PART III: VETERANS AFFAIRS SUPPORTIVE HOUSING (VASH) PROGRAM 19-III.A. OVERVIEW
Since 2008, HCV program funding has provided rental assistance under a supportive housing program for homeless veterans. The Veterans Affairs Supportive Housing (VASH) program combines HCV rental assistance with case management and clinical services provided by the Department of Veterans Affairs (VA) at VA medical centers (VAMCs) and Community-Based Outpatient Clinics (CBOCs), or through a designated service provider (DSP) as approved by the VA Secretary. Eligible families are homeless veterans and their families that agree to participate in VA case management and are referred to the VAMC’s partner PHA for HCV assistance. The VAMC or DSP’s responsibilities include:
• Screening homeless veterans to determine whether they meet VASH program participation criteria;
• Referring homeless veterans to the PHA;
- The term homeless veteran means a veteran who is homeless (as that term is defined in subsection (a) or (b) of Section 103 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302)). See 38 U.S.C. 2002.
• Providing appropriate treatment and supportive services to potential VASH participants, if needed, prior to PHA issuance of a voucher;
• Providing housing search assistance to VASH participants; • Identifying the social service and medical needs of VASH participants, and providing or ensuring the provision of regular ongoing case management, outpatient health services, hospitalization, and other supportive services as needed throughout the veterans’ participation period; and
• Maintaining records and providing information for evaluation purposes, as required by HUD and the VA.
VASH vouchers are awarded noncompetitively based on geographic need and PHA administrative performance. Eligible PHAs must be located within the jurisdiction of a VAMC and in an area of high need based on data compiled by HUD and the VA. When Congress funds a new allocation of VASH vouchers, HUD invites eligible PHAs to apply for a specified number of vouchers.
Generally, the HUD-VASH program is administered in accordance with regular HCV program requirements. However, HUD is authorized to waive or specify alternative requirements to allow PHAs to effectively deliver and administer VASH assistance. Alternative requirements are established in the HUD-VASH Operating Requirements, which were originally published in the Federal Register on May 6, 2008, and updated September 27, 2021. Unless expressly waived by HUD, all regulatory requirements and HUD directives regarding the HCV program are applicable to VASH vouchers, including the use of all HUD-required contracts and other forms, and all civil rights and fair housing requirements. In addition, the PHA may request additional statutory or regulatory waivers that it determines are necessary for the effective delivery and administration of the program.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
The VASH program is administered in accordance with applicable Fair Housing requirements since civil rights requirements cannot be waived under the program. These include applicable authorities under 24 CFR 5.105(a) and 24 CFR 982.53 including, but not limited to, the Fair Housing Act, Section 504 of the Rehabilitation Act of 1973, Title VI of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Age Discrimination Act and all PHA policies as outlined in Chapter 2 of this document.
When HUD-VASH recipients include veterans with disabilities or family members with disabilities, reasonable accommodation requirements in Part II of Chapter 2 of this policy apply. 19-III.B. REFERRALS [FR Notice 9/27/21 and HUD-VASH Qs and As] VAMC case managers will screen all families in accordance with VA screening criteria and refer eligible families to the PHA for determination of program eligibility and voucher issuance. The PHA has no role in determining or verifying the veteran’s eligibility under VA screening criteria, including determining the veteran’s homelessness status. The PHA must accept referrals from the partnering VAMC and must maintain written documentation of referrals in VASH tenant files. Upon turnover, VASH vouchers must be issued to eligible veteran families as identified by the VAMC.
HACN Policy
In order to expedite the screening process, the PHA will provide all forms and a list of documents required for the VASH application to the VAMC. Case managers will work with veterans to fill out the forms and compile all documents prior to meeting with the PHA and submitting an application. When feasible, the VAMC case manager should email or fax copies of all documents to the PHA prior to the meeting in order to allow the PHA time to review them and start a file for the veteran.
After the VAMC has given the PHA a complete referral, the PHA will perform an eligibility screening within five business days of receipt of a VAMC referral.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
19-III.C. HCV PROGRAM ELIGIBILITY [FR Notice 9/27/21]
Eligible participants are homeless veterans and their families who agree to participate in case management from the VAMC.
• A VASH Veteran or veteran family refers to either a single veteran or a veteran with a household composed of two or more related persons. It also includes one or more eligible persons living with the veteran who are determined to be important to the veteran’s care or well-being.
• A veteran for the purpose of VASH is a person whose length of service meets statutory requirements, and who served in the active military, naval, or air service, was discharged or released under conditions other than dishonorable, and is eligible for VA health care.
Under VASH, PHAs do not have authority to determine family eligibility in accordance with HCV program rules and PHA policies. The only reasons for denial of assistance by the PHA are failure to meet the income eligibility requirements and/or that a family member is subject to a lifetime registration requirement under a state sex offender registration program. Under portability, the receiving PHA must also comply with these VASH screening requirements.
Social Security Numbers
When verifying Social Security numbers (SSNs) for homeless veterans and their family members, an original document issued by a federal or state government agency, which contains the name and SSN of the individual along with other identifying information of the individual, is acceptable in accordance with Section 7-II.B. of this policy.
In the case of the homeless veteran, the PHA must accept the Certificate of Release or Discharge from Active Duty (DD-214) or the VA-verified Application for Health Benefits (10-10EZ) as verification of SSN and cannot require the veteran to provide a Social Security card. A VAissued identification card may also be used to verify the SSN of a homeless veteran.
Proof of Age
The DD-214 or 10-10EZ must be accepted as proof of age in lieu of birth certificates or other PHA-required documentation as outlined in Section 7-II.C. of this policy. A VA-issued identification card may also be used to verify the age of a homeless veteran.
Photo Identification
A VA-issued identification card must be accepted in lieu of another type of government-issued photo identification. These cards also serve as verification of SSNs and date of birth.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
Income Eligibility
The PHA must determine income eligibility for VASH families in accordance with 24 CFR 982.201 and policies in Section 3-II.A. If the family is over-income based on the most recently published income limits for the family size, the family will be ineligible for HCV assistance.
While income-targeting does not apply to VASH vouchers, the PHA may include the admission of extremely low-income VASH families in its income targeting numbers for the fiscal year in which these families are admitted.
HACN Policy
While income-targeting requirements will not be considered by the PHA when families are referred by the partnering VAMC, the PHA will include any extremely low-income VASH families that are admitted in its income targeting numbers for the fiscal year in which these families are admitted.
Screening
The PHA may not screen any potentially eligible family members or deny assistance for any grounds permitted under 24 CFR 982.552 and 982.553 with one exception: the PHAs is still required to prohibit admission if any member of the household is subject to a lifetime registration requirement under a state sex offender registration program. Accordingly, with the exception of denial for registration as a lifetime sex offender under state law and PHA policies on how sex offender screenings will be conducted, PHA policy in Sections 3-III.B. through 3-III.E. do not apply to VASH. The prohibition against screening families for anything other than lifetime sex offender status applies to all family members, not just the veteran.
If a family member is subject to lifetime registration under a state sex offender registration program, the remaining family members may be served if the family agrees to remove the sex offender from its family composition. This is true unless the family member subject to lifetime registration under a state sex offender registration program is the homeless veteran, in which case the family would be denied admission to the program [New HCV GB, HUD-VASH, p. 6].
Denial of Assistance [Notice PIH 2008-37]
Once a veteran is referred by the VAMC, the PHA must either issue a voucher or deny assistance. If the PHA denies assistance, it must provide the family with prompt notice of the decision and a brief statement of the reason for denial in accordance with Section 3-III.F. Like in the standard HCV program, the family must be provided with the opportunity for an informal review in accordance with policies in Section 3-III.F. In addition, a copy of the denial notice must be sent to the VAMC case manager.
Item 2.
Housing Authority
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City of Needles
19-III.D. CHANGES IN FAMILY COMPOSITION
Adding Family Members [FR Notice 9/27/21]
When adding a family member after the family has been admitted to the program, PHA policies in Section 3-II.B. apply. Other than the birth, adoption, or court-awarded custody of a child, the PHA must approve additional family members and will apply its regular screening criteria in doing so.
Remaining Family Members [HUD-VASH Qs and As]
If the homeless veteran dies while the family is being assisted, the voucher would remain with the remaining members of the tenant family. The PHA may use one of its own regular vouchers, if available, to continue assisting this family and free up a VASH voucher for another VASHeligible family. If a regular voucher is not available, the family would continue utilizing the VASH voucher. Once the VASH voucher turns over, however, it must go to a homeless veteran family.
Family Break Up [HUD-VASH Qs and As]
In the case of divorce or separation, since the set-aside of VASH vouchers is for veterans, the voucher must remain with the veteran. This overrides the PHA’s policies in Section 3-I.C. on how to determine who remains in the program if a family breaks up.
Item 2.
Housing Authority
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City of Needles
19-III.E. LEASING [FR Notice 9/27/21]
Waiting List
The PHA does not have the authority to maintain a waiting list or apply local preferences for HUD–VASH vouchers. Policies in Chapter 4 relating to applicant selection from the waiting list, local preferences, special admissions, cross-listing, and opening and closing the waiting list do not apply to VASH vouchers.
Exception Payment Standards
To assist VASH participants in finding affordable housing, especially in competitive markets, HUD allows PHAs to establish a HUD-VASH exception payment standard. PHAs may go up to but no higher than 120 percent of the published area-wide fair market rent (FMR) or small area fair market rent (SAFMR) specifically for VASH families. PHAs who want to establish a VASH exception payment standard over 120 percent must still request a waiver from HUD through the regular waiver process outlined in Notice PIH 2018-16.
Voucher Issuance
Unlike the standard HCV program which requires an initial voucher term of at least 60 days, VASH vouchers must have an initial search term of at least 120 days. PHA policies on extensions as outlined in Section 5-II.E. will apply.
HACN Policy
All VASH vouchers will have an initial term of 120 calendar days.
The family must submit a Request for Tenancy Approval and proposed lease within the 120-day period unless the PHA grants an extension.
The PHA must track issuance of HCVs for families referred by the VAMC or DSP in PIC as required in Notice PIH 2011-53.
Initial Lease Term
Unlike in the standard the HCV program, VASH voucher holders may enter into an initial lease that is for less than 12 months. Accordingly, PHA policy in Section 9-I.E., Term of Assisted Tenancy, does not apply.
Ineligible Housing [FR Notice 6/18/14]
Unlike in the standard HCV program, VASH families are permitted to live on the grounds of a VA facility in units developed to house homeless veterans. This applies to both tenant-based assistance and PBV. Therefore, 24 CFR 982.352(a)(5) and 983.53(a)(2), which prohibit units on the physical grounds of a medical, mental, or similar public or private institution, do not apply to VASH for this purpose only. Accordingly, PHA policy in 9-I.D., Ineligible Units, does not apply for this purpose only.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
Pre-Inspections
To expedite the leasing process, PHAs may pre-inspect available units that veterans may be interested in leasing in order to maintain a pool of eligible units. If a VASH family selects a unit that passed an NSPIRE inspection (without intervening occupancy) within 45 days of the date of the Request for Tenancy Approval (Form HUD-52517), the unit may be approved if it meets all other conditions under 24 CFR 982.305. However, the veteran must be free to select their unit and cannot be steered to these units.
HACN Policy
To expedite the leasing process, the PHA may pre-inspect available units that veterans may be interested in leasing to maintain a pool of eligible units. If a VASH family selects a unit that passed a pre-inspection (without intervening occupancy) within 45 days of the date of the RTA, the unit may be approved provided that it meets all other conditions under 24 CFR 982.305. The veteran will be free to select their unit.
When a pre-inspected unit is not selected, the PHA will make every effort to fast-track the inspection process, including adjusting the normal inspection schedule for both initial and any required reinspections.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
19-III.F. PORTABILITY [FR Notice 9/27/21 and Notice PIH 2011-53] General Requirements
Portability policies under VASH depend on whether the family wants to move within or outside of the initial VA facility’s catchment area (the area in which the VAMC or DSP operates). In all cases, the initial VA facility must be consulted prior to the move and provide written confirmation that case management will continue to be provided in the family’s new location.
VASH participant families may only reside in jurisdictions that are accessible to case management services, as determined by case managers at the partnering VAMC or DSP.
Under VASH, applicant families may move under portability even if the family did not have legal residency in the jurisdiction of the initial PHA when they applied. As a result, PHA policies in Section 10-II.B. about nonresident applicants do not apply.
If the family no longer requires case management, there are no portability restrictions. Normal portability rules apply.
Portability within the Initial VAMC or DSP’s Catchment Area A VASH family can move within the VAMC’s catchment area as long as case management can still be provided, as determined by the VA. If the initial PHA’s partnering VAMC will still provide the case management services, the receiving PHA must process the move in accordance with portability procedures:
• If the receiving PHA has been awarded VASH vouchers, it can choose to either bill the initial PHA or absorb the family if it has a VASH voucher available to do so. - If the PHA absorbs the family, the VAMC or DSP providing the initial case management must agree to the absorption and the transfer of case management. • If the receiving PHA does not administer a VASH program, it must always bill the initial PHA.
Portability Outside of the Initial VAMC or DSP’s Catchment Area If a family wants to move to another jurisdiction where it will not be possible for the initial PHA’s partnering VAMC or DSP to provide case management services, the initial VAMC or DSP must first determine that the VASH family could be served by another VAMC or DSP that is participating in the VASH program, and the receiving PHA has an available VASH voucher.
In these cases, the family must be absorbed by the receiving PHA either as a new admission or as a portability move-in, as applicable. Upon absorption, the initial PHA’s VASH voucher will be available to lease to a new VASH-eligible family, and the absorbed family will count toward the number of VASH slots awarded to the receiving PHA.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
Portability Outside of the Initial VAMC or DSP’s Catchment Area under VAWA Veterans who request to port beyond the catchment area of the VAMC or DSP where they are receiving case management to protect the health or safety of a person who is or has been the victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, and who reasonably believes they are threatened with imminent harm from further violence by remaining in the unit may port prior to receiving approval from the receiving VAMC or DSP.
The initial PHA must follow its emergency transfer plan (see Exhibit 16-3). PHAs may require verbal self-certification or a written request from a participant seeking a move beyond the catchment area of the VAMC or DSP.
The verbal self-certification or written request must include either a statement expressing why the participant reasonably believes that there is a threat of imminent harm from further violence if they were to remain in the same unit or a statement that the tenant was a sexual assault victim and that the sexual assault occurred on the premises during the 90-day period preceding the participants request for the move.
The participant must still port to a PHA that has a VASH program. If the receiving PHA does not have a VASH voucher available to lease, they may bill the initial PHA until a VASH voucher is available, at which point the porting veteran must be absorbed into the receiving PHA’s program.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
19-III.G. TERMINATION OF ASSISTANCE [FR Notice 9/27/21] With the exception of terminations for failure to receive case management, HUD has not established any alternative requirements for termination of assistance for VASH participants.
However, prior to terminating VASH participants, HUD strongly encourages PHAs to exercise their discretion under 24 CFR 982.552(c)(2) as outlined in Section 12-II.D. of this policy and consider all relevant circumstances of the specific case. This includes granting reasonable accommodations for persons with disabilities, as well as considering the role of the case manager and the impact that ongoing case management services can have on mitigating the conditions that led to the potential termination.
VASH participant families may not be terminated after admission for a circumstance or activities that occurred prior to admission and were known to the PHA but could not be considered at the time of admission due to VASH program requirements. The PHA may terminate the family’s assistance only for program violations that occur after the family’s admission to the program.
Cessation of Case Management
As a condition of receiving HCV rental assistance, a HUD-VASH-eligible family must receive case management services from the VAMC or DSP. A VASH participant family’s assistance must be terminated for failure to participate, without good cause, in case management as verified by the VAMC or DSP.
However, a VAMC or DSP determination that the participant family no longer requires case management is not grounds for termination of voucher or PBV assistance. In such a case, at its option, the PHA may offer the family continued assistance through one of its regular vouchers. If the PHA has no voucher to offer, the family will retain its VASH voucher or PBV unit until such time as the PHA has an available voucher for the family.
VAWA [FR Notice 9/27/21]
When a veteran’s family member is receiving protection under VAWA because the veteran is the perpetrator of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the victim must continue to be assisted. Upon termination of the perpetrator’s VASH assistance, the victim must be given a regular HCV if one is available, and the perpetrator’s VASH voucher must be used to serve another eligible veteran family. If a regular HCV is not available, the perpetrator must be terminated from assistance and the victim will continue to use the VASH voucher.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
19-III.H. PROJECT-BASING VASH VOUCHERS
General Requirements [Notice PIH 2017-21 and FR Notice 9/27/21] PHAs are authorized to project-base their tenant-based VASH vouchers without additional HUD review or approval in accordance with Notice PIH 2017-21 and all PBV program requirements provided that the VAMC will continue to make supportive services available. In addition, since 2010, HUD has awarded VASH vouchers specifically for project-based assistance in the form of PBV HUD-VASH set-aside vouchers. While these vouchers are excluded from the PBV program cap as long as they remain under PBV HAP contract at the designated project, all other VASH vouchers are subject to the PBV program percentage limitation discussed in Section 17-I.A. Note that VASH supportive services only need to be provided to VASH families receiving PBV assistance in the project, not all families receiving PBV assistance in the project. If a VASH family does not require or no longer requires case management, the unit continues to count as an excepted PBV unit as long as the family resides in the unit.
If the PHA project-bases VASH vouchers, the PHA must consult with the partnering VAMC or DSP to ensure approval of the project or projects. PHAs may project-base VASH vouchers in projects alongside other PBV units and may execute a single HAP contract covering both the VASH PBVs and the other PBVs. The PHA must refer only VASH families to PBV units exclusively made available to VASH families and to PBV units funded through a HUD set-aside award.
If a VASH family is referred to the PHA and there is an available PBV unit that is not exclusively made available to VASH families, the PHA may offer to refer the family to the owner if allowable under the selection policy for that project, and the owner and PHA may amend the HAP contract to designate the PBV unit as a VASH PBV unit.
The PHA and owner may agree to amend a PBV HAP contract to redesignate a regular PBV unit as a unit specifically designated for VASH families so long as the PHA first consults with the VAMC or DSP. Additionally, the PHA and owner may agree to amend a PBV HAP contract to redesignate a unit specifically designated for VASH families as a regular PBV unit, so long as the unit is not funded through a VASH PBV set-aside award and is eligible for regular PBV (i.e., the unit is not on the grounds of a medical facility and the unit is eligible under the PHA’s program and project caps).
Policies for VASH PBV units will generally follow PHA policies for the standard PBV program as listed in Chapter 17, with the exception of the policies listed below.
Item 2.
Housing Authority
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City of Needles
Failure to Participate in Case Management [FR Notice 9/27/21] Upon notification by the VAMC or DSP of the family’s failure to participate, without good cause, in case management, the PHA must provide the family a reasonable time period to vacate the unit. The PHA must terminate assistance to the family at the earlier of either the time the family vacates or the expiration of the reasonable time period given to vacate.
HACN Policy
Upon notification by the VAMC or DSP that a VASH PBV family has failed to participate in case management without good cause, the PHA will provide written notice of termination of assistance to the family and the owner within 10 business days. The family will be given 60 days from the date of the notice to move out of the unit.
The PHA may make exceptions to this 60-day period if needed for reasons beyond the family’s control such as death, serious illness, or other medical emergency of a family member.
If the family fails to vacate the unit within the established time, the owner may evict the family.
If the owner does not evict the family, the PHA must remove the unit from the HAP contract or amend the HAP contract to substitute a different unit in the project if the project is partially assisted. The PHA may add the removed unit to the HAP contract after the ineligible family vacates the property.
Moves [HUD-VASH Qs and As, FR Notice 9/27/21]
When a VASH PBV family is eligible to move from its PBV unit in accordance with Section 17- VIII.C. of this policy, but there is no other comparable tenant-based rental assistance, the following procedures must be implemented:
• If a VASH tenant-based voucher is not available at the time the family wants (and is eligible) to move, the PHA may require a family who still requires case management to wait for a VASH tenant-based voucher for a period not to exceed 180 days; • If a VASH tenant-based voucher is still not available after that period, the family must be allowed to move with its VASH voucher. Alternatively, the PHA may allow the family to move with its VASH voucher without having to meet this 180-day period. In either case, the PHA is required to replace the assistance in the PBV unit with one of its regular vouchers, unless the PHA and owner agree to temporarily remove the unit from the HAP contract; and • If a VASH veteran is determined to no longer require case management, the PHA must allow the family to move with the first available tenant-based voucher if no VASH voucher is immediately available and cannot require the family to wait for a VASH voucher to become available.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
PART IV: MAINSTREAM VOUCHER PROGRAM
19-IV.A. PROGRAM OVERVIEW [Notice PIH 2020-01]
Mainstream vouchers assist non-elderly persons with disabilities and their families in the form of either project-based or tenant-based voucher assistance.
Aside from separate funding appropriations and serving a specific population, Mainstream vouchers follow the same program requirements as standard vouchers. The PHA does not have special authority to treat families that receive a Mainstream voucher differently from other applicants and participants. For example, the PHA cannot apply different payment standards, establish conditions for allowing portability, or apply different screening criteria to Mainstream families.
The Mainstream voucher program, (previously referred to as the Mainstream 5-Year program or the Section 811 voucher program) was originally authorized under the National Affordable Housing Act of 1990. Mainstream vouchers operated separately from the regular HCV program until the passage of the Frank Melville Supportive Housing Investment Act of 2010. Funding for Mainstream voucher renewals and administrative fees was first made available in 2012. In 2017 and 2019, incremental vouchers were made available for the first time since the Melville Act (in addition to renewals and administrative fees), and PHAs were invited to apply for a competitive award of Mainstream vouchers underthe FY17 and FY19 NOFAs. In 2020, Notice PIH 2020-22 provided an opportunity for any PHA administering an HCV program to apply for Mainstream vouchers noncompetitively, while Notice PIH 2020-09 authorized an increase in Mainstream voucher units and budget authority for those PHAs already awarded Mainstream vouchers under the FY17 and FY19 NOFAs.
Funds for Mainstream vouchers may be recaptured and reallocated if the PHA does not comply with all program requirements or fails to maintain a utilization rate of 80 percent for the PHA’s Mainstream vouchers.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
19-IV.B. ELIGIBLE POPULATION [Notice PIH 2020-01 and Notice PIH 2020-22] All Mainstream vouchers must be used to serve non-elderly persons with disabilities and their families, defined as any family that includes a person with disabilities who is at least 18 years old and not yet 62 years old as of the effective date of the initial HAP contract. The eligible disabled household member does not need to be the head of household.
The definition of person with disabilities for purposes of Mainstream vouchers is the statutory definition under section 3(b)(3)(E) of the 1937 Act, which is the same as is used for allowances and deductions in the HCV program and is provided in Exhibit 3-1 of this policy.
Existing families receiving Mainstream vouchers, where the eligible family member is now age 62 or older, will not “age out” of the program as long as the family was eligible on the day it was first assisted under a HAP contract.
The PHA may not implement eligibility screening criteria for Mainstream vouchers that is different from that of the regular HCV program.
19-IV.C. PARTNERSHIP AND SUPPORTIVE SERVICES [Notice PIH 2020-01] PHAs are encouraged but not required to establish formal and informal partnerships with a variety of organizations that assist persons with disabilities to help ensure eligible participants find and maintain stable housing.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Item 2.
Housing Authority
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City of Needles
19-IV.D. WAITING LIST ADMINISTRATION
General Waiting List Requirements [Notice PIH 2020-01 and Mainstream Voucher Basics Webinar, 10/15/20]
PHAs must not have a separate waiting list for Mainstream voucher assistance since the PHA is required by the regulations to maintain one waiting list for tenant-based assistance [24 CFR 982.204(f)]. All PHA policies on opening, closing, and updating the waiting list, as well as waiting list preferences in Chapter 4, apply to the Mainstream program.
When the PHA is awarded Mainstream vouchers, these vouchers must be used for new admissions to the PHA’s program from the waiting list. The PHA must lease these vouchers by pulling the first Mainstream-eligible family from its tenant-based waiting list. PHAs are not permitted to reassign existing participants to the program in order to make regular tenant-based vouchers available. Further, the PHA may not skip over Mainstream-eligible families on the waiting list because the PHA is serving the required number of Mainstream families.
Upon turnover, vouchers must be provided to Mainstream-eligible families. If a Mainstream turnover voucher becomes available, the PHA must determine if the families at the top of the waiting list qualify under program requirements.
Admission Preferences [Notice PIH 2020-01; FY17 Mainstream NOFA; FY19 Mainstream NOFA]
If the PHA claimed points for a preference in a NOFA application for Mainstream vouchers, the PHA must adopt a preference for at least one of the targeted groups identified in the NOFA.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Item 2.
Housing Authority
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City of Needles
19-IV.E. PORTABILITY [Notice PIH 2020-01 and Mainstream Voucher Basics Webinar, 10/15/20]
Mainstream voucher participants are eligible for portability under standard portability rules and all PHA policies regarding portability in Chapter 10, Part II apply to Mainstream families.
The following special considerations for Mainstream vouchers apply under portability:
• If the receiving PHA has a Mainstream voucher available, the participant may remain a Mainstream participant.
- If the receiving PHA chooses to bill the initial PHA, then the voucher will remain a Mainstream voucher.
- If the receiving PHA chooses to absorb the voucher, the voucher will be considered a regular voucher, or a Mainstream voucher if the receiving PHA has a Mainstream voucher available, and the Mainstream voucher at the initial PHA will be freed up to lease to another Mainstream-eligible family.
• If the receiving PHA does not have a Mainstream voucher available, the participant may receive a regular voucher.
19-IV.F. PROJECT-BASING MAINSTREAM VOUCHERS [FY19 Mainstream Voucher NOFA Q&A]
The PHA may project-base Mainstream vouchers in accordance with all applicable PBV regulations and PHA policies in Chapter 17. PHAs are responsible for ensuring that, in addition to complying with project-based voucher program requirements, the project complies with all applicable federal nondiscrimination and civil rights statutes and requirements. This includes, but is not limited to, Section 504 of the Rehabilitation Act (Section 504), Titles II or III of the Americans with Disabilities (ADA), and the Fair Housing Act and their implementing regulations at 24 CFR Part 8; 28 CFR Parts 35 and 36; and 24 CFR Part 100. Mainstream vouchers are subject to the PBV program percentage limitation discussed in Section 17-I.A.
Item 2.
Housing Authority
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City of Needles
PART IV: NON-ELDERLY DISABLED (NED) VOUCHERS
19-V.A. PROGRAM OVERVIEW [Notice PIH 2013-19]
NED vouchers help non-elderly disabled families lease suitable, accessible, and affordable housing in the private market. Aside from separate funding appropriations and serving a specific population, NED vouchers follow the same program requirements as standard vouchers. The PHA does not have special authority to treat families that receive a NED voucher differently from other applicants and participants.
Some NED vouchers are awarded to PHAs through competitive NOFAs. The NOFA for FY2009 Rental Assistance for NED made incremental funding available for two categories of NED families:
• Category 1 vouchers enable non-elderly persons or families with disabilities to access affordable housing on the private market.
• Category 2 vouchers enable non-elderly persons with disabilities currently residing in nursing homes or other healthcare institutions to transition into the community. PHAs with NED Category 2 vouchers were required to partner with a state Medicaid or health agency or the state Money Follows the Person (MFP) Demonstration agency.
Since 1997, HCVs for NED families have been also awarded under various special purpose HCV programs: Rental Assistance for Non-Elderly Persons with Disabilities in Support of Designated Housing Plans (Designated Housing), Rental Assistance for Non-Elderly Persons with Disabilities Related to Certain Types of Section 8 Project-Based Developments (Certain Developments), One-Year Mainstream Housing Opportunities for Persons with Disabilities, and the Project Access Pilot Program (formerly Access Housing 2000). • Designated Housing vouchers enable non-elderly disabled families, who would have been eligible for a public housing unit if occupancy of the unit or entire project had not been restricted to elderly families only through an approved Designated Housing Plan, to receive rental assistance. These vouchers may also assist non-elderly disabled families living in a designated unit/project/building to move from that project if they so choose. The family does not have to be listed on the PHA’s voucher waiting list. Instead, they may be admitted to the program as a special admission. Once the impacted families have been served, the PHA may begin issuing these vouchers to non-elderly disabled families from their HCV waiting list.
Upon turnover, these vouchers must be issued to non-elderly disabled families from the PHA’s HCV waiting list.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
• Certain Developments vouchers enable non-elderly families having a person with disabilities, who do not currently receive housing assistance in certain developments where owners establish preferences for, or restrict occupancy to, elderly families, to obtain affordable housing. These non-elderly families with a disabled person do not need to be listed on the PHA’s HCV waiting list in order to be offered and receive housing choice voucher rental assistance. It is sufficient that these families' names are on the waiting list for a covered development at the time their names are provided to the PHA by the owner. Once the impacted families have been served, the PHA may begin issuing these vouchers to nonelderly disabled families from their HCV waiting list. Upon turnover, these vouchers must be issued to non-elderly disabled families from the PHA’s HCV waiting list. • One-Year Mainstream Housing Opportunities for Persons with Disabilities (One-Year Mainstream) vouchers enable non-elderly disabled families on the PHA’s waiting list to receive a voucher. After initial leasing, turnover vouchers must be issued to non-elderly disabled families from the PHA’s voucher waiting list.
19-V.B. ELIGIBLE POPULATION
General Requirements [Notice PIH 2013-19]
Only eligible families whose head of household, spouse, or cohead is non-elderly (under age 62) and disabled may receive a NED voucher. Families with only a minor child with a disability are not eligible.
In cases where the qualifying household member now qualifies as elderly due to the passage of time since the family received the NED voucher, existing NED participant families do not “age out,” as the family was eligible on the day it was first assisted under a housing assistance payments (HAP) contract.
The definition of person with disabilities for purposes of NED vouchers is the statutory definition under Section 3(b)(3)(E) of the 1937 Act, which is the same as is used for allowances and deductions in the HCV program and is provided in Exhibit 3-1 of this policy.
The PHA may not implement eligibility screening criteria for NED vouchers that is different from that of the regular HCV program.
NED Category 2 [Notice PIH 2013-19 and NED Category 2 FAQs] In addition to being eligible for the PHA’s regular HCV program and a non-elderly person with a disability, in order to receive a Category 2 voucher, the family’s head, spouse, cohead, or sole member must be transitioning from a nursing home or other healthcare institution and provided services needed to live independently in the community.
Nursing homes or other healthcare institutions may include intermediate care facilities and specialized institutions that care for those with intellectual disabilities, developmentally disabled, or mentally ill, but do not include board and care facilities (e.g., adult homes, adult day care, adult congregate living).
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
The PHA cannot limit who can apply to just those persons referred or approved by a Money Follows the Person (MFP) Demonstration agency or state health agency. Other individuals could be placed on the waiting list if they can show, with confirmation by an independent agency or organization that routinely provides such services (this can be the MFP or partnering agency, but need not be), that the transitioning individual will be provided with all necessary services, including care or case management.
For each Category 2 family, there must be documentation (e.g., a copy of a referral letter from the partnering or referring agency) in the tenant file identifying the institution where the family lived at the time of voucher issuance.
19-V.C. WAITING LIST
General Requirements [Notice PIH 2013-19]
Families must be selected for NED vouchers from the PHA’s waiting list in accordance with all applicable regulations and PHA policies in Chapter 4.
Regardless of the number of NED families the PHA is required to serve, the next family on the waiting list must be served. Further, the PHA may not skip over NED-eligible families on the waiting list because the PHA is serving the required number of NED families.
NED Category 2 Referrals [NED Category 2 FAQs]
For NED Category 2 families, the partnering agency may make referrals of eligible families to the PHA for placement on the waiting list. The PHA will then select these families from the waiting list for voucher issuance. Because language in the NOFA established that vouchers awarded under the NOFA must only serve non-elderly disabled families transitioning from institutions, the PHA does not need to establish a preference in order to serve these families ahead of other families on the PHA’s waiting list.
PHAs must accept applications from people living outside their jurisdictions or from people being referred from other Medicaid or MFP service agencies in their state.
If the PHA’s waiting list is closed, the PHA must reopen its waiting list to accept referrals from its partnering agency. When opening the waiting list, PHAs must advertise in accordance with 24 CFR 982.206 and PHA policies in Section 4-II.C. In addition, the PHA must ensure that individuals living in eligible institutions are aware when the PHA opens its waiting list by reaching out to social service agencies, nursing homes, intermediate care facilities and specialized institutions in the local service area.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
Reissuance of Turnover Vouchers [Notice PIH 2013-19]
All NED turnover vouchers must be reissued to the next NED family on the PHA’s waiting list with the following exception: A Category 2 voucher must be issued to another Category 2 family upon turnover if a Category 2 family is on the PHA’s waiting list. If there are no Category 2 families on the PHA’s waiting list, the PHA must contact its partnering agency as well as conduct outreach through appropriate social service agencies and qualifying institutions to identify potentially eligible individuals. Only after all means of outreach have been taken to reach Category 2 families can the PHA reissue the voucher to another Category 2 NED family on the PHA’s waiting list. Any subsequent turnover of that voucher must again be used for a Category 2 family on the PHA’s waiting list, and the PHA is under the same obligation to conduct outreach to Category 2 families if no such families are on the PHA’s waiting list.
For PHAs that received both Category 1 and Category 2 vouchers, if at any time the PHA is serving fewer Category 2 families than the number of Category 2 HCVs awarded under the NOFA, when a Category 2 family applies to the waiting list and is found eligible, the PHA must issue the next NED voucher to that family. HUD monitors the initial leasing and reissuance of Category 2 HCVs. These vouchers may be recaptured and reassigned if not leased properly and in a timely manner.
All NED vouchers should be affirmatively marketed to a diverse population of NED-eligible families to attract protected classes least likely to apply. If at any time following the turnover of a NED HCV a PHA believes it is not practicable to assist NED families, the PHA must contact HUD.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
19-V.D. LEASE UP [Notice PIH 2013-19]
Briefings
In addition to providing families with a disabled person a list of accessible units known to the PHA, HUD encourages, but does not require, PHAs to provide additional resources to NED families as part of the briefing.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Voucher Term
While the PHA is not required to establish different policies for the initial term of the voucher for NED vouchers, HUD has encouraged PHAs with NED vouchers to be generous in establishing reasonable initial search terms and subsequent extensions for families with a disabled person.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
Special Housing Types [Notice PIH 2013-19 and NED Category 2 FAQs] In general, a PHA is not required to permit families to use any of the special housing types and may limit the number of families using such housing. However, the PHA must permit the use of a special housing type if doing so provides a reasonable accommodation so that the program is readily accessible to and usable by a person with disabilities.
Such special housing types include single room occupancy housing, congregate housing, group homes, shared housing, cooperative housing, and manufactured homes when the family owns the home and leases the manufactured home space.
Persons with disabilities transitioning out of institutional settings may choose housing in the community that is in a group or shared environment or where some additional assistance for daily living is provided for them on site. Under HUD regulations, group homes and shared housing are considered special housing types and are not excluded as an eligible housing type in the HCV program. Assisted living facilities are also considered eligible housing under the normal HCV program rules, as long as the costs for meals and other supportive services are not included in the housing assistance payments (HAP) made by the PHA to the owner, and as long as the person does not need continual medical or nursing care. 19-V.E. PORTABILITY [NED Category 2 FAQs]
NED voucher participants are eligible for portability understandard portability rules and all PHA policies regarding portability in Chapter 10, Part II apply to NED families. However, the PHA may, but is not required to, allow applicant NED families to move under portability, even if the family did not have legal residency in the initial PHA’s jurisdiction when they applied.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
PART VI: STABILITY VOUCHER PROGRAM
19-VI.A. PROGRAM OVERVIEW [Notice PIH 2022-24]
The Consolidated Appropriations Act, 2021 (Public Law 116-260) (2021 Act) provided new incremental funding for voucher assistance through Stability Vouchers (SVs) for households who are:
• Homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302(a));
• At-risk of homelessness;
• Those fleeing or attempting to flee domestic violence dating violence, sexual assault, stalking, or human trafficking; and
• Veterans and families that include a veteran family member that meet one of the above criteria.
HUD may waive certain statutory and regulatory provisions to administer the SVs (except for requirements related to tenant rights and protections, rent setting, fair housing, nondiscrimination, labor standards and the environment) upon a finding that any such waivers or alternative requirements are necessary to facilitate the use of funds made available for SVs.
Unless expressly waived below, all statutory and regulatory requirements and HUD directives regarding the HCV program are applicable to SVs, including the use of all HUD required contracts and other forms. A PHA may request additional good cause regulatory waivers as established in Notice PIH 2018-16 in connection with the use of the SVs, which HUD will consider and assess upon the request of the PHA.
19-VI.B. PARTNERING ORGANIZATION [Notice PIH 2022-24]
SV funding is only awarded to PHAs that partner with eligible Continuums of Care (CoCs) or other entities that serve the targeted population, such as Victim Service Providers (VSPs) and Veteran Service Organizations (VSOs) serving the targeted population in the PHA’s jurisdiction to implement coordinated approaches to reduce the prevalence of homelessness, improve service engagement, and promote housing stability while ensuring geographical need of assistance.
The PHA must enter into a Memorandum of Understanding (MOU) with the CoC to establish a partnership with the CoC to pair SVs with CoC-funded supportive services, and to collaborate with the CoC and other stakeholders to develop a prioritization plan for these vouchers.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
19-VI.C. REFERRALS [Notice PIH 2022-24]
In general, families are issued SVs as the result of either:
• The direct referral process from the CoC or other partnering organizations; or • A situation where the PHA makes an SV available in order to facilitate an emergency transfer for victims of domestic violence, dating violence, sexual assault, stalking, and human trafficking.
CoC Referrals
The primary responsibility of the CoC under the MOU is to make direct referrals of qualifying individuals and families to the PHA and to identify any CoC-funded available supportive services that may be paired with SVs.
The CoC or other partnering agency must certify that the SV applicants they refer to the PHA meet the definition of a qualifying individual or family for SV assistance.
The referring agency must provide documentation to the PHA of the referring agency’s verification that the family meets one of the four eligible categories for SV assistance. The PHA must retain this documentation as part of the family’s file.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
Referrals from Outside the CoC
The PHA must also take direct referrals from outside the CoC process if:
• The CoC does not have a sufficient number of eligible families to refer to the PHA; or • The CoC does not identify families that may be eligible for SV assistance because they are fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking.
If a direct referral is taken from outside of the CoC, the PHA must enter into a partnership to receive direct referrals from another entity, assuming there are such additional organizations that can certify that an individual or family is eligible for an SV.
The PHA must enter into an MOU with a partnering referral agency or may add the partnering referral agency to the MOU between the PHA and CoC.
19-VI.D. WAITING LIST [Notice PIH 2022-24]
HCV Waiting List
The regulation that requires the PHA to admit applicants as waiting list admissions or special admissions in accordance with admission policies in Chapter 4 does not apply to PHAs operating the SV program. Direct referrals are not added to the PHA’s HCV waiting list.
The PHA must inform families on the HCV waiting list of the availability of SVs by, at a minimum, either by posting the information to their website or providing public notice in their respective communities in accordance with the requirements listed in Notice PIH 2022-24.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
SV Waiting List
The HCV regulations requiring the PHA to operate a single waiting list for admission to the HCV program do not apply to PHAs operating the SV program. Instead, when the number of applicants referred by the CoC or partnering agency exceeds the SVs available, the PHA must maintain a separate waiting list for SV referrals. Upon turnover, SV vouchers must continue to remain available for eligible families.
Further, the SV waiting list is not subject to PHA policies in Chapter 4 regarding opening and closing the HCV waiting list. The PHA will work directly with its CoC and other referral agency partners to manage the number of referrals and the size of the SV waiting list.
HCV Waiting List Preferences
If local preferences are established by the PHA for HCV in Chapter 4, they do not apply to SVs.
However, if the PHA has a homelessness preference or a preference for survivors of domestic violence, dating violence, sexual assault, stalking, or human trafficking for the regular HCV program, the PHA must refer any applicant on the waiting list that indicated they qualified for this preference to the CoC, or the applicable partnering referral agency.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
SV Waiting List Preferences
With the exception of a residency preference, which may not be applied to the PHA’s SV waiting list, the PHA may choose, in coordination with the CoC and other referral partners, to establish separate local preferences for SVs, or may simply choose to not establish any local preferences for the SV waiting list. The preference system may not prohibit SV admissions from any of the four qualifying categories of eligibility.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
19-VI.E. FAMILY ELIGIBILITY [Notice PIH 2022-24]
Referring Agency Determination of Eligibility
The CoC or referring agency determines whether the individual or family meets any one of the eligibility criteria described in Notice PIH 2022-24 and then refers the family to the PHA. The PHA determines that the family meets other eligibility criteria for the HCV program, as modified for the SV program and outlined below.
In order to be eligible for an SV, a household must meet one of four eligibility criteria:
• Homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302(a)) and 24 CFR 578.3;
• At-risk of homelessness as defined in 24 CFR 5.78.3;
• Those fleeing or attempting to flee domestic violence dating violence, sexual assault, stalking, or human trafficking; and
• Veterans [as defined in 38 U.S.C. 101(2); 38 CFR 3.1(d)] and families that include a veteran family member that meet one of the above criteria.
Mandatory Denials
HUD waived 24 CFR 982.552 and 982.553 in part for the SV applicants and established alternative requirements for mandatory and permissive prohibitions of admissions. Except where applicable, PHA policies regarding denials in Chapter 3 of this policy do not apply to screening individuals and families for eligibility for an SV. Instead, the SV alternative requirement listed in this section will apply to all SV applicants.
The mandatory and permissive prohibitions listed in Notice PIH 2022-24 and in this chapter, however, apply only when screening the individual or family for eligibility for an SV. When adding a family member after the family has been placed under a HAP contract with SV assistance, the regulations at 24 CFR 982.551(h)(2) apply. Other than the birth, adoption, or court-awarded custody of a child, the PHA must approve additional family members and may apply its regular HCV screening criteria in Chapter 3 in doing so.
Under alternative requirements for the SV program, mandatory denials for SV applicants include:
• 24 CFR 982.553(a)(1)(ii)(C), which prohibits admission if any household member has ever been convicted of drug-related criminal activity for manufacture or production of methamphetamine on the premises of federally assisted housing. • 24 CFR 982.553(a)(2)(i), which prohibits admission to the program if any member of the household is subject to a lifetime registration requirement under a state sex offender registration program.
The PHA will also deny assistance to household members already receiving assistance from another program.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
The PHA must deny admission to the program if any member of the family fails to sign and submit consent forms for obtaining information as required by 24 CFR 982.552(b)(3) but should notify the family of the limited SV grounds for denial of admission first.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Permissive Denial
Notice PIH 2022-24 lists permissive prohibitions for which the PHA may, but is not required to, deny admission to SV families. The notice also lists prohibitions that, while allowable under the HCV program, may not be used to deny assistance for SV families.
If the PHA intends to establish permissive prohibition policies for SV applicants, the PHA must first consult with its CoC partner to understand the impact that the proposed prohibitions may have on referrals and must take the CoC’s recommendations into consideration.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
Self-Certification of Income at Admission
The requirement to obtain third-party verification of income in accordance with Notice PIH 2018-18 does not apply to the SV program applicants at admission, and alternatively, PHAs may consider self-certification the highest form of income verification at admission. As such, PHA policies related to the verification of income in Section 7-I.B. do not apply to SV families at admission. Instead, applicants must submit an affidavit attesting to their reported income, assets, expenses, and other factors that would affect an income eligibility determination.
Additionally, applicants may provide third-party documentation that represents the applicant’s income within the 60-day period prior to admission or voucher issuance but is not dated within 60 days of the PHA’s request.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Recently Conducted Income Determinations
PHAs may accept income calculations and verifications from third-party providers or from an examination that the PHA conducted on behalf of the family for another subsidized housing program in lieu of conducting an initial examination of income as long as:
• The income was calculated in accordance with rules outlined at 24 CFR Part 5 and within the last six months; and
• The family certifies there has been no change in income or family composition in the interim.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
EIV Income Validation
Once HUD makes the EIV data available to PHAs under this waiver and alternative requirement, the PHA must:
• Review the EIV Income and Income Validation Tool (IVT) reports to confirm and validate family-reported income within 90 days of the PIC submission date; • Print and maintain copies of the EIV Income and IVT Reports in the tenant file; and • Resolve any income discrepancy with the family within 60 days of the EIV Income or IVT Report dates.
Prior to admission, PHAs must continue to use HUD’s EIV system to search for all household members using the Existing Tenant Search in accordance with PHA policies in Chapter 3.
If a PHA later determines that an ineligible family received assistance, the PHA must take steps to terminate that family from the program in accordance with Chapter 12.
Social Security Number and Citizenship Status Verification For the SV program, the PHA is not required to obtain and verify SSN documentation and documentation evidencing eligible noncitizen status before admitting the family to the SV program. Instead, PHAs may adopt policies to admit SV applicants who are unable to provide the required SSN or citizenship documentation during the initial eligibility determination. As an alternative requirement, such individuals must provide the required documentation within 180 days of admission to be eligible for continued assistance, pending verification, unless the PHA provides an extension based on evidence from the family or confirmation from the CoC or other partnering agency that the family has made a good-faith effort to obtain the documentation.
If a PHA determines that an ineligible family received assistance, the PHA must take steps to terminate that family from the program.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
Age and Disability Verifications
PHAs may accept self-certification of date of birth and disability status if a higher level of verification is not immediately available. If self-certification is used, the PHA must obtain a higher level of verification within 90 days of admission or verify the information in EIV.
If a PHA determines that an ineligible family received assistance, the PHA must take steps to terminate that family from the program.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Income Targeting
The PHA must determine income eligibility for SV families in accordance with 24 CFR 982.201 and PHA policy in Chapter 3; however, income targeting requirements do not apply for SV families. The PHA may still choose to include the admission of extremely low-income SV families in its income targeting numbers for the fiscal year in which these families are admitted.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
19-VI.F. HOUSING SEARCH AND LEASING
Initial Voucher Term
Unlike the standard HCV program, which requires an initial voucher term of at least 60 days, SV vouchers must have an initial search term of at least 120 days. PHA policies on extensions as outlined in Section 5-II.E. will apply.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Pre-Inspections
To expedite the leasing process, PHAs may pre-inspect available units that SV families may be interested in leasing in order to maintain a pool of eligible units.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Initial Lease Term
Unlike in the standard the HCV program, SV voucher holders may enter into an initial lease that is for less than 12 months, regardless of the PHA policy in Section 9-I.E., Term of Assisted Tenancy.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
Portability
The normal HCV portability procedures and requirements outlined in Chapter 10 generally apply to SVs. Exceptions are addressed below.
• Under SV, applicant families may move under portability even if the family did not have legal residency in the jurisdiction of the initial PHA when they applied, regardless of PHA policy in Section 10-II.B.
• A receiving PHA cannot refuse to assist an incoming SV family, regardless of whether the PHA administers SVs under its own ACC.
• If the SV family moves under portability to another PHA that administers SVs under its own ACC:
- The receiving PHA may only absorb the incoming SV family with an SV (assuming it has an SV voucher available to do so).
- If the PHA does not have an SV available to absorb the family, it must bill the initial PHA. The receiving PHA must allow the family to lease the unit with SV assistance and may not absorb the family with a regular HCV when the family leases the unit. - Regardless of whether the receiving PHA absorbs or bills the initial PHA for the family’s SV assistance, the SV administration of the voucher is in accordance with the receiving PHA’s SV policies.
• If the SV family moves under portability to another PHA that does not administer SVs under its own ACC, the receiving PHA may absorb the family into its regular HCV program or may bill the initial PHA.
Family Briefing
In addition to the applicable family briefing requirements at 24 CFR 982.301(a)(2) as to how portability works and how portability may affect the family’s assistance, the initial PHA must inform the family how portability may impact the special SV services and assistance that may be available to the family.
The initial PHA is required to help facilitate the family’s portability move to the receiving PHA and inform the family of this requirement in writing, taking reasonable steps to ensure meaningful access for persons with limited English proficiency (LEP).
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
19-VI.G. PAYMENT STANDARDS
Overview
For the SV program, HUD has waived the regulation requiring a single payment standard for each unit size. Instead, the PHA may, but is not required to, establish separate higher payment standards for SVs. Lower SV payment standards are not permitted. If the PHA is increasing the regular HCV payment standard, the PHA must also increase the SV payment standard if it would be otherwise lower than the new regular HCV payment standard. The separate SV payment standard must comply with all other HCV requirements with the exception of the alternative requirements discussed below.
Further, if the PHA chooses to establish higher payments standards for SVs, HUD has provided other regulatory waivers:
• Defining the “basic range” for payment standards as between 90 and 120 percent of the published Fair Market Rent (FMR) for the unit size (rather than 90 to 110 percent). • Allowing a PHA that is not in a designated Small Area FMR (SAFMR) area or has not opted to voluntarily implement SAFMRs to establish exception payment standards for a ZIP code area above the basic range for the metropolitan FMR based on the HUD-published SAFMRs.
The PHA may establish an exception payment standard up to 120 percent (as opposed to 110 percent) of the HUD published Small Area FMR for that ZIP code area. The exception payment standard must apply to the entire ZIP code area.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
All rent reasonableness requirements apply to SV units, regardless of whether the PHA has established an alternative or exception SV payment standard.
Increases in Payment Standards
The requirement that the PHA apply increased payment standards at the family’s first regular recertification on or after the effective date of the increase does not apply to SV. The PHA may, but is not required to, establish an alternative policy on when to apply the increased payment standard, provided the increased payment standard is used to calculate the HAP no later than the effective date of the family’s first regular reexamination following the change.
HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
19-VI.H. PROJECT-BASED UNITS
All tenant-based SV awards can be converted to Project-Based Vouchers (PBV) at any time after award without HUD approval provided all the established PBV regulations and requirements are followed.
All PBV requirements in 24 CFR Part 983 and in Chapter 17 apply to project-based SVs with the exception of 24 CFR 983.251(c)(1), which requires PHAs to select families for project-based units from its HCV or PBV waiting list. HUD is waiving this requirement and establishing an alternative requirement that PHAs receive SV referrals from CoC partners for vouchers as well as project-based assistance.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
EXHIBIT 19-1: SAMPLE STABILITY VOUCHER (SV)
HOMELESS PROVIDER’S CERTIFICATION
Stability Voucher (SV)
HOMELESS CERTIFICATION
SV Applicant Name: ____________________________________________________________ ☐ Household without dependent children (complete one form for each adult in the household) ☐ Household with dependent children (complete one form for household) Number of persons in the household: ______________
This is to certify that the above named individual or household meets the following criteria based on the check mark, other indicated information, and signature indicating their current living situation Check only one box and complete only that section
Living Situation: place not meant for human habitation (e.g., cars, parks, abandoned buildings, streets/sidewalks)
☐ The person(s) named above is/are currently living in (or, if currently in hospital or other institution, was living in immediately prior to hospital/institution admission) a public or private place not designed for, or ordinarily used as a regular sleeping accommodation for human beings, including a car, park, abandoned building, bus station, airport, or campground.
Description of current living situation:
______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Homeless Street Outreach Program Name: ___________________________________________ This certifying agency must be recognized by the local Continuum of Care (CoC) as an agency that has a program designed to serve persons living on the street or other places not meant for human habitation. Examples may be street outreach workers, day shelters, soup kitchens, Health Care for the Homeless sites, etc.
Authorized Agency Representative Signature: ________________________________________ Date: ________________________________
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
Living Situation: Emergency Shelter
☐ The person(s) named above is/are currently living in (or, if currently in hospital or other institution, was living in immediately prior to hospital/institution admission) a supervised publicly or privately operated shelter as follows:
Emergency Shelter Program Name: _________________________________________________ This emergency shelter must appear on the CoC’s Housing Inventory Chart submitted as part of the most recent CoC Homeless Assistance application to the U.S. Department of Housing and Urban Development (HUD) or otherwise be recognized by the CoC as part of the CoC inventory (e.g., newly established Emergency Shelter).
Authorized Agency Representative Signature: ________________________________________ Date: ________________________________
Living Situation: Recently Homeless
☐ The person(s) named above is/are currently receiving financial and supportive services for persons who are homeless. Loss of such assistance would result in a return to homelessness (e.g., households in rapid rehousing programs, residents of permanent supportive housing programs participating in Moving On, etc.)
Authorized Agency Representative Signature: ________________________________________ Date: ________________________________
This referring agency must appear on the CoC’s Housing Inventory Chart submitted as part of the most recent CoC Homeless Assistance application to HUD or otherwise be recognized by the CoC as part of the CoC inventory.
Immediately prior to entering the household’s current living situation, the person(s) named above was/were residing in:
☐ Emergency shelter OR ☐ A place unfit for human habitation Authorized Agency Representative Signature: ________________________________________ Date: ________________________________
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
EXHIBIT 19-2: SAMPLE VICTIM SERVICE PROVIDER’S CERTIFICATION Stability Voucher (SV)
SAMPLE CERTIFICATION FOR SURVIVORS OF DOMESTIC VIOLENCE, DATING
VIOLENCE, SEXUAL ASSAULT, STALKING, AND/OR HUMAN TRAFFICKING Use of this Optional Form:
Service providers may utilize this form to certify a family’s eligibility for SV to document households who are fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, and/or human trafficking. In response to this request, the service provider may complete this form and submit it to the Public Housing Agency (PHA) to certify eligibility for the U.S. Department of Housing and Urban Development’s (HUD) Stability Voucher program.
Confidentiality:
All information provided during the referral process concerning the incident(s) of domestic violence, dating violence, dating violence, sexual assault, stalking, and human trafficking shall be kept confidential and such details shall not be entered into any shared database. Employees of the PHA will not have access to these details, and such employees may not disclose this information to any other entity or individual, except to the extent that disclosure is: (i) consented to by you in writing in a time-limited release; (ii) required for use in an eviction proceeding or hearing regarding termination of assistance; or (iii) otherwise required by applicable law.
TO BE COMPLETED ON BEHALF OF SURVIVORS OF DOMESTIC VIOLENCE,
DATING VIOLENCE, SEXUAL ASSAULT, STALKING, AND/OR HUMAN
TRAFFICKING
SV Applicant Name: ____________________________________________________________ The applicant named above is a survivor of (please check from the list all that apply):
☐ Domestic Violence
☐ Dating Violence
☐ Sexual Assault
☐ Stalking
☐ Human Trafficking
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
This certifies that the above named individual or household meets the definition for persons who are fleeing, or attempting to flee domestic violence, dating violence, sexual assault, stalking and/or human trafficking as these terms are defined under 34 U.S.C. Section 12291 of the Violence Against Women Act 1 and 22 U.S.C. Section 7102(11) of the Trafficking Victims Protection Act.2
I acknowledge that submission of false information could jeopardize program eligibility and could be the basis for denial of admission, termination of assistance, or eviction.
Authorized Agency Representative Signature: ________________________________________ Date: ________________________________
1 The Violence Against Women Act protects applicants,tenants, and program participants in certain HUD programs from being evicted, denied housing assistance, or terminated from housing assistance based on acts of domestic violence, dating violence, sexual assault, or stalking against them. VAWA protection is available to victims of domestic violence, dating violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation.
2 The Victims of Trafficking and Violence Protection Act of 2000 provides assistance to victims of trafficking making housing, educational health care, job training and other federally-funded social service programs available to assist victims in rebuilding their lives.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
EXHIBIT 19-3: SAMPLE SV MEMORANDUM OF UNDERSTANDING3
[** This sample document demonstrates the Memorandum of Understanding requirements for the administration of Stability Vouchers. Unless otherwise noted, all elements are required. **] Memorandum of Understanding – Stability Vouchers
This Memorandum of Understanding (MOU) has been created and entered on [Insert execution date] by [insert PHA name and address] and [insert CoC/VSP name and address].
I. Introduction and Goals
The [insert PHA name] and [insert CoC/VSP name] through the Stability Voucher (SV) Program seek to prevent and end homelessness among individuals and families who are experiencing or at-risk of homelessness, those fleeing or attempting to flee domestic violence dating violence, sexual assault, stalking, and human trafficking, and veterans and families that include a veteran family member that meets one of the proceeding criteria.
The Consolidated Appropriations Act, 2021 (Public Law 116-260) (2021 Act), makes available $43,343,000 for new incremental voucher assistance under Section 8(o) of the United States Housing Act of 1937 for use by individuals and families experiencing or at-risk of homelessness; those fleeing or attempting to flee domestic violence, dating violence, sexual assault, and stalking; and veterans and families that include a veteran family member that meets one of the proceeding criteria.
The Further Consolidated Appropriations Act, 2022 (Public Law 117-103 (2022 Act) further provides that HUD may waive certain statutory and regulatory provisions to administer the SVs (except for requirements related to tenant rights and protections, rent setting, fair housing, nondiscrimination, labor standards and the environment) upon a finding that any such waivers or alternative requirements are necessary to facilitate the use of funds made available for SVs.
This Memorandum of Understanding (MOU) outlines the collaboration and commitment between [insert PHA name] and [insert CoC/VSP name] to pair Stability Vouchers with CoCfunded supportive services; and to collaborate with the CoC/VSP and other stakeholders to develop a prioritization plan for these vouchers.
Lead Agency Liaisons:
Name and title of PHA staff position:
Name and title CoC and/or VSP staff position:
3 If PHA policy in Section 19-VI.B. of this administrative plan states that a copy of the MOU will be attached at the end of this chapter as Exhibit 19-3, you may either fill in the language shown here or replace the text with the PHA’s own MOU, then delete the word sample. If the PHA does not wish to attach its own MOU to the chapter, this statement should be removed from the policy in Section 19-VI.B.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
II. Individuals and Families Eligibility under the Qualifying Categories In order to be eligible for an SV, an individual or family must meet one of four eligibility categories:
• Homeless
• At risk of homelessness
• Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking
• Veterans
III. SV Roles and Responsibilities
A. PHA Roles and Responsibilities [**The following responsibilities are listed for example purposes. **]
1. Coordinate and consult with the CoC in developing the services and assistance to be offered under the SV services fee.
2. Accept direct referrals for eligible individuals and families through the CoC Coordinated Entry System.
3. Commit a sufficient number of staff and necessary resources to ensure that the application, certification, and voucher issuance processes are completed in a timely manner.
4. Commit a sufficient number of staff and resources to ensure that inspections of units are completed in a timely manner.
5. Designate a staff to serve as the lead SV liaison.
6. Comply with the provisions of this MOU.
B. CoC Roles and Responsibilities [**The following responsibilities are listed for example purposes. **]
1. Designate and maintain a lead SV liaison to communicate with the PHA.
2. Refer eligible individuals and families to PHA using the community’s coordinated entry system.
3. Support eligible individuals and households in completing and applying for supportive documentation to accompany admissions application to the PHA (i.e., self-certifications, birth certificate, social security card, etc.).
4. Attend SV participant briefings when needed.
Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
5. Assess all households referred for SV for mainstream benefits and supportive services available to support eligible individuals and families through their transition.
6. Identify and provide supportive services to SV families. (While SV participants are not required to participate in services, the CoC should assure that services are available and accessible.)
7. Comply with the provisions of this MOU.
IV. CoC-funded supportive services that will be paired with SVs CoCs are encouraged to outline any existing partnerships with health and behavioral health care providers and agencies, state Medicaid agencies and agencies and organizations that may be leveraged to provide ongoing tenancy and wrap-around supportive services for those that may benefit from such services to maintain housing stability. All services provided by the CoC must be outlined in the MOU with the CoC and should demonstrate the community’s strategy to coordinate assistance through available resources. HUD recommends that PHAs and partnering CoCs seek a diverse range of supportive services by partnering with organizations trusted by people experiencing homelessness.
V. PHA Adopted Waivers and Alternative Requirements
Notice PIH 2022-24 provides [insert PHA name] with authority to adopt certain statutory and regulatory requirements and alternative requirements for Stability Vouchers. [insert PHA name] and [insert CoC/VSP name] have agreed to adopt the following waivers and alternative requirements:
[List all waivers and alternative requirements discussed, agreed upon by the PHA and CoC for the administration of SVs]
VI. PHA Permissive Prohibition Policies agreed upon by the PHA and CoC [Insert PHA name] in consultation with [insert CoC/VSP name] have agreed to adopt the following permissive prohibitions for the Stability Voucher program:
[List any permissive prohibition policies agreed upon by the PHA and CoC] Item 2.
Housing Authority
of the Administrative Plan 4/1/24
City of Needles
VII. Program Evaluation
[Insert PHA name] and [insert CoC /VSP] agree to cooperate with HUD, provide requested data to HUD or HUD-approved contractor delegated the responsibility of program evaluation protocols established by HUD or HUD-approved contractor.
Signed By:
________________________________________ ____________________ Public Housing Agency Executive Director Date
________________________________________ ____________________ CoC/VSP Executive Director Date
Item 2.
ADMISSIONS AND CONTINUED OCCUPANCY POLICY
FOR THE
PUBLIC HOUSING PROGRAM
Product # 301-001
May 1, 2005
Revision Date
February 1, 2006 March 1, 2016
October 1, 2006 March 1, 2017
June 1, 2007 July 1, 2017
September 1, 2008 July 1, 2018
September 1, 2009 June 1, 2019
August 1, 2010 July 1, 2020
June 1, 2011 May 1, 2021
June 1, 2012 September 1, 2022
June 1, 2013 March 1, 2023
July 1, 2014 November 1, 2023
June 1, 2015
1810 Gillespie Way, Suite 202
El Cajon, CA 92020
800.783.3100
www.nanmckay.com
Item 2.
Copyright 2023 by Nan McKay & Associates, Inc.
All rights reserved
Permission to reprint granted only to the Public Housing Authority that has purchased this plan from Nan McKay & Associates, Inc. This document may not be reprinted or distributed to any other person or entity other than the purchasing agency without the express written permission of Nan McKay & Associates, Inc.
Item 2.
ADMISSIONS AND
CONTINUED
OCCUPANCY POLICY
(ACOP)
EFFECTIVE [Agency Name]
Item 2.
ACO Policy
Admissions and Continued
Occupancy Policy (ACOP)
[ A GENCY NAME ]
Approved by the HA Board of Commissioners:
Submitted to HUD:
Copyright 2023 by Nan McKay & Associates, Inc.
All rights reserved
Permission to reprint granted only to the Public Housing Authority or Housing Agency that has purchased this plan from Nan McKay & Associates, Inc. This document may not be reprinted or distributed to any other person or entity other than the purchasing agency without the express written permission of Nan McKay & Associates, Inc.
Item 2.
Table of Contents
© Copyright 2023 Nan McKay & Associates ACOP 11/1/23
Unlimited copies may be made for internal use Page TOC-1 Introduction
ABOUT THE ACOP
REFERENCES CITED IN THE ACOP................................................................................. Intro-i REFERENCES CITED IN THE MODEL ACOP................................................................. Intro-ii Chapter 1
OVERVIEW OF THE PROGRAM AND PLAN
INTRODUCTION ....................................................................................................................... 1-1 PART I: THE PHA
I.A. OVERVIEW .................................................................................................................... 1-1 I.B. ORGANIZATION AND STRUCTURE OF THE PHA ................................................. 1-2 I.C. PHA MISSION ................................................................................................................ 1-3 I.D. THE PHA’S COMMITMENT TO ETHICS AND SERVICE........................................ 1-4 PART II: THE PUBLIC HOUSING PROGRAM
II.A. OVERVIEW AND HISTORY OF THE PROGRAM..................................................... 1-5 II.B. PUBLIC HOUSING PROGRAM BASICS..................................................................... 1-6 II.C. PUBLIC HOUSING PARTNERSHIPS .......................................................................... 1-6 II.D. APPLICABLE REGULATIONS .................................................................................. 1-10 PART III: THE ADMISSIONS AND CONTINUED OCCUPANCY POLICIES III.A. OVERVIEW AND PURPOSE OF THE POLICY........................................................ 1-11 III.B. CONTENTS OF THE POLICY .................................................................................... 1-11 III.C. UPDATING AND REVISING THE POLICY.............................................................. 1-12 Item 2.
Table of Contents
© Copyright 2023 Nan McKay & Associates ACOP 11/1/23
Unlimited copies may be made for internal use Page TOC-2 Chapter 2
FAIR HOUSING AND EQUAL OPPORTUNITY
INTRODUCTION ....................................................................................................................... 2-1 PART I: NONDISCRIMINATION
I.A. OVERVIEW .................................................................................................................... 2-3 I.B. NONDISCRIMINATION................................................................................................ 2-4 I.C. DISCRIMINATION COMPLAINTS .............................................................................. 2-5 PART II: POLICIES RELATED TO PERSONS WITH DISABILITIES
II.A. OVERVIEW .................................................................................................................... 2-9 II.B. DEFINITION OF REASONABLE ACCOMMODATION .......................................... 2-10 II.C. REQUEST FOR AN ACCOMMODATION................................................................. 2-11 II.D. VERIFICATION OF DISABILITY .............................................................................. 2-12 II.E. APPROVAL/DENIAL OF A REQUESTED ACCOMMODATION ........................... 2-13 II.F. PROGRAM ACCESSIBILITY FOR PERSONS WITH HEARING OR VISION IMPAIRMENTS ............................................................................................. 2-14 II.G. PHYSICAL ACCESSIBILITY ..................................................................................... 2-15 II.H. DENIAL OR TERMINATION OF ASSISTANCE ...................................................... 2-16 PART III: IMPROVING ACCESS TO SERVICES FOR PERSONS WITH
LIMITED ENGLISH PROFICIENCY (LEP)
III.A. OVERVIEW .................................................................................................................. 2-17 III.B. ORAL INTERPRETATION .......................................................................................... 2-18 III.C. WRITTEN TRANSLATION......................................................................................... 2-18 III.D. IMPLEMENTATION PLAN ........................................................................................ 2-19
EXHIBITS
2-1: DEFINITION OF A PERSON WITH A DISABILITY UNDER FEDERAL CIVIL RIGHTS LAWS ................................................................................................. 2-21 Item 2.
Table of Contents
© Copyright 2023 Nan McKay & Associates ACOP 11/1/23
Unlimited copies may be made for internal use Page TOC-3 Chapter 3
ELIGIBILITY
INTRODUCTION ....................................................................................................................... 3-1 PART I: DEFINITIONS OF FAMILY AND HOUSEHOLD MEMBERS
I.A. OVERVIEW .................................................................................................................... 3-3 I.B. FAMILY AND HOUSEHOLD ....................................................................................... 3-3 I.C. FAMILY BREAK-UP AND REMAINING MEMBER OF TENANT FAMILY .......... 3-4 I.D. HEAD OF HOUSEHOLD ............................................................................................... 3-5 I.E. SPOUSE, COHEAD, AND OTHER ADULT ................................................................ 3-5 I.F. DEPENDENTS AND MINORS...................................................................................... 3-6 I.G. FULL-TIME STUDENT ................................................................................................. 3-6 I.H. ELDERLY AND NEAR-ELDERLY PERSONS, AND ELDERLY FAMILY ............. 3-7 I.I. PERSONS WITH DISABILITIES AND DISABLED FAMILY ................................... 3-7 I.J. GUESTS .......................................................................................................................... 3-8 I.K. FOSTER CHILDREN AND FOSTER ADULTS ........................................................... 3-9 I.L. ABSENT FAMILY MEMBERS ................................................................................... 3-10 I.M. LIVE-IN AIDE .............................................................................................................. 3-12 PART II: BASIC ELIGIBILITY CRITERIA
II.A. INCOME ELIGIBILITY AND TARGETING .............................................................. 3-13 II.B. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS ......................................... 3-15 II.C. SOCIAL SECURITY NUMBERS ................................................................................ 3-17 II.D. FAMILY CONSENT TO RELEASE OF INFORMATION ......................................... 3-18 II.E. EIV SYSTEM SEARCHES ........................................................................................... 3-19 PART III: DENIAL OF ADMISSION
III.A. OVERVIEW .................................................................................................................. 3-21 III.B. REQUIRED DENIAL OF ADMISSION ...................................................................... 3-22 III.C. RESTRICTION ON ASSSITANCE BASED ON ASSETS ......................................... 3-24 III.D. OTHER PERMITTED REASONS FOR DENIAL OF ADMISSION ......................... 3-25 III.E. SCREENING ................................................................................................................. 3-28 III.F. CRITERIA FOR DECIDING TO DENY ADMISSION .............................................. 3-33 III.G. PROHIBITION AGAINST DENIAL OF ASSISTANCE TO VICTIMS
OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT,
STALKING, AND HUMAN TRAFFICKING ............................................................. 3-36 III.H. NOTICE OF ELIGIBILITY OR DENIAL .................................................................... 3-38
EXHIBITS
3-1: DETAILED DEFINITIONS RELATED TO DISABILITIES ...................................... 3-39 Item 2.
Table of Contents
© Copyright 2023 Nan McKay & Associates ACOP 11/1/23
Unlimited copies may be made for internal use Page TOC-4 Chapter 4
APPLICATIONS, WAITING LIST AND TENANT SELECTION
INTRODUCTION ....................................................................................................................... 4-1 PART I: THE APPLICATION PROCESS
I.A. OVERVIEW .................................................................................................................... 4-3 I.B. APPLYING FOR ASSISTANCE.................................................................................... 4-3 I.C. ACCESSIBILITY OF THE APPLICATION PROCESS................................................ 4-4 I.D. PLACEMENT ON THE WAITING LIST...................................................................... 4-5 PART II: MANAGING THE WAITING LIST
II.A. OVERVIEW .................................................................................................................... 4-7 II.B. ORGANIZATION OF THE WAITING LIST ................................................................ 4-7 II.C. OPENING AND CLOSING THE WAITING LIST ....................................................... 4-9 II.D. FAMILY OUTREACH ................................................................................................. 4-10 II.E. REPORTING CHANGES IN FAMILY CIRCUMSTANCES..................................... 4-11 II.F. UPDATING THE WAITING LIST .............................................................................. 4-12 PART III: TENANT SELECTION
III.A. OVERVIEW .................................................................................................................. 4-15 III.B. SELECTION METHOD................................................................................................ 4-16 III.C. NOTIFICATION OF SELECTION .............................................................................. 4-21 III.D. THE APPLICATION INTERVIEW ............................................................................. 4-22 III.E. FINAL ELIGIBILITY DETERMINATION ................................................................. 4-24 Chapter 5
OCCUPANCY STANDARDS AND UNIT OFFERS
INTRODUCTION ....................................................................................................................... 5-1 PART I: OCCUPANCY STANDARDS
I.A. OVERVIEW .................................................................................................................... 5-1 I.B. DETERMINING UNIT SIZE.......................................................................................... 5-2 I.C. EXCEPTIONS TO OCCUPANCY STANDARDS........................................................ 5-4 PART II: UNIT OFFERS
II.A. OVERVIEW .................................................................................................................... 5-5 II.B. NUMBER OF OFFERS................................................................................................... 5-5 II.C. TIME LIMIT FOR UNIT OFFER ACCEPTANCE OR REFUSAL .............................. 5-6 II.D. REFUSALS OF UNIT OFFERS ..................................................................................... 5-6 II.E. ACCESSIBLE UNITS..................................................................................................... 5-8 II.F. DESIGNATED HOUSING ............................................................................................. 5-8 Item 2.
Table of Contents
© Copyright 2023 Nan McKay & Associates ACOP 11/1/23
Unlimited copies may be made for internal use Page TOC-5 Chapter 6
INCOME AND RENT DETERMINATIONS
INTRODUCTION ....................................................................................................................... 6-1 PART I: ANNUAL INCOME
I.A. OVERVIEW .................................................................................................................... 6-3 I.B. HOUSEHOLD COMPOSITION AND INCOME .......................................................... 6-4 I.C. CALCULATING ANNUAL INCOME .......................................................................... 6-8 I.D. EARNED INCOME....................................................................................................... 6-10 I.E. EARNED INCOME DISALLOWANCE ...................................................................... 6-12 I.F. BUSINESS AND SELF-EMPLOYMENT INCOME ................................................... 6-14 I.G. STUDENT FINANCIAL ASSISTANCE...................................................................... 6-16 I.H. PERIODIC PAYMENTS .............................................................................................. 6-20 I.I. NONRECURRING INCOME ....................................................................................... 6-23 I.J. WELFARE ASSISTANCE ........................................................................................... 6-24 I.K. STATE PAYMENTS TO ALLOW INDIVIDUALS
WITH DISABILITIES TO LIVE AT HOME ............................................................... 6-25 I.L. CIVIL RIGHTS SETTLEMENTS ................................................................................ 6-25 I.M. ADDITIONAL EXCLUSIONS FROM ANNUAL INCOME ...................................... 6-26 PART II: ASSETS
II.A. OVERVIEW .................................................................................................................. 6-31 II.B. ASSETS DISPOSED OF FOR LESS THAN FAIR MARKET VALUE ..................... 6-32 II.C. ASSET INCLUSIONS AND EXCLUSIONS ............................................................... 6-34 II.D. DETERMINING INCOME FROM ASSETS ............................................................... 6-43 PART III: ADJUSTED INCOME
III.A. INTRODUCTION ......................................................................................................... 6-45 III.B. DEPENDENT DEDUCTION ........................................................................................ 6-46 III.C. ELDERLY OR DISABLED FAMILY DEDUCTION ................................................. 6-46 III.D. HEALTH AND MEDICAL CARE EXPENSES DEDUCTION .................................. 6-47 III.E. DISABILITY ASSISTANCE EXPENSES DEDUCTION ........................................... 6-48 III.F. CHILD CARE EXPENSE DEDUCTION ..................................................................... 6-50 III.G HARDSHIP EXEMPTIONS ......................................................................................... 6-53 III.H. PERMISSIVE DEDUCTIONS ...................................................................................... 6-59 Item 2.
Table of Contents
© Copyright 2023 Nan McKay & Associates ACOP 11/1/23
Unlimited copies may be made for internal use Page TOC-6 PART IV: CALCULATING RENT
IV.A. OVERVIEW OF INCOME-BASED RENT CALCULATIONS.................................. 6-61 IV.B. FINANCIAL HARDSHIPS AFFECTING MINIMUM RENT .................................... 6-64 IV.C. UTILITY ALLOWANCES ........................................................................................... 6-68 IV.D. PRORATED RENT FOR MIXED FAMILIES............................................................. 6-71 IV.E. FLAT RENTS AND FAMILY CHOICE IN RENTS ................................................... 6-72
EXHIBITS
6-1: ANNUAL INCOME FULL DEFINITION ................................................................... 6-75 6-2: TREATMENT OF FAMILY ASSETS ......................................................................... 6-80 6-3: THE EFFECT OF WELFARE BENEFIT REDUCTION............................................. 6-81 Item 2.
Table of Contents
© Copyright 2023 Nan McKay & Associates ACOP 11/1/23
Unlimited copies may be made for internal use Page TOC-7 Chapter 7
VERIFICATION
INTRODUCTION ....................................................................................................................... 7-1 PART I: GENERAL VERIFICATION REQUIREMENTS
I.A. FAMILY CONSENT TO RELEASE OF INFORMATION........................................... 7-1 I.B. USE OF OTHER PROGRAMS’ INCOME DETERMINATIONS ................................ 7-4 I.C. STREAMLINED INCOME DETERMINATIONS ........................................................ 7-7 I.D. VERIFICATION HIERARCHY ................................................................................... 7-10 I.E. LEVEL 5 AND 6 VERIFICATION:
UP-FRONT INCOME VERIFICATION (UIV) ........................................................... 7-11 I.F. LEVEL 4 VERIFICATION........................................................................................... 7-15 I.G. LEVEL 3 VERIFICATION:
WRITTEN, THIRD-PARTY FORM............................................................................. 7-17 I.H. LEVEL 2: ORAL THIRD-PARTY VERIFICATION .................................................. 7-18 I.I. LEVEL 1: NON-THIRD-PARTY VERIFICATION TECHNIQUE:
SELF-CERTIFICATION............................................................................................... 7-19 PART II: VERIFYING FAMILY INFORMATION
II.A. VERIFICATION OF LEGAL IDENTITY.................................................................... 7-21 II.B. SOCIAL SECURITY NUMBERS ................................................................................ 7-22 II.C. DOCUMENTATION OF AGE..................................................................................... 7-24 II.D. FAMILY RELATIONSHIPS ........................................................................................ 7-25 II.E. VERIFICATION OF STUDENT STATUS .................................................................. 7-26 II.F. DOCUMENTATION OF DISABILITY....................................................................... 7-26 II.G. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS......................................... 7-28 II.H. VERIFICATION OF PREFERENCE STATUS ........................................................... 7-18 PART III: VERIFYING INCOME AND ASSETS
III.A. EARNED INCOME....................................................................................................... 7-31 III.B. BUSINESS AND SELF EMPLOYMENT INCOME................................................... 7-32 III.C. PERIODIC PAYMENTS AND PAYMENTS IN LIEU OF EARNINGS.................... 7-33 III.D. ALIMONY OR CHILD SUPPORT .............................................................................. 7-34 III.E. NONRECURRING INCOME....................................................................................... 7-34 III.F. ASSETS AND INCOME FROM ASSETS................................................................... 7-35 III.G. ASSETS DISPOSED OF FOR LESS THAN FAIR MARKET VALUE..................... 7-37 III.H. NET INCOME FROM RENTAL PROPERTY ............................................................ 7-37 III.I. FEDERAL TAX REFUNDS OR REFUNDABLE TAX CREDITS ............................ 7-38 III.J. RETIREMENT ACCOUNTS ....................................................................................... 7-38 III.K. INCOME FROM EXCLUDED SOURCES ................................................................. 7-39 III.L. ZERO INCOME REVIEWS.......................................................................................... 7-40 III.M. STUDENT FINANCIAL ASSISTANCE...................................................................... 7-41 Item 2.
Table of Contents
© Copyright 2023 Nan McKay & Associates ACOP 11/1/23
Unlimited copies may be made for internal use Page TOC-8 PART IV: VERIFYING MANDATORY DEDUCTIONS
IV.A. DEPENDENT AND ELDERLY/DISABLED HOUSEHOLD DEDUCTIONS .......... 7-43 IV.B. HEALTH AND MEDICAL CARE EXPENSE DEDUCTION .................................... 7-44 IV.C. DISABILITY ASSISTANCE EXPENSES................................................................... 7-46 IV.D. CHILD CARE EXPENSES........................................................................................... 7-49
EXHIBITS
7-1: SUMMARY OF DOCUMENTATION REQUIREMENTS
FOR NONCITIZENS .................................................................................................... 7-52 Chapter 8
LEASING AND INSPECTIONS
INTRODUCTION ....................................................................................................................... 8-1 PART I: LEASING
I.A. OVERVIEW .................................................................................................................... 8-1 I.B. LEASE ORIENTATION................................................................................................. 8-2 I.C. EXECUTION OF LEASE............................................................................................... 8-3 I.D. MODIFICATIONS TO THE LEASE ............................................................................. 8-4 I.E. SECURITY DEPOSITS .................................................................................................. 8-6 I.F. PAYMENTS UNDER THE LEASE............................................................................... 8-7 PART II: INSPECTIONS
II.A. OVERVIEW .................................................................................................................. 8-11 II.B. PHA-CONDUCTED INSPECTIONS........................................................................... 8-11 II.C. NSPIRE INSPECTIONS ............................................................................................... 8-15
EXHIBITS
8-1: SMOKE-FREE POLICY............................................................................................... 8-19 Item 2.
Table of Contents
© Copyright 2023 Nan McKay & Associates ACOP 11/1/23
Unlimited copies may be made for internal use Page TOC-9 Chapter 9
REEXAMINATIONS
INTRODUCTION ....................................................................................................................... 9-1 PART I: ANNUAL REEXAMINATIONS FOR FAMILIES PAYING
INCOME-BASED RENTS
I.A. OVERVIEW .................................................................................................................... 9-3 I.B. SCHEDULING ANNUAL REEXAMINATIONS ......................................................... 9-4 I.C. CONDUCTING ANNUAL REEXAMINATIONS ........................................................ 9-5 I.D. CALCULATING ANNUAL INCOME AT ANNUAL REEXAMINATION................ 9-6 I.E OTHER CONSIDERATIONS........................................................................................ 9-8 I.F. EFFECTIVE DATES....................................................................................................... 9-9 PART II: REEXAMINATIONS FOR FAMILIES PAYING FLAT RENTS
II.A. OVERVIEW .................................................................................................................. 9-11 II.B. FULL REEXAMINATION OF FAMILY INCOME AND COMPOSITION.............. 9-12 II.C. REEXAMINATION OF FAMILY COMPOSITION (“ANNUAL UPDATE”) .......... 9-13 PART III: INTERIM REEXAMINATIONS
III.A. OVERVIEW .................................................................................................................. 9-15 III.B. CHANGES IN FAMILY AND HOUSEHOLD COMPOSITION................................ 9-16 III.C. CHANGES AFFECTING INCOME OR EXPENSES.................................................. 9-19 III.D. EFFECTIVE DATES..................................................................................................... 9-23 PART IV: RECALCULATING TENANT RENT
IV.A. OVERVIEW .................................................................................................................. 9-25 IV.B. CHANGES IN UTILITY ALLOWANCES .................................................................. 9-25 IV.C. NOTIFICATION OF NEW TENANT RENT............................................................... 9-25 IV.D. DISCREPANCIES......................................................................................................... 9-26 PART V: NON-INTERIM REEXAMINATION TRANSACTIONS
EXHIBITS
9-1: CALCULATING INCOME AT ANNUAL REEXAMINATION................................ 9-29 Item 2.
Table of Contents
© Copyright 2023 Nan McKay & Associates ACOP 11/1/23
Unlimited copies may be made for internal use Page TOC-10 Chapter 10
PETS
INTRODUCTION ..................................................................................................................... 10-1 PART I: ASSISTANCE ANIMALS
I.A. OVERVIEW .................................................................................................................. 10-3 I.B. APPROVAL OF ASSISTANCE ANIMALS................................................................ 10-4 I.C. CARE AND HANDLING............................................................................................. 10-6 PART II: PET POLICIES FOR ALL DEVELOPMENTS
II.A. OVERVIEW .................................................................................................................. 10-7 II.B. MANAGEMENT APPROVAL OF PETS .................................................................... 10-7 II.C. STANDARDS FOR PETS ............................................................................................ 10-9 II.D. PET RULES................................................................................................................. 10-11 PART III: PET DEPOSITS AND FEES IN
ELDERLY/DISABLED DEVELOPMENTS
III.A. OVERVIEW ................................................................................................................ 10-17 III.B. PET DEPOSITS........................................................................................................... 10-17 III.C. OTHER CHARGES..................................................................................................... 10-18 PART IV: PET DEPOSITS AND FEES IN GENERAL
OCCUPANCY DEVELOPMENTS
IV.A. OVERVIEW ................................................................................................................ 10-19 IV.B. PET DEPOSITS........................................................................................................... 10-19 IV.C. NON-REFUNDABLE NOMINAL PET FEE............................................................. 10-20 IV.D. OTHER CHARGES..................................................................................................... 10-21 Item 2.
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COMMUNITY SERVICE
INTRODUCTION ..................................................................................................................... 11-1 PART I: COMMUNITY SERVICE REQUIREMENT
I.A. OVERVIEW .................................................................................................................. 11-1 I.B. REQUIREMENTS......................................................................................................... 11-2 I.C. DETERMINATION OF EXEMPTION STATUS AND COMPLIANCE ................... 11-7 I.D. DOCUMENTATION AND VERIFICATION............................................................ 11-11 I.E. NONCOMPLIANCE................................................................................................... 11-13 PART II: IMPLEMENTATION OF COMMUNITY SERVICE
II.A. OVERVIEW ................................................................................................................ 11-17
EXHIBITS
11-1: COMMUNITY SERVICE AND SELF-SUFFICIENCY POLICY ............................ 11-19 11-2: DEFINITION OF A PERSON WITH A DISABILITY UNDER SOCIAL SECURITY ACTS 216(i)(l) and Section 1416(excerpt) FOR PURPOSES OF EXEMPTION FROM COMMUNITY SERVICE ................................................ 11-25 11-3: PHA DETERMINATION OF EXEMPTION FOR COMMUNITY SERVICE......... 11-27 11-4: CSSR WORK-OUT AGREEMENT ........................................................................... 11-29 Item 2.
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TRANSFER POLICY
INTRODUCTION ..................................................................................................................... 12-1 PART I: EMERGENCY TRANSFERS
I.A. OVERVIEW .................................................................................................................. 12-1 I.B. EMERGENCY TRANSFERS....................................................................................... 12-2 I.C. EMERGENCY TRANSFER PROCEDURES .............................................................. 12-3 I.D. COSTS OF TRANSFER................................................................................................ 12-3 PART II: PHA REQUIRED TRANSFERS
II.A. OVERVIEW .................................................................................................................. 12-5 II.B. TYPES OF PHA REQUIRED TRANSFERS ............................................................... 12-5 II.C. ADVERSE ACTION..................................................................................................... 12-8 II.D. COST OF TRANSFER.................................................................................................. 12-8 PART III: TRANSFERS REQUESTED BY TENANTS
III.A. OVERVIEW .................................................................................................................. 12-9 III.B. TYPES OF RESIDENT REQUESTED TRANSFERS................................................. 12-9 III.C. ELIGIBILITY FOR TRANSFER................................................................................ 12-10 III.D. SECURITY DEPOSITS .............................................................................................. 12-11 III.E. COST OF TRANSFER................................................................................................ 12-11 III.F. HANDLING OF REQUESTS..................................................................................... 12-12 PART IV: TRANSFER PROCESSING
IV.A. OVERVIEW ................................................................................................................ 12-13 IV.B. TRANSFER LIST........................................................................................................ 12-13 IV.C. TRANSFER OFFER POLICY .................................................................................... 12-14 IV.D. GOOD CAUSE FOR UNIT REFUSAL...................................................................... 12-14 IV.E. DECONCENTRATION .............................................................................................. 12-15 IV.F. REEXAMINATION POLICIES FOR TRANSFERS................................................. 12-15 Item 2.
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LEASE TERMINATIONS
INTRODUCTION ..................................................................................................................... 13-1 PART I: TERMINATION BY TENANT
I.A. TENANT CHOOSES TO TERMINATE THE LEASE................................................ 13-3 PART II: TERMINATION BY PHA – MANDATORY
II.A. OVERVIEW .................................................................................................................. 13-5 II.B. FAILURE TO PROVIDE CONSENT........................................................................... 13-5 II.C. FAILURE TO DOCUMENT CITIZENSHIP ............................................................... 13-5 II.D. FAILURE TO DISCLOSE AND DOCUMENT SOCIAL SECURITY NUMBERS... 13-6 II.E. FAILURE TO ACCEPT THE PHA’S OFFER OF A LEASE REVISION .................. 13-6 II.F. METHAMPHETAMINE CONVICTION..................................................................... 13-7 II.G LIFETIME REGISTERED SEX OFFENDERS ........................................................... 13-7 II.H. NONCOMPLIANCE WITH COMMUNITY SERVICE REQUIREMENTS.............. 13-7 II.I. DEATH OF A SOLE FAMILY MEMBER .................................................................. 13-7 II.J. OVER_INCOME FAMILIES [24 CFR 960.507; FR Notice 7/26/18; Notice PIH 2019-11; FR Notice 2/14/23]...................................................................... 13-8 PART III: TERMINATION BY PHA – OTHER AUTHORIZED REASONS III.A. OVERVIEW ................................................................................................................ 13-13 III.B. MANDATORY LEASE PROVISIONS...................................................................... 13-14 III.C. OTHER AUTHORIZED REASONS FOR TERMINATION..................................... 13-20 III.D. ALTERNATIVES TO TERMINATION OF TENANCY .......................................... 13-22 III.E. CRITERIA FOR DECIDING TO TERMINATE TENANCY ................................... 13-23 III.F. TERMINATIONS RELATED TO DOMESTIC VIOLENCE,
DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING................................ 13-27 PART IV: NOTIFICATION REQUIREMENTS, EVICTION
PROCEDURES AND RECORD KEEPING
IV.A. OVERVIEW ................................................................................................................ 13-31 IV.B. CONDUCTING CRIMINAL RECORDS CHECKS.................................................. 13-31 IV.C. DISCLOSURE OF CRIMINAL RECORDS TO FAMILY........................................ 13-32 IV.D. LEASE TERMINATION NOTICE............................................................................. 13-33 IV.E. EVICTION................................................................................................................... 13-36 IV.F. NOTIFICATION TO POST OFFICE ......................................................................... 13-36 IV.G. RECORD KEEPING ................................................................................................... 13-36 Item 2.
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EXHIBITS
13-1: SAMPLE NOTICE FOR OVER-INCOME FAMILIES – INITIAL NOTIFICATION FOR NPHOI FAMILY OPTION ................................................................................ 13-37 13-2: SAMPLE NOTICE FOR OVER-INCOME FAMILIES – INITIAL NOTIFICATION FOR TERMINATE ONLY OPTION.......................................................................... 13-40 13-3: SAMPLE NOTICE FOR OVER-INCOME FAMILIES – 12 MONTH NOTIFICATION FOR NPHOI FAMILY OPTION ................................................................................ 13-43
13.4: SAMPLE NOTICE FOR OVER-INCOME FAMILIES – 12 MONTH NOTIFICATION FOR TERMINATE ONLY OPTION.......................................................................... 13-46
13.5: SAMPLE NOTICE FOR OVER-INCOME FAMILIES – 24 MONTH NOTIFICATION FOR NPHOI FAMILY OPTION ................................................................................ 13-49
13.6: SAMPLE NOTICE FOR OVER-INCOME FAMILIES – 24 MONTH NOTIFICATION FOR TERMINATION ONLY OPTION ..................................................................... 13-52 Chapter 14
GRIEVANCES AND APPEALS
INTRODUCTION ..................................................................................................................... 14-1 PART I: INFORMAL HEARINGS FOR PUBLIC HOUSING APPLICANTS I.A. OVERVIEW .................................................................................................................. 14-1 I.B. INFORMAL HEARING PROCESS ............................................................................. 14-2 PART II: INFORMAL HEARINGS WITH REGARD TO NONCITIZENS
II.A. HEARING AND APPEAL PROVISIONS FOR NONCITIZENS............................... 14-7 PART III: GRIEVANCE PROCEDURES FOR PUBLIC HOUSING RESIDENTS III.A. REQUIREMENTS....................................................................................................... 14-11 III.B. DEFINITIONS............................................................................................................. 14-12 III.C. APPLICABILITY........................................................................................................ 14-13 III.D. INFORMAL SETTLEMENT OF GRIEVANCE........................................................ 14-14 III.E. PROCEDURES TO OBTAIN A HEARING .............................................................. 14-15 III.F. SELECTION OF HEARING OFFICER ..................................................................... 14-17 III.G. REMOTE HEARINGS................................................................................................ 14-18 III.H. PROCEDURES GOVERNING THE HEARING....................................................... 14-21 III.I. DECISION OF THE HEARING OFFICER................................................................ 14-25
EXHIBITS
14-1: GRIEVANCE PROCEDURE...................................................................................... 14-29 Item 2.
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PROGRAM INTEGRITY
INTRODUCTION ..................................................................................................................... 15-1 PART I: PREVENTING, DETECTING, AND
INVESTIGATING ERRORS AND PROGRAM ABUSE
I.A. PREVENTING ERRORS AND PROGRAM ABUSE ................................................. 15-3 I.B. DETECTING ERRORS AND PROGRAM ABUSE ................................................... 15-4 I.C. INVESTIGATING ERRORS AND PROGRAM ABUSE ........................................... 15-5 PART II: CORRECTIVE MEASURES AND PENALTIES
II.A. UNDER- OR OVERPAYMENT................................................................................... 15-7 II.B. FAMILY-CAUSED ERRORS AND PROGRAM ABUSE.......................................... 15-8 II.C. PHA-CAUSED ERRORS OR PROGRAM ABUSE .................................................. 15-10 II.D. CRIMINAL PROSECUTION ..................................................................................... 15-12 II.E. FRAUD AND PROGRAM ABUSE RECOVERIES.................................................. 15-12 Item 2.
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PROGRAM ADMINISTRATION
INTRODUCTION ..................................................................................................................... 16-1 PART I: SETTING UTILITY ALLOWANCES
I.A. OVERVIEW .................................................................................................................. 16-3 I.B UTILITY ALLOWANCES ........................................................................................... 16-3 I.C. SURCHARGES FOR PHA-FURNISHED UTILITIES................................................ 16-5 I.D. NOTICE REQUIREMENTS......................................................................................... 16-5 I.E. REASONABLE ACCOMMODATION AND INDIVIDUAL RELIEF....................... 16-6 PART II: ESTABLISHING FLAT RENTS
II.A. OVERVIEW .................................................................................................................. 16-7 II.B. FLAT RENTS................................................................................................................ 16-7 PART III: FAMILY DEBTS TO THE PHA
III.A. OVERVIEW .................................................................................................................. 16-9 III.B. REPAYMENT POLICY.............................................................................................. 16-10 PART IV: PUBLIC HOUSING ASSESSMENT SYSTEM (PHAS)
IV.A. OVERVIEW ................................................................................................................ 16-13 IV.B. PHAS INDICATORS .................................................................................................. 16-13 IV.C. PHAS SCORING......................................................................................................... 16-15 PART V: RECORD KEEPING
V.A. OVERVIEW ................................................................................................................ 16-17 V.B. RECORD RETENTION.............................................................................................. 16-17 V.C. RECORDS MANAGEMENT ..................................................................................... 16-18 PART VI: REPORTING REQUIREMENTS FOR CHILDREN WITH
ELEVATED BLOOD LEAD LEVEL
VI.A. REPORTING REQUIREMENTS ............................................................................... 16-21 Item 2.
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DOCUMENTATION, AND CONFIDENTIALITY
VII.A. OVERVIEW ................................................................................................................ 16-23 VII.B. DEFINITIONS............................................................................................................. 16-23 VII.C. NOTIFICATION ......................................................................................................... 16-25 VII.D. DOCUMENTATION .................................................................................................. 16-27 VII.E. CONFIDENTIALITY.................................................................................................. 16-29
EXHIBITS
16-1: SAMPLE NOTICE OF OCCUPANCY RIGHTS UNDER THE
VIOLENCE AGAINST WOMEN ACT, FORM HUD-5380 ..................................... 16-31 16-2: CERTIFICATION OF DOMESTIC VIOLENCE, DATING
VIOLENCE, SEXUAL ASSAULT, OR STALKING AND
ALTERNATE DOCUMENTATION, FORM HUD-5382.......................................... 16-37 16-3 EMERGENCY TRANSFER PLAN FOR VICTIMS OF
DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT,
OR STALKING........................................................................................................... 16-39 16-4 EMERGENCY TRANSFER REQUEST FOR CERTAIN VICTIMS
OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT,
OR STALKING, FORM HUD-5383........................................................................... 16-43 Glossary
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ABOUT THE ACOP
REFERENCES CITED IN THE ACOP
Authority for PHA policies is derived from many sources. Primary among these sources are regulations and guidance issued by HUD. State law also directs PHA policy. State law must be followed where such law exists and does not conflict with federal regulations. In the absence of legal requirements or HUD guidance, industry practice may lead to PHA policy. Finally, the public housing lease will affect PHA policy and therefore must be consistent with federal and state laws and regulations.
HUD
HUD provides the primary source of PHA policy through federal regulations, HUD Notices and handbooks. Compliance with federal regulations, current HUD Notices and HUD handbooks is mandatory.
HUD provides nonmandatory guidance to PHAs through HUD published guidebooks. Expired HUD Notices and handbooks also provide guidance for PHA policy. Following HUD guidance is optional, as long as PHA policies comply with federal law, federal regulations and mandatory policy. Because HUD has already determined that the guidance it provides is consistent with mandatory policies, PHA reliance on HUD guidance provides the PHA with a “safe harbor.” Content contained on the HUD website can provide further clarification of HUD policies. For example, FAQs on the HUD website can provide direction on the application of federal regulations to a specific pattern.
State Law
Where there is no mandatory federal guidance, PHAs must comply with state law, if it exists.
Where state law is more restrictive than federal law, but does not conflict with it, the PHA should follow the state law.
Industry Practice
Where no law or HUD authority exists on a particular subject, industry practice may support PHA policy. An industry practice is a way of doing things that is followed by most housing authorities.
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RESOURCES CITED IN THE ACOP
The ACOP cites several documents. Where a document or resource is cited frequently, it may be abbreviated. Where it is cited only once or twice, the ACOP may contain the entire name of the document or resource. Following is a key to abbreviations used for various sources that are frequently cited in the ACOP, and a list of references and document locations that are referenced in the ACOP or that may be helpful to you.
Public Housing Occupancy Guidebook
In June 2020 HUD began issuing a new version of the Public Housing Occupancy Guidebook chapter-by-chapter. Unlike the previous version of the guidebook in which chapters were numbered, the new version includes chapter names, but no numbers. As the new version of the guidebook has not yet been fully released, and since the previous version of the guidebook contains guidance not found in the new version, the policy cites both versions of the guidebook.
Therefore, where the Public Housing Occupancy Guidebook is cited in the policy, the citation will make a distinction between the “old” and “new” versions of the guidebook. The “old” version of the guidebook will continue to be cited as PH OCC GB with a chapter/page reference (example: PH OCC GB, p. 5-4). If HUD has also released a new chapter on the same topic with information that either adds new information or updates existing information from the previous guidebook, the new guidebook will be cited as New PH OCC GB with a chapter title and page reference (example: New PH OCC GB, Lease Requirements, p. 11).
On September 29, 2023, HUD issued Notice PIH 2023-27 to implement sections 102 and 104 of the Housing Opportunity Through Modernization Act of 2016 (HOTMA). The notice supersedes relevant portion of the guidebook, specifically the chapters on eligibility and occupancy, income determinations, and reexaminations. Where chapters have not been altered by the HOTMA implementation notice, the model policy continues to site the Public Housing Occupancy Guidebook.
Abbreviations
Throughout the ACOP, abbreviations are used to designate certain documents in citations. The following is a table of abbreviations of documents cited by the ACOP.
Abbreviation Document
CFR Code of Federal Regulations
HUD-50058 IB HUD-50058 Instruction Booklet
PH OCC GB Public Housing Occupancy Guidebook, June 2003 New PH OCC GB Public Housing Occupancy Guidebook, Various dates of release RHIIP FAQs Rental Housing Integrity Improvement Program (RHIIP) Frequently Asked Questions
VG Verification Guidance, March 2004 (attachment to PIH Notice 2004-1) Item 2.
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The HUD website is https://www.hud.gov/.
Guidebooks, handbooks, and other HUD resources may be found at the HUDClips website:
https://www.hud.gov/program_offices/administration/hudclips Following is a list of resources helpful to the PHA or referenced in the ACOP, and the online location of each.
Document and Location
Code of Federal Regulations
http://www.ecfr.gov
Enterprise Income Verification (EIV) System PHA Security Procedures https://www.hud.gov/sites/documents/EIVSECGUIDEPHA.PDF
Executive Order 11063
https://www.archives.gov/federal-register/codification/executive-order/11063.html Federal Register
https://www.federalregister.gov/
HOTMA Final Rule
https://www.federalregister.gov/documents/2023/02/14/2023-01617/housing-opportunitythrough-modernization-act-of-2016-implementation-of-sections-102-103-and104?utm_campaign=subscription+mailing+list&utm_source=federalregister.gov&utm_medium= email
HOTMA Implementation Notice, PIH 2023-27
https://www.hud.gov/sites/dfiles/OCHCO/documents/2023-27pihn.pdf Joint Statement of the Department of Housing and Urban Development and the Department of Justice, issued May 17, 2004
https://www.justice.gov/sites/default/files/crt/legacy/2010/12/14/joint_statement_ra.pdf Final Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition Against National Origin Discrimination Affecting Limited English Proficient Persons, published January 22, 2007
https://www.lep.gov/guidance/HUD_guidance_Jan07.pdf
Notice PIH 2010-26, Nondiscrimination and Accessibility Notice http://www.hud.gov/offices/pih/publications/notices/10/pih2010-26.pdf Notice PIH 2017-12, Administrative Guidance for Effective and Mandated Use of the Enterprise Income Verification (EIV) System
https://www.hud.gov/sites/documents/PIH2017-12EIVNOTICE.PDF Public Housing Occupancy Guidebook, June 2003
https://www.hud.gov/sites/documents/DOC_10760.PDF
VAWA Resources
https://www.hud.gov/vawa
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Chapter 1
OVERVIEW OF THE PROGRAM AND PLAN
INTRODUCTION
The PHA receives its operating subsidy for the public housing program from the Department of Housing and Urban Development. The PHA is not a federal department or agency. A public housing agency (PHA) is a governmental or public body, created and authorized by state law to develop and operate housing and housing programs for low-income families. The PHA enters into an Annual Contributions Contract with HUD to administer the public housing program. The PHA must ensure compliance with federal laws, regulations and notices and must establish policies and procedures to clarify federal requirements and to ensure consistency in program operation.
This chapter contains information about the PHA and its programs with emphasis on the public housing program. It also contains information about the purpose, intent and use of the plan and guide.
There are three parts to this chapter:
Part I: The Public Housing Agency (PHA). This part includes a description of the PHA, its jurisdiction, its programs, and its mission and intent.
Part II: The Public Housing Program. This part contains information about public housing operation, roles and responsibilities, and partnerships.
Part III: The Admissions and Continued Occupancy (ACOP). This part discusses the purpose and organization of the plan and its revision requirements.
PART I: THE PHA
1-I.A. OVERVIEW
This part describes the PHA’s creation and authorization, the general structure of the organization, and the relationship between the PHA Board and staff.
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1-I.B. ORGANIZATION AND STRUCTURE OF THE PHA
Public housing is funded by the federal government and administered by the [Insert PHA name] for the jurisdiction of [Insert jurisdiction name: City of _________ / County of __________ / Other].
PHAs are governed by a board of officials that are generally called “commissioners.” Although some PHAs may use a different title for their officials, this document will hitherto refer to the “board of commissioners” or the “board” when discussing the board of governing officials.
Commissioners are appointed in accordance with state housing law and generally serve in the same capacity as the directors of a corporation. The board of commissioners establishes policies under which the PHA conducts business and ensures that those policies are followed by PHA staff. The board is responsible for preserving and expanding the agency’s resources and assuring the agency’s continued viability and success.
Formal actions of the PHA are taken through written resolutions, adopted by the board and entered into the official records of the PHA.
The principal staff member of the PHA is the executive director (ED), who is selected and hired by the board. The ED oversees the day-to-day operations of the PHA and is directly responsible for carrying out the policies established by the commissioners. The ED’s duties include hiring, training, and supervising the PHA’s staff, as well as budgeting and financial planning for the agency. Additionally, the ED is charged with ensuring compliance with federal and state laws, and program mandates. In some PHAs, the ED is known by another title, such as chief executive officer or president.
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1-I.C. PHA MISSION
The purpose of a mission statement is to communicate the purpose of the agency to people inside and outside of the agency. It provides the basis for strategy development, identification of critical success factors, resource allocation decisions, as well as ensuring client and stakeholder satisfaction.
PHA Policy
[Insert the PHA’s mission statement from the Five-Year and Annual Plan] Item 2.
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1-I.D. THE PHA’S COMMITMENT TO ETHICS AND SERVICE
As a public service agency, the PHA is committed to providing excellent service to all public housing applicants, residents, and the public. In order to provide superior service, the PHA resolves to:
• Administer applicable federal and state laws and regulations to achieve high ratings in compliance measurement indicators while maintaining efficiency in program operation to ensure fair and consistent treatment of clients served. • Provide housing that is safe, habitable, functionally adequate, operable, and free of health and safety hazards—in compliance with the National Standards for the Physical Inspection of Real Estate: Inspection Standards (NSPIRE)—for very low- and low-income families. • Achieve a healthy mix of incomes in its public housing developments by attracting and retaining higher income families and by working toward deconcentration of poverty goals. • Encourage self-sufficiency of participant families and assist in the expansion of family opportunities which address educational, socio-economic, recreational and other human services needs.
• Promote fair housing and the opportunity for very low- and low-income families of all races, ethnicities, national origins, religions, ethnic backgrounds, and with all types of disabilities, to participate in the public housing program and its services. • Create positive public awareness and expand the level of family and community support in accomplishing the PHA’s mission.
• Attain and maintain a high level of standards and professionalism in day-to-day management of all program components.
• Administer an efficient, high-performing agency through continuous improvement of the PHA’s support systems and commitment to our employees and their development.
The PHA will make every effort to keep residents informed of program rules and regulations, and to advise participants of how the program rules affect them.
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PART II: THE PUBLIC HOUSING PROGRAM
1-II.A. OVERVIEW AND HISTORY OF THE PROGRAM
The intent of this section is to provide the public and staff an overview of the history and operation of public housing.
The United States Housing Act of 1937 (the “Act”) is responsible for the birth of federal housing program initiatives, known as public housing. The Act was intended to provide financial assistance to states and cities for public works projects, slum clearance and the development of affordable housing for low-income residents. There have been many changes to the program since its inception in 1937.
The Housing Act of 1965 established the availability of federal assistance, administered through local public agencies, to provide rehabilitation grants for home repairs and rehabilitation. This act also created the federal Department of Housing and Urban Development (HUD).
The Housing Act of 1969 created an operating subsidy for the public housing program for the first time. Until that time, public housing was a self-sustaining program.
In 1998, the Quality Housing and Work Responsibility Act (QHWRA) – also known as the Public Housing Reform Act or Housing Act of 1998 – was signed into law. Its purpose was to provide more private sector management guidelines to the public housing program and provide residents with greater choices. It also allowed PHAs more remedies to replace or revitalize severely distressed public housing developments. Highlights of the Reform Act include: the establishment of flat rents; the requirement for PHAs to develop five-year and annual plans; income targeting, a requirement that 40% of all new admissions in public housing during any given fiscal year be reserved for extremely low-income families; and resident self-sufficiency incentives.
On July 29, 2016, the Housing Opportunity Through Modernization Act of 2016 (HOTMA) was signed into law. HOTMA made numerous changes to statutes governing HUD programs, including sections of the United States Housing Act of 1937. Title I of HOTMA contains 14 different sections that impact the public housing and Section 8 programs. The Final Rule implementing broad changes to income and assets in Sections 102 and 104 of HOTMA, and for PHAs that administer the public housing program over-income provisions in Section 103, was officially published in the Federal Register on February 14, 2023. On September 29, 2023, HUD issued notice PIH 2023-27, which provided guidance to PHAs on the implementation of the program changes described in the Final Rule.
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1-II.B. PUBLIC HOUSING PROGRAM BASICS
HUD writes and publishes regulations in order to implement public housing laws enacted by Congress. HUD contracts with the PHA to administer programs in accordance with HUD regulations and provides an operating subsidy to the PHA. The PHA must create written policies that are consistent with HUD regulations. Among these policies is the PHA’s Admissions and Continued Occupancy Policy (ACOP). The ACOP must be approved by the board of commissioners of the PHA.
The job of the PHA pursuant to HUD regulations is to provide safe, habitable dwelling units to low-income families at an affordable rent. The PHA screens applicants for public housing and, if they are determined to be eligible for the program, the PHA makes an offer of a housing unit. If the applicant accepts the offer, the PHA and the applicant will enter into a written lease agreement. At this point, the applicant becomes a tenant in the public housing program.
In the context of the public housing program, a tenant is defined as the adult person(s) (other than a live-in aide who (1) executed the lease with the PHA as lessee of the dwelling unit, or, if no such person now resides in the unit, (2) who resides in the unit, and who is the remaining head of household of the tenant family residing in the dwelling unit. [24 CFR 966.53]. The Public Housing Occupancy Guidebook refers to tenants as “residents.” The terms “tenant” and “resident” are used interchangeably in this policy. Additionally, this policy uses the term “family” or “families” for residents or applicants, depending on context.
Since the PHA owns the public housing development, the PHA is the landlord. The PHA must comply with all of the legal and management responsibilities of a landlord in addition to administering the program in accordance with HUD regulations and PHA policy. 1-II.C. PUBLIC HOUSING PARTNERSHIPS
To administer the public housing program, the PHA must enter into an Annual Contributions Contract (ACC) with HUD. The PHA also enters into a contractual relationship with the tenant through the public housing lease. These contracts define and describe the roles and responsibilities of each party.
In addition to the ACC, the PHA and family must also comply with federal regulations and other HUD publications and directives. For the program to work and be successful, all parties involved – HUD, the PHA, and the tenant – play an important role.
The chart on the following page illustrates key aspects of these relationships.
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The Public Housing Relationships
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What does HUD do?
Federal law is the source of HUD responsibilities. HUD has the following major responsibilities:
• Develop regulations, requirements, handbooks, notices and other guidance to implement housing legislation passed by Congress
• Allocate operating subsidies to PHAs
• Allocate capital funding to PHAs
• Provide technical assistance to PHAs on interpreting and applying program requirements • Monitor PHA compliance with program requirements and PHA performance in program administration.
What does the PHA do?
The PHA’s responsibilities originate in federal regulations and the ACC. The PHA owns and manages public housing developments, administers the program under contract with HUD and has the following major responsibilities:
• Ensure compliance with all non-discrimination, equal opportunity, and fair housing laws, and ensure that the program is accessible to persons with disabilities • Establish local policies and procedures for operating the program • Accept applications from interested applicant families and determine whether they are income eligible for the program
• Maintain waiting list and select families for admission • Screen applicant families for suitability as renters
• Maintain housing units by making any necessary repairs in a timely manner • Make unit offers to families (minimize vacancies without overcrowding) • Maintain properties to the standard of safe, habitable dwelling units (including assuring compliance with National Standards for the Physical Inspection of Real Estate (NSPIRE)) • Make sure the PHA has adequate financial resources to maintain its housing stock • Perform regular reexaminations of family income and composition in accordance with HUD requirements
• Collect rent due from the assisted family and comply with and enforce provisions of the lease • Ensure that families comply with program rules
• Provide families with prompt and professional service • Comply with all fair housing and equal opportunity requirements, HUD regulations and requirements, the ACC, HUD-approved applications for funding, the PHA’s ACOP, and other applicable federal, state and local laws.
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What does the tenant do?
The tenant’s responsibilities are articulated in the public housing lease. The tenant has the following broad responsibilities:
• Comply with the terms of the lease and PHA house rules, as applicable • Provide the PHA with complete and accurate information, determined by the PHA to be necessary for administration of the program
• Cooperate in attending all appointments scheduled by the PHA • Allow the PHA to inspect the unit at reasonable times and after reasonable notice • Take responsibility for care of the housing unit, including any violations of NSPIRE caused by the family
• Not engage in drug-related or violent criminal activity • Notify the PHA before moving or termination of the lease • Use the assisted unit only for residence and as the sole residence of the family. Not sublet the unit or assign the lease
• Promptly notify the PHA of any changes in family composition • Not commit fraud, bribery, or any other corrupt or criminal act in connection with any housing programs
• Take care of the housing unit and report maintenance problems to the PHA promptly If all parties fulfill their obligations in a professional and timely manner, the program responsibilities will be fulfilled in an effective manner.
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Applicable regulations include:
• 24 CFR Part 5: General Program Requirements
• 24 CFR Part 8: Nondiscrimination
• 24 CFR Part 35: Lead-Based Paint
• 24 CFR Part 902: Public Housing Assessment System
• 24 CFR Part 903: Public Housing Agency Plans
• 24 CFR Part 945: Designated Housing
• 24 CFR Part 960: Admission and Occupancy Policies
• 24 CFR Part 965: PHA-Owned or Leased Projects – General Provisions • 24 CFR Part 966: Lease and Grievance Procedures
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The ACOP is the PHA’s written statement of policies used to carry out the housing program in accordance with federal law and regulations, and HUD requirements. The ACOP is required by HUD, and it must be available for public review [CFR 24 Part 903]. The ACOP also contains policies that support the objectives contained in the PHA’s Agency Plan.
All issues related to public housing not addressed in this ACOP are governed by federal regulations, HUD handbooks and guidebooks, notices and applicable state and local laws. The policies in this ACOP have been designed to ensure compliance with the consolidated ACC and all HUD-approved applications for program funding. The PHA is responsible for complying with all changes in HUD regulations pertaining to public housing. If such changes conflict with this plan, HUD regulations will have precedence.
1-III.B. CONTENTS OF THE POLICY
Unlike the housing choice voucher program, HUD regulations for public housing do not contain a list of what must be included in the ACOP. However, individual regulations contain requirements of inclusion in the PHA’s written policy. At a minimum, the ACOP plan should cover PHA policies on these subjects:
• The organization of the waiting list and how families are selected and offered available units, including any PHA admission preferences, procedures for removing applicant names from the waiting list, and procedures for closing and reopening the PHA waiting list (Chapters 4 and 5);
• Transfer policies and the circumstances under which a transfer would take precedence over an admission (Chapter 12);
• Standards for determining eligibility, suitability for tenancy, and the size and type of the unit needed (Chapters 3 and 5);
• Procedures for verifying the information the family has provided (Chapter 7); • The method for achieving deconcentration of poverty and income-mixing of public housing developments (Chapter 4);
• Grievance procedures (Chapter 14);
• Policies concerning payment by a family to the PHA of amounts the family owes the PHA (Chapter 15 and 16);
• Interim redeterminations of family income and composition (Chapter 9); • Policies regarding community service requirements (Chapter 11); • Polices and rules about safety and ownership of pets in public housing (Chapter 10).
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HUD makes a distinction between mandatory policies and non-mandatory policies:
• Mandatory policies: those driven by legislation, regulations, current handbooks, current PIH notices, and legal opinions from the Office of General Counsel • Optional, non-binding guidance: includes guidebooks, FAQs, PIH notices that have expired, and recommendations from individual HUD staff.
HUD expects PHAs to develop policies and procedures that are consistent with mandatory policies and to make clear the optional policies the PHA has adopted. The ACOP is comprised of mandatory policies and optional PHA policy. HUD emphasizes the need for a clearly written and comprehensive ACOP to guide staff in the clear and consistent application of policy.
HUD suggestions, recommendations, written issuances, and guidance are consistent with mandatory federal policy. Therefore, using HUD guidance in the preparation of PHA policy, even though it is not mandatory, provides a PHA with a “safe harbor.” If a PHA adopts an alternative policy, it must make its own determination that such policy is consistent with legislation, regulations, and other mandatory requirements. There may be very good reasons for adopting a policy or procedure that is different than that suggested by HUD, but PHAs should carefully think through those decisions and be able to articulate how their policy is consistent with federal laws, regulations and mandatory policy.
1-III.C. UPDATING AND REVISING THE POLICY
The PHA will revise this ACOP as needed to comply with changes in HUD regulations. The original policy and any changes must be approved by the board of commissioners of the PHA, the pertinent sections included in the Agency Plan, and a copy provided to HUD.
PHA Policy
The PHA will review and update the ACOP as needed to reflect changes in regulations, PHA operations, or when needed to ensure staff consistency in operation.
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FAIR HOUSING AND EQUAL OPPORTUNITY
INTRODUCTION
This chapter explains the laws and HUD regulations requiring PHAs to affirmatively further civil rights and fair housing in all federally assisted housing programs. The letter and spirit of these laws are implemented through consistent policy and procedures. The responsibility to further nondiscrimination pertains to all areas of the PHA’s public housing operations.
This chapter describes HUD regulations and PHA policies related to these topics in three parts:
Part I: Nondiscrimination. This part presents the body of laws and regulations governing the responsibilities of the PHA regarding nondiscrimination.
Part II: Policies Related to Persons with Disabilities. This part discusses the rules and policies of the public housing program related to reasonable accommodation for persons with disabilities. These rules and policies are based on the Fair Housing Act (42.U.S.C.) and Section 504 of the Rehabilitation Act of 1973, and incorporate guidance from the Joint Statement of The Department of Housing and Urban Development and the Department of Justice (DOJ), issued May 17, 2004.
Part III: Prohibition of Discrimination Against Limited English Proficiency Persons. This part details the obligations of the PHA to ensure meaningful access to the public housing program and its activities by persons with limited English proficiency (LEP). This part incorporates the Final Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition against National Origin Discrimination Affecting Limited English Proficient Persons published January 22, 2007, in the Federal Register.
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2-I.A. OVERVIEW
Federal laws require PHAs to treat all applicants and tenant families equally, providing the same quality of service, regardless of family characteristics and background. Federal law prohibits discrimination in housing on the basis of race, color, religion, sex, national origin, age, familial status, and disability. In addition, HUD regulations provide for additional protections regarding sexual orientation, gender identity, and marital status. The PHA will comply fully with all federal, state, and local nondiscrimination laws, and with rules and regulations governing fair housing and equal opportunity in housing and employment, including:
• Title VI of the Civil Rights Act of 1964
• Title VIII of the Civil Rights Act of 1968 (as amended by the Community Development Act of 1974 and the Fair Housing Amendments Act of 1988)
• Executive Orders 11063 and 13988
• Section 504 of the Rehabilitation Act of 1973
• The Age Discrimination Act of 1975
• Title II of the Americans with Disabilities Act (to the extent that it applies, otherwise Section 504 and the Fair Housing Amendments govern)
• The Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity Final Rule, published in the Federal Register February 3, 2012, and further clarified in Notice PIH 2014-20
• The Violence against Women Act (VAWA)
• Any applicable state laws or local ordinances and any legislation protecting individual rights of tenants, applicants, or staff that may subsequently be enacted When more than one civil rights law applies to a situation, the laws will be read and applied together.
PHA Policy
No state or local nondiscrimination laws or ordinances apply.
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Federal regulations prohibit discrimination against certain protected classes and other groups of people. State and local requirements, as well as PHA policies, can prohibit discrimination against additional classes of people.
The PHA shall not discriminate because of race, color, sex, religion, familial status, age, disability or national origin (called “protected classes”).
Familial status includes children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18.
The PHA will not discriminate on the basis of marital status, gender identity, or sexual orientation [FR Notice 02/03/12; Executive Order 13988].
PHA Policy
The PHA does not identify any additional protected classes.
The PHA will not use any of these factors to:
• Deny to any family the opportunity to apply for housing, nor deny to any qualified applicant the opportunity to participate in the public housing program • Provide housing that is different from that provided to others • Subject anyone to segregation or disparate treatment
• Subject anyone to sexual harassment
• Restrict anyone's access to any benefit enjoyed by others in connection with the housing program
• Treat a person differently in determining eligibility or other requirements for admission • Steer an applicant or tenant toward or away from a particular area based on any of these factors
• Deny anyone access to the same level of services
• Deny anyone the opportunity to participate in a planning or advisory group that is an integral part of the housing program
• Discriminate in the provision of residential real estate transactions • Discriminate against someone because they are related to or associated with a member of a protected class
• Publish or cause to be published an advertisement or notice indicating the availability of housing that prefers or excludes persons who are members of a protected class Item 2.
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The PHA must take steps to ensure that families are fully aware of all applicable civil rights laws. As part of the public housing orientation process, the PHA will provide information to public housing applicant families about civil rights requirements. 2-I.C. DISCRIMINATION COMPLIANTS
General Housing Discrimination Complaints
If an applicant or tenant family believes that any family member has been discriminated against by the PHA, the family should advise the PHA. The PHA should make every reasonable attempt to determine whether the applicant or tenant family’s assertions have merit and take any warranted corrective action.
In all cases, the PHA will advise the family that they may file a fair housing complaint if the family feels they have been discriminated against under the Fair Housing Act.
PHA Policy
Applicants or tenant families who believe that they have been subject to unlawful discrimination may notify the PHA either orally or in writing.
Within 10 business days of receiving the complaint, the PHA will investigate and attempt to remedy discrimination complaints made against the PHA. The PHA will also advise the family of their right to file a fair housing complaint with HUD’s Office of Fair Housing and Equal Opportunity (FHEO). The fair housing poster, posted in conspicuous and accessible locations in PHA lobbies, will reference how to file a complaint with FHEO.
The PHA will keep a record of all complaints, investigations, notices, and corrective actions. (See Chapter 16.)
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PHA Policy
Applicants or tenant families who believe that they have been subject to unlawful discrimination based on marital status, gender identity, or sexual orientation under the Equal Access Rule may notify the PHA either orally or in writing.
Within 10 business days of receiving the complaint, the PHA will provide a written notice to those alleged to have violated the rule. The PHA will also send a written notice to the complainant informing them that notice was sent to those alleged to have violated the rule, as well as information on how to complete and submit a housing discrimination complaint form to HUD’s Office of Fair Housing and Equal Opportunity (FHEO).
The PHA will attempt to remedy discrimination complaints made against the PHA and will conduct an investigation into all allegations of discrimination.
Within 10 business days following the conclusion of the PHA’s investigation, the PHA will provide the complainant and those alleged to have violated the rule with findings and either a proposed corrective action plan or an explanation of why corrective action is not warranted.
The PHA will keep a record of all complaints, investigations, notices, and corrective actions. (See Chapter 16.)
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A complainant may, not later than one year after an alleged VAWA violation has occurred or terminated, file a complaint with FHEO alleging such violation. If there is a violation that began prior to a year before the complaint is filed, but it continues into the one-year time period, HUD will accept the complaint. FHEO will investigate the complaint if it is timely and FHEO otherwise has jurisdiction. If a complaint is filed more than one year after the alleged violation occurred or terminated, FHEO may, but is not required to, investigate the allegations under the additional authority and procedures described in FHEO 2023-01.
Complaints do not need to allege a violation of the Fair Housing Act for FHEO to accept and investigate the complaint.
PHA Policy
Applicants or tenant families who wish to file a VAWA complaint against the PHA may notify the PHA either orally or in writing.
The PHA will advise the family of their right to file a VAWA complaint with HUD’s Office of Fair Housing and Equal Opportunity (FHEO). The PHA will inform the family that not later than one year after an alleged VAWA violation has occurred or terminated, applicants and tenants who believe they have been injured by a VAWA violation or will be injured by such a violation that is about to occur may file a VAWA complaint using FHEO’s online complaint form via mail, email, or telephone.
The PHA will attempt to remedy complaints made against the PHA and will conduct an investigation into all allegations of discrimination.
The PHA will keep a record of all complaints, investigations, notices, and corrective actions. (See Chapter 16.)
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2-II.A. OVERVIEW
One type of disability discrimination prohibited by the Fair Housing Act is the refusal to make reasonable accommodation in rules, policies, practices, or services when such accommodation may be necessary to afford a person with a disability the equal opportunity to use and enjoy a program or dwelling under the program.
The PHA must ensure that persons with disabilities have full access to the PHA’s programs and services. This responsibility begins with the first inquiry of an interested family and continues through every programmatic area of the public housing program [24 CFR 8].
The PHA must provide a notice to each tenant that the tenant may, at any time during the tenancy, request reasonable accommodation of a handicap of a household member, including reasonable accommodation so that the tenant can meet lease requirements or other requirements of tenancy [24 CFR 966.7(b)].
PHA Policy
The PHA will ask all applicants and resident families if they require any type of accommodations, in writing, on the intake application, reexamination documents, and notices of adverse action by the PHA, by including the following language:
“If you or anyone in your family is a person with disabilities, and you require a specific accommodation in order to fully utilize our programs and services, please contact the housing authority.”
A specific position and phone number will be provided as the contact person for requests for accommodation for persons with disabilities.
The PHA will display posters and other housing information and signage in locations throughout the PHA’s office in such a manner as to be easily readable from a wheelchair.
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A “reasonable accommodation” is a change, exception, or adjustment to a policy, practice or service that may be necessary for a person with a disability to have an equal opportunity to use and enjoy a dwelling, including public and common use spaces. Since policies and services may have a different effect on persons with disabilities than on other persons, treating persons with disabilities exactly the same as others will sometimes deny them an equal opportunity to use and enjoy a dwelling. [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act]
Federal regulations stipulate that requests for accommodations will be considered reasonable if they do not create an "undue financial and administrative burden" for the PHA, or result in a “fundamental alteration” in the nature of the program or service offered. A fundamental alteration is a modification that alters the essential nature of a provider’s operations.
Types of Reasonable Accommodations
When it is reasonable (see definition above and Section 2-II.E), the PHA shall accommodate the needs of a person with disabilities. Examples include but are not limited to:
• Permitting applications and reexaminations to be completed by mail • Providing “large-print” forms
• Conducting home visits
• Permitting a higher utility allowance for the unit if a person with disabilities requires the use of specialized equipment related to the disability
• Modifying or altering a unit or physical system if such a modification or alteration is necessary to provide equal access to a person with a disability • Installing a ramp into a dwelling or building
• Installing grab bars in a bathroom
• Installing visual fire alarms for hearing impaired persons • Allowing a PHA-approved live-in aide to reside in the unit if that person is determined to be essential to the care of a person with disabilities, is not obligated for the support of the person with disabilities, and would not be otherwise living in the unit. • Providing a designated handicapped-accessible parking space • Allowing an assistance animal
• Permitting an authorized designee or advocate to participate in the application or certification process and any other meetings with PHA staff
• Displaying posters and other housing information in locations throughout the PHA's office in such a manner as to be easily readable from a wheelchair Item 2.
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If an applicant or participant indicates that an exception, change, or adjustment to a rule, policy, practice, or service is needed because of a disability, HUD requires that the PHA treat the information as a request for a reasonable accommodation, even if no formal request is made [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act].
The family must explain what type of accommodation is needed to provide the person with the disability full access to the PHA’s programs and services.
If the need for the accommodation is not readily apparent or known to the PHA, the family must explain the relationship between the requested accommodation and the disability.
PHA Policy
The PHA will encourage the family to make its request in writing using a reasonable accommodation request form. However, the PHA will consider the accommodation any time the family indicates that an accommodation is needed whether or not a formal written request is submitted.
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The regulatory civil rights definition for persons with disabilities is provided in Exhibit 2-1 at the end of this chapter. The definition of a person with a disability for the purpose of obtaining a reasonable accommodation is much broader than the HUD definition of disability which is used for waiting list preferences and income allowances.
Before providing an accommodation, the PHA must determine that the person meets the definition of a person with a disability, and that the accommodation will enhance the family’s access to the PHA’s programs and services.
If a person’s disability is obvious or otherwise known to the PHA, and if the need for the requested accommodation is also readily apparent or known, no further verification will be required [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act].
If a family indicates that an accommodation is required for a disability that is not obvious or otherwise known to the PHA, the PHA must verify that the person meets the definition of a person with a disability, and that the limitations imposed by the disability require the requested accommodation.
When verifying a disability, the PHA will follow the verification policies provided in Chapter 7.
All information related to a person’s disability will be treated in accordance with the confidentiality policies provided in Chapter 16 (Program Administration). In addition to the general requirements that govern all verification efforts, the following requirements apply when verifying a disability:
• Third-party verification must be obtained from an individual identified by the family who is competent to make the determination. A doctor or other medical professional, a peer support group, a non-medical service agency, or a reliable third party who is in a position to know about the individual’s disability may provide verification of a disability [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act].
• The PHA must request only information that is necessary to evaluate the disability-related need for the accommodation. The PHA may not inquire about the nature or extent of any disability.
• Medical records will not be accepted or retained in the participant file. • In the event that the PHA does receive confidential information about a person’s specific diagnosis, treatment, or the nature or severity of the disability, the PHA will dispose of it. In place of the information, the PHA will note in the file that the disability and other requested information have been verified, the date the verification was received, and the name and address of the knowledgeable professional who sent the information [Notice PIH 2010-26].
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The PHA must approve a request for an accommodation if the following three conditions are met.
• The request was made by or on behalf of a person with a disability. • There is a disability-related need for the accommodation. • The requested accommodation is reasonable, meaning it would not impose an undue financial and administrative burden on the PHA, or fundamentally alter the nature of the PHA’s operations.
Requests for accommodations must be assessed on a case-by-case basis. The determination of undue financial and administrative burden must be made on a case-by-case basis involving various factors, such as the overall size of the PHA’s program with respect to the number of employees, type of facilities and size of budget, type of operation including composition and structure of workforce, the nature and cost of the requested accommodation, and the availability of alternative accommodations that would effectively meet the family’s disability-related needs.
Before making a determination whether to approve the request, the PHA may enter into discussion and negotiation with the family, request more information from the family, or may require the family to sign a consent form so that the PHA may verify the need for the requested accommodation.
PHA Policy
After a request for an accommodation is presented, the PHA will respond, in writing, within 10 business days.
If the PHA denies a request for an accommodation because there is no relationship, or nexus, found between the disability and the requested accommodation, the notice will inform the family of the right to appeal the PHA’s decision through an informal hearing (if applicable) or the grievance process (see Chapter 14).
If the PHA denies a request for an accommodation because it is not reasonable (it would impose an undue financial and administrative burden or fundamentally alter the nature of the PHA’s operations), the PHA will discuss with the family whether an alternative accommodation could effectively address the family’s disability-related needs without a fundamental alteration to the public housing program and without imposing an undue financial and administrative burden.
If the PHA believes that the family has failed to identify a reasonable alternative accommodation after interactive discussion and negotiation, the PHA will notify the family, in writing, of its determination within 10 business days from the date of the most recent discussion or communication with the family. The notice will inform the family of the right to appeal the PHA’s decision through an informal hearing (if applicable) or the grievance process (see Chapter 14).
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IMPAIRMENTS
HUD regulations require the PHA to take reasonable steps to ensure that persons with disabilities related to hearing and vision have reasonable access to the PHA's programs and services [24 CFR 8.6].
At the initial point of contact with each applicant, the PHA shall inform all applicants of alternative forms of communication that can be used other than plain language paperwork.
PHA Policy
To meet the needs of persons with hearing impairments, TTD/TTY (text telephone display / teletype) communication will be available.
To meet the needs of persons with vision impairments, large-print and audio versions of key program documents will be made available upon request. When visual aids are used in public meetings or presentations, or in meetings with PHA staff, one-on-one assistance will be provided upon request.
Additional examples of alternative forms of communication are sign language interpretation; having material explained orally by staff; or having a third party representative (a friend, relative or advocate, named by the applicant) to receive, interpret and explain housing materials and be present at all meetings.
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The PHA must comply with a variety of regulations pertaining to physical accessibility, including the following.
• Notice PIH 2010-26
• Section 504 of the Rehabilitation Act of 1973
• The Americans with Disabilities Act of 1990
• The Architectural Barriers Act of 1968
• The Fair Housing Act of 1988
The PHA’s policies concerning physical accessibility must be readily available to applicants and resident families. They can be found in three key documents. • This policy, the Admissions and Continued Occupancy Policy, describes the key policies that govern the PHA’s responsibilities with regard to physical accessibility. • Notice PIH 2010-26 summarizes information about pertinent laws and implementing regulations related to nondiscrimination and accessibility in federally-funded housing programs.
• The PHA Plan provides information about self-evaluation, needs assessment, and transition plans.
The design, construction, or alteration of PHA facilities must conform to the Uniform Federal Accessibility Standards (UFAS). Notice PIH 2010-26 contains specific information on calculating the percentages of units for meeting UFAS requirements.
Newly-constructed facilities must be designed to be readily accessible to and usable by persons with disabilities. Alterations to existing facilities must be accessible to the maximum extent feasible, defined as not imposing an undue financial and administrative burden on the operations of the public housing program.
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A PHA’s decision to deny or terminate the assistance of a family that includes a person with disabilities is subject to consideration of reasonable accommodation [24 CFR 966.7].
When applicants with disabilities are denied assistance, the notice of denial must inform them of their right to request an informal hearing [24 CFR 960.208(a)].
When a family’s lease is terminated, the notice of termination must inform the family of their right to request a hearing in accordance with the PHA’s grievance process [24 CFR 966.4(l)(3)(ii)].
When reviewing reasonable accommodation requests, the PHA must consider whether reasonable accommodation will allow the family to overcome the problem that led to the PHA’s decision to deny or terminate assistance. If a reasonable accommodation will allow the family to meet the requirements, the PHA must make the accommodation [24 CFR 966.7].
In addition, the PHA must provide reasonable accommodation for persons with disabilities to participate in the hearing process [24 CFR 966.56(h)].
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LIMITED ENGLISH PROFICIENCY (LEP)
2-III.A. OVERVIEW
Language for Limited English Proficiency Persons (LEP) can be a barrier to accessing important benefits or services, understanding and exercising important rights, complying with applicable responsibilities, or understanding other information provided by the public housing program. In certain circumstances, failure to ensure that LEP persons can effectively participate in or benefit from federally-assisted programs and activities may violate the prohibition under Title VI against discrimination on the basis of national origin. This part incorporates the Final Guidance to Federal Assistance Recipients Regarding Title VI Prohibition against National Origin Discrimination Affecting Limited English Proficient Persons, published January 22, 2007, in the Federal Register.
The PHA will take affirmative steps to communicate with people who need services or information in a language other than English. These persons will be referred to as Persons with Limited English Proficiency (LEP).
LEP persons are defined as persons who do not speak English as their primary language and who have a limited ability to read, write, speak or understand English. For the purposes of this Admissions and Continued Occupancy Policy, LEP persons are public housing applicants and resident families, and parents and family members of applicants and resident families.
In order to determine the level of access needed by LEP persons, the PHA will balance the following four factors: (1) the number or proportion of LEP persons eligible to be served or likely to be encountered by the public housing program; (2) the frequency with which LEP persons come into contact with the program; (3) the nature and importance of the program, activity, or service provided by the program to people’s lives; and (4) the resources available to the PHA and costs. Balancing these four factors will ensure meaningful access by LEP persons to critical services while not imposing undue burdens on the PHA.
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The PHA will offer competent interpretation services free of charge, upon request, to the LEP person.
PHA Policy
The PHA will utilize a language line for telephone interpreter services.
When exercising the option to conduct remote hearings, however, the PHA will coordinate with a remote interpretation service which, when available, uses video conferencing technology rather than voice-only interpretation.
Where LEP persons desire, they will be permitted to use, at their own expense, an interpreter of their own choosing, in place of or as a supplement to the free language services offered by the PHA. The PHA, at its discretion, may choose to use the language services even when LEP persons desire to use an interpreter of their choosing. The interpreter may be a family member or friend. If the interpreter chosen by the family is a minor, the PHA will not rely as on the minor to serve as the interpreter.
The PHA will analyze the various kinds of contacts it has with the public, to assess language needs and decide what reasonable steps should be taken. “Reasonable steps” may not be reasonable where the costs imposed substantially exceed the benefits.
Where feasible and possible, according to its language assistance plan (LAP), the PHA will train and hire bilingual staff to be available to act as interpreters and translators, will pool resources with other PHAs, and will standardize documents. 2-III.C. WRITTEN TRANSLATION
Translation is the replacement of a written text from one language into an equivalent written text in another language.
PHA Policy
In order to comply with written-translation obligations, the PHA will take the following steps:
The PHA will provide written translations of vital documents for each eligible LEP language group that constitutes 5 percent or 1,000 persons, whichever is less, of the population of persons eligible to be served or likely to be affected or encountered. Translation of other documents, if needed, can be provided orally; or If there are fewer than 50 persons in a language group that reaches the 5 percent trigger, the PHA may not translate vital written materials, but will provide written notice in the primary language of the LEP language group of the right to receive competent oral interpretation of those written materials, free of cost.
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Unlimited copies may be made for internal use. Page 2-19 2-III.D. IMPLEMENTATION PLAN
After completing the four-factor analysis and deciding what language assistance services are appropriate, the PHA shall determine whether it is necessary to develop a written implementation plan to address the identified needs of the LEP populations it serves.
If the PHA determines that it is not necessary to develop a written implementation plan, the absence of a written plan does not obviate the underlying obligation to ensure meaningful access by LEP persons to the PHA’s public housing program and services.
PHA Policy
If it is determined that the PHA serves very few LEP persons, and the PHA has very limited resources, the PHA will not develop a written LEP plan, but will consider alternative ways to articulate in a reasonable manner a plan for providing meaningful access. Entities having significant contact with LEP persons, such as schools, grassroots and faith-based organizations, community groups, and groups working with new immigrants will be contacted for input into the process.
If the PHA determines it is appropriate to develop a written LEP plan, the following five steps will be taken: (1) Identifying LEP individuals who need language assistance; (2) identifying language assistance measures; (3) training staff; (4) providing notice to LEP persons; and (5) monitoring and updating the LEP plan.
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Unlimited copies may be made for internal use. Page 2-21 EXHIBIT 2-1: DEFINITION OF A PERSON WITH A DISABILITY UNDER FEDERAL CIVIL RIGHTS LAWS [24 CFR Parts 8.3 and 100.201]
A person with a disability, as defined under federal civil rights laws, is any person who:
• Has a physical or mental impairment that substantially limits one or more of the major life activities of an individual, or
• Has a record of such impairment, or
• Is regarded as having such impairment
The phrase “physical or mental impairment” includes:
• Any physiological disorder or condition, cosmetic or disfigurement, or anatomical loss affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive; digestive; genito-urinary; hemic and lymphatic; skin; and endocrine; or • Any mental or psychological disorder, such as mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities. The term “physical or mental impairment” includes, but is not limited to: such diseases and conditions as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental retardation, emotional illness, drug addiction and alcoholism.
“Major life activities” includes, but is not limited to, caring for oneself, performing manual tasks, walking, seeing, hearing, breathing, learning, and/or working. “Has a record of such impairment” means has a history of, or has been misclassified as having, a mental or physical impairment that substantially limits one or more major live activities. “Is regarded as having an impairment” is defined as having a physical or mental impairment that does not substantially limit one or more major life activities but is treated by a public entity (such as the PHA) as constituting such a limitation; has none of the impairments defined in this section but is treated by a public entity as having such an impairment; or has a physical or mental impairment that substantially limits one or more major life activities, only as a result of the attitudes of others toward that impairment.
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Unlimited copies may be made for internal use. Page 2-22 The definition of a person with disabilities does not include:
• Current illegal drug users
• People whose alcohol use interferes with the rights of others • Persons who objectively pose a direct threat or substantial risk of harm to others that cannot be controlled with a reasonable accommodation under the public housing program The above definition of disability determines whether an applicant or participant is entitled to any of the protections of federal disability civil rights laws. Thus, a person who does not meet this definition of disability is not entitled to a reasonable accommodation under federal civil rights and fair housing laws and regulations.
The HUD definition of a person with a disability is much narrower than the civil rights definition of disability. The HUD definition of a person with a disability is used for purposes of receiving the disabled family preference, the $400 elderly/disabled household deduction, the allowance for medical expenses, or the allowance for disability assistance expenses.
The definition of a person with a disability for purposes of granting a reasonable accommodation request is much broader than the HUD definition of disability. Many people will not qualify as a disabled person under the public housing program, yet an accommodation is needed to provide equal opportunity.
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Chapter 3
ELIGIBILITY
INTRODUCTION
The PHA is responsible for ensuring that every individual and family admitted to the public housing program meets all program eligibility requirements. This includes any individual approved to join the family after the family has been admitted to the program. The family must provide any information needed by the PHA to confirm eligibility and determine the level of the family’s assistance.
To be eligible for the public housing program:
• The applicant family must:
− Qualify as a family as defined by HUD and the PHA.
− Have income at or below HUD-specified income limits.
− Qualify on the basis of citizenship or the eligible immigrant status of family members. − Provide social security number information for household members as required. − Consent to the PHA’s collection and use of family information as provided for in PHAprovided consent forms. − Not currently be receiving a duplicative subsidy.
− Meet net asset and property ownership restriction requirements. • The PHA must determine that the current or past behavior of household members does not include activities that are prohibited by HUD or the PHA.
This chapter contains three parts:
Part I: Definitions of Family and Household Members. This part contains HUD and PHA definitions of family and household members and explains initial and ongoing eligibility issues related to these members.
Part II: Basic Eligibility Criteria. This part discusses income eligibility, and rules regarding citizenship, social security numbers, and family consent.
Part III: Denial of Admission. This part covers factors related to an applicant’s past or current conduct (e.g., criminal activity) that can cause the PHA to deny admission as well as the asset limitation for public housing.
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PART I: DEFINITIONS OF FAMILY AND HOUSEHOLD MEMBERS
3-I.A. OVERVIEW
Some eligibility criteria and program rules vary depending upon the composition of the family requesting assistance. In addition, some requirements apply to the family as a whole and others apply to individual persons who will live in the public housing unit. This part provides information that is needed to correctly identify family and household members and explains HUD's eligibility rules.
3-I.B. FAMILY AND HOUSEHOLD [24 CFR 5.105(a)(2), 24 CFR 5.403, FR Notice 02/03/12, Notice PIH 2014-20, Notice PIH 2023-27, and FR Notice 2/14/23] The terms family and household have different meanings in the public housing program.
Family
To be eligible for admission, an applicant must qualify as a family. Family as defined by HUD, includes but is not limited to the following, regardless of actual or perceived sexual orientation, gender identity, or marital status, a single person, who may be an elderly person, displaced person, disabled person, near-elderly person, or any other single person; an otherwise eligible youth who has attained at least 18 years of age and not more than 24 years of age and who has left foster care, or will leave foster care within 90 days, in accordance with a transition plan described in section 475(5)(H) of the Social Security Act (42 U.S.C. 675(5)(H)), and is homeless or is at risk of becoming homeless at age 16 or older; or a group of persons residing together.
Such group includes, but is not limited to, a family with or without children (a child who is temporarily away from the home because of placement in foster care is considered a member of the family), an elderly family, a near-elderly family, a disabled family, a displaced family, and the remaining member of a tenant family. The PHA has the discretion to determine if any other group of persons qualifies as a family.
Gender Identity means actual or perceived gender characteristics.
Sexual orientation means homosexuality, heterosexuality, or bisexuality.
PHA Policy
A family also includes two or more individuals who are not related by blood, marriage, adoption, or other operation of law, but who either can demonstrate that they have lived together previously or certify that each individual’s income and other resources will be available to meet the needs of the family.
Each family must identify the individuals to be included in the family at the time of application and must update this information if the family’s composition changes.
Household
Household is a broader term that includes additional people who, with the PHA’s permission, live in a public housing unit, such as live-in aides, foster children, and foster adults.
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3-I.C. FAMILY BREAKUP AND REMAINING MEMBER OF TENANT FAMILY Family Breakup
Except under the following conditions, the PHA has discretion to determine which members of an assisted family continue to receive assistance if the family breaks up:
• If the family breakup results from an occurrence of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the PHA must ensure that the victim retains assistance. (For documentation requirements and policies related to domestic violence, dating violence, sexual assault, stalking, and human trafficking see section 16-VII.D of this ACOP.) • If a court determines the disposition of property between members of the assisted family, the PHA is bound by the court’s determination of which family members continue to receive assistance.
PHA Policy
When a family on the waiting list breaks up into two otherwise eligible families, only one of the new families may retain the original application date. Other former family members may submit a new application with a new application date if the waiting list is open.
If a family breaks up into two otherwise eligible families while living in public housing, only one of the new families will retain occupancy of the unit.
If a court determines the disposition of property between members of an applicant or resident family, the PHA will abide by the court's determination.
In the absence of a judicial decision or an agreement among the original family members, the PHA will determine which family will retain their placement on the waiting list or continue in occupancy. In making its determination, the PHA will take into consideration the following factors: (1) the interest of any minor children, including custody arrangements; (2) the interest of any ill, elderly, or disabled family members; (3) the interest of any family member who is or has been the victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, including a family member who was forced to leave a public housing unit as a result of such actual or threatened abuse, and provides documentation in accordance with section 16-VII.D of this ACOP; (4) any possible risks to family members as a result of criminal activity, and (5) the recommendations of social service professionals.
Remaining Member of a Tenant Family [24 CFR 5.403]
The HUD definition of family includes the remaining member of a tenant family, which is a member of a resident family who remains in the unit when other members of the family have left the unit [PH Occ GB, p. 26]. Household members such as live-in aides, foster children, and foster adults do not qualify as remaining members of a family.
If dependents are the only “remaining members of a tenant family” and there is no family member able to assume the responsibilities of the head of household, see Chapter 6, Section 6- I.B, for the policy on “Caretakers for a Child.”
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3-I.D. HEAD OF HOUSEHOLD [24 CFR 5.504(b)]
Head of household means the adult member of the family who is considered the head for purposes of determining income eligibility and rent. The head of household is responsible for ensuring that the family fulfills all of its responsibilities under the program, alone or in conjunction with a cohead or spouse.
PHA Policy
The family may designate any qualified family member as the head of household.
The head of household must have the legal capacity to enter into a lease under state and local law. A minor who is emancipated under state law may be designated as head of household.
3-I.E. SPOUSE, COHEAD, AND OTHER ADULT
A family may have a spouse or cohead, but not both [HUD-50058 IB, p. 13].
Spouse means the marriage partner of the head of household.
PHA Policy
A marriage partner includes the partner in a "common law" marriage as defined in state law. The term “spouse” does not apply to friends, roommates, or significant others who are not marriage partners. A minor who is emancipated under state law may be designated as a spouse.
A cohead is an individual in the household who is equally responsible with the head of household for ensuring that the family fulfills all of its responsibilities under the program, but who is not a spouse. A family can have only one cohead.
PHA Policy
Minors who are emancipated under state law may be designated as a cohead.
Other adult means a family member, other than the head, spouse, or cohead, who is 18 years of age or older. Foster adults and live-in aides are not considered other adults [HUD-50058 IB, p. 14].
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3-I.F. DEPENDENTS AND MINORS [24 CFR 5.603]
A minor is a member of the family, other than the head of family or spouse, who is under 18 years of age.
A dependent is a family member who is under 18 years of age or a person of any age who is a person with a disability or a full-time student, except that the following persons can never be dependents: the head of household, spouse, cohead, foster children/adults and live-in aides.
Identifying each dependent in the family is important because each dependent qualifies the family for a deduction from annual income as described in Chapter 6.
Joint Custody of Dependents
PHA Policy
Dependents that are subject to a joint custody arrangement will be considered a member of the family if they live with the applicant or resident family 50 percent or more of the time.
When more than one applicant or assisted family (regardless of program) are claiming the same dependents as family members, the family with primary custody at the time of the initial examination or reexamination will be able to claim the dependents. If there is a dispute about which family should claim them, the PHA will make the determination based on available documents such as court orders, an IRS income tax return showing which family has claimed the child for income tax purposes, school records, or other credible documentation.
3-I.G. FULL-TIME STUDENT [24 CFR 5.603]
A full-time student (FTS) is a person who is attending school or vocational training on a full-time basis. The time commitment or subject load that is needed to determine if attendance is full-time is defined by the educational institution.
Identifying each FTS is important because (1) each family member that is an FTS, other than the head, spouse, or cohead, qualifies the family for a dependent deduction and (2) the income of such an FTS is treated differently from the income of other family members.
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3-I.H. ELDERLY AND NEAR-ELDERLY PERSONS, AND ELDERLY FAMILY [24 CFR 5.100, 5.403, 945.105, and FR Notice 02/03/12]
Elderly Persons
An elderly person is a person who is at least 62 years of age.
Near-Elderly Persons
A near-elderly person is a person who is 50-61 years of age.
Elderly Family
An elderly family is one in which the head, spouse, cohead, or sole member is an elderly person.
Identifying elderly families is important because these families qualify for the elderly family allowance and the medical allowance as described in Chapter 6 and may qualify for a particular type of development as noted in Chapter 4.
3-I.I. PERSONS WITH DISABILITIES AND DISABLED FAMILY [24 CFR 5.403, FR Notice 02/03/12]
Persons with Disabilities
Under the public housing program, special rules apply to persons with disabilities and to any family whose head, spouse, or cohead is a person with disabilities. The technical definitions of individual with handicaps and persons with disabilities are provided in Exhibit 3-1 at the end of this chapter. These definitions are used for a number of purposes including ensuring that persons with disabilities are not discriminated against based upon disability.
As discussed in Chapter 2, the PHA must make all aspects of the public housing program accessible to persons with disabilities and consider requests for reasonable accommodations when a person’s disability limits their full access to the unit, the program, or the PHA’s services.
Disabled Family
A disabled family is one in which the head, spouse, or cohead is a person with disabilities.
Identifying disabled families is important because these families qualify for the disabled family allowance and the medical allowance as described in Chapter 6 and may qualify for a particular type of development as noted in Chapter 4.
Even though persons with drug or alcohol dependencies are considered persons with disabilities for the purpose of non-discrimination, this does not prevent the PHA from denying admission or taking action under the lease for reasons related to alcohol and drug abuse in accordance with the policies found in Part III of this chapter and in Chapter 13.
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3-I.J. GUESTS [24 CFR 5.100]
A guest is defined as a person temporarily staying in the unit with the consent of a tenant or other member of the household who has express or implied authority to so consent on behalf of the tenant.
The lease must provide that the tenant has the right to exclusive use and occupancy of the leased unit by the members of the household authorized to reside in the unit in accordance with the lease, including reasonable accommodation of their guests [24 CFR 966.4(d)]. The head of household is responsible for the conduct of visitors and guests, inside the unit as well as anywhere on or near PHA premises [24 CFR 966.4(f)].
PHA Policy
A resident family must notify the PHA when overnight guests will be staying in the unit for more than three days. A guest can remain in the unit no longer than 14 consecutive days or a total of 30 cumulative calendar days during any 12-month period.
A family may request an exception to this policy for valid reasons (e.g., care of a relative recovering from a medical procedure expected to last 20 consecutive days). An exception will not be made unless the family can identify and provide documentation of the residence to which the guest will return.
Children who are subject to a joint custody arrangement or for whom a family has visitation privileges, that are not included as a family member because they live outside of the public housing unit more than 50 percent of the time, are not subject to the time limitations of guests as described above.
Former residents who have been evicted are not permitted as overnight guests.
Guests who represent the public housing unit address as their residence address or address of record for receipt of benefits or any other purposes will be considered unauthorized occupants. In addition, guests who remain in the unit beyond the allowable time limit will be considered to be unauthorized occupants, and their presence constitutes a violation of the lease.
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3-I.K. FOSTER CHILDREN AND FOSTER ADULTS [24 CFR 5.603] A foster adult is a member of the household who is 18 years of age or older and meets the definition of a foster adult under state law. In general, a foster adult is a person who is 18 years of age or older, is unable to live independently due to a debilitating physical or mental condition, and is placed with the family by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction.
A foster child is a member of the household who meets the definition of a foster child under state law. In general, a foster child is placed with the family by an authorized placement agency (e.g., public child welfare agency) or by judgment, decree, or other order of any court of competent jurisdiction.
Foster children and foster adults that are living with an applicant or resident family are considered household members but not family members. The income of foster children/adults is not counted in family annual income and foster children/adults do not qualify for a dependent deduction [24 CFR 5.603 and HUD-50058 IB, pp. 13-14].
PHA Policy
A foster child or foster adult may be allowed to reside in the unit if their presence would not overcrowd the unit.
Children that are temporarily absent from the home as a result of placement in foster care are discussed in Section 3-I.L.
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3-I.L. ABSENT FAMILY MEMBERS
Individuals may be temporarily or permanently absent from the unit for a variety of reasons including educational activities, placement in foster care, employment, and illness.
Definitions of Temporarily and Permanently Absent
PHA Policy
Generally, an individual who is or is expected to be absent from the public housing unit for 180 consecutive days or less is considered temporarily absent and continues to be considered a family member. Generally, an individual who is or is expected to be absent from the public housing unit for more than 180 consecutive days is considered permanently absent and no longer a family member. Exceptions to this general policy are discussed below.
Absent Students
PHA Policy
When someone who has been considered a family member attends school away from home, the person will continue to be considered a family member unless information becomes available to the PHA indicating that the student has established a separate household or the family declares that the student has established a separate household.
Absences Due to Placement in Foster Care [24 CFR 5.403] Children temporarily absent from the home as a result of placement in foster care are considered members of the family.
PHA Policy
If a child has been placed in foster care, the PHA will verify with the appropriate agency whether and when the child is expected to be returned to the home. Unless the agency confirms that the child has been permanently removed from the home, the child will be counted as a family member.
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Absent Head, Spouse, or Cohead
PHA Policy
An employed head, spouse, or cohead absent from the unit more than 180 consecutive days due to employment will continue to be considered a family member.
Individuals Confined for Medical Reasons
PHA Policy
An individual confined to a nursing home or hospital on a permanent basis is not considered a family member.
If there is a question about the status of a family member, the PHA will request verification from a responsible medical professional and will use this determination. If the responsible medical professional cannot provide a determination, the person generally will be considered temporarily absent. The family may present evidence that the family member is confined on a permanent basis and request that the person not be considered a family member.
Return of Permanently Absent Family Members
PHA Policy
The family must request PHA approval for the return of any adult family members that the PHA has determined to be permanently absent. The individual is subject to the eligibility and screening requirements discussed in this chapter.
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3-I.M. LIVE-IN AIDE
Live-in aide means a person who resides with one or more elderly persons, or near-elderly persons, or persons with disabilities, and who: (1) is determined to be essential to the care and well-being of the person(s), (2) is not obligated for the support of the person(s), and (3) would not be living in the unit except to provide the necessary supportive services [24 CFR 5.403].
The PHA must approve a live-in aide if needed as a reasonable accommodation for a person with disabilities in accordance with 24 CFR 8.
A live-in aide is considered a household member but not a family member. The income of the live-in aide is not counted in determining the annual income of the family [24 CFR 5.609(c)(5)].
Relatives may be approved as live-in aides if they meet all of the criteria defining a live-in aide.
However, a relative who serves as a live-in aide is not considered a family member and would not be considered a remaining member of a tenant family.
PHA Policy
A family’s request for a live-in aide may be made either orally or in writing. The PHA will verify the need for a live-in aide, if necessary, with a reliable, knowledgeable professional as provided by the family, such as a doctor, social worker, or case worker.
For continued approval, the family may be required to submit a new, written request— subject to PHA verification—at each annual reexamination.
In addition, the family and live-in aide will be required to submit a certification stating that the live-in aide is (1) not obligated for the support of the person(s) needing the care, and (2) would not be living in the unit except to provide the necessary supportive services.
The PHA has the discretion not to approve a particular person as a live-in aide, and may withdraw such approval, if [24 CFR 966.4(d)(3)(i)]:
The person commits fraud, bribery or any other corrupt or criminal act in connection with any federal housing program;
The person has a history of drug-related criminal activity or violent criminal activity; or
The person currently owes rent or other amounts to the PHA or to another PHA in connection with Section 8 or public housing assistance under the 1937 Act.
Within 10 business days of receiving a request for a live-in aide, including all required documentation related to the request, the PHA will notify the family of its decision in writing.
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PART II: BASIC ELIGIBILITY CRITERIA
3-II.A. INCOME ELIGIBILITY AND TARGETING
Income Limits
HUD is required by law to establish income limits that determine the income eligibility of applicants for HUD’s assisted housing programs, including the public housing program. The income limits are published annually and are based on HUD estimates of the median incomes for families of different sizes in a particular area or county.
Types of Low-Income Families [24 CFR 5.603(b)]
Low-income family. A family whose annual income does not exceed 80 percent of the median income for the area, adjusted for family size.
Very low-income family. A family whose annual income does not exceed 50 percent of the median income for the area, adjusted for family size.
Extremely low-income family. A family whose annual income does not exceed the federal poverty level or 30 percent of the median income for the area, whichever number is higher.
Area median income is determined by HUD, with adjustments for smaller and larger families.
HUD may establish income ceilings higher or lower than 30, 50, or 80 percent of the median income for an area if HUD finds that such variations are necessary because of unusually high or low family incomes.
HUD also publishes over-income limits annually, but these are not used at admission. Overincome limits will be discussed in Chapter 13.
Using Income Limits for Eligibility [24 CFR 960.201 and Notice PIH 2023-27] Income limits are used to determine eligibility at admission. Eligibility is established by comparing a family's annual income with HUD’s published income limits. To be incomeeligible, a family must be a low-income family. Income and net family assets of household members are excluded when determining income eligibility; however, household members are considered for purposes of unit size and subsidy standards.
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Using Income Limits for Targeting [24 CFR 960.202(b)]
At least 40 percent of the families admitted from the PHA waiting list to the public housing program during a PHA fiscal year must be extremely low-income families. This is called the “basic targeting requirement.”
If admissions of extremely low-income families to the PHA’s housing choice voucher program during a PHA fiscal year exceed the 75 percent minimum targeting requirement for that program, such excess shall be credited against the PHA’s public housing basic targeting requirement for the same fiscal year.
The fiscal year credit for housing choice voucher program admissions that exceed the minimum voucher program targeting requirement must not exceed the lower of:
• Ten percent of public housing waiting list admissions during the PHA fiscal year • Ten percent of waiting list admission to the PHA’s housing choice voucher program during the PHA fiscal year
• The number of qualifying low-income families who commence occupancy during the fiscal year of public housing units located in census tracts with a poverty rate of 30 percent or more. For this purpose, qualifying low-income family means a low-income family other than an extremely low-income family.
For discussion of how income targeting is used in tenant selection, see Chapter 4.
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3-II.B. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5, Subpart E] Housing assistance is available only to individuals who are U.S. citizens, U.S. nationals (herein referred to as citizens and nationals), or noncitizens that have eligible immigration status. At least one family member must be a citizen, national, or noncitizen with eligible immigration status in order for the family to qualify for any level of assistance.
All applicant families must be notified of the requirement to submit evidence of their citizenship status when they apply. Where feasible, and in accordance with the PHA’s Limited English Proficiency Plan, the notice must be in a language that is understood by the individual if the individual is not proficient in English.
Declaration [24 CFR 5.508]
HUD requires each family member to declare whether the individual is a citizen, a national, or an eligible noncitizen, except those members who elect not to contend that they have eligible immigration status. Those who elect not to contend their status are considered to be ineligible noncitizens. For citizens, nationals and eligible noncitizens the declaration must be signed personally by the head, spouse, cohead, and any other family member 18 or older, and by a parent or guardian for minors. The family must identify in writing any family members who elect not to contend their immigration status (see Ineligible Noncitizens below). No declaration is required for live-in aides, foster children, or foster adults.
U.S. Citizens and Nationals
In general, citizens and nationals are required to submit only a signed declaration that claims their status. However, HUD regulations permit the PHA to request additional documentation of their status, such as a passport.
PHA Policy
Family members who declare citizenship or national status will not be required to provide additional documentation unless the PHA receives information indicating that an individual’s declaration may not be accurate.
Eligible Noncitizens
In addition to providing a signed declaration, those declaring eligible noncitizen status must sign a verification consent form and cooperate with PHA efforts to verify their immigration status as described in Chapter 7. The documentation required for establishing eligible noncitizen status varies depending upon factors such as the date the person entered the U.S., the conditions under which eligible immigration status has been granted, the person’s age, and the date on which the family began receiving HUD-funded assistance.
Lawful residents of the Marshall Islands, the Federated States of Micronesia, and Palau, together known as the Freely Associated States, or FAS, are eligible for housing assistance under section 141 of the Compacts of Free Association between the U.S. Government and the Governments of the FAS [Public Law 106-504].
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Ineligible Noncitizens
Those noncitizens who do not wish to contend their immigration status are required to have their names listed on a noncontending family members listing, signed by the head, spouse, or cohead (regardless of citizenship status), indicating their ineligible immigration status. The PHA is not required to verify a family member’s ineligible status and is not required to report an individual’s unlawful presence in the U.S. to the United States Citizenship and Immigration Services (USCIS).
Providing housing assistance to noncitizen students is prohibited [24 CFR 5.522]. This prohibition extends to the noncitizen spouse of a noncitizen student as well as to minor children who accompany or follow to join the noncitizen student. Such prohibition does not extend to the citizen spouse of a noncitizen student or to the children of the citizen spouse and noncitizen student. Such a family is eligible for prorated assistance as a mixed family.
Mixed Families
A family is eligible for admission as long as at least one member is a citizen, national, or eligible noncitizen. Families that include eligible and ineligible individuals are considered mixed families. Such families will be given notice that their assistance will be prorated, and that they may request a hearing if they contest this determination. See Chapter 6 for a discussion of how rents are prorated, and Chapter 14 for a discussion of grievance hearing procedures.
Ineligible Families [24 CFR 5.514(d), (e), and (f)]
A PHA may elect to provide assistance to a family before the verification of the eligibility of the individual or one family member [24 CFR 5.512(b)]. Otherwise, no individual or family may be assisted prior to the affirmative establishment by the PHA that the individual or at least one family member is eligible [24 CFR 5.512(a)].
PHA Policy
The PHA will not provide assistance to a family before the verification of at least one family member as a citizen, national, or eligible noncitizen.
When a PHA determines that an applicant family does not include any citizens, nationals, or eligible noncitizens, following the verification process, the family will be sent a written notice within 10 business days of the determination.
The notice will explain the reasons for the denial of assistance and will advise the family of its right to request an appeal to the United States Citizenship and Immigration Services (USCIS), or to request a grievance hearing with the PHA. The grievance hearing with the PHA may be requested in lieu of the USCIS appeal, or at the conclusion of the USCIS appeal process. The notice must also inform the applicant family that assistance may not be delayed until the conclusion of the USCIS appeal process, but that it may be delayed pending the completion of the grievance hearing process.
Grievance hearing procedures are contained in Chapter 14.
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Time Frame for Determination of Citizenship Status [24 CFR 5.508(g)] For new occupants joining the resident family the PHA must verify status at the first interim or regular reexamination following the person’s occupancy, whichever comes first.
If an individual qualifies for a time extension for the submission of required documents, the PHA must grant such an extension for no more than 30 days [24 CFR 5.508(h)].
Each family member is required to submit evidence of eligible status only one time during continuous occupancy.
PHA Policy
The PHA will verify the status of applicants at the time other eligibility factors are determined.
3-II.C. SOCIAL SECURITY NUMBERS [24 CFR 5.216 and 5.218, Notice PIH 2018-24] The applicant and all members of the applicant’s household must disclose the complete and accurate social security number (SSN) assigned to each household member, and the documentation necessary to verify each SSN. If a child under age six has been added to an applicant family within the six months prior to program admission, an otherwise eligible family may be admitted to the program and must disclose and document the child’s SSN within 90 days of admission. A detailed discussion of acceptable documentation is provided in Chapter 7.
Note: These requirements do not apply to noncitizens who do not contend eligible immigration status.
In addition, each participant who has not previously disclosed an SSN, has previously disclosed an SSN that HUD or the SSA determined was invalid, or has been issued a new SSN must submit their complete and accurate SSN and the documentation required to verify the SSN at the time of the next interim or annual reexamination or recertification. Participants age 62 or older as of January 31, 2010, whose determination of eligibility was begun before January 31, 2010, are exempt from this requirement and remain exempt even if they move to a new assisted unit.
The PHA must deny assistance to an applicant family if they do not meet the SSN disclosure and documentation requirements contained in 24 CFR 5.216.
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3-II.D. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 5.232] HUD requires each adult family member, and the head of household, spouse, or cohead, regardless of age, to sign form HUD-9886, Authorization for the Release of Information Privacy Act Notice, the form HUD-52675, Debts Owed to Public Housing Agencies and Terminations, and other consent forms as needed to collect information relevant to the family’s eligibility and level of assistance. Chapter 7 provides detailed information concerning the consent forms and verification requirements. The consent form remains effective until the family is denied assistance, assistance is terminated, or the family provides written notification to revoke consent.
The PHA must deny admission to the program if any member of the applicant family fails to sign and submit consent forms which allow the PHA to obtain information that the PHA has determined is necessary in administration of the public housing program [24 CFR 960.259(a) and (b) and 24 CFR 5.232(a)].
However, this does not apply if the applicant or participant, or any member of their family, revokes their consent with respect to the ability of the PHA to access financial records from financial institutions, unless the PHA establishes a policy that revocation of consent to access financial records will result in denial or termination of assistance or admission [24 CFR 5.232(c)].
PHA Policy
The PHA has established a policy that the family’s revocation of consent to allow the PHA to access records from financial institutions will result in denial of admission.
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3-II.E. EIV SYSTEM SEARCHES [EIV FAQs; EIV System Training 9/30/20; and Notice PIH 2023-27]
Existing Tenant Search
Prior to admission to the program, the PHA must search for all household members using the EIV Existing Tenant Search module. The PHA must review the reports for any SSA matches involving another PHA or a multifamily entity and follow up on any issues identified. The PHA must provide the family with a copy of the Existing Tenant Search results if requested. At no time may any family member receive duplicative assistance.
If the tenant is a new admission to the PHA, and a match is identified at a multifamily property, the PHA must report the program admission date to the multifamily property and document the notification in the tenant file. The family must provide documentation of move-out from the assisted unit, as applicable.
PHA Policy
The PHA will contact the other PHA or owner identified in the report to confirm that the family has moved out of the unit and obtain documentation of current tenancy status, including a form HUD-50058 or 50059, as applicable, showing an end of participation.
The PHA will only approve assistance contingent upon the move-out from the currently occupied assisted unit.
Debts Owed to PHAs and Terminations
All adult household members must sign the form HUD-52675, Debts Owed to Public Housing and Terminations. Prior to admission to the program, the PHA must search for each adult family member in the Debts Owed to PHAs and Terminations module.
If a current or former tenant disputes the information in the module, the tenant should contact the PHA directly in writing to dispute the information and provide any documentation that supports the dispute. If the PHA determines that the disputed information is incorrect, the PHA will update or delete the record from EIV. Former tenants may dispute debt and termination information for a period of up to three years from the end of participation date in the program.
PHA Policy
The PHA will require each adult household member to sign the form HUD-52675 once at the eligibility determination. Any new members added to the household after admission will be required to sign the form HUD-52675 prior to being added to the household.
The PHA will search the Debts Owed to PHAs and Terminations module as part of the eligibility determination for new households and as part of the screening process for any household members added after the household is admitted to the program. If any information on debts or terminations is returned by the search, the PHA will determine if this information warrants a denial in accordance with the policies in Part III of this chapter.
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Income and Income Validation Tool (IVT) Reports
For each new admission, the PHA is required to review the EIV Income and IVT Reports to confirm and validate family reported income within 120 days of the IMS/PIC submission date of the new admission. The PHA must print and maintain copies of the EIV Income and IVT reports in the tenant file and resolve any discrepancies with the family within 60 days of the EIV Income or IVT report dates.
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PART III: DENIAL OF ADMISSION
3-III.A. OVERVIEW
A family that does not meet the eligibility criteria discussed in Parts I and II must be denied admission.
In addition, HUD requires or permits the PHA to deny admission based on certain types of current or past behaviors of family members as discussed in this part. The PHA’s authority in this area is limited by the Violence against Women Act (VAWA), which prohibits the denial of admission to an otherwise qualified applicant on the basis or as a direct result of the fact that the applicant is or has been the victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking [see 24 CFR 5.2005(b)].
While the regulations state that the PHA must prohibit admission for certain types of criminal activity and give the PHA the option to deny for other types of previous criminal history, more recent HUD rules and OGC guidance must also be taken into consideration when determining whether a particular individual’s criminal history merits denial of admission.
When considering any denial of admission, PHAs may not use arrest records as the basis for the denial. Further, HUD does not require the adoption of “One Strike” policies and reminds PHAs of their obligation to safeguard the due process rights of applicants and tenants [Notice PIH 2015-19].
HUD’s Office of General Counsel issued a memo on April 4, 2016, regarding the application of Fair Housing Act standards to the use of criminal records. This memo states that a PHA violates the Fair Housing Act when their policy or practice has an unjustified discriminatory effect, even when the PHA had no intention to discriminate. Where a policy or practice that restricts admission based on criminal history has a disparate impact on a particular race, national origin, or other protected class, that policy or practice is in violation of the Fair Housing Act if it is not necessary to serve a substantial, legitimate, nondiscriminatory interest of the PHA, or if that interest could be served by another practice that has a less discriminatory effect [OGC Memo 4/4/16]. HUD codified this stance on disparate impact and discriminatory effects in a final rule dated March 31, 2023. In doing so, HUD also standardized its long-practiced three-step approach to assessing burdens of proof.
PHAs who impose blanket prohibitions on any person with any conviction record, no matter when the conviction occurred, what the underlying conduct entailed, or what the convicted person has done since then will be unable to show that such policy or practice is necessary to achieve a substantial, legitimate, nondiscriminatory interest. Even a PHA with a more tailored policy or practice that excludes individuals with only certain types of convictions must still prove that its policy is necessary. To do this, the PHA must show that its policy accurately distinguishes between criminal conduct that indicates a demonstrable risk to resident safety and property and criminal conduct that does not.
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This part covers the following topics:
• Required denial of admission
• The asset limitation in public housing
• Other permitted reasons for denial of admission
• Screening
• Criteria for deciding to deny admission
• Prohibition against denial of admission to victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking
• Notice of eligibility or denial
3-III.B. REQUIRED DENIAL OF ADMISSION [24 CFR 960.204]
PHAs are required to establish standards that prohibit admission of an applicant to the public housing program if they have engaged in certain criminal activity or if the PHA has reasonable cause to believe that a household member’s current use or pattern of use of illegal drugs, or current abuse or pattern of abuse of alcohol may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents.
Where the statute requires that the PHA prohibit admission for a prescribed period of time after some disqualifying behavior or event, the PHA may choose to continue that prohibition for a longer period of time [24 CFR 960.203(c)(3)(ii)].
HUD requires the PHA to deny assistance in the following cases:
• Any member of the household has been evicted from federally assisted housing in the last three years for drug-related criminal activity. HUD permits but does not require the PHA to admit an otherwise-eligible family if the household member has completed a PHA-approved drug rehabilitation program or the circumstances which led to eviction no longer exist (e.g. the person involved in the criminal activity no longer lives in the household).
PHA Policy
The PHA will admit an otherwise-eligible family who was evicted from federally assisted housing within the past three years for drug-related criminal activity, if the PHA is able to verify that the household member who engaged in the criminal activity has completed a supervised drug rehabilitation program approved by the PHA, or the person who committed the crime is no longer living in the household. • The PHA determines that any household member is currently engaged in the use of illegal drugs. Drug means a controlled substance as defined in section 102 of the Controlled Substances Act [21 U.S.C. 802]. Currently engaged in the illegal use of a drug means a person has engaged in the behavior recently enough to justify a reasonable belief that there is continuing illegal drug use by a household member [24 CFR 960.205(b)(1)].
PHA Policy
Currently engaged in is defined as any use of illegal drugs during the previous three months.
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• The PHA has reasonable cause to believe that any household member's current use or pattern of use of illegal drugs, or current abuse or pattern of abuse of alcohol, may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents.
PHA Policy
In determining reasonable cause, the PHA will consider all credible evidence, including but not limited to, any record of convictions, arrests, or evictions of household members related to the use of illegal drugs or the abuse of alcohol. A record or records of arrest will not be used as the sole basis for the denial or proof that the applicant engaged in disqualifying criminal activity. The PHA will also consider evidence from treatment providers or community-based organizations providing services to household members. • Any household member has ever been convicted of drug-related criminal activity for the production or manufacture of methamphetamine on the premises of federally assisted housing.
• Any household member is subject to a lifetime registration requirement under a state lifetime sex offender registration program.
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3-III.C. RESTRICTION ON ASSSITANCE BASED ON ASSETS [24 CFR 5.618] There are two circumstances under which a family is ineligible for the program based on asset ownership.
First, assistance may not be provided to any family if the family’s net assets exceed $100,000 (adjusted annually by HUD).
Second, the family has real property that is suitable for occupancy by the family as a residence and the family has:
• A present ownership interest in the real property;
• A legal right to reside in the real property; and
• The effective legal authority to sell (based on state or local laws of the jurisdiction where the property is located) the real property.
However, the real property restriction does not apply in the following circumstances:
• Any property for which the family is receiving assistance for a manufactured home under 24 CFR 982.620 or under the HCV Homeownership program;
• Any property that is jointly owned by a member of the family and at least one non-household member who does not live with the family, if the non-household member resides at the jointly owned property;
• Any family that is offering the property for sale; or • Any person who is a victim of domestic violence, dating violence, sexual assault, or stalking. - When a family asks for an exception because a family member is a victim of domestic violence, dating violence, sexual assault, or stalking, the PHA must comply with all the confidentiality requirements under VAWA. The PHA must accept a self-certification from the family member, and the restrictions on requesting documentation under VAWA apply.
A property is considered suitable for occupancy unless the family demonstrates that it:
• Does not meet the disability-related needs for all members of the family (e.g., physical accessibility requirements, disability-related need for additional bedrooms, proximity to accessible transportation, etc.);
• Is not sufficient for the size of the family;
PHA Policy
The PHA defines not sufficient for the size of the family as being overcrowded based on the PHA’s occupancy standards in Chapter 5.
• Is geographically located so as to be a hardship for the family (e.g., the distance or commuting time between the property and the family’s place of work or school would be a hardship to the family, as determined by the PHA or owner); Item 2.
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• Is not safe to reside in because of the physical condition of the property (e.g., property’s physical condition poses a risk to the family’s health and safety and the condition of the property cannot be easily remedied); or
• Is not a property that a family may reside in under the State or local laws of the jurisdiction where the property is located.
3-III.D. OTHER PERMITTED REASONS FOR DENIAL OF ADMISSION HUD permits but does not require the PHA to deny admission for the reasons discussed in this section.
Criminal Activity [24 CFR 960.203(c)]
The PHA is responsible for screening family behavior and suitability for tenancy. In doing so, the PHA may consider an applicant’s history of criminal activity involving crimes of physical violence to persons or property and other criminal acts which would adversely affect the health, safety, or welfare of other tenants.
PHA Policy
If any household member is currently engaged in or has engaged in any of the following criminal activities within the past five years, the family will be denied admission.
Drug-related criminal activity, defined by HUD as the illegal manufacture, sale, distribution, or use of a drug, or the possession of a drug with intent to manufacture, sell, distribute or use the drug [24 CFR 5.100].
Violent criminal activity, defined by HUD as any criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force substantial enough to cause, or be reasonably likely to cause, serious bodily injury or property damage [24 CFR 5.100].
Criminal activity that may threaten the health, safety, or welfare of other tenants [24 CFR 960.203(c)(3)].
Criminal activity that may threaten the health or safety of PHA staff, contractors, subcontractors, or agents.
Criminal sexual conduct, including but not limited to sexual assault, incest, open and gross lewdness, or child abuse.
Evidence of such criminal activity includes, but is not limited to:
Any record of convictions, arrests, or evictions for suspected drug-related or violent criminal activity of household members within the past five years.
A record or records of arrest will not be used as the sole basis for the denial or proof that the applicant engaged in disqualifying criminal activity.
In making its decision to deny assistance, the PHA will consider the factors discussed in Sections 3-III.F and 3-III.G. Upon consideration of such factors, the PHA may, on a caseby-case basis, decide not to deny assistance.
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Previous Behavior [960.203(c) and (d) and PH Occ GB, p. 48] HUD authorizes the PHA to deny admission based on relevant information pertaining to the family’s previous behavior and suitability for tenancy.
In the event of the receipt of unfavorable information with respect to an applicant, the PHA must consider the time, nature, and extent of the applicant’s conduct (including the seriousness of the offense). As discussed in Section 3-III.F, the PHA may also need to consider whether the cause of the unfavorable information may be that the applicant is the victim of domestic violence, dating violence, sexual assault, or stalking.
PHA Policy
The PHA will deny admission to an applicant family if the PHA determines that the family:
Has a pattern of unsuitable past performance in meeting financial obligations, including rent within the past five years.
Has a pattern of disturbance of neighbors, destruction of property, or living or housekeeping habits at prior residences within the past three years which may adversely affect the health, safety, or welfare of other tenants.
Owes rent or other amounts to this or any other PHA or owner in connection with any assisted housing program.
Misrepresented or does not provide complete information related to eligibility, including income, award of preferences for admission, expenses, family composition or rent.
Has committed fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program in the last five years.
Owes rent or other amounts to any PHA in connection with Section 8, public housing, or other public housing assistance under the 1937 Act, unless the family repays the full amount of the debt prior to being selected from the waiting list.
When denying admission due to family debts as shown in HUD’s EIV system, the PHA will provide the family with a copy of the EIV Debt Owed to PHA and Termination report.
If the family wishes to dispute the information in the report, the family must contact the PHA that entered the information in EIV in writing, explaining why EIV information is disputed. The family must also provide a copy of the letter and all applicable verification to the PHA to support the family’s claim. The PHA will consider the information provided by the family prior to issuing a notice of denial.
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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 deny admission, the PHA will consider the factors discussed in Sections 3-III.F and 3-III.G. Upon consideration of such factors, the PHA may, on a caseby-case basis, decide not to deny admission.
The PHA will consider the existence of mitigating factors, such as loss of employment or other financial difficulties, before denying admission to an applicant based on the failure to meet prior financial obligations.
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3-III.E. SCREENING
Screening for Eligibility
PHAs are authorized to obtain criminal conviction records from law enforcement agencies to screen applicants for admission to the public housing program. This authority assists the PHA in complying with HUD requirements and PHA policies to deny assistance to applicants who are engaging in or have engaged in certain criminal activities. In order to obtain access to the records the PHA must require every applicant family to submit a consent form signed by each adult household member [24 CFR 5.903].
The PHA may not pass along to the applicant the costs of a criminal records check [24 CFR 960.204(d)].
PHA Policy
The PHA will perform criminal background checks through local law enforcement for all adult household members.
If the results of the criminal background check indicate there may have been past criminal activity, but the results are inconclusive, the PHA will request a fingerprint card and will request information from the National Crime Information Center (NCIC).
PHAs are required to perform criminal background checks necessary to determine whether any household member is subject to a lifetime registration requirement under a state sex offender program in the state where the housing is located, as well as in any other state where a household member is known to have resided [24 CFR 960.204(a)(4)].
PHA Policy
The PHA will use the Dru Sjodin National Sex Offender database to screen applicants for admission.
Additionally, PHAs must ask whether the applicant, or any member of the applicant’s household, is subject to a lifetime registered sex offender registration requirement in any state [Notice PIH 2012-28].
If the PHA proposes to deny admission based on a criminal record or on lifetime sex offender registration information, the PHA must notify the household of the proposed action and must provide the subject of the record and the applicant a copy of the record and an opportunity to dispute the accuracy and relevance of the information prior to a denial of admission [24 CFR
5.903(f) and 5.905(d)].
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Obtaining Information from Drug Treatment Facilities [24 CFR 960.205] HUD authorizes PHAs to request and obtain information from drug abuse treatment facilities concerning applicants. Specifically, the PHA may require each applicant to submit for all household members who are at least 18 years of age, and for each family head, spouse, or cohead regardless of age, one or more consent forms signed by such household members that requests any drug abuse treatment facility to inform the PHA whether the drug abuse treatment facility has reasonable cause to believe that the household member is currently engaging in illegal drug use.
Drug Abuse Treatment Facility means an entity that holds itself out as providing, and provides, diagnosis, treatment, or referral for treatment with respect to the illegal drug use, and is either an identified unit within a general care facility, or an entity other than a general medical care facility.
Currently engaging in illegal use of a drug means illegal use of a drug that occurred recently enough to justify a reasonable belief that there is continuing illegal drug use by a household member.
Any consent form used for the purpose of obtaining information from a drug abuse treatment facility to determine whether a household member is currently engaging in illegal drug use must expire automatically after the PHA has made a final decision to either approve or deny the admission of such person.
Any charges incurred by the PHA for information provided from a drug abuse treatment facility may not be passed on to the applicant or tenant.
If the PHA chooses to obtain such information from drug abuse treatment facilities, it must adopt and implement one of the two following policies:
Policy A: The PHA must submit a request for information to a drug abuse treatment facility for all families before they are admitted. The request must be submitted for each proposed household member who is at least 18 years of age, and for each family head, spouse, or cohead regardless of age.
Policy B: The PHA must submit a request for information only for certain household members, whose criminal record indicates prior arrests or conviction for any criminal activity that may be a sole basis for denial of admission or whose prior tenancy records indicate that the proposed household member engaged in destruction of property or violent activity against another person, or they interfered with the right of peaceful enjoyment of the premises of other residents.
If the PHA chooses to obtain such information, it must abide by the HUD requirements for records management and confidentiality as described in 24 CFR 960.205(f).
PHA Policy
The PHA will obtain information from drug abuse treatment facilities to determine whether any applicant family’s household members are currently engaging in illegal drug activity only when the PHA has determined that the family will be denied admission based on a family member’s drug-related criminal activity, and the family claims that the culpable family member has successfully completed a supervised drug or alcohol rehabilitation program.
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Screening for Suitability as a Tenant [24 CFR 960.203(c)] The PHA is responsible for the screening and selection of families to occupy public housing units. The PHA may consider all relevant information. Screening is important to public housing communities and program integrity, and to ensure that assisted housing is provided to those families that will adhere to lease obligations.
PHA Policy
The PHA will consider the family’s history with respect to the following factors:
Payment of rent and utilities
Caring for a unit and premises
Respecting the rights of other residents to the peaceful enjoyment of their housing Criminal activity that is a threat to the health, safety, or property of others Behavior of all household members as related to the grounds for denial as detailed in Sections 3-III. B and C
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Resources Used to Check Applicant Suitability [PH Occ GB, pp. 47-56] PHAs have a variety of resources available to them for determination of the suitability of applicants. Generally, PHAs should reject applicants who have recent behavior that would warrant lease termination for a public housing resident.
PHA Policy
In order to determine the suitability of applicants the PHA will examine applicant history for the past three years. Such background checks will include:
Past Performance in Meeting Financial Obligations, Especially Rent PHA and landlord references for the past three years, gathering information about past performance meeting rental obligations such as rent payment record, late payment record, whether the PHA/landlord ever began or completed lease termination for non-payment, and whether utilities were ever disconnected in the unit. PHAs and landlords will be asked if they would rent to the applicant family again.
Utility company references covering the monthly amount of utilities, late payment, disconnection, return of a utility deposit and whether the applicant can get utilities turned on in their name. (Use of this inquiry will be reserved for applicants applying for units where there are tenant-paid utilities.)
If an applicant has no rental payment history the PHA will check court records of eviction actions and other financial judgments, and credit reports. A lack of credit history will not disqualify someone from becoming a public housing resident, but a poor credit rating may.
Applicants with no rental payment history will also be asked to provide the PHA with personal references. The references will be requested to complete a verification of the applicant’s ability to pay rent if no other documentation of ability to meet financial obligations is available. The applicant will also be required to complete a checklist documenting their ability to meet financial obligations.
If previous landlords or the utility company do not respond to requests from the PHA, the applicant may provide other documentation that demonstrates their ability to meet financial obligations (e.g. rent receipts, cancelled checks, etc.)
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Disturbances of Neighbors, Destruction of Property or Living or Housekeeping Habits at Prior Residences that May Adversely Affect Health, Safety, or Welfare of Other Tenants, or Cause Damage to the Unit or the Development PHA and landlord references for the past three years, gathering information on whether the applicant kept a unit clean, safe and sanitary; whether they violated health or safety codes; whether any damage was done by the applicant to a current or previous unit or the development, and, if so, how much the repair of the damage cost; whether the applicant’s housekeeping caused insect or rodent infestation; and whether the neighbors complained about the applicant or whether the police were ever called because of disturbances.
Police and court records within the past three years will be used to check for any evidence of disturbance of neighbors or destruction of property that might have resulted in arrest or conviction. A record or records of arrest will not be used as the sole basis for the denial or proof that the applicant engaged in disqualifying activity.
A personal reference will be requested to complete a verification of the applicant’s ability to care for the unit and avoid disturbing neighbors if no other documentation is available. In these cases, the applicant will also be required to complete a checklist documenting their ability to care for the unit and to avoid disturbing neighbors.
Home visits may be used to determine the applicant’s ability to care for the unit.
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3-III.F. CRITERIA FOR DECIDING TO DENY ADMISSION
Evidence
PHA Policy
The PHA will use the preponderance of the evidence as the standard for making all admission decisions.
Preponderance of the evidence is defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not.
Preponderance of the evidence may not be determined by the number of witnesses, but by the greater weight of all evidence.
Consideration of Circumstances [24 CFR 960.203(c)(3) and (d)] HUD authorizes the PHA to consider all relevant circumstances when deciding whether to deny admission based on a family’s past history except in the situations for which denial of admission is mandated (see Section 3-III.B).
In the event the PHA receives unfavorable information with respect to an applicant, consideration must be given to the time, nature, and extent of the applicant’s conduct (including the seriousness of the offense). In a manner consistent with its policies, PHAs may give consideration to factors which might indicate a reasonable probability of favorable future conduct.
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PHA Policy
The PHA will consider the following facts and circumstances prior to making its decision:
The seriousness of the case, especially with respect to how it would affect other residents’ safety or property
The effects that denial of admission may have on other members of the family who were not involved in the action or failure to act
The extent of participation or culpability of individual family members, including whether the culpable family member is a minor or a person with disabilities, or (as discussed further in section 3-III.F) 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 denial, an arrest may trigger an investigation to determine whether the applicant actually engaged in disqualifying criminal activity. As part of its investigation, the PHA may obtain the police report associated with the arrest and consider the reported circumstances of the arrest. The PHA may also consider:
Any statements made by witnesses or the applicant not included in the police report
Whether criminal charges were filed
Whether, if filed, criminal charges were abandoned, dismissed, not prosecuted, or ultimately resulted in an acquittal
Any other evidence relevant to determining whether or not the applicant engaged in disqualifying activity
Evidence of criminal conduct will be considered if it indicates a demonstrable risk to safety and/or property
Evidence of the applicant family’s participation in or willingness to participate in social service or other appropriate counseling service programs In the case of drug or alcohol abuse, whether the culpable household member is participating in or has successfully completed a supervised drug or alcohol rehabilitation program or has otherwise been rehabilitated successfully The PHA will require the applicant to submit evidence of the household member’s current participation in or successful completion of a supervised drug or alcohol rehabilitation program, or evidence of otherwise having been rehabilitated successfully.
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Removal of a Family Member’s Name from the Application
Should the PHA’s screening process reveal that an applicant’s household includes an individual subject to state lifetime registered sex offender registration, the PHA must offer the family the opportunity to remove the ineligible family member from the household. If the family is unwilling to remove that individual from the household, the PHA must deny admission to the family [Notice PIH 2012-28].
For other criminal activity, the PHA may permit the family to exclude the culpable family members as a condition of eligibility. [24 CFR 960.203(c)(3)(i)].
PHA Policy
As a condition of receiving assistance, a family may agree to remove the culpable family member from the application. In such instances, the head of household must certify that the family member will not be permitted to visit or to stay as a guest in the public housing unit.
After admission to the program, the family must present evidence of the former family member’s current address upon PHA request.
Reasonable Accommodation [PH Occ GB, pp. 58-60]
If the family includes a person with disabilities, the PHA’s decision concerning denial of admission is subject to consideration of reasonable accommodation in accordance with 24 CFR Part 8.
PHA Policy
If the family indicates that the behavior of a family member with a disability is the reason for the proposed denial of admission, 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 denial of admission. See Chapter 2 for a discussion of reasonable accommodation.
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3-III.G. PROHIBITION AGAINST DENIAL OF ASSISTANCE TO VICTIMS OF
DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, STALKING, AND
HUMAN TRAFFICKING
The Violence against Women Act (VAWA) and the HUD regulation at 24 CFR 5.2005(b) prohibit PHAs from denying admission to an otherwise qualified applicant on the basis or as a direct result of the fact that the applicant is or has been a victim of domestic violence, dating violence, sexual assault, or stalking.
• 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.
Definitions of key terms used in VAWA are provided in section 16-VII of this ACOP, where general VAWA requirements and policies pertaining to notification, documentation, and confidentiality are also located.
Notification
VAWA requires PHAs to provide applicants who are denied assistance with a VAWA Notice of Occupancy Rights (form HUD-5380) and a domestic violence certification form (HUD-5382) at the time the applicant is denied.
PHA Policy
The PHA acknowledges that a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking may have an unfavorable history (e.g., a poor credit history, poor rental history, a record of previous damage to an apartment, a prior arrest record) due to adverse factors that would warrant denial under the PHA’s policies.
While the PHA is not required to identify whether adverse factors that resulted in the applicant’s denial are a result of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the applicant may inform the PHA that their status as a victim is directly related to the grounds for the denial. The PHA will request that the applicant provide enough information to the PHA to allow the PHA to make an objectively reasonable determination, based on all circumstances, whether the adverse factor is a direct result of their status as a victim.
The PHA will include in its notice of denial information about the protection against denial provided by VAWA in accordance with section 16-VII.C of this ACOP, a notice of VAWA rights, and a copy of the form HUD-5382. The PHA will request in writing that an applicant wishing to claim this protection notify the PHA within 14 business days.
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Documentation
Victim Documentation [24 CFR 5.2007]
PHA Policy
If an applicant claims the protection against denial of admission that VAWA provides to victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the PHA will request in writing that the applicant provide documentation supporting the claim in accordance with section 16-VII.D of this ACOP.
Perpetrator Documentation
PHA Policy
If the perpetrator of the abuse is a member of the applicant family, the applicant must provide additional documentation consisting of one of the following:
A signed statement (1) requesting that the perpetrator be removed from the application and (2) certifying that the perpetrator will not be permitted to visit or to stay as a guest in the public housing unit
Documentation that the perpetrator has successfully completed, or is successfully undergoing, rehabilitation or treatment. The documentation must be signed by an employee or agent of a domestic violence service provider or by a medical or other knowledgeable professional from whom the perpetrator has sought or is receiving assistance in addressing the abuse. The signer must attest under penalty of perjury to their belief that the rehabilitation was successfully completed or is progressing successfully. The victim and perpetrator must also sign or attest to the documentation.
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3-III.H. NOTICE OF ELIGIBILITY OR DENIAL
The PHA will notify an applicant family of its final determination of eligibility in accordance with the policies in Section 4-III.E.
If a PHA uses a criminal record or sex offender registration information obtained under 24 CFR 5, Subpart J, as the basis of a denial, a copy of the record must precede the notice to deny, with an opportunity for the applicant to dispute the accuracy and relevance of the information before the PHA can move to deny the application. In addition, a copy of the record must be provided to the subject of the record [24 CFR 5.903(f) and 5.905(d)].
PHA Policy
If, based on a criminal record or sex offender registration information an applicant family appears to be ineligible, the PHA will notify the family in writing of the proposed denial and provide a copy of the record to the applicant and to the subject of the record. The family will be given 10 business days to dispute the accuracy and relevance of the information. If the family does not contact the PHA to dispute the information within that 10 day period, the PHA will proceed with issuing the notice of denial of admission. A family that does not exercise their right to dispute the accuracy of the information prior to issuance of the official denial letter will still be given the opportunity to do so as part of the informal hearing process.
Notice requirements related to denying admission to noncitizens are contained in Section 3-II.B.
Notice policies related to denying admission to applicants who may be victims of domestic violence, dating violence, sexual assault, stalking or human trafficking are contained in Section 3-III.F.
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EXHIBIT 3-1: DETAILED DEFINITIONS RELATED TO DISABILITIES Person with Disabilities [24 CFR 5.403]
The term person with disabilities means a person who has any of the following types of conditions.
• Has a disability, as defined in 42 U.S.C. Section 423(d)(1)(A), which reads:
Inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months
In the case of an individual who has attained the age of 55 and is blind (within the meaning of “blindness” as defined in section 416(i)(1) of this title), inability by reason of such blindness to engage in substantial gainful activity, requiring skills or ability comparable to those of any gainful activity in which he has previously engaged with some regularity and over a substantial period of time.
• Has a developmental disability as defined in the Developmental Disabilities Assistance and Bill of Rights Act of 2000 [42 U.S.C.15002(8)], which defines developmental disability in functional terms as follows:
(A)IN GENERAL – The term developmental disability means a severe, chronic disability of an individual that-
(i) is attributable to a mental or physical impairment or combination of mental and physical impairments;
(ii) is manifested before the individual attains age 22; (iii) is likely to continue indefinitely;
(iv) results in substantial functional limitations in 3 or more of the following areas of major life activity: (I) self-care, (II) receptive and expressive language, (III) learning, (IV) mobility, (V) self-direction, (VI) capacity for independent living, (VII) economic self-sufficiency; and
(v) reflects the individual’s need for a combination and sequence of special, interdisciplinary, or generic services, individualized supports, or other forms of assistance that are of lifelong or extended duration and are individually planned and coordinated. (B) INFANTS AND YOUNG CHILDREN – An individual from birth to age 9, inclusive, who has a substantial developmental delay or specific congenital or acquired condition, may be considered to have a developmental disability without meeting 3 or more of the criteria described in clauses (i) through (v) of subparagraph (A) if the individual, without services and supports, has a high probability of meeting those criteria later in life. • Has a physical, mental, or emotional impairment that is expected to be of long-continued and indefinite duration; substantially impedes their ability to live independently, and is of such a nature that the ability to live independently could be improved by more suitable housing conditions.
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People with the acquired immunodeficiency syndrome (AIDS) or any conditions arising from the etiologic agent for AIDS are not excluded from this definition.
A person whose disability is based solely on any drug or alcohol dependence does not qualify as a person with disabilities for the purposes of this program.
For purposes of reasonable accommodation and program accessibility for persons with disabilities, the term person with disabilities refers to an individual with handicaps.
Individual with Handicaps [24 CFR 8.3]
Individual with handicaps means any person who has a physical or mental impairment that substantially limits one or more major life activities; has a record of such an impairment; or is regarded as having such an impairment. The term does not include any individual who is an alcoholic or drug abuser whose current use of alcohol or drugs prevents the individual from participating in the program or activity in question, or whose participation, by reason of such current alcohol or drug abuse, would constitute a direct threat to property or the safety of others.
As used in this definition, the phrase:
(1) Physical or mental impairment includes:
(a) Any physiological disorder or condition, cosmetic disfigurement, or anatomical loss affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive; digestive; genito-urinary; hemic and lymphatic; skin; and endocrine (b) Any mental or psychological disorder, such as mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities. The term physical or mental impairment includes, but is not limited to, such diseases and conditions as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental retardation, emotional illness, drug addiction and alcoholism. (2) Major life activities means functions such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning and working. (3) Has a record of such an impairment means has a history of, or has been misclassified as having, a mental or physical impairment that substantially limits one or more major life activities.
(4) Is regarded as having an impairment means:
(a) Has a physical or mental impairment that does not substantially limit one or more major life activities but that is treated by a recipient as constituting such a limitation (b) Has a physical or mental impairment that substantially limits one or more major life activities only as a result of the attitudes of others toward such impairment (c) Has none of the impairments defined in paragraph (a) of this section but is treated by a recipient as having such an impairment
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APPLICATIONS, WAITING LIST AND TENANT SELECTION
INTRODUCTION
When a family wishes to reside in public housing, the family must submit an application that provides the PHA with the information needed to determine the family’s eligibility. HUD requires the PHA to place all eligible families that apply for public housing on a waiting list.
When a unit becomes available, the PHA must select families from the waiting list in accordance with HUD requirements and PHA policies as stated in its Admissions and Continued Occupancy Policy (ACOP) and its annual plan.
The PHA is required to adopt a clear approach to accepting applications, placing families on the waiting list, and selecting families from the waiting list, and must follow this approach consistently. The actual order in which families are selected from the waiting list can be affected if a family has certain characteristics designated by HUD or the PHA to receive preferential treatment.
HUD regulations require that the PHA comply with all equal opportunity requirements and it must affirmatively further fair housing goals in the administration of the program [24 CFR 960.103, PH Occ GB p. 13]. Adherence to the selection policies described in this chapter ensures that the PHA will be in compliance with all relevant fair housing requirements, as described in Chapter 2.
This chapter describes HUD and PHA policies for accepting applications, managing the waiting list and selecting families from the waiting list. The PHAs policies for assigning unit size and making unit offers are contained in Chapter 5. Together, Chapters 4 and 5 of the ACOP comprise the PHA’s Tenant Selection and Assignment Plan (TSAP).
The policies outlined in this chapter are organized into three sections, as follows:
Part I: The Application Process. This part provides an overview of the application process, and discusses how applicants can obtain and submit applications. It also specifies how the PHA will handle the applications it receives.
Part II: Managing the Waiting List. This part presents the policies that govern how the PHA’s waiting list is structured, when it is opened and closed, and how the public is notified of the opportunity to apply for public housing. It also discusses the process the PHA will use to keep the waiting list current.
Part III: Tenant Selection. This part describes the policies that guide the PHA in selecting families from the waiting list as units become available. It also specifies how in-person interviews will be used to ensure that the PHA has the information needed to make a final eligibility determination.
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4-I.A. OVERVIEW
This part describes the policies that guide the PHA’s efforts to distribute and accept applications, and to make preliminary determinations of applicant family eligibility that affect placement of the family on the waiting list. This part also describes the PHA’s obligation to ensure the accessibility of the application process.
4-I.B. APPLYING FOR ASSISTANCE
Any family that wishes to reside in public housing must apply for admission to the program [24 CFR 1.4(b)(2)(ii), 24 CFR 960.202(a)(2)(iv), and PH Occ GB, p. 68]. HUD permits the PHA to determine the format and content of its applications, as well how such applications will be made available to interested families and how applications will be accepted by the PHA. However, the PHA must include Form HUD-92006, Supplement to Application for Federally Assisted Housing, as part of the PHA’s application [Notice PIH 2009-36].
PHA Policy
Depending upon the length of time between the date of application and the availability of housing, the PHA may use a one- or two-step application process.
A one-step process will be used when it is expected that a family will be selected from the waiting list within 60 days of the date of application. At application, the family must provide all of the information necessary to establish family eligibility and the amount of rent the family will pay.
A two-step process will be used when it is expected that a family will not be selected from the waiting list for at least 60 days from the date of application. Under the two-step application process, the PHA initially will require families to provide only the information needed to make an initial assessment of the family’s eligibility, and to determine the family’s placement on the waiting list. The family will be required to provide all of the information necessary to establish family eligibility and the amount of rent the family will pay when selected from the waiting list.
Families may obtain application forms from the PHA’s website or from the PHA’s office during normal business hours. Families may also request – by telephone or by mail – that an application form be sent to the family via first class mail or via email.
Completed applications must be returned to the PHA by mail, electronically via email, by fax, or submitted in person during normal business hours.
The PHA will also offer the option to schedule an appointment or drop off applications during early morning, evening, or weekend hours to accommodate applicants who may be unable to appear during regular business hours due to work obligations, inability to obtain child care or transportation, or other hardship reasons.
Applications must be filled out completely in order to be accepted by the PHA for processing. If an application is incomplete, the PHA will notify the family of the additional information required.
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The PHA must take a variety of steps to ensure that the application process is accessible to those people who might have difficulty complying with the standard PHA application process.
Disabled Populations [24 CFR 8; PH Occ GB, p. 68]
The PHA must provide reasonable accommodation as needed for persons with disabilities to make the application process fully accessible. The facility where applications are accepted and the application process must be fully accessible, or the PHA must provide an alternate approach that provides equal access to the program. Chapter 2 provides a full discussion of the PHA’s policies related to providing reasonable accommodations for people with disabilities.
Limited English Proficiency
PHAs are required to take reasonable steps to ensure meaningful access to their programs and activities by persons with limited English proficiency [24 CFR 1]. Chapter 2 provides a full discussion on the PHA’s policies related to ensuring access to people with limited English proficiency (LEP).
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The PHA must review each completed application received and make a preliminary assessment of the family’s eligibility. Applicants for whom the waiting list is open must be placed on the waiting list unless the PHA determines the family to be ineligible. Where the family is determined to be ineligible, the PHA must notify the family in writing [24 CFR 960.208(a); PH Occ GB, p. 41].
No applicant has a right or entitlement to be listed on the waiting list, or to any particular position on the waiting list.
Ineligible for Placement on the Waiting List
PHA Policy
The PHA will place all families on the waiting list upon receipt of application. Families will be advised to check in every 60 days to update their application. Once eligibility has been determined the family will be notified in writing of removal from waiting list within 10 days if the determination if found ineligible Eligible for Placement on the Waiting List
PHA Policy
The PHA will place all families on the waiting list upon receipt of application. Families will be advised to check in every 60 days to update their application.
Placement on the waiting list does not indicate that the family is, in fact, eligible for assistance. A final determination of eligibility will be made when the family is selected from the waiting list.
Applicants will be placed on the waiting list according to any preference(s) for which they qualify, and the date and time their complete application is received by the PHA.
Families will be provided with information regarding relative place on wait list and approximate length of wait at check in.
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4-II.A. OVERVIEW
The PHA must have policies regarding the type of waiting list it will utilize as well as how the waiting list will be organized and managed. This includes policies on notifying the public on the opening and closing of the waiting list to new applicants, updating family information, purging the list of families that are no longer interested in or eligible for public housing, and conducting outreach to ensure a sufficient number of applicants.
In addition, HUD imposes requirements on how the PHA may structure its waiting list and how families must be treated if they apply for public housing at a PHA that administers more than one assisted housing program.
4-II.B. ORGANIZATION OF THE WAITING LIST
The PHA’s public housing waiting list must be organized in such a manner to allow the PHA to accurately identify and select families in the proper order, according to the admissions policies described in this ACOP.
PHA Policy
The waiting list will contain the following information for each applicant listed:
Name and social security number of head of household
Unit size required (number of family members)
Amount and source of annual income
Accessibility requirement, if any
Date and time of application or application number
Household type (family, elderly, disabled)
Admission preference, if any
Race and ethnicity of the head of household
The specific site(s) selected (only if PHA offers site-based waiting lists) Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-8 The PHA may adopt one community-wide waiting list or site-based waiting lists. The PHA must obtain approval from HUD through submission of its Annual Plan before it may offer site-based waiting lists. Site-based waiting lists allow families to select the development where they wish to reside and must be consistent with all applicable civil rights and fair housing laws and regulations [24 CFR 903.7(b)(2)].
PHA Policy
The PHA will maintain one single community-wide waiting list for its developments.
Within the list, the PHA will designate subparts to easily identify who should be offered the next available unit (i.e. mixed populations, general occupancy, unit size, and accessible units).
The PHA will not adopt site-based waiting lists.
HUD requires that public housing applicants must be offered the opportunity to be placed on the waiting list for any tenant-based or project-based voucher or moderate rehabilitation program that the PHA operates if 1) the other programs’ waiting lists are open, and 2) the family is qualified for the other programs [24 CFR 982.205(a)(2)(i)].
HUD permits, but does not require, that PHAs maintain a single merged waiting list for their public housing, Section 8, and other subsidized housing programs [24 CFR 982.205(a)(1)].
PHA Policy
The PHA will not merge the public housing waiting list with the waiting list for any other program the PHA operates.
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Closing the Waiting List
The PHA is permitted to close the waiting list, in whole or in part, if it has an adequate pool of families to fully lease units in all of its developments. The PHA may close the waiting list completely, or restrict intake by preference, type of project, or by size and type of dwelling unit. [PH Occ GB, p. 31].
PHA Policy
The PHA will close the waiting list when the estimated waiting period for housing applicants on the list reaches 24 months for the most current applicants. Where the PHA has particular preferences or other criteria that require a specific category of family, the PHA may elect to continue to accept applications from these applicants while closing the waiting list to others.
Reopening the Waiting List
If the waiting list has been closed, it may be reopened at any time. The PHA should publish a notice announcing the opening of the waiting list in local newspapers of general circulation, minority media, and other suitable media outlets. Such notice must comply with HUD fair housing requirements. The PHA should specify who may apply, and where and when applications will be received.
PHA Policy
The PHA will announce the reopening of the waiting list at least 10 business days prior to the date applications will first be accepted. If the list is only being reopened for certain categories of families, this information will be contained in the notice.
The notice will inform applicants of the date, time, method, and place applications can be obtained and submitted, how blank applications may be obtained (e.g., from what addresses, community sites, and websites), all methods by which applications will be accepted (e.g., in person, by phone, by fax, by email), a point of contact who can answer questions, any limitations on who may apply, and any other information the applicant may need to successfully submit the application. The PHA will describe its prioritization system or whether it uses a lottery and will clearly state that this system will be used to place applicants on the waiting list.
To ensure that public notices broadly reach potential applicants in all communities throughout the housing market area, the PHA will distribute public notices to local community-based organizations, such as social service agencies and religious institutions; distribute the notice online through the PHA’s website or social media platforms and other online platforms for local housing news; and make use of any local newspapers of general circulation, minority media, and other suitable means.
The PHA will give public notice by publishing the relevant information using the following media outlets:
Needles Desert Star, Mohave Daily News
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Because HUD requires the PHA to admit a specified percentage of extremely low-income families, the PHA may need to conduct special outreach to ensure that an adequate number of such families apply for public housing.
PHA outreach efforts must comply with fair housing requirements. This includes:
• Analyzing the housing market area and the populations currently being served to identify underserved populations
• Ensuring that outreach efforts are targeted to media outlets that reach eligible populations that are underrepresented in the program
• Avoiding outreach efforts that prefer or exclude people who are members of a protected class PHA outreach efforts must be designed to inform qualified families about the availability of units under the program. These efforts may include, as needed, any of the following activities:
• Submitting press releases to local newspapers, including minority newspapers • Developing informational materials and flyers to distribute to other agencies • Providing application forms to other public and private agencies that serve the low income population
• Developing partnerships with other organizations that serve similar populations, including agencies that provide services for persons with disabilities PHA Policy
The PHA will monitor the characteristics of the population being served and the characteristics of the population as a whole in the PHA’s jurisdiction. Targeted outreach efforts will be undertaken if a comparison suggests that certain populations are being underserved.
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PHA Policy
While the family is on the waiting list, the family must inform the PHA, within 10 business days, of changes in family size or composition, preference status, or contact information, including current residence, mailing address, and phone number. The changes must be submitted in writing.
Changes in an applicant's circumstances while on the waiting list may affect the family's qualification for a particular bedroom size or entitlement to a preference. When an applicant reports a change that affects their placement on the waiting list, the waiting list will be updated accordingly.
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HUD requires the PHA to establish policies that describe the circumstances under which applicants will be removed from the waiting list [24 CFR 960.202(a)(2)(iv)].
Purging the Waiting List
The decision to remove an applicant family that includes a person with disabilities from the waiting list is subject to reasonable accommodation. If the applicant did not respond to the PHA’s request for information or updates because of the family member’s disability, the PHA must, upon the family’s request, reinstate the applicant family to their former position on the waiting list as a reasonable accommodation [24 CFR 8.4(a), 24 CFR 100.204(a), and PH Occ GB, p. 39 and 40]. See Chapter 2 for further information regarding reasonable accommodations.
PHA Policy
The waiting list will be purge the wait list periodically to ensure applications are current and applicants remain interested in tenancy.
If a family has update their application within the 60 day time frame, the family will be sent a no contact notice allowing the family 15 business days to update their application.
The family’s response must be in writing and may be delivered in person, by mail, by email, or by fax. Responses should be postmarked or received by the PHA not later than 15 business days from the date of the PHA letter.
If the family fails to respond within 15 business days, the family will be removed from the waiting list without further notice.
If the notice is returned by the post office the applicant will be removed from the waiting list without further notice.
If a family is removed from the waiting list for failure to respond, the PHA may reinstate the family if it is determined that the lack of response was due to PHA error, or to circumstances beyond the family’s control, as a result of a family member’s disability, or as a direct result of status as a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, including an adverse factor resulting from such abuse.
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PHA Policy
The PHA will remove an applicant from the waiting list upon request by the applicant family. In such cases no informal hearing is required.
If the PHA determines that the family is not eligible for admission (see Chapter 3) at any time while the family is on the waiting list the family will be removed from the waiting list.
If a family is removed from the waiting list because the PHA has determined the family is not eligible for admission, a notice will be sent to the family’s address of record as well as to any alternate address provided on the initial application. The notice will state the reasons the family was removed from the waiting list and will inform the family how to request an informal hearing regarding the PHA’s decision (see Chapter 14) [24 CFR 960.208(a)].
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-15 PART III: TENANT SELECTION
4-III.A. OVERVIEW
The PHA must establish tenant selection policies for families being admitted to public housing [24 CFR 960.201(a)]. The PHA must not require any specific income or racial quotas for any developments [24 CFR 903.2(d)]. The PHA must not assign persons to a particular section of a community or to a development or building based on race, color, religion, sex, disability, familial status or national origin for purposes of segregating populations [24 CFR 1.4(b)(1)(iii) and 24 CFR 903.2(d)(1)].
The order in which families will be selected from the waiting list depends on the selection method chosen by the PHA and is impacted in part by any selection preferences that the family qualifies for. The availability of units also may affect the order in which families are selected from the waiting list.
The PHA must maintain a clear record of all information required to verify that the family is selected from the waiting list according to the PHA’s selection policies [24 CFR 960.206(e)(2)].
The PHA’s policies must be posted any place where the PHA receives applications. The PHA must provide a copy of its tenant selection policies upon request to any applicant or tenant. The PHA may charge the family for providing a copy of its tenant selection policies [24 CFR 960.202(c)(2)].
PHA Policy
When an applicant or resident family requests a copy of the PHA’s tenant selection policies, the PHA will provide copies to them free of charge.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-16 4-III.B. SELECTION METHOD
PHAs must describe the method for selecting applicant families from the waiting list, including the system of admission preferences that the PHA will use.
Local Preferences [24 CFR 960.206]
PHAs are permitted to establish local preferences and to give priority to serving families that meet those criteria. HUD specifically authorizes and places restrictions on certain types of local preferences. HUD also permits the PHA to establish other local preferences, at its discretion.
Any local preferences established must be consistent with the PHA plan and the consolidated plan and must be based on local housing needs and priorities that can be documented by generally accepted data sources [24 CFR 960.206(a)].
PHA Policy
The PHA will use the following local preferences:
“Working” families, where the head, spouse or sole member is employed. However, an applicant where the head and spouse or sole member is a person age 62 or older, or is a person with disabilities, must also be given the benefit of this preference.
Families who reside within a 30 mile radius of the Housing Authority in order to respond to local needs and priorities of the need for assisted housing the Needles Area.
A family member who is working or who has notified that they are hired to work in the Needles area with be treated as residents.
Unsheltered homeless families with children, with priority to homeless families of veterans and active military personnel.
Families that include a family member who is a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking.
Families who have been involuntarily displaced due to a disaster (e.g., fire, flood, earthquake), or government action (e.g. code enforcement, public improvement).
Families where the head, spouse, cohead, or sole member is elderly.
Families where the head, spouse, cohead, or sole member is disabled.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-17 Income Targeting Requirement [24 CFR 960.202(b)]
HUD requires that extremely low-income (ELI) families make up at least 40 percent of the families admitted to public housing during the PHA’s fiscal year. ELI families are those with annual incomes at or below the federal poverty level or 30 percent of the area median income, whichever number is higher [Federal Register notice 6/25/14]. To ensure this requirement is met, the PHA may skip non-ELI families on the waiting list in order to select an ELI family.
If a PHA also operates a housing choice voucher (HCV) program, admissions of extremely lowincome families to the PHA’s HCV program during a PHA fiscal year that exceed the 75 percent minimum target requirement for the voucher program, shall be credited against the PHA’s basic targeting requirement in the public housing program for the same fiscal year. However, under these circumstances the fiscal year credit to the public housing program must not exceed the lower of: (1) ten percent of public housing waiting list admissions during the PHA fiscal year; (2) ten percent of waiting list admissions to the PHA’s housing choice voucher program during the PHA fiscal year; or (3) the number of qualifying low-income families who commence occupancy during the fiscal year of PHA public housing units located in census tracts with a poverty rate of 30 percent or more. For this purpose, qualifying low-income family means a lowincome family other than an extremely low-income family.
PHA Policy
The PHA will monitor progress in meeting the ELI requirement throughout the fiscal year. ELI families will be selected ahead of other eligible families on an as-needed basis to ensure that the income targeting requirement is met.
Mixed Population Developments [24 CFR 960.407]
A mixed population development is a public housing development or portion of a development that was reserved for elderly families and disabled families at its inception (and has retained that character) or the PHA at some point after its inception obtained HUD approval to give preference in tenant selection for all units in the development (or portion of a development) to elderly and disabled families [24 CFR 960.102]. Elderly family means a family whose head, spouse, cohead, or sole member is a person who is at least 62 years of age. Disabled family means a family whose head, spouse, cohead, or sole member is a person with disabilities [24 CFR 5.403]. The PHA must give elderly and disabled families equal preference in selecting these families for admission to mixed population developments. The PHA may not establish a limit on the number of elderly or disabled families that may occupy a mixed population development. In selecting elderly and disabled families to fill these units, the PHA must first offer the units that have accessibility features for families that include a person with a disability and require the accessibility features of such units. The PHA may not discriminate against elderly or disabled families that include children (Fair Housing Amendments Act of 1988).
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-18 Units Designated for Elderly or Disabled Families [24 CFR 945] The PHA may designate projects or portions of a public housing project specifically for elderly or disabled families. The PHA must have a HUD-approved allocation plan before the designation may take place.
Among the designated developments, the PHA must also apply any preferences that it has established. If there are not enough elderly families to occupy the units in a designated elderly development, the PHA may allow near-elderly families to occupy the units [24 CFR 945.303(c)(1)]. Near-elderly family means a family whose head, spouse, or cohead is at least 50 years old, but is less than 62 [24 CFR 5.403].
If there are an insufficient number of elderly families and near-elderly families for the units in a development designated for elderly families, the PHA must make available to all other families any unit that is ready for re-rental and has been vacant for more than 60 consecutive days [24 CFR 945.303(c)(2)].
The decision of any disabled family or elderly family not to occupy or accept occupancy in designated housing shall not have an adverse affect on their admission or continued occupancy in public housing or their position on or placement on the waiting list. However, this protection does not apply to any family who refuses to occupy or accept occupancy in designated housing because of the race, color, religion, sex, disability, familial status, or national origin of the occupants of the designated housing or the surrounding area [24 CFR 945.303(d)(1) and (2)].
This protection does apply to an elderly family or disabled family that declines to accept occupancy, respectively, in a designated project for elderly families or for disabled families, and requests occupancy in a general occupancy project or in a mixed population project [24 CFR 945.303(d)(3)].
PHA Policy
The PHA does not have designated elderly or designated disabled housing at this time.
Deconcentration of Poverty and Income-Mixing [24 CFR 903.1 and 903.2] The PHA's admission policy must be designed to provide for deconcentration of poverty and income-mixing by bringing higher income tenants into lower income projects and lower income tenants into higher income projects. A statement of the PHA’s deconcentration policies must be in included in its annual plan [24 CFR 903.7(b)].
The PHA’s deconcentration policy must comply with its obligation to meet the income targeting requirement [24 CFR 903.2(c)(5)].
Developments subject to the deconcentration requirement are referred to as ‘covered developments’ and include general occupancy (family) public housing developments. The following developments are not subject to deconcentration and income mixing requirements:
developments operated by a PHA with fewer than 100 public housing units; mixed population or developments designated specifically for elderly or disabled families; developments operated by a PHA with only one general occupancy development; developments approved for demolition or for conversion to tenant-based public housing; and developments approved for a mixed-finance plan using HOPE VI or public housing funds [24 CFR 903.2(b)].
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-19 Steps for Implementation [24 CFR 903.2(c)(1)]
To implement the statutory requirement to deconcentrate poverty and provide for income mixing in covered developments, the PHA must comply with the following steps:
Step 1. The PHA must determine the average income of all families residing in all the PHA's covered developments. The PHA may use the median income, instead of average income, provided that the PHA includes a written explanation in its annual plan justifying the use of median income.
PHA Policy
The PHA will determine the average income of all families in all covered developments on an annual basis.
Step 2. The PHA must determine the average income (or median income, if median income was used in Step 1) of all families residing in each covered development. In determining average income for each development, the PHA has the option of adjusting its income analysis for unit size in accordance with procedures prescribed by HUD.
PHA Policy
The PHA will determine the average income of all families residing in each covered development (not adjusting for unit size) on an annual basis.
Step 3. The PHA must then determine whether each of its covered developments falls above, within, or below the established income range (EIR), which is from 85% to 115% of the average family income determined in Step 1. However, the upper limit must never be less than the income at which a family would be defined as an extremely low-income family (federal poverty level or 30 percent of median income, whichever number is higher).
Step 4. The PHA with covered developments having average incomes outside the EIR must then determine whether or not these developments are consistent with its local goals and annual plan.
Step 5. Where the income profile for a covered development is not explained or justified in the annual plan submission, the PHA must include in its admission policy its specific policy to provide for deconcentration of poverty and income mixing.
Depending on local circumstances the PHA’s deconcentration policy may include, but is not limited to the following:
• Providing incentives to encourage families to accept units in developments where their income level is needed, including rent incentives, affirmative marketing plans, or added amenities
• Targeting investment and capital improvements toward developments with an average income below the EIR to encourage families with incomes above the EIR to accept units in those developments
• Establishing a preference for admission of working families in developments below the EIR Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-20 • Skipping a family on the waiting list to reach another family in an effort to further the goals of deconcentration
• Providing other strategies permitted by statute and determined by the PHA in consultation with the residents and the community through the annual plan process to be responsive to local needs and PHA strategic objectives
A family has the sole discretion whether to accept an offer of a unit made under the PHA's deconcentration policy. The PHA must not take any adverse action toward any eligible family for choosing not to accept an offer of a unit under the PHA's deconcentration policy [24 CFR 903.2(c)(4)].
If, at annual review, the average incomes at all general occupancy developments are within the EIR, the PHA will be considered to be in compliance with the deconcentration requirement and no further action is required.
PHA Policy
For developments outside the EIR the PHA will take the following actions to provide for deconcentration of poverty and income mixing:
[Insert PHA policy here]
Order of Selection [24 CFR 960.206(e)]
The PHA system of preferences may select families either according to the date and time of application or by a random selection process.
PHA Policy
Families will be selected from the waiting list based on preference points. Among applicants with the same preference points, families will be selected on a first-come, firstserved basis according to the date and time their complete application is received by the PHA.
When selecting applicants from the waiting list, the PHA will match the characteristics of the available unit (unit size, accessibility features, unit type) to the applicants on the waiting lists. The PHA will offer the unit to the highest ranking applicant who qualifies for that unit size or type, or that requires the accessibility features.
By matching unit and family characteristics, it is possible that families who are lower on the waiting list may receive an offer of housing ahead of families with an earlier date and time of application or higher preference status.
Factors such as deconcentration or income mixing and income targeting will also be considered in accordance with HUD requirements and PHA policy.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-21 4-III.C. NOTIFICATION OF SELECTION
When the family has been selected from the waiting list, the PHA must notify the family [24 CFR 960.208].
PHA Policy
The PHA will notify the family by first class mail when it is selected from the waiting list.
The notice will inform the family of the following:
Date, time, and location of the scheduled application interview, including any procedures for rescheduling the interview
Who is required to attend the interview
Documents that must be provided at the interview to document the legal identity of household members, including information about what constitutes acceptable documentation
Documents that must be provided at the interview to document eligibility for a preference, if applicable
Other documents and information that should be brought to the interview If a notification letter is returned to the PHA with no forwarding address, the family will be removed from the waiting list without further notice. Such failure to act on the part of the applicant prevents the PHA from making an eligibility determination; therefore no informal hearing will be offered.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-22 4-III.D. THE APPLICATION INTERVIEW
HUD recommends that the PHA obtain the information and documentation needed to make an eligibility determination through a private interview. Being invited to attend an interview does not constitute admission to the program.
Assistance cannot be provided to the family until all SSN documentation requirements are met.
However, if the PHA determines that an applicant family is otherwise eligible to participate in the program, the family may retain its place on the waiting list for a period of time determined by the PHA [Notice PIH 2018-24].
Reasonable accommodation must be made for persons with disabilities who are unable to attend an interview due to their disability [24 CFR 8.4(a) and 24 CFR 100.204(a)].
PHA Policy
Families selected from the waiting list are required to participate in an eligibility interview.
The head of household and the spouse/cohead will be strongly encouraged to attend the interview together. However, either the head of household or the spouse/cohead may attend the interview on behalf of the family. Verification of information pertaining to adult members of the household not present at the interview will not begin until signed release forms are returned to the PHA.
The interview will be conducted only if the head of household or spouse/cohead provides appropriate documentation of legal identity (Chapter 7 provides a discussion of proper documentation of legal identity). If the family representative does not provide the required documentation, the appointment may be rescheduled when the proper documents have been obtained.
Pending disclosure and documentation of social security numbers, the PHA will allow the family to retain its place on the waiting list for [insert amount of time reasonable for PHA]. If not all household members have disclosed their SSNs at the next time a unit becomes available, the PHA will offer a unit to the next eligible applicant family on the waiting list.
If the family is claiming a waiting list preference, the family must provide documentation to verify their eligibility for a preference (see Chapter 7). If the family is verified as eligible for the preference, the PHA will proceed with the interview. If the PHA determines the family is not eligible for the preference, the interview will not proceed and the family will be placed back on the waiting list according to the date and time of their application.
The family must provide the information necessary to establish the family’s eligibility, including suitability, and to determine the appropriate amount of rent the family will pay.
The family must also complete required forms, provide required signatures, and submit required documentation. If any materials are missing, the PHA will provide the family with a written list of items that must be submitted.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-23 Any required documents or information that the family is unable to provide at the interview must be provided within 10 business days of the interview (Chapter 7 provides details about longer submission deadlines for particular items, including documentation of Social Security numbers and eligible noncitizen status). If the family is unable to obtain the information or materials within the required time frame, the family may request an extension. If the required documents and information are not provided within the required time frame (plus any extensions), the family will be sent a notice of denial (see Chapter 3).
An advocate, interpreter, or other assistant may assist the family with the application and the interview process.
Interviews will be conducted in English. For limited English proficient (LEP) applicants, the PHA will provide translation services in accordance with the PHA’s LEP plan.
If the family is unable to attend a scheduled interview, the family should contact the PHA in advance of the interview to schedule a new appointment. In all circumstances, if a family does not attend a scheduled interview, the PHA will send another notification letter with a new interview appointment time. Applicants who fail to attend two scheduled interviews without PHA approval will have their applications made inactive based on the family’s failure to supply information needed to determine eligibility. The second appointment letter will state that failure to appear for the appointment without a request to reschedule will be interpreted to mean that the family is no longer interested and their application will be made inactive. Such failure to act on the part of the applicant prevents the PHA from making an eligibility determination, therefore the PHA will not offer an informal hearing.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-24 4-III.E. FINAL ELIGIBILITY DETERMINATION [24 CFR 960.208] The PHA must verify all information provided by the family (see Chapter 7). Based on verified information related to the eligibility requirements, including PHA suitability standards, the PHA must make a final determination of eligibility (see Chapter 3).
When a determination is made that a family is eligible and satisfies all requirements for admission, including tenant selection criteria, the applicant must be notified of the approximate date of occupancy insofar as that date can be reasonably determined [24 CFR 960.208(b)].
PHA Policy
The PHA will notify a family in writing of their eligibility within 10 business days of the determination and will provide the approximate date of occupancy insofar as that date can be reasonably determined.
The PHA will expedite the administrative process for determining eligibility to the extent possible for applicants who are admitted to the public housing program as a result of an emergency transfer from another PHA program.
The PHA must promptly notify any family determined to be ineligible for admission of the basis for such determination, and must provide the applicant upon request, within a reasonable time after the determination is made, with an opportunity for an informal hearing on such determination [24 CFR 960.208(a)].
PHA Policy
If the PHA determines that the family is ineligible, the PHA will send written notification of the ineligibility determination within 10 business days of the determination. The notice will specify the reasons for ineligibility and will inform the family of its right to request an informal hearing (see Chapter 14).
If the PHA uses a criminal record or sex offender registration information obtained under 24 CFR 5, Subpart J, as the basis of a denial, a copy of the record must precede the notice to deny, with an opportunity for the applicant to dispute the accuracy and relevance of the information before the PHA can move to deny the application. See Section 3-III.G for the PHA’s policy regarding such circumstances.
The PHA must provide the family a notice of VAWA rights (form HUD-5380) as well as the HUD VAWA self-certification form (form HUD-5382) in accordance with the Violence against Women Act, and as outlined in 16-VII.C, at the time the applicant is provided assistance or at the time the applicant is denied assistance. This notice must be provided in both of the following instances: (1) when a family actually begins receiving assistance (lease execution); or (2) when a family is notified of its ineligibility.
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© Copyright 2023 by Nan McKay & Associates ACOP 3/1/23
Unlimited copies may be made for internal use. Page 5-1 Chapter 5
OCCUPANCY STANDARDS AND UNIT OFFERS
INTRODUCTION
The PHA must establish policies governing occupancy of dwelling units and offering dwelling units to qualified families.
This chapter contains policies for assigning unit size and making unit offers. The PHA’s waiting list and selection policies are contained in Chapter 4. Together, Chapters 4 and 5 of the ACOP comprise the PHA’s Tenant Selection and Assignment Plan (TSAP).
Policies in this chapter are organized in two parts.
Part I: Occupancy Standards. This part contains the PHA’s standards for determining the appropriate unit size for families of different sizes, compositions, and types.
Part II: Unit Offers. This part contains the PHA’s policies for making unit offers, and describes actions to be taken when unit offers are refused.
PART I: OCCUPANCY STANDARDS
5-I.A. OVERVIEW
Occupancy standards are established by the PHA to ensure that units are occupied by families of the appropriate size. This policy maintains the maximum usefulness of the units, while preserving them from underutilization or from excessive wear and tear due to overcrowding. Part I of this chapter explains the occupancy standards. These standards describe the methodology and factors the PHA will use to determine the size unit for which a family qualifies, and includes the identification of the minimum and maximum number of household members for each unit size. This part also identifies circumstances under which an exception to the occupancy standards may be approved.
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© Copyright 2023 by Nan McKay & Associates ACOP 3/1/23
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In selecting a family to occupy a particular unit, the PHA may match characteristics of the family with the type of unit available, for example, number of bedrooms [24 CFR 960.206(c)].
HUD does not specify the number of persons who may live in public housing units of various sizes. PHAs are permitted to develop appropriate occupancy standards as long as the standards do not have the effect of discriminating against families with children [PH Occ GB, p. 62].
Although the PHA does determine the size of unit the family qualifies for under the occupancy standards, the PHA does not determine who shares a bedroom/sleeping room.
The PHA’s occupancy standards for determining unit size must be applied in a manner consistent with fair housing requirements.
PHA Policy
The PHA will use the same occupancy standards for each of its developments.
The PHA’s occupancy standards are as follows:
The PHA will assign one bedroom for each two persons within the household, except in the following circumstances:
Persons of different generations will not be required to share a bedroom, except:
A single pregnant woman with no other household members and a single parent with one child and no other household members will be assigned a one-bedroom unit. Assuming no other changes in family composition, after the child reaches the age of [number of] years, the family will be eligible for a transfer to a 2-bedroom unit.
Otherwise, an unborn child will not be counted as a person in determining unit size.
Live-in aides will be allocated a separate bedroom. No additional bedrooms will be provided for the live-in aide’s family.
Single person families will be allocated a zero or one bedroom.
Children related to a household member by birth, adoption, or court awarded custody will be considered when determining unit size.
Foster children will be considered when determining unit size. The family may add foster children to the household as long as it does not overcrowd the unit based on the PHA’s occupancy standards.
Children away at school, but for whom the unit is considered the primary residence, and children temporarily placed outside the home, will be considered when determining unit size.
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© Copyright 2023 by Nan McKay & Associates ACOP 3/1/23
Unlimited copies may be made for internal use. Page 5-3 Children in the process of being adopted will be considered when determining unit size.
Children who will live in the unit less than 50 percent of the time will not be considered when determining unit size.
The PHA will reference the following standards in determining the appropriate unit bedroom size for a family:
BEDROOM SIZE MINIMUM NUMBER OF
PERSONS
MAXIMUM NUMBER
OF PERSONS
0 1 1
1 1 2
2 2 4
3 3 6
4 4 8
5 6 10
6 8 12
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© Copyright 2023 by Nan McKay & Associates ACOP 3/1/23
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Types of Exceptions
PHA Policy
The PHA will consider granting exceptions to the occupancy standards at the family’s request if the PHA determines the exception is justified by the relationship, age, sex, health or disability of family members, or other personal circumstances.
For example, an exception may be granted if a larger bedroom size is needed for medical equipment due to its size and/or function, or as a reasonable accommodation for a person with disabilities. An exception may also be granted for a smaller bedroom size in cases where the number of household members exceeds the maximum number of persons allowed for the unit size in which the family resides (according to the chart in Section 5- I.B) and the family does not want to transfer to a larger size unit.
When evaluating exception requests the PHA will consider the size and configuration of the unit. In no case will the PHA grant an exception that is in violation of local housing or occupancy codes, regulations or laws.
Requests from applicants to be placed on the waiting list for a unit size smaller than designated by the occupancy standards will be approved as long as the unit is not overcrowded according to local code, and the family agrees not to request a transfer for a period of two years from the date of admission, unless they have a subsequent change in family size or composition.
To prevent vacancies, the PHA may provide an applicant family with a larger unit than the occupancy standards permit. However, in these cases the family must agree to move to a suitable, smaller unit when another family qualifies for the larger unit and there is an appropriate size unit available for the family to transfer to.
Processing of Exceptions
PHA Policy
All requests for exceptions to the occupancy standards must be submitted in writing.
In the case of a request for exception as a reasonable accommodation, the PHA will encourage the resident to make the request in writing using a reasonable accommodation request form. However, the PHA will consider the exception request any time the resident indicates that an accommodation is needed whether or not a formal written request is submitted.
Requests for a larger size unit must explain the need or justification for the larger size unit, and must include appropriate documentation. Requests based on health-related reasons must be verified by a knowledgeable professional source, unless the disability and the disability-related request for accommodation is readily apparent or otherwise known.
The PHA will notify the family of its decision within 10 business days of receiving the family’s request.
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© Copyright 2023 by Nan McKay & Associates ACOP 3/1/23
Unlimited copies may be made for internal use. Page 5-5 PART II: UNIT OFFERS
24 CFR 1.4(b)(2)(ii); 24 CFR 960.208
5-II.A. OVERVIEW
The PHA must assign eligible applicants to dwelling units in accordance with a plan that is consistent with civil rights and nondiscrimination laws.
In filling an actual or expected vacancy, the PHA must offer the dwelling unit to an applicant in the appropriate offer sequence. The PHA will offer the unit until it is accepted. This section describes the PHA’s policies with regard to the number of unit offers that will be made to applicants selected from the waiting list. This section also describes the PHA’s policies for offering units with accessibility features.
PHA Policy
The PHA will maintain a record of units offered, including location, date and circumstances of each offer, each acceptance or rejection, including the reason for the rejection.
5-II.B. NUMBER OF OFFERS
PHA Policy
The PHA has adopted a “two-to-three offer plan” for offering units to applicants. Under this plan, the PHA will determine how many locations within its jurisdiction have available units of suitable size and type in the appropriate type of project. The number of unit offers will be based on the distribution of vacancies. If a suitable unit is available in:
Three (3) or more locations: The applicant will be offered a unit in the location with the highest number of vacancies. If the offer is rejected, the applicant will be offered a suitable unit in the location with the second highest number of vacancies. If that unit is rejected, a final offer will be made in the location with the third highest number of vacancies. The offers will be made in sequence and the applicant must refuse an offer before another is made.
Two (2) locations: The applicant will be offered a suitable unit in the location with the higher number of vacancies. If the offer is rejected, a final offer will be made at the other location. The offers will be made in sequence and the applicant must refuse the first offer before a second offer is made.
One (1) location: The applicant will be offered a suitable unit in that location. If the offer is rejected, the applicant will be offered the next suitable unit that becomes available, whether it is at the same location as the first offer or at another location. The second unit offer will be the final offer, unless there is good cause for refusing the offer.
If more than one unit of the appropriate type and size is available, the first unit to be offered will be the first unit that is ready for occupancy.
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© Copyright 2023 by Nan McKay & Associates ACOP 3/1/23
Unlimited copies may be made for internal use. Page 5-6 5-II.C. TIME LIMIT FOR UNIT OFFER ACCEPTANCE OR REFUSAL PHA Policy
Applicants must accept or refuse a unit offer within 3 business days of the date of the unit offer.
Offers made by telephone will be confirmed by letter.
5-II.D. REFUSALS OF UNIT OFFERS
Good Cause for Unit Refusal
An elderly or disabled family may decline an offer for designated housing. Such a refusal must not adversely affect the family’s position on or placement on the public housing waiting list [24 CFR 945.303(d)].
PHA Policy
Applicants may refuse to accept a unit offer for “good cause.” Good cause includes situations in which an applicant is willing to move but is unable to do so at the time of the unit offer, or the applicant demonstrates that acceptance of the offer would cause undue hardship not related to considerations of the applicant’s race, color, national origin, etc. [PH Occ GB, p. 104]. Examples of good cause for refusal of a unit offer include, but are not limited to, the following:
The family demonstrates to the PHA’s satisfaction that accepting the unit offer will require an adult household member to quit a job, drop out of an educational institution or job training program, or take a child out of day care or an educational program for children with disabilities.
The family demonstrates to the PHA’s satisfaction that accepting the offer will place a family member’s life, health, or safety in jeopardy. The family should offer specific and compelling documentation such as restraining orders; other court orders; risk assessments related to witness protection from a law enforcement agency; or documentation of domestic violence, dating violence, sexual assault, stalking, or human trafficking in accordance with section 16-VII.D of this ACOP. Reasons offered must be specific to the family. Refusals due to location alone do not qualify for this good cause exemption.
A health professional verifies temporary hospitalization or recovery from illness of the principal household member, other household members (as listed on final application) or live-in aide necessary to the care of the principal household member.
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© Copyright 2023 by Nan McKay & Associates ACOP 3/1/23
Unlimited copies may be made for internal use. Page 5-7 The unit is inappropriate for the applicant’s disabilities, or the family does not need the accessible features in the unit offered and does not want to be subject to a 30-day notice to move.
The unit has lead-based paint and the family includes children under the age of six.
In the case of a unit refusal for good cause the applicant will not be removed from the waiting list as described later in this section. The applicant will remain at the top of the waiting list until the family receives an offer for which they do not have good cause to refuse.
The PHA will require documentation of good cause for unit refusals.
Unit Refusal without Good Cause
PHA Policy
When an applicant rejects the final unit offer without good cause, the PHA will remove the applicant’s name from the waiting list and send notice to the family of such removal.
The notice will inform the family of their right to request an informal hearing and the process for doing so (see Chapter 14).
The applicant may reapply for assistance if the waiting list is open. If the waiting list is not open, the applicant must wait to reapply until the PHA opens the waiting list.
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© Copyright 2023 by Nan McKay & Associates ACOP 3/1/23
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PHAs must adopt suitable means to assure that information regarding the availability of accessible units reaches eligible individuals with disabilities, and take reasonable nondiscriminatory steps to maximize the utilization of such units by eligible individuals whose disability requires the accessibility features of a particular unit.
When an accessible unit becomes vacant, before offering such units to a non-disabled applicant the PHA must offer such units:
• First, to a current resident of another unit of the same development, or other public housing development under the PHA’s control, who has a disability that requires the special features of the vacant unit and is occupying a unit not having such features, or if no such occupant exists, then
• Second, to an eligible qualified applicant on the waiting list having a disability that requires the special features of the vacant unit.
When offering an accessible unit to an applicant not having a disability requiring the accessibility features of the unit, the PHA may require the applicant to agree (and may incorporate this agreement in the lease) to move to a non-accessible unit when available.
PHA Policy
Families requiring an accessible unit may be over-housed in such a unit if there are no resident or applicant families of the appropriate size who also require the accessible features of the unit.
When there are no resident or applicant families requiring the accessible features of the unit, including families who would be over-housed, the PHA will offer the unit to a nondisabled applicant.
When offering an accessible unit to a non-disabled applicant, the PHA will require the applicant to agree to move to an available non-accessible unit within 30 days when either a current resident or an applicant needs the features of the unit and there is another unit available for the non-disabled family. This requirement will be a provision of the lease agreement.
5-II.F. DESIGNATED HOUSING
When applicable, the PHA’s policies for offering units designated for elderly families only or for disabled families only are described in the PHA’s Designated Housing Plan.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-1 Chapter 6
INCOME AND RENT DETERMINATIONS
[24 CFR Part 5, Subparts E and F; 24 CFR 960, Subpart C]
INTRODUCTION
A family’s annual income is used to determine their income eligibility for the public housing program and is also used to calculate the amount of the family’s rent payment. The PHA will use the policies and methods described in this chapter to ensure that only eligible families receive assistance and that no family pays more or less than its obligation under the regulations. This chapter describes HUD regulations and PHA policies related to these topics in three parts as follows:
Part I: Annual Income. HUD regulations specify the sources of income which are excluded from the family’s annual income. These requirements and PHA policies for calculating annual income are found in Part I.
Part II: Assets. HUD regulations specify the types of assets which are excluded from a family’s annual income. These requirements and PHA policies for calculating income from assets are found in Part II.
Part III: Adjusted Income. Once annual income has been established, HUD regulations require the PHA to subtract from annual income any of five mandatory deductions for which a family qualifies and allow the PHA to adopt additional permissive deductions.
These requirements and PHA policies for calculating adjusted income are found in Part III.
Part IV: Calculating Rent. This part describes the statutory formula for calculating total tenant payment (TTP), the use of utility allowances, and the methodology for determining family rent payment. Also included here are flat rents and the family’s choice of rent.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11
/30/23
Unlimited copies may be made for internal use. Page 6
-2
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-3 PART I: ANNUAL INCOME
6-I.A. OVERVIEW [24 CFR 5.609]
Annual income includes:
• All amounts, not specifically excluded in 24 CFR 5.609(b); • All amounts received from all sources by each member of the family who is 18 years of age or older or is the head of household or spouse;
• Unearned income by or on behalf of each dependent who is under 18 years of age; and • Imputed returns of an asset based on the current passbook savings rate, as determined by HUD, when the value of net family assets exceeds $50,000 (which amount HUD will adjust annually) and the actual returns from a given asset cannot be calculated.
In addition to this general definition, the regulations at 24 CFR 5.609(b) provide a comprehensive listing of all sources of income that are excluded from annual income. Note, unlike in previous version of the regulations, the current regulations governing annual income do not list sources of income that are to be included. Instead, HUD relies on the definition of excluded income under 24 CFR 5.609(b) to provide the scope of what is included. To that end, generally, all income is included unless it is specifically excluded by regulation.
Annual income includes “all amounts received,” not the amount that a family may be legally entitled to receive but did not receive. For example, a family’s child support or alimony income must be based on payments received, not the amounts to which the family is entitled by court or agency orders [Notice PIH 2023-27].
Annual income also includes all actual anticipated income from assets (provided the income is not otherwise excluded) even if the asset itself is excluded from net family assets [Notice PIH 2023-27]. 24 CFR 5.603(b)(1) describes HUD regulations for treating specific types of assets.
The full texts of those portions of the regulations are provided in exhibits at the end of this chapter as follows:
• Annual Income Full Definition (Exhibit 6-1)
• Treatment of Family Assets (Exhibit 6-2)
• The Effect of Welfare Benefit Reduction (Exhibit 6-3) Sections 6-I.B and 6-I.C discuss general requirements and methods for calculating annual income. The rest of this section describes how each source of income is treated for the purposes of determining annual income. Verification requirements for annual income are discussed in Chapter 7.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-4 6-I.B. HOUSEHOLD COMPOSITION AND INCOME
Overview
Income received by all family members must be counted unless specifically excluded by the regulations. It is the responsibility of the head of household to report changes in family composition in accordance with HUD regulations and PHA policies in Chapter 9. The rules on which sources of income are counted vary somewhat by family member. The chart below summarizes how family composition affects income determinations.
Summary of Income Included and Excluded by Person
Live-in aides Income from all sources (both earned and unearned) is excluded [24 CFR 5.609(b)(8)].
Foster child or foster adult Income from all sources (both earned and unearned) is excluded [24 CFR 5.609(b)(8)].
Head, spouse, or cohead
Other adult family members
All sources of income not specifically excluded by the
regulations are included [24 CFR 5.609(a)].
Minors Earned income of children under 18 years of age is excluded [24 CFR 5.609(b)(3)].
All sources of unearned income, except those specifically excluded by the regulations, are included.
Full-time students 18 years of
age or older (not head, spouse,
or cohead)
Earned income in excess of the dependent deduction is
excluded [24 CFR 5.609(b)(14)].
All sources of unearned income, except those specifically excluded by the regulations, are included.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-5 Temporarily Absent Family Members
The current regulations governing annual income do not specifically address temporarily absent family members. The regulations also do not define “temporarily” or “permanently” absent or specify a timeframe associated with a temporary versus a permanent absence.
PHA Policy
Unless specifically excluded by the regulations, the income of all family members approved to live in the unit will be counted, even if the family member is temporarily absent from the unit.
Generally, an individual who is or is expected to be absent from the assisted unit for 180 consecutive days or less is considered temporarily absent and continues to be considered a family member. Generally, an individual who is or is expected to be absent from the assisted unit for more than 180 consecutive days is considered permanently absent and no longer a family member. Exceptions to this general policy are discussed below.
Absent Students
PHA Policy
When someone who has been considered a family member attends school away from home, the person will continue to be considered a family member unless information becomes available to the PHA indicating that the student has established a separate household, or the family declares that the student has established a separate household.
Absences Due to Placement in Foster Care
Children temporarily absent from the home as a result of placement in foster care (as confirmed by the state child welfare agency) are considered members of the family [24 CFR 5.403].
PHA Policy
If a child has been placed in foster care, the PHA will verify with the appropriate agency whether and when the child is expected to be returned to the home. Unless the agency confirms that the child has been permanently removed from the home, the child will continue to be counted as a family member.
Absent Head, Spouse, or Cohead
PHA Policy
An employed head, spouse, or cohead absent from the unit more than 180 consecutive days due to employment will continue to be considered a family member.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-6 Family Members Confined for Medical Reasons
If a family member is confined to a nursing home or hospital on a permanent basis, PHAs may determine that that person is no longer a member of the assisted household, and the income of that person is not counted [New PH OCC GB, Income Determinations, p. 12].
PHA Policy
The PHA will request verification from a responsible medical professional and will use this determination. If the responsible medical professional cannot provide a determination, the person generally will be considered temporarily absent. The family may present evidence that the family member is confined on a permanent basis and request that the person not be considered a family member.
When an individual who has been counted as a family member is determined permanently absent, the family is eligible for the medical expense deduction only if the remaining head, spouse, or cohead qualifies as an elderly person or a person with disabilities.
Joint Custody of Children
PHA Policy
Dependents that are subject to a joint custody arrangement will be considered a member of the family if they live with the applicant or participant family 50 percent or more of the time.
When more than one applicant or assisted family (regardless of program) are claiming the same dependents as family members, the family with primary custody at the time of the initial examination or reexamination will be able to claim the dependents. If there is a dispute about which family should claim them, the PHA will make the determination based on available documents such as court orders, an IRS income tax return showing which family has claimed the child for income tax purposes, school records, or other credible documentation.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-7 Caretakers for a Child
PHA Policy
The approval of a caretaker is at the owner and PHA’s discretion and subject to the owner and PHA’s screening criteria. If neither a parent nor a designated guardian remains in a household receiving HCV assistance, the PHA will take the following actions.
If a responsible agency has determined that another adult is to be brought into the assisted unit to care for a child for an indefinite period, the designated caretaker will not be considered a family member until a determination of custody or legal guardianship is made.
If a caretaker has assumed responsibility for a child without the involvement of a responsible agency or formal assignment of custody or legal guardianship, the caretaker will be treated as a visitor for 90 days. After the 90 days has elapsed, the caretaker will be considered a family member unless information is provided that would confirm that the caretaker’s role is temporary. In such cases the PHA will extend the caretaker’s status as an eligible visitor.
At any time that custody or guardianship legally has been awarded to a caretaker, the housing choice voucher will be transferred to the caretaker.
During any period that a caretaker is considered a visitor, the income of the caretaker is not counted in annual income and the caretaker does not qualify the family for any deductions from income.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-8 6-I.C. CALCULATING ANNUAL INCOME
The methodology used for calculating income differs depending on whether income is being calculated at initial occupancy, interim reexamination, or at annual reexamination. However, income from assets is always anticipated regardless of certification type.
Anticipating Annual Income [24 CFR 5.609(c)(1)]
At initial occupancy and for an interim reexamination of family income, the PHA is required to use anticipated income (current income) for the upcoming 12-month period following the new admission or interim reexamination effective date. Policies related to verifying income are found in Chapter 7.
PHA Policy
When the PHA cannot readily anticipate income based upon current circumstances (e.g., in the case of temporary, sporadic, or variable employment, seasonal employment, unstable working hours, or suspected fraud), the PHA will review and analyze historical data for patterns of employment, paid benefits, and receipt of other income and use the results of this analysis to establish annual income.
Any time current circumstances are not used to project annual income, a clear rationale for the decision will be documented in the file. In all such cases the family may present information and documentation to the PHA to show why the historic pattern does not represent the family’s anticipated income.
In all cases, the family file will be documented with a clear record of the reason for the decision, and a clear audit trail will be left as to how the PHA annualized projected income.
Known Changes in Income
If the PHA verifies an upcoming increase or decrease in income, annual income will be projected by applying each income amount to the appropriate part of the 12-month period.
Example: An employer reports that a full-time employee who has been receiving $8/hour will begin to receive $8.25/hour in the eighth week after the effective date of the new admission or interim reexamination. In such a case the PHA would calculate annual income as follows: ($8/hour × 40 hours × 7 weeks) + ($8.25 × 40 hours × 45 weeks).
The family may present information that demonstrates that implementing a change before its effective date would create a hardship for the family. In such cases the PHA will calculate annual income using current circumstances and then, should the change in income require the PHA to conduct an interim reexamination, conduct an interim reexamination in accordance with PHA policy in Chapter 9.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-9 Calculating Annual Income at Annual Reexamination [24 CFR.609(c)(2); Notice PIH 2023-27]
At annual reexamination, PHAs must first determine the family’s income for the previous 12- month period and use this amount as the family income for annual reexaminations; however, adjustments to reflect current income must be made. Any change of income since the family’s last annual reexamination, including those that did not meet the threshold to process an interim reexamination of family income in accordance with PHA policies in Chapter 9 and HUD regulations, must be considered. If, however, there have been no changes to income, then the amount of income calculated for the previous 12-month period is the amount that will be used to determine the family’s rent. Policies related to conducting annual reexaminations are located in Chapter 9.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-10 6-I.D. EARNED INCOME
Wages and Related Compensation [24 CFR 5.609(a); Notice PIH 2023-27] The earned income of each member of the family who is 18 years of age or older, or who is the head of household or spouse/cohead regardless of age, is included in annual income. Income received as a day laborer or seasonal worker is also included in annual income, even if the source, date, or amount of the income varies [24 CFR 5.609 (b)(24)].
Earned income means income or earnings from wages, tips, salaries, other employee compensation, and net income from self-employment. Earned income does not include any pension or annuity, transfer payments (meaning payments made or income received in which no goods or services are being paid for, such as welfare, social security, and governmental subsidies for certain benefits), or any cash or in-kind benefits [24 CFR 5.100].
A day laborer is defined as an individual hired and paid one day at a time without an agreement that the individual will be hired or work again in the future [24 CFR 5.603(b)].
A seasonal worker is defined as an individual who is hired into a short-term position( e.g., for which the customary employment period for the position is six months or fewer) and the employment begins about the same time each year (such as summer or winter). Typically, the individual is hired to address seasonal demands that arise for the particular employer or industry [24 CFR 5.603(b)]. Some examples of seasonal work include employment limited to holidays or agricultural seasons. Seasonal work may include but is not limited to employment as a lifeguard, ballpark vendor, or snowplow driver [Notice PIH 2023-27].
PHA Policy
The PHA will include in annual income the full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation.
For persons who regularly receive bonuses or commissions, the PHA will verify and then average amounts received for the two years preceding admission or reexamination. If only a one-year history is available, the PHA will use the prior year amounts. In either case the family may provide, and the PHA will consider, a credible justification for not using this history to anticipate future bonuses or commissions. If a new employee has not yet received any bonuses or commissions, the PHA will count only the amount estimated by the employer. The file will be documented appropriately.
Military Pay
All regular pay, special pay and allowances of a member of the Armed Forces are counted except for the special pay to a family member serving in the Armed Forces who is exposed to hostile fire [24 CFR 5.609(b)(11)].
Earnings of a Minor [24 CFR 5.609(b)(3)]
A minor is a member of the family, other than the head of household or spouse, who is under 18 years of age. Employment income earned by minors is not included in annual income. All other sources of unearned income, except those specifically excluded by the regulations, are included.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-11 Earned Income of Full-Time Students [24 CFR 5.609(b)(14)] The earned income of a dependent full-time student in excess of the amount of the dependent deduction is excluded from annual income. All sources of unearned income, except those specifically excluded by the regulations, are included.
A family member other than the head of household or spouse/cohead is considered a full-time student if they are attending school or vocational training on a full-time basis [24 CFR 5.603(b)].
Full-time status is defined by the educational or vocational institution the student is attending [New PH OCC GB, Lease Requirements, p. 5].
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-12 6-I.E. EARNED INCOME DISALLOWANCE [24 CFR 960.255; Streamlining Final Rule (SFR) Federal Register 3/8/16; Notice PIH 2023-27]
HOTMA removed the statutory authority for the EID. The EID is available only to families that are eligible for and participating on the program as of December 31, 2023, or before; no new families may be added on or after January 1, 2024. If a family is receiving the EID prior to or on the effective date of December 31, 2023, they are entitled to the full amount of the benefit for a full 24-month period. The policies below are applicable only to such families. No family will still be receiving the EID after December 31, 2025. The EID will sunset on January 1, 2026, and the PHA policies below will no longer be applicable as of that date or when the last qualifying family exhausts their exclusion period, whichever is sooner.
Calculation of the Disallowance
Calculation of the earned income disallowance for an eligible member of a qualified family begins with a comparison of the member’s current income with their “baseline income.” The family member’s baseline income is their income immediately prior to qualifying for the EID.
The family member’s baseline income remains constant throughout the period that they are participating in the EID.
Calculation Method
Initial 12-Month Exclusion
During the initial exclusion period of 12 consecutive months, the full amount (100 percent) of any increase in income attributable to new employment or increased earnings is excluded.
PHA Policy
The initial EID exclusion period will begin on the first of the month following the date an eligible member of a qualified family is first employed or first experiences an increase in earnings.
Second 12-Month Exclusion
During the second exclusion period of 12 consecutive months, the PHA must exclude at least 50 percent of any increase in income attributable to employment or increased earnings.
PHA Policy
During the second 12-month exclusion period, the PHA will exclude 100 percent of any increase in income attributable to new employment or increased earnings.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-13 Lifetime Limitation
The EID has a two-year (24-month) lifetime maximum. The two-year eligibility period begins at the same time that the initial exclusion period begins and ends 24 months later. During the 24- month period, an individual remains eligible for EID even if they begin to receive assistance from a different housing agency, move between public housing and Section 8 assistance, or have breaks in assistance. The EID will sunset on January 1, 2026. In no circumstances will a family member’s exclusion period continue past January 1, 2026.
Individual Savings Accounts [24 CFR 960.255(d)]
The PHA may, but is not required to, establish a policy to offer a qualified family paying income-based rent an ISA instead of being given the EID.
PHA Policy
The PHA chooses not to establish a system of individual savings accounts (ISAs) for families who qualify for the EID.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-14 6-I.F. BUSINESS AND SELF-EMPLOYMENT INCOME [24 CFR 5.609(b)(28); Notice PIH 2023-27]
Annual income includes “net income from the operation of a business or profession. Net income is gross income minus business expenses that allows the business to operate. Gross income is all income amounts received into the business, prior to the deduction of business expenses.
Expenditures for business expansion or amortization of capital indebtedness may not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family.” PHA Policy
To determine business expenses that may be deducted from gross income, the PHA will use current applicable Internal Revenue Service (IRS) rules for determining allowable business expenses [see IRS Publication 535], unless a topic is addressed by HUD regulations or guidance as described herein.
Independent Contractors
Income received as an independent contractor is included in annual income, even if the source, date, or amount of the income varies [24 CFR 2.609 (b)(24)].
An independent contractor is defined as an individual who qualifies as an independent contractor instead of an employee in accordance with the Internal Revenue Code Federal income tax requirements and whose earnings are consequently subject to the Self-Employment Tax. In general, an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done [24 CFR 5.603(b)].
Business Expansion
HUD regulations do not permit the PHA to deduct from gross income expenses for business expansion.
PHA Policy
Business expansion is defined as any capital expenditures made to add new business activities, to expand current facilities, or to operate the business in additional locations.
For example, purchase of a street sweeper by a construction business for the purpose of adding street cleaning to the services offered by the business would be considered a business expansion. Similarly, the purchase of a property by a hair care business to open at a second location would be considered a business expansion.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-15 Capital Indebtedness
HUD regulations do not permit the PHA to deduct from gross income the amortization of capital indebtedness.
PHA Policy
Capital indebtedness is defined as the principal portion of the payment on a capital asset such as land, buildings, and machinery. This means the PHA will allow as a business expense interest, but not principal, paid on capital indebtedness.
Negative Business Income
If the net income from a business is negative, no business income will be included in annual income; a negative amount will not be used to offset other family income.
Withdrawal of Cash or Assets from a Business
HUD regulations require the PHA to include in annual income the withdrawal of cash or assets from the operation of a business or profession unless the withdrawal reimburses a family member for cash or assets invested in the business by the family.
PHA Policy
Acceptable investments in a business include cash loans and contributions of assets or equipment. For example, if a member of an assisted family provided an up-front loan of $2,000 to help a business get started, the PHA will not count as income any withdrawals from the business up to the amount of this loan until the loan has been repaid.
Investments do not include the value of labor contributed to the business without compensation.
Co-owned Businesses
PHA Policy
If a business is co-owned with someone outside the family, the family must document the share of the business it owns. If the family’s share of the income is lower than its share of ownership, the family must document the reasons for the difference.
Assets Owned by a Business Entity
If a business entity (e.g., limited liability company or limited partnership) owns the asset, then the family’s asset is their ownership stake in the business, not some portion of the business’s assets. However, if the family holds the assets in their own name (e.g., they own one-third of a restaurant) rather than in the name of a business entity, then the percentage value of the asset owned by the family is what is counted toward net family assets (e.g., one-third of the value of the restaurant) [Notice PIH 2023-27].
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-16 6-I.G. STUDENT FINANCIAL ASSISTANCE [24 CFR 5.609(b)(9)] The regulations distinguish between two categories of student financial assistance paid to both full-time and part-time students.
Types of Assistance
Any assistance to students under section 479B of the Higher Education Act of 1965 (Tile IV of the HEA) must be excluded from the family’s annual income [24 CFR 5.609(b)(9)(i)].
Examples of assistance under title IV of the HEA include:
• Federal Pell Grants;
• Teach Grants;
• Federal Work Study Programs;
• Federal Perkins Loans;
• Income earned in employment and training programs under section 134 of the Workforce Innovation and Opportunity Act (WIOA); or
• Bureau of Indian Affairs/Education student assistance programs - The Higher Education Tribal Grant
- The Tribally Controlled Colleges or Universities Grant Program Any other grant-in-aid, scholarship, or other assistance amounts an individual receives for the actual covered costs charged by the institute of higher education not otherwise excluded by the Federally mandated income exclusions are excluded [24 CFR 5.609(b)(9)(ii)]. Actual covered costs are defined as the actual costs of:
• Tuition, books, and supplies;
- Including supplies and equipment to support students with learning disabilities or other disabilities
• Room and board; and
• Other fees required and charged to a student by the education institution.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-17 For a student who is not the head of household or spouse/cohead, actual covered costs also include the reasonable and actual costs of housing while attending the institution of higher education and not residing in an assisted unit.
Further, to qualify, other student financial assistance must be expressly:
• For tuition, book, supplies, room and board, or other fees required and charged to the student by the education institution;
• To assist a student with the costs of higher education; or • To assist a student who is not the head of household or spouse with the reasonable and actual costs of housing while attending the educational institution and not residing in an assisted unit.
The student financial assistance may be paid directly to the student or to the educational institution on the student’s behalf. However, any student financial assistance paid to the student must be verified by the PHA.
The financial assistance must be a grant or scholarship received from:
• The Federal government;
• A state, tribal, or local government;
• A private foundation registered as a nonprofit;
• A business entity (such as corporation, general partnership, limited liability company, limited partnership, joint venture, business trust, public benefit corporation, or nonprofit entity); or • An institution of higher education.
Student financial assistance, does not include:
• Financial support provided to the student in the form of a fee for services performed (e.g., a work study or teaching fellowship that is not excluded under section 479B of the Higher Education Act HEA);
• Gifts, including gifts from family or friends; or
• Any amount of the scholarship or grant that, either by itself or in combination with assistance excluded under the HEA, exceeds the actual covered costs of the student.
Calculating Income from Student Financial Assistance [HOTMA Student Financial Assistance Resource Sheet; Notice PIH 2023-27]
The formula for calculating the amount of other student financial assistance that is excluded from income always begins with deducting the assistance received under 479B of the HEA from the total actual covered costs, because the 479B assistance is intended to pay the student’s actual covered costs. When a student receives assistance from both Title IV of the HEA and from other sources, the assistance received under Title IV of the HEA must be applied to the student’s actual covered costs first and then other student financial assistance is applied to any remaining actual covered costs. Once actual costs are covered, any remaining student financial assistance is considered income.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-18 PHA Policy
If a student only receives financial assistance under Title IV of the HEA and does not receive any other student financial assistance, the PHA will exclude the full amount of the assistance received under Title IV from the family’s annual income. The PHA will not calculate actual covered costs in this case.
If the student does not receive any assistance under Title IV of the HEA but does receive assistance from another source, the PHA will first calculate the actual covered costs to the student in accordance with 24 CFR 5.609(b)(ii). The PHA will then subtract the total amount of the student’s financial assistance from the student’s actual covered costs. The PHA will include any amount of financial assistance in excess of the student’s actual covered costs in the family’s annual income.
Example 1
• Actual covered costs: $20,000
• Other student financial assistance: $25,000
• Excluded income: $20,000 ($25,000 in financial assistance - $20,000 in actual covered costs)
• Included income: $5,000
When a student receives assistance from both Title IV of the HEA and from other sources, the PHA will first calculate the actual covered costs to the student in accordance with 24 CFR 5.609(b)(ii). The assistance received under Title IV of the HEA will be applied to the student’s actual covered costs first and then the other student financial assistance will be applied to any remaining actual covered costs.
If the amount of assistance excluded under Title IV of the HEA equals or exceeds the actual covered costs, none of the assistance included under other student financial assistance” would be excluded from income.
Example 2
• Actual covered costs: $25,000
• Title IV HEA assistance: $26,000
• Title IV HEA assistance covers the students entire actual covered costs.
• Other Student Financial Assistance: $5,000
• Excluded income: The entire Title IV HEA assistance of $26,000 • Included income: All other financial assistance of $5,000 Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-19 If the amount of assistance excluded under Title IV of the HEA is less than the actual covered costs, the PHA will exclude the amount of other student financial assistance up to the amount of the remaining actual covered costs.
Example 3
• Actual covered costs: $22,000
• Title IV HEA assistance: $15,000
• The remaining amount not covered by Title IV HEA assistance is $7,000 ($22,000 in actual covered costs - $15,000 in Title IV HEA assistance).
• Other Student Financial Assistance: $5,000
• $7,000 in remaining actual covered costs - $5,000 in other financial assistance
• Excluded income: $15,000 entire amount of the Title IV HEA Assistance + $5,000 in other financial assistance
• Included income: $0
Example 4
• Actual covered costs: $18,000
• Title IV HEA Assistance: $15,000
• The remaining amount not covered by Title IV HEA assistance is $3,000 ($18,000 in actual covered costs - $15,000 in Title IV HEA Assistance)
• Other student Financial Assistance: $5,000
• When other student financial assistance is applied, financial assistance exceeds actual covered costs by $2,000 ($3,000 in actual covered costs - $5,000 in other financial assistance).
• Included income: $2,000 (the amount by which the financial aid exceeds the student's actual covered costs).
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-20 6-I.H. PERIODIC PAYMENTS [Notice PIH 2023-27]
Periodic payments are forms of income received on a regular basis. HUD regulations specify periodic payments that are not included in annual income. Regulations do not specify which types of periodic payments are included in annual income.
Income that has a discrete end date and will not be repeated beyond the coming year is excluded from a family’s annual income because it is nonrecurring income. However, this does not include unemployment income and other types of periodic payments that are received at regular intervals (such as weekly, monthly, or yearly) for a period of greater than one year that can be extended.
For example, a family receives income from a guaranteed income program in their city that has a discrete beginning and end date. While the guaranteed income will be repeated in the coming year, it will end before the family’s next annual reexamination. This income is fully excluded from annual income.
Insurance payments and settlements for personal or property losses, including but not limited to payments under health insurance, motor vehicle insurance, and workers’ compensation, are excluded from annual income. However, periodic payments paid at regular intervals (such as weekly, monthly, or yearly) for a period of greater than one year that are received in lieu of wages for workers’ compensation are included in annual income. Payments received in lieu of wages for worker’s compensation are excluded, even if paid in periodic payments, if the income will last for a period of less than one year.
Lump-Sum Payments for the Delayed Start of a Periodic Payment [24 CFR 5.609(b)(16)] Deferred periodic amounts from Supplemental Security Income (SSI) and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs (VA) disability benefits that are received in a lump sum amount or in prospective monthly amounts are excluded from annual income.
PHA Policy
The PHA will include in annual income lump sums received as a result of delays in processing periodic payments (other than those specifically excluded by the regulation), such as unemployment or welfare assistance.
When a delayed-start payment is received that is to be included and the family and reports this during the period in which the PHA is processing an annual reexamination, the PHA will adjust the family’s rent retroactively for the period the payment was intended to cover.
If the delayed-start payment is received outside of the time the PHA is processing an annual reexamination, then the PHA will consider whether the amount meets the threshold to conduct an interim reexamination. If so, the PHA will conduct an interim in accordance with PHA policies in Chapter 9. If not, the PHA will consider the amount when processing the family’s next annual recertification.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-21 Retirement Accounts [24 CFR 5.609(b)(26); Notice PIH 2023-27] Income received from any account under a retirement plan recognized as such by the IRS, including individual retirement arrangements (IRAs), employer retirement plans, and retirement plans for self-employed individuals is not considered actual income from assets.
However, any distribution of periodic payments from such accounts is included in annual income at the time they are received by the family.
An asset moved to a retirement account held by a member of the family is not considered to be an asset disposed of for less than fair market value.
Social Security Benefits [Notice PIH 2023-27]
The PHA is required to use the gross benefit amount to calculate annual income from Social Security benefits.
Annually in October, the Social Security Administration (SSA) announces the cost-of-living adjustment (COLA) by which federal Social Security and SSI benefits are adjusted to reflect the increase, if any, in the cost of living. The federal COLA does not apply to state-paid disability benefits. Effective the day after the SSA has announced the COLA, PHAs are required to factor in the COLA when determining Social Security and SSI annual income for all annual reexaminations and interim reexaminations of family income that have not yet been completed and will be effective January 1 or later of the upcoming year [Notice PIH 2023-27]. When a family member’s benefits are garnished, levied, or withheld to pay restitution, child support, tax debt, student loan debt, or other debts, the PHA must use the gross amount of the income, prior to the reduction, to determine a family’s annual income.
PHA Policy
Annual income includes “all amounts received,” not the amount that a family may be legally entitled to receive but which they do not receive. When the SSA overpays an individual, resulting in a withholding or deduction from their benefit amount until the overpayment is paid in full, the PHA must use the reduced benefit amount after deducting only the amount of the overpayment withholding from the gross benefit amount.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-22 Alimony and Child Support
Annual income includes “all amounts received,” not the amount that a family may be legally entitled to receive but which they do not receive. For example, a family’s child-support or alimony income must be based on payments received, not the amounts to which the family is entitled by court or agency orders [Notice PIH 2023-27].
PHA Policy
The PHA will count all regular payments of alimony or child support awarded as part of a divorce or separation agreement.
The PHA will count court-awarded amounts for alimony and child support unless the family certifies and the PHA verifies that the payments are not being made.
In order to verify that payments are not being made, the PHA will review child support payments over the last three months.
If payments are being made regularly, the PHA will use the amount received during the last 12 months (excluding any lump sums received). If payments have been made for a period less than 12 months, the PHA will average all payments that have been made.
At new admission or interim recertification, if any lump sum payments were made in the past 12 months, the PHA will determine the likelihood of the family receiving another similar payment within the next 12 months before deciding whether or not this amount will be included in the calculation of annual income.
If the PHA determines and can appropriately verify that the family in all likelihood will not receive a similar payment, then the amount will not be considered when projecting annual income.
If the PHA determines that it is likely that the family will receive a similar payment and can appropriately verify it, the amount will be included when projecting annual income.
If no payments have been made in the past three months and there are no lump sums, the PHA will not include alimony or child support in annual income Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-23 6-I.I. NONRECURRING INCOME [24 CFR 5.609(b)(24) and Notice PIH 2023-27] Nonrecurring income, which is income that will not be repeated beyond the coming year (e.g., 12 months following the effective date of the certification) based on information provided by the family, is excluded from annual income. The PHA may accept a self-certification from the family stating that the income will not be repeated in the coming year. See Chapter 7 for PHA policies related to verification of nonrecurring income.
Income received as an independent contractor, day laborer, or seasonal worker is not excluded from income as nonrecurring income, even if the source, date, or amount of the income varies.
Income that has a discrete end date and will not be repeated beyond the coming year during the family’s upcoming annual reexamination period will be excluded from a family’s annual income as nonrecurring income. This exclusion does not include unemployment income and other types of periodic payments that are received at regular intervals (such as weekly, monthly, or yearly) for a period of greater than one year that can be extended.
Income amounts excluded under this category may include, but are not limited to:
• Nonrecurring payments made to the family or to a third party on behalf of the family to assist with utilities;
• Payments for eviction prevention;
• Security deposits to secure housing;
• Payments for participation in research studies (depending on the duration); and • General one-time payments received by or on behalf of the family.
Nonrecurring income that is excluded under the regulations includes:
• Payments from the U.S. Census Bureau for employment (relating to decennial census or the American Community Survey) lasting no longer than 180 days and not culminating in permanent employment [24 CFR 5.609(b)(24)(i)].
• Direct federal or state payments intended for economic stimulus or recovery [24 CFR
5.609(b)(24)(ii)].
• Amounts directly received by the family as a result of state refundable tax credits or state or federal tax refunds at the time they are received [24 CFR 5.609(b)(24)(iii) and (iv)]. • Gifts for holidays, birthdays, or other significant life events or milestones (e.g., wedding gifts, baby showers, anniversaries) [24 CFR 5.609(b)(24)(v)]. • Non-monetary, in-kind donations, such as food, clothing, or toiletries, received from a food bank or similar organization [24 CFR 5.609(b)(24)(vi)]. When calculating annual income, PHAs are prohibited from assigning monetary value to non-monetary in-kind donations received by the family [Notice PIH 2023-27]. Non-recurring, non-monetary in-kind donations from friends and family are excluded as non-recurring income. • Lump-sum additions to net family assets, including but not limited to lottery or other contest winnings [24 CFR 5.609(b)(24)(vii)].
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-24 6-I.J. WELFARE ASSISTANCE
Overview
Welfare assistance is counted in annual income. Welfare assistance includes Temporary Assistance for Needy Families (TANF) and any payments to individuals or families based on need that are made under programs funded separately or jointly by federal, state, or local governments.
Sanctions Resulting in the Reduction of Welfare Benefits [24 CFR 5.615] The PHA must make a special calculation of annual income when the welfare agency imposes certain sanctions on certain families. The full text of the regulation at 24 CFR 5.615 is provided as Exhibit 6-3. The requirements are summarized below. This rule applies only if a family was receiving HCV assistance at the time the sanction was imposed.
Covered Families
The families covered by 24 CFR 5.615 are those “who receive welfare assistance or other public assistance benefits (‘welfare benefits’) from a State or other public agency (’welfare agency’) under a program for which Federal, State or local law requires that a member of the family must participate in an economic self-sufficiency program as a condition for such assistance” [24 CFR
5.615(b)]
Imputed Income
When a welfare agency imposes a sanction that reduces a family’s welfare income because the family commits fraud or fails to comply with the agency’s economic self-sufficiency program or work activities requirement, the PHA must include in annual income “imputed” welfare income.
The PHA must request that the welfare agency provide the reason for the reduction of benefits and the amount of the reduction of benefits. The imputed welfare income is the amount that the benefits were reduced as a result of the sanction.
This requirement does not apply to reductions in welfare benefits: (1) at the expiration of the lifetime or other time limit on the payment of welfare benefits, (2) if a family member is unable to find employment even though the family member has complied with the welfare agency economic self-sufficiency or work activities requirements, or (3) because a family member has not complied with other welfare agency requirements [24 CFR 5.615(b)(2)].
Offsets
The amount of the imputed welfare income is offset by the amount of additional income the family begins to receive after the sanction is imposed. When the additional income equals or exceeds the imputed welfare income, the imputed income is reduced to zero [24 CFR
5.615(c)(4)].
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-25 6-I.K. STATE PAYMENTS TO ALLOW INDIVIDUALS WITH DISABILITIES TO LIVE AT HOME [24 CFR 5.609(b)(19)]
Payments made by or authorized by a state Medicaid agency (including through a managed care entity) or other state or federal agency to an assisted family to enable a member of the assisted family who has a disability to reside in the family’s assisted unit are excluded.
Authorized payments may include payments to a member of the assisted family through state Medicaid-managed care systems, other state agencies, federal agencies or other authorized entities.
The payments must be received for caregiving services a family member provides to enable another member of the assisted family who has a disability to reside in the family’s assisted unit.
Payments to a family member for caregiving services for someone who is not a member of the assisted family (such as for a relative that resides elsewhere) are not excluded from income.
Furthermore, if the agency is making payments for caregiving services to the family member for an assisted family member and for a person outside of the assisted family, only the payments attributable to the caregiving services for the caregiver’s assisted family member would be excluded from income.
6-I.L. CIVIL RIGHTS SETTLEMENTS [24 CFR 5.609(b)(25); FR Notice 2/14/23] Regardless of how the settlement or judgment is structured, civil rights settlements or judgments, including settlements or judgments for back pay, are excluded from annual income. This may include amounts received because of litigation or other actions, such as conciliation agreements, voluntary compliance agreements, consent orders, other forms of settlement agreements, or administrative or judicial orders under the Fair Housing Act, Title VI of the Civil Rights Act, Section 504 of the Rehabilitation Act (Section 504), the Americans with Disabilities Act, or any other civil rights or fair housing statute or requirement.
While these civil rights settlement or judgment amounts are excluded from income, the settlement or judgment amounts will generally be counted toward the family’s net family assets (e.g., if the funds are deposited into the family’s savings account or a revocable trust under the control of the family or some other asset that is not excluded from the definition of net family assets). Income generated on the settlement or judgment amount after it has become a net family asset is not excluded from income. For example, if the family received a settlement or back pay and deposited the money in an interest-bearing savings account, the interest from that account would be income at the time the interest is received.
Furthermore, if a civil rights settlement or judgment increases the family’s net family assets such that they exceed $50,000 (as annually adjusted by an inflationary factor), then income will be imputed on the net family assets pursuant to 24 CFR 5.609(a)(2). If the imputed income, which HUD considers unearned income, increases the family’s annual adjusted income by 10 percent or more, then an interim reexamination of income will be required unless the addition to the family’s net family assets occurs within the last three months of the family’s income certification period and the PHA or owner chooses not to conduct the examination.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-26 6-I.M. ADDITIONAL EXCLUSIONS FROM ANNUAL INCOME [24 CFR 5.609(b)] Other exclusions contained in 24 CFR 5.609(b) that have not been discussed earlier in this chapter include the following:
• Payments received for the care of foster children or foster adults or state or tribal kinship or guardianship care payments [24 CFR 5.609(b)(4)].
• Insurance payments and settlements for personal or property losses, including but not limited to payments through health insurance, motor vehicle insurance, and workers’ compensation [24 CFR 5.609(b)(5)]. However, periodic payments paid at regular intervals (such as weekly, monthly, or yearly) for a period of greater than one year that are received in lieu of wages for workers’ compensation are included in annual income [Notice PIH 2023-27]. • Amounts received by the family that are specifically for, or in reimbursement of, the cost of health and medical care expenses for any family member [24 CFR 5.609(b)(6)]. • Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a family member arising out of law, that resulted in a member of the family becoming disabled [24 CFR 5.609(b)(7)]. • Income and distributions from any Coverdell education savings account under Section 530 of the Internal Revenue Code of 1986 or any qualified tuition program under Section 529 of such Code [24 CFR 5.609(b)(10)].
• Income earned by government contributions to, and distributions from, “baby bond” accounts created, authorized, or funded by federal, state, or local government [24 CFR 5.609(b)(10)]. • The special pay to a family member serving in the Armed Forces who is exposed to hostile fire [24 CFR 5.609(b)(11)].
• Payments related to aid and attendance under 38 U.S.C. 1521 to veterans in need of regular aid and attendance [24 CFR 5.609(b)(17)]. This income exclusion applies only to veterans in need of regular aid and attendance and not to other beneficiaries of the payments, such as a surviving spouse [Notice PIH 2023-27].
• Loan proceeds (the net amount disbursed by a lender to or on behalf of a borrower, under the terms of a loan agreement) received by the family or a third party (e.g., proceeds received by the family from a private loan to enable attendance at an educational institution or to finance the purchase of a car) [24 CFR 5.609(b)(20)]. The loan borrower or co-borrower must be a member of the family for this income exclusion to be applicable [Notice PIH 2023-27].
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-27 • Payments received by tribal members as a result of claims relating to the mismanagement of assets held in trust by the United States, to the extent such payments are also excluded from gross income under the Internal Revenue Code or other federal law [24 CFR 5.609(b)(21)].
Generally, payments received by tribal members in excess of the first $2,000 of per capita shares are included in a family’s annual income for purposes of determining eligibility.
However, as explained in Notice PIH 2023-27, payments made under the Cobell Settlement, and certain per capita payments under the recent Tribal Trust Settlements, must be excluded from annual income in HUD programs that adopt the definitions of annual income in 24 CFR 5.609, the Census Long Form, and the IRS Form 1040, including the programs affected by Notice PIH 2023-27.
• Replacement housing “gap” payments made in accordance with 49 CFR Part 24 that offset increased out of pocket costs of displaced persons that move from one federally subsidized housing unit to another federally subsidized housing unit. Such replacement housing “gap” payments are not excluded from annual income if the increased cost of rent and utilities is subsequently reduced or eliminated, and the displaced person retains or continues to receive the replacement housing “gap” payments [24 CFR 5.609(b)(23)]. • Income earned on amounts placed in a family’s Family Self-Sufficiency account [24 CFR 5.609(b)(27)].
• Amounts received by participants in other publicly assisted programs which are specifically for or in reimbursement of out-of-pocket expenses incurred e.g., special equipment, clothing, transportation, child care, etc.) and which are made solely to allow participation in a specific program [24 CFR 5.609(c)(12)(ii)].
• Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS) [(24 CFR 5.609(b)(12)(i)]. • Amounts received under a resident service stipend not to exceed $200 per month. A resident service stipend is a modest amount received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development [24 CFR 5.600(b)(12)(iii)].
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-28 • Incremental earnings and benefits to any family member resulting from participation in qualifying training program funded by HUD or in qualifying federal, state, tribal, or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff are excluded from annual income. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives and are excluded only for the period during which the family member participates in the training program unless those amounts are excluded under 24 CFR 5.609(b)(9)(i) [24 CFR 5.609(b)(12)(iv)].
PHA Policy
The PHA defines training program as “a learning process with goals and objectives, generally having a variety of components, and taking place in a series of sessions over a period of time. It is designed to lead to a higher level of proficiency, and it enhances the individual’s ability to obtain employment. It may have performance standards to measure proficiency. Training may include but is not limited to: (1) classroom training in a specific occupational skill, (2) on-the-job training with wages subsidized by the program, or (3) basic education” [expired Notice PIH 98-2, p. 3].
The PHA defines incremental earnings and benefits as the difference between (1) the total amount of welfare assistance and earnings of a family member prior to enrollment in a training program and (2) the total amount of welfare assistance and earnings of the family member after enrollment in the program [expired Notice PIH 98-2, pp. 3-4].
In calculating the incremental difference, the PHA will use as the pre-enrollment income the total annualized amount of the family member’s welfare assistance and earnings reported on the family’s most recently completed HUD-50058.
End of participation in a training program must be reported in accordance with the PHA’s interim reporting requirements (see Chapter 11).
• Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era [24 CFR 5.609(b)(13)]. • Adoption assistance payments for a child in excess of the amount of the dependent deduction per adopted child [24 CFR 5.609(b)(15)].
• Refunds or rebates on property taxes paid on the dwelling unit [24 CFR 5.609(b)(20)].
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-29 • Amounts that HUD is required by federal statute to exclude from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in 24 CFR 5.609(b) apply. HUD will publish a notice in the Federal Register to identify the benefits that qualify for this exclusion. Updates will be published when necessary [24 CFR 5.609(b)(22)].
HUD publishes an updated list of these exclusions periodically. The most recent list of exclusions was published in the Federal Register on May 20, 2014. It includes:
(a) The value of the allotment provided to an eligible household under the Food Stamp Act of 1977 (7 U.S.C. 2017 (b))
(b) Benefits under Section 1780 of the School Lunch Act and Child Nutrition Act of 1966, including WIC
(c) Payments to volunteers under the Domestic Volunteer Services Act of 1973 (42 U.S.C. 5044(g), 5058)
(d) Payments received under the Alaska Native Claims Settlement Act (43 U.S.C. 1626(c)) (e) Income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes (25 U.S.C. 459e)
(f) Payments or allowances made under the Department of Health and Human Services’ Low-Income Home Energy Assistance Program (42 U.S.C. 8624(f)) (g) Payments received under programs funded in whole or in part under the Workforce Investment Act of 1998 (29 U.S.C. 2931)
(h) Deferred disability benefits from the Department of Veterans Affairs, whether received as a lump sum or in monthly prospective amounts
(i) Income derived from the disposition of funds to the Grand River Band of Ottawa Indians (Pub. L. 94-540, 90 Stat. 2503-04)
(j) Payments, funds, or distributions authorized, established, or directed by the Seneca Nation Settlement Act of 1990 (25 U.S.C. 1774f(b))
(k) A lump sum or periodic payment received by an individual Indian pursuant to the Class Action Settlement Agreement in the United States District Court case entitled Elouise Cobell et al. v. Ken Salazar et al., for a period of one year from the time of receipt of that payment as provided in the Claims Resolution Act of 2010 (l) The first $2,000 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the U. S. Claims Court, the interests of individual Indians in trust or restricted lands, including the first $2,000 per year of income received by individual Indians from funds derived from interests held in such trust or restricted lands (25 U.S.C. 1407-1408)
(m) Benefits under the Indian Veterans Housing Opportunity Act of 2010 (only applies to Native American housing programs)
(n) Payments received from programs funded under Title V of the Older Americans Act of 1985 (42 U.S.C. 3056(f))
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-30 (o) Payments received on or after January 1, 1989, from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in In Re Agent Orange product liability litigation, M.D.L. No. 381 (E.D.N.Y.)
(p) Payments received under 38 U.S.C. 1833(c) to children of Vietnam veterans born with spinal bifida, children of women Vietnam veterans born with certain birth defects, and children of certain Korean service veterans born with spinal bifida (q) Payments received under the Maine Indian Claims Settlement Act of 1980 (25 U.S.C. 1721)
(r) The value of any child care provided or arranged (or any amount received as payment for such care or reimbursement for costs incurred for such care) under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858q) (s) Earned income tax credit (EITC) refund payments received on or after January 1, 1991 (26 U.S.C. 32(j))
(t) Payments by the Indian Claims Commission to the Confederated Tribes and Bands of Yakima Indian Nation or the Apache Tribe of Mescalero Reservation (Pub. L. 95-433) (u) Amounts of scholarships funded under Title IV of the Higher Education Act of 1965j, including awards under federal work-study programs or under the Bureau of Indian Affairs student assistance programs (20 U.S.C. 1087uu). For Section 8 programs, the exception found in § 237 of Public Law 109–249 applies and requires that the amount of financial assistance in excess of tuition and mandatory fees shall be considered income in accordance with the provisions codified at 24 CFR 5.609(b)(9), except for those persons with disabilities as defined by 42 U.S.C. 1437a(b)(3)(E) (Pub. L. 109–249) (See Section 6-I.L. for exceptions.)
(v) Allowances, earnings and payments to AmeriCorps participants under the National and Community Service Act of 1990 (42 U.S.C. 12637(d))
(w) Any amount of crime victim compensation (under the Victims of Crime Act) received through crime victim assistance (or payment or reimbursement of the cost of such assistance) as determined under the Victims of Crime Act because of the commission of a crime against the applicant under the Victims of Crime Act (42 U.S.C. 10602) (x) Any amounts in an "individual development account" as provided by the Assets for Independence Act, as amended in 2002
(y) Payments made from the proceeds of Indian tribal trust cases as described in Notice PIH 2013–30, "Exclusion from Income of Payments under Recent Tribal Trust Settlements" (25 U.S.C. 117b(a))
(z) Major disaster and emergency assistance received under the Robert T. Stafford Disaster Relief and Emergency Assistance Act and comparable disaster assistance provided by states, local governments, and disaster assistance organizations (aa) Distributions from an ABLE account, and actual or imputed interest on the ABLE account balance [See also Notice PIH 2019-09]
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-31 PART II: ASSETS
6-II.A. OVERVIEW
Annual income includes all actual anticipated income from assets (unless otherwise excluded by the regulations) even if the asset itself is excluded from net family assets [Notice PIH 2023-27].
The regulation at 24 CFR 5.603(b)(3) provides a list of items that are excluded from the calculation of net family assets. Note, unlike previous versions of the regulations, the current regulations do not list types of assets that are included in annual income. Instead, HUD relies on the definition of items excluded from assets to provide the scope of what is included. Exhibit 6-2 provides the regulatory definition of net family assets.
Optional policies for family self-certification of assets are found in Chapter 7. Policies related to the asset limitation may be found in Chapter 3.
Income from assets is always anticipated, irrespective of the income examination type.
PHA Policy
The PHA generally will use current circumstances to determine both the value of an asset and the anticipated income from the asset. The PHA will use other than current circumstances to anticipate income when (1) an imminent change in circumstances is expected, (2) it is not feasible to anticipate a level of income over 12 months, or (3) the PHA believes that past income is the best indicator of anticipated income. For example, if a family member owns real property that typically receives rental income, but the property is currently vacant, the PHA can take into consideration past rental income along with the prospects of obtaining a new tenant.
Any time current circumstances are not used to determine asset income, a clear rationale for the decision will be documented in the file. In such cases, the family may present information and documentation to the PHA to show why the asset income determination does not represent the family’s anticipated asset income.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-32 6-II.B. ASSETS DISPOSED OF FOR LESS THAN FAIR MARKET VALUE [24 CFR 5.603(b)(2)]
PHAs must include the value of any business or family assets disposed of by an applicant or participant for less than fair market value (including a disposition in trust, but not in a foreclosure or bankruptcy sale) during the two years preceding the date of application or reexamination, as applicable, in excess of the consideration received for the asset.
An asset moved to a retirement account held by a member of the family is not considered to be an asset disposed of for less than fair market value. [Notice PIH 2023-27].
Minimum Threshold
HUD does not specify a minimum threshold for counting assets disposed of for less than fair market value. A PHA may establish a policy to ignore small amounts such as charitable contributions [New PH OCC GB, Income Determinations, p. 24].
PHA Policy
The PHA will not include the value of assets disposed of for less than fair market value unless the cumulative fair market value of all assets disposed of during the past two years exceeds the gross amount received for the assets by more than $1,000.
Separation or Divorce
The regulation also specifies that assets are not considered disposed of for less than fair market value if they are disposed of as part of a separation or divorce settlement and the applicant or tenant receives important consideration not measurable in dollar terms.
PHA Policy
All assets disposed of as part of a separation or divorce settlement will be considered assets for which important consideration not measurable in monetary terms has been received. In order to qualify for this exemption, a family member must be subject to a formal separation or divorce settlement agreement established through arbitration, mediation, or court order.
Foreclosure or Bankruptcy
Assets are not considered disposed of for less than fair market value when the disposition is the result of a foreclosure or bankruptcy sale. Negative equity in real property or other investments does not prohibit the owner from selling the property or other investments, so negative equity alone would not justify excluding the property or other investments from family assets.
Asset Owned by a Business Entity
If a business entity (e.g., limited liability company or limited partnership) owns the asset, then the family’s asset is their ownership stake in the business, not some portion of the business’s assets. However, if the family holds the assets in their own name (e.g., they own one third of a restaurant) rather than in the name of a business entity, then the percentage value of the asset owned by the family is what is counted toward net family assets (e.g., one-third of the value of the restaurant) [Notice PIH 2023-27].
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-33 Family Declaration
PHA Policy
Families must sign a declaration form at initial certification and each annual recertification identifying all assets that have been disposed of for less than fair market value or declaring that no assets have been disposed of for less than fair market value.
The PHA may verify the value of the assets disposed of if other information available to the PHA does not appear to agree with the information reported by the family.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-34 6-II.C. ASSET INCLUSIONS AND EXCLUSIONS
Checking and Savings Accounts [Notice PIH 2023-27]
HUD considers bank accounts as non-necessary items of personal property. Whether or not non-necessary personal property is counted toward net family assets depends on the combined value of all of the family’s assets.
• When the combined value of net family assets is greater than $50,000, as adjusted by inflation, checking and/or savings accounts would be counted toward net family assets. • When the combined value of all non-necessary personal property does not exceed $50,000, as adjusted by inflation, all non-necessary personal property is excluded from net family assets. In this case, the value of the family’s checking and/or savings accounts would not be considered when calculating net family assets.
However, actual income from checking and savings accounts is always included in a family’s annual income, regardless of the total value of net family assets or whether the asset itself is included or excluded from net family assets, unless that income is specifically excluded.
ABLE Accounts [24 CFR 5.609(b)(10); Notice PIH 2019-09] An Achieving a Better Life Experience (ABLE) account is a type of tax-advantaged savings account that an eligible individual can use to pay for qualified disability expenses. Section 103 of the ABLE Act mandates that an individual’s ABLE account (specifically, its account balance, contributions to the account, and distributions from the account) is excluded when determining the designated beneficiary’s eligibility and continued occupancy under certain federal meanstested programs. The PHA must exclude the entire value of the individual’s ABLE account from the household’s assets. Distributions from the ABLE account are also not considered income.
However, all wage income received, regardless of which account the money is paid to, is included as income.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-35 Investment Accounts Such as Stocks, Bonds, Saving Certificates, and Money Market Funds [24 CFR 5.603(b)(1)]
HUD considers financial investments such as stocks and bonds non-necessary items of personal property. Whether non-necessary personal property is counted toward net family assets depends on the combined value of all of the family’s assets.
• When the combined value of net family assets is greater than $50,000, as adjusted by inflation, financial investments such as stocks and bonds are considered part of net family assets. In this case, the value of the family’s financial investments such as stocks and bonds would be counted toward net family assets.
• When the combined value of all non-necessary personal property does not exceed $50,000, as adjusted by inflation, all non-necessary personal property is excluded from net family assets. In this case, the value of the family’s financial investments such as stocks and bonds would not be considered when calculating net family assets.
However, actual income from financial accounts is always included in a family’s annual income, regardless of the total value of net family assets or whether the asset itself is included or excluded from net family assets, unless that income is specifically excluded. When a stock issues dividends in some years but not others (e.g., due to market performance), the dividend is counted as the actual return when it is issued, but when no dividend is issued, the actual return is $0.
When the stock never issues dividends, the actual return is $0.
PHA Policy
The PHA will include interest or dividends earned by investment accounts as actual income from assets even when the earnings are reinvested.
The cash value of such an asset is determined by deducting from the market value any broker fees, penalties for early withdrawal, or other costs of converting the asset to cash.
In determining the market value of an investment account, the PHA will use the value of the account on the most recent investment report.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-36 Necessary and Non-Necessary Personal Property [24 CFR 5.603(b)(3)(i)] All assets are categorized as either real property (e.g., land, a home) or personal property.
Personal property includes tangible items, like boats, as well as intangible items, like bank accounts.
The value of necessary items of personal property is excluded from the calculation of net family assets. Necessary items of personal property include a car used for commuting or medical devices.
HUD defines necessary personal property as items essential to the family for the maintenance, use, and occupancy of the premises as a home; or they are necessary for employment, education, or health and wellness. Necessary personal property includes more than merely items that are indispensable to the bare existence of the family. It may include personal effects (such as items that are ordinarily worn or utilized by the individual), items that are convenient or useful to a reasonable existence, and items that support and facilitate daily life within the family’s home.
Necessary personal property also includes items that assist a household member with a disability, including any items related to disability-related needs, or that may be required for a reasonable accommodation for a person with a disability. Necessary personal property does not include bank accounts, other financial investments, or luxury items. Items of personal property that do not qualify as necessary personal property are classified as non-necessary personal property.
The combined value of all non-necessary items of personal property is only included in annual income when the combined total value exceeds $50,000 (adjusted annually). When the combined value of all non-necessary personal property does not exceed $50,000, as adjusted by inflation, all non-necessary personal property is excluded from net family assets.
While not an exhaustive list, the following table from Notice PIH 2023-27 provides examples of necessary and non-necessary personal property.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-37 Necessary Personal Property Non-Necessary Personal Property Car(s)/vehicle(s) that a family relies on for
transportation for personal or business use
(e.g., bike, motorcycle, skateboard, scooter)
Furniture, carpets, linens, kitchenware
Common appliances
Common electronics (e.g., radio, television,
DVD player, gaming system)
Clothing
Personal effects that are not luxury items (e.g.,
toys, books)
Wedding and engagement rings
Jewelry used in religious/cultural celebrations
and ceremonies
Religious and cultural items
Medical equipment and supplies
Health care–related supplies
Musical instruments used by the family
Personal computers, phones, tablets, and
related equipment
Professional tools of trade of the family, for
example professional books
Educational materials and equipment used by
the family, including equipment to
accommodate persons with disabilities
Equipment used for exercising (e.g., treadmill,
stationary bike, kayak, paddleboard, ski
equipment)
Recreational car/vehicle not needed for day-today transportation for personal or business use (campers, motorhomes, traveling trailers, allterrain vehicles (ATVs)) Bank accounts or other financial investments
(e.g., checking account, savings account,
stocks/bonds)
Recreational boat/watercraft
Expensive jewelry without religious or cultural
value, or which does not hold family
significance
Collectibles (e.g., coins/stamps)
Equipment/machinery that is not used to
generate income for a business
Items such as gems/precious metals, antique
cars, artwork, etc.
PHA Policy
In determining the value of non-necessary personal property, the PHA will use the family’s estimate of the value. The PHA may obtain an appraisal if there is reason to believe that the family’s estimated value is off by $50 or more. The family must cooperate with the appraiser but cannot be charged any costs related to the appraisal.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-38 Lump-Sum Additions to Net Family Assets [24 CFR 5.609(b)(24(viii); Notice PIH 2023-27] The regulations exclude income from lump-sum additions to family assets, including lottery or other contest winnings as a type of nonrecurring income.
In addition, lump sums from insurance payments, settlements for personal or property losses, and recoveries from civil actions or settlements based on claims of malpractice, negligence, or other breach of duty owed to a family member arising out of law that resulted in a member of the family becoming a family member with a disability are excluded from income.
Further, deferred periodic amounts from Supplemental Security Income (SSI) and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly amounts are also excluded from income.
However, these amounts may count toward net family assets. The PHA must consider any actual or imputed returns from assets as income at the next applicable income examination. In the case where the lump sum addition to assets would lead to imputed income, which is unearned income, that increases the family’s annual adjusted income by 10 percent or more, then the addition of the lump sum to the family’s assets will trigger an immediate interim reexamination of income in accordance with Chapter 9. This reexamination of income must take place as soon as the lump sum is added to the family’s net family assets unless the addition takes place in the last three months of family’s income certification period and the PHA chooses not to conduct the examination.
For a discussion of lump-sum payments that represent the delayed start of a periodic payment, most of which are counted as income, see sections 6-I.H and 6-I.I.
PHA Policy
Any lump-sum receipts are only counted as assets if they are retained by a family in a form recognizable as an asset. [RHIIP FAQs]. For example, if the family receives a $1,000 lump sum for lottery winnings, and the family immediately spends the entire amount, the lump sum will not be counted toward net family assets.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-39 Jointly Owned Assets [Notice PIH 2023-27]
For assets owned jointly by the family and one or more individuals outside of the assisted family, the PHA must include the total value of the asset in the calculation of net family assets, unless:
• The asset is otherwise excluded;
• The family can demonstrate that the asset is inaccessible to them; or • The family cannot dispose of any portion of the asset without the consent of another owner who refuses to comply.
If the family demonstrates that they can only access a portion of an asset, then only that portion’s value is included in the calculation of net family assets for the family.
Any income from a jointly owned asset must be included in annual income, unless:
• The income is specifically excluded;
• The family demonstrates that they do not have access to the income from that asset; or • The family only has access to a portion of the income from that asset.
PHA Policy
If the family demonstrates that they can only access a portion of the income from an asset, then only that portion’s value is included in the calculation of income from assets.
If an individual is a beneficiary who is entitled to access the account’s funds only upon the death of the account’s owner, and may not otherwise withdraw funds from an account, then the account is not an asset to the assisted family, and the family should provide proper documentation demonstrating that they are only a beneficiary on the account.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-40 Trusts [24 CFR 5.609(b)(2) and 5.603(b)(4)]
A trust is a legal arrangement generally regulated by state law in which one party (the creator or grantor) transfers property to a second party (the trustee) who holds the property for the benefit of one or more third parties (the beneficiaries).
The following types of trust distributions are excluded from annual income:
• Distributions of the principal or corpus of the trust; and • Distributions of income from the trust when the distributions are used to pay the costs of health and medical care expenses for a minor.
The basis for determining how to treat trusts relies on information about who has access to either the principal in the account or the income from the account. There are two types of trusts, revocable and irrevocable.
When the creator sets up an irrevocable trust, the creator has no access to the funds in the account. Irrevocable trusts not under the control of any member of the family or household are not assets. Typically, special needs trusts are considered irrevocable. The value of the trust is not included in net family assets, so long as the fund continues to be held in a trust that is not revocable by, or under the control of, any member of the family or household [24 CFR
5.603(b)(4)]. Where an irrevocable trust is excluded from net family assets, the PHA must not consider actual income earned by the trust (e.g., interest earned, rental income if property is held in the trust) for so long as the income from the trust is not distributed. If the value of the trust is not considered part of the family’s net assets, then distributions from the trust are treated as follows:
• All distributions from the trust’s principal are excluded from income. • Distributions of income earned by the trust (i.e., interest, dividends, realized gains, or other earnings on the trust’s principal), are included as income unless the distribution is used to pay for the health and medical expenses for a minor.
A revocable trust is a trust that the creator of the trust may amend or end (revoke). When there is a revocable trust, the creator has access to the funds in the trust account.
The value of revocable trusts that are not under the control of the family are excluded from net family assets. This happens when a member of the assisted family is the beneficiary of a revocable trust, but the grantor is not a member of the assisted family. In this case the beneficiary does not “own” the revocable trust, and the value of the trust is excluded from net family assets.
For the revocable trust to be considered excluded from net family assets, no family or household member may be the account’s trustee. If this is the case, then distributions from the trust are treated as follows:
• All distributions from the trust’s principal are excluded from income. • Distributions of income earned by the trust (i.e., interest, dividends, realized gains, or other earnings on the trust’s principal), are included as income unless the distribution is used to pay for the health and medical expenses for a minor.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-41 Revocable trusts under the control of the family or household (e.g., the grantor is a member of the assisted family or household) are considered assets and must be included in net family assets.
If the value of the trust is considered part of the family’s net assets, then distributions from the trust are not considered income to the family. The PHA must count all actual returns (e.g., interest earned) from the trust as income or, if the trust has no actual returns (e.g., if the trust is comprised of farmland that is not in use) and the total value of the combined net family assets exceeds $50,000 (as that amount is updated for inflation), as imputed returns, as applicable.
Life Insurance [FR Notice 2/14/23 and Notice PIH 2023-27] Net family assets do not include the value of term life insurance, which has no cash value to the individual before death.
The cash value of a life insurance policy available to a family member before death, such as a whole life or universal life policy, is included in the calculation of the value of the family’s assets. The cash value is the surrender value. While the cash value of an insurance policy is considered an asset, the face value of any policy is not. If such a policy earns dividends or interest that the family could elect to receive, the amount of dividends or interest is counted as income from the asset whether or not the family actually receives it.
Tax Refunds [24 CFR 5.603(b)(3)(xi) and Notice PIH 2023-27] All amounts received by a family in the form of federal tax refunds or refundable tax credits are excluded from a family’s net family assets for a period of 12 months after receipt by the family.
At the time of an annual or interim reexamination of income, if the federal tax refund was received during the 12 months preceding the effective date of the reexamination, then the amount of the refund that was received by the family is subtracted from the total value of the account in which the federal tax refund or refundable tax credits were deposited. When the subtraction results in a negative number, then the balance of the asset is considered $0.
If the tax refund or refundable tax credit is deposited into another excluded asset, such as a retirement account or a Coverdell Education Savings Account, then the deposit will have no effect on the balance of the asset (i.e., there is no need for the PHA to subtract the amount of the deposit from the value of the excluded asset).
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-42 Asset Exclusions [24 CFR 5.603(b)]
The following are excluded from the calculations of net family assets:
• The value of any account under a retirement plan recognized as such by the IRS, including individual retirement arrangements (IRAs), employer retirement plans, and retirement plans for self-employed individuals [24 CFR 5.603(b)(3)(iii)]. • The value of real property that the family does not have the effective legal authority to sell in the jurisdiction in which the property is located [24 CFR 5.603(b)(3)(iv)]. - Real property as used in this part has the same meaning as that provided under the law of the state in which the property is located [24 CFR 5.100]. - Examples of this include but are not limited to co-ownership situations (including situations where one owner is a victim of domestic violence), where one party cannot unilaterally sell the real property; property that is tied up in litigation; and inherited property in dispute [Notice PIH 2023-27].
• Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a family member arising out of law, that resulted in a family member being a person with a disability [24 CFR 5.603(b)(3)(v)]; • The value of any Coverdell education savings account under section 530 of the Internal Revenue Code of 1986 [24 CFR 5.603(b)(3)(vi)];
• The value of any qualified tuition program under Section 529 of such Code [24 CFR
5.603(b)(3)(vi)];
• The value of any “baby bond” account created, authorized, or funded by federal, state, or local government [24 CFR 5.603(b)(3)(vi)];
• Interests in Indian trust land [24 CFR 5.603(b)(3)(vii)]; • Equity in a manufactured home where the family receives assistance under 24 CFR part 982 [24 CFR 5.603(b)(3)(viii)];
• Equity in property under the Homeownership Option for which a family receives assistance under 24 CFR part 982 [24 CFR 5.603(b)(3)(ix)];
• Family Self-Sufficiency accounts [24 CFR 5.603(b)(3)(x)]; • Federal tax refunds or refundable tax credits for a period of 12 months after receipt by the family [24 CFR 5.603(b)(3)(xi)].
• The full amount of assets held in an irrevocable trust [Notice PIH 2023-27]; and • The full amount of assets held in a revocable trust where a member of the family is the beneficiary, but the grantor/owner and trustee of the trust is not a member of the participant family or household [Notice PIH 2023-27].
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-43 6-II.D. DETERMINING INCOME FROM ASSETS
In some cases, amounts that are excluded from net family assets may be included as annual income when disbursements are made to a family from an asset. In other cases, amounts are excluded from annual income as a lump-sum addition to net family assets, but those funds are then considered a net family asset if held in an account or other investment that is considered part of net family assets [Notice PIH 2023-27].
Net Family Assets
Net family assets are defined as the net cash value of all assets owned by the family, after deducting reasonable costs that would be incurred in disposing real property, savings, stocks, bonds, and other forms of capital investment.
PHA Policy
Reasonable costs that would be incurred when disposing of an asset include, but are not limited to, penalties for premature withdrawal, broker and legal fees, and settlement costs incurred in real estate transactions such as settlement costs and transfer taxes [New PH OCC GB, Income Determinations, p. 24].
The calculation of asset income sometimes requires the PHA to make a distinction between an asset’s market value and its cash value.
• The market value of an asset is its worth in the market (e.g., the amount a buyer would pay for real estate or the total value of an investment account). • The cash value of an asset is its market value less all reasonable amounts that would be incurred when converting the asset to cash.
The cash value of real property or other assets with negative equity would be considered $0 for the purposes of calculating net family assets. Negative equity in real property or other investments does not prohibit the family from selling the property or other investments, so negative equity alone would not justify excluding the property or other investments from family assets [Notice PIH 2023-27].
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-44 Actual Income from Assets
Income from assets must be included on the Form HUD-50058 regardless of the amount of income. Actual income from assets is always included in a family’s annual income, regardless of the total value of net family assets or whether the asset itself is included or excluded from net family assets, unless that income is specifically excluded by 24 CFR 5.609(b).
Income or returns from assets are generally considered to be interest, dividend payments, and other actual income earned on the asset, and not the increase in market value of the asset. The increase in market value is relevant to the cash value of the asset for the purpose of determining total net family assets and imputing income.
The PHA may determine the net assets of a family based on a self-certification by the family that the net family assets do not exceed $50,000 (adjusted annually by HUD), without taking additional steps to verify the accuracy of the declaration [24 CFR 5.618(b)]. Policies related to verification of assets are found in Chapter 7 of this policy.
The PHA may not calculate or include any imputed income from assets when net family assets total $50,000 or less [24 CFR 5.609(b)(1)]. The actual income from assets must be included on the Form HUD-50058.
Imputed Income from Assets
When net family assets exceed $50,000 (adjusted annually by HUD), the PHA may not rely on self-certification. If actual returns can be calculated, the PHA must include actual income from the asset on the Form HUD-50058 (for example, a savings account or CD where the rate of return is known). If actual returns cannot be calculated, the PHA must calculate imputed returns using the HUD-determined passbook rate (for example, real property or a non-necessary item of personal property such as a recreational boat). If the PHA can compute actual income from some but not all assets, the PHA must compute actual returns where possible and use the HUD-determined passbook rate for assets where actual income cannot be calculated [24 CFR 5.609(a)(2)].
An asset with an actual return of $0 (such as a non-interest-bearing checking account), is not the same as an asset for which an actual return cannot be computed (such as non-necessary personal property). If the asset is a financial asset and there is no income generated (for example, a bank account with a zero percent interest rate or a stock that does not issue cash dividends), then the asset generates zero actual asset income, and imputed income is not calculated. When a stock issues dividends in some years but not others (e.g., due to market performance), the dividend is counted as the actual return when it is issued, and when no dividend is issued, the actual return is $0. When the stock never issues dividends, the actual return is consistently $0.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-45 PART III: ADJUSTED INCOME
6-III.A. INTRODUCTION
Overview
HUD regulations require PHAs to deduct from annual income any of five mandatory deductions for which a family qualifies and allow the PHA to deduct other permissive deductions in accordance with PHA policy. The resulting amount is the family’s adjusted income. Mandatory deductions are found in 24 CFR 5.611.
5.611 Adjusted income means annual income (as determined under § 5.609) of the members of the family residing or intending to reside in the dwelling unit, after making the following deductions:
(a) Mandatory deductions
(1) $480 for each dependent (adjusted annually by HUD, rounded to the next lowest multiple of $25);
(2) $525 for any elderly family or disabled family (adjusted annually by HUD, rounded to the next lowest multiple of $25);
(3) The sum of the following, to the extent the sum exceeds ten percent of annual income:
(i) Unreimbursed health and medical care expenses of any elderly family or disabled family; (ii) Unreimbursed reasonable attendant care and auxiliary apparatus expenses for each member of the family who is a person with disabilities, to the extent necessary to enable any member of the family (including the member who is a person with disabilities) to be employed; and (4) Any reasonable child care expenses necessary to enable a member of the family to be employed or to further his or her education.
This part covers policies related to these mandatory deductions. Verification requirements related to these deductions are found in Chapter 7.
Anticipating Expenses
PHA Policy
Generally, the PHA will use current circumstances to anticipate expenses. When possible, for costs that are expected to fluctuate during the year (e.g., child care during school and non-school periods and cyclical medical expenses), the PHA will estimate costs based on historic data and known future costs.
If a family has an accumulated debt for medical or disability assistance expenses, the PHA will include as an eligible expense the portion of the debt that the family expects to pay during the period for which the income determination is being made. However, amounts previously deducted will not be allowed even if the amounts were not paid as expected in a preceding period. The PHA may require the family to provide documentation of payments made in the preceding year.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-46 When calculating health and medical care expenses, the PHA will include those expenses anticipated to be incurred during the 12 months following the certification date which are not covered by an outside source, such as insurance. The allowance is not intended to give a family an allowance equal to last year’s expenses, but to anticipate regular ongoing and anticipated expenses during the coming year. Since these expenses are anticipated, the PH Occupancy Guidebook states “it is likely that actual expenses will not match what was anticipated. Typically, this would not be considered an underpayment as long as at the time of the annual reexamination, the expenses were calculated based on the appropriate verification” [New PH OCC GB, Income Determinations, p. 30]. For annual reexaminations, the PHA will use information for the previous 12-month period. 6-III.B. DEPENDENT DEDUCTION
An allowance of $480 is deducted from annual income for each dependent (which amount will be adjusted by HUD annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers, rounded to the next lowest multiple of $25) [24 CFR 5.611(a)(1)].
Dependent is defined as any family member other than the head, spouse, or cohead who is under the age of 18 or who is 18 or older and is a person with disabilities or a full-time student. Foster children, foster adults, and live-in aides are never considered dependents [24 CFR 5.603(b)]. 6-III.C. ELDERLY OR DISABLED FAMILY DEDUCTION
A single deduction of $525 is taken for any elderly or disabled family (which amount will be adjusted by HUD annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers, rounded to the next lowest multiple of $25) [24 CFR 5.611(a)(2)].
An elderly family is a family whose head, spouse, cohead, or sole member is 62 years of age or older, and a disabled family is a family whose head, spouse, cohead, or sole member is a person with disabilities [24 CFR 5.403].
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-47 6-III.D. HEALTH AND MEDICAL CARE EXPENSES DEDUCTION
[24 CFR 5.611(a)(3)(i)]
Unreimbursed health and medical care expenses may be deducted to the extent that, in combination with any disability assistance expenses, they exceed ten percent of annual income.
This deduction is permitted only for families in which the head, spouse, or cohead is at least 62 or is a person with disabilities. If a family is eligible for a medical expense deduction, the medical expenses of all family members are counted.
Definition of Medical Expenses
HUD regulations define health and medical care expenses at 24 CFR 5.603(b) to mean “any costs incurred in the diagnosis, cure, mitigation, treatment, or prevention of disease or payments for treatments affecting any structure or function of the body. Health and medical care expenses include medical insurance premiums and long-term care premiums that are paid or anticipated during the period for which annual income is computed.” Medical insurance premiums continue to be eligible health and medical care expenses. Health and medical care expenses may be deducted from annual income only if they are eligible and not otherwise reimbursed and may only be deducted for elderly or disabled families.
Although HUD revised the definition of health and medical care expenses to reflect the Internal Revenue Service (IRS) general definition of medical expenses, HUD is not permitting PHAs to specifically align their policies with IRS Publication 502 for determining which expenses are included in HUD’s mandatory deduction for health and medical care expenses. PHAs must review each expense to determine whether it is eligible in accordance with HUD’s definition of health and medical care expenses.
Families That Qualify for Both Health and Medical and Disability Assistance Expenses PHA Policy
This policy applies only to families in which the head, spouse, or cohead is 62 or older or is a person with disabilities.
When expenses anticipated by a family could be defined as either a health and medical care or disability assistance expenses, the PHA will consider them health and medical care expenses unless it is clear that the expenses are incurred exclusively to enable a person with disabilities to work.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-48 6-III.E. DISABILITY ASSISTANCE EXPENSES DEDUCTION [24 CFR 5.603(b) and 24 CFR 5.611(a)(3)(ii)]
Unreimbursed reasonable expenses for attendant care and auxiliary apparatus for each member of the family who is a person with disabilities may be deducted if they: (1) are necessary to enable a family member 18 years or older to work, (2) are not paid to a family member or reimbursed by an outside source, (3) in combination with any medical expenses, exceed ten percent of annual income, and (4) do not exceed the earned income received by the family member who is enabled to work.
Earned Income Limit on the Disability Assistance Expense Deduction A family can qualify for the disability assistance expense deduction only if at least one family member (who may be the person with disabilities) is enabled to work [24 CFR 5.603(b)].
The disability expense deduction is capped by the amount of “earned income received by family members who are 18 years of age or older and who are able to work” because of the expense [24 CFR 5.611(a)(3)(ii)]. The earned income used for this purpose is the amount verified before any earned income disallowances or income exclusions are applied.
PHA Policy
The family must identify the family members enabled to work as a result of the disability assistance expenses. In evaluating the family’s request, the PHA will consider factors such as how the work schedule of the relevant family members relates to the hours of care provided, the time required for transportation, the relationship of the family members to the person with disabilities, and any special needs of the person with disabilities that might determine which family members are enabled to work.
When the PHA determines that the disability assistance expenses enable more than one family member to work, the expenses will be capped by the sum of the family members’ incomes. [New PH OCC GB, Income Determination, p. 28].
Eligible Auxiliary Apparatus [Notice PIH 2023-27]
Auxiliary apparatus items may include expenses for wheelchairs, ramps, adaptations to vehicles, guide dogs, assistance animals, or special equipment to enable a person who is blind or has low vision to read or type, or special equipment to assist a person who is deaf or hard of hearing.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-49 Eligible Attendant Care [Notice PIH 2023-27]
Examples of attendant care expenses can include teaching a person with disabilities how to perform day-to-day tasks independently like cleaning, bathing, doing laundry, and cooking.
Attendant care can be 24-hour care, or care during sporadic periods throughout the day. The family determines the type of attendant care that is appropriate for the person with disabilities.
PHA Policy
Attendant care expenses will be included for the period that the person enabled to work is employed plus reasonable transportation time. The cost of general housekeeping and personal services is not an eligible attendant care expense. However, if the person enabled to work is the person with disabilities, personal services necessary to enable the person with disabilities to work are eligible.
If the care attendant also provides other services to the family, the PHA will prorate the cost and allow only that portion of the expenses attributable to attendant care that enables a family member to work. For example, if the care provider also cares for a child who is not the person with disabilities, the cost of care must be prorated. Unless otherwise specified by the care provider, the calculation will be based upon the number of hours spent in each activity and/or the number of persons under care.
Payments to Family Members
No disability assistance expenses may be deducted for payments to a member of an assisted family [24 CFR 5.603(b)]. However, expenses paid to a relative who is not a member of the assisted family may be deducted if they are not reimbursed by an outside source.
Necessary and Reasonable Expenses
The family determines the type of care or auxiliary apparatus to be provided and must describe how the expenses enable a family member to work. The family must certify that the disability assistance expenses are necessary and are not paid or reimbursed by any other source.
PHA Policy
The PHA determines the reasonableness of the expenses based on typical costs of care or apparatus in the locality. To establish typical costs, the PHA will collect information from organizations that provide services and support to persons with disabilities. A family may present, and the PHA will consider, the family’s justification for costs that exceed typical costs in the area.
Families That Qualify for Both Health and Medical and Disability Assistance Expenses PHA Policy
This policy applies only to families in which the head or spouse is 62 or older or is a person with disabilities.
When expenses anticipated by a family could be defined as either health and medical care or disability assistance expenses, the PHA will consider them health and medical care expenses unless it is clear that the expenses are incurred exclusively to enable a person with disabilities to work.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-50 6-III.F. CHILD CARE EXPENSE DEDUCTION
HUD defines child care expenses at 24 CFR 5.603(b) as “amounts anticipated to be paid by the family for the care of children under 13 years of age (including foster children) during the period for which annual income is computed, but only where such care is necessary to enable a family member to actively seek employment, be gainfully employed, or to further his or her education and only to the extent such amounts are not reimbursed. The amount deducted shall reflect reasonable charges for child care. In the case of child care necessary to permit employment, the amount deducted shall not exceed the amount of employment income that is included in annual income.”
Clarifying the Meaning of Child for This Deduction
Child care expenses do not include child support payments made to another on behalf of a minor who is not living in an assisted family’s household [VG, p. 26]. However, child care expenses for foster children that are living in the assisted family’s household are included when determining the family’s child care expenses [HCV GB, p. 5-29].
Qualifying for the Deduction
Determining Who Is Enabled to Pursue an Eligible Activity PHA Policy
The family must identify the family member(s) enabled to pursue an eligible activity. The term eligible activity in this section means any of the activities that may make the family eligible for a child care deduction (seeking work, pursuing an education, or being gainfully employed).
In evaluating the family’s request, the PHA will consider factors such as how the schedule for the claimed activity relates to the hours of care provided, the time required for transportation, the relationship of the family member(s) to the child, and any special needs of the child that might help determine which family member is enabled to pursue an eligible activity.
Seeking Work
PHA Policy
If the child care expense being claimed is to enable a family member to seek employment, the family must provide evidence of the family member’s efforts to obtain employment at each reexamination. The deduction may be reduced or denied if the family member’s job search efforts are not commensurate with the child care expense being allowed by the PHA.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-51 Furthering Education
PHA Policy
If the child care expense being claimed is to enable a family member to further their education, the member must be enrolled in school (academic or vocational) or participating in a formal training program. The family member is not required to be a full-time student, but the time spent in educational activities must be commensurate with the child care claimed.
Being Gainfully Employed
PHA Policy
If the child care expense being claimed is to enable a family member to be gainfully employed, the family must provide evidence of the family member’s employment during the time that child care is being provided. Gainful employment is any legal work activity (full- or part-time) for which a family member is compensated.
Earned Income Limit on Child Care Expense Deduction
When a family member looks for work or furthers their education, there is no cap on the amount that may be deducted for child care – although the care must still be necessary and reasonable.
However, when child care enables a family member to work, the deduction is capped by “the amount of employment income that is included in annual income” [24 CFR 5.603(b)].
The earned income used for this purpose is the amount of earned income verified after any earned income disallowances or income exclusions are applied.
When the person who is enabled to work is a person with disabilities who receives the earned income disallowance (EID) or a full-time student whose earned income above $480 is excluded, child care costs related to enabling a family member to work may not exceed the portion of the person’s earned income that actually is included in annual income. For example, if a family member who qualifies for the EID makes $15,000 but because of the EID only $5,000 is included in annual income, child care expenses are limited to $5,000.
The PHA must not limit the deduction to the least expensive type of child care. If the care allows the family to pursue more than one eligible activity, including work, the cap is calculated in proportion to the amount of time spent working [HCV GB, p. 5-30].
PHA Policy
When the child care expense being claimed is to enable a family member to work, only one family member’s income will be considered for a given period of time. When more than one family member works during a given period, the PHA generally will limit allowable child care expenses to the earned income of the lowest-paid member. The family may provide information that supports a request to designate another family member as the person enabled to work.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-52 Eligible Child Care Expenses
The type of care to be provided is determined by the assisted family. The PHA may not refuse to give a family the child care expense deduction because there is an adult family member in the household that may be available to provide child care [VG, p. 26].
Allowable Child Care Activities
PHA Policy
For school-age children, costs attributable to public or private school activities during standard school hours are not considered. Expenses incurred for supervised activities after school or during school holidays (e.g., summer day camp, after-school sports league) are allowable forms of child care.
The costs of general housekeeping and personal services are not eligible. Likewise, child care expenses paid to a family member who lives in the family’s unit are not eligible; however, payments for child care to relatives who do not live in the unit are eligible.
If a child care provider also renders other services to a family or child care is used to enable a family member to conduct activities that are not eligible for consideration, the PHA will prorate the costs and allow only that portion of the expenses that is attributable to child care for eligible activities. For example, if the care provider also cares for a child with disabilities who is 13 or older, the cost of care will be prorated. Unless otherwise specified by the child care provider, the calculation will be based upon the number of hours spent in each activity and/or the number of persons under care.
Necessary and Reasonable Costs
Child care expenses will be considered necessary if: (1) a family adequately explains how the care enables a family member to work, actively seek employment, or further their education, and (2) the family certifies, and the child care provider verifies, that the expenses are not paid or reimbursed by any other source.
PHA Policy
Child care expenses will be considered for the time required for the eligible activity plus reasonable transportation time. For child care that enables a family member to go to school, the time allowed may include not more than one study hour for each hour spent in class.
To establish the reasonableness of child care costs, the PHA will use the schedule of child care costs from a qualified local entity that either subsidizes child care costs or licenses child care providers. Families may present, and the PHA will consider, justification for costs that exceed typical costs in the area.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-53 6-III.G. HARDSHIP EXEMPTIONS [24 CFR 5.611(c), (d), and (e)] Health and Medical Care and Disability Assistance Expenses [24 CFR 5.611(c); Notice PIH 2023-27]
The regulations provide for two types of hardship exemption categories for families that qualify for unreimbursed health and medical care expenses and/or disability assistance expenses. A family will benefit from this hardship exemption only if the family has eligible expenses that can be deducted in excess of five percent of annual income. In order to claim unreimbursed health and medical care expenses, the family must have a head, cohead, or spouse that is elderly or a person with a disability. In order to claim unreimbursed reasonable attendant care and auxiliary apparatus expenses, the family must include a person with a disability, and the expenses must enable any member of the family (including the member who is a person with a disability) to be employed.
Families may be eligible for relief under one of two categories; phased-in relief or general relief, as defined below.
Phased-In Relief
The first category is applicable to all families who received a deduction for unreimbursed health and medical care and/or reasonable attendant care or auxiliary apparatus expenses based on their most recent income review. The family must receive phased-in relief if they are determined to be eligible. These families will begin receiving a 24-month phased-in relief at their next annual or interim reexamination, whichever occurs first.
For these families, the threshold amount is phased-in as follows:
• The family is eligible for a deduction totaling the sum of expenses that exceeds 5 percent of annual income for the first 12 months.
• At the conclusion of 12 months, the family is eligible for a deduction totaling the sum of their expenses that exceed 7.5 percent of annual income for another 12 months. • At the conclusion of 24 months, the standard threshold amount of 10 percent would be used, unless the family qualifies for relief under the general hardship relief category. - When an eligible family’s phased-in relief begins at an interim reexamination, the PHA will need to process another transaction one year later to move the family along to the next phase. The transaction can be either an interim reexamination if triggered, or a noninterim reexamination transaction.
Prior to the end of the 24-month period, the family may request a hardship exemption under the second category as described below. If the family is found eligible under the second category, the hardship exemption under the first category ends, and the family’s hardship is administered in accordance with the requirements listed below. Once a family requests general relief, the family may no longer receive phased-in relief.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-54 PHAs must track the 24-month phase-period for each eligible family, even if a family’s expenses go below the appropriate phase-in percentage, during the first or second 12-month phase-in period. The phase-in must continue for families who move to another public housing unit at the same PHA. When the family is treated as a new admission under a different property/program (e.g., the family moves from public housing to the HCV program), unless the PHA has a written policy to continue the phased-in relief upon admission, the family’s expense deduction will be calculated using the 10-percent threshold unless request for general relief is approved by the PHA.
PHA Policy
The PHA will not continue the phased-in relief for families who move from the HCV program to public housing. These families will be treated as new admissions and the sum of expenses that exceeds 10 percent of annual income will be used to calculate their adjusted income.
General Relief
The second category is for families that can demonstrate:
• Their health and medical and/or disability assistance expenses increased (other than the transition to the higher threshold); or
• The family’s financial hardship is a result of a change in circumstances (as defined in PHA policy) that would not otherwise trigger an interim reexamination.
The family may request a hardship exemption under the second category regardless of whether the family previously received the health and medical and/or disability assistance deductions or are currently or were previously receiving relief under the phased-in relief category above. HUD requires that PHAs develop policies defining what constitutes a hardship for purposes of this exemption.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-55 The PHA must obtain third-party verification of the hardship or must document in the file the reason third-party verification was not available. PHAs must attempt to obtain third-party verification prior to the end of the 90-day hardship exemption period.
PHA Policy
To qualify for a hardship exemption, a family must submit a request in writing. The request must show that the family’s health and medical and/or disability assistance expenses have increased (other than the transition to the higher threshold) or that the family’s financial hardship is a result of a change in circumstances. The PHA defines a change in circumstances as a decrease in income or increase in other expenses that has resulted in the family’s financial hardship but does not, on its own, trigger an interim reexam in accordance with PHA policies.
Examples of circumstances constituting a financial hardship may include the following situations:
The family is awaiting an eligibility determination for a federal, state, or local assistance program, such as a determination for unemployment compensation or disability benefits;
The family’s income decreased because of a loss of employment, death of a family member, or due to a natural or federal/state declared disaster; or Other circumstances as determined by the PHA.
The family must provide third-party verification of the hardship with the request. If thirdparty verification is not available, the PHA will document the file with the reason and will attempt to obtain third-party verification prior to the end of the 90-day hardship exemption period.
The PHA must promptly notify the family in writing of the change in the determination of adjusted income and the family’s rent resulting from hardship exemptions. The notice must inform the family of when the hardship exemption will begin and expire [24 CFR 5.611(e)(2)].
PHA Policy
The PHA will make a determination of whether the family qualifies within 30 calendar days and will notify the family in writing of the result within 10 business days of the determination.
If the PHA denies the hardship exemption request, the PHA notice will also state that if the family does not agree with the PHA determination, the family may request a hearing.
If the family qualifies for an exemption, the PHA will include the date the hardship exemption will begin and the date it will expire as well as information on how to request a 90-day extension based on family circumstances.
If the family qualifies, the family will receive a deduction for the sum of eligible expenses that exceed five percent of annual income.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-56 The family’s hardship relief ends when the circumstances that made the family eligible for the relief are no longer applicable or after 90 days, whichever is earlier. However, the PHA may, at its discretion, extend the relief for one or more additional 90-day periods while the family’s hardship condition continues. PHAs are not limited to a maximum number of 90-day extensions.
PHAs are not limited to a maximum number of 90-day extensions. PHAs must establish written policies regarding the types of circumstances that will allow a family to qualify for a financial hardship and when such deductions may be eligible for additional 90-day extensions. PHAs must develop policies requiring families to report if the circumstances that made the family eligible for the hardship exemption are no longer applicable.
PHA Policy
The family may request an extension either orally or in writing prior to the end of the hardship exemption period. The PHA will extend relief for an additional 90-days if the family demonstrates to the PHA’s satisfaction that the family continues to qualify for the hardship exemption based on circumstances described above. The PHA will require updated verification based on the family’s current circumstances. Additional extension(s) may be granted on a case-by-case basis provided the family continues to request extensions prior to the end of each hardship exemption period. Families must report if the circumstances that made the family eligible for the hardship exemption are no longer applicable. At any time, the PHA may terminate the hardship exemption if the PHA determines that the family no longer qualifies for the exemption.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-57 Child Care Expense Hardship Exemption [24 CFR 5.611(d) and Notice PIH 2023-27] A family whose eligibility for the child care expense deduction is ending may request a financial hardship exemption to continue receiving the deduction. If the family demonstrates to the PHA’s satisfaction that the family is unable to pay their rent because of the loss of the child care expense deduction, and that the child care expense is still necessary even though the family member is not working, looking for work, or seeking to further their education, the PHA must recalculate the family’s adjusted income and continue the child care deduction.
The PHA must develop a policy to define what constitutes a hardship, which includes the family’s inability to pay rent. The PHA must obtain third-party verification of the hardship or must document in the file the reason third-party verification was not available. PHAs must attempt to obtain third-party verification prior to the end of the 90-day hardship exemption period.
PHA Policy
For a family to qualify, they must demonstrate that their inability to pay rent would be as a result of the loss of this deduction. The PHA defines this hardship as a potential decrease in income or increase in other expenses that would result from the loss of the child care expense and such loss would impact the family’s ability to pay their rent.
Some factors to consider when determining if the family is unable to pay rent may include determining that the rent, utility payment, and applicable expenses (child care expenses or health and medical expenses) are more than 40 percent of the family’s adjusted income, or verifying whether the family has experienced unanticipated expenses, such as large medical bills, that have affected their ability to pay their rent.
The family must also demonstrate that the child care expense is still necessary even though the family member is no longer employed or furthering their education. The PHA will consider qualification under this criterion on a case-by case basis (for example, if the family member who was employed has left their job in order to provide uncompensated care to an elderly friend or family member who is severely ill and lives across town).
The family must provide third-party verification of the hardship with the request. If thirdparty verification is not available, the PHA will document the file with the reason and will attempt to obtain third-party verification prior to the end of the 90-day hardship exemption period.
The PHA must promptly notify the family in writing of the change in the determination of adjusted income and the family’s rent resulting from hardship exemptions.
If the PHA denies the request, the notice must specifically state the reason for the denial. PHAs must provide families 30 days’ notice of any increase in rent.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-58 If the PHA approves the request, the notice must inform the family of when the hardship exemption will begin and expire [24 CFR 5.611(e)(2)]. The notice must also state the requirement for the family to report to the PHA if the circumstances that made the family eligible for relief are no longer applicable and that the family’s adjusted income and tenant rent will be recalculated upon expiration of the hardship exemption [Notice PIH 2023-27].
PHA Policy
The PHA will make a determination of whether the family qualifies within 30 calendar days and will notify the family in writing of the result within 10 business days of the determination.
If the PHA denies the hardship exemption request, the PHA notice will also state that if the family does not agree with the PHA determination, the family may request a grievance hearing.
If the family qualifies for an exemption, the PHA will all required information listed above as well as information on how to request a 90-day extension based on family circumstances.
If the family qualifies, the hardship exemption and the resulting alternative adjusted income calculation must remain in place for a period of up to 90 days.
The PHA may, at its discretion, extend the hardship exemptions for additional 90-day periods based on family circumstances and as stated in PHA policies. PHAs are not limited to a maximum number of 90-day extensions. . PHAs must develop policies requiring families to report if the circumstances that made the family eligible for the hardship exemption are no longer applicable.
PHAs must promptly notify families in writing if they are denied either an initial hardship exemption or an additional 90-day extension of the exemption. If the PHA denies the request, the notice must specifically state the reason for the denial.
PHAs must notify the family if the hardship exemption is no longer necessary and the hardship exemption will be terminated because the circumstances that made the family eligible for the exemption are no longer applicable. The notice must state the termination date and provide 30 days’ notice of rent increase, if applicable.
PHA Policy
The family may request an extension either orally or in writing prior to the end of the hardship exemption period. The PHA will extend relief for an additional 90-days if the family demonstrates to the PHA’s satisfaction that the family continues to qualify for the hardship exemption. The PHA will require updated verification based on the family’s current circumstances. Additional extensions may be granted on a case-by-case basis provided the family continues to request extensions prior to the end of each hardship exemption period. Families must report if the circumstances that made the family eligible for the hardship exemption are no longer applicable. At any time, the PHA may terminate the hardship exemption if the PHA determines that the family no longer qualifies for the exemption.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-59 6-III.H. PERMISSIVE DEDUCTIONS [24 CFR 5.611(b)(1)(i)]
The PHA may adopt additional permissive deductions from annual income if they establish a policy in the ACOP. Permissive deductions are additional, optional deductions that may be applied to annual income. As with mandatory deductions, permissive deductions must be based on need or family circumstance and deductions must be designed to encourage self-sufficiency or other economic purpose. If the PHA offers permissive deductions, they must be granted to all families that qualify for them and should complement existing income exclusions and deductions [PH Occ GB, p. 128]. Permissive deductions may be used to incentivize or encourage selfsufficiency and economic mobility.
If the PHA chooses to adopt permissive deductions, the PHA is not eligible for an increase in Capital Fund and Operating Fund formula grants based on the application of those deductions.
The PHA must establish a written policy for such deductions.
The Form HUD-50058 Instruction Booklet states that the maximum allowable amount for total permissive deductions is less than $90,000 per year.
PHA Policy
The PHA has opted not to use permissive deductions.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11
/30/23
Unlimited copies may be made for internal use. Page 6
-60
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-61 PART IV: CALCULATING RENT
6-IV.A. OVERVIEW OF INCOME-BASED RENT CALCULATIONS
The first step in calculating income-based rent is to determine each family’s total tenant payment (TTP). Then, if the family is occupying a unit that has tenant-paid utilities, the utility allowance is subtracted from the TTP. The result of this calculation, if a positive number, is the tenant rent.
If the TTP is less than the utility allowance, the result of this calculation is a negative number, and is called the utility reimbursement, which may be paid to the family or directly to the utility company by the PHA.
TTP Formula [24 CFR 5.628]
HUD regulations specify the formula for calculating the total tenant payment (TTP) for an assisted family. TTP is the highest of the following amounts, rounded to the nearest dollar:
• 30 percent of the family’s monthly adjusted income (adjusted income is defined in Part II) • 10 percent of the family’s monthly gross income (annual income, as defined in Part I, divided by 12)
• The welfare rent (in as-paid states only)
• A minimum rent between $0 and $50 that is established by the PHA The PHA has authority to suspend and exempt families from minimum rent when a financial hardship exists, as defined in section 6-IV.B.
Welfare Rent [24 CFR 5.628]
PHA Policy
Welfare rent does not apply in this locality.
Minimum Rent [24 CFR 5.630]
PHA Policy
The minimum rent for this locality is $0.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-62 Optional Changes to Income-Based Rents [24 CFR 960.253(c)(2) and PH Occ GB, pp. 131-134]
PHAs have been given very broad flexibility to establish their own, unique rent calculation systems as long as the rent produced is not higher than that calculated using the TTP and mandatory deductions. At the discretion of the PHA, rent policies may structure a system that uses combinations of permissive deductions, escrow accounts, income-based rents, and the required flat and minimum rents.
The PHA’s minimum rent and rent choice policies still apply to affected families. Utility allowances are applied to PHA designed income-based rents in the same manner as they are applied to the regulatory income-based rents.
The choices are limited only by the requirement that the method used not produce a TTP or tenant rent greater than the TTP or tenant rent produced under the regulatory formula.
PHA Policy
The PHA chooses not to adopt optional changes to income-based rents.
Ceiling Rents [24 CFR 960.253 (c)(2) and (d)]
Ceiling rents are used to cap income-based rents. They are part of the income-based formula. If the calculated TTP exceeds the ceiling rent for the unit, the ceiling rent is used to calculate tenant rent (ceiling rent/TTP minus utility allowance). Increases in income do not affect the family since the rent is capped. The use of ceiling rents fosters upward mobility and income mixing.
Because of the mandatory use of flat rents, the primary function of ceiling rents now is to assist families who cannot switch back to flat rent between annual reexaminations and would otherwise be paying an income-based tenant rent that is higher than the flat rent.
Ceiling rents must be set to the level required for flat rents (which will require the addition of the utility allowance to the flat rent for properties with tenant-paid utilities) [PH Occ GB, p. 135].
PHA Policy
The PHA chooses not to use ceiling rents.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-63 Utility Reimbursement [24 CFR 982.514(b); 982.514]
Utility reimbursement occurs when any applicable utility allowance for tenant-paid utilities exceeds the TTP. HUD permits the PHA to pay the reimbursement to the family or directly to the utility provider.
PHA Policy
The PHA will make utility reimbursements to the family.
The PHA may make all utility reimbursement payments to qualifying families on a monthly basis or may make quarterly payments when the monthly reimbursement amount is $15.00 or less. Reimbursements must be made once per calendar-year quarter, either prospectively or retroactively, and must be prorated if the family leaves the program in advance of its next quarterly reimbursement. The PHA must also adopt hardship policies for families for whom receiving quarterly reimbursement would create a financial hardship. The PHA must issue reimbursements that exceed $15.00 per month on a monthly basis.
PHA Policy
The PHA will issue all utility reimbursements monthly.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-64 6-IV.B. FINANCIAL HARDSHIPS AFFECTING MINIMUM RENT [24 CFR 5.630] PHA Policy
The financial hardship rules described below do not apply in this jurisdiction because the PHA has established a minimum rent of $0.
Overview
If the PHA establishes a minimum rent greater than zero, the PHA must grant an exemption from the minimum rent if a family is unable to pay the minimum rent because of financial hardship.
The financial hardship exemption applies only to families required to pay the minimum rent. If a family’s TTP is higher than the minimum rent, the family is not eligible for a hardship exemption. If the PHA determines that a hardship exists, the family share is the highest of the remaining components of the family’s calculated TTP.
HUD-Defined Financial Hardship
Financial hardship includes the following situations:
(1) The family has lost eligibility for or is awaiting an eligibility determination for a federal, state, or local assistance program. This includes a family member who is a noncitizen lawfully admitted for permanent residence under the Immigration and Nationality Act who would be entitled to public benefits but for Title IV of the Personal Responsibility and Work Opportunity Act of 1996.
PHA Policy
A hardship will be considered to exist only if the loss of eligibility has an impact on the family’s ability to pay the minimum rent.
For a family waiting for a determination of eligibility, the hardship period will end as of the first of the month following: (1) implementation of assistance, if approved, or (2) the decision to deny assistance. A family whose request for assistance is denied may request a hardship exemption based upon one of the other allowable hardship circumstances. (2) The family would be evicted because it is unable to pay the minimum rent.
PHA Policy
For a family to qualify under this provision, the cause of the potential eviction must be the family’s failure to pay rent to the owner or tenant-paid utilities. (3) Family income has decreased because of changed family circumstances, including the loss of employment.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-65 (4) A death has occurred in the family.
PHA Policy
In order to qualify under this provision, a family must describe how the death has created a financial hardship (e.g., because of funeral-related expenses or the loss of the family member’s income).
(5) The family has experienced other circumstances determined by the PHA.
PHA Policy
The PHA has not established any additional hardship criteria.
Implementation of Hardship Exemption
Determination of Hardship
When a family requests a financial hardship exemption, the PHA must suspend the minimum rent requirement beginning the first of the month following the family’s request.
The PHA then determines whether the financial hardship exists and whether the hardship is temporary or long-term.
PHA Policy
The PHA defines temporary hardship as a hardship expected to last 90 days or less.
Long-term hardship is defined as a hardship expected to last more than 90 days.
When the minimum rent is suspended, the family share reverts to the highest of the remaining components of the calculated TTP. The example below demonstrates the effect of the minimum rent exemption.
Example: Impact of Minimum Rent Exemption
Assume the PHA has established a minimum rent of $50.
Family Share – No Hardship Family Share – With Hardship $0
$15
N/A
$50
30% of monthly adjusted income
10% of monthly gross income
Welfare rent
Minimum rent
$0
$15
N/A
$50
30% of monthly adjusted income
10% of monthly gross income
Welfare rent
Minimum rent
Minimum rent applies.
TTP = $50
Hardship exemption granted.
TTP = $15
PHA Policy
To qualify for a hardship exemption, a family must submit a request for a hardship exemption in writing. The request must explain the nature of the hardship and how the hardship has affected the family’s ability to pay the minimum rent.
The PHA will make the determination of hardship within 30 calendar days.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-66 No Financial Hardship
If the PHA determines there is no financial hardship, the PHA will reinstate the minimum rent and require the family to repay the amounts suspended.
For procedures pertaining to grievance hearing requests based upon the PHA’s denial of a hardship exemption, see Chapter 14, Grievances and Appeals.
PHA Policy
The PHA will require the family to repay the suspended amount within 30 calendar days of the PHA’s notice that a hardship exemption has not been granted.
Temporary Hardship
If the PHA determines that a qualifying financial hardship is temporary, the PHA must suspend the minimum rent for the 90-day period beginning the first of the month following the date of the family’s request for a hardship exemption.
At the end of the 90-day suspension period, the family must resume payment of the minimum rent and must repay the PHA the amounts suspended. HUD requires the PHA to offer a reasonable repayment agreement, on terms and conditions established by the PHA. The PHA also may determine that circumstances have changed and the hardship is now a long-term hardship.
For procedures pertaining to grievance hearing requests based upon the PHA’s denial of a hardship exemption, see Chapter 14, Grievances and Appeals.
PHA Policy
The PHA will enter into a repayment agreement in accordance with the PHA's repayment agreement policy (see Chapter 16).
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-67 Long-Term Hardship
If the PHA determines that the financial hardship is long-term, the PHA must exempt the family from the minimum rent requirement for so long as the hardship continues. The exemption will apply from the first of the month following the family’s request until the end of the qualifying hardship. When the financial hardship has been determined to be long-term, the family is not required to repay the minimum rent.
PHA Policy
The hardship period ends when any of the following circumstances apply:
(1) At an interim or annual reexamination, the family’s calculated TTP is greater than the minimum rent.
(2) For hardship conditions based on loss of income, the hardship condition will continue to be recognized until new sources of income are received that are at least equal to the amount lost. For example, if a hardship is approved because a family no longer receives a $60/month child support payment, the hardship will continue to exist until the family receives at least $60/month in income from another source or once again begins to receive the child support.
(3) For hardship conditions based upon hardship-related expenses, the minimum rent exemption will continue to be recognized until the cumulative amount exempted is equal to the expense incurred.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-68 6-IV.C. UTILITY ALLOWANCES [24 CFR 965, Subpart E]
Overview
Utility allowances are provided to families paying income-based rents when the cost of utilities is not included in the rent. When determining a family’s income-based rent, the PHA must use the utility allowance applicable to the type of dwelling unit leased by the family.
For policies on establishing and updating utility allowances, see Chapter 16.
Reasonable Accommodation and Individual Relief
On request from a family, PHAs must approve a utility allowance that is higher than the applicable amount for the dwelling unit if a higher utility allowance is needed as a reasonable accommodation to make the program accessible to and usable by the family with a disability [24 CFR 8 and 100, PH Occ GB, p. 172].
Likewise, residents with disabilities may not be charged for the use of certain resident-supplied appliances if there is a verified need for special equipment because of the disability [PH Occ GB, p. 172].
See Chapter 2 for policies related to reasonable accommodations.
Further, the PHA may grant requests for relief from charges in excess of the utility allowance on reasonable grounds, such as special needs of the elderly, ill, or residents with disabilities, or special factors not within control of the resident, as the PHA deems appropriate. The family must request the higher allowance and provide the PHA with an explanation about the additional allowance required.
PHAs should develop criteria for granting individual relief, notify residents about the availability of individual relief, and notify participants about the availability of individual relief programs (sometimes referred to as “Medical Baseline discounts”) offered by the local utility company [Utility Allowance GB, p. 19; 24 CFR 965.508].
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-69 PHA Policy
The family must request the higher allowance and provide the PHA with information about the amount of additional allowance required.
The PHA will consider the following criteria as valid reasons for granting individual relief:
The family’s consumption was mistakenly portrayed as excessive due to defects in the meter or errors in the meter reading.
The excessive consumption is caused by a characteristic of the unit or ownersupplied equipment that is beyond the family’s control, such as a particularly inefficient refrigerator or inadequate insulation. The allowance should be adjusted to reflect the higher consumption needs associated with the unit until the situation is remedied. The resident should be granted individual relief until the allowance is adjusted.
The excessive consumption is due to special needs of the family that are beyond their control, such as the need for specialized equipment in the case of a family member who is ill, elderly, or who has a disability.
In determining the amount of the reasonable accommodation or individual relief, the PHA will allow a reasonable measure of additional usage as necessary. To arrive at the amount of additional utility cost of specific equipment, the family may provide information from the manufacturer of the equipment, or the family or PHA may conduct an internet search for an estimate of usage or additional monthly cost.
Information on reasonable accommodation and individual relief for charges in excess of the utility allowance will be provided to all residents at move-in and with any notice of proposed allowances, schedule surcharges, and revisions. The PHA will also provide information on utility relief programs or medical discounts (sometimes referred to as “Medical Baseline discounts”) that may be available through local utility providers.
The family must request the higher allowance and provide the PHA with information about the amount of additional allowance required.
At its discretion, the PHA may reevaluate the need for the increased utility allowance as a reasonable accommodation at any regular reexamination.
If the excessive consumption is caused by a characteristic of the unit or PHA-supplied equipment that is beyond the family’s control, such as a particularly inefficient refrigerator or inadequate insulation, the individual relief to the resident will cease when the situation is remedied.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-70 Utility Allowance Revisions [24 CFR 965.507]
The PHA must review at least annually the basis on which utility allowances have been established and, if reasonably required in order to continue adherence to standards described in 24 CFR 965.505, must establish revised allowances.
The PHA must revise the utility allowance schedule if there is a rate change that by itself or together with prior rate changes not adjusted for, results in a change of 10 percent or more from the rates on which such allowances were based.
Adjustments to resident payments as a result of such changes must be retroactive to the first day of the month following the month in which the last rate change taken into account in such revision became effective. Such rate changes are not subject to the 60-day notice [24 CFR 965.507(b)].
The tenant rent calculations must reflect any changes in the PHA’s utility allowance schedule [24 CFR 960.253(c)(3)].
PHA Policy
Between annual reviews of utility allowances, the PHA will only revise its utility allowances due to a rate change, when required to by the regulation.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-71 6-IV.D. PRORATED RENT FOR MIXED FAMILIES [24 CFR 5.520] HUD regulations prohibit assistance to ineligible family members. A mixed family is one that includes at least one U.S. citizen or eligible immigrant and any number of ineligible family members. Except for non-public housing over income families, the PHA must prorate the assistance provided to a mixed family. The PHA will first determine TTP as if all family members were eligible and then prorate the rent based upon the number of family members that actually are eligible. To do this, the PHA must:
(1) Subtract the TTP from the flat rent applicable to the unit. The result is the maximum subsidy for which the family could qualify if all members were eligible. (2) Divide the family maximum subsidy by the number of persons in the family to determine the maximum subsidy per each family member who is eligible (member maximum subsidy). (3) Multiply the member maximum subsidy by the number of eligible family members. (4) Subtract the subsidy calculated in the last step from the flat rent. This is the prorated TTP. (5) Subtract the utility allowance for the unit from the prorated TTP. This is the prorated rent for the mixed family.
PHA Policy
Revised public housing flat rents will be applied to a mixed family’s rent calculation at the first annual reexamination after the revision is adopted. (6) When the mixed family’s TTP is greater than the applicable flat rent, use the TTP as the prorated TTP. The prorated TTP minus the utility allowance is the prorated rent for the mixed family.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-72 6-IV.E. FLAT RENTS AND FAMILY CHOICE IN RENTS [24 CFR 960.253] Flat Rents [24 CFR 960.253(b)]
The flat rent is designed to encourage self-sufficiency and to avoid creating disincentives for continued residency by families who are attempting to become economically self-sufficient.
Changes in family income, expenses, or composition will not affect the flat rent amount because it is outside the income-based formula.
Policies related to the reexamination of families paying flat rent are contained in Chapter 9, and policies related to the establishment and review of flat rents are contained in Chapter 16.
Family Choice in Rents [24 CFR 960.253(a) and (e)]
With the exception of non-public housing over income families, once each year, the PHA must offer families the choice between a flat rent and an income-based rent. The family may not be offered this choice more than once a year. The PHA must document that flat rents were offered to families under the methods used to determine flat rents for the PHA.
PHA Policy
The annual PHA offer to a family of the choice between flat and income-based rent will be conducted upon admission and upon each subsequent annual reexamination.
The PHA will require families to submit their choice of flat or income-based rent in writing and will maintain such requests in the tenant file as part of the admission or annual reexamination process.
The PHA must provide sufficient information for families to make an informed choice. This information must include the PHA’s policy on switching from flat rent to income-based rent due to financial hardship and the dollar amount of the rent under each option. However, if the family chose the flat rent for the previous year the PHA is required to provide an income-based rent amount only in the year that a reexamination of income is conducted or if the family specifically requests it and submits updated income information.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-73 Switching from Flat Rent to Income-Based Rent Due to Hardship [24 CFR 960.253(f)] With the exception of non-public housing over-income families, a family can opt to switch from flat rent to income-based rent at any time if they are unable to pay the flat rent due to financial hardship. If the PHA determines that a financial hardship exists, the PHA must immediately allow the family to switch from flat rent to the income-based rent.
PHA Policy
Upon determination by the PHA that a financial hardship exists, the PHA will allow a family to switch from flat rent to income-based rent effective the first of the month following the family’s request.
Reasons for financial hardship include:
• The family has experienced a decrease in income because of changed circumstances, including loss or reduction of employment, death in the family, or reduction in or loss of earnings or other assistance
• The family has experienced an increase in expenses, because of changed circumstances, for medical costs, child care, transportation, education, or similar items • Such other situations determined by the PHA to be appropriate PHA Policy
The PHA considers payment of flat rent to be a financial hardship whenever the switch to income-based rent would be lower than the flat rent [PH Occ GB, p. 137].
Flat Rents and Earned Income Disallowance [A&O FAQs]
Because the EID is a function of income-based rents, a family paying flat rent cannot qualify for the EID even if a family member experiences an event that would qualify the family for the EID.
If the family later chooses to pay income-based rent, they would only qualify for the EID if a new qualifying event occurred.
Under the EID original calculation method, a family currently paying flat rent that previously qualified for the EID while paying income-based rent and is currently within their exclusion period would have the exclusion period continue while paying flat rent as long as the employment that is the subject of the exclusion continues. A family paying flat rent could therefore see a family member’s exclusion period expire while the family is paying flat rent.
Under the EID revised calculation method, a family currently paying flat rent that previously qualified for the EID while paying income-based rent and is currently within their exclusion period would have the exclusion period continue while paying flat rent regardless whether the employment that is the subject of the exclusion continues. A family paying flat rent could therefore see a family member’s exclusion period expire while the family is paying flat rent.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11
/30/23
Unlimited copies may be made for internal use. Page 6
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Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-75 EXHIBIT 6-1: ANNUAL INCOME FULL DEFINITION
24 CFR 5.609
(a) Annual income includes, with respect to
the family:
(1) All amounts, not specifically excluded in
paragraph (b) of this section, received from all
sources by each member of the family who is
18 years of age or older or is the head of
household or spouse of the head of household,
plus unearned income by or on behalf of each
dependent who is under 18 years of age, and
(2) When the value of net family assets
exceeds $50,000 (which amount HUD will
adjust annually in accordance with the
Consumer Price Index for Urban Wage
Earners and Clerical Workers) and the actual
returns from a given asset cannot be
calculated, imputed returns on the asset based
on the current passbook savings rate, as
determined by HUD.
(b)Annual income does not include the following:
(1) Any imputed return on an asset when net
family assets total $50,000 or less (which
amount HUD will adjust annually in
accordance with the Consumer Price Index for
Urban Wage Earners and Clerical Workers)
and no actual income from the net family
assets can be determined.
(2) The following types of trust distributions:
(i) For an irrevocable trust or a revocable trust
outside the control of the family or household
excluded from the definition of net family
assets under § 5.603(b):
(A) Distributions of the principal or corpus of
the trust; and
(B) Distributions of income from the trust
when the distributions are used to pay the costs
of health and medical care expenses for a
minor.
(ii) For a revocable trust under the control of
the family or household, any distributions
from the trust; except that any actual income
earned by the trust, regardless of whether it is
distributed, shall be considered income to the
family at the time it is received by the trust.
(3) Earned income of children under the 18
years of age.
(4) Payments received for the care of foster
children or foster adults, or State or Tribal
kinship or guardianship care payments.
(5) Insurance payments and settlements for
personal or property losses, including but not
limited to payments through health insurance,
motor vehicle insurance, and workers’
compensation.
(6) Amounts received by the family that are
specifically for, or in reimbursement of, the
cost of health and medical care expenses for
any family member.
(7) Any amounts recovered in any civil action
or settlement based on a claim of malpractice,
negligence, or other breach of duty owed to a
family member arising out of law, that resulted
in a member of the family becoming disabled.
(8) Income of a live-in aide, foster child, or
foster adult as defined in §§ 5.403 and 5.603,
respectively.
(9)
(i) Any assistance that section 479B of the
Higher Education Act of 1965, as amended (20
U.S.C. 1087uu), requires be excluded from a
family’s income; and
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-76 (ii) Student financial assistance for tuition,
books, and supplies (including supplies and
equipment to support students with learning
disabilities or other disabilities), room and
board, and other fees required and charged to a
student by an institution of higher education
(as defined under Section 102 of the Higher
Education Act of 1965 (20 U.S.C. 1002)) and,
for a student who is not the head of household
or spouse, the reasonable and actual costs of
housing while attending the institution of
higher education and not residing in an
assisted unit.
(A) Student financial assistance, for purposes
of this paragraph (9)(ii), means a grant or
scholarship received from— (
1) The Federal government;
(2) A State, Tribe, or local government;
(3) A private foundation registered as a
nonprofit under 26 U.S.C. 501(c)(3);
(4) A business entity (such as corporation,
general partnership, limited liability company,
limited partnership, joint venture, business
trust, public benefit corporation, or nonprofit
entity); or
(5) An institution of higher education.
(B) Student financial assistance, for purposes
of this paragraph (9)(ii), does not include—
(1) Any assistance that is excluded pursuant to
paragraph (b)(9)(i) of this section;
(2) Financial support provided to the student in
the form of a fee for services performed (e.g.,
a work study or teaching fellowship that is not
excluded pursuant to paragraph (b)(9)(i) of this
section); (
3) Gifts, including gifts from family or friends;
or
(4) Any amount of the scholarship or grant
that, either by itself or in combination with
assistance excluded under this paragraph or
paragraph (b)(9)(i), exceeds the actual covered
costs of the student. The actual covered costs
of the student are the actual costs of tuition,
books and supplies (including supplies and
equipment to support students with learning
disabilities or other disabilities), room and
board, or other fees required and charged to a
student by the education institution, and, for a
student who is not the head of household or
spouse, the reasonable and actual costs of
housing while attending the institution of
higher education and not residing in an
assisted unit. This calculation is described
further in paragraph (b)(9)(ii)€ of this section.
(C) Student financial assistance, for purposes
of this paragraph (b)(9)(ii) must be:
(1) Expressly for tuition, books, room and
board, or other fees required and charged to a
student by the education institution;
(2) Expressly to assist a student with the costs
of higher education; or
(3) Expressly to assist a student who is not the
head of household or spouse with the
reasonable and actual costs of housing while
attending the education institution and not
residing in an assisted unit.
(D) Student financial assistance, for purposes
of this paragraph (b)(9)(ii), may be paid
directly to the student or to the educational
institution on the student’s behalf. Student
financial assistance paid to the student must be
verified by the responsible entity as student
financial assistance consistent with this
paragraph (b)(9)(ii).
(E) When the student is also receiving
assistance excluded under paragraph (b)(9)(i)
of this section, the amount of student financial
assistance under this paragraph (b)(9)(ii) is
determined as follows:
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-77 (1) If the amount of assistance excluded under
paragraph (b)(9)(i) of this section is equal to or
exceeds the actual covered costs under
paragraph (b)(9)(ii)(B)(4) of this section, none
of the assistance described in this paragraph
(b)(9)(ii) of this section is considered student
financial assistance excluded from income
under this paragraph (b)(9)(ii)(E).
(2) If the amount of assistance excluded under
paragraph (b)(9)(i) of this section is less than
the actual covered costs under paragraph
(b)(9)(ii)(B)(4) of this section, the amount of
assistance described in paragraph (b)(9)(ii) of
this section that is considered student financial
assistance excluded under this paragraph is the
lower of:
(i) the total amount of student financial
assistance received under this paragraph
(b)(9)(ii) of this section, or
(ii) the amount by which the actual covered
costs under paragraph (b)(9)(ii)(B)(4) of this
section exceeds the assistance excluded under
paragraph (b)(9)(i) of this section.
(10) Income and distributions from any
Coverdell education savings account under
section 530 of the Internal Revenue Code of
1986 or any qualified tuition program under
section 529 of such Code; and income earned
by government contributions to, and
distributions from, “baby bond” accounts
created, authorized, or funded by Federal,
State, or local government.
(11) The special pay to a family member
serving in the Armed Forces who is exposed to
hostile fire.
(12)
(i) Amounts received by a person with a
disability that are disregarded for a limited
time for purposes of Supplemental Security
Income eligibility and benefits because they
are set aside for use under a Plan to Attain
Self-Sufficiency (PASS);
(ii) Amounts received by a participant in other
publicly assisted programs which are
specifically for or in reimbursement of out-ofpocket expenses incurred (e.g., special equipment, clothing, transportation, child care,
etc.) and which are made solely to allow
participation in a specific program;
(iii) Amounts received under a resident service
stipend not to exceed $200 per month. A
resident service stipend is a modest amount
received by a resident for performing a service
for the PHA or owner, on a part-time basis,
that enhances the quality of life in the
development.
(iv) Incremental earnings and benefits
resulting to any family member from
participation in training programs funded by
HUD or in qualifying Federal, State, Tribal, or
local employment training programs
(including training programs not affiliated
with a local government) and training of a
family member as resident management staff.
Amounts excluded by this provision must be
received under employment training programs
with clearly defined goals and objectives and
are excluded only for the period during which
the family member participates in the
employment training program unless those
amounts are excluded under paragraph
(b)(9)(i) of this section.
(13) Reparation payments paid by a foreign
government pursuant to claims filed under the
laws of that government by persons who were
persecuted during the Nazi era.
(14) Earned income of dependent fulltime
students in excess of the amount of the
deduction for a dependent in § 5.611.
(15) Adoption assistance payments for a child
in excess of the amount of the deduction for a
dependent in § 5.611.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-78 (16) Deferred periodic amounts from
Supplemental Security Income and Social
Security benefits that are received in a lump
sum amount or in prospective monthly
amounts, or any deferred Department of
Veterans Affairs disability benefits that are
received in a lump sum amount or in
prospective monthly amounts.
(17) Payments related to aid and attendance
under 38 U.S.C. 1521 to veterans in need of
regular aid and attendance.
(18) Amounts received by the family in the
form of refunds or rebates under State or local
law for property taxes paid on the dwelling
unit.
(19) Payments made by or authorized by a
State Medicaid agency (including through a
managed care entity) or other State or Federal
agency to a family to enable a family member
who has a disability to reside in the family’s
assisted unit. Authorized payments may
include payments to a member of the assisted
family through the State Medicaid agency
(including through a managed care entity) or
other State or Federal agency for caregiving
services the family member provides to enable
a family member who has a disability to reside
in the family’s assisted unit.
(20) Loan proceeds (the net amount disbursed
by a lender to or on behalf of a borrower,
under the terms of a loan agreement) received
by the family or a third party (e.g., proceeds
received by the family from a private loan to
enable attendance at an educational institution
or to finance the purchase of a car).
(21) Payments received by Tribal members as
a result of claims relating to the
mismanagement of assets held in trust by the
United States, to the extent such payments are
also excluded from gross income under the
Internal Revenue Code or other Federal law.
(22) Amounts that HUD is required by Federal
statute to exclude from consideration as
income for purposes of determining eligibility
or benefits under a category of assistance
programs that includes assistance under any
program to which the exclusions set forth in
paragraph (b) of this section apply. HUD will
publish a notice in the Federal Register to
identify the benefits that qualify for this
exclusion. Updates will be published when
necessary.
(23) Replacement housing “gap” payments
made in accordance with 49 CFR part 24 that
offset increased out of pocket costs of
displaced persons that move from one
federally subsidized housing unit to another
Federally subsidized housing unit. Such
replacement housing “gap” payments are not
excluded from annual income if the increased
cost of rent and utilities is subsequently
reduced or eliminated, and the displaced
person retains or continues to receive the
replacement housing “gap” payments.
(24) Nonrecurring income, which is income
that will not be repeated in the coming year
based on information provided by the family.
Income received as an independent contractor,
day laborer, or seasonal worker is not excluded
from income under this paragraph, even if the
source, date, or amount of the income varies.
Nonrecurring income includes:
(i) Payments from the U.S. Census Bureau for
employment (relating to decennial census or
the American Community Survey) lasting no
longer than 180 days and not culminating in
permanent employment.
(ii) Direct Federal or State payments intended
for economic stimulus or recovery.
(iii) Amounts directly received by the family
as a result of State refundable tax credits or
State tax refunds at the time they are received.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-79 (iv) Amounts directly received by the family
as a result of Federal refundable tax credits
and Federal tax refunds at the time they are
received.
(v) Gifts for holidays, birthdays, or other
significant life events or milestones (e.g.,
wedding gifts, baby showers, anniversaries).
(vi) Non-monetary, in-kind donations, such as
food, clothing, or toiletries, received from a
food bank or similar organization.
(vii) Lump-sum additions to net family assets,
including but not limited to lottery or other
contest winnings.
(25) Civil rights settlements or judgments,
including settlements or judgments for back
pay.
(26) Income received from any account under
a retirement plan recognized as such by the
Internal Revenue Service, including individual
retirement arrangements (IRAs), employer
retirement plans, and retirement plans for selfemployed individuals; except that any distribution of periodic payments from such
accounts shall be income at the time they are
received by the family.
(27) Income earned on amounts placed in a
family’s Family Self Sufficiency Account.
(28) Gross income a family member receives
through self-employment or operation of a
business; except that the following shall be
considered income to a family member:
(i) Net income from the operation of a
business or profession. Expenditures for
business expansion or amortization of capital
indebtedness shall not be used as deductions in
determining net income. An allowance for
depreciation of assets used in a business or
profession may be deducted, based on straight
line depreciation, as provided in Internal
Revenue Service regulations; and
(ii) Any withdrawal of cash or assets from the
operation of a business or profession will be
included in income, except to the extent the
withdrawal is reimbursement of cash or assets
invested in the operation by the family.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-80 EXHIBIT 6-2: TREATMENT OF FAMILY ASSETS
24 CFR 5.603(b) Net Family Assets
(1) Net family assets is the net cash value of
all assets owned by the family, after
deducting reasonable costs that would be
incurred in disposing real property, savings,
stocks, bonds, and other forms of capital
investment.
(2) In determining net family assets, PHAs
or owners, as applicable, must include the
value of any business or family assets
disposed of by an applicant or tenant for less
than fair market value (including a
disposition in trust, but not in a foreclosure
or bankruptcy sale) during the two years
preceding the date of application for the
program or reexamination, as applicable, in
excess of the consideration received
therefor. In the case of a disposition as part
of a separation or divorce settlement, the
disposition will not be considered to be for
less than fair market value if the applicant or
tenant receives consideration not measurable
in dollar terms. Negative equity in real
property or other investments does not
prohibit the owner from selling the property
or other investments, so negative equity
alone would not justify excluding the
property or other investments from family
assets.
(3) Excluded from the calculation of net
family assets are: (i) The value of necessary
items of personal property; (ii) The
combined value of all nonnecessary items of
personal property if the combined total value
does not exceed $50,000 (which amount will
be adjusted by HUD in accordance with the
Consumer Price Index for Urban Wage
Earners and Clerical Workers); (iii) The
value of any account under a retirement plan
recognized as such by the Internal Revenue
Service, including individual retirement
arrangements (IRAs), employer retirement
plans, and retirement plans for selfemployed individuals; (iv) The value of real property that the family does not have the
effective legal authority to sell in the
jurisdiction in which the property is located;
(v) Any amounts recovered in any civil
action or settlement based on a claim of
malpractice, negligence, or other breach of
duty owed to a family member arising out of
law, that resulted in a family member being
a person with a disability; (vi) The value of
any Coverdell education savings account
under section 530 of the Internal Revenue
Code of 1986, the value of any qualified
tuition program under section 529 of such
Code, the value of any Achieving a Better
Life Experience (ABLE) account authorized
under Section 529A of such Code, and the
value of any “baby bond” account created,
authorized, or funded by Federal, State, or
local government. (vii) Interests in Indian
trust land; (viii) Equity in a manufactured
home where the family receives assistance
under 24 CFR part 982; (ix) Equity in
property under the Homeownership Option
for which a family receives assistance under
24 CFR part 982; (x) Family SelfSufficiency Accounts; and (xi) Federal tax refunds or refundable tax credits for a period
of 12 months after receipt by the family.
(4) In cases where a trust fund has been
established and the trust is not revocable by,
or under the control of, any member of the
family or household, the trust fund is not a
family asset and the value of the trust is not
included in the calculation of net family
assets, so long as the fund continues to be
held in a trust that is not revocable by, or
under the control of, any member of the
family or household.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-81 EXHIBIT 6-3: THE EFFECT OF WELFARE BENEFIT REDUCTION
24 CFR 5.615
Public housing program and Section 8 tenant-based assistance program: How welfare benefit reduction affects family income.
(a) Applicability. This section applies to
covered families who reside in public housing
(part 960 of this title) or receive Section 8
tenant-based assistance (part 982 of this title).
(b) Definitions. The following definitions
apply for purposes of this section:
Covered families. Families who receive
welfare assistance or other public assistance
benefits (“welfare benefits”) from a State or
other public agency (“welfare agency”) under
a program for which Federal, State, or local
law requires that a member of the family must
participate in an economic self-sufficiency
program as a condition for such assistance.
Economic self-sufficiency program. See
definition at Sec. 5.603.
Imputed welfare income. The amount of
annual income not actually received by a
family, as a result of a specified welfare
benefit reduction, that is nonetheless included
in the family's annual income for purposes of
determining rent.
Specified welfare benefit reduction.
(1) A reduction of welfare benefits by the
welfare agency, in whole or in part, for a
family member, as determined by the welfare
agency, because of fraud by a family member
in connection with the welfare program; or
because of welfare agency sanction against a
family member for noncompliance with a
welfare agency requirement to participate in an
economic self-sufficiency program.
(2) “Specified welfare benefit reduction” does
not include a reduction or termination of
welfare benefits by the welfare agency:
(i) at expiration of a lifetime or other time
limit on the payment of welfare benefits;
(ii) because a family member is not able to
obtain employment, even though the family
member has complied with welfare agency
economic self-sufficiency or work activities
requirements; or
(iii) because a family member has not
complied with other welfare agency
requirements.
(c) Imputed welfare income.
(1) A family's annual income includes the
amount of imputed welfare income (because of
a specified welfare benefits reduction, as
specified in notice to the PHA by the welfare
agency), plus the total amount of other annual
income as determined in accordance with Sec.
5.609.
(2) At the request of the PHA, the welfare
agency will inform the PHA in writing of the
amount and term of any specified welfare
benefit reduction for a family member, and the
reason for such reduction, and will also inform
the PHA of any subsequent changes in the
term or amount of such specified welfare
benefit reduction. The PHA will use this
information to determine the amount of
imputed welfare income for a family.
(3) A family’s annual income includes
imputed welfare income in family annual
income, as determined at the PHA's interim or
regular reexamination of family income and
composition, during the term of the welfare
benefits reduction (as specified in information
provided to the PHA by the welfare agency).
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/30/23 Unlimited copies may be made for internal use. Page 6-82 (4) The amount of the imputed welfare income
is offset by the amount of additional income a
family receives that commences after the time
the sanction was imposed. When such
additional income from other sources is at
least equal to the imputed
(5) The PHA may not include imputed welfare
income in annual income if the family was not
an assisted resident at the time of sanction.
(d) Review of PHA decision.
(1) Public housing. If a public housing tenant
claims that the PHA has not correctly
calculated the amount of imputed welfare
income in accordance with HUD requirements,
and if the PHA denies the family's request to
modify such amount, the PHA shall give the
tenant written notice of such
(2)
(3) , with a brief explanation of the basis for the
PHA determination of the amount of imputed
welfare income. The PHA notice shall also
state that if the tenant does not agree with the
PHA determination, the tenant may request a
grievance hearing in accordance with part 966,
subpart B of this title to review the PHA
determination. The tenant is not required to pay
an escrow deposit pursuant to Sec. 966.55(e)
for the portion of tenant rent attributable to the
imputed welfare income in order to obtain a
grievance hearing on the PHA determination.
(4) Section 8 participant. A participant in the
Section 8 tenant-based assistance program may
request an informal hearing, in accordance with
Sec. 982.555 of this title, to review the PHA
determination of the amount of imputed
welfare income that must be included in the
family's annual income in accordance with this
section. If the family claims that such amount
is not correctly calculated in accordance with
HUD requirements, and if the PHA denies the
family's request to modify such amount, the
PHA shall give the family written notice of
such denial, with a brief explanation of the
basis for the PHA determination of the amount
of imputed welfare income. Such notice shall
also state that if the family does not agree with
the PHA determination, the family may
request an informal hearing on the
determination under the PHA hearing
procedure.
(e) PHA relation with welfare agency.
(1) The PHA must ask welfare agencies to
inform the PHA of any specified welfare
benefits reduction for a family member, the
reason for such reduction, the term of any such
reduction, and any subsequent welfare agency
determination affecting the amount or term of
a specified welfare benefits reduction. If the
welfare agency determines a specified welfare
benefits reduction for a family member, and
gives the PHA written notice of such
reduction, the family's annual incomes shall
include the imputed welfare income because of
the specified welfare benefits reduction.
(2) The PHA is responsible for determining
the amount of imputed welfare income that is
included in the family's annual income as a
result of a specified welfare benefits reduction
as determined by the welfare agency, and
specified in the notice by the welfare agency to
the PHA. However, the PHA is not responsible
for determining whether a reduction of welfare
benefits by the welfare agency was correctly
determined by the welfare agency in
accordance with welfare program requirements
and procedures, nor for providing the
opportunity for review or hearing on such
welfare agency determinations.
(3) Such welfare agency determinations are
the responsibility of the welfare agency, and
the family may seek appeal of such
determinations through the welfare agency's
normal due process procedures. The PHA shall
be entitled to rely on the welfare agency notice
to the PHA of the welfare agency's
determination of a specified welfare benefits
reduction.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-1 Chapter 7
VERIFICATION
[24 CFR 960.259, 24 CFR 5.230, Notice PIH 2023-27]
INTRODUCTION
The PHA must verify all information that is used to establish the family’s eligibility and level of assistance and is required to obtain written authorization from the family in order to collect the information. Applicants and program participants must cooperate with the verification process as a condition of receiving assistance. The PHA must not pass on the cost of verification to the family.
The PHA must follow the verification guidance provided by HUD in Notice PIH 2023-27 and any subsequent guidance issued by HUD. This chapter summarizes those requirements and provides supplementary PHA policies.
Part I describes the general verification process. Part II provides more detailed requirements related to family information. Part III provides information on income and assets, and Part IV covers mandatory deductions.
Verification policies, rules and procedures will be modified as needed to accommodate persons with disabilities. All information obtained through the verification process will be handled in accordance with the records management policies established by the PHA.
PART I: GENERAL VERIFICATION REQUIREMENTS
7-I.A. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 960.259; 24 CFR 5.230; and Notice PIH 2023-27]
Consent Forms
The family must supply any information that the PHA or HUD determines is necessary to the administration of the program and must consent to PHA verification of that information [24 CFR 960.259(a)(1)]. All adult family members must sign consent forms as needed to collect information relevant to the family’s eligibility and level of assistance. While PHAs must use form HUD-9886, this form does not release all the information necessary to the administration of the program. The PHA must also develop its own release forms to cover all other necessary information.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-2 Form HUD-9886 [24 CFR 5.230(b)(1), (b)(2), (c)(4), and (c)(5); Notice PIH 2023-27] All adult applicants and tenants must sign form HUD-9886, Authorization for Release of Information. All adult family members (and the head and spouse/cohead regardless of age) are required to sign the Form HUD-9886 at admission. Participants, prior to January 1, 2024, signed and submitted Form HUD-9886 at each annual reexamination. HOTMA eliminated this requirement and instead required that the Form HUD-9886 be signed only once. On or after January 1, 2024 (regardless of the PHA’s HOTMA compliance date), current program participants must sign and submit a new Form HUD-9886 at their next interim or annual reexamination. This form will only be signed once. Another Form HUD-9886 will not be submitted to the PHA except under the following circumstances:
• When any person 18 years or older becomes a member of the family; • When a current member of the family turns 18; or
• As required by HUD or the PHA in administrative instructions.
The PHA has the discretion to establish policies around when family members must sign consent forms when they turn 18. PHAs must establish these policies stating when family members will be required to sign consent forms at intervals other than at reexamination.
PHA Policy
Family members turning 18 years of age between annual recertifications will be notified in writing that they are required to sign the required Consent to the Release of Information Form HUD-9886 at the family’s next annual or interim reexamination, whichever is earlier.
The purpose of form HUD-9886 is to facilitate automated data collection and computer matching from specific sources and provides the family's consent only for the specific purposes listed on the form. HUD and the PHA may collect information from State Wage Information Collection Agencies (SWICAs) and current and former employers of adult family members. Only HUD is authorized to collect information directly from the Internal Revenue Service (IRS) and the Social Security Administration (SSA).
The PHA may obtain any financial record from any financial institution, as the terms financial record and financial institution are defined in the Right to Financial Privacy Act (12 U.S.C. 3401), whenever the PHA determines the record is needed to determine an applicant’s or participant’s eligibility for assistance or level of benefits [24 CFR 5.230(c)(4)].
The executed form will remain effective until the family is denied assistance, assistance is terminated, or the family provides written notification to the PHA to revoke consent.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-3 Penalties for Failing to Consent [24 CFR 5.232]
If any family member who is required to sign a consent form fails to do so, the PHA must deny admission to applicants and terminate the lease of tenants [24 CFR 5.232(a)]. The family may request a hearing in accordance with the PHA's grievance procedures.
However, this does not apply if the applicant, participant, or any member of their family, revokes their consent with respect to the ability of the PHA to access financial records from financial institutions, unless the PHA establishes a policy that revocation of consent to access financial records will result in denial or termination of assistance or admission [24 CFR 5.232(c)]. PHAs may not process interim or annual reexaminations of income without the family’s executed consent forms.
PHA Policy
The PHA has established a policy that revocation of consent to access financial records will result in denial of admission or termination of assistance in accordance with PHA policy.
In order for a family to revoke their consent, the family must provide written notice to the PHA.
Within 10 business days of the date the family provides written notice, the PHA will send the family a notice acknowledging receipt of the request and explaining that revocation of consent will result in denial or termination of assistance, as applicable. At the same time, the PHA will notify the local HUD office.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-4 7-I.B. USE OF OTHER PROGRAMS’ INCOME DETERMINATIONS
[24 CFR 5.609(c)(3) and Notice PIH 2023-27]
PHAs may, but are not required to, determine a family’s annual income, including income from assets, prior to the application of any deductions, based on income determinations made within the previous 12-month period, using income determinations from means-tested federal public assistance programs. PHAs are not required to accept or use determinations of income from other federal means-tested forms of assistance. If the PHA adopts a policy to accept this type of verification, the PHA must establish in policy when they will accept Safe Harbor income determinations and from which programs. PHAs must also create policies that outline the course of action when families present multiple verifications from the same or different acceptable Safe Harbor programs. Means-tested federal public assistance programs include:
• Temporary Assistance for Needy Families (TANF) (42 U.S.C. 601, et seq.); • Medicaid (42 U.S.C. 1396 et seq.);
• Supplemental Nutrition Assistance Program (SNAP) (42 U.S.C. 2011 et seq.); • Earned Income Tax Credit (EITC) (26 U.S.C. 32);
• Low-Income Housing Credit (LIHTC) program (26 U.S.C. 42); • Special Supplemental Nutrition Program for Woman, Infants, and Children (WIC) (42 U.S.C. 1786);
• Supplemental Security Income (SSI) (42 U.S.C. 1381 et seq.); • Other programs administered by the HUD Secretary;
• Other means-tested forms of federal public assistance for which HUD has established a memorandum of understanding; and
• Other federal benefit determinations made in other forms of means-tested federal public assistance that the Secretary determines to have comparable reliability and announces through the Federal Register.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-5 If the PHA elects to use the annual income determination from one of the above-listed forms of means-tested federal public assistance, then they must obtain the income information by means of a third-party verification. The third-party verification must state the family size, must be for the entire family, and must state the amount of the family’s annual income. The annual income need not be broken down by family member or income type. Annual income includes income earned from assets, therefore when using Safe Harbor to verify a family’s income, PHAs will neither further inquire about a family’s net family assets, nor about the income earned from those assets, except with respect to whether or not the family owns assets that exceed the asset limitation in 24 CFR 5.618. The Safe Harbor documentation will be considered acceptable if any of the following dates fall into the 12-month period prior to the receipt of the documentation by the PHA:
• Income determination effective date;
• Program administrator’s signature date;
• Family’s signature date;
• Report effective date; or
• Other report-specific dates that verify the income determination date.
The only information that PHAs are permitted to use to determine income under this method is the total income determination made by the federal means-tested program administrator. Other federal programs may provide additional information about income inclusions and exclusions in their award letters; however, these determinations and any other information must not be considered by the PHA. PHAs are not permitted to mix and match Safe Harbor income determinations and other income verifications.
If the PHA is unable to obtain Safe Harbor documentation or if the family disputes the other program’s income determination, the PHA must calculate the family’s annual income using traditional methods as outlined in Notice PIH 2023-27 and this chapter.
If the PHA uses a Safe Harbor determination to determine the family’s income, the family is obligated to report changes in income that meet the PHA’s reporting requirement and occur after the effective date of the transaction.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-6 The amounts of unreimbursed reasonable attendant care expenses and child-care expenses deducted from a family’s annual income, except for when a family is approved for a child-care expense hardship exemption, must still be capped by the amount earned by any family member who is enabled to work as a result of the expense. PHAs are therefore required to obtain thirdparty verification of the applicable employment income and cap the respective expense deductions accordingly.
PHA Policy
When available and applicable, the PHA will accept other programs’ Safe Harbor determinations of income at annual reexamination to determine the family’s total annual income. The PHA will still require third-party verification of all deductions such as the health and medical care expense or child care expense deductions. Further, if the family is eligible for and claims the disability assistance expense or child care expense deductions, where applicable, the PHA will obtain third-party verification of the amount of employment income of the individual(s) enabled to work in order to cap the respective expenses as required.
Prior to using any Safe Harbor determination from another program, the PHA will ask the family if they agree with the income amounts listed. If the family disputes the income amounts on the Safe Harbor determination, the PHA will obtain third-party verification of all sources of income and assets (as applicable).
The PHA will not accept other programs’ determinations of income for any new admission or interim reexamination.
With the exception of income determinations made under the Low-Income Housing Tax Credit (LIHTC) program, the PHA will accept Safe Harbor determinations from any of the programs listed above.
In order to be acceptable, the income determination must:
Be dated within 12 months of the dates listed above;
State the family size;
Be for the entire family (i.e., the family members listed in the documentation must match the family’s composition in the assisted unit, except for household members); and
Must state the amount of the family’s annual income.
The determination need not list each source of income individually. If the PHA does not receive any acceptable income determination documentation or is unable to obtain documentation, then the PHA will revert to third-party verification of income for the family.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-7 When families present multiple verifications from the same or different acceptable Safe Harbor programs, the PHA will use the most recent income determination, unless the family presents acceptable evidence that the PHA should consider an alternative verification from a different Safe Harbor source.
When the PHA uses a Safe Harbor income determination from another program, and the family’s income subsequently changes, the family is required to report the change to the PHA. Depending on when the change occurred, the change may or may not impact the PHA’s calculation of the family’s total annual income. Changes that occur between the time the PHA receives the Safe Harbor documentation and the effective date of the family’s annual reexam will not be considered. If the family has a change in income that occurs after the annual reexam effective date, the PHA will conduct an interim reexam if the change meets the requirements for performing an interim reexamination as outlined in Chapter 9. In this case, the PHA will use third-party verification to verify the change.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-8 7-I.C. STREAMLINED INCOME DETERMINATIONS [24 CFR 960.257(c); Notice PIH 2023-27]
HUD permits PHAs to streamline the income determination process for family members with fixed sources of income. While third-party verification of all income sources must be obtained during the intake process and every three years thereafter, in the intervening years, the PHA may determine income from fixed sources by applying a verified cost of living adjustment (COLA) or other inflationary adjustment factor. Streamlining policies are optional. The PHA may, however, obtain third-party verification of all income, regardless of the source. Further, upon request of the family, the PHA must perform third-party verification of all income sources.
Fixed sources of income include Social Security and SSI benefits, pensions, annuities, disability or death benefits, and other sources of income subject to a COLA or rate of interest. The determination of fixed income may be streamlined even if the family also receives income from other non-fixed sources.
Two streamlining options are available, depending upon the percentage of the family’s income that is received from fixed sources.
When 90 percent or more of a family’s unadjusted income is from fixed sources, the PHA may apply the inflationary adjustment factor to the family’s fixed-income sources, provided that the family certifies both that 90 percent or more of their unadjusted income is fixed and that their sources of fixed income have not changed from the previous year. Sources of non-fixed income are not required to be adjusted and must not be adjusted by a COLA, but PHAs may choose to adjust sources of non-fixed income based on third-party verification. PHAs have the discretion to either adjust the non-fixed income or carry over the calculation of non-fixed income from the first year to years two and three.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-9 When less than 90 percent of a family’s unadjusted income consists of fixed income, PHAs may apply a COLA to each of the family’s sources of fixed income. PHAs must determine all other income using standard verification requirements as outlined in Notice PIH 2023-27.
PHA Policy
When the PHA does not use a Safe Harbor income determination from a federal assistance program to determine the family’s annual income as outlined above, then PHA will use a streamlined income determinations where applicable.
If 90 percent or more of a family’s unadjusted income is from fixed income sources:
The PHA will streamline the annual reexamination process by applying the verified inflationary adjustment factor to fixed-income sources.
The family will be required to sign a self-certification stating that 90 percent or more of their unadjusted income is fixed income and that their sources of fixed income have not changed from the previous year.
The PHA will document in the file how the determination that a source of income was fixed was made.
Third-party verification of non-fixed income will be obtained annually regardless of the percentage of family income received from fixed sources.
If the family’s sources of fixed income have changed from the previous year, the PHA will obtain third-party verification of any new sources of fixed income.
When less than 90 percent of a family’s unadjusted income consists of fixed income:
The PHA will apply a COLA to each of the family’s sources of fixed income.
All other income will be verified using third-party verification as outlined in Notice PIH 2023-27 and Chapter 7 of this policy.
In the following circumstances, regardless of the percentage of income received from fixed sources, the PHA will obtain third-party verification as outlined in Notice PIH 2023-27 and Chapter 7 of this policy:
Of all assets when net family assets exceed $50,000;
Of all deductions and allowances from annual income;
If a family member with a fixed source of income is added; If verification of the COLA or rate of interest is not available; During the intake process and at least once every three years thereafter.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-10 7-I.D. VERIFICATION HIERARCHY [Notice PIH 2023-27]
When the PHA does not use a streamlined determination of income or an income determination from a means-tested federal assistance program, HUD requires the PHA to obtain third-party verification of:
• Reported family annual income;
• The value of net family assets when the net value exceeds $50,000 (as adjusted annually); • Expenses related to deductions from annual income; and • Other factors that affect the determination of adjusted income.
HUD mandates the use of the EIV system and offers administrative guidance on the use of other methods to verify family information and specifies the circumstances in which each method will be used. In general, HUD requires the PHA to use the most reliable form of verification that is available and to document the reasons when the PHA uses a lesser form of verification.
HUD developed a hierarchy that described verification documentation from most acceptable to least acceptable. The PHA must demonstrate efforts to obtain third party verification prior to accepting self-certification except instances when self-certification is explicitly allowed.
In order of priority, the hierarchy is:
• Highest: Level 6: Up-front Income Verification (UIV) using HUD’s Enterprise Income Verification (EIV) system
• Highest: Level 5: Up-front Income Verification (UIV) using a non-EIV system • High: Level 4:
- Written third-party verification from the source, also known as “tenant-provided verification”
- Or EIV plus self-certification
• Medium: Level 3: Written third-party verification form • Medium: Level 2: Oral third-party verification
• Low: Level 1: Self-certification (not third-party verification) Each of the verification methods is discussed in subsequent sections below.
File Documentation
The PHA must document in the file how the figures used in income and rent calculations were determined. All verification attempts, information obtained, and decisions reached during the verification process will be recorded in the family’s file in sufficient detail to demonstrate that the PHA has followed all of the verification policies set forth in this ACOP. The record should be sufficient to enable a staff member or HUD reviewer to understand the process followed and conclusions reached.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-11 7-I.E. LEVEL 5 AND 6 VERIFICATION: UP-FRONT INCOME VERIFICATION (UIV) Up-front income verification (UIV) refers to the PHA’s use of the verification tools available from independent sources that maintain computerized information about earnings and benefits for a number of individuals. PHAs may use UIV sources before or during a family reexamination.
UIV will be used to the extent that these systems are available to the PHA.
There may be legitimate differences between the information provided by the family and UIVgenerated information. If the family disputes the accuracy of UIV data, no adverse action can be taken until the PHA has independently verified the UIV information and the family has been granted the opportunity to contest any adverse findings through the PHA's informal review/hearing processes.
Upfront Income Verification Using HUD’s Enterprise Income Verification (EIV) System PHAs must use HUD’s EIV system in its entirety as a third-party source to verify tenant employment and income information during annual and streamlined reexaminations of family composition and income in accordance with 24 CFR 5.236 and Notice PIH 2023-27.
HUD’s EIV system contains data showing earned income, unemployment benefits, social security benefits, and SSI benefits for participant families.
The income validation tool (IVT) in EIV provides projections of discrepant income for wages, unemployment compensation, and SSA benefits pursuant to HUD’s data sharing agreements with other departments.
The following policies apply to the use of HUD’s EIV system.
EIV Income and IVT Reports
PHAs are required to obtain an EIV Income and IVT report for each family any time the PHA conducts an annual reexamination. However, PHAs are not required to use the EIV Income and IVT reports:
• At annual reexamination if the PHA used Safe Harbor verification from another means-test federal assistance program to determine the family’s income; or • During any interim reexaminations.
The EIV Income and IVT Reports are also not available for program applicants at admission.
When required to use the EIV Income Report, in order for the report to be considered current, the PHA must pull the report within 120 days of the effective date of the annual reexamination.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-12 The EIV Income Report may be used to verify and calculate income at annual reexamination if the family self-certifies that the amount is accurate and representative of current income. The family must be provided with the information in EIV.
PHA Policy
Except for when Safe Harbor verification from another means-tested federal assistance program is used to determine the family’s annual income, the PHA will obtain EIV Income and IVT reports for all annual reexaminations for all families on a monthly basis.
Reports will be generated as part of the regular reexamination process. The PHA will ensure that all EIV Income Reports are pulled within 120 days of the effective date of the annual reexamination.
Income and IVT reports will only be used for interim reexaminations as necessary. For example, EIV may be used to verify that families claiming zero income are not receiving income from any sources listed in EIV.
Income and IVT reports will be retained in resident files with the applicable annual documents or interim reexamination documents (if applicable) for the duration of tenancy.
When the PHA determines through EIV reports and third-party verification that a family has concealed or under-reported income, corrective action will be taken pursuant to the policies in Chapter 15, Program Integrity.
New Hires Report [Notice PIH 2023-27]
The New Hires Report identifies participant families who have new employment within the last six months. The report is updated monthly.
PHAs must review this information at annual reexamination except when the PHA uses Safe Harbor verification from another means-tested federal assistance program to determine the family’s income.
PHAs that do not require families to undergo interim reexaminations for earned income increases after an interim decrease are not required to review this report between a family’s annual reexamination. If the PHA requires an interim for increases in earned income after an interim decrease, then the PHA must review the report quarterly after the family’s interim decrease.
PHA Policy
In accordance with PHA policies in Chapter 9, the PHA does not process interim reexaminations for families who have increases in earned income. Except for instances in which the PHA uses Safe Harbor income determinations to determine a family’s annual income, the PHA will only review the New Hires Report at annual reexamination.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-13 No Income Reported by HHS or SSA Report
This report is a tool for PHAs to identify participants who passed the SSA identity test, but no income information was reported by either HHS or SSA records. This scenario does not mean that they tenant does not have any income. PHAs obtain written, third-party verification of any income reported by the tenant. The PHA must identify in its policies and procedures when this report will be pulled [Notice PIH 2023-27].
PHA Policy
The PHA will generate the No Income Reported by HHS or SSA Report quarterly and will retain the report.
The PHA will re-verify the status of tenants identified on the report quarterly. Based on the information provided by the family and in EIV, the PHA may require that family members provide verifications or sign release forms in order to obtain additional verification.
When the PHA determines through this report and third-party verification that a family has concealed or under-reported income, corrective action will be taken pursuant to the policies in Chapter 15, Program Integrity.
EIV Identity Verification Report
The EIV system verifies resident identities against Social Security Administration (SSA) records.
These records are compared to HUD data for a match on social security number, name, and date of birth.
PHAs are required to use EIV’s Identity Verification Report on a monthly basis to improve the availability of income information in EIV [Notice PIH 2023-27].
When identity verification for a resident fails, a message will be displayed within the EIV system and no income information will be displayed.
PHA Policy
The PHA will identify residents whose identity verification has failed by reviewing EIV’s Identity Verification Report on a monthly basis.
The PHA will attempt to resolve discrepancies by obtaining appropriate documentation from the tenant. When the PHA determines that discrepancies exist as a result of PHA errors, such as spelling errors or incorrect birth dates, it will correct the errors promptly.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-14 Deceased Tenants Reports [Notice PIH 2012-4 and Notice PIH 2023-27] The Deceased Tenant Report identifies residents that have been reported by the SSA as deceased. The PHA is required to review the report at least quarterly.
PHA Policy
The PHA will review the Deceased Tenants Report on a monthly basis.
When the Deceased Tenants Report identifies an individual as being deceased, PHAs must immediately send a letter to the head of household or emergency contact person (if the head of household is deceased and there is no other adult household member) to confirm the death of the listed household member. The PHA must conduct a home visit to determine if anyone is residing in the unit.
PHAs are required to list the move-out date for the family as of the date on which the family or designee of the deceased tenant’s estate returned the keys and signed a vacate notice; the date the public housing lease was terminated; or the date the PHA legally regained possession of the unit, whichever occurs first.
When the only remaining household member is the live-in aide, the live-in aide is not entitled or eligible for continued occupancy. The PHA may not designate the live-in aide as the new head of household or change the relation code on the Form HUD-50058.
Other EIV Reports [Notice PIH 2023-27]
The PHA is required to review the Multiple Subsidy Report at least quarterly and the Failed EIV Pre-Screening and Failed Verification (Failed SSA Identity Test) reports at least monthly.
Upfront Income Verification Using Non-HUD Systems
HUD encourages PHAs to utilize other upfront verification sources such as the Work Number and web-based state benefits systems.
PHA Policy
The PHA will inform all applicants and residents of its use of the following UIV resources:
[Insert any additional UIV sources used by the PHA]
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-15 7-I.F. LEVEL 4 VERIFICATION [Notice PIH 2023-27]
HUD identifies two types of Level 4 verification: written-third party verification from the source and EIV + self-certification.
EIV + Self-Certification
EIV may be used as written third-party verification and may be used to calculate income if the family agrees with the information in EIV and self-certifies that the amount is accurate and representative of current income. This practice is known as EIV + self-certification. When calculating income using this method, the PHA may use its discretion to determine which method of calculation is reasonable: the last four quarters combined or an average of any number of quarters. The family must be provided with the information from EIV.
PHA Policy
At annual reexamination, if the PHA is unable to use a determination of income from a means-tested federal assistance program and if there are no reported changes to an income source, the PHA will use EIV + self-certification as verification of employment income, provided the family agrees with the amounts listed in EIV.
The PHA will use an average of the last two quarters of income listed in EIV to determine income from employment. The PHA will provide the family with the information in EIV. The family will be required to sign a self-certification stating that the amount listed in EIV is accurate and representative of current income. If the family disagrees with the amount in EIV, the amount is not reflective of current income, or if less than two quarters are available in EIV, the PHA will use written third-party verification from the source as outlined below.
The PHA will not use this method of verification at new admission since EIV is not available for applicant families or at interim reexamination since the income information in EIV is not current.
Written Third-Party Verification from the Source
Written, third-party verification from the source is also known as “tenant-provided verification.” In order to qualify as written-third party verification from the source, the documents must be original or authentic and (generally) dated within 120 days of the date received by the PHA. For fixed-income sources, a statement dated within the appropriate benefit year is acceptable documentation. Documents may be supplied by the family or received from a third-party source.
Examples of acceptable tenant-provided documents include, but are not limited to pay stubs, payroll summary reports, employer notice or letters of hire and termination, SSA benefit verification letters, bank statements, child support payment stubs, welfare benefit letters and/or printouts, and unemployment monetary benefit notices. Income tax returns with corresponding official tax forms and schedules attached and including third-party receipt of transmission for income tax return filed (i.e., tax preparer’s transmittal receipt, summary of transmittal from online source, etc.) are an acceptable form of written, third-party verification.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-16 The PHA is required to obtain, at minimum, two current and consecutive pay stubs when calculating income using third-party verification from the source. For new income sources or when two pay stubs are not available, the PHA should determine income based on the information from a traditional written, third-party verification form or the best available information.
When the family disputes EIV-reported employment income, the PHA uses written third-party verification.
When verification of assets is required, PHAs are required to obtain a minimum of one statement that reflects the current balance of banking/financial accounts.
PHA Policy
In general, the PHA will use third-party verification from the source in the following circumstances:
At annual reexamination when EIV + self-certification is not used; For all new admissions; and
For all interim reexaminations.
The PHA will not use this method if the PHA is able to use an income determination from a means-tested federal assistance program or if the PHA uses EIV + selfcertification as outlined above.
In general, third-party documents provided by the family or the source must be dated within 120 days of the date received by the PHA. However, for fixed-income sources, a statement dated within the appropriate benefit year is acceptable documentation.
The PHA may reject documentation provided by the family if the document is not an original, if the document appears to be forged, or if the document is altered, mutilated, or illegible. If the PHA determines that third-party documents provided by the family are not acceptable, the PHA will explain the reason to the family and request additional documentation from the family or will use a lower form of verification such as a written third-party verification form.
When verification of assets held by a banking or financial institution is required, the PHA will obtain one statement that reflects the current balance of the account.
When pay stubs are used, the PHA will require the family to provide the two most current, consecutive pay stubs. At the PHA’s discretion, if additional paystubs are needed due to the family’s circumstances (e.g., sporadic income, fluctuating schedule, etc.), the PHA may request additional paystubs or a payroll record.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-17 7-I.G. LEVEL 3 VERIFICATION: WRITTEN, THIRD-PARTY FORM
[Notice PIH 2023-27]
This type of verification is a form developed by the PHA and used uniformly for all families when needed to collect information from a third-party source. This is known as “traditional thirdparty verification.” PHAs send a PHA-developed form directly to the third-party source by mail, fax, or email and the source completes the form by hand (in writing or typeset).
The PHA may use this method when higher forms are unavailable or are rejected by the PHA or when the family is unable to provide acceptable verification. The PHA may skip this level of verification and may instead substitute oral third-party verification before moving to selfcertification.
PHA Policy
Typically, the PHA will attempt to send written third-party verification forms to the verification source whenever higher forms of verification are unavailable.
However, on a case-by-case basis, the PHA may choose to obtain oral third-party verification without first attempting, and in lieu of, a written-third party verification form.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-18 7-I.H. LEVEL 2: ORAL THIRD-PARTY VERIFICATION [Notice PIH 2023-27] For third-party oral verification, PHAs contact sources, identified by UIV techniques or by the family, by telephone or in person.
Third-party oral verification may be used when requests for written third-party verification forms have not been returned within a reasonable time—e.g., 10 business days.
PHAs must document in the file the date and time of the telephone call or visit, the name of the person contacted, the telephone number, as well as the information confirmed.
The PHA may skip this level of verification if they attempted written third-party verification via a form and the source did not respond and move directly to self-certification.
PHA Policy
In general, the PHA will attempt to obtain written third-party verification via a form from the verification source. If written third-party verification forms are not returned within 10 business days, the PHA will accept self-certification from the family without attempting to obtain oral third-party verification.
However, if the PHA chooses to obtain oral third-party verification, the PHA will document in the file the date and time of the telephone call or visit, the name of the person contacted and the telephone number, as well as the information confirmed.
When Third-Party Verification is Not Required [Notice PIH 2023-27] Third-party verification may not be available in all situations. HUD has acknowledged that it may not be cost-effective or reasonable to obtain third-party verification of income, assets, or expenses when these items would have a minimal impact on the family’s total tenant payment.
PHA Policy
If the family cannot provide original documents, the PHA will pay the service charge required to obtain third-party verification, unless it is not cost effective in which case a self-certification will be acceptable as the only means of verification. The cost of verification will not be passed on to the family.
The cost of postage and envelopes to obtain third-party verification of income, assets, and expenses is not an unreasonable cost [VG, p. 18].
Primary Documents
Third-party verification is not required when legal documents are the primary source, such as a birth certificate or other legal documentation of birth.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-19 7-I.I. LEVEL 1: NON-THIRD-PARTY VERIFICATION TECHNIQUE: SELFCERTIFICATION [Notice PIH 2023-27] Non-third-party verification consists of a signed statement of reported income and/or expenses.
This verification method should be used as a last resort when the PHA has not been successful in obtaining information via all other required verification techniques.
Self-certification, however, is an acceptable form of verification when:
• A source of income is fully excluded;
• Net family assets total $50,000 or less and the PHA has adopted a policy to accept selfcertification; • The family declares that they do not have any present ownership in any real property; • A family states that they have non-recurring income that will not be repeated in the coming year; and/or
• The PHA has adopted a policy to implement streamlined annual recertifications for fixed sources of income.
When the PHA was required to obtain third-party verification but instead relies on selfcertification, the family’s file must be documented to explain why third-party verification was not available.
HUD does not require that a self-certification be notarized; however, HUD recommends including language on any self-certification to ensure the certifier understands the consequences of knowingly providing false information.
PHA Policy
When information cannot be verified by a third party or by review of documents, family members will be required to submit self-certifications attesting to the accuracy of the information they have provided to the PHA.
The PHA may require a family to certify that a family member does not receive a particular type of income or benefit.
The self-certification must be made in a format acceptable to the PHA and must be signed by the family member whose information or status is being verified.
All self-certifications will include the following language:
“I/We, the undersigned, certify under penalty of perjury that the information provided here is true and correct, to the best of my knowledge and recollection. WARNING:
Anyone who knowingly submits a false claim or knowingly makes a false statement is subject to criminal and/or civil penalties, including confinement for up to five years, fines, and civil and administrative penalties (18 U.S.C. 287, 1001, 1010, 1012; 31 U.S.C. 3279, 3802).”
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-21 PART II: VERIFYING FAMILY INFORMATION
7-II.A. VERIFICATION OF LEGAL IDENTITY
PHA Policy
The PHA will require families to furnish verification of legal identity for each household member.
Verification of Legal Identity for Adults Verification of Legal Identity for Children
Certificate of birth, naturalization papers
Church issued baptismal certificate
Current, valid driver’s license or
Department of Motor Vehicle
identification card
U.S. military discharge (DD 214)
Current U.S. passport
Current government employer
identification card with picture
Certificate of birth
Adoption papers
Custody agreement
Health and Human Services ID
Certified school records
If a document submitted by a family is illegible for any reason or otherwise questionable, more than one of these documents may be required.
If none of these documents can be provided and at the PHA’s discretion, a third party who knows the person may attest to the person’s identity. The certification must be provided in a format acceptable to the PHA and be signed by the family member whose information or status is being verified.
Legal identity will be verified for all applicants at the time of eligibility determination and in cases where the PHA has reason to doubt the identity of a person representing themselves to be a tenant or a member of a tenant family.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-22 7-II.B. SOCIAL SECURITY NUMBERS [24 CFR 5.216 and Notice PIH 2023-27] The family must provide documentation of a valid Social Security number (SSN) for each member of the household, with the exception of individuals who do not contend eligible immigration status. Exemptions also include, existing residents who were at least 62 years of age as of January 31, 2010, and had not previously disclosed an SSN.
The PHA must accept the following documentation as acceptable evidence of the social security number:
• An original SSN card issued by the Social Security Administration (SSA) • An original SSA-issued document, which contains the name and SSN of the individual • An original document issued by a federal, state, or local government agency, which contains the name and SSN of the individual
While PHAs must attempt to gather third-party verification of SSNs prior to admission as listed above, PHAs also have the option of accepting a self-certification and a third-party document (such as a bank statement, utility or cell phone bill, or benefit letter) with the applicant’s name printed on it to satisfy the SSN disclosure requirement if the PHA has exhausted all other attempts to obtain the required documentation. If verifying an individual’s SSN using this method, the PHA must document why the other SSN documentation was not available.
If the tenant’s SSN becomes verified in EIV, then no further verification is required. If the tenant’s SSN fails the SSA identity match, then the PHA must obtain a valid SSN card issued by the SSA or an original document issued by a federal or state government agency that contains the name of the individual and the SSN of the individual, along with other identifying information of the individual. The tenant’s assistance must be terminated if they fail to provide the required documentation.
PHA Policy
The PHA will verify an individual’s SSN in the situations described above using the method described above as a last resort when no other forms of verification of the individual’s SSN are available.
The PHA may only reject documentation of an SSN provided by an applicant or resident if the document is not an original document, if the original document has been altered, mutilated, is illegible, or if the document appears to be forged.
PHA Policy
The PHA will explain to the applicant or resident the reasons the document is not acceptable and request that the individual obtain and submit acceptable documentation of the SSN to the PHA within 90 days.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-23 If an applicant family includes a child under 6 years of age who joined the household within the 6 months prior to the date of program admission, an otherwise eligible family may be admitted and must provide documentation of the child’s SSN within 90 days. A 90-day extension will be granted if the PHA determines that the resident’s failure to comply was due to unforeseen circumstances and was outside of the resident’s control.
PHA Policy
The PHA will grant one additional 90-day extension if needed for reasons beyond the applicant’s control, such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency.
When a resident requests to add a new household member who is at least 6 years of age, or who is under the age of 6 and has an SSN, the resident must provide the complete and accurate SSN assigned to each new member at the time of reexamination or recertification, in addition to the documentation required to verify it. The PHA may not add the new household member until such documentation is provided.
When a resident requests to add a new household member who is under the age of 6 and has not been assigned an SSN, the resident must provide the SSN assigned to each new child and the required documentation within 90 calendar days of the child being added to the household. A 90- day extension will be granted if the PHA determines that the resident’s failure to comply was due to unforeseen circumstances and was outside of the resident’s control. During the period the PHA is awaiting documentation of the SSN, the child will be counted as part of the assisted household.
PHA Policy
The PHA will grant one additional 90-day extension if needed for reasons beyond the resident’s control such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency.
Social security numbers must be verified only once during continuously assisted occupancy.
PHA Policy
The PHA will verify each disclosed SSN by:
Obtaining documentation from applicants and residents that is acceptable as evidence of social security numbers
Making a copy of the original documentation submitted, returning it to the individual, and retaining a copy in the file folder
Once the individual’s verification status is classified as “verified,” the PHA may, at its discretion, remove and destroy copies of documentation accepted as evidence of social security numbers. The retention of the EIV Summary Report or Income Report is adequate documentation of an individual’s SSN.
PHA Policy
Once an individual’s status is classified as “verified” in HUD’s EIV system, the PHA will not remove and destroy copies of documentation accepted as evidence of social security numbers.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-24 7-II.C. DOCUMENTATION OF AGE
A birth certificate or other official record of birth is the preferred form of age verification for all family members. For elderly family members an original document that provides evidence of the receipt of social security retirement benefits is acceptable.
PHA Policy
If an official record of birth or evidence of social security retirement benefits cannot be provided, the PHA will require the family to submit other documents that support the reported age of the family member (e.g., school records, driver's license if birth year is recorded) and to provide a self-certification.
Age must be verified only once during continuously assisted occupancy.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-25 7-II.D. FAMILY RELATIONSHIPS
Applicants and tenants are required to identify the relationship of each household member to the head of household. Definitions of the primary household relationships are provided in the Eligibility chapter.
PHA Policy
Family relationships are verified only to the extent necessary to determine a family’s eligibility and level of assistance. Certification by the head of household normally is sufficient verification of family relationships.
Marriage
PHA Policy
Certification by the head of household is normally sufficient verification. If the PHA has reasonable doubts about a marital relationship, the PHA will require the family to document the marriage with a marriage certificate or other documentation to verify that the couple is married.
In the case of a common law marriage, the couple must demonstrate that they hold themselves to be married (e.g., by telling the community they are married, calling each other husband and wife, using the same last name, filing joint income tax returns).
Separation or Divorce
PHA Policy
Certification by the head of household is normally sufficient verification. If the PHA has reasonable doubts about a divorce or separation, the PHA will require the family to provide documentation of the divorce or separation with a certified copy of a divorce decree, signed by a court officer; a copy of a court-ordered maintenance or other court record; or other documentation that shows a couple is divorced or separated.
If no court document is available, documentation from a community-based agency will be accepted.
Absence of Adult Member
PHA Policy
If an adult member who was formerly a member of the household is reported to be permanently absent, the family must provide evidence to support that the person is no longer a member of the family (e.g., documentation of another address at which the person resides such as a lease or utility bill), if the PHA so requests.
Foster Children and Foster Adults
PHA Policy
Third-party verification from the state or local government agency responsible for the placement of the individual with the family is required.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-26 7-II.E. VERIFICATION OF STUDENT STATUS
PHA Policy
The PHA requires families to provide information about the student status of all students who are 18 years of age or older. This information will be verified only if:
The family claims full-time student status for an adult other than the head, spouse, or cohead, or
The family claims a child care deduction to enable a family member to further their education.
7-II.F. DOCUMENTATION OF DISABILITY
The PHA must verify the existence of a disability in order to allow certain income disallowances and deductions from income. The PHA is not permitted to inquire about the nature or extent of a person’s disability [24 CFR 100.202(c)]. The PHA may not inquire about a person’s diagnosis or details of treatment for a disability or medical condition. If the PHA receives a verification document that provides such information, the PHA will not place this information in the tenant file. Under no circumstances will the PHA request a resident’s medical record(s). For more information on health care privacy laws, see the Department of Health and Human Services’ Web site at www.os.dhhs.gov.
The PHA may make the following inquiries, provided it makes them of all applicants, whether or not they are persons with disabilities [VG, p. 24]:
• Inquiry into an applicant’s ability to meet the requirements of ownership or tenancy • Inquiry to determine whether an applicant is qualified for a dwelling available only to persons with disabilities or to persons with a particular type of disability • Inquiry to determine whether an applicant for a dwelling is qualified for a priority available to persons with disabilities or to persons with a particular type of disability • Inquiry about whether an applicant for a dwelling is a current illegal abuser or addict of a controlled substance
• Inquiry about whether an applicant has been convicted of the illegal manufacture or distribution of a controlled substance
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-27 Family Members Receiving SSA Disability Benefits
Verification of receipt of disability benefits from the Social Security Administration (SSA) is sufficient for verification of disability for the purpose of qualification for waiting list preferences or certain income disallowances and deductions [VG, p. 23].
PHA Policy
For family members claiming disability who receive disability payments from the SSA, the PHA will attempt to obtain information about disability benefits through HUD’s Enterprise Income Verification (EIV) system. If documentation is not available through HUD’s EIV system, the PHA will request a current (dated within the last 60 days) SSA benefit verification letter from each family member claiming disability status. If a family member is unable to provide the document, the PHA will ask the family to obtain a benefit verification letter either by calling SSA at 1-800-772-1213 or by requesting one from www.ssa.gov. Once the family receives the benefit verification letter, they will be required to provide the letter to the PHA.
Family Members Not Receiving SSA Disability Benefits
Receipt of veteran’s disability benefits, worker’s compensation, or other non-SSA benefits based on the individual’s claimed disability are not sufficient verification that the individual meets HUD’s definition of disability in 24 CFR 5.403, necessary to qualify for waiting list preferences or certain income disallowances and deductions.
PHA Policy
For family members claiming disability who do not receive SSI or other disability payments from the SSA, a knowledgeable professional must provide third-party verification that the family member meets the HUD definition of disability. See the Eligibility chapter for the HUD definition of disability. The knowledgeable professional will verify whether the family member does or does not meet the HUD definition.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-28 7-II.G. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5.508] Overview
Housing assistance is not available to persons who are not citizens, nationals, or eligible immigrants. Prorated assistance is provided for "mixed families" containing both eligible and ineligible persons. See the Eligibility chapter for detailed discussion of eligibility requirements.
This chapter (7) discusses HUD and PHA verification requirements related to citizenship status.
The family must provide a certification that identifies each family member as a U.S. citizen, a U.S. national, an eligible noncitizen or an ineligible noncitizen and submit the documents discussed below for each family member. Once eligibility to receive assistance has been verified for an individual it need not be collected or verified again during continuously-assisted occupancy [24 CFR 5.508(g)(5)]
U.S. Citizens and Nationals
HUD requires a declaration for each family member who claims to be a U.S. citizen or national.
The declaration must be signed personally by any family member 18 or older and by a guardian for minors.
The PHA may request verification of the declaration by requiring presentation of a birth certificate, United States passport or other appropriate documentation.
PHA Policy
Family members who claim U.S. citizenship or national status will not be required to provide additional documentation unless the PHA receives information indicating that an individual’s declaration may not be accurate.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-29 Eligible Immigrants
Documents Required
All family members claiming eligible immigration status must declare their status in the same manner as U.S. citizens and nationals.
The documentation required for eligible noncitizens varies depending upon factors such as the date the person entered the U.S., the conditions under which eligible immigration status has been granted, age, and the date on which the family began receiving HUD-funded assistance. Exhibit 7-1 at the end of this chapter summarizes documents family members must provide.
PHA Verification [HCV GB, pp 5-3 and 5-7]
For family members age 62 or older who claim to be eligible immigrants, proof of age is required in the manner described in 7-II.C. of this ACOP. No further verification of eligible immigration status is required.
For family members under the age of 62 who claim to be eligible immigrants, the PHA must verify immigration status with the U.S. Citizenship and Immigration Services (USCIS).
The PHA will follow all USCIS protocols for verification of eligible immigration status. 7-II.H. VERIFICATION OF PREFERENCE STATUS
The PHA must verify any preferences claimed by an applicant that determined their placement on the waiting list.
PHA Policy
The PHA offers a preference for working families, described in Section 4-III.B.
The PHA may verify that the family qualifies for the working family preference based on the family’s submission of the working member’s most recent paycheck stub indicating that the working member works at least 20 hours per week. The paycheck stub must have been issued to the working member within the last thirty days.
The PHA may also seek third party verification from the employer of the head, spouse, cohead or sole member of a family requesting a preference as a working family.
The PHA also offers a preference for victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking as described in Section 4-III.B. To verify that applicants qualify for the preference, the PHA will follow documentation requirements outlined in Section 16-VII.D.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-31 PART III: VERIFYING INCOME AND ASSETS
Chapter 6 of this ACOP describes in detail the types of income that are included and excluded and how assets and income from assets are handled. Any income reported by the family must be verified. This part provides PHA policies that supplement the general verification procedures specified in Part I of this chapter.
PHA Policy
The following policies do not apply when the PHA uses a safe harbor income determination from a means-tested federal assistance program. 7-III.A. EARNED INCOME
Tips
PHA Policy
Unless tip income is included in a family member’s W-2 by the employer or in UIV verification sources, persons who work in industries where tips are standard will be required to sign a certified estimate of tips received for the prior year or tips anticipated to be received in the coming year.
Wages
PHA Policy
When the PHA requires third-party verification of wages, for wages other than tips, the family must provide originals of the two most current, consecutive pay stubs.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 7-32 7-III.B. BUSINESS AND SELF EMPLOYMENT INCOME
The PHA must obtain written, third-party verification when the income type is not available in EIV. This includes income from self-employment.
PHA Policy
Business owners and self-employed persons will be required to provide:
Income tax returns with corresponding official tax forms and schedules attached and including third-party receipt of transmission for income tax return filed (i.e., tax preparer’s transmittal receipt, summary of transmittal from online source, etc.).
If accelerated depreciation was used on the tax return or financial statement, an accountant's calculation of depreciation expense, computed using straight-line depreciation rules.
For self-employed individuals who claim they do not have to file tax returns, the PHA will obtain a completed copy of IRS Form 4506-T to verify that no return has been filed.
For those employed in “gig employment” (i.e., those in formal agreements with ondemand companies such as Uber, Lyft, or DoorDash), the PHA will provide a format for the individual to declare their income and expenses. The PHA will also review the printed statement of monthly income from the applicable app for all hours worked and pay received as well as Schedule C of the individual’s tax return and the corresponding IRS Form 1099 or 1099k.
The PHA will provide a format for any person who is unable to provide such a statement to record income and expenses for the coming year. The business owner/self-employed person will be required to submit the information requested and to certify to its accuracy at all future reexaminations. At any reexamination the PHA may request documents that support submitted financial statements such as manifests, appointment books, cash books, or bank statements.