Inspection Costs [Notice PIH 2016-05; 24 CFR 5.705(d)]
The PHA may not charge the family for unit inspections or reinspections [24 CFR 982.405(e)].
In the case of inspections of PHA-owned units, the PHA may compensate the independent agency from ongoing administrative fee for inspections performed. The PHA and the independent agency may not charge the family any fee or charge for the inspection [24 CFR.982.352(b)].
The PHA may not charge the owner for the inspection of the unit prior to the initial term of the lease or for a first inspection during assisted occupancy of the unit. However, the PHA may charge a reasonable fee to owners for reinspections in two situations: when the owner notifies the PHA that a repair has been made but the deficiency has not been corrected, and when the time for repairs has elapsed and the deficiency has not been corrected. Fees may not be imposed for tenant-caused damages, for cases in which the inspector could not gain access to the unit, or for new deficiencies discovered during a reinspection.
The owner may not pass the cost of a reinspection fee to the family. Reinspection fees must be added to the PHA’s administrative fee reserves and may only be used for activities related to the provision of tenant-based assistance.
HACN Policy
The PHA will not charge a fee for failed reinspections.
Remote Video Inspections (RVIs) [Notice PIH 2020-31]
As an alternative to some or all on-site inspections, the PHA may, but is not required to, perform NSPIRE inspections from a remote location using video streaming technology and a proxy at the inspection site. Since there may be some circumstances in which the application of technology provides insufficient information or evidence to allow the PHA to make appropriate determinations about whether a condition violates NSPIRE standards, Notice PIH 2020-31 requires that if a PHA chooses to implement RVIs, the PHA should have policies and procedures in place to address such limitations.
HACN Policy
The PHA will not conduct any inspection using RVI.
Notice and Scheduling
The family must allow the PHA to inspect the unit at reasonable times with reasonable notice [24 CFR 982.551(d)].
HACN Policy
Both the family and the owner will be given reasonable notice of all inspections. Except in the case of a life-threatening emergency, reasonable notice is considered to be not less than 48 hours. Inspections may be scheduled between 8:00 a.m. and 7:00 p.m. Generally, inspections will be conducted on business days only. In the case of a life-threatening emergency, the PHA will give as much notice as possible, given the nature of the emergency.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
Owner and Family Inspection Attendance
HUD permits the PHA to set policy regarding family and owner presence at the time of inspection [HCV GB p. 10-27].
HACN Policy
When a family occupies the unit at the time of inspection an authorized adult must be present for the inspection. The presence of the owner or the owner's representative is encouraged but is not required.
At initial inspection of a vacant unit, the PHA will inspect the unit in the presence of the owner or owner’s representative. The presence of a family representative is permitted but is not required.
8-II.B. INITIAL INSPECTION
Approving Units [FR Notice 1/18/17; Notice PIH 2017-20; and 24 CFR 982.406] HUD regulations require that units assisted under the HCV program be inspected to determine that the units meet NSPIRE standards before the PHA approves assisted tenancy. However, while the PHA is required to conduct an inspection prior to approving assisted tenancy, PHAs have two options for bringing units under HAP contract (or, in the case of PBV, approving occupancy and the execution of a lease) more quickly. The PHA may, but is not required to approve assisted tenancy and start HAP if the unit:
• Fails the initial inspection, but only if no life-threatening deficiencies are identified. • Passed an alternative inspection in the last 24 months.
Otherwise, if neither of the above provisions are adopted, the PHA must determine that the unit the family selects meets NSPIRE standards prior to approving tenancy.
HACN Policy
The unit must pass the initial inspection on or before the effective date of the HAP contract.
The PHA will not rely on alternative inspections and will conduct an initial inspection for each unit prior to executing a HAP contract with the owner.
Timing of Initial Inspections [24 CFR 982.395(b)(2)(i)] HUD requires PHAs with fewer than 1,250 budgeted units to complete the initial inspection, determine whether the unit satisfies NSPIRE standards, and notify the owner and the family of the determination within 15 days of submission of the Request for Tenancy Approval (RTA). For PHAs with 1,250 or more budgeted units, to the extent practicable such inspection and determination must be completed within 15 days. The 15-day period is suspended for any period during which the unit is not available for inspection.
HACN Policy
The PHA will complete the initial inspection, determine whether the unit satisfies NSPIRE standards, and notify the owner and the family of the determination within 15 days of submission of the Request for Tenancy Approval (RTA).
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
Inspection Results and Reinspections
For new units proposed for the HCV program, life-threatening deficiencies must be resolved before the HAP contract is executed and the family moves into the unit.
HACN Policy
If any deficiencies are identified, the owner will be notified of the deficiencies and be given a time frame to correct them. If requested by the owner, the time frame for correcting the deficiencies may be extended by the PHA for good cause. The PHA will reinspect the unit within five business days of the date the owner notifies the PHA that the required corrections have been made.
If the time period for correcting the deficiencies (or any PHA-approved extension) has elapsed, or the unit fails at the time of the reinspection, the PHA will notify the owner and the family that the unit has been rejected and that the family must search for another unit. The PHA may agree to conduct a second reinspection, for good cause, at the request of the family and owner.
Following a failed reinspection, the family may submit a new Request for Tenancy Approval for the same unit after the owner has made repairs, if they are unable to locate another suitable unit.
Utilities
Generally, at initial lease-up the owner is responsible for demonstrating that all utilities are in working order including those utilities that the family will be responsible for paying.
HACN Policy
Utility service must be available for testing at the time of the initial inspection.
Appliances
HACN Policy
If the family is responsible for supplying the stove and/or refrigerator, the PHA will allow the stove and refrigerator to be placed in the unit after the unit has met all other NSPIRE requirements. The required appliances must be in place before the HAP contract is executed by the PHA. The PHA will execute the HAP contract based upon a certification from the family that the appliances have been installed and are working. A confirmatory inspection will be scheduled within 30 days of HAP contract approval.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
8-II.C. ANNUAL/BIENNIAL INSPECTIONS [24 CFR 982.405 and 982.406; Notice PIH 2016-05]
HUD requires the PHA to inspect each unit under HAP contract at least biennially (or triennially for small rural PHAs), to confirm that the unit still meets NSPIRE standards. The inspection may be conducted in conjunction with the family's annual reexamination but also may be conducted separately.
HACN Policy
Each unit under HAP contract must be inspected biennially within 24 months of the last full inspection. The PHA reserves the right to require annual inspections of any unit or owner at any time.
The PHA will not rely on alternative inspection standards.
Scheduling the Inspection
HACN Policy
If an adult cannot be present on the scheduled date, the family should request that the PHA reschedule the inspection. The PHA and family will agree on a new inspection date that generally should take place within five business days of the originally scheduled date. The PHA may schedule an inspection more than five business days after the original date for good cause.
If the family misses the first scheduled appointment without requesting a new inspection date, the PHA will automatically schedule a second inspection. If the family misses two scheduled inspections without PHA approval, the PHA will consider the family to have violated its obligation to make the unit available for inspection. This may result in termination of the family’s assistance in accordance with Chapter 12. 8-II.D. SPECIAL INSPECTIONS [24 CFR 982.405(g)]
If a participant family or government official reports a life-threatening condition which the owner would be required to repair within 24 hours, the PHA must inspect the unit within 24 hours of notification. If the reported condition is not life-threatening, the PHA must inspect the unit within 15 days of notification.
HACN Policy
During a special inspection, the PHA generally will inspect only those deficiencies that were reported. However, the inspector will record any additional deficiencies that are observed and will require the responsible party to make the necessary repairs.
If the annual/biennial inspection has been scheduled or is due within 90 days of the date the special inspection is scheduled the PHA may elect to conduct a full annual/biennial inspection.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
8-II.E. QUALITY CONTROL INSPECTIONS [24 CFR 982.405(b); 24 CFR 985.3(e); HCV GB, p. 10-32]
HUD requires a PHA supervisor or other qualified person to conduct quality control inspections of a sample of units to ensure that each inspector is conducting accurate and complete inspections and that there is consistency in the application of the NSPIRE standards.
The unit sample must include only units that have been inspected within the preceding three months. The selected sample should be drawn to represent a cross section of neighborhoods and the work of a cross section of inspectors.
8-II.F. INSPECTION RESULTS AND REINSPECTIONS FOR UNITS UNDER
HAP CONTRACT
Correction Timeframes
Each deficiency is identified in the NPSIRE standards as either life-threatening, severe, moderate, or low.
For units under HAP contract, life-threatening deficiencies must be corrected within 24 hours after notice has been provided. All other non-life-threatening deficiencies (severe and moderate) must be corrected within 30 days (or a PHA-approved extension) after notice has been provided.
If low deficiencies are present in a unit, these deficiencies result in a pass and would only be noted by the inspector for informational purposes.
Notification of Corrective Actions
The owner and the family will be notified in writing of the results of all inspections. When an inspection identifies deficiencies, the PHA will determine (1) whether or not the failure is a lifethreatening condition and (2) whether the family or owner is responsible.
HACN Policy
When life-threatening deficiencies are identified, the PHA will immediately notify both parties by telephone or email. The notice will specify who is responsible for correcting the violation. The corrective actions must be taken within 24 hours of the PHA’s notice.
When failures that are severe or moderate are identified, the PHA will send the owner and the family a written notification of the inspection results within five business days of the inspection. The written notice will specify who is responsible for correcting the violation, and the time frame within which the failure must be corrected. Generally, not more than 30 days will be allowed for the correction. If low deficiencies are identified, these deficiencies will only be noted for informational purposes.
The notice of inspection results will inform the owner that if life-threatening conditions are not corrected within 24 hours, and non-life-threatening conditions are not corrected within the specified time frame (or any PHA-approved extension), the owner’s HAP will be abated in accordance with PHA policy (see 8-II.G.).
Likewise, in the case of family caused deficiencies, the notice will inform the family that if corrections are not made within the specified time frame (or any PHA-approved extension, if applicable) the family’s assistance will be terminated in accordance with PHA policy (see Chapter 12).
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
Extensions
For life-threatening deficiencies, the PHA cannot grant an extension to the 24-hour corrective action period. For conditions that are severe or moderate, the PHA may grant an exception to the required time frames for correcting the violation, if the PHA determines that an extension is appropriate.
HACN Policy
Extensions will be granted in cases where the PHA has determined that the owner has made a good faith effort to correct the deficiencies and is unable to for reasons beyond the owner’s control. Reasons may include, but are not limited to:
A repair cannot be completed because required parts or services are not available.
A repair cannot be completed because of weather conditions.
A reasonable accommodation is needed because the family includes a person with disabilities.
The length of the extension will be determined on a case-by-case basis, but will not exceed 60 days, except in the case of delays caused by weather conditions. In the case of weather conditions, extensions may be continued until the weather has improved sufficiently to make repairs possible. The necessary repairs must be made within 15 calendar days, once the weather conditions have subsided.
Reinspections
HACN Policy
The PHA will conduct a reinspection immediately following the end of the corrective period, or any PHA approved extension.
The family and owner will be given reasonable notice of the reinspection appointment. If the deficiencies have not been corrected by the time of the reinspection, the PHA will send a notice of abatement to the owner, or in the case of family caused violations, a notice of termination to the family, in accordance with PHA policies. If the PHA is unable to gain entry to the unit in order to conduct the scheduled reinspection, the PHA will consider the family to have violated its obligation to make the unit available for inspection. This may result in termination of the family’s assistance in accordance with Chapter 12.
The PHA will not accept self-certification of repairs. Photos or other documentation of repairs will not be accepted in lieu of a reinspection.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
8-II.G. ENFORCING OWNER COMPLIANCE
If the owner fails to maintain the dwelling unit in accordance with NSPIRE standards, the PHA must take prompt and vigorous action to enforce the owner obligations.
HAP Abatement
If an owner fails to correct deficiencies by the time specified by the PHA, HUD requires the PHA to abate housing assistance payments no later than the first of the month following the specified correction period (including any approved extension) [24 CFR 985.3(f)]. No retroactive payments will be made to the owner for the period of time the rent was abated. Owner rents are not abated as a result of deficiencies that are the family's responsibility.
HACN Policy
The PHA will make all HAP abatements effective the first of the month following the expiration of the PHA specified correction period (including any extension).
The PHA will inspect abated units within five business days of the owner’s notification that the work has been completed. Payment will resume effective on the day the unit passes inspection.
During any abatement period the family continues to be responsible for its share of the rent. The owner must not seek payment from the family for abated amounts and may not use the abatement as cause for eviction.
HAP Contract Termination
The PHA must decide how long any abatement period will continue before the HAP contract will be terminated. The PHA should not terminate the contract until the family finds another unit, provided the family does so in a reasonable time [HCV GB p. 10-29] and must give the owner reasonable notice of the termination. The PHA will issue a voucher to permit the family to move to another unit as described in Chapter 10.
HACN Policy
The maximum length of time that HAP may be abated is 90 days. However, if the owner completes corrections and notifies the PHA before the termination date of the HAP contract, the PHA may rescind the termination notice if (1) the family still resides in the unit and wishes to remain in the unit and (2) the unit passes inspection.
Reasonable notice of HAP contract termination by the PHA is 30 days. 8-II.H. ENFORCING FAMILY COMPLIANCE [24 CFR 982.404(b)] Families are responsible for correcting any deficiencies listed in paragraph 8-I.D. If the family fails to correct a violation within the period allowed by the PHA (and any extensions), the PHA will terminate the family’s assistance, according to the policies described in Chapter 12.
If the owner carries out a repair for which the family is responsible under the lease, the owner may bill the family for the cost of the repair.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
PART III: RENT REASONABLENESS [24 CFR 982.507]
8-III.A. OVERVIEW
Except in the case of certain LIHTC- and HOME-assisted units, no HAP contract can be approved until the PHA has determined that the rent for the unit is reasonable. The purpose of the rent reasonableness test is to ensure that a fair rent is paid for each unit rented under the HCV program.
HUD regulations define a reasonable rent as one that does not exceed the rent charged for comparable, unassisted units in the same market area. HUD also requires that owners not charge more for assisted units than for comparable units on the premises. This part explains the method used to determine whether a unit’s rent is reasonable.
PHA-Owned Units [24 CFR 982.352(b)]
In cases where an HCV family is receiving assistance in a PHA-owned unit, the PHA must obtain the services of an independent entity to determine rent reasonableness in accordance with program requirements, and to assist the family in negotiating the contract rent when the family requests assistance. A PHA-owned unit is defined as a unit that is owned by the PHA that administers the assistance under the consolidated ACC (including a unit owned by an entity substantially controlled by the PHA). The independent agency must communicate the results of the rent reasonableness determination to the family and the PHA. The independent agency must be approved by HUD and may be the unit of general local government for the PHA jurisdiction (unless the PHA is itself the unit of general local government or an agency of such government).
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
8-III.B. WHEN RENT REASONABLENESS DETERMINATIONS ARE REQUIRED Owner-Initiated Rent Determinations
The PHA must make a rent reasonableness determination at initial occupancy and whenever the owner requests a rent adjustment.
The owner and family first negotiate the rent for a unit. The PHA (or independent agency in the case of PHA-owned units) will assist the family with the negotiations upon request. At initial occupancy the PHA must determine whether the proposed rent is reasonable before a HAP Contract is signed. The owner must not change the rent during the initial lease term. Subsequent requests for rent adjustments must be consistent with the lease between the owner and the family.
Rent increases will not be approved unless any failed items identified by the most recent inspection have been corrected.
HACN Policy
After the initial occupancy period, the owner may request a rent adjustment in accordance with the owner’s lease. For rent increase requests after initial lease-up, the PHA may request owners to provide information about the rents charged for other units on the premises, if the premises include more than 4 units. In evaluating the proposed rents in comparison to other units on the premises the PHA will consider unit size and length of tenancy in the other units.
The PHA will determine whether the requested increase is reasonable within 10 business days of receiving the request from the owner. The owner will be notified of the determination in writing.
All rents adjustments will be effective the first of the month following 60 days after the PHA’s receipt of the owner’s request or on the date specified by the owner, whichever is later.
PHA and HUD-Initiated Rent Reasonableness Determinations HUD requires the PHA to make a determination of rent reasonableness (even if the owner has not requested a change) if there is a 10 percent decrease in the fair market rent that goes into effect at least 60 days before the contract anniversary date. HUD also may direct the PHA to make a determination at any other time. The PHA may decide that a new determination of rent reasonableness is needed at any time.
HACN Policy
In addition to the instances described above, the PHA will make a determination of rent reasonableness at any time after the initial occupancy period if: (1) the PHA determines that the initial rent reasonableness determination was in error or (2) the PHA determines that the information provided by the owner about the unit or other units on the same premises was incorrect.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
LIHTC and HOME-Assisted Units [24 CFR 982.507(c)]
For units receiving low-income housing tax credits (LIHTCs) or units assisted under HUD’s HOME Investment Partnerships (HOME) Program, a rent comparison with unassisted units is not required if the voucher rent does not exceed the rent for other LIHTC- or HOME-assisted units in the project that are not occupied by families with tenant-based assistance.
For LIHTCs, if the rent requested by the owner does exceed the LIHTC rents for non-voucher families, the PHA must perform a rent comparability study in accordance with program regulations. In such cases, the rent shall not exceed the lesser of: (1) the reasonable rent as determined from the rent comparability study; or (2) the payment standard established by the PHA for the unit size involved.
8-III.C. HOW COMPARABILITY IS ESTABLISHED
Factors to Consider
HUD requires PHAs to take into consideration the factors listed below when determining rent comparability. The PHA may use these factors to make upward or downward adjustments to the rents of comparison units when the units are not identical to the HCV-assisted unit. • Location and age
• Unit size including the number of rooms and square footage of rooms • The type of unit including construction type (e.g., single family, duplex, garden, low-rise, high-rise)
• The quality of the units including the quality of the original construction, maintenance and improvements made
• Amenities, services, and utilities included in the rent Units that Must Not Be Used as Comparables
Comparable units must represent unrestricted market rents. Therefore, units that receive some form of federal, state, or local assistance that imposes rent restrictions cannot be considered comparable units. These include units assisted by HUD through any of the following programs:
Section 8 project-based assistance, Section 236 and Section 221(d)(3) Below Market Interest Rate (BMIR) projects, HOME or Community Development Block Grant (CDBG) programassisted units in which the rents are subsidized; units subsidized through federal, state, or local tax credits; units subsidized by the Department of Agriculture rural housing programs, and units that are rent-controlled by local ordinance [Notice PIH 2002-22, Notice PIH 2005-20, and Notice PIH 2020-19].
Note: Notice PIH 2020-19, issued August 21, 2020, provides further guidance on the issue of what constitutes an assisted unit.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
Rents Charged for Other Units on the Premises
The Request for Tenancy Approval (HUD-52517) requires owners to provide information, on the form itself, about the rent charged for other unassisted comparable units on the premises if the premises include more than 4 units.
By accepting the PHA payment each month the owner certifies that the rent is not more than the rent charged for comparable unassisted units on the premises. If asked to do so, the owner must give the PHA information regarding rents charged for other units on the premises.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
8-III.D . PHA RENT REASONABLENESS METHODOLOGY
How Market Data Is Collected
HACN Policy
The PHA will collect and maintain data on market rents in the PHA's jurisdiction.
Information sources include newspapers, realtors, market surveys, inquiries of owners and other available sources. The data will be maintained by bedroom size and market areas. Market areas may be defined by zip codes, census tract, neighborhood, and identifiable natural or man-made boundaries. PHA will use data within a 30 mile radius The data will be updated on an ongoing basis and rent information that is more than 12 months old will be eliminated from the database.
How Rents Are Determined
HACN Policy
The rent for a unit proposed for HCV assistance will be compared to the rent charged for comparable units in the same market area. The PHA will develop a range of prices for comparable units by bedroom size within defined market areas. Units proposed for HCV assistance will be compared to the units within this rent range. Because units may be similar, but not exactly like the unit proposed for HCV assistance, the PHA may make adjustments to the range of prices to account for these differences.
The adjustment must reflect the local market. Not all differences in units require adjustments (e.g., the presence or absence of a garbage disposal may not affect the rent in some market areas).
Adjustments may vary by unit type (e.g., a second bathroom may be more valuable in a three-bedroom unit than in a two-bedroom).
The adjustment must reflect the rental value of the difference—not its construction costs (e.g., it might cost $20,000 to put on a new roof, but the new roof might not make any difference in what a tenant would be willing to pay because rental units are presumed to have functioning roofs).
When a comparable project offers rent concessions (e.g., first month rent-free, or reduced rent) reported monthly rents will be adjusted accordingly. For example, if a comparable project reports rents of $500/month but new tenants receive the first month's rent free, the actual rent for the unit would be calculated as follows: $500 x 11 months = 5500/12 months = actual monthly rent of $488.
The PHA will notify the owner of the rent the PHA can approve based upon its analysis of rents for comparable units. The owner may submit information about other comparable units in the market area. The PHA will confirm the accuracy of the information provided and consider this additional information when making rent determinations. The owner must submit any additional information within five business days of the PHA’s request for information or the owner’s request to submit information.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
EXHIBIT 8-1: AFFIRMATIVE HABITABILITY REQUIREMENTS
Affirmative Habitability Requirements: Inside
Must include at least 1 battery-operated or hard-wired smoke detector, in proper working condition, on each level of the property.
Must meet or exceed the carbon monoxide detection standards set by the Secretary through Federal Register notification.
Any outlet installed within 6 feet of a water source must be GFCI protected.
Must have a guardrail when there is an elevated walking surface with a drop off of 30 inches or greater measured vertically.
Must have permanently mounted light fixtures in any kitchens and each bathroom.
May not contain unvented space heaters that burn gas, oil or kerosene.
Affirmative Habitability Requirements: Outside
Any outlet installed within 6 feet of a water source must be GFCI-protected.
Must have a guardrail when there is an elevated walking surface with a drop off of 30 inches or greater measured vertically.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
Affirmative Habitability Requirements: Unit
Must have hot and cold running water in the bathroom and kitchen, including an adequate source of safe drinking water in the bathroom and kitchen.
Must include its own bathroom or sanitary facility that is in proper operating condition and usable in privacy. It must contain a sink, a bathtub or shower, and an interior flushable toilet.
Must have at least one battery-operated or hard-wired smoke detector, in proper working condition, in the following locations:
• On each level of the unit AND
• Inside each bedroom or sleeping area AND
• With 21 feet of any door toa bedroom measured along a path of travel AND • Where a smoke detector is installed outside a bedroom is separated from an adjacent living area by a door, a smoke detector must also be installed in the living area side of the door.
If the unit is occupied by a hearing-impaired person, the smoke detectors must have an alarm system designed for hearing-impaired persons.
Must have a living room and a kitchen area with a sink, cooking appliance, refrigerator, food preparation area and food storage area.
Must have two working outlets or one working outlet and one permanent light fixture within all habitable rooms.
Must have a permanently mounted light fixture in each bathroom and in the kitchen.
Outlets within 6 feet of water source must be GFCI-protected.
Must have permanently installed heating source.
No units may contain unvented space heaters that burn gas, oil or kerosene.
Must have a guard rail when there is an elevated walking surface with a drop off of 30 inches or greater measured vertically.
Must have at least one bedroom or living/sleeping room for each two persons.
Item 2.
Instructions for Preparing Chapter 9: Leasing
Section 8 HCV Model Administrative Plan Page 9 Instructions 1/1/24 -1
INTRODUCTION
This section is a brief introduction to the key issues discussed in the chapter. No policy decisions are required.
9-I.A. TENANT SCREENING
The owner is responsible for screening and selection of the family to occupy the owner’s unit.
The PHA has no liability or responsibility to the owner or other persons for the family’s behavior or suitability for tenancy. At or before PHA approval of the tenancy, the PHA must inform the owner that screening and selection for tenancy is the owner’s responsibility. Decision Point: What is the PHA’s role in screening voucher families for tenancy and providing information to the owner to facilitate owner screening? (Model plan, p. 9-2)
Things to Consider
• The PHA does have the option to screen applicants for family behavior or suitability for tenancy. Chapter 3 has a full discussion of the PHA’s policies with regard to screening applicant families.
• The PHA does have the responsibility for providing the owner with the family’s current and prior address (as shown in the PHA records) and the name and address (if known to the PHA) of the landlord at the family’s current and prior address. The PHA is permitted, but not required, to offer the owner other information in the PHA’s possession about the family’s tenancy, such as information about prior tenancy, drug trafficking, etc. The Violence against Women Act (VAWA) requires PHAs to notify Section 8 owners of their rights and obligations under the act, specifically their right to request certification from an alleged victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking and their obligation to maintain the confidentiality of any information they obtain, including the identity of the victim.
These are stated in 24 CFR 5.2007 and addressed in Chapter 16, Part IX. • This section reiterates the PHA’s decision on PHA screening and indicates whether the PHA will offer additional information to the owner to facilitate owner screening.
The default language states that the PHA will not screen families for suitability and will not provide additional information to the owner (consistent with Chapter 3). • You may wish to adopt a policy that does provide additional information. If so, you must ensure that such policy is consistent with federal, state, and local laws on disclosure of information. In addition, if changes are made to the policy here, they must also be made to the policy in section 3-III.D.
Item 2.
Instructions for Preparing Chapter 9: Leasing
Section 8 HCV Model Administrative Plan Page 9 Instructions 1/1/24 -2 XOption 1: Use the model plan language shown below. No changes to the model plan are needed.
The PHA will not screen applicants for family behavior or suitability for tenancy.
The PHA will not provide additional screening information to the owner. Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
9-I.B. REQUESTING TENANCY APPROVAL [Form HUD-52517]
This section addresses the basic requirements for submission of a Request for Tenancy Approval (RTA) by the family, as well as the PHA’s responsibilities for processing the RTA. Decision Point: How will the PHA process the Request for Tenancy Approval? (Model plan, p. 9-4)
Things to Consider
• Note that the model plan language offers several basic policy statements relative to RTA processing. The default language requires some form of hard copy of the RTA, with signature, and dwelling lease. Missing information is also required by hard copy, not verbally over the telephone.
• The model plan prohibits submission of or processing of more than one (1) RTA at a time. This policy is intended to eliminate the administrative burden of processing multiple RTAs and inspecting multiple units for each family. • Because the initial leasing process is time-sensitive, contact with the owner and family require procedures which take into account time sensitivity so that the family does not lose the unit because the owner refuses to wait for PHA processing time.
Model policy language calls for the PHA to communicate with the owner and family by more immediate methods—phone, fax, or email—if at all possible. Only when the parties can’t be reached by phone, fax, or email should the PHA resort to regular hard copy mail.
Item 2.
Instructions for Preparing Chapter 9: Leasing
Section 8 HCV Model Administrative Plan Page 9 Instructions 1/1/24 -3 X Option 1: Use the model plan language shown below. No changes to the model plan are needed.
The RTA must be signed by both the family and the owner.
The owner may submit the RTA on behalf of the family.
Completed RTA (including the proposed dwelling lease) must be submitted as hard copies, in-person, by mail, by email, or by fax.
The family may not submit, and the PHA will not process, more than one (1) RTA at a time.
When the family submits the RTA the PHA will review the RTA for completeness.
If the RTA is incomplete (including lack of signature by family, owner, or both), or if the dwelling lease is not submitted with the RTA, the PHA will notify the family and the owner of the deficiencies.
Missing information and/or missing documents will only be accepted as hard copies, in-person, by mail, by email, or by fax. The PHA will not accept missing information over the phone.
When the family submits the RTA and proposed lease, the PHA will also review the terms of the RTA for consistency with the terms of the proposed lease.
If the terms of the RTA are not consistent with the terms of the proposed lease, the PHA will notify the family and the owner of the discrepancies.
Corrections to the terms of the RTA and/or the proposed lease will only be accepted as hard copies, in-person, by mail, by email, or by fax. The PHA will not accept corrections by phone.
Because of the time sensitive nature of the tenancy approval process, the PHA will attempt to communicate with the owner and family by phone, fax, or email. The PHA will use mail when the parties cannot be reached by phone, fax, or email.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 9: Leasing
Section 8 HCV Model Administrative Plan Page 9 Instructions 1/1/24 -4 9-I.C. OWNER PARTICIPATION
The PHA does not formally approve an owner to participate in the HCV program. However, there are a number of criteria where the PHA may deny approval of an assisted tenancy based on past owner behavior, conflict of interest, or other owner-related issues.
Chapter 13 offers a full discussion of owner qualification to participate in the HCV program. No policy decisions are required in this section.
9-I.D. ELIGIBLE UNITS
This section offers a discussion of all of the types of housing that might be eligible to be leased under the HCV program. In some cases, policy decisions will need to be made and are so noted.
In other cases, policy decisions will need to be made and are outlined in other chapters of the plan. In many cases, no policy decisions will be required and the PHA must simply follow HUD rules and requirements.
Ineligible Units [24 CFR 982.352(a)]
This section is a brief summary of the regulatory listing of the types of units which are ineligible to be assisted under the HCV program. No policy decisions are required.
PHA-owned Units [24 CFR 982.352(b)]
Otherwise eligible units that are owned or substantially controlled by the PHA issuing the voucher may also be leased in the HCV program. This section addresses the issue of whether the PHA owns such housing which may be eligible for leasing by voucher-holder families. Decision Point: Does the PHA offer PHA-owned units for lease by eligible voucherholder families? (Model plan, p. 9-5) Things to Consider
• The default policy in the plan is that the PHA does not have such housing available. • Your PHA may, in fact, own housing which is eligible for leasing under the HCV program and which the PHA wishes to make available for leasing. If so, you should adopt alternative language that notes that the PHA does have such housing available.
The family must be informed of this housing at the time of the briefing, and must also be informed, both orally and in writing, that the family has the right to select any eligible unit available for lease and that the family is free to select a PHA-owned unit without any pressure or steering by the PHA.
XOption 1: Use the model plan language shown below. No changes to the model plan are needed.
The PHA does not have any eligible PHA-owned units available for leasing under the voucher program.
Item 2.
Instructions for Preparing Chapter 9: Leasing
Section 8 HCV Model Administrative Plan Page 9 Instructions 1/1/24 -5 Option 2: Delete the model plan language. Insert the following language or alternative language on PHA-owned units.
The PHA has eligible PHA-owned units available for leasing under the voucher program.
The PHA will inform the family of this housing at the time of the briefing.
The PHA will also inform the family, both orally and in writing, that the family has the right to select any eligible unit available for lease and that the family is free to select a PHA-owned unit without any pressure or steering by the PHA.
Option 3: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Special Housing Types [24 CFR 982 Subpart M]
HUD regulations permit, but do not generally require, the PHA to permit families to use voucher assistance in a number of special housing types in accordance with the specific requirements applicable to those programs. This is a PHA decision and specific specialized housing types are not required to be used. However, even where the PHA has opted to disallow use of particular special housing types, the PHA must allow for the use of a special housing type if needed as a reasonable accommodation for a person with disabilities.
Special Housing Types are discussed in Chapter 15. No policy decisions are required in this section.
Duplicative Assistance [24 CFR 982.352(c)]
HCV assistance cannot be approved if approval would result in the family receiving a duplicate subsidy. This section contains a list of subsidies that may not be combined with HCV assistance.
No policy decisions are required.
NSPIRE Standards [Notice PIH 2023-28]
In order to be eligible, the dwelling unit must be in safe and habitable condition. This determination is made using HUD’s National Standards for the Physical Inspection of Real Estate (NSPIRE) and/or equivalent state or local standards approved by HUD. Chapter 8 offers a full discussion of the NSPIRE standards, as well as the process for inspection at initial lease-up.
No policy decisions are required in this section.
Unit Size
In order to be eligible, the dwelling unit must be appropriate for the number of persons in the household. A family must be allowed to lease an otherwise acceptable dwelling unit with fewer bedrooms than the number of bedrooms stated on the voucher issued to the family, provided the unit meets the applicable space requirements. The family must be allowed to lease an otherwise acceptable dwelling unit with more bedrooms than the number of bedrooms stated on the voucher issued to the family. Chapter 5 offers a full discussion of subsidy standards. No policy decisions are required in this section.
Item 2.
Instructions for Preparing Chapter 9: Leasing
Section 8 HCV Model Administrative Plan Page 9 Instructions 1/1/24 -6 Rent Reasonableness [24 CFR 982.305 and 24 CFR 982.507] In order to be eligible, the dwelling unit must have a reasonable rent. Chapter 8 offers a full discussion of rent reasonableness and the rent reasonableness determination process. No policy decisions are required in this section.
Rent Burden [24 CFR 982.508]
Where a family is initially leasing a unit and the gross rent of the unit exceeds the applicable payment standard for the family, the family share cannot exceed 40 percent of the family’s adjusted monthly income. The term “family share” refers to the amount the family pays toward rent and utilities. The gross rent for the unit minus the total housing assistance payment (HAP) for the unit equals the family share. Chapter 6 offers a full discussion of calculation of gross rent, the use of payment standards, and calculation of monthly adjusted income. No policy decisions are required in this section.
Item 2.
Instructions for Preparing Chapter 9: Leasing
Section 8 HCV Model Administrative Plan Page 9 Instructions 1/1/24 -7 9-I.E. LEASE AND TENANCY ADDENDUM
Lease Form and Tenancy Addendum [24 CFR 982.308]
If the owner uses a standard lease form for rental to unassisted tenants in the locality or the premises, the lease must be in such standard form. If the owner does not use a standard lease form for rental to unassisted tenants, the PHA should encourage the owner to obtain a standard lease form from a local realtor or other reliable source. Decision Point: Will the PHA offer a model lease form for owners to use? (Model plan, p. 9-8)
Things to Consider
• You may wish to have a model lease available for the owner to use, if the owner does not have a standard lease.
• In deciding whether to offer a model lease, the PHA should consider that the lease is a contract between the owner and the tenant, and the PHA’s program interests are adequately addressed in the Tenancy Addendum and the HAP contract. • If you offer a model lease, you should have the lease reviewed by an attorney for consistency with current State and local law and re-reviewed periodically to ensure that the model lease remains consistent with current State and local law. • Under no circumstances can the PHA require the use of a PHA model lease form. • The default policy states that the PHA does not offer such a standard lease form.
Option 2 includes language that does provide for a PHA model lease form.
Item 2.
Instructions for Preparing Chapter 9: Leasing
Section 8 HCV Model Administrative Plan Page 9 Instructions 1/1/24 -8 XOption 1: Use the model plan language shown below. No changes to the model plan are needed.
The PHA does not provide a model or standard dwelling lease for owners to use in the HCV program.
Option 2: Delete the model plan language. Insert the following language or alternative language on PHA-owned units.
The PHA will have a model lease available for owners who do not use a standard lease form for their unassisted tenants. The model lease contains the HUD-prescribed tenancy addendum.
Option 3: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Lease Information [24 CFR 982.308(d)]
This section lists specific information that must be contained in an assisted dwelling lease. No policy decisions are required.
Term of Assisted Tenancy
Decision Point: Will the PHA approve leases with an initial term of less than one (1) year? (Model plan, p. 9-9)
Things to Consider
• The initial term is stated in the dwelling lease and generally must be for at least one (1) year. However, the regulations permit the PHA to approve a shorter initial lease under certain circumstances. For example, in a tight rental market where a shorter lease term is the norm, some PHAs could approve an initial lease term of six months or even as short as one month. Where a shorter term is utilized, all of the provisions of the regulations which apply to the initial lease term are still applicable, just applicable to a shorter term.
Item 2.
Instructions for Preparing Chapter 9: Leasing
Section 8 HCV Model Administrative Plan Page 9 Instructions 1/1/24 -9 • Where the PHA elects to approve a shorter initial lease term, the PHA should clearly document the conditions which justify this approval. The PHA could opt to approve a shorter term on a case-by-case basis, only for those owners who request it, while using the regular initial lease term for all other owners. Generally, it is the owner’s responsibility to keep track of the norms in the rental market, as they perceive them. • The model plan language states that the PHA will not authorize an initial lease term of less than one (1) year. You may wish to adopt a policy that explicitly authorizes your PHA to approve an initial lease term of less than one (1) year under certain circumstances. If so, you could adopt the second option below, or adopt some alternative language.
Option 1: Use the model plan language shown below. No changes to the model plan are needed.
The PHA will not approve an initial lease term of less than one (1) year.
XOption 2: Delete the model plan language. Substitute the language below.
The PHA will approve an initial lease term of less than one (1) year only where the PHA determines and can clearly document that: (i) Such shorter term would improve housing opportunities for the tenant; and (ii) Such shorter term is the prevailing local market practice.
Option 3: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 9: Leasing
Section 8 HCV Model Administrative Plan Page 9 Instructions 1/1/24 -10 Security Deposit [24 CFR 982.313 (a) and (b)]
Decision Point: What limits should the PHA place on the amount of security deposit the owner is allowed to collect from the family? (Model plan, p. 9-9) Things to Consider
• The PHA may prohibit security deposits in excess of private market practice, or in excess of amounts charged by the owner to unassisted tenants. However, in order to accomplish this, the PHA must add a prohibition to Part A of the HAP Contract which explicitly prohibits the owner from collecting a security deposit in excess of private market practice or in excess of amounts charged by the owner to unassisted tenants.
• So, if the PHA elects to adopt limits on the amount of security deposit the owner is allowed to collect, the PHA must ensure that every HAP contract includes the modification that explicitly states this prohibition.
• The model plan does not explicitly prohibit an owner from collecting a security deposit in excess of private market practice, or in excess of amounts charged by the owner to unassisted tenants. This policy avoids the necessity to modify all HAP contracts. You may wish to adopt such a prohibition. If so, you could adopt the second option below, or adopt some alternative language. Option 1: Use the model plan language shown below. No changes to the model plan are needed.
The PHA will allow the owner to collect any security deposit amount the owner determines is appropriate. Therefore, no modifications to the HAP contract will be necessary.
Option 2: Delete the model plan language. Substitute the language below.
The PHA prohibits the owner from collecting security deposits in excess of amounts charged by the owner to unassisted tenants. The PHA will add this provision to Part A of the HAP contract, executed between the PHA and the owner.
XOption 3: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
The PHA will allow the owner to collect any security deposit amount the owner determines is appropriate, providing the security deposit requested is in accordance with state and local laws. Therefore, no modifications to the HAP contract will be necessary.
Item 2.
Instructions for Preparing Chapter 9: Leasing
Section 8 HCV Model Administrative Plan Page 9 Instructions 1/1/24 -11 Separate Non-Lease Agreements between Owner and Tenant
Decision Point: Under what conditions will the PHA allow separate, non-lease agreements between the owner and the tenant? (Model plan, p. 9-10) Things to Consider
• Owners may not demand or accept any rent payment from the family in excess of the rent to the owner as approved by the PHA minus the PHA’s housing assistance payments to the owner. Neither may the owner charge the tenant extra amounts for items customarily included in rent in the locality, or provided at no additional cost to unsubsidized tenants in the premises.
• Under some circumstances there may be services, appliances, amenities, etc. that are not customarily provided to any tenants, including unassisted tenants, without charge as part of the dwelling lease. These services, appliances or amenities are not a permanent feature of the unit and any tenant would have the option of not utilizing the service, appliance or amenity and, subsequently, not paying for it. • In these situations, the owner and the tenant could enter into a separate, non-lease agreement for the services, appliances or amenities, should the tenant family wish to obtain them. It’s important to note that these separate agreements are not a part of the assisted dwelling lease. As such, the family may not be held liable under the assisted dwelling lease for any charges pursuant to a separate non-lease agreement between the owner and the family. In addition, non-payment of any charges pursuant to a separate non-lease agreement between the owner and the family cannot be a cause for eviction or termination of tenancy under the terms of the assisted dwelling lease. • While these additional services, appliances or amenities may not be a feature of the assisted dwelling unit per se, their availability could conceivably increase the value of the unit and could be taken into consideration by the PHA when determining the reasonableness of the owner’s rent.
• The model plan language spells out the latitude for owners and tenants to enter into separate, non-lease agreements for these additional services, appliances and amenities, within certain clear restrictions.
Item 2.
Instructions for Preparing Chapter 9: Leasing
Section 8 HCV Model Administrative Plan Page 9 Instructions 1/1/24 -12 XOption 1: Use the model plan language shown below. No changes to the model plan are needed.
The PHA permits owners and families to execute separate, non-lease agreements for services, appliances (other than range and refrigerator) and other items that are not included in the lease.
Any items, appliances, or other services that are customarily provided to unassisted families as part of the dwelling lease with those families, or are permanently installed in the dwelling unit must be included in the dwelling lease for the assisted family. These items, appliances or services cannot be placed under a separate non-lease agreement between the owner and family.
Side payments for additional rent, or for items, appliances or services customarily provided to unassisted families as part of the dwelling lease for those families, are prohibited.
Any items, appliances, or other services that are not customarily provided to unassisted families as part of the dwelling lease with those families, are not permanently installed in the dwelling unit and where the family has the sole option of not utilizing the item, appliance or service, may be included in a separate non-lease agreement between the owner and the family.
The family is not liable and cannot be held responsible under the terms of the assisted dwelling lease for any charges pursuant to a separate non-lease agreement between the owner and the family. Non-payment of any charges pursuant to a separate non-lease agreement between the owner and the family cannot be a cause for eviction or termination of tenancy under the terms of the assisted dwelling lease.
Separate non-lease agreements that involve additional items, appliances or other services may be considered amenities offered by the owner and may be taken into consideration when determining the reasonableness of the rent for the property.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 9: Leasing
Section 8 HCV Model Administrative Plan Page 9 Instructions 1/1/24 -13 PHA Review of Lease
The PHA must review the dwelling lease for compliance with all applicable requirements. Where the PHA finds that the lease is incomplete or incorrect, the assisted tenancy cannot be approved unless these deficiencies are corrected.
Decision Point: Where the PHA finds deficiencies in the dwelling lease proposed to be used by the owner and the tenant, how will the PHA communicate lease deficiencies to the owner and the tenant, and how the PHA will accept revisions to the proposed dwelling lease? (Model plan, p. 9-11)
Things to Consider
• Basic dwelling lease requirements are outlined in the regulations, and require no specific policy decisions. The model plan offers language to address how the PHA will communicate lease deficiencies to the owner and the tenant, and how the PHA will accept revisions to the proposed dwelling lease in order to make it acceptable to use in the HCV program.
XOption 1: Use the model plan language shown below. No changes to the model plan are needed.
If the dwelling lease is incomplete or incorrect, the PHA will notify the family and the owner of the deficiencies. Missing and corrected lease information will only be accepted as hard copies, in-person, by mail, by email, or by fax.
The PHA will not accept missing and corrected information over the phone.
Because the initial leasing process is time-sensitive, the PHA will attempt to communicate with the owner and family by phone, fax, or email. The PHA will use mail when the parties can’t be reached by phone, fax, or email. Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 9: Leasing
Section 8 HCV Model Administrative Plan Page 9 Instructions 1/1/24 -14 Decision Point: Will the PHA review the proposed dwelling lease for consistency with State and local law and, if so, how will this determination be made and communicated to the owner? (Model plan, p. 9-11)
Things to Consider
• The regulations permit, but do not require, the PHA to review the lease to determine if the lease complies with State and local law. The regulations also permit the PHA to disapprove the tenancy if the PHA determines that the lease does not comply with State or local law.
• Because the regulations do not require the PHA to make this determination, the PHA will need to make a decision on whether it will review the dwelling lease for compliance with State and local law and whether it will take any action relative to State and local law.
• You should consider the capacity of your staff to make such determinations. Staff who review the owner’s lease for compliance with State and local law must have an accurate and comprehensive knowledge of relevant State/local tenant-landlord laws, including any revisions to law that are made from time-to-time. Most PHA staff do not routinely have this knowledge base.
• In addition, by taking on this responsibility, the PHA may also be taking on potential liability if the dwelling lease is approved by the PHA and is not consistent with State and local law.
• The model plan language states that the PHA will not review the lease for compliance with State and local law. If your PHA wishes to review the dwelling lease for such compliance, you will need to develop clear policy and procedure on this issue addressing how this will be accomplished, who in the PHA will have the authority for making these determinations, how it will be communicated to the owner, what disclaimers the PHA may provide with the determination, among other considerations.
XOption 1: Use the model plan language shown below. No changes to the model plan are needed.
The PHA will not review the owner’s lease for compliance with state/local law.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 9: Leasing
Section 8 HCV Model Administrative Plan Page 9 Instructions 1/1/24 -15 9-I.F. TENANCY APPROVAL [24 CFR 982.305]
After receiving the family's Request for Tenancy Approval, with proposed dwelling lease, the PHA must ensure that all required actions and determinations have been completed and must promptly notify the family and owner whether the assisted tenancy is approved. Decision Point: What policy will the PHA have for communicating the disapproval of the assisted tenancy, and for addressing any deficiencies in order to approve the tenancy? (Model plan, p. 9-12)
Things to Consider
• The PHA will need to establish policy on communicating this determination to the family and the owner. Where the PHA is disapproving the tenancy, the PHA will need to give the owner and family the opportunity to address the reasons for the disapproval, if such reasons are correctable. Where the reasons for disapproval are not correctable, the PHA will need to inform the family and the owner of the next steps in the process.
• The PHA may need to handle situations differently, depending upon the circumstances. In the model plan language, where a unit is not approvable due to rent, the PHA will attempt to negotiate a reduced rent with the owner. If a new rent is approved, the tenancy may be approved. If not, the family must continue to search within the timeframe of the issued voucher.
• Another issue that should be addressed in procedure, if not policy, is the issue of consistency between leasing documents for the unit. The information found on the RTA, the dwelling lease, the HAP contract, the inspection form, the form HUD50058, etc., should agree and be consistent with each other. The PHA must ensure that the owner, the family and the PHA all agree on the terms of the assisted tenancy and that this consistency is reflected on the governing program documents.
Item 2.
Instructions for Preparing Chapter 9: Leasing
Section 8 HCV Model Administrative Plan Page 9 Instructions 1/1/24 -16 XOption 1: Use the model plan language shown below. No changes to the model plan are needed.
The PHA will complete its determination within 10 business days of receiving all required information.
If the terms of the RTA/proposed lease are changed for any reason, including but not limited to negotiation with the PHA, the PHA will obtain corrected copies of the RTA and proposed lease, signed by the family and the owner.
Corrections to the RTA/proposed lease will only be accepted as hard copies, in-person, by mail, by email, or by fax. The PHA will not accept corrections over the phone.
If the PHA determines that the tenancy cannot be approved for any reason, the owner and the family will be notified in writing and given the opportunity to address any reasons for disapproval. The PHA will instruct the owner and family of the steps that are necessary to obtain approval of the tenancy.
Where the tenancy is not approvable because the unit is not approvable, the family must continue to search for eligible housing within the timeframe of the issued voucher.
If the tenancy is not approvable due to rent affordability or rent reasonableness, the PHA will attempt to negotiate the rent with the owner. If a new, approvable rent is negotiated, the tenancy will be approved. If the owner is not willing to negotiate an approvable rent, the family must continue to search for eligible housing within the timeframe of the issued voucher.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 9: Leasing
Section 8 HCV Model Administrative Plan Page 9 Instructions 1/1/24 -17 9-I.G. HAP CONTRACT EXECUTION [24 CFR 982.305]
The HAP contract is a written agreement between the PHA and the owner of the dwelling unit.
Under the HAP contract, the PHA agrees to make housing assistance payments to the owner on behalf of the family, and the owner agrees to comply with all program requirements as stated in the HAP contract.
Decision Point: How will the PHA handle HAP contract execution? (Model plan, p. 9-13)
Things to Consider
• When the PHA has determined that the tenancy may be approved, the owner and the PHA execute the HAP contract. There are some strict requirements on the timeframes for execution and effective date of the HAP contract.
• Few policy decisions need to be made here. The model plan language simply spells out some basic contract execution responsibilities that the PHA will assume. The HCV Guidebook requires the PHA to request a copy of IRS form W-9 from the owner [HCV GB p. 11-19]. The model plan language requires this form to be submitted by the owner prior to HAP contract execution. • The PHA will take the responsibility to ensure that all parties receive copies of all relevant documents, and that copies of the documents are retained. • In addition, the model plan calls for an owner “briefing” for any owner that has not previously participated in the HCV program. This briefing is simply a meeting between the PHA and the owner in which the PHA explains the terms of the tenancy addendum and the HAP contract. The PHA could waive this meeting on a case-bycase basis. • If you choose to delete the requirement for an owner briefing (for owners that have not previously participated in the HCV program) in this section, you will also need to edit the policy in Section 14-I.A.
• VAWA requires that the PHA provide the form HUD-5380 as well as the VAWA Notice of Occupancy Rights (form HUD-5382) at the time an individual is provided assistance or admission. Notice PIH 2017-08 clarifies that, for the HCV program, “admission to the program” occurs when the individual begins receiving assistance (HAP contract execution), not the date at which the individual is first selected for assistance (voucher issuance). While the model policy has the PHA provide required notice as part of the briefing packet, in order to meet the requirements of VAWA, the PHA must provide the required notices at the time of HAP contract execution.
Item 2.
Instructions for Preparing Chapter 9: Leasing
Section 8 HCV Model Administrative Plan Page 9 Instructions 1/1/24 -18 XOption 1: Use the model plan language shown below. No changes to the model plan are needed.
Owners who have not previously participated in the HCV program must attend a meeting with the PHA in which the terms of the Tenancy Addendum and the HAP contract will be explained. The PHA may waive this requirement on a case-by-case basis, if it determines that the owner is sufficiently familiar with the requirements and responsibilities under the HCV program.
The owner and the assisted family will execute the dwelling lease and the owner must provide a copy to the PHA. The PHA will ensure that both the owner and the assisted family receive copies of the dwelling lease.
The owner and the PHA will execute the HAP contract. The PHA will not execute the HAP contract until the owner has submitted IRS form W-9. The PHA will ensure that the owner receives a copy of the executed HAP contract.
As required under VAWA, once the HAP contract and lease have been executed and the family has been admitted to the program, the PHA will notify families of their rights under VAWA by providing all families with a copy of the domestic violence certification form (HUD-5382) as well as the VAWA notice of occupancy rights (form HUD-5380).
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 9: Leasing
Section 8 HCV Model Administrative Plan Page 9 Instructions 1/1/24 -19 9-I.H. CHANGES IN LEASE OR RENT [24 CFR 982.308]
If the tenant and the owner agree to any changes in the lease, such changes must be in writing, and the owner must immediately give the PHA a copy of such changes. Decision Point: When will rent increases go into effect when the owner has provided the PHA with less than 60 days advance notification prior to the proposed effective date of the rent change? (Model plan, p. 9-14)
Things to Consider
• Generally, PHA approval of tenancy and subsequent execution of a new HAP contract are not required for changes in the lease. However, there are circumstances under which the execution of a new lease and HAP contract are required. • Where the owner is changing the amount of the rent to owner, the owner must notify the PHA at least 60 days before any such changes go into effect. Such changes shall be subject to rent reasonableness requirements. The owner may wish to propose a rent increase that takes effect less than 60 days after a notification to the PHA. However, this is prohibited by HUD regulations. The model plan language addresses this by stating that increases will go into effect on the first of the month following the 60 day period after the owner notifies the PHA of the rent change or on the date specified by the owner, whichever is later.
• If changes are made to the policy here, changes will also need to be made to the policy in Section 8-III.B.
XOption 1: Use the model plan language shown below. No changes to the model plan are needed.
Where the owner is requesting a rent increase, the PHA will determine whether the requested increase is reasonable within 10 business days of receiving the request from the owner. The owner will be notified of the determination in writing.
Rent increases will go into effect on the first of the month following the 60 day period after the owner notifies the PHA of the rent change or on the date specified by the owner, whichever is later.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 9: Leasing
Section 8 HCV Model Administrative Plan Page 9 Instructions 1/1/24 -20
FINALIZING THE DOCUMENT
Take a final look at the changes you have made in this chapter of the administrative plan.
Have you:
(1) Added or subtracted any exhibits at the end of the chapter? Yes No. (2) Added, subtracted or reordered any major sections (at the A, B, or C level?) Yes No If you answered yes to either of these questions, you must adjust the chapter to match your changes.
Decision Point: Are any changes required to this chapter? No. No changes to the model plan are needed.
Yes. Edits only. Edit and insert PHA language as appropriate.
Yes. PHA changed the organization of the chapter. Adjust the chapter to reflect your changes and review the rest of the document to make sure that any references to section numbers are correct.
Decision Point: Are changes required in other chapters as a result of changes to this chapter?
Check the “Things to Consider” under each decision point to identify if changes to the model plan policy will require changes to policies in other chapters of the plan.
No. Changes to other chapters are not necessary.
Yes. Changes to the following chapters are also required:
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-1
INTRODUCTION
This chapter describes HUD regulations and PHA policies related to moves in two sections:
Part I: Moving with Continued Assistance. This part covers the general rules that apply to all moves by a family assisted under the PHA’s HCV program, whether the family moves to another unit within the PHA’s jurisdiction or to a unit outside the PHA’s jurisdiction under portability.
Part II: Portability. This part covers the special rules that apply to moves by a family under portability, whether the family moves out of or into the PHA’s jurisdiction. This part also covers the special responsibilities that the PHA has under portability regulations and procedures.
The primary regulations governing moves are found at 24 CFR 982.354. The primary regulations governing portability are found at 24 CFR 982.353 and 982.355. Additional HUD requirements on portability are found in Notice PIH 2012-42.
PART I: MOVING WITH CONTINUED ASSISTANCE
10-I.A. ALLOWABLE MOVES
This section sets forth the six regulatory conditions that HUD has established for permissible moves with continued assistance in the housing choice voucher (HCV) program. These conditions apply to all moves by participant families, whether they occur within a PHA’s jurisdiction or outside it under portability.
Decision Point: If a family and owner mutually agree to terminate the lease for the family’s unit, will the PHA require the family to provide a copy of the termination agreement? (Model plan, p. 10-1)
Things to Consider
• HUD regulations permit a family receiving assistance under the HCV program to move with continued assistance if the family and the owner of the family’s unit mutually agree to terminate the lease for the unit. Since the regulations do not specifically require the family to provide the PHA with a copy of the agreement to terminate, the model plan requires the family to do so. This is consistent with the requirement that families provide the PHA with a copy of any owner eviction notice. Option 1: Use the model plan language shown below. No changes to the model plan are needed.
If the family and the owner mutually agree to terminate the lease for the family’s unit, the family must give the PHA a copy of the termination agreement.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-2 Decision Point: If a family claims that it must move to protect the health or safety of a family member who is or has been a victim of domestic violence, dating violence, sexual assault, or stalking, will the PHA request documentation of the abuse? (Model plan, p. 10-2)
Things to Consider
• When a family requests permission to move with continued assistance based on a family member’s status as a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, a PHA has the authority, but is not required, to request documentation of the abuse [24 CFR 5.2007, Notice PIH 2012-42]. • HUD requirements and PHA policies on documentation of domestic violence, dating violence, sexual assault, stalking, or human trafficking are presented in section 16- IX.D of the model plan. The model policy here simply states that the PHA will request documentation in accordance with those requirements and policies. • VAWA requires the PHA to adopt an emergency transfer plan for victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking. For HCV participants, emergency transfers may be accomplished by promptly issuing a voucher to the family.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-3 Option 1: Use the model plan language shown below. No changes to the model plan are needed.
If a family requests permission to move with continued assistance or for an external transfer to another covered housing program operated by the PHA based on a claim that the move is necessary to protect the health or safety of a family member who is or has been the victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the PHA will request that the resident request the emergency transfer using form HUD-5383, and the PHA will request documentation in accordance with section 16-IX.D of this plan.
The PHA reserves the right to waive the documentation requirement if it determines that a statement or other corroborating evidence from the family or family member will suffice. In such cases the PHA will document the waiver in the family’s file.
The PHA may choose to provide a voucher to facilitate an emergency transfer of the victim without first terminating the assistance of the perpetrator.
Before granting an emergency transfer, the PHA will ensure the victim is eligible to receive continued assistance based on the citizenship or immigration status of the victim.
The PHA has adopted an emergency transfer plan, which is included as Exhibit 16-3 to this plan and discusses external transfers to other covered housing programs.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-4 10-I.B. RESTRICTIONS ON MOVES
Denial of Moves
Insufficient Funding
Decision Point: Under what conditions will the PHA deny a family permission to move on the grounds that the PHA lacks sufficient funding for continued assistance? (Model plan, p. 10-3)
Things to Consider
• HUD permits a PHA to deny a family permission to move if the PHA does not have sufficient funding for continued assistance [24 CFR 982.354(e)(1)]. HUD also permits a PHA to terminate a HAP contract for the same reason. In the regulation governing termination of a HAP contract, HUD states that the determination of insufficient funding must be made “in accordance with HUD requirements” [24 CFR 982.454]. Although HUD has not issued any binding guidance on this subject, HUD has shared its methodology for determining insufficient funding with industry groups.
This methodology is the basis for the policy contained in Chapter 16 that is referenced in this policy.
• In Notice PIH 2016-09 HUD significantly restricts the ability of PHAs to deny permission to move both within and outside the PHA’s jurisdiction under portability due to insufficient funding. The notice states that a PHA may deny moves to a higher cost unit or area due to insufficient funding only if all of the following apply:
- The move is to a higher cost unit (for moves within the PHA’s jurisdiction) or a higher cost area (for portability moves).
- The receiving PHA is not absorbing the voucher (for portability moves). - The PHA would be unable to avoid termination of current participants during the calendar year in order to remain within its budgetary allocation for HAP (including any available HAP reserves).
• A higher cost unit for moves within the jurisdiction is defined as one in which a higher subsidy amount would be paid due to an increase in the gross rent. The PHA may not deny a move within its jurisdiction (even to a higher cost unit) if the family must move from their current unit.
• A higher cost area under portability is defined as an area in which the PHA would have to pay a higher subsidy due to another PHA’s higher payment standard or subsidy standards. The PHA may deny a move to a higher cost area even if the family must move from their current unit if the receiving PHA is not absorbing the family’s voucher.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-5 • For both moves within the PHA’s jurisdiction and under portability, if the PHA approves a request to move and then subsequently experiences a funding shortfall, the PHA may only rescind the voucher if the family would be allowed to remain in the current unit. If the family cannot remain in the unit, the PHA may not rescind the voucher and the family must be allowed to lease a new unit. • If the family must move from their unit (e.g. the unit failed inspection), requirements differ depending on whether the family is requesting to move within the jurisdiction or outside under portability:
- The PHA must not deny the move due to insufficient funding if the family is requesting to move within the PHA’s jurisdiction.
- The PHA may deny the move due to insufficient funding if the family is moving to a higher cost area under portability.
• The default policy states that the PHA will allow families to move in this situation if the move is within the PHA’s jurisdiction but will prohibit moves under portability to higher cost areas in this situation. If the PHA wishes to allow moves under portability in this situation as well, the model language must be amended. • When a PHA determines that it is necessary to deny a move based on insufficient funding, it must provide written notice to the local HUD office supporting and documenting the lack of funds within 10 business days of its determination to deny the move. Notice PIH 2016-09 lists the exact documentation that this notification must include. In addition, to help with this, HUD has made a sample spreadsheet available at www.hud.gov/offices/pih/programs/hcv. The PHA may not include projected costs for vouchers that have been issued to families from the waiting list but not yet leased as part of this analysis.
• Before denying a move under portability to a higher cost area based on insufficient funding, an initial PHA must contact the receiving PHA to determine if the receiving PHA will absorb the family. In addition, the initial PHA must take into consideration any changes in the family’s income or composition that would result in a decreased subsidy amount. [Notice PIH 2016-09]
• Be aware that penalties for improper denials due to insufficient funding can include an administrative fee reduction of up to 10 percent for the two quarters following the quarter that HUD identified improper denials. They can also include additional remedial actions or sanctions.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-6 • For the determination of insufficient funding for moves to higher cost units or areas, the model plan adopts the methodology described in Chapter 16. Option 1: Use the model plan language shown below. No changes to the model plan are needed.
The PHA will deny a family permission to move on grounds that the PHA does not have sufficient funding for continued assistance if (a) the move is initiated by the family, not the owner or the PHA; (b) the PHA can demonstrate that the move will, in fact, result in higher subsidy costs (c) the PHA can demonstrate, in accordance with the policies in Part VIII of Chapter 16, that it does not have sufficient funding in its annual budget to accommodate the higher subsidy costs; and (d) for portability moves, the receiving PHA is not absorbing the voucher.
If the PHA does not have sufficient funding for continued assistance, but the family must move from their unit (e.g., the unit failed inspection), the family may move to a higher cost unit if the move is within the PHA’s jurisdiction. The PHA, however, will not allow the family to move under portability in this situation if the family wishes to move to a higher cost area.
For both moves within the PHA’s jurisdiction and outside under portability, the PHA will not deny a move due to insufficient funding if the PHA previously approved the move and subsequently experienced a funding shortfall if the family cannot remain in their current unit. The PHA will rescind the voucher in this situation if the family will be allowed to remain in their current unit. Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-7 Decision Point: How will the PHA address families who have requested a move and were denied due to lack of funding once the PHA has determined that funds are available for those moves? (Model plan, p. 10-3)
Things to Consider
• If the PHA denies a family’s request to move, it may not subsequently admit any additional families to its voucher program until the PHA has determined that sufficient funding exists to approve the move and has notified the family that the family may now exercise its move to the higher cost area. • Notice PIH 2016-09 requires that PHAs establish policies regarding how moves denied due to insufficient funding will be addressed once the funds become available.
These policies must include how the PHA will notify families with open requests when the funds become available and how long the family’s request will be open for consideration. The default policy provides for keeping such requests open indefinitely.
• In addition, the default policy establishes a list for families whose moves have been denied due to insufficient funding. This list takes precedence over the waiting list and uses the same notification procedures as those used for the waiting list. Option 1: Use the model plan language shown below. No changes to the model plan are needed.
The PHA will create a list of families whose moves have been denied due to insufficient funding. The PHA will keep the family’s request for portability open indefinitely, and when funds become available, the families on this list will take precedence over families on the waiting list. The PHA will use the same procedures for notifying families with open requests to move when funds become available as it uses for notifying families on the waiting list (see section 4-III.D). Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-8 Decision Point: How will the PHA inform the family of its policy regarding moves denied due to insufficient funding? (Model plan, p. 10-3) Things to Consider
• As one of the policy requirements in Notice PIH 2016-09, PHAs must also state how families will be notified of the PHA’s policy regarding moves denied due to lack of funding.
• The notice suggests that this information could be contained in the PHA’s briefing packets or sent as a letter to the participant at the time the move is denied. The policy opts for sending a letter to the participant at the time the move is denied. This ensures that the information is provided when it is needed.
Option 1: Use the model plan language shown below. No changes to the model plan are needed.
The PHA will inform the family of its policy regarding moves denied due to insufficient funding in a letter to the family at the time the move is denied. Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-9 Grounds for Denial or Termination of Assistance
Decision Point: Under what conditions, if any, will the PHA deny a family permission to move if the PHA has grounds for denying or terminating the family’s assistance? (Model plan, p. 10-4)
Things to Consider
• HUD gives the PHA the discretion to deny a family permission to move if the family’s action or failure to act constitutes grounds for terminating assistance [24 CFR 982.314(e)(2)]. Basically, this discretion allows the PHA to hold a family accountable for its action or failure to act without taking the more drastic step of denying or terminating the family’s assistance.
• The model plan language chooses not to exercise this discretion on a routine basis, but instead to deny or terminate assistance in accordance with the regulations and policies set forth in Chapters 3 and 12, respectively, of this plan. Option 2 allows the PHA to choose the specific conditions under which it would consider denying a move as an alternative to denying or terminating assistance. Option 1: Use the model plan language shown below. No changes to the model plan are needed.
If the PHA has grounds for denying or terminating a family’s assistance, the PHA will act on those grounds in accordance with the regulations and policies set forth in Chapters 3 and 12, respectively. In general, it will not deny a family permission to move for this reason; however, it retains the discretion to do so under special circumstances.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-10 Option 2: Delete the model plan language. Use the criteria below to select the policy options for denying a family permission to move if the family’s action or failure to act would be the same circumstances under which the PHA would deny assistance for an applicant or terminate assistance for a participant.
In determining whether to deny permission to move, the PHA will consider the criteria under federal regulations at 24 CFR 982.552(c)(1) and applicable alternative requirements. These include:
The family has violated any family obligations under the program.
Any member of the family has been evicted from federally assisted housing in the last five years.
A PHA has ever terminated assistance under the program for any member of the family.
Any member of the family has committed fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program (see also 24 CFR 982.553(a)(1)).
The family 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 U.S. Housing Act.
The family has not reimbursed any PHA for amounts paid to an owner under a HAP contract for rent, damages to the unit, or other amounts owed by the family under the lease.
The family breaches an agreement with the PHA to pay amounts owed to a PHA or amounts paid to an owner by a PHA. (The PHA, at its discretion, may offer a family the opportunity to enter an agreement to pay amounts owed to a PHA or amounts paid to an owner by a PHA. The PHA may prescribe the terms of the agreement.)
The family has engaged in or threatened abusive or violent behavior toward PHA personnel.
A welfare-to-work (WTW) family fails, willfully and persistently, to fulfill its obligations under the welfare-to-work voucher program.
The family has been engaged in criminal activity or alcohol abuse as described in 24 CFR 982.553.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-11 The PHA will also consider the same extenuating circumstances as would be considered when determining whether to deny or terminate assistance under 24 CFR 982.552(c)(2). These include:
The PHA may consider all relevant circumstances such as the seriousness of the case, the extent of participation or culpability of individual family members, mitigating circumstances related to the disability of a family member, and the effects of denial or termination of assistance on other family members who were not involved in the action or failure.
The PHA may impose, as a condition of continued assistance for other family members, a requirement that other family members who participated in or were culpable for the action or failure will not reside in the unit. The PHA may permit the other members of a participant family to continue receiving assistance.
In determining whether to deny a move for illegal use of drugs or alcohol abuse by a household member who is no longer engaged in such behavior, the PHA will consider whether such household member is participating in or has successfully completed a supervised drug or alcohol rehabilitation program or has otherwise been rehabilitated successfully (42 U.S.C. 13661). For this purpose, the PHA may require the applicant or tenant to submit evidence of the household member’s current participation in, or successful completion of, a supervised drug or alcohol rehabilitation program or evidence of otherwise having been rehabilitated successfully.
If the family includes a person with disabilities, the PHA’s decision concerning such action is subject to consideration of reasonable accommodation in accordance with 24 CFR 8.
The PHA’s admission and eviction actions must be consistent with fair housing and equal opportunity provisions of 24 CFR 5.105. Option 3: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-12 Restrictions on Elective Moves [24 CFR 982.354(c)]
Decision Point: Under what circumstances would the PHA wish to deny a familyinitiated move during the initial lease term or more than once in any 12-month period? (Model plan, p. 10-4)
Things to Consider
• The PHA may adopt policies prohibiting family-initiated moves during the initial lease term or prohibiting a family from moving more than once during any 12-month period unless a move is necessary to protect the health or safety of a family member who is or has been a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking. These policies may apply to moves within the PHA’s jurisdiction and moves outside it under portability. The model plan language adopts these permissive policies. However, the plan also allows for situations in which the PHA might need or wish to make exceptions.
• When a family has a legitimate need to move, the plan does not require owner approval to terminate the tenancy. The PHA should carefully consider the implications of approving a family move during the initial term if the owner does not agree to the move. In such a situation, the family could be in violation of the dwelling lease. In addition, the model plan language does not allow for an exception during the initial lease term simply because the family wants to move and the owner agrees.
And, of course, the owner could not terminate tenancy during the initial lease term for “other good cause.” Essentially, the model plan language provides the latitude to permit exceptions for legitimate family needs but not simply for the convenience of either or both parties.
• In addition, the PHA may not establish a policy permitting moves only at reexamination [Notice PIH 2016-09].
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-13 Option 1: Use the model plan language shown below. No changes to the model plan are needed.
The PHA will deny a family permission to make an elective move during the family’s initial lease term. This policy applies to moves within the PHA’s jurisdiction or outside it under portability.
The PHA will also deny a family permission to make more than one elective move during any 12-month period. This policy applies to all assisted families residing in the PHA’s jurisdiction.
The PHA will consider exceptions to this policy for the following reasons: to protect the health or safety of a family member (e.g., lead-based paint hazards, domestic violence, witness protection programs), to accommodate a change in family circumstances (e.g., new employment, school attendance in a distant area), or to address an emergency situation over which a family has no control.
In addition, the PHA will allow exceptions to these policies for purposes of reasonable accommodation of a family member who is a person with disabilities (see Chapter 2).
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-14 10-I.C. MOVING PROCESS
Notification
This section describes notification requirements when a family wishes to move to a new unit, inside or outside the PHA’s jurisdiction. No policy decisions are required.
Approval
Decision Point: How and when will the PHA approve a family request to move to a new unit with continued assistance? (Model plan, p. 10-5) Things to Consider
• The policy in the model plan imposes a limit on the time the PHA is allowed to determine whether it will approve a family’s request to move. It also requires the PHA to notify the family in writing of its determination. Since these are not regulatory requirements, the PHA may prefer to adopt a different policy in this area or no policy at all. At a minimum, however, the PHA should have procedures in place that clarify when and how a family request to move with continued assistance will be approved.
Option 1: Use the model plan language shown below. No changes to the model plan are needed.
Upon receipt of a family’s notification that it wishes to move, the PHA will determine whether the move is approvable in accordance with the regulations and policies set forth in sections 10-I.A and 10-I.B. The PHA will notify the family in writing of its determination within 10 business days following receipt of the family’s notification.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-15 Reexamination of Family Income and Composition
Decision Point: Will the PHA conduct a full reexamination when a participant family requests to move to a new unit? (Model plan, p. 10-5) Things to Consider
• The PHA must decide whether it will routinely conduct a new reexamination when a family moves to a new unit. The model plan language takes into consideration two factors:
- The PHA must be able to ensure that the new unit meets the affordability standard. The regulations require that the affordability determination be based on income verification information “received by the PHA no earlier than 60 days before the PHA issues a voucher to the family” [24 CFR 982.508]. Because of this constraint, the model plan language assumes that the PHA will routinely conduct a full reexamination when a family requests to move. If the PHA elects a different policy, that policy must be consistent with the one on voucher issuance that follows.
- The PHA has less control over moves into and out of its jurisdiction under portability than it does over moves within its jurisdiction. Therefore, the model plan elects to establish separate policies regarding reexaminations for portability moves. Those policies are located in sections 10-II.B and 10-II.C of Chapter 10. • The decision the PHA makes here should be consistent with the general decisions on reexaminations that the PHA makes in Chapter 11.
Option 1: Use the model plan language shown below. No changes to the model plan are needed.
For families approved to move to a new unit within the PHA’s jurisdiction, the PHA will perform a new annual reexamination in accordance with the policies set forth in Chapter 11 of this plan.
For families moving into or families approved to move out of the PHA’s jurisdiction under portability, the PHA will follow the policies set forth in Part II of this chapter.
Option 2: Delete the model plan language and substitute the language below.
For families approved to move to a new unit within the PHA’s jurisdiction, the PHA will not perform a new annual reexamination.
For families moving into or families approved to move out of the PHA’s jurisdiction under portability, the PHA will follow the policies set forth in Part II of this chapter.
Option 3: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-16 Voucher Issuance and Briefing
Decision Point: When and under what terms will the PHA issue a voucher to a participant family that wishes to move? Will the PHA require that the family attend a briefing? What will the PHA do if the family fails to lease up in the time allotted? (Model plan, p. 10-5)
Things to Consider
• When a family moves to a new unit, the PHA has decisions to make about the timing of voucher issuance as well as about voucher term and extensions. It must also decide whether or not a family must be briefed prior to voucher issuance and what happens if the family fails to locate a new unit within the time allotted. Acknowledging the added complexities associated with moves into and out of a PHA’s jurisdiction under portability, the model plan deals with these moves separately in Part II of this chapter. • The model plan ties voucher issuance for a family moving to a new unit within its jurisdiction to the PHA’s written approval to move.
• The model plan assumes that a family moving within the PHA’s jurisdiction is sufficiently familiar with the lease-up process that it does not require a briefing.
However, the PHA may want to offer a briefing as an option. In other respects, the model plan language is consistent with policies established in Chapter 5. Option 1: Use the model plan language shown below. No changes to the model plan are needed.
For families approved to move to a new unit within the PHA’s jurisdiction, the PHA will issue a new voucher within 10 business days of the PHA’s written approval to move. No briefing is required for these families. The PHA will follow the policies set forth in Chapter 5 on voucher term, extension, and expiration. If a family does not locate a new unit within the term of the voucher and any extensions, the family may remain in its current unit with continued voucher assistance if the owner agrees and the PHA approves.
Otherwise, the family will lose its assistance.
For families moving into or families approved to move out of the PHA’s jurisdiction under portability, the PHA will follow the policies set forth in Part II of this chapter.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Housing Assistance Payments [24 CFR 982.311(d)]
When a family moves out of an assisted unit, the PHA may not make any housing assistance payment to the owner for any month after the month the family moves out. No policy decisions are required.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-17 Zero HAP Families Who Wish to Move
Decision Point: Will the PHA enter into a HAP contract for a unit in which no subsidy will be paid on behalf of a family who is zero HAP? (Model plan, p. 10-6) Things to Consider
• If a family becomes zero HAP as a result of a reexamination, the family may continue as program participants for six months from the date of the reexamination effective date. During this period, the HAP contract remains in effect. If family circumstances change during this period, the PHA conducts an interim and reinstates assistance.
After 180 calendar days since the last housing assistance payment to the owner, however, the HAP contract automatically terminates.
• A participant who is not receiving any subsidy, but whose HAP contract is still in force, may request a voucher to move to a different unit. The PHA must issue a voucher to move unless it has grounds to deny assistance under the program regulations.
• However, once the family finds a new unit, if the PHA determines no subsidy would be paid at the new unit, the PHA may refuse to enter into a HAP contract on behalf of the family.
• Since the purpose of the program is to assist low-income families obtain decent housing by paying a rent subsidy, if no subsidy is needed, Option 1 states that the PHA will not enter into a HAP contract. This policy is consistent with guidance received in a HUD letter dated December 3, 1997.
Option 1: Use the model plan language shown below. No changes to the model plan are needed.
If a zero HAP family requests to move to a new unit, the family may request a voucher to move. However, if no subsidy will be paid at the unit to which the family requests to move, the PHA will not enter into a HAP contract on behalf of the family for the new unit.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-18 Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-19 PART II: PORTABILITY
10-II.A. OVERVIEW
This brief section provides an overview of portability and explains that, under the portability procedures, the PHA sometimes wears the hat of initial PHA and sometimes wears the hat of receiving PHA. These two distinct roles require different policies and therefore are dealt with separately in two subsections.
No policy decisions are required.
10-II.B. INITIAL PHA ROLE
The provisions in this section apply when the PHA is acting as the initial PHA for a family moving out of the PHA’s jurisdiction into the jurisdiction of another PHA (the receiving PHA) under the portability procedures. The portable family may be a participant family that has been receiving voucher assistance in the PHA’s jurisdiction, or it may be a family that has been issued a voucher but has not yet been admitted to the program. The rules for participant families and applicant families differ in some ways; therefore, the policies adopted for these families in some cases need to be different.
Allowable Moves under Portability
Whereas the general rules on moves apply primarily to participant families, the rules on moves out of a PHA’s jurisdiction under portability apply both to participant families and applicant families that have been issued a voucher. The income eligibility rules for applicant and participant families differ.
Applicant Families
Decision Point: Under what conditions will the PHA deny portability to a resident applicant family? (Model plan, p. 10-8)
Things to Consider
• A family that has not yet leased a unit in the initial PHA’s jurisdiction under the voucher program generally has a right to move under the portability procedures if the head of household or spouse/cohead was a resident of the initial PHA’s jurisdiction at the time the initial application for assistance was submitted. However, the initial PHA has the authority to deny the family this right if the PHA determines that it does not have sufficient funding or that it has grounds for denying assistance to the family.
The model plan follows the same criteria established in section 10-I.B for making these determinations.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-20 Option 1: Use the model plan language shown below. No changes to the model plan are needed.
In determining whether or not to deny an applicant family permission to move under portability because the PHA lacks sufficient funding or has grounds for denying assistance to the family, the initial PHA will follow the policies established in section 10-I.B of this chapter. If the PHA does deny the move due to insufficient funding, the PHA will notify HUD in writing within 10 business days of the PHA’s determination to deny the move. Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Decision Point: Will the PHA allow nonresident applicant families who have never lived in or leased a unit in the PHA’s jurisdiction to accept a PHA-issued voucher and immediately use that voucher to request portability assistance in another jurisdiction? (Model plan, p. 10-8)
Things to Consider
• The HUD regulations on portability make a distinction between resident and nonresident applicant families. A nonresident family is one whose head or spouse/cohead did not have a domicile (legal residence) in the initial PHA’s jurisdiction when the family first submitted an application for admission to the initial PHA’s voucher program [24 CFR 982.353(c)(1)]. Unlike resident families, nonresident families have no right to portability for the first 12 months after they are admitted to the program; however, the initial PHA has the discretion to allow portability during this period [24 CFR 982.353(c)(2)].
• The main reason that a PHA might wish to not allow nonresident applicant families to move during their first year in the program is to discourage “waiting list shopping.” In other words, an applicant who is a resident in another jurisdiction and has no intention of leasing in the initial PHA’s jurisdiction might apply for a voucher with the initial PHA because the initial PHA has a short waiting list. In this way, the applicant receives a voucher relatively quickly and is able to lease in a different location with no real connection to the initial PHA or the initial PHA’s community. • A PHA with a relatively high leasing rate may be concerned about the extent to which the voucher assistance awarded to the PHA is actually used to assist families who live in the PHA’s community. Such a PHA may not wish to allow portability for nonresident applicant families. On the other hand, a PHA with a relatively low leasing rate, a small or nonexistent waiting list, and low demand may wish to allow portability for nonresident families if doing so increases the rate of voucher utilization for the PHA.
• The model plan language does not allow portability for nonresident families during the first 12 months after admission except for purposes of reasonable accommodation or reasons related to domestic violence, dating violence, stalking, or human trafficking.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-21 Option 1: Use the model plan language shown below. No changes to the model plan are needed.
If neither the head of household nor the spouse/cohead of an applicant family had a domicile (legal residence) in the initial PHA’s jurisdiction at the time that the family’s initial application for assistance was submitted, the family must lease a unit within the initial PHA’s jurisdiction for at least 12 months before requesting portability.
The PHA will consider exceptions to this policy for purposes of reasonable accommodation (see Chapter 2) or reasons related to domestic violence, dating violence, sexual assault, stalking, or human trafficking. Option 2: Delete the model plan language and substitute the language below.
If neither the head of household nor the spouse/cohead of an applicant family had a domicile (legal residence) in the initial PHA’s jurisdiction at the time the family’s application for assistance was submitted, the family will be allowed to move to an area outside the PHA’s jurisdiction under portability [24 CFR 982.353(c)].
Option 3: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-22 Participant Families
Decision Point: Will the PHA follow the same policies established in sections 10-I.A and 10-I.B for approving or disapproving moves by participant families under portability? (Model plan, p. 10-9)
Things to Consider
• HUD regulations make only one meaningful distinction between allowable moves by participant families within a PHA’s jurisdiction and allowable moves by these families outside the PHA’s jurisdiction under portability. The regulation at 24 CFR 982.353(b) specifically states that the PHA “must not provide . . . portable assistance for a participant if the family has moved out of its assisted unit in violation of the lease.” However, VAWA carves out an exception for families that move out of their units in violation of the lease in order to protect the health or safety of a family member who is or has been a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking. If such families have complied with all other HCV obligations, says 24 CFR 982.353(b), they may be allowed to move under portability.
• The model plan simply clarifies that the PHA will approve or disapprove moves by participant families under portability using the same criteria that it uses to approve or disapprove moves by families within its own jurisdiction. Those criteria allow exceptions for victims of abuse.
Option 1: Use the model plan language shown below. No changes to the model plan are needed.
The PHA will determine whether a participant family may move out of the PHA’s jurisdiction with continued assistance in accordance with the regulations and policies set forth here and in sections 10-I.A and 10-I.B of this chapter. The PHA will notify the family of its determination in accordance with the approval policy set forth in section 10-I.C of this chapter. Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Determining Income Eligibility
This section describes the income eligibility requirements for applicants and participants who wish to move to outside the PHA’s jurisdiction. No policy decisions are required.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-23 Reexamination of Family Income and Composition
The PHA is not required to make any policy decisions on reexaminations for applicant families approved to move under the portability procedures. However, decisions in this area are required for participant families.
Decision Point: Will the PHA conduct a full reexamination of family income and composition for participant families porting out of its jurisdiction? (Model plan, p. 10-9)
Things to Consider
• In deciding whether to conduct a full reexamination of family income and composition for a participant family approved to move under the portability procedures, the main factor the PHA will need to consider is the family’s annual reexamination date.
• On the one hand, whether the receiving PHA intends to administer the family’s assistance or absorb the family into its own program, the initial PHA will be responsible for conducting the family’s annual reexamination—and reporting it in the Public and Indian Housing (PIH) Information Center (PIC) system—until the receiving PHA executes a HAP contract on behalf of the family. Therefore, the initial PHA cannot simply adopt a policy that it will not conduct reexaminations for families moving outside its jurisdiction under portability. It must take into consideration the amount of time likely to elapse before a family is leased up in the receiving PHA’s jurisdiction.
• On the other hand, since the family’s circumstances may change when the family moves and since the receiving PHA may wish to conduct its own reexamination, the initial PHA ordinarily will not want to go to the trouble of conducting a full reexamination for a portable family whose annual reexamination date will not be due until after the receiving PHA has executed a HAP contract on the family’s behalf. • For these two reasons, the model plan language assumes that the PHA will conduct a full reexamination of a portable family’s income and composition only if the family’s reexamination date will fall on or before the initial billing deadline specified on form HUD-52665, Family Portability Information. The policy language under option 2 allows an additional 30 days of leeway. If the PHA is willing to accept a late billing from the receiving PHA, this option may be preferable.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-24 Option 1: Use the model plan language shown below. No changes to the model plan are needed.
For a participant family approved to move out of its jurisdiction under portability, the PHA generally will conduct a reexamination of family income and composition only if the family’s annual reexamination must be completed on or before the initial billing deadline specified on form HUD-52665, Family Portability Information.
The PHA will make any exceptions to this policy necessary to remain in compliance with HUD regulations.
Option 2: Delete the model plan language and substitute the language below.
For a participant family moving out of its jurisdiction under portability, the PHA generally will conduct a reexamination of family income and composition only if the family’s annual reexamination must be completed before 30 days following the initial billing deadline specified on form HUD52665, Family Portability Information.
The PHA will make any exceptions to this policy necessary to remain in compliance with HUD regulations.
Option 3: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-25 Briefing
As the model plan explains, no policy decisions are required on briefings for applicant families.
However, the PHA may wish to adopt a policy on whether or not and to what extent participant families will be briefed before they port out of the PHA’s jurisdiction to another area. Decision Point: Will the PHA brief participant families moving out of its jurisdiction under portability? (Model plan, p. 10-10)
Things to Consider
• If a participant did not qualify for portability when it was admitted to the voucher program, it may never have been briefed on portability. Even if the family was briefed, it may well have forgotten how the process works. • If the PHA’s policies on voucher term, extensions, and expiration are different for portable families than for families planning to lease a unit within the PHA’s jurisdiction, the PHA must make these differences clear. • If more than one PHA administers a voucher program in the area to which the family wishes to move, the family selects the receiving PHA. The initial PHA must provide the family with contact information for all receiving PHAs in the area and may provide additional details such as whether the receiving PHA administers an FSS program. The family may request that the initial PHA select the receiving PHA, in which case the PHA is not required to provide contact information for all receiving PHAs in the area.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-26 Option 1: Use the model plan language shown below. No changes to the model plan are needed plan are needed.
No formal briefing will be required for a participant family wishing to move outside the PHA’s jurisdiction under portability. However, the PHA will provide the family with the same oral and written explanation of portability that it provides to applicant families selected for admission to the program (see Chapter 5).
The PHA will provide the name, address, and phone of the contact for the PHAs in the jurisdiction to which they wish to move. If there is more than one PHA with jurisdiction over the area to which the family wishes to move, the PHA will advise the family that the family selects the receiving PHA and notify the initial PHA of which receiving PHA was selected. The PHA will provide the family with contact information for all of the receiving PHAs that serve the area. The PHA will not provide any additional information about receiving PHAs in the area. The PHA will further inform the family that if the family prefers not to select the receiving PHA, the initial PHA will select the receiving PHA on behalf of the family. In this case, the PHA will not provide the family with information for all receiving PHAs in the area.
The PHA will advise the family that they will be under the receiving PHA’s policies and procedures, including screening, subsidy standards, voucher extension policies, and payment standards.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-27 Voucher Issuance and Term
An applicant family does not need to be issued a new voucher to port to another jurisdiction.
However, a participant family does.
Decision Point: When will the PHA issue a participant family a voucher to move under portability? What will the initial term of the voucher be? (Model plan, p. 10-10)
Things to Consider
• The model plan language ties voucher issuance for a participant family to the PHA’s written approval to move.
• The model plan establishes an initial term of 60 days for a portable voucher. This is consistent with the model plan policies related to voucher term in Chapter 5 and in section 10-I.C of this chapter.
Option 1: Use the model plan language shown below. No changes to the model plan are needed.
For participating families approved to move under portability, the PHA will issue a new voucher within 10 business days of the PHA’s written approval to move.
The initial term of the voucher will be 60 days.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-28 Voucher Extensions and Expiration
Decision Point: What policies will the PHA adopt on voucher extensions and expiration for portable families? (Model plan, p. 10-11) Things to Consider
• When a family moves from one PHA’s jurisdiction to another’s under portability, both the initial PHA and the receiving PHA issue the family a voucher. This raises the question of which voucher, at any given time, is “the voucher of record.” Notice PIH 2016-09 states the following:
“If an incoming family ultimately decides not to lease in the jurisdiction of the receiving PHA, the receiving PHA must refer the family back to the initial PHA. The voucher of record for the family is once again the voucher originally issued by the initial PHA, and the initial PHA’s policies apply. Any extensions of the initial PHA’s voucher to allow the family additional search time to return to the initial PHA’s jurisdiction or to move to another jurisdiction are at the discretion of the initial PHA.
The initial PHA must apply its own policies on moves for families that decide not to use their voucher to port to another jurisdiction.”
• This implies but does not explicitly state that the initial PHA may not extend the term of its voucher once the receiving PHA has issued a voucher unless the receiving PHA refers the family back to the initial PHA. Therefore, the model plan limits extensions of the initial PHA’s voucher term to circumstances under which it is clear that the initial PHA’s voucher is “the voucher of record.”
• The model plan language takes into consideration situations in which the receiving PHA might need to extend the term of the voucher it has issued to the family for purposes of reasonable accommodation. In such situations, the initial PHA simply agrees to accept a late billing from the receiving PHA.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-29 Option 1: Use the model plan language shown below. No changes to the model plan are needed.
The initial PHA will approve no extensions to a voucher issued to an applicant or participant family porting out of the PHA’s jurisdiction except under the following circumstances: (a) the initial term of the voucher will expire before the portable family will be issued a voucher by the receiving PHA, (b) the family decides to return to the initial PHA’s jurisdiction and search for a unit there, or (c) the family decides to search for a unit in a third PHA’s jurisdiction. In such cases, the policies on voucher extensions set forth in Chapter 5, section 5-II.E, of this plan will apply, including the requirement that the family apply for an extension in writing prior to the expiration of the initial voucher term.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-30 Preapproval Contact with the Receiving PHA
Decision Point: Which type of confirmed delivery method will the PHA use for preapproval contact with the receiving PHA? (Model plan, p. 10-11) Things to Consider
• 24 CFR 982.355(c)(3) requires PHAs to contact the receiving PHA regarding whether it will administer or absorb the family’s voucher via email or “other confirmed delivery method.” As the notice states, HUD encourages PHAs to use email in order to expedite families’ requests.
• Although other “confirmed delivery methods” exist, the process should not be substantially delayed due to this requirement.
Option 1: Use the model plan language shown below. No changes to the model plan are needed.
The PHA will use email, when possible, to contact the receiving PHA regarding whether the receiving PHA will administer or absorb the family’s voucher.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Initial Notification to the Receiving PHA
Decision Point: How will the PHA contact a receiving PHA to alert the receiving PHA to expect an incoming portable family and what information will the PHA request on the family’s behalf? (Model plan, p. 10-11)
Things to Consider
• The portability regulations require the initial PHA to contact the receiving PHA on a portable family’s behalf. Given the time-sensitivity of family portability moves, the PHA should establish a policy on the methodology to be used when contacting the receiving PHA, to ensure that the receiving PHA is aware of the incoming family as soon as possible.
• The portability regulations also require the initial PHA to advise the family how to contact and request assistance from the receiving PHA. Notice PIH 2016-09 elaborates on this requirement, noting that “simply referring the family to HUD or a website for information on the receiving PHA’s address does not fulfill the responsibilities of the initial PHA under the program regulations.” The initial PHA must also advise the family how to contact and request assistance from the receiving PHA (e.g., the name and telephone number of the staff person responsible for working with incoming portability families and any procedures related to appointments for voucher issuance the receiving PHA has shared with the initial PHA). This elaboration is reflected in the model plan language.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-31 Option 1: Use the model plan language shown below. No changes to the model plan are needed.
Because the portability process is time-sensitive, the PHA will notify the receiving PHA by phone, fax, or email to expect the family. The initial PHA will also ask the receiving PHA to provide any information the family may need upon arrival, including the name, telephone number, fax and email address of the staff person responsible for working with incoming portable families and procedures related to appointments for voucher issuance. The PHA will pass this information along to the family. The PHA will also ask for the name, address, telephone number, fax and email of the person responsible for processing the billing information.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-32 Sending Documentation to the Receiving PHA
Decision Point: When acting as the initial PHA for a family under portability, what optional information about the family will the PHA provide to the receiving PHA? (Model plan, p. 10-12)
Things to Consider
• When a family ports to another jurisdiction, the initial PHA is required to send the receiving PHA certain documents. The initial PHA has the discretion to send additional information, if available.
• Generally, the purpose of sending additional information would be to help facilitate the family’s move and ensure that the receiving PHA has all of the documentation it might need to process the move as quickly as possible. The initial PHA should decide, via policy, what additional information it will provide. • One critical piece of information to share is whether any member of the family is receiving the earned income disallowance (EID). This benefit remains with the family member whether s/he continues to live in the initial PHA’s jurisdiction or moves to another PHA’s jurisdiction. As of this writing, there is no provision on form HUD50058 and no method under the HUD automated system to track the EID benefit during the two 12-month exclusion periods or during the 24-month maximum eligibility period. Therefore, the HUD-50058 provided by the initial PHA would not necessarily show this information to the receiving PHA. The family has some obligation to report this information to the receiving PHA, but it may not understand the complexities of the EID or may not have maintained accurate records of time elapsed and time remaining. For this reason, the initial PHA may wish to provide EID tracking information to the receiving PHA, as specified in the model plan language. • HUD requires PHAs to also provide the receiving PHA with a copy of current EIV data for participant families. Since the receiving PHA will not be able to review the EIV data until it has taken control of the family’s record in PIC, this practice can alert the receiving PHA to important information such as new employment and receipt of benefits. The initial PHA must have a signed and valid HUD-9886 on file before sending EIV information to the receiving PHA.
• Another key consideration is whether to provide information from a criminal background check. Some states limit the type of criminal background information that may be shared. The model plan language does not include criminal background information in the list of additional information to provide. You may wish to add this information to the list of additional information in your policies. If so, you should carefully consider the legal limitations and restrictions on the type and extent of information that may be provided, as well as your PHA’s liability in providing the information, controlling the confidentiality of the information, etc. The second option allows for the PHA to insert its own policy language.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-33 Option 1: Use the model plan language shown below. No changes to the model plan are needed.
In addition to these documents, the PHA will provide the following information, if available, to the receiving PHA:
Social security numbers (SSNs)
Documentation of SSNs for all nonexempt household members whose SSNs have not been verified through the EIV system
Documentation of legal identity
Documentation of citizenship or eligible immigration status Documentation of participation in the earned income disallowance (EID) benefit
Documentation of participation in a family self-sufficiency (FSS) program
If applicable, information related to the family’s health and medical care and disability assistance expense phased-in hardship exemption, including what stage the family is in and how many months remain in that phase-in stage
The PHA will notify the family in writing regarding any information provided to the receiving PHA [HCV GB, p. 13-3].
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-34 Initial Billing Deadline [Notice PIH 2016-09]
Decision Point: When acting as the initial PHA for a portable family, what action will the PHA take if it does not receive the initial billing from the receiving PHA by the deadline specified on form HUD-52665? (Model plan, p. 10-13) Things to Consider
• The initial billing submission must be received by the initial PHA no later than 90 days following the expiration of the initial PHA’s voucher. In cases where suspension of the voucher delays the initial billing submission, the receiving PHA must notify the initial PHA of delayed billing before the billing deadline and document the delay is due to the suspension. In this case, the initial PHA must extend the billing deadline by 30 days.
• Notice PIH 2016-09 places the burden of monitoring the initial billing deadline for a portable family on the initial PHA. It states that the initial PHA is generally not required to honor late billing. If the initial PHA will accept a late billing submission, it is not required to take any action. However, if it does not intend to honor a late billing submission, it must inform the receiving PHA in writing. The notice does not specify a time frame for this contact, which is spelled out in the model plan language. • The model plan language allows the PHA to consider internal factors, including funding status and the need for providing reasonable accommodation. • A receiving PHA that failed to send the initial billing by the deadline is generally required to absorb the family into its own program. However, HUD may require the initial PHA to accept the late billing in certain cases such as when the receiving PHA does not have funds to support the voucher and the family would be terminated from the program. In such cases, HUD may subsequently transfer units and funding to the initial PHA.
Option 1: Use the model plan language shown below. No changes to the model plan are needed.
The initial PHA’s decision as to whether to accept late billing will be based on internal PHA factors, including the initial PHA’s leasing or funding status. If the PHA has not received an initial billing notice from the receiving PHA within the billing deadline and does not intend to honor the late billing, it will contact the receiving PHA to inform them that it will not honor a late billing submission and will return any subsequent billings that it receives on behalf of the family. In this case, the PHA will send the receiving PHA a written confirmation of its decision by mail.
Among other considerations as to whether to accept late billing will be if the family includes a person with disabilities and the late billing is a result of a reasonable accommodation granted to the family by the receiving PHA.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-35 Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Monthly Billing Payments [24 CFR 982.355(e), Notice PIH 2016-09] Decision Point: Should the PHA require a faster method of payment as long as it is acceptable to the receiving PHA? (Model plan, p. 10-14) Things to Consider
• The deadline for payment to reach the receiving PHA is very tight. Therefore, the initial PHA may wish to establish a faster method of payment to ensure the deadline is met.
Option 1: Use the model plan language shown below. No changes to the model plan are needed.
The initial PHA will utilize direct deposit to ensure that the payment is received by the deadline unless the receiving PHA notifies the initial PHA that direct deposit is not acceptable to them. If the initial PHA extends the term of the voucher, the receiving PHA’s voucher will expire 30 calendar days from the new expiration date of the initial PHA’s voucher.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
The PHA currently does not utilize direct deposit.
Annual Updates of Form HUD-50058
If the initial PHA is being billed on behalf of a portable family, it should receive an updated form HUD-50058 each year from the receiving PHA. No policy decisions are required.
Denial or Termination of Assistance [24 CFR 982.355(c)(17)] At any time, either the initial PHA or the receiving PHA may make a determination to deny or terminate assistance with the family in accordance with 24 CFR 982.552 and 24 CFR 982.553. (For PHA policies on denial and termination, see Chapters 3 and 12, respectively.) Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-36 10-II.C. RECEIVING PHA ROLE
The provisions in this section apply when the PHA is acting as the receiving PHA for a family moving into the PHA’s jurisdiction from the jurisdiction of another PHA (the initial PHA) under the portability procedures. The portable family may be a participant family that has been receiving voucher assistance in the initial PHA’s jurisdiction, or it may be a family that has been issued a voucher but has not yet been admitted to the program. The rules for participant families and applicant families differ in some ways; therefore, the policies adopted for these families in some cases necessarily are different.
Responding to Initial PHA’s Request [24 CFR 982.355(c)] Decision Point: Which type of confirmed delivery method will the PHA use to respond to the initial PHA’s inquiry as to whether the family’s voucher will be billed or absorbed? (Model plan, p. 10-15)
Things to Consider
• As is the case for preapproval contact by the initial PHA, 24 CFR 982.355(c)(3) requires receiving PHAs to in turn respond to initial PHAs’ requests via email or “other confirmed delivery method.” For the response, HUD once again encourages PHAs to use email in order to expedite families’ requests. • Remember, although other “confirmed delivery methods” exist, the process should not be substantially delayed due to this requirement.
Option 1: Use the model plan language shown below. No changes to the model plan are needed.
The PHA will use email, when possible, to notify the initial PHA whether it will administer or absorb the family’s voucher.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-37 Initial Contact with Family
No policy decisions are required.
Briefing
Decision Point: Will the receiving PHA require an incoming portable family to attend a briefing? (Model plan, p. 10-16)
Things to Consider
• The portability regulations do not require the receiving PHA to brief an incoming portable family. However, as the HCV Guidebook notes, an incoming portable family “will need to be informed about the receiving PHA’s policies and payment standards before it begins its search” [HCV GB, p. 13-5].
• Notice PIH 2016-09 states unequivocally that “HUD expects the receiving PHA to process the family’s paperwork and issue the incoming family a voucher for its jurisdiction within two weeks of receiving the HUD-52665 and supporting documentation, provided the information is in order, the family has contacted the receiving PHA, and the family complies with the receiving PHA’s procedures.” For example, it is unacceptable for the receiving PHA to delay processing the family’s paperwork and issuing a voucher because it wishes the family to attend a group briefing that is not scheduled for three weeks.
• Since the family needs time to locate a unit, the receiving PHA could issue a voucher and provide a briefing packet to the family. The family could then elect to attend a more formal briefing later.
Option 1: Use the model plan language shown below. No changes to the model plan are needed.
The PHA will not require the family to attend a briefing. The PHA will provide the family with a briefing packet (as described in Chapter 5) and, in an individual briefing, will orally inform the family about the PHA’s payment and subsidy standards, procedures for requesting approval of a unit, the unit inspection process, and the leasing process. The PHA will suggest that the family attend a full briefing at a later date.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
The PHA will require the family to attend a briefing
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-38 Income Eligibility and Reexamination
Decision Point: Will the PHA conduct a full reexamination of family income and composition for families moving into its jurisdiction under portability? (Model plan, p. 10-16)
Things to Consider
• A family must be income eligible for admission to the voucher program, but once the family has been admitted, no income limits apply. Therefore, income eligibility is an issue under the portability procedures only for applicant families. The responsibility for determining whether a portable applicant family is income eligible for admission to the voucher program in the receiving PHA’s jurisdiction rests with the initial PHA.
However, if the receiving PHA’s jurisdiction includes more than one income area, the receiving PHA will need to confirm that the family is income eligible in the area where the family leases a unit [24 CFR 982.201(b)(4), 24 CFR 982.353(d)(3)]. • The receiving PHA is permitted, but not required, to conduct a new reexamination of income and composition for any incoming portable family, but it may not delay issuing the family a voucher or otherwise delay approving a unit for the family unless the reexamination is necessary to determine income eligibility [24 CFR 982.355(c)(11)]. The PHA may take subsequent action against the family based on the results.
• When a family moves from one area to another, the family’s income may very well change. Therefore, the income information provided by the initial PHA may not be accurate. If the receiving PHA relies upon inaccurate information to determine the family’s total tenant payment (TTP), the receiving PHA may pay a higher or lower subsidy than required for the family.
• If the PHA elects to conduct a new reexamination for all incoming portable families, it is not prohibited from relying upon verifications provided by the initial PHA for income and expense information that has not changed. In such cases, however, the PHA should establish a standard on the timeliness of the verifications (e.g., they must be dated within the last 120 days).
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-39 Option 1: Use the model plan language shown below. No changes to the model plan are needed.
For any family moving into its jurisdiction under portability, the PHA will conduct a new reexamination of family income and composition. However, the PHA will not delay issuing the family a voucher for this reason. Nor will the PHA delay approving a unit for the family until the reexamination process is complete unless the family is an applicant and the PHA cannot otherwise confirm that the family is income eligible for admission to the program in the area where the unit is located.
In conducting its own reexamination, the PHA will rely upon any verifications provided by the initial PHA to the extent that they (a) accurately reflect the family’s current circumstances and (b) were obtained within the last 120 days.
Any new information may be verified by documents provided by the family and adjusted, if necessary, when third party verification is received. Option 2: Delete the model plan language and substitute the language below.
The PHA will rely upon the income information provided by the initial PHA and will not conduct a new reexamination of income and composition for incoming portable families.
Option 3: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
For any family moving into its jurisdiction under portability, the PHA will conduct a new reexamination of family income and composition. Once on going eligibility is determined the family will be issued.
In conducting its own reexamination, the PHA will rely upon any verifications provided by the initial PHA to the extent that they (a) accurately reflect the family’s current circumstances and (b) were obtained within the last 120 days.
Any new information may be verified by documents provided by the family and adjusted, if necessary, when third party verification is received.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-40 Voucher Issuance
In its policies on voucher issuance for incoming portable families, the receiving PHA has decisions to make in three areas: timing, term, and extensions.
Timing of Voucher Issuance
Decision Point: When will the receiving PHA issue an incoming portable family a voucher? (Model plan, p. 10-17)
Things to Consider
• Notice PIH 2016-09 says that HUD “expects” the receiving PHA to issue an incoming portable family a voucher “within two weeks of receiving the HUD-52665 and supporting documentation, provided the information is in order, the family has contacted the receiving PHA, and the family complies with the receiving PHA’s procedures.”
Option 1: Use the model plan language shown below. No changes to the model plan are needed.
When a family ports into its jurisdiction, the PHA will issue the family a voucher based on the paperwork provided by the initial PHA unless the family’s paperwork from the initial PHA is incomplete, the family’s voucher from the initial PHA has expired or the family does not comply with the PHA’s procedures. The PHA will update the family’s information when verification has been completed.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
When a family ports into its jurisdiction, the PHA will determine on going eligibility prior to issuing the voucher.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-41 Voucher Term
Decision Point: When will the voucher that the receiving PHA issues to an incoming portable family expire? (Model plan, p. 10-17)
Things to Consider
• The term of the receiving PHA’s voucher may not expire before 30 days from the expiration date of the initial PHA’s voucher [24 CFR 982.355(c)(13)]. If the initial PHA extends the term of the voucher, the receiving PHA’s voucher may not expire before 30 days from the new expiration date of the initial PHA’s voucher. If the receiving PHA is able and willing to absorb the family, the expiration date is not critical. However, if the receiving PHA intends to administer the family’s assistance, then it must consider the initial billing deadline.
Option 1: Use the model plan language shown below. No changes to the model plan are needed.
The receiving PHA’s voucher will expire 30 calendar days from the expiration date of the initial PHA’s voucher. If the initial PHA extends the term of the voucher, the receiving PHA’s voucher will expire 30 calendar days from the new expiration date of the initial PHA’s voucher.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-42 Voucher Extensions [24 CFR 982.355(c)(14), Notice 2016-09] Decision Point: Will the receiving PHA allow any extensions to vouchers that it issues to incoming portable families? (Model plan, p. 10-17) Things to Consider
• The receiving PHA’s policy on whether to extend vouchers issued to incoming portable families should be based on the same considerations as its decision on voucher term. The policy need not be the same as the PHA’s policy on voucher extensions in Chapter 5 as long as families are aware of the difference. Option 1: Use the model plan language shown below. No changes to the model plan are needed.
The PHA generally will not extend the term of the voucher that it issues to an incoming portable family unless the PHA plans to absorb the family into its own program, in which case it will follow the policies on voucher extension set forth in section 5-II.E of this plan.
The PHA will consider an exception to this policy as a reasonable accommodation to a person with disabilities (see Chapter 2). Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Voucher Suspensions [24 CFR 982.303, 24 CFR 982.355(c)(15)] Regulations now require PHAs to suspend the term of the voucher from the date the family submits a request for PHA approval of the tenancy until the date the PHA notifies the family in writing whether the request has been approved or denied.
No policy decisions are required.
Notifying the Initial PHA
This section describes the requirement for the receiving PHA to promptly notify the initial PHA when the family has leased an eligible unit under the program or if the family fails to submit a request for tenancy approval for an eligible unit within the term of the receiving PHA’s voucher.
No policy decisions are required.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-43 Administering a Portable Family’s Voucher
Portability Billing [24 CFR 982.355(e)(3)]
The receiving PHA bills the initial PHA the lesser of 80 percent of the initial PHA’s ongoing administrative fee or 100 percent of the receiving PHA’s ongoing administrative fee for each program unit under contract on the first day of the month for which the receiving PHA is billing the initial PHA under portability. If the administrative fees are prorated for the HCV program, the proration will apply to the amount of the administrative fee for which the receiving PHA may bill (i.e., the receiving PHA may bill for the lesser of 80 percent of the initial PHA’s prorated ongoing administrative fee or 100 percent of the receiving PHA’s ongoing administrative fee).
For mid-month moves, if the effective date of the HAP is on a date other than the first of the month, the receiving PHA may not bill for administrative fees for that month.
If both PHAs agree, the PHAs may negotiate a different amount of reimbursement. Decision Point: How will the receiving PHA handle portability billing? (Model plan, p. 10-18)
Option 1: Use the model plan language shown below. No changes to the model plan are needed.
Unless the PHA negotiates a different amount of reimbursement with the initial PHA, the PHA will bill the initial PHA the maximum amount of administrative fees allowed, ensuring any administrative fee proration has been properly applied.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-44 Initial Billing Deadline
Decision Point: How will the receiving PHA send initial billing information for a portable family to the initial PHA? (Model plan, p. 10-19) Things to Consider
• If the receiving PHA intends to administer an incoming portable family’s assistance, it must send its initial billing information to the initial PHA in time to meet the deadline specified in Notice PIH 2016-09 and on form HUD-52665. Notice PIH 2016-09 allows the PHA to submit the billing information by fax or email. The model plan language establishes a policy saying that the PHA will use one of these methods when necessary but, if it does, it will also send the information by regular mail. Option 1: Use the model plan language shown below. No changes to the model plan are needed.
The PHA will send its initial billing notice by fax or email, if necessary, to meet the billing deadline but will also send the notice by regular mail. Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-45 Ongoing Notification Responsibilities [Notice PIH 2016-09, HUD-52665] Things to Consider
• If the receiving PHA is administering a portable family’s assistance, Notice PIH 2016-09 states that “the receiving PHA must send the initial PHA a copy of the updated form HUD50058 at each annual reexamination for the duration of time the receiving PHA is billing the initial PHA on behalf of the family…regardless of whether there is a change in the billing amount. A copy of form HUD-50058 must also accompany the submission of a portability form (HUD-52665) reporting any changes in the billing amount.” The purpose of this notification is to serve as an annual “reconciliation” to assist both PHAs in fulfilling their accounting and record-keeping responsibilities.
• The receiving PHA must send the updated HUD-50058 to the initial PHA no later than 10 business days from the effective date of the reexamination. • The model plan establishes a policy stating when and how the receiving PHA will fulfill this responsibility. HUD strongly encourages the receiving PHA to send this information as soon as the family’s reexamination is complete.
Decision Point: When and how will the receiving PHA send a portable family’s updated form HUD-50058 each year to the initial PHA? (Model plan, p. 10-19) Option 1: Use the model plan language shown below. No changes to the model plan are needed.
The PHA will send a copy of the updated HUD-50058 by regular mail no later than 10 business days after the effective date of the reexamination. Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Late Payments [Notice PIH 2016-09]
This section describes the consequences if the initial PHA fails to make a monthly payment for a portable family by the fifth business day of the month. No policy decisions are required.
Overpayments [Notice PIH 2016-09]
This section describes the responsibility of the receiving PHA to return the full amount of any overpayment (including the portion provided for administrative fees) to the initial PHA, in cases where they have received billing payments for billing arrangements no longer in effect.
No policy decisions are required.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-46 Denial or Termination of Assistance
Decision Point: How will the receiving PHA handle denials or terminations of assistance for portable families, including informal reviews or hearings and notification to the initial PHA? (Model plan, p. 10-22) Things to Consider
• The receiving PHA has the authority to deny or terminate assistance for a portable family at any time, in accordance with its own policies, should any of the regulatory criteria at 24 CFR 982.552 or 982.553 apply to the family. When a decision to deny or terminate assistance is made, the receiving PHA must conduct an informal review or hearing for the family.
• If the receiving PHA terminates the assistance of a portable family for which it has been billing the initial PHA, it is required to report the change in the billing amount to the initial PHA within 10 business days.
Option 1: Use the model plan language shown below. No changes to the model plan are needed.
If the PHA elects to deny or terminate assistance for a portable family, the PHA will notify the initial PHA within 10 business days after the informal review or hearing if the denial or termination is upheld. The PHA will base its denial or termination decision on the policies set forth in Chapter 3 or Chapter 12, respectively. The informal review or hearing will be held in accordance with the policies in Chapter 16. The receiving PHA will furnish the initial PHA with a copy of the review or hearing decision.
Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-47 Absorbing a Portable Family [24 CFR 982.355(d)(1), Notice PIH 2016-09] Decision Point:
If the PHA decides to absorb a portable family, when will it notify the initial PHA? (Model plan, p. 10-22)
Things to Consider
• This section of the administrative plan explains when and under what conditions the receiving PHA may absorb a portable family into its own program. The model plan language simply establishes time frames for notifying the initial PHA. Option 1: Use the model plan language shown below. No changes to the model plan are needed.
If the PHA decides to absorb a portable family upon the execution of a HAP contract on behalf of the family, the PHA will notify the initial PHA by the initial billing deadline specified on form HUD-52665. The effective date of the HAP contract will be the effective date of the absorption.
If the PHA decides to absorb a family after that, it will provide the initial PHA with 30 days’ advance notice, but no later than 10 business days following the effective date of the termination of the billing arrangement. Option 2: Use another PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 10: Moving with Continued Assistance and Portability Section 8 HCV Model Administrative Plan Pag Instructions 1/1/24 e 10-48
FINALIZING THE DOCUMENT
Take a final look at the changes you have made in this chapter of the administrative plan.
Have you:
(1) Added or subtracted any exhibits at the end of the chapter? Yes No. (2) Added, subtracted or reordered any major sections (at the A, B, or C level?) Yes No If you answered yes to either of these questions, you must adjust the chapter to match your changes.
Decision Point: Are any changes required to this chapter? No. No changes to the model plan are needed.
Yes. Edits only. Edit and insert PHA language as appropriate.
Yes. PHA changed the organization of the chapter. Adjust the chapter to reflect your changes and review the rest of the document to make sure that any references to section numbers are correct.
Decision Point: Are changes required in other chapters as a result of changes to this chapter?
Check the “Things to Consider” under each decision point to identify if changes to the model plan policy will require changes to policies in other chapters of the plan.
No. Changes to other chapters are not necessary.
Yes. Changes to the following chapters are also required:
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-1
INTRODUCTION
This chapter contains the PHA’s policies for conducting reexaminations. These policies are contained in three parts:
Part I: Annual Reexaminations. This part discusses the process for conducting annual reexaminations.
Part II: Interim Reexaminations. This part details the requirements for families to report changes in family income and composition between annual reexaminations.
Part III: Recalculating Family Share and Subsidy Amount. This part discusses the recalculation of family share and subsidy amounts based on the results of annual and interim reexaminations.
Part IV: Non-Interim Reexamination Transactions. This part describes transactions that do not entail changes to the family’s adjusted income.
Policies governing reasonable accommodation, family privacy, required family cooperation and program abuse, as described elsewhere in this administrative plan, apply to annual and interim reexaminations.
PART I: ANNUAL REEXAMINATIONS [24 CFR 982.516]
11-I.A. OVERVIEW
This section explains the requirement for a PHA to conduct a reexamination of family income and composition at least annually, and the need for policies governing the annual reexamination process. No policy decisions are required.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-2 11-I.B. SCHEDULING ANNUAL REEXAMINATIONS
The PHA must establish a policy to ensure that the reexamination for each family is completed within a 12-month period, and may require reexaminations more frequently Decision Point: When will annual reexaminations take place? (Model plan, p. 11-2) Things to Consider
• The model plan states that the annual reexamination process will begin 120 days in advance of its scheduled effective date, which generally will coincide with the family’s anniversary date. In order to make sure that current information is used, the process should not be started any earlier. However, PHAs with shorter processing times may choose to begin the process closer to the scheduled effective date. • The model plan defines anniversary date to facilitate the discussion of effective dates. • There is no requirement to conduct an annual reexamination when the family moves to a new unit (see Option 2). However, many PHAs do so in order to coordinate the next annual reexamination with the anniversary date of the HAP contract. For this reason, the model plan states that if a move takes, a new reexamination date will be established to coincide with the effective date of the HAP contract. Because program requirements allow owners to request increases in rent at any time (in accordance with the lease), it is not crucial for the HAP contract effective date to coincide with the reexamination effective date, and your PHA may choose not to include this policy.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-3 • HUD guidance permits the PHA to schedule an annual reexamination to take effect earlier than the anniversary date for administrative convenience (for example, to balance workloads). This is stated as a PHA policy to make clear that if the PHA exercises this option, it will result in an exception to the general rule that effective dates coincide with anniversary dates.
XOption 1: Use the model plan language shown below. No changes to the model plan are required.
The PHA will begin the annual reexamination process 120 days in advance of its scheduled effective date. Generally, the PHA will schedule annual reexamination effective dates to coincide with the family’s anniversary date.
Anniversary date is defined as 12 months from the effective date of the family’s last annual reexamination or, during a family’s first year in the program, from the effective date of the family’s initial examination (admission).
If the family moves to a new unit, the PHA will perform a new annual reexamination.
The PHA also may schedule an annual reexamination for completion prior to the anniversary date for administrative purposes.
Option 2: Delete model plan language and substitute language as shown below.
The PHA will begin the annual reexamination process 120 days in advance of its scheduled effective date. Generally, the PHA will schedule annual reexamination effective dates to coincide with the family’s anniversary date.
Anniversary date is defined as 12 months from the effective date of the family’s last annual reexamination or, during a family’s first year in the program, from the effective date of the family’s initial examination (admission).
If the family moves to a new unit, the PHA will not perform a new annual reexamination
The PHA also may schedule an annual reexamination for completion prior to the anniversary date for administrative purposes.
Option 3: Use PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-4 Notification of and Participation in the Reexamination Process The PHA must establish a policy indicating how annual reexaminations will be conducted, and if attendance at an interview is required, which family members must attend. Decision Point: Will the PHA require annual reexamination interviews, and if so who will be required to attend? (Model plan, p. 11-2)
Things to Consider
• While the PHA must establish policies governing how annual reexaminations will be conducted, unless it is necessary to accommodate persons with disabilities or LEP persons, the PHA is not required to conduct in-person interviews with families as part of the annual reexamination process. PHAs have the option to conduct reexaminations either in-person or remotely—either through the mail or through virtual platforms such as reexamination portals or web-based applications. The model plan language allows the PHA to decide between these options. Option 1 provides language for in-person reexams, while Option 2 provides language for reexams that are conducted by mail. If the PHA implements reexams via a portal or web-based system, the PHA should select Option 3 and insert language specific to that process. • Regardless of which method is selected, the PHA must ensure that families’ personally identifiable information (PII) is protected during the reexamination process and that information is stored in systems or records (whether electronic or paper) that have appropriate administrative, technical, and physical safeguards to protect information. The PHA must be aware of any protections under state and local law as well. See Notice PIH 2015-06 for more information on the collection of PII. • For those PHAs that require in-person reexams, most PHAs require the head of household, spouse, or cohead to attend an interview. If interviews are required, the PHA must offer alternative arrangements for participants who are unable to attend due to a disability.
• For in-person reexams, for administrative ease and consistency, the policies regarding notification, undeliverable notices, and failure to appear at reexamination interviews are consistent with similar policies elsewhere in the model plan (e.g., eligibility interviews, briefings). If you make changes to these policies in this chapter, you may want to consider making them in other chapters as well.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-5 • For those PHAs that adopt remote reexams, the PHA will need to decide whether reexams will be conducted by mail, virtually, or a mix of the two. For example, the PHA may mail families a reexamination packet and have them return the packet to the PHA by mail (using a postage-paid envelope provided by the PHA); the PHA may mail packets to families and give families the option whether to return the packet to the PHA via mail (using a postage-paid envelope provided by the PHA) or to recertify online through a reexamination portal or website; or the PHA may move to an entirely web-based system. The PHA may ask clients which reexamination method they prefer, either prior to the implementation of the system or as part of the annual notice to families of their reexam, or the PHA may simply inform families of how reexams will be conducted.
• Further, if the PHA adopts remote reexams, the PHA must also decide whether remote reexams will apply to all families or families who meet certain criteria. PHAs may choose to conduct reexaminations by mail for specifically designated participants and in person for others. For example, the PHA’s policy could state that reexaminations will be conducted by mail for elderly or disabled participants, or for participants with specified income sources (for example, participants whose only source of income is Social Security/SSI or TANF). Because such a policy would be PHA-specific, no model language is provided for this approach. • Some of the benefits of remote reexams are that they may allow persons with limited mobility, persons who lack transportation, persons who must reserve transportation well in advance, or persons who are immuno-compromised to no longer come to a PHA office; they may allow people who are working flexibility and to avoid requesting time off to come into the PHA’s office; and they may benefit people who require childcare.
• Since the remote reexamination process will be specific to the PHA, while Option 2 provides some sample language, the PHA should insert policies specific to their agency.
• Option 2 states that the PHA will conduct face-to-face interviews any time a family requests, or if the required paperwork is not returned timely, or if it is returned timely but is not complete. This approach ensures that reexaminations can still be completed timely and also promotes families responding more quickly.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-6 XOption 1: Use the model plan language shown below. No changes to the model plan are required.
Families generally are required to participate in an annual reexamination interview, which must be attended by the head of household, spouse, or cohead. If participation in an in-person interview poses a hardship because of a family member’s disability, the family should contact the PHA to request a reasonable accommodation (see Chapter 2).
Notification of annual reexamination interviews will be sent by first-class mail and will contain the date, time, and location of the interview. In addition, it will inform the family of the information and documentation that must be brought to the interview.
If the family is unable to attend a scheduled interview, the family should contact the PHA in advance of the interview to schedule a new appointment.
If a family does not attend the scheduled interview, the PHA will send a second notification with a new interview date and appointment time.
If a family fails to attend two scheduled interviews without PHA approval, or if the notice is returned by the post office with no forwarding address, a notice of termination (see Chapter 12) will be sent to the family’s address of record, and to any alternate address provided in the family’s file.
An advocate, interpreter, or other assistant may assist the family in the interview process. The family and the PHA must execute a certification attesting to the role and the assistance provided by any such third party. Option 2: Delete model plan language and substitute language as shown below if your PHA conducts annual reexaminations by mail.
Annual reexaminations will be conducted by mail. Notification of the annual reexamination will be sent by first-class mail and will inform the family of the information and documentation that must be provided to the PHA, and the deadline for providing it. Documents will be accepted by mail, by email, by fax, or in-person. The PHA will, however, conduct reexams in person if requested as a reasonable accommodation or by LEP persons. Reasonable accommodation requests will be handled in accordance with policies in Chapter 2. Further, an in-person interview will be scheduled if the family requests assistance in providing information or documentation requested by the PHA or if the required paperwork is not returned timely, or if it is returned timely but is not complete.
If the reexamination notice is returned by the post office with no forwarding address, a notice of termination (see Chapter 12) will be sent to the family’s address of record, as well as to any alternate address provided in the family’s file.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-7 Option 3: Use PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-8 11-I.C. CONDUCTING ANNUAL REEXAMINATIONS
Decision Point: What policies govern completion and submission of required forms and tenant-supplied documents during the reexamination process? (Model plan, p. 11-3)
Things to Consider
• The model plan does not contain a list of specific information or documents the family will be required to complete as part of the annual reexamination process, other than to say the family must submit a PHA-designated reexamination form and supporting documentation related to the income, expenses, and family composition declared by the family. Although a more complete list of documents could be added to the plan, this is not advisable since the complete list of required documents may change over time and will be provided in the notification to the family. • For administrative ease and consistency, the policy regarding the number of days a family has to provide required documents they were unable supply at the time of the interview (10 business days) is consistent with similar policies elsewhere in the model plan (e.g., eligibility interviews, briefings)
• The model plan allows the PHA to extend the family’s deadline for providing information. The policy does not specify how many requests will be allowed and under what circumstances an extension will be granted. This is to allow the PHA flexibility in handling the requests on a case-by-case basis. Extension criteria could be added if a PHA so chooses.
• See Option 2 if your PHA conducts annual reexaminations by mail. Option 1: Use the model plan language shown below. No changes to the model plan are required.
Families will be asked to bring all required information (as described in the reexamination notice) to the reexamination appointment. The required information will include a PHA-designated reexamination form as well as supporting documents or forms related to the family’s income, expenses, and family composition.
Any required documents or information that the family is unable to provide at the time of the interview must be provided within 10 business days of the interview. If the family is unable to obtain the information or materials within the required time frame, the family may request an extension.
If the family does not provide the required documents or information within the required time period (plus any extensions), the family will be sent a notice of termination (see Chapter 12).
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-9 XOption 2: Delete the model plan language and substitute the language shown below if your PHA conducts annual reexaminations by mail.
Families will be asked to supply all required information (as described in the reexamination notice) before the deadline specified in the notice. The required information will include a PHA-designated reexamination form as well as supporting documents or forms related to the family’s income, expenses, and family composition.
The PHA will notify the family in writing if any required documentation or information is missing. The missing information or documentation must be provided within 10 business days of the date the PHA notifies the family. If the family is unable to obtain the information or materials within the required time frame, the family may request an extension.
If the family does not provide the required documents or information within the required time period (plus any extensions), the family will be sent a notice of termination (see Chapter 12).
If the family requests or the PHA schedules an in-person interview, families will be asked to bring all required information (as described in the reexamination notice) to the reexamination appointment.
Any required documents or information that the family is unable to provide at the time of the interview must be provided within 10 business days of the interview. If the family is unable to obtain the information or materials within the required time frame, the family may request an extension.
If the family does not provide the required documents or information within the required time period (plus any extensions), the family will be sent a notice of termination (see Chapter 12).
Option 3: Use PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-10 Decision Point: Will the PHA screen at annual reexaminations for lifetime registered sex offenders? (Model plan, p. 11-3)
Option 1: Use the model plan language shown below. No changes to the model plan are required.
At the annual reexamination, the PHA will ask whether the tenant, or any member of the tenant’s household, is subject to a lifetime sex offender registration requirement in any state. The PHA will use the Dru Sjodin National Sex Offender database to verify the information provided by the tenant.
XOption 2: Use PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
At the annual reexamination, the PHA will ask whether the tenant, or any member of the tenant’s household, is subject to a lifetime sex offender registration requirement in any state. The PHA will any Sex offender search but not limited to use the Dru Sjodin National Sex Offender database to verify the information provided by the tenant.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-11 11-I.D. DETERMINING ONGOING ELIGIBILITY OF CERTAIN STUDENTS [24 CFR 982.552(b)(5)]
Decision Point: How will the PHA determine the ongoing eligibility of students that are subject to the eligibility restrictions contained in 24 CFR 5.612? (Model plan, p. 11-5)
Things to Consider
• The PHA must ensure at each annual reexamination that all students subject to the restrictions on assistance remain income eligible.
XOption 1: Use the model plan language shown below. No changes to the model plan are required.
During the annual reexamination process, the PHA will determine the ongoing eligibility of each student who is subject to the eligibility restrictions in 24 CFR 5.612 by reviewing the student’s individual income as well as the income of the student’s parents. If the student has been determined “independent” from their parents or is considered a vulnerable youth based on the policies in Sections 3-II.E and 7-II.E, the parents’ income will not be reviewed.
If the student is no longer income eligible based on their own income or the income of their parents, the student’s assistance will be terminated in accordance with the policies in Section 12-I.D.
If the student continues to be income eligible based on their own income and the income of their parents (if applicable), the PHA will process a reexamination in accordance with the policies in this chapter. Option 2: Use PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-12 11-I.E. CALCULATING ANNUAL INCOME AT ANNUAL REEXAMINATION [24 CFR 5.609(C)(2) and Notice PIH 2023-27]
Except when using streamlined or Safe Harbor income determinations, in determining the income of the family for the previous 12-month period, any change of income since the family’s last annual reexamination, including those that did not meet the threshold to process an interim reexamination in accordance with PHA policies and 24 CFR 5.657(c) or 960.257(b) must be considered.
Decision Point: Will the PHA use streamlined determinations of income and determinations of income from means-tested federal assistance programs? (Model plan, p. 11-7)
Things to Consider
• The PHA identifies in Chapter 7 whether or not it will use streamlined income determinations or Safe Harbor determinations from means-tested federal assistance programs. If the PHA adopts the default policy to use these methods of verification, the PHA should include a policy in Chapter 11 stating that the income calculation methods used at annual reexamination as outlined in the chapter do not apply to those methods.
• If the PHA does not adopt such policies, the PHA may delete the policy decision point since all determinations will be made in accordance with the methods outlined in the chapter.
Option 1: Use the model plan language shown below. No changes to the model policy are needed.
When income is calculated using a streamlined income determination or Safe Harbor determination from a means-tested federal public assistance program in accordance with PHA policies in Chapter 7, the above is not applicable.
However, where the family disagrees with the PHA or other agency’s determination of income or the PHA has other reason to use third-party verification in these circumstances, then the above will apply.
XOption 2: Use PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
• If the PHA does not adopt such policies, the PHA may delete the policy decision point since all determinations will be made in accordance with the methods outlined in the chapter.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-13 11-I.F. EFFECTIVE DATES
The PHA must establish policies concerning the effective date of changes that result from an annual reexamination [24 CFR 982.516].
Decision Point: How will the PHA determine the effective dates for annual reexaminations? (Model plan, p. 11-8)
Things to Consider
• The model plan assumes that 30 days can be considered adequate notice. However, state and local laws may require notice of more than 30 days for rent increases. If this is the case in your state, you will need to edit the model plan accordingly. • The model plan also accounts for the fact that the effective date of a change will not always be based on the anniversary date.
• The final point in the model plan addresses how the PHA will determine whether any delay in processing a reexamination was caused by the family. • If your PHA does not conduct annual reexaminations when a family moves to a new unit, select Option 2. This option simply deletes the exception to annual reexamination effective dates as a result of a move.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-14 Option 1: Use the model plan language shown below. No changes to the model plan are required.
In general, an increase in the family share of the rent that results from an annual reexamination will take effect on the family’s anniversary date, and the family will be notified at least 30 days in advance.
If less than 30 days remain before the scheduled effective date, the increase will take effect on the first of the month following the end of the 30-day notice period.
If a family moves to a new unit, the increase will take effect on the effective date of the new lease and HAP contract, and no 30-day notice is required.
If the PHA chooses to schedule an annual reexamination for completion prior to the family’s anniversary date for administrative purposes, the effective date will be determined by the PHA, but will always allow for the 30-day notice period.
If the family causes a delay in processing the annual reexamination, increases in the family share of the rent will be applied retroactively, to the scheduled effective date of the annual reexamination. The family will be responsible for any overpaid subsidy and may be offered a repayment agreement in accordance with the policies in Chapter 16.
In general, a decrease in the family share of the rent that results from an annual reexamination will take effect on the family’s anniversary date.
If a family moves to a new unit, the decrease will take effect on the effective date of the new lease and HAP contract.
If the PHA chooses to schedule an annual reexamination for completion prior to the family’s anniversary date for administrative purposes, the effective date will be determined by the PHA.
If the family causes a delay in processing the annual reexamination, decreases in the family share of the rent will be applied prospectively, from the first day of the month following completion of the reexamination processing.
Delays in reexamination processing are considered to be caused by the family if the family fails to provide information requested by the PHA by the date specified, and this delay prevents the PHA from completing the reexamination as scheduled.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-15 XOption 2: Delete the model plan language and substitute the language shown below if your PHA does not conduct annual reexaminations when a family moves to a new unit.
In general, an increase in the family share of the rent that results from an annual reexamination will take effect on the family’s anniversary date, and the family will be notified at least 30 days in advance.
If less than 30 days remain before the scheduled effective date, the increase will take effect on the first of the month following the end of the 30-day notice period.
If the PHA chooses to schedule an annual reexamination for completion prior to the family’s anniversary date for administrative purposes, the effective date will be determined by the PHA, but will always allow for the 30-day notice period.
If the family causes a delay in processing the annual reexamination, increases in the family share of the rent will be applied retroactively, to the scheduled effective date of the annual reexamination. The family will be responsible for any overpaid subsidy and may be offered a repayment agreement in accordance with the policies in Chapter 16.
In general, a decrease in the family share of the rent that results from an annual reexamination will take effect on the family’s anniversary date.
If a family moves to a new unit, the decrease will take effect on the effective date of the new lease and HAP contract.
If the PHA chooses to schedule an annual reexamination for completion prior to the family’s anniversary date for administrative purposes, the effective date will be determined by the PHA.
If the family causes a delay in processing the annual reexamination, decreases in the family share of the rent will be applied prospectively, from the first day of the month following completion of the reexamination processing.
Delays in reexamination processing are considered to be caused by the family if the family fails to provide information requested by the PHA by the date specified, and this delay prevents the PHA from completing the reexamination as scheduled.
Option 3: Use PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-16 PART II: INTERIM REEXAMINATIONS [24 CFR 982.516]
11-II.A. OVERVIEW
This section explains that HUD requires the family to report changes in family circumstances and requires the PHA to conduct interim reexaminations in certain situations. HUD also requires the PHA to establish policies concerning whether to conduct interim reexaminations in other situations. No policy decisions are required.
11-II.B. CHANGES IN FAMILY AND HOUSEHOLD COMPOSITION
Reporting
Decision Point: Will the PHA conduct interim reexaminations for all changes in family composition that occur between annual reexaminations? (Model plan, p. 11-9)
Things to Consider
• The PHA must adopt policies prescribing when and under what conditions the family must report changes in family composition. PHAs must require families to report household composition changes; however, PHAs determine the timeframe in which reporting happens [Notice PIH 2023-27].
• At any time, the family may request an interim determination of family income or composition because of any changes since the last determination. The PHA must make the interim determination within a reasonable time after the family request. (24 CFR 982.516 (b)(1).
• For administrative ease and consistency, the policy regarding how long the family has to notify the PHA of changes in household composition, is consistent with similar policies elsewhere in the model policy (10 business days).
XOption 1: Use the model plan language shown below. No changes to the model plan are required.
All families must report all changes in family and household composition that occur between annual reexaminations.
Option 2: Use PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-17 New Family Members Not Requiring PHA Approval
The addition of a family member as a result of birth, adoption, or court-awarded custody does not require PHA approval. However, the family is required to promptly notify the PHA of the addition. No policy decisions are required.
New Family and Household Members Requiring Approval
Decision Point: How will the PHA treat requests to add a family or household member who must be approved by the PHA? (Model plan, p. 11-10) Things to Consider
• The model plan states that families must request permission to add a new family member when someone’s stay in the unit is expected to exceed the time frames that define what constitutes a guest. The policy is based on the definition of guest developed in Chapter 3. If a PHA chooses to change the definition of guest in Section 3-I.J, the changes will need to be reflected in this section. • The model plan requires families to request approval for new household members (live-in aide, foster child, foster adult) to reside in the unit but establishes a different standard for disapproving foster children and foster adults (based on space standards) than for family members and live-in aides. The addition of a foster child or foster adult will not be approved if it will cause a violation of space standards, whereas if the addition of a new family member or live-in aide causes a violation of space standards, the family will be issued a voucher and required to move. • Section 3-I.K., “Foster Children and Foster Adults,” includes a similar policy on the approval of foster children and adults. If changes are made to the policy here, changes must also be made to the policy in 3-I.K.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-18 • The addition of a new family member or live-in aide could result in overcrowding according to space standards. The model policy states that the family will be informed of any such problem when the new family member is approved. If the PHA will use a separate process for informing the family of the problem, the model plan should be amended to reflect that policy.
XOption 1: Use the model plan language shown below. No changes to the model plan are required.
Families must request PHA approval to add a new family member, live-in aide, foster child, or foster adult. This includes any person not on the lease who is expected to stay in the unit for more than 30 consecutive days or 90 cumulative days within a 12-month period and therefore no longer qualifies as a “guest.” Requests must be made in writing and approved by the PHA prior to the individual moving into the unit.
The PHA will not approve the addition of a new family or household member unless the individual meets the PHA’s eligibility criteria (see Chapter 3) and documentation requirements (see Chapter 7, Part II).
The PHA will not approve the addition of a foster child or foster adult if it will cause a violation of space standards.
If the PHA determines an individual meets the PHA’s eligibility criteria and documentation requirements, the PHA will provide written approval to the family. If the approval of a new family member or live-in aide will cause overcrowding according to space standards, the approval letter will explain that the family will be issued a voucher and will be required to move.
If the PHA determines that an individual does not meet the PHA’s eligibility criteria or documentation requirements, the PHA will notify the family in writing of its decision to deny approval of the new family or household member and the reasons for the denial.
The PHA will make its determination within 10 business days of receiving all information required to verify the individual’s eligibility. Option 2: Use PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-19 Departure of a Family or Household Member
PHAs are required to process an interim for all decreases in adjusted income when a family member permanently moves out of the unit.
Decision Point: When must the family report that a family member no longer resides in the unit? (Model plan, p. 11-11)
Things to Consider
• For administrative ease and consistency the policy regarding notification of a family member no longer residing in the assisted unit, is consistent with similar policies elsewhere in the model plan (10 business days).
• If you change the policy here, you will also need to change the policy in Section 5-I.C.
XOption 1: Use the model plan language shown below. No changes to the model plan are required.
If a household member ceases to reside in the unit, the family must inform the PHA within 10 business days. This requirement also applies to family member who has been considered temporarily absent at the point that the family concludes the individual is permanently absent.
Option 2: Use PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-20 11-II.C. CHANGES AFFECTING INCOME OR EXPENSES
Interim Decreases [24 CFR 982.516(c) and Notice PIH 2023-27] The PHA may decline to conduct an interim if the PHA estimates the family’s adjusted income will decrease by an amount that is less than 10 percent of the family’s adjusted income or a lower threshold established by PHA policy.
Decision Point: What are the PHA’s policies for interim decreases? (Model plan, p. 11-12)
Things to Consider
• The PHA must establish in policy the percentage threshold they will use for conducting interim decreases.
• Option 1 states that the PHA will conduct an interim for all decreases. This is consistent with pre-HOTMA requirements and provides the most benefit to families. • If the PHA wishes to use 10 percent as the threshold, the PHA should adopt Option 2. • If the PHA wishes to set a percentage threshold for decreases of less than 10 percent but more than 0 percent, the PHA should write its own policy identifying the amount of the threshold. The PHA may not adopt a threshold that is greater than 10 percent. • PHAs are not permitted to establish a dollar figure instead of a percentage threshold. • If the PHA sets a threshold amount that is greater than 0, the PHA may establish a policy to round calculated percentage decreases up or down to the nearest unit.
Option 2 adopts such a policy to ensure consistency among staff.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-21 Option 1: Use the model plan language shown below. No changes to the model plan are required.
The PHA will conduct an interim any time the family’s adjusted income has decreased by any amount.
XOption 2: Delete model plan language and substitute language as shown below.
Generally, the PHA will only conduct an interim when the family’s adjusted income has decreased by an amount that is 10 percent or more of the family’s adjusted income.
When determining the 10 percent threshold, the PHA will round calculated percentages up or down to the next nearest unit as applicable (e.g., a calculated decrease of 9.5 percent will be rounded to 10 percent).
However, the PHA will perform an interim reexamination for a decrease in adjusted income of any amount in two circumstances:
When there is a decrease in family size attributed to the death of a family member; or
When a family member permanently moves out of the assisted unit during the period since the family’s last reexamination. Option 3: Use PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-22 Interim Increases [24 CFR 982.516(c)(3) and Notice PIH 2023-27] Increases Less than 10 Percent
PHAs must not process interim reexaminations for income increases that result in less than a 10 percent increase in annual adjusted income. No PHA policy decisions are required.
Increases 10 Percent or Greater
The PHA must conduct an interim reexamination of family income when the PHA becomes aware that the family’s adjusted income has changed by an amount that the PHA estimates will result in an increase of 10 percent or more in annual adjusted income. However, the PHA may not consider earned income in estimating whether adjusted income has increased unless the family previously received an interim decrease during the same certification period. The PHA may choose not to include earned income increases in determining whether the 10 percent threshold is met for increases when the family previously had an interim performed for a decrease in adjusted income (whether for earned income, unearned income, or a combination of the two) since the last reexamination.
Decision Point: Will the PHA consider increases in earned income when there was a previous interim decrease since the family’s last annual that resulted in a rent decrease? (Model plan, p. 11-13)
Things to Consider
• PHAs may choose not to include earned income increases in determining whether the 10 percent threshold is met for increases in adjusted income when the family previously had an interim reexamination performed for a decrease in adjusted income (earned, unearned, or combined) since the last annual reexamination. • PHAs must describe how they will handle this situation in their policies. • If the PHA chooses not to conduct an interim in this circumstance, then the PHA will not conduct any interims for increases in earned income. For ease of administration, Option 1 reflects this policy.
• If the PHA wishes to conduct interims when a family has an increase in earned income and there was a previous decrease, the PHA should select Option 2. • Regardless, the PHA must conduct interims for other changes in income that meet the 10 percent threshold.
• Unlike with decreases in income, the PHA may not establish an alternative threshold to the 10 percent amount.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-23 Option 1: Use the model plan language shown below. No changes to the model plan are required.
When a family reports an increase in their earned income between annual reexaminations, the PHA will not conduct an interim reexamination, regardless of the amount of the increase, and regardless of whether there was a previous decrease since the family’s last annual reexamination.
The PHA will process an interim reexamination for any increases in unearned income of 10 percent or more in adjusted income.
The PHA will not perform an interim reexamination when a family reports an increase in income (whether earned or unearned income) within three months of their annual reexamination effective date. However, families who delay reporting income increases until the last three months of their certification period may be subject to retroactive rent increases in accordance with the PHA policies in Chapter 14.
XOption 2: Delete model plan language and substitute language as shown below.
Provided a family’s increase meets the 10 percent threshold, the PHA will conduct an interim when the family experiences an increase in earned income and the family previously had an interim performed for a decrease in adjusted income (whether for earned income, unearned income, or a combination of the two) since their last annual.
The PHA will not process an interim for increases in earned income when an interim was previously performed since the family’s last annual and the interim resulted in an increase in the family’s rent, nor will the PHA process an interim for an increase in earned income when the family has not had a previous interim reexamination since their last annual.
The PHA will also process an interim for any other increases in income that meet the 10 percent threshold.
The PHA will not perform an interim reexamination when a family reports an increase in income (whether earned or unearned income) within three months of their annual reexamination effective date. However, families who delay reporting income increases until the last three months of their certification period may be subject to retroactive rent increases in accordance with the PHA policies in Chapter 15.
Option 3: Use PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-24 Concurrent Increases in Earned and Unearned Income [Notice PIH 2023-27] No PHA policy decisions are required.
Cumulative Increases [Notice PIH 2023-27]
No PHA policy decisions are required.
Family Reporting
The PHA must adopt policies consistent with HUD regulations prescribing when and under what conditions the family must report a change in family income or composition [982.516(b)(2). Decision Point: When must a family report a change in income? (Model plan, p. 11-15)
Things to Consider
• PHAs are responsible for educating families on the requirements for reporting changes. Families are responsible for reporting these changes to the PHA. It is the PHA’s responsibility to track all reported changes to a family’s annual adjusted income to ensure that the PHA is correctly processing interim reexaminations in accordance with HUD’s requirements.
• PHAs may establish policies requiring that families report all changes in income and household composition, and the PHA will subsequently determine if the change requires an interim reexamination. Option 1 adopts such a policy. The model policy states that the family will be required to report all changes in income and the PHA will determine whether such change warrants an interim reexamination. If an interim is not required, the model policy states the PHA will note the file. This allows for the PHA to maintain a record of all family-reported information. By having families report all changes, the PHA cuts down on confusion about when an interim is required and alleviates the burden of calculating threshold amounts for the family. • Alternatively, a PHA’s policies may require families to report only changes that the family estimates meet the threshold for an interim reexamination, and the PHA must determine if an interim reexamination is necessary. Option 2 of the model policy adopts such a policy. NMA does not recommend such a policy since it may be difficult for the family to calculate whether a change meets the threshold for a change to adjusted income and families may inadvertently fail to report changes. • Most PHAs try to streamline the interim reporting process in order to minimize the burden placed on either families or staff. The model policy takes this approach by allowing families to report changes either orally or in writing. However, in certain circumstances, the PHA may need to require that the family submit documentation or attend an interview. The model policy allows for these steps, at the PHA’s discretion. • The specific documentation that will be required will depend on the type of change the family reports and whether or not it is expected to change the family share of rent.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-25 • Once the family has reported the change, the model policy puts the burden on the PHA to request from the family the specific information that is needed to complete the interim.
• For administrative ease and consistency, the time frame that a family will be given to submit PHA-required documents is consistent with similar policies elsewhere in the model policy (10 business days).
XOption 1: Use the model plan language shown below. No changes to the model plan are required.
The family will be required to report all changes in income regardless of the amount of the change, whether the change is to earned or unearned income, or if the change occurred during the last three months of the certification period.
Families must report changes in income within 10 business days of the date the change takes effect. The family may notify the PHA of changes either orally or in writing. If the family provides oral notice, the PHA may also require the family to submit the changes in writing.
Within 10 business days of the family reporting the change, the PHA will determine whether the change will require an interim reexamination.
If the change will not result in an interim reexamination, the PHA will note the information in the tenant file but will not conduct an interim reexamination. The PHA will send the family written notification within 10 business days of making this determination informing the family that the PHA will not conduct an interim reexamination.
If the change will result in an interim reexamination, the PHA will determine the documentation the family will be required to submit based on the type of change reported and PHA policies in Chapter 7.
The PHA will ask the family to report changes in all aspects of adjusted income at this time. The family must submit any required information or documents within 10 business days of receiving a request from the PHA. This time frame may be extended for good cause with PHA approval. The PHA will accept required
documentation by mail, email, fax, or in person. The PHA will conduct the interim within a reasonable time period based on the amount of time it takes to verify the information.
Generally, the family will not be required to attend an interview for an interim reexamination. However, if the PHA determines that an interview is warranted, the family may be required to attend.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-26 Option 2: Delete model plan language and substitute language as shown below.
Families will be required to report only changes that the family estimates meet the threshold for an interim reexamination. Families must report changes that meet the threshold within 10 business days of the date the change takes effect.
The family may notify the PHA of changes either orally or in writing. If the family provides oral notice, the PHA may also require the family to submit the changes in writing. The family is not required to report changes it does not estimate meet the threshold for an interim reexamination.
Within 10 business days of the family reporting the change, the PHA will determine whether the change will require an interim reexamination.
If the change will not result in an interim reexamination, the PHA will note the information in the tenant file but will not conduct an interim reexamination. The PHA will send the family written notification within 10 business days of making this determination informing the family that the PHA will not conduct an interim reexamination.
If the change will result in an interim reexamination, the PHA will determine the documentation the family will be required to submit based on the type of change reported and PHA policies in Chapter 7.
The PHA will ask the family to report changes in all aspects of adjusted income at this time. The family must submit any required information or documents within 10 business days of receiving a request from the PHA. This time frame may be extended for good cause with PHA approval. The PHA will accept required
documentation by mail, email, fax, or in person. The PHA will conduct the interim within a reasonable time period based on the amount of time it takes to verify the information.
Generally, the family will not be required to attend an interview for an interim reexamination. However, if the PHA determines that an interview is warranted, the family may be required to attend.
Option 3: Use PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-27 11-II.D. EFFECTIVE DATES [ 24 CFR 982.52(e) and Notice PIH 2023-27] Changes Reported Timely [Notice PIH 2023-27]
No PHA policy decisions are required.
Changes Not Reported Timely [Notice PIH 2023-27]
Decision Point: For rent decreases when a family does not report timely, will the PHA apply decreases retroactively? (Model plan, p. 11-17) Things to Consider
• For the most part, the regulations govern PHA notice requirements for the results of an interim reexamination.
• However, there is a discretionary component when a family fails to report a change timely that would result in a decrease. In this case, the PHA may apply rent decreases either to the first of the month following the change or retroactively. The PHA may choose to adopt a policy that would make the effective date of an interim reexamination retroactive to the first of the month following the date of the actual decrease in income, as opposed to the first of the month following completion of the reexamination.
• PHAs may also choose to establish conditions or requirements for when such a retroactive application would apply (e.g., where a family’s ability to report a change in income promptly may have been hampered due to extenuating circumstances such as a natural disaster or disruptions to the PHA management operations). Option 1 generally adopts a poi.cy of applying decreases prospectively but allows the PHA leeway to apply decreases retroactively in the case of extenuating circumstances. If the PHA wishes to apply decreases prospectively no matter the circumstances surrounding the family’s failure to report, the PHA should adopt Option 2. • PHAs that choose to adopt Option 1 must ensure the earliest date that the retroactive decrease is applied is the later of the first of the month following the date of the change that led to the interim reexamination, or the first of the month following the most recent previous income examination (i.e., most recent interim or annual reexamination or the family’s initial examination if that was the family’s only income examination before the interim reexamination in question). Option 1 makes this clear. • In applying a retroactive change in rent or family share as the result of an interim reexamination, the PHA must clearly communicate the effect of the retroactive adjustment to the family so that there is no confusion over the amount of the rent that is the family’s responsibility. These policies may reduce the potential hardship on families and eliminate or significantly reduce the amount a family may owe the PHA for back rent if the family has had difficulty in making timely rent payments during the time between the loss of income and the interim reexamination. Option 1 adopts such language.
• The PHA must also clearly communicate the effect of the retroactive adjustment to the owner.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-28 Option 1: Use the model plan language shown below. No changes to the model plan are required.
In general, when the family fails to report a change in income or family composition timely, and the change would lead to a rent decrease, the PHA will apply the decrease the first of the month following completion of the interim reexamination.
However, the PHA will apply the results of the interim reexamination retroactively where a family’s ability to report a change in income promptly may have been hampered due to extenuating circumstances such as a natural disaster or disruptions to PHA management operations. The PHA will decide to apply decreases retroactively on a case-by-case basis. In such cases, the earliest date that the retroactive decrease will be applied is the later of the first of the month following the date of the change that led to the interim reexamination, or the first of the month following the most recent previous income examination.
When the PHA applies the results of interim decreases retroactively, the PHA will clearly communicate the effect of the retroactive adjustment to the family and may enter into a repayment agreement in accordance with PHA policies.
The PHA will also clearly communicate the effect of the retroactive adjustment to the owner.
XOption 2: Delete the model plan language and substitute language as shown below.
When the family fails to report a change in income or family composition timely, and the change would lead to a rent decrease, the PHA will apply the decrease the first of the month following completion of the interim reexamination.
The PHA will also clearly communicate the effect of the retroactive adjustment to the owner.
Option 3: Use PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-29 Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-30 PART III: RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT Most of the information in this part is required by regulation and requires no PHA policy decisions.
11-III.A. OVERVIEW
This section explains the requirement for PHAs to recalculate family share and subsidy amount, and to provide notice to the owner and family of these changes. No policy decisions are required.
11-III.B. CHANGES IN PAYMENT STANDARDS AND UTILITY ALLOWANCES Payment Standards [24 CFR 982.505]
This section explains how changes in payment standards are to be considered when processing interim and annual reexaminations. No policy decisions are required.
Subsidy Standards [24 CFR 982.505(c)(4)]
This section explains how changes in family unit size must be considered when processing interim and annual reexaminations. No policy decisions are required.
Utility Allowances [24 CFR 982.517(d)]
The family share of the rent and HAP calculations must reflect any changes in the family’s utility arrangement with the owner, or in the PHA’s utility allowance schedule [HCV GB, p. 12-5]. Decision Point: At which reexamination will revised utility allowances be applied, interim or annual? (Model plan, p. 11-20)
Things to Consider
• The regulations state that the PHA must use the current utility allowance schedule at reexamination. They do not specify annual or interim reexamination. • The HCV Guidebook states that revised allowances will be used to calculate a family’s gross rent at its next annual reexamination.
• The model plan adopts the safe harbor language from the HCV Guidebook and states that revised utility allowances will be applied at the first annual reexamination that is effective after the allowance is adopted.
• A PHA could choose to use an updated schedule at interim reexamination. However, if this decision is made, changes in payment standards and utility allowances will be implemented at different times because the payment standard effective dates are regulatory.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-31 Option 1: Use the model plan language shown below. No changes to the model plan are needed.
Revised utility allowances will be applied to a family’s rent and subsidy calculations at the first annual reexamination after the allowance is adopted.
XOption 2: Use PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
Revised utility allowances will be applied to a family’s rent and subsidy calculations at the first annual reexamination and/or next interim after the allowance is adopted.
11-III.C. NOTIFICATION OF NEW FAMILY SHARE AND HAP AMOUNT The HAP contract requires the PHA to notify the owner and family of any changes in the housing assistance payment.
Decision Point: Will the notification to the family regarding new family share and HAP amount include any additional information? (Model plan, p. 11-20) Things to Consider
• The HCV Guidebook states that the notice should include the amount and effective date of the new HAP payment, the amount and effective date of the new family share of the rent, and the amount and effective date of the new tenant rent to owner. • Although it is not required, it is good practice to include in the notice to the family the annual and adjusted income that was used to calculate the family share of the rent.
The model plan includes such a policy.
XOption 1: Use the model plan language shown below. No changes to the model plan are required.
The notice to the family will include the annual and adjusted income amounts that were used to calculate the family share of the rent and the housing assistance payment.
The notice will state the family has the right to request an explanation of how the assistance was calculated and if the family disagrees, they have the right to informal hearing. The notice will include the procedures for requesting an informal hearing.
Option 2: Use PHA-established policy. Edit the model plan language or delete it and insert the PHA’s policy.
11-III.D. DISCREPANCIES
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-32 This section explains that when errors resulting in the overpayment or underpayment of subsidy are discovered, they will be corrected in accordance with the policies contained in Chapter 13.
No policy decisions are required.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-33 PART IV: NON-INTERIM REEXAMINATION TRANSACTIONS [Notice PIH 2023-27] This section describes when the PHA must submit non-interim reexamination transactions. No PHA policy decisions are required.
Item 2.
Instructions for Preparing Chapter 11: Reexaminations
Section 8 HCV Model Administrative Plan Instructions 1/1/24 Page 11-34
FINALIZING THE DOCUMENT
Take a final look at the changes you have made in this chapter of the administrative plan.
Have you:
(1) Added or subtracted any exhibits at the end of the chapter? Yes No. (2) Added, subtracted or reordered any major sections (at the A, B, or C level?) Yes No If you answered yes to either of these questions, you must adjust the chapter to match your changes.
Decision Point: Are any changes required to this chapter? No. No changes to the model plan are needed.
Yes. Edits only. Edit and insert PHA language as appropriate.
Yes. PHA changed the organization of the chapter. Adjust the chapter to reflect your changes and review the rest of the document to make sure that any references to section numbers are correct.
Decision Point: Are changes required in other chapters as a result of changes to this chapter?
Check the “Things to Consider” under each decision point to identify if changes to the model plan policy will require changes to policies in other chapters of the plan.
No. Changes to other chapters are not necessary.
Yes. Changes to the following chapters are also required:
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Chapter 12
TERMINATION OF ASSISTANCE AND TENANCY
HUD regulations specify mandatory and optional grounds for which a PHA can terminate a family’s assistance. They also specify the circumstances under which an owner may terminate the tenancy of an assisted family. This chapter describes the policies that govern mandatory and optional terminations of assistance, and termination of tenancy by the owner. It is presented in three parts:
Part I: Grounds for Termination of Assistance. This part describes the various circumstances under which assistance under the program can be terminated by the family or by the PHA.
Part II: Approach to Termination of Assistance. This part describes the policies and the process that the PHA will use in evaluating decisions on whether to terminate assistance due to actions or inactions of the family where termination is an option. It specifies the alternatives that the PHA may consider in lieu of termination, the criteria the PHA will use when deciding what action to take, and the steps the PHA must take when terminating a family’s assistance.
Part III: Termination of Tenancy by the Owner. This part describes the HUD policies that govern the owner’s right to terminate an assisted tenancy.
PART I: GROUNDS FOR TERMINATION OF ASSISTANCE
12-I.A. OVERVIEW
HUD requires the PHA to terminate assistance for certain actions and inactions of the family and when the family no longer requires assistance due to increases in family income. HUD permits the PHA to terminate assistance for certain other actions or inactions of the family. In addition, a family may decide to withdraw from the program and terminate their HCV assistance at any time by notifying the PHA.
12-I.B. FAMILY NO LONGER REQUIRES ASSISTANCE [24 CFR 982.455] As a family’s income increases, the amount of the housing assistance payment decreases. If the amount of assistance provided by the PHA is reduced to zero, the family's assistance terminates automatically 180 days after the last HAP payment.
HACN Policy
If a participating family receiving zero assistance experiences a change in circumstances that would result in a HAP payment to the owner, the family must notify the PHA of the change and request an interim reexamination before the expiration of the 180-day period.
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12-I.C. FAMILY CHOOSES TO TERMINATE ASSISTANCE
The family may request that the PHA terminate housing assistance payments on behalf of the family at any time.
HACN Policy
The request to terminate assistance should be made in writing and signed by the head of household, and spouse or cohead if applicable. Before terminating the family’s assistance, the PHA will follow the notice requirements in Section 12-II.F. 12-I.D. MANDATORY TERMINATION OF ASSISTANCE
HUD requires the PHA to terminate assistance in the following circumstances.
Eviction [24 CFR 982.552(b)(2), 24 CFR 5.2005(c)(1)]
The PHA must terminate assistance whenever a family is evicted from a unit assisted under the HCV program for a serious or repeated violation of the lease. As discussed further in section 12- II.E, incidents of actual or threatened domestic violence, dating violence, sexual assault, stalking, or human trafficking may not be construed as serious or repeated violations of the lease by the victim or threatened victim of such violence or stalking.
HACN Policy
A family will be considered evicted if the family moves after a legal eviction order has been issued, whether or not physical enforcement of the order was necessary.
If a family moves after the owner has given the family an eviction notice for serious or repeated lease violations but before a legal eviction order has been issued, termination of assistance is not mandatory. In such cases the PHA will determine whether the family has committed serious or repeated violations of the lease based on available evidence and may terminate assistance or take any of the alternative measures described in section 12-II.C. In making its decision, the PHA will consider the factors described in sections 12-II.D and 12-II.E. Upon consideration of such factors, the PHA may, on a case-by-case basis, choose not to terminate assistance.
Serious and repeated lease violations will include, but not be limited to, nonpayment of rent, disturbance of neighbors, destruction of property, or living or housekeeping habits that cause damage to the unit or premises and criminal activity. Generally, the criterion to be used will be whether or not the reason for the eviction was the fault of the tenant or guests.
Failure to Provide Consent [24 CFR 982.552(b)(3)]
The PHA must terminate assistance if any family member fails to sign and submit any consent form they are required to sign for a regular or interim reexamination. See Chapter 7 for a complete discussion of consent requirements.
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Failure to Document Citizenship [24 CFR 982.552(b)(4) and [24 CFR 5.514(c)] The PHA must terminate assistance if (1) a family fails to submit required documentation within the required timeframe concerning any family member’s citizenship or immigration status; (2) a family submits evidence of citizenship and eligible immigration status in a timely manner, but United States Citizenship and Immigration Services (USCIS) primary and secondary verification does not verify eligible immigration status of the family; or (3) a family member, as determined by the PHA, has knowingly permitted another individual who is not eligible for assistance to reside (on a permanent basis) in the unit.
For (3) above, such termination must be for a period of at least 24 months. This does not apply to ineligible noncitizens already in the household where the family’s assistance has been prorated.
See Chapter 7 for a complete discussion of documentation requirements.
Failure to Disclose and Document Social Security Numbers [24 CFR 5.218(c), Notice PIH 2018-24]
The PHA must terminate assistance if a participant family fails to disclose the complete and accurate social security numbers of each household member and the documentation necessary to verify each social security number.
However, if the family is otherwise eligible for continued program assistance, and the PHA determines that the family’s failure to meet the SSN disclosure and documentation requirements was due to circumstances that could not have been foreseen and were outside of the family’s control, the PHA may defer the family’s termination and provide the opportunity to comply with the requirement within a period not to exceed 90 calendar days from the date the PHA determined the family to be noncompliant.
HACN Policy
The PHA will defer the family’s termination and provide the family with the opportunity to comply with the requirement for a period of 90 calendar days for circumstances beyond the participant’s control such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency, if there is a reasonable likelihood that the participant will be able to disclose an SSN by the deadline.
Methamphetamine Manufacture or Production [24 CFR 982.553(b)(1)(ii)] The PHA must terminate assistance if any household member has ever been convicted of the manufacture or production of methamphetamine on the premises of federally assisted housing.
Lifetime Registered Sex Offenders [Notice PIH 2012-28]
Should a PHA discover that a member of an assisted household was subject to a lifetime registration requirement at admission and was erroneously admitted after June 25, 2001, the PHA must immediately terminate assistance for the household member.
In this situation, the PHA must offer the family the opportunity to remove the ineligible family member from the household. If the family is unwilling to remove that individual from the household, the PHA must terminate assistance for the household.
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Failure of Students to Meet Ongoing Eligibility Requirements [24 CFR 982.552(b)(5) and FR 4/10/06]
If a student enrolled at an institution of higher education is under the age of 24, is not a veteran, is not married, does not have dependent children, is not residing with their parents in an HCV assisted household, and is not a person with disabilities receiving HCV assistance as of November 30, 2005, the PHA must the terminate the student’s assistance if, at the time of reexamination, either the student’s income or the income of the student’s parents (if applicable) exceeds the applicable income limit.
If a participant household consists of both eligible and ineligible students, the eligible students shall not be terminated, but must be issued a voucher to move with continued assistance in accordance with program regulations and PHA policies, or must be given the opportunity to lease in place if the terminated ineligible student members elect to move out of the assisted unit.
Death of the Sole Family Member [24 CFR 982.311(d) and Notice PIH 2010-9] The PHA must immediately terminate program assistance for deceased single member households.
12-I.E. MANDATORY POLICIES AND OTHER AUTHORIZED TERMINATIONS Mandatory Policies [24 CFR 982.553(b) and 982.551(l)]
HUD requires the PHA to establish policies that permit the PHA to terminate assistance if the PHA determines that:
• Any household member is currently engaged in any illegal use of a drug, or has a pattern of illegal drug use that interferes with the health, safety, or right to peaceful enjoyment of the premises by other residents
• Any household member’s abuse or pattern of abuse of alcohol may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents • Any household member has violated the family’s obligation not to engage in any drugrelated criminal activity • Any household member has violated the family’s obligation not to engage in violent criminal activity
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Use of Illegal Drugs and Alcohol Abuse
HACN Policy
The PHA will terminate a family’s assistance if any household member is currently engaged in any illegal use of a drug or has a pattern of illegal drug use.
The PHA will terminate assistance if any household member’s abuse or pattern of abuse of alcohol threatens the health, safety, or right to peaceful enjoyment of the premises by other residents.
Currently engaged in is defined as any use of illegal drugs during the previous six months.
The PHA will consider all credible evidence, including but not limited to, any record of arrests, convictions, or eviction of household members related to the use of illegal drugs or abuse of alcohol.
A record or records of arrest will not be used as the sole basis for the termination or proof that the participant engaged in disqualifying criminal activity.
In making its decision to terminate assistance, the PHA will consider alternatives as described in Section 12-II.C and other factors described in Sections 12-II.D and 12-II.E.
Upon consideration of such alternatives and factors, the PHA may, on a case-by-case basis, choose not to terminate assistance.
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Drug-Related and Violent Criminal Activity [24 CFR 5.100] Drug means a controlled substance as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802).
Drug-related criminal activity is defined by HUD as the illegal manufacture, sale, distribution, or use of a drug, or the possession of a drug with intent to manufacture, sell, distribute or use the drug.
Violent criminal activity means any criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force substantial enough to cause, or be reasonably likely to cause, serious bodily injury or property damage.
HACN Policy
The PHA will terminate a family’s assistance if any household member has violated the family’s obligation not to engage in any drug-related or violent criminal activity during participation in the HCV program.
The PHA will consider all credible evidence, including but not limited to, any record of arrests and/or convictions of household members related to drug-related or violent criminal activity, and any eviction or notice to evict based on drug-related or violent criminal activity.
A record or records of arrest will not be used as the sole basis for the termination or proof that the participant engaged in disqualifying criminal activity.
In making its decision to terminate assistance, the PHA will consider alternatives as described in Section 12-II.C and other factors described in Sections 12-II.D and 12-II.E.
Upon consideration of such alternatives and factors, the PHA may, on a case-by-case basis, choose not to terminate assistance.
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Other Authorized Reasons for Termination of Assistance
[24 CFR 982.552(c), 24 CFR 5.2005(c), 24 CFR 984.101(d)] HUD permits the PHA to terminate assistance under a number of other circumstances. It is left to the discretion of the PHA whether such circumstances in general warrant consideration for the termination of assistance. As discussed further in section 12-II.E, the Violence against Women Act prohibits PHAs from considering incidents of, or criminal activity directly related to, domestic violence, dating violence, sexual assault, stalking, or human trafficking as reasons for terminating the assistance of a victim of such abuse.
Additionally, per 24 CFR 984.101(d), PHAs are no longer permitted to terminate assistance to a family due to the family’s failure to meet its obligations under the Family Self-Sufficiency (FSS) contract of participation.
HACN Policy
The PHA will terminate a family’s assistance if:
The family has failed to comply with any family obligations under the program.
See Exhibit 12-1 for a listing of family obligations and related PHA policies.
Any family member has been evicted from federally assisted housing in the last three years.
Any family member has committed fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program.
The family currently owes rent or other amounts to any PHA in connection with Section 8 or public housing assistance under the 1937 Act.
The family has not reimbursed any PHA for amounts 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.
The family has breached the terms of a repayment agreement entered into with the PHA.
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A family member has engaged in or threatened violent or abusive behavior toward PHA personnel.
Abusive or violent behavior towards PHA personnel includes verbal as well as physical abuse or violence. Use of racial epithets, or other language, written or oral, that is customarily used to intimidate may be considered abusive or violent behavior.
Threatening refers to oral or written threats or physical gestures that communicate intent to abuse or commit violence.
In making its decision to terminate assistance, the PHA will consider alternatives as described in Section 12-II.C and other factors described in Sections 12-II.D and 12-II.E.
Upon consideration of such alternatives and factors, the PHA may, on a case-by-case basis, choose not to terminate assistance.
Family Absence from the Unit [24 CFR 982.312]
The family may be absent from the unit for brief periods. The PHA must establish a policy on how long the family may be absent from the assisted unit. However, the family may not be absent from the unit for a period of more than 180 consecutive calendar days for any reason.
Absence in this context means that no member of the family is residing in the unit.
HACN Policy
If the family is absent from the unit for more than 180 consecutive calendar days, the family’s assistance will be terminated. Notice of termination will be sent in accordance with Section 12-II.F.
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Insufficient Funding [24 CFR 982.454]
The PHA may terminate HAP contracts if the PHA determines, in accordance with HUD requirements, that funding under the consolidated ACC is insufficient to support continued assistance for families in the program.
HACN Policy
The PHA will determine whether there is sufficient funding to pay for currently assisted families according to the policies in Part VIII of Chapter 16. If the PHA determines there is a shortage of funding, prior to terminating any HAP contracts, the PHA will determine if any other actions can be taken to reduce program costs.
In the event that the PHA decides to stop issuing vouchers as a result of a funding shortfall, and the PHA is not assisting the required number of special purpose vouchers (NED families, HUD-Veterans Affairs Supportive Housing (VASH) families, and family unification program (FUP) families), when the PHA resumes issuing vouchers, the PHA will issue vouchers first to the special purpose voucher families on its waiting list until it has reached the required number of special purpose vouchers, when applicable.
If after implementing all reasonable cost cutting measures there is not enough funding available to provide continued assistance for current participants, the PHA will terminate HAP contracts as a last resort.
Prior to terminating any HAP contracts, the PHA will inform the local HUD field office.
The PHA will terminate the minimum number needed in order to reduce HAP costs to a level within the PHA’s annual budget authority.
If the PHA must terminate HAP contracts due to insufficient funding, the PHA will do so in accordance with the following criteria and instructions:
Families who have been assisted in the HCV program the longest will be the first to be terminated, excluding families that include elderly or disabled family members.
Families comprising the required number of special purpose vouchers, including nonelderly disabled (NED), HUD-Veteran’s Affairs Supportive Housing (HUDVASH), and family unification program (FUP) will be the last to be terminated.
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PART II: APPROACH TO TERMINATION OF ASSISTANCE
12-II.A. OVERVIEW
The PHA is required by regulation to terminate a family’s assistance for certain actions or inactions of the family. For other types of actions or inactions of the family, the regulations give the PHA the authority to either terminate the family’s assistance or to take another action. This part discusses the various actions the PHA may choose to take when it has discretion, and outlines the criteria the PHA will use to make its decision about whether or not to terminate assistance. It also specifies the requirements for the notification to the family of the PHA’s intent to terminate assistance.
12-II.B. METHOD OF TERMINATION [24 CFR 982.552(a)(3)]
Termination of assistance for a participant may include any or all of the following:
• Terminating housing assistance payments under a current HAP contract, • Refusing to enter into a new HAP contract or approve a lease, or • Refusing to process a request for or to provide assistance under portability procedures. 12-II.C. ALTERNATIVES TO TERMINATION OF ASSISTANCE
Change in Household Composition
As a condition of continued assistance, the PHA may require that any household member who participated in or was responsible for an offense no longer resides in the unit [24 CFR 982.552(c)(2)(ii)].
HACN Policy
As a condition of continued assistance, the head of household must certify that the culpable family member has vacated the unit and will not be permitted to visit or to stay as a guest in the assisted unit. The family must present evidence of the former family member’s current address upon PHA request.
Repayment of Family Debts
HACN Policy
If a family owes amounts to the PHA, as a condition of continued assistance, the PHA will require the family to repay the full amount or to enter into a repayment agreement, within 30 days of receiving notice from the PHA of the amount owed. See Chapter 16 for policies on repayment agreements.
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12-II.D. CRITERIA FOR DECIDING TO TERMINATE ASSISTANCE
Evidence
For criminal activity, HUD permits the PHA to terminate assistance if a preponderance of the evidence indicates that a household member has engaged in the activity, regardless of whether the household member has been arrested or convicted [24 CFR 982.553(c)].
HACN Policy
The PHA will use the concept of the preponderance of the evidence as the standard for making all termination decisions.
Preponderance of the evidence is defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not.
Preponderance of the evidence may not be determined by the number of witnesses, but by the greater weight of all evidence
Use of Criminal Conviction Records after Admission [24 CFR 5.903] The regulation at 24 CFR 5.903 governs a PHA’s access to and use of criminal conviction records obtained from a “law enforcement agency” such as the National Crime Information Center (NCIC), police departments, and other law enforcement agencies that hold criminal conviction records. While the regulatory listing of permitted uses for these records includes PHA screening of applicants for admission to the HCV program, it specifically excludes the use of records for lease enforcement and eviction of HCV participants and excludes by omission a PHA’s use of records to terminate assistance for participants. While a PHA has regulatory authority to use criminal conviction records for the purpose of applicant screening for admission, there is no corresponding authority to use these records to check for criminal and illegal drug activity by participants, and therefore, PHAs may not use records for this purpose. The limitations, however, do not apply to criminal conviction information searches from non-federal sources (i.e., sources other than the “law enforcement agencies” defined in 24 CFR 5.902(b)).
There is no prohibition that bars a PHA from using non-federal sources to conduct criminal background checks of program participants.
Consideration of Circumstances [24 CFR 982.552(c)(2)(i)] The PHA is permitted, but not required, to consider all relevant circumstances when determining whether a family’s assistance should be terminated.
HACN Policy
The PHA will consider the following facts and circumstances when making its decision to terminate assistance:
The seriousness of the case, especially with respect to how it would affect other residents’ safety or property
The effects that termination of assistance may have on other members of the family who were not involved in the action or failure to act Item 2.
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The extent of participation or culpability of individual family members, including whether the culpable family member is a minor or a person with disabilities or (as discussed further in section 12-II.E) a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking The length of time since the violation occurred, including the age of the individual at the time of the conduct, as well as the family’s recent history and the likelihood of favorable conduct in the future
While a record or records of arrest will not be used as the sole basis for termination, an arrest may, however, trigger an investigation to determine whether the participant actually engaged in disqualifying criminal activity. As part of its investigation, the PHA may obtain the police report associated with the arrest and consider the reported circumstances of the arrest. The PHA may also consider:
Any statements made by witnesses or the participant not included in the police report
Whether criminal charges were filed
Whether, if filed, criminal charges were abandoned, dismissed, not prosecuted, or ultimately resulted in an acquittal
Any other evidence relevant to determining whether or not the participant engaged in disqualifying activity
Evidence of criminal conduct will be considered if it indicates a demonstrable risk to safety and/or property
In the case of drug or alcohol abuse, whether the culpable household member is participating in or has successfully completed a supervised drug or alcohol rehabilitation program or has otherwise been rehabilitated successfully The PHA will require the participant to submit evidence of the household member’s current participation in or successful completion of a supervised drug or alcohol rehabilitation program, or evidence of otherwise having been rehabilitated successfully.
In the case of program abuse, the dollar amount of the overpaid assistance and whether or not a false certification was signed by the family Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)]
If the family includes a person with disabilities, the PHA’s decision to terminate the family’s assistance is subject to consideration of reasonable accommodation in accordance with 24 CFR Part 8.
HACN Policy
If a family indicates that the behavior of a family member with a disability is the reason for a proposed termination of assistance, the PHA will determine whether the behavior is related to the disability. If so, upon the family’s request, the PHA will determine whether alternative measures are appropriate as a reasonable accommodation. The PHA will only consider accommodations that can reasonably be expected to address the behavior that is the basis of the proposed termination of assistance. See Chapter 2 for a discussion of reasonable accommodation.
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12-II.E. TERMINATIONS RELATED TO DOMESTIC VIOLENCE, DATING
VIOLENCE, SEXUAL ASSAULT, STALKING, OR HUMAN TRAFFICKING This section describes the protections against termination of assistance that the Violence against Women Act (VAWA) provides for victims of domestic violence, dating violence, sexual assault, stalking, and human trafficking. For general VAWA requirements, key VAWA definitions, and PHA policies pertaining to notification, documentation, and confidentiality, see section 16-IX of this plan.
VAWA Protections against Termination
VAWA provides four specific protections against termination of HCV assistance for victims of domestic violence, dating violence, sexual assault or stalking. (Note: The second, third, and fourth protections also apply to terminations of tenancy or occupancy by owners participating in the HCV program, as do the limitations discussed under the next heading.) • Although the VAWA 2022 statute does not specifically include human trafficking in the list of victims protected under VAWA, in 2022 HUD began including human trafficking as part of the list of victims protected under VAWA (as seen in Notices PIH 2022-06, PIH 2022-22, and PIH 2022-24). In the absence of a final rule implementing VAWA 2022 and to mirror HUD’s recent usage, this policy includes human trafficking in addition to domestic violence, dating violence, sexual assault, and stalking anywhere such a list appears.
First, VAWA provides that a PHA may not terminate assistance to a family that moves out of an assisted unit in violation of the lease, with or without prior notification to the PHA, if the move occurred to protect the health or safety of a family member who is or has been the victim of domestic violence, dating violence, sexual assault stalking, or human trafficking, and who reasonably believed they were imminently threatened by harm from further violence if they remained in the unit [see 24 CFR 982.354(b)(4)].
Second, it provides that an incident or incidents of actual or threatened domestic violence, dating violence, sexual assault, stalking, or human trafficking may not be construed either as a serious or repeated lease violation by the victim or as good cause to terminate the assistance of the victim [see 24 CFR 5.2005(c)(1)].
Third, it provides that criminal activity directly related to domestic violence, dating violence, sexual assault, stalking, or human trafficking may not be construed as cause for terminating the assistance of a tenant if a member of the tenant’s household, a guest, or another person under the tenant’s control is the one engaging in the criminal activity and the tenant or affiliated individual or other individual is the actual or threatened victim of the domestic violence, dating violence, sexual assault, stalking, or human trafficking [see 24 CFR 5.2005(c)(2)].
Fourth, it gives PHAs the authority to terminate assistance to any tenant or lawful occupant who engages in criminal acts of physical violence against family members or others without terminating assistance to, or otherwise penalizing, the victim of the violence [24 CFR 5.2009(a)].
PHAs and owners may not coerce, intimidate, threaten, interfere with, or retaliate against any person who exercises or assists or encourages a person to exercise any rights or protections under VAWA [FR Notice 1/4/23].
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Limitations on VAWA Protections [24 CFR 5.2005(d) and (e)] VAWA does not limit the authority of a PHA to terminate the assistance of a victim of abuse for reasons unrelated to domestic violence, dating violence, sexual assault, stalking, or human trafficking so long as the PHA does not subject the victim to a more demanding standard than it applies to other program participants [24 CFR 5.2005(d)(1)].
Likewise, VAWA does not limit the authority of a PHA to terminate the assistance of a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking if the PHA can demonstrate an actual and imminent threat to other tenants or those employed at or providing service to the assisted property if the victim is not terminated from assistance [24 CFR
5.2005(d)(2)].
HUD regulations define actual and imminent threat to mean words, gestures, actions, or other indicators of a physical threat that (a) is real, (b) would occur within an immediate time frame, and (c) could result in death or serious bodily harm [24 CFR 5.2005(d)(2) and (e)]. In determining whether an individual would pose an actual and imminent threat, the factors to be considered include:
• The duration of the risk
• The nature and severity of the potential harm
• The likelihood that the potential harm will occur
• The length of time before the potential harm would occur [24 CFR 5.2005(e)] In order to demonstrate an actual and imminent threat, the PHA must have objective evidence of words, gestures, actions, or other indicators. Even when a victim poses an actual and imminent threat, however, HUD regulations authorize a PHA to terminate the victim’s assistance “only when there are no other actions that could be taken to reduce or eliminate the threat” [24 CFR
5.2005(d)(3)].
HACN Policy
In determining whether a program participant who is a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking is an actual and imminent threat to other tenants or those employed at or providing service to a property, the PHA will consider the following, and any other relevant, factors:
Whether the threat is toward an employee or tenant other than the victim of domestic violence, dating violence, sexual assault, stalking or human trafficking Whether the threat is a physical danger beyond a speculative threat Whether the threat is likely to happen within an immediate time frame Whether the threat to other tenants or employees can be eliminated in some other way, such as by helping the victim relocate to a confidential location or seeking a legal remedy to prevent the perpetrator from acting on the threat If the participant wishes to contest the PHA’s determination that they are an actual and imminent threat to other tenants or employees, the participant may do so as part of the informal hearing.
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Documentation of Abuse [24 CFR 5.2007]
HACN Policy
When an individual facing termination of assistance for reasons related to domestic violence, dating violence, sexual assault, stalking, or human trafficking claims protection under VAWA, the PHA will request that the individual provide documentation supporting the claim in accordance with the policies in section 16-IX.D of this plan.
The PHA reserves the right to waive the documentation requirement if it determines that a statement or other corroborating evidence from the individual will suffice. In such cases the PHA will document the waiver in the individual’s file.
Terminating the Assistance of a Domestic Violence Perpetrator Although VAWA provides protection against termination of assistance for victims of domestic violence, it does not provide such protection for perpetrators. VAWA gives the PHA the explicit authority to “terminate assistance to any individual who is a tenant or lawful occupant and who engages in criminal acts of physical violence against family members or others” without terminating assistance to “or otherwise penalizing the victim of such violence who is also a tenant or lawful occupant” [24 CFR 5.2009(a)]. This authority is not dependent on a bifurcated lease or other eviction action by an owner against an individual family member. Further, this authority supersedes any local, state, or other federal law to the contrary. However, if the PHA chooses to exercise this authority, it must follow any procedures prescribed by HUD or by applicable local, state, or federal law regarding termination of assistance. This means that the PHA must follow the same rules when terminating assistance to an individual as it would when terminating the assistance of an entire family [FR Notice 3/16/07].
If the perpetrator remains in the unit, the PHA continues to pay the owner until the PHA terminates the perpetrator from the program. The PHA must not stop paying HAP until 30 days after the owner bifurcates the lease to evict the perpetrator. The PHA may pay HAP for the full month if the 30-day period will end mid-month [Notice PIH 2017-08].
If the perpetrator is the only participant eligible to receive assistance, the PHA will provide any remaining participant a chance to establish eligibility for the program. If the remaining participant cannot do so, the PHA will provide them with 30 days to establish eligibility for another housing program prior to termination of the HAP contract.
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HACN Policy
The PHA will terminate assistance to a family member if the PHA determines that the family member has committed criminal acts of physical violence against other family members or others. This action will not affect the assistance of the remaining, nonculpable family members.
In making its decision, the PHA will consider all credible evidence, including, but not limited to, a signed certification (form HUD-5382) or other documentation of abuse submitted to the PHA by the victim in accordance with this section and section 16-IX.D.
The PHA will also consider the factors in section 12-II.D. Upon such consideration, the PHA may, on a case-by-case basis, choose not to terminate the assistance of the culpable family member.
If the PHA does terminate the assistance of the culpable family member, it will do so in accordance with applicable law, HUD regulations, and the policies in this plan.
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12-II.F. TERMINATION NOTICE
HUD regulations require PHAs to provide written notice of termination of assistance to a family only when the family is entitled to an informal hearing. However, since the family’s HAP contract and lease will also terminate when the family’s assistance terminates [form HUD52641], it is a good business practice to provide written notification to both owner and family anytime assistance will be terminated, whether voluntarily or involuntarily.
HACN Policy
Whenever a family’s assistance will be terminated, the PHA will send a written notice of termination to the family and to the owner. The PHA will also send a form HUD-5382 and form HUD-5380 to the family with the termination notice. The notice will state the date on which the termination will become effective. This date generally will be at least 30 calendar days following the date of the termination notice, but exceptions will be made whenever HUD rules, other PHA policies, or the circumstances surrounding the termination require.
When the PHA notifies an owner that a family’s assistance will be terminated, the PHA will, if appropriate, advise the owner of their right to offer the family a separate, unassisted lease.
If a family whose assistance is being terminated is entitled to an informal hearing, the notice of termination that the PHA sends to the family must meet the additional HUD and PHA notice requirements discussed in section 16-III.C of this plan. VAWA requires PHAs to provide notice of VAWA rights and the HUD 5382 form when a PHA terminates a household’s housing benefits.
HACN Policy
Whenever the PHA decides to terminate a family’s assistance because of the family’s action or failure to act, the PHA will include in its termination notice the VAWA information described in section 16-IX.C of this plan and a form HUD-5382 and form HUD-5380. The PHA will request in writing that a family member wishing to claim protection under VAWA notify the PHA within 14 business days.
Still other notice requirements apply in two situations:
• If a criminal record is the basis of a family’s termination, the PHA must provide a copy of the record to the subject of the record and the tenant so that they have an opportunity to dispute the accuracy and relevance of the record [24 CFR 982.553(d)(2)]. • If immigration status is the basis of a family’s termination, as discussed in section 12-I.D, the special notice requirements in section 16-III.D must be followed.
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PART III: TERMINATION OF TENANCY BY THE OWNER
12-III.A. OVERVIEW
Termination of an assisted tenancy is a matter between the owner and the family; the PHA is not directly involved. However, the owner is under some constraints when terminating an assisted tenancy. Termination of tenancy for certain reasons will also result in termination of assistance as discussed in this section.
12-III.B. GROUNDS FOR OWNER TERMINATION OF TENANCY [24 CFR 982.310, 24 CFR 5.2005(c), and Form HUD-52641-A, Tenancy Addendum]
During the term of the lease, the owner is not permitted to terminate the tenancy except for serious or repeated violations of the lease, certain violations of state or local law, or other good cause.
Serious or Repeated Lease Violations
The owner is permitted to terminate the family’s tenancy for serious or repeated violations of the terms and conditions of the lease, except when the violations are related to incidents of actual or threatened domestic violence, dating violence, sexual assault, stalking, and human trafficking and the victim is protected from eviction by the Violence against Women Act of 2013 (see section 12-II.E). A serious lease violation includes failure to pay rent or other amounts due under the lease. However, the PHA’s failure to make a HAP payment to the owner is not a violation of the lease between the family and the owner.
Violation of Federal, State, or Local Law
The owner is permitted to terminate the tenancy if a family member violates federal, state, or local law that imposes obligations in connection with the occupancy or use of the premises.
Criminal Activity or Alcohol Abuse
The owner may terminate tenancy during the term of the lease if any covered person—meaning any member of the household, a guest, or another person under the tenant’s control—commits any of the following types of criminal activity (for applicable definitions see 24 CFR 5.100):
• Any criminal activity that threatens the health or safety of, or the right to peaceful enjoyment of the premises by, other residents (including property management staff residing on the premises)
• Any criminal activity that threatens the health or safety of, or the right to peaceful enjoyment of their residences by, persons residing in the immediate vicinity of the premises • Any violent criminal activity on or near the premises • Any drug-related criminal activity on or near the premises However, in the case of criminal activity directly related to domestic violence, dating violence, sexual assault, stalking, or human trafficking if the tenant or an affiliated individual is the victim, the criminal activity may not be construed as cause for terminating the victim’s tenancy (see section 12-II.E).
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The owner may terminate tenancy during the term of the lease if any member of the household is:
• Fleeing to avoid prosecution, custody, or confinement after conviction for a crime or an attempt to commit a crime that is a felony under the laws of the place from which the individual flees, or that, in the case of the State of New Jersey, is a high misdemeanor; or • Violating a condition of probation or parole imposed under federal or state law.
The owner may terminate tenancy during the term of the lease if any member of the household has engaged in abuse of alcohol that threatens the health, safety, or right to peaceful enjoyment of the premises by other residents.
Evidence of Criminal Activity
The owner may terminate tenancy and evict by judicial action a family for criminal activity by a covered person if the owner determines the covered person has engaged in the criminal activity, regardless of whether the covered person has been arrested or convicted for such activity and without satisfying the standard of proof used for a criminal conviction. This is the case except in certain incidents where the criminal activity directly relates to domestic violence, dating violence, sexual assault, stalking, or human trafficking, and the tenant or an affiliated individual is the victim or threatened victim of the domestic violence, dating violence, sexual assault, stalking, or human trafficking.
Other Good Cause
During the initial lease term, the owner may not terminate the tenancy for “other good cause” unless the owner is terminating the tenancy because of something the family did or failed to do.
During the initial lease term or during any extension term, other good cause includes the disturbance of neighbors, destruction of property, or living or housekeeping habits that cause damage to the unit or premises.
After the initial lease term, “other good cause” for termination of tenancy by the owner includes:
• Failure by the family to accept the offer of a new lease or revision • The owner’s desire to use the unit for personal or family use, or for a purpose other than as a residential rental unit
• A business or economic reason for termination of the tenancy (such as sale of the property, renovation of the unit, or desire to lease the unit at a higher rent) After the initial lease term, the owner may give the family notice at any time, in accordance with the terms of the lease.
If a property is subject to foreclosure, during the term of the lease, the new owner of the property does not have good cause to terminate the tenant’s lease, unless the new owner will occupy the unit as their primary residence and has provided the tenant with at least a 90-day notice. In that case, the lease may be terminated effective on the date of sale, although the tenant is still entitled to a 90-day notice to vacate. See Section 13-II.G for a discussion of PHA policies relating to units in foreclosure.
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12-III.C. EVICTION [24 CFR 982.310(e) and (f) and Form HUD-52641-A, Tenancy Addendum]
The owner must give the tenant a written notice that specifies the grounds for termination of tenancy during the term of the lease. The tenancy does not terminate before the owner has given this notice, and the notice must be given at or before commencement of the eviction action.
The notice of grounds may be included in, or may be combined with, any owner eviction notice to the tenant.
Owner eviction notice means a notice to vacate, or a complaint or other initial pleading used under state or local law to commence an eviction action. The owner may only evict the tenant from the unit by instituting a court action. The owner must give the PHA a copy of any eviction notice at the same time the owner notifies the family. The family is also required to give the PHA a copy of any eviction notice (see Chapter 5).
HACN Policy
If the eviction action is finalized in court, the owner must provide the PHA with documentation related to the eviction, including notice of the eviction date, as soon as possible, but no later than 5 business days following the court-ordered eviction.
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12-III.D. DECIDING WHETHER TO TERMINATE TENANCY [24 CFR 982.310(h), 24 CFR 982.310(h)(4)]
An owner who has grounds to terminate a tenancy is not required to do so, and may consider all of the circumstances relevant to a particular case before making a decision. These might include:
• The nature of the offending action
• The seriousness of the offending action;
• The effect on the community of the termination, or of the owner’s failure to terminate the tenancy;
• The extent of participation by the leaseholder in the offending action; • The effect of termination of tenancy on household members not involved in the offending activity;
• The demand for assisted housing by families who will adhere to lease responsibilities; • The extent to which the leaseholder has shown personal responsibility and taken all reasonable steps to prevent or mitigate the offending action; • The effect of the owner’s action on the integrity of the program.
The owner may require a family to exclude a household member in order to continue to reside in the assisted unit, where that household member has participated in or been culpable for action or failure to act that warrants termination.
In determining whether to terminate tenancy for illegal use of drugs or alcohol abuse by a household member who is no longer engaged in such behavior, the owner may consider whether such household member is participating in or has successfully completed a supervised drug or alcohol rehabilitation program, or has otherwise been rehabilitated successfully (42 U.S.C. 13661). For this purpose, the owner may require the tenant to submit evidence of the household member's current participation in, or successful completion of, a supervised drug or alcohol rehabilitation program or evidence of otherwise having been rehabilitated successfully.
The owner’s termination of tenancy actions must be consistent with the fair housing and equal opportunity provisions in 24 CFR 5.105.
An owner’s decision to terminate tenancy for incidents related to domestic violence, dating violence, sexual assault, stalking, or human trafficking is limited by the Violence against Women Act (VAWA) and the conforming regulations in 24 CFR Part 5, Subpart L. (See section 12-II.E.) 12-III.E. EFFECT OF TENANCY TERMINATION ON THE FAMILY’S ASSISTANCE If a termination is not due to a serious or repeated violation of the lease, and if the PHA has no other grounds for termination of assistance, the PHA may issue a new voucher so that the family can move with continued assistance (see Chapter 10).
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EXHIBIT 12-1: STATEMENT OF FAMILY OBLIGATIONS
Following is a listing of a participant family’s obligations under the HCV program:
• The family must supply any information that 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 deficiencies under the National Standards for the Physical Inspection of Real Estate (NSPIRE) by the family caused by failure to pay tenant-provided utilities or appliances, or damages to the dwelling unit or premises beyond ordinary wear and tear caused by any member of the household or guest.
HACN Policy
Damages beyond ordinary wear and tear will be considered to be damages which could be assessed against the security deposit under state law or in court practice. • 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.
• The family must not commit any serious or repeated violation of the lease.
HACN 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, stalking, or human trafficking will not be construed as serious or repeated lease violations by the victim [see 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.
HACN 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.
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• 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.
HACN 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). • The family must not sublease the unit, assign the lease, or transfer the unit.
HACN 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.
HACN 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).
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• 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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Chapter 13
OWNERS
INTRODUCTION
Owners play a major role in the HCV program by supplying decent, safe, and sanitary housing for participating families.
The term “owner” refers to any person or entity with the legal right to lease or sublease a unit to a participant in the HCV program [24 CFR 982.4(b)]. The term “owner” includes a principal or other interested party [24 CFR 982.453; 24 CFR 982.306(f)], such as a designated agent of the owner.
Owners have numerous responsibilities under the program, including screening and leasing to families, maintaining the dwelling unit, enforcing the lease, and complying with various contractual obligations.
The chapter is organized in two parts:
Part I: Owners in the HCV Program. This part discusses the role of an owner in the PHA’s HCV program and highlights key owner rights and responsibilities.
Part II: HAP Contracts. This part explains provisions of the HAP contract and the relationship between the PHA and the owner as expressed in the HAP contract.
For detailed information about HCV program responsibilities and processes, including PHA policies in key areas, owners will need to refer to several other chapters in this plan. Where appropriate, Chapter 13 will reference the other chapters.
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PART I. OWNERS IN THE HCV PROGRAM
13-I.A. OWNER RECRUITMENT AND RETENTION [HCV GB, pp. 2-4 to 2-6; HCV Landlord Strategy Guidebook for PHAs]
Recruitment
PHAs are responsible for ensuring that very low-income families have access to all types and ranges of affordable housing in the PHA’s jurisdiction, particularly housing outside areas of poverty or minority concentration. A critical element in fulfilling this responsibility is for the PHA to ensure that a sufficient number of owners, representing all types and ranges of affordable housing in the PHA’s jurisdiction, are willing to participate in the HCV program.
To accomplish this objective, PHAs must identify and recruit new owners to participate in the program.
If the PHA will be conducting outreach events, the PHA must ensure that notices and communications during outreach events are provided in a manner that is effective for persons with hearing, visual, and other communications-related disabilities. PHAs must also take reasonable steps to ensure meaningful access to programs to persons with limited English proficiency.
HACN Policy
The PHA will conduct owner outreach to ensure that owners are familiar with the program and its advantages. The PHA will actively recruit property owners with property located outside areas of poverty and minority concentration. These outreach strategies will include:
Distributing printed material about the program to property owners and managers Contacting property owners and managers by phone or in-person Holding owner recruitment/information meetings at least once a year Participating in community-based organizations comprised of private property and apartment owners and managers
Developing working relationships with owners, apartment associations, industry investor groups, and real estate brokers associations
To the extent practical, partnering with and attending events hosted by other area agencies to deliver information about the HCV program
Outreach strategies will be monitored for effectiveness and adapted accordingly.
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Retention
In addition to recruiting owners to participate in the HCV program, the PHA must also provide the kind of customer service that will encourage participating owners to remain active in the program.
HACN Policy
All PHA activities that may affect an owner’s ability to lease a unit will be processed as rapidly as possible, in order to minimize vacancy losses for owners.
The PHA will provide owners with a handbook that explains the program, including HUD and PHA policies and procedures, in easy-to-understand language.
The PHA will give special attention to helping new owners succeed through activities such as:
Providing the owner with a designated PHA contact person.
Coordinating inspection and leasing activities between the PHA, the owner, and the family.
Initiating telephone contact with the owner to explain the inspection process and providing an inspection booklet and other resource materials about HUD housing quality standards.
Providing other written information about how the program operates through a landlord handbook, including answers to frequently asked questions.
Contacting owners via emails or texts to disseminate information.
Additional services may be undertaken on an as-needed basis, and as resources permit.
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13-I.B. BASIC HCV PROGRAM REQUIREMENTS
HUD requires the PHA to assist families in their housing search by providing the family with a list of landlords or other parties known to the PHA who may be willing to lease a unit to the family, or to help the family find a unit. Although the PHA cannot maintain a list of owners that are pre-qualified to participate in the program, owners may indicate to the PHA their willingness to lease a unit to an eligible HCV family, or to help the HCV family find a unit [24 CFR 982.301(b)(11)].
HACN Policy
Owners that wish to indicate their willingness to lease a unit to an eligible HCV family or to help the HCV family find a unit must notify the PHA. The PHA will maintain a listing of such owners and provide this listing to the HCV family as part of the informational briefing packet.
When a family approaches an owner to apply for tenancy, the owner is responsible for screening the family and deciding whether to lease to the family, just as the owner would with any potential unassisted tenant. The PHA has no liability or responsibility to the owner or other persons for the family’s behavior or suitability for tenancy. See chapters 3 and 9 for more detail on tenant family screening policies and process.
If the owner is willing, the family and the owner must jointly complete a Request for Tenancy Approval (RTA, Form HUD 52517), which constitutes the family's request for assistance in the specified unit, and which documents the owner’s willingness to lease to the family and to follow the program’s requirements. When submitted to the PHA, this document is the first step in the process of obtaining approval for the family to receive the financial assistance it will need in order to occupy the unit. Also submitted with the RTA is a copy of the owner’s proposed dwelling lease, including the HUD-required Tenancy Addendum (Form HUD-52641-A). See Chapter 9 for more detail on request for tenancy approval policies and process.
HUD regulations stipulate requirements for the approval of an assisted tenancy.
The owner must be qualified to participate in the program [24 CFR 982.306]. Some owners are precluded from participating in the program, or from renting to a particular family, either because of their past history with this or another federal housing program, or because of certain conflicts of interest. Owner qualifications are discussed later in this chapter.
The selected unit must be of a type that is eligible for the program [24 CFR 982.305(a)]. Certain types of dwelling units cannot be assisted under the HCV program. Other types may be assisted under certain conditions. See chapter 9 for more detail on unit eligibility policies and process.
The selected unit must meet HUD’s National Standards for the Physical Inspection of Real Estate (NSPIRE) and/or equivalent state or local standards approved by HUD [24 CFR 982.305(a)]. The PHA will inspect the owner’s dwelling unit at least biennially to ensure that the unit continues to meet inspection requirements. See Chapter 8 for a discussion of the NSPIRE standards and policies for inspections at initial lease-up and throughout the family’s tenancy.
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The PHA must determine that the proposed rent for the unit is reasonable [24 CFR 982.305(a)].
The rent must be reasonable in relation to comparable unassisted units in the area and must not be in excess of rents charged by the owner for comparable, unassisted units on the premises. See chapter 8 for a discussion of requirements and policies on rent reasonableness, rent comparability and the rent reasonableness determination process.
At initial lease-up of a unit, if the gross rent exceeds the applicable payment standard, the PHA must ensure that the family share does not exceed 40 percent of the family’s monthly adjusted income [24 CFR 982.305(a)]. See chapter 6 for a discussion of the calculation of family income, family share of rent and HAP.
The dwelling lease must comply with all program requirements [24 CFR 982.308]. Owners are encouraged to use their standard leases when renting to an assisted family. The HUD Tenancy Addendum includes the HUD requirements governing the tenancy and must be added word-forword to the owner’s lease. See chapter 9 for a discussion of the dwelling lease and tenancy addendum, including lease terms and provisions.
The PHA and the owner must execute a Housing Assistance Payment (HAP) Contract (Form HUD-52641). The HAP contract format is prescribed by HUD. See chapter 9 for a discussion of the HUD requirements for execution of the HAP contract.
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13-I.C. OWNER RESPONSIBILITIES [24 CFR 982.452]
The basic owner responsibilities in the HCV program are outlined in the regulations as follows:
• Complying with all of the owner’s obligations under the housing assistance payments (HAP) contract and the lease
• Performing all management and rental functions for the assisted unit, including selecting a voucher-holder to lease the unit, and deciding if the family is suitable for tenancy of the unit • Maintaining the unit in accordance with the National Standards for the Physical Inspection of Real Estate (NSPIRE), including performance of ordinary and extraordinary maintenance • Complying with equal opportunity requirements
• Preparing and furnishing to the PHA information required under the HAP contract • Collecting the security deposit, the tenant rent, and any charges for unit damage by the family.
• Enforcing tenant obligations under the dwelling lease • Paying for utilities and services that are not the responsibility of the family as specified in the lease
• Allowing reasonable modifications to a dwelling unit occupied or to be occupied by a disabled person [24 CFR 100.203]
• Complying with the Violence against Women Act (VAWA) when screening prospective HCV tenants or terminating the tenancy of an HCV family [see 24 CFR Part 5, Subpart L; 24 CFR 982.310(h)(4); 24 CFR 982.452(b)(1); and FR Notice 1/4/23] Item 2.
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13-I.D. OWNER QUALIFICATIONS
The PHA does not formally approve an owner to participate in the HCV program. However, there are a number of criteria where the PHA may deny approval of an assisted tenancy based on past owner behavior, conflict of interest, or other owner-related issues. No owner has a right to participate in the HCV program [24 CFR 982.306(e)].
Owners Barred from Participation [24 CFR 982.306(a) and (b)] The PHA must not approve the assisted tenancy if the PHA has been informed that the owner has been debarred, suspended, or subject to a limited denial of participation under 24 CFR part 24.
HUD may direct the PHA not to approve a tenancy request if a court or administrative agency has determined that the owner violated the Fair Housing Act or other federal equal opportunity requirements, or if such an action is pending.
Leasing to Relatives [24 CFR 982.306(d), HCV GB p. 11-2] The PHA must not approve a tenancy if the owner is the parent, child, grandparent, grandchild, sister, or brother of any member of the family. The PHA may make an exception as a reasonable accommodation for a family member with a disability. The owner is required to certify that no such relationship exists. This restriction applies at the time that the family receives assistance under the HCV program for occupancy of a particular unit. Current contracts on behalf of owners and families that are related may continue, but any new leases or contracts for these families may not be approved.
Conflict of Interest [24 CFR 982.161; HCV GB p. 8-19; Form HUD-52641, Section 13] The PHA must not approve a tenancy in which any of the following classes of persons has any interest, direct or indirect, during tenure or for one year thereafter:
• Any present or former member or officer of the PHA (except a participant commissioner) • Any employee of the PHA, or any contractor, subcontractor or agent of the PHA, who formulates policy or who influences decisions with respect to the programs • Any public official, member of a governing body, or State or local legislator, who exercises functions or responsibilities with respect to the programs • Any member of the Congress of the United States
Such “covered individual” may not have any direct or indirect interest in the HAP contract or in any benefits or payments under the contract (including the interest of an immediate family member of such covered individual) while such person is a covered individual or for one year thereafter.
Immediate family member means the spouse, parent (including a stepparent), child (including a stepchild), grandparent, grandchild, sister, or brother (including a stepsister or stepbrother) of any covered individual.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles