1 PROPOSED HCV SUMMARY OF CHANGES
-2025 ADMINISTRATIVE PLAN-
Effective January 1, 2025, the Final Rule implanting Section 102, 103, and 104 of the Housing Opportunity Through Modernization Act (HOTMA) of 2016 takes into effect and the updates in the Housing Choice V oucher (HCV) Administrative Plan meet these HUD requirements to update the Administrative Plan with regulation changes.
Additional information can be found on the HUD website at https://www.hud.gov/program_offices/housing/mfh/hotma#:~:text=Background,to%20income%20calcul ation%20and%20reviews
CHAPTER 1
OVERVIEW OF THE PROGRAM AND PLAN
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, PHA operations, or when needed to ensure staff consistency in operation.
The PHA shall implement policies compliant with HUD’s final Housing Opportunity Through Modernization Act (HOTMA) upon direction from HUD and access to the revised HUD-50058 in the Housing Information Portal (HIP). Until such time as the HOTMA polices can be implemented, the PHA shall continue to apply pre-HOTMA polices as outlined in the PHA Administrative Plan.
2 CHAPTER 3
ELIGIBILITY
PART I: DEFINITIONS OF FAMILY AND HOUSEHOLD MEMBERS
3-I.B. FAMILY AND HOUSEHOLD [24 CFR 982.201(c); FR Notice 02/03/12; Notice PIH 2014-20] The terms family and household have different meanings in the HCV program.
Family [24 CFR 5.403]
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. The definition of family also includes a single person who is an otherwise eligible youth who has attained at least 18 years of age and not more than 24 years of age; has left foster care, or will leave foster care within 90 days, in accordance with a transition plan described in section 475(5)(H) of the Social Security Act (42 U.S.C. 675)(5)(H); and is homeless or is at risk of becoming homeless at age 16 or older. ; or a The definition of family also includes a group of persons residing together. Such group includes but is not limited to a family with or without children (a child who is temporarily away from the home because of placement in foster care is considered a member of the family), an elderly family, a near-elderly family, a disabled family, a displaced family, 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.
Foster adults/children are not considered family members and must not be included in calculations of income for eligibility and rent determination. [24 CFR 5.603] 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. Foster adults/children are not considered family members and are not included in calculations of income for eligibility and rent determination. They are, however, considered household members and must be included when determining unit size or subsidy standards. [24 CFR 5.603] Household members do not qualify for expenses or deductions, except that reasonable unreimbursed child care expenses may be deducted for foster children under the age of 13 if it enables a member of the family to work, look for work, or go to school. (See chapter 6-II.F.) Remaining Member of a Tenant Family [24 CFR 5.403]
The HUD definition of family includes the remaining member of a tenant family, which is a member of an assisted family who remains in the unit when other members of the family have left the unit.
Household members such as live-in aides, foster children, and foster adults do not qualify as remaining members of a family.
3 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.”
PHA Policy
PHA-approved spouse/partner or co-head will “inherit” the voucher in the event of the death of the head of household if the spouse/partner has been part of the assisted family for the past 12 months or has been part of the family throughout the term of assistance.
If the head of household passes away and there is no spouse/partner/co-head, an approved adult family member may retain the voucher if the family member has been a part of the assisted family for the past 12 months or has continually been part of the family throughout the term of assistance.
The head of household, spouse, and/or partner cannot “give” the voucher to someone who has not been a member of the tenant family for the past 12 months or throughout the term of assistance. 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. Foster children or adults are not family members and do not qualify for the full-time student allowance.
PHA Policy
The time commitment or subject load that is needed to be full-time is defined by the educational institution. If the student is enrolled at two or more institutions of higher education, the student will be considered full time if they are enrolled in the equivalent of a total of 12 units at a community college.
3-I.K. FOSTER CHILDREN AND FOSTER ADULTS
A foster adults are usually persons with disabilities, unrelated to the tenant family, who are unable to live alone is a person who is 18 years of age or older, is unable to live independently due to a debilitating physical or mental condition, and is placed with the family by an authorized placement agency or by judgement, decree, or other order of any court of competent jurisdiction [24 CFR 5.603].
The termA foster child is not specifically defined by the regulations placed with the family by an authorized placement agency (e.g., public child welfare agency) or by judgement, decree, or other order of any court of competent jurisdiction [24 CFR 5.603].
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].
4 CHAPTER 5
BRIEFINGS AND VOUCHER ISSUANCE
5-II.B. DETERMINING FAMILY UNIT (VOUCHER) SIZE [24 CFR 982.402] PHA Policy
The PHA will assign one bedroom to the head of household and spouse/partner, and one bedroom for each additional two persons (including co-head) within the household, except in the following circumstances:
Live-in aides and their family will be allocated a separate bedroom.
Single person families will be allocated one bedroom.
Foster children of the opposite sex will not be required to share a bedroom unless both children are under the age of five and will not be required to share a bedroom with an adult.
The PHA will reference the following chart in determining the appropriate bedroom size for Housing Quality Standards:
Unit Size Persons in Household
(Minimum – Maximum)
1 Bedroom 1-3
2 Bedrooms 2-5
3 Bedrooms 4-7
4 Bedrooms 6-9
5 Bedrooms 8-11
5 CHAPTER 6
INCOME AND SUBSIDY DETERMINATIONS
[24 CFR Part 5, Subparts E and F; 24 CFR 982]
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, whichincludes, with respect to the family:
(1) Go to, or on behalf of, the family head or spouse (even if temporarily absent) or to any other family member; orAll amounts, not specifically excluded in paragraph (b) of this section, received from all sources by each member of the family who is 18 years of age or older or is the head of household or spouse of the head of household, plus unearned income by or on behalf of each dependent who is under 18 years of age, and
(2) Are anticipated to be received from a source outside the family during the 12-month period following admission or annual reexamination effective date; and When the value of net family assets exceeds $51,600 (which amount HUD will adjust annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers) and the actual returns from a given asset cannot be calculated, imputed returns on the asset based on the current passbook savings rate, as determined by HUD.
(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 for The Effect of Welfare Benefit Reduction isare provided in eExhibits 6-1 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)
6 6-I.B. HOUSEHOLD COMPOSITION AND 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”When calculating a household’s income, including asset income, at the time of admission to the program or during interim examinations, PHAs must use anticipated income (current income) (i.e., the family’s estimated income for the upcoming 12-month period). [24 CFR 5.609(a)(2PIH 2023-27)]. Policies related to anticipating annual income are provided below.
Basis of Annual Income Projection
The PHA generally will use current circumstances to determine anticipated income for the coming 12- month period. HUD authorizes the PHA to use other than current circumstances to anticipate income when:
• An imminent change in circumstances is expected [HCV GB, p. 5-17] • It is not feasible to anticipate a level of income over a 12-month period (e.g., seasonal, or cyclic income) [24 CFR 5.609(d)]
• The PHA believes that past income is the best available indicator of expected future income [24 CFR 5.609(d)]
7 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
Day Laborer
A day laborer is an individual hired and paid one day at a time without an agreement that the individual will be hired or work again in the future. [24 CFR 5.603(b)]. Income earned as a day laborer is not considered nonrecurring income and must be included. [24 CFR 5.609(b)(24)] Independent Contractor
An independent contractor is an individual who qualifies as an independent contractor instead of an employee in accordance with the Internal Revenue Code federal income tax requirements and whose earnings are consequently subject to the self-employment tax. Individuals considered “gig workers,” such as babysitters, landscapers, rideshare drivers, and house cleaners are typically considered independent contractors. [24 CFR 5.603(b)
Income earned as a day laborer is not considered nonrecurring income and must be included. [24 CFR
5.609(b)(24)]
Seasonal Worker
A seasonal worker is an individual who is hired into a short-term position and the employment begins about the same time each year. This includes holiday employment, agricultural season jobs, and employment as a lifeguard or ballpark vendor.
Income earned as a seasonal worker is not considered nonrecurring income and must be included.
Income earned as a day laborer is not considered nonrecurring income and must be included. [24 CFR
5.609(b)(24)]
Types of Earned Income Not Counted in Annual Income
Temporary, Nonrecurring, or Sporadic Income [24 CFR 5.609(cb)(924)] 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].Nonrecurring income is income that will not be repeated in the coming year based on information provided by the family. Income received as an independent contractor, day laborer, or seasonal worker is not excluded from income, even if the source, date, or amount of the income varies.
Nonrecurring income includes payments from the U.S. Census Bureau for employment; direct federal or state payments intended for economic stimulus or recovery; refundable tax credits or tax refunds at the time they are received; gifts for significant life events or milestones; non-monetary in-kind donations
8 from a food bank or similar organization; or lump-sum additions to net family assets including but not limited to lottery or other contest winnings.
To be considered nonrecurring, the income must have a distinct end date and not be repeated beyond the coming year. This does not include unemployment income and other types of periodic payments that are received at regular intervals (such as weekly, monthly, or yearly) for a period of greater than one year and can be extended.
PHA Policy
Sporadic income is income that is not received periodically and cannot be reliably predicted.
Sporadic income is also defined temporary, nonrecurring income, including gifts, in which the total of all sources is $1,000 a year or less. Temporary income is defined as lasting no longer than one month and totaling less than $1,000. Nonrecurring income is defined as occurring once or twice per year and totaling less than $1,000. For example, the income of an individual who works occasionally as a handyman would be considered sporadic if future work could not be anticipated and no historic, stable pattern of income existed.
Payments Received for the Care of Foster Children or Foster Adults or State or Tribal Kinship or Guardianship Care Payments
Payments received for the care of foster children or foster adults, or state or Tribal kinship or guardianship care payments, are excluded from annual income. This also applies to Kinship Guardianship Assistance Payments (Kin-GAP), kinship care payments, and other state-based kinship or guardianship payments that are alternatives to traditional foster care programs.[24 CFR 5.609(b)(4) Insurance Payments or Settlements
Insurance payments and settlements for personal or property losses are excluded from annual income.
However, periodic payments paid at regular intervals such as weekly, monthly, or yearly, for a period of greater than one year that are received in lieu of wages for workers’ compensation are included in annual income. [24 CFR 5.609(b)(5)
Civil Action Recoveries or Settlements
Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a family member arising out of law that resulted in a member of the family becoming a person with disabilities are excluded from annual income. Any amounts recovered are excluded irrespective of whether they are received periodically or in a lump sum payment. [24 CFR
5.609(b)(7)
Veterans Regular Aid and Attendance
Aid and Attendance income from the V A to veterans are excluded. This applies only to veterans in need of regular aid and attendance and does not apply to other beneficiaries of the payments, such as a surviving spouse. [24 CFR 5.609(b)(17)]
Home-Based Care Payments for a Family Member with a Disability
9 Payments made or authorized by a state Medicaid agency or other state or federal agency to a family to enable a family member who has a disability to reside in the family’s assisted unit are excluded from the calculation of the family’s annual income. Authorized payments may include payments to a member of the assisted family through the state Medicaid agency, including through a managed-care entity, or other state or federal agency for caregiving services the family member provides to enable a family member who has a disability to reside in the family’s assisted unit. [24 CFR 5.609(b)(19)]
Certain Payments Received by Tribal Members
Payments received by Tribal members, to the extent that such payments are excluded from gross income under the Internal Revenue Code (IRC), must be excluded from annual income. Examples include the Cobell Settlement or Tribal Trust Settlements. [24 CFR 5.609(b)(21)]
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 Disregard (EID) will not apply to any family who is not eligible for and already participating in the disallowance as of December 31, 2024. The EID allowed eligible families to have a portion of their earned income excluded from annual income for a maximum period of 24 consecutive months. Families who were receiving the EID benefit as of December 31, 2024, may continue to receive the full benefit until the remaining timeframe for an individual family’s EID expires. Because the EID lasts up to 24 consecutive months, no family will still be receiving an EID benefit after December 31, 2026.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 5.617 611 is included as Exhibit 6-4 at the end of this chapter. Eligibility criteria and limitations on the disallowance are summarized below.
6-I.G. ASSETS [24 CFR 5.609603(b)(3); 24 CFR 5.603(b)(4)] 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 assets and how the income from the various types of assets is are determined. For most types of assets, tThe PHA must determine if assets are included or excluded from the calculations. If they are included, the PHA must then determine the value of the asset in order to compute income from the asset. Therefore, for each asset type, this section discusses:
• Excluded assets
• For included assets,
• How the value of the asset will be determined
• How income from the asset will be calculated
10 Exhibit 6-1 provides the regulatory requirements for calculating income from assets [24 CFR
5.609(b)(3)], and Exhibit 6-31 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.
11 12
General Policies
Income from Assets
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
29 30
31 32
33 34
35 36
37 38
39 40
41 42
CHAPTER 7
VERIFICATION
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]
43 7-I.C. UP-FRONT INCOME VERIFICATION (UIV)
Upfront Income Verification Using HUD’s Enterprise Income Verification (EIV) System (Mandatory)
EIV Income and IVT Reports
44 Upfront Income Verification Using Non-HUD Systems
7-I.DE. THIRD-PARTY WRITTEN AND ORAL VERIFICATION
7-I.EF. SELF-CERTIFICATION
PART II: VERIFYING FAMILY INFORMATION
7-II.A. VERIFICATION OF LEGAL IDENTITY
45 46
7-II.B. SOCIAL SECURITY NUMBERS [24 CFR 5.216, Notice PIH 2018-24]
7-III.B. BUSINESS AND SELF EMPLOYMENT INCOME
PHA Policy
47 CHAPTER 8
HOUSING QUALITY STANDARDS AND RENT REASONABLENESS
DETERMINATIONS
[24 CFR 982 Subpart I and 24 CFR 982.507]
8-II.C. ANNUAL/BIENNIAL HQS INSPECTIONS [24 CFR 982.405 and 982.406; Notice PIH 2016-05]
Scheduling the Inspection
PHA Policy
If an adult cannot be present on the scheduled date, the family should request that the PHA reschedule the inspection. The PHA and family will agree on a new inspection date that generally should take place within five business days of the originally scheduled date. The PHA may schedule an inspection more than five business days after the original date for good cause.
48 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.
Upon a second missed inspection, the PHA will propose termination of assistance. A Mandatory Tenant Conference (MTC) will not be scheduled.
HAP Abatement
If an owner fails to correct HQS deficiencies by the time specified by the PHA, HUD requires the PHA to abate housing assistance payments no later than the first of the month following the specified correction period (including any approved extension) [24 CFR 985.3(f)]. No retroactive payments will be made to the owner for the period of time the rent was abated. Owner rents are not abated as a result of HQS failures that are the family's responsibility.
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. The PHA will also accept an HQS repairs self-certification form signed by both the landlord and the participant. Payment will resume effective on the day the owner notified the PHA that the repairs have been made, provided the inspection passes if one was conducted.
CHAPTER 9
GENERAL LEASING POLICIES
9-I.H. CHANGES IN LEASE OR RENT [24 CFR 982.308]
49 CHAPTER 10
MOVING WITH CONTINUED ASSISTANCE AND PORTABILITY
10-I.C. MOVING PROCESS
PART II: PORTABILITY
50 CHAPTER 11
REEXAMINATIONS
11-I.C. SCHEDULING ANNUAL REEXAMINATIONS
51 52
11-II.B. CHANGES IN FAMILY AND HOUSEHOLD COMPOSITION –
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)].
When any new family member is added, the PHA must make appropriate adjustments in the family share of the rent and the HAP payment at the effective date of either the annual or interim reexamination [24 CFR 982.516(e)(2)].
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 as soon as possible. If an acceptable unit is available for rental by the family, the PHA must terminate the family’s HAP contract in accordance with its terms [24 CFR 982.403].
53 54
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
Program participants must report all changes of income within 10 business days of the date the change takes effect. The PHA will conduct interim reexaminations in each of the following instances:
For families receiving the Earned Income Disallowance (EID) that were approved prior to January 1, 2025, the PHA will conduct an interim reexamination at the end of
55 56
57 11-II.D. PROCESSING THE INTERIM REEXAMINATIOM
58 PART III: RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT
11-III.D. DISCREPANCIES
CHAPTER 12
TERMINATION OF ASSISTANCE AND TENANCY
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 automatically terminates 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 of the changewithin 10 business days of the date the change takes effect and request an interim reexamination before the expiration of the 180-day period.
Failure to Provide Consent [24 CFR 982.552(b)(3)]
59 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.
Revocation of Consent Forms [24 CFR 5.230(c)(5)(iii) and 5.232(c)] In accordance with the provisions governing the programs involved, if the applicant or participant, or any member of the applicant or participant family, does not sign and submit consent forms or revokes his/her consent with respect to the ability of the PHA to access financial records from financial institutions, the PHA may establish policies to deny admission or terminate assistance.
PHA Policy
If any family member who is required to sign a consent form fails to do so, or revokes their consent, the PHA will deny admission to the applicants and terminate assistance of the participants. This includes but is not limited to the HUD 9886 and the HUD 52675. The family may request an informal review (applicants) or informal hearing (participants) in accordance with PHA procedures.
CHAPTER 14
PROGRAM INTEGRITY
PART II: CORRECTIVE MEASURES AND PENALTIES
14-II.A. SUBSIDY UNDER- OR OVERPAYMENTS
A subsidy under- or overpayment includes (1) an incorrect housing assistance payment to the owner, (2) an incorrect family share established for the family, and (3) an incorrect utility reimbursement to a family.
Corrections
Whether the incorrect subsidy determination is an overpayment or underpayment of subsidy, the PHA must promptly correct the HAP, family share, and any utility reimbursement prospectively.
PHA Policy
Increases in the family share will be implemented on the first of the month following a written 30-day notice.
• If the error is caused by the family, the increase will be effective retroactive to the first of the month following the date when the change of income takes effect.
Any decreases in family share will become effective the first of the month following the discovery of the error.
60 • If the error is caused by the family, the decrease will be effective the first of the month after the PHA receives the required and completed information.
14-II.D. PHA-CAUSED ERRORS OR PROGRAM ABUSE
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].
PHA Policy
For PHA caused errors, the PHA will reimburse families for underpayment of subsidies by checks.
CHAPTER 15
SPECIAL HOUSING TYPES
PART VI: MANUFACTURED HOMES
15-VI.A. OVERVIEW
A manufactured home is a manufactured structure, transportable in one or more parts, that is built on a permanent chassis, and designed for use as a principal place of residence. HCV-assisted families may occupy manufactured homes in two three different ways [PIH 2017-18]. (1) (1) Regular rental assistance: A family can choose to rent a manufactured home already installed on a space and the PHA must permit it. In this instanceinstance, 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) Homeownership voucher assistance: The family purchases the manufactured home under the homeownership voucher program and the program assists the family with their monthly homeownership expenses. The PHA is not required to provide this type of assistance as part of its HCV program, except if needed as a reasonable accommodation.
(23) Manufactured home space rental assistance: 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 POLICIES FOR MANUFACTURED HOME OWNERS WHO LEASE A SPACE
61 Family Income
In determining the annual income of families leasing manufactured home spaces, the value of the family’s equity in the manufactured home in which the family resides is not counted as a family asset.
Lease and HAP Contract
There is a separate Tenancy Addendum (Form 52642-a) and separate HAP Contract (Form 52642) for this special housing type.
The Monthly HAP for a manufactured home space rental is the lower of:
a) The PHA payment standards minus the family’s total tenant payment; or b) The rent of the manufactured home space (including other eligible housing expenses) minus the family total tenant payment.
Explanation of Change: Updating HUD regulation verbiage
CHAPTER 16
PROGRAM ADMINISTRATION
"Success Rate" Payment Standard Amounts [24 CFR 982.503(ef)] 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 participants; • 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.
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. HUD will no longer approve success rate payment standards.
However, a PHA that was approved to establish a success rate payment standards amount under this paragraph in effect prior to June 6, 2024 shall not be required to reduce such payment standards amount as a result of the discontinuance of success rate payment standards.
PHA Policy
62 Fairfield Housing Authority does not have a “Success Rate” payment standards.
Explanation of Change: Update due to HOTMA regulation change 16-IV .B. REPAYMENT POLICY
Payment Thresholds
Notice PIH 2017-122018-18 recommends that the total amount that a family must pay each month—the family’s monthly share of rent plus the monthly debt repayment amount—should not exceed 40 percent of the family’s monthly adjusted income. However, a family may already be paying 40 per cent or more of its monthly adjusted income in rent. Moreover, Notice PIH 2017-122018-18 acknowledges that PHAs have the discretion to establish “thresholds and policies” for repayment agreements with families [24 CFR 982.552(c)(1)(vii)].
Notice PIH 2018-18 mandates that if the family refuses to enter into a repayment agreement or fails to make payments on an existing or new repayment agreement, the PHA must terminate the family’s assistance. HUD does not authorize any PHA-sponsored amnesty or debt forgiveness programs.
Explanation of Change: Updating HUD Regulation verbiage
63 Explanation of Change: Updating PHA Policy and HUD regulations
17-III.D. INSPECTING UNITS
Explanation of Change: Allowing additional time for occupancy and reducing PHA costs.