These individuals must provide the required documentation in accordance with policies in Chapter 7 within 180 days of admission. The PHA may provide an additional 60-day extension based on evidence from the family or confirmation from the CoC or other partnering agency that the family has made a good-faith effort to obtain the documentation. If the PHA determines that an ineligible family received assistance, the PHA will take steps to terminate that family from the program in accordance with policies in Chapter 12. TPS-IV.F. AGE AND DISABILITY VERIFICATION PHAs may accept self-certification of date of birth and disability status if a higher level of verification is not immediately available. If self-certification is used, the PHA must obtain a higher level of verification within 90 days of admission or verify the information in EIV. If a PHA determines that an ineligible family received assistance, the PHA must take steps to terminate that family from the program. PHA Policy The PHA will accept self-certification of date of birth and disability status if a higher form of verification is not immediately available. The certification must be made in a format acceptable to the PHA and must be signed by the family member whose information or status is being verified. If self-certification is accepted, within 90 days of admission, the PHA will verify the information in EIV or through other third-party verification if the information is not available in EIV. The PHA will note the family’s file that self - certification was used as initial verification and include an EIV printout or other third- party verification confirming the applicant’s date of birth and/or disability status. If the PHA determines that an ineligible family received assistance, the PHA will take steps to terminate that family from the program in accordance with policies in 12.A.b Packet Pg. 1953 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-17 Unlimited copies may be made for internal use. Chapter 12. TPS-IV.G. INCOME TARGETING The PHA must determine income eligibility for EHV families in accordance with 24 CFR 982.201 and PHA policy in Chapter 3; however, income targeting requirements do not apply for EHV families. The PHA may still choose to include the admission of extremely low-income EHV families in its income targeting numbers for the fiscal year in which these families are admitted. PHA Policy The PHA will include the admission of extremely low -income EHV families in its income targeting numbers for the fiscal year in which these families are admitted. PART V: HOUSING SEARCH AND LEASING TPS-V.A. INITIAL VOUCHER TERM Unlike the standard HCV program, which requires an initial voucher term of at least 60 days, EHV vouchers must have an initial search term of at least 120 days. PHA policies on extensions as outlined in Section 5-II.E. will apply. PHA Policy All EHVs will have an initial term of 120 calendar days. The family must submit a Request for Tenancy Approval and proposed lease within the 120-day period unless the PHA grants an extension. TPS-V.B. HOUSING SEARCH ASSISTANCE The PHA must ensure housing search assistance is made available to EHV families during their initial housing search. The housing search assistance may be provided directly by the PHA or through the CoC or another partnering agency or entity. At a minimum, housing search assistance must: • Help individual families identify potentially available units during their housing search, including physically accessible units with features for family members with disabilities, as well as units in low-poverty neighborhoods; • Provide transportation assistance and directions to potential units; • Conduct owner outreach; • Assist with the completion of rental applications and PHA forms; and • Help expedite the EHV leasing process for the family 12.A.b Packet Pg. 1954 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-18 Unlimited copies may be made for internal use. PHA Policy As identified in the MOU between the PHA and CoC, the following housing search assistance will be provided to each EHV family, as needed: Security Deposits: Security deposit fees will be provided by LAHSA to the extent possible. SMHA, LAHSA, and/or a partnering service provider will further assist individuals and families in the Program by providing the following services: • LAHSA will assist individuals and families with the completion of rental applications and forms, obtain necessary supporting documentation for referrals and applications for assistance, and assist with addressing or mitigating barriers to leasing. • Housing search assistance for eligible individuals and families. • Partnering service providers will support SMHA to ensure appointment notifications to eligible individuals and families, and assist eligible households in attending appointments with SMHA. • SMHA will establish timeframes for applicants to complete intake appointments for EHV assistance. • SMHA and partnering service providers will provide counseling on compliance with lease requirements. • Partnering service providers will assess and refer individuals and families to benefits and supportive services, where applicable. TPS-V.C. HQS PRE-INSPECTIONS To expedite the leasing process, PHAs may pre-inspect available units that EHV families may be interested in leasing in order to maintain a pool of eligible units. PHA Policy To expedite the leasing process, the PHA may pre-inspect available units that EHV families may be interested in leasing to maintain a pool of eligible units. If an EHV family selects a unit that passed a HQS pre-inspection (without intervening occupancy) within 45 days of the date of the Request for Tenancy Approval, the unit may be approved provided that it meets all other conditions under 24 CFR 982.305. The family will be free to select his or her unit. When a pre-inspected unit is not selected, the PHA will make every effort to fast -track the inspection process, including adjusting the normal inspection schedule for any required reinspections. 12.A.b Packet Pg. 1955 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-19 Unlimited copies may be made for internal use. TPS-V.D. INITIAL LEASE TERM Unlike in the standard the HCV program, EHV voucher holders may enter into an initial lease that is for less than 12 months, regardless of the PHA policy in Section 9-I.E., Term of Assisted Tenancy. TPS-V.E. PORTABILITY The normal HCV portability procedures and requirements outlined in Chapter 10 generally apply to EHVs. Exceptions are addressed below. Nonresident Applicants Under EHV, applicant families may move under portability even if the family did not have legal residency in the jurisdiction of the initial PHA when they applied, regardless of PHA policy in Section 10-II.B. Billing and Absorption A receiving PHA cannot refuse to assist an incoming EHV family, regardless of whether the PHA administers EHVs under its own ACC. • If the EHV family moves under portability to another PHA that administers EHVs under its own ACC: - The receiving PHA may only absorb the incoming EHV family with an EHV (assuming it has an EHV voucher available to do so). - If the PHA does not have an EHV available to absorb the family, it must bill the initial PHA. The receiving PHA must allow the family to lease the unit with EHV assistance and may not absorb the family with a regular HCV when the family leases the unit. - Regardless of whether the receiving PHA absorbs or bills the initial PHA for the family’s EHV assistance, the EHV administration of the voucher is in accordance with the receiving PHA’s EHV policies. • If the EHV family moves under portability to another PHA that does not administer EHV under its own ACC, the receiving PHA may absorb the family into its regular HCV program or may bill the initial PHA. 12.A.b Packet Pg. 1956 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-20 Unlimited copies may be made for internal use. Family Briefing In addition to the applicable family briefing requirements at 24 CFR 982.301(a)(2 ) as to how portability works and how portability may affect the family’s assistance, the initial PHA must inform the family how portability may impact the special EHV services and assistance that may be available to the family. The initial PHA is required to help facilitate the family’s portability move to the receiving PHA and inform the family of this requirement in writing, taking reasonable steps to ensure meaningful access for persons with limited English proficiency (LEP). PHA Policy In addition to following PHA policy on briefings in Chapter 5, as part of the briefing packet for EHV families, the PHA will include a written notice that the PHA will assist the family with moves under portability. For limited English proficient (LEP) applicants, the PHA will provide interpretation services in accordance with the PHA’s LEP plan (See Chapter 2). Coordination of Services If the portability move is in connection with the EHV family’s initial lease-up, the receiving PHA and the initial PHA must consult and coordinate on the EHV services and assistance that will be made available to the family. PHA Policy For EHV families who are exercising portability, when the PHA contacts the receiving PHA in accordance with Section 10-II.B. Preapproval Contact with Receiving PHA, the PHA will consult and coordinate with the receiving PHA to ensure there is no duplication of EHV services and assistance, and ensure the receiving PHA is aware of the maximum amount of services fee funding that the initial PHA may provide to th e receiving PHA on behalf of the family. 12.A.b Packet Pg. 1957 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-21 Unlimited copies may be made for internal use. Services Fee Standard portability billing arrangements apply for HAP and ongoing administrative fees for EHV families. For service fees funding, the amount of the service fee provided by the initial PHA may not exceed the lesser of the actual cost of the services and assistance provided to the family by the receiving PHA or $1,750, unless the initial PHA and receiving PHA mutually agree to change the $1,750 cap. Service fees are paid as follows: • If the receiving PHA, in consultation and coordination with the initial PHA, will provide eligible services or assistance to the incoming EHV family, the receiving PHA may be compensated for those costs by the initial PHA, regardless of whether the receiving PHA bills or absorbs. • If the receiving PHA administers EHVs, the receiving PHA may use its own services fee and may be reimbursed by the initial PHA, or the initial PHA may provide the services funding upfront to the receiving PHA for those fees and assistance. • If the receiving PHA does not administer EHVs, the initial PHA must provide the services funding upfront to the receiving PHA. Any amounts provided to the receiving PHA that are not used for services or assistance on behalf of the EHV family must promptly be return ed by the receiving PHA to the initial PHA. Placement Fee/Issuance Reporting Fee If the portability lease-up qualifies for the placement fee/issuance reporting fee, the receiving PHA receives the full amount of the placement component of the placement fee/issuing reporting fee. The receiving PHA is eligible for the placement fee regardless of whether the receiving PHA bills the initial PHA or absorbs the family into its own program at initial lease -up. The initial PHA qualifies for the issuance reporting component of the placement fee/issuance reporting fee, as applicable. 12.A.b Packet Pg. 1958 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-22 Unlimited copies may be made for internal use. TPS-V.F. PAYMENT STANDARDS Payment Standard Schedule For the EHV program, HUD has waived the regulation requiring a single payment standard for each unit size. Instead, the PHA may, but is not required to, establish separate higher payment standards for EHVs. Lower EHV payment standards are not permitted. If the PHA is increasing the regular HCV payment standard, the PHA must also increase the EHV payment standard if it would be otherwise lower than the new regular HCV payment standard. The separate EHV payment standard must comply with all other HCV requirements with the exception of the alternative requirements discussed below. Further, if the PHA chooses to establish higher payments standards for EHVs, HUD has provided other regulatory waivers: • Defining the “basic range” for payment standards as between 90 and 120 percent of the published Fair Market Rent (FMR) for the unit size (rather than 90 to 110 percent). • Allowing a PHA that is not in a designated Small Area FMR (SAFMR) area or has not opted to voluntarily implement SAFMRs to establish exception payment standards for a ZIP code area above the basic range for the metropolitan FMR based on the HUD published SAFMRs. The PHA may establish an exception payment standard up to 120 percent (as opposed to 110 percent) of the HUD published Small Area FMR for that ZIP code area. The exception payment standard must apply to the entire ZIP code area. - The PHA must notify HUD if it establishes an EHV exception payment standard based on the SAFMR. PHA Policy The PHA currently has an exception payment standard approved by HUD and will not establish a higher payment standard amount for EHVs. The PHA will use the same payment standards for HCV and EHV. Rent Reasonableness All rent reasonableness requirements apply to EHV units, regardless of whether the PHA has established an alternative or exception EHV payment standard. Increases in Payment Standards The requirement that the PHA apply increased payment standards at the family’s first regular recertification on or after the effective date of the increase does not apply to EHV. The PHA may, but is not required to, establish an alternative policy on when to apply the increased payment standard, provided the increased payment standard is used to calculate the HAP no later than the effective date of the family’s first regular reexamination following the change. PHA Policy The PHA will not establish an alternative policy for increases in the payment standard. PHA policy in Section 11-III.B. governing increases in payment standards will apply to EHV. 12.A.b Packet Pg. 1959 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-23 Unlimited copies may be made for internal use. TPS-V.G. TERMINATION OF VOUCHERS After September 30, 2023, a PHA may not reissue EHVs when assistance for an EHV-assisted family ends. This means that when an EHV participant (a family that is receiving rental assistance under a HAP contract) leaves the program for any reason, the PHA may not reissue that EHV to another family unless it does so no later than September 30, 2023. If an applicant family that was issued the EHV is unsuccessful in finding a unit and the EHV expires after September 30, 2023, the EHV may not be reissued to another family. All EHVs under lease on or after October 1, 2023, may not under any circumstances be reissued to another family when the participant leaves the program for any reason. An EHV that has never been issued to a family may be initially issued and leased after September 30, 2023, since this prohibition only applies to EHVs that are being reissued upon turnover after assistance to a family has ended . However, HUD may direct PHAs administering EHVs to cease leasing any unleased EHVs if such action is determined necessary by HUD to ensure there will be sufficient funding available to continue to cover the HAP needs of currently assisted EHV families. 12.A.b Packet Pg. 1960 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-24 Unlimited copies may be made for internal use. PART VI: USE OF FUNDS, REPORTING, AND FINANCIAL RECORDS EHV funds allocated to the PHA for HAP (both funding for the initial allocation and HAP renewal funding) may only be used for eligible EHV HAP purposes. EHV HAP funding obligated to the PHA may not be used for EHV administrative expenses or the other EHV eligible expenses under this notice. Likewise, EHV administrative fees and funding obligated to the PHA are to be used for those purposes and must not be used for HAP. The appropriated funds for EHVs are separate from the regular HCV program and may not be used for the regular HCV program but may only be expended for EHV eligible purposes. EHV HAP funds may not roll into the regular HCV restricted net position (RNP) and must be tracked and accounted for separately as EHV RNP. EHV administrative fees and funding for other eligible expenses permitted by Notice PIH 2021-15 may only be used in support of the EHVs and cannot be used for regular HCVs. EHV funding may not be used for the repayment of debts or any amounts owed to HUD by HUD program participants including, but not limited to, those resulting from Office of Inspector General (OIG), Quality Assurance Division (QAD), or other monitoring review findings. The PHA must comply with EHV reporting requirements in the Voucher Management System (VMS) and Financial Data Schedule (FDS) as outlined in Notice PIH 2021 -15. The PHA must maintain complete and accurate accounts and other records for the program and provide HUD and the Comptroller General of the United States full and free access to all accounts and records that are pertinent the administration of the EHVs in accordance with the HCV program requirements at 24 CFR 982.158. 12.A.b Packet Pg. 1961 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-25 Unlimited copies may be made for internal use. Exhibit TPS-1: MEMORANDUM OF UNDERSTANDING (MOU) Attachment 2 of Notice PIH 2021-15 - Sample MOU Template Memorandum of Understanding [** This sample document demonstrates the Memorandum of Understanding requirements for the administration Emergency Housing Voucher. Unless otherwise noted, all elements are required. **] This Memorandum of Understanding (MOU) has been created and entered into on [** Insert execution date. **]. [PHA Name and Address] [CoC Name and Address] I. Introduction and Goals (the following elements, listed in a. – c., are required elements of the MOU): a. PHA and CoC’s commitment to administering the EHVs in accordance with all program requirements. b. PHA goals and standards of success in administering the program. c. Identification of staff position at the PHA and CoC who will serve as the lead EHV liaisons. Lead HCV Liaison: [Name and title of PHA staff position] Responsibilities of the PHA EHV liaison [**Optional**]. [Name and title of CoC staff position] Responsibilities of the CoC EHV liaison [**Optional**]. II. Define the populations eligible for EHV assistance to be referred by CoC. 12.A.b Packet Pg. 1962 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-26 Unlimited copies may be made for internal use. III. Services to be provided to eligible EHV families 1. List the services to be provided to assist individuals and families have success in the program and who will provide them. [**The following services are listed for example purposes. **] 1. Partnering service providers will support individuals and families in completing applications and obtaining necessary supporting documentation to support referrals and applications for assistance; while aiding households in addressing barriers. 2. Partnering service providers will support PHAs in ensuring appointment notifications to eligible individuals and families and will assist eligible households in getting to meetings with the PHA. 3. PHAs will establish windows of time for EHV applicants to complete intake interviews for EHV. 4. Partnering service providers will provide housing search assistance for eligible individuals and families. 5. Partnering service providers will provide counseling on compliance with rental lease requirements. 6. Partnering service providers will assess individuals and families who may require referrals for assistance on security deposits, utility hook-up fees, and utility deposits. 7. Partnering service providers will assess and refer individuals and families to benefits and supportive services, where applicable. IV. PHA Roles and Responsibilities [**The following responsibilities are listed for example purposes. **] 1. Coordinate and consult with the CoC in developing the services and assistance to be offered under the EHV services fee. 2. Accept direct referrals for eligible individuals and families through the CoC Coordinated Entry System. 3. Commit a sufficient number of staff and necessary resources to ensure that the application, certification, and voucher issuance processes are completed in a timely manner. 4. Commit a sufficient number of staff and resources to ensure that inspections of units are completed in a timely manner. 5. Designate a staff to serve as the lead EHV liaison. 6. Comply with the provisions of this MOU. 12.A.b Packet Pg. 1963 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-27 Unlimited copies may be made for internal use. V. CoC Roles and Responsibilities [**The following responsibilities are listed for example purposes. **] 1. Designate and maintain a lead EHV liaison to communicate with the PHA. 2. Refer eligible individuals and families to PHA using the community’s coordinated entry system. 3. Support eligible individuals and households in completing and applying for supportive documentation to accompany admissions application to the PHA (i.e. self-certifications, birth certificate, social security card, etc.). 4. Attend EHV participant briefings when needed. 5. Assess all households referred for EHV for mainstream benefits and supportive services available to support eligible individuals and families through their transition. 6. Identify and provide supportive services to EHV families. (While EHV participants are not required to participate in services, the CoC should assure that services are available and accessible.) 7. Comply with the provisions of this MOU. VI. Third Party Entity Roles Responsibilities [**The following responsibilities are listed for example purposes. **] 1. Describe how the State, local, philanthropic, faith -based organizations, Victim Service Providers or CoC recipients it designates will fulfill each of the following responsibilities: a. Outline resource and/or service being provided in support of the community’s EHV Program. Commit a sufficient number of staff and necessary resources to ensure that the application, certification and voucher issuance processes are completed in a timely manner. b. Comply with the provisions of this MOU. VII. Program Evaluation The PHA, and CoC or designated CoC recipient agree to cooperate with HUD, provide requested data to HUD or HUD-approved contractor delegated the responsibility of program evaluation protocols established by HUD or HUD-approved contractor, including possible random assignment procedures. 12.A.b Packet Pg. 1964 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-28 Unlimited copies may be made for internal use. [Signed and dated by the official representatives of the PHA, CoC, CoC Contractor organization (if applicable), and third-party entities (if applicable.] Signed by Executive Director, PHA Date CoC Executive Director Date 12.A.b Packet Pg. 1965 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-29 Unlimited copies may be made for internal use. Exhibit TPS-2: HOMELESS PROVIDER’S CERTIFICATION Attachment 3 of Notice PIH 2021-15 Example of a Homeless Provider’s Certification Emergency Housing Voucher (EHV) HOMELESS CERTIFICATION EHV Applicant Name: Household without dependent children (complete one form for each adult in the household) Household with dependent children (complete one form for household) Number of persons in the household: This is to certify that the above named individual or household meets the following criteria based on the check mark, other indicated information, and signature indicating their current living situation- Check only one box and complete only that section Living Situation: place not meant for human habitation (e.g., cars, parks, abandoned buildings, streets/sidewalks) The person(s) named above is/are currently living in (or, if currently in hospital or other institution, was living in immediately prior to hospital/institution admission) a public or private place not designed for, or ordinarily used as a regular sleeping accommodation for human beings, including a car, park, abandoned building, bus station, airport, or camp ground. Description of current living situation: Homeless Street Outreach Program Name: 12.A.b Packet Pg. 1966 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-30 Unlimited copies may be made for internal use. This certifying agency must be recognized by the local Continuum of Care (CoC) as an agency that has a program designed to serve persons living on the street or other places not meant for human habitation. Examples may be street outreach workers, day shelters, soup kitchens, Health Care for the Homeless sites, etc. Authorized Agency Representative Signature: Date: 12.A.b Packet Pg. 1967 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-31 Unlimited copies may be made for internal use. Living Situation: Emergency Shelter The person(s) named above is/are currently living in (or, if currently in hospital or other institution, was living in immediately prior to hospital/institution admission) a supervised publicly or privately operated shelter as follows: Emergency Shelter Program Name: This emergency shelter must appear on the CoC’s Housing Inventory Chart submitted as part of the most recent CoC Homeless Assistance application to HUD or otherwise be recognized by the CoC as part of the CoC inventory (e.g., newly established Emergency Shelter). Authorized Agency Representative Signature: Date : Living Situation: Recently Homeless The person(s) named above is/are currently receiving financial and supportive services for persons who are homeless. Loss of such assistance would result in a return to homelessness (ex. Households in Rapid Rehousing Programs, residents of Permanent Supportive Housing Programs participating in Moving On, etc.) Authorized Agency Representative Signature: This referring agency must appear on the CoC’s Housing Inventory Chart submitted as part of the most recent CoC Homeless Assistance application to HUD or otherwise be recognized by the CoC as part of the CoC inventory. Immediately prior to entering the household’s current living situation, the person(s) named above was/were residing in: 12.A.b Packet Pg. 1968 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-32 Unlimited copies may be made for internal use. emergency shelter OR a place unfit for human habitation Authorized Agency Representative Signature: Date: 12.A.b Packet Pg. 1969 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-33 Unlimited copies may be made for internal use. Exhibit TPS-3: EXAMPLE OF A VICTIM SERVICES PROVIDER’S CERTIFICATION Attachment 4 of Notice PIH 2021-15: Example of a Victim Services Provider’s Certification Emergency Housing Voucher (EHV) SAMPLE HUMAN TRAFFICKING CERTIFICATION Purpose of Form: The Victims of Trafficking and Violence Protection Act of 2000 provides assistance to victims of trafficking making housing, educational health care, job training and other Federally-funded social service programs available to assist victims in rebuilding their lives. Use of This Optional Form: In response to this request, the service provider may complete this form and submit it to the Public Housing Agency (PHA) to certify eligibility for EHV assistance. Confidentiality: All information provided to the service provider concerning the incident(s) of human trafficking shall be kept confidential and such details shall not be entered into any shared database. Employees of the PHA will not have access to these details, and such employees may not disclose this information to any other entity or individual, except to the extent that disclosure is: (i) consented to by you in writing in a time-limited release; (ii) required for use in an eviction proceeding or hearing regarding termination of assistance; or (iii) otherwise required by applicable law. TO BE COMPLETED ON BEHALF OF HUMAN TRAFFICKING SURVIVOR EHV Applicant Name: This is to certify that the above named individual or household meets th e definition for persons who are fleeing or attempting to flee human trafficking under section 107(b) of the Trafficking Victims Protection Act of 2000. Immediately prior to entering the household’s current living situation, the person(s) named above was/were residing in: 12.A.b Packet Pg. 1970 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates,Inc. Page 20-34 Unlimited copies may be made for internal use. This is to certify that the information provided on this form is true and correct to the best of my knowledge and recollection, and that the individual(s) named above is/has been a victim of human trafficking. I acknowledge that submission of false information could jeopardize program eligibility and could be the basis for denial of admission, termination of assistance, or eviction. Authorized Agency Representative Signature: Date: 12.A.b Packet Pg. 1971 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. GL-1 GLOSSARY A. ACRONYMS USED IN THE HOUSING VOUCHER PROGRAMS AAF Annual adjustment factor (published by HUD in the Federal Register and used to compute annual rent adjustments) ACC Annual contributions contract ADA Americans with Disabilities Act of 1990 AIDS Acquired immune deficiency syndrome BR Bedroom CDBG Community Development Block Grant (Program) CFR Code of Federal Regulations (published federal rules that define and implement laws; commonly referred to as “the regulations”) CoC Continuum of Care (Program) CPI Consumer price index (published monthly by the Department of Labor as an inflation indicator) EID Earned income disallowance EIV Enterprise Income Verification FDIC Federal Deposit Insurance Corporation FHA Federal Housing Administration (HUD Office of Housing) FHEO Fair Housing and Equal Opportunity (HUD Office of) FICA Federal Insurance Contributions Act (established Social Security taxes) FMR Fair market rent FR Federal Register FSS Family Self-Sufficiency (Program) FY Fiscal year FYE Fiscal year-end GAO Government Accountability Office GR Gross rent HA Housing authority or housing agency HAP Housing assistance payment HCV Housing choice voucher HQS Housing quality standards. HUD Department of Housing and Urban Development HUDCLIPS HUD Client Information and Policy System 12.A.b Packet Pg. 1972 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. GL-2 IPA Independent public accountant IRA Individual retirement account IRS Internal Revenue Service IVT Income Validation Tool JTPA Job Training Partnership Act LBP Lead-based paint LEP Limited English proficiency MSA Metropolitan statistical area (established by the U.S. Census Bureau) MTCS Multi-family Tenant Characteristics System (now the Form HUD-50058 submodule of the PIC system) MTW Moving to Work NOFA Notice of funding availability OGC HUD’s Office of General Counsel OIG HUD’s Office of Inspector General OMB Office of Management and Budget PASS Plan to Achieve Self-Support PHA Public housing agency PIC PIH Information Center PIH (HUD Office of) Public and Indian Housing PS Payment standard QC Quality control QHWRA Quality Housing and Work Responsibility Act of 1998 (also known as the Public Housing Reform Act) REAC (HUD) Real Estate Assessment Center RFP Request for proposals RFTA Request for tenancy approval RIGI Regional inspector general for investigation (handles fraud and program abuse matters for HUD at the regional office level) SEMAP Section 8 Management Assessment Program SRO Single room occupancy SHP Supportive Housing Program SSA Social Security Administration SSI Supplemental security income 12.A.b Packet Pg. 1973 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. GL-3 SWICA State wage information collection agency TANF Temporary assistance for needy families TPV Tenant protection vouchers TR Tenant rent TTP Total tenant payment UA Utility allowance UFAS Uniform Federal Accessibility Standards UIV Upfront income verification URP Utility reimbursement payment VAWA Violence Against Women Reauthorization Act of 2013 12.A.b Packet Pg. 1974 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. GL-4 B. GLOSSARY OF SUBSIDIZED HOUSING TERMS Absorption. In portability (under subpart H of this part 982): the point at which a receiving PHA stops billing the initial PHA for assistance on behalf of a portability family. The receiving PHA uses funds available under the receiving PHA consolidated ACC. Accessible. The facility or portion of the facility can be approached, entered, and used by individuals with physical handicaps. Adjusted Income. Annual income, less allowable HUD deductions. Adjusted Annual Income. Same as Adjusted Income. Administrative fee. Fee paid by HUD to the PHA for administration of the program. See §982.152. Administrative fee reserve (formerly “operating reserve”). Account established by PHA from excess administrative fee income. The administrative fee reserve must be used for housing purposes. See §982.155. Administrative fee reserves from FY 2004 and 2005 funding are further restricted to activities related to the provision of tenant-based rental assistance authorized under Section 8. Administrative plan. The plan that describes PHA policies for administration of the tenant-based programs. The Administrative Plan and any revisions must be approved by the PHA’s board and included as a supporting document to the PHA Plan. See §982.54. Admission. The point when the family becomes a participant in the program. The date used for this purpose is the effective date of the first HAP contract for a family (first day of initial lease term) in a tenant-based program. Affiliated individual. With respect to an individual, a spouse, parent, brother, sister, or child of that individual, or an individual to whom that individual stands in loco parentis (in the place of a parent), or any individual, tenant, or lawful occupant living in the household of that individual Amortization payment. In a manufactured home space rental: The monthly debt service payment by the family to amortize the purchase price of the manufactured home. Annual contributions contract (ACC). The written contract between HUD and a PHA under which HUD agrees to provide funding for a program under the 1937 Act, and the PHA agrees to comply with HUD requirements for the program. Annual Income. The anticipated total income of an eligible family from all sources for the 12- month period following the date of determination of income, computed in accordance with the regulations. Applicant (applicant family). A family that has applied for admission to a program but is not yet a participant in the program. Area Exception Rent. An amount that exceeds the published FMR. See §982.504(b). “As-paid” States. States where the welfare agency adjusts the shelter and utility component of the welfare grant in accordance with actual housing costs. Assets. (See Net Family Assets.) 12.A.b Packet Pg. 1975 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. GL-5 Auxiliary aids. Services or devices that enable persons with impaired sensory, manual, or speaking skills to have an equal opportunity to participate in, and enjoy the benefits of, programs or activities receiving Federal financial assistance. Budget authority. An amount authorized and appropriated by the Congress for payment to HAs under the program. For each funding increment in a PHA program, budget authority is the maximum amount that may be paid by HUD to the PHA over the ACC term of the funding increment. Child. A member of the family other than the family head or spouse who is under 18 years of age. Child care expenses. Amounts anticipated to be paid by the family for the care of children under 13 years of age during the period for which annual income is computed, but only where such care is necessary to enable a family member to actively seek employment, be gainfully employed, or to further their education and only to the extent such amounts are not reimbursed. The amount deducted shall reflect reasonable charges for child care. In the case of child care necessary to permit employment, the amount deducted shall not exceed the amount of employment income that is included in annual income. Citizen. A citizen or national of the United States. Co-head. An individual in the household who is equally responsible for the lease with the head of household. A family may have a co-head or spouse but not both. A co-head never qualifies as a dependent. The co-head must have legal capacity to enter into a lease. Common space. In shared housing: Space available for use by the assisted family and other occupants of the unit. Computer match. The automated comparison of data bases containing records about individuals. Confirmatory review. An on-site review performed by HUD to verify the management performance of a PHA. Consent form. Any consent form approved by HUD to be signed by assistance applicants and participants to obtain income information from employers and SWICAs; return information from the Social Security Administration (including wages, net earnings from self- employment, and retirement income); and return information for unearned income from the IRS. Consent forms expire after a certain time and may authorize the collection of other information to determine eligibility or level of benefits. Congregate housing. Housing for elderly persons or persons with disabilities that meets the HQS for congregate housing. A special housing type: see §982.606 to §982.609. Contiguous MSA. In portability (under subpart H of part 982): An MSA that shares a common boundary with the MSA in which the jurisdiction of the initial PHA is located. Continuously assisted. An applicant is continuously assisted under the 1937 Act if the family is already receiving assistance under any 1937 Housing Act program when the family is admitted to the voucher program. Continuum of Care Program. Grant program which was created by the consolidation of the Shelter Plus Care Program and Supportive Housing Program, under the Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009 (HEARTH Act) which amended the 12.A.b Packet Pg. 1976 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. GL-6 McKinney-Vento Homeless Assistance Act. The interim regulation was published in the Federal Register on July 31, 2012 and became effective August 30, 2012. Contract. (See Housing Assistance Payments Contract.) Contract authority. The maximum annual payment by HUD to a PHA for a funding increment. Cooperative (term includes mutual housing). Housing owned by a nonprofit corporation or association, and where a member of the corporation or association has the right to reside in a particular apartment, and to participate in management of the housing. A special housing type: see §982.619. Covered families. Statutory term for families who are required to participate in a welfare agency economic self-sufficiency program and who may be subject to a welfare benefit sanction for noncompliance with this obligation. Includes families who receive welfare assistance or other public assistance under a program for which Federal, State or local law requires that a member of the family must participate in an economic self-sufficiency program as a condition for the assistance. Dating violence. Violence committed by a person who is or has been in a social relationship of a romantic or intimate nature with the victim; and where the existence of such a relationship shall be determined based on a consideration of the following factors: - The length of the relationship - The type of relationship - The frequency of interaction between the persons involved in the relationship Deed-Restricted Affordable Housing. Housing which is subject to a property-specific affordability covenant that establishes tenant income-eligibility and rent limits for one or more residences at a property. Dependent. A member of the family (except foster children and foster adults) other than the family head or spouse, who is under 18 years of age, or is a person with a disability, or is a full-time student. Disability assistance expenses. Reasonable expenses that are anticipated, during the period for which annual income is computed, for attendant care and auxiliary apparatus for a disabled family member and that are necessary to enable a family member (including the disabled member) to be employed, provided that the expenses are neither paid to a member of the family nor reimbursed by an outside source. Disabled family. A family whose head, spouse, or sole member is a person with disabilities; or two or more persons with disabilities living together; or one or more persons with disabilities living with one or more live-in aides. Disabled person. See Person with Disabilities. Displaced family. A family in which each member, or whose sole member, is a person displaced by governmental action, or a person whose dwelling has been extensively damaged or 12.A.b Packet Pg. 1977 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. GL-7 destroyed as a result of a disaster declared or otherwise formally recognized pursuant to Federal disaster relief laws. Domestic violence. Felony or misdemeanor crimes of violence committed by a current or former spouse or intimate partner of the victim, by a person with whom the victim shares a child in common, by a person who is cohabitating with or has cohabitated with the victim as a spouse or intimate partner, by a person similarly situated to a spouse of the victim under the domestic or family violence laws of the jurisdiction receiving grant monies, or by any other person against an adult or youth victim who is protected from that person’s acts under the domestic or family violence laws of the jurisdiction. Domicile. The legal residence of the household head or spouse as determined in accordance with State and local law. Drug-related criminal activity. The illegal manufacture, sale, distribution, or use of a drug, or the possession of a drug with intent to manufacture, sell, distribute, or use the drug. Economic Self-Sufficiency Program. Any program designed to encourage, assist, train or facilitate the economic independence of assisted families, or to provide work for such families. Can include job training, employment counseling, work placement, basic skills training, education, English proficiency, Workfare, financial or household management, apprenticeship, or any other program necessary to ready a participant to work (such as treatment for drug abuse or mental health treatment). Includes any work activities as defined in the Social Security Act (42 U.S.C. 607(d)). Also see §5.603(c). Elderly family. A family whose head, spouse, or sole member is a person who is at least 62 years of age; or two or more persons who are at least 62 years of age living together; or one or more persons who are at least 62 years of age living with one or more live-in aides. Elderly Person. An individual who is at least 62 years of age. Eligible Family (Family). A family that is income eligible and meets the other requirements of the Act and Part 5 of 24 CFR. Employer Identification Number (EIN). The nine-digit taxpayer identifying number that is assigned to an individual, trust, estate, partnership, association, company, or corporation. Evidence of citizenship or eligible status. The documents which must be submitted to evidence citizenship or eligible immigration status. See §5.508(b). Extremely Low Income Family. A family whose annual income does not exceed 30 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. HUD may establish income ceilings higher or lower than 30 percent of median income if HUD finds such variations are necessary due to unusually high or low family incomes. (CFR 5.603) Facility. All or any portion of buildings, structures, equipment, roads, walks, parking lots, rolling stock or other real or personal property or interest in the property. Fair Housing Act means title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988 Fair market rent (FMR). The rent, including the cost of utilities (except telephone), as established by HUD for units of varying sizes (by number of bedrooms), that must be paid in 12.A.b Packet Pg. 1978 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. GL-8 the housing market area to rent privately owned, existing, decent, safe and sanitary rental housing of modest (non-luxury) nature with suitable amenities. See periodic publications in the Federal Register in accordance with 24 CFR part 888. Family. Includes but is not limited to the following, regardless of actual or perceived sexual orientation, gender identity, or marital status, and can be further defined in PHA policy. - A family with or without children (the temporary absence of a child from the home due to placement in foster care is not considered in determining family composition and family size) - An elderly family or a near-elderly family - A displaced family - The remaining member of a tenant family - A single person who is not an elderly or displaced person, or a person with disabilities, or the remaining member of a tenant family. Family rent to owner. In the voucher program, the portion of rent to owner paid by the family. Family self-sufficiency program (FSS program). The program established by a PHA within its jurisdiction to promote self-sufficiency among participating families, including the coordination of supportive services to these families (24 CFR 984.103). Family share. The portion of rent and utilities paid by the family. For calculation of family share, see §982.515(a). Family unit size. The appropriate number of bedrooms for a family, as determined by the PHA under the PHA subsidy standards. Federal agency. A department of the executive branch of the federal government. Foster Child Care Payment. Payment to eligible households by state, local, or private agencies appointed by the State, to administer payments for the care of foster children. Full-time Student. A person who is attending school or vocational training on a full-time basis (carrying a subject load that is considered full-time for day students under the standards and practices of the educational institution attended). CFR 5.603 Funding increment. Each commitment of budget authority by HUD to a PHA under the consolidated annual contributions contract for the PHA program. Gender identity. Actual or perceived gender-related characteristics. Gross rent. The sum of the rent to owner plus any utility allowance. Group home. A dwelling unit that is licensed by a State as a group home for the exclusive residential use of two to twelve persons who are elderly or persons with disabilities (including any live-in aide). A special housing type: see §982.610 to §982.614. Handicap. Any condition or characteristic that renders a person an individual with handicaps. See 24CFR 8.3. Handicap Assistance Expense. See “Disability Assistance Expense.” 12.A.b Packet Pg. 1979 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. GL-9 HAP contract. Housing assistance payments contract. (Contract). A written contract between the PHA and an owner for the purpose of providing housing assistance payments to the owner on behalf of an eligible family. Head of household. The adult member of the family who is the head of the household for purposes of determining income eligibility and rent. Housing assistance payment. The monthly assistance payment by a PHA, which includes: (1) A payment to the owner for rent to the owner under the family's lease; and (2) An additional payment to the family if the total assistance payment exceeds the rent to owner. Housing agency (HA). A State, county, municipality or other governmental entity or public body (or agency or instrumentality thereof) authorized to engage in or assist in the development or operation of low-income housing. (“PHA” and “HA” mean the same thing.) Housing Quality Standards. The HUD minimum quality standards for housing assisted under the voucher program. HUD. The Department of Housing and Urban Development. Imputed Asset. Asset disposed of for less than Fair Market Value during two years preceding examination or reexamination. Imputed asset income. PHA-established passbook rate multiplied by the total cash value of assets. Calculation used when net family assets exceed $5,000. Imputed welfare income. An amount of annual income that is not actually received by a family as a result of a specified welfare benefit reduction, but is included in the family’s annual income and therefore reflected in the family’s rental contribution. Income. Income from all sources of each member of the household, as determined in accordance with criteria established by HUD. Income For Eligibility. Annual Income. 12.A.b Packet Pg. 1980 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. GL-10 Income information means information relating to an individual's income, including: - All employment income information known to current or previous employers or other income sources - All information about wages, as defined in the State's unemployment compensation law, including any Social Security Number; name of the employee; quarterly wages of the employee; and the name, full address, telephone number, and, when known, Employer Identification Number of an employer reporting wages under a State unemployment compensation law - Whether an individual is receiving, has received, or has applied for unemployment compensation, and the amount and the period received - Unearned IRS income and self-employment, wages and retirement income - Wage, social security, and supplemental security income data obtained from the Social Security Administration. Individual with handicaps. Any person who has a physical or mental impairment that substantially limits one or more major life activities; has a record of such an impairment; or is regarded as having such impairment. Initial PHA. In portability, the term refers to both: (1) A PHA that originally selected a family that later decides to move out of the jurisdiction of the selecting PHA; and (2) A PHA that absorbed a family that later decides to move out of the jurisdiction of the absorbing PHA. Initial payment standard. The payment standard at the beginning of the HAP contract term. Initial rent to owner. The rent to owner at the beginning of the contract term. Jurisdiction. The area in which the PHA has authority under State and local law to administer the program. Landlord. Either the owner of the property or their representative or the managing agent or their representative, as shall be designated by the owner. Lease. A written agreement between an owner and a tenant for the leasing of a dwelling unit to the tenant. The lease establishes the conditions for occupancy of the dwelling unit by a family with housing assistance payments under a contract between the owner and the PHA. Limited English Proficient. Term used to describe individuals who, due to their national origin, “do not speak English as their primary language and who have a limited ability to speak, read, write or understand English. Live-in aide. A person who resides with one or more elderly persons, or near-elderly persons, or persons with disabilities, and who: - Is determined to be essential to the care and well-being of the persons; - Is not obligated for the support of the persons; and - Would not be living in the unit except to provide the necessary supportive services. Living/Sleeping Room. A living room may be used as sleeping (bedroom) space, but no more than two persons may occupy the space. A bedroom or living/sleeping room must have at least 12.A.b Packet Pg. 1981 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. GL-11 one window and two electrical outlets in proper operating condition. See HCV GB p. 10-6 and 24 CFR 982.401. Local preference. A preference used by the PHA to select among applicant families. Low income family. A family whose income does not exceed 80% of the median income for the area as determined by HUD with adjustments for smaller or larger families, except that HUD may establish income limits higher or lower than 80% for areas with unusually high or low incomes. Manufactured home. A manufactured structure that is built on a permanent chassis, is designed for use as a principal place of residence, and meets the HQS. A special housing type: see §982.620 and §982.621. Manufactured home space. In manufactured home space rental: A space leased by an owner to a family. A manufactured home owned and occupied by the family is located on the space. See §982.622 to §982.624. Medical expenses. Medical expenses, including medical insurance premiums, that are anticipated during the period for which annual income is computed, and that are not covered by insurance. (A deduction for elderly or disabled families only.) These allowances are given when calculating adjusted income for medical expenses in excess of 3% of annual income. Merger Date. October 1, 1999. Minor. A member of the family household other than the family head or spouse, who is under 18 years of age. Mixed family. A family whose members include those with citizenship or eligible immigration status, and those without citizenship or eligible immigration status. Monthly adjusted income. One twelfth of adjusted income. Monthly income. One twelfth of annual income. Mutual housing. Included in the definition of “cooperative.” National. A person who owes permanent allegiance to the United States, for example, as a result of birth in a United States territory or possession. Near-elderly family. A family whose head, spouse, or sole member is a person who is at least 50 years of age but below the age of 62; or two or more persons, who are at least 50 years of age but below the age of 62, living together; or one or more persons who are at least 50 years of age but below the age of 62 living with one or more live-in aides. Net family assets. (1) Net cash value after deducting reasonable costs that would be incurred in disposing of real property, savings, stocks, bonds, and other forms of capital investment, excluding interests in Indian trust land and excluding equity accounts in HUD homeownership programs. The value of necessary items of personal property such as furniture and automobiles shall be excluded. - In cases where a trust fund has been established and the trust is not revocable by, or under the control of, any member of the family or household, the value of the trust fund will not be considered an asset so long as the fund continues to be held in trust. Any 12.A.b Packet Pg. 1982 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. GL-12 income distributed from the trust fund shall be counted when determining annual income under §5.609. - In determining net family assets, PHAs or owners, as applicable, shall include the value of any business or family assets disposed of by an applicant or tenant for less than fair market value (including a disposition in trust, but not in a foreclosure or bankruptcy sale) during the two years preceding the date of application for the program or reexamination, as applicable, in excess of the consideration received therefore. In the case of a disposition as part of a separation or divorce settlement, the disposition will not be considered to be for less than fair market value if the applicant or tenant receives important consideration not measurable in dollar terms. Noncitizen. A person who is neither a citizen nor national of the United States. Notice of Funding Availability (NOFA). For budget authority that HUD distributes by competitive process, the Federal Register document that invites applications for funding. This document explains how to apply for assistance and the criteria for awarding the funding. Office of General Counsel (OGC). The General Counsel of HUD. Overcrowded. A unit that does not meet the following HQS space standards: (1) Provide adequate space and security for the family; and (2) Have at least one bedroom or living/sleeping room for each two persons. Owner. Any person or entity with the legal right to lease or sublease a unit to a participant. PHA Plan. The annual plan and the 5-year plan as adopted by the PHA and approved by HUD. PHA’s quality control sample. An annual sample of files or records drawn in an unbiased manner and reviewed by a PHA supervisor (or by another qualified person other than the person who performed the original work) to determine if the work documented in the files or records conforms to program requirements. For minimum sample size see CFR 985.3. Participant (participant family). A family that has been admitted to the PHA program and is currently assisted in the program. The family becomes a participant on the effective date of the first HAP contract executed by the PHA for the family (first day of initial lease term). Payment standard. The maximum monthly assistance payment for a family assisted in the voucher program (before deducting the total tenant payment by the family). Persons With Disabilities. A person who has a disability as defined in 42 U.S.C. 423 or a developmental disability as defined in 42 U.S.C. 6001. Also includes a person who is determined, under HUD regulations, to have a physical or mental impairment that is expected to be of long-continued and indefinite duration, substantially impedes the ability to live independently, and is of such a nature that the ability to live independently could be improved by more suitable housing conditions. For purposes of reasonable accommodation and program accessibility for persons with disabilities, means and “individual with handicaps” as defined in 24 CFR 8.3. Definition does not exclude persons who have AIDS or conditions arising from AIDS, but does not include a person whose disability is based solely on drug or alcohol dependence (for low-income housing eligibility purposes). See “Individual with handicaps” 12.A.b Packet Pg. 1983 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. GL-13 Portability. Renting a dwelling unit with Section 8 housing choice voucher outside the jurisdiction of the initial PHA. Premises. The building or complex in which the dwelling unit is located, including common areas and grounds. Private space. In shared housing: The portion of a contract unit that is for the exclusive use of an assisted family. Processing entity. The person or entity that, under any of the programs covered, is responsible for making eligibility and related determinations and any income reexamination. In the Section 8 program, the “processing entity” is the “responsible entity.” Project owner. The person or entity that owns the housing project containing the assisted dwelling unit. Proof of Effort Proof of effort is a form the PHA requires applicants and participants to fill out when requesting an extension of a voucher. The Proof of Effort form must demonstrate to the Housing Authority that a good faith effort was made during the term of the voucher to find suitable housing. The form must be completed in full, and demonstrate that on a weekly basis, the voucher holder was communicating with property owners/property management companies in the jurisdiction and visited potential apartments. The PHA may verify the information provided. Proof of effort may also include searches outside of Santa Monica if necessary. If a voucher holder submits a Proof of Effort form that is insufficient by these standards, the PHA may deny an extension request. Public Assistance. Welfare or other payments to families or individuals, based on need, which are made under programs funded, separately or jointly, by Federal, state, or local governments. Public Housing Agency (PHA). Any state, county, municipality, or other governmental entity or public body, or agency or instrumentality of these entities, that is authorized to engage or assist in the development or operation of low-income housing under the 1937 Act. Reasonable rent. A rent to owner that is not more than rent charged: (1) For comparable units in the private unassisted market; and (2) For comparable unassisted units in the premises. Receiving PHA. In portability: A PHA that receives a family selected for participation in the tenant-based program of another PHA. The receiving PHA issues a voucher and provides program assistance to the family. Recertification. Sometimes called reexamination. The process of securing documentation of total family income used to determine the rent the tenant will pay for the next 12 months if there are no additional changes to be reported. Remaining Member of Tenant Family. Person left in assisted housing who may or may not normally qualify for assistance on own circumstances (i.e., an elderly spouse dies, leaving widow age 47 who is not disabled). Rent to owner. The total monthly rent payable to the owner under the lease for the unit (also known as contract rent). Rent to owner covers payment for any housing services, maintenance and utilities that the owner is required to provide and pay for. 12.A.b Packet Pg. 1984 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. GL-14 Residency Preference. A PHA preference for admission of families that reside anywhere in a specified area, including families with a member who works or has been hired to work in the area (“residency preference area”). Residency Preference Area. The specified area where families must reside to qualify for a residency preference. Responsible entity. For the public housing and the Section 8 tenant-based assistance, project- based voucher assistance, and moderate rehabilitation programs, the responsible entity means the PHA administering the program under an ACC with HUD. For all other Section 8 programs, the responsible entity means the Section 8 owner. Secretary. The Secretary of Housing and Urban Development. Section 8. Section 8 of the United States Housing Act of 1937. Section 8 covered programs. All HUD programs which assist housing under Section 8 of the 1937 Act, including Section 8 assisted housing for which loans are made under section 202 of the Housing Act of 1959. Section 214. Section 214 of the Housing and Community Development Act of 1980, as amended Section 214 covered programs is the collective term for the HUD programs to which the restrictions imposed by Section 214 apply. These programs are set forth in §5.500. Security Deposit. A dollar amount (maximum set according to the regulations) which can be used for unpaid rent or damages to the owner upon termination of the lease. Set-up charges. In a manufactured home space rental: Charges payable by the family for assembling, skirting and anchoring the manufactured home. Sexual assault. Any nonconsensual sexual act proscribed by federal, tribal, or state law, including when the victim lacks capacity to consent (42 U.S.C. 13925(a)). Sexual orientation. Homosexuality, heterosexuality or bisexuality. Shared housing. A unit occupied by two or more families. The unit consists of both common space for shared use by the occupants of the unit and separate private space for each assisted family. A special housing type: see §982.615 to §982.618. Single person. A person living alone or intending to live alone. Single room occupancy housing (SRO). A unit that contains no sanitary facilities or food preparation facilities, or contains either, but not both, types of facilities. A special housing type: see §982.602 to §982.605. Small rural public housing agency (PHA). Section 38 defines the term “small public housing agency” as a public housing agency “for which the sum of the number of public housing dwelling units administered by the agency and the number of vouchers under section 8(o) administered by the agency is 550 or fewer” and “that predominantly operates in a rural area, as described in section 1026.35(b)(2)(iv)(A) of title 12, Code of Federal Regulations.” After consideration of the public comments discussed above, HUD is interpreting “predominantly operates in a rural area” to mean a small PHA that: 12.A.b Packet Pg. 1985 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. GL-15 (1) Has a primary administrative building with a physical address in a rural area as described in 12 CFR 1026.35(b)(2)(iv)(A); or (2) More than 50 percent of its combined public housing units and voucher units under section 8(o) are in rural areas as described in 12 CFR 1026.35(b)(2)(iv)(A). HUD also clarifies that voucher units under section 8(o) include those in the tenant-based Housing Choice Voucher (HCV) program and the Project-Based Voucher (PBV) program. Social Security Number (SSN). The nine-digit number that is assigned to a person by the Social Security Administration and that identifies the record of the person's earnings reported to the Social Security Administration. The term does not include a number with a letter as a suffix that is used to identify an auxiliary beneficiary. Special admission. Admission of an applicant that is not on the PHA waiting list or without considering the applicant's waiting list position. Special housing types. See subpart M of part 982. Subpart M states the special regulatory requirements for: SRO housing, congregate housing, group homes, shared housing, cooperatives (including mutual housing), and manufactured homes (including manufactured home space rental). Specified Welfare Benefit Reduction. Those reductions of welfare benefits (for a covered family) that may not result in a reduction of the family rental contribution. A reduction of welfare benefits because of fraud in connection with the welfare program, or because of welfare sanction due to noncompliance with a welfare agency requirement to participate in an economic self-sufficiency program. Spouse. The marriage partner of the head of household. Stalking. Engaging in a course of conduct directed at a specific person that would cause a reasonable person to fear for his or her safety or others; or suffer substantial emotional distress. State Wage Information Collection Agency (SWICA). The state agency, including any Indian tribal agency, receiving quarterly wage reports from employers in the state, or an alternative system that has been determined by the Secretary of Labor to be as effective and timely in providing employment-related income and eligibility information. Subsidy standards. Standards established by a PHA to determine the appropriate number of bedrooms and amount of subsidy for families of different sizes and compositions. Supportive Housing. Affordable housing, owned by a nonprofit organization, with on-site social services for tenants with special needs. Suspension. The term on the family’s voucher stops from the date the family submits a request for PHA approval of the tenancy, until the date the PHA notifies the family in writing whether the request has been approved or denied. This practice is also called “tolling”. Tenancy Addendum. For the Housing Choice Voucher Program, the lease language required by HUD in the lease between the tenant and the owner. Tenant. The person or persons (other than a live-in aide) who executes the lease as lessee of the dwelling unit. 12.A.b Packet Pg. 1986 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. GL-16 Tenant rent to owner. See “Family rent to owner”. Term of Lease. The amount of time a tenant agrees in writing to live in a dwelling unit. Total Tenant Payment (TTP). The total amount the HUD rent formula requires the tenant to pay toward rent and utilities. Unit. Residential space for the private use of a family. The size of a unit is based on the number of bedrooms contained within the unit and generally ranges from zero (0) bedrooms to six (6) bedrooms. Utilities. Water, electricity, gas, other heating, refrigeration, cooking fuels, trash collection, and sewage services. Telephone service is not included. Utility allowance. If the cost of utilities (except telephone) and other housing services for an assisted unit is not included in the tenant rent but is the responsibility of the family occupying the unit, an amount equal to the estimate made or approved by a PHA or HUD of the monthly cost of a reasonable consumption of such utilities and other services for the unit by an energy-conservative household of modest circumstances consistent with the requirements of a safe, sanitary, and healthful living environment. Utility reimbursement. In the voucher program, the portion of the housing assistance payment which exceeds the amount of rent to owner. Utility hook-up charge. In a manufactured home space rental: Costs payable by a family for connecting the manufactured home to utilities such as water, gas, electrical and sewer lines. Vacancy Loss Payments. (Applies only to pre-10/2/95 HAP Contracts in the Rental Certificate Program). When a family vacates its unit in violation of its lease, the owner is eligible for 80% of the contract rent for a vacancy period of up to one additional month, (beyond the month in which the vacancy occurred) if s/he notifies the PHA as soon as s/he learns of the vacancy, makes an effort to advertise the unit, and does not reject any eligible applicant except for good cause. Very Low Income Family. A low-income family whose annual income does not exceed 50% of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. HUD may establish income limits higher or lower than 50% of the median income for the area on the basis of its finding that such variations are necessary because of unusually high or low family incomes. This is the income limit for the housing choice voucher program. Veteran. A person who has served in the active military or naval service of the United States at any time and who shall have been discharged or released therefrom under conditions other than dishonorable. Violence Against Women Reauthorization Act (VAWA) of 2013. Prohibits denying admission to the program to an otherwise qualified applicant or terminating assistance on the basis that the applicant or program participant is or has been a victim of domestic violence, dating violence, sexual assault, or stalking. Violent criminal activity. Any illegal criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force against the person or property of another. 12.A.b Packet Pg. 1987 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2022 Nan McKay & Associates Unlimited copies may be made for internal use. GL-17 Vital Documents. Any “document that is critical for ensuring meaningful access to the [PHA’s] major activities generally and LEP persons specifically.” Whether a document is vital depends on the “importance of the program, information, encounter, or service involved, and the consequence to the LEP person if the information in question is not provided accurately or in a timely manner.” Voucher (Housing Choice Voucher). A document issued by a PHA to a family selected for admission to the housing choice voucher program. This document describes the program and the procedures for PHA approval of a unit selected by the family. The voucher also states obligations of the family under the program. Voucher holder. A family holding a voucher with an unexpired term (search time). Voucher program. The housing voucher program. Waiting list. A list of families organized according to HUD regulations and PHA policy who are waiting for a unit to become available. Waiting list admission. An admission from the PHA waiting list. Welfare assistance. Income assistance from federal or state welfare programs, including assistance provided under TANF and general assistance. Does not include assistance directed solely to meeting housing expenses, nor programs that provide health care, child care or other services for working families. For the FSS program (24 CFR 984.103), welfare assistance includes only cash maintenance payments designed to meet a family’s ongoing basic needs. Does not include nonrecurring short term benefits designed to address individual crisis situations, work subsidies, supportive services such as child care and transportation provided to families who are employed, refundable earned income tax credits, contributions to and distributions from Individual Development Accounts under TANF, services such as counseling, case management, peer support, child care information and referral, financial empowerment, transitional services, job retention, job advancement, and other employment- related services that to not provide basic income support, amounts solely directed to meeting housing expenses, amounts for health care, Supplemental Nutrition Assistance Program (SNAP) and emergency rental and utilities assistance, SSI, SSDI, or social security, and child-only or non-needy TANF grants made to or on behalf of a dependent child solely on the basis of the child’s need and not the need of the child’s current non-parental caretaker. Welfare-to-work (WTW) family. A family assisted by a PHA with Voucher funding awarded to the PHA under the HUD welfare-to-work voucher program (including any renewal of such WTW funding for the same purpose). 12.A.b Packet Pg. 1988 Attachment: Draft Administrative Plan FY2023-24 [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-1 SANTA MONICA HOUSING AUTHORITY FAMILY SELF-SUFFICIENCY PROGRAM ACTION PLAN Approved by the Housing Division Manager and Submitted to HUD on 11.17.2022 Attachment C 12.A.c Packet Pg. 1989 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-2 FSS Program Action Plan Table of Contents INTRODUCTION .......................................................................................................................... 3 PROGRAM SIZE AND CHARACTERISTICS ............................................................................ 4 PROGRAM OBJECTIVES [24 CFR 984.102] .............................................................................. 6 SELECTION PROCEDURES ........................................................................................................ 7 OUTREACH EFFORTS ................................................................................................................. 9 ASSURANCE OF NONINTERFERENCE ................................................................................. 10 ACTIVITIES AND SUPPORT SERVICES ................................................................................ 11 METHOD OF IDENTIFYING FAMILY SUPPORT NEEDS .................................................... 13 CONTRACT OF PARTICIPATION ............................................................................................ 14 PROGRAM TERMINATION, WITHHOLDING OF SERVICES, AND GRIEVANCE PROCEDURES............................................................................................................................. 16 ESCROW ACCOUNT AND OTHER INCENTIVES ................................................................. 18 PORTABILITY ............................................................................................................................ 19 TIMETABLE ................................................................................................................................ 21 REASONABLE ACCOMMODATIONS, EFFECTIVE COMMUNICATIONS, AND LIMITED ENGLISH PROFICIENCY REQUIREMENTS .......................................................................... 22 COORDINATION OF SERVICES .............................................................................................. 23 OTHER POLICIES ....................................................................................................................... 24 DEFINITIONS .............................................................................................................................. 24 12.A.c Packet Pg. 1990 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-3 Chapter 18 THE FAMILY SELF-SUFFICIENCY PROGRAM ACTION PLAN INTRODUCTION This document constitutes the Family Self Sufficiency (FSS) Program Action Plan for the FSS program operated by Santa Monica Housing Authority. It was submitted to HUD on 11/17/2022. The purpose of the FSS Program is to promote the development of local strategies to coordinate the use of HUD assistance with public and private resources in order to enable eligible families to make progress toward economic security. The purpose of the FSS Action Plan is to establish policies and procedures for carrying out the FSS program in a manner consistent with HUD requirements and local objectives. This FSS Action Plan describes Santa Monica Housing Authority’s local policies for operation of the FSS program in the context of federal laws and regulations. The FSS program will be operated in accordance with applicable laws, regulations, notices and HUD handbooks. The policies in this FSS Action Plan have been designed to ensure compliance with all approved applications for HUD FSS funding. The FSS program and the functions and responsibilities of PHA staff are consistent with Santa Monica Housing Authority’s Personnel Policy and Agency Plan. 12.A.c Packet Pg. 1991 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-4 PROGRAM SIZE AND CHARACTERISTICS FAMILY DEMOGRAPHICS These tables describe the demographics of the population expected to be served by the Santa Monica Housing Authority’s Action Plan. The FSS program serves the following housing assistance program particip ants: ☐ Public Housing, ☑ Housing Choice Vouchers (HCV): Tenant-Based Vouchers Housing Choice Vouchers (HCV): Project-Based Vouchers (PBV) ☐ Housing Choice Vouchers (HCV): HCV Homeownership ☐ Housing Choice Vouchers (HCV): Other special purpose vouchers (e.g. FUP, FUP-Y, FYI, VASH, EHV, etc.) (Specify: ________________________________________) ☐ Section 8 Moderate Rehabilitation ☐ Project-Based Rental Assistance (PBRA) As part of the required contents of the FSS action plan, family demographics of the housing choice voucher program participants serve to provide a description of the number, size, characteristics, and other descriptive data (including racial and ethnic data of those participants). These data may later be used to help the housing authority and the program coordinating committee (PCC) to identify the supportive service needs of the families expected to participate in the FSS program. The HCV Program is comprised of approximately 67% female heads of households (HOH) and 33% male HOHs. The racial and ethnic makeup of the FSS program will reflect that of the PHA’s HCV program population with 83.3% identifying as Hispanic or Latino, 75.2% White, 20.6% African American, 0.4% Asian/Pacific Islander, 1.0% Native American, and 2.8% mixed ethnicity or unknown. The average size of each household is 1.46 persons, with 84.5% of families having dependents, 9.5% homeless at admission, 65.2% elderly, and 60.2% disabled. 69.3% of families have an Adjusted Monthly Income at or above $1,000, 24.1% between $500- $1,000, 3.9% between $200-$500, 1.7% less than $200, and 0.9% at zero income. 12.A.c Packet Pg. 1992 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-5 SUPPORTIVE SERVICES NEEDS Families expected to enroll in the Santa Monica Housing Authority FSS program have service needs including, but not limited to: • Training in basic skills and executive function (including household management) • Employment training, including sectoral training and contextualized and/or accelerated basic skills instruction • Job placement assistance • Financial coaching, including assistance with budgeting, banking, credit, debt, and savings • GED preparation • Higher education guidance and support • English as a Second Language • Assistance accessing and paying for childcare • Transportation assistance • Dental care, health care, and mental health care including substance abuse treatment/ counseling • Homeownership readiness This list of supportive services needs is based on: ☑ Experience with past FSS or other supportive service program participants 12.A.c Packet Pg. 1993 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-6 PROGRAM OBJECTIVES [24 CFR 984.102] The federal objectives for the FSS program are specified in 24 CFR 984.102. Santa Monica Housing Authority’s FSS program seeks to help families make progress toward economic security by supporting the family’s efforts to: • Increase earned income • Build financial capability • Achieve personal and financial goals Minimum Program Size. In accordance with CFR §984.105, Santa Monica Housing Authority has a remaining FSS program mandate to serve 0 families. This is calculated based on the table below. This is our best estimate at this time, and it includes the mandate the HCV program. Original Number of Participants Mandated in HCV FSS Graduates Remaining Mandatory Slots 235 235 0 Therefore, as of the time of preparation of this Action Plan, Santa Monica Housing Authority expects to be able to serve the remaining families in the FSS program at this time. ESTIMATE OF PARTICIPATING FAMILIES Santa Monica Housing Authority has met and exceeded its statutory requir ements to enroll FSS participants and is in the process of sunsetting its FSS program. The Housing Authority will not accept further admissions to FSS. OTHER SELF-SUFFICIENCY PROGRAMS ☑ Option 2: No families from other self-sufficiency programs are expected to enroll in the FSS program. 12.A.c Packet Pg. 1994 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-7 SELECTION PROCEDURES WAITLIST A waiting list was established for families whose applications could not be accepted at the time of initial application due to program capacity limits. The waiting list include d the name and contact information for the head of household of the applicant family and the date of their application. PREFERENCES ☑ Option 1: No preference: The FSS program has not adopted any admissions preferences. Families were selected based on the following selection method: Selection Method Lottery ☐ Length of time living in subsidized housing ☐ Date the family expressed an interest in participating in the FSS program ☑ SCREENING FOR MOTIVATION ☑ Option 1: Santa Monica Housing Authority does not use any motivational screening factors to measure a family’s interest and motivation to participate in the FSS program. COMPLIANCE WITH NONDISCRIMINATION POLICIES Santa Monica Housing Authority complies with all Federal, State, and local nondiscrimin ation laws and regulations, including but not limited to the Fair Housing Act, the Americans with Disabilities Act, and Section 504 of the Rehabilitation Act of 1973. No person shall be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination under the FSS program on the grounds of race, color, sex, religion, national or ethnic origin, family status, source of income, disability or perceived gender identity and sexual orientation. In addition, Santa Monica Housing Authority’s FSS staff will, upon request, provide reasonable accommodation to persons with disabilities to ensure they are able to take advantage of the services provided by the FSS program (see Requests for Reasonable Accommodations). FSS Service Provider staff has the primary responsibility to make sure that participants are not discriminated against in the selection process. For families or individuals whose potential enrollment is in question, SMHA staff will review the file during the staff review meeting to ensure that non-selection is not based on discriminatory factors before the final decision is made. Applicants will be notified in writing of the reason(s) they were not selected for participation and 12.A.c Packet Pg. 1995 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-8 will have the opportunity to appeal the decision (see Hearing Procedures). At all times, Santa Monica Housing Authority will select families for participation in the FSS program in accordance with FSS Regulations and HUD guidelines. RE-ENROLLMENT OF PRIOR FSS PARTICIPANTS The following previous FSS families will be allowed to re-enroll in Santa Monica Housing Authority’s FSS program: ☐ FSS program graduates ☑ FSS participants who have withdrawn voluntarily ☐ Families terminated with escrow disbursement ☑ Families involuntarily terminated ☐ Family members who were not Heads of FSS Family previously ☐ No member of previously enrolled families may re-enroll The following conditions apply to re-enrollment: The SMHA currently accepts FSS applications. HEAD OF FSS FAMILY The head of the FSS family is designated by the participating family. Santa Monica Housing Authority may make itself available to consult with families on this decision, but the assisted household chooses the head of FSS family that is most suitable for their individual household circumstances. The designation or any changes by the household to the Head of FSS Family must be submitted to Santa Monica Housing Authority in: ☑ Writing 12.A.c Packet Pg. 1996 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-9 OUTREACH EFFORTS Santa Monica Housing Authority conducts widespread outreach to encourage enrollment in the FSS program. Outreach efforts include the activities identified through the checked boxes below: Interpreters will be used as needed and clients may contact staff t o express interest in person, via our toll-free telephone number, or by email. The following conditions apply to enrollment outreach: The SMHA currently accepts FSS applications. PHA Policy Outreach Methods Details ☑ Posting FSS program flyers in locations likely to be seen by eligible families In voucher briefing folders, the office lobby, and on the program application ☑ Providing information about the FSS program during scheduled reexaminations At briefing and annual re-examination ☐ Providing information about the FSS program at voucher orientation sessions ☐ Holding well-publicized information sessions about FSS ☐ Providing information about the FSS program to eligible families by mail ☐ Facebook ☐ Twitter ☐ Instagram Outreach informational material about the FSS Program includes information about: • Program overview • Program benefits • Available resources • Participant responsibilities • Program outcomes 12.A.c Packet Pg. 1997 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-10 Outreach efforts are targeted equally to all families, using materials in both English and Spanish to ensure that non-English and limited English-speaking families receive information and have the opportunity to participate in the FSS Program. In conductin g outreach, Santa Monica Housing Authority accounts for the needs of persons with disabilities, including persons with impaired vision, hearing or mobility, and provide effective communications to ensure that all eligible families who wish to participate are able to do so. ASSURANCE OF NONINTERFERENCE Participation in the FSS Program is voluntary. A family’s decision on whether to participate in FSS will have no bearing on Santa Monica Housing Authority’s decision of whether to admit the family into the Section 8/ Housing Choice Voucher program. The family’s housing assistance will not be terminated based on whether they decide to participate in FSS, their successful completion of the Certificate of Completion, or on their failure to comply with FSS program requirements. Santa Monica Housing Authority will clearly state the voluntary nature of FSS program participation in all FSS outreach and recruitment efforts. 12.A.c Packet Pg. 1998 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-11 ACTIVITIES AND SUPPORT SERVICES As described in the next section, all families participating in the FSS program benefit from coaching that helps them identify and achieve goals that the family selects. Drawing on Program Coordinating Committee members and partner agencies, service provider staff at St. Joseph Center provide referrals as needed to help FSS participants achieve their goals: Supportive Service Category Specific Service Source/Partner ☑ Assessment ☑ Vocational Assessment Educational ☑ Assessment Disability Assessment ☑ Disability Other specialized assessments St. Joseph Center Step Up Disability Community Resource Center Chrysalis JVS Hospitality Training Academy ☑ Child Care ☑ Infant Care / Toddler Care Preschool Care ☑ Afterschool Care ☑ Homework Assistance Early Childhood Lab School The Growing Place Family Services of Santa Monica CREST Virginia Avenue Park Santa Monica Police Activities League ☑ Transportation ☑ Discounted bus passes ☐ Assistance with car repairs ☐ Assistance with car purchase Big Blue Bus LA Metro – LIFE program ☑ Education ☑ High School Equivalency/GED ☑ English as a Second Language ☑ Post-Secondary certificates ☑ Advanced Degrees Santa Monica-Malibu Unified School District Santa Monica City College UCLA ☑ Skills Training ☐ Training in Executive Function ☑ Basic Skills Training ☑ Emerging Technologies Training ☐ Biomedical Training (including CNA, phlebotomy, x-ray and other tech, etc.) ☑ On-the-Job Training ☑ Apprenticeships ☐ Skilled Labor training St. Joseph Center Coding Program St. Joseph Center Culinary Arts Program Chrysalis JVS Hospitality Training Academy ☑ Job Search Assistance ☑ Resume Preparation ☑ Interviewing Skills ☑ Dress for Success ☑ Workplace Skills ☑ Job Development ☑ Job Placement Chrysalis JVS Hospitality Training Academy 12.A.c Packet Pg. 1999 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-12 ☑ Micro and Small Business Development ☑ Small business development services ☑ Small business Mentoring ☑ Entrepreneurship Training Small Business Development Center California, Los Angeles County Network Santa Monica College Entrepreneurship Program ☑ Health/Mental Health Care ☑ Alcohol and Drug Abuse Prevention ☑ Alcohol and Drug Abuse Treatment ☑ Primary care ☑ Dental services ☑ Mental Health Services ☐ Health Insurance Advising CLARE Matrix Venice Family Clinic Step Up On Second The People Concern ☑ Crisis Services ☑ Crisis Assessment ☑ Crisis Intervention ☑ Crisis Management ☑ Crisis Resolution Fire Department CRU LA County 988 Santa Monica Police and Fire services ☑ Child/Adult Protective Services ☑ Needs Assessment ☑ Case Planning ☑ Information Referral WISE and Healthy Aging Westside Regional Center Santa Monica Police and Fire services ☑ Household Management ☑ Training in Household Management St. Joseph Center ☑ Financial Empowerment ☑ Financial education ☑ Financial coaching ☐ Banking services ☑ Training in money management St. Joseph Center ☐ Individual Development Accounts ☐ Matched Savings Accounts ☑ Legal Services ☑ Legal Services Legal Aid Foundation of Los Angeles Bet Tzedek ☐ Debt Resolution & Credit Repair ☐ Assistance negotiating the resolution of past-due debt 12.A.c Packet Pg. 2000 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-13 METHOD OF IDENTIFYING FAMILY SUPPORT NEEDS IDENTIFYING FAMILY SUPPORT NEEDS To help determine the supportive services needs of each family, FSS Service Provider staff will complete an initial informal needs assessment with and for each family before completion of the initial Individual Training Service Plan (ITSP) and signing the Contract of Participation. After enrollment in the FSS program, FSS Service Provider staff may make referrals to partner agencies for completion of one or more formal needs assessments. These assessments may focus on such issues as: employment readiness and employment training needs, educational needs related to secondary and post-secondary education, financial health, and other topics, depending on the needs and interests of the family. The formal assessments may lead to adjustments to the Individual Training Service Plan, if requested by the family. DELIVERING APPROPRIATE SUPPORT SERVICES Coaching. All families who participate in the FSS program will be assigned an FSS Service Provider offering individualized case management services to help each participating family: • Understand the benefits of participating in the FSS program and how the program can help the family achieve its goals. • Identify achievable, but challenging, interim and final goals for participation in the FSS program, break down the goals into achievable steps and accompany the family through the process. • Identify existing family strengths and skills. • Understand the needs that the family has for services and supports that may help the family make progress toward their goals. • Access services available in the community through referral to appropriate service providers. • Overcoming obstacles in the way of achieving a family’s goals. TRANSITIONAL SUPPORTIVE SERVICE ASSISTANCE ☑ Option 1: Families that have completed their Certificate of Participation (CoP) and remain in assisted housing may request assistance with referrals to service providers in order to continue their progress toward economic security. Subject to limitations on staff capacity, Santa Monica Housing Authority will try to help these families with appropriate referrals. The time spent on these referrals will not be covered by funds designated by HUD to support the FSS program. 12.A.c Packet Pg. 2001 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-14 CONTRACT OF PARTICIPATION All families enrolled in the FSS program are required to sign a Contract of Participation (CoP) that includes an Individual Training and Services Plan (ITSP). This section describes the contents of the CoP and Santa Monica Housing Authority’s policies and practices regarding the CoP. FORM AND CONTENT OF CONTRACT The CoP, which will incorporate one ITSP for each participating member of the family, sets forth the principal terms and conditions governing participation in the FSS program. These include the rights and responsibilities of the FSS family and of Santa Monica Housing Authority, the services to be provided to, and the activities to be completed by, each adult member of the FSS family who elects to participate in the program. ITSP GOALS Each individual’s ITSP establishes specific interim and final goals by which Santa Monica Housing Authority and the family will measure the family’s progress towards fulfilling its obligations under the CoP. For any FSS family that is a recipient of welfare assistance at the outset of the CoP or that receives welfare assistance while in the FSS program, Santa Monica Housing Authority will establish as a final goal that every member of the family become independent from welfare assistance before the expiration of the CoP. The ITSP of the head of FSS family wi ll also include as a final goal that they seek and maintain suitable full-time employment (Full time is defined as at least 25 hours per week). FSS Service Provider staff will work with each participating individual to identify additional ITSP goals that are relevant, feasible and desirable. Any such additional goals will be realistic and individualized. DETERMINATION OF SUITABLE EMPLOYMENT As defined in the FSS regulations (24 CFR 984.303(4)(iii)), a determination of what constitutes “suitable employment” for each family member with a goal of seeking and maintaining it will be made by Santa Monica Housing Authority, with the agreement of the affected participant, based on the skills, education, job training and receipt of other benefits of the family member and based on the available job opportunities within the community. CONTRACT OF PARTICIPATION TERMS AND EXTENSIONS The CoP will go into effect on the first day of the month following the execution of the CoP. The initial term of the CoP will run the effective date through the five-year anniversary of the first reexamination of income that follows the execution date. Families may request up to two one- year extensions and are required to submit a written request that documents the need for the extension. Santa Monica Housing Authority will grant the extension as required by HUD, provided good cause exists to do so. In this context, good cause means: (i) Circumstances beyond the control of the FSS family, as determined by Santa Monica Housing Authority, such as a serious illness or involuntary loss of employment; 12.A.c Packet Pg. 2002 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-15 (ii) Active pursuit of a current or additional goal that will result in furtherance of self- sufficiency during the period of the extension (e.g. completion of a college degree during which the participant is unemployed or under -employed, credit repair towards being homeownership ready, etc.) as determined by Santa Monica Housing Authority or (iii) Any other circumstances that Santa Monica Housing Authority determines warrants an extension, including force majeure. COMPLETION OF THE CONTRACT The CoP is completed, and a family’s participation in the FSS program is concluded , when the FSS family has fulfilled all its obligations under the CoP, including all family members’ ITSPs, on or before the expiration of the contract term. The family must provide appropriate documentation that each of the ITSP goals has been completed. Santa Monica Housing Authori ty accepts the following form of verification for completion of the ITSP goals: ☑ Option 2: Santa Monica Housing Authority will require 3rd-party verification to document completion of ITSP goals. MODIFICATION Santa Monica Housing Authority and the FSS family may mutually agree to modify the CoP with respect to the ITSP and/or the contract term, and/or designation of the head of FSS household. All modifications must be in writing and signed by Santa Monica Housing Authority as well as the Head of FSS Family. PHA Policy Santa Monica Housing Authority allows for modifications to the CoP under the following circumstances: ☑ When the modifications to the ITSP improve the participant’s ability to complete their obligations in the CoP or progress toward economic self -sufficiency ☑ When the designated head of the FSS family ceases to reside with other family members in the assisted unit, and the remaining family members, after consultation with Santa Monica Housing Authority, designate another family member to be the FSS head of family ☑ When a relocating family is entering the FSS program of a receiving PHA and the start date of the CoP must be changed to reflect the date the new CoP is signed with the receiving PHA ☑ Option 1: Santa Monica Housing Authority allows modifications at any time during the term of the CoP CONSEQUENCES OF NONCOMPLIANCE WITH THE CONTRACT Participant non-compliance with the CoP may result in termination from the FSS program. See policies on Involuntary Termination in the following section. 12.A.c Packet Pg. 2003 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-16 PROGRAM TERMINATION, WITHHOLDING OF SERVICES, AND GRIEVANCE PROCEDURES INVOLUNTARY TERMINATION Santa Monica Housing Authority may involuntarily terminate a family from FSS under the following circumstances: i. If the participant fails to meet their obligations under the Contract of Participation, the Individual Training and Services Plan and related documentation. Non - compliance includes: ii. Missing scheduled meetings, failure to return phone calls, and/or maintain contact after written notification of non-compliance iii. Failure to work on activities and/or goals set forth in the Individual Training and Services Plan, including employment activities iv. Failure to complete activities and/or goals within the specified time frames; and/or v. If the participant’s housing assistance has been terminated. Participants who fail to meet their obligations under paragraph I above, as determined by an FSS coordinator, will be given the opportunity to attend a required meeting with the FSS Coordinator or assigned Santa Monica Housing Authority representative to review the situation. At this meeting, a review of the Contract of Participation, Individual Tra ining and Services Plan, and all related documentation will be conducted, and amendments will be made as necessary (within HUD guidelines) to allow for changes in circumstances. Failure to contact the FSS Coordinator to schedule this meeting within fourtee n (14) days of a written request by the FSS program to set up this a meeting or failure by the FSS Head of Household to attend this meeting without some type of correspondence to clarify the issue(s), may lead to termination from the program. The FSS Coordinator will also attempt to contact the participant via phone, text, in person and/or email prior to the review meeting. Participants who remain out of compliance after this meeting will be subject to termination from the FSS program. If the initial meeting does not resolve the problem, or if the meeting is not requested by the family within the required period, notification of termination will be made to the family by letter stating: 1. The specific facts and reasons for termination; 2. A statement informing the family of their right to request an informal hearing and the date by which this request must be received (see Grievance Procedures); 12.A.c Packet Pg. 2004 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-17 3. A statement informing the family that termination from the FSS program for the reasons stated therein will not result in termination of the family’s housing assistance. Failure to request a hearing in writing by the deadline will result in closure of the family’s FSS file and all rights to a hearing will be waived. All escrow money held on the family’s behalf will be forfeited in accordance with HUD regulations. Housing assistance will not be terminated based on non-compliance with the FSS program. The current amount of escrow in the family’s escrow account will be included in the letter. VOLUNTARY TERMINATION Participants may also be terminated from the FSS program under the following circumstances: • Mutual consent of both parties; and/or • The family’s withdrawal from the program. TERMINATION WITH ESCROW DISBURSEMENT In most cases, families whose FSS contracts are terminated will not be entitled to disbursement of their accrued FSS escrowed funds. However, the CoP will be terminated with FSS disbursement when one of the following situations occurs: i Services that Santa Monica Housing Authority and the FSS family have agreed are integral to the FSS family’s advancement towards self-sufficiency are unavailable. ii The head of the FSS family becomes permanently disabled and unable to work during the period of the contract, unless Santa Monica Housing Authority and the FSS family determine that it is possible to modify the contract to designate a new head of the FSS family. iii An FSS family in good standing moves outside the jurisdiction of the PHA (in accordance with portability requirements at 24 CFR §982.353) for good cause, as determined by the PHA, and continuation of the CoP after the move, or completion of the CoP prior to the move, is not possible. GRIEVANCE PROCEDURES Santa Monica Housing Authority’s PHA Plan details the Housing Authority’s Grievance Procedures (See Santa Monica Housing Authority Admin Plan Chapter 16). If the family does not appear at the scheduled time and was unable to reschedule the hearing in advance due to the nature of the emergency, the family must contact Santa Monica Housing Authority within 24 hours of the scheduled hearing date, excluding weekends and holidays. The Housing Authority will then reschedule the hearing. The Hearing Officer will issue a written decision to the family within ten (10) business days after the hearing. The decision made by the Hearing Officer will be final. Santa Monica Housing Authority reserves the right to overturn the Hearing Officer’s decision only in the event that the decision is contrary to the organization’s written policies. 12.A.c Packet Pg. 2005 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-18 ESCROW ACCOUNT AND OTHER INCENTIVES FSS participants will be eligible to build savings from the FSS escrow account. Key policies and procedures applicable to the FSS escrow account, as well as any additional incentives offered by Santa Monica Housing Authority, are described below. ADDITIONAL INCENTIVES ☑ Option 1. While Santa Monica Housing Authority’s FSS program does not provide any other financial incentives for FSS participants, it does provide coaching services, as well as referrals to other service providers, that can be very valuable for FSS program participants. INTERIM ESCROW DISBURSEMENTS ☑ Option 1: Santa Monica Housing Authority will allow for interim disbursements on a case-by-case basis: Families may request an interim disbursement from the escrow account once the FSS family has fulfilled at least one interim goal, in order to pay for specific goods or services that will help the family make progress toward achieving the goals in its Individual Training and Services Plan (ITSP). Requests must generally be made writing. Requests may be made through the term of the Contract of Participation. Examples of potentially eligible activities include, but are not limited to, payments for post-secondary education, job training, credit repair, small business start-up costs, job start-up expenses, and transportation to/from a place of employment. A determination of whether the family qualifies for the requested interim disbursement will be made on a case-by-case basis by FSS Service Provider staff and an administrative staff representative of Santa Monica Housing Authority. FSS Service Provider staff will first explore options for services and in-kind donations from partners, which must be exhausted before a request for an interim disbursement will be approved. USE OF FORFEITED ESCROW FUNDS ☑ Option 2: Treatment of forfeited FSS escrow account funds. FSS escrow account funds forfeited by the FSS family (if any) will be used to support FSS participants in good standing. Upon written request from a family, FSS Service Provider staff and a member of the Program Coordination Committee (PCC) will consider the available funds and make a determination. Please refer to the subsequent “Coordination of Services” section for more information on the function and composition of the PCC for this FSS program. Santa Monica Housing Authority may also initiate a request for the use of forfeited escrow funds. 12.A.c Packet Pg. 2006 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-19 ☑ Option 2A: At the discretion FSS Service Provider staff, forfeited escrow funds may be considered in lieu of an interim escrow disbursement. Forfeited escrow accounts may be deployed: Any time during the term of a household’s Contract of Participation Use of forfeited escrow funds for eligible uses (described below) may be requested by: ☑ Santa Monica Housing Authority ☑ Head of FSS Household ☐ Adults in FSS household, not limited to the Head Eligible uses of forfeited escrow funds include, but are not limited to: Eligible Uses Guidelines/ Limitations ☑ Purchasing a vehicle ☑ Requests will be considered on a case- by-case basis ☑ Childcare ☑ Requests will be considered on a case- by-case basis ☑ Training for Participants ☑ Requests will be considered on a case- by-case basis ☑ Employment or Educational Costs, Including: ☑ Employment Training ☑ Employment Preparation (employment clothing, interview prep) ☑ Education Costs (books, fees, uniforms, tools, etc.) ☑ Requests will be considered on a case- by-case basis ☑ Training for FSS program staff ☑ Training must be approved by [provider entity/ PCC] PORTABILITY PORTABILITY IN INITIAL 12 MONTHS ☑ Option 1: While Santa Monica Housing Authority is not required to allow FSS participants to exercise portability within the initial 12 months after signing a CoP, it is the policy of Santa Monica Housing Authority to allow for portability within this period to the extent feasible. MOVES INTO THE PHA’S JURISDICTION 12.A.c Packet Pg. 2007 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-20 If an FSS participant moves into the PHA’s jurisdiction, they will be admitted in good standing into Santa Monica Housing Authority’s FSS program unless Santa Monica Housing Authority is already serving the number of FSS families identified in this FSS Action Plan and determines that it does not have the resources to manage the FSS contract. Regardless of whether Santa Monica Housing Authority is able to receive an incoming family from another jurisdiction into the FSS program, Santa Monica Housing Authority will agree to allow and support porting families to remain in their initial PHA’s FSS program after porting housing vouchers if the initial PHA requests that the family remain in the initial FSS program and can demonstrate the family is able to fulfill its responsibilities under the initial CoP, the move in jurisdictions notwithstanding. FSS TERMINATION WITH DISBURSEMENT FOR PORTING FAMILIES If an FSS family seeks to move to a jurisdiction that does not offer an FSS program, Santa Monica Housing Authority will closely examine the family’s progress to determine if it would be appropriate to exercise FSS Termination with Disbursement as discussed above in the section on Termination. Where continued FSS participation is not possible, Santa Monica Housing Authority will discuss the options that may be available to the family, depending on the family's specific circumstances, which may include, but are not limited to, modification of the FSS contract, termination of the FSS contract and forfeiture of escrow, termination with FSS escrow disbursement in accordance with 24 CFR § 984.303(k)(1)(iii), or locating a receiving PHA that has the capacity to enroll the family into its FSS program. 12.A.c Packet Pg. 2008 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-21 TIMETABLE PHA Policy ☑ Option 1: Santa Monica Housing Authority will continue to implement the FSS Program per this FSS Action Plan. 12.A.c Packet Pg. 2009 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-22 REASONABLE ACCOMMODATIONS, EFFECTIVE COMMUNICATIONS, AND LIMITED ENGLISH PROFICIENCY REQUIREMENTS Requests for Reasonable Accommodations A person with disabilities may request reasonable accommodations to facilitate participation in the FSS program. Requests will be considered on a case -by-case basis. Requests should be made initially to the FSS Service Provider staff. After a request for an accommodation is presented, the PHA will respond in writing, acknowledging receipt of the request, within a reasonable time not to exceed 10 business days. Based on the verified need for the accommodation, or the absence thereof, the PHA will render its decision within a reasonable period of time. If a family is not satisfied with the staff’s response, the family may submit a request in writing in accordance with th e provider’s reasonable accommodations policy. Request for Effective Communications A person with disabilities may request the use of effective communication strategies in order to facilitate participation in the FSS program. Examples include: appropriate auxiliary aides and services, such as interpreters, computer-assisted real time transcription (CART), captioned videos with audible video description, visual alarm devices, a talking thermostat, accessible electronic communications and websites, documents in alternative formats (e.g., Braille, large print), or assistance in reading or completing a form, etc. Requests should be made initially to FSS Service Provider staff. If a family is not satisfied with the staff’s response, the family may submit a request in writing in accordance with the service provider’s effective communications policy. Limited English Proficiency Santa Monica Housing Authority will comply with HUD requirements to conduct oral and written communication related to the FSS program in languages that are understandable to people with Limited English Proficiency. 12.A.c Packet Pg. 2010 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-23 COORDINATION OF SERVICES CERTIFICATION OF COORDINATION Development of the services and activities under the FSS program has been coordinated with programs under title I of the Workforce Innovation and Opportunity Act 29 U.S.C. 3111 et seq., and other relevant employment, childcare, transportation, training, education, and financial empowerment programs in the area. Implementation will continue to be coordinated, in order to avoid duplication of services and activities. PROGRAM COORDINATING COMMITTEE The principal vehicle for ensuring ongoing coordination of services is the Program Coordinating Committee (PCC), which has been established in accordance with FSS regulations to a ssist in securing commitments of public and private resources for the operation of the FSS Program. Among other responsibilities, the PCC will help the FSS program to identify and build strong referral relationships with providers of supportive services that meet the needs of FSS participants. The PCC will also be consulted in developing program policies and procedures. The PCC will meet as needed and may conduct business on an as-needed basis via email or telephone conferences. The PCC includes the following representatives: 1. One or more FSS Service provider staff and/or Santa Monica Housing Authority staff 2. One or more Santa Monica Housing Authority Housing Choice Voucher participants 3. Representatives from a variety of agencies and individuals, which include but are not limited to the following: a St. Joseph Center b Step Up on Second c Legal Aid Foundation of Los Angeles d Community Corporation of Santa Monica e Chrysalis f JVS g Hospitality Training Academy h Salvation Army 12.A.c Packet Pg. 2011 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-24 OTHER POLICIES Policy Corresponding Action Plan Section (i) Policies related to the modification of goals in the ITSP Contract of Participation (ii) The circumstances in which an extension of the Contract of Participation may be granted Contract of Participation (iii) Policies on the interim disbursement of escrow, including limitations on the use of the funds (if any) FSS Escrow Account and Other Incentives for Participants (iv) Policies regarding eligible uses of forfeited escrow funds by families in good standing FSS Escrow Account and Other Incentives for Participants (v) Policies regarding the re-enrollment of previous FSS participants, including graduates and those who exited the program without graduating Family Selection Procedures (vi) Policies on requirements for documentation for goal completion; Contract of Participation (vii) Policies on documentation of the household’s designation of the “Head of FSS Household”; Family Selection Procedures (viii) Policies for providing an FSS selection preference for porting families (if the PHA elects to offer such a preference) N/A DEFINITIONS Certification means a written assertion based on supporting evidence, provided by t he FSS family or Santa Monica Housing Authority, as may be required under this part, and which: (1) Shall be maintained by Santa Monica Housing Authority in the case of the family’s certification, or by HUD in the case of the PHA’s or owner’s certification; (2) Shall be made available for inspection by HUD, Santa Monica Housing Authority, and the public, as appropriate; and, (3) Shall be deemed to be accurate for purposes of this part, unless the Secretary or Santa Monica Housing Authority, as applicable, determines otherwise after inspecting the evidence and providing due notice and opportunity for comment. 12.A.c Packet Pg. 2012 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-25 Contract of Participation (CoP) means - a contract, in a form with contents approved by HUD, entered into between an FSS family and Santa Monica Housing Authority, operating an FSS Program that sets forth the terms and conditions governing participation in the FSS Program. The CoP includes all Individual Training and Services Plans (ITSPs) entered into between Santa Monica Housing Authority and all members of the family who will participate in the FSS Program, and which plans are attached to the CoP as exhibits. For additional detail, see § 984.303. Effective date of Contract of Participation (CoP) - means the first day of the month following the date in which the FSS family and the PHA entered into the CoP. Eligible families means current Section 8 program participants, as defined in this section, including those participating in other local self-sufficiency programs. Enrollment means the date that the FSS family entered into the CoP with Santa Monica Housing Authority. Family Self-Sufficiency (FSS) Program means the program established by a PHA within its jurisdiction or by an owner to promote self-sufficiency among participating families, including the coordination of supportive services to these families, as authorized by section 23 of the 1937 Act. FSS escrow account (or, escrow) means the FSS escrow account authorized by section 23 of the 1937 Act, and as provided by § 984.305. FSS escrow credit means the amount credited by Santa Monica Housing Authority to the FSS family’s FSS escrow account. FSS family means a family that resides in Public Housing (Section 9) or receives Section 8 assistance or receives HUD Project-Based Rental Assistance for a privately owned property, and that elects to participate in the FSS Program, and whose designated adult member (head of FSS family), as determined in accordance with § 984.303(a), has signed the CoP. FSS family in good standing means, for purposes of this part, an FSS family that is in compliance with their FSS CoP; has either satisfied or are current on any debts owed Santa Monica Housing Authority, and is in compliance with the regulations regarding participation in the relevant rental assistance program. FSS related service program means any program, publicly or privately sponsored, that offers the kinds of supportive services described in the definition of ‘‘supportive services’’ set forth in this § 984.103. FSS slots - refers to the total number of families (as determined in the Action Plan and, for mandatory programs, in § 984.105 of this part) that the PHA will serve in its FSS Program. FSS Program Coordinator means the person(s) who runs the FSS program. This may include (but is not limited to) performing outreach, recruitment, and retention of FSS participants; goal setting and case management/coaching of FSS participants; working with the community and service partners; and tracking program performance. FY means Federal Fiscal Year (starting October 1 and ending September 30, and year designated by the calendar year in which it ends). 12.A.c Packet Pg. 2013 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-26 Head of FSS family means the designated adult family member of the FSS family who has signed the CoP. The head of FSS family may, but is not required to be, the head of the household for purposes of determining income eligibility and rent. Individual Training and Services Plan (ITSP) means a written plan that is prepared by FSS Service Provider staff in consultation with a participating FSS family member (the person with, for, and whom the ITSP is being developed), and which sets forth: (1) The final and interim goals for the participating FSS family member; (2) The supportive services to be provided to the participating FSS family members; (3) The activities to be completed by that family member; and, (4) The agreed upon completion dates for the goals and activities. Each ITSP must be signed by Santa Monica Housing Authority and the participating FSS family member, and is attached to, and incorporated as part of, the CoP. An ITSP must be prepared for each adult family member who elects to participat e in the FSS Program, including the head of FSS family who has signed the CoP. Owner means the owner of multifamily assisted housing. Self-sufficiency means that an FSS family is no longer receiving Section 8, Public Housing assistance, or any Federal, State, or local rent or homeownership subsidies or welfare assistance. Achievement of self-sufficiency, although an FSS program objective, is not a condition for receipt of the FSS escrow account funds. Supportive services mean those appropriate services that Service Provider staff will coordinate on behalf of an FSS family under a CoP, which may include, but are not limited to: (1) Childcare—childcare (on an as-needed or ongoing basis) of a type that provides sufficient hours of operation and serves an appropriate range of ages; (2) Transportation—transportation necessary to enable a participating FSS family member to receive available services, or to commute to their place(s) of employment; (3) Education—remedial education; education for completion of high school or attainment of a high school equivalency certificate; education in pursuit of a post - secondary degree or certificate; (4) Employment Supports—job training, preparation, and counseling; job development and placement; and follow-up assistance after job placement and completion of the CoP; (5) Personal welfare—substance/alcohol abuse treatment and counseling, and health, dental, mental health and health insurance services; (6) Household management—training in household management; (7) Homeownership and housing counseling— homeownership education and assistance and housing counseling; (8) Financial Empowerment—training in financial literacy, such as financial coaching, training in financial management, asset building, and money management, 12.A.c Packet Pg. 2014 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) © Copyright 2021 by Nan McKay & Associates Unlimited copies may be made for internal use. Page 18-27 including engaging in mainstream banking, reviewing and improving credit scores, etc.; (9) Other services—any other services and resources, including case management, optional services, and specialized services for individuals with disabilities, that are determined to be appropriate in assisting FSS families to achieve economic independence and self-sufficiency. Reasonable accommodations and modifications must be made for individuals with disabilities consistent with HUD requirements, including HUD’s legal obligation to make reasonable modifications under Section 504 of the Rehabilitation Act. Welfare assistance means (for purposes of the FSS program only) income assistance from Federal, (i.e. Temporary Assistance for Needy Families (TANF) or subsequent program) State, or local welfare programs and includes only cash maintenance payments designed to meet a family’s ongoing basic needs. Welfare assistance does not include: (1) Nonrecurrent, short-term benefits that: (i) Are designed to deal with a specific crisis or episode of need; (ii) Are not intended to meet recurrent or ongoing needs; and, (iii) Will not extend beyond four months. (2) Work subsidies (i.e., payments to employers or third parties to help cover the costs of employee wages, benefits, supervision, and training); (3) Supportive services such as childcare and transportation provided to families who are employed; (4) Refundable earned income tax credits; (5) Contributions to, and distributions from, Individual Development Accounts under Temporary Assistance for Needy Families (TANF); (6) Services such as counseling, case management, peer support, childcare information and referral, financial empowerment, transitional services, job retention, job advancement, and other employment-related services that do not provide basic income support; (7) Amounts solely directed to meeting housing expenses; (8) Amounts for health care; (9) Supplemental Nutrition Assistance Program and emergency rental and utility assistance; (10) Supplemental Security Income, Social Security Disability Income, or Social Security; and (11) Child-only or non-needy TANF grants made to or on behalf of a dependent child solely on the basis of the child’s need and not on the need of the child’s current non-parental caretaker. 12.A.c Packet Pg. 2015 Attachment: Draft FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) FSS Sample Action Plan OVERVIEW: The FSS Action Plan is a required document that describes the policies and procedures of the public housing agency (PHA) or multifamily property owner (owner) for operation of a local Family Self-Sufficiency (FSS) program. The requirements for the FSS Action Plan, including the procedures for developing and submitting the plan for HUD approval, are described at 24 CFR 984.201. WHAT DOES THE FSS ACTION PLAN INCLUDE? In general terms, the FSS Action Plan describes: •Program size and characteristics of anticipated FSS participants •Services that the FSS program will offer •How the FSS program will be administered See the FSS Action Plan Checklist for a list of specific items to address in the FSS Action Plan. RESOURCES: This Sample Action Plan is based on the requirements for an FSS Action Plan specified in 24 CFR 984.201 and cross-references these regulations and the HUD guidebook, Administering an Effective Family Self-Sufficiency Program: A Guidebook Based on Evidence and Promising Practices. Additional resources for PHA-based FSS programs can be found here. Many of these resources are also applicable to FSS programs offered by multifamily owners. Additional resources for multifamily FSS programs can be found here. WHO NEEDS AN FSS ACTION PLAN? Every FSS program (funded or not) must have a HUD-approved FSS Action Plan in order to operate an FSS Program, whether the program is offered by a PHA or a multifamily owner or is a combined program for families served by the PHA and one or more owners. ELIGIBLE ENTITIES. —The following entities are eligible to administer a local FSS program once their Action Plan has been approved: •A PHA administering housing assistance to or on behalf of an eligible family •The owner or sponsor of a multifamily property (owner) receiving project-based rental assistance Each PHA or PBRA project must have its own FSS Action Plan approved by HUD. If an entity manages an FSS program at several sites or if there is a Joint FSS program, you may indicate on the cover page that the Action Plan is essentially identical to [name the others] but the demographics and program size sections will be unique to each PHA/project. Single action plan. A PHA/owner should submit one Action Plan that covers all applicable rental assistance programs (Section 8 vouchers, PBRA, Mod Rehab, and public housing) served by the FSS program. Attachment D 12.A.d Packet Pg. 2016 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 2 HOW TO USE THIS DOCUMENT: •Left Column: Instructions. The document has two columns. The left-hand column provides instructions to guide users in completing the Action Plan and a list of policy decisions that need to be made to complete the section. •Right Column: Sample Action Plan Text. The right-hand column contains sample action plan text. o FSS programs may adapt this sample text to meet their needs and reflect the specific policies the program elects to adopt. For example, enter the name of the PHA/owner in the spaces marked with “[organization],” surrounded by square brackets, and fill in other information surrounded by square brackets. o The sample action plan text includes options to include where there is a choice. Instructions (to be deleted after entering your action plan information) are marked as “Instructions” and highlighted in yellow. o Suggested options or choices are marked and are highlighted in blue. •Document Structure and Sections. This Sample Action Plan is organized into sections as a suggestion to help users organize the content. FSS programs have discretion to organize the content differently and use different section titles, so long as it includes all of the required content. •Completing Your Action Plan. To use this Template as your Action Plan, select the policy options that match your policy choices in the right-hand column and delete any options that do not apply to your program. Delete any instructions or other text in the right-hand column that are not necessary for understanding the document. The remaining text in the right-hand column will constitute your Action Plan and may be submitted to HUD for approval. There is no need to delete the instructions in the left-hand column before submitting. Table of Contents I. Introduction ............................................................................................................................................................................................................ 4 II. Program Objectives .............................................................................................................................................................................................. 4 III. Program Size and Characteristics ...................................................................................................................................................................... 5 12.A.d Packet Pg. 2017 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 3 III.A. – Family Demographics ................................................................................................................................................................................... 5 III.B – Supportive Services Needs ........................................................................................................................................................................... 12 III. C. – Estimate of Participating Families ............................................................................................................................................................... 13 III. D – Other Self-Sufficiency Programs .................................................................................................................................................................. 14 IV. Family Selection Procedures ............................................................................................................................................................................. 15 V. Outreach .............................................................................................................................................................................................................. 26 VI. FSS Escrow Account and Other Incentives for Participants.......................................................................................................................... 28 VII. Family Activities and Supportive Services ..................................................................................................................................................... 37 VIII. Method of Identifying Family Support Needs and Delivering Appropriate Support Services ................................................................. 41 IX. Contract of Participation ................................................................................................................................................................................... 42 X. Program Termination, Withholding of Services, and Available Grievance Procedures .............................................................................. 49 XI. Assurance of Non-Interference ......................................................................................................................................................................... 54 XII. Timetable ........................................................................................................................................................................................................... 55 XIII. Reasonable Accommodations, Effective Communications, and Limited English Proficiency .................................................................. 56 XIV. Coordination of Services .................................................................................................................................................................................. 57 XIV.A Coordination of Services (PHAs only) ....................................................................................................................................................... 57 XIV.B Coordination of Services (Multifamily owners only) ................................................................................................................................. 58 XV. FSS Portability (Applicable to HCV Only) ..................................................................................................................................................... 60 XVI. Other Policies .................................................................................................................................................................................................... 62 XVII. Definitions ........................................................................................................................................................................................................ 64 12.A.d Packet Pg. 2018 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 4 I. Introduction Instructions: While not required by the applicable regulations, an introduction is recommended to provide an overview of what the document is and what it contains. Introduction This document constitutes the Family Self Sufficiency (FSS) Program Action Plan for the FSS program operated by [organization name]. It was submitted to HUD on [date]. The purpose of the FSS Program is to promote the development of local strategies to coordinate the use of HUD assistance with public and private resources in order to enable eligible families to make progress toward economic security. The purpose of the FSS Action Plan is to establish policies and procedures for carrying out the FSS program in a manner consistent with HUD requirements and local objectives. This FSS Action Plan describes the [organization name]’s local polices for operation of the FSS program in the context of federal laws and regulations. The FSS program will be operated in accordance with applicable laws, regulations, notices and HUD handbooks. The policies in this FSS Action Plan have been designed to ensure compliance with all approved applications for HUD FSS funding. For PHAs: The FSS program and the functions and responsibilities of PHA staff are consistent with the [organization name]’s personnel policy and Agency Plan. II. Program Objectives Instructions: While not required by the applicable regulations, a section on program objectives can help provide an overall framing for what your FSS program is trying to achieve. Your FSS program is free to adopt whatever local objectives you wish so long as they do not conflict with the federal objectives. Program Objectives [Organization]’s FSS program seeks to help families make progress toward economic security by supporting the family’s efforts to: • Increase their earned income Build financial capability • Achieve their financial goals The federal objectives for the FSS program are specified in 24 CFR 984.102. 12.A.d Packet Pg. 2019 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 5 III. Program Size and Characteristics III.A. – Family Demographics Instructions. Describe the characteristics of the families you expect to be served by your FSS program. This information must include data on their race and ethnicity and may also include data on other characteristics. Note: This information is required per 24 CFR § 984.201(d)(1). That section also requires a description of supportive service needs of families expected to be served, which is covered in Section III.B of this sample Action Plan, and how many families are expected to be served, which is covered in Section III.C. Description of sample tables Start by indicating which housing assistance programs your FSS program will serve by checking the appropriate boxes. The sample Action Plan then includes several tables that you Family Demographics These tables describe the demographics of the population expected to be served by [organization]’s Action Plan. The FSS program will serve the following housing assistance programs [check all that apply, and specify details as needed]: ☐ Public Housing, ☐ Housing Choice Vouchers (HCV): Tenant-Based Vouchers ☐ Housing Choice Vouchers (HCV): Project-Based Vouchers (PBV) ☐ Housing Choice Vouchers (HCV): HCV Homeownership ☐ Housing Choice Vouchers (HCV): Other special purpose vouchers (e.g. FUP, FUP-Y, FYI, VASH, EHV, etc.) (Specify:________________________________________) ☐ Section 8 Moderate Rehabilitation ☐ Project-Based Rental Assistance (PBRA) ☐ Other Program (Specify:_____________________________) 12.A.d Packet Pg. 2020 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 6 may use to show characteristics of the population expected to be served. If it makes it easier to develop estimates, new FSS programs may assume that FSS participants will be similar to the general population of the PHA or property. To describe the characteristics of the families your program plans to serve, you may use the tables in the right-hand column and fill them in to provide the appropriate information. You may also modify the tables to specify different ranges or to otherwise reflect the available data. The information requested through the tables should be available on the HUD50058 or HUD-50059 Family Reports in PIC or TRACS, respectively. To complete the tables: • Ages of Head and Other Adults. For each row, estimate the share of heads or other adults (as noted) in each age category. • Presence and Ages of Children. For the first row, estimate the percentage of households that have no children under 18. For the Ages of Head of Household and Other Adults Percent Ages of Head of Household --Head of Household is age 24 years or younger ___% --Head of Household is age 25 to 50 ___% --Head of Household is age 51 to 61 ___% --Head of Household is age 62 or greater ___% Ages of Other Adults in Household -- Age 24 years or younger ___% -- Age 25 to 50 ___% -- Age 51 to 61 ___% -- Age 62 or greater ___% Presence and Ages of Children Percent Presence and Ages of Children --Households that only include adults over age 18 ___% --Households that include one or more child age 13-17 ___% --Households that include children who are all 12 or younger ___% 12.A.d Packet Pg. 2021 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 7 12.A.d Packet Pg. 2022 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 8 12.A.d Packet Pg. 2023 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 9 second row, estimate the percentage of households with one or more child age 13-17. For the third row, estimate the percentage of households that include at least one child age 12 or younger and no children over age 12. Employment Status. For the first two rows, estimate the share of families whose heads are employed and unemployed. The two rows should add up to 100%. The next two rows show similar information, but for all family members. These two rows should also add up to 100%. Annual Earned Income. Estimate the share of families within each earned income category. Elderly/Disability Status. Estimate what share of families have an elderly head or a head with disabilities, and then estimate what share of families include an elderly person or a person with disabilities. Race/ethnicity. This is a required table. Estimate the racial and ethnic composition Employment Status of Population to be Served Percent Employment Status of Head of Household --Families with an employed head ___% --Families whose head is unemployed ___% Employment Status of All family members --Families with any member that is employed ___% --Families with no employed member ___% Annual Earned Income of Population to be Served Percent Annual household earnings <$5,000 per year ___% Annual household earnings between $5,000 and $9,999 ___% Annual household earnings between $10,000 and $14,999 ___% Annual household earnings between $15,000 and $19,999 ___% Annual household earnings between $20,000 and $24,999 ___% Annual household earnings between $25,000 and $29,999 ___% Annual household earnings between $30,000 and $34,999 ___% Annual household earnings of $35,000 or higher ___% 12.A.d Packet Pg. 2024 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 10 12.A.d Packet Pg. 2025 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 11 of the families to be served by the FSS program. In this table, the percentages in the NonHispanic and Hispanic columns should add up to the percentage shown in the Race column. For example, if 50 percent of the expected population to be served consists of White households, and half of these households are expected to be Hispanic, enter 50% in the first column and 25% in each of the next two columns. Elderly/Disability Status of Population to be Served Percent Elderly/Disability Status of Head of Household --Head of Household is an elderly person without disabilities ___% --Head of Household is an elderly person with disabilities ___% --Head of Household is a non-elderly person without disabilities ___% --Head of Household is neither an elderly person nor a person with disabilities ___% Elderly/Disability Status of All Household members --Household includes an elderly person without disabilities ___% --Household includes an elderly person with disabilities ___% --Household includes a non-elderly person with disabilities ___% --Household includes no elderly persons or persons with disabilities ___% Race and Ethnicity of Population to be Served (required) Race Non-Hispanic Hispanic White ___% ___% ___% Black or African-American ___% ___% ___% American Indian or Alaska Native ___% ___% ___% Asian ___% Native Hawaiian or other Pacific Islander ___% ___% ___% Other Race ___% ___% ___% 12.A.d Packet Pg. 2026 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 12 III.B – Supportive Services Needs Instructions: Describe in this section the supportive service needs of the families you expect to participate in your FSS program. The sample text provides illustrations of needs to consider. Feel free to adjust this list to reflect the needs you identify. Then indicate how you identified the supportive services needs by checking one or more of the boxes and/or adding your own explanation. Note: 24 CFR § 984.201(d)(1) specifies that FSS Action Plans must include “Family demographics. A description of the number, size, characteristics, and other demographics (including racial and ethnic data), and the supportive service needs of the families expected to participate in the FSS program” The characteristics other than supportive service needs are covered above, in Section III.A and the size of the program is covered in Section III.C. Supportive Services Needs of Families Expected to Participate in FSS The following is a list of the supportive service needs of the families expected to enroll in the [PHA/owner name] FSS program: • Training in basic skills and executive function (including household management) • Employment training, including sectoral training and contextualized and/or accelerated basic skills instruction • Job placement assistance • GED preparation • Higher education guidance and support • English as a Second Language • Assistance accessing and paying for child care • Transportation assistance • Financial coaching, including assistance with budgeting, banking, credit, debt, and savings • Access to counseling or treatment for substance abuse and mental health • Dental care, health care, and mental health care including substance abuse treatment/counseling • Homeownership readiness This list of supportive services needs is based on: (check all that apply) ☐ Experience with past FSS or other supportive service program participants ☐ Input from the PCC or other service provider partners ☐ A needs assessment completed on [date] ☐ Other: ___________________________ 12.A.d Packet Pg. 2027 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 13 III. C. – Estimate of Participating Families Instructions: Provide an estimate of the number of eligible families who can reasonably be expected to receive services based on available resources. If you are funded for FSS coordinator positions, by virtue of that funding, you have a minimum number of participants to be served each year. Be sure that your Estimate of Participating Families is at a minimum, the number of participants required by your funding. Note that if you have not yet fulfilled your Mandatory Program size requirement, your Estimate of Participating Families must be at least the minimum program size required for your agency. For more information, see 24 CFR §984.105 and FSS Guidebook Section 6.6 Minimum FSS Program Size). Estimating Participating Families You must describe how many families you expect your FSS program will be able to serve at a time and then estimate how many families your program will serve over a five-year period. The sample text includes different options for existing and new programs. If you are operating an existing program, you should use your records to identify how many families enroll per year and add five years of new enrollment to the typical program size to estimate how many families you will serve over five years. If you are starting a new program, you will need to adopt some assumptions about graduation and attrition for other reasons. For example, assume an FSS program has a capacity of 100 families and expects to operate at capacity at all times. If the program expects 50 of those families to graduate in five years (with some families getting an extension) and 10 Estimate of Participating Families Over time, [organization] hopes to serve all families who are interested in participating in the FSS Program. The number of spaces available in the program at any given time, however, will be limited by the program’s resources, including the number of FSS coordinators funded to work with FSS participants. New families will be admitted to the FSS program as space permits. Instructions: Complete the paragraphs that apply to your FSS program. [For Programs receiving HUD FSS Coordinator Funding] In recent years, the [organization] has been funded for [number] of coordinators. The minimum number of participants required to be served based on this funding is [number]. [For existing programs] Historically, [organization]’s FSS program has enrolled [add number] new families into the FSS program each year. Accordingly, [organization] expects to be able to provide FSS Services to [add number] families over a five-year period. [For new programs] During the initial five years of the FSS program, [organization] expects to be able to provide FSS services to [ number] families. This is based on the assumption that [number] families will graduate in this time and [number] families will leave the program each year for other reasons, with new families being enrolled as these families exit. [PHAs that still have a Mandatory program should include the text below and complete the table] Minimum Program Size. In accordance with CFR §984.105, the [organization] has a remaining FSS program mandate to serve [number] families. This is calculated based on the table below. This is our best estimate at this time, and it includes the mandate for both the Public Housing program and the HCV program and counts graduates from both programs. 12.A.d Packet Pg. 2028 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 14 families to leave the program each year for other reasons, the expected number of families to be served in the first five years is 200 (100 + 50 new enrollees who replace graduates + 50 new enrollees who replace families who leave for other reasons.) Note that the number of families your FSS program expects to serve is different from the minimum number of families that your FSS program is required to serve under the terms of the Notice of Funding Opportunity that allocated the funds. FSS programs are encouraged to enroll more than the minimum number of families, so long as this is possible without compromising your program’s quality. If your agency is a PHA with an FSS mandate, you should include the text indicated in the right-hand column and complete the table. In accordance with CFR §984.105(c), if the Estimate of Participating Families is smaller than the Minimum Program Size, indicate if you have an exception granted by HUD to run a program smaller than the mandate and when that exception expires. Original Number o FSS Remaining Participants Graduates Mandatory Mandated in both Slots HCV and PH Therefore, as of the time of preparation of this Action Plan, the [organization] expects to be able to serve [number] families in the FSS program at any one time. III. D – Other Self-Sufficiency Programs Instructions: If you expect families from another selfsufficiency program to enroll in your FSS program, provide estimates of the numbers of these families. For PHAs: If you seek to enroll families in the FSS program that are nearing the end of their eligibility for the Jobs Plus Earned Income Disregard as a way to continue to serve these families, you may wish to describe this approach in this section. Other Self-Sufficiency programs Instructions: Select either Option 1 or Option 2, depending on whether or not you plan to enroll families from another self-sufficiency program. Under each option, select the item(s) that apply. ☐ Option 1: The [organization] expects to enroll into FSS families from the selfsufficiency programs checked in the table below. 12.A.d Packet Pg. 2029 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 15 The sample Action Plan text includes two options – one for FSS programs that expect to enroll families from other selfsufficiency programs and one for FSS programs that do not. Choose the option that best fits your program. If you choose Option 1, check the applicable boxes to indicate which programs are included and, if you have an estimate in mind, indicate the number of families from that program you expect to enroll. For more information, see 24 CFR §984.201(d)(3) and FSS Guidebook section 2.2 Outreach and Enrollment. Name of Program Check box Number of if applicable Families each year Family Unification Program - Family ☐ Family Unification Program – Youth (FUP-Y) ☐ Foster Youth Initiative (FYI) ☐ Resident Opportunity and Self-Sufficiency (ROSS) ☐ Jobs Plus ☐ Emergency Housing Voucher (EHV) ☐ Veterans Affairs Supportive Housing (VASH) Other: ☐ ☐ Option 2: No families from other self-sufficiency programs are expected to enroll in the FSS program. IV. Family Selection Procedures Instructions: Describe your policies and procedures for selecting FSS participants, including whether your FSS program will offer a preference to prospective participants who are already enrolled in, or on the waiting list for, FSS-related service programs and whether your FSS program plans to screen prospective Family Selection Procedures A. Waiting List A waiting list will be maintained for families whose applications cannot be accepted at the time of initial application due to program capacity limits. The waiting list will include the name and contact information for the head of household of the applicant family, the date of their application and [Add any other information helpful for the PHA/Owner to have on hand]. B. Admissions Preferences 12.A.d Packet Pg. 2030 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 16 participants for motivation to participate. (Note that motivation is Instructions: select either Option 1 or Option 2, depending on whether or not you plan to have any preferences for admission to FSS. Under each option, select the item(s) that apply 12.A.d Packet Pg. 2031 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 17 the only allowable screening criteria to include). Note: The maximum number of FSS slots with a selection preference is limited to 50% of the total number of FSS slots. For any preference your program selects, you must provide the following: 1. Percentage of slots for which your program will give the selection preference 2. If applicable, the FSS related service programs to which your program will give a selection preference 3. The method of outreach to, and selection of, families with one or more members participating in the identified programs 4. How families with the applicable preferences will be selected from the wait list: (a) date and time of application; or (b) a drawing or other random choice technique. (see 24 CFR 984.203 and FSS Guidebook Section 2.2 Outreach and Enrollment) Policy Decisions: In completing this section, you will need to make the following policy decisions: ☐ Option 1: No preference: The FSS program has not adopted any admissions preferences. Families will be selected based on the following selection method: Selection Method Check applicable method Lottery ☐ Length of time living in subsidized housing ☐ Date the family expressed an interest in participating in the FSS program ☐ Other: [specify ] ☐ 12.A.d Packet Pg. 2032 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 18 12.A.d Packet Pg. 2033 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 19 1. Whether to allow selection preferences. If so, (a) what selection preferences, (b) outreach methods, and (c) selection methods. Start by indicating whether you will utilize any selection preferences by selecting the appropriate option. Then complete the table applicable to that option. The “% of FSS slots” is a percentage of the whole anticipated program size, as established in III.C (above) 2. Whether to include a screening for motivation. If so (a) what the screening will entail, and (b) how the FSS program will ensure reasonable accommodations to avoid discrimination. Select the appropriate option. 3. What families or family members may re-enroll in the FSS program following exit from the program and under what circumstances. 4. What process to follow for documenting the family’s choice of Head of FSS Family. Note: Your FSS program may use motivational screening factors to screen families interested in participating in the FSS program. You may use these factors to ☐ Option 2: One or more selection preference(s): The FSS program will provide a preference for families who meet each of the preference types identified by a checkmark in the following table. The table shows the percent of FSS slots to which the preference applies, and the outreach and selection methods that will be applied to identify and select the households within each preference category. [Instructions: For the first preference (if applicable), identify the specific FSS related service programs that will be given preference]. Check if Preference Type % o f s Outreach Identify Selection Method (these are the only two options for selection within a preference, per 24 CFR 984.203(b)) Applicable FSS Method(s) Slot ☐ Families already in the following FSS-related service program(s): [specify] ☐ Date and time of application to the FSS Program ☐ A drawing or other random choice technique ☐ Families Porting in ☐ Date and time of application to the FSS Program ☐ A drawing or other random choice technique ☐ FUP-Y/FYI Families that want to take advantage of the Fostering Stable Housing Opportunities (FSHO) Initiative ☐ Date and time of application to the FSS Program ☐ A drawing or other random choice technique ☐ Other Preference: ☐ Date and time of application to the FSS Program ☐ A drawing or other random choice technique 12.A.d Packet Pg. 2034 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 20 12.A.d Packet Pg. 2035 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 21 12.A.d Packet Pg. 2036 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 22 measure a family’s interest and motivation to participate in the FSS program. (see 24 CFR 984.203 and FSS Guidebook Section 2.2 Outreach and Enrollment) Note: This section includes a required statement affirming that the organization will not engage in unlawful discrimination. C. Screening for motivation. Select either Option 1 or Option 2, depending on whether or not you plan to screen for participant motivation. Under each option, select the item(s) that apply. ☐ Option 1: The [organization] will not use any motivational screening factors to measure a family’s interest and motivation to participate in the FSS program. ☐ Option 2: The [organization] will use one or more motivational screening factors to measure the family’s interest and motivation to participate in the FSS program. The following screening criteria will be used: Instructions: Select which motivational screening you will use, if any. ☐ Orientation Session: The [organization] will screen families for motivation to participate in the FSS program by requiring that families who apply to enroll in the FSS program attend an initial orientation session. Each family will be given two opportunities to attend the orientation session and may request accommodation if unable to attend a scheduled orientation session. Accommodations will be offered on a case-by-case basis, depending on the needs of the applicant. Accommodations may include an individually scheduled orientation session, provision of transportation to/from the orientation site, translation services, an alternative location, a virtual orientation session, or allowance and encouragement to bring children to the session, where possible. ☐ Other Screening Criteria: [specify here] D. Compliance with nondiscrimination policies [Note: Each FSS Action Plan must include a statement, similar to the one below, that documents the program’s intent to comply with applicable anti-discrimination provisions.] It is the policy of [organization] to comply with all Federal, State, and local nondiscrimination laws and regulations, including but not limited to the Fair Housing Act, the Americans with Disabilities Act, and Section 504 of the Rehabilitation Act of 1973. No person shall be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination under the FSS program on the grounds of race, color, sex, religion, national or ethnic origin, family status, source of income, disability or perceived gender identity and sexual orientation. In addition, [organization]’s FSS staff will, upon request, provide reasonable accommodation to persons with disabilities to ensure they are able to take advantage of the services provided by the FSS program (see Requests for Reasonable Accommodations). 12.A.d Packet Pg. 2037 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 23 12.A.d Packet Pg. 2038 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 24 The FSS program staff has the primary responsibility to make sure that participants are not discriminated against in the selection process. For families or individuals whose potential enrollment is in question, the FSS coordinators will review the file in the staff review meeting to ensure that nonselection is not based on discriminatory factors before the final decision is made. Applicants will be notified in writing of the reason(s) they were not selected for participation and will have the opportunity to appeal the decision (see Hearing Procedures). At all times, [organization] will select families for participation in the FSS program in accordance with FSS Regulations and HUD guidelines. E. Re-enrollment of prior FSS participants The following previous FSS families will be allowed to re-enroll in [organization’s] FSS program: Instructions: Check which families will be allowed to re-enroll, if any. ☐ FSS program graduates [Specify time since graduation, if applicable] ☐ FSS participants who have withdrawn voluntarily [Specify time since exit, if applicable] ☐ Families terminated with escrow disbursement [Specify time since exit, if applicable] ☐ Families involuntarily terminated [Specify time since exit, if applicable] ☐ Family members who were not Heads of FSS Family previously ☐ No member of previously enrolled families may re-enroll The following conditions apply to re-enrollment: [specify] [Specify conditions that apply to re-enrollment, such as the number of times a family may re-enroll, if there must have been a change in employment status, etc.] F. Head of FSS Family [Instruction: FSS Programs are required to allow families to designate the FSS Head of Household. Describe any procedures your program will use to implement this requirement.] 12.A.d Packet Pg. 2039 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 25 The head of the FSS family is designated by the participating family. The [organization] may make itself available to consult with families on this decision but it is the assisted household that chooses the 12.A.d Packet Pg. 2040 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 26 head of FSS family that is most suitable for their individual household circumstances. The designation or any changes by the household to the Head of FSS Family must be submitted to the [organization] in: Instructions: check applicable box, depending on how you will document the designation or change to the Head of FSS family ☐ Writing ☐ A form developed by the [organization] ☐ Other [specify] [Specify any additional requirements in how head of FSS family should be documented]. V. Outreach Instructions: Describe the planned notification and outreach efforts by your FSS program to recruit FSS participants from among eligible families and to provide FSS information to minority and nonminority families. The sample Action Plan lists a number of typical outreach methods. Check the ones that apply to your program and provide details about how you will implement each method, including how often. You should feel free to modify this section to reflect your program’s outreach strategy. However, it is recommended that you retain the note at the end of this section which affirms that outreach will comply with all applicable fair housing protections. Outreach The [organization] will conduct widespread outreach to encourage enrollment in the FSS program. Outreach efforts will include the activities identified through the checked boxes below: (check all that apply). Interpreters will be used as needed and clients may contact staff to express interest in person, via our toll-free telephone number or by email. Outreach Methods Details, including frequency ☐ Posting information about FSS on the [organization]’s website ☐ Posting FSS program flyers in locations likely to be seen by eligible families ☐ Providing information about the FSS program during scheduled reexaminations ☐ Providing information about the FSS program at voucher orientation sessions 12.A.d Packet Pg. 2041 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 27 ☐ Holding well-publicized information sessions about FSS (see 24 CFR 984.201(c)6 and FSS Guidebook Section 2.2 Outreach and Enrollment) ☐ Providing information about the FSS program to eligible families by mail ☐ Facebook ☐ Twitter ☐ Instagram ☐ Other [specify] 12.A.d Packet Pg. 2042 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 28 Outreach informational material about the FSS Program will include information about: • Program overview • Program benefits • Available resources • Participant responsibilities • Program outcomes Outreach efforts will be targeted equally to all families, using materials in both English and other commonly spoken languages to ensure that non-English and limited English-speaking families receive information and have the opportunity to participate in the FSS Program. In conducting outreach, the [organization] will account for the needs of person with disabilities, including persons with impaired vision, hearing or mobility, and provide effective communications to ensure that all eligible who wish to participate are able to do so. VI. FSS Escrow Account and Other Incentives for Participants Instructions: Describe your FSS program’s policies regarding the escrow account, as well as any other incentives that you intend to offer eligible families to encourage participation in the FSS program. The sample text covers key issues related to escrow program administration, including interim FSS Escrow Account and Other Incentives for Participants FSS participants will be eligible to build savings from the FSS escrow account. Key policies and procedures applicable to the FSS escrow account, as well as any additional incentives offered by the [organization], are described below. A. Additional Incentives [Instructions: Select one of the following options.] 12.A.d Packet Pg. 2043 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 29 disbursements. While FSS programs are not required to offer interim disbursements, HUD encourages FSS programs to do so as a way of helping families stay on track toward their goals. (see 24 CFR 984.305 and FSS Guidebook Section 2.2 Outreach and Enrollment for information on incentives. See 24 CFR 984.305(c)2 and 24 CFR 984.305(f)2 respectively for regulations relating to interim disbursement of escrow funds and information relating to forfeited escrow funds and FSS Guidebook Section 5.2 The FSS Escrow Account.) Policy Decisions: In completing this section, you will need to make the following policy decisions: 1. Whether to provide financial incentives to FSS participants (in addition to the escrow account), and, if so, what incentives to provide under what conditions. (Select the appropriate option.) 2. Whether to allow interim disbursements of escrow savings. If so: (a) under what conditions will interim disbursements be permitted (including restrictions on interim disbursements, if any), and (b) what your programs procedures for applying for and ☐ Option 1. While the [organization]’s FSS program does not provide any other financial incentives for FSS participants, it does provide coaching services, as well as referrals to other service providers, that can be very valuable for FSS program participants. ☐ Option 2. The [organization]’s FSS program provides the following incentives to FSS participants in addition to the FSS escrow account: [specify here] B. Interim Disbursements Instructions: select one of the following options: ☐ Option 1: The [organization] will allow for interim disbursements on a case by case basis: Families may request an interim disbursement from the escrow account once the FSS family has fulfilled at least one interim goal, in order to pay for specific goods or services that will help the family make progress toward achieving the goals in its Individual Training and Services Plan (ITSP). Requests may be made verbally or in writing. Requests may be made through the term of the Contract of Participation. Examples of potentially eligible activities include, but are not limited to, payments for post-secondary education, job training, credit repair, small business start-up costs, job start-up expenses, and transportation to/from a place of employment. A determination of whether the family qualifies for the requested interim disbursement will be made on a case-by-case basis by the FSS Coordinator and an administrative staff representative of the [organization]. The FSS coordinator will first explore options for services and in-kind donations from partners, which must be exhausted before a request for an interim disbursement will be approved. ☐ Option 2: The [organization] will allow for interim disbursements subject to certain specified limitations : Families may request an interim disbursement from the escrow account once the FSS family has fulfilled at least one interim goal in order to pay for specific goods or services that will help the family make progress toward achieving the goals in its Individual Training and Services Plan (ITSP). Requests may be made verbally or in writing. Requests may be made through the term of the Contract of Participation. Examples of potentially eligible activities include, but are not limited to, payments for post-secondary education, job training, credit repair, small business start-up costs, job start-up expenses, and transportation to/from a place of employment. Certainly guidelines / limitations apply to interim disbursement requests, as noted in the table below. The FSS Coordinator and an administrative 12.A.d Packet Pg. 2044 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 30 12.A.d Packet Pg. 2045 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 31 approving interim disbursements will be. (Three options have been provided. If you select the second option, indicate what guidelines apply to specific expenditure types.) In your policy, be sure to include • how a request is made • by whom • any limitations on when a request may be made • eligible activities • how the request will be reviewed/who will make the determination 3. What are the eligible uses of forfeited escrow funds? (Check the uses that apply to your FSS program. In your policy, be sure to include • how a request is made • by whom • any limitations on when a request may be made • eligible activities • how the request will be reviewed/who will make the determination 4. .) staff representative of the [organization] will consider requests for interim disbursement in light of these policies and applicable federal requirements. Specific guidelines / limitations apply to interim disbursement requests for the expenditure types checked in the box below. Expenditure Type Guidelines / Limitations ☐ Debt repayment ☐ Interim disbursements will be allowed for repayment of debt incurred prior to starting the FSS program, but not for debt incurred afterwards ☐ Head of FSS Household must be engaged in financial coaching and this request must have the support of their financial coach ☐ Requests will be considered on a case-by-case basis ☐ An interim disbursement for debt repayment may not exceed x% of the participant’s escrow savings. ☐ Other: [specify] ☐ Interim disbursements will not be allowed for debt repayment ☐ Car purchase ☐ Families interested in using an interim disbursement to purchase a car must first ask the PHA for a referral to [add partner name] that provides discounted cars. ☐ The maximum interim disbursement that will be allowed for a car purchase is: [add] ☐ Head of FSS Household must be engaged in financial coaching and this request must have the support of their financial coach☐ The terms of any car purchase or car loan will be carefully scrutinized to ensure the terms are reasonable. ☐ Head of FSS Household must submit a budget that includes the ability to cover insurance, gas and savings for maintenance and repair of the vehicle. ☐ Requests will be considered on a case-by-case basis ☐ Other: [specify] 12.A.d Packet Pg. 2046 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 32 ☐ Interim disbursements will not be allowed for car purchase. 12.A.d Packet Pg. 2047 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 33 ☐ [Add category] 12.A.d Packet Pg. 2048 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 34 ☐ [Add category] ☐ Option 3: The [organization] will not allow for interim disbursements. C. Uses of forfeited escrow funds. First select one of the following options. If you select the second option, complete the rest of the section. If you select the first option, there is no need to complete the rest of the section ☐ Option 1: Forfeited escrow funds remaining from terminated participants will be collected in a general fund and may be disbursed evenly among participants in good standing on a regular basis. ☐ Option 2: Treatment of forfeited FSS escrow account funds. FSS escrow account funds forfeited by the FSS family (if any) will be used to support FSS participants in good standing. Upon written request from a family, the FSS Coordinator and a member of the PCC will consider the available funds and make a determination. [If desired by the organization, add] The [organization] may also initiate a request for the use of forfeited escrow funds. Select one of the following options regarding interim disbursements: ☐ Option 1: At the discretion of the FSS coordinator, forfeited escrow funds may be considered in lieu of an interim escrow disbursement. ☐ Option 2: Forfeited escrow funds may not be considered as a substitute for an interim escrow disbursement. ☐ Option 3: Other: [specify] 12.A.d Packet Pg. 2049 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 35 Complete the sections below. Forfeited FSS escrow funds may be deployed: ☐ Any time during the term of a household’s CoP ☐ Within ### [ ] days of CoP execution ☐ No more than ### [ ] days prior to the scheduled expiration of CoP Use of forfeited escrow funds for eligible uses (described below) may be requested by: ☐ The organization] [ ☐ Head of the FSS family ☐ Non-head FSS family members Eligible uses of forfeited escrow funds include, but are not limited to: Instructions: check the box of any eligible expenses you plan to allow as eligible use for forfeite d escrow account funds. You may wish to use the same Expenditures and Guidelines/Limitations for Forfeited Escrow that you use for Interim Disbursements but you are not required to do so . Eligible Uses Guidelines / Limitations ☐ Purchasing a vehicle ☐ Families interested in using a forfeited escrow funds to purchase a vehicle must first receive a referral to [ add partner name] that provides discounted vehicles. ☐ The maximum forfeited escrow fund amount that will be allowed for a vehicle purchase is: ] add [ ☐ Head of FSS Household must be engaged in financial coaching and this request must have the support of their financial coach 12.A.d Packet Pg. 2050 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 36 ☐ The terms of any vehicle purchase or vehicle loan will be carefully scrutinized to ensure the terms are reasonable. ☐ Head of FSS Household must submit a budget that includes the ability to cover insurance, gas and savings for maintenance and repair of the vehicle. ☐ Requests will be considered on a case-by-case basis ☐ Other: [specify] ☐ Child Care ☐ Requests will be considered on a case-by-case basis ☐ Other: [specify] ☐ Training for participants ☐ Requests will be considered on a case-by-case basis ☐ Other: [specify (e.g., categories of training permitted)] ☐ Employment or Educational Costs, including: ☐ Employment training ☐ Employment preparation (e.g., interview training, professional clothing, etc.) ☐ Education costs (books, fees, uniforms, tools, etc.) ☐ Head of FSS Household must be engaged in financial coaching and this request must have the support of their financial coach ☐ Household member receiving funding support must be engaged in financial coaching and this request must have the support of their financial coach ☐ Requests will be considered on a case-by-case basis ☐ Other: [specify] ☐ Training for FSS Program staff ☐ Requests for funding must be approached by [entity (e.g., the PCC)] ☐ Other: [specify] ☐ Other: ☐ [Add Guidelines/Limitations] 12.A.d Packet Pg. 2051 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 37 VII. Family Activities and Supportive Services Instructions: Describe the activities and supportive services to be provided to FSS families by both public and private providers and identify the public and private resources which are expected to provide the supportive services. (see FSS Guidebook Section 3.3 Referrals to Service Providers) Check the categories of services and the specific services that your program plans to make available to families through referrals and indicate the source or partner for that service. The sample Action Plan describes the coaching/case management services provided to families in the next Section. Family Activities and Supportive Services As described in the next section, all families participating in the FSS program will benefit from coaching that helps them identify and achieve goals that the family selects. Drawing on partners on the program coordinating committee and relationships with other service providers, the coaches will provide referrals as needed to help FSS participants access appropriate services to help them achieve their goals: Instructions: Check the box next to the name of service categories and specific services for which you will provide referrals. Feel free to add additional rows to describe other services Supportive Service Category Specific Service Source/Partner ☐ Assessment ☐ Vocational Assessment Educational ☐ Assessment Disability Assessment ☐ Disability Other specialized assessments ☐ Child Care ☐ Infant Care / Toddler Care Preschool Care ☐ Afterschool Care ☐ Homework Assistance ☐ Transportation ☐ Bus passes ☐ Assistance with car repairs ☐ Assistance with car purchase 12.A.d Packet Pg. 2052 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 38 ☐ Education ☐ High School Equivalency/GED ☐ English as a Second Language ☐ Post-secondary certificates ☐ Advanced Degrees ☐ Skills Training ☐ Training in Executive Function ☐ Basic Skills Training ☐ Emerging Technologies Training ☐ Biomedical Training (including CNA, phlebotomy, x-ray and other tech, etc.) ☐ On-the-Job Training ☐ Apprenticeships ☐ Skilled Labor training ☐ Job Search Assistance ☐ Resume Preparation ☐ Interviewing Skills ☐ Dress for Success ☐ Workplace Skills ☐ Job Development ☐ Job Placement ☐ Micro and Small Business Development ☐ Small business development services ☐ Small business Mentoring ☐ Entrepreneurship Training 12.A.d Packet Pg. 2053 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 39 ☐ Health/Mental Health Care ☐ Alcohol and Drug Abuse Prevention ☐ Alcohol and Drug Abuse Treatment ☐ Primary care ☐ Dental services ☐ Mental Health Services ☐ Health Insurance Advising ☐ Crisis Services ☐ Crisis Assessment ☐ Crisis Intervention ☐ Crisis Management ☐ Crisis Resolution ☐ Child/Adult Protective Services ☐ Needs Assessment ☐ Case Planning ☐ Information Referral ☐ Household Management ☐ Training in Household Management ☐ Homeownership Preparation ☐ Homeownership Education ☐ Housing Counseling ☐ Downpayment Assistance ☐ Other Homeownership Assistance ☐ Financial Empowerment ☐ Financial education ☐ Financial coaching ☐ Banking services ☐ Training in money management 12.A.d Packet Pg. 2054 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 40 ☐ Individual Development Accounts ☐ Matched Savings Accounts ☐ Legal Services ☐ Legal Services ☐ Debt Resolution & Credit Repair ☐ Assistance negotiating the resolution of past-due debt ☐ Other: [identify] 12.A.d Packet Pg. 2055 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 41 VIII. Method of Identifying Family Support Needs and Delivering Appropriate Support Services Instructions: Describe how your FSS program will identify the needs of participating families and deliver the appropriate supportive services. (see FSS Guidebook Section 3.3 Referrals to Service Providers) Policy Decisions: In completing this section, you will need to make the following policy decisions: 1. What approaches and procedures you will use to identify family needs for support services. 2. How your program will approach coaching or case management (See FSS Guidebook Chapter 3 Case Management/Coaching for recommendations and best practices). 3. Whether to provide services referrals to families who have completed their FSS contracts of participation. (Select the option that applies. See 24 CFR 984.303(e)2 for relevant regulations) Method of Identifying Family Support Needs and Delivering Appropriate Support Services A. Identifying Family Support Needs To help determine the supportive services needs of each family, the FSS coordinator will work with the family to complete an initial informal needs assessment for that family before completion of the initial Individual Training Service Plan (ITSP) and signing of the contract of participation. After enrollment in the FSS program, the FSS coordinator may make referrals to partner agencies for completion of one or more formal needs assessments. These assessments may focus on such issues as: employment readiness and employment training needs, educational needs related to secondary and post-secondary education, financial health, and other topics, depending on the needs and interests of the family. The formal assessments may lead to adjustments to the Individual Training Service Plan, if requested by the family. B. Delivering Appropriate Support Services [Note: Adapt the description below based on the program approach selected by the FSS program and fully describe how the coach or case manager will help families achieve their goals.] Coaching. All families who participate in the FSS program will be assigned an FSS coordinator who will provide coaching services to help each participating family to: • Understand the benefits of participating in the FSS program and how the program can help the family achieve its goals. • Identify achievable, but challenging interim and final goals for participation in the FSS program, break down the goals into achievable steps and accompany the family through the process. • Identify existing family strengths and skills. • Understand the needs that the family has for services and supports that may help the family make progress toward their goals. • Access services available in the community through referral to appropriate service providers. 12.A.d Packet Pg. 2056 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 42 Overcome obstacles in the way of achieving a family’s goals. C. Transitional supportive service assistance. [FSS programs have the option of providing continued services to families that complete their contracts using non-restricted funds. Select one of these options: ☐ Option 1: Families that have completed their CoP and remain in assisted housing may request assistance with referrals to service providers in order to continue their progress toward economic security. Subject to limitations on staff capacity, [organization] will try to help these families with appropriate referrals. The time spent on these referrals will not be covered by funds designated by HUD to support the FSS program. ☐ Option 2: No assistance or referrals will be available to families who have completed their CoP contracts. IX. Contract of Participation 12.A.d Packet Pg. 2057 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 43 Instructions: You are not required by regulation to include a section on the Contract of Participation (CoP) in the FSS Action Plan. However, such a section may help you explain to readers what the Contract is and how your program will implement it. In addition, the sample Action Plan addresses in this section several of the policies referenced under “optional additional information” in 24 CFR 984.201(d)(13) the FSS Rule. (see 24 CFR 984.103 (CoP Effective date), 24 CFR 984.303(c) (Term of CoP), Contract of Participation All families enrolled in the FSS program will be required to sign a Contract of Participation (CoP) that includes an Individual Training and Services Plan (ITSP). This section describes the contents of the CoP and the [organization]’s policies and practices regarding the CoP. A. Form and content of contract [The content of this paragraph is determined by HUD regulation found at 24 CFR 984.303(b)(1) and should not be changed (except to add your organization’s name). The wording may be adjusted, so long as content is not changed substantively] . The CoP, which will incorporate one ITSP for each participating member of the family, sets forth the principal terms and conditions governing participation in the FSS program. These include the rights and responsibilities of the FSS family and of the [organization], the services to be provided to, and the activities to be completed by, each adult member of the FSS family who elects to participate in the program. 12.A.d Packet Pg. 2058 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 44 24 CFR 984.303(d) (Extensions of CoP), 24 CFR 984.303(f) (Modification of the CoP), 24 CFR 984.303(g) (Completion of the CoP)) and 24 CFR 984.304(d) (Contract of Participation Extension). Policy Decisions: In completing this section, you will need to make the following policy decisions: 1. Whether and under what circumstances to grant extensions of FSS CoPs. 2. Acceptable methods for documenting completion of CoPs. (Select the appropriate option.) 3. Timing limitations (if any) on when participants may modify their ITSPs. (Select the appropriate option.) 4. Policies on the consequences of non-compliance with the terms of the CoP. B. ITSP goals [The content of this paragraph is determined by HUD regulation found at 24 CFR 984.303(b)(2) and should not be changed (except to add your organization’s name). The wording may be adjusted, so long as content is not changed substantively] . Each individual’s ITSP will establish specific interim and final goals by which the [organization] and the family will measure the family’s progress towards fulfilling its obligations under the CoP. For any FSS family that is a recipient of welfare assistance at the outset of the CoP or that receives welfare assistance while in the FSS program, the [organization] will establish as a final goal that every member of the family become independent from welfare assistance before the expiration of the CoP. The ITSP of the head of FSS family will also include as a final goal that they seek and maintain suitable employment. The FSS coordinator will work with each participating individual to identify additional ITSP goals that are relevant, feasible and desirable. Any such additional goals will be realistic and individualized. C. Determination of suitable employment [Instruction: the language in this paragraph is determined by HUD regulation and should not be changed (except to add your organization’s name) As defined in the FSS regulations (24 CFR 984.303(4)(iii)), a determination of what constitutes “suitable employment” for each family member with a goal of seeking and maintaining it will be made by the [organization], with the agreement of the affected participant, based on the skills, education, job training and receipt of other benefits of the family member and based on the available job opportunities within the community. D. Contract of Participation term and extensions [Instruction: the language in this paragraph is determined by HUD regulation and should not be changed (except to add your organization’s name) The CoP will go into effect on the first day of the month following the execution of the CoP. The initial term of the CoP will run the effective date through the five-year anniversary of the first reexamination of income that follows the execution date. Families may request up to two one-year extensions and are required to submit a written request that documents the need for the extension. [Organization] will grant the extension if it finds that good cause exists to do so. In this context, good cause means: 12.A.d Packet Pg. 2059 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 45 (i) Circumstances beyond the control of the FSS family, as determined by the [organization], such as a serious illness or involuntary loss of employment; (ii) Active pursuit of a current or additional goal that will result in furtherance of self-sufficiency during the period of the extension (e.g. completion of a college degree during which the participant is unemployed or under-employed, credit repair towards being homeownership ready, etc.) as determined by the [organization] or (iii) Any other circumstances that the [organization] determines warrants an extension, including [add any specific policies on extension, as applicable]. E. Completion of the contract [Instruction: the language in this paragraph is determined by HUD regulation and should not be changed (except to add your organization’s name) The CoP is completed, and a family’s participation in the FSS program is concluded when the FSS family has fulfilled all its obligations under the CoP, including all family members’ ITSPs, on or before the expiration of the contract term. The family must provide appropriate documentation that each of the ITSP goals has been completed. The [organization] will accept the following form of verification for completion of the ITSP goals: on how you plan to document/verify completion ☐ Option 1: The [organization] will accept self-certification to document completion of ITSP goals. ☐ Option 2: The [organization] will require third party verification to document completion of ITSP goals. ☐ Option 3: The [organization] will require a combination of self-certification and third-party verification to document completion of ITSP goals. Add any pertinent policy language. Instructions: select either Option 1, 2, or 3 depending of ITSP goals. 12.A.d Packet Pg. 2060 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 46 12.A.d Packet Pg. 2061 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 47 F. Modification The [organization] and the FSS family may mutually agree to modify the CoP with respect to the ITSP and/or the contract term, and/or designation of the head of FSS household. All modifications must be in writing and signed by the [organization] as well as the Head of FSS Family. The [organization] will allow for modifications to the CoP under the following circumstances: [Select all that apply] ☐ When the modifications to the ITSP improve the participant’s ability to complete their obligations in the CoP or progress toward economic self-sufficiency ☐ When the designated head of the FSS family ceases to reside with other family members in the assisted unit, and the remaining family members, after consultation with the [organization], designate another family member to be the FSS head of family ☐ When a relocating family is entering the FSS program of a receiving PHA and the start date of the CoP must be changed to reflect the date the new CoP is signed with the receiving PHA ☐ Other: [specify] Instructions: select one of the following options, depending on when you will allow modifications of the CoP: ☐ Option 1: The [organization] will allow modifications at any time during the term of the CoP ☐ Option 2: The [organization] will not allow modifications if the CoP is within [fill in] days from the end of the term. ☐ Option 3: The [organization] will not allow modifications of the CoP. 12.A.d Packet Pg. 2062 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 48 12.A.d Packet Pg. 2063 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 49 G. Consequences of noncompliance with the contract [The organization should also indicate the consequences of noncompliance with the contract. Review the sample language and modify if needed.] Participant non-compliance with the CoP may result in termination from the FSS program. See policies on Involuntary Termination in Section X(A). X. Program Termination, Withholding of Services, and Available Grievance Procedures 12.A.d Packet Pg. 2064 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 50 Instructions: Describe your FSS program’s policies for terminating or withholding supportive services or FSS participation for failure to comply with the Contract of Participation. Include a description of the grievance and hearing procedures available to FSS families. (See 24 CFR 984.201(d)(9) and FSS Guidebook Section 2.3 Contract of Participation and Individual Training and Services Plan) Policy Decisions: In completing this section, you will need to make the following policy decisions: 1. Your FSS program’s approaches and procedures assessing and executing involuntary termination from the FSS program. 2. Your FSS program’s policy on voluntary terminations. Program Termination A. Involuntary Termination [Instructions: Review and adjust this sample policy as needed to reflect your organization’s policy on involuntary terminations.] The [organization] may involuntarily terminate a family from FSS under the following circumstances: I. If the participant fails to meet their obligations under the Contract of Participation, the Individual Training and Services Plan and related documentation. Non-compliance includes: i. Missing scheduled meetings, failure to return phone calls, and/or maintain contact after written notification of non-compliance ii. Failure to work on activities and/or goals set forth in the Individual Training and Services Plan, including employment activities iii. Failure to complete activities and/or goals within the specified time frames; and/or II. If the participant’s housing assistance has been terminated. Participants who fail to meet their obligations under paragraph I above, as determined by an FSS coordinator, will be given the opportunity to attend a required meeting with the FSS Coordinator or assigned [organization] representative to review the situation. At this meeting, a review of the Contract of Participation, Individual Training and Services Plan, , and all related documentation will be conducted, and amendments will be made as necessary (within HUD guidelines) to allow for changes in circumstances. Failure to contact the FSS Coordinator to schedule this meeting within fourteen (14) 12.A.d Packet Pg. 2065 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 51 3. Your FSS program’s grievance procedures, including timelines, modes of communication, settings, and individuals involved. days of a written request by the FSS program to set up this a meeting or failure by the FSS Head of Household to attend this meeting without some type of correspondence to clarify the issue(s), may lead to termination from the program. The FSS Coordinator will also attempt to contact the participant via phone, text, in person and/or email prior to the review meeting. Participants who remain out of compliance after this meeting will be subject to termination from the FSS program. If the initial meeting does not resolve the problem, or if the meeting is not requested by the family within the required period, notification of termination will be made to the family by letter stating: 1. The specific facts and reasons for termination; 2. A statement informing the family of their right to request an informal hearing and the date by which this request must be received (see Grievance Procedures); 3. A statement informing the family that termination from the FSS program for the reasons stated therein will not result in termination of the family’s housing assistance. Failure to request a hearing in writing by the deadline will result in closure of the family’s FSS file and all rights to a hearing will be waived. All escrow money held on the family’s behalf will be forfeited in accordance with HUD regulations. Housing assistance will not be terminated based on non-compliance with the FSS program. The current amount of escrow in the family’s escrow account will be included in the letter. B. Voluntary Termination [Instructions: Review and adjust this sample policy as needed to reflect your organization’s policy on voluntary terminations.] Participants may also be terminated from the FSS program under the following circumstances: • Mutual consent of both parties; and/or • The family’s withdrawal from the program. 12.A.d Packet Pg. 2066 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 52 12.A.d Packet Pg. 2067 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 53 C. Termination with Escrow Disbursement [Note: these policies are required by FSS regulations (see 24 CFR 984.303(k)] In most cases, families whose FSS contracts are terminated will not be entitled to disbursement of their accrued FSS escrowed funds. However, the CoP will be terminated with FSS disbursement when one of the following situations occurs: (i) Services that the [organization] and the FSS family have agreed are integral to the FSS family’s advancement towards self-sufficiency are unavailable. (ii) The head of the FSS family becomes permanently disabled and unable to work during the period of the contract, unless the [organization] and the FSS family determine that it is possible to modify the contract to designate a new head of the FSS family. (iii) An FSS family in good standing moves outside the jurisdiction of the PHA (in accordance with portability requirements at 24 CFR §982.353) for good cause, as determined by the PHA, and continuation of the CoP after the move, or completion of the CoP prior to the move, is not possible. D. Grievance Procedures [Instructions: Review the sample text below on grievance procedures and adjust to match your organization’s policies. For PHA’s: You may wish to simply repeat the grievance policies in your PHA Plan, as applicable.] All requests for an informal hearing must be received by [organization] Coordinator within fourteen (14) business days of the date of the FSS termination letter. If a hearing is requested by the FSS family, notification to the family regarding the date, time, and location of the informal hearing will be made by mail. Persons included in the informal hearing shall include, but not be limited to: • The FSS head of household; • The FSS Coordinator; and • [Organization] staff members, other than FSS program staff, serving as the Hearing Officer All participants have the right to obtain legal representation and provide their witnesses. The family may request to reschedule a hearing for good cause, or if it is needed as reasonable accommodation for a person with disabilities. Good cause is defined as an unavoidable conflict which seriously affects the health, safety, or welfare of the family. Requests to reschedule a hearing must be made in writing within (5) days prior to the hearing date. 12.A.d Packet Pg. 2068 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 54 [Optional Alternative Text on Grievances for PHAs]: [PHA Name]’s PHA Plan details the [PHA Name]’s Grievance Procedures (See [PHA Plan section reference or page number]). [Note: At their discretion, PHA/Owner may request documentation of the “good cause” prior to rescheduling the hearing—if so, this requested documentation should be specified in the action plan]. If the family does not appear at the scheduled time and was unable to reschedule the hearing in advance due to the nature of the emergency, the family must contact the [organization] within 24 hours of the scheduled hearing date, excluding weekends and holidays. [Organization] will then reschedule the hearing. The Hearing Officer will issue a written decision to the family within ten (10) business days after the hearing. The decision made by the Hearing Officer will be final. The [organization] reserves the right to overturn the Hearing Officer’s decision only in the event that the decision is contrary to the organization’s written policies. XI. Assurance of Non-Interference Instructions: Include a statement here that provides an assurance that a family’s election not to participate in the FSS program will not affect the family’s participation in the rental assistance program. (see FSS Guidebook Section 1.2 What is FSS and Why is it Important?) Assurance of Non-Interference Instructions: This section and language (with the exception of organization’s name and program name, which will vary) is required and should not vary substantively Participation in the FSS Program is voluntary. A family’s decision on whether to participate in FSS will have no bearing on the [organization]’s decision of whether to admit the family into the [add program name] program. The family’s housing assistance will not be terminated based on whether they decide to participate in FSS, their successful completion of the CoP, or on their failure to comply with FSS program requirements. [Organization] will ensure that the voluntary nature of FSS program participation is clearly stated in all FSS outreach and recruitment efforts. 12.A.d Packet Pg. 2069 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 55 XII. Timetable Instructions: Provide a schedule for program implementation and for filling all FSS slots with eligible FSS families. Separate options have been provided for FSS programs that have already started or have not yet started. (see FSS Guidebook Section 2.2 Outreach and Enrollment) Timetable Instructions: select either Option 1 or Option 2, depending on whether you are rolling out a new FSS program or you have an existing program ☐ Option 1: [Organization] implemented its FSS program in [year] and will continue to implement it per this FSS Action Plan. will be implementing its FSS program in the following timeline: [Adjust Program Begins The FSS program will commence operation as soon as the [organization] has received notification of HUD’s approval of the Action Plan. Program Coordinating Committee Within 90 days after the program begins, a Program Coordinating Committee (PCC) will be formed and will begin meeting. The Committee will continue to meet monthly for the next twelve months. Thereafter, meetings will be quarterly. Additional special meetings will occur as needed. Outreach Within 90 days of program launch, outreach efforts will commence, as described above in the Outreach section. Participant Selection Candidates who respond to the outreach efforts will be selected in accordance with the selection procedures described above. The first FSS program participants are expected to be enrolled within 120 days of program launch. Contract Execution Contracts of Participation will be executed with selected participants on a rolling basis. The first Contracts of Participation are expected to be completed within 6 months of program launch. ☐ Option [Organization] exact timing depending on the program’s plans] : 12.A.d Packet Pg. 2070 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 56 Full Enrollment The FSS program expects to reach full capacity within [X] months of program launch. (See discussion above of the number of participants expected to be served. Note that generally for funded programs, the program is required to be serving the minimum number of participants within one year.) Program Maintenance The FSS program expects to operate at full capacity thereafter, subject to normal fluctuations related to families leaving and entering the program. XIII. Reasonable Accommodations, Effective Communications, and Limited English Proficiency Instructions: Reasonable accommodations and effective communications for persons with disabilities are required by federal law. While there is no specific requirement in the program regulations to describe in the FSS Action Plan the agency’s policy on reasonable accommodations and effective communications, inclusion of this section in the Action Plan can be helpful for reinforcing the commitment of the PHA/owner to these important policies. The sample plan also describes the agency’s commitment to meeting the needs of people with Limited English Proficiency. Reasonable Accommodations, Effective Communications and Limited English Proficiency Requirements [Instructions: All three of these policies are required by HUD and are not specific to FSS. However, organizations may adopt different procedures for implementing them. Adjust the sample procedures below as needed.] Requests for Reasonable Accommodations A person with disabilities may request reasonable accommodations to facilitate participation in the FSS program. Requests will be considered on a case-by-case basis. Requests should be made initially to the FSS coordinator. If a family is not satisfied with the FSS Coordinator’s response, the family may submit a request in writing in accordance with the agency’s reasonable accommodations policy. The policy is available online at [location]. Request for Effective Communications A person with disabilities may request the use of effective communication strategies in order to facilitate participation in the FSS program. Examples include: appropriate auxiliary aids and services, such as interpreters, computer-assisted real time transcription (CART), captioned videos with audible video description, visual alarm devices, a talking thermostat, accessible electronic communications and websites, documents in alternative formats (e.g., Braille, large print), or assistance in reading or completing a form, etc. Requests should be made initially to the FSS coordinator. If a family is not satisfied with the FSS Coordinator’s response, the family may submit a request in writing in accordance with the agency’s effective communications policy. The policy is available online at [location]. 12.A.d Packet Pg. 2071 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 57 Limited English Proficiency The [organization] will comply with HUD requirements to conduct oral and written communication related to the FSS program in languages that are understandable to people with Limited English Proficiency. For more information, see the Limited English Proficiency policy available online at [location]. XIV. Coordination of Services [NOTE: There are separate tables below for PHAs and multifamily owners] XIV.A Coordination of Services (PHAs only) Instructions: Certify that the development of the services and activities scheduled to be provided under the FSS program has been coordinated with public and private providers, including with programs under title I of the Workforce Innovation and Opportunity Act 29 U.S.C. 3111 et seq and other relevant employment, child care, transportation, training, education, and financial empowerment programs in the area. In this certification, you should further specify that implementation will continue to be coordinated with these local public and private providers to avoid duplication of services. Note: PHAs should include here a description of the Program Coordinating Committee. (This provision does not apply to multifamily owners.) Coordination of Services A. Certification of Coordination [Instructions: Certification of coordination is required per 24 CFR 984.201(d)(12). The text of the certification below is closely adapted from the regulatory text. You may modify the language of the certification so long as it satisfies the requirements of the Rule Development of the services and activities under the FSS program has been coordinated with programs under title I of the Workforce Innovation and Opportunity Act 29 U.S.C. 3111 et seq., and other relevant employment, child care, transportation, training, education, and financial empowerment programs in the area. Implementation will continue to be coordinated, in order to avoid duplication of services and activities. B. Program Coordinating Committee [Instructions: PHAs are required to have a PCC. Feel free to adopt this sample description to reflect your PCC practices.] The principal vehicle for ensuring ongoing coordination of services is the program coordinating committee (PCC), which has been established in accordance with FSS regulations to assist in securing commitments of public and private resources for the operation of the FSS Program. Among other responsibilities, the PCC will help the FSS program to identify and build strong referral relationships with providers of supportive services that meet the needs of FSS participants. The PCC will also be consulted in developing program policies and procedures. (See 24 CFR 984.201(d)12, 24 CFR [identify frequency] 12.A.d Packet Pg. 2072 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 58 984.202 and FSS Guidebook Sections 3.3 Referrals to Service Providers and 6.1 Building Partnerships) The PCC will meet 1. 2. program. 3. the followin ces. The PCC include e FSS Program Coor and may conduct business on an as-needed basis via email or each HUD rental assistance program served by the FSS y of agencies and individuals, which include but are not limited to <<insert names and agencies>> XIV.B Coordination of Services (Multifamily owners only) Instructions: Provide a statement indicating whether there is an existing PCC that serves the area where the property is located. If there is an existing PCC where the property is located, provide a statement indicating whether it is available for you to work with. Note: If your FSS program has made good-faith attempts to reach out to the existing PCC about joining and has received an unfavorable response/no response, then the existing PCC is not considered available. If there is a PCC that is available for your program to work with, provide a statement indicating whether your program will work with the existing PCC or start your own. Coordination of Services [Instructions: select either Option 1, Option 2, Option 3, Option 4 or Option 5 depending on how you plan to handle coordination with any PCC operating in the area. Under each option, select the item(s) that apply]. ☐ [Option 1] The [add name] PCC serves the area in which the [add property name] is located and the PCC and the owner have agreed that the PCC will work with the owner to coordinate the provision of services. ☐ [Option 2] The [add name] PCC serves the area in which the [add property name] is located but is not available to work with the owner to coordinate the provision of services. The [organization] will therefore establish its own PCC, as described below. ☐ [Option 3] The [add name] PCC serves the area in which the [add property name] is located but is not available to work with the owner to coordinate the provision of services. In lieu of establishing its own PCC, the [organization] will coordinate services as follows: [describe here] ☐ [Option 4] 12.A.d Packet Pg. 2073 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 59 If there is NO existing PCC that is available for your FSS program to join, provide a statement indicating whether you plan to start your own. Note: If there is no available PCC, your program is not required to start its own but is encouraged to do so. If you choose not to start a PCC, HUD encourages you to develop an alternative approach allowing you to get regular feedback from service providers and FSS participants. (See 24 CFR 984.202, and FSS Guidebook Sections 3.3 Referrals to Service Providers and 6.1 Building Partnerships) Policy Decision: 1. Whether you will use a PCC or an alternative method of coordinating services and how the PCC/coordination process will work. No existing, available PCC serves the area in which the [add property name] is located. The [organization] will therefore establish its own PCC, as described below. ☐ [Option 5] No existing, available PCC serves the area in which the [add property name] is located. In lieu of establishing its own PCC, the [organization] will coordinate services as follows: [describe here] Program Coordinating Committee [Complete this section if you plan to work with an existing PCC or establish your own PCC. Feel free to modify the sample policy as needed. If you do not plan to work with a PCC, delete this section.] The principal vehicle for ensuring ongoing coordination of services is the program coordinating committee (PCC), which has been established to assist in securing commitments of public and private resources for the operation of the FSS Program. Among other responsibilities, the PCC will help the FSS program to identify and build strong referral relationships with providers of supportive services that meet the needs of FSS participants. The PCC will also be consulted in developing program policies and procedures. The PCC will meet [identify frequency] and may conduct business on an as-needed basis via email or telephone conferences. The PCC includes the following representatives: 1. One or more FSS Program Coordinators 2. One or more participants from the [property name] 3. Representatives from a variety of agencies and individuals, which include but are not limited to the following: <<insert names and agencies>> 12.A.d Packet Pg. 2074 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 60 XV. FSS Portability (Applicable to HCV Only) 12.A.d Packet Pg. 2075 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 61 Instructions: While not specifically required by the federal program regulations, it can be helpful to include a section describing how the program will approach portability. (see 24 CFR 984.306 and FSS Guidebook Section 6.7 Portability in the FSS Program) Policy Decisions: In completing this section, you will need to make the following policy decision: 1. Whether your FSS program will allow portability in the first 12 months of enrollment. 2. Under what circumstances your FSS program will accept FSS participants porting into your FSS program from another jurisdiction’s FSS program. 3. Under what circumstances your FSS program will agree to a family porting into your agency’s jurisdiction to remain in the initial agency’s FSS program (provided that the initial PHA agrees to retain the family in its program and demonstrates that the family meets conditions under 24 CFR 984.306(b)1 to fulfill its Portability A. Portability in initial 12 months [Select one of the following options or add your own option about how you plan to address this issue] ☐ Option 1: While [organization] is not required to allow FSS participants to exercise portability within the initial 12 months after signing a CoP, it is the policy of [organization] to allow for portability within this period to the extent feasible. ☐ Options 2: FSS participants may not exercise portability within the initial 12 months after signing a CoP. B. Moves into the PHA’s jurisdiction [Adjust this sample policy as needed.] If an FSS participant moves into the PHA’s jurisdiction, they will be admitted in good standing into the [organization]’s FSS program unless the [organization] is already serving the number of FSS families identified in this FSS Action Plan and determines that it does not have the resources to manage the FSS contract. Regardless of whether [organization] is able to receive an incoming family from another jurisdiction into the FSS program, [organization] will agree to allow and support porting families to remain in their initial PHA’s FSS program after porting housing vouchers if the initial PHA requests that the family remain in the initial FSS program and can demonstrate the family is able to fulfill its responsibilities under the initial CoP, the move in jurisdictions notwithstanding. C. FSS termination with disbursement for porting families [Adjust this sample policy as needed.] If an FSS family seeks to move to a jurisdiction that does not offer an FSS program, the [organization] will closely examine the family’s progress to determine if it would be appropriate to exercise FSS Termination with Disbursement as discussed above in the section on Termination. [Note that the policy below is required under 24 CFR 984.306(b)2] will discuss the options that may be 12.A.d Packet Pg. 2076 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 62 responsibilities under the initial CoP). Where continued FSS participation is not possible, [organization] available to the family, depending on the family's specific circums not limited to, modification of the FSS contract, termination of the FS termination with FSS escrow disbursement in accordance with 24 C a receiving PHA that has the capacity to enroll the family into its FS XVI. Other Policies Instructions: Describe any other FSS program-related policies over which your program has discretion that are not covered above. The Sample Action Plan lists the local discretionary policies specifically identified under the section “optional additional information” in 24 CFR 984.201(d)13 and specifies in which section of this sample action plan each is included. Including a table like this one in your Sample Action Plan will make it easier to find policies that could be included under more than one heading. Other Policies [For each of the following policies, provide a cross-reference to where the policy is addressed in the Action Plan and/or describe the policy below Policy Where Addressed in Plan (i) Policies related to the modification of goals in the ITSP; Section IX Contract of Participation (ii) The circumstances in which an extension of the Contract of Participation may be granted Section IX: Contract of Participation (iii) Policies on the interim disbursement of escrow, including limitations on the use of the funds (if any) Section VI: FSS Escrow Account and Other Incentives for Participants (iv) Policies regarding eligible uses of forfeited escrow funds by families in good standing Section VI: FSS Escrow Account and Other Incentives for Participants (v) Policies regarding the re-enrollment of previous FSS participants, including graduates and those who exited the program without graduating Section IV. Family Selection Procedures 12.A.d Packet Pg. 2077 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 63 (vi) Policies on requirements for documentation for goal completion; Section IX: Contract of Participation (vii) Policies on documentation of the household’s designation of the “Head of FSS Household; Section IV. Family Selection Procedures (viii) Policies for providing an FSS selection Section IV: Family Selection Procedures preference for porting families (if the PHA elects to offer such a preference) A. Other Policies [List any other policies adopted by the FSS program not described above.] 12.A.d Packet Pg. 2078 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 64 XVII. Definitions Instructions: You may find it useful to include a definitions section at the end of your FSS Action Plan. These definitions are excerpted from a longer list of definitions in 24 CFR 984.103 Definitions The definitions below are specified in CFR 24 984.103. The terms 1937 Act, Fair Market Rent, Head of Household, HUD, Public Housing, Public Housing Agency (PHA), Secretary, and Section 8, as used in this part, are defined in 24 CFR Part 5. Certification means a written assertion based on supporting evidence, provided by the FSS family or the [organization], as may be required under this part, and which: (1) Shall be maintained by the [organization] in the case of the family’s certification, or by HUD in the case of the PHA’s or owner’s certification; (2) Shall be made available for inspection by HUD, the [organization], and the public, as appropriate; and, (3) Shall be deemed to be accurate for purposes of this part, unless the Secretary or the [organization], as applicable, determines otherwise after inspecting the evidence and providing due notice and opportunity for comment. Contract of Participation (CoP) means - a contract, in a form with contents approved by HUD, entered into between an FSS family and a [organization] operating an FSS Program that sets forth the terms and conditions governing participation in the FSS Program. The CoP includes all Individual Training and Services Plans (ITSPs) entered into between the [organization] and all members of the family who will participate in the FSS Program, and which plans are attached to the CoP as exhibits. For additional detail, see § 984.303. Effective date of Contract of Participation (CoP) - means the first day of the month following the date in which the FSS family and the PHA entered into the CoP. Eligible families means current residents of Public Housing (Section 9) and current Section 8 program participants, as defined in this section, including those participating in other local self-sufficiency programs. Enrollment means the date that the FSS family entered into the CoP with the [organization]. Family Self-Sufficiency (FSS) Program means the program established by a PHA within its jurisdiction or by an owner to promote selfsufficiency among participating families, including the coordination of supportive services to these families, as authorized by section 23 of the 1937 Act. FSS escrow account (or, escrow) means the FSS escrow account authorized by section 23 of the 1937 Act, and as provided by § 984.305. FSS escrow credit means the amount credited by the [organization] to the FSS family’s FSS escrow account. 12.A.d Packet Pg. 2079 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 65 12.A.d Packet Pg. 2080 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 66 FSS family means a family that resides in Public Housing (Section 9) or receives Section 8 assistance or receives HUD Project-Based Rental Assistance for a privately owned property, and that elects to participate in the FSS Program, and whose designated adult member (head of FSS family), as determined in accordance with § 984.303(a), has signed the CoP. FSS family in good standing means, for purposes of this part, an FSS family that is in compliance with their FSS CoP; has either satisfied or are current on any debts owed the [organization]; and is in compliance with the regulations regarding participation in the relevant rental assistance program.pro FSS related service program means any program, publicly or privately sponsored, that offers the kinds of supportive services described in the definition of ‘‘supportive services’’ set forth in this § 984.103. FSS slots - refers to the total number of families (as determined in the Action Plan and, for mandatory programs, in § 984.105 of this part) that the PHA will serve in its FSS Program. FSS Program Coordinator means the person(s) who runs the FSS program. This may include (but is not limited to) performing outreach, recruitment, and retention of FSS participants; goal setting and case management/coaching of FSS participants; working with the community and service partners; and tracking program performance. FY means Federal Fiscal Year (starting October 1 and ending September 30, and year designated by the calendar year in which it ends). Head of FSS family means the designated adult family member of the FSS family who has signed the CoP. The head of FSS family may, but is not required to be, the head of the household for purposes of determining income eligibility and rent. Individual Training and Services Plan (ITSP) means a written plan that is prepared by the [organization] in consultation with a participating FSS family member (the person with, for, and whom the ITSP is being developed), and which sets forth: (1) The final and interim goals for the participating FSS family member; (2) The supportive services to be provided to the participating FSS family members; (3) The activities to be completed by that family member; and, (4) The agreed upon completion dates for the goals and activities. Each ITSP must be signed by the [organization] and the participating FSS family member, and is attached to, and incorporated as part of the CoP. An ITSP must be prepared for each adult family member who elects to participate in the FSS Program, including the head of FSS family who has signed the CoP. Owner means the owner of multifamily assisted housing. Self-sufficiency means that an FSS family is no longer receiving Section 8, Public Housing assistance, or any Federal, State, or local rent or homeownership subsidies or welfare assistance. Achievement of self-sufficiency, although an FSS program objective, is not a condition for receipt of the FSS escrow account funds. 12.A.d Packet Pg. 2081 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 67 Supportive services mean those appropriate services that a [organization] will coordinate on behalf of an FSS family under a CoP, which may include, but are not limited to: (1) Childcare—childcare (on an as-needed or ongoing basis) of a type that provides sufficient hours of operation and serves an appropriate range of ages; (2) Transportation—transportation necessary to enable a participating FSS family member to receive available services, or to commute to their place(s) of employment; (3) Education—remedial education; education for completion of high school or attainment of a high school equivalency certificate; education in pursuit of a post-secondary degree or certificate; (4) Employment Supports—job training, preparation, and counseling; job development and placement; and follow-up assistance after job placement and completion of the CoP; (5) Personal welfare—substance/alcohol abuse treatment and counseling, and health, dental, mental health and health insurance services; (6) Household management—training in household management; (7) Homeownership and housing counseling— homeownership education and assistance and housing counseling; (8) Financial Empowerment—training in financial literacy, such as financial coaching, training in financial management, asset building, and money management, including engaging in mainstream banking, reviewing and improving credit scores, etc.; (9) Other services—any other services and resources, including case management, optional services, and specialized services for individuals with disabilities, that are determined to be appropriate in assisting FSS families to achieve economic independence and selfsufficiency. Reasonable accommodations and modifications must be made for individuals with disabilities consistent with HUD requirements, including HUD’s legal obligation to make reasonable modifications under Section 504 of the Rehabilitation Act. Welfare assistance means (for purposes of the FSS program only) income assistance from Federal, (i.e. Temporary Assistance for Needy Families (TANF) or subsequent program) State, or local welfare programs and includes only cash maintenance payments designed to meet a family’s ongoing basic needs. Welfare assistance does not include: (1) Nonrecurrent, short-term benefits that: (i) Are designed to deal with a specific crisis or episode of need; (ii) Are not intended to meet recurrent or ongoing needs; and, (iii) Will not extend beyond four months. (2) Work subsidies (i.e., payments to employers or third parties to help cover the costs of employee wages, benefits, supervision, and training); 12.A.d Packet Pg. 2082 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 68 (3) Supportive services such as childcare and transportation provided to families who are employed; (4) Refundable earned income tax credits; (5) Contributions to, and distributions from, Individual Development Accounts under Temporary Assistance for Needy Families (TANF); (6) Services such as counseling, case management, peer support, childcare information and referral, financial empowerment, transitional services, job retention, job advancement, and other employment-related services that do not provide basic income support; (7) Amounts solely directed to meeting housing expenses; (8) Amounts for health care; (9) Supplemental Nutrition Assistance Program and emergency rental and utilities assistance; (10) Supplemental Security Income, Social Security Disability Income, or Social Security; and (11) Child-only or non-needy TANF grants made to or on behalf of a dependent child solely on the basis of the child’s need and not on the need of the child’s current non-parental caretaker. 12.A.d Packet Pg. 2083 Attachment: HUD's Template FSS Action Plan [Revision 1] (5601 : Housing Authority Annual Plan) 5-Year PHA Plan (for All PHAs) U.S. Department of Housing and Urban Development Office of Public and Indian Housing OMB No. 2577-0226 Expires: 02/29/2016 Purpose. The 5-Year and Annual PHA Plans provide a ready source for interested parties to locate basic PHA policies, rules, and requirements concerning the PHA’s operations, programs, and services, and informs HUD, families served by the PHA, and members of the public of the PHA’s mission, goals and objectives for serving the needs of low- income, very low- income, and extremely low- income families Applicability. Form HUD-50075-5Y is to be completed once every 5 PHA fiscal years by all PHAs. Page 1 of 4 form HUD-50075-5Y (12/2014) A. PHA Information. A.1 PHA Name: Santa Monica Housing Authority PHA Code: ___CA 111______ PHA Plan for Fiscal Year Beginning: (MM/YYYY): 07/2020 PHA Plan Submission Type: 5-Year Plan Submission Revised 5-Year Plan Submission Availability of Information. In addition to the items listed in this form, PHAs must have the elements listed below readily available to the public. A PHA must identify the specific location(s) where the proposed PHA Plan, PHA Plan Elements, and all information relevant to the public hearing and proposed PHA Plan are available for inspection by the public. Additionally, the PHA must provide information on how the public may reasonably obtain additional information on the PHA policies contained in the standard Annual Plan, but excluded from their streamlined submissions. At a minimum, PHAs must post PHA Plans, including updates, at each Asset Management Project (AMP) and main office or central office of the PHA. PHAs are strongly encouraged to post complete PHA Plans on their official websites. PHAs are also encouraged to provide each resident council a copy of their PHA Plans. PHA Consortia: (Check box if submitting a Joint PHA Plan and complete table below) Participating PHAs PHA Code Program(s) in the Consortia Program(s) not in the Consortia No. of Units in Each Program PH HCV Lead PHA: Attachment E 12.A.e Packet Pg. 2084 Attachment: 5-YearPlan FY 2020 [Revision 1] (5601 : Housing Authority Annual Plan) Page 2 of 4 form HUD-50075-5Y (12/2014) 5-Year Plan. Required for all PHAs completing this form. B.1 Mission. State the PHA’s mission for serving the needs of low- income, very low- income, and extremely low- income families in the PHA’s jurisdiction for the next five years. The mission of the PHA is the same as that of the Department of Housing and Urban Development: To promote adequate and affordable housing, economic opportunity and a suitable living environment free from discrimination. B.2 Goals and Objectives. Identify the PHA’s quantifiable goals and objectives that will enable the PHA to serve the needs of low- income, very low- income, and extremely low- income families for the next five years. •Expand access to Permanent Supportive Housing (PSH) by attaching project-based vouchers to PSH apartments. •Increase voucher applicant diversity by outreaching to the Santa Monica workforce with the goal of reaching employees who work 25 hours a week or more in Santa Monica. •Apply for mainstream vouchers, as they are available, to assist non-elderly persons living with disabilities. •Continue to serve veterans and individuals experiencing homelessness by applying for Veterans Affairs Supportive Housing and Continuum of Care vouchers, as they are available. •Reduce barriers to housing by establishing a funding source to provide insurance to property owners who lease apartments to voucher holders with poor credit. •Explore options for outsourcing annual eligibility recertification work and shift staff focus to new admissions with the goal of fully utilizing the PHA’s budget authority and maintaining program quality. •Establish relationships with agencies that provide volunteer opportunities and employment services to assist participants who are unemployed or underemployed.. •Expand opportunities to apply for housing by opening waitlists for the Housing Choice Voucher, Affordable Housing, and Preserving Our Diversity (POD) programs and keeping them open continuously. •Maintain housing of low-income households by using available resources to prevent homelessness and support well-being of participants. •Coordinate with Human Services and service providers to prevent eviction and displacement. •Conduct extensive marketing of the programs and provide education that reduces the stigma of needs based programs. •Develop a client-focused customer service policy; •Increase community integration for persons with disabilities; •Promote civic engagement of recipients; •Reduce barriers to housing by increasing total supply of housing for voucher holders to potentially access. B.3 Progress Report. Include a report on the progress the PHA has made in meeting the goals and objectives described in the previous 5-Year Plan. Progress Report attached as a separate document. B.4 Violence Against Women Act (VAWA) Goals. Provide a statement of the PHA’s goals, activities objectives, policies, or programs that will enable the PHA to serve the needs of child and adult victims of domestic violence, dating violence, sexual assault, or stalking. •The PHA will continue to comply with the updated VAWA Reauthorization Act. •The PHA will offer a preference to families that are victims of domestic violence/familial abuse, sexual assault or stalking, who have been displaced in the City of Santa Monica as a result of the victimization. •The City of Santa Monica provides funding for shelter-based services including social services assistance, resource referral, clinical therapy, peer counseling, and court advocacy to victims of domestic violence. Children Empowerment programming and Youth Violence Prevention and Education Workshops are also provided. 12.A.e Packet Pg. 2085 Attachment: 5-YearPlan FY 2020 [Revision 1] (5601 : Housing Authority Annual Plan) Page 3 of 4 form HUD-50075-5Y (12/2014) B.5 Significant Amendment or Modification. Provide a statement on the criteria used for determining a significant amendment or modification to the 5-Year Plan. SMHA defines a “Significant Amendment and Substantial Deviation/Modification” when changes are made to the preferences/priorities on the waiting list (Currently defined in the Administrative Plan), if programs or number of persons to be served is reduced due to the loss of supporting revenue, if changes are made to the FMR but only if it adversely impacts tenants, and changes to the appeals/grievance process if tenants are negatively impacted. When significant changes are proposed SMHA will post a 45-day public review notice (24 CFR 903.17(r)), assure that the amendment is consistent with the Consolidated Plan 24 CFR 903.15 (unless action is taken due to funding reduction of programs) and must be approved by the Housing Commission. HUD approval is required prior to implementation of amendments. An exception to this definition will be made for any of the above changes that are adopted to reflect changes in HUD regulatory requirements and will not be considered significant amendments by HUD. B.6 Resident Advisory Board (RAB) Comments. (a)Did the RAB(s) provide comments to the 5-Year PHA Plan? Y N *Comments provided by RAB will be submitted with the 5-Year Plan. (b) If yes, comments must be submitted by the PHA as an attachment to the 5-Year PHA Plan. PHAs must also include a narrative describing their analysis of the RAB recommendations and the decisions made on these recommendations. B.7 Certification by State or Local Officials. Form HUD 50077-SL, Certification by State or Local Officials of PHA Plans Consistency with the Consolidated Plan, must be submitted by the PHA as an electronic attachment to the PHA Plan. Instructions for Preparation of Form HUD-50075-5Y 5-Year PHA Plan for All PHAs A.PHA Information 24 CFR §903.23(4)(e) A.1 Include the full PHA Name, PHA Code, , PHA Fiscal Year Beginning (MM/YYYY), PHA Plan Submission Type, and the Availability of Information, specific location(s) of all information relevant to the hearing and proposed PHA Plan. PHA Consortia: Check box if submitting a Joint PHA Plan and complete the table. B. 5-Year Plan. B.1 Mission. State the PHA’s mission for serving the needs of low- income, very low- income, and extremely low- income families in the PHA’s jurisdiction for the next five years. (24 CFR §903.6(a)(1)) B.2 Goals and Objectives. Identify the PHA’s quantifiable goals and objectives that will enable the PHA to serve the needs of low- income, very low- income, and extremely low- income families for the next five years. (24 CFR §903.6(b)(1)) For Qualified PHAs only, if at any time a PHA proposes to take units offline for modernization, then that action requires a significant amendment to the PHA’s 5-Year Plan. B.3 Progress Report. Include a report on the progress the PHA has made in meeting the goals and objectives described in the previous 5- Year Plan. (24 CFR §903.6(b)(2)) B.4 Violence Against Women Act (VAWA) Goals. Provide a statement of the PHA’s goals, activities objectives, policies, or programs that will enable the PHA to serve the needs of child and adult victims of domestic violence, dating violence, sexual assault, or stalking. (24 CFR §903.6(a)(3)) B.5 Significant Amendment or Modification. Provide a statement on the criteria used for determining a significant amendment or modification to the 5-Year Plan. B.6 Resident Advisory Board (RAB) comments. (a)Did the public or RAB provide comments? (b)If yes, submit comments as an attachment to the Plan and describe the analysis of the comments and the PHA’s decision made on these recommendations. (24 CFR §903.17(a), 24 CFR §903.19) 12.A.e Packet Pg. 2086 Attachment: 5-YearPlan FY 2020 [Revision 1] (5601 : Housing Authority Annual Plan) Page 4 of 4 form HUD-50075-5Y (12/2014) This information collection is authorized by Section 511 of the Quality Housing and Work Responsibility Act, which added a new section 5A to the U.S. Housing Act of 1937, as amended, which introduced the 5-Year PHA Plan. The 5-Year PHA Plan provides the PHA’s mission, goals and objectives for serving the needs of low- income, very low- income, and extremely low- income families and the progress made in meeting the goals and objectives described in the previous 5-Year Plan. Public reporting burden for this information collection is estimated to average .76 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. HUD may not collect this information, and respondents are not required to complete this form, unless it displays a currently valid OMB Control Number. Privacy Act Notice. The United States Department of Housing and Urban Development is authorized to solicit the information requested in this form by virtue of Title 12, U.S. Code, Section 1701 et seq., and regulations promulgated thereunder at Title 12, Code of Federal Regulations. Responses to the collection of information are required to obtain a benefit or to retain a benefit. The information requested does not lend itself to confidentiality. 12.A.e Packet Pg. 2087 Attachment: 5-YearPlan FY 2020 [Revision 1] (5601 : Housing Authority Annual Plan) Attachment F 1 Rent Increases The Policy Change is on Pages 8-20 to 8-21 of the Draft Administrative Plan 12.A.f Packet Pg. 2088 Attachment: Propose Changes to Administrative Plan (5601 : Housing Authority Annual Plan) Attachment F 2 Shared Housing The Policy Change is on Page 15-1 of the Draft Administrative Plan 12.A.f Packet Pg. 2089 Attachment: Propose Changes to Administrative Plan (5601 : Housing Authority Annual Plan) Attachment G 1 Summary of Comments and Responses Public Comment, General Public, Voucher Participants, & SMHA Staff Response Written Comment: Regarding the letter from the SMHA for the Administrative Plan workshop dated March 6, 2023, the meeting does not exist. Response: The opportunity to provide input and the meeting for the Administrative Plan workshop was held Monday, March 13, 2023, at 1:00 PM in accordance with that notice. The following comments were submitted in writing by a single voucher holder via direct correspondence with the SMHA and at the March 2, 2023, Housing Commission meeting. Comments: There is no mention of any RAB, or RAB representatives participating on SMAHAB in any ordinance, resolution, motion with direction for staff to establish a RAB in any particular form, and there is no mention in the SMHAB bylaws of the RAB or RAB reps to serve on SMHAB. There has been no public process pertaining to the establishment of a RAB in any particular form, not has there been any public process pertaining to the establishment of any seats for SMHA program participants on SMHAB, or the process of electing or appointing to such seats. If there exists any SMHAB resolution or ordinance establishing a Santa Monica RAB, or if there exists any mention of a RAB or RAB reps in the SMHAB bylaws, please provide them to me prior to the discussion of the Admin Plan in April 2023 by SMHAB. James Kemper has been instrumental in preventing the voucher holders from being able to meet and deliberate regarding their input to the Administrative Plan. James Kemper claims that the fact that (according to him) each voucher holder received a notice of the opportunity to individually submit comments to SMHA regarding the Administrative Plan is equivalent to the voucher holders being able to meet and collectively deliberate and come up with input. This is an idea as absurd as one where Council Members do not need to meet but rather, they can individually, without any deliberation or even contact with one another, submit their individual thoughts to the City Hall where staffers can post those individual opinions for the public to read in lieu of the Council holding public meetings and deliberating together… Why does the Santa Monica City Council meet instead of its members individually submitting their individual thoughts on agenda items to the City Hall? Why does the SMHA Board meet? Why does the School Board meet? Why do nonprofit boards meet? Why does any city board, commission, task force or committee meet? Why does the State Assembly meet? Why does the US Congress meet? Why are there HOA board meetings? Why are there neighborhood group board meetings?... 12.A.g Packet Pg. 2090 Attachment: Summary of Comments and Responses [Revision 3] (5601 : Housing Authority Annual Plan) Attachment G 2 The City Attorney for the City of Santa Monica, who reportedly also represents and advises the SMHAB, has not been involved in the establishment of a RAB or in the establishment of a process that would lead to the appointments of RAB reps to the SMHAB for any specific length or number of terms. CoC voucher holders do not have any representation on the Housing Authority Board (HAB). Elizabeth Cochran and Donna Brown have been not appointed with any input from the program participants and are not representatives. If HCV participants have their reps on HAB, why don't CoC participants have one as well? we have a state of emergency declared based on homelessness, but we don't want to hear from unhoused people? What kind of government acts like this? The Housing Commission is NOT a policymaking body but merely an advisory body to SMHA Board (i.e. City Council). The participation of a formerly homeless person on the Housing Commission is not equivalent to what is required by federal regulation. The Housing Authority Board is and has been for decades in violation of the federal requirement to include at least one representative of the Continuum of Care program (a currently or formerly unhoused participant in the CoC program). There are no HCV reps on SMHA Board and yet SMHA sends out misleading correspondence to program participants claiming that such reps exist. Response: The main role of the Resident Advisory Board (RAB) is to make recommendations in the development of the Public Housing Authority (PHA) Plan. The current RAB consists of the entire Housing Choice Voucher (HCV) program and solicits direct input from all voucher participants. The SMHA is currently compliant with the federal requirements for the Housing Authority Board (HAB) and the RAB. Elizabeth Cochran and Donna Brown are both active tenants in the SMHA’s voucher program and qualify to be tenant representatives. Additionally, the SMHA is compliant with 24 CFR 964.425 (b), with regard to representation which was confirmed by HUD on May 29, 2020. The SMHA has actively sought input from all voucher program participants during the public comment period with various opportunities. On February 3, 2023, staff posted the start of the public review period on the Housing Office website. Notices were published in the Santa Monica Daily Press on February 4, 2023, and February 25, 2023. On February 6, 2023, staff directly notified members of the Resident Advisory Board and all other voucher participants via direct mail or email correspondence of the opportunity to provide input on the SMHA Plans. Additionally, staff invited all voucher participants and members of the public to the Housing Commission meeting on March 2, 2023, to provide comments and input on the SMHA Plans. Staff also held a workshop on March 6, 2023, which served as another opportunity to discuss and provide input during the public review period. 12.A.g Packet Pg. 2091 Attachment: Summary of Comments and Responses [Revision 3] (5601 : Housing Authority Annual Plan) Attachment G 3 To create a more inclusive and representative Housing Authority Board (HAB) and RAB, the SMHA is proposing the creation of a Client Advisory Board (CAB) which would create opportunities for all the SMHA’s voucher participants to serve on the CAB as well as the HAB. The two tenant representatives on the HAB would be selected from the newly proposed CAB, which will be presented for Council and HAB consideration on April 11, 2023. Comment: There is currently no Resident Advisory Board in Santa Monica, therefore there has not been a RAB process as required by federal law for the Admin Plan to be approved by SMHA Board. Additionally, there is no unhoused or formerly unhoused tenant representative on SMHAB as is required by federal law. The current composition of SMHAB is unlawful, therefore the Board has no authority to discuss or approve the Admin Plan. There is no functioning RAB, and SMHA has been aggressively obstructing the creation of one despite a dire need and a strong interest from program participants. Response: HUD guidance provides Housing Authorities with great discretion in the creation or a RAB. The current RAB for the SMHA consists of the entire Housing Choice Voucher (HCV) participant population and complies with federal regulations. Regarding the Housing Authority Board, HUD determined in 2015 that the SMHA is in compliance with the Continuum of Care (CoC) program requirement regarding participation of a homeless person or formerly homeless person, as such representation is achieved through the Housing Commission and its bylaws requirement that at least one Commissioner be a homeless person of formerly homeless person. Comment: A proper assessment of the feasibility of administering HUD's HCV Homeownership Program should be a goal of SMHA as part of its efforts to affirmatively further fair housing (AFFH). Response: Adding a Homeownership program would involve evaluating the associated regulations, assessing the feasibility of such a program given the gap between maximum voucher payment standards and real estate prices in Santa Monica, and determining the staffing and other resources needed to support the program. Currently, the SMHA is focused on completing its core responsibilities according to HUD’s requirements and does not have resources that can be allocated to assessing the feasibility of new programs such as a homeownership program. 12.A.g Packet Pg. 2092 Attachment: Summary of Comments and Responses [Revision 3] (5601 : Housing Authority Annual Plan) Attachment G 4 Summary of Resident Advisory Board Member Comments, Other Voucher Participant Comments & SMHA Staff Response Resident Advisory Board (RAB)/Client Advisory Board (CAB) (Submitted by Email/at the Housing Commission meeting and Administrative Plan Workshop): Comments: The SMHA Board should refuse to approve the Administrative and Annual Plans until all RAB members can meet, review discretionary documents, discuss, and submit collective feedback to the SMHA. Delay requesting/providing Housing Authority Board approval of any Administrative Plan changes until RAB members are meaningfully informed about the document and their rights, provided a genuine and accessible opportunity to meet as a RAB and discuss the Administrative Plan, and given adequate time and means to provide feedback as a RAB. The SMHA should immediately schedule the six-month-overdue meeting of the RAB/CAB that was ordered to be organized “with haste” by a unanimous City Council/SMHA Board vote on September 13, 2022. As a RAB member, I am guaranteed by federal HUD policy administrative support by the SMHA to meet with my fellow RAB members to discuss RAB business. It is not sufficient to call all client’s RAB members but only allow direct individual feedback to staff on the Administrative Plan. SMHA must set a RAB meeting for RAB members only ASAP. City Council voted to direct staff to do just that for RAB (and would-be CAB) members "with haste" last year and it has yet to be done. SMHA clients are being denied participation in a functioning RAB for yet another Administrative Plan cycle in violation of federal policy. The last-minute workshop does not fulfill SMHA’s obligation to inform clients about the Administrative Plan and provide an opportunity for us to confer as a RAB and submit feedback as a RAB. We’re receiving less than two weeks notice (for mail recipients it will be closer to a week), it’s scheduled for 1pm on a workday, and there’s no opportunity for the RAB to confer before providing input. I would like to affirm the requests of several participants who have requested a general meeting prior to approval of the HUD plan. My suggestion is a meeting facilitated by a professional eg. Dr. Karen Gunn who has extensive expertise in working with client groups. Since the plan is so large another suggestion would be breakout groups that could synthesize the material and present feedback to the group. The SMHA adopts the recommendations of the Housing Commission regarding the RAB/CAB, including supporting annual RAB/Cab Elections to the SMHA Board. The SMHA should facilitate annual or biannual surveys created and conducted by the RAB/CAB by a) both emailing and mailing surveys and instructions to all SMHA clients in English and Spanish with instructions to request translations into other languages written in all known client languages and 12.A.g Packet Pg. 2093 Attachment: Summary of Comments and Responses [Revision 3] (5601 : Housing Authority Annual Plan) Attachment G 5 b) for the results of the surveys to be compiled and provided to the RAB/CAB for further use. Response: On February 3, 2023, staff posted the start of the public review period on the Housing Office website. Notices were published in the Santa Monica Daily Press on February 4, 2023, and February 25, 2023. On February 6, 2023, staff directly notified members of the Resident Advisory Board and all other voucher participants via direct mail or email correspondence of the opportunity to provide input on the SMHA Plans. Additionally, staff invited all voucher participants and members of the public to the Housing Commission meeting on March 2, 2023, to provide comments and input on the SMHA Plans. Staff also held a workshop on March 6, 2023, which served as another opportunity to discuss and provide input during the public review period. Finally, nine voucher holders met independently of SMHA staff to discuss and provide input on the SMHA plans. The SMHA is proposing the creation of a Client Advisory Board (CAB) which took considerations from the HAB, the Housing Commission, an independent consultant, and is modeled after other boards in the City of Santa Monica. Programs and Opportunities Family Self-Sufficiency (FSS) Program Comment: The SMHA should revive the FSS Program and actively seeks out funding through the Notice of Funding Opportunities (NOFOs) applications to ensure the FSS Program has the maximum funding available. Response: The SMHA is currently sunsetting the FSS program and most of the operational aspects have been or will be shut down. Although the SMHA can seek out funding for the FSS program, it would not be sufficient to revitalize the FSS program. Additionally, the SMHA is focused on completing its core responsibilities as a Housing Authority and does not have resources that can be allocated to revitalize the FSS program. Move to Work (MTW) Demonstration Comment: The SMHA apply for the MTW demonstration, which would grant the housing authority more flexibility in the execution of its programs and funding. Response: The MTW is a demonstration program for public housing authorities (PHAs) like the SMHA that provides an opportunity to design and test innovative, locally designed strategies that use Federal 12.A.g Packet Pg. 2094 Attachment: Summary of Comments and Responses [Revision 3] (5601 : Housing Authority Annual Plan) Attachment G 6 dollars more efficiently, help residents find employment and become self-sufficient, and increase housing choices for low-income families. Applying for the MTW will require extensive consideration, review of the demonstration parameters, discussions with HUD for feasibility and applicability to the SMHA, and approval from the HAB. The SMHA will explore the MTW option. Homeownership Comments: The SMHA should create a Homeownership Program for HCV program participants as a way to assist those of low or extremely low income in purchasing a condo or house. Note: that any homeownership program created for SMHA HCV participants can be used to purchase homes outside of the City of Santa Monica. Response: The SMHA does not offer an HCV Homeownership program. Adding such a program would involve evaluating the associated regulations, assessing the feasibility of such a program given the gap between maximum voucher payment standards and real estate prices in Santa Monica, and determining the staffing and other resources needed to support the program. The SMHA is focused on completing its core responsibilities for Santa Monica residents according to HUD’s requirements and does not have resources that can be allocated to assessing the feasibility of a homeownership program. Payment Standards Comments: The SMHA convert the payment standard to Small Area FMR and raise payment standards according to the recent Housing Commission recommendations to the City Council/SMHA Board. The Payment Standard is insufficient. Response: The SMHA is currently reviewing the feasibility of using the Small Area Fair Market Rents (SAFMRs) to establish Payment Standards, rather than the metropolitan area Fair Market Rents. Comment: Make the Payment Standards automatically correlate with the Fair Market Rent (FMR) posted to HUD’s website. Response: The SMHA is required to review the Payment Standards at least once a year and make sure they are within HUD’s designated range of 90 percent to 110 percent of the current published FMR. Based on a previously requested and approved exception to the HUD limit of 110 percent, the SMHA’s Payment Standards currently exceed 110 percent of the current FMR for 1-, 2-, and 3-bedroom units, and for Efficiency units is at 99 percent of the 2023 published FMR. The following table shows the current SMHA and metropolitan area FMRs (Payment Standards). 12.A.g Packet Pg. 2095 Attachment: Summary of Comments and Responses [Revision 3] (5601 : Housing Authority Annual Plan) Attachment G 7 Policy Comment: The SMHA received comments from participants, RAB members, and a letter from the Legal Aid Foundation of Los Angeles about the SMHA’s current Rent Increase policy, practices, and procedures. Response: The SMHA agrees with the comments that were submitted about landlords affirmatively requesting rent Increases and notifying tenants and has added clarifying language in the proposed Administrative Plan, Chapter 8 Section 8-III.B., Page 8-23. Comment: The SMHA allow HCV clients to cohabitate using their vouchers such as renting a room in a house or having roommates who are or are not HCV clients share living space. Note that the City of Los Angeles and other jurisdictions permit this. Response: The SMHA agrees with your input that voucher holders should be able to use the voucher in a shared housing situation and is proposing to amend the Administrative Plan to allow for Shared Housing. The proposed amendment can be found in The Administrative Plan Chapter 15, Page 15-1. Comment: Change the "Bedroom Standards". Or HCV bedroom allotment for families. Change it to 1 person= 1 bedroom and at the 1 bedroom payment standards for HCV approval. If there is 1 parent and one child = 2 bedrooms, 2 adults = 2 bedrooms unless they are married. 1 adult and two children can have 2 bedrooms if the children are close in age and same gender. If the children are opposite identifying children then they can change an adult with 2 children (1 boy and 1 girl) as granted 3 bedrooms and 3bedroom payment standards. 1 Married couples can have one bedroom because they would likely be sleeping in the same room together. Stop considering studios or efficiency as a "1 bedroom" under the rent payment standards. Stop treating the living room as a bedroom. If an appraiser for a property that is for sail, only considers it a bedroom if it has its own door and closet for clothing storage then that is what it should be for everyone. Studios and efficiency has to be treated as immediate and temporary housing similar to tiny homes, never intended for long term residency. Adjusting the bedroom standard makes it easier to find housing. Also, I am even a fan of just giving people a budget based on household and say go find housing in this price range whatever you can find and be approved for. Rather than saying if you find a 2 bedroom with a den that you are prohibited from using your 3 bedroom voucher because it's not technically a bedroom. It's could save the housing authority money for a family to choose that unit to rent, so let them exercise 12.A.g Packet Pg. 2096 Attachment: Summary of Comments and Responses [Revision 3] (5601 : Housing Authority Annual Plan) Attachment G 8 choice. If a 1 bedroom person would rather have a studio because it's the only place available near their job and within their price range, let them choose it while maintaining their 1 bedroom payment standards because it gets them housed quickly and that is the primary purpose. Maybe they have mobility issues or they want to pay less utilities every month. Trust them to make a decision for themselves by taking away so much restrictive language and obstacles that could affect efficient use of the program. Response: The SMHA is required to adhere to HUD’s federal regulations in the facilitating and application of vouchers. The SMHA is required to size the voucher to the smallest number of bedrooms needed to house a family without overcrowding (defined as 2 persons per bedroom + 1). The federal regulation that governs both is 24CFR § 982.402 which states the following: (b) Determining family unit size. The following requirements apply when the PHA determines family unit size under the PHA subsidy standards: (1) The subsidy standards must provide for the smallest number of bedrooms needed to house a family without overcrowding. Additionally, the same regulation further states: (c) Effect of family unit size-maximum subsidy in voucher program. The family unit size as determined for a family under the PHA subsidy standard is used to determine the maximum rent subsidy for a family assisted in the voucher program. For a voucher tenancy, the PHA establishes payment standards by number of bedrooms. The payment standard for a family shall be the lower of: (1) The payment standard amount for the family unit size; or (2) The payment standard amount for the unit size of the unit rented by the family. (3) Voucher program. For a voucher tenancy, the PHA establishes payment standards by number of bedrooms. The payment standards for the family must be the lower of: (i) The payment standards for the family unit size; or (ii) The payment standard for the unit size rented by the family. Comment: Add some language that will say that if a person is a victim of crime or custody matter or abduction/kidnapping that they will be treated as if the child is still at home if they can show the agency a nexus between the missing household member and criminal activity such as domestic violence. And without housing decisions for allotment being related to any court orders. Some people who have had to escape domestic violence or whatever have been separated from their children or other family members and they should have enough space to provide for them should they return. If a walkthrough was conducted on a one-bedroom and a parent is trying to get 4 children back for example, it might be seen as a negative to be living in a one-bedroom compared to a husband who has a house for example. We avoid punishing victims and the poor for their life 12.A.g Packet Pg. 2097 Attachment: Summary of Comments and Responses [Revision 3] (5601 : Housing Authority Annual Plan) Attachment G 9 circumstances. Rather we look for ways to help and improve their lives and circumstances long term. Response: The SMHA does have language in the Administrative Plan that establish exceptions to subsidy standard (i.e., bedroom size) on page 5-15, section 5-II.C. which states the following: In determining family unit size for a particular family, the PHA may grant an exception to its established subsidy standards if the PHA determines that the exception is justified by the age, sex, health, handicap, or relationship of family members or other personal circumstances [24 CFR 982.402(b)(8)]. Reasons may include, but are not limited to: • A need for an additional bedroom for medical equipment • A need for a separate bedroom for reasons related to a family member’s disability, medical or health condition For a single person who is not elderly, disabled, or a remaining family member, an exception cannot override the regulatory limit of a zero or one bedroom [24 CFR 982.402(b)(8)]. PHA Policy The PHA will consider granting an exception for any of the reasons specified in the regulation: the age, sex, health, handicap, or relationship of family members or other personal circumstances. The family must request any exception to the subsidy standards in writing. The request must explain the need or justification for a larger family unit size, and must include PHA required documentation. Requests based on health-related reasons must be verified by a knowledgeable professional source (e.g., doctor or health professional), unless the disability and the disability– related request for accommodation is readily apparent or otherwise known. The family’s continued need for an additional bedroom due to special medical equipment must be re-verified at annual reexamination. After a request for an exception is presented, the PHA will respond in writing, acknowledging receipt of the request, within 10 business days. Based on the verified need for the exception or the absence thereof, the PHA will render its decision within a reasonable period of time. If a participant family’s request is denied, the notice will inform the family of their right to request an informal review. Comment: Ensure the Annual and Administrative Plans include language that states program participants are to be treated with respect and dignity by staff and landlords at all times and details recourse for clients when that policy is violated. 12.A.g Packet Pg. 2098 Attachment: Summary of Comments and Responses [Revision 3] (5601 : Housing Authority Annual Plan) Attachment G 10 Response: A core requirement of job duties for all SMHA staff is to provide effective customer service, which includes treating program participants with respect. Additionally, the Administrative Plan includes a policy regarding discrimination complaints – see pages 2-4 to 2-5. The Administrative Plan is specifically meant to describe the SMHA’s policies for the administration of the voucher programs, implementing and complying with federal regulations, rather than establishing customer service standards for staff. However, the SMHA is receptive to feedback about improving customer service and addressing complaints. A landlord’s obligations to the voucher program participant are dictated by the terms of the lease and should be negotiated during the lease process. The landlord’s obligation to the SMHA is dictated by the Housing Assistance Payment (HAP) contract, which is a HUD-authored document that must be used by Housing Authorities. If the landlord violates the HAP contract, the SMHA enforces the contract in accordance with the specific violation and the policies and procedures outlined in the Administrative Plan. New Staff Positions Comment: The SMHA should create and hire a dedicated position of ADA/Section 504 Coordinator as strongly recommended by the 2020 Assessment of Fair Housing report with the City of Santa Monica Housing and Economic Development Department and the Lawyers’ Committee for Civil Rights Under Law and published on April 1, 2020, and approved by City Council on April 28, 2020 (https://www.santamonica.gov/housing-policy-and-reports). Response: The SMHA is funded to complete its core responsibilities according to HUD’s requirements and does not have the resources or capacity to hire a designated ADA/Section 504 Coordinator at this time. The City of Santa Monica has a designated ADA/Section 504 Coordinator that also works with the SMHA. The name and contact information for the ADA Coordinator is: Mirna Medina, ADA/Section 504 Coordinator PO Box 4050 Santa Monica CA 90411 310-434-2605 TTY: 310-458-8696 ADACoordinator@smgov.net Comment: The SMHA needs to designate or hire a Veteran Liaison to assist clients who have served in the military. Response: The SMHA is funded to complete its core responsibilities according to HUD’s requirements and does not have the resources to hire a designated Veteran Liaison. Additionally, the HUD-Veterans Affairs 12.A.g Packet Pg. 2099 Attachment: Summary of Comments and Responses [Revision 3] (5601 : Housing Authority Annual Plan) Attachment G 11 Supportive Housing (HUD-VASH) program, one of the voucher programs administered by the SMHA, combines HUD’s Housing Choice Voucher (HCV) rental assistance for homeless veterans with case management and clinical services provided by the Department of Veterans Affairs (VA). The VA provides these services for participating veterans at VA medical centers (VAMCs), community-based outreach clinics (CBOCs), through VA contractors, or through other VA-designated entities. Comment: The SMHA hire a Landlord Liaison/Housing Navigator, successfully utilized in jurisdictions nationwide, to help advocate for clients with prospective and current landlords and help prospective and current landlords navigate SMHA bureaucracy in a smooth and timely fashion. This position is necessary to facilitate voucher utilization and prevent the source of income discrimination that while illegal, is rampant in Santa Monica. Create or advocate for a public relations campaign to destigmatize SMHA clients and housing voucher holders as a whole and raise awareness of the benefits of HUD programs to tenants, landlords, and larger communities. Response: The SMHA is funded to complete its core responsibilities according to HUD’s requirements and does not have the resources to hire a designated Landlord Liaison/Housing Navigator or a Public Relations Officer. Additionally, the City of Santa Monica funds several local social service agencies that provide housing navigation to clients participating in their programs. Further, the City of Santa Monica has outlawed source of income discrimination in housing, and anyone experiencing such discrimination may file a complaint with the Consumer Protection Division of the City Attorney’s Office, which can be reached at 310-458-8336. Comment: The SMHA should seek the participation and input of the RAB/CAB when hiring a new Landlord Liaison/Housing Navigator, dedicated ADA/Section 504 Coordinator/Disability Liaison, and Veteran Liaison Response: The SMHA is part of the City of Santa Monica and must follow the same policies and procedures when hiring staff. Customer Service Comment: The SMHA add to the Administrative Plan and website a flow chart with names, titles, contact information, and salary funding source (federal or city) of every single SMHA employee and manager, including city employees charged with SMHA interaction and/or oversight. This must 12.A.g Packet Pg. 2100 Attachment: Summary of Comments and Responses [Revision 3] (5601 : Housing Authority Annual Plan) Attachment G 12 include each employee’s direct report and names and contact information for recourse when clients encounter problems with SMHA at any level. Response: The SMHA is part of the City of Santa Monica and follows the same information protocols and transparency requirements as other City departments. Additionally, the SMHA provides direct contact information to program participants at the initial voucher briefing, every annual recertification, and as requested by program participants. The SMHA as an agency reports to and is overseen HUD. Here is the website link to the contact information for the HUD Los Angeles Office: https://www.hud.gov/states/california/offices Los Angeles Field Office United States Department of Housing & Urban Development (HUD) Los Angeles Field Office 300 North Los Angeles Street, Suite 4054 Los Angeles, CA 90012 Phone: (213) 894-8000 Email: Customer Service Fax: (213) 894-8107 TTY: (213) 894-8133 or Dial 7-1-1 (Not available in all areas.) The SMHA’s governing body is the Housing Authority Board. Here is the website: https://www.santamonica.gov/housing-hab Here is the website link to the Salary Schedules of Santa Monica Employees: https://www.santamonica.gov/media/Document%20Library/Detail/Memorandum%20of%20Unders tandings/MOU/2022_04_21_salary-sched.pdf Here a link for employee salaries: https://transparentcalifornia.com/salaries/santa-monica/ Here a link for tenant rights: https://www.santamonica.gov/tenants-rights Comment: The SMHA does not have a point of contact for Reasonable Accommodations. Response: Every SMHA staff acts as a point of contact for reasonable accommodation requests. HUD requires that if an applicant or participant indicates that an exception, change, or adjustment to a rule, policy, practice, or service is needed based upon a disability, the SMHA must treat the information 12.A.g Packet Pg. 2101 Attachment: Summary of Comments and Responses [Revision 3] (5601 : Housing Authority Annual Plan) Attachment G 13 as a request for a reasonable accommodation. This rule requires that every staff member acts as a point of contact to initiate the reasonable accommodation process. Comment: Add the informal review officer to the administrative plan and include their contact information. Add the informal review process/rules to the website and the ability to obtain a form and or submit a form to request an informal review. Also, add the information for a state hearing process. Response: Chapter 16 of the Administrative Plan establishes the informal review process and rules. The Administrative Plan is available year-round at https://www.santamonica.gov/housing-policy-and- reports. A specific form is not required to request an informal review, the applicant simply needs to make the request in writing and submit the request to the SMHA. The SMHA determines the appropriate staff member among the SMHA team to conduct the informal review, as long as the person is other than the one who made or approved the decision under review, or a subordinate of that person. Comment: The SMHA must stop penalizing clients for theoretical back rent when Housing Specialists are behind in processing recertifications or income changes, resulting in delays of landlord notifications to tenants of rent changes, which must precede actual rent changes by at least 30 days. Note that under California law, such notices must come from landlords; SMHA notices of rent changes do not constitute legal notification by landlords. Response: When the family payment (tenant portion of rent) is incorrectly set too low, the SMHA is providing more subsidy than allowed under the federal program. In cases where the error or omission is the fault of the PHA, the family and owner are not responsible for repayment of any previously paid excess amount. Going forward, the PHA must give the family and owner reasonable notice of the increase in the family payment and corresponding decrease in housing assistance payment. In cases which the error or omission is the fault of the family, the family must repay the PHA within a reasonable period of time. If the amount owed is not repaid, the PHA may terminate the family’s assistance. The PHA must process the change immediately and inform the landlord and family of the effective date of the change. Increases in the amount of family payment resulting from a family error or omission become effective retroactively to the time of the reporting error or omission. Comments: Offer or partner with other agencies to offer supportive services to all SMHA program participants who need them. The SMHA should offer or partner with other agencies to offer financial literacy programs to all SMHA clients. 12.A.g Packet Pg. 2102 Attachment: Summary of Comments and Responses [Revision 3] (5601 : Housing Authority Annual Plan) Attachment G 14 Response: The SMHA does maintain partnerships with supportive service organizations and continually looks for other opportunities to support the voucher population. Here is current list of supportive services, information, and resources available within Santa Monica: https://www.santamonica.gov/housing-resources https://www.santamonica.gov/housing-at-risk https://www.santamonica.gov/housing-seniors The People Concern (310) 450-4050 Disability Community Resource Center (DCRC) (310) 390-3611 Step Up on Second (310) 394-6889 (310) 576-1308 WISE Senior Services (310) 394-9871 St. Joseph Center (310) 396-6468 Legal Aid Foundation of Los Angeles (LAFLA) Phone: (310) 899-6200 Website: lafla.org City of Los Angeles Housing Resource Center http://www.housing.lacity.org/ Affordable Housing in Los Angeles County https://www.affordablehousing.com/los-angeles-ca/ If you need a place to stay in the case of an emergency: 211 Call 2-1-1 or visit 211LA.org. Operators will help you home in on resources based on your specific needs and situation. Comment: The SMHA ensure or partner with other agencies that are in no way financially affiliated with the City of Santa Monica to ensure program participants have automatic access to legal representation if they are facing eviction actions or Ellis Act eviction. Program participants have unfettered access to legal representation and resources for housing concerns with access to mediation to resolve landlord/tenant disputes. The new tenant protection laws automatically provide legal 12.A.g Packet Pg. 2103 Attachment: Summary of Comments and Responses [Revision 3] (5601 : Housing Authority Annual Plan) Attachment G 15 representation for tenants facing eviction but are only available to rent-controlled tenants. The City needs to create legal access for SMHA program participants outside LAFLA, the Santa Monica branch of which is funded by the City of Santa Monica, whose infrastructure SMHA is inextricable from. Response: The SMHA is funded to complete its core responsibilities according to HUD’s requirements and does not have the resources to independently fund legal services for tenants beyond those funded with City of Santa Monica resources. Comment: The SMHA arrange for and publicize the name and contact information of a representative from Public and Indian Housing to provide technical support to the RAB/CAB. Response: Here is the website link to the contact information for the HUD Los Angeles Office: https://www.hud.gov/states/california/offices Los Angeles Field Office United States Department of Housing & Urban Development (HUD) Los Angeles Field Office 300 North Los Angeles Street, Suite 4054 Los Angeles, CA 90012 Phone: (213) 894-8000 Email: Customer Service Fax: (213) 894-8107 TTY: (213) 894-8133 or Dial 7-1-1 (Not available in all areas.) Comments: The SMHA furnish every client with the complete data and calculations used to determine their share of rent at every re/evaluation. This must include the HUD form used to calculate these rent shares. The SMHA must educate clients about the existence, role, and details of medical deductions in determining income and subsequently share of the rent, including specific information about what counts as medical deductions and information on how and when to submit deductions. The SMHA should also furnish all clients who submit medical deductions with itemized results of those claims including approval or denial and the reason for any denial. Response: The SMHA agrees and will ensure transparency for the participants in rent calculations, expenses, allowances, deductions, and the tenant’s share of the rent. 12.A.g Packet Pg. 2104 Attachment: Summary of Comments and Responses [Revision 3] (5601 : Housing Authority Annual Plan) Attachment G 16 Comments: Adopt a tenant/owner portal that accommodates the needs and disabilities of voucher participants. The portal should be user-friendly and allow tenants/owners to submit all documents electronically and time stamp them with a confirmation email after submission. The portal should also serve as a way to communicate with Housing Specialists and be capable of preserving client emails for up to 10 years. The SMHA overhaul voucher waitlists to create transparency for applicants, including access to information about their position in the selection process and notification when they are approved for any voucher program. Due to a total lack of transparency in AFF/Subsidized housing; etc. (preferential treatment who gets housing.) The SMHA needs to make available a comprehensive list of all shelters, project-based housing, deed-restricted/tax credit, and/or affordable housing units in the city. The City and County of San Diego publish such a list for public access. Santa Monica can easily publish a list like San Diego (see link to San Diego Housing List: https://www.sdhc.org/housing-opportunities/affordable- rentals/). Make the program more accessible for persons with disabilities. Response: The SMHA continuously seeks to improve communications with, and information to, program participants. The SMHA will review the current format of the website to explore options to improve accessibility, communication, transparency, and customer service delivery. Comment: There needs to be a survey of all voucher holders to assess the experience of the end user of the program, which is the tenant. Response: The SMHA will explore options to access the voucher holders’ experience to improve accessibility, communication, transparency, and customer service delivery. Comment: Would like plans written in layman’s terms. Response: The Annual Plan is presented on a form required by HUD. SMHA will strive to publish a summary sheet of the changes in easier-to-understand terms. Other Comment: The SMHA should work with the city of Santa Monica to ensure Housing Commission meetings are live-streamed and made subsequently available on YouTube, with hybrid participation. 12.A.g Packet Pg. 2105 Attachment: Summary of Comments and Responses [Revision 3] (5601 : Housing Authority Annual Plan) Attachment G 17 Response: The Santa Monica Housing Commission is a City advisory body created by the Santa Monica City Council and must adhere to the rules and procedures for advisory bodies adopted by Council. Comment: The SMHA must overhaul and create transparent, measurable, and regularly tested parameters for Below Market Housing (BMH) list notices and digital and physical correspondence with clients to ensure all clients receive equal BMH opportunities and all SMHA communications. Response: The BMH waitlist is a City program which matches waitlist applicants to affordable housing opportunities throughout the City and is not administered by the SMHA, which administers rental housing voucher programs. Waitlist applicants are contacted as opportunities arise which match the income and household size requirements of the housing opportunity, and the system is based upon diligent and timely responses to opportunity notifications. Comment: The SMHA must address ongoing habitability issues that program participants face, including mold, cockroaches, and bed bugs. The SMHA must ensure SMHA inspectors have sufficient resources to properly address habitability issues with landlords who violate such requirements, including issuing warning letters to landlords and facilitating abatements of rent when landlords fail to cure violations within a specified time frame. SMHA must ensure clients are knowledgeable about habitability information from sources including California Health and Safety Code and Code Enforcement, by widely disseminating this information in the SMHA office, orientation packets, yearly recertification packets, on the SMHA website, and posted on the information boards at City Hall and/or in the SMHA office with copies available for program participants to take. Response: HUD requires that the SMHA enforce the federally-established Housing Quality Standards (HQS), which all housing must meet in conjunction with voucher assistance. All housing must pass an HQS inspection prior to the initial occupancy and then annually or biennially. Additionally, Chapter 8 of the Administrative Plan is dedicated to HQS – see pages 8-1 to 8-26, providing details on the physical standards that housing must meet, the inspection process, obligations of owners and tenants, and the SMHA’s policies for program enforcement. 12.A.g Packet Pg. 2106 Attachment: Summary of Comments and Responses [Revision 3] (5601 : Housing Authority Annual Plan) Attachment H 12.A.h Packet Pg. 2107 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) 12.A.h Packet Pg. 2108 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) 12.A.h Packet Pg. 2109 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) 12.A.h Packet Pg. 2110 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Other Office Locations: Ron Olson Justice Center, 1550 W. 8th Street, Los Angeles, CA 90017 East Los Angeles, 5301 Whittier Blvd., 4th Floor, Los Angeles, CA 90022 Long Beach, 601 Pacific Ave., Long Beach, CA 90802 South Los Angeles, 7000 S. Broadway, Los Angeles, CA 90003 Legal Aid Foundation of Los Angeles 1640 5th St., Suite 124 Santa Monica, CA 90401 SUBMITTED VIA EMAIL City of Santa Monica Housing Office 1685 Main Street, Mail Stop #19 Santa Monica, CA 90401 smhousing@santamonica.gov March 20, 2023 Re: Comments to FY2023-2024 Administrative Plan To Whom it May Concern: Legal Aid Foundation of Los Angeles (“LAFLA”) appreciates this opportunity to comment the Santa Monica Housing Authority’s (“SMHA”) draft FY2023-2024 Administrative Plan (“Administrative Plan”). LAFLA is the largest provider of free legal services to low-income residents of Santa Monica. Our comments are based on our experiences representing countless participants in the SMHA’s Section 8 Housing Choice Voucher program. We welcome any questions you may have about the issues outlined in this letter. I. Annual Rent Increases Initiated by the SMHA It is currently SMHA policy for the SMHA to approve an increase in the contract rent for an HCV-assisted unit as a part of a tenant’s annual recertification. See Admin. Plan § 8-III.B. This policy is unchanged in the draft Administrative Plan. Specifically, at each Section 8 participant’s annual recertification, the SMHA initiates and approves an increase of the contract rent equal to the maximum “general adjustment” allowed under the Santa Monica Rent Control Charter Amendment (“SMRCCA”). Though not explicitly stated in the Administrative Plan, we understand from experience that the SMHA automatically initiates and approves these increases even when landlords do not request or provide any notice of rent increase to their tenants or the SMHA. This policy is inconsistent with Section 8 regulations, portions of the SMHA Administrative Plan, state law, and Santa Monica Rent Control Board regulations. Under Section 8 regulations and the Administrative Plan, a landlord and tenant must agree to new rent amount before the SMHA can determine whether the new rent amount is “reasonable,” and if so, approve the rent. See 24 CFR § 982.506 (“The owner and the family negotiate the rent to owner.”); 24 § 982.507 (rent reasonableness regulation); see also Admin. Plan § 8-III.B. The SMHA must help the owner and tenant negotiate a new rent only if the tenant requests this assistance. 24 CFR § 982.506. The Administrative Plan requires such annual “rent increase 12.A.h Packet Pg. 2111 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) 2 requests shall be timed with a tenant’s annual re-examination.” Admin. Plan § 8-III.B (emphasis added). However, the current draft of the Administrative Plan does not explain how a landlord should go about making such a request. In practice, many landlords and tenants in California do not formally re-negotiate the rent when an initial lease term expires because this is not required under state law. Instead, most landlords simply serve a notice of change in terms of tenancy to the tenant with a notice of the increased rent amount, and if the tenant chooses to stay and pay the new rent, this is construed as an agreement to the increased rent. See Civ. Code § 827(b), (c). Thus, in order to increase the rent for any tenant in California, a landlord must, at a minimum, serve a notice of change in terms of tenancy to the tenant at least 30-days in advance of the proposed rent increase. Id. For tenancies subject to the SMRCCA, Santa Monica Rent Control Board Regulation 3035(c) reiterates that a landlord is prohibited from collecting a “general adjustment” (an annual rent increase) “unless the landlord has provided the affected tenant with written notice as required by California Civil Code Section 827.” The notice to rent controlled tenants must further include a certification signed by the landlord that the unit “is not subject t o any uncorrected citation of notices of violation of any state or local housing, health, or safety laws issued by any government official or agency.” Id. Critically, “[i]f the landlord fails to comply with this subsection, the tenant may refuse to pay the improperly-noticed rent increase, and may raise the landlord’s noncompliance as an affirmative defense in any resulting unlawful detainer action.” Id. Current SMHA practice effectively nullifies these requirements of federal, state, and local law. Specifically, the SMHA automatically increases the contract rent to the owner at the tenant’s annual recertification, without the landlord making a “request” for such rent increase as required by Administrative Plan § 8-III.B, and without the landlord and tenant ever having “negotiated” this rent increase as required by 24 CFR § 982.506. Under state law, the “negotiation” between landlord and tenant must, at a minimum, involve the landlord serving a 30-day notice of change in terms of tenancy stating the new rent amount. Civ. Code § 827(b). And under Santa Monica Rent Control Board Regulation 3035(c), the notice of change in terms in tenancy must additionally include a certification, signed by the landlord, that the unit is not subject to any violations of housing, health, or safety laws. Under SMHA practice, the landlord gets the rent increase even when they never served any notice at all. Indeed, in dozens of cases, our clients have received HAP Contract Amendment Notices from the SMHA after their annual recertification which state that the contract rent for the unit is being increased, but the tenant was never served with any notice of rent increase from their landlord. The HAP Contract Amendment Notices themselves do not satisfy the requirements of Civil Code § 827 because that law requires that the landlord give the written notice of rent increase. Civ. Code § 827(b). The HAP Contract Amendment Notices also do not comply with Rent Control Regulation 3035(c) because they do not include the required certification from the landlord. The law is clear that tenants are not obligated to pay any rent increase for which they have not received a proper, compliant notice from the landlord. However, tenants are placed in a very difficult position when they receive a HAP Contract Amendment Notice from the SMHA which purports to notify them of a rent increase but is not a valid notice under state or local law. If they 12.A.h Packet Pg. 2112 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) 3 refuse to pay the rent increase the landlord is expecting, they subject themselves to an unlawful detainer case and, very possibly, loss of housing and their voucher. Most, if not all, will feel forced to pay the unlawful rent increase to avoid this risk, even if this means foregoing paying for other basic necessities. In some cases, the increase in the contract rent will not directly or immediately impact the tenant because the contract rent will still be below the payment standard for the tenant’s voucher. However, more and more often, as rents rise and the payment standards remain stagnant, we are seeing tenants whose contract rents do exceed their payment standards. These tenants must pay 30% of their income toward the rent, plus every dollar of rent that exceeds the payment standard. In just a few years, this can result in a tenant paying well over 40% or 50% of their income toward rent and becoming severely rent burdened, a problem the voucher program was created, in part, to prevent. In many of these cases, the contract rents might have stayed below the payment standard, or at least not exceeded the payment standard by such a large degree, if the SMHA had not annually increased the contract rent on its own initiative. In summary, because it has been SMHA practice to automatically increase the contract rent for a while, shifting from this practice may be confusing for both landlords and tenants. We believe these impacts can be mitigated with a few different strategies. First, we also suggest that the SMHA provide ample written notice to both landlords and tenants that the SMHA will not increase contract rents at tenants’ annual certification unless a landlord affirmatively requests a rent increase. Second, we recommend that the SMHA develop a form for landlords to serve to tenants which informs the tenants: (a) of the requested new contract rent; (b) that thi s new amount is a request which the SMHA still has to approve or deny; (c) that the tenant will not be responsible for the entire amount of the requested new rent; and (d) that the SMHA will notify the tenant of her share of rent at least 30 days prior to any increase taking effect. We are concerned that if a landlord simply serves a notice to a tenant of the requested new contract rent with no further explanation, the tenant will be alarmed and think she is responsible for the entire amount. The SMHA may also want to include the certification language required by Rent Control Regulation 3035(c) on this form. Third, we recommend that the SMHA require that landlords provide tenants and the SMHA the above written notice at least 60 days before the tenant’s annual recertification or lease renewal would take place. This is so the SMHA will have enough time to perform the rent reasonableness analysis on the new proposed rent, and to notify the landlord and tenant of the tenant’s share of the new rent well in advance of the rent increase. Fourth, we recommend that the SMHA describe these changes to policy and practice clearly in the Administrative Plan, Section 8-III.B. We understand that re-aligning this SMHA practice with the Section 8 regulations, Administrative Plan, and state and local law will take some work. We nevertheless believe this 12.A.h Packet Pg. 2113 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) 4 change is necessary, and remain available to assist SMHA participants in understanding and navigating these changes. Thank you for your time and consideration of these comments. Please feel free to contact me at rganschow@lafla.org if you have any questions. Sincerely, Romy C. Ganschow Attorney 12.A.h Packet Pg. 2114 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) RAB Recommendations for SMHA 2023-24 Administrative and Annual Plans Submitted electronically on March 20,2023 by Theresa Marasco on behalf of Courtney Lauretano,RAB representative unanimously elected by RAB members at a March 19, 2023 meeting,on behalf of the following SMHA clients: Courtney Lauretano Hajar Muqtasid St Claire Stephanie S. Danielle Charney Sheila Finley Olga Zurawska Theresa Marasco Michelle Gray Anonymous 1.SMHA Board refuse to approve the Administrative and Annual Plans unless and until all RAB members can meet,review discretionary documents sections,discuss,and submit collective feedback to SMHA. 2.SMHA immediately schedule the six-month-overdue meeting of the RAB/CAB that was ordered to be scheduled “with haste”by a unanimous City Council/SMHA Board vote on September 13,2022,with parameters and support as outlined in the Housing Commission CAB recommendations presented on the same date. 3.That the SMHA adopt the recommendations of the Housing Commission regarding the RAB/CAB that were presented and submitted to the Santa Monica Housing Authority Board on September 13,2022,by Housing Commission Chair Michelle Gray. 4.The SMHA supports the annual election of two RAB/CAB representatives to the SMHA Board by the members of the RAB/CAB. 5.SMHA must immediately convert the payment standard basis to Small Area FMR and raise payment standards according to the recent Housing Commission recommendations to City Council/SMHA Board. 6.The SMHA revive the Family Self Sufficiency Program (FSS),and seek out other Self Sufficiency Programs available through HUD,such as the “Move to Work”(MTW) demonstration program,and other federal and state programs,that lead to pathways to self-sufficiency and greater economic equality.That the SMHA actively seeks and 12.A.h Packet Pg. 2115 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) applies for the Notice of Funding Applications to ensure that the self-sufficiency programs are provided maximum financial support.That information about the self-sufficiency programs be widely disseminated on a regular basis to program participants,encouraging program participants to participate in the various programs such as the FSS,MTW,and Earned Income Disallowance (EID)program,providing clear information about eligibility and how to access the programs.The information about the self-sufficiency programs should be posted on the SMHA website,on the walls at the SMHA office,flyers made for clients to take Note that SMHA ended the FSS program in 2019 stating that there were not enough program participants interested in the program because most of the Housing Authority program participants were either “disabled or elderly”,thereby discriminating against elderly and disabled program participants.Furthermore,there have been more HCV clients added to the program since 2019,so there are a greater number of program participants now than there were in 2019,and ALL eligible program participants could benefit from the FSS program.Finally,the SMHA never advertised the FSS program so the majority of the clients/program participants never even knew the program existed or how to utilize the program to accrue escrow funds. 7.Santa Monica Housing Authority (SMHA)create and actively seek funding to support the Housing Choice Voucher (HCV)homeownership program which is supported by HUD to create a pathway for HCV clients to purchase a home and utilize vouchers to make monthly mortgage payments.Note that any homeownership program created for SMHA HCV participants can be used to purchase homes outside of the City of Santa Monica. 8.SMHA administratively facilitate yearly or biannual surveys created and conducted by the RAB/CAB by a)both emailing and mailing surveys and instructions to all SMHA clients in English and Spanish with instructions to request translations into other languages written in all known client languages,and b)for the results of the surveys to be compiled and provided to the RAB/CAB for further use. 9.The SMHA offer or partner with other agencies to offer financial literacy programs to all SMHA clients. 10.The SMHA allow HCV clients to cohabitate using their vouchers such as renting a room in a house or having roommates who are or are not HCV clients to share living space.Note that the City of Los Angeles and other jurisdictions permit this. 12.A.h Packet Pg. 2116 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) 11.The SMHA create and fill the invaluable position of Landlord Liasion/Housing Navigator,successfully utilized in jurisdictions nationwide,to help advocate for clients with prospective and current landlords and help prospective and current landlords navigate SMHA bureaucracy in a smooth and timely fashion.This position is necessary to facilitate voucher utilization and prevent source of income discrimination that while illegal,is rampant in Santa Monica. 12.Create or advocate for a public relations campaign to destigmatize SMHA clients and housing voucher holders as a whole and raise awareness of the benefits of HUD programs to tenants,landlords,and larger communities. 13.Ensure the Annual and Administrative Plans include language that states program participants are to be treated with respect and dignity by staff and landlords at all times and details recourse for clients when that policy is violated. 14.Offer or partner with other agencies to offer supportive services to all SMHA program participants who need them. 15.The SMHA seek the participation and input of the RAB/CAB when hiring a new Landlord Liasion/Housing Navigator,dedicated ADA/Section 504 Coordinator/Disability Liaison,and Veteran Liaison. 16.SMHA work with the city of Santa Monica to ensure Housing Commission meetings are live streamed and made subsequently available on YouTube,with hybrid participation,as SMHA explicitly relies on Housing Commission meetings to offer opportunities for clients to provide SMHA related feedback. 17.SMHA needs to designate or hire a Veteran Liaison to assist clients who have served in the military. 18.SMHA must create and fill a dedicated position of ADA/Section 504 Coordinator as strongly recommended by the 2020 Assessment of Fair Housing report with the City of Santa Monica Housing and Economic Development Department and the Lawyers’ Committee for Civil Rights Under Law and published on April 1,2020 and approved by City Council on April 28,2020 (https://www.santamonica.gov/housing-policy-and-reports). 19.SMHA must overhaul and create transparent,measurable,and regularly tested parameters for Below Market Housing list notices and SMHA digital and physical correspondence with clients to ensure all clients receive equal BMH opportunities and 12.A.h Packet Pg. 2117 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) all SMHA communications.Note there are current complaints of unequal BMH listing notices to seniors and regular and ongoing omission of numerous clients from important SMHA correspondence. 20.SMHA ensure or partner with other agencies that are in no way financially affiliated with the City of Santa Monica to ensure program participants have automatic access to legal representation if they are facing eviction actions or Ellis Act eviction.Program participants have unfettered access to legal representation and resources for housing concerns with access to mediation to resolve landlord/tenant disputes.The new tenant protection laws automatically provide legal representation for tenants facing eviction but are only available to rent-controlled tenants.The City needs to create legal access for SMHA program participants outside LAFLA,the Santa Monica branch of which is funded by the City of Santa Monica,whose infrastructure SMHA is inextricable from. 21.SMHA arrange for and publicize the name and contact information of a representative from Public and Indian Housing to provide technical support to the RAB/CAB. 22.SMHA add to the Administrative Plan and website a flow chart with names,titles, contact information,and salary funding source (federal or city)of every single SMHA employee and manager,including city employees charged with SMHA interaction and/or oversight.This must include each employee’s direct report and names and contact information for recourse when clients encounter problems with SMHA at any level. 23.SMHA must furnish every client with the complete data and calculations used to determine their share of rent at every re/evaluation.This must include the HUD form used to calculate these rent shares. 24.SMHA must educate clients about the existence,role,and details of medical deductions in determining income and subsequently share of rent,including specific information about what counts as medical deductions and information on how and when to submit deductions.SMHA must also furnish all clients who submit medical deductions with itemized results of those claims including approval or denial and the reason for any denial. 25.SMHA must address ongoing habitability issues that program participants face, including mold,cockroaches,and bed bugs.SMHA must ensure SMHA inspectors have sufficient resources to properly address habitability issues with landlords who violate such requirements,including issuing warning letters to landlords and facilitating abatements of rent when landlords fail to cure violations within a specified time frame. 12.A.h Packet Pg. 2118 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) SMHA must ensure clients are knowledgeable about habitability information from sources including California Health and Safety Code and Code Enforcement,by widely disseminating this information in the SMHA office,orientation packets,yearly recertification packets,on the SMHA website,and posted on the information boards at City Hall and/or in the SMHA office with copies available for program participants to take. 26.SMHA must overhaul voucher waitlists to create transparency for applicants, including access to information about their position in the selection process and notification when they are approved for any voucher program. 27.SMHA must stop penalizing clients for theoretical back rent when Housing Specialists are behind in processing recertifications or income changes,resulting in delays of landlord notifications to tenants of rent changes,which must precede actual rent changes by at least 30 days.Note that under California law,such notices must come from landlords;SMHA notices of rent changes do not constitute legal notification by landlords. 12.A.h Packet Pg. 2119 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) Theresa Marasco,SMHA RAB Member theresa.marasco@gmail.com March 20,2023 Santa Monica Housing Authority Patrick Komesu,Sr.Administrative Analyst-Housing Authority City of Santa Monica Housing Office 1685 Main St.,Mail Stop #19 Santa Monica,CA 90401 Sent via email to:Patrick.Komesu@santamonica.gov;smhousing@santamonica.gov Dear Patrick Komesu and Santa Monica Housing Authority Staff: The following are my public comments and recommendations for discretionary changes to be made to the 2023-24 SMHA Annual and Administrative Plans: 1.That the Santa Monica Housing Authority Board does not approve the Annual and Administrative Plans until the first RAB/CAB meeting is held as directed by the Santa Monica Housing Authority Board on September 13,2022. 2.SMHA immediately schedule the six-month-overdue meeting of the RAB/CAB that was ordered to be scheduled “with haste”by a unanimous City Council/SMHA Board vote on September 13,2022,with parameters and support as outlined in the Housing Commission CAB recommendations presented on the same date. 3.That the SMHA adopt the recommendations of the Housing Commission regarding the RAB/CAB that were presented and submitted to the Santa Monica Housing Authority Board on September 13,2022,by Housing Commission Chair Michelle Gray. 4.The SMHA supports the annual election of two RAB/CAB representatives to the SMHA Board by the members of the RAB/CAB. 5.SMHA must immediately convert the payment standard basis to Small Area FMR and raise payment standards according to the recent Housing Commission recommendations to City Council/SMHA Board. 6.The Santa Monica Housing Authority (SMHA)create a Homeownership Program for all eligible voucher programs and seek all funding sources to support the program. 12.A.h Packet Pg. 2120 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) 7.Revitalize and seek funding for the family Self-Sufficiency Program,as well as other self-sufficiency programs,and amend the annual plan to reflect this.Any and all information for self-sufficiency or other programs should be made available in the office, via flyers,and emailed/mailed to participants,and widely disseminated through orientation and recertification packets as well as posted on the SMHA website. 8.That the SMHA Apply for the Moving to Work (MTW)demonstration,which would grant the housing authority more flexibility in the execution of its programs and funding. 9.Hire an ADA coordinator for the SMHA per the recommendations stated in the Fair Assessment of Fair Housing completed in April 2020. 10.Add the informal review officer to the administrative plan and include their contact information.Add the informal review process/rules to the website and the ability to obtain a form and or submit a form to request an informal review.Also,add the information for a state hearing process. 11.Adopt a tenant/owner portal that accommodates the needs and disabilities of voucher participants.The portal should be user-friendly and allow tenants/owners to submit all documents electronically and time stamp them with a confirmation email after submission.The portal should also serve as a way to communicate with Housing Specialists and be capable of preserving client emails for up to 10 years. 12.Rent increases should only be initiated by the landlord and policy should reflect it. 13.Due to a total lack of transparency in AFF/Subsidized housing;etc.(preferential treatment who gets housing.)The SMHA needs to make available a comprehensive list of all shelters,project based housing,deed-restricted/tax credit,and/or affordable housing units in the city.The City and County of San Diego publish such a list for public access.Santa Monica can easily publish a list like San Diego (see link to San Diego Housing List:https://www.sdhc.org/housing-opportunities/affordable-rentals/). 12.A.h Packet Pg. 2121 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) 12.A.h Packet Pg. 2122 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) 12.A.h Packet Pg. 2123 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) 12.A.h Packet Pg. 2124 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) 12.A.h Packet Pg. 2125 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) General Comment: Hi Patrick, Donna Brown is not a rep. She has never once participated in any SMHAB meeting. It is I fair towards HCV voucher holders to pretend that Donna is a rep. Neither Donna nor Elizabeth respond to emails sent to their city addresses. Therefore they are not really reps. Elizabeth has stated on the dais that she has no idea what she is supposed to do as a rep. Neither Elizabeth nor Donna have been appointed with any input from the program participants. It’s all a charade. Additionally, CoC voucher holders do not have ANY representation on the legislative body which is SMHAB, which is in violation of the federal law. The City never has made an effort to appoint a CoC representative to the SMHAB but instead, inexplicably, asked HUD for a waiver of the requirement. As a CoC voucher holder I have been deprived of the representation I’m supposed to have on SMHAB. Please rectify this ASAP! Thank you. Olga 12.A.h Packet Pg. 2126 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) From:OZ To:David White; SmHousing Mailbox; Patrick Komesu Cc:Lana Negrete; Phil Brock; Christine Parra; Oscar de la Torre; Paolo Velasco Subject: OBJECT to consideration and approval of Admin Plan by SMHA Board in its current composition (public input to SMHA Admin Plan) Date:Monday, March 20, 2023 11:55:33 PM EXTERNAL -->There is currently no Resident Advisory Board in Santa Monica, therefore there has not been a RAB process as required by federal law for the Admin Plan to be approved by SMHA Board. Additionally, there is no unhoused or formerly unhoused tenant representative on SMHAB as is required by federal law. The current composition of SMHAB is unlawful, therefore the Board has no authority to discuss or approve the Admin Plan.<-- To date SMHA Board has not established the mandatory Resident Advisory Board or specified the form of the RAB, nor has it directed the Executive Director of SMHA to establish a RAB on behalf of SMHAB or to determine the form of the Santa Monica RAB as he wishes. There has been no public process pertaining to the establishment of a RAB in any particular form, not has there been any public process pertaining to the establishment of any seats for SMHA program participants on SMHAB, or the process of electing or appointing to such seats. The City Attorney for the City of Santa Monica, who reportedly also represents and advises the SMHAB, has not been involved in the establishment of a RAB or in the establishment of a process that would lead to the appointments of RAB reps to the SMHAB for any specific length or number of terms. There is no mention of any RAB, or RAB representatives participating on SMAHAB in any ordinance, resolution, motion with direction for staff to establish a RAB in any particular form, and there is no mention in the SMHAB bylaws of the RAB or RAB reps to serve on SMHAB. If there exists any SMHAB resolution or ordinance establishing a Santa Monica RAB, or if there exists any mention of a RAB or RAB reps in the SMHAB bylaws, please provide them to me prior to the discussion of the Admin Plan in April 2023 by SMHAB. Claims by City of Santa Monica Housing Program Manager James Kemper that a RAB exists in Santa Monica because he established a RAB through his unilateral action (while having no direction from SMHAB, or authority to do so, and while 12.A.h Packet Pg. 2127 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) bypassing the public process), are meritless, and very concerning. As concerning are James Kemper's statements that he as a City of Santa Monica staffer took the liberty to decide how the RAB reps would be applying for the seats on SMHAB, how they would be appointed and by whom, for what length of terms, and what the term limits there were for them, if any. It is with good reason. There is no other seat within the City, whether appointed or elected, that is established by a City staffer who also unilaterally decides on the application and appointment or election process for that seat, and who unilaterally decides on the length of the term of service or the term limits for that seat, if any. The fact that both the SMHAB and the public (including the voucher holders), were excluded from Mr. Kemper's unilateral decisions are extremely concerning in that they appear to arise from patriarchal, undemocratic attitudes towards voucher holders as contrasted with other Santa Monica residents. There is no place for such attitudes in a progressive city like Santa Monica. James Kemper has been instrumental in preventing the voucher holders from being able to meet and deliberate regarding their input to the Administrative Plan. James Kemper claims that the fact that (according to him) each voucher holder received a notice of the opportunity to individually submit comments to SMHA regarding the Administrative Plan is equivalent to the voucher holders being able to meet and collectively deliberate and come up with input. This is an idea as absurd as one where Council Members do not need to meet but rather they can individually, without any deliberation or even contact with one another, submit their individual thoughts to the City Hall where staffers can post those individual opinions for the public to read in lieu of the the Council holding public meetings and deliberating together… Why does the Santa Monica City Council meet instead of its members individually submitting their individual thoughts on agenda items to the City Hall? Why does the SMHA Board meet? Why does the School Board meet? Why do nonprofit boards meet? Why does any city board, commission, task force or committee meet? Why does the State Assembly meet? Why does the US Congress meet? Why are there HOA board meetings? Why are there neighborhood group board meetings?... If there is no RAB in Santa Monica, and the RAB is prevented from holding meetings, then it is not possible to have the Admin Plan go through the federally mandated RAB process. If there is no RAB then there also cannot be RAB representatives on the SMHAB who could discuss and vote on the proposed amendments to the Admin Plan with the rest 12.A.h Packet Pg. 2128 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) of the SMHA governing body. Per the federal regulations, the governing body of the PHA (here it is the SMHA Board) "must" include at least one RAB representative. Therefore the SMHAB in its current composition is not a legitimate governing body of SMHA for the purpose of discussing and approving the Administrative Plan. It is quite shocking that the city of Santa Monica has managed to evade the federal regulations pertaining to the RAB and the requirements for RAB reps on the governing body for DECADES, and is continuing to try to disenfranchise voucher holders while posturing as a progressive, diverse and inclusive city. Additionally, SMHAB is, and has been for decades in violation of the federal requirement to include at least one representative of the Continuum of Care program (a currently or formerly formerly unhoused participant in the CoC program). 24 CFR 578.75(g)(1). (g) Participation of homeless individuals. (1) Each recipient and subrecipient must provide for the participation of not less than one homeless individual or formerly homeless individual on the board of directors or other equivalent policymaking entity of the recipient or subrecipient, to the extent that such entity considers and makes policies and decisions regarding any project, supportive services, or assistance provided under this part. This requirement is waived if a recipient or subrecipient is unable to meet such requirement and obtains HUD approval for a plan to otherwise consult with homeless or formerly homeless persons when considering and making policies and decisions. James Kemper failed to make any attempt to survey CoC program participants and ask if they were willing to serve on SMHA Board. Instead, without engaging in any public process or receiving direction from SMHAB, James Kemper unilaterally made the decision to ask HUD behind everyone's back for a waiver of the requirement to have an unhoused or formerly unhoused individual participate on the policymaking body of SMHA, i.e. SMHA Board. This took place amid CoC program participants’ enquiries with James Kemper about the opportunity to serve on SMHAB or have a representative on SMHAB as is required by the federal law. Inexplicably, James Kemper obtained a waiver from HUD even though the federal regulation states that it can only be applied for when a PHA is "unable" to fulfill this 12.A.h Packet Pg. 2129 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) requirement. Here SMHA is perfectly able to fulfill this requirement, but it is unwilling to fulfill it. What is preventing SMHA from being able to fulfill the requirement? SMHA has never asked currently or formerly unhoused voucher holders if any of them were interested in serving on SMHAB. Instead, SMHA is fighting hard to prevent unhoused or formerly unhoused program participants from having a voice on the governing body of SMHA. Meanwhile, the SMHA Board is so undereducated that they are not even aware that there is a requirement that a CoC representative sits with them on the dais... Despite eventually acknowledging that the RAB must have at least one rep on SMHAB, James Kemper still claims that in the case of CoC representatives, it is "better" for them not to participate on the policymaking body of SMHA (as is required by the federal regulation) but sit on the Housing Commission (merely an advisory body) instead... Again, to be very clear: the Housing Commission is an advisory body, not the board of directors or policymaking body of SMHA. Serving on the Housing Commission is not comparable to serving on SMHA Board (governing body) just as being on an advisory city commission or board is not comparable to serving on the City Council (another governing body). It appears that James Kemper is adamant about not allowing currently or formerly unhoused tenant representatives to have a vote on the policymaking body, but only on an advisory body instead... Such an attitude by James Kemper appears to be discriminatory specifically towards unhoused or formerly unhoused program participants and aimed at disenfranchising them. James Kemper does not have a problem seeing other program participants serve on the SMHAB, even though they also already have representation on the Housing Commission. James Kemper's apparent mission to disenfranchise unhoused or formerly unhoused program participants is unacceptable in a city that claims it values equity, diversity and inclusion, and particularly in a city that recently declared a state of emergency in regard to homelessness. Does SMHAB condone such attitude and actions by James Kemper? Did SMHAB ever direct James Kemper to apply for a waiver that prevents unhoused or formerly unhoused program participants from having a voice on the policymaking body of SMHA??? Why is the progressive City of Santa Monica not willing to follow the federal law and have an unhoused or formerly unhoused SMHA program participant sit on the governing body of SMHA Board??? 12.A.h Packet Pg. 2130 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) The progressive City of Santa Monica claims to care about homelessness but goes to great lengths to take away the lawful right of unhoused or formerly unhoused tenants to have a voice on the SMHA Board, while it admits it wouldn't mind having other tenants represented on SMHAB??? This warrants an investigation by the City's Equity and Inclusion Manager, Paolo Velasco, and likely an HR complaint against Mr. Kemper and his loose approach to the law, and usurping the powers an authority that he does not posses as a City of Santa Monica staffer. The SMHAB may not approve the Admin plan before: 1) it properly establishes a RAB or a Client Advisory Board (CAB) through a public process and a resolution or ordinance and an amendment to the SMHAB bylaws and, 2) it properly codifies through a public process the manner of selection, appointment and terms of service for the tenant representatives (HCV and CoC) that must participate on the SMHAB and, 3) a RAB or CAB has been able to meet to discuss and submit their input to the Administrative Plan and, 4) tenant representatives have been appointed or elected to SMHAB in accordance with the federal law and through a transparent public process. Regards, Olga Zurawska ------------------- Pertinent regulations that I am aware of at this time: 24 CFR § 903.13 What is a Resident Advisory Board and what is its role in development of the Annual Plan? (a) A Resident Advisory Board refers to a board or boards, as provided in paragraph (b) of this section, whose membership consists of individuals who adequately reflect and represent the residents assisted by the PHA. (1) The role of the Resident Advisory Board (or Resident Advisory Boards) is to assist and make recommendations regarding the development of the PHA plan, and any significant amendment or modification to the PHA plan. (2) The PHA shall allocate reasonable resources to assure the effective functioning of Resident Advisory Boards. Reasonable resources for the Resident Advisory Boards must provide reasonable means for them to become informed on programs covered by the PHA 12.A.h Packet Pg. 2131 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) Plan, to communicate in writing and by telephone with assisted families and hold meetings with those families, and to access information regarding covered programs on the internet, taking into account the size and resources of the PHA. (b) Each PHA must establish one or more Resident Advisory Boards, as provided in paragraph (b) of this section. (1) If a jurisdiction-wide resident council exists that complies with the tenant participation regulations in part 964 of this title, the PHA shall appoint the jurisdiction-wide resident council or the council's representatives as the Resident Advisory Board. If the PHA makes such appointment, the members of the jurisdiction-wide resident council or the council's representatives shall be added or another Resident Advisory Board formed to provide for reasonable representation of families receiving tenant-based assistance where such representation is required under paragraph (b)(2) of this section. (2) If a jurisdiction-wide resident council does not exist but resident councils exist that comply with the tenant participation regulations, the PHA shall appoint such resident councils or their representatives to serve on one or more Resident Advisory Boards. If the PHA makes such appointment, the PHA may require that the resident councils choose a limited number of representatives. (3) Where the PHA has a tenant-based assistance program of significant size (where tenant-based assistance is 20% or more of assisted households), the PHA shall assure that the Resident Advisory Board (or Boards) has reasonable representation of families receiving tenant-based assistance and that a reasonable process is undertaken to choose this representation. (4) Where or to the extent that resident councils that comply with the tenant participation regulations do not exist, the PHA shall appoint Resident Advisory Boards or Board members as needed to adequately reflect and represent the interests of residents of such developments; provided that the PHA shall provide reasonable notice to such residents and urge that they form resident councils with the tenant participation regulations. (c) The PHA must consider the recommendations of the Resident Advisory Board or Boards in preparing the final Annual Plan, and any significant amendment or modification to the Annual Plan, as provided in § 903.21 of this title. (1) In submitting the final plan to HUD for approval, or any significant amendment or modification to the plan to HUD for approval, the PHA must include a copy of the recommendations made by the Resident Advisory Board or Boards and a description of the manner in which the PHA addressed these recommendations. (2) Notwithstanding the 75-day limitation on HUD review, in response to a written request from a Resident Advisory Board claiming that the PHA failed to provide adequate notice and opportunity for comment, HUD may make a finding of good cause during the required time period and require the PHA to remedy the failure before final approval of the plan. 24 CFR § 964.410 Additional definitions. The following additional definitions apply to this subpart only: Directly assisted. Directly assisted means a public housing resident or a recipient of housing assistance in the tenant-based section 8 program. Direct assistance does not include any State financed housing assistance or Section 8 project-based assistance. Eligible resident. An eligible resident is a person: 12.A.h Packet Pg. 2132 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) (1) Who is directly assisted by a public housing agency; (2) Whose name appears on the lease; and (3) Is eighteen years of age or older. Governing board. Governing board means the board of directors or similar governing body of a public housing agency. Resident board member. A resident board member is a member of the governing board who is directly assisted by that public housing agency. 24 CFR § 964.415 Resident board members. (a) General. Except as provided in §§ 964.405(b) and 964.425, the membership of the governing board of each public housing agency must contain not less than one eligible resident board member. (b) Resident board member no longer directly assisted. (1) A resident board member who ceases to be directly assisted by the public housing agency is no longer an “eligible resident” as defined in § 964.410. (2) Such a board member may be removed from the PHA board for that cause, where such action is permitted under State or local law. (3) Alternatively, the board member may be allowed to complete his/her current term as a member of the governing board. However, the board member may not be re-appointed (or re-elected) to the governing board for purposes of serving as the statutorily required resident board member. (c) Minimum qualifications for board membership. Any generally applicable qualifications for board membership also apply to residents, unless the application of the requirements would result in the governing board not containing at least one eligible resident as a member. Further, PHAs and localities may not establish eligibility requirements for board membership that are solely applicable to residents. 24 CFR § 964.425 Small public housing agencies. (a) General. The requirements of this subpart do not apply to any public housing agency that: (1) Has less than 300 public housing units (or has no public housing units): (2) Has provided reasonable notice to the resident advisory board of the opportunity for residents to serve on the governing board; (3) Has not been notified of the intention of any resident to participate on the governing board within a reasonable time (which shall not be less than 30 days) of the resident advisory board receiving the notice described in paragraph (a)(3) of this section; and (4) Repeats the requirements of paragraphs (a)(2) and (a)(3) of this section at least once every year. (b) Public housing agencies that only administer Section 8 assistance. A public housing agency that has no public housing units, but administers Section 8 tenant-based assistance, is eligible for the exception described in paragraph (a) of this section, regardless of the number of Section 8 vouchers it administers. (c) Failure to meet requirements for exception. A public housing agency that is otherwise eligible for the exception described in paragraphs (a) and (b) of this section, but 12.A.h Packet Pg. 2133 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) does not meet the three conditions described in paragraphs (a)(2) through (a)(4) of this section, must comply with the requirements of this subpart. ———————————— 12.A.h Packet Pg. 2134 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) 12.A.h Packet Pg. 2135 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) General Comment: Thank you, Patrick. Please let me know what CoC program participants like myself need to do to secure representation in the SMHA Board as is required by the law. There never was an effort by SMHA to create the required representation on the governing body of SMHA. This is not only in violation of the HUD regulation but also discriminatory when HCV participants have a path to get their representatives on the governing body of SMHA but CoC program participants don’t. At a time here the city has declared a state of emergency regarding homelessness, how can the City justify going to great lengths to prevent CoC representation on the governing body of SMHA? Thank you for your assistance. Regards, Olga Zurawska 12.A.h Packet Pg. 2136 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) 12.A.h Packet Pg. 2137 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) Comment from RAB Member Hello, My name is Mia and I am providing my comments for the Section 8 Administrative Plan in writing should I be unable to be present on the actual day via video: 1) They have to make the Payment Standards automatically correlate with the FMRs posted to HUDs Website Annually and proactively instead of waiting for the HCV program to be unhelpful to hopefully clients or an emergency to address this concern about clients finding a home in the Housing Authority given price range or aka payment standards. A person has to be able to use a common website such as craigslist.org or Westsiderentals.com etc. For example, to be able to find housing quickly and in the time frame for the vouchers expiration date. Let's avoid looking at it in terms of undeserved "luxury" or whatever or that people somehow need to live in squalor so that poverty has a specific image to judge and instead focus solely on getting people housed using the HCV program to utilize the housing that is already available in the market so that people don't have to be homeless for decades waiting on specific genre of buildings to be build or converted for " low income" aka poor and poverty stricken. By adding language for automatic and proactive changes in rental payment standards, you would take the guesswork out and less work on your end because HUD would be posting rents for you:) 2) Let's change the "Bedroom Standards". Or HCV bedroom allotment for families. Change it to 1 person= 1bedroom and at the 1 bedroom payment standards for HCV approval. If there is 1 parent and one child = 2 bedrooms, 2 adults = 2 bedrooms unless they are married. 1 adult and two children can have 2 bedrooms if the children are close in age and same gender. If the children are opposite identifying children then they can change an adult with 2 children (1 boy and 1 girl) as granted 3 bedrooms and 3bedroom payment standards. 1 Married couples can have one bedroom because they would likely be sleeping in the same room together. Stop considering studios or efficiency as a "1 bedroom" under the rent payment standards. Stop treating the living room as a bedroom. If an appraiser for a property that is for sail, only considers it a bedroom if it has its own door and closet for clothing storage then that is what it should be for everyone. Studios and efficiency has to be treated as immediate and temporary housing similar to tiny homes, never intended for long term residency. Adjusting the bedroom standard makes it easier to find housing. Also, I am even a fan of just giving people a budget based on household and say go find housing in this price range whatever you can find and be approved for. Rather than saying if you find a 2 bedroom with a den that you are prohibited from using your 3 bedroom voucher because it's not technically a bedroom. It's could save the housing authority money for a family to choose that unit to rent, so let them exercise choice. If a 1 bedroom person would rather have a studio because it's the only place available near their job and within their price range, let them choose it while maintaining their 1 bedroom payment standards because it gets them housed quickly and that is the primary purpose. Maybe they have mobility issues or they want to pay less utilities every month. Trust them to make a decision for themselves by taking away so much restrictive language and obstacles that could affect efficient use of the program. We are not punishing people for being poor or for circumstances that put them in poverty. We are helping people and we want them to be happy about it. Once everyone has the HCV there will be little to no envy. Squeezing 6 people into a 2 bedroom for example is ridiculous and not practical. It might even be contributing to mental health issues. 12.A.h Packet Pg. 2138 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) In Santa Monica, if you address these three issues, the program will be more efficient and useful. California is unique in that it has higher rents. This is a way to house people, give them an actual choice in housing like the program implies, and gives them breathing room and will make them confident to address housing issues like maintenance when they're not trapped by rare cheap price of rent, they could simply move to a better landlord avoiding pests, crime or plumbing issues for example. California never has to penny pinch, they have plenty in surplus budgets. The poor will likely behave better and look better instead of being a blite on the community when they have a reason to care and stuff to care about and take care of. It's been a jungle because they were treated like animals with no way out or a safety net to life circumstances that would allow for a law abiding life in peace of mind. So let's give them this pathway to resume contributing to society and peace to mind recover and move on from traumatizing poverty and homelessness. And include military Veterans for eligibility. VASH and HCV are essentially the same, only the rent payment standards are different. This will give non program participating neighbors peace of mind and desire to stay when the neighborhood remains clean and safe and they actually get to know who's living with next to them is human just like them. Last, can you add some language that will say that if a person is a victim of crime or custody matter or abduction/kidnapping that they will be treated as if the child is still in home if they can show the agency a nexus between the missing household member and criminal activity such as domestic violence. And without housing decisions for allotment being related to any court orders. Some people who have had to escape domestic violence or whatever have been separated from their children or other family members and they should have enough space to provide for them should they return. If a walkthrough was conducted on a one bedroom and a parent is trying to get 4 children back for example, it might be seen as a negative to be living in a one bedroom compared to a husband who has a house for example. We avoid punishing victims and the poor for the life circumstances. Rather we look for ways to help and improve their lives and circumstances long term. 12.A.h Packet Pg. 2139 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) Cantor Oreen Zeitlin March 15, 2023 City of Santa Monica Housing 1685 Main Street Stop #19 Santa Monica, CA 90401 Dear Representative: My experience with Section 8 Housing has been, unfortunately, less than ideal. While I understand that you are understaffed and overloaded right now since the pandemic, it has been since December 1, 2022 that I have not received a call or email in return of some very valid issues. That is a large gap in communication. Further to this, my Social Worker at Wise and Healthy Aging also said she never gets her communications returned. That does not bode well for the agency. I am currently living on Social Security and SSI. I am handicapped since July, 2021. To begin with, I had a monthly increase of my share of the rent from $314 per month to $376 in one month with the total being paid by Section 8 remaining the same. The letter I received said I paid $366 per month last year which I did not. The Management Company also did not receive an increase last year from $314 per month. I called the Administrator of Section 8 after months of trying to reach my contact at the agency and have received no reply after several weeks, even though he stated that there was a discrepancy. Further to this, the increase in rent was dependent on an increase in Social Security. Section 8 made the calculations before November, 2022 and before the large increase in costs for gas. My heating bill in January alone was $262, Further, the Social Security increase did not even cover the increased cost of food, which has left me to choose between food and heat. The calculations used were definitely well below the increases in cost of living in Santa Monica. DPPS just informed me today that they are cutting back on the food allotment which does not cover the inflation as it is and prices for food are still going up. When prompted, I was number 61 in the cue and I hung up. There is no way to reach them directly and since the social worker is changed constantly, I do not even know whom to ask for. The next issue has to deal with Senior Housing. I went to the building on 14th Street with a great view of the cemetery. This was at the height of the pandemic before there were vaccines. The manager of the facility was a young woman who bragged about being anti vaccine. And she was in charge of Senior Housing. She showed me an apartment on the second floor. It was smaller than a dormitory room and had composite cabinets full of formaldehyde and plastics with phalates everywhere. Phalates and formaldehyde cause cancer. Who knows what other 12.A.h Packet Pg. 2140 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) chemical laden materials were used! There was no way out of the building in case of fire or earthquake. There was one elevator which would not be working in either situation, and there were over 30 steep stairs from the second floor to the first floor, which I could not climb down if I had to. The entire building is a fire trap for Senior Citizens. The next issue is toxic mold. While sequestered during the pandemic, I became more and more ill until one day in July, 2021, I woke up barely able to walk. My Physician, Dr. Gabriel Niles, took tests and told me I had Mycotoxin Poisoning which is a mold poisoning, and told me I had to move to another place immediately. My landlord and Management Company refused to do any remediation of the moldy walls. Three apartments that are similar in the courtyard building have mold. There are only four apartments so that is 3 out of four. In the four apartments in my building, my next door neighbor had mushrooms growing out of her walls. The next apartment over, with two small children, had black mold all over the apartment that was not remediated. The Board of Health did not order mold remediation. The inspector of Section 8 Housing said “I have seen worse.” regarding bubbling paint in my apartment from mold, and they passed inspection despite many infractions. Code Enforcement let them pass inspection. Nobody in any agency would care about systemic problems in the buildings, only in each apartment which they passed despite unhealthy conditions. Further to this, I called Rent Control and spoke to Amelia who mentioned to me that there was a big problem with mold in older buildings in Santa Monica. If that is the case, why are they allowing people to live in mold infested housing, especially children and vulnerable Senior Citizens? Obviously mold is an issue they know about but do not enforce. My solutions are the following: Change the codes to set a minimum standard for mold, visible and invisible. Require that there be testing for levels of mycotoxins, other molds and cancer causing toxins before people move in to any building and before any building is bought or sold. If mold exists above a certain level, require remediation. Agencies must look for systemic problems in buildings and not just by each apartment. Section 8 cannot just let people pass inspection with obvious issues. 12.A.h Packet Pg. 2141 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) You can speak to or visit the website ISEAI.org which deals with environmental toxins or you can call Dr Kelly McCann in Costa Mesa, CA who deals with patients with mold illness or Dr. Gabriel Niles of St. Johns Physicians Partners who also deals with mold issues and has a questionnaire for people to fill out regarding known toxins when they come for an initial visit. In addition, Mr. Michael Schrantz of Toronto, Canada is an expert on environmental issues who can be reached to speak to you about toxin contamination. By the way, the area around Santa Monica Airport has a cancer cluster. I suggest you make such maps more readily available to consumers. I found out only after I moved to the area. Before July, 2021, I never considered mold or any issue of this type and did not even know about Mycotoxins. Now I have become handicapped as a result of building conditions that are not mitigated and am as a result, dying. Before the sequestration, I was fine. My previous internists said that I was totally asymptomatic. After sequestration, I I became very ill. Now I am sensitive to environmental toxins and poisons, where before the sequestration, I felt and showed no symptoms outwardly. I am hoping that this letter will be taken into consideration as the cost to the health system will be millions of dollars in Santa Monica alone. I am hoping that just because someone is poor, they will get healthy housing situations instead of having to choose between mold and cancer causing chemicals in their environment. Please change the codes and make owners responsible. Nobody made them buy sick buildings. Sincerely, Cantor Oreen Zeitlin 12.A.h Packet Pg. 2142 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) Hi Pat, Thank you again for talking with me last week. I'm encouraged by our conversation and your support for SMHA clients and the CAB. I just learned that I was mistaken about the current status of the RAB representatives to the SMHA Board. Despite any local rules saying otherwise, SMHA is legally required by HUD policy to ask the RAB at least once a year if anyone is interested in being one of those two designated RAB representatives. As Ann Cochran and Donna Brown have been designated RAB representatives for almost two years now, and the RAB was never asked after the first year if any other members wanted to serve, that must be remedied and happen now. Tonight I attended a five hour RAB meeting of approximately ten current RAB members. The RAB members present voted unanimously for two new RAB representatives to serve on the SMHA Board until the CAB can meet and choose CAB representatives. Those two new RAB chosen RAB representatives are Courtney Lauretano and Hajar Muqtasid St Claire. I ask that you please arrange for these two people to be named as replacement RAB representatives to the SMHA Board in time to attend the April 11th SMHA Board meeting as board members. As staff chose the initial two representatives, their rightful one year tenure has long since ended, and SMHA did not ask the RAB if anyone else was interested in the last year as required by HUD policy, staff designating two new RAB representatives chosen by the existing RAB should pose no problem. I've copied SMHA Board members Phil Brock, Christine Parra, and Oscar de la Torre and encourage you to confer with them if you have any concerns about honoring my request. Thank you again for your support of our self representation, Pat. Please let me know if you have any questions. Very best wishes, Michele ____________ 12.A.h Packet Pg. 2143 Attachment: Actual Written Comments [Revision 4] (5601 : Housing Authority Annual Plan) 1 Vernice Hankins From:Elizabeth Lutz <elizabethjlutz7@gmail.com> Sent:Tuesday, April 11, 2023 11:46 AM To:councilmtgitems Subject:Comment for April 11 council meeting EXTERNAL Hello, Regarding agenda items 11‐C and 12‐A. The approved Administrative plan repeatedly insisted the City will make process accessible to elderly, disabled, and those using Federally funded housing subsidy. The revised CAB which the council discussed Fall 2022 is still not supported, so the input from the elderly, disabled, low income constituents are NOT included in the Housing Element / Administrative plan as PROMISED to the State and City residents. This plan should not be passed without this input. The Council opened the City to massive unchecked development by their refusal to incorporate input mandated by HUD and the State. Other unfulfilled promises: The housing authority remains with 6 vacant positions. There is no one helping ADA residents with concerns. Second, the City is not providing the same financial incentives to residents to build and own housing as it does developers. The CITY can take this role and provide affordable HOME purchase opportunities for voucher holders. Otherwise, this is economic discrimination on a large scale and our city is potentially target of a massive class action. Thank you, Elizabeth Lutz Item 12.A 04/11/23 1 of 15 Item 12.A 04/11/23 12.A.i Packet Pg. 2144 Attachment: Written Comments [Revision 1] (5601 : Housing Authority Annual Plan) 1 Vernice Hankins From:Hajar Muqtasid St. Claire <mrshstclaire@gmail.com> Sent:Tuesday, April 11, 2023 11:58 AM To:councilmtgitems; councilmtgitems Subject:Agenda items 11-C and 12- A EXTERNAL I would like to give public comment on agenda items 11‐ C and 12‐A. As a housing authority voucher holder, I am in full support of the Housing Commission recommendations to the Santa Monica Housing Authority Board. I encourage you all to accept the revised version of recommendations provided to you 11 April 2023. I encourage you to allow a representative of the Housing Commission to deliver formal recommendations to the SMHA Board immediately after the respective staff presentation and before board members deliberation and potential action instead of during public comments. This process seems like you are silencing our voice and possibly violating HUD recommendations. It also pairs with the fact that the current Resident Advisory Board ( RAB) has been prevented from meeting, not given proper education regarding the SMHA planning process and documents nor have they been provided with staff with collective input in the annual planning process as required by federal policy for more than 20 years. Our voices cannot be silenced any longer. If this silencing is not your intention we demand immediate reversal of all the current silencing policies. Thank you, Hajar Muqtasid St. Claire Item 12.A 04/11/23 2 of 15 Item 12.A 04/11/23 12.A.i Packet Pg. 2145 Attachment: Written Comments [Revision 1] (5601 : Housing Authority Annual Plan) 1 Vernice Hankins From:Clerk Mailbox Sent:Tuesday, April 11, 2023 12:21 PM To:councilmtgitems Subject:FW: Items 11-C and 12-A. Meeting 4/11/2023 From: Danielle Charney <shineshuge@gmail.com> Sent: Tuesday, April 11, 2023 11:52 AM To: CouncilItems@santamonica.gov; Douglas Sloan <Douglas.Sloan@santamonica.gov>; Clerk Mailbox <Clerk.Mailbox@santamonica.gov> Subject: Items 11‐C and 12‐A. Meeting 4/11/2023 EXTERNAL I am far to sick and have had no sleep to do a by item response to support this Housing Commission in a detailed and legal way but others will do that> I want to say that my illness now could have been prevented and helped had I been able to go to anyone in this City during my awful treatment by the Housing Authority from March of 2014 to August of 2016. I was the victim of serious abuse by Barbara Collins, and other workers there ‐ my rights were violated, i was humiliated for fun by Collins, I was prevented from using a voucher unless I agreed to live in a substandard unit hanging over the freeway or be moved into. a depressing old age home to die. My civil rights were repeatedly violated. I was told by Collins to leave Santa Monica. I had been here since 1982 ‐ she had been here for six years. I was very ill at the time ‐ my conditions are worse now. I would have been able Item 12.A 04/11/23 3 of 15 Item 12.A 04/11/23 12.A.i Packet Pg. 2146 Attachment: Written Comments [Revision 1] (5601 : Housing Authority Annual Plan) 2 to help myself had I been given a fair shot. I went to every single council person, to Legal Aid and to Gary Rhoades. I went everywhere. I was ignored, shut out and not even responded to‐‐ so this is my request. DO WHAT THESE TWO SMART BRAVE AND KNOWLEDGEABLE WOMEN ARE ASKING OF THIS CITY. It is more than clear to all of us who have tried to have our cases dealt with honestly that this City won't do that. We need a clear resident RAB ‐ we always. have. We finally have a Housing Commission who functions for the residents and the most vulnerable of us. We have NEVER HAD THAT. We have a political group moving to disparage and remove them. DON'T LET THAT HAPPEN. THEY ARE CALLING OUT THE WRONGS OF THIS CITY. Do what this Housing Commission requests. Stop the political games . Stop Abusing US. DO THE RIGHT THING. Danielle Charney Resident Since 1982 Item 12.A 04/11/23 4 of 15 Item 12.A 04/11/23 12.A.i Packet Pg. 2147 Attachment: Written Comments [Revision 1] (5601 : Housing Authority Annual Plan) Housing Commission Recommendations to the Santa Monica Housing Authority Board Formally adopted by unanimous vote on 6 April 2023; submitted to city leadership on 10 April 2023 The Housing Commission unanimously voted to provide the Santa Monica Housing Authority (SMHA) Board with important and time sensitive recommendations regarding SMHA clients, including amendments and additions to Housing staff's current Client Advisory Board (CAB) recommendations. These recommendations come after extensive consultation with Santa Monica residents, including numerous Santa Monica Housing Authority (SMHA) clients, and discussions with housing and advocacy nonprofits. They also follow several productive conversations with new SMHA Senior Administrative Analyst and supervisor Patrick Komesu, who prepared the current staff CAB recommendations. Housing Commission Client Advisory Board (CAB ) Recommendations Background As discussed at the previous HAB meeting, SMHA program participants have been prevented from meaningful participation in a functioning RAB, and subsequently meaningful participation in the annual SMHA planning process, for more than twenty years in direct contravention of HUD federal requirements. At the previous HAB meeting the Housing Commission presented extensive recommendations for creating and supporting a functional Client Advisory Board (CAB) composed of all SMHA clients. These included size parameters, communications support, budget estimates, codification and legal agreements, and meeting guidelines. Most of all, in light of both HUD policy requirements and a long history of SMHA client disenfranchisement, the Housing Commission recommended that the CAB be formed and operated with as much independence and self direction by SMHA clients as possible and only minimal, necessary administrative support by staff. That advice continues to inform the new recommendations below. Item 12.A 04/11/23 5 of 15 Item 12.A 04/11/23 12.A.i Packet Pg. 2148 Attachment: Written Comments [Revision 1] (5601 : Housing Authority Annual Plan) Recommendations Codification 1.In contrast with staff recommendations, which propose establishing a HAB- appointed CAB in the City’s Municipal Code in the same manner as other City Boards and Commissions, the Housing Commission recommends that the CAB be established solely by inclusion in the HAB bylaws, as it is an advisory body solely to the HAB and with a very narrow, federal mandate. Codification via city ordinance creates a more cumbersome body, entailing adherence to city staffing requirements, uniform city bylaws and agenda templates, and some direct oversight by city government. Conversely, establishing the CAB with only HAB bylaws allows for a leaner, more responsive, self directed, and independent advisory body, as supported by HUD policy and guidance. 2.Codification should include CAB bylaws written by the first CAB, approved by the HAB, and amended as needed by future CAB recommendation and HAB approval. These bylaws should be included on the city and CAB websites respectively and in the SMHA Administrative Plan. 3.In contrast with staff recommendations, which state that establishing a CAB via city ordinance and CAB bylaws, together “would serve the same purpose as the Memorandums of Understanding used in other jurisdictions,” the Housing Commission strongly recommends that codification include a Memorandum of Understanding (MOU) between the CAB and HAB. MOUs are potentially qualitatively different than disparate, technical city ordinance and CAB bylaws, allowing the creation of a more nuanced agreement that acknowledges SMHA clients’ collective history as well as current operating agreements. All thirteen comparable jurisdictions surveyed by SMHA have MOUs, and lawyers from nonprofits Poverty and Race Research Action Council (PRRAC) and National Housing Law Project (NHLP) both explicitly recommended the creation of an MOU signed by both the CAB and HAB. Composition 1.Given the amount of work required of the CAB and the high level of interest expressed by SMHA clients in serving as CAB members, the Housing Commission suggests the CAB be composed of nine (9) members instead of seven (7). Item 12.A 04/11/23 6 of 15 Item 12.A 04/11/23 12.A.i Packet Pg. 2149 Attachment: Written Comments [Revision 1] (5601 : Housing Authority Annual Plan) 2.Furthermore, given the importance of CAB member participation and the hardships and complications often experienced by SMHA clients, all of whom have low incomes and who are disproportionately older and disabled, the Housing Commission suggests the CAB also include two (2) alternate members who will serve on the CAB when one or more members are absent or unavailable. 3.The Housing Commission recommends that each CAB appointee serve a two (2) year term, with the option of reapplying for additional terms. 4.In order to fulfill the HUD federal Desk Guide requirement that CAB composition “reflect and represent all the residents assisted by the PHA”, and to advance city priorities to advance racial and social justice and enhance equity, the Housing Commission strongly recommends the following: 1.Require at least one CAB member who meets each of the following criteria: HCV holder; CoC holder; resident of a neighborhood with a Title 1 school; 62 years or older; disabled; and current or former experience with homelessness. 2.Give priority to people who meet any of the following criteria: veteran; HOME voucher holder; Emergency Voucher holder; identify as Asian, Black, Latinx, indigenous, or LGBTQIA. Administration 5.The Housing Commission recommends that the initial CAB applications be based on existing city board and commission applications, with potential modifications based on Housing Commission and SMHA client input to accommodate the unique requirements of CAB membership and needs of the potential applicant pool. Once the CAB is established and filled, CAB members may alter future applications at their discretion with HAB approval. 6.The Housing Commission strongly recommends that CAB appointments be made by the HAB with consideration given to the recommendations and input of the Housing Commission and individual SMHA clients. 7.In order to comply with federal law, SMHA should reach out to all clients at least once a year to notify them of the opportunity to serve on the CAB and to solicit new application submissions. 8.As one SMHA client pointed out, no one on City Council appoints their fellow councilmembers. In keeping with the Housing Commission’s recommendation that the CAB remain as independent and self directed as possible, and in recognition of the fact that HAB members appointing other HAB members stratifies the HAB, the Item 12.A 04/11/23 7 of 15 Item 12.A 04/11/23 12.A.i Packet Pg. 2150 Attachment: Written Comments [Revision 1] (5601 : Housing Authority Annual Plan) Housing Commission strongly recommends that the two (2) CAB representatives to the HAB are elected by the CAB, while ensuring that at least one HAB representative is an HCV holder and at least one HAB member has current or former experience with homelessness, as required by federal law. 9.In contrast with staff recommendations, the Housing Commission recommends that CAB members receive a $25 stipend per CAB meeting, with the option to receive this in the form of a gift card or to decline the stipend. Note that the staff report statement that stipends over $200 per year must be declared as income is incorrect. According to HUD rules, receipt of over $199 per month must be declared as income. 10.In alignment with practices of comparable jurisdictions as noted in the current staff report, CAB members should have access to outside training opportunities when available, for example those provided by nonprofit housing and advocacy organizations. Communications 11.As previously recommended and discussed at the 13 September 2022 HAB meeting, the HAB is a city body and establishing the CAB via HAB bylaws will make the CAB subject to the California Brown Act. Therefore, all communications by CAB members acting in their capacity as CAB members, whether issued via city email or other platforms, will be subject to Public Records Act requests as required by the Brown Act. 12.The Housing Commission reiterates its previous recommendations of specific tools necessary to facilitate independent and fully accessible communications among SMHA clients: a.Independent website (as current staff report notes that comparable jurisdictions operate) with email for CAB members and secure area for SMHA client chat b.Dedicated phone number with TDD & TTY accessibility and outgoing messaging that will be recorded and maintained by the CAB c.Physical city mailbox for written correspondence d.Dedicated Zoom account for meetings e.Dedicated online fax account for accessible correspondence f.CAB materials in all new client onboarding, including new and ported vouchers g.Continuing city email addresses for Housing Authority Board members h.All mailings to SMHA clients translated in their preferred languages i.Translation support at CAB meetings as needed Item 12.A 04/11/23 8 of 15 Item 12.A 04/11/23 12.A.i Packet Pg. 2151 Attachment: Written Comments [Revision 1] (5601 : Housing Authority Annual Plan) j.Occasional translator support for outgoing phone messages k.Physical and digital mailings to all SMHA participants to notify them of CAB meetings in sufficient advance l.Surveys sent 2x/year to all SMHA clients for the first two years and annually thereafter 13.The Housing Commission further recommends that the dedicated CAB phone number be routed to a few inexpensive cell phones in order for CAB members to speak with SMHA clients who need phone accessibility without compromising their privacy by having to share their personal phone numbers. 14.In addition to staff recommendations, notices of opportunities to apply for CAB appointments should be sent directly to all SMHA clients by mail and email at least once a year, included in onboarding materials for ported voucher participants, and posted on city social media. Meetings 15. As previously recommended and discussed at the 13 September 2022 HAB meeting, the HAB is a city body and establishing the CAB via HAB bylaws will make the CAB subject to the California Brown Act. Therefore, all CAB meetings with a quorum present will be properly noticed, agendized, and open to public participation as required by the Brown Act. 16.The Housing Commission strongly recommends that CAB meetings should be held monthly for at least the first two years, after which the CAB can recommend changes. Note that all thirteen comparable jurisdictions surveyed in the staff report meet monthly. 17.With the exception of hybridity, as discussed below, CAB meetings should be held in a manner similar to existing city boards and commissions unless and until the CAB makes other recommendations that are approved by the HAB, which they should be as long as the recommendations are legal (with or without modifications to existing policy) and reasonable. 18.Given the disproportionate representation of seniors, disabled people, and people without access to reliable transportation among the SMHA client population, and the federal requirement that SMHA facilitate communications and participation among clients, the Housing Commission strongly recommends that all CAB meetings be hybrid, with options to attend in person or via video or phone. Note that this can be done without staff attendance and largely without staff support, and Item 12.A 04/11/23 9 of 15 Item 12.A 04/11/23 12.A.i Packet Pg. 2152 Attachment: Written Comments [Revision 1] (5601 : Housing Authority Annual Plan) will be done in compliance with applicable Brown Act rules regarding hybrid meeting noticing and access. 19.To encourage attendance and foster community among SMHA clients, and in keeping with comparable jurisdictions’ practices, CAB meetings should have refreshments available for attendees. 20.The Housing Commission recommends researching the feasibility of holding nonpublic meetings of CAB members and SMHA clients (for purposes other than conducting CAB business), as the staff report notes that comparable jurisdictions hold, in light of Brown Act requirements. Respectfully submitted by Michelle Gray, Housing Commission Chair, on behalf of the Santa Monica Housing Commission Item 12.A 04/11/23 10 of 15 Item 12.A 04/11/23 12.A.i Packet Pg. 2153 Attachment: Written Comments [Revision 1] (5601 : Housing Authority Annual Plan) Housing Commission Recommendations to the Santa Monica Housing Authority Board Formally adopted by unanimous vote on 6 April 2023; submitted to city leadership on 10 April 2023 The Housing Commission unanimously voted to provide the Santa Monica Housing Authority (SMHA) Board with important and time sensitive recommendations regarding SMHA clients, including advice to postpone the approval of current SMHA plans. This recommendation comes after extensive consultation with Santa Monica residents, including numerous Santa Monica Housing Authority (SMHA) clients, and discussions with housing and advocacy nonprofits. They also follow several productive conversations with new SMHA Senior Administrative Analyst and supervisor Patrick Komesu, who prepared the current staff CAB recommendations. Housing Commission Recommendation Regarding Approval of SMHA Plans Background As discussed at the previous HAB meeting, SMHA program participants have been prevented from meaningful participation in the annual SMHA planning process for more than twenty years in direct contravention of HUD federal requirements. While the likely forthcoming formation of a Client Advisory Board (CAB) is a positive development, it does not change the fact that the current nominal Resident Advisory Board (RAB) has been prevented from meeting, receiving full orientation regarding the SMHA planning process and documents, deliberating, and providing staff with collective input in the annual planning process as required by federal policy. SMHA clients receive a single annual notice of the opportunity to provide planning feedback by email, mail, phone, or at a designated Housing Commission meeting. However, the majority of clients are unaware that the Administrative and Annual Plans exist. Of those who are aware, few have any idea of their import, contents, and the discretionary status of their contents. This knowledge is necessary for any RAB member to provide planning input. Despite claims otherwise, this annual notice does not fulfill HUD federal requirements for client inclusion in the annual SMHA planning process. Federal regulations require SMHA to Item 12.A 04/11/23 11 of 15 Item 12.A 04/11/23 12.A.i Packet Pg. 2154 Attachment: Written Comments [Revision 1] (5601 : Housing Authority Annual Plan) provide technical assistance to facilitate program participants’ understanding of the planning process and documents, to engage with and secure preliminary feedback from the RAB well in advance of the forty-five day comment period, and to actively facilitate the RAB meeting, deliberating, and providing collective input as a body. In a positive development, staff recently scheduled a “planning workshop” to educate clients about the planning process and provide an additional opportunity to share feedback. Unfortunately, clients received only one week's notice of the event and it was scheduled for 1PM on a weekday, both leading to poor attendance; staff provided insufficient explanation of the Annual and Administrative Plans and did not include discussion of the 5-Year or Consolidated Plans which determine SMHA goals and funding sources; and some attendees were prevented from participating by an inaccessible meeting setup. Plans for SMHA clients’ successful self representation are progressing and staff are taking positive steps toward empowering this disenfranchised population. However, the current planning cycle has not been informed by collective RAB feedback as required by federal regulations because the RAB has never had a single properly noticed meeting, orientation, or discussion regarding these plans. Moreover, on 13 September 2022 the HAB unanimously voted to explicitly and formally direct staff to schedule and facilitate such a meeting “with haste”, but the direction was not followed. When Housing Commission leadership inquired on 3 October 2022, staff denied such direction was given even after being provided with a transcript of the successful predicating motion. Recommendation Given the RAB’s continued denial of the opportunity to communicate, meet, deliberate, and provide collective input as required by HUD federal policy, the Housing Commission recommends that the HAB choose to refrain from approving the current SMHA Plans unless and until the current RAB (that is, all Housing Choice Voucher [HCV] holders) is able to meet, discuss, and submit collective feedback to staff. While SMHA Plans are due to HUD by 17 April 2023, HUD permits requests for extensions without adverse consequences to requesting jurisdictions. Respectfully submitted by Michelle Gray, Housing Commission Chair, on behalf of the Santa Monica Housing Commission Item 12.A 04/11/23 12 of 15 Item 12.A 04/11/23 12.A.i Packet Pg. 2155 Attachment: Written Comments [Revision 1] (5601 : Housing Authority Annual Plan) Housing Commission Recommendations to the Santa Monica Housing Authority Board Formally adopted by unanimous vote on 6 April 2023; submitted to city leadership on 10 April 2023 The Housing Commission unanimously voted to provide the Santa Monica Housing Authority (SMHA) Board with important and time sensitive recommendations regarding SMHA clients, including changes to their current representation on the SMHA Board (HAB) and the placement of the Housing Commission’s presentation of recommendations in the forthcoming meeting. In light of their time sensitivity, and with the belief that fulfilling these requests is within Housing staff purview, the first two recommendations below were submitted to City Manager David White on 8 April 2023 for consideration and possible action before the 11 April 2023 HAB meeting. These recommendations come after extensive consultation with Santa Monica residents, including numerous Santa Monica Housing Authority (SMHA) clients, and discussions with housing and advocacy nonprofits. They also follow several productive conversations with new SMHA Senior Administrative Analyst and supervisor Patrick Komesu, who prepared the current staff CAB recommendations. Housing Commission Recommendation 1—Tenant Representation on HAB Background •Federal HUD policy requires tenant representation on the SMHA governing board, and the City of Santa Monica has dedicated two (2) SMHA Board (HAB) seats to this tenant representation. One of these seats is currently vacant. •The current SMHA Resident Advisory Board (RAB), composed of all HCV holders in Santa Monica, was created by staff decision and not via codification in HAB bylaws or city ordinance. •The two tenant representatives named to the HAB two years ago were chosen, named, acknowledged, and thereby seated on the HAB solely via SMHA staff decision, and not via direction codified in HAB bylaws or city ordinance. Item 12.A 04/11/23 13 of 15 Item 12.A 04/11/23 12.A.i Packet Pg. 2156 Attachment: Written Comments [Revision 1] (5601 : Housing Authority Annual Plan) •One of the two named tenant representatives has never attended a HAB meeting and recently formally resigned. The other named tenant representative did not attend the last HAB meeting and has not responded to any emails or calls from SMHA clients. •HUD federal policy requires SMHA staff to reach out to all program participants at least once a year to ask if any of them would like to serve on the HAB and staff has not done so for more than two years. •SMHA clients recently held two grassroots virtual RAB meetings: a five hour meeting on 19 March 2023 with twelve attendees, and a seven hour meeting on 4 April 2023 with sixteen attendees, during which clients unanimously elected SMHA clients Courtney Lauretano and Hajar Muqtasid St Claire to act as their two interim RAB representatives until a CAB is formed, with Joyce Sawyer and Stephanie Leah S. as alternates. •It is essential that SMHA clients have two representatives sitting on the HAB in time for them to participate and vote during Tuesday’s HAB meeting. Recommendation To ensure meaningful RAB representation on the HAB until a CAB is formed, the Housing Commission strongly recommends that staff recognize SMHA clients Courtney Lauretano and Hajar Muqtasid St Claire, and in their absence, alternates Joyce Sawyer and Stephanie Leah S, as interim RAB representatives serving on the HAB in the two seats dedicated to tenant representatives, until a CAB is formed and can provide two CAB members as tenant representatives on the HAB. Housing Commission Recommendation 2—Placement of Advisory Body Input Background There are no current city provisions that permit appointed public officials to speak on behalf of their respective boards and commissions regarding a City Council or HAB agenda item at the same time as city staff, that is, immediately before City Council or SMHA Board deliberation and possible action on that item. Instead, these public officials are allowed to deliver formal advisory body input as public comment. Item 12.A 04/11/23 14 of 15 Item 12.A 04/11/23 12.A.i Packet Pg. 2157 Attachment: Written Comments [Revision 1] (5601 : Housing Authority Annual Plan) In principle, this practice is flawed because city boards and commissions are composed of appointed city officials whose mandate is advising city leadership, and their input is not, therefore, commensurate with individual public comment. In practice, this convention is flawed because public input is given at the beginning of meetings and therefore heard long, and often many hours, before the agenda item in question. While City Council and SMHA Board meeting agendas dedicate item 13 to board and commission reports, presenting advice from staff and appointed public officials on the same topic separately is inefficient and unduly disenfranchises city advisory bodies. Given the nature of city advisory boards and commissions, including the hundreds of hours of hard work and communication with residents undertaken by their volunteer appointed public officials, hearing board and commission recommendations alongside related staff recommendations is most appropriate. Recommendation In order to facilitate communication and maximize busy SMHA Board members' understanding of complex issues, the Housing Commission recommends and requests that a representative of the Housing Commission be permitted to deliver the Housing Commission's formal recommendations to the SMHA Board immediately following the respective staff presentation and before board members' deliberation and potential action, instead of being heard during public comments. Respectfully submitted by Michelle Gray, Housing Commission Chair, on behalf of the Santa Monica Housing Commission Item 12.A 04/11/23 15 of 15 Item 12.A 04/11/23 12.A.i Packet Pg. 2158 Attachment: Written Comments [Revision 1] (5601 : Housing Authority Annual Plan)