Needles City Council
September 12, 2023

(ACT) ACTION NEEDED
(INF) INFORMATION ONLY
(DIS) DISCRETIONARY
AGENDA

REGULAR MEETING OF THE CITY COUNCIL

NEEDLES PUBLIC UTILITY AUTHORITY

HOUSING AUTHORITY CITY OF NEEDLES

CITY OF NEEDLES, CALIFORNIA

CITY COUNCIL CHAMBERS
1111 BAILEY AVENUE, NEEDLES
TUESDAY, SEPTEMBER, 12, 2023
COUNCIL EXECUTIVE SESSION – 5:00 P.M.

CITY COUNCIL MEETING – 6:00 PM

THE PUBLIC MAY ATTEND VIA TEAMS AND MAY SUBMIT ANY COMMENTS IN WRITING PRIOR TO NOON ON THE DAY OF THE MEETING BY EMAILING [email protected] TO JOIN THE LIVE TEAMS MEETING: log into the City of Needles website at www.cityofneedles.com to access the agenda and Click here to join the meeting If asked, enter the following: Meeting ID: 165 020 131# OR listen in and participate by calling Teams: 1-323-488-2227 - Meeting ID: 165 020 131# The meetings are being recorded.

CALL TO ORDER

ROLL CALL

RECESS THE CITY COUNCIL MEETING AND CONVENE A JOINT COUNCIL / NPUA / HACN

MEETING
PUBLIC COMMENTS PERTAINING TO THE EXECUTIVE SESSION ITEMS (A three-minute time limit per person has been established.)

RECESS TO EXECUTIVE SESSION

EXECUTIVE SESSION
a) NPUA / COUNCIL: Conference with Legal Counsel regarding existing litigation pursuant to Government Code §54956.9(d)(1) (one case: Rio Buena Vista Assoc. Et. Al. v. City of Needles: Case Number CIVSB 2028439)
b) NPUA / COUNCIL: Conference with Legal Counsel Regarding Potential Initiation of Litigation Pursuant to Government Code §54956.9(d)(4). (one potential case) c) COUNCIL: Conference with Legal Counsel Regarding Potential Initiation of Litigation Pursuant to Government Code Section 54956.9(d)(4). One case
d) COUNCIL: Conference with real property negotiator pursuant to Government Code §54956.8:

Agency negotiator City Manager Rick Daniels or his designee. Negotiating Parties are the City of Needles as the potential lessor and The LAMAR Companies as the potential lessee of the property located on APN 0186-201-03-0000 generally located near Arizona Avenue and I-40.

Under negotiations are the price and terms
EXECUTIVE SESSION – Report by City Attorney
1 CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

INVOCATION

APPROVAL OF AGENDA

CONFLICT OF INTEREST

CORRESPONDENCE

INTRODUCTIONS
CITY ATTORNEY – Parliamentary Procedures
As a courtesy to those in attendance, we would ask that cell phones be turned off or set in their silent mode. Thank you
PUBLIC APPEARANCE - Persons wishing to address the City Council / NPUA / HACN on subjects other than those scheduled are requested to do so at this time. When called by the Mayor, please announce your name and address for the record. In order to conduct a timely meeting, a three-minute time limit per person has been established by Municipal Code Section 2-18. Amendments to the California Government Code Section 54950 prohibits the City Council from taking action on a specific item until it appears on the agenda.

PRESENTATIONS
(A ten-minute time limit per presentation has been established per Municipal Code Section 2-18.) 1) Administer Oath of Office to Nancy Huff, Director of Development Services and Angelica Deermer, Housing Authority Manager

PUBLIC COMMENTS PERTAINING TO THE HACN / COUNCIL ITEMS
A three-minute time limit per person has been established.

HACN / COUNCIL CONSENT CALENDAR: All matters listed on the Consent Calendar are considered to be routine and will be enacted by one motion in the form listed. The Mayor or any member of the HACN / City Council may pull an item from the Consent Calendar for discussion. Prior to HACN / Council action, a member of the public may address the HACN / City Council on matters scheduled on the Consent Calendar. A three-minute time limit per person applies. Recommended Action: Approve Items 2 through 3 on the Consent Calendar by affirmative roll call vote. (ACT) 2) Authorize implementation of new policy for pre-employment background checks of prospective employees in the position of Maintenance Construction Worker assigned to the Housing Authority of the City of Needles
3) Waive the reading and adopt Resolution No. 2023-53 naming the Needles City Manager as the Executive Director of the Housing Authority of the City of Needles End of Consent

PUBLIC HEARINGS
4) COUNCIL: Public hearing noticed to consider all evidence and testimony for or against an update to the Needles Zoning Code Development Standards has been continued to October 10, 2023
5) COUNCIL: Public hearing noticed to consider all evidence and testimony for or against amending Section 13-44 to prohibit stopping, standing or parking at the Electric Vehicle Charging Stations unless the vehicle is connected for electric charging  Staff Report
2  Council Questions of Staff
 Mayor to open the public hearing
 Public Comment
 Mayor to close the public hearing
 Council Discussion / Deliberation
 Ordinance No. 664-AC amending Section 13-44 to prohibit stopping, standing or parking at the Electric Vehicle Charging Stations unless the vehicle is connected for electric charging violators are subject to towing (ACT)
6) HOUSING AUTHORITY: Public hearing noticed to consider all evidence and testimony for or against the Housing Authority Civil Rights Certification Housing Plan  Staff Report
 Council Questions of Staff
 Mayor to open the public hearing
 Public Comment
 Mayor to close the public hearing
 Council Discussion / Deliberation
 Accept and File the Civil Rights Certification with the United States Department of Housing and Urban Development (ACT)

PUBLIC COMMENTS PERTAINING TO THE COUNCIL / NPUA ITEMS
A three-minute time limit per person has been established.

NPUA / COUNCIL CONSENT CALENDAR: All matters listed on the Consent Calendar are considered to be routine and will be enacted by one motion in the form listed. The Mayor or any member of the NPUA / City Council may pull an item from the Consent Calendar for discussion. Prior to NPUA / Council action, a member of the public may address the NPUA / City Council on matters scheduled on the Consent Calendar. A three-minute time limit per person applies. Recommended Action: Approve Items 7 through 9 on the Consent Calendar by affirmative roll call vote. (ACT) 7) Accept the AB32 Greenhouse Gas (GHG) Emission Verification Report 2022 Emissions prepared by WZI Inc. and authorize the Mayor to send a letter to CARB ard requesting a review of the unintended financial hardship and provide relief to avoid such financial hardship 8) Authorize Brooks Consulting Electrical Engineering support services for FY24 not to exceed $15,000 to be funded by electric operations and maintenance budget 9) Adopt the Energy Efficiency Rebate Program dated September 12, 2023 End of Consent

ADJOURN THE JOINT COUNCIL / NPUA / HACN MEETING AND RECONVENE THE CITY COUNCIL

MEETING

PUBLIC COMMENTS PERTAINING TO THE COUNCIL ITEMS
A three-minute time limit per person has been established.

CONSENT CALENDAR All matters listed on the Consent Calendar are considered to be routine and will be enacted by one motion in the form listed. The Mayor or any member of the City Council may pull an item from the Consent Calendar for discussion. Prior to Council action, a member of the public may address the City Council on matters scheduled on the Consent Calendar. A three-minute time limit per person applies. RECOMMENDED ACTION: Approve Items 10 through 23 on the Consent Calendar by affirmative roll call vote. (ACT)
3 10) Approve the Warrants Registers dated August 22 and September 12, 2023 11) Approve the Minutes of August 8, 2023
12) Approve Second Amendment to On-Call Development Review Consulting Services Agreement between the City and Michael Baker International for Planning Consultant Services in the amount not to exceed $80,000
13) Waive the reading and adopt Resolution No. 2023-50 authorizing the city manager or his designee, the community services manager, to purchase one (1) 18-Passenger Transit Vehicle for use by the Needles Area Transit budgeted at $170,000 to be reimbursed by SBCTA 14) Waive the reading and adopt resolution No. 2023-49 approving the Title VI Compliance Plan for the Needles Area Transit
15) Ratify the agreement with Nichols Consulting to continue applying for State of California reimbursements for state mandated costs to the city, increase the General Fund FY 24 by $52,493, approve the 20 percent contingency of $10,500 payable to Nichols Consulting and future revenue and expenses as needed
16) Authorize the Mayor to sign a petition supporting Senate Bill 14 to combat human trafficking 17) Approve a single source purchase from Vintage Vehicle Restorations Inc for $16,775, sales tax of $1,301 and estimated shipping of $500 for a total of $18,576 for the Fire Truck restoration using funds from the general fund reserves
18) Award the base bid for the Jack Smith Park Walking / Biking Trail Improvements project to Western Construction Specialist, Inc. for a total bid amount of $134,965.30, total project cost of $148,462 including 10% contingency, funded by a grant awarded by the California Department of Parks and Recreation through the 2018 Parks Bond Act per capital program and authorize staff to execute a Public Works Agreement with the Contractor and issue a Notice of Award and Notice to Proceed
19) Award the base bid for the Duke Watkins Park Pump Track project to Three Peaks Corp. for a total bid amount of $534,716 funded by a grant awarded by the Statewide Park Development and Community Revitalization Program and authorize staff to execute a Public Works Agreement and issue a Notice of Award and Notice to Proceed
20) Waive the reading and adopt Resolution No. 2023-54 accepting the purchase and sale agreement between the city and Robert Raskin, representative of Colorado River Properties LLC, with respect to the real property located at the Southeast Corner of East South Lake Drive and South Riverfront Parkway, Mohave Valley, Arizona also known as Mohave County Assessor’s Parcel No. 216-14-007
21) Ratify the action taken by the City Manager to accept grant funding for the City Hazard Mitigation Plan update from the California Governor’s Office of Emergency Services (Cal OES) for the FEMA Hazard Mitigation Grant Program (HMGP) and waive the reading and adopt Resolution No. 2023-52 for Designation of Applicant’s Agent to execute for and on behalf of the City for the purpose of obtaining Federal Financial Assistance for any existing or future grant program listed in the resolution
22) Waive the reading and adopt Resolution No. 2023-51 authorizing the city manager or designee to submit an application and accept funding for Strategic Growth Council (SGC) under the Community Resilience Center (CRC) Program
4 23) Authorize the Mayor to send a letter in support of Permanent Implementation of Daylight Savings Time

END OF CONSENT CALENDAR

REGULAR COUNCIL ITEMS
24) Waive the reading and adopt Ordinance No. 662-AC amending Chapter 9 “Fire Protection” Section 9-1 to adopt the San Bernardino County Fire Protection District Fire Ordinance FPD 23- 01 referencing its version of the 2022 Edition of the California Fire Code subject to modifications referenced herein and rescinding prior Ordinance No. 630-AC (2nd reading – publish) (ACT)
25) Provide staff direction regarding parking alternatives for the El Garces on “G” Street and Front Street (ACT)
26) Provide staff direction regarding parking alternatives on Lilly Hill Drive west of Clary Drive (ACT) 27) Provide staff direction on Tentative Parcel Map 20388 subdividing 6.5 acres +/- into 2 parcels located in the R2 (Two Family Residential Zone), APN 0185-233-55 located behind 1335 Lilly Hill Drive and consider possible sale (ACT)
28) Provide staff direction regarding the El Garces operational policies and procedures (ACT) 29) Concur with the creation of a Utility Manager position, setting employment terms and conditions, and endorse the City Manager’s intent to appoint Rainie Torrance as Utility Manager effective October 6, 2023 – salary $185,000 as adjusted by the city manager on an annual basis in compliance with SB1436 and incorporate into the salary schedule for FY 2023-2024 budget (ACT) Presentation to City Manager Rick Daniels

CITY ATTORNEY REPORT

CITY CLERK REPORT

CITY MANAGER REPORT

COUNCIL REQUESTS
Councilmember Campbell
Councilmember McCorkle
Vice Mayor Merritt
Council Member Pogue
Councilmember Longbrake
Mayor Jernigan

ADJOURNMENT

INTERNET ACCESS TO CITY COUNCIL AGENDAS AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT: HTTP://WWW.CITYOFNEEDLES.COM Posted: September 8, 2023
SB 343-DOCUMENTS RELATED TO OPEN SESSION AGENDAS -- Any public record, relating to an open session agenda item, that is distributed within 72 hours prior to the meeting is available for public inspection at the City Clerk’s Office, 817 Third Street, Needles, CA 92363.

In compliance with the American with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (760) 326-2113 ext 145. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting (28 CFR 35.102-104 ADA Title II).
5 I hereby certify, under penalty of perjury under the laws of the State of California that the foregoing Agenda was posted at the front entrance of City Hall not less than 72 hours prior to the meeting.

Dated this 8th day of September, 2023
/s/        Dale Jones, CMC, City Clerk
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10 Item 5.
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13 Item 6.
14 Item 6.

ADMINISTRATIVE PLAN

FOR THE

HOUSING CHOICE VOUCHER PROGRAM
Approved by the HACSB Board of Commissioners: January 8, 2014 Amended by the HACSB Board of Commissioners: May 7, 2014 Amended by the HACSB Board of Commissioners: January 7, 2015 Amended by the HACSB Board of Commissioners: December 7, 2016 Amended by the HACSB Board of Commissioners:  October 4, 2017 Amended by the HACSB Board of Commissioners:  August 1, 2018 15 Item 6.

Copyright 2016 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.
16 Item 6.

Administrative Plan ‐Table of Contents
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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 17 Item 6.

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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 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 18 Item 6.

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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 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 19 Item 6.

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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, FR Notice 9/21/16]........................ 3‐17 Definitions....................................................................................... 3‐17 Determining Student Eligibility....................................................... 3‐21 PART III: DENIAL OF ASSISTANCE ........................................................................................ 3‐23 3‐III.A. Overview............................................................................................... 3‐23 Forms of Denial [24 CFR 982.552(a)(2); HCV GB, p. 5‐35].............. 3‐23 Prohibited Reasons for Denial of Program Assistance
[24 CFR 982.202(b), 24 CFR 5.2005(b)]........................................... 3‐23 3‐III.B. Mandatory Denial of Assistance [24 CFR 982.553(a)].......................... 3‐24 3‐III.C. Other Permitted Reasons for Denial of Assistance .............................. 3‐25 Criminal Activity [24 CFR 982.553] ................................................. 3‐25 Previous Behavior in Assisted Housing [24 CFR 982.552(c)] .......... 3‐26 3‐III.D. Screening .............................................................................................. 3‐27 Screening for Eligibility ................................................................... 3‐27 Screening for Suitability as a Tenant [24 CFR 982.307].................. 3‐28 3‐III.E. Criteria for Deciding to Deny Assistance .............................................. 3‐29 Evidence [24 CFR 982.553(c)]......................................................... 3‐29 Consideration of Circumstances [24 CFR 982.552(c)(2)]................ 3‐29 Removal of a Family Member's Name from the Application ......... 3‐31 Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)]................ 3‐31 3‐III.F. Notice of Eligibility or Denial ................................................................ 3‐32 20 Item 6.

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3‐III.G. Prohibition Against Denial of Assistance to Victims of Domestic Violence, Dating Violence, Sexual Assault, and Stalking ...................................... 3‐33 Notification ..................................................................................... 3‐33 Documentation............................................................................... 3‐34 Exhibit 3‐1: Detailed Definitions Related to Disabilities.......................................................... 3‐35 Person with Disabilities [24 CFR 5.403].......................................... 3‐35 Individual with Handicaps [24 CFR 8.3] .......................................... 3‐37 Exhibit 3‐2: Definition of Institution of Higher Education [20 U.S.C 1001 and 1002] ............... 3‐39 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] ....................................... 3‐39 21 Item 6.

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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 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 22 Item 6.

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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 23 Item 6.

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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 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 24 Item 6.

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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 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 25 Item 6.

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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 26 Item 6.

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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 27 Item 6.

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Eligible Immigrants......................................................................... 7‐20 7‐II.H. Verification of Preference Status.......................................................... 7‐20 28 Item 6.

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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 29 Item 6.

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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);
FR Notice 1/18/17] ................................................................................. 8‐6 8‐I.D. Owner and Family Responsibilities [24 CFR 982.404] ............................ 8‐9 Family Responsibilities...................................................................... 8‐9 Owner Responsibilities..................................................................... 8‐7 8‐I‐E. Special Requirements for Children with Environmental Intervention Blood Lead Level [24 CFR 35.1225;
FR Notice 1/13/17] ............................................................................... 8‐10 8‐I‐F. Violation of HQS Space Standards
[24 CFR 982.401, 24 CFR 982.403]........................................................ 8‐10 PART II: THE INSPECTION PROCESS.................................................................................... 8‐11 8‐II.A. Overview [24 CFR 982.405] .................................................................. 8‐11 Types of Inspections....................................................................... 8‐11 Inspection of PHA‐Owned Units [24 CFR 982.352(b)].................... 8‐11 Inspection Costs [Notice PIH 2016‐05]........................................... 8‐12 Notice and Scheduling .................................................................... 8‐12 Owner and Family Inspection Attendance ..................................... 8‐12 8‐II.B. Initial HQS Inspection [24 CFR 982.401(a)]........................................... 8‐13 Initial Inspections [FR Notice 1/18/17]........................................... 8‐13 Timing of Initial Inspections............................................................ 8‐13 Inspection Results and Reinspections ............................................ 8‐13 Utilities............................................................................................ 8‐14 Appliances [Form HUD‐52580]....................................................... 8‐14 8‐II.C. Annual/Biennial HQS Inspections [24 CFR 982.405 and 982.406; Notice PIH 2016‐05].............................................................................. 8‐15 Scheduling the Inspection............................................................... 8‐15 8‐II.D. Special Inspections [24 CFR 982.405(g)]............................................... 8‐15 8‐II.E. Quality Control Inspections [24 CFR 982.405(b), HCV GB p. 10‐32] .................................................................................. 8‐16 30 Item 6.

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8‐II.F. Inspection Results and Reinspections for Units Under HAP Contract......................................................................................... 8‐16 Notification of Corrective Actions.................................................. 8‐16 Extensions....................................................................................... 8‐17 Reinspections.................................................................................. 8‐17 8‐II.G. Enforcing Owner Compliance ............................................................... 8‐18 HAP Abatement .............................................................................. 8‐18 HAP Contract Termination.............................................................. 8‐18 8‐II.H. Enforcing Family Compliance with HQS [24 CFR 982.404(b)] .............. 8‐18 PART III: RENT REASONABLENESS [24 CFR 982.507]........................................................... 8‐19 8‐III.A. Overview............................................................................................... 8‐19 PHA‐Owned Units [24 CFR 982.352(b)].......................................... 8‐19 8‐III.B. When Rent Reasonableness Determinations Are Required................. 8‐20 Owner‐Initiated Rent Determinations............................................ 8‐20 PHA‐ and HUD‐Initiated Rent Reasonableness Determinations.... 8‐20 LIHTC‐ and HOME‐Assisted Units [24 CFR 982.507(c)  ................... 8‐21 8‐III.C. How Comparability Is Established ........................................................ 8‐21 Factors to Consider......................................................................... 8‐21 Units that Must Not be Used as Comparables............................... 8‐21 Rents Charged for Other Units on the Premises............................ 8‐22 8‐III.D. PHA Rent Reasonableness Methodology ............................................. 8‐23 How Market Data Is Collected........................................................ 8‐23 How Rents Are Determined............................................................ 8‐23 Exhibit 8‐1: Overview of HUD Housing Quality Standards....................................................... 8‐25 Exhibit 8‐2: Summary of Tenant Preference Areas Related to Housing Quality ..................... 8‐29 31 Item 6.

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Chapter 9

GENERAL LEASING POLICIES
9‐I.A. Tenant Screening .................................................................................... 9‐2 9‐I.B. Requesting Tenancy Approval [Form HUD‐52517] ................................ 9‐3 9‐I.C. Owner Participation................................................................................ 9‐4 9‐I.D. Eligible Units ........................................................................................... 9‐5 Ineligible Units [24 CFR 982.352(a)] ................................................. 9‐5 PHA‐Owned Units [24 CFR 982.352(b)]............................................ 9‐5 Special Housing Types [24 CFR 982 Subpart M]............................... 9‐5 Duplicative Assistance [24 CFR 982.352(c)]...................................... 9‐6 Housing Quality Standards (HQS) [24 CFR 982.305 and
24 CFR 982.401]................................................................................ 9‐6 Unit Size ............................................................................................ 9‐7 Rent Reasonableness [24 CFR 982.305 and 24 CFR 982.507] .......... 9‐7 Rent Burden [24 CFR 982.508] ......................................................... 9‐7 9‐I.E. Lease and Tenancy Addendum............................................................... 9‐8 Lease Form and Tenancy Addendum [24 CFR 982.308]................... 9‐8 Lease Information [24 CFR 982.308(d)]............................................ 9‐8 Term of Assisted Tenancy................................................................. 9‐9 Security Deposit [24 CFR 982.313 (a) and (b)].................................. 9‐9 Separate Non‐Lease Agreements between Owner and Tenant..... 9‐10 PHA Review of Lease....................................................................... 9‐11 9‐I.F. Tenancy Approval [24 CFR 982.305]..................................................... 9‐12 9‐I.G. HAP Contract Execution [24 CFR 982.305] ........................................... 9‐13 9‐I.H. Changes in Lease or Rent [24 CFR 982.308] ......................................... 9‐14 32 Item 6.

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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 2016‐09] ................................ 10‐13 Monthly Billing Payments [Notice PIH 2016‐09] .......................... 10‐14 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......................................................... 10‐22 33 Item 6.

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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 34 Item 6.

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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 35 Item 6.

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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 36 Item 6.

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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 37 Item 6.

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Chapter 14

PROGRAM INTEGRITY
PART I: PREVENTING, DETECTING, AND INVESTIGATING ERRORS AND PROGRAM ABUSE14‐3 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 38 Item 6.

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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; FR Notice 1/18/17]............................................................................................. 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 [FR Notice 1/18/17] ............................................................................ 15‐14 Payment Standards....................................................................... 15‐14 Utility Allowance........................................................................... 15‐14 Space Rent .................................................................................... 15‐14 Amortization Costs ....................................................................... 15‐15 Housing Assistance Payment........................................................ 15‐15 Rent Reasonableness.................................................................... 15‐15 15‐VI.D. Housing Quality Standards ................................................................. 15‐16 39 Item 6.

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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 40 Item 6.

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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 41 Item 6.

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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 42 Item 6.

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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......................................... 16‐48 16‐IX.D. Documentation [24 CFR 5.2007]........................................................... 16‐49 Conflicting Documentation [24 CFR 5.2007(e)]............................ 16‐50 Discretion to Require No Formal Documentation
[24 CFR 5.2007(d)] ........................................................................ 16‐50 Failure to Provide Documentation [24 CFR 5.2007(c)]................. 16‐50 16‐IX.E. CONFIDENTIALITY [24 CFR 5.2007(b)(4)]............................................... 16‐51 Exhibit 16‐1: Sample Notice of Occupancy Rights Under the Violence Against Women Act, Form HUD‐5380 ........................................................................................................... 16‐53 Exhibit 16‐2: Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking and Alternate Documentation, Form HUD‐5382 ...................................................... 16‐61 Exhibit 16‐3: NMA Emergency Transfer Plan for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking (HCV Version) .......................................................... 16‐63 Exhibit 16‐4: Emergency Transfer Request for Certain Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking, Form HUD‐5383...................................... 16‐69 Exhibit 16‐5: Sample Notice to Housing Choice Voucher Owners and Managers Regarding the Violence Against Women Act (VAWA)............................................................... 16‐73 43 Item 6.

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Chapter 17
PROJECT‐BASED VOUCHERS
PART I: GENERAL REQUIREMENTS .................................................................................... 17‐3 17‐I.A. Overview [24 CFR 983.5] ...................................................................... 17‐3 Additional Project‐Based Units [FR Notice 1/18/17]...................... 17‐3 Units Not Subject to the PBV Program Limitation
[FR Notice 1/18/17] ........................................................................ 17‐4 17‐I.B. Tenant‐Based vs. Project‐Based Voucher Assistance [24 CFR 983.2]....................................................................................... 17‐5 17‐I.C. Relocation Requirements [24 CFR 983.7]............................................. 17‐5 17‐I.D. Equal Opportunity Requirements [24 CFR 983.8] ................................ 17‐5 PART II: PBV OWNER PROPOSALS ...................................................................................... 17‐7 17‐II.A.   Overview............................................................................................... 17‐7 17‐II.B. Owner Proposal Selection Procedures [24 CFR 983.51(b)].................. 17‐7 Units Selected Non‐Competitively [FR Notice 1/18/17]................. 17‐7 Solicitation and Selection of PBV Proposals
[24 CFR 983.51(c)]........................................................................... 17‐8 PHA‐Owned Units [24 CFR 983.51(e), 983.59,
Notice PIH 2015‐05, and FR Notice 1/18/17]............................... 17‐11 PHA Notice of Owner Selection [24 CFR 983.51(d)]..................... 17‐12 17‐II.C. Housing Type [24 CFR 983.52]............................................................ 17‐12 17‐II.D. Prohibition of Assistance for Certain Units ........................................ 17‐13 Ineligible Housing Types [24 CFR 983.53]..................................... 17‐13 Subsidized Housing [24 CFR 983.54]............................................. 17‐13 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] ...................................................................... 17‐14 17‐II.F. Cap On Number of PBV Units in Each Project  ................................... 17‐15 25 Percent per Project Cap [24 CFR 983.56(a)]............................ 17‐15 Exceptions to 25 Percent per Project Cap
[FR Notice 1/18/17] ...................................................................... 17‐15 Projects not Subject to a Project Cap [FR Notice 1/18/17].......... 17‐16 Promoting Partially‐Assisted Projects
[24 CFR 983.56(c)]......................................................................... 17‐16 17‐II.G. Site Selection Standards  .................................................................... 17‐17 Compliance with PBV Goals, Civil Rights Requirements,
and HQS Site Standards [24 CFR 983.57(b)]................................. 17‐17 Existing and Rehabilitated Housing Site and Neighborhood Standards [24 CFR 983.57(d)]....................................................... 17‐18 New Construction Site and Neighborhood Standards
[24 CFR 983.57(e)] ........................................................................ 17‐18 17‐II.H. Environmental Review [24 CFR 983.58] ............................................. 17‐19 44 Item 6.

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PART III: DWELLING UNITS ................................................................................................ 17‐21 17‐III.A. Overview............................................................................................. 17‐21 17‐III.B. Housing Quality Standards [24 CFR 983.101]..................................... 17‐21 Lead‐based Paint [24 CFR 983.101(c)].......................................... 17‐21 17‐III.C. Housing Accessibility for Persons with Disabilities............................. 17‐21 17‐III.D. Inspecting Units.................................................................................. 17‐22 Pre‐selection Inspection [24 CFR 983.103(a)] .............................. 17‐22 Pre‐HAP Contract Inspections [24 CFR 983.103(b);
FR Notice 1/18/17] ....................................................................... 17‐22 Turnover Inspections [24 CFR 983.103(c)] ................................... 17‐22 Annual/Biennial Inspections [24 CFR 983.103(d),
FR Notice 6/25/14] ....................................................................... 17‐22 Other Inspections [24 CFR 983.103(e)]......................................... 17‐23 Inspecting PHA‐Owned Units [24 CFR 983.103(f)] ....................... 17‐23 PART IV: REHABILITATED AND NEWLY CONSTRUCTED UNITS .......................................... 17‐25 17‐IV.A. Overview [24 CFR 983.151] ................................................................ 17‐25 17‐IV.B. Agreement to Enter into HAP Contract.............................................. 17‐25 Content of the Agreement [24 CFR 983.152(d)] .......................... 17‐26 Execution of the Agreement
[24 CFR 983.153]........................................................................... 17‐26 17‐IV.C. Conduct of Development Work.......................................................... 17‐27 Labor Standards [24 CFR 983.154(b)]........................................... 17‐27 Equal Opportunity [24 CFR 983.154(c)]........................................ 17‐27 Owner Disclosure [24 CFR 983.154(d) and (e)] ............................ 17‐27 17‐IV.D. Completion of Housing ....................................................................... 17‐28 Evidence of Completion [24 CFR 983.155(b)]............................... 17‐28 PHA Acceptance of Completed Units [24 CFR 983.156]............... 17‐28 PART V: HOUSING ASSISTANCE PAYMENTS CONTRACT (HAP) ........................................ 17‐29 17‐V.A. Overview............................................................................................. 17‐29 17‐V.B. HAP Contract Requirements............................................................... 17‐29 Contract Information [24 CFR 983.203] ....................................... 17‐29 Execution of the HAP Contract [24 CFR 983.204]......................... 17‐30 Term of HAP Contract [24 CFR 983.205;
FR Notice 1/18/17] ....................................................................... 17‐30 Statutory Notice Requirements: Contract Termination
or Expiration [24 CFR 983.206; FR Notice 1/18/17]  .................... 17‐32 Remedies for HQS Violations [24 CFR 983.208(b)]....................... 17‐32 17‐V.C. Amendments to the HAP Contract..................................................... 17‐33 Substitution of Contract Units [24 CFR 983.207(a)]..................... 17‐33 Addition of Contract Units [FR Notice 1/18/17]........................... 17‐33 17‐V.D. HAP Contract Year, Anniversary and Expiration Dates [24 CFR 983.207(b) and 983.302(e)]................................................... 17‐33 17‐V.E. Owner Responsibilities Under the HAP [24 CFR 983.210].................. 17‐34 45 Item 6.

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17‐V.F. Additional HAP Requirements............................................................ 17‐35 Housing Quality and Design Requirements
[24 CFR 983.101(e) and 983.208(a)]............................................. 17‐35 Vacancy Payments [24 CFR 983.352(b)]....................................... 17‐35 PART VI: SELECTION OF PBV PROGRAM PARTICIPANTS ................................................... 17‐37 17‐VI.A. Overview............................................................................................. 17‐37 17‐VI.B. Eligibility for PBV Assistance [24 CFR 983.251(a) and (b)] ................. 17‐37 In‐Place Families [24 CFR 983.251(b)] .......................................... 17‐38 17‐VI.C. Organization of the Waiting List
[24 CFR 983.251(c)]............................................................................. 17‐39 17‐VI.D. Selection From the Waiting List
[24 CFR 983.251(c)]............................................................................. 17‐39 Income Targeting [24 CFR 983.251(c)(6)]..................................... 17‐39 Units with Accessibility Features [24 CFR 983.251(c)(7)]............. 17‐39 Preferences [24 CFR 983.251(d), FR Notice 11/24/08] ................ 17‐40 17‐VI.E. Offer of PBV Assistance ...................................................................... 17‐41 Refusal of Offer [24 CFR 983.251(e)(3)] ....................................... 17‐41 Disapproval by Landlord [24 CFR 983.251(e)(2)].......................... 17‐41 Acceptance of Offer [24 CFR 983.252] ......................................... 17‐41 17‐VI.F. Owner Selection of Tenants  ............................................................... 17‐42 Leasing [24 CFR 983.253(a)] ......................................................... 17‐42 Filling Vacancies [24 CFR 983.254(a)]........................................... 17‐42 Reduction in HAP Contract Units Due to Vacancies
[24 CFR 983.254(b)] ...................................................................... 17‐42 17‐VI.G. Tenant Screening [24 CFR 983.255].................................................... 17‐43 PHA Responsibility ........................................................................ 17‐43 Owner Responsibility.................................................................... 17‐43 PART VII: OCCUPANCY........................................................................................................ 17‐44 17‐VII.A. Overview............................................................................................. 17‐44 17‐VII.B. Lease [24 CFR 983.256]....................................................................... 17‐44 Form of Lease [24 CFR 983.256(b)] .............................................. 17‐44 Lease Requirements [24 CFR 983.256(c)]..................................... 17‐44 Tenancy Addendum [24 CFR 983.256(d)]..................................... 17‐46 Initial Term and Lease Renewal [24 CFR 983.256(f)].................... 17‐46 Changes in the Lease [24 CFR 983.256(e)] ................................... 17‐46 Owner Termination of Tenancy [24 CFR 983.257] ....................... 17‐47 Continuation of Housing Assistance Payments
[24 CFR 983.258]  .......................................................................... 17‐47 Security Deposits [24 CFR 983.259].............................................. 17‐48 17‐VII.C. Moves ................................................................................................. 17‐49 Overcrowded, Under‐Occupied, and Accessible Units
[24 CFR 983.260]........................................................................... 17‐49 Family Right to Move [24 CFR 983.261] ....................................... 17‐50 46 Item 6.

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17‐VII.D. Exceptions to the Occupancy Cap [24 CFR 983.262].......................... 17‐51 47 Item 6.

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PART VIII: DETERMINING RENT TO OWNER........................................................................ 17‐53 17‐VIII.A. Overview............................................................................................. 17‐53 17‐VIII.B. Rent Limits [24 CFR 983.301].............................................................. 17‐53 Certain Tax Credit Units [24 CFR 983.301(c)] ............................... 17‐53 Reasonable Rent [24 CFR 983.301(e) and 983.302(c)(2)] ............ 17‐54 Use of FMRs, Exception Payment Standards,
and Utility Allowances [24 CFR 983.301(f)].................................. 17‐55 Use of Small Area FMRs (SAFMRs) [24 CFR 888.113(h)] .............. 17‐55 Redetermination of Rent [24 CFR 983.302] ................................. 17‐56 PHA‐Owned Units [24 CFR 983.301(g)] ........................................ 17‐56 17‐VIII.C. Reasonable Rent [24 CFR 983.303] .................................................... 17‐57 When Rent Reasonable Determinations Are Required................ 17‐57 How to Determine Reasonable Rent............................................ 17‐57 PHA‐Owned Units......................................................................... 17‐57 Owner Certification of Reasonable Rent...................................... 17‐58 17‐VIII.D. Effect of Other Subsidy and Rent Control .......................................... 17‐58 Other Subsidy [24 CFR 983.304]................................................... 17‐58 Rent Control [24 CFR 983.305] ..................................................... 17‐58 PART IX: PAYMENTS TO OWNER ....................................................................................... 17‐59 17‐IX.A. Housing Assistance Payments [24 CFR 983.351]................................ 17‐59 17‐IX.B. Vacancy Payments [24 CFR 983.352] ................................................. 17‐59 17‐IX.C. Tenant Rent to Owner [24 CFR 983.353]............................................ 17‐61 Tenant and PHA Responsibilities.................................................. 17‐61 Utility Reimbursements................................................................ 17‐61 17‐IX.D. Other Fees and Charges [24 CFR 983.354]......................................... 17‐62 Meals and Supportive Services..................................................... 17‐62 Other Charges by Owner .............................................................. 17‐62 48 Item 6.

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Chapter 18

PROJECT BASED VOUCHERS (PBV) UNDER THE

RENTAL ASSISTANCE DEMONSTRATION (RAD) PROGRAM
PART I: GENERAL REQUIREMENTS .................................................................................... 18‐3 18‐I.A. Overview and History of the RAD Program.......................................... 18‐3 18‐I.B. Applicable Regulations ......................................................................... 18‐4 18‐I.C. Tenant‐Based Vs. Project‐Based Voucher Assistance [24 CFR 983.2]....................................................................................... 18‐6 18‐I.D. Relocation Requirements [Notice PIH 2016‐17]................................... 18‐6 18‐I.E. Equal Opportunity Requirements [24 CFR 983.8;
Notice PIH 2012‐32, REV‐3] .................................................................. 18‐8 PART II: PBV PROJECT SELECTION ...................................................................................... 18‐9 18‐II.A. Overview............................................................................................... 18‐9 18‐II.B. Ownership and Control [Notice PIH 2012‐32, REV‐3] .......................... 18‐9 18‐II.C. PHA‐Owned Units [24 CFR 983.59; Notice PIH 2012‐32, REV‐3; FR Notice 1/18/17] ............................................................................. 18‐10 18‐II.D. Subsidy Layering Requirements [Notice PIH 2012‐32, REV‐3] ........... 18‐11 18‐II.E. PBV Percentage Limitation [Notice PIH 2012‐32, REV‐3]................... 18‐11 18‐II.F. Site Selection Standards [Notice PIH 2012‐32, REV‐3; Notice PIH 2016‐17]............................................................................ 18‐12 18‐II.G. Environmental Review [Notice PIH 2012‐32, REV‐3].......................... 18‐12 PART III: DWELLING UNITS ................................................................................................ 18‐13 18‐III.A. Overview............................................................................................. 18‐13 18‐III.B. Housing Quality Standards [24 CFR 983.101]..................................... 18‐13 Lead‐based Paint [24 CFR 983.101(c)].......................................... 18‐13 18‐III.C. Housing Accessibility for Persons with Disabilities............................. 18‐13 18‐III.D. Inspecting Units.................................................................................. 18‐14 Initial Inspection [Notice PIH 2012‐32, REV‐3]  ............................ 18‐14 Turnover Inspections [24 CFR 983.103(c)] ................................... 18‐14 Annual/Biennial Inspections [24 CFR 983.103(d);
FR Notice 6/25/14] ....................................................................... 18‐14 Other Inspections [24 CFR 983.103(e)]  ........................................ 18‐14 Inspecting PHA‐Owned Units [24 CFR 983.103(f)]  ...................... 18‐14 49 Item 6.

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PART IV: HOUSING ASSISTANCE PAYMENTS (HAP) CONTRACT ........................................ 18‐15 18‐IV.A. Overview............................................................................................. 18‐15 18‐IV.B. HAP Contract Requirements............................................................... 18‐15 Contract Information [PBV Quick Reference Guide (10/14)]  ...... 18‐15 Execution and Effective date of the HAP Contract
[RADBlast! 7/11/16]  ..................................................................... 18‐15 Term of HAP Contract [Notice PIH 2012‐32, REV‐3]  .................... 18‐15 Agreement to Enter into a HAP (AHAP) Contract
[Notice PIH 2012‐32, REV‐3]  ........................................................ 18‐15 Mandatory Contract Renewal [Notice PIH 2012‐32, REV‐3]  ....... 18‐16 Remedies for HQS Violations [24 CFR 983.208(b)]  ...................... 18‐16 18‐IV.C. Amendments to the HAP Contract..................................................... 18‐17 Floating Units [Notice PIH 2012‐32, REV‐3]  ................................. 18‐17 Reduction in HAP Contract Units
[Notice PIH 2012‐32, REV‐3]  ........................................................ 18‐17 18‐IV.D. HAP Contract Year and Anniversary Dates [24 CFR 983.302(e)]  ....... 18‐17 18‐IV.E. Owner Responsibilities under the HAP Contract
[24 CFR 983.210]................................................................................. 18‐18 18‐IV.F. Vacancy Payments [24 CFR 983.352(b)]............................................. 18‐18 PART V: SELECTION OF PBV PROGRAM PARTICIPANTS ................................................... 18‐19 18‐V.A. Overview............................................................................................. 18‐19 18‐V.B. Prohibited Rescreening of Existing Tenants upon Conversion [Notice PIH 2012‐32, REV‐3]............................................................... 18‐19 18‐V.C. Eligibility for PBV Assistance [24 CFR 983.251(a) and (b)] ................. 18‐20 18‐V.D. Organization of the Waiting List [24 CFR 983.251(c); Notice PIH 2012‐32, REV‐3] ................................................................ 18‐21 18‐V.E. Selection from the Waiting List [24 CFR 983.251(c)].......................... 18‐22 Income Targeting [24 CFR 983.251(c)(6);
Notice PIH 2012‐32, REV‐3]  ......................................................... 18‐22 Units with Accessibility Features [24 CFR 983.251(c)(7)]  ............ 18‐22 Preferences [24 CFR 983.251(d); FR Notice 11/24/08;
Notice PIH 2012‐32, REV‐3]  ......................................................... 18‐22 18‐V.F. Offer of PBV Assistance ...................................................................... 18‐23 Refusal of Offer [24 CFR 983.251(e)(3)] ....................................... 18‐23 Disapproval by Landlord [24 CFR 983.251(e)(2)]  ......................... 18‐23 Acceptance of Offer [24 CFR 983.252]  ........................................ 18‐23 18‐V.G. Owner Selection of Tenants ............................................................... 18‐24 Leasing [24 CFR 983.253(a)]  ........................................................ 18‐24 Filling Vacancies [24 CFR 983.254(a)]  .......................................... 18‐24 18‐V.H. Tenant Screening [24 CFR 983.255].................................................... 18‐25 PHA Responsibility ........................................................................ 18‐25 Owner Responsibility.................................................................... 18‐25 50 Item 6.

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PART VI: OCCUPANCY........................................................................................................ 18‐27 18‐VI.A. Overview............................................................................................. 18‐27 18‐VI.B. Lease [24 CFR 983.256; Notice PIH 2012‐32, REV‐3].......................... 18‐27 Lease Requirements [24 CFR 983.256(c);
Notice PIH 2012‐32, REV‐3] .......................................................... 18‐27 Tenancy Addendum [24 CFR 983.256(d)]..................................... 18‐27 Initial Term and Lease Renewal [24 CFR 983.256(f);
PBV Quick Reference Guide (10/14)] ........................................... 18‐28 Changes in the Lease [24 CFR 983.256(e)] ................................... 18‐28 Owner Termination of Tenancy [24 CFR 983.257;
Notice PIH 2012‐32, REV‐3] .......................................................... 18‐29 Continuation of Housing Assistance Payments
[24 CFR 983.258; Notice PIH 2012‐32, REV 3].............................. 18‐30 Security Deposits [24 CFR 983.259;
PBV Quick Reference Guide (10/14)] ........................................... 18‐31 18‐VI.C. Public Housing FSS and ROSS Participants
[Notice PIH 2012‐32, REV‐3]............................................................... 18‐32 18‐VI.D. Resident Participation and Funding
[Notice PIH 2012‐32, REV‐3]............................................................... 18‐32 18‐VI.E. Moves ................................................................................................. 18‐33 Overcrowded, Under‐Occupied, and Accessible Units
[24 CFR 983.260; Notice PIH 2012‐32, REV‐3].............................. 18‐33 Family Right to Move [24 CFR 983.261] ....................................... 18‐34 Choice Mobility [Notice PIH 2012‐32, REV‐3]............................... 18‐35 Turnover Cap ................................................................................ 18‐36 18‐VI.F. Reexaminations [PBV Quick Reference Guide (10/14)] ..................... 18‐37 18‐VI.G. Earned Income Disallowance [Notice PIH 2012‐32, REV‐3] ............... 18‐37 18‐VI.H. Residents’ Procedural Rights [Notice PIH 2012‐32, REV‐3]................ 18‐37 18‐VI.I. Informal Reviews and Hearings [Notice PIH 2012‐32, REV‐3] ............... 18‐38 PART VII: DETERMINING CONTRACT RENT......................................................................... 18‐39 18‐VII.A. Initial Contract Rents [Notice PIH 2012‐32, REV‐3]............................ 18‐39 18‐VII.B. Adjusting Contract Rents [Notice PIH 2012‐32, REV‐3; PBV Quick Reference Guide (10/14)] ................................................. 18‐40 Rent Decrease............................................................................... 18‐40 18‐VII.C. Utility Allowances [Notice PIH 2012‐32, REV‐3; PBV Quick Reference Guide (10/14)] ................................................. 18‐41 18‐VII.D. Reasonable Rent [24 CFR 983.303] .................................................... 18‐42 How to Determine Reasonable Rent............................................ 18‐42 PHA‐Owned Units......................................................................... 18‐42 51 Item 6.

Administrative Plan ‐Table of Contents
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PART VIII: PAYMENTS TO OWNER ....................................................................................... 18‐43 18‐VIII.A. Housing Assistance Payments ............................................................ 18‐43 18‐VIII.B. Vacancy Payments [24 CFR 983.352] ................................................. 18‐44 18‐VIII.C. Tenant Rent to Owner [24 CFR 983.353]............................................ 18‐45 Tenant and PHA Responsibilities.................................................. 18‐45 Utility Reimbursements................................................................ 18‐45 18‐VIII.D. Phase‐In of Tenant Rent Increases
[Notice PIH 2012‐32, REV‐3]............................................................. 18‐46

18.VIII.E. Other Fees and Charges [24 CFR 983.354]  ........................................ 18‐46 Meals and Supportive Services..................................................... 18‐46 Other Charges by Owner .............................................................. 18‐46

GLOSSARY
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Intro-i
Introduction

ABOUT THE REFERENCES CITED IN THE ADMINISTRATIVE PLAN

AUTHORITIES FOR POLICIES IN THE ADMINISTRATIVE PLAN
The authority for PHA policies is derived from many sources. Primary among these sources are federal statutes, 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 PHAs.

RESOURCES CITED IN THE 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.
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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
http://www.gpoaccess.gov/cfr/index.html
Earned Income Disregard FAQ
www.hud.gov/offices/pih/phr/about/ao_faq_eid.cfm
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
http://www.hud.gov/offices/pih/programs/ph/rhiip/docs/eivsecguidepha.pdf Executive Order 11063
http://www.hud.gov/offices/fheo/FHLaws/EXO11063.cfm
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Intro-iii
Federal Register
http://www.access.gpo.gov/su_docs/aces/fr‐cont.html
General Income and Rent Determination FAQs
www.hud.gov/offices/pih/programs/ph/rhiip/faq_gird.cfm
Housing Choice Voucher Program Guidebook (7420.10G), April 2001 www.hud.gov/offices/pih/programs/hcv/forms/guidebook.cfm 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
http://www.hud.gov/offices/fheo/library/huddojstatement.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
http://www.hud.gov/offices/fheo/promotingfh/FederalRegistepublishedguidance.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
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 2010‐26 (HA), Nondiscrimination and Accessibility Notice http://www.hud.gov/offices/pih/publications/notices/10/pih2010‐26.pdf OMB Circular A‐133
http://www.whitehouse.gov/omb/circulars/a133_compliance_supplement_2010 Project‐Based Voucher Program; Final Rule
http://www.gpo.gov/fdsys/pkg/FR‐2005‐10‐13/pdf/05‐20035.pdf 55 Item 6.
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Intro-iv
Rental Housing Integrity Improvement Program (RHIIP) Frequently Asked Questions. www.hud.gov/offices/pih/programs/ph/rhiip/faq.cfm
VAWA Final Rule
http://www.gpo.gov/fdsys/pkg/FR‐2010‐10‐27/pdf/2010‐26914.pdf Verification FAQ
www.hud.gov/offices/pih/programs/ph/rhiip/faq_verif.cfm Verification Guidance, March 2004 (attachment to Notice PIH 2004‐1) http://www.hud.gov/offices/pih/publications/notices/04/verifguidance.pdf The HUD Web site is http://portal.hud.gov/hudportal/HUD.

Guidebooks, handbooks and other HUD resources may be found at the HUDClips Web site:
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Chapter 1

OVERVIEW OF THE PROGRAM AND PLAN

INTRODUCTION
The PHA receives its funding for the Housing Choice Voucher (HCV) program from the Department of Housing and Urban Development. The PHA is not a federal department or agency. A public housing agency (PHA) is a governmental or public body, created and authorized by state law to develop and operate housing and housing programs for low‐income families. The PHA enters into an Annual Contributions Contract with HUD to administer the program requirements on behalf of HUD. The PHA must ensure compliance with federal laws, regulations and notices and must establish policy and procedures to clarify federal requirements and to ensure consistency in program operation.

This chapter contains information about the PHA and its programs with emphasis on the HCV program. It also contains information about the purpose, intent and use of the plan and guide.

There are three parts to this chapter:

Part I: The Public Housing Agency (PHA). This part includes a description of the PHA, its jurisdiction, its programs, and its mission and intent.

Part II: The HCV Program. This part contains information about the Housing Choice Voucher program operation, roles and responsibilities, and partnerships.

Part III: The HCV Administrative Plan. This part discusses the purpose and organization of the plan and its revision requirements.

PART I: THE PHA
1‐I.A. OVERVIEW
This part explains the origin of the PHA’s creation and authorization, the general structure of the organization, and the relationship between the PHA Board and staff. 57 Item 6.
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1‐I.B. ORGANIZATION AND STRUCTURE OF THE PHA
The Section 8 tenant‐based and project‐based Housing Choice Voucher (HCV) assistance programs are funded by the federal government and administered by the Housing Authority of the City of Santa Barbara (HACSB) for the jurisdiction of Southern Santa Barbara County (south coast region of Santa Barbara County (as defined by the Census tracts listed in Appendix 7).

The officials of a PHA are known as commissioners or, collectively, as the board of commissioners. Commissioners are appointed in accordance with state housing law and generally serve in the same capacity as the directors of a corporation, establishing policies under which the PHA conducts business, ensuring that policies are followed by PHA staff and ensuring that the PHA is successful in its mission. The board is responsible for preserving and expanding the agency’s resources and assuring the agency’s continued viability.

Formal actions of the PHA are taken through written resolutions, adopted by the board of commissioners and entered into the official records of the PHA.

The principal staff member of the PHA is the executive director (ED), hired and appointed by the board of commissioners. The executive director is directly responsible for carrying out the policies established by the board and is delegated the responsibility for hiring, training and supervising the PHA staff in order to manage the day‐to‐day operations of the PHA.  The executive director is responsible for ensuring compliance with federal and state laws and directives for the programs managed. In addition, the executive director’s duties include budgeting and financial planning for the agency.
1‐I.C. 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.

HACSB  Policy
The Housing Authority of the City of Santa Barbara is a local public agency created under State law for the purpose of providing safe, decent, and quality affordable housing and support services to income eligible persons through a variety of Federal, State, local, and private resources.
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1‐I.D. THE PHA’S PROGRAMS
The following programs are included under this administrative plan:

HACSB Policy
The PHA’s administrative plan is applicable to the operation of the Housing Choice Voucher program and all HACSB tenant‐based and project‐based Section 8 programs.

Exceptions to the project based program are outlined in Chapter 17. 1‐I.E. THE PHA’S COMMITMENT TO ETHICS AND SERVICE
As a public service agency, the PHA is committed to providing excellent service to HCV program participants, 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 service 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 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 HCV program rules and regulations, and to advise participants of how the program rules affect them. 59 Item 6.
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PART II: THE HOUSING CHOICE VOUCHER (HCV) PROGRAM
1‐II.A. OVERVIEW AND HISTORY OF THE PROGRAM
The intent of this section is to provide the public and staff with information related to the overall operation of the program. There have been many changes to the program since its inception in 1974 and a brief history of the program will assist the reader to better understand the program.

The United States Housing Act of 1937 (the “Act”) is responsible for the birth of federal housing program initiatives. The Act was intended to provide financial assistance to states and cities for public works projects, slum clearance and the development of affordable housing developments for low‐income residents.

The Housing and Community Development (HCD) Act of 1974 created a new federally assisted housing program – the Section 8 Existing program (also known as the Section 8 Certificate program). The HCD Act represented a significant shift in federal housing strategy from locally owned public housing to privately owned rental housing.

Under the Certificate program, federal housing assistance payments were made directly to private owners of rental housing, where this housing was made available to lower‐income families. Eligible families were able to select housing in the private rental market. Assuming that the housing met certain basic physical standards of quality (“housing quality standards”) and was within certain HUD‐established rent limitations (“fair market rents”), the family would be able to receive rental assistance in the housing unit. Family contribution to rent was generally set at 30 percent of the family’s adjusted income, with the remainder of the rent paid by the program.

Another unique feature of the Certificate program was that the rental assistance remained with the eligible family, if the family chose to move to another privately‐owned rental unit that met program requirements (in contrast to the public housing program where the rental assistance remains with the unit, should the family decide to move). Consequently, the Certificate program was characterized as tenant‐based assistance, rather than unit‐based assistance.

The Housing and Community Development (HCD) Act of 1987 authorized a new version of tenant‐based assistance – the Section 8 Voucher program. The Voucher program was very similar to the Certificate program in that eligible families were able to select housing in the private rental market and receive assistance in that housing unit.

However, the Voucher program permitted families more options in housing selection. Rental housing still had to meet the basic housing quality standards, but there was no fair market rent limitation on rent. In addition, family contribution to rent was not set at a limit of 30 percent of adjusted income. Consequently, depending on the actual rental cost of the unit selected, a family might pay more or less than 30 percent of their adjusted income for rent. 61 Item 6.
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From 1987 through 1999, public housing agencies managed both the Certificate and Voucher tenant‐based assistance programs, with separate rules and requirements for each. From 1994 through 1998, HUD published a series of new rules, known as “conforming” rules, to more closely combine and align the two similar housing programs, to the extent permitted by the law.

In 1998, the Quality Housing and Work Responsibility Act (QHWRA) – also known as the Public Housing Reform Act – was signed into law. QHWRA eliminated all statutory differences between the Certificate and Voucher tenant‐based programs and required that the two programs be merged into a single tenant‐based assistance program, now known as the Housing Choice Voucher (HCV) program.

The HCV program was modeled closely on the pre‐merger Voucher program. However, unlike the pre‐merger Voucher program, the HCV program requires an assisted family to pay at least 30 percent of adjusted income for rent.

The transition of assistance from the Certificate and Voucher programs to the new HCV program began in October 1999. By October 2001, all families receiving tenant‐based assistance were converted to the HCV program.
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1‐II.B. HCV PROGRAM BASICS
The purpose of the HCV program is to provide rental assistance to eligible families. The rules and regulations of the HCV program are determined by the U.S. Department of Housing and Urban Development. The PHA is afforded choices in the operation of the program which are included in the PHA’s administrative plan, a document approved by the board of commissioners of the PHA.

The HCV program offers mobility to eligible families because they may search for suitable housing anywhere in the PHA’s jurisdiction and may also be eligible to move under portability to other PHAs’ jurisdictions.

When a family is determined to be eligible for the program and funding is available, the PHA issues the family a housing voucher. When the family finds a suitable housing unit and funding is available, the PHA will enter into a contract with the owner and the family will enter into a lease with the owner. Each party makes their respective payment to the owner so that the owner receives full rent.

Even though the family is determined to be eligible for the program, the owner has the responsibility of approving the family as a suitable renter. The PHA continues to make payments to the owner as long as the family is eligible and the housing unit continues to qualify under the program.
1‐II.C. THE HCV PARTNERSHIPS
To administer the HCV program, the PHA enters into a contractual relationship with HUD (Consolidated Annual Contributions Contract). The PHA also enters into contractual relationships with the assisted family and the owner or landlord of the housing unit.

For the HCV program to work and be successful, all parties involved – HUD, the PHA, the owner, and the family – have important roles to play. The roles and responsibilities of all parties are defined in federal regulations and in legal documents that parties execute to participate in the program.

The chart on the following page illustrates key aspects of these relationships. 63 Item 6.
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The HCV Relationships:

Congress
Appropriates
Funding
HUD
Provides Funding
To PHA
PHA
Administers
Program
Owner /
Landlord
Family
(Program
Participant)
Voucher specifies
Family Obligations
Housing Assistance Payments
(HAP) Contract specifies Owner
and PHA Obligations
Lease specifies Tenant
and Landlord
Obligations
Program Regulations and ACC
specifies PHA Obligations and
Voucher Funding
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What does HUD do?
HUD has the following major responsibilities:
 Develop regulations, requirements, handbooks, notices and other guidance to implement HCV housing program legislation passed by Congress;
 Allocate HCV program funds to PHAs;
 Provide technical assistance to PHAs on interpreting and applying HCV program requirements;
 Monitor PHA compliance with HCV program requirements and PHA performance in program administration.

What does the PHA do?
The PHA administers the HCV program under contract with HUD and has the following major responsibilities:
 Establish local policies to administer the program;
 Review applications from interested applicants to determine whether they are eligible for the program;
 Maintain a 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 and 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. 65 Item 6.
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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 Housing Assistance Payments 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 Housing Quality Standards (HQS) 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.
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The family has the following responsibilities:
 Provide the PHA with complete and accurate information as 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 quality standards caused by the family;
 Comply with the terms of the lease with the owner;
 Comply with the family obligations of the voucher;
 Not commit serious or repeated violations of the lease;  Not engage in drug‐related or violent criminal activity;  Notify the PHA and the owner before moving or 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.
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Applicable regulations include:
 24 CFR Part 5: General Program Requirements
 24 CFR Part 8: Nondiscrimination
 24 CFR Part 35: Lead‐Based Paint
 24 CFR Part 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) 68 Item 6.
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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 the HCV program not addressed in this document are governed by such federal regulations, HUD handbooks and guidebooks, notices, and other applicable law. The policies in this administrative plan have been designed to ensure compliance with the consolidated ACC and all HUD‐approved applications for program funding.

The PHA is responsible for complying with all changes in HUD regulations pertaining to the HCV program. If such changes conflict with this plan, HUD regulations will have precedence.

Administration of the HCV program and the functions and responsibilities of PHA staff shall be in compliance with the PHA's personnel policy and HUD 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 or suspensions of the voucher term. 'Suspension' means stopping the clock on the term of a family's voucher after the family submits a request for approval of the tenancy. If the PHA decides to allow extensions or suspensions of the voucher term, the PHA administrative plan must describe how the PHA determines whether to grant extensions or suspensions, and how the PHA determines the length of any extension or suspension (Chapter 5);
 Any special rules for use of available funds when HUD provides funding to the PHA for a special purpose (e.g., desegregation), including funding for specified families or a specified category of families (Chapter 4);
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 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). 70 Item 6.
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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.

HACSB Policy
The PHA will review and update the plan at least once a year, and more often if needed, to reflect changes in regulations, PHA operations, or when needed to ensure staff consistency in operation.  Any updates to the plan will be made available for public comment not less than 10 days prior to presenting them to the board of commissioners for approval. Plan changes that are considered a significant amendment or modification to the annual plan will be made available to the public not less than 45 days prior to presenting them to the board commissioners for approval. 71 Item 6.
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Chapter 2

FAIR HOUSING AND EQUAL OPPORTUNITY

INTRODUCTION
This chapter explains the laws and HUD regulations requiring PHAs to affirmatively further civil rights and fair housing in all federally‐assisted housing programs. The letter and spirit of these laws are implemented through consistent policy and processes. The responsibility to further nondiscrimination pertains to all areas of the PHA’s housing choice voucher (HCV) operations.

This chapter describes HUD regulations and PHA policies related to these topics in three parts:

Part I: Nondiscrimination. This part presents the body of laws and regulations governing the responsibilities of the PHA regarding nondiscrimination.

Part II: Policies Related to Persons with Disabilities. This part discusses the rules and policies of the housing choice voucher program related to reasonable accommodation for persons with disabilities. These rules and policies are based on the Fair Housing Act (42.U.S.C.) and Section 504 of the Rehabilitation Act of 1973, and incorporate guidance from the Joint Statement of The Department of Housing and Urban Development and the Department of Justice (DOJ), issued May 17, 2004.

Part III: Prohibition of Discrimination Against Limited English Proficiency Persons. This part details the obligations of the PHA to ensure meaningful access to the HCV program and its activities by persons with limited English proficiency (LEP). This part incorporates the Final Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition against National Origin Discrimination Affecting Limited English Proficient Persons published January 22, 2007, in the Federal Register. 73 Item 6.
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74 Item 6.
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PART I: NONDISCRIMINATION
2‐I.A. OVERVIEW
Federal laws require PHAs to treat all applicants and participants equally, providing the same opportunity to access services, regardless of family characteristics and background. Federal law prohibits discrimination in housing on the basis of race, color, religion, sex, national origin, age, familial status, and disability. In addition, HUD regulations provide for additional protections regarding sexual orientation, gender identity, and marital status. The PHA will comply fully with all federal, state, and local nondiscrimination laws, and with rules and regulations governing fair housing and equal opportunity in housing and employment, including:
 Title VI of the Civil Rights Act of 1964
 Title VIII of the Civil Rights Act of 1968 (as amended by the Community Development Act of 1974 and the Fair Housing Amendments Act of 1988)
 Executive Order 11063
 Section 504 of the Rehabilitation Act of 1973
 The Age Discrimination Act of 1975
 Title II of the Americans with Disabilities Act (to the extent that it applies, otherwise Section 504 and the Fair Housing Amendments govern)
 The Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity Final Rule, published in the Federal Register February 3, 2012 and further clarified in Notice PIH 2014‐20
 Violence Against Women Reauthorization Act of 2013 (VAWA) 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.

HACSB Policy
No state or local nondiscrimination laws or ordinances apply. 75 Item 6.
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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”) 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 marital status, gender identity, or sexual orientation [FR Notice 02/03/12].

HACSB 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 requirements for admission  Steer an applicant or participant toward or away from a particular area based any of these factors
 Deny anyone access to the same level of services
 Deny anyone the opportunity to participate in a planning or advisory group that is an integral part of the housing program
 Discriminate in the provision of residential real estate transactions  Discriminate against someone because they are related to or associated with a member of a protected class
 Publish or cause to be published an advertisement or notice indicating the availability of housing that prefers or excludes persons who are members of a protected class 76 Item 6.
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Providing Information to Families and Owners
The PHA must take steps to ensure that families and owners are fully aware of all applicable civil rights laws. As part of the briefing process, the PHA must provide information to HCV applicant families about civil rights requirements and the opportunity to rent in a broad range of neighborhoods [24 CFR 982.301]. The Housing Assistance Payments (HAP) contract informs owners of the requirement not to discriminate against any person because of race, color, religion, sex, national origin, age, familial status, or disability in connection with the contract.

Discrimination Complaints
If an applicant or participant believes that any family member has been discriminated against by the PHA or an owner, the family should advise the PHA. HUD requires the PHA to make every reasonable attempt to determine whether the applicant’s or participant’s assertions have merit and take any warranted corrective action. In addition, the PHA is required to provide the applicant or participant with information about how to file a discrimination complaint [24 CFR 982.304].
 Upon receipt of a housing discrimination complaint, the PHA is required to:
 Provide written notice of the complaint to those alleged and inform the complainant that such notice was made
 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]
HACSB Policy
Applicants or participants who believe that they have been subject to unlawful discrimination may notify the PHA either orally or in writing.

The PHA will attempt to remedy discrimination complaints made against the PHA.

The PHA will provide a copy of a discrimination complaint form to the complainant and provide them with information on how to complete and submit the form to HUD’s Office of Fair Housing and Equal Opportunity (FHEO).
77 Item 6.
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78 Item 6.
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79 Item 6.
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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.

HACSB 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.”
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.
80 Item 6.
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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:
 Permitting applications and reexaminations to be completed by mail  Conducting home visits
 Using higher payment standards (either within the acceptable range or with HUD approval of a payment standard outside the PHA range) if the PHA determines this is necessary to enable a person with disabilities to obtain a suitable housing unit  Providing time extensions for locating a unit when necessary because of lack of availability of accessible units or special challenges of the family in seeking a unit  Permitting an authorized designee or advocate to participate in the application or certification process and any other meetings with PHA staff 81 Item 6.
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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.

HACSB Policy
The PHA will encourage the family to make its request in writing. 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. 82 Item 6.
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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]. 83 Item 6.
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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].

The PHA must approve a request for an accommodation if the following three conditions are met:
 The request was made by or on behalf of a person with a disability.  There is a disability‐related need for the accommodation.  The requested accommodation is reasonable, meaning it would not impose an undue financial and administrative burden on the PHA, or fundamentally alter the nature of the PHA’s HCV operations (including the obligation to comply with HUD requirements and regulations).

Requests for accommodations must be assessed on a case‐by‐case basis, taking into account factors such as the overall size of the PHA’s program with respect to the number of employees, type of facilities and size of budget, type of operation including composition and structure of 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.

HACSB Policy
After a request for an accommodation is presented, the PHA will respond, in writing, within 10 business days. The initial response may be a request for additional information, scheduling of appointment or other written response as deemed necessary and appropriate for the PHA to obtain adequate information from which to make a determination as to whether the request is reasonable.

If the PHA denies a request for an accommodation because it is not reasonable (it would impose an undue financial and administrative burden or fundamentally alter the nature of the PHA’s operations), the PHA will discuss with the family whether an alternative accommodation could effectively address the family’s disability‐related needs without a fundamental alteration to the HCV program and without imposing an undue financial and administrative burden.

If the PHA denies a request for an accommodation because there is no nexus between the requested accommodation and the disability, or if the PHA believes that the family has failed to identify a reasonable alternative accommodation after interactive discussion and negotiation, the PHA will notify the family, in writing, of its determination within 10 business days from the date of the most recent discussion or communication with the family.
84 Item 6.
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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.

HACSB Policy
To meet the needs of persons with hearing impairments, TTD/TTY (text telephone display / teletype) communication will be available.

To meet the needs of persons with vision impairments, large‐print and audio versions of key program documents will be made available upon request. When visual aids are used in public meetings or presentations, or in meetings with PHA staff, one‐on‐one assistance will be provided upon request.

Additional examples of alternative forms of communication are sign language interpretation; having material explained orally by staff; or having a third party representative (a friend, relative or advocate, named by the applicant) to receive, interpret and explain housing materials and be present at all meetings. 85 Item 6.
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2‐II.G. PHYSICAL ACCESSIBILITY
The PHA must comply with a variety of regulations pertaining to physical accessibility, including the following:
 Notice 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 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 nondiscrimination 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. 86 Item 6.
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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. 87 Item 6.
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PART III: IMPROVING ACCESS TO SERVICES FOR PERSONS WITH LIMITED ENGLISH

PROFICIENCY (LEP)
2‐III.A. OVERVIEW
Language for Limited English Proficiency Persons (LEP) can be a barrier to accessing important benefits or services, understanding and exercising important rights, complying with applicable responsibilities, or understanding other information provided by the HCV program. In certain circumstances, failure to ensure that LEP persons can effectively participate in or benefit from federally‐assisted programs and activities may violate the prohibition under Title VI against discrimination on the basis of national origin. This part incorporates the Final Guidance to Federal Assistance Recipients Regarding Title VI Prohibition against National Origin Discrimination Affecting Limited English Proficient Persons, published January 22, 2007, in the Federal Register.

The PHA will take affirmative steps to communicate with people who need services or information in a language other than English. These persons will be referred to as Persons with Limited English Proficiency (LEP).

LEP is defined as persons who do not speak English as their primary language and who have a limited ability to read, write, speak or understand English. For the purposes of this administrative plan, LEP persons are HCV applicants and participants, and parents and family members of applicants and participants.

In order to determine the level of access needed by LEP persons, the PHA will balance the following four factors: (1) the number or proportion of LEP persons eligible to be served or likely to be encountered by the Housing Choice Voucher program; (2) the frequency with which LEP persons come into contact with the program; (3) the nature and importance of the program, activity, or service provided by the program to people’s lives; and (4) the resources available to the PHA and costs. Balancing these four factors will ensure meaningful access by LEP persons to critical services while not imposing undue burdens on the PHA. 88 Item 6.
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2‐III.B. ORAL INTERPRETATION
The PHA will offer competent interpretation services free of charge, upon request, to the LEP person.

HACSB Policy
Where LEP persons desire, they will be permitted to use, at their own expense, an interpreter of their own choosing, in place of or as a supplement to the free language services offered by the PHA. The interpreter may be a family member or friend.

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. Where feasible and possible, the PHA will encourage the use of qualified community volunteers. 2‐III.C. WRITTEN TRANSLATION
Translation is the replacement of a written text from one language into an equivalent written text in another language.

HACSB 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. 89 Item 6.
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2‐III.D. IMPLEMENTATION PLAN
After completing the four‐factor analysis and deciding what language assistance services are appropriate, the PHA shall determine whether it is necessary to develop a written implementation plan to address the identified needs of the LEP populations it serves.

If the PHA determines that it is not necessary to develop a written implementation plan, the absence of a written plan does not obviate the underlying obligation to ensure meaningful access by LEP persons to the PHA’s Housing Choice Voucher program and services.

HACSB Policy
If it is determined that the PHA serves very few LEP persons, and the PHA has very limited resources, the PHA will not develop a written LEP plan, but will consider alternative ways to articulate in a reasonable manner a plan for providing meaningful access. Entities having significant contact with LEP persons, such as schools, grassroots and faith‐based organizations, community groups, and groups working with new immigrants will be contacted for input into the process.

If the PHA determines it is appropriate to develop a written LEP plan, the following five steps will be taken: (1) Identifying LEP individuals who need language assistance; (2) identifying language assistance measures; (3) training staff; (4) providing notice to LEP persons; and (5) monitoring and updating the LEP plan.
90 Item 6.
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91 Item 6.
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EXHIBIT 2‐1: DEFINITION OF A PERSON WITH A DISABILITY UNDER FEDERAL CIVIL RIGHTS LAWS [24 CFR Parts 8.3 and 100.201] A person with a disability, as defined under federal civil rights laws, is any person who:
 Has a physical or mental impairment that substantially limits one or more of the major life activities of an individual, or
 Has a record of such impairment, or
 Is regarded as having such impairment
The phrase “physical or mental impairment” includes:
 Any physiological disorder or condition, cosmetic or disfigurement, or anatomical loss affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive; digestive; genito‐urinary; hemic and lymphatic; skin; and endocrine; or  Any mental or psychological disorder, such as mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities. The term “physical or mental impairment” includes, but is not limited to: such diseases and conditions as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental retardation, emotional illness, drug addiction and alcoholism.
“Major life activities” includes, but is not limited to, caring for oneself, performing manual tasks, walking, seeing, hearing, breathing, learning, and/or working. “Has a record of such impairment” means has a history of, or has been misclassified as having, a mental or physical impairment that substantially limits one or more major life activities. “Is regarded as having an impairment” is defined as having a physical or mental impairment that does not substantially limit one or more major life activities but is treated by a public entity (such as 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.
92 Item 6.
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The definition of a person with disabilities does not include:
 Current illegal drug users
 People whose alcohol use interferes with the rights of others  Persons who objectively pose a direct threat or substantial risk of harm to others that cannot be controlled with a reasonable accommodation under the HCV program The above definition of disability determines whether an applicant or participant is entitled to any of the protections of federal disability civil rights laws. Thus, a person who does not meet this disability is not entitled to a reasonable accommodation under federal civil rights and fair housing laws and regulations.

The HUD definition of a person with a disability is much narrower than the civil rights definition of disability. The HUD definition of a person with a disability is used for purposes of receiving the disabled family preference, the $400 elderly/disabled household deduction, the $480 dependent deduction, the allowance for medical expenses, or the allowance for disability assistance expenses.

The definition of a person with a disability for purposes of granting a reasonable accommodation request is much broader than the HUD definition of disability. Many people will not qualify as a disabled person under the HCV program, yet an accommodation is needed to provide equal opportunity.
93 Item 6.
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Chapter 3

ELIGIBILITY

INTRODUCTION
The PHA isresponsible for ensuring that every individual and family admitted to the HCV program meets all program eligibility requirements. This includes any individual approved to join the family after the family has been admitted to the program. The family must provide any information needed by the PHA to confirm eligibility and determine the level of the family’s assistance.

To be eligible for the HCV program:
 The applicant family must:
- Qualify as a family as defined by HUD and the PHA.
- Have income at or below HUD‐specified income limits.
- Qualify on the basis of citizenship or the eligible immigrant status of family members. - Provide social security number information for household members as required. - Consent to the PHA’s collection and use of family information as provided for in PHA‐ provided consent forms.
 The PHA must determine that the current or past behavior of household members does not include activities that are prohibited by HUD or the PHA.

This chapter contains three parts:

Part I: Definitions of Family and Household Members. This part contains HUD and PHA definitions of family and household members and explains initial and ongoing eligibility issues related to these members.

Part II: Basic Eligibility Criteria. This part discusses income eligibility, and rules regarding citizenship, social security numbers, and family consent.

Part III: Denial of Assistance. This part covers factors related to an applicant’s past or current conduct (e.g. criminal activity) that can cause the PHA to deny assistance. 94 Item 6.
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95 Item 6.
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PART I: DEFINITIONS OF FAMILY AND HOUSEHOLD MEMBERS
3‐I.A. OVERVIEW
Some eligibility criteria and program rules vary depending upon the composition of the family requesting assistance. In addition, some requirements apply to the family as a whole and others apply to individual persons who will live in the assisted unit. This part provides information that is needed to correctly identify family and household members, and to apply HUD's eligibility rules.
3‐I.B. FAMILY AND HOUSEHOLD [24 CFR 982.201(c); FR Notice 02/03/12; Notice PIH 2014‐20] The terms family and household have different meanings in the HCV program.

Family
To be eligible for assistance, an applicant must qualify as a family. Family as defined by HUD includes, but is not limited to the following, regardless of actual or perceived sexual orientation, genderidentity, or maritalstatus, 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 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 hasthe 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.

HACSB Policy
A family also includes two or more individuals who are not related by blood, marriage, adoption, or other operation of law but who either can demonstrate that they have lived together previously or certify that each individual’s income and other resources will be available to meet the needs of the family.

Each family must identify the individuals to be included in the family at the time of application, and must notify 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. 96 Item 6.
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3‐I.C. FAMILY BREAKUP AND REMAINING MEMBER OF TENANT FAMILY Family Breakup [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 resultsfrom 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 in a divorce orseparation decree, the PHA is bound by the court’s determination of which family members continue to receive assistance.

HACSB Policy
When a family on the waiting list breaks up into two otherwise eligible families, only one of the new families may retain the original application date. Otherformerfamily 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 determination, 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 isthe 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. If all factors are equal, the assistance will remain with the current head of household.

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 97 Item 6.
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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.”
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3‐I.D. HEAD OF HOUSEHOLD [24 CFR 5.504(b)]
Head of household means the adult member of the family who is considered the head for purposes of determining income eligibility and rent. The head of household is responsible for ensuring that the family fulfills all of its responsibilities under the program, alone or in conjunction with a co‐head or spouse.

HACSB 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, CO‐HEAD, AND OTHER ADULT
A family may have a spouse or co‐head, but not both [HUD‐50058 IB, p. 13].

Spouse means the marriage partner of the head of household.

HACSB Policy
A marriage partner includes the partner in a "common law" marriage as defined in state law. The term “spouse” does not apply to friends, roommates, or significant others who are not marriage partners. A minor who is emancipated under state law may be designated as a spouse.

A co‐head 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 co‐head.

HACSB Policy
Minors who are emancipated under state law may be designated as a co‐head.

Other adult means a family member, other than the head, spouse, or co‐head, who is 18 years of age or older. Foster adults and live‐in aides are not considered other adults. 99 Item 6.
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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, co‐head, 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
HACSB Policy
Dependentsthat are subject to a joint custody arrangement will be considered a member of the family, if they live with the applicant or participant family 51 percent or more of the time, or if the family has been granted physical custody of the minor child.

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 school records, court orders, or an IRS return showing which family has claimed the child for income tax purposes.
3‐I.G. FULL‐TIME STUDENT [24 CFR 5.603; 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 co‐head, 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.

HACSB Policy
Full‐time student dependents are any full‐time student household member, other than the head of household, spouse, co‐head, household member over the age of 24, or any member with their own dependents.  Dependents will be defined by the IRS definition of Qualifying Child or Qualifying Relative.  (IRS Publication 501) 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. 100
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Elderly Family
An elderly family is one in which the head, spouse, co‐head, 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.
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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 co‐head 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 co‐head is a person with disabilities.

Identifying disabled families is important because these families qualify for the disabled family allowance as described in Chapter 6.

Even though persons with drug or alcohol dependencies are considered persons with disabilities, this does not prevent the PHA from denying assistance for reasons related to alcohol and drug abuse in accordance with the policies found in Part III of this chapter, or from terminating assistance in accordance with the policies in Chapter 12. 3‐I.J. GUESTS [24 CFR 5.100]
A guest is a person temporarily staying in the unit with the consent of a member of the household who has expressed or implied authority to so consent.

HACSB Policy
A guest can remain in the assisted unit no longer than 14 consecutive days or a total of 30 cumulative calendar days during any 12‐month period.

Children who are subject to a joint custody arrangement or for whom a family has visitation privileges, that are not included as a family member because they live outside of the assisted household more than 50 percent of the time, are not subject to the time limitations of guests as described above.

A family may request an exception to this policy for valid reasons (e.g., care of a relative recovering from a medical procedure is expected to last 40 consecutive days).

Upon request, families must identify and provide documentation of the residence to which the guest will return. In the absence of such documentation, the guest will be considered an unauthorized household member. The PHA may terminate assistance for families that allow unauthorized household members (see Chapter 12 of this Plan). 102
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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/adultsis 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].

HACSB Policy
A foster child is a child that is in the legal guardianship or custody of a state, county, or private adoption or foster care agency, yet is cared for by foster parents in their own homes, under some kind of short‐term or long‐term foster care arrangement with the custodial agency.

A foster child or foster adult may be allowed to reside in the unit if their presence would not result in a violation of HQS space standards according to 24 CFR 982.401.

Children that are temporarily absent from the home as a result of placement in foster care are discussed in Section 3‐I.L.
3‐I.L. ABSENT FAMILY MEMBERS
Individuals may be absent from the family, either temporarily or permanently, for a variety of reasons including educational activities, placement in foster care, employment, illness, incarceration, and court order.

Definitions of Temporarily and Permanently Absent
HACSB Policy
Generally an individual who is or is expected to be absent from the assisted unit for 90 consecutive days or less is considered temporarily absent and continues to be considered a family member. Generally an individual who is or is expected to be absent from the assisted unit for more than 90 consecutive daysis considered permanently absent and no longer a family member. Exceptions to this general policy are discussed below.

Absent Students
HACSB Policy
When someone who has been considered a family member attends school away from home, the person will continue to be considered a family member unless information becomes available to the PHA indicating that the student has established a separate household or the family declares that the student has established a separate household.

Members 18 years of age or older who are attending school away from home must still attend required household appointments.  Should they not be able or willing to attend 103
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appointments they will be considered absent family members and will be removed from the household.
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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.

HACSB Policy
If a child has been placed in foster care, the PHA will verify with the appropriate agency whether and when the child is expected to be returned to the home. Unless the agency confirms that the child has been permanently removed from the home, the child will be counted as a family member.

Absent Head, Spouse, or Co‐head
HACSB Policy
An employed head, spouse, or co‐head absent from the unit more than 90 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].

HACSB Policy
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 for up to 180 days. 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
HACSB Policy
The family 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 chapter. 105
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3‐I.M. LIVE‐IN AIDE
A live‐in aide is a person who resides with one or more elderly persons, or near‐elderly persons, or persons with disabilities, and who: (1) is determined to be essential to the care and well‐being of the 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.

HACSB Policy
A family’s request for a live‐in aide must be made in writing. Written verification will be required from a reliable, knowledgeable professional, such as a doctor, or clinical social worker, that the live‐in aide is essential for the care and well‐being of the elderly, near‐ elderly, or disabled family member. Continued approval is subject to PHA verification at each annual reexamination.

If already housed, the family will be required to submit written authorization from the landlord naming the proposed live‐in aide and stating that they will allow him/her to reside in the unit.   This must be received by HACSB on or before the scheduled appointment to add the live in aide.

In addition, the family and live‐in aide will be required to submit a certification stating that the live‐in aide is:
1) Not obligated for the support of the person(s) needing the care and; 2) Would not be living in the unit except to provide the necessary supportive services.

The proposed live‐aide must pass the HACSB eligibility process for live‐in aides.

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 has committed fraud, bribery or any other corrupt or criminal act in connection with any federal housing program; or
The person has committed drug‐related criminal activity or violent criminal activity; or
The person currently owes rent or other amounts to the PHA or to another PHA in connection with Section 8 or public housing assistance under the 1937 Act; or The person has been terminated from Section 8 assistance or evicted from HACSB owned/managed housing for program violations.
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The PHA will notify the family of its decision in writing within 10 business days of receiving a request for a live‐in aide, including all required documentation related to the request.

If approved, the live‐in aide must attend recertification appointments with the family. 107
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PART II: BASIC ELIGIBILITY CRITERIA
3‐II.A. INCOME ELIGIBILITY AND TARGETING
Income Limits
HUD establishes income limits for all areas of the country and publishes them annually in the Federal Register. They are based upon estimates of median family income with adjustments for family size. The income limits are used to determine eligibility for the program and for income targeting purposes as discussed in this section.

Definitions of the Income Limits [24 CFR 5.603(b)]
Low‐income family. A family whose annual income does not exceed 80 percent of the median income for the area, adjusted for family size.

Very low‐income family. A family whose annual income does not exceed 50 percent of the median income for the area, adjusted for family size.

Extremely low‐income family. A family whose annual income does not exceed 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 limit 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 to the HCV program [24 CFR 982.4]
HACSB Policy
The PHA will consider a family to be continuously assisted if the family was leasing a unit under any 1937 Housing Act program at the time they were issued a voucher by the PHA.  A low‐income family that qualifies for voucher assistance as a non‐purchasing household living in HOPE 1 (public housing homeownership), HOPE 2 (multifamily housing homeownership) developments, or other HUD‐assisted multifamily homeownership programs covered by 24 CFR 248.173
 A low‐income or moderate‐income family that is displaced as a result of the prepayment of a mortgage or voluntary termination of a mortgage insurance contract on eligible low‐income housing as defined in 24 CFR 248.101
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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.

HACSB Policy
HACSB has established that the income eligibility limit for initial occupancy into the Section 8 program is set at 80 percent of the area median income (Low Income).

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. 109
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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 noncitizensthat have eligible immigration status. At least one family member must be a citizen, national, or noncitizen with eligible immigration status in order for the family to qualify for any level of assistance.

All applicant families must be notified of the requirement to submit evidence of their citizenship status when they apply. Where feasible, and in accordance with the PHA’s Limited English Proficiency Plan, the notice must be in a language that is understood by the individual if the individual is not proficient in English.

Declaration [24 CFR 5.508]
HUD requires each family member to declare whether the individual is a citizen, a national, or an eligible noncitizen, except those members who elect not to contend that they have eligible immigration status. Those who elect not to contend their status are considered to be ineligible noncitizens. For citizens, nationals and eligible noncitizens the declaration must be signed personally by the head, spouse, co‐head, and any other family member 18 or older, and by a parent or guardian for minors. The family must identify in writing any family members who elect not to contend their immigration status (see Ineligible Noncitizens below). No declaration is required for live‐in aides, foster children, or foster adults.

U.S. Citizens and Nationals
In general, citizens and nationals are required to submit only a signed declaration as verification of their status. However, HUD regulations permit the PHA to request additional documentation of their status, such as a passport.

HACSB Policy
Family members who declare citizenship or nationalstatus will not be required to provide additional documentation unless the PHA receives information indicating that an individual’s declaration may not be accurate.

Eligible Noncitizens
In addition to providing a signed declaration, those declaring eligible noncitizen status must sign a verification consent form and cooperate with PHA efforts to verify their immigration status as described in Chapter 7. The documentation required for establishing eligible noncitizen status varies depending upon factorssuch asthe 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].
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Ineligible Noncitizens
Those noncitizens who do not wish to contend their immigration status are required to have their nameslisted on a non‐contending family memberslisting,signed by the head,spouse, or co‐head (regardless of citizenship status), indicating their ineligible immigration status. The PHA is not required to verify a family member’s ineligible status and is not required to report an individual’s unlawful presence in the U.S. to the United States Citizenship and Immigration Services (USCIS).

Providing housing assistance to noncitizen students is prohibited [24 CFR 5.522]. This prohibition extends to the noncitizen spouse of a noncitizen student as well as to minor children who accompany or follow to join the noncitizen student. Such prohibition does not extend to the citizen spouse of a noncitizen student or to the children of the citizen spouse and noncitizen student. Such a family is eligible for prorated assistance as a mixed family.

Mixed Families
A family is eligible for assistance as long as at least one member is a citizen, national, or eligible noncitizen. Families that include eligible and ineligible individuals are considered mixed families.

Such families will be given notice that their assistance will be prorated, and that they may request a hearing if they contest this determination. See Chapter 6 for a discussion of how rents are prorated, and Chapter 16 for a discussion of informal hearing procedures.

Ineligible Families [24 CFR 5.514(d), (e), and (f)]
A PHA may elect to provide assistance to a family before the verification of the eligibility of the individual or one family member [24 CFR 5.512(b)]. Otherwise, no individual or family may be assisted prior to the affirmative establishment by the PHA that the individual or at least one family member is eligible. 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)].

HACSB Policy
The PHA will not provide assistance to a family before the verification of at least one family member.

When a PHA determines that an applicant family does not include any citizens, nationals, or eligible noncitizens, following the verification process, the family will be sent a written notice within 10 business days of the determination.

The notice will explain the reasons for the denial of assistance, that the family may be eligible for proration of assistance, and will advise the family of its right to request an appeal to the United States Citizenship and Immigration Services (USCIS), or to request an informal hearing with the PHA. The informal hearing with the PHA may be requested in lieu of the USCIS appeal, or at the conclusion of the USCIS appeal process. The notice must also inform the applicant family that assistance may not be delayed until the conclusion of the USCIS appeal process, but that it may be delayed pending the completion of the informal hearing process.

Informal hearing procedures are contained in Chapter 16. 111
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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.

HACSB 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 must disclose the complete and accurate social security number (SSN) assigned to each household member, and the documentation necessary to verify each SSN.   If a child under age 6 has been added to an applicant family within 6 months prior to voucher issuance, an otherwise eligible family may be admitted to the program and must disclose and document the child’s SSN within 90 days of the effective date of the initial HAP contract.  A detailed discussion of acceptable documentation is provided in Chapter 7.

Note: These requirements do not apply to noncitizens who do not contend eligible immigration status.

In addition, each participant who has not previously disclosed an SSN, has previously disclosed an SSN that HUD or the SSA determined was invalid, or has been issued a new SSN must submit their complete and accurate SSN and the documentation required to verify the SSN at the time of the next interim or annual reexamination or recertification. Participants age 62 or older as of January 31, 2010, whose determination of eligibility was begun before January 31, 2010, are exempt from this requirement and remain exempt even if they move to a new assisted unit.

The PHA must deny assistance to an applicant family if they do not meet the SSN disclosure and documentation requirements contained in 24 CFR 5.216.
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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 co‐head, regardless of age, to sign form HUD‐9886, Authorization for the Release of Information/Privacy Act Notice, and other consent forms as needed to collect information relevant to the family’s eligibility and level of assistance. Chapter 7 provides detailed information concerning the consent forms and verification requirements.

The PHA must deny admission to the program if any member of the applicant family fails to sign and submit the consent forms for obtaining information in accordance with 24 CFR 5, Subparts B and F [24 CFR 982.552(b)(3)].
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3‐II.E. STUDENTS ENROLLED IN INSTITUTIONS OF HIGHER EDUCATION [24 CFR 5.612, FR Notice 4/10/06, FR Notice 9/21/2016]
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 his/her parents in accordance with PHA policy, the income of the student’s parents will not be considered in determining the student’s eligibility.

The new law does not apply to students who reside with parents who are applying to receive HCV assistance. It islimited to students who are seeking assistance on their own,separately from their parents.

Definitions
In determining whether and how the new eligibility restrictions apply to a student, 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.
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Independent Student
HACSB Policy
The PHA will consider a student “independent” from his or her 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 his/her 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
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)
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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 his/her parents pursuant to IRS regulations, as demonstrated on the parents’ most recent tax forms.

The individual provides a certification of the amount of financial assistance that will be provided by his/her 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 meetsthe above criteria in accordance with the policies in Section 7‐II.E.
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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).

Parents
HACSB Policy
For purposes ofstudent eligibility restrictions, the definition of parentsincludes biological or adoptive parents, stepparents (as long as they are currently married to the biological or adoptive parent), and guardians (e.g., grandparents, aunt/uncle, godparents, etc).

Person with Disabilities
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
HACSB Policy
A veteran is a person who served in the active military, naval, or air service and who was discharged or released from such service under conditions other than dishonorable.

Vulnerable Youth
HACSB 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
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Determining Student Eligibility
If a student is applying for assistance on his/her own, apart from his/her 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 his/her 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.

HACSB 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 his/her 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. 118
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Determining Parental Income Eligibility
HACSB 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 his/her parents and has not had contact with or does not know where to contact his/her 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.

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.
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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.

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, or stalking if the applicant is otherwise qualified for assistance (See section 3‐III.G.)
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3‐III.B. MANDATORY DENIAL OF ASSISTANCE [24 CFR 982.553(a)] HUD requires the PHA to deny assistance in the following cases:
 Any member of the household has been evicted from federally‐assisted housing in the last 3 years for drug‐related criminal activity. HUD permits, but does not require, the PHA to admit an otherwise‐eligible family if the household member has completed a PHA‐approved drug rehabilitation program or the circumstances which led to eviction no longer exist (e.g., the person involved in the criminal activity no longer lives in the household).

HACSB Policy
The PHA will admit an otherwise‐eligible family who was evicted from federally‐assisted housing within the past 3 years for drug‐related criminal activity, if the PHA is able to verify that the household member who engaged in the criminal 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 sale or manufacture of illegal drugs.

HACSB Policy
Currently engaged in is defined as any use,sale, or manufacture of illegal drugs during the previous twelve months.
 The PHA hasreasonable 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.

HACSB Policy
In determining reasonable cause, the PHA will consider all credible evidence, including but not limited to, any record of convictions, arrests, or evictions of household members related to the use of illegal drugs or the abuse of alcohol. A conviction will be given more weight than an arrest. The PHA will also consider evidence from treatment providers or community‐based organizations providing services to household members.  Any household member has ever been convicted of drug‐related criminal activity for the production or manufacture of methamphetamine on the premises of federally assisted housing
HACSB Policy
The PHA will deny assistance if any household member has ever been convicted of drug‐ related criminal activity for the production or manufacture of methamphetamine, regardless of whether the activity took place on the premises of federally assisted housing or on other premises.
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 Any household member is subject to a lifetime registration requirement under a state sex offender registration program
HACSB Policy
The PHA will deny assistance if any household member is subject to any registration requirement under a state sex offender registration program 122
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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.

HACSB Policy
If any household member is currently engaged in, or has engaged in any of the following criminal activities, within the past five years, the family will be denied assistance.

Drug‐related criminal activity, defined by HUD as the illegal manufacture, sale, distribution, or use of a drug, or the possession of a drug with intent to manufacture, sell, distribute or use the drug [24 CFR 5.100].

Violent criminal activity, defined by HUD as any criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force substantial enough to cause, or be reasonably likely to cause, serious bodily injury or property damage [24 CFR 5.100].

Criminal activity that may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents or persons residing in the immediate vicinity; or
Criminal activity that may threaten the health or safety of property owners, management staff, and persons performing contract administration functions or other responsibilities on behalf of the PHA (including a PHA employee or a PHA contractor, subcontractor, or agent).

Immediate vicinity means within a three‐block radius of the premises.

Evidence of such criminal activity includes, but is not limited to:

Any conviction for drug‐related or violent criminal activity within the past 5 years.

Records of arrests for drug‐related or violent criminal activity within the past 5 years, although a record of arrest(s) will not be used as the basis for the denial or proof that the applicant engages in disqualifying criminal activity.

Any record of eviction from public or privately‐owned housing as a result of criminal activity within the past 5 years.

A conviction for drug‐related or violent criminal activity will be given more weight than an arrest for such activity.
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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.
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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.

Per the alternative requirements listed in the Federal Register notice dated December 29, 2014, PHAs are no longer permitted to deny assistance to a family because the family previously failed to meet its obligations under the Family Self‐Sufficiency (FSS) program [FR Notice 12/29/14].

HACSB 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 five years.

Any PHA has ever terminated assistance under the program for any member of the family.

Any family member has committed fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program.

The family owes rent or other amounts to any PHA in connection with the HCV, Certificate, Moderate Rehabilitation or public housing programs, unlessthe family repays the full amount of the debt prior to being selected from the waiting list.

If the family has not reimbursed any PHA for amounts the PHA paid to an owner under a HAP contract for rent, damages to the unit, or other amounts owed by the family under the lease, unless the family repays the full amount of the debt prior to being selected from the waiting list.

The family has breached the terms of a repayment agreement entered into with the PHA, unless the family repays the full amount of the debt covered in the repayment agreement prior to being selected from the waiting list.

A family member has engaged in or threatened violent or abusive behavior toward PHA personnel.

Abusive or violent behavior towards PHA personnel includes verbal as well as physical abuse or violence. Use of racial epithets, or other language, written or oral, that is customarily used to intimidate may be considered abusive or violent behavior.

Threatening refers to oral or written threats or physical gestures that communicate intent to abuse or commit violence.
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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.
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3‐III.D. SCREENING
Screening for Eligibility
PHAs are authorized to obtain criminal conviction records from law enforcement agencies to screen applicants for admission to the HCV program. This authority assists the PHA in complying with HUD requirements and PHA policies to deny assistance to applicants who are engaging in or have engaged in certain criminal activities. In order to obtain access to the records the PHA must require every applicant family to submit a consent form signed by each adult household member [24 CFR 5.903].

HACSB Policy
The PHA will perform a criminal background check for every adult household member.

The PHA will run a live scan fingerprint check through the Federal Bureau of Investigation (FBI) system, for each adult household member.

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 islocated, as well asin any otherstate where a household member is known to have resided [24 CFR 982.553(a)(2)(i)].

HACSB Policy
The PHA will use an agency approved database to screen applicants for admission.

Additionally, PHAs must ask whether the applicant, or any member of the applicant’s household, is subject to a 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)].
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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.

HACSB Policy
The PHA will not conduct additional screening to determine an applicant family’s suitability for tenancy, unless in the case of PHA owned housing, in which case suitability will be screened.

Suitability for PHA owned housing will include consideration of the following factors:

History of 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 Behavior of all household members as related to the grounds for denial Compliance with any other essential conditions of tenancy Background checks will include:

Past Performance in Meeting Financial Obligations, Especially Rent PHA and landlord references for the past five years, gathering information about past performance meeting rental obligations such as rent payment record, late payment record, whether the PHA/landlord ever began or completed lease termination for non‐payment, and whether utilities were ever disconnected in the unit. PHAs and landlords will be asked if they would rent to the applicant family again.

If an applicant has no rental payment history the PHA will check court records of eviction actions and other financial judgments, and credit reports. A lack of credit history will not disqualify someone from becoming a public housing resident, but a poor credit rating may.

Applicants with no rental payment history will also be asked to provide the PHA with personal references. The references will be requested to complete a verification of the applicant’s ability to pay rent if no other documentation of ability to meet financial obligations is available.

If previous landlords or the utility company do not respond to requests from the PHA, the applicant may provide other documentation that demonstrates their ability to meet financial obligations (e.g. rent receipts, cancelled checks, etc.)
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Disturbances of Neighbors, Destruction of Property or Living or Housekeeping Habits at Prior Residences that May Adversely Affect Health, Safety, or Welfare of Other Tenants, or Cause Damage to the Unit or the Development PHA and landlord references for the past five years, gathering information on whether the applicant kept a unit clean, safe and sanitary; whether they violated health or safety codes; whether any damage was done by the applicant to a current or previous unit or the development, and, if so, how much the repair of the damage cost; whether the applicant’s housekeeping caused insect or rodent infestation; and whether the neighbors complained about the applicant or whether the police were ever called because of disturbances.

Police and court records within the past five years will be used to check for any evidence of disturbance of neighbors or destruction of property that might have resulted in arrest or conviction.

Home visits may be used to determine the applicant’s ability to care for the unit.

Any history of disturbances or disruptive behavior at any PHA owned or managed property including affiliated offices.

The owner is responsible for screening and selection of the family to occupy the owner’s unit.

The PHA must inform the owner that screening and selection for tenancy is the responsibility of the owner. An owner may consider a family’s history with respect to factors such as: payment of rent and utilities, caring for a unit and premises, respecting the rights of other residents to the peaceful enjoyment of their housing, criminal activity that is a threat to the health, safety or property of others, and compliance with other essential conditions of tenancy.

HUD requires the PHA to provide prospective owners with the family's current and prior address (as shown in PHA records) and the name and address (if known) of the owner at the family's current and prior addresses. HUD permits the PHA to provide owners with additional information, as long as families are notified that the information will be provided, and the same type of information is provided to all owners.

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, 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)].

HACSB 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 HQS inspection or before.

Upon request, the PHA will provide the owner with a family’s tenancy history, as known.

The PHA will not provide any criminal history information to the owner. 129
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3‐III.E. CRITERIA FOR DECIDING TO DENY ASSISTANCE
Evidence [24 CFR 982.553(c)]
HACSB Policy
The PHA will use the concept of the preponderance of the evidence as the standard for making all admission decisions.

Preponderance of the evidence is defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not.

Preponderance of the evidence may not be determined by the number of witnesses, but by the greater weight of all evidence.

Consideration of Circumstances [24 CFR 982.552(c)(2)]
HUD authorizes the PHA to consider all relevant circumstances when deciding whether to deny assistance based on a family’s past history except in the situations for which denial of assistance is mandatory (see Section 3‐III.B).

HACSB 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 o 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, 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 of arrest(s) will not be used as the basis for denial, an arrest may, however, trigger an investigation to determine whether the applicant actually engaged in disqualifying criminal activity. As part of its investigation, the PHA may obtain the police report associated with the arrest and consider the reported circumstances of the arrest. The PHA may also consider:

Any statements made by witnesses or the applicant not included in the police report
Whether criminal charges were filed
Whether, if filed, criminal charges were abandoned, dismissed, not prosecuted, or ultimately resulted in an acquittal
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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 orsuccessful completion of a supervised drug or alcohol rehabilitation program, or evidence of otherwise having been rehabilitated successfully.
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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)].

HACSB 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.

HACSB 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 stated disability. If so, upon the family’s request, the PHA will determine whether admitting the family as a reasonable accommodation is appropriate. 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.
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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.

If the PHA determinesthat 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.

HACSB Policy
The family will be notified of a decision to deny assistance in writing within 10 business days of the determination.

If a PHA uses a criminal record or sex offender registration information obtained under 24 CFR 5, Subpart J, as the basis of a denial, a copy of the record must precede the notice to deny, with an opportunity for the applicant to dispute the accuracy and relevance of the information before the PHA can move to deny the application. In addition, a copy of the record must be provided to the subject of the record [24 CFR 5.903(f) and 5.905(d)]. The PHA must give the family an opportunity to dispute the accuracy and relevance of that record, in the informal review process in accordance with program requirements [24 CFR 982.553(d)].

HACSB 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. 133
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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 the HCV program “on the basis or as a direct 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 confidentiality 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.

HACSB 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 include a copy of the form HUD‐5382.  The PHA will request that an applicant wishing to claim protection under VAWA notify the PHA within 1business days.
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Documentation
Victim Documentation [24 CFR 5.2007]
HACSB 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.

Perpetrator Documentation
HACSB 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 hassuccessfully 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 hassought or isreceiving assistance in addressing the abuse. The signer must attest under penalty of perjury to his or her belief that the rehabilitation was successfully completed or is progressing successfully. The victim and perpetrator must also sign or attest to the documentation.
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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
The term “developmental disability” means a severe, chronic disability of an individual that:
(i) is attributable to a mental or physical impairment or combination of mental and physical impairments;
(ii) is manifested before the individual attains age 22; (iii) is likely to continue indefinitely;
(iv) results in substantial functional limitations in 3 or more of the following areas of major life activity: (I) Self‐care, (II) Receptive and expressive language, (III) Learning, (IV) Mobility, (V) Self‐direction, (VI) Capacity for independent living, (VII) Economic self‐sufficiency; and
(v) reflects the individual’s need for a combination and sequence of special, interdisciplinary, or generic services, individualized supports, or other forms of assistance that are of lifelong or extended duration and are individually planned and coordinated.
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(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 his or her ability to live independently, and is of such a nature that the ability to live independently could be improved by more suitable housing conditions.

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. 137
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Individual with Handicaps [24 CFR 8.3]
Individual with handicaps means any person who has a physical or mental impairment that substantially limits one or more major life activities; has a record of such an impairment; or is regarded as having such an impairment. The term does not include any individual who is an alcoholic or drug abuser whose current use of alcohol or drugs prevents the individual from participating in the program or activity in question, or whose participation, by reason of such current alcohol or drug abuse, would constitute a direct threat to property or the safety of others.

As used in this definition, the phrase:
(1) Physical or mental impairment includes:
(a) Any physiological disorder or condition, cosmetic disfigurement, or anatomical loss affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive; digestive; genito‐urinary; hemic and lymphatic; skin; and endocrine; or (b) Any mental or psychological disorder, such as mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities. The term physical or mental impairment includes, but is not limited to, such diseases and conditions as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental retardation, emotional illness, drug addiction and alcoholism. (2) Major life activities means functions such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning and working. (3) Has a record of such an impairment means has a history of, or has been misclassified as having, a mental or physical impairment that substantially limits one or more major life activities.
(4) Is regarded as having an impairment means:
(a) Has a physical or mental impairment that does not substantially limit one or more major life activities but that is treated by a recipient as constituting such a limitation; (b) Has a physical or mental impairment that substantially limits one or more major life activities only as a result of the attitudes of others toward such impairment; or (c) Has none of the impairments defined in paragraph (1) of this section but is treated by a recipient as having such an impairment.

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EXHIBIT 3‐2: DEFINITION OF INSTITUTION OF HIGHER EDUCATION [20 U.S.C. 1001 and 1002]
Eligibility of Students for Assisted Housing Under Section 8 of the U.S. Housing Act of 1937; Supplementary Guidance; Notice [Federal Register, April 10, 2006] Institution of Higher Education shall have the meaning given this term in the Higher Education Act of 1965 in 20 U.S.C. 1001 and 1002.

Definition of ‘‘Institution of Higher Education’’ From 20 U.S.C. 1001 (a) Institution of higher education. For purposes of this chapter, other than subchapter IV and part C of subchapter I of chapter 34 of Title 42, the term ‘‘institution of higher education’’ means an educational institution in any State that
(1) Admits as regular students only persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate; (2) Is legally authorized within such State to provide a program of education beyond secondary education;
(3) Provides an educational program for which the institution awards a bachelor’s degree or provides not less than a 2‐year program that is acceptable for full credit toward such a degree;
(4) Is a public or other nonprofit institution; and
(5) Is accredited by a nationally recognized accrediting agency or association, or if not so accredited, is an institution that has been granted pre‐accreditation status by such an agency or association that has been recognized by the Secretary for the granting of pre‐ accreditation status, and the Secretary has determined that there is satisfactory assurance that the institution will meet the accreditation standards of such an agency or association within a reasonable time.
(b) Additional institutions included. For purposes of this chapter, other than subchapter IV and part C of subchapter I of chapter 34 of Title 42, the term ‘‘institution of higher education’’ also includes—
(1) Any school that provides not less than a 1‐year program of training to prepare students for gainful employment in a recognized occupation and that meets the provision of paragraphs (1), (2), (4), and (5) of subsection (a) of this section; and (2) A public or nonprofit private educational institution in any State that, in lieu of the requirement in subsection (a)(1) of this section, admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located.
(c) List of accrediting agencies. For purposes of this section and section 1002 of this title, the Secretary shall publish a list of nationally recognized accrediting agencies or associations that the Secretary determines, pursuant to subpart 2 of part G of subchapter IV of this chapter, to be reliable authority as to the quality of the education or training offered. 140
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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 education’’ for purposes of subchapter IV of this chapter and part C ofsubchapter I of chapter 34 of title 42 includes, in addition to the institutions covered by the definition in section 1001 of this title— (A) A proprietary institution of higher education (as defined in subsection (b) of this section);
(B) A postsecondary vocational institution (as defined in subsection (c) of this section); and
(C) Only for the purposes of part B of subchapter IV of this chapter, an institution outside the United States that is comparable to an institution of higher education as defined in section 1001 of this title and that has been approved by the Secretary for the purpose of part B of subchapter IV of this chapter.
(2) Institutions outside the United States
(A) In general. For the purpose of qualifying as an institution under paragraph (1)(C), the Secretary shall establish criteria by regulation for the approval of institutions outside the United States and for the determination that such institutions are comparable to an institution of higher education as defined in section 1001 of this title (except that a graduate medical school, or a veterinary school, located outside the United States shall not be required to meet the requirements of section 1001 (a)(4) of this title).

Such criteria shall include a requirement that a student attending such school outside the United States is ineligible for loans made, insured, or guaranteed under part B of subchapter IV of this chapter unless—
(i) In the case of a graduate medical school located outside the United States— (I)(aa) At least 60 percent of those enrolled in, and at least 60 percent of the graduates of, the graduate medical school outside the United States were not persons described in section 1091(a)(5) of this title in the year preceding the year for which a student is seeking a loan under part B of subchapter IV of this chapter; and
(bb) At least 60 percent of the individuals who were students or graduates of the graduate medical school outside the United States or Canada (both nationals of the United States and others) taking the examinations administered by the Educational Commission for Foreign Medical Graduates received a passing score in the year preceding the year for which a student isseeking 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
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(ii) In the case of a veterinary school located outside the United States that does not meet the requirements ofsection 1001(a)(4) of thistitle, 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 standardsto standardsfor accreditation applied to United States medical schools.
(ii) Special rule if the accreditation standards described in clause (i) are determined not to be comparable, the foreign medical school shall be required to meet the requirements of section 1001 of this title.
(C) Failure to release information. The failure of an institution outside the United States to provide, release, or authorize release to the Secretary of such information as may be required by subparagraph (A) shall render such institution ineligible for the purpose of part B of subchapter IV of this chapter.
(D) Special rule. If, pursuant to this paragraph, an institution loses eligibility to participate in the programs under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, then a student enrolled atsuch institution may, notwithstanding such loss of eligibility, continue to be eligible to receive a loan under part B while attending such institution for the academic year succeeding the academic year in which such loss of eligibility occurred.
(3) Limitations based on course ofstudy 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;
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(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 not provide a 2‐or 4‐year program of instruction (or both) for which the institution awards a bachelor’s degree or an associate’s degree, respectively, except that the Secretary may waive the limitation contained in this subparagraph if a nonprofit institution demonstrates to the satisfaction of the Secretary that the institution exceeds such limitation because the institution serves, through contracts with Federal, State, or local government agencies, significant numbers of students who do not have a secondary school diploma or its recognized equivalent.
(4) Limitations based on management. An institution shall not be considered to meet the definition of an institution of higher education in paragraph (1) if— (A) The institution, or an affiliate of the institution that has the power, by contract or ownership interest, to direct or cause the direction of the management or policies of the institution, has filed for bankruptcy, except that this paragraph shall not apply to a nonprofit institution, the primary function of which is to provide health care educational services (or an affiliate of such an institution that has the power, by contract or ownership interest, to direct or cause the direction of the institution’s management or policies) that files for bankruptcy under chapter 11 of title 11 between July 1, 1998, and December 1, 1998; or
(B) The institution, the institution’s owner, or the institution’s chief executive officer has been convicted of, or has pled nolo contendere or guilty to, a crime involving the acquisition, use, or expenditure of funds under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, or has been judicially determined to have committed fraud involving funds under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42.
(5) Certification. The Secretary shall certify an institution’s qualification as an institution of higher education in accordance with the requirements of subpart 3 of part G of subchapter IV of this chapter.
(6) Loss of eligibility. An institution of higher education shall not be considered to meet the definition of an institution of higher education in paragraph (1) if such institution is removed from eligibility for funds under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42 as a result of an action pursuant to part G of subchapter IV of this chapter.
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(b) Proprietary institution of higher education
(1) Principal criteria. For the purpose of this section, the term ‘‘proprietary institution of higher education’’ means a school that—
(A) Provides an eligible program of training to prepare students for gainful employment in a recognized occupation;
(B) Meets the requirements of paragraphs (1) and (2) of section 1001 (a) of this title; (C) Does not meet the requirement of paragraph (4) of section 1001 (a) of this title; (D) Is accredited by a nationally recognized accrediting agency or association recognized by the Secretary pursuant to part G of subchapter IV of this chapter; (E) Has been in existence for at least 2 years; and
(F) Has at least 10 percent of the school’s revenues from sources that are not derived from funds provided under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, as determined in accordance with regulations prescribed by the Secretary.
(2) Additional institutions. The term ‘‘proprietary institution of higher education’’ also includes a proprietary educational institution in any State that, in lieu of the requirement in paragraph (1) of section 1001 (a) of this title, admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located.
(c) Postsecondary vocational institution.
(1) Principal criteria. For the purpose of this section, the term ‘‘postsecondary vocational institution’’ means a school that—
(A) Provides an eligible program of training to prepare students for gainful employment in a recognized occupation;
(B) Meets the requirements of paragraphs (1), (2), (4), and (5) of section 1001 (a) of this title; and
(C) Has been in existence for at least 2 years.
(2) Additional institutions. The term ‘‘postsecondary vocational institution’’ also includes an educational institution in any State that, in lieu of the requirement in paragraph (1) of section 1001 (a) of this title, admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located. 144
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APPLICATIONS, WAITING LIST AND TENANT SELECTION

INTRODUCTION
When a family wishes to receive assistance under the HCV program, the family must submit an application that provides the PHA with the information needed to determine the family’s eligibility. HUD requires the PHA to place all families that apply for assistance on a waiting list.

When HCV assistance becomes available, the PHA must select families from the waiting list in accordance with HUD requirements and PHA policies as stated in the administrative plan and the annual plan.

The PHA is required to adopt clear policies and procedures for accepting applications, placing families on the waiting list, and selecting families from the waiting list, and must follow these policies and procedures consistently. The actual order in which families are selected from the waiting list can be affected if a family has certain characteristics designated by HUD or the PHA that justify their selection. Examples of this are the selection of families for income targeting and the selection of families that qualify for targeted funding.

HUD regulations require that all families have an equal opportunity to apply for and receive housing assistance, and that 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 ensuresthatthe PHA will be in compliance with allrelevant fair housing requirements, as described in Chapter 2.

This chapter describes HUD and PHA policies for taking applications, managing the waiting list and selecting families for HCV assistance. The policies outlined in this chapter are organized into three sections, as follows:

Part I: The Application Process. This part provides an overview of the application process, and discusses how applicants can obtain and submit applications.  It also specifies how the PHA will handle the applications it receives.

Part II: Managing the Waiting List. This part presents the policies that govern how the PHA’s waiting list isstructured, when it is opened and closed, and how the public is notified of the opportunity to apply for assistance. It also discusses the process the PHA will use to keep the waiting list current.

Part III: Selection for HCV Assistance. This part describes the policies that guide the PHA in selecting families for HCV assistance as such assistance becomes available. It also specifies how in‐person interviews will be used to ensure that the PHA has the information needed to make a final eligibility determination.
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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 waiting list. This part also describes the PHA’s obligation to ensure the accessibility of the application process to elderly persons, people with disabilities, and people with limited English proficiency (LEP).
4‐I.B. APPLYING FOR ASSISTANCE [HCV GB, pp. 4‐11 – 4‐16, Notice PIH 2009‐36] Any family that wishes to receive HCV assistance must apply for admission to the program. HUD permits the PHA to determine the format and content of HCV applications, as well how such applications will be made available to interested families and how applications will be accepted by the PHA. The PHA must include Form HUD‐92006, Supplement to Application for Federally Assisted Housing, as part of the PHA’s application.

HACSB Policy
Depending upon the length of time that applicants may need to wait to receive assistance, the PHA may use a one‐ or two‐step application process.

A one‐step process will be used when it is expected that a family will be selected from the waiting list within 60 days of the date of application. At application, the family must provide all of the information necessary to establish family eligibility and level of assistance.

A two‐step process will be used when it is expected that a family will not be selected from the waiting list for at least 60 days from the date of application. Under the two‐step application process, the PHA initially will require families to provide only the information needed to make an initial assessment of the family’s eligibility, and to determine the family’s placement on the waiting list. The family will be required to provide all of the information necessary to establish family eligibility and level of assistance when the family is selected from the waiting list.

Families may obtain and complete application forms from the PHA’s website at any time.

Once the family has completed their online application, the family will receive an electronic notice of confirmation.
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Elderly and Disabled Populations [24 CFR 8 and HCV GB, pp. 4‐11 – 4‐13] The PHA must take steps to ensure that the application process is accessible to those who might have difficulty complying with the normal, standard PHA application process. This could include people with disabilities, certain elderly individuals, as well as persons with limited English proficiency (LEP). The PHA must provide reasonable accommodation to the needs of individuals with disabilities. The application‐taking facility and the application process must be fully accessible, or the PHA must provide an alternate approach that provides full access to the application process. Chapter 2 provides a full discussion of the PHA’s policies related to providing reasonable accommodations for people with disabilities.

Limited English Proficiency
PHAs are required to take reasonable stepsto ensure equal accessto their programs and activities by persons with limited English proficiency [24 CFR 1]. Chapter 2 provides a full discussion on the PHA’s policies related to ensuring access to people with limited English proficiency (LEP). 149
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The PHA must review each complete application received and make a preliminary assessment of the family’s eligibility. The PHA must accept applications from families for whom the list is open unless there is good cause for not accepting the application (such as denial of assistance) for the grounds stated in the regulations [24 CFR 982.206(b)(2)]. Where the family is determined to be ineligible, the PHA must notify the family in writing [24 CFR 982.201(f)]. Where the family is not determined to be ineligible, the family will be placed on a waiting list of applicants.

No applicant has a right or entitlement to be listed on the waiting list, or to any particular position on the waiting list [24 CFR 982.202(c)].

Ineligible for Placement on the Waiting List
HACSB Policy
All applicant families will be placed on the waiting list, when open. If the PHA can determine from the information provided that a family is ineligible, the PHA will send written notification of the ineligibility determination within 10 business days of receiving a complete application. The notice will specify the reasons for ineligibility, and will inform the family of its right to request an informal review and explain the process for doing so (see Chapter 16).

Eligible for Placement on the Waiting List
HACSB Policy
The online application system provides immediate notification of placement on the waiting list when complete applications are submitted.

Placement on the waiting list does not indicate that the family is, in fact, eligible for assistance. A final determination of eligibility will be made when the family isselected from the waiting list.

Applicants will be placed on the waiting list according to any preference(s) for which they qualify, and the date and time their complete application is received by the PHA. 150
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4‐II.A. OVERVIEW
The PHA must have policies regarding various aspects of organizing and managing the waiting list of applicant families. This includes opening the list to new applicants, closing the list to new applicants, notifying the public of waiting list openings and closings, updating waiting list information, purging the list of families that are no longer interested in or eligible for assistance, as well as conducting outreach to ensure a sufficient number of applicants.

In addition, HUD imposes requirements on how a PHA may structure its waiting list and how families must be treated if they apply for assistance from a PHA that administers more than one assisted housing program.
4‐II.B. ORGANIZATION OF THE WAITING LIST [24 CFR 982.204 and 205] The PHA’s HCV waiting list must be organized in such a manner to allow the PHA to accurately identify and select families for assistance in the proper order, according to the admissions policies described in this plan.

The waiting list must contain the following information for each applicant listed:
 Applicant name;
 Family unit size;
 Date and time of application;
 Qualification for any local preference;
 Racial or ethnic designation of the head of household.

HUD requires the PHA to maintain a single waiting list for the HCV program unless it serves more than one county or municipality. Such PHAs are permitted, but not required, to maintain a separate waiting list for each county or municipality served.

HACSB Policy
HACSB will maintain one waiting list for the Tenant Based HCV program.

A separate waiting list will be maintained for the Project‐Based Voucher program.

HUD directs that a family that applies for assistance from the HCV program must be offered the opportunity to be placed on the waiting list for any public housing, project‐based voucher or moderate rehabilitation program the PHA operatesif 1) the other programs’ waiting lists are open, and 2) the family is qualified for the other programs.

HUD permits, but does not require, that PHAs maintain a single merged waiting list for their public housing, Section 8, and other subsidized housing  programs. 152
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HACSB Policy
The PHA will not merge the HCV waiting list with the waiting list for any other program the PHA operates.

A separate waiting list will be maintained for the Project‐Based Voucher program. 153
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A PHA is permitted to close the waiting list if it has an adequate pool of familiesto use its available HCV assistance. Alternatively, the PHA may elect to continue to accept applications only from certain categories of families that meet particular preferences or funding criteria.

HACSB Policy
The PHA will close the waiting list when the estimated waiting period for housing assistance for applicants on the list reaches 24 months for the most current applicants.

Where the PHA has particular preferences or funding criteria that require a specific category of family, the PHA may elect to continue to accept applications from these applicants while closing the waiting list to others.

Reopening the Waiting List
If the waiting list has been closed, it cannot be reopened until the PHA publishes a notice in local newspapers of general circulation, minority media, and other suitable media outlets. The notice must comply with HUD fair housing requirements and must specify who may apply, and where and when applications will be received.

HACSB Policy
The PHA will announce the reopening of the waiting list at least 10 business days prior to the date applications will first be accepted. If the list is only being reopened for certain categories of families, this information will be contained in the notice.

The PHA will give public notice by publishing the relevant information in suitable media outlets. 154
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The PHA must conduct outreach as necessary to ensure that the PHA has a sufficient number of applicants on the waiting list to use the HCV resources it has been allotted.

Because HUD requires the PHA to admit a specified percentage of extremely low income families to the program (see Chapter 4, Part III), the PHA may need to conduct special outreach to ensure that an adequate number of such families apply for assistance [HCV GB, p. 4‐20 to 4‐21].

PHA outreach efforts must comply with fair housing requirements. This includes:
 Analyzing the housing market area and the populations currently being served to identify underserved populations
 Ensuring that outreach efforts are targeted to media outlets that reach eligible populations that are underrepresented in the program
 Avoiding outreach effortsthat prefer or exclude people who are members of a protected class PHA outreach efforts must be designed to inform qualified families about the availability of assistance under the program. These efforts may include, as needed, any of the following activities:
 Submitting press releases to local newspapers, including minority newspapers  Developing informational materials and flyers to distribute to other agencies  Providing application forms to other public and private agencies that serve the low income population
 Developing partnerships with other organizations that serve similar populations, including agencies that provide services for persons with disabilities HACSB 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.
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HACSB Policy
While the family is on the waiting list, the family must immediately inform the PHA of changes in contact information, including current residence, mailing address, phone number, family composition and income. The changes must be submitted in writing. 4‐II.F. UPDATING THE WAITING LIST [24 CFR 982.204]
HUD requires the PHA to establish policies to use when removing applicant names from the waiting list.

Purging the Waiting List
The decision to withdraw an applicant family that includes a person with disabilities from the waiting list is subject to reasonable accommodation. If the applicant did not respond to a PHA request for information or updates, and the PHA determines that the family did not respond because of the family member’s disability, the PHA must reinstate the applicant family to their former position on the waiting list [24 CFR 982.204(c)(2)].

HACSB Policy
The waiting list will be updated as needed to ensure that all applicants and applicant information is current and timely.

To update the waiting list, the PHA will send an update request via first class mail to each family on the waiting list to determine whether the family continues to be interested in, and to qualify for, the program. This update request will be sent to the last address that the PHA has on record for the family. The update request will provide a deadline by which the family must respond and will state that failure to respond will result in the applicant’s name being removed from the waiting list.

The family’s response must be in writing and may be delivered in person, by mail, or by fax. Responses should be postmarked or received by the PHA not later than 30 calendar days from the date of the PHA letter.

If the family fails to respond within 30 calendar days, the family will be removed from the waiting list without further notice.

If the notice is returned by the post office with no forwarding address, the applicant will be removed from the waiting list without further notice.

If the notice is returned by the post office with a forwarding address, the notice will be re‐ sent to the address indicated. The family will have 30 calendar days to respond from the date the letter was re‐sent.

If a family is removed from the waiting list for failure to respond, the Director of Housing Programs, the Housing Management Supervisor or designee may reinstate the family if it is determined that the lack of response was due to PHA error, or to circumstances beyond the family’s control.
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HACSB Policy
If at any time an applicant family is on the waiting list, the PHA determines that the family is not eligible for assistance (see Chapter 3), the family will be removed from the waiting list.

If a family is removed from the waiting list because the PHA has determined the family is not eligible for assistance, a notice will be sent to the family’s address of record.  The notice will state the reasons the family was removed from the waiting list and will inform the family how to request an informal review regarding the PHA’s decision (see Chapter 16) [24 CFR 982.201(f)].

Inactive Status
HACSB Policy
At any time prior to the PHA conducting an eligibility appointment, an applicant that wishes to put their application on hold, or “Inactive Status”, can do so upon receipt of a written request.  Applicants who opt to place their applications on inactive status will not be scheduled in for eligibility appointments nor offered units in the PBV Program.

Applications will remain on inactive status until which time the applicant request in writing to reactivate their applications to pending.  Applicants on inactive status must continue to respond to requests for information or updates.
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© Copyright 2016 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 4‐14 PART III: SELECTION FOR HCV ASSISTANCE
4‐III.A. OVERVIEW
As vouchers become available, families on the waiting list must be selected for assistance in accordance with the policies described in this part.

The order in which families are selected from the waiting list depends on the selection method chosen by the PHA and is impacted in part by any selection preferences for which the family qualifies. The availability of targeted funding also may affect the order in which families are selected from the waiting list.

The PHA must maintain a clear record of all information required to verify that the family is selected from the waiting list according to the PHA’s selection policies [24 CFR 982.204(b) and 982.207(e)].
4‐III.B. SELECTION AND HCV FUNDING SOURCES
Special Admissions [24 CFR 982.203]
HUD may award funding for specifically‐named families living in specified types of units (e.g., a family that is displaced by demolition of public housing; a non‐purchasing family residing in a HOPE 1 or 2 projects). In these cases, the PHA may admit such families whether or not they are on the waiting list, and, if they are on the waiting list, without considering the family’s position on the waiting list. These families are considered non‐waiting list selections. The PHA must maintain records showing that such families were admitted with special program funding.

Targeted Funding [24 CFR 982.204(e)]
HUD may award a PHA funding for a specified category of families on the waiting list. The PHA must use this funding only to assist the families within the specified category. In order to assist families within a targeted funding category, the PHA may skip families that do not qualify within the targeted funding category. Within this category of families, the order in which such families are assisted is determined according to the policies provided in Section 4‐III.C.

HACSB Policy
The types of targeted funding administered by the PHA include:
 5 year Mainstream
 Family Unification Program (FUP)
 Non‐elderly Disabled (NED)
 Veteran Affairs Supportive Housing (VASH)
Regular HCV Funding
Regular HCV funding may be used to assist any eligible family on the waiting list. Families are selected from the waiting list according to the policies provided in Section 4‐III.C. 159
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PHAs must describe the method for selecting applicant familiesfrom the waiting list, including the system of admission preferences that the PHA will use [24 CFR 982.202(d)].

Local Preferences [24 CFR 982.207; HCV p. 4‐16]
PHAs are permitted to establish local preferences, and to give priority to serving familiesthat 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.

HACSB Policy
In accordance with 24 CFR 983.260, the PHA is required to give priority for continued tenant‐based assistance to a project‐based family that chooses to terminate their lease after the first year of occupancy, has given the owner advanced written notice of their intent to vacate, has notified the PHA and requested to move with continued tenant‐based assistance, prior to moving and only if in good standing with the project Based unit owner [Chapter 17‐VII.C].

The PHA will offer preferences to its tenant‐based HCV program as follows:

The PHA will first offer a preference to any family that has been terminated from its HCV program due to insufficient program funding or to any project‐based family that has fulfilled the requirements of their first year of occupancy and has requested to move with tenant based assistance.

Preferences will be provided next to resident families (families that reside, work, or who have been hired to work within HACSB’s jurisdiction) who meet the criteria of categories 1 through 5 below, prioritized as listed.

Category 1 ‐ Program Facilitation
A family is being offered a voucher to facilitate the operation of the Housing Authority’s programs.  These will include:
a. To meet the special needs of the client (e.g. families that need to move closer to specific medical or social services and require relocation from HACSB owned or managed developments; or HOME (TBRA) participants who will have exhausted the 24 month subsidy limit).
b. The need to move families who are over or under housed in HA owned or managed units when no suitable units are available for transfer c. Residents of HACSB owned/managed supportive housing developments are offered PBV assistance in an HACSB owned/managed unit to facilitate the operation of the Housing Authority’s supportive housing programs.   A formal case management 160
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© Copyright 2016 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 4‐16 assessment (i.e. SPDAT) will be conducted to substantiate that the resident no longer requires supportive housing.

Category 2‐Resident Families – Lease In Place
A resident family that is willing and able to lease in place.  The family has been identified as residing in place for a minimum of three months in a unit where the property owner or landlord will enter into a Section 8 HAP contract.  The family must stay in the unit for a period of no less than 12 months after Section 8 assistance begins.  The unit must also meet allrequirementsforthe program. No more than ten percent (10%) of new admissions per year will be assisted as a result of receiving the Lease in Place preference.

Within the resident Lease In Place category, families for HCV or PBV assistance will be ranked and selected by the number of preference points received as applicable below:
(4 points) Displaced Family Preference
Families that have been displaced from housing within the PHA’s jurisdiction due to governmental action or disaster
(2 points) Residency Preference
Families who live, work, or who have been hired to work within the South coast region of Santa Barbara County
(2 points) Rent Burden Preference
Families not currently receiving any housing assistance (e.g. residing in federal,state, local, or privately subsidized developments, receiving ongoing rental assistance) and families residing in a HACSB locally financed or HACSB managed property that have a rent burden exceeding 50% of household gross annual income
(1 point) Veteran Preference
Active members of the United States Armed Forces, Veterans of the United States Armed Forces, or spouses and surviving spouses of U.S. Veterans where the veteran was discharged other than dishonorably
(‐21 points) Single, Non‐Elderly, Non‐Disabled
Single household member applicants who do not meet HUD’s definition of disabled nor who are at minimum 62 years of age
Category 3 – Resident Families ‐ Special Needs
A resident family that has been identified as having one of the following special needs and has been unable, due to this need, to obtain adequate housing. No more than twenty‐five percent (25%) of new admissions per year will be assisted as a result of receiving the Special Needs preference.   Special Needs preference verifications will only be granted twice per 18 month period per applicant family.
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© Copyright 2016 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 4‐17 Special Needs families are categorized as follows:

1. Transitional Housing: Tenants of transitional housing programs (THP) within the jurisdiction of HACSB, which include a programmatic component who have successfully completed the program obligations and have demonstrated the ability and desire to live independently. Transitional Housing Programs are programs with a predetermined length of tenancy. A referral letter from the THP is required.

2. NED: Non‐elderly disabled persons who have lived in a health care institution for a minimum of three (3) months and are looking to transition into the community, or who, without housing assistance, are at risk of institutionalization. A referral from a health care professional or social service professional and a letter verifying the applicant’s length of stay in the institution isrequired. For those applicants at risk of institutionalization, a referral letter from CHANCE, Tri‐Counties Regional Center, Independent Living Resource Center, PathPoint or applicable local social service providers will be required.

3. Domestic Violence Displacement: A family that has been displaced or faces imminent displacement within the jurisdiction of HACSB, due to actual or threatened physical domestic violence against one or more members of the applicant family within the last eighteen (18) months. Verification from Domestic Violence Solutions, law enforcement, or court documentation will be required.

4. Homeless Assistance: Seniors or disabled individuals who have been determined by results of the Vulnerability Index (VI) or Vulnerability Index‐ Service Prioritization Decision Assistance Tool (VI‐SPDAT) to be both medically vulnerable and chronically homeless   ‐OR‐
Families who have documentation of homelessness and/or have been determined by results of the Family VI‐SPDAT to be chronically homeless.

Referrals from C3H’s Housing Placement Working Group will be accepted for those ranked in the top 150 of the VI and/or with a score of 10 or higher on the VI‐SPDAT.  VI referrals will require a written agreement from the referring agency and/or case manager to provide for at least one (1) year case/crisis management services from the date that the client is housed.

Applicants admitted to the program under the Homeless Assistance preference will be issued HCV or TBRA assistance as determined by the Housing Authority.  Available program funding as well length of time on the HCV waiting list will be considered when determining which subsidy type to issue.   Applicants with the Homeless Assistance preference who have been on the HCV waiting list for less than a year at the time they are selected off the waiting list for an eligibility determination will be issued TBRA assistance if determined eligible.
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© Copyright 2016 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 4‐18 Within the resident Special Needs category, families for HCV or PBV assistance will be ranked and selected by the number of preference points received as applicable below:
(4 points) Displaced Family Preference
Families that have been displaced from housing within the PHA’s jurisdiction due to governmental action or disaster
(2 points) Residency Preference
Families who live, work, or who have been hired to work within the South coast region of Santa Barbara County
(2 points) Rent Burden Preference
Families not currently receiving any housing assistance (e.g. residing in federal,state, local, or privately subsidized developments, receiving ongoing rental assistance) and families residing in a HACSB locally financed or HACSB managed property that have a rent burden exceeding 50% of household gross annual income
(1 point) Veteran Preference
Active members of the United States Armed Forces, Veterans of the United States Armed Forces, or spouses and surviving spouses of U.S. Veterans where the veteran was discharged other than dishonorably
(‐21 points) Single, Non‐Elderly, Non‐Disabled
Single household member applicants who do not meet HUD’s definition of disabled nor who are at minimum 62 years of age
Category 4 ‐ Resident Families – non Special Needs
Those families that are not being offered vouchers for program facilitation and are not categorized as special needs families will then be selected by the number of points received as applicable below:
(4 points) Displaced Family Preference
Families that have been displaced from housing within the PHA’s jurisdiction due to governmental action or disaster
(2 points) Residency Preference
Families who live, work, or who have been hired to work within the South coast region of Santa Barbara County
(2 points) Rent Burden Preference
Families not currently receiving any housing assistance (e.g. residing in federal,state, local, or privately subsidized developments, receiving ongoing rental assistance) and families residing in a HACSB locally financed or HACSB managed property that have a rent burden exceeding 50% of household gross annual income
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© Copyright 2016 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 4‐19 (1 point) Veteran Preference
Active members of the United States Armed Forces, Veterans of the United States Armed Forces, or spouses and surviving spouses of U.S. Veterans where the veteran was discharged other than dishonorably
(‐21 points) Single, Non‐Elderly, Non‐Disabled
Single member household applicants who do not meet HUD’s definition of disabled nor who are at minimum 62 years of age
Category 5 ‐ Non‐Resident Families
Non‐resident families will then be selected by the number of points received as applicable below:
(2 points) Rent Burden Preference
Families not currently receiving any housing assistance (e.g. residing in federal,state, local, or privately subsidized developments, receiving ongoing rental assistance) (1 point) Veteran Preference
Active members of the United States Armed Forces, Veterans of the United States Armed Forces, or spouses and surviving spouses of U.S. Veterans where the veteran was discharged other than dishonorably
(‐21 points) Single, Non‐Elderly, Non‐Disabled
Single household member applicants who do not meet HUD’s definition of disabled nor who are at minimum 62 years of age
Income Targeting Requirement [24 CFR 982.201(b)(2)]
HUD requires that extremely low‐income (ELI) families make up at least 75% of the families admitted to the HCV program during the PHA’s fiscal year. ELI families are those with annual incomes at or below 30% of the area median income. To ensure this requirement is met, a PHA may skip non‐ELI families on the waiting list in order to select an ELI family.

Low income families admitted to the program that are “continuously assisted” under the 1937 Housing Act [24 CFR 982.4(b)], as well as low‐income or moderate‐income families admitted to the program that are displaced as a result of the prepayment of the mortgage or voluntary termination of an insurance contract on eligible low‐income housing, are not counted for income targeting purposes [24 CFR 982.201(b)(2)(v)].

HACSB Policy
The PHA will monitor progress in meeting the income targeting requirement throughout the fiscal year.   Extremely low‐income families will be selected ahead of other eligible families on an as‐needed basis to ensure the income targeting requirement is met. 164
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The PHA system of preferences may select families based on local preferences according to the date and time of application or by a random selection process (lottery) [24 CFR 982.207(c)]. If a PHA does not have enough funding to assist the family at the top of the waiting list, it is not permitted to skip down the waiting list to a family that it can afford to subsidize when there are notsufficient fundsto subsidize the family at the top of the waiting list [24 CFR 982.204(d) and (e)].

HACSB Policy
Families will be selected from the waiting list based on the targeted funding or selection preference(s) for which they qualify, and in accordance with the PHA’s hierarchy of preferences. As a tie‐breaker, families will be selected on a first‐come, first‐served basis according to the date and time their complete application is received by the PHA.

Documentation will be maintained by the PHA as to whether families on the list qualify for and are interested in targeted funding.  If a higher placed family on the waiting list is not qualified or not interested in targeted funding, there will be a notation maintained so that the PHA does not have to ask higher placed families each time targeted selections are made. Targeted funding for both FUP and VASH will require referrals from Santa Barbara County Social Services or authorized agency and the Department of Veterans Affairs respectively.
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When a family has been selected from the waiting list, the PHA must notify the family.

HACSB Policy
The PHA will notify the family by first class mail when they are selected from the waiting list. The notice will inform the family of the following:

Date, time, and location of the scheduled application interview, including any procedures for rescheduling the interview
Who is required to attend the interview
All documents that must be provided at the interview, including information about what constitutes acceptable documentation
Should the family fail to respond, the notice also serves as a notice of denial and family will be removed from the waiting list.

If a notification letter is returned to the PHA with no forwarding address, the family will be removed from the waiting list.
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.

Assistance cannot be provided to the family until all SSN documentation requirements are met.

However, if the PHA determines that an applicant family is otherwise eligible to participate in the program, the family may retain its place on the waiting list for a period of time determined by the PHA [Notice PIH 2012‐10].

Reasonable accommodation must be made for persons with disabilities who are unable to attend an interview due to their disability.

HACSB Policy
Families selected from the waiting list are required to participate in an eligibility interview.

All adult household members are required to attend the interview.

All household members must provide acceptable documentation of legal identity. (Chapter 7 provides a discussion of proper documentation of legal identity.) If the family representative does not provide the required documentation at the time of the interview, he or she will be required to provide it within 10 business days. 166
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© Copyright 2016 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 4‐22 Pending disclosure and documentation of social security numbers, the PHA will allow the family to retain its place on the waiting list for 60 days. If not all household members have disclosed their SSNs at the next time the PHA is issuing vouchers, the PHA will issue a voucher to the next eligible applicant family on the waiting list.

The family must provide the information necessary to establish the family’s eligibility and determine the appropriate level of assistance, as well as completing required forms, providing required signatures, and submitting required documentation. If any materials are missing, the PHA will provide the family with a written list of items that must be submitted.

Any required documents or information that the family is unable to provide at the interview must be provided within 10 business days of the interview (Chapter 7 provides details about longersubmission deadlinesfor particular items, including documentation of eligible noncitizen status). If the family is unable to obtain the information or materials within the required time frame, the family may request an extension. If the required documents and information are not provided within the required time frame (plus any extensions), the family will be sent a notice of denial (See Chapter 3).

An advocate, interpreter, or other assistant may assist the family with the application and the interview process.

Interviews will be conducted in English or Spanish. For limited English proficient (LEP) applicants, the PHA will provide translation servicesin accordance with the PHA’s LEP plan.

If the family is unable to attend a scheduled interview, the family should contact the PHA in advance of the interview to schedule a new appointment. Applicants who fail to attend one scheduled interview without PHA approval will be denied assistance based on the family’s failure to supply information needed to determine eligibility. A notice of denial will be issued in accordance with policies contained in Chapter 3. 167
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The PHA must verify all information provided by the family (see Chapter 7). Based on verified information, the PHA must make a final determination of eligibility (see Chapter 3) and must confirm that the family qualified for any special admission, targeted funding admission, or selection preference that affected the order in which the family wasselected from the waiting list.

HACSB Policy
If the PHA determines that the family is ineligible, the PHA will send written notification of the ineligibility determination within 10 business days of the determination. The notice will specify the reasons for ineligibility, and will inform the family of its right to request an informal review (Chapter 16).

If a family fails to qualify for any criteria that affected the order in which it was selected from the waiting list (e.g. targeted funding, extremely low‐income), the family will be returned to the waiting list. The PHA will notify the family in writing that it has been returned to the waiting list, and will specify the reasons for it.

If the PHA determines that the family is eligible to receive assistance, the PHA will place the family on an eligible waiting list.  Once vouchers are available the PHA will invite families from the eligible waiting list to attend a briefing in accordance with the policies in Chapter 5.   It may be necessary to have the family update their information prior to attending a briefing if verification become stale, more than 60‐days old.

See Chapter 17 regarding the unit offers for PBV subsidy. 168
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 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 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 well as the issue and expiration date of the voucher. The voucher is the document that authorizes the family to begin its search for a unit, and limits the amount of time the family has to successfully locate an acceptable unit.

This chapter describes HUD regulations and PHA policies related to these topics in two parts:

Part I: Briefings and Family Obligations. This part details the program’s requirements for briefing families orally, and for providing written materials describing the program and its requirements. It includes a particular focus on the family’s obligations under the program.

Part II: Subsidy Standards and Voucher Issuance. This part discusses the PHA’s standards for determining how many bedrooms a family of a given composition qualifies for, which in turn affects the amount of subsidy the family can receive. It also discusses the policies that dictate how vouchers are issued, and how long families have to locate a unit.

PART I: BRIEFINGS AND FAMILY OBLIGATIONS
5‐I.A. OVERVIEW
HUD regulations require the PHA to conduct mandatory briefings for applicant families 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, and lists the family’s obligations under the program. 169
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The PHA must give the family an oral briefing and provide the family with a briefing packet containing written information about the program. Families may be briefed individually or in groups. At the briefing, the PHA must ensure effective communication in accordance with Section 504 requirements (Section 504 of the Rehabilitation Act of 1973), and ensure that the briefing site is accessible to individuals with disabilities. For a more thorough discussion of accessibility requirements, refer to Chapter 2.

HACSB Policy
Briefings will be conducted in group meetings.

Generally, all adult household members are 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 or Spanish. For limited English proficient (LEP) applicants, the PHA will provide translation services in accordance with the PHA’s LEP plan (See Chapter 2).

Notification and Attendance
HACSB Policy
Families may be notified of their eligibility for assistance at the time they are invited to attend a briefing, or prior to the invitation to attend a briefing. The briefing notice will identify who is required to attend the briefing, as well as the date and time of the scheduled briefing.

If the notice is returned by the post office with no forwarding address, 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 re‐sent to the address indicated.

Applicants who fail to attend a scheduled 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). 170
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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 by statute, regulation, PIH Notice, or court order;
 The PHA must inform the family of how portability may affect the family’s assistance through screening, subsidy standards, payment standards, and any other elements of the portability process which may affect the family’s assistance;  The advantages of areas that do not have a high concentration of low‐income families; and  For families receiving welfare‐to‐work vouchers, a description of any local obligations of a welfare‐to‐work family and an explanation that failure to meet the obligations is grounds for denial of admission or termination of assistance.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 5‐4 Briefing Packet [24 CFR 982.301(b)]
Documents and information provided in the briefing packet must include the following:
 The term of the voucher, and the PHA’s policies on any extensions or suspensions of the 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.
 An explanation of how the PHA determines the maximum allowable rent for an assisted unit.
 Where the family may lease a unit and an explanation of how portability works, including information on how portability may affect the family’s assistance through screening, subsidy standards, payment standards, and any other elements of the portability process that may affect the family’s assistance.
 The HUD‐required tenancy addendum, which must be included in the lease.  The form the family must use to request approval of tenancy, and a description of the procedure for requesting approval for a tenancy.
 A statement of the PHA policy on providing information about families to prospective owners.
 The PHA subsidy standards including when and how exceptions are made.  The HUD brochure on how to select a unit.
 Materials (e.g., brochures) on how to select a unit and any additional information on selecting a unit that HUD provides.
 Information on federal, state and local equal opportunity laws and a copy of the housing discrimination complaint form.
 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.
 The grounds on which the PHA may terminate assistance for a participant family because of family action or failure to act.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 5‐5  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
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)]:
 Maps showing areas with housing opportunities outside areas of poverty or minority concentration, both within its jurisdiction and its neighboring jurisdiction  Information about the characteristics of these areas including job opportunities, schools, transportation, and other services
 An explanation of how portability works, including a list of portability contact persons for neighboring PHAs with names, addresses, and telephone numbers Additional Items to Be Included in the Briefing Packet
In addition to items required by the regulations, PHAs may wish to include supplemental materials to help explain the program to both participants and owners [HCV GB p. 8‐7, Notice PIH 2017‐12].

HACSB Policy
The PHA will provide the following additional materials in the briefing packet:

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
A PHA required housing search document
The HUD pamphlet on lead‐based paint entitled Protect Your Family from Lead in Your Home
“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‐ 12 173
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 5‐6 5‐I.C. FAMILY OBLIGATIONS
Obligations of the family are described in the housing choice voucher (HCV) regulations and on the voucher itself. These obligations include responsibilities the family is required to fulfill, as well as prohibited actions. The PHA must inform families of these obligations during the oral briefing, and the same information must be included in the briefing packet. When the family’s unit is approved and the HAP contract is executed, the family must meet those obligations in order to continue participating in the program. Violation of any family obligation may result in termination of assistance, as described in Chapter 12.

Time Frames for Reporting Changes Required By Family Obligations HACSB 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 follow:
 The family must supply any information that the PHA or HUD determines to be necessary, including submission of required evidence of citizenship or eligible immigration status.  The family must supply any information requested by the PHA or HUD for use in a regularly scheduled reexamination or interim reexamination of family income and composition.  The family must disclose and verify social security numbers and sign and submit consent forms for obtaining information.
 Any information supplied by the family must be true and complete.  The family is responsible for any Housing Quality Standards (HQS) breach by the family caused by failure to pay tenant‐provided utilities or appliances, or damages to the dwelling unit or premises beyond normal wear and tear caused by any member of the household or guest.

HACSB Policy
Damages beyond normal wear and tear will be considered to be damages which could be assessed against the security deposit.
 The family must allow the PHA to inspect the unit at reasonable times and after reasonable notice, as described in Chapter 8 of this plan.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 5‐7  The family must not commit any serious or repeated violation of the lease.

HACSB Policy
The PHA will determine if a family has committed serious or repeated violations of the lease based on available evidence, including but not limited to, a court‐ordered eviction or an owner’s notice to evict, police reports, and affidavits from the owner, neighbors, or other credible parties with direct knowledge.

Serious and repeated lease violations will include, but not be limited to, nonpayment of rent, disturbance of neighbors, destruction of property, living or housekeeping habits that cause damage to the unit or premises, and criminal activity. Generally, the criterion to be used will be whether or not the reason for the eviction was the fault of the tenant or guests. Any incidents of, or criminal activity related to, domestic violence, dating violence, sexual assault or stalking will not be construed as serious or repeated lease violations by the victim [24 CFR 5.2005(c)(1)].
 The family must notify the PHA and the owner before moving out of the unit or terminating the lease.

HACSB 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.
 The family must promptly give the PHA a copy of any owner eviction notice.  The family must use the assisted unit for residence by the family. The unit must be the family’s only residence.
 The composition of the assisted family residing in the unit must be approved by the PHA.

The family must promptly notify the PHA in writing of the birth, adoption, or court‐awarded custody of a child. The family must request PHA approval to add any other family member as an occupant of the unit.

HACSB Policy
The request to add a family member must be submitted in writing and approved prior to the person moving into the unit. The PHA will determine eligibility of the new member in accordance with the policies in Chapter 3.
 The family must promptly notify the PHA in writing if any family member no longer lives in the unit.
 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). 175
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 5‐8  The family must not sublease the unit, assign the lease, or transfer the unit.

HACSB Policy
Subleasing includes receiving payment to cover rent and utility costs by a person living in the unit who is not listed as a family member.
 The family must supply any information requested by the PHA to verify that the family is living in the unit or information related to family absence from the unit.  The family must promptly notify the PHA when the family is absent from the unit.

HACSB Policy
Notice is required under this provision only when all family members will be absent from the unit for an extended period. An extended period is defined as any period greater than 30 calendar days. Written notice must be provided to the PHA at the start of the extended absence.
 The family must pay utility bills and provide and maintain any appliances that the owner is not required to provide under the lease [Form HUD‐52646, Voucher].  The family must not own or have any interest in the unit, (other than in a cooperative and owners of a manufactured home leasing a manufactured home space).  Family members must not commit fraud, bribery, or any other corrupt or criminal act in connection with the program. (See Chapter 14, Program Integrity for additional information).
 Family members must not engage in drug‐related criminal activity or violent criminal activity or other criminal activity that threatens the health, safety or right to peaceful enjoyment of other residents and persons residing in the immediate vicinity of the premises. See Chapter 12 for HUD and PHA policies related to drug‐related and violent criminal activity.
 Members of the household must not engage in abuse of alcohol in a way that threatens the health, safety or right to peaceful enjoyment of the other residents and persons residing in the immediate vicinity of the premises. See Chapter 12 for a discussion of HUD and PHA policies related to alcohol abuse.
 An assisted family or member of the family must not receive HCV program assistance while receiving another housing subsidy, for the same unit or a different unit under any other federal, state or local housing assistance program.
 A family must not receive HCV program assistance while residing in a unit owned by a parent, child, grandparent, grandchild, sister or brother of any member of the family, unless the PHA has determined (and has notified the owner and the family of such determination) that approving rental of the unit, notwithstanding such relationship, would provide reasonable accommodation for a family member who is a person with disabilities. [Form HUD‐52646, Voucher]
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 5‐9 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 or suspensions 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 requirements under the housing quality standards.
 The subsidy standards must be applied consistently for all families of like size and composition.
 A child who is temporarily away from the home because of placement in foster care is considered a member of the family in determining the family unit size.  A family that consists of a pregnant woman (with no other persons) must be treated as a two‐person family.
 Any live‐in aide (approved by the PHA to reside in the unit to care for a family member who is disabled or is at least 50 years of age) must be counted in determining the family unit size;
 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.

HACSB Policy
The PHA will assign one bedroom for each two persons within the household, except in the following circumstances:

Live‐in aides will be allocated a separate bedroom.

Single person families will be allocated one bedroom.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 5‐10 The PHA will reference the following chart in determining the appropriate voucher size for a family:

Voucher Size Persons in Household
(Minimum – Maximum)
Single Room Occupancy (SRO) 1
0 Bedroom        1‐2
1 Bedroom 1‐2
2 Bedrooms 3‐4
3 Bedrooms 5‐6
4 Bedrooms 7‐8
5 Bedrooms 9‐10
*See Chapter 8 Housing Quality Standards for Occupancy Standards 178
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 5‐11 5‐II.C. EXCEPTIONS TO SUBSIDY STANDARDS
In determining family unit size for a particular family, the PHA may grant an exception to its established subsidy standards if the PHA determines that the exception is justified by the age, sex, health, handicap, or relationship of family members or other personal circumstances [24 CFR 982.402(b)(8)]. Reasons may include, but are not limited to:
 A need for an additional bedroom for medical equipment  A need for a separate bedroom for reasons related to a family member’s disability, medical or health condition
For a single person who is not elderly, disabled, or a remaining family member, an exception cannot override the regulatory limit of a zero or one bedroom [24 CFR 982.402(b)(8)].

HACSB Policy
The PHA will consider granting an exception for health or disability.

The family must request any exception to the subsidy standards in writing. The request must explain the need or justification for a larger family unit size, and must include appropriate documentation. Requests based on health‐related reasons must be verified by a knowledgeable professional source (e.g., doctor or health professional), unless the disability and the disability–related request 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.

The PHA will consider the living room a sleeping area.   The living room will be considered a sleeping area for no more than 1 (one) household member. Requests for exceptions to subsidy standards will reviewed to determine if the allocated bedroom size includes a living room that could be used for sleeping area.  The PHA will notify the family of its determination within 10 business days of receiving the family’s request and related documentation. If a participant family’s request is denied, the notice will inform the family of their right to request an informal hearing. 179
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 5‐12 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 the family to be eligible for the program, and that the PHA expects to have money available to subsidize the family if the family finds an approvable unit. However, the PHA does not have any liability to any party by the issuance of the voucher, and the voucher does not give the family any right to participate in the PHA’s housing choice voucher program [Voucher, form HUD‐ 52646]
A voucher can be issued to an applicant family only after the PHA has determined that the family is eligible for the program based on 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].

HACSB Policy
Vouchers will be issued to eligible applicants immediately following the mandatory briefing.

The PHA should have sufficient funds to house an applicant before issuing a voucher. If funds are insufficient to house the family at the top of the waiting list, the PHA must wait until it has adequate funds before it calls another family from the list [HCV GB p. 8‐10].

HACSB 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. 180
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 5‐13 5‐II.E. VOUCHER TERM, EXTENSIONS, AND SUSPENSIONS
Voucher Term [24 CFR 982.303]
The initial term of a voucher must be at least 60 calendar days. The initial term must be stated on the voucher [24 CFR 982.303(a)].

HACSB Policy
The initial voucher term will be 60 calendar days.

The family must submit a Request for Tenancy Approval and proposed lease within the 60‐day period unless the PHA grants an extension.

Extensions of Voucher Term [24 CFR 982.303(b)]
The PHA has the authority to grant extensions of search time, to specify the length of an extension, and to determine the circumstances under which extensions will be granted. There is no limit on the number of extensions that the PHA can approve. Discretionary policies related to extension and expiration of search time must be described in the PHA’s administrative plan [24 CFR 982.54].

PHAs must approve additional search time if needed as a reasonable accommodation to make the program accessible to and usable by a person with disabilities. The extension period must be reasonable for the purpose.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 5‐14 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)].

HACSB Policy
Before an extension will be granted, the family must provide to the PHA a completed housing search document. Upon receipt of a completed  housing search document, the PHA will approve one 60‐day extension 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 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 may require the family to provide documentation to support the request or obtain verification from a qualified third party.

All requests for extensions to the voucher term must be made in writing and submitted to the PHA prior to the expiration date of the voucher (or extended term of the voucher).

No more than 180‐days total searching time will be approved.

Requests for extensions beyond the 180 day maximum will only be considered in the case of reasonable accommodation and must be approved by the Director of Housing Programs, Housing Management Supervisor or Designee.   In no case shall extensions exceed 240 days.

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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 5‐15 Suspensions of Voucher Term [24 CFR 982.303(c)]
At its discretion, a PHA may adopt a policy to suspend the housing choice voucher term if the family has submitted a Request for Tenancy Approval (RTA) during the voucher term. “Suspension” means stopping the clock on a family’s voucher term from the time a family submits the RTA until the time the PHA approves or denies the request [24 CFR 982.4]. The PHA’s determination not to suspend a voucher term is not subject to informal review [24 CFR 982.554(c)(4)].

HACSB Policy
When a Request for Tenancy Approval is received by the PHA, the term of the voucher will be suspended while the PHA processes the request.

Expiration of Voucher Term
Once a family’s housing choice voucher term (including any extensions) expires, the family is no longer eligible to search for housing under the program. If the family still wishes to receive assistance, the PHA may require that the family reapply, or may place the family on the waiting list with a new application date but without requiring reapplication. Such a family does not become ineligible for the program on the grounds that it was unable to locate a unit before the voucher expired [HCV GB p. 8‐13].

HACSB Policy
If an applicant family’s voucher term or extension expires before the family has submitted a Request for Tenancy Approval (RTA), the PHA will require the family to reapply for assistance.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 5‐16 184
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 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. 185
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐3 6‐I.B. HOUSEHOLD COMPOSITION AND INCOME
Income received by all family members must be counted unless specifically excluded by the regulations. It is the responsibility of the head of household to report changes in family composition. The rules on which sources of income are counted vary somewhat by family member. The chart below summarizes how family composition affects income determinations.

Summary of Income Included and Excluded by Person
Live‐in aides Income from all sources is excluded [24 CFR 5.609(c)(5)].

Foster child or foster adult Income from all sources is excluded [24 CFR 5.609(c)(2)].

Head, spouse, or cohead
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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐4 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].

HACSB Policy
Generally an individual who is or is expected to be absent from the assisted unit for 90 consecutive days or less is considered temporarily absent and continues to be considered a family member. Generally an individual who is or is expected to be absent from the assisted unit for more than 90 consecutive days is considered permanently absent and no longer a family member. Exceptions to this general policy are discussed below.

Absent Students
HACSB Policy
When someone who has been considered a family member attends school away from home, the person will continue to be considered a family member unless information becomes available to the PHA indicating that the student has established a separate household or the family declares that the student has established a separate household.

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].

HACSB Policy
If a child has been placed in foster care, the PHA will verify with the appropriate agency whether and when the child is expected to be returned to the home. Unless the agency confirms that the child has been permanently removed from the home, the child will be counted as a family member.

Absent Head, Spouse, or Cohead
HACSB Policy
An employed head, spouse, or cohead absent from the unit more than 90 consecutive days due to employment will continue to be considered a family member. 188
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐5 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].

HACSB Policy
The PHA will request verification from a responsible medical professional and will use this determination. If the responsible medical professional cannot provide a determination, the person generally will be considered temporarily absent for a period up to 180 days. 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
HACSB Policy
Dependents that are subject to a joint custody arrangement will be considered a member of the family, if they live with the applicant or participant family 51 percent or more of the time or has legal physical custody.

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 school records, court orders, or an IRS return showing which family has claimed the child for income tax purposes.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐6 Caretakers for a Child
HACSB 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.
(3) At any time that custody or guardianship legally has been awarded to a caretaker, the housing choice voucher will be transferred to the caretaker. (4) During any period that a caretaker is considered a visitor, the income of the caretaker is not counted in annual income and the caretaker does not qualify the family for any deductions from income.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐7 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.

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)]
PHAs are required to use HUD’s Enterprise Income Verification (EIV) system in its entirety as a third party source to verify employment and income information, and to reduce administrative subsidy payment errors in accordance with HUD administrative guidance [24 CFR 5.233(a)(2)].

HUD allows PHAs to use tenant‐provided documents (pay stubs) to project income once EIV data has been received in such cases where the family does not dispute the EIV employer data and where the PHA does not determine it is necessary to obtain additional third‐party data.

HACSB 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 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 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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐8 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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐9 6‐I.D. EARNED INCOME
Types of Earned Income Included in Annual Income
Wages and Related Compensation
The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services is included in annual income [24 CFR 5.609(b)(1)].

HACSB Policy
For persons who regularly receive bonuses or commissions, the PHA will verify and then average amounts received for the two years preceding admission or reexamination. If only a one‐year history is available, the PHA will use the prior year amounts. In either case the family may provide, and the PHA will consider, a credible justification for not using this history to anticipate future bonuses or commissions. If a new employee has not yet received any bonuses or commissions, the PHA will count only the amount estimated by the employer. 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].

HACSB Policy
Sporadic income is income that is not received periodically and cannot be reliably predicted. For example, the income of an individual who works occasionally as a handyman would be considered sporadic if future work could not be anticipated and no historic, stable pattern of income existed.

Children’s Earnings
Employment income earned by children (including foster children) under the age of 18 years is not included in annual income [24 CFR 5.609(c)(1)]. (See Eligibility chapter for a definition of foster children.)
Certain Earned Income of Full‐Time Students
Earnings in excess of $480 for each full‐time student 18 years old or older (except for the head, spouse, or cohead) are not counted [24 CFR 5.609(c)(11)]. To be considered “full‐time,” a 193
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐10 student must be considered “full‐time” by an educational institution with a degree or certificate program [HCV GB, p. 5‐29].
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐11 Income of a Live‐in Aide
Income earned by a live‐in aide, as defined in [24 CFR 5.403], is not included in annual income [24 CFR 5.609(c)(5)]. (See Eligibility chapter for a full discussion of live‐in aides.) Income Earned under Certain Federal Programs
Income from some federal programs is specifically excluded from consideration as income [24 CFR 5.609(c)(17)], including:
 Payments to volunteers under the Domestic Volunteer Services Act of 1973 (42 U.S.C. 5044(g), 5058)
 Awards under the federal work‐study program (20 U.S.C. 1087 uu)  Payments received from programs funded under Title V of the Older Americans Act of 1985 (42 U.S.C. 3056(f))
 Allowances, earnings, and payments to AmeriCorps participants under the National and Community Service Act of 1990 (42 U.S.C. 12637(d))
 Allowances, earnings, and payments to participants in programs funded under the Workforce Investment Act of 1998 (29 U.S.C. 2931)
Resident Service Stipend
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)]. 195
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐12 State and Local Employment Training Programs
Incremental earnings and benefits to any family member resulting from participation in qualifying state or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff are excluded from annual income. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives and are excluded only for the period during which the family member participates in the training program [24 CFR 5.609(c)(8)(v)].

HACSB Policy
The PHA defines training program as “a learning process with goals and objectives, generally having a variety of components, and taking place in a series of sessions over a period to time. It is designed to lead to a higher level of proficiency, and it enhances the individual’s ability to obtain employment. It may have performance standards to measure proficiency. Training may include, but is not limited to: (1) classroom training in a specific occupational skill, (2) on‐the‐job training with wages subsidized by the program, or (3) basic education” [expired Notice PIH 98‐2, p. 3].

The PHA defines incremental earnings and benefits as the difference between: (1) the total amount of welfare assistance and earnings of a family member prior to enrollment in a training program, and (2) the total amount of welfare assistance and earnings of the family member after enrollment in the program [expired Notice PIH 98‐2, pp. 3–4].

In calculating the incremental difference, the PHA will use as the pre‐enrollment income the total annualized amount of the family member’s welfare assistance and earnings reported on the family’s most recently completed HUD‐50058.

End of participation in a training program must be reported in accordance with the PHA's interim reporting requirements.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐13 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.

HACSB Policy
To qualify as a training program, the program must meet the definition of training program provided above for state and local employment training programs.

Earned Income Tax Credit
Earned income tax credit (EITC) refund payments received on or after January 1, 1991 (26 U.S.C. 32(j)), are excluded from annual income [24 CFR 5.609(c)(17)]. Although many families receive the EITC annually when they file taxes, an EITC can also be received throughout the year. The prorated share of the annual EITC is included in the employee’s payroll check.

Earned Income Disallowance
The earned income disallowance for persons with disabilities is discussed in section 6‐I.E below. 197
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐14 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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐15 Calculation of the Disallowance
Calculation of the earned income disallowance for an eligible member of a qualified family begins with a comparison of the member’s current income with his or her “baseline income.” The family member’s baseline income is his or her income immediately prior to qualifying for the EID. The family member’s baseline income remains constant throughout the period that he or she is participating in the EID.

HACSB Policy
While qualification for the disallowance is the same for all families, calculation of the disallowance will differ depending on when the family member qualified for the EID.

Participants qualifying prior to May 9, 2016, will have the disallowance calculated under the “Original Calculation Method” described below which requires a maximum lifetime disallowance period of up to 48 consecutive months. Participants qualifying on or after May 9, 2016, will be subject to the “Revised Calculation Method” Which shortens the lifetime disallowance period to 24 consecutive months.

Under both the original and new methods, the EID eligibility criteria, the benefit amount, the single lifetime eligibility requirement and the ability of the applicable family member to stop and restart employment during the eligibility period are the same.

Original Calculation Method
Initial 12‐Month Exclusion
During the initial 12‐month exclusion period, the full amount (100 percent) of any increase in income attributable to new employment or increased earnings is excluded. The 12 months are cumulative and need not be consecutive.

HACSB Policy
The initial EID exclusion period will begin on the first of the month following the date an eligible member of a qualified family is first employed or first experiences an increase in earnings.

Second 12‐Month Exclusion and Phase‐In
During the second 12‐month exclusion period, the exclusion is reduced to half (50 percent) of any increase in income attributable to employment or increased earnings. The 12 months are cumulative and need not be consecutive.

Lifetime Limitation
The EID has a four‐year (48‐month) lifetime maximum. The four‐year eligibility period begins at the same time that the initial exclusion period begins and ends 48 months later. The one‐time eligibility for the EID applies even if the eligible individual begins to receive assistance from another housing agency, if the individual moves between public housing and Section 8 assistance, or if there are breaks in assistance.

HACSB Policy
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐16 During the 48‐month eligibility period, the PHA will schedule and conduct an interim reexamination each time there is a change in the EID family member’s annual income that affects or is affected by the EID (e.g., when the family member’s income falls to a level at or below his/her prequalifying income, when one of the exclusion periods ends, and at the end of the lifetime maximum eligibility period).

Revised Calculation Method
Initial 12‐Month Exclusion
During the initial exclusion period of 12 consecutive months, the full amount (100 percent) of any increase in income attributable to new employment or increased earnings is excluded.

HACSB Policy
The initial EID exclusion period will begin on the first of the month following the date an eligible member of a qualified family is first employed or first experiences an increase in earnings.

Second 12‐Month Exclusion
During the second exclusion period of 12 consecutive months, the PHA must exclude at least 50 percent of any increase in income attributable to employment or increased earnings.

HACSB 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 earnings.

Lifetime Limitation
The EID has a two‐year (24‐month) lifetime maximum. The two‐year eligibility period begins at the same time that the initial exclusion period begins and ends 24 months later. During the 24‐ month period, an individual remains eligible for EID even if they begin to receive assistance from a different housing agency, move between public housing and Section 8 assistance, or have breaks in assistance.

EID for projects converted under the Rental Assistance Demonstration (RAD) Program The following exceptions apply to those projects converted to Project‐Based Voucher (PBV) assistance under the RAD program:
 Existing tenants of projects converted under the RAD program who are employed and receiving the EID exclusion at the time of conversion, will continue to receive the EID after conversion in accordance with regulations at 24 CFR § 5.617.  Upon expiration of the EID for such families, the rent adjustment shall not be subject to rent phase‐in as described in Section 1.6.C.4; instead, the rent will automatically rise to the appropriate rent level based upon tenant income at that time.
 Under the Housing Choice Voucher program, the EID exclusion is limited to only persons with disabilities (24 CFR § 5.617(b).   In order to allow all tenants (including non‐disabled persons) who are employed and receiving the EID at the time of RAD conversion, to 200
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐17 continue to benefit from this exclusion in the PBV project, the provision in section

5.617(b) limited EID to only disabled persons is waived.  The waiver and resulting alternative requirement only applies to tenants receiving the EID at the time of conversion.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐18 6‐I.F. BUSINESS INCOME [24 CFR 5.609(b)(2)]
Annual income includes “the net income from the operation of a business or profession.

Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family” [24 CFR 5.609(b)(2)].

Business Expenses
Net income is “gross income less business expense” [HCV GB, p. 5‐19].

HACSB Policy
To determine business expenses that may be deducted from gross income, the PHA will use current applicable Internal Revenue Service (IRS) rules for determining allowable business expenses [see IRS Publication 535], unless a topic is addressed by HUD regulations or guidance as described below.  No portion of rent from a subsidized housing unit even if a portion of the rental is used from which to run the business out of will be included as a business expense.

Business Expansion
HUD regulations do not permit the PHA to deduct from gross income expenses for business expansion.

HACSB Policy
Business expansion is defined as any capital expenditures made to add new business activities, to expand current facilities, or to operate the business in additional locations.

For example, purchase of a street sweeper by a construction business for the purpose of adding street cleaning to the services offered by the business would be considered a business expansion. Similarly, the purchase of a property by a hair care business to open at a second location would be considered a business expansion.

Capital Indebtedness
HUD regulations do not permit the PHA to deduct from gross income the amortization of capital indebtedness.

HACSB 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. 202
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐19 Negative Business Income
If the net income from a business is negative, no business income will be included in annual income; a negative amount will not be used to offset other family income.

Withdrawal of Cash or Assets from a Business
HUD regulations require the PHA to include in annual income the withdrawal of cash or assets from the operation of a business or profession unless the withdrawal reimburses a family member for cash or assets invested in the business by the family.

HACSB Policy
Acceptable investments in a business include cash loans and contributions of assets or equipment. For example, if a member of an assisted family provided an up‐front loan of $2,000 to help a business get started, the PHA will not count as income any withdrawals from the business up to the amount of this loan until the loan has been repaid.

Investments do not include the value of labor contributed to the business without compensation.

Co‐owned Businesses
HACSB 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. 203
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐20 6‐I.G. ASSETS [24 CFR 5.609(b)(3) and 24 CFR 5.603(b)]
Overview
There is no asset limitation for participation in the HCV program. However, HUD requires that the PHA include in annual income the 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.

General Policies
Income from Assets
The PHA generally will use current circumstances to determine both the value of an asset and the anticipated income from the asset. As is true for all sources of income, HUD authorizes the PHA to use other than current circumstances to anticipate income when (1) an imminent change in circumstances is expected (2) it is not feasible to anticipate a level of income over 12 months or (3) the PHA believes that past income is the best indicator of anticipated income. For example, if a family member owns real property that typically receives rental income but the property is currently vacant, the PHA can take into consideration past rental income along with the prospects of obtaining a new tenant.

HACSB 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. 204
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐21 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.

HACSB Policy
Reasonable costs that would be incurred when disposing of an asset include, but are not limited to, penalties for premature withdrawal, broker and legal fees, and settlement costs incurred in real estate transactions [HCV GB, p. 5‐28].

Lump‐Sum Receipts
Payments that are received in a single lump sum, such as inheritances, capital gains, lottery winnings, insurance settlements, and proceeds from the sale of property, are generally considered assets, not income. However, such lump‐sum receipts are counted as assets only if they are retained by a family in a form recognizable as an asset (e.g., deposited in a savings or checking account) [RHIIP FAQs]. (For a discussion of lump‐sum payments that represent the delayed start of a periodic payment, most of which are counted as income, see sections 6‐I.H and 6‐I.I.)
Imputing Income from Assets [24 CFR 5.609(b)(3), 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 calculated by multiplying the total cash value of all family assets 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.

HACSB Policy
The PHA will 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, in November of each year. The rate will not be adjusted unless the current PHA rate is no longer within 0.75 percent of the 205
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐22 national rate. If it is no longer within 0.75 percent of the national rate, the passbook rate will be set at the current national rate.

Changes to the passbook rate will take effect on January 1 following the November review.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐23 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
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.” HACSB Policy
If an asset is owned by more than one person and any family member has unrestricted access to the asset, the PHA will count the full value of the asset. A family member has unrestricted access to an asset when he or she can legally dispose of the asset without the consent of any of the other owners.

If an asset is owned by more than one person, including a family member, but the family member does not have unrestricted access to the asset, the PHA will prorate the asset according to the percentage of ownership. If no percentage is specified or provided for by state or local law, the PHA will prorate the asset evenly among all owners.

Assets Disposed Of for Less than Fair Market Value [24 CFR 5.603(b)] HUD regulations require the PHA to count as a current asset any business or family asset that was disposed of for less than fair market value during the two years prior to the effective date of the examination/reexamination, except as noted below. 207
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐24 Minimum Threshold
The HVC Guidebook permits the PHA to set a threshold below which assets disposed of for less than fair market value will not be counted [HCV GB, p. 5‐27].

HACSB 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 $5,000.

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.  Assets placed in trust received through settlements or judgment will be considered and asset or income as outlined in Chapter 6.

Separation or Divorce
The regulation also specifies that assets are not considered disposed of for less than fair market value if they are disposed of as part of a separation or divorce settlement and the applicant or tenant receives important consideration not measurable in dollar terms.

HACSB Policy
All assets disposed of as part of a separation or divorce settlement will be considered assets for which important consideration not measurable in monetary terms has been received. In order to qualify for this exemption, a family member must be subject to a formal separation or divorce settlement agreement established through arbitration, mediation, or court order.

Foreclosure or Bankruptcy
Assets are not considered disposed of for less than fair market value when the disposition is the result of a foreclosure or bankruptcy sale.

Family Declaration
HACSB Policy
Families must sign a declaration form at initial certification and each annual recertification identifying all assets that have been disposed of for less than fair market value or declaring that no assets have been disposed of for less than fair market value.

The PHA may verify the value of the assets disposed of if other information available to the PHA does not appear to agree with the information reported by the family. 208
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐25 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.

HACSB Policy
In determining the value of a savings or checking account, the PHA will use the current balance of accounts if total family assets total under $5,000.  If assets total over $5,000 the PHA will use 3rd party verifications to verify account balances 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.

HACSB Policy
In determining the market value of an investment account, the PHA will use the value of the account on the most recent investment report or value as reported on the 3rd party verification.

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. 209
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐26 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].

HACSB 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 balance 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 calculation of asset income except for the following types of assets:
 Equity accounts in HUD homeownership programs [24 CFR5.603(b)]  The value of a home currently being purchased with assistance under the HCV program Homeownership Option for the first 10 years after the purchase date of the home [24 CFR

5.603(b), 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]
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 of the loan (mortgage) minus the expenses to convert to cash [Notice PIH 2012‐3].

HACSB 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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐27 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.

HACSB 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 under the control of, any member of a family, the value of the trust fund is not considered an asset. However, any income distributed to the family from such a trust is counted as a periodic payment or a lump‐sum receipt, as appropriate [24 CFR 5.603(b)]. (Periodic payments are covered in section 6‐I.H. Lump‐sum receipts are discussed earlier in this section.)
Retirement Accounts
Company Retirement/Pension Accounts
In order to correctly include or exclude as an asset any amount held in a company retirement or pension account by an employed person, the PHA must know whether the money is accessible before retirement [HCV GB, p. 5‐26].

While a family member is employed, only the amount the family member can withdraw without retiring or terminating employment is counted as an asset [HCV GB, p. 5‐26].

After a family member retires or terminates employment, any amount distributed to the family member is counted as a periodic payment or a lump‐sum receipt, as appropriate [HCV GB, p. 5‐ 26], except to the extent that it represents funds invested in the account by the family member. (For more on periodic payments, see section 6‐I.H.) The balance in the account is counted as an asset only if it remains accessible to the family member.

IRA, Keogh, and Similar Retirement Savings Accounts
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐28 IRA, Keogh, and similar retirement savings accounts are counted as assets even though early withdrawal would result in a penalty [HCV GB, p. 5‐25].

Personal Property
Personal property held as an investment, such as gems, jewelry, coin collections, antique cars, etc., is considered an asset [HCV GB, p. 5‐25].

HACSB 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 obtain an appraisal to confirm the value of the asset if there is reason to believe that the family’s estimated value is off by $50 or more. The family must cooperate with the appraiser, but cannot be charged any costs related to the appraisal.

Generally, personal property held as an investment generates no income until it is disposed of. If regular income is generated (e.g., income from renting the personal property), the amount that is expected to be earned in the coming year is counted as actual income from the asset.

Necessary items of personal property are not considered assets [24 CFR 5.603(b)].

HACSB Policy
Necessary personal property consists of only those items not held as an investment, and may include clothing, furniture, household furnishings, jewelry, and vehicles, including those specially equipped for persons with disabilities.

Life Insurance
The cash value of a life insurance policy available to a family member before death, such as a whole life or universal life policy, is included in the calculation of the value of the family’s assets [HCV GB 5‐25]. The cash value is the surrender value. If such a policy earns dividends or interest that the family could elect to receive, the anticipated amount of dividends or interest is counted as income from the asset whether or not the family actually receives it. 212
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐29 6‐I.H. PERIODIC PAYMENTS
Periodic payments are forms of income received on a regular basis. HUD regulations specify periodic payments that are and are not included in annual income.

Periodic Payments Included in Annual Income
 Periodic payments from sources such as social security, unemployment and welfare assistance, annuities, insurance policies, retirement funds, and pensions. However, periodic payments from retirement accounts, annuities, and similar forms of investments are counted only after they exceed the amount contributed by the family [24 CFR 5.609(b)(4) and (b)(3)].
 Disability or death benefits and lottery receipts paid periodically, rather than in a single lump sum [24 CFR 5.609(b)(4) and HCV, p. 5‐14].

Lump‐Sum Payments for the Delayed Start of a Periodic Payment Most lump‐sums received as a result of delays in processing periodic payments, such as unemployment or welfare assistance, are counted as income. However, lump‐sum receipts for the delayed start of periodic social security or supplemental security income (SSI) payments are not counted as income [CFR 5.609(b)(4)]. 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].

HACSB 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.

Treatment of Overpayment Deductions from Social Security Benefits The PHA must make a special calculation of annual income when the Social Security Administration (SSA) overpays an individual, resulting in a withholding or deduction from his or her benefit amount until the overpayment is paid in full. The amount and duration of the withholding will vary depending on the amount of the overpayment and the percent of the benefit rate withheld. Regardless of the amount withheld or the length of the withholding period, the PHA must use the reduced benefit amount after deducting only the amount of the overpayment withholding from the gross benefit amount [Notice PIH 2012‐10]. 213
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐30 Periodic Payments Excluded from Annual Income
 Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the assisted family, who are unable to live alone) [24 CFR

5.609(c)(2)]. Kinship guardianship assistance payments (Kin‐GAP) and other similar guardianship payments are treated the same as foster care payments and are likewise excluded from annual income [Notice PIH 2012‐1].

HACSB Policy
The PHA will exclude payments for the care of foster children and foster adults only if the care is provided through an official arrangement with a local welfare agency [HCV GB, p. 5‐18].
 Amounts paid by a state agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home [24 CFR 5.609(c)(16)].  Amounts received under the Low‐Income Home Energy Assistance Program (42 U.S.C. 1626(c)) [24 CFR 5.609(c)(17)].
 Amounts received under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858q) [24 CFR 5.609(c)(17)].
 Earned Income Tax Credit (EITC) refund payments (26 U.S.C. 32(j)) [24 CFR 5.609(c)(17)].

Note: EITC may be paid periodically if the family elects to receive the amount due as part of payroll payments from an employer.
 Lump‐sums received as a result of delays in processing Social Security and SSI payments (see section 6‐I.J.) [24 CFR 5.609(b)(4)].
 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.)
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐31 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 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 with the welfare agency economic self‐sufficiency or work activities requirements, or (3) because a family member has not complied with other welfare agency requirements [24 CFR 5.615(b)(2)].

Offsets
The amount of the imputed welfare income is offset by the amount of additional income the family begins to receive after the sanction is imposed. When the additional income equals or exceeds the imputed welfare income, the imputed income is reduced to zero [24 CFR

5.615(c)(4)].
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐32 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.

HACSB Policy
The PHA will count court‐awarded amounts for alimony and child support unless the PHA verifies that: (1) the payments are not being made, and (2) the family has made reasonable efforts to collect amounts due, including filing with courts or agencies responsible for enforcing payments [HCV GB, pp. 5‐23 and 5‐47].

Families who do not have court‐awarded alimony and child support awards are not required to seek a court award and are not required to take independent legal action to obtain collection.

Regular Contributions or Gifts
The PHA must count as income regular monetary and nonmonetary contributions or gifts from persons not residing with an assisted family [24 CFR 5.609(b)(7)]. Temporary, nonrecurring, or sporadic income and gifts are not counted [24 CFR 5.609(c)(9)].

HACSB Policy
Examples of regular contributions include: (1) regular payment of a family’s bills (e.g., utilities, telephone, rent, credit cards, and car payments), (2) cash or other liquid assets provided to any family member on a regular basis, and (3) “in‐kind” contributions such as groceries and clothing provided to a family on a regular basis.

Nonmonetary contributions will be valued at the cost of purchasing the items, as determined by the PHA. For contributions that may vary from month to month (e.g., utility payments), the PHA will include an average amount based upon past history. 216
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐33 6‐I.L. STUDENT FINANCIAL ASSISTANCE [24 CFR 5.609(b)(9) and 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; and Notice PIH 2015‐21]
The regulation requiring the inclusion of certain student financial assistance applies only to students who satisfy all of the following conditions:
 They are enrolled in an institution of higher education, as defined under the Higher Education Act (HEA) of 1965.
 They are seeking or receiving Section 8 assistance on their own—that is, apart from their parents—through the HCV program, the project‐based certificate 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 Assistance Partnership Program, the Robert G.

Byrd Honors Scholarship Program, and Federal Work Study programs.  Assistance from private sources means assistance from nongovernmental sources, including parents, guardians, and other persons not residing with the student in an HCV assisted unit.  Tuition and fees are defined in the same manner in which the Department of Education defines tuition and fees [Notice PIH 2015‐21].
 This is the amount of tuition and required fees covering a full academic year most frequently charged to students.
 The amount represents what a typical student would be charged and may not be the same for all students at an institution.
 If tuition is charged on a per‐credit‐hour basis, the average full‐time credit hour load for an academic year is used to estimate average tuition.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐34  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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐35 Student Financial Assistance Excluded from Annual Income [24 CFR 5.609(c)(6)] Any student financial assistance not subject to inclusion under 24 CFR 5.609(b)(9) is fully excluded from annual income under 24 CFR 5.609(c)(6), whether it is paid directly to the student or to the educational institution the student is attending. This includes any financial assistance received by:
 Students residing with parents who are seeking or receiving Section 8 assistance  Students who are enrolled in an educational institution that does not meet the 1965 HEA definition of institution of higher education
 Students who are over 23 AND have at least one dependent child, as defined in section 3‐II.E
 Students who are receiving financial assistance through a governmental program not authorized under the 1965 HEA.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐36 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)) (e) Income derived from certain sub‐marginal land of the United States that is held in trust for certain Indian tribes (25 U.S.C. 459e)
(f) Payments or allowances made under the Department of Health and Human Services’ Low‐Income Home Energy Assistance Program (42 U.S.C. 8624(f)) (g) Payments received under programs funded in whole or in part under the Workforce Investment Act of 1998 (29 U.S.C. 2931)
(h)   Deferred disability benefits from the Department of Veterans Affairs, whether received as a lump sum or in monthly prospective amounts
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐37 (i) Income derived from the disposition of funds to the Grand River Band of Ottawa Indians (Pub. L. 94‐540, 90 Stat. 2503‐04)
(j) Payments, funds, or distributions authorized, established, or directed by the Seneca Nation Settlement Act of 1990 (25 U.S.C. 1774f(b))
(k) A lump sum or periodic payment received by an individual Indian pursuant to the Class Action Settlement Agreement in the United States District Court case entitled Elouise Cobell et al. v. Ken Salazar et al., for a period of one year from the time of receipt of that payment as provided in the Claims Resolution Act of 2010 (l) The first $2,000 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the U. S. Claims Court, the interests of individual Indians in trust or restricted lands, including the first $2,000 per year of income received by individual Indians from funds derived from interests held in such trust or restricted lands (25 U.S.C. 1407‐1408)
(m) Benefits under the Indian Veterans Housing Opportunity Act of 2010 (only applies to Native American housing programs)
(n)  Payments received from programs funded under Title V of the Older Americans Act of 1985 (42 U.S.C. 3056(f))
(o) Payments received on or after January 1, 1989, from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in In Re Agent‐product liability litigation, M.D.L. No. 381 (E.D.N.Y.)
(p) Payments received under 38 U.S.C. 1833(c) to children of Vietnam veterans born with spinal bifida, children of women Vietnam veterans born with certain birth defects, and children of certain Korean service veterans born with spinal bifida (q) Payments received under the Maine Indian Claims Settlement Act of 1980 (25 U.S.C. 1721)
(r) 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) (s)  Earned income tax credit (EITC) refund payments received on or after January 1, 1991 (26 U.S.C. 32(j))
(t) Payments by the Indian Claims Commission to the Confederated Tribes and Bands of Yakima Indian Nation or the Apache Tribe of Mescalero Reservation (Pub. L. 95‐433) (u) Amounts of scholarships funded under Title IV of the Higher Education Act of 1965j, including awards under federal work‐study programs or under the Bureau of Indian Affairs student assistance programs (20 U.S.C. 1087uu). For Section 8 programs, the exception found in § 237 of Public Law 109–249 applies and requires that the amount of financial assistance in excess of tuition and mandatory fees shall be considered income in accordance with the provisions codified at 24 CFR 5.609(b)(9), except for 221
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐38 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.)
(v) Allowances, earnings and payments to AmeriCorps participants under the National and Community Service Act of 1990 (42 U.S.C. 12637(d))
(w) Any amount of crime victim compensation (under the Victims of Crime Act) received through crime victim assistance (or payment or reimbursement of the cost of such assistance) as determined under the Victims of Crime Act because of the commission of a crime against the applicant under the Victims of Crime Act (42 U.S.C. 10602) (x) Any amounts in an "individual development account" as provided by the Assets for Independence Act, as amended in 2002
(y) Payments made from the proceeds of Indian tribal trust cases as described in Notice PIH 2013–30, "Exclusion from Income of Payments under Recent Tribal Trust Settlements" (25 U.S.C. 117b(a))
(z) Major disaster and emergency assistance received under the Robert T. Stafford Disaster Relief and Emergency Assistance Act and comparable disaster assistance provided by states, local governments, and disaster assistance organizations 222
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐39 223
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐40 PART II: ADJUSTED INCOME
6‐II.A. INTRODUCTION
Overview
HUD regulations require PHAs to deduct from annual income any of five mandatory deductions for which a family qualifies. The resulting amount is the family’s adjusted income. Mandatory deductions are found in 24 CFR 5.611.

5.611(a) Mandatory deductions. In determining adjusted income, the responsible entity [PHA] must deduct the following amounts from annual income:
(1) $480 for each dependent;
(2) $400 for any elderly family or disabled family;
(3) The sum of the following, to the extent the sum exceeds three percent of annual income:
(i) Unreimbursed medical expenses of any elderly family or disabled family; (ii) Unreimbursed reasonable attendant care and auxiliary apparatus expenses for each member of the family who is a person with disabilities, to the extent necessary to enable any member of the family (including the member who is a person with disabilities) to be employed.

This deduction may not exceed the earned income received by family members who are 18 years of age or older and who are able to work because of such attendant care or auxiliary apparatus; and
(4) Any reasonable child care expenses necessary to enable a member of the family to be employed or to further his or her education.

This part covers policies related to these mandatory deductions. Verification requirements related to these deductions are found in Chapter 7.

Anticipating Expenses
HACSB Policy
Generally, the PHA will use current circumstances to anticipate expenses. When possible, for costs that are expected to fluctuate during the year (e.g., child care during school and 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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐41 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].
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐42 6‐II.D. MEDICAL EXPENSES DEDUCTION [24 CFR 5.611(a)(3)(i)] Unreimbursed medical expenses may be deducted to the extent that, in combination with any disability assistance expenses, they exceed three percent of annual income.

The medical expense deduction is permitted only for families in which the head, spouse, or cohead is at least 62 or is a person with disabilities. If a family is eligible for a medical expense deduction, the medical expenses of all family members are counted [VG, p. 28].

Definition of Medical Expenses
HUD regulations define medical expenses at 24 CFR 5.603(b) to mean “medical expenses, including medical insurance premiums, that are anticipated during the period for which annual income is computed, and that are not covered by insurance.” HACSB 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 insulin, but
not nonprescription medicines even if
recommended by a doctor
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. 226
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐43 Families That Qualify for Both Medical and Disability Assistance Expenses HACSB Policy
This policy applies only to families in which the head, spouse, or cohead is 62 or older or is a person with disabilities.

When expenses anticipated by a family could be defined as either medical or disability assistance expenses, the PHA will consider them medical expenses unless it is clear that the expenses are incurred exclusively to enable a person with disabilities to work. 227
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐44 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.

HACSB 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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐45 Eligible Disability Expenses
Examples of auxiliary apparatus are provided in the HCV Guidebook as follows: “Auxiliary apparatus are items such as wheelchairs, ramps, adaptations to vehicles, or special equipment to enable a blind person to read or type, but only if these items are directly related to permitting the disabled person or other family member to work” [HCV GB, p. 5‐30].

HUD advises PHAs to further define and describe auxiliary apparatus [VG, p. 30].

Eligible Auxiliary Apparatus
HACSB Policy
Expenses incurred for maintaining or repairing an auxiliary apparatus are eligible. In the case of an apparatus that is specially adapted to accommodate a person with disabilities (e.g., a vehicle or computer), the cost to maintain the special adaptations (but not maintenance of the apparatus itself) is an eligible expense. The cost of service animals trained to give assistance to persons with disabilities, including the cost of acquiring the animal, veterinary care, food, grooming, and other continuing costs of care, will be included.

Eligible Attendant Care
The family determines the type of attendant care that is appropriate for the person with disabilities.

HACSB 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. 229
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐46 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.

HACSB 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 HACSB 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. 230
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐47 6‐II.F. CHILD CARE EXPENSE DEDUCTION
HUD defines child care expenses at 24 CFR 5.603(b) as “amounts anticipated to be paid by the family for the care of children under 13 years of age during the period for which annual income is computed, but only where such care is necessary to enable a family member to actively seek employment, be gainfully employed, or to further his or her education and only to the extent such amounts are not reimbursed. The amount deducted shall reflect reasonable charges for child care. In the case of child care necessary to permit employment, the amount deducted shall not exceed the amount of employment income that is included in annual income.” Clarifying the Meaning of Child for This Deduction
Child care expenses do not include child support payments made to another on behalf of a minor who is not living in an assisted family’s household [VG, p. 26]. However, child care expenses for foster children that are living in the assisted family’s household are included when determining the family’s child care expenses [HCV GB, p. 5‐29].

Qualifying for the Deduction
Determining Who Is Enabled to Pursue an Eligible Activity HACSB Policy
The family must identify the family member(s) enabled to pursue an eligible activity. The term eligible activity in this section means any of the activities that may make the family eligible for a child care deduction (seeking work, pursuing an education, or being gainfully employed).

In evaluating the family’s request, the PHA will consider factors such as how the schedule for the claimed activity relates to the hours of care provided, the time required for transportation, the relationship of the family member(s) to the child, and any special needs of the child that might help determine which family member is enabled to pursue an eligible activity.

Seeking Work
HACSB Policy
If the child care expense being claimed is to enable a family member to seek employment, the family must provide evidence of the family member’s efforts to obtain employment at each reexamination. The deduction may be reduced or denied if the family member’s job search efforts are not commensurate with the child care expense being allowed by the PHA.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐48 Furthering Education
HACSB Policy
If the child care expense being claimed is to enable a family member to further his or her education, the member must be enrolled in school (academic or vocational) or participating in a formal training program. The family member is not required to be a full‐time student, but the time spent in educational activities must be commensurate with the child care claimed.

Being Gainfully Employed
HACSB 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. 232
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐49 Earned Income Limit on Child Care Expense Deduction
When a family member looks for work or furthers his or her education, there is no cap on the amount that may be deducted for child care – although the care must still be necessary and reasonable. However, when child care enables a family member to work, the deduction is capped by “the amount of employment income that is included in annual income” [24 CFR

5.603(b)].

The earned income used for this purpose is the amount of earned income verified after any earned income disallowances or income exclusions are applied.

When the person who is enabled to work is a person with disabilities who receives the earned income disallowance (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 calculated in proportion to the amount of time spent working [HCV GB, p. 5‐30].

HACSB 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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐50 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
HACSB Policy
For school‐age children, costs attributable to public or private school activities during standard school hours are not considered. Expenses incurred for supervised activities after school or during school holidays (e.g., summer day camp, after‐school sports league) are allowable forms of child care.

The costs of general housekeeping and personal services are not eligible. Likewise, child care expenses paid to a family member who lives in the family’s unit are not eligible; however, payments for child care to relatives who do not live in the unit are eligible.

If a child care provider also renders other services to a family or child care is used to enable a family member to conduct activities that are not eligible for consideration, the PHA will prorate the costs and allow only that portion of the expenses that is attributable to child care for eligible activities. For example, if the care provider also cares for a child with disabilities who is 13 or older, the cost of care will be prorated.

Unless otherwise specified by the child care provider, the calculation will be based upon the number of hours spent in each activity and/or the number of persons under care. 234
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐51 Necessary and Reasonable Costs
Child care expenses will be considered necessary if: (1) a family adequately explains how the care enables a family member to work, actively seek employment, or further his or her education, and (2) the family certifies, and the child care provider verifies, that the expenses are not paid or reimbursed by any other source.

HACSB Policy
Child care expenses will be considered for the time required for the eligible activity plus reasonable transportation time. For child care that enables a family member to go to school, the time allowed may include not more than one study hour for each hour spent in class.

To establish the reasonableness of child care costs, the PHA will use a schedule of child care costs from a 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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐52 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]
HACSB Policy
Welfare rent does not apply in this locality.

Minimum Rent [24 CFR 5.630]
HACSB Policy
The minimum rent for this locality is $50.

Family Share [24 CFR 982.305(a)(5)]
If a family chooses a unit with a gross rent (rent to owner plus an allowance for tenant‐paid utilities) that exceeds the PHA’s applicable payment standard: (1) the family will pay more than the TTP, and (2) at initial occupancy the PHA may not approve the tenancy if it would require the family share to exceed 40 percent of the family’s monthly adjusted income. The income used for this 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.)
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐53 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.

HACSB Policy
The PHA will make utility reimbursements to the family.

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.

HACSB Policy
The PHA will issue all utility reimbursements monthly.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐54 6‐III.B. FINANCIAL HARDSHIPS AFFECTING MINIMUM RENT [24 CFR 5.630] Overview
If the PHA establishes a minimum rent greater than zero, the PHA must grant an exemption from the minimum rent if a family is unable to pay the minimum rent because of financial hardship.

The financial hardship exemption applies only to families required to pay the minimum rent. If a family’s TTP is higher than the minimum rent, the family is not eligible for a hardship exemption. If the PHA determines that a hardship exists, the family share is the highest of the remaining components of the family’s calculated TTP.

HUD‐Defined Financial Hardship
Financial hardship includes the following situations:
(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.

HACSB 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.

HACSB 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.

HACSB 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. 238
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐55 HACSB Policy
The PHA has not established any additional hardship criteria. 239
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐56 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.

HACSB Policy
The PHA defines temporary hardship as a hardship expected to last 90 days or less.

Long‐term hardship is defined as a hardship expected to last more than 90 days.

When the minimum rent is suspended, the family share reverts to the highest of the remaining components of the calculated TTP. The example below demonstrates the effect of the minimum rent exemption.

Example: Impact of Minimum Rent Exemption
Assume the PHA has established a minimum rent of $35.

Family Share – No Hardship Family Share – With Hardship $0
$15
N/A
$35
30% of monthly adjusted income
10% of monthly gross income
Welfare rent
Minimum rent
$0
$15
N/A
$35
30% of monthly adjusted income
10% of monthly gross income
Welfare rent
Minimum rent
Minimum rent applies.

TTP = $35
Hardship exemption granted.

TTP = $15
HACSB Policy
To qualify for a hardship exemption, a family must submit a request for a hardship exemption in writing. The request must explain the nature of the hardship and how the hardship has affected the family’s ability to pay the minimum rent.

The PHA will make the determination of hardship within 30 calendar days. 240
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐57 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.

HACSB Policy
The PHA will require the family to repay the suspended amount within 30 calendar days of the PHA’s notice that a hardship exemption has not been granted.

Temporary Hardship
If the PHA determines that a qualifying financial hardship is temporary, the PHA must suspend the minimum rent for the 90‐day period beginning the first of the month following the date of the family’s request for a hardship exemption.

At the end of the 90‐day suspension period, the family must resume payment of the minimum rent and must repay the PHA the amounts suspended. HUD requires the PHA to offer a reasonable repayment agreement, on terms and conditions established by the PHA. The PHA also may determine that circumstances have changed and the hardship is now a long‐term hardship.

HACSB Policy
The PHA will enter into a repayment agreement in accordance with the procedures found in Chapter 16 of this plan.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐58 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.

HACSB 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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐59 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)].

The payment standard for a family is the lower of (1) the payment standard for the family unit size, which is defined as the appropriate number of bedrooms for the family under the PHA’s subsidy standards [24 CFR 982.4(b)], or (2) the payment standard for the size of the dwelling unit rented by the family.

If the PHA has established an exception payment standard for a designated part of an FMR area and a family’s unit is located in the exception area, the PHA must use the appropriate payment standard for the exception area.

The PHA is required to pay a monthly housing assistance payment (HAP) for a family that is the lower of (1) the payment standard for the family minus the family’s TTP or (2) the gross rent for the family’s unit minus the TTP.

If during the term of the HAP contract for a family’s unit, the owner lowers the rent, the PHA will recalculate the HAP using the lower of the initial payment standard or the gross rent for the unit [HCV GB, p. 7‐8].

Changes in Payment Standards
When the PHA revises its payment standards during the term of the HAP contract for a family’s unit, it will apply the new payment standards in accordance with HUD regulations.

Decreases
If 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., different zip code areas). 243
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐60 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 the payment standard within the designated area.

HACSB Policy
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 HAP contract, the increased payment standard will be used to calculate the monthly housing assistance payment for the family beginning on the effective date of the family’s first regular reexamination on or after the effective date of the increase in the payment standard.

Families requiring or requesting interim reexaminations will not have their HAP payments calculated using the higher payment standard until their next annual reexamination [HCV GB, p. 7‐8].

Changes in Family Unit Size
Irrespective of any increase or decrease in the payment standard, if the family unit size increases or decreases during the HAP contract term, the new family unit size must be used to determine the payment standard for the family beginning at the family’s first regular reexamination following the change in family unit size.

Reasonable Accommodation
If a family requires a higher payment standard as a reasonable accommodation for a family member who is a person with disabilities, the PHA is allowed to establish a higher payment standard for the family of not more than 120 percent of the published FMR.. 244
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐61 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 dwelling unit leased by a family or the voucher unit size for which the family qualifies using PHA subsidy standards, 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
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].

HACSB 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. 245
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐62 6‐III.E. PRORATED ASSISTANCE FOR MIXED FAMILIES [24 CFR 5.520] HUD regulations prohibit assistance to ineligible family members. A mixed family is one that includes at least one U.S. citizen or eligible immigrant and any number of ineligible family members. The PHA must prorate the assistance provided to a mixed family. The PHA will first determine assistance as if all family members were eligible and then prorate the assistance based upon the percentage of family members that actually are eligible. For example, if the PHA subsidy for a family is calculated at $500 and two of four family members are ineligible, the PHA subsidy would be reduced to $250.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐63 247
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐64 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);
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐65 (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).
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐66 (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.
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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);
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐68 (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.
(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.]
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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.
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(a) Applicable programs. The disallowance of
earned income provided by this section is
applicable only to the following programs:

HOME Investment Partnerships Program (24
CFR part 92); Housing Opportunities for
Persons with AIDS (24 CFR part 574);
Supportive Housing Program (24 CFR part
583); and the Housing Choice Voucher
Program (24 CFR part 982).
(b) Definitions. The following definitions apply
for purposes of this section.

Baseline income. The annual income
immediately prior to implementation of the
disallowance described in paragraph (c)(1) of
this section of a person with disabilities (who
is a member of a qualified family).

Disallowance. Exclusion from annual income.

Previously unemployed includes a person with
disabilities who has earned, in the twelve
months previous to employment, no more
than would be received for 10 hours of work
per week for 50 weeks at the established
minimum wage.

Qualified family. A family residing in housing
assisted under one of the programs listed in
paragraph (a) of this section or receiving
tenant‐based rental assistance under one of
the programs listed in paragraph (a) of this
section.
(1) Whose annual income increases as a result
of employment of a family member who is a
person with disabilities and who was
previously unemployed for one or more years
prior to employment;
(2) Whose annual income increases as a result
of increased earnings by a family member
who is a person with disabilities during
participation in any economic self‐sufficiency
or other job training program; or
(3) Whose annual income increases, as a
result of new employment or increased
earnings of a family member who is a person
with disabilities, during or within six months
after receiving assistance, benefits or services
under any state program for temporary
assistance for needy families funded under
Part A of Title IV of the Social Security Act, as
determined by the responsible entity in
consultation with the local agencies
administering temporary assistance for needy
families (TANF) and Welfare‐to‐Work (WTW)
programs. The TANF program is not limited to
monthly income maintenance, but also
includes such benefits and services as one‐
time payments, wage subsidies and
transportation assistance‐‐ provided that the
total amount over a six‐month period is at
least $500.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐71 (c) Disallowance of increase in annual
income—
(1) Initial twelve month exclusion. During the
cumulative twelve 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.
(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 disabilities as provided in paragraph
(c)(1) or (c)(2) of this section is limited to a
lifetime 24‐month period. The disallowance
applies for a maximum of 12 months for
disallowance under paragraph (c)(1) of this
section and a maximum of 12 months for
disallowance under paragraph (c)(2) of this
section, during the 24‐ month period starting
from the initial exclusion under paragraph
(c)(1) of this section.
(4) Effect of changes on currently participating
families. Families eligible for and participating
in the disallowance of earned income under
this section prior to May 9, 2016 will continue
to be governed by this section in effect as it
existed immediately prior to that date (see 24
CFR parts 0 to 199, revised as of April 1,
2016).
(d) Inapplicability to admission. The
disallowance of increases in income as a result
of employment of persons with disabilities
under this section does not apply for purposes
of admission to the program (including the
determination of income eligibility or any
income targeting that may be applicable).
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256
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 6‐73 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
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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
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
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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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 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 on 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.

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.
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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.
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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
 Self‐Certification
Each of the verification methods is discussed in subsequent sections below.

Requirements for Acceptable Documents
HACSB 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 Web pages are considered original documents.

The PHA staff member who views the original document must make a photocopy, annotate the copy with who provided the document, the date the original was viewed, and initial or sign the copy.

Any family self‐certifications must be made in a format acceptable to the PHA and must be signed in the presence of a PHA representative or PHA notary public. 262
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The PHA must document in the file how the figures used in income and rent calculations were determined. All verification attempts, information obtained, and decisions reached during the verification process will be recorded in the family’s file in sufficient detail to demonstrate that the PHA has followed all of the verification policies set forth in this plan. The record should be sufficient to enable a staff member or HUD reviewer to understand the process followed and conclusions reached.

HACSB Policy
The PHA will document, in the family file, the following:

Reported family annual income
Value of assets
Expenses related to deductions from annual income
Other factors influencing adjusted income
When the PHA is unable to obtain third‐party verification, the PHA will document in the family file the reason that third‐party verification was not available [24 CFR 982.516(a)(2); Notice PIH 2017‐12].
7‐I.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. 263
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PHAs 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 recertifications 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.

HACSB 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.

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.
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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.

HACSB 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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐7 Upfront Income Verification Using Non‐HUD Systems (Optional) In addition to mandatory use of the EIV system, HUD encourages PHAs to utilize other upfront verification sources.

HACSB 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 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.

HACSB Policy
Third‐party documents provided by the family must be dated within 60 days of the PHA 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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐8 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.

HACSB 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.

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.

HACSB 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. 267
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐9 When Third‐Party Verification is Not Required [Notice PIH 2017‐12] Third‐party verification may not be available in all situations. HUD has acknowledged that it may not be cost‐effective or reasonable to obtain third‐party verification of income, assets, or expenses when these items would have a minimal impact on the family’s total tenant payment.

HACSB 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].

HACSB 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 982.516(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‐party verification of all assets regardless of the amount during the intake process and at least every three years thereafter.

HACSB Policy
The PHA will require copies of at least the most current bank statements for all accounts for households with net assets totaling less than $5,000.  For households with assets totaling over $5,000, the PHA will send third‐party verifications and require a minimum of 3 consecutive months’ bank statements.
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
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐10  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.

HACSB Policy
When information cannot be verified by a third party or by review of documents, family members will be required to submit self‐certifications attesting to the accuracy of the information they have provided to the PHA.

The PHA may require a family to certify that a family member does not receive a particular type of income or benefit.

The self‐certification must be made in a format acceptable to the PHA and must be signed by the family member whose information or status is being verified. All self‐ certifications must be signed in the presence of a PHA representative or PHA notary public.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐11 PART II: VERIFYING FAMILY INFORMATION
7‐II.A. VERIFICATION OF LEGAL IDENTITY
HACSB 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 employer identification card
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 be signed in the presence of a PHA representative or PHA notary public.

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 him or herself to be a participant.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐12 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 individuals who do not contend 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 his or her declaration for the purpose of avoiding compliance with the SSN disclosure and documentation requirements or penalties associated with noncompliance with these requirements. Nor may the head of household opt to remove a household member from the family composition for this purpose.

The PHA must accept the following documentation as acceptable evidence of the social security number:

An original SSN card issued by the Social Security Administration (SSA) An original SSA‐issued document, which contains the name and SSN of the individual An original document issued by a federal, state, or local government agency, which contains the name and SSN of the individual
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.

HACSB Policy
The PHA will explain to the applicant or participant the reasons the document is not acceptable and request that the individual obtain and submit acceptable documentation of the SSN to the PHA within 90 days.

In the case of Moderate Rehabilitation Single Room Occupancy (SRO) individuals, the required documentation must be provided within 90 calendar days from the date of admission into the program. The PHA must grant one additional 90‐day extension if it determines that the applicant’s failure to comply was due to circumstances that were beyond the applicant’s control and could not have been reasonably foreseen.

HACSB 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 6 years of age who joined the household within the 6 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 271
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐13 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 6 years of age, or who is under the age of 6 and has an SSN, the participant must provide the complete and accurate SSN assigned to each new member at the time of reexamination or recertification, in addition to the documentation required to verify it. The PHA may not add the new household member until such documentation is provided.

When a participant requests to add a new household member who is under the age of 6 and has not been assigned an SSN, the participant must provide the SSN assigned to each new child and the required documentation within 90 calendar days of the child being added to the household. 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.

HACSB Policy
The PHA will grant one additional 90‐day extension if needed for reasons beyond the participant’s control such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency.

Social security numbers must be verified only once during continuously‐assisted occupancy.

HACSB Policy
The PHA will verify each disclosed SSN by:

Obtaining documentation from applicants and participants that is acceptable as evidence of social security numbers
Making a copy of the original documentation submitted, returning it to the individual, and retaining a copy in the file folder
Once the individual’s verification status is classified as “verified,” the PHA may, at its discretion, remove and destroy copies of documentation accepted as evidence of social security numbers.

The retention of the EIV Summary Report or Income Report is adequate documentation of an individual’s SSN.

HACSB 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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐14 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.

HACSB Policy
If an official record of birth or evidence of social security retirement benefits cannot be provided, the PHA will require the family to submit other documents that support the reported age of the family member (e.g., school records, driver's license if birth year is recorded) and to provide a self‐certification.

Age must be verified only once during continuously‐assisted occupancy. 7‐II.D. FAMILY RELATIONSHIPS
Applicants and program participants are required to identify the relationship of each household member to the head of household. Definitions of the primary household relationships are provided in the Eligibility chapter.

HACSB 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
HACSB 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.

In the case of a common law marriage, the couple must demonstrate that they hold themselves to be married (e.g., by telling the community they are married, calling each other husband and wife, using the same last name, filing joint income tax returns).

Separation or Divorce
HACSB 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.
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Absence of Adult Member
HACSB Policy
If an adult member who was formerly a member of the household is reported to be permanently absent, the family must provide evidence to support that the person is no longer a member of the family (e.g., documentation of another address at which the person resides such as a lease or utility bill).

Foster Children and Foster Adults
HACSB Policy
Third‐party verification from the state or local government agency responsible for the placement of the individual with the family is required. 274
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General Requirements
HACSB Policy
The PHA requires families to provide information about the student status of all students who are 18 years of age or older. This information will be verified only if:

The family reports full‐time student status for an adult other than the head, spouse, or cohead.

The family reports child care expenses to enable a family member to further his or her education.

The family includes a student enrolled in an institution of higher education.

Restrictions on Assistance to Students Enrolled in Institutions of Higher Education This section applies only to students who are seeking assistance on their own, separately from their parents. It does not apply to students residing with parents who are seeking or receiving HCV assistance.

HACSB 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 his/her parents (see below).
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HACSB Policy
The PHA will verify a student’s independence from his/her parents to determine that the student’s parents’ income is not relevant for determining the student’s eligibility by doing all of the following:

Either reviewing and verifying previous address information to determine whether the student has established a household separate from his/her 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 student (see section 3-II.E)
Requesting and obtaining written certification directly from the student’s parents identifying the amount of support they will be providing to the student, even if the amount of support is $0, except in cases in which the PHA determines that the student is a vulnerable youth (see section 3-II.E) .
7‐II.F. DOCUMENTATION OF DISABILITY
The PHA must verify the existence of a disability in order to allow certain income disallowances and deductions from income. The PHA is not permitted to inquire about the nature or extent of a person’s disability [24 CFR 100.202(c)]. The PHA may not inquire about a person’s diagnosis or details of treatment for a disability or medical condition. If the PHA receives a verification document that provides such information, the PHA will not place this information in the tenant file. Under no circumstances will the PHA request a participant’s medical record(s). For more information on health care privacy laws, see the Department of Health and Human Services’ website at http://www.hhs.gov/ocr/privacy/.

The above cited regulation does not prohibit the following inquiries, provided these inquiries are made of all applicants, whether or not they are persons with disabilities [VG, p. 24]:
 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 available 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
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐18  Inquiring whether an applicant has been convicted of the illegal manufacture or distribution of a controlled substance
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐19 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].

HACSB 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 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.

HACSB 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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐20 7‐II.G. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5.508] Overview
Housing assistance is not available to persons who are not citizens, nationals, or eligible immigrants. Prorated assistance is provided for "mixed families" containing both eligible and ineligible persons. A detailed discussion of eligibility requirements is in the Eligibility chapter.

This verifications chapter discusses HUD and PHA verification requirements related to citizenship status.

The family must provide a certification that identifies each family member as a U.S. citizen, a U.S. national, an eligible noncitizen or an ineligible noncitizen and submit the documents discussed below for each family member. Once eligibility to receive assistance has been verified for an individual it need not be collected or verified again during continuously‐assisted occupancy. [24 CFR 5.508(g)(5)]
U.S. Citizens and Nationals
HUD requires a declaration for each family member who claims to be a U.S. citizen or national.

The declaration must be signed personally by any family member 18 or older and by a guardian for minors.

The PHA may request verification of the declaration by requiring presentation of a birth certificate, United States passport or other appropriate documentation.

HACSB Policy
Family members who claim U.S. citizenship or national status will not be required to provide additional documentation unless the PHA receives information indicating that an individual’s declaration may not be accurate.
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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.

HACSB Policy
The PHA will first offer a preference to any family that has been terminated from its HCV program due to insufficient program funding. The PHA will verify this preference using the PHA’s termination records.

Preferences will be provided next to resident families (families that reside, work, or who have been hired to work within HACSB’s jurisdiction).

Resident families who meet one of the two categories below, prioritized as listed:

Category 1 ‐ Program Facilitation: The PHA will verify through PHA records.

Category 2 – Lease In Place: The PHA will verify through verification from the current landlord/property owner and copy of a lease agreement or utility bill proving residency.

If issued a voucher as a result of this preference and the unit fails to meet UPCS‐V standards or for any other reason client is unable to lease in place, the voucher will expire and the applicants returned to the waitlist, with the lease in place preference removed.

Category 2 ‐ Special Needs: Special Needs families fall into one of the following distinct populations:

Transitional Housing
Verified through a referral letter from the Transitional Housing Program. 280
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Verified through a referral from a health care professional or social service professional and a letter verifying the applicant’s length of stay in the institution, or, for those applicants at risk of institutionalization, verified through a referral letter from CHANCE, Tri‐Counties Regional Center, Independent Living Resource Center, PathPoint or applicable local social service providers.

Domestic Violence Displacement
A family that has been displaced or faces imminent displacement from within the PHA’s jurisdiction due to actual or threatened physical domestic violence against one or more members of the applicant family within the last eighteen (18) months. Verified through VAWA verification requirements per Chapter 16.

Homeless Assistance
Verified by referral from C3H’s Housing Placement Working Group, or homeless service provider.   Referrals for seniors or disabled individuals who have been determined by results of the Vulnerability Index (VI) or Vulnerability Index‐Service Prioritization Decision Assistance Tool (VI‐SPDAT) to be both medically vulnerable and chronically homeless and families who have documentation of homelessness and/or have been determined by results of the Family VI‐SPDAT to be chronically homeless, must state applicant’s rank on the Vulnerability Index (VI), and/or score on the Vulnerability Index‐ Service Prioritization Decision Assistance Tool (VI‐SPDAT). Applicants must be ranked in the top 150 rank on the VI and/or with a score of 10 or higher on the VI‐SPDAT.

VI referrals will also require written agreement from the referring agency and/or case manager ensuring a minimum of one (1) year case/crisis management services from the date that the client is housed.

Applicants will be eligible to receive a special needs preference no more than once per year.   If an applicant declines the Section 8 program or is issued a voucher that subsequently expires, upon reapplying for the Section 8 Waitlist, the applicant will not be able to receive a special need preference for one year following the date of application.

Within the Resident Special Needs category, the Resident non‐Special Needs category, and the non‐Resident category, families/individuals receive the below preference points as applicable:

Displaced Family Preference
Verified by reviewing documents provided from a local government agency.

Residency Preference
Families or individuals who live, work, or who have been hired to work within the South coast region of Santa Barbara County (as defined by the Census tracts listed in Appendix 7). Residency will be verified by reviewing applicant documentation including utility bills, 281
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐23 rental agreements, letters of hire, bank statements, employer documentation, and referrals from local shelters and social service agencies.

Rent Burden Preference
Families or individuals who are not currently receiving any housing assistance (e.g. residing in federal, state, local, or privately subsidized developments and/or receiving ongoing rental assistance) will be verified by review of an existing lease and verification provided by their current owner/landlord. This preference will also apply to families/individuals who are residing in a HACSB owned or managed property and have a rent burden exceeding 50% of gross annual household income will be verified using PHA records and verifications.

Veteran Preference
Verified by review of form DD‐214 or other official documents issued by the U.S.

Veterans Administration. Spouses of veterans who are separated but not divorced must provide their marriage certificate and; spouses of deceased veterans must provide their marriage certificate and the death certificate of the veteran.

Families applying to project‐based developments may receive preference for a specific development based on that family having applied to a Project Based Voucher assisted development and who is being referred to HACSB by the owner of that development. This is verified through the review of the owner referral letter. 282
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐24 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
Tips
HACSB 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.

Wages
HACSB Policy
For wages other than tips, the family must provide at minimum originals of the three most current, consecutive pay stubs.
7‐III.B. BUSINESS AND SELF EMPLOYMENT INCOME
HACSB 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.

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 283
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐26 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
HACSB Policy
To verify the SS/SSI benefits of applicants, the PHA will request a current (dated within the last 60 days) SSA benefit verification letter from each family member that receives social security benefits. If the family is unable to provide the document(s), the PHA will help the applicant request a benefit verification letter from SSA’s Web site at www.ssa.gov or ask the family to request one by calling SSA at 1‐800‐772‐1213. Once the applicant has received the benefit verification letter they will be required to provide it to the PHA.

To verify the SS/SSI benefits of participants, the PHA will obtain information about social security/SSI benefits through the HUD EIV System, and confirm with the participant(s) that the current listed benefit amount is correct. If the participant disputes the EIV‐ reported benefit amount, or if benefit information is not available in HUD systems, the PHA will request a current SSA benefit verification letter from each family member that receives social security benefits. If the family is unable to provide the document(s) the PHA will help the participant request a benefit verification letter from SSA’s Web site at www.ssa.gov or ask the family to request one by calling SSA at 1‐800‐772‐1213. Once the participant has received the benefit verification letter they will be required to provide it to the PHA.
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HACSB 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. 286
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐28 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].

HACSB 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
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
HACSB 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 will 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. 287
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐29 7‐III.G. RETIREMENT ACCOUNTS
HACSB Policy
The PHA will mail out third party verifications to verify retirement or similar accounts, and will also collect written third‐party documents supplied by the family as evidence of the status of retirement accounts.

The type of original document that will be accepted depends upon the family member’s retirement status.

Before retirement, the PHA will accept an original document from the entity holding the account with a date that shows it is the most recently scheduled statement for the account but in no case earlier than 6 months from the effective date of the examination.

Upon retirement, the PHA will accept an original document from the entity holding the account that reflects any distributions of the account balance, any lump sums taken and any regular payments.

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.  IRS 1099 forms, statements dated Dec. 31st of the most recent year end, and a current statement will be collected.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐30 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).

HACSB 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.
7‐III.I. ZERO ANNUAL INCOME STATUS
HACSB Policy
Families reporting $5,000 per year or less in annual income will be required to attend an interim reexamination appointment and complete zero income forms at least once every 3 months. In addition,  the PHA will check UIV sources and/or request information from third‐party sources to verify that certain forms of income such as unemployment benefits, TANF, SS, SSI, and earnings are not being received by families claiming to have $5,000 or less in annual income.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐31 7‐III.J. STUDENT FINANCIAL ASSISTANCE
Any financial assistance, in excess of amounts received for tuition, that a person attending an institution of higher education receives under the Higher Education Act of 1965, from private sources, or from an institution of higher education must be considered income unless the student is over the age of 23 with dependent children or is residing with parents who are seeking or receiving HCV assistance [24 CFR 5.609(b)(9) and FR 4/10/06].

For students over the age of 23 with dependent children or students residing with parents who are seeking or receiving HCV assistance, the full amount of student financial assistance is excluded from annual income [24 CFR 5.609(c)(6)]. The full amount of student financial assistance is also excluded for students attending schools that do not qualify as institutions of higher education (as defined in 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).

HACSB Policy
For a student subject to having a portion of his/her 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.

In addition, the PHA will request written verification of the student’s tuition amount.

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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐32 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 his or her parents or a vulnerable youth in accordance with PHA policy [24 CFR 5.612 FR Notice 4/10/06, p. 18146, and FR Notice 9/12/16].

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.

HACSB Policy
If the PHA is required to determine the income eligibility of a student’s parents, the PHA will request an income declaration and certification of income from the appropriate parent(s) (as determined in section 3‐II.E). The PHA will send the request directly to the parents, who will be required to certify to their income under penalty of perjury. The parents will be required to submit the information directly to the PHA. The required information must be submitted (postmarked) within 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. 291
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐33 PART IV: VERIFYING MANDATORY DEDUCTIONS
7‐IV.A. DEPENDENT AND ELDERLY/DISABLED HOUSEHOLD DEDUCTIONS The dependent and elderly/disabled family deductions require only that the PHA verify that the family members identified as dependents or elderly/disabled persons meet the statutory definitions. No further verifications are required.

Dependent Deduction
See Chapter 6 (6‐II.B.) for a full discussion of this deduction. The PHA must verify that:
 Any person under the age of 18 for whom the dependent deduction is claimed is not the head, spouse, or cohead of the family and is not a foster child  Any person 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 cohead is 62 years of age or older or a person with disabilities.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐34 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
HACSB Policy
Medical expenses will be verified through:

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.

Written family certification as to costs anticipated to be incurred during the upcoming 12 months will only be accepted in cases where the family is certifying to the amounts to be repaid on and existing repayment agreement or medical credit card. Proof of amounts self‐certified to be repaid will be verified at subsequent annual reexaminations.  If the self‐certified amounts were not paid, out of pocket expenses for the following reexamination will be reduced to offset the excess allowance previously given.

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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐35 Eligible Household
The medical expense deduction is permitted only for households in which the head, spouse, or cohead is at least 62, or a person with disabilities. The PHA must verify that the family meets the definition of an elderly or disabled family provided in the Eligibility chapter and as described in Chapter 7 (7‐IV.A.) of this plan.

Qualified Expenses
To be eligible for the 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.

HACSB 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
HACSB Policy
When anticipated costs are related to on‐going payment of medical bills incurred in past years, the PHA will verify:

The anticipated repayment schedule
The amounts paid in the past, and
Whether the amounts to be repaid have been deducted from the family’s annual income in past years
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐36 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
HACSB Policy
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
HACSB Policy
Expenses for auxiliary apparatus will be verified through:

Written third‐party documents provided by the family, such as billing statements for purchase of auxiliary apparatus, or other evidence of monthly payments or total payments that will be due for the apparatus during the upcoming 12 months.

Third‐party verification form signed by the provider, if family‐provided documents are not available.

If third‐party verification is not possible, written family certification of estimated apparatus costs for the upcoming 12 months.

In addition, the PHA must verify that:
 The family member for whom the expense is incurred is a person with disabilities (as described in 7‐II.F above).
 The expense permits a family member, or members, to work (as described in 6‐II.E.).  The expense is not reimbursed from another source (as described in 6‐II.E.). 295
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐37 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.

HACSB 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.

HACSB 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. 296
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐38 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 verification procedures described in Part I of this chapter. In addition, the PHA must verify that:
 The child is eligible for care (12 or younger).
 The costs claimed are not reimbursed.
 The costs enable a family member to work, actively seek work, or further their education.  The costs are for an allowable type of child care.
 The costs are reasonable.

Eligible Child
To be eligible for the child care 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 child care deduction, the costs must not be reimbursed by another source.

HACSB Policy
The family (and the care provider) will be required to certify that the child care expenses are not paid or reimbursed to the family from any source. 297
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐39 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.

HACSB Policy
Information to be Gathered
The PHA will verify information about how the schedule for the claimed activity relates to the hours of care provided, the time required for transportation, the time required for study (for students), the relationship of the family member(s) to the child, and any special needs of the child that might help determine which family member is enabled to pursue an eligible activity.

Seeking Work
Whenever possible the PHA will use documentation from a state or local agency that monitors work‐related requirements (e.g., welfare or unemployment). In such cases the PHA will request family‐provided verification from the agency of the member’s job seeking efforts to date, and require the family to submit to the PHA any reports provided to the other agency.

Job interview appointment letters provided by the family may also be accepted as verification of job seeking efforts.

In the event third‐party verification is not available, the PHA will provide the family with a form on which the family member must record job search efforts. The PHA will review this information at each subsequent reexamination for which this deduction is claimed.

Furthering Education
The PHA will request third‐party documentation to verify that the person permitted to further his or her education by the child care 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 child care. 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. 298
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐40 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.

HACSB 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 family members).

The PHA will verify that the child care 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 child care costs can be deducted.

HACSB 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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐41 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
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐42 301
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 7‐43 302
Item 6.
© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 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 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 and 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 is in the process of replacing HQS with an improved inspection standard called The Uniform Physical Condition Standards for Vouchers (UPCS‐V) as mandated by Congress.  UPCS‐V is a Demonstration Program aimed to clarify and streamline inspection processes for PHAs and inspectors, while increasing owners and tenants access to detailed information about their homes. During the demonstration period, PHAs are encouraged to gradually implement the new standards before UPCS‐V is formally adopted as the replacement to HQS to ensure the transition is seamless.

HACSB Policy
Effective immediately, UPSC‐V standards will be utilized for all units requiring an initial inspection as a result of a new HAP contract. HQS standards will be utilized for all annual inspections and re‐inspections through the end of the calendar year ending December 31, 2018. Effective January 1, 2019, all inspections will be conducted utilizing UPCS‐V standards.

HUD also requires PHAs to determine that rents for units under the program are reasonable when compared to comparable unassisted units in the market area.

This chapter explains HUD and PHA requirements related to housing quality and rent reasonableness as follows:

Part I. Physical Standards. This part discusses the physical standards required of units occupied by 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.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 8‐2 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. 304
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 8‐3 PART I: PHYSICAL STANDARDS
8‐I.A. GENERAL HUD REQUIREMENTS
HUD Performance and Acceptability Standards
HUD's performance and acceptability standards for HCV‐assisted housing are provided in 24 CFR 982.401. These standards cover the following areas:
 Sanitary facilities
 Food preparation and refuse disposal
 Space and Security
 Thermal Environment
 Illumination and electricity
 Structure and materials
 Interior Air Quality
 Water Supply
 Lead‐based paint
 Access
 Site and neighborhood
 Sanitary condition
 Smoke Detectors
A summary of HUD performance criteria is provided in Exhibit 8‐1. Additional guidance on these requirements is found in the following HUD resources:
 Housing Choice Voucher Guidebook, Chapter 10.
 HUD Housing Inspection Manual for Section 8 Housing
 HUD Inspection Form, form HUD‐52580 (3/01) and Inspection Checklist, form HUD‐52580‐A (9/00)
 HUD Notice 2003‐31, Accessibility Notice: Section 504 of the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Architectural Barriers Act of 1968 and the Fair Housing Act of 1988.

UPCS‐V Inspection Protocol
Inspectors are responsible for conducting inspections to determine compliance with the UPCS‐V Inspection Protocol. There are five inspectable areas within UPCS‐V:
• Unit
• Building Exterior
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 8‐4 • Building System
• Common Area
• Site
UPCS‐V is primarily centered on the condition of the Unit but includes items within the four additional areas, which negatively affect the habitability of the HCV unit or the Health and Safety of its Tenants.

Each inspectable area has multiple inspectable items. An inspectable item is a component of an inspectable area, which is to be evaluated under the UPCS‐V Inspection Protocol. For example, while inspecting the Unit (inspectable area), the Inspector will evaluate the water heater (inspectable item).

During an inspection, the Inspector must examine all applicable inspectable items within each inspectable area.
• Observation: Occurs when there is an inspectable item with no deficiency (recorded in the inspection as No Observed Deficiency (NOD))
• Deficiency: Occurs when there is an inspectable item that is missing, flawed, or does not function as designed; item may Pass or Fail depending on the severity • Not Applicable (NA): Occurs when an inspectable item does not appear in the HCV unit and is not required to be present
Based on the severity of the deficiency recorded, the inspection software will identify a Pass or Fail status for the item and the unit.

As UPCS‐V is being developed and changed throughout the demonstration period, HUD will continue to publish updated UPCS‐V manuals at HUD.gov as they are developed.

HACSB Policy
The most recently published UPCS‐V manual will be maintained for viewing on HACSB’s website www.hacsb.org
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 appearance of the facilities is acceptable. Exhibit 8‐2 summarizes those items that are considered tenant preferences.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 8‐5 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.

HACSB 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 choices 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.

HACSB Policy
The heating system must be capable of maintaining an interior temperature of 65 degrees Fahrenheit between October 1 and May 1.

UPCS‐V, HVAC – Building System, Common Area, or Unit [UPCS‐V v. 3.0 p. 37] If the HVAC system does not operate because of seasonal conditions, this should not be recorded as a deficiency.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 8‐6 Clarifications of HUD Requirements
HACSB Policy
As permitted by HUD, the PHA has adopted the following specific requirements that elaborate on HUD standards.

Water Heaters
Water heaters must have a discharge pipe extends within 6 inches of the ground.

The discharge pipe must be copper or galvanized pipe. PVC pipe is not allowed.

Walls
In areas where plaster or drywall is sagging, severely cracked, or otherwise damaged, it must be repaired or replaced.

Windows
Window sashes must be in good condition, solid and intact, and properly fitted to the window frame. Damaged or deteriorated sashes must be replaced.

Windows must be weather‐stripped as needed to ensure a weather‐tight seal.

Window screens must be in good condition (applies only if screens are present).

Doors
All exterior doors must be weather‐tight to avoid any air or water infiltration, be lockable, have no holes, have all trim intact, and have a threshold.

All interior doors must have no holes, have all trim intact, and be able to be opened without the use of a key.

Floors
All wood floors must be sanded to a smooth surface and sealed. Any loose or warped boards must be re‐secured and made level. If they cannot be leveled, they must be replaced.

All floors must be in a finished state. Raw wood or unsealed concrete is not permitted.

All floors should have some type of base shoe, trim, or sealing for a "finished look." Vinyl base shoe is permitted.

Sinks
All sinks and commode water lines must have shut off valves, unless faucets are wall mounted.

All sinks must have functioning stoppers.

Toilets
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 8‐7 All worn or cracked toilet seats and tank lids must be replaced and toilet tank lid must fit properly.

Security
If window security bars or security screens are present on emergency exit windows, they must be equipped with a quick release system. The owner is responsible for ensuring that the family is instructed on the use of the quick release system.
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 8‐8 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.

HACSB 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
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
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 8‐9 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 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
Inoperable or missing smoke detector. Smoke detectors are required on each floor, including basements, excluding non‐living attics Inoperable or missing carbon monoxide detectors
Missing, damaged, discharged, overcharged, or expired fire extinguisher (where required)
Gas/oil‐fired water heater or heating, ventilation, or cooling system with missing, damaged, improper, or misaligned chimney venting
The chimney or venting system on a fuel‐fired water heater is misaligned, negatively pitched, or damaged, which may cause improper or dangerous venting or gases
A gas dryer vent is missing, damaged, or is visually determined to be inoperable, or the dryer exhaust is not vented to the outside A fuel‐fired space heater is not properly vented or lacks available combustion air
A non‐vented space heater is present
Safety devices on a fuel‐fired space heater are missing or damaged The chimney or venting system on a fuel‐fired heating, ventilation, or cooling system is misaligned, negatively pitched, or damaged, which may cause improper or dangerous venting of gas
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© Copyright 2017 Nan McKay & Associates, Inc. HACSB Admin Plan 08/01/2018 Unlimited copies may be made for internal use. Page 8‐10 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
UPCS‐V
In addition to the above mentioned Life‐Threatening or Emergency Conditions (LTE), UPCS‐V identifies the following as LTEs:

Storage of liquid or natural gas inside the living space of a unit A fire extinguisher (where required) that is missing, damaged, discharged, overcharged, or expired. (This applies only if the PHA has adopted an acceptability criteria variation to the housing quality standard to require fire extinguishers.) 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.