Chapter 14
GRIEVANCES AND APPEALS
INTRODUCTION
This chapter discusses grievances and appeals pertaining to PHA actions or failures to act that adversely affect public housing applicants or residents. The policies are discussed in the following three parts:
Part I: Informal Hearings for Public Housing Applicants. This part outlines the requirements and procedures for informal hearings for public housing applicants.
Part II: Informal Hearings with Regard to Noncitizens. This part discusses informal hearings regarding citizenship status and where they differ from the requirements for general applicant and tenant grievances.
Part III: Grievance Procedures for Public Housing Residents. This part outlines the requirements and procedures for handling grievances for public housing residents.
Note that this chapter is not the PHA’s grievance procedure. The grievance procedure is a document separate from the ACOP. This chapter of the ACOP provides the policies that drive the grievance procedure. A sample grievance procedure is provided as Exhibit 14-1. However, please note that the procedure provided is only a sample and is designed to match up with the default policies in the model ACOP. As such, the PHA would need to modify accordingly should any alternative policy decisions be adopted.
PART I: INFORMAL HEARINGS FOR PUBLIC HOUSING APPLICANTS 14-I.A. OVERVIEW
When the PHA makes a decision that has a negative impact on an applicant family, the family is often entitled to appeal the decision. For applicants, the appeal takes the form of an informal hearing. HUD regulations do not provide a structure for or requirements regarding informal hearings for applicants (except with regard to citizenship status, to be covered in Part II). This part discusses the PHA policies necessary to respond to applicant appeals through the informal hearing process.
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14-I.B. INFORMAL HEARING PROCESS [24 CFR 960.208(a) and PH Occ GB, p. 58] Informal hearings are provided for public housing applicants. An applicant is someone who has applied for admission to the public housing program but is not yet a tenant in the program.
Informal hearings are intended to provide a means for an applicant to dispute a determination of ineligibility for admission to a project [24 CFR 960.208(a)]. Applicants to public housing are not entitled to the same hearing process afforded tenants under the PHA grievance procedures [24 CFR 966.53(a) and PH Occ GB, p. 58].
Informal hearings provide applicants the opportunity to review the reasons for denial of admission and to present evidence to refute the grounds for denial.
Use of Informal Hearing Process
While the PHA must offer the opportunity of an informal hearing to applicants who have been determined as ineligible for admission, the PHA could make the informal hearing process available to applicants who wish to dispute other PHA actions that adversely affect them.
PHA Policy
The PHA will only offer informal hearings to applicants for the purpose of disputing denials of admission.
Notice of Denial [24 CFR 960.208(a)]
The PHA must give an applicant prompt notice of a decision denying eligibility for admission.
The notice must contain a brief statement of the reasons for the PHA decision and must also state that the applicant may request an informal hearing to dispute the decision. The notice must describe how to obtain the informal hearing.
PHA Policy
As applicable, the PHA’s notice of denial will include information about required or requested remote informal hearings.
When denying eligibility for admission, 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. The notice and self-certification form must accompany the written notification of the denial of eligibility determination.
Prior to notification of denial based on information obtained from criminal or sex offender registration records, the family, in some cases, must be given the opportunity to dispute the information in those records which would be the basis of the denial. See Section 3-III.G for details concerning this requirement.
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Scheduling an Informal Hearing
PHA Policy
A request for an informal hearing must be made in writing and delivered to the PHA either in person or by first class mail, by the close of the business day, no later than 10 business days from the date of the PHA’s notification of denial of admission.
The PHA will schedule and send written notice of the informal hearing within 10 business days of the family’s request.
If the PHA informal hearing will be conducted remotely, at the time the notice is sent to the family, the family will be informed:
Regarding the processes involved in a remote informal hearing; That the PHA will provide technical assistance prior to and during the informal hearing, if needed; and
That if the family or any individual witness has any technological, resource, or accessibility barriers preventing them from fully accessing the remote informal hearing, the family may inform the PHA and the PHA will assist the family in either resolving the issues or allow the family to participate in an in-person informal hearing, as appropriate.
Conducting an Informal Hearing [PH Occ GB, p. 58]
PHA Policy
The informal hearing will be conducted by a person other than the one who made or approved the decision under review, or a subordinate of this person.
The applicant will be provided an opportunity to present written or oral objections to the decision of the PHA.
The person conducting the informal hearing will make a recommendation to the PHA, but the PHA is responsible for making the final decision as to whether admission should be granted or denied.
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Remote Informal Hearings [Notice PIH 2020-32]
There is no requirement that informal hearings be conducted in-person, and as such, HUD allows PHAs to conduct all or a portion of their informal hearings remotely either over the phone, via video conferencing, or through other virtual platforms. If the PHA chooses to conduct remote informal hearings, applicants may still request an in-person informal hearing, as applicable.
PHA Policy
The PHA has the sole discretion to require that informal hearings be conducted remotely in case of local, state, or national physical distancing orders, and in cases of inclement weather or natural disaster.
In addition, the PHA will conduct an informal hearing remotely upon request of the applicant as a reasonable accommodation for a person with a disability, if an applicant does not have child care or transportation that would enable them to attend the informal hearing, or if the applicant believes an in-person informal hearing would create an undue health risk. The PHA will consider other reasonable requests for a remote informal hearing on a case-by-case basis.
Ensuring Accessibility for Persons with Disabilities and LEP Individuals As with in-person informal hearings, the platform for conducting remote informal hearings must be accessible to persons with disabilities and the informal hearing must be conducted in accordance with Section 504 and accessibility requirements. This includes ensuring any information, websites, emails, digital notifications, and other virtual platforms are accessible for persons with vision, hearing, and other disabilities. Further, providing effective communication in a digital context may require the use of individualized auxiliary aids or services, such as audio description, captioning, sign language and other types of interpreters, keyboard accessibility, accessible documents, screen reader support, and transcripts. Auxiliary aids or services must be provided in accessible formats, in a timely manner, and in such a way to protect the privacy and independence of the individual. PHAs may never request or require that individuals with disabilities provide their own auxiliary aids or services, including for remote informal hearings.
If no method of conducting a remote informal hearing is available that appropriately accommodates an individual’s disability, the PHA may not hold against the individual their inability to participate in the remote informal review, and the PHA should consider whether postponing the remote informal hearing to a later date is appropriate or whether there is a suitable alternative.
Due to the individualized nature of disability, the appropriate auxiliary aid or service necessary, or reasonable accommodation, will depend on the specific circumstances and requirements.
As with in-person hearings, Limited English Proficiency (LEP) requirements also apply to remote informal hearings, including the use of interpretation services and document translation.
See Chapter 2 for a more thorough discussion of accessibility and LEP requirements, all of which apply in the context of remote informal hearings.
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Conducting Remote Informal Hearings [Notice PIH 2020-32] The PHA must ensure that the lack of technology or inability to use technology for remote informal hearings does not pose a disadvantage to families that may not be apparent to the PHA.
The PHA should determine through a survey or other means if these barriers exist prior to conducting the remote informal hearing and, if the family does not have the proper technology to fully participate, either postpone the informal hearing or provide an alternative means of access.
As with in-person informal hearings, the PHA must provide all materials presented, whether paper or electronic, to the family prior to the remote informal hearing. The family must also be provided with an accessible means by which to transmit their own evidence.
The PHA must ensure that the applicant has the right to hear and be heard. All PHA policies and processes for remote informal hearings will be conducted in accordance with due process requirements and will be in compliance with HUD regulations at 24 CFR 966.56 and the guidance for conducting remote hearings specified in Notice PIH 2020-32.
PHA Policy
The PHA will conduct remote informal hearings via a video conferencing platform, when available. If, after attempting to resolve any barriers, applicants are unable to adequately access the video conferencing platform at any point, or upon applicant request, the informal hearing will be conducted by telephone conferencing call-in. If the family is unable to adequately access the telephone conferencing call-in at any point, the remote informal hearing will be postponed, and an in-person alternative will be provided promptly within a reasonable time.
At least five business days prior to scheduling the remote hearing, the PHA will provide the family with login information and/or conferencing call-in information and an electronic copy of all materials being presented via first class mail and/or email. The notice will advise the family of technological requirements for the hearing and request the family notify the PHA of any known barriers. The PHA will resolve any barriers using the guidance in Section 6 of Notice PIH 2020-32, including offering the family the opportunity to attend an in-person hearing.
If the informal hearing is to be conducted remotely, the PHA will require the family to provide any documents directly relevant to the informal hearing at least 24 hours before the scheduled hearing through the mail, via email, or text. The PHA will scan and email copies of these documents to the PHA representative and to the person conducting the informal hearing the same day.
Documents will be shared electronically whenever possible.
The PHA will follow up the email with a phone call and/or email to the applicant at least one business day prior to the remote informal hearing to ensure that the applicant received all information and is comfortable accessing the video conferencing or callin platform.
The PHA will ensure that all electronic information stored or transmitted with respect to the informal hearing is secure, including protecting personally identifiable information (PII), and meets the requirements for accessibility for persons with disabilities and persons with LEP.
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Informal Hearing Decision [PH Occ GB, p. 58]
PHA Policy
The PHA will notify the applicant of the PHA’s final decision, including a brief statement of the reasons for the final decision.
In rendering a decision, the PHA will evaluate the following matters:
Whether or not the grounds for denial were stated factually in the notice The validity of grounds for denial of admission. If the grounds for denial are not specified in the regulations or in PHA policy, then the decision to deny assistance will be overturned. See Chapter 3 for a detailed discussion of the grounds for applicant denial.
The validity of the evidence. The PHA will evaluate whether the facts presented prove the grounds for denial of admission. If the facts prove that there are grounds for denial, and the denial is required by HUD, the PHA will uphold the decision to deny admission.
If the facts prove the grounds for denial, and the denial is discretionary, the PHA will consider the recommendation of the person conducting the informal hearing in making the final decision whether to deny admission.
The PHA will notify the applicant of the final decision, including a statement explaining the reason(s) for the decision. The notice will be mailed, with return receipt requested, within 10 business days of the informal hearing, to the applicant and their representative, if any.
If the informal hearing decision overturns the denial, processing for admission will resume.
If the family fails to appear for their informal hearing, the denial of admission will stand and the family will be so notified.
Reasonable Accommodation for Persons with Disabilities [24 CFR 966.7] Persons with disabilities may request reasonable accommodations to participate in the informal hearing process and the PHA must consider such accommodations. The PHA must also consider reasonable accommodation requests pertaining to the reasons for denial if related to the person’s disability. See Chapter 2 for more detail pertaining to reasonable accommodation requests.
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PART II: INFORMAL HEARINGS WITH REGARD TO NONCITIZENS
14-II.A. HEARING AND APPEAL PROVISIONS FOR NONCITIZENS [24 CFR 5.514] Denial or termination of assistance based on immigration status is subject to special hearing and notice rules. These special hearings are referred to in the regulations as informal hearings, but the requirements for such hearings are different from the informal hearings used to deny applicants for reasons other than immigration status.
Assistance to a family may not be delayed, denied, or terminated on the basis of immigration status at any time prior to a decision under the United States Citizenship and Immigration Services (USCIS) appeal process. Assistance to a family may not be terminated or denied while the PHA hearing is pending, but assistance to an applicant may be delayed pending the completion of the informal hearing.
A decision against a family member, issued in accordance with the USCIS appeal process or the PHA informal hearing process, does not preclude the family from exercising the right, that may otherwise be available, to seek redress directly through judicial procedures.
Notice of Denial or Termination of Assistance [24 CFR 5.514(d)] As discussed in Chapters 3 and 13, the notice of denial or termination of assistance for noncitizens must advise the family of any of the following that apply:
• That financial assistance will be denied or terminated and provide a brief explanation of the reasons for the proposed denial or termination of assistance. • The family may be eligible for proration of assistance. • In the case of a tenant, the criteria and procedures for obtaining relief under the provisions for preservation of families [24 CFR 5.514 and 5.518].
• That the family has a right to request an appeal to the USCIS of the results of secondary verification of immigration status and to submit additional documentation or explanation in support of the appeal.
• That the family has a right to request an informal hearing with the PHA either upon completion of the USCIS appeal or in lieu of the USCIS appeal. • For applicants, assistance may not be delayed until the conclusion of the USCIS appeal process, but assistance may be delayed during the period of the informal hearing process.
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United States Citizenship and Immigration Services Appeal Process [24 CFR 5.514(e)] When the PHA receives notification that the USCIS secondary verification failed to confirm eligible immigration status, the PHA must notify the family of the results of the USCIS verification. The family will have 30 days from the date of the notification to request an appeal of the USCIS results. The request for appeal must be made by the family in writing directly to the USCIS. The family must provide the PHA with a copy of the written request for appeal and proof of mailing.
PHA Policy
The PHA will notify the family in writing of the results of the USCIS secondary verification within 10 business days of receiving the results.
The family must provide the PHA with a copy of the written request for appeal and proof of mailing within 10 business days of sending the request to the USCIS.
The family must forward to the designated USCIS office any additional documentation or written explanation in support of the appeal. This material must include a copy of the USCIS document verification request (used to process the secondary request) or such other form specified by the USCIS, and a letter indicating that the family is requesting an appeal of the USCIS immigration status verification results.
The USCIS will notify the family, with a copy to the PHA, of its decision. When the USCIS notifies the PHA of the decision, the PHA must notify the family of its right to request an informal hearing.
PHA Policy
The PHA will send written notice to the family of its right to request an informal hearing within 10 business days of receiving notice of the USCIS decision regarding the family’s immigration status.
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Informal Hearing Procedures for Applicants [24 CFR 5.514(f)] After notification of the USCIS decision on appeal, or in lieu of an appeal to the USCIS, an applicant family may request that the PHA provide a hearing. The request for a hearing must be made either within 30 days of receipt of the PHA notice of denial, or within 30 days of receipt of the USCIS appeal decision.
The informal hearing procedures for applicant families are described below.
Informal Hearing Officer
The PHA must provide an informal hearing before an impartial individual, other than a person who made or approved the decision under review, and other than a person who is a subordinate of the person who made or approved the decision.
Evidence
The family must be provided the opportunity to examine and copy at the family’s expense, at a reasonable time in advance of the hearing, any documents in the possession of the PHA pertaining to the family’s eligibility status, or in the possession of the USCIS (as permitted by USCIS requirements), including any records and regulations that may be relevant to the hearing.
PHA Policy
The family will be allowed to copy any documents related to the hearing at no cost to the family. The family must request discovery of PHA documents no later than 12:00 p.m. on the business day prior to the hearing.
The family must be provided the opportunity to present evidence and arguments in support of eligible status. Evidence may be considered without regard to admissibility under the rules of evidence applicable to judicial proceedings.
The family must also be provided the opportunity to refute evidence relied upon by the PHA, and to confront and cross-examine all witnesses on whose testimony or information the PHA relies.
Representation and Interpretive Services
The family is entitled to be represented by an attorney or other designee, at the family’s expense, and to have such person make statements on the family’s behalf.
The family is entitled to request an interpreter. The PHA is obligated to provide a competent interpreter, free of charge, upon request. The family may also or instead provide its own interpreter, at the expense of the family.
Recording of the Hearing
The family is entitled to have the hearing recorded by audiotape. The PHA may, but is not required to, provide a transcript of the hearing.
PHA Policy
The PHA will not provide a transcript of an audio taped informal hearing.
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Hearing Decision
The PHA must provide the family with a written notice of the final decision, based solely on the facts presented at the hearing, within 14 calendar days of the date of the informal hearing. The notice must state the basis for the decision.
Retention of Documents [24 CFR 5.514(h)]
The PHA must retain for a minimum of 5 years the following documents that may have been submitted to the PHA by the family, or provided to the PHA as part of the USCIS appeal or the PHA informal hearing process:
• The application for assistance
• The form completed by the family for income reexamination • Photocopies of any original documents, including original USCIS documents • The signed verification consent form
• The USCIS verification results
• The request for a USCIS appeal
• The final USCIS determination
• The request for an informal hearing
• The final informal hearing decision
Informal Hearing Procedures for Residents [24 CFR 5.514(f)] After notification of the USCIS decision on appeal, or in lieu of an appeal to the USCIS, a resident family may request that the PHA provide a hearing. The request for a hearing must be made either within 30 days of receipt of the PHA notice of termination, or within 30 days of receipt of the USCIS appeal decision.
The informal hearing procedures for resident families whose tenancy is being terminated based on immigration status is the same as for any grievance under the grievance procedures for resident families found in Part III below.
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PART III: GRIEVANCE PROCEDURES FOR PUBLIC HOUSING RESIDENTS 14-III.A. REQUIREMENTS [24 CFR 966.52]
PHAs must have a grievance procedure in place through which residents of public housing are provided an opportunity to grieve any PHA action or failure to act involving the lease or PHA policies which adversely affect their rights, duties, welfare, or status. The PHA must not only meet the minimal procedural due process requirements provided under the regulations but must also meet any additional requirements imposed by local, state or federal law.
The PHA grievance procedure must be included in, or incorporated by reference in, the lease.
PHA Policy
The PHA grievance procedure will be incorporated by reference in the tenant lease.
The PHA must provide at least 30 days’ notice to tenants and resident organizations setting forth proposed changes in the PHA grievance procedure and provide an opportunity to present written comments. Comments submitted must be considered by the PHA before adoption of any changes to the grievance procedure by the PHA.
PHA Policy
Residents and resident organizations will have 30 calendar days from the date they are notified by the PHA of any proposed changes in the PHA grievance procedure, to submit written comments to the PHA.
The PHA must furnish a copy of the grievance procedure to each tenant and to resident organizations.
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14-III.B. DEFINITIONS [24 CFR 966.53; 24 CFR 966.51(a)(2)(i)] There are several terms used by HUD with regard to public housing grievance procedures, which take on specific meanings different from their common usage. These terms are as follows:
• Grievance – any dispute which a tenant may have with respect to PHA action or failure to act in accordance with the individual tenant’s lease or PHA regulations which adversely affect the individual tenant’s rights, duties, welfare or status • Complainant – any tenant whose grievance is presented to the PHA or at the project management office
• Due Process Determination – a determination by HUD that law of the jurisdiction requires that the tenant must be given the opportunity for a hearing in court which provides the basic elements of due process before eviction from the dwelling unit • Expedited Grievance – a procedure established by the PHA for any grievance or termination that involves:
− Any criminal activity that threatens the health, safety, or right to peaceful enjoyment or the PHA’s public housing premises by other residents or employees of the PHA; or − Any drug-related criminal activity on or off the premises • Elements of Due Process – an eviction action or a termination of tenancy in a state or local court in which the following procedural safeguards are required:
− Adequate notice to the tenant of the grounds for terminating the tenancy and for eviction − Right of the tenant to be represented by counsel
− Opportunity for the tenant to refute the evidence presented by the PHA including the right to confront and cross-examine witnesses and to present any affirmative legal or equitable defense which the tenant may have
− A decision on the merits
• Hearing Officer – an impartial person or selected by the PHA, other than the person who made or approved the decision under review, or a subordinate of that person. The individual or individuals do not need legal training.
• Tenant – the adult person (or persons) (other than a live-in aide) − Who resides in the unit, and who executed the lease with the PHA as lessee of the dwelling unit, or, if no such person now resides in the unit, − Who resides in the unit, and who is the remaining head of household of the tenant family residing in the dwelling unit
• Resident Organization – includes a resident management corporation Item 2.
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14-III.C. APPLICABILITY [24 CFR 966.51]
Grievances could potentially address most aspects of a PHA’s operation. However, there are some situations for which the grievance procedure is not applicable.
The grievance procedure is applicable only to individual tenant issues relating to the PHA. It is not applicable to disputes between tenants not involving the PHA. Class grievances are not subject to the grievance procedure and the grievance procedure is not to be used as a forum for initiating or negotiating policy changes of the PHA.
If HUD has issued a due process determination, a PHA may exclude from the PHA grievance procedure any grievance concerning a termination of tenancy or eviction that involves:
• Any criminal activity that threatens the health, safety or right to peaceful enjoyment of the premises of other residents or employees of the PHA;
• Any violent or drug-related criminal activity on or off such premises; or • Any criminal activity that resulted in felony conviction of a household member In states without due process determinations, PHAs must grant opportunity for grievance hearings for all lease terminations, regardless of cause, with the following exception: PHAs may use expedited grievance procedures for the excluded categories listed above. These expedited grievance procedures are described in Section 14-III.E. below.
If HUD has issued a due process determination, the PHA may evict through the state/local judicial eviction procedures. In this case, the PHA is not required to provide the opportunity for a hearing under the PHA’s grievance procedure as described above.
PHA Policy
The PHA is located in a HUD-declared due process state. Therefore, the PHA will not offer grievance hearings for lease terminations involving criminal activity that threatens the health, safety, or right to peaceful enjoyment of the premises of other residents or employees of the PHA, for violent or drug-related criminal activity on or off the premises, or for any criminal activity that resulted in felony conviction of a household member.
See Chapter 13 for related policies on the content of termination notices.
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14-III.D. INFORMAL SETTLEMENT OF GRIEVANCE [24 CFR 966.54] HUD regulations state that any grievance must be personally presented, either orally or in writing, to the PHA office or to the office of the housing development in which the complainant resides so that the grievance may be discussed informally and settled without a hearing.
PHA Policy
The PHA will accept requests for an informal settlement of a grievance either orally or in writing (including emailed requests), to the PHA office within 10 business days of the grievable event. Within 10 business days of receipt of the request the PHA will arrange a meeting with the tenant at a mutually agreeable time and confirm such meeting in writing to the tenant. The informal settlement may be conducted remotely as required by the PHA or may be conducted remotely upon consideration of the request of the tenant. See 14-III.G for information on how and under what circumstances remote informal settlements may be conducted.
If a tenant fails to attend the scheduled meeting without prior notice, the PHA will reschedule the appointment only if the tenant can show good cause for failing to appear, or if it is needed as a reasonable accommodation for a person with disabilities.
Good cause is defined as an unavoidable conflict which seriously affects the health, safety or welfare of the family.
HUD regulations require that a summary of such discussion will be prepared within a reasonable time and one copy will be given to the tenant and one retained in the PHA’s tenant file.
The summary must specify the names of the participants, dates of meeting, the nature of the proposed disposition of the complaint and the specific reasons therefore, and will specify the procedures by which a hearing may be obtained if the complainant is not satisfied.
PHA Policy
The PHA will prepare a summary of the informal settlement within five business days; one copy to be given to the tenant and one copy to be retained in the PHA’s tenant file.
For PHAs who have the option to establish an expedited grievance procedure, and who exercise this option, the informal settlement of grievances is not applicable to those grievances for which the expedited grievance procedure applies.
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14-III.E. PROCEDURES TO OBTAIN A HEARING
Requests for Hearing and Failure to Request
PHA Policy
The resident must submit a written request (including emailed requests) for a grievance hearing to the PHA within five business days of the tenant’s receipt of the summary of the informal settlement.
If the complainant does not request a hearing, the PHA’s disposition of the grievance under the informal settlement process will become final. However, failure to request a hearing does not constitute a waiver by the complainant of the right to contest the PHA’s action in disposing of the complaint in an appropriate judicial proceeding.
Scheduling of Hearings [24 CFR 966.56(a)]
If the complainant has complied with all requirements for requesting a hearing as described above, a hearing must be scheduled by the hearing officer promptly for a time and place reasonably convenient to both the complainant and the PHA. A written notification specifying the time, place and the procedures governing the hearing must be delivered to the complainant and the appropriate PHA official.
PHA Policy
Within 10 business days of receiving a written request for a hearing, the hearing officer will schedule and send written notice of the hearing to both the complainant and the PHA.
If the PHA hearing will be conducted remotely, at the time the notice is sent to the family, the family will be notified:
Regarding the processes involved in a remote grievance hearing; That the PHA will provide technical assistance prior to and during the hearing, if needed; and
That if the family or any individual witness has any technological, resource, or accessibility barriers, the family may inform the PHA and the PHA will assist the family in either resolving the issue or allow the family to participate in an inperson hearing, as appropriate.
The PHA may wish to permit the tenant to request to reschedule a hearing for good cause.
PHA Policy
The tenant may request to reschedule a hearing for good cause, or if it is needed as a reasonable accommodation for a person with disabilities. Good cause is defined as an unavoidable conflict which seriously affects the health, safety, or welfare of the family.
Requests to reschedule a hearing must be made orally or in writing prior to the hearing date. At its discretion, the PHA may request documentation of the “good cause” prior to rescheduling the hearing.
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Expedited Grievance Procedure [24 CFR 966.52(a)]
The PHA may establish an expedited grievance procedure for any grievance concerning a termination of tenancy or eviction that involves:
• Any criminal activity that threatens the health, safety, or right to peaceful enjoyment of the premises by other residents or employees of the PHA;
• Any drug-related criminal activity on or near such premises; or • Any criminal activity that resulted in felony conviction of a household member.
In such expedited grievances, the informal settlement of grievances as discussed in 14-III.D is not applicable.
The PHA may adopt special procedures concerning expedited hearings, including provisions for expedited notice or scheduling, or provisions for expedited decision on the grievance.
PHA Policy
The PHA will not offer expedited grievance procedures.
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14-III.F. SELECTION OF HEARING OFFICER [24 CFR 966.53(e)] The grievance hearing must be conducted by an impartial person or persons appointed by the PHA, other than the person who made or approved the PHA action under review, or a subordinate of such person. The PHA must describe their policies for selection of a hearing officer in their lease.
PHA Policy
PHA grievance hearings will be conducted by a single hearing officer and not a panel.
The PHA will appoint a staff member who was not involved in the decision under appeal.
If a designated staff member (such as the program manager) was involved in the decision, or is a subordinate of such person, an alternate hearing officer will be selected.
The PHA may select designated staff members who were not involved in the decision under appeal in certain circumstances, such as appeals involving discrimination claims or denials of requests for reasonable accommodations.
PHAs must describe their policies for selection of a hearing officer in their lease forms. Changes to the public housing lease are subject to a 30-day comment period [24 CFR 966.4].
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14-III.G. REMOTE HEARINGS [Notice PIH 2020-32]
There is no requirement that grievance hearings be conducted in-person, and as such, HUD allows PHAs to conduct all or a portion of their grievance hearings remotely either over the phone, via video conferencing, or through other virtual platforms. If the PHA chooses to conduct remote grievance hearings, applicants may still request an in-person hearing, as applicable.
PHA Policy
The PHA has the sole discretion to require that hearings be conducted remotely in case of local, state, or national physical distancing orders, and in cases of inclement weather or natural disaster.
In addition, the PHA will conduct a hearing remotely upon request as a reasonable accommodation for a person with a disability, if a tenant does not have child care or transportation that would enable them to attend the hearing, or if the tenant believes an in-person hearing would create an undue health risk. The PHA will consider other reasonable requests for a remote hearing on a case-by-case basis.
Discovery of Documents Before the Remote Hearing
PHA Policy
If the hearing will be conducted remotely, the PHA will compile a hearing packet, consisting of all documents the PHA intends to produce at the hearing. The PHA will mail copies of the hearing packet to the tenant, the tenant’s representatives, if any, and the hearing officer at least three days before the scheduled remote hearing. The original hearing packet will be in the possession of the PHA representative and retained by the PHA.
If the hearing is to be conducted remotely, the PHA will require the resident to provide any documents directly relevant to the hearing at least 24 hours before the scheduled hearing through the mail, via email, or text. The PHA will scan and email copies of these documents to the hearing officer and the PHA representative the same day they are received.
Documents will be shared electronically whenever possible.
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Ensuring Accessibility for Persons with Disabilities ad LEP Individuals As with in-person grievance hearings, the platform for conducting remote grievance hearings must be accessible to persons with disabilities and the grievance hearings must be conducted in accordance with Section 504 and accessibility requirements. This includes ensuring any information, websites, emails, digital notifications, and other virtual platforms are accessible for persons with vision, hearing, and other disabilities. Further, providing effective communication in a digital context may require the use of individualized auxiliary aids or services, such as audio description, captioning, sign language and other types of interpreters, keyboard accessibility, accessible documents, screen reader support, and transcripts. Auxiliary aids or services must be provided in accessible formats, in a timely manner, and in such a way to protect the privacy and independence of the individual. PHAs may never request or require that individuals with disabilities provide their own auxiliary aids or services, including for remote grievance hearings.
If no method of conducting a remote grievance hearing is available that appropriately accommodates an individual’s disability, the PHA may not hold against the individual their inability to participate in the remote grievance hearing, and the PHA should consider whether postponing the remote hearing to a later date is appropriate or whether there is a suitable alternative.
Due to the individualized nature of disability, the appropriate auxiliary aid or service necessary, or reasonable accommodation will depend on the specific circumstances and requirements.
As with in-person reviews, Limited English Proficiency (LEP) requirements also apply to remote grievance hearings, including the use of interpretation services and document translation. See Chapter 2 for a more thorough discussion of accessibility and LEP requirements, all of which apply in the context of remote grievance hearings.
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Conducting Hearings Remotely
The PHA must ensure that the lack of technology or inability to use technology for remote grievance hearings does not pose a disadvantage to families that may not be apparent to the PHA. The PHA should determine through a survey or other means if these barriers exist prior to conducting the remote grievance hearing and, if the family does not have the proper technology to fully participate, either postpone the hearing or provide an alternative means of access.
As with in-person grievance hearings, the PHA must provide all materials presented, whether paper or electronic, to the family prior to the remote grievance hearing. The family must also be provided with an accessible means by which to transmit their own evidence.
The PHA’s essential responsibility is to ensure grievance hearings meet the requirements of due process and comply with HUD regulations. Therefore, all PHA policies and processes for remote grievance hearings will be conducted in accordance with due process requirements and will be in compliance with HUD regulations at 24 CFR 966.56 and the guidance for conducting remote hearings specified in Notice PIH 2020-32.
PHA Policy
The PHA will conduct remote grievance hearings via a video conferencing platform, when available. If, after attempting to resolve any barriers, participants are unable to adequately access the video conferencing platform at any point, or upon request, the grievance hearing will be conducted by telephone conferencing call-in. If the family is unable to adequately access the telephone conferencing call-in at any point, the remote grievance hearing will be postponed, and an in-person alternative will be provided promptly within a reasonable time.
At least five business days prior to scheduling the remote hearing, the PHA will provide the family with login information and/or conferencing call-in information and an electronic copy of all materials being presented via first class mail and/or email. The notice will advise the family of technological requirements for the hearing and request the family notify the PHA of any known barriers. The PHA will resolve any barriers using the guidance in Section 6 of Notice PIH 2020-32, including offering the family the opportunity to attend an in-person hearing.
The PHA will follow up with a phone call and/or email to the family at least one business day prior to the remote grievance hearing to ensure that the family received all information and is comfortable accessing the video conferencing or call-in platform.
The PHA will ensure that all electronic information stored or transmitted with respect to the grievance hearing is secure, including protecting personally identifiable information (PII), and meets the requirements for accessibility for persons with disabilities and persons with LEP.
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14-III.H. PROCEDURES GOVERNING THE HEARING [24 CFR 966.56] Rights of Complainant [24 CFR 966.56(b)]
The complainant will be afforded a fair hearing. This includes:
• The opportunity to examine before the grievance hearing any PHA documents, including records and regulations that are directly relevant to the hearing. The tenant must be allowed to copy any such document at the tenant’s expense. If the PHA does not make the document available for examination upon request by the complainant, the PHA may not rely on such document at the grievance hearing.
PHA Policy
The tenant will be allowed to copy any documents related to the hearing at no cost to the family. There will be no charge for documents emailed by the PHA. The family must request discovery of PHA documents no later than 12:00 p.m. on the business day prior to the hearing.
• The right to be represented by counsel or other person chosen to represent the tenant, and to have such person make statements on the tenant’s behalf.
PHA Policy
Hearings may be attended by the following applicable persons:
The PHA representatives and any witnesses for the PHA
The tenant and any witnesses for the tenant
The tenant’s counsel or other representative
Any other person approved by the PHA as a reasonable accommodation for a person with a disability
• The right to a private hearing unless the complainant requests a public hearing. • The right to present evidence and arguments in support of the tenant’s complaint, to controvert evidence relied on by the PHA or project management, and to confront and cross-examine all witnesses upon whose testimony or information the PHA or project management relies.
• A decision based solely and exclusively upon the facts presented at the hearing.
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Failure to Appear [24 CFR 966.56(c)]
If the complainant or the PHA fails to appear at a scheduled hearing, the hearing officer may make a determination to postpone the hearing for no more than five business days or may make a determination that the party has waived their right to a hearing. Both the complainant and the PHA must be notified of the determination by the hearing officer: Provided, That a determination that the complainant has waived their right to a hearing will not constitute a waiver of any right the complainant may have to contest the PHA’s disposition of the grievance in an appropriate judicial proceeding.
There may be times when a complainant does not appear due to unforeseen circumstances which are out of their control and are no fault of their own.
PHA Policy
If the tenant does not appear at the scheduled time of the hearing, the hearing officer will wait up to 30 minutes. If the tenant appears within 30 minutes of the scheduled time, the hearing will be held. If the tenant does not arrive within 30 minutes of the scheduled time, they will be considered to have failed to appear.
If the tenant fails to appear and was unable to reschedule the hearing in advance, the tenant must contact the PHA within 24 hours of the scheduled hearing date, excluding weekends and holidays. The hearing officer will reschedule the hearing only if the tenant can show good cause for the failure to appear, or it is needed as a reasonable accommodation for a person with disabilities.
“Good cause” is defined as an unavoidable conflict which seriously affects the health, safety, or welfare of the family.
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General Procedures [24 CFR 966.56(d), (e)]
At the hearing, the complainant must first make a showing of an entitlement to the relief sought and thereafter the PHA must sustain the burden of justifying the PHA action or failure to act against which the complaint is directed [24 CFR 966.56(d)].
The hearing is conducted informally by the hearing officer. The PHA and the tenant must be given the opportunity to present oral or documentary evidence pertinent to the facts and issues raised by the complaint, and to question any witnesses.
PHA Policy
Any evidence to be considered by the hearing officer must be presented at the time of the hearing. There are four categories of evidence.
Oral evidence: the testimony of witnesses
Documentary evidence: a writing which is relevant to the case, for example, a letter written to the PHA. Writings include all forms of recorded communication or representation, including letters, emails, words, pictures, sounds, videotapes or symbols or combinations thereof.
Demonstrative evidence: Evidence created specifically for the hearing and presented as an illustrative aid to assist the hearing officer, such as a model, a chart or other diagram.
Real evidence: A tangible item relating directly to the case.
Hearsay Evidence is evidence based not on a witness’ personal knowledge. In and of itself, hearsay evidence carries no weight when making a finding of fact. The hearing officer may include hearsay evidence when considering their decision if it is corroborated by other evidence. Even though hearsay evidence is generally admissible in a hearing, the hearing officer will not base a hearing decision on hearsay alone unless there is clear probative value and credibility of the evidence, and the party seeking the change has met the burden of proof.
If the PHA fails to comply with the discovery requirements (providing the tenant with the opportunity to examine PHA documents prior to the grievance hearing), the hearing officer will refuse to admit such evidence.
Other than the failure of the PHA to comply with discovery requirements, the hearing officer has the authority to overrule any objections to evidence.
The complainant or the PHA may arrange, in advance and at the expense of the party making the arrangement, for a transcript of the hearing. Any interested party may purchase a copy of such transcript [24 CFR 966.56(e)].
PHA Policy
If the complainant would like the PHA to record the proceedings by audiotape, the request must be made to the PHA by 12:00 p.m. on the business day prior to the hearing.
The PHA will consider that an audio tape recording of the proceedings is a transcript.
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Accommodations of Persons with Disabilities [24 CFR 966.56(f)] The PHA must provide reasonable accommodation for persons with disabilities to participate in the hearing. Reasonable accommodation may include qualified sign language interpreters, readers, accessible locations, or attendants.
If the tenant is visually impaired, any notice to the tenant which is required in the grievance process must be in an accessible format.
See Chapter 2 for a thorough discussion of the PHA’s responsibilities pertaining to reasonable accommodation.
Limited English Proficiency (24 CFR 966.56(g)
The PHA must comply with HUD’s LEP Final Rule in providing language services throughout the grievance process.
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14-III.I. DECISION OF THE HEARING OFFICER [24 CFR 966.57] The hearing officer must issue a written decision, stating the reasons for the decision, within a reasonable time after the hearing. Factual determinations relating to the individual circumstances of the family must be based on a preponderance of evidence presented at the hearing. A copy of the decision must be sent to the complainant and the PHA. The PHA must retain a copy of the decision in the tenant’s folder. A log of all hearing officer decisions must also be maintained by the PHA and made available for inspection by a prospective complainant, their representative, or the hearing officer [24 CFR 966.57(a)].
PHA Policy
In rendering a decision, the hearing officer will consider the following matters:
PHA Notice to the Family: The hearing officer will determine if the reasons for the PHA’s decision are factually stated in the notice.
Discovery: The hearing officer will determine if the family was given the opportunity to examine any relevant documents in accordance with PHA policy.
PHA Evidence to Support the PHA Decision: The evidence consists of the facts presented. Evidence is not conclusion and it is not argument. The hearing officer will evaluate the facts to determine if they support the PHA’s conclusion.
Validity of Grounds for Termination of Tenancy (when applicable): The hearing officer will determine if the termination of tenancy is for one of the grounds specified in the HUD regulations and PHA policies. If the grounds for termination are not specified in the regulations or in compliance with PHA policies, then the decision of the PHA will be overturned.
The hearing officer will issue a written decision to the family and the PHA no later than 10 business days after the hearing. The report will contain the following information:
Hearing information:
Name of the complainant
Date, time and place of the hearing
Name of the hearing officer
Name of the PHA representatives
Name of family representative (if any)
Names of witnesses (if any)
Background: A brief, impartial statement of the reason for the hearing and the date(s) on which the informal settlement was held, who held it, and a summary of the results of the informal settlement. Also includes the date the complainant requested the grievance hearing.
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Summary of the Evidence: The hearing officer will summarize the testimony of each witness and identify any documents that a witness produced in support of their testimony and that are admitted into evidence.
Findings of Fact: The hearing officer will include all findings of fact, based on a preponderance of the evidence. Preponderance of the evidence is defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not. Preponderance of the evidence may not be determined by the number of witnesses, but by the greater weight of all evidence.
Conclusions: The hearing officer will render a conclusion derived from the facts that were found to be true by a preponderance of the evidence. The conclusion will result in a determination of whether these facts uphold the PHA’s decision.
Order: The hearing report will include a statement of whether the PHA’s decision is upheld or overturned. If it is overturned, the hearing officer will instruct the PHA to change the decision in accordance with the hearing officer’s determination. In the case of termination of tenancy, the hearing officer will instruct the PHA to restore the family’s status.
Procedures for Further Hearing
PHA Policy
The hearing officer may ask the family for additional information and/or might adjourn the hearing in order to reconvene at a later date, before reaching a decision. If the family misses an appointment or deadline ordered by the hearing officer, the action of the PHA will take effect and another hearing will not be granted.
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Final Decision [24 CFR 966.57(b)]
The decision of the hearing officer is binding on the PHA which must take the action, or refrain from taking the action cited in the decision unless the PHA Board of Commissioners determines within a reasonable time, and notifies the complainant that:
• The grievance does not concern PHA action or failure to act in accordance with or involving the complainant’s lease on PHA policies which adversely affect the complainant’s rights, duties, welfare, or status; or
• The decision of the hearing officer is contrary to federal, state, or local law, HUD regulations or requirements of the annual contributions contract between HUD and the PHA PHA Policy
When the PHA considers the decision of the hearing officer to be invalid due to the reasons stated above, it will present the matter to the PHA Board of Commissioners within 10 business days of the date of the hearing officer’s decision. The Board has 30 calendar days to consider the decision. If the Board decides to reverse the hearing officer’s decision, it must notify the complainant within 10 business days of this decision.
A decision by the hearing officer or Board of Commissioners in favor of the PHA or which denies the relief requested by the complainant in whole or in part must not constitute a waiver of any rights, nor effect in any manner whatever, any rights the complainant may have to a subsequent trial or judicial review in court [24 CFR 966.57(c)].
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EXHIBIT 14-1: GRIEVANCE PROCEDURE
The sample procedure provided below is a sample only and is designed to match up with the default policies in the model ACOP. If your PHA has made further policy decisions after NMA has provided you with this chapter, you would need Definitions applicable to the grievance procedure [24 CFR 966.53].
I. Introduction
Public housing tenants have the right to request a grievance hearing for any PHA action or failure to act in accordance with the tenant’s lease.
Grievance procedures do not apply in the following circumstances:
A. Disputes between tenants not involving the PHA or class grievances [24 CFR 966.51(b)].
B. The grievance procedure is not intended as a forum for initiating or negotiating policy changes between a group or groups of tenants and the PHA’s Board of Commissioners [24 CFR 966.51(b)].
C. When the PHA is in a HUD-declared due process state, HUD allows the PHA to exclude from the PHA grievance procedure any grievance concerning a termination of tenancy or eviction that involves:
i. Any criminal activity that threatens the health, safety or right to peaceful enjoyment of the premises of other residents or employees of the PHA; ii. Any violent or drug-related criminal activity on or off such premises; or iii. Any criminal activity that resulted in felony conviction of a household member [24 CFR 966.51(a)(2)].
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II. Definitions [24 CFR 966.53]
A. Grievance: Any dispute a tenant may have with respect to PHA action or failure to act in accordance with the individual tenant’s lease or PHA regulations that adversely affects the individual tenant’s rights, duties, welfare, or status.
B. Complainant: Any tenant (as defined below) whose grievance is presented to the PHA or at the project management office in accordance with the requirements presented in this procedure.
C. Elements of due process: An eviction action or a termination of tenancy in a state or local court in which the following procedural safeguards are required:
i. Adequate notice to the tenant of the grounds for terminating the tenancy and for eviction
ii. Right of the tenant to be represented by counsel
iii. Opportunity for the tenant to refute the evidence presented by the PHA, including the right to confront and cross-examine witnesses and to present any affirmative legal or equitable defense that the tenant may have
iv. A decision on the merits of the case
D. Hearing officer: An impartial person or persons selected by the PHA other than the person who made or approved the decision under review, or a subordinate of that person. Such individuals do not need legal training.
E. Tenant: The adult person (or persons other than a live-in aide) who resides in the unit and who executed the lease with the PHA as lessee of the dwelling unit, or if no such person now resides in the unit, the person who resides in the unit and is the remaining head of the household of the tenant family residing in the dwelling unit.
F. Resident organization: An organization of residents, which also may include a resident management corporation.
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III. This grievance procedure [24 CFR 966.51]
This grievance procedure is included by reference in all tenant dwelling leases and will be furnished to each tenant and all resident organizations [24 CFR 966.52 (b) and (d)].
Any changes proposed in this grievance procedure must provide for at least 30 days’ notice to tenants and resident organizations, explaining the proposed changes and providing an opportunity to present written comments. Comments will be considered by the PHA before any revisions are made to the grievance procedure [24 CFR 966.52(c)].
IV. Informal settlement of a grievance [24 CFR 966.54]
Any grievance request must be personally presented, either orally or in writing (including email), to the PHA’s central office or the management office of the development in which the tenant resides within 10 days after the violation.
As soon as the grievance request is received, it will be reviewed by the PHA to ensure it meets the requirements for a grievance hearing. If the tenant is not entitled to a grievance, the PHA will notify the tenant that they may instead seek judicial review and the procedures for requesting such a review [24 CFR 966.4(l)(3)(i)(C)(v)(B)].
Otherwise, within 10 business days, the tenant will be contacted to arrange a mutually convenient time to meet so the grievance may be discussed and settled without a hearing.
At the informal settlement, the tenant will present their grievance.
Within five business days following the informal settlement, the PHA will prepare and either hand deliver, mail, or email to the tenant a summary of the discussion. The summary will specify the names of the participants; the date of the meeting; the nature of the proposed resolution of the complaint, with specific reason(s); and will specify the procedures by which a formal hearing under this procedure may be obtained if the tenant is not satisfied [24 CFR 966.54]. A copy of this summary will also be placed in the tenant’s file.
V. Requesting a formal grievance hearing
If the tenant is not satisfied with the outcome of the informal settlement, the tenant must submit a written request for a hearing to the management office of the development where the tenant lives no later than five business days after receiving the summary of the informal settlement.
The written request must specify the reasons for the request and the action or relief sought from the PHA.
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VI. Selecting the hearing officer
A grievance hearing will be conducted by an impartial person appointed by the PHA as described below:
A. The hearing officer will be appointed directly by the executive director.
B. The hearing officer will be someone who did not make or approve the decision under review and who is not a subordinate of such persons [24 CFR 066.54(e)].
C. The PHA’s method for selecting a hearing officer will be included in the lease [24 CFR 966.54(e)].
VII. Scheduling hearings [24 CFR 966.56(a)]
When a tenant submits a timely request for a grievance hearing, the PHA will immediately appoint an impartial hearing officer.
Once the hearing has been scheduled, the tenant will receive written notice of the hearing, sent by mail or email, return receipt requested.
Within 10 days of receiving the written request, the hearing will be scheduled. The tenant, PHA, and hearing officer will be notified in writing of the date, time and location of the hearing. If the hearing will be held remotely, the PHA will also include information on the remote hearing process.
The tenant may request to reschedule a hearing once. Should the tenant need to reschedule a second time, they may only do so for good cause, or if needed as a reasonable accommodation for a person with disabilities. Good cause is defined as an unavoidable conflict which seriously affects the health, safety, or welfare of the family.
Requests to reschedule a hearing must be made orally or in writing at least one day prior to the hearing date.
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VIII. Procedures governing the hearing [24 CFR 966.56]
The hearing will be held before a hearing officer as described above in Section VI. The tenant will be afforded a fair hearing, which will include:
A. The opportunity to examine any PHA documents before the hearing, including records and regulations, that are directly relevant to the hearing.
The tenant must request to view and copy PHA documents relevant to the hearing by noon of the day before the hearing. The tenant is allowed to copy any such document at no cost to the tenant.
If the PHA does not make the document available for examination upon request by the tenant, the PHA may not rely on such document at the grievance hearing.
B. The right to be represented by counsel or any other person chosen as the tenant’s representative, at the tenant’s expense, and to have such person make statements on the tenant’s behalf.
C. The right to a private hearing unless the tenant requests a public hearing.
D. The right to present evidence and arguments in support of the tenant’s complaint, to refute evidence relied on by the PHA or project management, and to confront and cross-examine all witnesses upon whose testimony or information the PHA or project management relies.
E. A decision based solely and exclusively upon the facts presented at the hearing [24 CFR 966.56(b)].
The hearing is conducted informally by the hearing officer. The PHA and the tenant must be given the opportunity to present oral or documentary evidence that is relevant to the facts and issues raised, and to question any witnesses.
The hearing decision will be based on the preponderance of the evidence, 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.
The tenant or the PHA may arrange in advance for a transcript or recording of the hearing at the expense of the party making the arrangement.
The PHA must provide reasonable accommodation for persons with disabilities to participate in the hearing. Reasonable accommodation may include qualified sign language interpreters, readers, accessible locations, or attendants. If the tenant is visually impaired, any notice to the tenant that is required under this procedure must be in an accessible format [24 CFR 966.56(f)].
The PHA must comply with HUD’s requirements regarding limited English proficiency (LEP). The tenant has the right to request competent oral interpretation, free of charge.
LEP requirements can be found at:
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IX. Remote Hearings
The PHA has the authority to require that hearings be conducted remotely in certain situations.
X. Failure to appear at the hearing
If the tenant does not arrive within 15 minutes of the scheduled time, it will be considered a failure to appear, which means they have given up their right to a hearing.
Both the tenant and the PHA must be notified of the determination by the hearing officer.
A determination that the tenant has waived their right to a hearing will not constitute a waiver of any right the tenant may have to contest the PHA’s disposition of the grievance in an appropriate judicial setting [24 CFR 966.56(c)].
XI. Decision of the hearing officer [24 CFR 966.57]
The hearing officer will prepare a written decision together with the reasons for the decision within 10 business days after the hearing. A copy of the decision will be sent to the tenant and the PHA.
The PHA will retain a copy of the decision in the tenant’s file.
The hearing officer may ask the family for additional information and/or might adjourn the hearing in order to reconvene at a later date before reaching a decision. If the family misses a deadline ordered by the hearing officer, the hearing officer will make a decision based on the evidence presented.
The decision of the hearing officer will be binding on the PHA unless the PHA’s Board of Commissioners determines within a reasonable time and notifies the tenant of its determination that:
A. The grievance does not concern PHA action or failure to act in accordance with or involving the tenant’s lease or PHA regulations, which adversely affect the tenant’s rights, duties, welfare, or status; or
B. The decision of the hearing officer is contrary to applicable federal, state, or local law, HUD regulations, or requirements of the annual contributions contract (ACC) between HUD and the PHA.
When the PHA considers the decision of the hearing officer to be invalid for either of the reasons stated above, it will present the matter to the PHA Board of Commissioners within 10 business days of the date of the hearing officer’s decision. The Board will have 30 calendar days to consider the decision. If the Board decides to reverse the hearing officer’s decision, it must notify the tenant within 10 business days of this decision.
A decision by the hearing officer or Board of Commissioners in favor of the PHA or which denies the relief requested by the tenant, in whole or in part, will not constitute a waiver of nor affect in any way the tenant’s right to a trial or judicial review in any court proceedings, which may be brought in the matter later [24 CFR 966.57].
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PROGRAM INTEGRITY
INTRODUCTION
The PHA is committed to ensuring that funds made available to the PHA are spent in accordance with HUD requirements.
This chapter covers HUD and PHA policies designed to prevent, detect, investigate and resolve instances of program abuse or fraud. It also describes the actions that will be taken in the case of unintentional errors and omissions.
Part I: Preventing, Detecting, and Investigating Errors and Program Abuse. This part presents PHA policies related to preventing, detecting, and investigating errors and program abuse.
Part II: Corrective Measures and Penalties. This part describes the corrective measures the PHA must and may take when errors or program abuses are found.
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INVESTIGATING ERRORS AND PROGRAM ABUSE
15-I.A. PREVENTING ERRORS AND PROGRAM ABUSE
HUD created the Enterprise Income Verification (EIV) system to provide PHAs with a powerful tool for preventing errors and program abuse. PHAs are required to use the EIV system at annual reexamination in accordance with HUD administrative guidance [24 CFR 5.233]. PHAs are further required to:
• Provide applicants and residents with form HUD-52675, “Debts Owed to PHAs and Terminations”
• Require all adult members of an applicant or participant family to acknowledge receipt of form HUD-52675 by signing a copy of the form for retention in the family file PHA Policy
The PHA anticipates that the vast majority of families and PHA employees intend to and will comply with program requirements and make reasonable efforts to avoid errors.
To ensure that the PHA’s program is administered effectively and according to the highest ethical and legal standards, the PHA will employ a variety of techniques to ensure that both errors and intentional program abuse are rare.
The PHA will provide each applicant and resident with a copy of “Is Fraud Worth It?” (form HUD-1141-OIG), which explains the types of actions a family must avoid and the penalties for program abuse.
The PHA will provide each applicant and resident with a copy of “What You Should Know about EIV,” a guide to the Enterprise Income Verification (EIV) system published by HUD as an attachment to Notice PIH 2017-12. In addition, the PHA will require the head of each household to acknowledge receipt of the guide by signing a copy for retention in the family file.
The PHA will require mandatory orientation sessions for all prospective residents either prior to or upon execution of the lease. The PHA will discuss program compliance and integrity issues. At the conclusion of all program orientation sessions, the family representative will be required to sign a program briefing certificate to confirm that all rules and pertinent regulations were explained to them.
The PHA will routinely provide resident counseling as part of every reexamination interview in order to clarify any confusion pertaining to program rules and requirements.
PHA staff will be required to review and explain the contents of all HUD- and PHA-required forms prior to requesting family member signatures.
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The PHA will provide each PHA employee with the necessary training on program rules and the organization’s standards of conduct and ethics.
At every regular reexamination the PHA staff will explain any changes in HUD regulations or PHA policy that affect residents.
For purposes of this chapter the term error refers to an unintentional error or omission.
Program abuse or fraud refers to a single act or pattern of actions that constitute a false statement, omission, or concealment of a substantial fact, made with the intent to deceive or mislead.
15-I.B. DETECTING ERRORS AND PROGRAM ABUSE
In addition to taking steps to prevent errors and program abuse, the PHA will use a variety of activities to detect errors and program abuse.
Quality Control and Analysis of Data
PHA Policy
The PHA will employ a variety of methods to detect errors and program abuse, including:
The PHA routinely will use EIV and other non-HUD sources of up-front income verification. This includes the Work Number and any other private or public databases available to the PHA.
At each annual reexamination, current information provided by the family will be compared to information provided at the last annual reexamination to identify inconsistencies and incomplete information.
The PHA will compare family-reported income and expenditures to detect possible unreported income.
Independent Audits and HUD Monitoring
Notice PIH 2015-16 requires all PHAs that expend $750,000 or more in federal awards annually to have an independent audit (IPA). In addition, HUD conducts periodic on-site and automated monitoring of PHA activities and notifies the PHA of errors and potential cases of program abuse.
PHA Policy
The PHA will use the results reported in any IPA or HUD monitoring reports to identify potential program abuses as well as to assess the effectiveness of the PHA’s error detection and abuse prevention efforts.
Individual Reporting of Possible Errors and Program Abuse PHA Policy
The PHA will encourage staff, residents, and the public to report possible program abuse.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 15-5 15-I.C. INVESTIGATING ERRORS AND PROGRAM ABUSE
When the PHA Will Investigate
PHA Policy
The PHA will review all referrals, specific allegations, complaints, and tips from any source including other agencies, companies, and individuals, to determine if they warrant investigation. In order for the PHA to investigate, the allegation must contain at least one independently-verifiable item of information, such as the name of an employer or the name of an unauthorized household member.
The PHA will investigate when inconsistent or contradictory information is detected through file reviews and the verification process.
Consent to Release of Information [24 CFR 960.259]
The PHA may investigate possible instances of error or abuse using all available PHA and public records. If necessary, the PHA will require families to sign consent forms for the release of additional information.
Analysis and Findings
PHA Policy
The PHA will base its evaluation on a preponderance of the evidence collected during its investigation.
Preponderance of the evidence is defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence that as a whole shows that the fact sought to be proved is more probable than not. Preponderance of evidence may not be determined by the number of witnesses, but by the greater weight of all evidence.
For each investigation the PHA will determine (1) whether an error or program abuse has occurred, (2) whether any amount of money is owed the PHA, and (3) what corrective measures or penalties will be assessed.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 15-6 Consideration of Remedies
All errors and instances of program abuse must be corrected prospectively. Whether the PHA will enforce other corrective actions and penalties depends upon the nature of the error or program abuse.
PHA Policy
In the case of family-caused errors or program abuse, the PHA will take into consideration (1) the seriousness of the offense and the extent of participation or culpability of individual family members, (2) any special circumstances surrounding the case, (3) any mitigating circumstances related to the disability of a family member, (4) the effects of a particular remedy on family members who were not involved in the offense.
Notice and Appeals
PHA Policy
The PHA will inform the relevant party in writing of its findings and remedies within 10 business days of the conclusion of the investigation. The notice will include (1) a description of the error or program abuse, (2) the basis on which the PHA determined the error or program abuses, (3) the remedies to be employed, and (4) the family’s right to appeal the results through an informal hearing or grievance hearing (see Chapter 14).
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 15-7 PART II: CORRECTIVE MEASURES AND PENALTIES
15-II.A. UNDER- OR OVERPAYMENT
An under- or overpayment includes an incorrect tenant rent payment by the family, or an incorrect utility reimbursement to a family.
Corrections
Whether the incorrect rental determination is an overpayment or underpayment, the PHA must promptly correct the tenant rent and any utility reimbursement prospectively.
PHA Policy
Increases in the tenant rent will be implemented on the first of the month following a written 30 day notice.
Any decreases in tenant rent will become effective the first of the month following the discovery of the error.
Reimbursement
Whether the family is required to reimburse the PHA or the PHA is required to reimburse the family depends upon which party is responsible for the incorrect payment and whether the action taken was an error or program abuse. Policies regarding reimbursement are discussed in the three sections that follow.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 15-8 15-II.B. FAMILY-CAUSED ERRORS AND PROGRAM ABUSE
General administrative requirements for participating in the program are discussed throughout the ACOP. This section deals specifically with errors and program abuse by family members.
An incorrect rent determination caused by a family generally would be the result of incorrect reporting of family composition, income, assets, or expenses, but also would include instances in which the family knowingly allows the PHA to use incorrect information provided by a third party.
Family Reimbursement to PHA
PHA Policy
In the case of family-caused errors or program abuse, the family will be required to repay any amounts of rent underpaid. The PHA may, but is not required to, offer the family a repayment agreement in accordance with Chapter 16. If the family fails to repay the amount owed, the PHA will terminate the family’s lease in accordance with the policies in Chapter 13.
PHA Reimbursement to Family
PHA Policy
The PHA will not reimburse the family for any overpayment of rent when the overpayment clearly is caused by the family.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 15-9 Prohibited Actions
An applicant or resident in the public housing program must not knowingly:
• Make a false statement to the PHA [Title 18 U.S.C. Section 1001]. • Provide incomplete or false information to the PHA [24 CFR 960.259(a)(4)]. • Commit fraud, or make false statements in connection with an application for assistance or with reexamination of income [24 CFR 966.4(l)(2)(iii)(C)].
PHA Policy
Any of the following will be considered evidence of family program abuse:
Offering bribes or illegal gratuities to the PHA Board of Commissioners, employees, contractors, or other PHA representatives
Offering payments or other incentives to a third party as an inducement for the third party to make false or misleading statements to the PHA on the family’s behalf
Use of a false name or the use of falsified, forged, or altered documents Intentional misreporting of family information or circumstances (e.g., misreporting of income or family composition)
Omitted facts that were obviously known by a family member (e.g., not reporting employment income)
Admission of program abuse by an adult family member
The PHA may determine other actions to be program abuse based upon a preponderance of the evidence, as defined earlier in this chapter.
Penalties for Program Abuse
In the case of program abuse caused by a family the PHA may, at its discretion, impose any of the following remedies.
• The PHA may require the family to repay any amounts owed to the program (see 15-II.B., Family Reimbursement to PHA).
• The PHA may require, as a condition of receiving or continuing assistance, that a culpable family member not reside in the unit. See policies in Chapter 3 (for applicants) and Chapter 13 (for residents).
• The PHA may deny admission or terminate the family’s lease following the policies set forth in Chapter 3 and Chapter 13 respectively.
• The PHA may refer the family for state or federal criminal prosecution as described in section 15-II.D.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 15-10 15-II.C. PHA-CAUSED ERRORS OR PROGRAM ABUSE
The responsibilities and expectations of PHA staff with respect to normal program administration are discussed throughout the ACOP. This section specifically addresses actions of a PHA staff member that are considered errors or program abuse related to the public housing program. Additional standards of conduct may be provided in the PHA personnel policy.
PHA-caused incorrect rental determinations include (1) failing to correctly apply public housing rules regarding family composition, income, assets, and expenses, and (2) errors in calculation.
De Minimis Errors [24 CFR 5.609(c)(4); Notice PIH 2023-27] The PHA will not be considered out of compliance when making annual income determinations solely due to de minimis errors in calculating family income. A de minimis error is an error where the PHA determination of family income deviates from the correct income determination by no more than $30 per month in monthly adjusted income ($360 in annual adjusted income) per family.
PHAs must take corrective action to credit or repay a family if the family was overcharged rent, including when PHAs make de minimis errors in the income determination. Families will not be required to repay the PHA in instances where the PHA miscalculated income resulting in a family being undercharged for rent. PHAs state in their policies how they will repay or credit a family the amount they were overcharged as a result of the PHA’s de minimis error in income determination.
PHA Policy
The PHA will reimburse a family for any family overpayment of rent, regardless of whether the overpayment was the result of staff-caused error, staff program abuse, or a de minimis error.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 15-11 Prohibited Activities
PHA Policy
Any of the following will be considered evidence of program abuse by PHA staff:
Failing to comply with any public housing program requirements for personal gain
Failing to comply with any public housing program requirements as a result of a conflict of interest relationship with any applicant or resident Seeking or accepting anything of material value from applicants, residents, vendors, contractors, or other persons who provide services or materials to the PHA
Disclosing confidential or proprietary information to outside parties Gaining profit as a result of insider knowledge of PHA activities, policies, or practices
Misappropriating or misusing public housing funds
Destroying, concealing, removing, or inappropriately using any records related to the public housing program
Committing any other corrupt or criminal act in connection with any federal housing program
Committing sexual harassment or other harassment based on race, color, religion, national origin, familial status, disability, sexual orientation, or gender identity, either quid pro quo (supervisory harassment) or hostile environment Allowing sexual harassment or other harassment based on race, color, religion, national origin, familial status, disability, sexual orientation, or gender identity, either quid pro quo (supervisory harassment) or hostile environment, where the PHA knew or should have known such harassment was occurring Retaliating against any applicant, resident, or staff reporting sexual harassment or other harassment based on race, color, religion, national origin, familial status, disability, sexual orientation, or gender identity, either quid pro quo (supervisory harassment) or hostile environment
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 15-12 15-II.D. CRIMINAL PROSECUTION
PHA Policy
When the PHA determines that program abuse by a family or PHA staff member has occurred and the amount of underpaid rent meets or exceeds the threshold for prosecution under local or state law, the PHA will refer the matter to the appropriate entity for prosecution. When the amount of underpaid rent meets or exceeds the federal threshold, the case will also be referred to the HUD Office of Inspector General (OIG).
Other criminal violations related to the public housing program will be referred to the appropriate local, state, or federal entity.
15-II.E. FRAUD AND PROGRAM ABUSE RECOVERIES
PHAs who enter into a repayment agreement with a family to collect rent owed, initiate litigation against the family to recover rent owed, or begin eviction proceedings against a family may retain 100 percent of program funds that the PHA recovers [Notice PIH 2007-27 (HA)].
If the PHA does none of the above, all amounts that constitute an underpayment of rent must be returned to HUD.
The family must be afforded the opportunity for a hearing through the PHA’s grievance process.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-1 Chapter 16
PROGRAM ADMINISTRATION
INTRODUCTION
This chapter discusses administrative policies and practices that are relevant to the activities covered in this ACOP. The policies are discussed in seven parts as described below:
Part I: Setting Utility Allowances. This part describes how utility allowances are established and revised. Also discussed are the requirements to establish surcharges for excess consumption of PHA-furnished utilities.
Part II: Establishing Flat Rents. This part describes the requirements and policies related to establishing and updating flat rent amounts.
Part III: Repayment of Family Debts. This part contains policies for recovery of monies that have been underpaid by families and describes the circumstances under which the PHA will offer repayment agreements to families. Also discussed are the consequences for failure to make payments in accordance with a repayment agreement.
Part IV: Public Housing Assessment System (PHAS). This part describes the PHAS indicators, how PHAs are scored under PHAS, and how those scores affect a PHA.
Part V: Record Keeping. All aspects of the program involve certain types of recordkeeping. This part outlines the privacy rights of applicants and participants and record retention policies the PHA will follow.
Part VI: Reporting and Record Keeping for Children with Elevated Blood Lead Level.
This part describes the PHA’s reporting responsibilities related to children with elevated blood lead levels that are living in public housing.
Part VII: Violence against Women Act (VAWA): Notification, Documentation, and Confidentiality. This part contains key terms used in VAWA and describes requirements related to notifying families about their rights and responsibilities under VAWA; requesting documentation from victims of domestic violence, dating violence, sexual assault, stalking, and human trafficking; and maintaining the confidentiality of information obtained from victims.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-3 PART I: SETTING UTILITY ALLOWANCES
24 CFR 965 Subpart E
16-I.A. OVERVIEW
PHAs must establish allowances for PHA-furnished utilities for all check metered utilities and for resident-purchased utilities for all utilities purchased directly by residents from a utility supplier [24 CFR 965.502(a)].
PHAs must also establish surcharges for excess consumption of PHA-furnished utilities [24 CFR 965.506].
The PHA must maintain a record that documents the basis on which utility allowances and scheduled surcharges are established and revised, and the record must be made available for inspection by residents [24 CFR 965.502(b)].
16-I.B. UTILITY ALLOWANCES
The PHA must establish separate allowances for each utility and for each category of dwelling units the PHA determines to be reasonably comparable as to factors affecting utility usage [24 CFR 965.503].
The objective of a PHA in establishing utility allowances for each dwelling unit category and unit size is to approximate a reasonable consumption of utilities by an energy-conservative household of modest circumstances consistent with the requirements of a safe, sanitary, and healthful living environment [24 CFR 965.505].
Utilities include gas, electricity, fuel for heating, water, sewerage, and solid waste disposal for a dwelling unit. In addition, if the PHA does not furnish a range and refrigerator, the family must be granted a utility allowance for the range and refrigerator they provide [24 CFR 965.505].
Costs for telephone, cable/satellite TV, and internet services are not considered utilities [PH Occ GB, p. 138].
Utility allowance amounts will vary by the rates in effect, size and type of unit, climatic location and sitting of the unit, type of construction, energy efficiency of the dwelling unit, and other factors related to the physical condition of the unit. Utility allowance amounts will also vary by residential demographic characteristics affecting home energy usage [PH Occ GB, p. 138].
Chapter 14 of the PH Occupancy Guidebook provides detailed guidance to the PHA about establishing utility allowances.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-4 Air-Conditioning
“If a PHA installs air conditioning, it shall provide, to the maximum extent economically feasible, systems that give residents the option of choosing to use air conditioning in their units.
The design of systems that offer each resident the option to choose air conditioning shall include retail meters or check meters, and residents shall pay for the energy used in its operation. For systems that offer residents the option to choose air conditioning but cannot be check metered, residents are to be surcharged in accordance with 965.506. If an air conditioning system does not provide for resident option, residents are not to be charged, and these systems should be avoided whenever possible.” [24 CFR 965.505(e)]
PHA Policy
The PHA [has/has not] installed air-conditioning.
Utility Allowance Revisions [24 CFR 965.507]
The PHA must review at least annually the basis on which utility allowances have been established and must revise the allowances if necessary in order to adhere to the standards for establishing utility allowances that are contained in 24 CFR 965.505. The review must include all changes in circumstances (including completion of modernization and/or other energy conservation measures implemented by the PHA) indicating probability of a significant change in reasonable requirements and changes in utility rates [24 CFR 965.507(a)].
The PHA must revise its allowances for resident-purchased utilities if there is a rate change, and is required to do so if such change, by itself or together with prior rate changes not adjusted for, results in a change of 10 percent or more from the rate on which the allowance was 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 became effective. Such rate changes are not subject to the 60-day notice [24 CFR 965.507(b)].
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.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-5 16-I.C. SURCHARGES FOR PHA-FURNISHED UTILITIES [24 CFR 965.506] For dwelling units subject to allowances for PHA-furnished utilities where check meters have been installed, the PHA must establish surcharges for utility consumption in excess of the allowances. Surcharges may be computed on a straight per unit of purchase basis or for stated blocks of excess consumption, and must be based on the PHA’s average utility rate. The basis for calculating the surcharges must be described in the PHA’s schedule of allowances. Changes in the amount of surcharges based directly on changes in the PHA’s average utility rate are not subject to the advance notice requirements discussed under 16-I.D.
For dwelling units served by PHA-furnished utilities where check meters have not been installed, the PHA must establish schedules of surcharges indicating additional dollar amounts residents will be required to pay by reason of estimated utility consumption attributable to resident-owned major appliances or to optional functions of PHA-furnished equipment. The surcharge schedule must state the resident-owned equipment (or functions of PHA-furnished equipment) for which surcharges will be made and the amounts of such charges. Surcharges must be based on the cost to the PHA of the utility consumption estimated to be attributable to reasonable usage of such equipment.
PHA Policy
The PHA [does/does not] have PHA-furnished utilities.
16-I.D. NOTICE REQUIREMENTS [965.502]
The PHA must give notice to all residents of proposed allowances and scheduled surcharges, and revisions thereof. The notice must be given in the manner provided in the lease and must:
• Be provided at least 60 days before the proposed effective date of the allowances, scheduled surcharges, or revisions.
• Describe the basis for determination of the allowances, scheduled surcharges, or revisions, including a statement of the specific items of equipment and function whose utility consumption requirements were included in determining the amounts of the allowances and schedule of surcharges.
• Notify residents of the place where the PHA’s documentation on which allowances and surcharges are based is available for inspection.
• Provide all residents an opportunity to submit written comments during a period expiring not less than 30 days before the proposed effective date of the allowances, scheduled surcharges, or revisions.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-6 16-I.E. REASONABLE ACCOMMODATION AND INDIVIDUAL RELIEF
[24 CFR 965.508]
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 [24 CFR 8 and 100, PH Occ GB, p. 172].
See Chapter 2 for policies regarding the request and approval of 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 information about the additional allowance required.
PHAs should develop criteria for granting individual relief and to notify residents about the availability of individual relief, and also to 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].
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-7 PART II: ESTABLISHING FLAT RENTS
16-II.A. OVERVIEW
Flat rents are designed to encourage self-sufficiency and to avoid creating disincentives for continued residency by families who are attempting to become economically self-sufficient.
Flat rents are also used to prorate assistance for a mixed family. A mixed family is one whose members include those with citizenship or eligible immigration status, and those without citizenship or eligible immigrations status [24 CFR 5.504].
This part discusses how the PHA establishes and updates flat rents. Policies related to the use of flat rents, family choice of rent, flat rent hardships, and proration of rent for a mixed family are discussed in Chapter 6.
16-II.B. FLAT RENTS [24 CFR 960.253(b) and Notice PIH 2022-33] Establishing Flat Rents
The 2015 Appropriations Act requires that flat rents must be set at no less than 80 percent of the applicable fair market rent (FMR). Alternatively, the PHA may set flat rents at no less than 80 percent of the applicable small area FMR(SAFMR) for metropolitan areas, or 80 percent of the applicable unadjusted rents for nonmetropolitan areas.
For areas where HUD has not determined a SAFMR or an unadjusted rent, PHAs must set flat rents at no less than 80 percent of the FMR or apply for an exception flat rent.
The 2015 Appropriations Act permits PHAs to apply for an exception flat rent that is lower than either 80 percent of the FMR or SAFMR/unadjusted rent if the PHA can demonstrate, through the submission of a market analysis, that these FMRs do not reflect the market value of a particular property or unit and HUD agrees with the PHA’s analysis. The market analysis must be submitted using form HUD-5880, “Flat Rent Market Analysis Summary.” PHAs must receive written HUD approval before implementing exception flat rents. PHAs with a previously approved flat rent exception request may submit a written request to extend the approved flat rents for up to two additional years, provided local market conditions remain unchanged. Detailed information on how to request exception flat rents can be found in Notice PIH 2022-33.
PHAs are now required to apply a utility allowance to flat rents as necessary. Flat rents set at 80 percent of the FMR must be reduced by the amount of the unit’s utility allowance, if any.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-8 Review of Flat Rents
No later than 90 days after the effective date of the new annual FMRs/SAFMRs/unadjusted rent, PHAs must implement new flat rents as necessary based changes to the FMR/SAFMR/unadjusted rent or request an exception.
If the FMR falls from year to year, the PHA may, but is not required to, lower the flat rent to 80 percent of the current FMR/SAFMR/unadjusted rent.
PHA Policy
If the FMR/SAFMR/unadjusted rent is lower than the previous year, the PHA will reduce flat rents to 80 percent of the current FMR/SAFMR.
Applying Flat Rents
PHA Policy
The PHA will apply updated flat rents at each family’s next annual reexamination or flat rent update after implementation of the new flat rents.
Posting of Flat Rents
PHA Policy
The PHA will publicly post the schedule of flat rents in a conspicuous manner in the applicable PHA or project office.
Documentation of Flat Rents [24 CFR 960.253(b)(5)]
The PHA must maintain records that document the method used to determine flat rents, and that show how flat rents were determined by the PHA in accordance with this method.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-9 PART III: FAMILY DEBTS TO THE PHA
16-III.A. OVERVIEW
Families are required to reimburse the PHA if they were charged less rent than required because the family either underreported or failed to report income. PHAs are required to determine retroactive rent amounts as far back as the PHA has documentation of family unreported income [Notice PIH 2018-18].
This part describes the PHA’s policies for recovery of monies owed to the PHA by families.
PHA Policy
When an action or inaction of a resident family results in the underpayment of rent or other amounts, the PHA holds the family liable to return any underpayments to the PHA.
The PHA will enter into repayment agreements in accordance with the policies contained in this part as a means to recover underpayments.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-10 16-III.B. REPAYMENT POLICY
Family Debts to the PHA
PHA Policy
Any amount owed to the PHA by a public housing family must be repaid. If the family is unable to repay the debt within 30 days, the PHA will offer to enter into a repayment agreement in accordance with the policies below.
Refusal to Enter into An Agreement
If the family refuses to repay the debt, does not enter into a repayment agreement, or breaches a repayment agreement, the PHA will terminate the family’s tenancy.
PHA Policy
When a family refuses to repay monies owed to the PHA, in addition to termination of program assistance, the PHA will utilize other available collection alternatives including, but not limited to, the following:
Collection agencies
Small claims court
Civil lawsuit
State income tax set-off program
Repayment Agreement [24 CFR 792.103]
The term repayment agreement refers to a formal written document signed by a tenant or owner and provided to the PHA in which a tenant or owner acknowledges a debt in a specific amount and agrees to repay the amount due at specific time periods.
General Repayment Agreement Guidelines
Down Payment Requirement
PHA Policy
Before executing a repayment agreement with a family, the PHA will generally require a down payment of 10 percent of the total amount owed. If the family can provide evidence satisfactory to the PHA that a down payment of 10 percent would impose an undue hardship, the PHA may, in its sole discretion, require a lesser percentage or waive the requirement.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-11 Payment Thresholds
Notice PIH 2018-18 recommends that the total amount that a family must pay each month—the family’s monthly share of rent plus the monthly debt repayment amount—should not exceed 40 percent of the family’s monthly adjusted income, which is considered “affordable.” Moreover, Notice PIH 2018-18 acknowledges that PHAs have the discretion to establish “thresholds and policies” for repayment agreements with families [24 CFR 982.552(c)(1)(vii)].
PHA Policy
If a family is paying less than 40 percent of its monthly adjusted income (MAI) in rent, the minimum monthly payment amount will be the greater of the following two amounts:
The difference between 40 percent of the family’s MAI and the TTP at the time the agreement is executed
$25
If a family can provide evidence satisfactory to the PHA that a monthly payment amount of $25 would impose an undue hardship, the PHA may, in its sole discretion, require a lower monthly payment amount.
If the family’s income increases or decreases during the term of a repayment agreement, either the PHA or the family may request that the monthly payment amount be adjusted accordingly.
Execution of the Agreement
All repayment agreements must be in writing, dated, and signed by both the family and the PHA [Notice PIH 2018-18].
PHA Policy
Any repayment agreement between the PHA and a family must be signed and dated by the PHA and by the head of household and spouse/cohead (if applicable).
Due Dates
PHA Policy
All payments are due by the close of business on the 15th day of the month. If the 15th does not fall on a business day, the due date is the close of business on the first business day after the 15th.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-12 Late or Missed Payments
PHA Policy
If a payment is not received by the end of the business day on the date due, and prior approval for the missed payment has not been given by the PHA, the PHA will send the family a delinquency notice giving the family 14 business days to make the late payment.
If the payment is not received by the due date of the delinquency notice, it will be considered a breach of the agreement and the PHA will terminate tenancy in accordance with the policies in Chapter 13.
If a family receives three delinquency notices for unexcused late payments in a 12-month period, the repayment agreement will be considered in default, and the PHA will terminate tenancy in accordance with the policies in Chapter 13.
No Offer of Repayment Agreement
PHA Policy
The PHA generally will not enter into a repayment agreement with a family if there is already a repayment agreement in place with the family, or if the amount owed by the family exceeds the federal or state threshold for criminal prosecution.
Repayment Agreement Terms
All repayment agreements must be in writing, dated, signed by both the family and the PHA, include the total retroactive rent amount owed, amount of lump sum payment made at time of execution, if applicable, and the monthly repayment amount. Notice PIH 2018-18 requires certain provisions to be included in any repayment agreement involving amounts owed by a family because it underreported or failed to report income:
• A reference to the items in the public housing lease that state the family’s obligation to provide true and complete information at every reexamination and the grounds on which the PHA may terminate assistance because of a family’s action or failure to act • A statement clarifying that each month the family not only must pay to the PHA the monthly payment amount specified in the agreement but must also pay to the PHA the monthly tenant rent
• A statement that the terms of the repayment agreement may be renegotiated if the family’s income decreases or increases
• A statement that late or missed payments constitute default of the repayment agreement and may result in termination of tenancy
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-13 PART IV: PUBLIC HOUSING ASSESSMENT SYSTEM (PHAS)
16-IV.A. OVERVIEW
The purpose of the Public Housing Assessment System (PHAS) is to improve the delivery of services in public housing and enhance trust in the public housing system among PHAs, public housing residents, HUD and the general public by providing a management tool for effectively and fairly measuring the performance of a public housing agency in essential housing operations. 16-IV.B. PHAS INDICATORS [24 CFR 902 Subparts A, B, C, D, and E] The table below lists each of the PHAS indicators, the points possible under each indicator, and a brief description of each indicator. A PHA’s performance is based on a combination of all four indicators.
Indicator 1: Physical condition of the PHA’s projects
Maximum Score: 40
• The objective of this indicator is to determine the level to which a PHA is maintaining its public housing in accordance with the standard of safe, habitable dwelling units. • To determine the physical condition of a PHA’s projects, inspections are performed using the National Standards for the Inspection of Real Estate (NSPIRE). The inspections are performed by an independent inspector arranged by HUD and include a statistically valid sample of the units in each project in the PHA’s public housing portfolio.
Indicator 2: Financial condition of the PHA’s projects
Maximum Score: 25
• The objective of this indicator is to measure the financial condition of the PHA’s public housing projects for the purpose of evaluating whether the PHA has sufficient financial resources and is capable of managing those financial resources effectively to support the provision of housing that is decent, safe, sanitary, and in good repair. • A PHA’s financial condition is determined by measuring each public housing project’s performance in each of the following subindicators: quick ratio, months expendable net assets ratio, and debt service coverage ratio.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-14 Indicator 3: Management operations of the PHA’s projects Maximum Score: 25
• The objective of this indicator is to measure certain key management operations and responsibilities of a PHA’s projects for the purpose of assessing the PHA’s management operations capabilities.
• Each project’s management operations are assessed based on the following subindicators: occupancy, tenant accounts receivable, and accounts payable. • An on-site management review may be conducted as a diagnostic and feedback tool for problem performance areas, and for compliance. Management reviews are not scored.
Indicator 4: Capital Fund
Maximum Score: 10
• The objective of this indicator is to measure how long it takes the PHA to obligate capital funds and to occupy units.
• The PHA’s score for this indicator is measured at the PHA level and is based on the following subindicators: timeliness of fund obligation and occupancy rate.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-15 16-IV.C. PHAS SCORING [24 CFR 902 Subpart F]
HUD’s Real Estate Assessment Center (REAC) issues overall PHAS scores, which are based on the scores of the four PHAS indicators, and the subindicators under each indicator. The PHA’s indicator scores are based on a weighted average of the PHA’s public housing projects’ scores.
PHAS scores translate into a designation for each PHA as high performing, standard, substandard, or troubled.
A high performer is a PHA that achieves an overall PHAS score of 90 or greater, and achieves a score of at least 60 percent of the points available under the physical, financial, and management indicators and at least 50 percent of the points available under the capital fund indicator.
A standard performer is a PHA that has an overall PHAS score between 60 and 89, and achieves a score of at least 60 percent of the points available under the physical, financial, and management indicators and at least 50 percent of the points available under the capital fund indicator.
A substandard performer is a PHA that has an overall PHAS score of at least 60 percent and achieves a score of less than 60 percent under one or more of the physical, financial, or management indicators.
A troubled performer is a PHA that achieves an overall PHAS score of less than 60, or achieves less than 50 percent of the total points available under the capital fund indicator.
These designations can affect a PHA in several ways:
• High-performing PHAs are eligible for incentives including relief from specific HUD requirements and bonus points in funding competitions [24 CFR 902.71]. • PHAs that are standard performers may be required to submit and operate under a corrective action plan to eliminate deficiencies in the PHA’s performance [24 CFR 902.73(a)(1)]. • PHAs that are substandard performers will be required to submit and operate under a corrective action plan to eliminate deficiencies in the PHA’s performance [24 CFR 902.73(a)(2)].
• PHAs with an overall rating of “troubled” are subject to additional HUD oversight, and are required to enter into a memorandum of agreement (MOA) with HUD to improve PHA performance [24 CFR 902.75].
• PHAs that fail to execute or meet MOA requirements may be referred to the Assistant Secretary to determine remedial actions, including, but not limited to, remedies available for substantial default [24 CFR 902.75(g) and 24 CFR Part 907].
PHAs must post a notice of its final PHAS score and status in appropriate conspicuous and accessible locations in its offices within two weeks of receipt of its final score and designation [24 CFR 902.64(b)(2)].
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-17 PART V: RECORD KEEPING
16-V.A. OVERVIEW
The PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. All such records must be made available to HUD or the Comptroller General of the United States upon request.
In addition, the PHA must ensure that all applicant and participant files are maintained in a way that protects an individual’s privacy rights, and that comply with VAWA confidentiality requirements.
16-V.B. RECORD RETENTION
The PHA must keep the last three years of the Form HUD-50058 and supporting documentation during the term of each assisted lease, and for a period of at least three years from the end of participation (EOP) date [24 CFR 908.101].
The PHA must maintain Enterprise Income Verification (EIV) system Income Reports in the tenant file for the duration of the tenancy but for a period not to exceed three years from the EOP date [Notice PIH 2018-18].
Notice PIH 2014-20 requires the PHA to keep records of all complaints, investigations, notices, and corrective actions related to violations of the Fair Housing Act or the equal access final rule.
The PHA must keep confidential records of all emergency transfer requested under the PHA’s Emergency Transfer Plan, and the outcomes of such requests, and retain the records for a period of three years, or for a period of time as specific in program regulations [24 CFR 5.2002(e)(12)].
PHA Policy
The PHA will keep the last three years of the Form HUD-50058 and supporting documentation, and for at least three years after end of participation all documents related to a family’s eligibility, tenancy, and termination.
The PHA will keep Enterprise Income Verification (EIV) system Income Reports in the tenant file for the duration of the tenancy and for three years from the end of participation date.
In addition, the PHA will keep the following records for at least three years:
An application from each ineligible family and notice that the applicant is not eligible
Lead-based paint records as required by 24 CFR 35, Subpart B Documentation supporting the establishment of flat rents Documentation supporting the establishment of utility allowances and surcharges Documentation related to PHAS
Accounts and other records supporting PHA budget and financial statements for the program
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-18 Complaints, investigations, notices, and corrective actions related to violations of the Fair Housing Act, the equal access final rule, or VAWA Confidential records of all emergency transfers related to VAWA requested under the PHA’s Emergency Transfer Plan and the outcomes of such requests Other records as determined by the PHA or as required by HUD If a hearing to establish a family’s citizenship status is held, longer retention requirements apply for some types of documents. For specific requirements, see Section 14-II.A. 16-V.C. RECORDS MANAGEMENT
PHAs must maintain applicant and participant files and information in accordance with the regulatory requirements described below.
PHA Policy
All applicant and participant information will be kept in a secure location and access will be limited to authorized PHA staff.
PHA staff will not discuss personal family information unless there is a business reason to do so. Inappropriate discussion of family information or improper disclosure of family information by staff will result in disciplinary action.
Privacy Act Requirements [24 CFR 5.212 and Form-9886]
The collection, maintenance, use, and dissemination of social security numbers (SSN), employer identification numbers (EIN), any information derived from these numbers, and income information of applicants and participants must be conducted, to the extent applicable, in compliance with the Privacy Act of 1974, and all other provisions of Federal, State, and local law.
Applicants and participants, including all adults in the household, are required to sign a consent form, HUD-9886, Authorization for Release of Information. This form incorporates the Federal Privacy Act Statement and describes how the information collected using the form may be used, and under what conditions HUD or the PHA may release the information collected.
Upfront Income Verification (UIV) Records
PHAs that access UIV data through HUD’s Enterprise Income Verification (EIV) system are required to adopt and follow specific security procedures to ensure that all EIV data is protected in accordance with federal laws, regardless of the media on which the data is recorded (e.g. electronic, paper). These requirements are contained in the HUD-issued document, Enterprise Income Verification (EIV) System, Security Procedures for Upfront Income Verification (UIV) Data.
PHA Policy
Prior to utilizing HUD’s EIV system, the PHA will adopt and implement EIV security procedures required by HUD.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-19 Criminal Records
The PHA may only disclose the criminal conviction records which the PHA receives from a law enforcement agency to officers or employees of the PHA, or to authorized representatives of the PHA who have a job-related need to have access to the information [24 CFR 5.903(e)].
The PHA must establish and implement a system of records management that ensures that any criminal record received by the PHA from a law enforcement agency is maintained confidentially, not misused or improperly disseminated, and destroyed, once the purpose for which the record was requested has been accomplished, including expiration of the period for filing a challenge to the PHA action without institution of a challenge or final disposition of any such litigation [24 CFR 5.903(g)].
The PHA must establish and implement a system of records management that ensures that any sex offender registration information received by the PHA from a State or local agency is maintained confidentially, not misused or improperly disseminated, and destroyed, once the purpose for which the record was requested has been accomplished, including expiration of the period for filing a challenge to the PHA action without institution of a challenge or final disposition of any such litigation. However, a record of the screening, including the type of screening and the date performed must be retained [Notice PIH 2012-28]. This requirement does not apply to information that is public information, or is obtained by a PHA other than under 24 CFR 5.905.
Medical/Disability Records
PHAs are not permitted to inquire about the nature or extent of a person’s disability. The PHA may not inquire about a person’s diagnosis or details of treatment for a disability or medical condition. If the PHA receives a verification document that provides such information, the PHA should not place this information in the tenant file. The PHA should destroy the document.
Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking Records
For requirements and PHA policies related to management of documentation obtained from victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking, see section 16-VII.E.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-21 PART VI: REPORTING REQUIREMENTS FOR CHILDREN WITH
ELEVATED BLOOD LEAD LEVEL
16-VI.A. REPORTING REQUIREMENTS [24 CFR 35.1130(e); Notice PIH 2017-13] The PHA has certain responsibilities relative to children with elevated blood lead levels that are living in public housing.
The PHA must report the name and address of a child identified as having an elevated blood lead level (EBLL) to the public health department within five business days of being so notified by any other medical health care professional. The PHA must also report each known case of a child with an EBLL to the HUD field office.
PHA Policy
The PHA will provide the public health department written notice of the name and address of any child identified as having an elevated blood lead level.
The PHA will provide written notice of each known case of a child with an EBLL to the HUD field office, and to HUD’s Office of Lead Hazard Control (OLHCHH), within five business days of receiving the information.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-23 PART VII: VIOLENCE AGAINST WOMEN ACT (VAWA): NOTIFICATION,
DOCUMENTATION, AND CONFIDENTIALITY
16-VII.A. OVERVIEW
The Violence against Women Act (VAWA) provides special protections for victims of domestic violence, dating violence, sexual assault, stalking, and human trafficking who are applying for or receiving assistance under the public housing program. If your state or local laws provide greater protection for such victims, those apply in conjunction with VAWA. • 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.
In addition to definitions of key terms used in VAWA, this part contains general VAWA requirements and PHA policies in three areas: notification, documentation, and confidentiality.
Specific VAWA requirements and PHA policies are located in Chapter 3, “Eligibility” (sections 3-I.C and 3-III.F); Chapter 5, “Occupancy Standards and Unit Offers” (section 5-II.D); Chapter 8, “Leasing and Inspections” (section 8-I.B); Chapter 12, “Transfer Policy” (sections 12-III.C, 12-III.F, and 12-IV.D); and Chapter 13, “Lease Terminations” (sections 13-III.F and 13-IV.D). 16-VII.B. DEFINITIONS [24 CFR 5.2003, FR Notice 8/6/13] As used in VAWA:
• The term affiliated individual means, with respect to a person:
- A spouse, parent, brother or sister, or child of that individual, or an individual to whom that person stands in the position or place of a parent; or - Any individual, tenant or lawful occupant living in the household of the victim of domestic violence, dating violence, sexual assault, or stalking. • The term bifurcate means, with respect to a public housing or Section 8 lease, to divide a lease as a matter of law such that certain tenants can be evicted or removed while the remaining family members’ lease and occupancy rights are allowed to remain intact. • The term dating violence means violence committed by a person who is or has been in a social relationship of a romantic or intimate nature with the victim; and where the existence of such a relationship shall be determined based on a consideration of the following factors:
- The length of the relationship
- The type of relationship
- The frequency of interaction between the persons involved in the relationship Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-24 • The term domestic violence includes felony or misdemeanor crimes committed by a current or former spouse or intimate partner of the victim under the family or domestic violence laws of the jurisdiction receiving grant funding, and in the case of victim services, includes the user or attempted use of physical abuse or sexual abuse, or a pattern of any other coercive behavior committed, enabled, or solicited to gain or maintain power and control over a victim, including verbal, psychological, economic, or technological abuse that may or may not constitute criminal behavior, by a person who is:
- The current or former spouse or intimate partner of the victim, or person similarly situated to a spouse or intimate partner of the victim
- A person who is cohabitating or has cohabitated with the victim as a spouse or intimate partner
- A person with whom the victim shares a child in common - A person who commits acts against an youth or adult victim who is protected from those acts under the domestic or family violence laws of the jurisdiction • The term economic abuse means behavior that is coercive, deceptive, or unreasonably controls or restrains a person’s ability to acquire, use, or maintain economic resources to which they are entitled, including using coercion, fraud, and manipulation to:
- Restrict a person’s access to money, assets, credit, or financial information - Unfairly use a person’s personal economic resources, including money, assets, and credit, for one’s own advantage
- Exert undue influence over a person’s financial and economic behavior or decisions, including forcing default on joint or other financial obligations, exploiting powers of attorney, guardianship, or conservatorship, or to whom one has a fiduciary duty • The term sexual assault means:
- Any nonconsensual sexual act proscribed by Federal, tribal, or State law, including when the victim lacks the capacity to consent
• The term stalking means:
- To engage in a course of conduct directed at a specific person that would cause a reasonable person to fear for their safety or the safety of others, or suffer substantial emotional distress.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-25 • The term technological abuse means an act or pattern of behavior that occurs within domestic violence, dating violence, sexual assault, or stalking and is intended to harm, threaten, intimidate, control, stalk, harass, impersonate, exploit, extort, or monitor another person, except as otherwise permitted by law, that occurs using any form of technology, including but not limited to:
- Internet enabled devices
- Online spaces and platforms
- Computers
- Mobile devices
- Cameras and imaging programs
- Apps
- Location tracking devices
- Communication technologies
- Any other emergency technologies
16-VII.C. NOTIFICATION [24 CFR 5.2005(a)]
Notification to Public
The PHA adopts the following policy to help ensure that all actual and potential beneficiaries of its public housing program are aware of their rights under VAWA.
PHA Policy
The PHA will post the following information regarding VAWA in its offices and on its website. It will also make the information readily available to anyone who requests it.
A notice of occupancy rights under VAWA to public housing program applicants and participants who are or have been victims of domestic violence, dating violence, sexual assault, or stalking (Form HUD-5380, see Exhibit 16-1) A copy of form HUD-5382, Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking and Alternate Documentation (see Exhibit 16-2) A copy of the PHA’s emergency transfer plan (Exhibit 16-3) A copy of HUD’s Emergency Transfer Request for Certain Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking, Form HUD-5383 (Exhibit 16-4)
The National Domestic Violence Hot Line: 1-800-799-SAFE (7233) or 1-800- 787-3224 (TTY) (included in Exhibit 16-1)
Contact information for local victim advocacy groups or service providers Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-26 Notification to Applicants and Tenants [24 CFR 5.2005(a)(1)] PHAs are required to inform public housing applicants and tenants of their rights under VAWA, including their right to confidentiality and the limits thereof, when they are denied assistance, when they are admitted to the program, and when they are notified of an eviction or termination of housing benefits.
The PHA must distribute a notice of VAWA rights, along with the VAWA self-certification form (HUD-5382) at each of these three junctures.
PHA Policy
The VAWA information provided to applicants and participants will consist of the notices in Exhibit 16-1 and 16-2.
The PHA will provide all applicants with information about VAWA at the time they request an application for housing assistance. The PHA will also include such information in all notices of denial of assistance (see section 3-III.F).
The PHA will provide all tenants with information about VAWA at the time of admission (see section 8-I.B) and at annual reexamination. The PHA will also include such information in all lease termination notices (see section 13-IV.D).
The PHA is not limited to providing VAWA information at the times specified in the above policy. If the PHA decides to provide VAWA information to a tenant following an incident of domestic violence, Notice PIH 2017-08 cautions against sending the information by mail, since the abuser may be monitoring the mail. The notice recommends that in such cases the PHA make alternative delivery arrangements that will not put the victim at risk.
PHA Policy
Whenever the PHA has reason to suspect that providing information about VAWA to a public housing tenant might place a victim of domestic violence at risk, it will attempt to deliver the information by hand directly to the victim or by having the victim come to an office or other space that may be safer for the individual, making reasonable accommodations as necessary. For example, the PHA may decide not to send mail regarding VAWA protections to the victim’s unit if the PHA believes the perpetrator may have access to the victim’s mail, unless requested by the victim.
When discussing VAWA with the victim, the PHA will take reasonable precautions to ensure that no one can overhear the conversation such as having conversations in a private room.
The victim may, but is not required to, designate an attorney, advocate, or other secure contact for communications regarding VAWA protections.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-27 16-VII.D. DOCUMENTATION [24 CFR 5.2007]
A PHA presented with a claim for initial or continued assistance based on status as a victim of domestic violence, dating violence, sexual assault, stalking, human trafficking, or criminal activity related to any of these forms of abuse may—but is not required to—request that the individual making the claim document the abuse. Any request for documentation must be in writing, and the individual must be allowed at least 14 business days after receipt of the request to submit the documentation. The PHA may extend this time period at its discretion. [24 CFR
5.2007(a)]
The individual may satisfy the PHA’s request by providing any one of the following three forms of documentation [24 CFR 5.2007(b)]:
(1) A completed and signed HUD-approved certification form (HUD-5382, Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking), which must include the name of the perpetrator only if the name of the perpetrator is safe to provide and is known to the victim. The form may be filled out and submitted on behalf of the victim. (2) A federal, state, tribal, territorial, or local police report or court record, or an administrative record
(3) Documentation signed by a person who has assisted the victim in addressing domestic violence, dating violence, sexual assault, stalking, or human trafficking, or the effects of such abuse. This person may be an employee, agent, or volunteer of a victim service provider; an attorney; a mental health professional; or a medical professional. The person signing the documentation must attest under penalty of perjury to the person’s belief that the incidents in question are bona fide incidents of abuse. The victim must also sign the documentation.
The PHA may not require third-party documentation (forms 2 and 3) in addition to certification (form 1), except as specified below under “Conflicting Documentation,” nor may it require certification in addition to third-party documentation [FR Notice 11/16/16].
PHA Policy
Any request for documentation of domestic violence, dating violence, sexual assault, stalking, or human trafficking will be in writing, will specify a deadline of 14 business days following receipt of the request, will describe the three forms of acceptable documentation, will provide explicit instructions on where and to whom the documentation must be submitted, and will state the consequences for failure to submit the documentation or request an extension in writing by the deadline.
The PHA may, in its discretion, extend the deadline for 10 business days. In determining whether to extend the deadline, the PHA will consider factors that may contribute to the victim’s inability to provide documentation in a timely manner, including cognitive limitations, disabilities, limited English proficiency, absence from the unit, administrative delays, the danger of further violence, and the victim’s need to address health or safety issues. Any extension granted by the PHA will be in writing.
Once the victim provides documentation, the PHA will acknowledge receipt of the documentation within 10 business days.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-28 Conflicting Documentation [24 CFR 5.2007(e)]
In cases where the PHA receives conflicting certification documents from two or more members of a household, each claiming to be a victim and naming one or more of the other petitioning household members as the perpetrator, the PHA may determine which is the true victim by requiring each to provide acceptable third-party documentation, as described above (forms 2 and 3). The PHA may also request third-party documentation when submitted documentation contains information that conflicts with existing information already available to the PHA. The PHA must honor any court orders issued to protect the victim or to address the distribution of property. Individuals have 30 calendar days to return third-party verification to the PHA. If the PHA does not receive third-party documentation, and the PHA will deny or terminate assistance as a result, the PHA must hold separate hearings for the tenants [Notice PIH 2017-08].
PHA Policy
If presented with conflicting certification documents from members of the same household, the PHA will attempt to determine which is the true victim by requiring each of them to provide third-party documentation in accordance with 24 CFR 5.2007(e) and by following any HUD guidance on how such determinations should be made. When requesting third-party documents, the PHA will provide contact information for local domestic violence and legal aid offices. In such cases, applicants or tenants will be given 30 calendar days from the date of the request to provide such documentation.
If the PHA does not receive third-party documentation within the required timeframe (and any extensions) the PHA will deny VAWA protections and will notify the applicant or tenant in writing of the denial. If, as a result, the applicant or tenant is denied or terminated from the program, the PHA will hold separate hearings for the applicants or tenants.
Discretion to Require No Formal Documentation [24 CFR 5.2007(d)] The PHA has the discretion to provide benefits to an individual based solely on the individual’s statement or other corroborating evidence—i.e., without requiring formal documentation of abuse in accordance with 24 CFR 5.2007(b). HUD recommends documentation in a confidential manner when a verbal statement or other evidence is accepted.
PHA Policy
If the PHA accepts an individual’s statement or other corroborating evidence (as determined by the victim) of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the PHA will document acceptance of the statement or evidence in the individual’s file.
Failure to Provide Documentation [24 CFR 5.2007(c)]
In order to deny relief for protection under VAWA, a PHA must provide the individual requesting relief with a written request for documentation of abuse. If the individual fails to provide the documentation within 14 business days from the date of receipt, or such longer time as the PHA may allow, the PHA may deny relief for protection under VAWA.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-29 16-VII.E. CONFIDENTIALITY [24 CFR 5.2007(b)(4)]
All information provided to the PHA regarding domestic violence, dating violence, sexual assault, stalking, or human trafficking, including the fact that an individual is a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, must be retained in confidence. This means that the PHA (1) may not enter the information into any shared database, (2) may not allow employees or others to access the information unless they are explicitly authorized to do so and have a need to know the information for purposes of their work, and (3) may not provide the information to any other entity or individual, except to the extent that the disclosure is (a) requested or consented to by the individual in writing, (b) required for use in an eviction proceeding, or (c) otherwise required by applicable law.
PHA Policy
If disclosure is required for use in an eviction proceeding or is otherwise required by applicable law, the PHA will inform the victim before disclosure occurs so that safety risks can be identified and addressed.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-31 EXHIBIT 16-1: SAMPLE NOTICE OF OCCUPANCY RIGHTS UNDER THE VIOLENCE AGAINST WOMEN ACT, FORM HUD-5380
[Insert Name of Housing Provider]
Notice of Occupancy Rights under the Violence Against Women Act1 To all Tenants and Applicants
The Violence Against Women Act (VAWA) provides protections for victims of domestic violence, dating violence, sexual assault, or stalking. VAWA protections are not only available to women, but are available equally to all individuals regardless of sex, gender identity, or sexual orientation.2
The U.S. Department of Housing and Urban Development (HUD) is the Federal agency that oversees that public housing is in compliance with VAWA. This notice explains your rights under VAWA. A HUD-approved certification form is attached to this notice. You can fill out this form to show that you are or have been a victim of domestic violence, dating violence, sexual assault, or stalking, and that you wish to use your rights under VAWA.” Protections for Applicants
If you otherwise qualify for assistance under public housing, you cannot be denied admission or denied assistance because you are or have been a victim of domestic violence, dating violence, sexual assault, or stalking.
Protections for Tenants
If you are receiving assistance under public housing, you may not be denied assistance, terminated from participation, or be evicted from your rental housing because you are or have been a victim of domestic violence, dating violence, sexual assault, or stalking.
Also, if you or an affiliated individual of yours is or has been the victim of domestic violence, dating violence, sexual assault, or stalking by a member of your household or any guest, you may not be denied rental assistance or occupancy rights under public housing solely on the basis of criminal activity directly relating to that domestic violence, dating violence, sexual assault, or stalking.
Affiliated individual means your spouse, parent, brother, sister, or child, or a person to whom you stand in the place of a parent or guardian (for example, the affiliated individual is in your care, custody, or control); or any individual, tenant, or lawful occupant living in your household. 1 Despite the name of this law, VAWA protection is available regardless of sex, gender identity, or sexual orientation.
2 Housing providers cannot discriminate on the basis of any protected characteristic, including race, color, national origin, religion, sex, familial status, disability, or age. HUD-assisted and HUD-insured housing must be made available to all otherwise eligible individuals regardless of actual or perceived sexual orientation, gender identity, or marital status.
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© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-32 Removing the Abuser or Perpetrator from the Household
The PHA may divide (bifurcate) your lease in order to evict the individual or terminate the assistance of the individual who has engaged in criminal activity (the abuser or perpetrator) directly relating to domestic violence, dating violence, sexual assault, or stalking.
If the PHA chooses to remove the abuser or perpetrator, the PHA may not take away the rights of eligible tenants to the unit or otherwise punish the remaining tenants. If the evicted abuser or perpetrator was the sole tenant to have established eligibility for assistance under the program, the PHA must allow the tenant who is or has been a victim and other household members to remain in the unit for 30 days, in order to establish eligibility under the program or under another HUD housing program covered by VAWA, or, find alternative housing.
In removing the abuser or perpetrator from the household, the PHA must follow Federal, State, and local eviction procedures. In order to divide a lease, the PHA may, but is not required to, ask you for documentation or certification of the incidences of domestic violence, dating violence, sexual assault, or stalking.
Moving to Another Unit
Upon your request, the PHA may permit you to move to another unit, subject to the availability of other units, and still keep your assistance. In order to approve a request, the PHA may ask you to provide documentation that you are requesting to move because of an incidence of domestic violence, dating violence, sexual assault, or stalking. If the request is a request for emergency transfer, the PHA may ask you to submit a written request or fill out a form where you certify that you meet the criteria for an emergency transfer under VAWA. The criteria are:
1. You are a victim of domestic violence, dating violence, sexual assault, or stalking.
If your PHA does not already have documentation that you are a victim of domestic violence, dating violence, sexual assault, or stalking, your housing provider may ask you for such documentation, as described in the documentation section below.
2. You expressly request the emergency transfer. Your PHA may choose to require that you submit a form, or may accept another written or oral request.
3. You reasonably believe you are threatened with imminent harm from further violence if you remain in your current unit. This means you have a reason to fear that if you do not receive a transfer you would suffer violence in the very near future.
OR
You are a victim of sexual assault and the assault occurred on the premises during the 90-calendar-day period before you request a transfer. If you are a victim of sexual assault, then in addition to qualifying for an emergency transfer because you reasonably believe you are threatened with imminent harm from further violence if you remain in your unit, you may qualify for an emergency transfer if the sexual assault occurred on the premises of the property from which you are seeking your transfer, and that assault happened within the 90-calendarday period before you expressly request the transfer.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-33 The PHA will keep confidential requests for emergency transfers by victims of domestic violence, dating violence, sexual assault, or stalking, and the location of any move by such victims and their families.
The PHA’s emergency transfer plan provides further information on emergency transfers, and the PHA must make a copy of its emergency transfer plan available to you if you ask to see it.
Documenting You Are or Have Been a Victim of Domestic Violence, Dating Violence, Sexual Assault or Stalking
The PHA can, but is not required to, ask you to provide documentation to “certify” that you are or have been a victim of domestic violence, dating violence, sexual assault, or stalking. Such request from the PHA must be in writing, and the PHA must give you at least 14 business days (Saturdays, Sundays, and federal holidays do not count) from the day you receive the request to provide the documentation. The PHA may, but does not have to, extend the deadline for the submission of documentation upon your request.
You can provide one of the following to the PHA as documentation. It is your choice which of the following to submit if HP asks you to provide documentation that you are or have been a victim of domestic violence, dating violence, sexual assault, or stalking. • A complete HUD-approved certification form given to you by the PHA with this notice, that documents an incident of domestic violence, dating violence, sexual assault, or stalking. The form will ask for your name, the date, time, and location of the incident of domestic violence, dating violence, sexual assault, or stalking, and a description of the incident. The certification form provides for including the name of the abuser or perpetrator if the name of the abuser or perpetrator is known and is safe to provide. • A record of a Federal, State, tribal, territorial, or local law enforcement agency, court, or administrative agency that documents the incident of domestic violence, dating violence, sexual assault, or stalking. Examples of such records include police reports, protective orders, and restraining orders, among others.
• A statement, which you must sign, along with the signature of an employee, agent, or volunteer of a victim service provider, an attorney, a medical professional or a mental health professional (collectively, “professional”) from whom you sought assistance in addressing domestic violence, dating violence, sexual assault, or stalking, or the effects of abuse, and with the professional selected by you attesting under penalty of perjury that they believe that the incident or incidents of domestic violence, dating violence, sexual assault, or stalking are grounds for protection.
• Any other statement or evidence that the PHA has agreed to accept.
If you fail or refuse to provide one of these documents within the 14 business days, the PHA does not have to provide you with the protections contained in this notice.
If the PHA receives conflicting evidence that an incident of domestic violence, dating violence, sexual assault, or stalking has been committed (such as certification forms from two or more members of a household each claiming to be a victim and naming one or more of the other petitioning household members as the abuser or perpetrator), the PHA has the right to request that you provide third-party documentation within thirty 30 calendar days in order to resolve the conflict. If you fail or refuse to provide third-party documentation where there is conflicting evidence, the PHA does not have to provide you with the protections contained in this notice.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-34 Confidentiality
The PHA must keep confidential any information you provide related to the exercise of your rights under VAWA, including the fact that you are exercising your rights under VAWA.
The PHA must not allow any individual administering assistance or other services on behalf of the PHA (for example, employees and contractors) to have access to confidential information unless for reasons that specifically call for these individuals to have access to this information under applicable federal, state, or local law.
The PHA must not enter your information into any shared database or disclose your information to any other entity or individual. The PHA, however, may disclose the information provided if:
• You give written permission to the PHA to release the information on a time limited basis.
• The PHA needs to use the information in an eviction or termination proceeding, such as to evict your abuser or perpetrator or terminate your abuser or perpetrator from assistance under this program.
• A law requires the PHA to release the information.
VAWA does not limit the PHA’s duty to honor court orders about access to or control of the property. This includes orders issued to protect a victim and orders dividing property among household members in cases where a family breaks up.
Reasons a Tenant Eligible for Occupancy Rights under VAWA May Be Evicted or Assistance May Be Terminated
You can be evicted and your assistance can be terminated for serious or repeated lease violations that are not related to domestic violence, dating violence, sexual assault, or stalking committed against you. However, the PHA cannot hold tenants who have been victims of domestic violence, dating violence, sexual assault, or stalking to a more demanding set of rules than it applies to tenants who have not been victims of domestic violence, dating violence, sexual assault, or stalking.
The protections described in this notice might not apply, and you could be evicted and your assistance terminated, if the PHA can demonstrate that not evicting you or terminating your assistance would present a real physical danger that:
1. Would occur within an immediate time frame, and
2. Could result in death or serious bodily harm to other tenants or those who work on the property.
If the PHA can demonstrate the above, the PHA should only terminate your assistance or evict you if there are no other actions that could be taken to reduce or eliminate the threat.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-35 Other Laws
VAWA does not replace any Federal, State, or local law that provides greater protection for victims of domestic violence, dating violence, sexual assault, or stalking. You may be entitled to additional housing protections for victims of domestic violence, dating violence, sexual assault, or stalking under other Federal laws, as well as under State and local laws.
Non-Compliance with The Requirements of This Notice
You may report your PHA for violations of these rights and seek additional assistance, if needed, by contacting or filing a complaint with [insert contact information for any intermediary, if applicable] or [insert HUD field office].
For Additional Information
You may view a copy of HUD’s final VAWA rule at: https://www.gpo.gov/fdsys/pkg/FR-2016- 11-16/pdf/2016-25888.pdf.
Additionally, the PHA must make a copy of HUD’s VAWA regulations available to you if you ask to see them.
For questions regarding VAWA, please contact [insert name of program or rental assistance contact information able to answer questions on VAWA].
For help regarding an abusive relationship, you may call the National Domestic Violence Hotline at 1-800-799-7233 or, for persons with hearing impairments, 1-800-787-3224 (TTY). You may also contact [Insert contact information for relevant local organizations].
For tenants who are or have been victims of stalking seeking help may visit the National Center for Victims of Crime’s Stalking Resource Center at https://www.victimsofcrime.org/ourprograms/stalking-resource-center.
For help regarding sexual assault, you may contact [Insert contact information for relevant organizations]
Victims of stalking seeking help may contact [Insert contact information for relevant organizations].
Attachment: Certification form HUD-5382 [form approved for this program to be included] Item 2.
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Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-37 EXHIBIT 16-2: CERTIFICATION OF DOMESTIC VIOLENCE, DATING VIOLENCE,
SEXUAL ASSAULT, OR STALKING AND ALTERNATE DOCUMENTATION, FORM HUD-5382
CERTIFICATION OF U.S. Department of Housing OMB Approval No. 2577-0286 DOMESTIC VIOLENCE, and Urban Development Exp. 06/30/2017
DATING VIOLENCE,
SEXUAL ASSAULT, OR STALKING,
AND ALTERNATE DOCUMENTATION
Purpose of Form: The Violence Against Women Act (“VAWA”) protects applicants, tenants, and program participants in certain HUD programs from being evicted, denied housing assistance, or terminated from housing assistance based on acts of domestic violence, dating violence, sexual assault, or stalking against them. Despite the name of this law, VAWA protection is available to victims of domestic violence, dating violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation.
Use of This Optional Form: If you are seeking VAWA protections from your housing provider, your housing provider may give you a written request that asks you to submit documentation about the incident or incidents of domestic violence, dating violence, sexual assault, or stalking.
In response to this request, you or someone on your behalf may complete this optional form and submit it to your housing provider, or you may submit one of the following types of third-party documentation:
(1) A document signed by you and an employee, agent, or volunteer of a victim service provider, an attorney, or medical professional, or a mental health professional (collectively, “professional”) from whom you have sought assistance relating to domestic violence, dating violence, sexual assault, or stalking, or the effects of abuse. The document must specify, under penalty of perjury, that the professional believes the incident or incidents of domestic violence, dating violence, sexual assault, or stalking occurred and meet the definition of “domestic violence,” “dating violence,” “sexual assault,” or “stalking” in HUD’s regulations at 24 CFR 5.2003.
(2) A record of a Federal, State, tribal, territorial or local law enforcement agency, court, or administrative agency; or
(3) At the discretion of the housing provider, a statement or other evidence provided by the applicant or tenant.
Submission of Documentation: The time period to submit documentation is 14 business days from the date that you receive a written request from your housing provider asking that you provide documentation of the occurrence of domestic violence, dating violence, sexual assault, or stalking. Your housing provider may, but is not required to, extend the time period to submit the documentation, if you request an extension of the time period. If the requested information is not received within 14 business days of when you received the request for the documentation, or any extension of the date provided by your housing provider, your housing provider does not need to grant you any of the VAWA protections. Distribution or issuance of this form does not serve as a written request for certification.
Confidentiality: All information provided to your housing provider concerning the incident(s) of domestic violence, dating violence, sexual assault, or stalking shall be kept confidential and such details shall not be entered into any shared database. Employees of your housing provider are not to have access to these details unless to grant or deny VAWA protections to you, and such employees may not disclose this information to any other entity or individual, except to the extent that disclosure is: (i) consented to by you in writing in a time-limited release; (ii) required for use in an eviction proceeding or hearing regarding termination of assistance; or (iii) otherwise required by applicable law.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-38
TO BE COMPLETED BY OR ON BEHALF OF THE VICTIM OF DOMESTIC VIOLENCE,
DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING
1. Date the written request is received by victim: _________________________________________
2. Name of victim: ___________________________________________________________________
3. Your name (if different from victim’s):________________________________________________
4. Name(s) of other family member(s) listed on the lease:___________________________________ ___________________________________________________________________________________
5. Residence of victim: ________________________________________________________________
6. Name of the accused perpetrator (if known and can be safely disclosed):____________________ __________________________________________________________________________________
7. Relationship of the accused perpetrator to the victim:___________________________________
8. Date(s) and times(s) of incident(s) (if known):___________________________________________ _________________________________________________________________
10. Location of incident(s):_____________________________________________________________ This is to certify that the information provided on this form is true and correct to the best of my knowledge and recollection, and that the individual named above in Item 2 is or has been a victim of domestic violence, dating violence, sexual assault, or stalking. I acknowledge that submission of false information could jeopardize program eligibility and could be the basis for denial of admission, termination of assistance, or eviction.
Signature __________________________________Signed on (Date) ___________________________ Public Reporting Burden: The public reporting burden for this collection of information is estimated to average 1 hour per response. This includes the time for collecting, reviewing, and reporting the data. The information provided is to be used by the housing provider to request certification that the applicant or tenant is a victim of domestic violence, dating violence, sexual assault, or stalking. The information is subject to the confidentiality requirements of VAWA. This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid Office of Management and Budget control number.
In your own words, briefly describe the incident(s):
______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-39 EXHIBIT 16-3: EMERGENCY TRANSFER PLAN FOR VICTIMS OF DOMESTIC
VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING
Attachment: Certification form HUD-5382
[Insert name of covered housing provider]
Emergency Transfer Plan for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking
Public Housing Program
Emergency Transfers
The PHA is concerned about the safety of its tenants, and such concern extends to tenants who are victims of domestic violence, dating violence, sexual assault, or stalking. In accordance with the Violence Against Women Act (VAWA),3 the PHA allows tenants who are victims of domestic violence, dating violence, sexual assault, or stalking to request an emergency transfer from the tenant’s current unit to another unit. The ability to request a transfer is available regardless of sex, gender identity, or sexual orientation. 4 The ability of the PHA to honor such request for tenants currently receiving assistance, however, may depend upon a preliminary determination that the tenant is or has been a victim of domestic violence, dating violence, sexual assault, or stalking, and on whether the PHA has another dwelling unit that is available and is safe to offer the tenant for temporary or more permanent occupancy.
This plan identifies tenants who are eligible for an emergency transfer, the documentation needed to request an emergency transfer, confidentiality protections, how an emergency transfer may occur, and guidance to tenants on safety and security. This plan is based on a model emergency transfer plan published by the U.S. Department of Housing and Urban Development (HUD), the federal agency that oversees that the public housing and housing choice voucher (HCV) programs are in compliance with VAWA.
Eligibility for Emergency Transfers
A tenant who is a victim of domestic violence, dating violence, sexual assault, or stalking, as provided in HUD’s regulations at 24 CFR part 5, subpart L, is eligible for an emergency transfer, if the tenant reasonably believes that there is a threat of imminent harm from further violence if the tenant remains within the same unit. If the tenant is a victim of sexual assault, the tenant may also be eligible to transfer if the sexual assault occurred on the premises within the 90-calendar- day period preceding a request for an emergency transfer. 3 Despite the name of this law, VAWA protection is available to all victims of domestic violence, dating violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation. 4 Housing providers cannot discriminate on the basis of any protected characteristic, including race, color, national origin, religion, sex, familial status, disability, or age. HUD-assisted and HUD-insured housing must be made available to all otherwise eligible individuals regardless of actual or perceived sexual orientation, gender identity, or marital status.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-40 A tenant requesting an emergency transfer must expressly request the transfer in accordance with the procedures described in this plan.
Tenants who are not in good standing may still request an emergency transfer if they meet the eligibility requirements in this section.
Emergency Transfer Request Documentation
To request an emergency transfer, the tenant shall notify the PHA’s management office and submit a written request for a transfer to any PHA office. The PHA will provide reasonable accommodations to this policy for individuals with disabilities. The tenant’s written request for an emergency transfer should include either:
1. A statement expressing that the tenant reasonably believes that there is a threat of imminent harm from further violence if the tenant were to remain in the same dwelling unit assisted under the PHA’s program; OR
2. A statement that the tenant was a sexual assault victim and that the sexual assault occurred on the premises during the 90-calendar-day period preceding the tenant’s request for an emergency transfer.
Confidentiality
The PHA will keep confidential any information that the tenant submits in requesting an emergency transfer, and information about the emergency transfer, unless the tenant gives the PHA written permission to release the information on a time-limited basis, or disclosure of the information is required by law or required for use in an eviction proceeding or hearing regarding termination of assistance from the covered program. This includes keeping confidential the new location of the dwelling unit of the tenant, if one is provided, from the person or persons that committed an act of domestic violence, dating violence, sexual assault, or stalking against the tenant. See the Notice of Occupancy Rights under the Violence against Women Act for All Tenants for more information about the PHA’s responsibility to maintain the confidentiality of information related to incidents of domestic violence, dating violence, sexual assault, or stalking.
Emergency Transfer Timing and Availability
The PHA cannot guarantee that a transfer request will be approved or how long it will take to process a transfer request. The PHA will, however, act as quickly as possible to move a tenant who is a victim of domestic violence, dating violence, sexual assault, or stalking to another unit, subject to availability and safety of a unit. If a tenant reasonably believes a proposed transfer would not be safe, the tenant may request a transfer to a different unit. If a unit is available, the transferred tenant must agree to abide by the terms and conditions that govern occupancy in the unit to which the tenant has been transferred. The PHA may be unable to transfer a tenant to a particular unit if the tenant has not or cannot establish eligibility for that unit.
If the PHA has no safe and available units for which a tenant who needs an emergency transfer is eligible, the PHA will assist the tenant in identifying other housing providers who may have safe and available units to which the tenant could move. At the tenant’s request, the PHA will also assist tenants in contacting the local organizations offering assistance to victims of domestic violence, dating violence, sexual assault, or stalking that are attached to this plan.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-41 Emergency Transfers: Public Housing (PH) Program
If you are a public housing resident and request an emergency transfer as described in this plan, the PHA will attempt to assist you in moving to a safe unit quickly. The PHA will make exceptions as required to policies restricting moves.
Emergency transfers for which you are not required to apply for assistance include the following:
• Public housing unit in a different development
• Public housing unit in the same development, if you determine that the unit is safe At your request, the PHA will refer you to organizations that may be able to further assist you.
You may also request an emergency transfer to the following programs for which you are required to apply for assistance:
• HCV tenant-based program
• HCV project-based assistance
• Other programs administered by the PHA (such as state housing programs) Emergency transfers will not take priority over waiting list admissions for these types of assistance. At your request, the PHA will refer you to organizations that may be able to further assist you.
Safety and Security of Tenants
Pending processing of the transfer and the actual transfer, if it is approved and occurs, the tenant is urged to take all reasonable precautions to be safe.
Tenants who are or have been victims of domestic violence are encouraged to contact the National Domestic Violence Hotline at 1-800-799-7233, or a local domestic violence shelter, for assistance in creating a safety plan. For persons with hearing impairments, that hotline can be accessed by calling 1-800-787-3224 (TTY).
Tenants who have been victims of sexual assault may call the Rape, Abuse, and Incest National Network’s National Sexual Assault Hotline at 1-800-656-HOPE, or visit the online hotline at https://ohl.rainn.org/online/.
Tenants who are or have been victims of stalking seeking help may visit the National Center for Victims of Crime’s Stalking Resource Center at https://www.victimsofcrime.org/ourprograms/stalking-resource-center.
Attachment: Local organizations offering assistance to victims of domestic violence, dating violence, sexual assault, or stalking.
Item 2.
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Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-43 EXHIBIT 16-4: EMERGENCY TRANSFER REQUEST FOR CERTAIN VICTIMS OF
DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING, FORM HUD-5383
EMERGENCY TRANSFER U.S. Department of Housing OMB Approval No. 2577-0286 REQUEST FOR CERTAIN and Urban Development Exp. 06/30/2017
VICTIMS OF DOMESTIC
VIOLENCE, DATING VIOLENCE,
SEXUAL ASSAULT, OR STALKING
Purpose of Form: If you are a victim of domestic violence, dating violence, sexual assault, or stalking, and you are seeking an emergency transfer, you may use this form to request an emergency transfer and certify that you meet the requirements of eligibility for an emergency transfer under the Violence Against Women Act (VAWA). Although the statutory name references women, VAWA rights and protections apply to all victims of domestic violence, dating violence, sexual assault or stalking. Using this form does not necessarily mean that you will receive an emergency transfer. See your housing provider’s emergency transfer plan for more information about the availability of emergency transfers.
The requirements you must meet are:
(1) You are a victim of domestic violence, dating violence, sexual assault, or stalking.
If your housing provider does not already have documentation that you are a victim of domestic violence, dating violence, sexual assault, or stalking, your housing provider may ask you for such documentation. In response, you may submit Form HUD-5382, or any one of the other types of documentation listed on that Form. (2) You expressly request the emergency transfer. Submission of this form confirms that you have expressly requested a transfer. Your housing provider may choose to require that you submit this form, or may accept another written or oral request. Please see your housing provider’s emergency transfer plan for more details. (3) You reasonably believe you are threatened with imminent harm from further violence if you remain in your current unit. This means you have a reason to fear that if you do not receive a transfer you would suffer violence in the very near future.
OR
You are a victim of sexual assault and the assault occurred on the premises during the 90-calendar-day period before you request a transfer. If you are a victim of sexual assault, then in addition to qualifying for an emergency transfer because you reasonably believe you are threatened with imminent harm from further violence if you remain in your unit, you may qualify for an emergency transfer if the sexual assault occurred on the premises of the property from which you are seeking your transfer, and that assault happened within the 90-calendar-day period before you submit this form or otherwise expressly request the transfer.
Submission of Documentation: If you have third-party documentation that demonstrates why you are eligible for an emergency transfer, you should submit that documentation to your housing provider if it is safe for you to do so. Examples of third party documentation include, but are not limited to: a letter or other documentation from a victim service provider, social worker, legal assistance provider, pastoral counselor, mental health provider, or other professional from whom you have sought assistance; a current restraining order; a recent court order or other court records; a law enforcement report or records; communication records from the perpetrator of the violence or family members or friends of the perpetrator of the violence, including emails, voicemails, text messages, and social media posts.
Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-44 Confidentiality: All information provided to your housing provider concerning the incident(s) of domestic violence, dating violence, sexual assault, or stalking, and concerning your request for an emergency transfer shall be kept confidential. Such details shall not be entered into any shared database.
Employees of your housing provider are not to have access to these details unless to grant or deny VAWA protections or an emergency transfer to you. Such employees may not disclose this information to any other entity or individual, except to the extent that disclosure is: (i) consented to by you in writing in a time-limited release; (ii) required for use in an eviction proceeding or hearing regarding termination of assistance; or (iii) otherwise required by applicable law.
TO BE COMPLETED BY OR ON BEHALF OF THE PERSON REQUESTING A TRANSFER
1. Name of victim requesting an emergency transfer: ______________________________________
2. Your name (if different from victim’s)_________________________________________________
3. Name(s) of other family member(s) listed on the lease:____________________________________ ___________________________________________________________________________________
4. Name(s) of other family member(s) who would transfer with the victim:____________________ ____________________________________________________________________________________
5. Address of location from which the victim seeks to transfer: _______________________________________
6. Address or phone number for contacting the victim:____________________________________
7. Name of the accused perpetrator (if known and can be safely disclosed):___________________
8. Relationship of the accused perpetrator to the victim:___________________________________
9. Date(s), Time(s) and location(s) of incident(s):___________________________________________ _____________________________________________________________________________________
10. Is the person requesting the transfer a victim of a sexual assault that occurred in the past 90 days on the premises of the property from which the victim is seeking a transfer? If yes, skip question 11. If no, fill out question 11. ______________
11. Describe why the victim believes they are threatened with imminent harm from further violence if they remain in their current unit.
___________________________________________________________________________________ _____________________________________________________________________________________
12. If voluntarily provided, list any third-party documentation you are providing along with this notice: ___________________________________________________________________ Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 16-45 This is to certify that the information provided on this form is true and correct to the best of my knowledge, and that the individual named above in Item 1 meets the requirement laid out on this form for an emergency transfer. I acknowledge that submission of false information could jeopardize program eligibility and could be the basis for denial of admission, termination of assistance, or eviction.
Signature __________________________________Signed on (Date) ___________________________ Item 2.
© Copyright 2023 Nan McKay & Associates, Inc. ACOP 11/1/23 Unlimited copies may be made for internal use. Page 1
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Item 2.
© Copyright 2023 Nan McKay & Associates ACOP 11/1/23
Unlimited copies may be made for internal use.
GL-1
GLOSSARY
A. ACRONYMS USED IN PUBLIC HOUSING
ACC Annual contributions contract
ACOP Admissions and continued occupancy policy
ADA Americans with Disabilities Act of 1990
AIDS Acquired immune deficiency syndrome
AMI Area median income
AMP Asset management project
BR Bedroom
CDBG Community Development Block Grant (Program)
CFP Capital fund program
CFR Code of Federal Regulations (published federal rules that define and implement laws; commonly referred to as “the regulations”)
COCC Central office cost center
CPI Consumer price index (published monthly by the Department of Labor as an inflation indicator)
EIV Enterprise Income Verification
FDIC Federal Deposit Insurance Corporation
FHA Federal Housing Administration (HUD Office of Housing) FHEO Fair Housing and Equal Opportunity (HUD Office of) FICA Federal Insurance Contributions Act (established Social Security taxes) FMR Fair market rent
FR Federal Register
FSS Family Self-Sufficiency (Program)
FY Fiscal year
FYE Fiscal year end
GAO Government Accountability Office
Item 2.
© Copyright 2023 Nan McKay & Associates ACOP 11/1/23
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GL-2
HA Housing authority or housing agency
HCV Housing choice voucher
HIP Housing Information Portal
HOPE VI Revitalization of Severely Distressed Public Housing Program HOTMA Housing Opportunity through Modernization Act of 2016 HUD Department of Housing and Urban Development
HUDCLIPS HUD Client Information and Policy System
IPA Independent public accountant
IRA Individual retirement account
IRS Internal Revenue Service
IVT Income Validation Tool
JTPA Job Training Partnership Act
LBP Lead-based paint
LEP Limited English proficiency
LIHTC Low-income housing tax credit
MTW Moving to Work
NOFA Notice of funding availability
NSPIRE National Standards for the Physical Inspection of Real Estate OGC HUD's Office of General Counsel
OIG HUD’s Office of Inspector General
OMB Office of Management and Budget
PASS Plan to Achieve Self-Support
PHA Public housing agency
PHAS Public Housing Assessment System
PIH (HUD Office of) Public and Indian Housing
QC Quality control
QHWRA Quality Housing and Work Responsibility Act of 1998 (also known as the Public Housing Reform Act)
Item 2.
© Copyright 2023 Nan McKay & Associates ACOP 11/1/23
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GL-3
RAD Rental Assistance Demonstration Program
REAC (HUD) Real Estate Assessment Center
RFP Request for proposals
RIGI Regional inspector general for investigation (handles fraud and program abuse matters for HUD at the regional office level)
ROSS Resident Opportunity and Supportive Services
SSA Social Security Administration
SSI Supplemental security income
SWICA State wage information collection agency
TANF Temporary assistance for needy families
TR Tenant rent
TTP Total tenant payment
UA Utility allowance
UFAS Uniform Federal Accessibility Standards
UIV Upfront income verification
URP Utility reimbursement payment
VAWA Violence Against Women Act
VCA Voluntary Compliance Agreement
Item 2.
© Copyright 2023 Nan McKay & Associates ACOP 11/1/23
Unlimited copies may be made for internal use.
GL-4
B. GLOSSARY OF PUBLIC HOUSING TERMS
Accessible. The facility or portion of the facility can be approached, entered, and used by persons with disabilities.
Adjusted income. Annual income (as determined under 24 CFR 5.609), of the members of the family residing or intending to reside in the dwelling unit less allowable HUD deductions and allowances.
Affiliated individual. With respect to an individual, a spouse, parent, brother, sister, or child of that individual, or a person to whom that individual stands in loco parentis (in the position or place of a parent), or any individual, tenant, or lawful occupant living in the household of the victim of domestic violence, dating violence, sexual assault, or stalking.
Alternative non-public housing rent. A monthly rent equal to the greater of:
- The applicable fair market rent, as defined in 24 CFR part 888, subpart A, for the unit; or - The amount of the monthly subsidy provided for the unit, which will be determined by adding the per unit assistance provided to a public housing property as calculated through the applicable formulas for the Public Housing Capital Fund and Public Housing Operating Fund.
Annual contributions contract (ACC). The written contract between HUD and a PHA under which HUD agrees to provide funding for a program under the 1937 Act, and the PHA agrees to comply with HUD requirements for the program.
Applicant (applicant family). A family that has applied for admission to a program but is not yet a participant in the program.
As-paid states. States where the welfare agency adjusts the shelter and utility component of the welfare grant in accordance with actual housing costs.
Assets. (See net family assets.)
Auxiliary aids. Services or devices that enable persons with impaired sensory, manual, or speaking skills to have an equal opportunity to participate in, and enjoy the benefits of, programs or activities receiving federal financial assistance.
Bifurcate. With respect to a public housing or Section 8 lease, to divide a lease as a matter of law such that certain tenants can be evicted or removed while the remaining family members’ lease and occupancy rights are allowed to remain intact.
Ceiling rent. The highest rent amount the PHA will require a family to pay, for a particular unit size, when the family is paying an income-based rent.
Child. A member of the family other than the family head or spouse who is under 18 years of age.
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GL-5
Child care expenses. Amounts anticipated to be paid by the family for the care of children under 13 years of age during the period for which annual income is computed, but only where such care is necessary to enable a family member to actively seek employment, be gainfully employed, or to further their education and only to the extent such amounts are not reimbursed. The amount deducted shall reflect reasonable charges for child care. In the case of child care necessary to permit employment, the amount deducted shall not exceed the amount of employment income that is included in annual income.
Citizen. A citizen or national of the United States.
Cohead. An individual in the household who is equally responsible for the lease with the head of household. A family may have a cohead or spouse but not both. A cohead never qualifies as a dependent. The cohead must have legal capacity to enter into a lease.
Consent form. Any consent form approved by HUD to be signed by assistance applicants and participants to obtain income information from employers and SWICAs; return information from the Social Security Administration (including wages, net earnings from selfemployment, and retirement income); and return information for unearned income from the IRS. Consent forms expire after a certain time and may authorize the collection of other information to determine eligibility or level of benefits.
Covered families. Statutory term for families who are required to participate in a welfare agency economic self-sufficiency program and who may be subject to a welfare benefit sanction for noncompliance with this obligation. Includes families who receive welfare assistance or other public assistance under a program for which federal, state, or local law requires that a member of the family must participate in an economic self-sufficiency program as a condition for the assistance.
Dating violence. Violence committed by a person who is or has been in a social relationship of a romantic or intimate nature with the victim; and where the existence of such a relationship shall be determined based on a consideration of the following factors:
- The length of the relationship
- The type of relationship
- The frequency of interaction between the persons involved in the relationship Day laborer. 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.
Dependent. A member of the family (which excludes foster children and foster adults) other than the family head or spouse, who is under 18 years of age, or is a person with a disability, or is a full-time student.
Dependent child. In the context of the student eligibility restrictions, a dependent child of a student enrolled in an institution of higher education. The dependent child must also meet the definition of dependent as specified above.
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GL-6
Disability assistance expenses. Reasonable expenses that are anticipated, during the period for which annual income is computed, for attendant care and auxiliary apparatus for a disabled family member, and that are necessary to enable a family member (including the disabled member) to be employed, provided that the expenses are neither paid to a member of the family nor reimbursed by an outside source.
Disabled family. A family whose head, cohead, spouse, or sole member is a person with disabilities; two or more persons with disabilities living together; or one or more persons with disabilities living with one or more live-in aides.
Disabled person. See person with disabilities.
Disallowance. Exclusion from annual income.
Displaced family. A family in which each member, or whose sole member, is a person displaced by governmental action, or a person whose dwelling has been extensively damaged or destroyed as a result of a disaster declared or otherwise formally recognized pursuant to federal disaster relief laws.
Domestic violence. Felony or misdemeanor crimes committed by a current or former spouse or intimate partner of the victim under the family or domestic violence laws of the jurisdiction receiving grant funding, and in the case of victim services, includes the user or attempted use of physical abuse or sexual abuse, or a pattern of any other coercive behavior committed, enabled, or solicited to gain or maintain power and control over a victim, including verbal, psychological, economic, or technological abuse that may or may not constitute criminal behavior, by a person who is:
- The current or former spouse or intimate partner of the victim, or person similarly situated to a spouse or intimate partner of the victim
- A person who is cohabitating or has cohabitated with the victim as a spouse or intimate partner
- A person with whom the victim shares a child in common - A person who commits acts against a youth or adult victim who is protected from those acts under the domestic or family violence laws of the jurisdiction Domicile. The legal residence of the household head or spouse as determined in accordance with state and local law.
Drug-related criminal activity. The illegal manufacture, sale, distribution, or use of a drug, or the possession of a drug with intent to manufacture, sell, distribute, or use the drug.
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GL-7
Earned income. 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.
Economic abuse. Behavior that is coercive, deceptive, or unreasonably controls or restrains a person’s ability to acquire, use, or maintain economic resources to which they are entitle, including using coercion, fraud, and manipulation to:
- Restrict a person’s access to money, assets, credit, or financial information - Unfairly use a person’s personal economic resources, including money, assets, and credit, for one’s own advantage
- Exert undue influence over a person’s financial and economic behavior or decisions, including forcing default on joint or other financial obligations, exploiting powers of attorney, guardianship, or conservatorship, or to whom one has a fiduciary duty Economic self-sufficiency program. Any program designed to encourage, assist, train, or facilitate the economic independence of assisted families, or to provide work for such families. Can include job training, employment counseling, work placement, basic skills training, education, English proficiency, Workfare, financial or household management, apprenticeship, or any other program necessary to ready a participant to work (such as treatment for drug abuse or mental health treatment). Includes any work activities as defined in the Social Security Act (42 U.S.C. 607(d)). Also see 24 CFR 5.603(c).
Effective date. The “effective date” of an examination or reexamination refers to: (i) in the case of an examination for admission, the date of initial occupancy and (ii) in the case of reexamination of an existing tenant, the date the redetermined rent becomes effective.
Elderly family. A family whose head, cohead, spouse, or sole member is a person who is at least 62 years of age; two or more persons who are at least 62 years of age living together; or one or more persons who are at least 62 years of age living with one or more live-in aides.
Elderly person. An individual who is at least 62 years of age.
Eligible family (Family). A family that is income eligible and meets the other requirements of the 1937 Act and Part 5 of 24 CFR.
Employer identification number (EIN). The nine-digit taxpayer identifying number that is assigned to an individual, trust, estate, partnership, association, company, or corporation.
Evidence of citizenship or eligible status. The documents which must be submitted as evidence of citizenship or eligible immigration status. (See 24 CFR 5.508(b).) 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 as determined by HUD, whichever number is higher, with adjustments for smaller and larger families. HUD may establish income ceilings higher or lower than 30 percent of median income if HUD finds such variations are necessary due to unusually high or low family incomes. (See 24 CFR 5.603.)
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GL-8
Facility. All or any portion of buildings, structures, equipment, roads, walks, parking lots, rolling stock, or other real or personal property or interest in the property.
Fair Housing Act. Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988.
Fair market rent (FMR). The rent, including the cost of utilities (except telephone), as established by HUD for units of varying sizes (by number of bedrooms), that must be paid in the housing market area to rent privately owned, existing, decent, safe, and sanitary rental housing of modest (non-luxury) nature with suitable amenities. See periodic publications in the Federal Register in accordance with 24 CFR Part 888.
Family. Includes but is not limited to the following, regardless of actual or perceived sexual orientation, gender identity, or marital status, and can be further defined in PHA policy. - A single person, who may be:
o An elderly person, displaced person, disabled person, near-elderly person, or any other single person;
o 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, and such group includes, but is not limited to:
o 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); o An elderly family;
o A near-elderly family;
o A disabled family;
o A displaced family; and
o The remaining member of a tenant family.
Family self-sufficiency program (FSS program). The program established by a PHA within its jurisdiction to promote self-sufficiency among participating families, including the coordination of supportive services to these families (24 CFR 984.103).
Federal agency. A department of the executive branch of the federal government.
Flat rent. Rent that is based on the market rent charged for comparable units in the private unassisted rental market, set at no less than 80 percent of the current fair market rent (FMR), 80 percent of the small area fair market rent (SAFMR), or 80 percent of the unadjusted rent, with utility allowances applied as necessary. The unadjusted rent is the FMR estimated directly from source data that HUD uses to calculate FMRs in nonmetropolitan areas.
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GL-9
Foster adult. 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.
Foster child. 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 child care payment. A payment to eligible households by state, local, or private agencies appointed by the state to administer payments for the care of foster children.
Full-time student. A person who is attending school or vocational training on a full-time basis (carrying a subject load that is considered full-time for day students under the standards and practices of the educational institution attended). (See 24 CFR 5.603) Gender identity. Actual or perceived gender-related characteristics.
Handicap. Any condition or characteristic that renders a person an individual with handicaps. (See person with disabilities.)
Head of household. The adult member of the family who is the head of the household for purposes of determining income eligibility and rent.
Health and medical care expenses. Health and medical care expenses are 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.
Household. A household includes additional people other than the family who, with the PHA’s permission, live in an assisted unit, such as live-in aides, foster children, and foster adults.
Housing agency (HA). See public housing agency.
HUD. The U.S. Department of Housing and Urban Development.
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GL-10
Human trafficking. A crime involving the exploitation of a person for labor, services, or commercial sex. The Trafficking Victims Protection Act of 2000 and its subsequent reauthorizations recognize and define two primary forms of human trafficking:
- Sex trafficking is the recruitment, harboring, transportation, provision, obtaining, patronizing, or soliciting of a person for the purpose of a commercial sex act in which a commercial sex act is induced by force, fraud, or coercion, or in which the person induced to perform such act has not attained 18 years of age. See 22 U.S.C. § 7102(11)(A). - Forced labor is the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery. See 22 U.S.C. § 7102(11)(B).
Imputed asset. An asset disposed of for less than fair market value during the two years preceding examination or reexamination.
Imputed asset income. When the value of net family assets exceeds $50,000 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.
Imputed welfare income. An amount of annual income that is not actually received by a family as a result of a specified welfare benefit reduction but is included in the family’s annual income and therefore reflected in the family’s rental contribution.
Income-based rent. A tenant rent that is based on the family’s income and the PHA’s rent policies for determination of such rents.
Income information means information relating to an individual’s income, including:
- All employment income information known to current or previous employers or other income sources
- All information about wages, as defined in the state's unemployment compensation law, including any social security number; name of the employee; quarterly wages of the employee; and the name, full address, telephone number, and, when known, employer identification number of an employer reporting wages under a state unemployment compensation law
- Whether an individual is receiving, has received, or has applied for unemployment compensation, and the amount and the period received
- Unearned IRS income and self-employment wages and retirement income - Wage, social security, and supplemental security income data obtained from the Social Security Administration.
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GL-11
Income Validation Tool (IVT) Accessible through HUD's EIV system, provides validation of tenant reported wages, unemployment compensation, and Social Security benefits by comparing the income reported in IMS-PIC via form HUD-50058 to information received from the Department of Health and Human Services’ (HHS) National Directory of New Hires (NDNH), and the Social Security Administration (SSA) data sharing agreements.
Independent contractor. 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.
Individual with handicaps. See person with disabilities.
Jurisdiction. The area in which the PHA has authority under state and local law to administer the program.
Lease. A written agreement between the PHA and a tenant family for the leasing a public housing unit. The lease establishes the legal relationship between the PHA and the tenant family.
Live-in aide. A person who resides with one or more elderly persons, or near-elderly persons, or persons with disabilities, and who:
- Is determined to be essential to the care and well-being of the persons; - Is not obligated for the support of the persons; and
- Would not be living in the unit except to provide the necessary supportive services.
Local preference. A preference used by the PHA to select among applicant families.
Low-income family. A family whose income does not exceed 80 percent of the median income for the area as determined by HUD with adjustments for smaller or larger families, except that HUD may establish income limits higher or lower than 80 percent for areas with unusually high or low incomes.
Minimum rent. An amount established by the PHA of zero to $50.
Minor. A member of the family household other than the family head or spouse, who is under 18 years of age.
Mixed family. A family whose members include those with citizenship or eligible immigration status, and those without citizenship or eligible immigration status.
Monthly adjusted income. One twelfth of adjusted income.
Monthly income. One twelfth of annual income.
National. A person who owes permanent allegiance to the United States, for example, as a result of birth in a United States territory or possession.
Near-elderly family. A family whose head, spouse, or sole member is a person who is at least 50 years of age but below the age of 62; or two or more persons, who are at least 50 years of age but below the age of 62, living together; or one or more persons who are at least 50 years of age but below the age of 62 living with one or more live-in aides.
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GL-12
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 self-employed 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 Self-Sufficiency 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.
Noncitizen. A person who is neither a citizen nor national of the United States.
Non-public housing over-income family. A family whose income exceeds the over-income limit for 24 consecutive months and is paying the alternative non-public housing rent.
Over-income family. A family whose income exceeds the over-income limit.
Over-income limit. The over-income limit is determined by multiplying the applicable income limit for a very low-income family, as defined in 24 CFR 5.603(b), by a factor of 2.4.
PHA Plan. The annual plan and the 5-year plan as adopted by the PHA and approved by HUD.
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GL-13
Participant (participant family). A family that has been admitted to the PHA program and is currently assisted in the program.
Person with disabilities. For the purposes of program eligibility. A person who has a disability as defined under the Social Security Act or Developmental Disabilities Care Act, or a person who has a physical or mental impairment expected to be of long and indefinite duration and whose ability to live independently is substantially impeded by that impairment but could be improved by more suitable housing conditions. This includes persons with AIDS or conditions arising from AIDS but excludes persons whose disability is based solely on drug or alcohol dependence. For the purposes of reasonable accommodation. A person with a physical or mental impairment that substantially limits one or more major life activities, a person regarded as having such an impairment, or a person with a record of such an impairment.
Premises. The building or complex in which the dwelling unit is located, including common areas and grounds.
Previously unemployed. With regard to the earned income disallowance, a person who has earned, in the 12 months previous to employment, no more than would be received for 10 hours of work per week for 50 weeks at the established minimum wage.
Public assistance. Welfare or other payments to families or individuals, based on need, which are made under programs funded, separately or jointly, by federal, state, or local governments.
Public housing agency (PHA). Any state, county, municipality, or other governmental entity or public body, or agency or instrumentality of these entities, that is authorized to engage or assist in the development or operation of low-income housing under the 1937 Act.
Real property. Has the same meaning as that provided under the law of the State in which the property is located.
Reasonable accommodation. A change, exception, or adjustment to a rule, policy, practice, or service to allow a person with disabilities to fully access the PHA’s programs or services.
Recertification. Sometimes called reexamination. The process of securing documentation of total family income used to determine the rent the tenant will pay for the next 12 months if there are no additional changes to be reported.
Remaining member of the tenant family. The person left in assisted housing who may or may not normally qualify for assistance on their own circumstances (i.e., an elderly spouse dies, leaving widow age 47 who is not disabled).
Residency preference. A PHA preference for admission of families that reside anywhere in a specified area, including families with a member who works or has been hired to work in the area (See residency preference area).
Residency preference area. The specified area where families must reside to qualify for a residency preference.
Responsible entity. For the public housing program, the PHA administering the program under an ACC with HUD.
Secretary. The Secretary of Housing and Urban Development.
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GL-14
Seasonal worker. An individual who is hired into a short-term position 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.
Section 8. Section 8 of the United States Housing Act of 1937; refers to the housing choice voucher program.
Security deposit. A dollar amount (maximum set according to the regulations) which can be used for unpaid rent or damages to the PHA upon termination of the lease.
Sexual assault. Any nonconsensual sexual act proscribed by federal, tribal, or state law, including when the victim lacks capacity to consent (42 U.S.C. 13925(a)) Sexual orientation. Homosexuality, heterosexuality or bisexuality.
Single person. A person living alone or intending to live alone.
Social security number (SSN). The nine-digit number that is assigned to a person by the Social Security Administration and that identifies the record of the person’s earnings reported to the Social Security Administration. The term does not include a number with a letter as a suffix that is used to identify an auxiliary beneficiary.
Specified welfare benefit reduction. Those reductions of welfare benefits (for a covered family) that may not result in a reduction of the family rental contribution. A reduction of welfare benefits because of fraud in connection with the welfare program, or because of welfare sanction due to noncompliance with a welfare agency requirement to participate in an economic self-sufficiency program.
Spouse. The marriage partner of the head of household.
Stalking. To follow, pursue, or repeatedly commit acts with the intent to kill, injure, harass, or intimidate; or to place under surveillance with the intent to kill, injure, harass, or intimidate another person; and in the course of, or as a result of, such following, pursuit, surveillance, or repeatedly committed acts, to place a person in reasonable fear of the death of, or serious bodily injury to, or to cause substantial emotional harm to (1) that person, (2) a member of the immediate family of that person, or (3) the spouse or intimate partner of that person.
State wage information collection agency (SWICA). The state agency, including any Indian tribal agency, receiving quarterly wage reports from employers in the state, or an alternative system that has been determined by the Secretary of Labor to be as effective and timely in providing employment-related income and eligibility information.
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GL-15
Technological abuse. An act or pattern of behavior that occurs within domestic violence, dating violence, sexual assault, or stalking and is intended to harm, threaten, intimidate, control, stalk, harass, impersonate, exploit, extort, or monitor another person, except as otherwise permitted by law, that occurs using any form of technology, including but not limited to:
- Internet enabled devices
- Online spaces and platforms
- Computers
- Mobile devices
- Cameras and imaging programs
- Apps
- Location tracking devices
- Communication technologies
- Any other emergency technologies
Tenant. The person or persons (other than a live-in aide) who executes the lease as lessee of the dwelling unit.
Tenant rent. The amount payable monthly by the family as rent to the PHA.
Total tenant payment (TTP). The total amount the HUD rent formula requires the tenant to pay toward rent and utilities.
Unearned income. Any annual income, as calculated under § 5.609, that is not earned income.
Utilities. Water, electricity, gas, other heating, refrigeration, cooking fuels, trash collection, and sewage services. Telephone service is not included.
Utility allowance. If the cost of utilities (except telephone) and other housing services for an assisted unit is not included in the tenant rent but is the responsibility of the family occupying the unit, an amount equal to the estimate made or approved by a PHA of the monthly cost of a reasonable consumption of such utilities and other services for the unit by an energyconservative household of modest circumstances consistent with the requirements of a safe, sanitary, and healthful living environment.
Utility reimbursement. The amount, if any, by which the utility allowance for the unit, if applicable, exceeds the total tenant payment (TTP) for the family occupying the unit.
Veteran. A person who has served in the active military or naval service of the United States at any time and who shall have been discharged or released therefrom under conditions other than dishonorable.
Violence Against Women Act (VAWA). Prohibits denying admission to, denying assistance under, or evicting from a public housing unit an otherwise qualified applicant or tenant on the basis that the applicant or tenant is or has been a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking.
Violent criminal activity. Any illegal criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force against the person or property of another.
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GL-16
Waiting list. A list of families organized according to HUD regulations and PHA policy who are waiting for a unit to become available.
Welfare assistance. Income assistance from federal or state welfare programs, including assistance provided under TANF and general assistance. Does not include assistance directed solely to meeting housing expenses, nor programs that provide health care, child care or other services for working families. For the FSS program (24 CFR 984.103), welfare assistance includes only cash maintenance payments designed to meet a family’s ongoing basic needs.
Does not include nonrecurring short term benefits designed to address individual crisis situations, work subsidies, supportive services such as child care and transportation provided to families who are employed, refundable earned income tax credits, contributions to and distributions from Individual Development Accounts under TANF, services such as counseling, case management, peer support, child care information and referral, financial empowerment, transitional services, job retention, job advancement, and other employmentrelated services that to not provide basic income support, amounts solely directed to meeting housing expenses, amounts for health care, Supplemental Nutrition Assistance Program (SNAP) and emergency rental and utilities assistance, SSI, SSDI, or social security, and child-only or non-needy TANF grants made to or on behalf of a dependent child solely on the basis of the child’s need and not the need of the child’s current non-parental caretaker.
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________________________________________________________________________________________________________________________ Previous version is obsolete Page 1 of 1 form HUD-50077-CR (3/31/2024) Civil Rights Certification
(Qualified PHAs)
U.S. Department of Housing and Urban Development
Office of Public and Indian Housing
OMB Approval No. 2577-0226
Expires 3/31/2024
Civil Rights Certification
Annual Certification and Board Resolution
Acting on behalf of the Board of Commissioners of the Public Housing Agency (PHA) listed below, as its Chairperson or other authorized PHA official if there is no Board of Commissioners, I approve the submission of the 5-Year PHA Plan , hereinafter referred to as” the Plan”, of which this document is a part, and make the following certification and agreements with the Department of Housing and Urban Development (HUD) for the fiscal year beginning ________________________ in which the PHA receives assistance under 42 U.S.C. 1437f and/or 1437g in connection with the mission, goals, and objectives of the public housing agency and implementation thereof:
The PHA certifies that it will carry out the public housing program of the agency in conformity with title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d-2000d—4), the Fair Housing Act (42 U.S.C. 3601-19), Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), title II of the Americans with Disabilities Act (42 U.S.C. 12101 et seq.), and other applicable civil rights requirements and that it will affirmatively further fair housing in the administration of the program. In addition, if it administers a Housing Choice Voucher Program, the PHA certifies that it will administer the program in conformity with the Fair Housing Act, title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, title II of the Americans with Disabilities Act, and other applicable civil rights requirements, and that it will affirmatively further fair housing in the administration of the program. The PHA will affirmatively further fair housing, which means that it will take meaningful actions to further the goals identified in the Assessment of Fair Housing (AFH) conducted in accordance with the requirements of 24 CFR § 5.150 through 5.180, that it will take no action that is materially inconsistent with its obligation to affirmatively further fair housing, and that it will address fair housing issues and contributing factors in its programs, in accordance with 24 CFR § 903.7(o)(3). The PHA will fulfill the requirements at 24 CFR § 903.7(o) and 24 CFR § 903.15(d). Until such time as the PHA is required to submit an AFH, the PHA will fulfill the requirements at 24 CFR § 903.7(o) promulgated prior to August 17, 2015, which means that it examines its programs or proposed programs; identifies any impediments to fair housing choice within those programs; addresses those impediments in a reasonable fashion in view of the resources available; works with local jurisdictions to implement any of the jurisdiction’s initiatives to affirmatively further fair housing that require the PHA’s involvement; and maintains records reflecting these analyses and actions. _________________________________________ __________________________________________ PHA Name PHA Number/HA Code
I hereby certify that all the statement above, as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802) Name of Executive Director: Name of Board Chairperson:
Signature Date Signature Date
The United States Department of Housing and Urban Development is authorized to collect the information requested in this form by virtue of Title 12, U.S. Code, Section 1701 et seq., and regulations promulgated thereunder at Title 12, Code of Federal Regulations. Responses to the collection of information are required to obtain a benefit or to retain a benefit.
The information requested does not lend itself to confidentiality. The information is collected to ensure that PHAs carry out applicable civil rights requirements.
Public reporting burden for this information collection is estimated to average 0.16 hours per response, including the time for reviewing instructions, searching existing data sources, gathering, and maintaining the data needed, and completing and reviewing the collection of information. HUD may not collect this information, and respondents are not required to complete this form, unless it displays a currently valid OMB Control Number.
Item 2.
Certification by State or Local U. S Department of Housing and Urban Development Official of PHA Plans Consistency Office of Public and Indian Housing with the Consolidated Plan or OMB No. 2577-0226
State Consolidated Plan Expires 3/31/2024
(All PHAs)
Certification by State or Local Official of PHA Plans
Consistency with the Consolidated Plan or State Consolidated Plan I, ______________________________, the _____________________________________ Official’s Name Official’s Title
certify that the 5-Year PHA Plan for fiscal years ______ and/or Annual PHA Plan for fiscal year _______ of the ____________________________________________ is consistent with the PHA Name
Consolidated Plan or State Consolidated Plan including the Analysis of Impediments (AI) to Fair Housing Choice or Assessment of Fair Housing (AFH) as applicable to the ______________________________________________________________________________ Local Jurisdiction Name
pursuant to 24 CFR Part 91 and 24 CFR § 903.15.
Provide a description of how the PHA Plan’s contents are consistent with the Consolidated Plan or State Consolidated Plan.
I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802) Name of Authorized Official: Title:
Signature: Date:
The United States Department of Housing and Urban Development is authorized to solicit the information requested in this form by virtue of Title 12, U.S.
Code, Section 1701 et seq., and regulations promulgated thereunder at Title 12, Code of Federal Regulations. Responses to the collection of information are required to obtain a benefit or to retain a benefit. The information requested does not lend itself to confidentiality. This information is collected to ensure consistency with the consolidated plan or state consolidated plan.
Public reporting burden for this information collection is estimated to average 0.16 hours per year per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. HUD may not collect this information, and respondents are not required to complete this form, unless it displays a currently valid OMB Control Number.
Item 2.
City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: April 9, 2024
Title: Award Unisol Solar and Energy to complete the Solar Feasibility Study not to exceed $37,513
Background: The Board of Public Utilities established an Alternative Energy Ad Hoc Committee in 2022. The mission of the Alternative Energy Ad Hoc Committee is to review different potential energy generation sources and meet the State of California’s renewable energy goals.
The Committee has reviewed solar PPA proposals/developments, wind, and pump hydro alternatives.
The Committee has requested a solar feasibility study be issued to seek professional consulting services to evaluate and determine the suitability of facility rooftops and site developments of Cityowned sites. The deadline for submission was February 29, 2024. Two proposals were submitted. The Alternative Energy Ad Hoc Committee interviewed both applicants.
Unisol has a small community concept, familiar with distributing solar systems, preliminary design, layout, and cost estimate experience.
The Board of Public Utilities approved the recommended action on April 2, 2024.
Fiscal Impact: $37,513 to be funded by the adopted FY23/24 electric operations and maintenance budget.
Environmental Impact: To be determined
Recommended Action: Award Unisol Solar and Energy to complete the Solar Feasibility Study not to exceed $37,513
Submitted By: Rainie Torrance, Utility Manager
City Manager Approval: Date:
Other Department Approval (when required): Date:
Approved: Not Approved: Tabled: Other:
Agenda Item: ____________
4/4/2024
4/4/2024
Item 3.
City of Needles
Solar Photovoltaic Feasibility Study
F. Price Proposal
Staff Allocations per Discipline: Support Services
Role/Classifications: Hours IDS Fees Principal Senior Eng Overall PM Senior Eng CAD Senior Eng RER Energy Group Hourly Rate: 210 $ $ 161 Hrs Fees 196 $ $ 161 $ 99 Hrs Fees 178 $ Hrs Fees Task 1: Project Administration 77 $13,542 5 20 $4,270 16 16 0 $5,712 20 $3,560 $2,500 Meeting (Field Review) 9 $1,602 1 2 3 $532 22 4 $714 2 2 $356Meeting (Data Collection) 9 $1,602 1 2 3 $532 22 4 $714 2 2 $356Meeting (30% Financial Analysis) 4 $714 0 $0 22 4 $714 0 $0Meeting (60% Financial Analysis) 4 $714 0 $0 22 4 $714 0 $0Meeting (100% Financial Analysis) 4 $714 0 $0 22 4 $714 0 $0Meeting (50% Recommendations) 9 $1,602 1 2 3 $532 22 4 $714 2 2 $356Meeting (90% Recommendations) 9 $1,602 1 2 3 $532 22 4 $714 2 2 $356Meeting (100% Recommendations) 9 $1,602 1 2 3 $532 22 4 $714 2 2 $356 0 $0 0 $0 0 $0 0 $00 $0 0 $0 0 $0 0 $0
Task 2: Field Review and Data Collection (10 Parcels or Facilities) 202 $30,888 2 44 $7,504 0 72 40 $15,552 44 $7,832 $5,000 Field Review 81 $13,498 1 24 25 $4,074 32 32 $5,152 24 24 $4,272Data Collection 121 $17,390 1 20 21 $3,430 40 40 80 $10,400 20 20 $3,560 $ 5,000.00 0 $0 0 $0 0 $0 0 $0
Task 3: Financial Analysis (10 Parcels or Facilities) 8 $1,568 0 0 $0 800 $1,568 0 $0 $8,000 30 Percent Financial Cost EstimateͲInstallation and
Maintenance 2 $392 0 $0 2 2 $392 0 $0 $ 2,000.00
60 Percent Financial Cost EstimateͲInstallation and
Maintenance 2 $392 0 $0 2 2 $392 0 $0 $ 2,000.00
100 Percent Financial Cost EstimateͲInstallation
and Maintenance 2 $392 0 $0 2 2 $392 0 $0 $ 2,000.00
Return on Investment Analysis 2 $392 0 $0 2 2 $392 0 $0 $ 2,000.00 0 $0 0 $0 0 $0 0 $0
Task 4: Recommendations 63 $10,914 3 12 $2,562 12 24 0 $6,216 Prepare 50 Perent Feasibility Study 21 $3,638 1 4 5 $854 48 12 $2,072 4 4 $712Prepare 90 Perent Feasibility Study 21 $3,638 1 4 5 $854 48 12 $2,072 4 4 $712Prepare 100 Perent Feasibility Study 21 $3,638 1 4 5 $854 48 12 $2,072 4 4 $712 0 $0 0 $0 0 $0 0 $0
Task 5: Reimbursibles 0 $3,500 0 0 $0 000 $0 0 $0
Estimated Travel 0 $3,500 0 $0 0 $0 0 $0
0 $0 0 $0 0 $0 0 $0
TOTALͲHours 350 10 76 86 36 112 40 188 120 76
Total Fees $60,412 $14,336 $29,048 $12,460 $15,500
Additional Support Services $15,500
Grand Total $75,912
TOTAL
Subtotal
Structural Electrical Civil
Subtotal Subtotal
Item 3.
~ [email protected] ~ 760.533.8714 ~ 1968 Circle Park Lane, Encinitas CA 92024 ~ CRP Investments Inc. d.b.a. UniSol Solar and Storage
Index of Documents
• Document 1- Cos2ng Analysis
o Responder bid with cost breakdown analysis
o Gan5 Chart proposed 7meline
• Document 2- Response File
o Cover Le5er
o A5achment 2-A: SAMPLE - City of Hun7ngton Park Billing & Usage History o A5achment 2-B: SAMPLE – Site Data Analysis (Hun7ngton Park) o A5achment 2-C: SAMPLE – Energy Storage Incen7ves
o A5achment 2-D: SAMPLE - City of Hun7ngton Park Feasibility Study o A5achment 2-E: Statement of Qualifica7ons
• Document 3- Consultant Proposal
o Addi7onal Suppor7ng Informa7on
o A5achment 3-A: Sampling of Recent Construc7on and Solar Projects o A5achment 3-B: SAMPLE – Solar PPA Analysis Financials o A5achment 3-C: SAMPLE – Solar Lease Basis EPC Es7mate Sheets o A5achment 3-D: SAMPLE – Engineering Drawings
o A5achment 3-E: SAMPLE – Solar Annual Produc7on Calcs
o A5achment 3-F: SAMPLE – Substa7on Considera7ons
o A5achment 3-G: SAMPLE – Solar Carport Solu7on
o A5achment 3-H: SAMPLE – Solar Ground Mount Solu7on
o A5achment 3-I: SAMPLE – Solar Roof Mount Solu7on
o A5achment 3-I: SAMPLE – DraT EPC Contract (upon request) o A5achment 3-I: SAMPLE – DraT PPA Contract (upon request) o A5achment 3-J: SAMPLE – DraT O&M Agreement (upon request) o A5achment 3-K: SAMPLE – DraT Public-Private Partnership Agmt (upon request) • Document 4- Cost Proposal
o Term, price, scope, excep7on
Item 3.
~ [email protected] ~ 760.533.8714 ~ 1968 Circle Park Lane, Encinitas CA 92024 ~ CRP Investments Inc. d.b.a. UniSol Solar and Storage
February 26, 2024
City Manager
City of Needles
817 Third Street
Needles, CA 92363
Re: Solar Photovoltaic Feasibility Study RFP EL2401 Response – Cost Proposal A. Term 30 to 45 days depending on number of visits required to pin down parameters B. Price Proposal $37,513 (Thirty seven thousand five hundred thirteen dollars) lump sum fixed for 180 days from today, includes all expenses incurred (e.g. travel) – see 1- Cost File for breakdown.
C. All inclusive of scope of work from RFP EL2401
a. Note that we are including at no addi1onal cost in our proposed scope of work the addi1onal task of reviewing your backup demand requirements as to hours of backup required and essen1al loads to support at various loca1ons for municipal buildings as well as community demands as these are cri1cal to determining the sizing and circuitry re-wiring for a UPS func1on (1ed or non-1ed) of the BESS. As well as the substa1ons, distribu1on and sub-transmission lines’ ampacity. We will suggest similar guidelines we prepared for other LA communi1es that is emerging as a somewhat common standard.
D. ExcepXon: Any work outside of or extension of scope of work to be at the following rates:
a. Principal consultant (engineer) - $175/hr
b. Grounds/surveying (technician) – $92.50/hr
c. Clerical - $50/hr
Submi]ed,
Phyllis Mabbe], PhD
VP
Concurrent a1achments to proposal:
1. Cost File
2. Response File
3. Consultant Proposal
4. Cost proposal
Item 3.
City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: April 9, 2024
Title: Housing Authority of the City of Needles audit report for the fiscal year ended June 30, 2023.
Background: The fiscal year 2022/23 Housing Authority audit report has been completed by Smith Marion.
Attached is the audit report for the fiscal year ended June 30, 2023, and the Auditors Communication with those Charged with Governance letter.
Fiscal Impact: None
Environmental Impact: N/A
Recommended Action: Accept and file the Housing Authority of the City of Needles fiscal year ended June 30, 2023, audit report completed by Smith Marion.
Submitted By: Barbara DiLeo, Acting Director of Finance City Manager Approval: Date:
Other Department Approval (when required): Date:
Approved: Not Approved: Tabled: Other:
Agenda Item: ____________
4/4/2024
Item 4.
HOUSING AUTHORITY OF THE CITY
OF NEEDLES
Financial Statements and Independent Auditors’ Report
Year Ended June 30, 2023
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Table of Contents
List of Principal Officials.................................................................................................................................................1 Independent Auditors’ Report.......................................................................................................................................2 Management’s Discussion and Analysis (Required Supplemental Information – Unaudited)......................................5 Financial Statements .....................................................................................................................................................9 Statement of Net Position .........................................................................................................................................9 Statement of Revenues, Expenses, and Changes in Net Position............................................................................10 Statement of Cash Flows.........................................................................................................................................11 Notes to Financial Statements.................................................................................................................................13 Supplemental Information ..........................................................................................................................................21 Schedule of Expenditures of Federal Awards..........................................................................................................21 Statement and Certification of Actual Costs ...........................................................................................................22 Compliance Information..............................................................................................................................................23 Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.................................................................................................................................................................23 Schedule of Findings and Questioned Costs............................................................................................................25 Corrective Action Plan .............................................................................................................................................26 Status of Prior Audit Findings..................................................................................................................................27 Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
List of Principal Officials
1 LIST OF PRINCIPAL OFFICIALS
The following table lists the Board Members as of June 30, 2023:
Chairman Janet Jernigan
Vice Chairman Kirsten Merritt
Commissioner Joanne Pogue
Commissioner Jamie N. McCorkle
Commissioner Henry Longbrake
Commissioner Tona Belt
Commissioner Ellen Campbell
In addition to the above Commissioners, the Administrator of Housing Authority of the City of Needlesis Julie Bigham, who served as the Executive Director.
Item 4.
2 INDEPENDENT AUDITORS’ REPORT
The Governing Body of
Housing Authority of the City of Needles
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
OPINION
We have audited the financial statements of the business-type activities Housing Authority of the City of Needles (Authority), a component unit of the City of Needles, California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents.
In our opinion, based on our audit and the report of the other auditors, the accompanying financial statements present fairly, in all material respects, the respective financial position of the business-type activities of the Authority as of June 30, 2023, and the changes in its financial position and, where applicable, cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
BASIS FOR OPINION
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Authority and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
RESPONSIBILITIES OF MANAGEMENT FOR THE FINANCIAL STATEMENTS Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Item 4.
3 AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
(1) Exercise professional judgment and maintain professional skepticism throughout the audit; (2) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements; (3) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, no such opinion is expressed; (4) Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements; (5) Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
REQUIRED SUPPLEMENTARY INFORMATION
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Item 4.
4 SUPPLEMENTARY INFORMATION
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Authority’s financial statements.
The schedule of expenditures of federal awards is presented for purposes of additional analysis and is not a required part of the financial statements.
In addition, the accompanying statement and certification of actual costs, required by the U.S. Department of Housing and Urban Development, is presented for the purpose of additional analysis and are not a required part of the basic financial statements.
That information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. That information has been subjected to the auditing procedures applied in the audit of the financial statements and certain other procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, that information is fairly stated in all material respects in relation to the financial statements as a whole.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS In accordance with Government Auditing Standards, we have also issued our report dated March 15, 2024, on our consideration of the Authority’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance.
March 15, 2024
Redlands, CA
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Management’s Discussion and Analysis (Required Supplemental Information – Unaudited) June 30, 2023
5 MANAGEMENT’S DISCUSSION AND ANALYSIS (REQUIRED SUPPLEMENTAL INFORMATION – UNAUDITED) The Housing Authority of the City of Needles’s (Authority, we, us, our) Management’s Discussion and Analysis is designed to (a) assist the reader in focusing on significant financial issues, (b) provide an overview of our financial activity, (c) identify changes in our financial position and its resulting ability to address the next and subsequent year challenges, and (d) identify individual fund issues or concerns.
Since the Management’s Discussion and Analysis (MD&A) is designed to focus on the current year’s activities, resulting changes and currently known facts, please read it in conjunction with our financial statements.
FINANCIAL HIGHLIGHTS
At the close of the most recent fiscal year, the assets of the Authority exceeded its liabilities by $989,640 (net position).
This amount includes $701,491 of unrestricted net position that may be used to meet the Authority's ongoing obligations to clients and creditors.
As of June 30, 2023, the Housing Authority's operating cash balance was $592,608, while investments totaled $91,330.
OVERVIEW OF THE FINANCIAL STATEMENTS
The annual financial report consists of two parts: management's discussion and analysis and the basic financial statements. The Authority follows enterprise fund reporting; accordingly, the financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Enterprise fund statements offer short-term and long-term financial information about the activities and operations of the Authority. While detailed sub-fund information is not presented, separate accounts are maintained for each program of the Authority.
The financial statements include a statement of net position, statement of revenues, expenses and changes in net position, statement of cash flows and notes to the financial statements. The statement of net position provides a record or snapshot of the assets and liabilities at the close of the fiscal year. It presents the financial position of the Authority on a full accrual historical cost basis. The statement of revenues, expenses and changes in net position presents the results of the business activities over the course of the fiscal year. The statement of cash flows is related to the other financial statements by the way it links changes in assets and liabilities to the effects on cash and cash equivalents over the course of the fiscal year. The notes to the financial statements provide useful information regarding the Authority's significant accounting policies, significant account balances and activities, certain material risks, obligations, commitments, contingencies, and subsequent events.
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Management’s Discussion and Analysis (Required Supplemental Information – Unaudited) June 30, 2023
6 FINANCIAL ANALYSIS OF THE AUTHORITY
Net Position
The following table reflects the condensed Statement of Net Position compared to the prior year. 2023 2022 Dollar Percentage
Cash and equivalents $ 603,808 $ 676,913 $ (73,105) (10.8%) Other current assets 119,890 111,926 7,964 7.1%
Total current assets 723,698 788,839 (65,141) (8.3%)
Net capital assets 288,149 144,867 143,282 98.9%
Other non-current assets - - - 0.0%
Total non-current assets 288,149 144,867 143,282 98.9%
Total assets 1,011,847 933,706 78,141 8.4%
Deferred outflows of resources - - - 0.0%
Total $ 1,011,847 $ 933,706 $ 78,141 8.4%
Current liabilities $ 22,207 $ 37,007 $ (14,800) (40.0%) Non-current liabilities - - - 0.0%
Total liabilities 22,207 37,007 (14,800) (40.0%)
Deferred inflows of resources - - - 0.0%
Net investment in capital assets 288,149 144,867 143,282 98.9% Restricted net position - 9,706 (9,706) (100.0%)
Unrestricted net position 701,491 742,126 (40,635) (5.5%) Total net position 989,640 896,699 92,941 10.4%
Total $ 1,011,847 $ 933,706 $ 78,141 8.4%
Change
Assets
Overall, there was a significant change in net capital assets from FY22 to FY23 due to additions in construction in progress, buildings, and improvements.
Building and improvements disposalsfor the year was $32,926, which included AC units that were replaced by newAC units for $70,013.
Liabilities
Overall, there were no significant changes in any liability classes from FY22 to FY23.
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Management’s Discussion and Analysis (Required Supplemental Information – Unaudited) June 30, 2023
7 Revenues, Expenses, and Changes in Net Position
The following schedule compares the revenues and expenses for the current and previous fiscal year. 2023 2022 Dollar Percentage
Net rental revenue $ 229,743 $ 231,342 $ (1,599) (0.7%) Operating grants and subsidies 310,425 305,277 5,148 1.7% Other operating revenues 4,692 2,523 2,169 86.0%
Total operating revenues 544,860 539,142 5,718 1.1%
Depreciation expense (24,712) (20,968) (3,744) 17.9%
Housing assistance payments (130,561) (100,107) (30,454) 30.4% Other operating expenses (472,491) (397,332) (75,159) 18.9% Total operating expenses (627,764) (518,407) (109,357) 21.1% Operating income (loss) (82,904) 20,735 (103,639) >100% Investment income - (9,906) 9,906 (100.0%)
Interest expense - - - 0.0%
Other non-operating items (4,175) - (4,175) (>100%)
(87,079) 10,829 (97,908) >100%
Special items - - - 0.0%
Net operating transfers - - - 0.0%
Capital contributions 119,000 - 119,000 >100%
Change in net position $ 31,921 $ 10,829 $ 21,092 (>100%) Change
Income (loss) before contributions
and other items
Revenues
Other operating revenue increased by $2k or 86% from FY22 to FY23, primarily due to an increase in port-in voucher administrative fees. Also attributable to the decrease was a reduction in non-rent related tenant charges.
Expenses
Other operating expenses increased by $75k or 18.9% from FY22 to FY23, primarily due to an increase in ordinary maintenance and operation expenses incurred. High maintenance labor and contract costs attributed to a $49k increase of this expense line item.
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Management’s Discussion and Analysis (Required Supplemental Information – Unaudited) June 30, 2023
8 CAPITAL ASSETS
As of June 30, 2023, the Authority’s investment in capital assets totaled $288,149, net of depreciation. This investment includes land, construction in progress, buildings, equipment, and vehicles. This amount represents a net increase of $143,282 or 99% from the previous fiscal year, as a result of current year additions exceeding the current year depreciation of $24,712.
2023 2022 Dollar Percentage
Land $ 2,381 $ 2,381 $ - 0%
Construction in progress 39,341 - 39,341 >100%
Buildings and improvements 3,190,630 3,153,543 37,087 1% Euipment and furnishings 81,618 81,618 - 0%
Accumulated depreciation (3,025,821) (3,092,675) 66,854 (2%) Net capital assets $ 288,149 $ 144,867 $ 143,282 99%
Change
DEBT ADMINISTRATION
The Authority currently carries no long-term debt.
ECONOMIC FACTORS
Significant economic factors affecting us are as follows:
Federal funding by the Department of Housing and Urban Development.
Local labor supply and demand, which can affect salary and wage rates.
Local inflation, recession, and employment trends, which can affect resident incomes and therefore the amount of rental income.
FINANCIAL CONTACT
Our financial report is designed to provide our citizens, taxpayers, and investors and creditors with a general overview of the Housing Authority's finances and to show the Housing Authority's accountability for the money it receives. If you have questions about this report or wish to request additional financial information, please contact the Executive Director Patrick Martinez.
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Statement of Net Position
June 30, 2023
See accompanying notes.
9 FINANCIAL STATEMENTS
STATEMENT OF NET POSITION
Assets and deferred outflows of resources
Operating cash $ 592,608
Restricted cash 11,200
Total cash and equivalents 603,808
Net accounts receivable 15,447
Investments - operating 91,330
Prepaid expenses and other current assets 13,113
Total current assets 723,698
Capital assets, at cost
Land 2,381
Construction-in-progress 39,341
Buildings and improvements 3,190,630
Equipment and furnishings 81,618
Total acquisition costs - 3,313,970
Less: Accumulated depreciation (3,025,821)
Net capital assets - 288,149
Total non-current assets 288,149
Total assets 1,011,847
Total assets and deferred outflows of resources $ 1,011,847 Liabilities, deferred inflows of resources, and net position Accounts payable $ 1,982
Unearned revenues 3,579
Deposits held in trust, contra 11,200
Accrued wages payable 3,341
Accrued vacations payable, current portion 2,105
Total current liabilities 22,207
Total liabilities 22,207
Net investment in capital assets 288,149
Unrestricted net position 701,491
Total net position 989,640
Total liabilities, deferred inflows of resources, and net position $ 1,011,847 Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Statement of Revenues, Expenses, and Changes in Net Position Year Ended June 30, 2023
See accompanying notes.
10 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION Tenant rental revenue, net of collection losses $ 229,743 Operating grants and subsidies 310,425
Other revenue 4,692
Total operating revenues 544,860
Administrative 190,680
Utilities 74,306
Ordinary maintenance and operations 194,343
Protective services 600
Insurance premiums 12,562
Housing assistance payments 130,561
Depreciation 24,712
Total operating expenses 627,764
Operating income (loss) (82,904)
Gains (losses) on disposition of assets (4,175)
Total non-operating revenues (expenses) (4,175)
Income (loss) before contributions and other items (87,079) Capital contributions 119,000
Change in net position $ 31,921
Net position, beginning of year $ 896,699
Change in net position 31,921
Prior-period restatements 61,020
Net position, end of year $ 989,640
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Statement of Cash Flows
Year Ended June 30, 2023
See accompanying notes.
11 STATEMENT OF CASH FLOWS
Cash receipts from tenants $ 242,578
Cash receipts from grants 304,099
Cash payments for Housing Assistance payments (130,561) Cash payments to suppliers for goods and services (286,608) Cash payments for wages and benefits (214,445)
Other cash payments and receipts 6,487
Net cash from operating activities (78,450)
Acquisition and construction of capital assets (109,354) Gains (losses) on disposition of assets (4,175)
Capital contributions received 119,000
Net cash from capital and related financing activities 5,471 Net (purchases)/proceeds of investments (126)
Net cash from investing activities (126)
Net change in cash and equivalents (73,105)
Cash at beginning of period 676,913
Cash at end of period
$ 603,808
Reconciliation of cash to the statement of net position:
Cash and equivalents - operating $ 592,608
Restricted cash and equivalents 11,200
Total cash and equivalents $ 603,808
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Statement of Cash Flows
Year Ended June 30, 2023
See accompanying notes.
12 Reconciliation of operating income (loss) to net cash from operating activities:
Operating income (loss) $ (82,904)
Adjustments to reconcile operating income (loss) to
net cash from operating activities:
Depreciation 24,712
Bad debt 1,849
(Gain)/Loss on disposition of property and equipment 2,380 Realized and unrealized gains/losses on investments 1,795 Changes in operating assets and liabilities:
Accounts receivable 1,631
Prepaid expenses and other assets (13,113)
Accounts payable (20,848)
Accrued wages and benefits 3,019
Deposits held in trust, contra (550)
Unearned revenues 3,579
Net cash from operating activities $ (78,450)
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Notes to Financial Statements
13 NOTES TO FINANCIAL STATEMENTS
NOTE 01 - NATURE OF BUSINESS AND ORGANIZATION
The Housing Authority of the City of Needles(Authority) was established in 1942, under the U.S. Housing Act of 1937, and the State of California Housing Authority Law of 1938. The Authority is a nonprofit government agency which is chartered by the State of California to administer the development, rehabilitation or financial of affordable housing programs. The area of jurisdiction of the Authority is the City of Needles.
The primary mission of the Authority is to assist low and moderate-income families, including elderly and disabled persons, by operating programs which provide them decent, safe, and sanitary housing at affordable costs.
Under the United States Housing Act of 1937, as amended, the U.S. Department of Housing and Urban Development (HUD) has direct responsibility for administering low-income housing programs in the United States. Accordingly, HUD has contracted with the Authority to administer certain HUD funds.
Our operations are comprised of the Housing Choice Voucher Program. This program is designed to aid very lowincome families in obtaining decent, safe, and sanitary rental housing. We administer contracts with independent landlords that own property and rent that property to families that have applied for housing assistance. We subsidize the family's rent through a Housing Assistance Payment made to the landlord. The program is administered under an Annual Contributions Contract (ACC) with HUD. HUD provides Annual Contributions Funding to enable us to structure a lease that sets the participants' rent at 30% of household income.
Additionally, our operations are comprised of the Low Rent Housing Program. This program is designed to provide very low-income families in obtaining decent, safe, and sanitary rental housing. operates The Low Rent Housing Program operates the Authority’s own rental housing units subsidized by HUD through an Annual Contributions Contract (ACC).
Funding is provided by tenant rent payments and subsidies provided by HUD based upon a formula that takes into consideration factors such as: prior formula funding, population of the area, number of dwelling units, bedroom sizes, building height and building age, utility costs, and rental income.
The Low Rent Housing Program is supplemented by the Capital Fund Program. The purpose of this program is to utilize funds granted by HUD for remodeling and upgrading the facilities in the Low Rent Housing Program, as well as to support overall operations. These grant funds are authorized by HUD each year but can be spent over the course of several years.
Reporting Entity
As described in GASB Statement No. 34, paragraph 134, the Authority is considered a primary government and meets the definition of a Special Purpose Government (SPG). The Authority is a legally separate entity that is engaged in only business-type activities. Business-type activities are defined as activities that are financed in whole or in part by fees charged to external parties for goods or services. SPG’s engaged only in business-type activities are required to present only the financial statements required for proprietary funds, which includes Management's Discussion and Analysis (MD&A), basic financial statements, and Required Supplemental Information (RSI). All inter-program activities have been eliminated in these financial statements.
We are a component unit of the City of Needles (City). Although the Authority is a legally separate SPG, it does not have a separately elected governing body from that of the City and is not fiscally independent of other state and local governments. Fiscally independent means that the Authority may, without the approval or consent of another governmental entity, determine or modify its own budget, control collection and disbursements of funds, maintain responsibility for funding deficits and operating deficiencies, and issue bonded debt.
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Notes to Financial Statements
14 NOTE 02 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accrual Basis of Accounting
The financial statements are presented using the accrual basis of accounting with an economic resources measurement focus. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. As permitted by accounting principles generally accepted in the United States of America (GAAP), the Authority has elected to apply all relevant Government Accounting Standards Board (GASB) pronouncements.
The Authority distinguishes operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from grant agreements, providing services, and producing and delivering goods in connection with the ongoing principal operations. The principal operating revenues of the Authority include program specific grants, rental income from tenants of the various housing projects. Operating expenses include the cost of services, administrative expenses, and depreciation on capital assets. Revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
Estimates
The preparation of financial statements in conformity with generally accepted accounting principles as applied to governmental units requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Cash and Equivalents
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash on hand, demand deposits at financial institutions, investments in Money Market funds, and Certificates of Deposit.
Restricted Cash
Restricted cash consists of cash set aside by HUD for the Housing Choice Voucher Program, reserves, and escrows, as well as other cash and investments that are restricted for specific purposes.
Accounts Receivable from Tenants
Accounts receivable consists of all amounts earned at year end and not yet received. Allowances for uncollectible accounts are based upon historical trends and periodic aging of accounts receivable.
In accordance with Governmental Accounting Standards Board Statement No. 34, revenues in proprietary funds should be reported as net of all related allowances, which include amounts pertaining to uncollectible accounts. Therefore, the increase and decrease in the estimate of uncollectible accounts should be reported net of revenue instead of bad debt expense. The Authority reported no bad debt expense for the year ended June 30, 2023.
Capital Assets
Capital assets purchased or acquired with an original cost of $1,500 or more are reported at historical cost or estimated historical cost. Contributed assets are reported at fair market value as of the date received. Additions, improvements, and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred.
Depreciation of exhaustible capital assets is charged as an expense against operations utilizing the straight-line method. Accumulated depreciation is reported on the Statement of Net Position.
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Notes to Financial Statements
15 The estimated useful lives for each major class of depreciable fixed assets are as follows:
Building ...................................................................................................................................................20 - 50 years Vehicles and other equipment ...................................................................................................................5 - 7 years Computers .......................................................................................................................................................5 years Impairment of Capital Assets
The Authority reviews its capital assets for impairment whenever events or changes in circumstances indicate that there has been a decline in service utility that is large in magnitude and outside of the normal life cycle of the capital asset being evaluated. As of June 30, 2023, there has been no impairment of the capital assets.
Tenant Security Deposits
Security deposits consist of amounts held in trust with the Authority in order for tenants to secure apartment leases.
Compensated Absences
Compensated absences are absences for which employees will be paid, i.e., vacation and other approved leaves, with the exception of those employees that are terminated on grounds of gross misconduct. The Authority accrues the liability for those absences for which the employee has earned the rights to the benefits. Accrued amounts are based on the current salary rates.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Authority currently does not have any items that qualify for reporting in this category.
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Authority currently does not have any items that qualify for reporting in this category.
Unearned Revenue
Unearned revenues, if any, consist of rental payments made by tenants in advance of their due date, and rental supplements to be paid to owners of private dwellings during the first month of the next fiscal year.
Income Taxes
The Authority is not subject to federal or state income taxes.
Leasing Activities
We are the lessor of dwelling units to eligible residents. The rents under the leases are determined generally by the residents’ income as adjusted for eligible deductions regulated by HUD, although the residents may opt for a flat rent.
Leases may be cancelled at any time or renewed annually. We may cancel the leases only for a cause. Revenues associated with these leases are reported in the accompanying financial statements and related schedules within dwelling rent revenue.
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Notes to Financial Statements
16 Net Position
In the statement of net position, equity is classified as net position and displayed in three components: (1) Net investment in capital assets consists of capital assets, net of accumulated depreciation and reduced by the outstanding balance of any notes or other borrowings attributable to those capital assets. (2) Restricted net position consists of assets with constraints placed on the use either by external groups, such as grantors or laws and regulations of other governments, or law through constitutional provisions or enabling legislation. (3) Unrestricted net position – All other assets that do not meet the definition of “restricted” or “net investment in capital assets”.
When both restricted and unrestricted net positions are available for use, generally it is our policy to use restricted resources first.
Fair Value Measurements
Generally accepted accounting principles establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels: Level 1 inputs consist of quoted prices (unadjusted) for identical assets and liabilities in active markets that a government can access at the measurement date, Level 2 inputs consist of inputs other than quoted prices that are observable for an asset or liability, either directly or indirectly, and Level 3 inputs that have the lowest priority and consist of unobservable inputs for an asset or liability. The Authority’s investments have been measured using Level 1 inputs.
Investment Policy
Our investment policy, HUD and the California Government Code do not address legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local government units by pledging securities in an undivided collateral pool held by a depository regulated under state law.
The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure such deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
Authorized Investments
Investments of the Authority are limited to investment types prescribed by HUD in PIH Notice 1996-33 or as amended by future HUD notices.
Additionally, the Authority limits investment types to those that are authorized in accordance with Section 53601 of the California Government Code.
Subsequent Events
We evaluated subsequent events through March 15, 2024, the date these financial statements were issued.
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Notes to Financial Statements
17 NOTE 03 - RESTRICTED CASH
Restricted cash was comprised of the following as of yearend:
Tenant security deposits $ 11,200
Restricted cash with offsetting liabilities 11,200
Total restricted cash and equivalents $ 11,200
NOTE 04 - ACCOUNTS RECEIVABLE
The following provides a breakdown of accounts receivables as of yearend:
Receivables from HUD $ 7,799
Tenant receivables 9,498
Allowance for doubtful accounts - tenants (1,850)
Net tenant receivables 7,648
Net accounts receivable $ 15,447
NOTE 05 - CAPITAL ASSETS
A summary of the capital asset activity for the year ended June 30, 2023, is provided below:
6/30/22 Additions Deletions 6/30/23
Non-Depreciable
Land $ 2,381 $ - $ - $ 2,381
Construction in process - 39,341 - 39,341
2,381 39,341 - 41,722
Depreciable
Buildings and improvements 3,153,543 70,013 (32,926) 3,190,630 Equipment and furnishings 81,618 - - 81,618
3,235,161 70,013 (32,926) 3,272,248
Total acquisition costs 3,237,542 109,354 (32,926) 3,313,970 Accumulated depreciation (3,092,675) (24,712) 91,566 (3,025,821) Net capital assets $ 144,867 $ 84,642 $ 58,640 $ 288,149 All land and buildings of the Public Housing Program are encumbered by a Declaration of Trust in favor of the United States of America as security for obligations guaranteed by the federal government and to protect other interests of the federal government.
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Notes to Financial Statements
18 NOTE 06 - NET POSITION
Net investment in capital assets as of yearend consists of the following:
Land $ 2,381
Construction in progress 39,341
Buildings and improvements 3,190,630
Euipment and furnishings 81,618
Less:
Accumulated depreciation (3,025,821)
Net investment in capital assets $ 288,149
Restricted net position as of yearend consists of the following:
Restricted cash and equivalents $ 11,200
Less:
Tenant security deposit, contra (11,200)
Restricted net position $ -
NOTE 07 - PENSION PLAN
The Authority contributes to the Aergon Transamerica Annuity Retirement Plan, a defined contribution pension plan, for its full-time employees.
Benefit terms, including contribution requirements, for Authority are established and may be amended by the Needles Housing Authority Board of Commissioners. For each employee in the pension plan, the Authority is required to contribute 10 percent of their annual salary, exclusive of overtime pay to an individual employee account. Employees are permitted to make contributions to the pension plan, up to applicable Internal Revenue Code limits. For the year ended June 30, 2023, employee contributions totaled $0, and the Authority recognized pension expense of $7,290.
Employees are immediately vested in their own contributions and earnings on those contributions and become vested in Authority contributions and earnings on Authority contributions after completion of 12 months of creditable service with the Authority. There are no non-vested contributions made by the Authority and therefore no forfeitures.
The Authority has made all required contributions for the year ended June 30, 2023. There are no liabilities related to the pension contributions.
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Notes to Financial Statements
19 NOTE 08 - BUSINESS RISKS AND CONCENTRATIONS
Concentration – Major Contributor
For the year ended June 30, 2023, approximately 57% of operating revenues reflected in the financial statements are from HUD. The Authority operates in a heavily regulated environment. The operations of the Authority are subject to the administrative directives, rules and regulations of federal, state and local regulatory agencies, including, but not limited to HUD. Such administrative directives, rules and regulations are subject to change by an act of Congress, or an administrative change mandated by HUD. Such changes may occur with little notice or inadequate funding to pay for the related costs and the additional administrative burden to comply with the changes.
Risk Management
The Authority is exposed to various risk of losses related to torts; theft or damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Claims liabilities are reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. There were no claims in excess of commercial coverage during the previous three years. These losses include an estimate of claims that have been incurred but not reported. At June 30, 2023, there were no liabilities to be reported.
As of June 30, 2023, the Authority was a participating member of the Housing Authorities Risk Retention Pool (HARRP), a risk-management pool, which provides the following coverage: property; general liability; official’s liability; auto liability; employee liability for dishonesty or forgery; and employee liability for theft, disappearance and destruction.
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Our policy is to manage this exposure to declines in fair values by limiting the weighted average maturity of its investments portfolio.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. It is our policy to follow the HUD regulations by only having direct investments and investments through mutual funds to direct obligations, guaranteed obligations, or obligations of the agencies of the Unites States of America.
Custodial Credit Risk
Custodial credit risk is the risk that in the event of a bank failure, our deposits may not be returned. Our policy for custodial credit risk requires collateral to be held in our name by its agent or by the bank’s trust department.
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Notes to Financial Statements
20 NOTE 09 - CONTINGENCIES AND COMMITMENTS
Government Examinations
The Authority is subject to possible examinations made by Federal and State authorities who determine compliance with terms, conditions, laws, and regulations governing other grants given to the Authority in the current and prior years.
Construction Contracts
During the normal course of business, the Authority is engaged in various construction contracts for rehabilitation and modernization of various properties owned by the Authority.
NOTE 10 - PRIOR YEAR RESTATEMENT
During the fiscal year ended June 30, 2023, one restatement to beginning net position was required. Below is a description of the item and effect on beginning net position:
Accumulated depreciation – correction of an error
During the audit, it was discovered that accumulated depreciation was overstated by $61,020. In 2019, an asset had been over depreciated by $22,185, and in 2013, an asset was written off for impairment for $38,835 but no adjustment was made to accumulated depreciation. These corrections to accumulated depreciation resulted in a decrease to the beginning net position by $61,020.
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2023
21 SUPPLEMENTAL INFORMATION
Program Title ALN
Cluster
Title Award Type
Pass-Through
No. Expenditures
Amounts
Passed Through
to SubRecipients
Section 8 Housing Choice Vouchers 14.871 HVC Direct $ 146,087 $ - Public and Indian Housing 14.850 Direct 39,473 -
Public Housing Capital Fund 14.872 Direct 243,865 -
Total Federal Financial Assistance $ 429,425 $ -
Federal Grantor: Expenditures
US Department of Housing and Urban Development $ 429,425 Total Federal Financial Assistance $ 429,425
Cluster Title: Expenditures
Housing Voucher Cluster $ 146,087
Award Type: Expenditures
Direct $ 429,425
Indirect -
Total Federal Financial Assistance $ 429,425
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
NOTE 01 - BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of the Authority under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Admirative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Because the Schedule presents only a selected portion of the operation ofthe Authority, it is not intended to and does not present the financial position, changes in net positions, or cash flows of the Authority.
NOTE 02 - INDIRECT COST RATE
The Authority has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Statement and Certification of Actual Costs
Year Ended June 30, 2023
22 STATEMENT AND CERTIFICATION OF ACTUAL COSTS
Grant
Funds
Approved
Funds
Disbursed
Funds
Expended Balance
Form HUD53001
Submitted *
CA16P022501-18 $ 119,358 $ 119,000 $ 119,000 $ 358 No
CA16P022501-19 $ 123,997 $ - $ - $ 123,997 No
CA16P022501-20 $ 133,733 $ - $ - $ 133,733 No
CA16P022501-21 $ 139,371 $ 124,865 $ 124,865 $ 14,506 No CA16P022501-22 $ 170,410 $ - $ - $ 170,410 No
CA16P022501-23 $ - $ - $ - $ - No
* The distribution of costs as shown on the respective HUD Form 53001 submitted to HUD for approval, is in agreement with the Authority's records. Additionally, all costs have been paid and all related liabilities have been discharged through payment.
Item 4.
23 COMPLIANCE INFORMATION
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND
ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Governing Body of
Housing Authority of the City of Needles
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States, the financial statements of the business-type activities of the Housing Authority of the City of Needles (Authority), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements, and have issued our report thereon dated March 15, 2024.
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
In planning and performing our audit, we considered the Authority’s internal control over financial reporting (internal control) as a basis for designing auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Authority’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as item(s) 2023-001 that we consider to be significant deficiencies.
Item 4.
24 REPORT ON COMPLIANCE AND OTHER MATTERS
As part of obtaining reasonable assurance about whether the Authority’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
AUTHORITY’S RESPONSE TO FINDINGS
Government Auditing Standardsrequires the auditor to perform limited procedures on the Authority’s response to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. Their response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
PURPOSE OF THIS REPORT
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standardsin considering the Authority’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
March 15, 2024
Redlands, CA
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Schedule of Findings and Questioned Costs
Year Ended June 30, 2023
25 SCHEDULE OF FINDINGS AND QUESTIONED COSTS
SECTION I - SUMMARY OF AUDITOR’S RESULTS
Financial Statements:
1. Type of Auditor Report on the financial statements:
2. Internal control over financial reporting:
a. Material weakness(es) identified? Yes x No
b. Significant deficiency(ies) identified that are not
considered to be material weaknesses? x Yes None noted
3. Noncompliance material to financial statements? Yes x No Unmodified
SECTION II – FINANCIAL STATEMENT FINDINGS
Finding 2023-001
Prior Period Restatement to Accumulated Depreciation – Significant Deficiency Criteria: Timely and accurate reporting of financial activity is a requirement under generally accepted accounting principles as a fundamental concept.
Condition and Context: During the audit for the year ended June 30, 2023, accumulated depreciation in the prior year was overstated by $61,020 due to a miscalculation in the depreciation schedule from 2013 and 2019.
Effect or Potential Effect: A prior period adjustment was made during the current fiscal year to reduce accumulated depreciation in the current year and decrease equity to reflect it as if it were in the prior year.
Cause: Controls were not in place to review fixed asset listing at or near year end to ensure that all asset accounts are being properly recorded.
Recommendation: Accountants should be reviewing capital assets and depreciation to ensure they are properly recorded.
Views of Responsible Official(s): Management agrees with the finding and have outlined a plan of action in the Corrective Action Plan section of this report.
Item 4.
26 CORRECTIVE ACTION PLAN
Name of auditee: Housing Authority of the City of Needles Name of audit firm: Smith Marion and Co. Inc.
Period covered by the audit: Year Ended June 30, 2023
CAP Prepared by
Name: Patrick Martinez
Position: Executive Director
Telephone Number: (760) 326-3222
Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations.
Finding 2023-001
a. Comments on the Finding and Each Recommendation:
The Authority concurs with the finding.
b. Action(s) Taken or Planned on the Finding:
The Executive Director overseeing this process resulting in the finding has since been replaced. A process is now in place to ensure that the fixed assets listing report is accurate and updated properly for all assets owned by the Authority.
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Status of Prior Audit Findings
Year Ended June 30, 2023
27 STATUS OF PRIOR AUDIT FINDINGS
Financial Statement Findings:
Prior Year
Findings No.
2022-001
2022-003
Status/ Current Year
Finding No.
Resolved
Resolved
Findings Title
Significant Deficiency in Internal Controls over Accounts Payable - Unrecorded Liability(s)
Noncompliance and Significant Deficiency in Internal Controls over Reporting - Missed REAC Deadlines
2022-002 Significant Deficiency in Internal Controls over Board Minutes - Missing Signature(s) Resolved
Item 4.
HOUSING AUTHORITY OF THE
CITY OF NEEDLES
Financial Data Schedules, Independent Auditors’ Report on Financial Data Schedules, and Independent Accountants’ Report on Applying Agreed-Upon Procedures
Year Ended June 30, 2023
Item 4.
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Table of Contents
Independent Auditors’ Report on Financial Data Schedules.........................................................................................1 Independent Accountants’ Report on Applying Agreed-Upon Procedures...................................................................2 Attachment to Independent Accountant's Report on Applying Agreed-Upon Procedures ..........................................4 Financial Data Schedules...............................................................................................................................................5 Item 4.
1 INDEPENDENT AUDITORS’ REPORT ON FINANCIAL DATA SCHEDULES The Governing Body of
Housing Authority of the City of Needles
We have audited the basic financial statements of the Housing Authority of the City of Needles as of and for the year ended June 30, 2023, and have issued our report thereon dated March 15, 2024, which contained an unmodified opinion on those financial statements. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying financial data schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the financial data schedules are fairly stated in all material respects in relation to the financial statements as a whole.
March 15, 2024
Redlands, CA
1 Item 4.
2 INDEPENDENT ACCOUNTANTS’ REPORT ON APPLYING AGREED-UPON PROCEDURES The Governing Body of
Housing Authority of the City of Needles
We have performed the procedure described in the third paragraph of this report, on the electronically submitted information included within the OMB Uniform Guidance reporting package. Housing Authority of the City of Needles (Authority) is responsible for the accuracy and completeness of the electronically submitted information.
The Authority and the U.S. Department of Housing and Urban Development (HUD), Real Estate Assessment Center (REAC) have agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of determining whether the electronically submitted information agrees with the related hard copy documents within the OMB Uniform Guidance reporting package. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and the associated findings are as follows:
We compared the electronically submitted items listed in the "UFRS Rule Information" column of the matrix/chart on the Attachment I to this report with the corresponding printed documents listed in the "Hard Copy Documents" column. The results of the performance of our agreed-upon procedure indicate agreement or non-agreement of the electronically submitted information and hard copy documents as shown in the attached chart.
We were engaged by the Authority to perform this agreed-upon procedures engagement and conducted our engagement in accordance with the attestation standards established by the AICPA and the standards applicable to attestation engagements contained in Government Auditing Standardsissued by the Comptroller General of the United States. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on whether the electronically submitted information identified in the "UFRS Rule Information" column of the chart/matrix agrees with the related hard copy documents within the OMB Uniform Guidance reporting package. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
We are required to be independent of the Authority and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
We were engaged to perform an audit in accordance with Government Auditing Standards by the Authority as of and for the period ending June 30, 2023, and have issued our reports thereon dated March 15, 2024. The information in the "Hard Copy Documents" column was included within the scope or was a by-product of that audit. Further, our opinion on the fair presentation of the supplementary information dated March 15, 2024, was expressed in relation to the basic financial statements of the Authority taken as a whole. 2 Item 4.
3 A copy of the OMB Uniform Guidance reporting package, required by the Uniform Guidance, which includes the auditor's reports, is available in its entirety from the Authority. We take no responsibility for the security of the information transmitted electronically to the U.S. Department of Housing and Urban Development, REAC.
This report was intended solely for the information and use of the Authority and HUD and is not intended to be and should not be used by anyone other than these specified parties.
March 15, 2024
Redlands, CA
3 Item 4.
ATTACHMENT I
4 ATTACHMENT TO INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON
PROCEDURES
4 Item 4.
FYE: 6/30/2023
PHA Code: CA022
FDS Line Description
14.871 Housing
Choice Vouchers Total Projects Subtotal ELIM
Balance Sheet -
111-000 Cash - Unrestricted 116,190 476,418 592,608 -
112-000 Cash - Restricted - Modernization and Development - - - - 113-000 Cash - Other Restricted - - - -
113-010 Cash - Other restricted - HAP Funds - - - -
113-020 Cash - Other Restricted - FSS Escrows - - - -
113-030 Cash - Other Restricted - FSS escrow forfeitures - - - - 114-000 Cash - Tenant Security Deposits - 11,200 11,200 - 115-000 Cash - Restricted for Payment of Current Liabilities - - - - 100-000 Total Cash 116,190 487,618 603,808 -
-
121-000 Accounts Receivable - PHA Projects 7,799 - 7,799 - 122-000 Accounts Receivable - HUD Other Projects - - - - 124-000 Accounts Receivable - Other Government - - - -
125-000 Accounts Receivable - Miscellaneous - - - -
126-000 Accounts Receivable - Tenants - 9,498 9,498 -
126-100 Allowance for Doubtful Accounts -Tenants - (1,850) (1,850) - 126-200 Allowance for Doubtful Accounts - Other - - - - 127-000 Notes, Loans, & Mortgages Receivable - current - - - - 128-000 Fraud Recovery - - - -
128-100 Allowance for Doubtful Accounts - Fraud - - - - 129-000 Accrued Interest Receivable - - - -
120-000 Total Receivables, Net of Allowances for Doubtful Accounts 7,799 7,648 15,447 - -
131-000 Investments - Unrestricted - 91,330 91,330 -
132-000 Investment Restricted - Other - - - -
132-010 Investment Restricted - HAP - - - -
135-000 Investments - Restricted for Payment of Current Liability - - - - 142-000 Prepaid Expenses and Other Assets - 13,113 13,113 - 143-000 Inventories - - - -
143-100 Allowance for Obsolete Inventories - - - -
144-000 Inter Program - Due From - - - -
145-000 Assets Held for Sale - - - -
150-000 Total Current Assets 123,989 599,709 723,698 -
-
161-000 Capital asset - land - 2,381 2,381 -
162-000 Capital asset - buildings - 3,190,630 3,190,630 - 163-000 Capital asset - dwelling equipment - 31,134 31,134 - 164-000 Capital asset - administration equipment - 50,484 50,484 - 165-000 Leasehold Improvements - - - -
166-000 Capital asset - accumulated depreciation - (3,025,821) (3,025,821) - 167-000 Construction in Progress - 39,341 39,341 -
168-000 Infrastructure - - - -
160-000 Total Capital Assets, Net of Accumulated Depreciation - 288,149 288,149 - -
171-000 Notes, Loans, & Mortgages Receivable - Non-current - - - - 172-000 Notes, Loans, & Mortgages Receivable - Non-current - Past - - - - 173-000 Grants Receivable - Non Current - - - -
174-000-1 Other Assets - Miscellaneous - - - -
174-000-2 Other Assets - Long-term Interest Receivable - - - - 174-000-3 Other Assets - Pension - - - -
174-000-4 Other Assets - OPEB - - - -
174-000-5 Other Assets - lease receivable - - - -
174-000-6 Leased asset - land - - - -
174-000-7 Leased asset - buildings - - - -
174-000-8 Leased asset - equipment - - - -
174-000-9 Leased asset - accumulated amortization - - - - 174-000-10 Subscription asset - - - -
174-000-11 Subscription asset - accumulated amortization - - - - 176-000 Investments in Joint Ventures - - - -
180-000 Total Non-Current Assets - 288,149 288,149 -
-
200-000-1 Deferred Outflows of Resources - Pension - - - - 200-000-2 Deferred Outflows of Resources - OPEB - - - - 200-000-3 Deferred Outflows of Resources - Leases - - - - 200-000-4 Deferred Outflows of Resources - Other - - - - 200-000 Total Deferred Outflows of Resources - - - -
HOUSING AUTHORITY OF THE CITY OF NEEDLES
5 Item 4.
FYE: 6/30/2023
PHA Code: CA022
FDS Line Description
14.871 Housing
Choice Vouchers Total Projects Subtotal ELIM
HOUSING AUTHORITY OF THE CITY OF NEEDLES
-
290-000 Total Assets and Deferred Outflow of Resources 123,989 887,858 1,011,847 - -
311-000 Bank Overdraft - - - -
312-000 Accounts Payable <= 90 Days - 1,982 1,982 -
313-000 Accounts Payable >90 Days Past Due - - - -
321-000 Accrued Wage/Payroll Taxes Payable - 3,341 3,341 - 322-000 Accrued Compensated Absences - Current Portion - 2,105 2,105 - 324-000 Accrued Contingency Liability - - - -
325-000 Accrued Interest - - - -
331-000 Accounts Payable - HUD PHA Programs - - - -
332-000 Account Payable - PHA Projects - - - -
333-000 Accounts Payable - Other Government - - - -
341-000 Tenant Security Deposits - 11,200 11,200 -
342-010 Unearned Revenue - Operating Subsidy - - - -
342-020 Unearned Revenue - Capital Fund - - - -
342-030-1 Unearned Revenue - Prepaid Rent - 3,579 3,579 - 342-030-2 Unearned Revenue - Service Fees - - - -
342-030-3 Unearned Revenue - HAP - - - -
343-000 Current Portion of Long-term Debt - Capital - - - - 344-000 Current Portion of Long-term Debt - Operating Borrowings - - - - 345-000-1 Other Current Liabilities - miscellaneous - - - - 345-000-2 Other Current Liabilities - lease obligation - - - - 345-000-3 Other Current Liabilities - subscription obligation - - - - 346-000 Accrued Liabilities - Other - - - -
347-000 Inter Program - Due To - - - -
348-000 Loan Liability - - - -
310-000 Total Current Liabilities - 22,207 22,207 -
-
351-000 Long-term Debt - Capital - - - -
352-000 Long-term Debt - Operating Borrowings - - - -
353-000-1 Non Current Other Liabilities - Miscellaneous - - - - 353-000-2 Non Current Other Liabilities - FSS Escrow - - - - 353-000-3 Non Current Other Liabilities - Accrued interest payable - - - - 353-000-4 Non Current Other Liabilities - Lease payable - - - - 353-000-5 Non Current Other Liabilities - Subscriptions payable - - - - 354-000 Accrued Compensated Absences - Non Current - - - - 355-000 Loan Liability - Non-current - - - -
356-000 FASB 5 Liabilities - - - -
357-010 Pension Liability - - - -
357-020 OPEB Liability - - - -
350-000 Total Non-Current Liabilities - - - -
-
300-000 Total Liabilities - 22,207 22,207 -
-
400-000-1 Deferred Inflows of Resources - Pension - - - - 400-000-2 Deferred Inflows of Resources - OPEB - - - -
400-000-3 Deferred Inflows of Resources - Leases - - - - 400-000-4 Deferred Inflows of Resources - Other - - - - 400-000 Total Deferred Inflow of Resources - - - -
-
508-400 Net Investment in Capital Assets - 288,149 288,149 - 511-400 Restricted Net Position - - - -
512-400 Unrestricted Net Position 123,989 577,502 701,491 - 513-000 Total Equity - Net Assets / Position 123,989 865,651 989,640 - -
600-000 Total Liabilities, Deferred Inflows of Resources and Equity - Net 123,989 887,858 1,011,847 - -
Income Statement -
703-000 Net Tenant Rental Revenue - 217,783 217,783 -
704-000 Tenant Revenue - Other - 13,809 13,809 -
705-000 Total Tenant Revenue - 231,592 231,592 -
-
706-000 HUD PHA Operating Grants - 164,338 164,338 -
706-010 Housing Assistance Payments 120,855 - 120,855 - 706-020 Ongoing Administrative Fees Earned 25,232 - 25,232 - 706-030 Service Fees Earned - - - -
6 Item 4.
FYE: 6/30/2023
PHA Code: CA022
FDS Line Description
14.871 Housing
Choice Vouchers Total Projects Subtotal ELIM
HOUSING AUTHORITY OF THE CITY OF NEEDLES
706-040 Preliminary fees earned - - - -
706-050 Placement fees earned - - - -
706-060 All other fees - - - -
706-100 Capital Grants - 119,000 119,000 -
-
707-100-1 Management fee - external - - - -
707-100-2 Management fee - internal - - - -
707-200 Asset Management Fee - - - -
707-300 Book Keeping Fee - - - -
707-400 Front Line Service Fee - - - -
707-500-1 Other Fees - external - - - -
707-500-2 Other Fees - internal - - - -
707-000 Total Fee Revenue - - - -
-
708-000-1 Other Government Grants - external - - - -
708-000-2 Other Government Grants - internal - - - -
711-000 Investment Income - Unrestricted - - - -
711-010 Investment Income - Unrestricted - HAP - - - -
711-020 Investment Income - Unrestricted - Administrative Fees - - - - 712-000 Mortgage Interest Income - - - -
713-000 Proceeds from Disposition of Assets Held for Sale - - - - 713-100 Cost of Sale of Assets - - - -
714-000 Fraud Recovery - - - -
714-010 Fraud Recovery - HAP - - - -
714-020 Fraud Recovery - Administrative Fees - - - -
715-000 Other Revenue 4,692 - 4,692 -
716-000 Gain or Loss on Sale of Capital Assets - (4,175) (4,175) - 720-000 Investment Income - Restricted - - - -
720-010 Investment Income - Restricted - HAP - - - -
720-020 Investment Income - Restricted - Administrative Fees - - - - 700-000 Total Revenue 150,779 510,755 661,534 -
-
911-000 Administrative Salaries 12,000 92,625 104,625 - 912-000 Auditing Fees - 32,367 32,367 -
913-000-1 Management Fee - external - - - -
913-000-2 Management Fee - internal - - - -
913-100 Book-keeping Fee - - - -
914-000 Advertising and Marketing - - - -
915-000 Employee Benefit contributions - Administrative - 14,678 14,678 - 916-000 Office Expenses - 39,010 39,010 -
917-000 Legal Expense - - - -
918-000 Travel - - - -
918-100 Allocated Overhead - - - -
919-000-1 Other - external - - - -
919-000-2 Other - internal - - - -
910-000 Total Operating - Administrative 12,000 178,680 190,680 - -
920-000 Asset Management Fee - - - -
-
921-000 Tenant Services - Salaries - - - -
922-000 Relocation Costs - - - -
923-000 Employee Benefit Contributions - Tenant Services - - - - 924-000 Tenant Services - Other - - - -
925-000 Total Tenant Services - - - -
-
931-000 Water - 44,581 44,581 -
932-000 Electricity - 4,648 4,648 -
933-000 Gas - 551 551 -
934-000 Fuel - - - -
935-000 Labor - - - -
936-000 Sewer - - - -
937-000 Employee Benefit Contributions - Utilities - - - - 938-000 Other Utilities Expense - 24,526 24,526 -
930-000 Total Utilities - 74,306 74,306 -
-
941-000 Ordinary Maintenance and Operations - Labor - 76,092 76,092 - 942-000 Ordinary Maintenance and Operations - Materials and Other - 27,872 27,872 - 7 Item 4.
FYE: 6/30/2023
PHA Code: CA022
FDS Line Description
14.871 Housing
Choice Vouchers Total Projects Subtotal ELIM
HOUSING AUTHORITY OF THE CITY OF NEEDLES
943-010 Ordinary Maint. & Operations-Garbage & Trash - 23,690 23,690 - 943-020 Ordinary Maint. & Operations-HVAC - 131 131 -
943-030 Ordinary Maint. & Operations- Snow Removal - - - - 943-040 Ordinary Maint. & Operations-Elevator - - - -
943-050 Ordinary Maint. & Operations- Landscape & Grounds - - - - 943-060 Ordinary Maint. & Operations- Unit Turnaround - - - - 943-070 Ordinary Maint. & Operations- Electrical Contracts - - - - 943-080 Ordinary Maint. & Operations- Plumbing Contracts - - - - 943-090 Ordinary Maint. & Operations- Extermination - - - - 943-100 Ordinary Maint. & Operations- Janitorial Contracts - - - - 943-110 Ordinary Maint. & Operations- Routine Maintenance - - - - 943-120 Ordinary Maint. & Operations- Misc. Contracts - 42,109 42,109 - 945-000 Employee Benefit Contributions - Ordinary Maintenance - 24,449 24,449 - 940-000 Total Maintenance - 194,343 194,343 -
-
951-000 Protective Services - Labor - - - -
952-000 Protective Services - Other Contract Costs - - - - 953-000 Protective Services - Other - 600 600 -
955-000 Employee Benefit Contributions - Protective Services - - - - 950-000 Total Protective Services - 600 600 -
-
961-100 Property Insurance - 12,562 12,562 -
961-200 Liability Insurance - - - -
961-300 Workmen's Compensation - - - -
961-400 All Other Insurance - - - -
961-000 Total insurance Premiums - 12,562 12,562 -
-
962-000-1 Other General Expenses - - - -
962-000-2 Other General Expenses - Lease asset amortization - - - - 962-000-3 Other General Expenses - Subscription asset amortization - - - - 962-100 Compensated Absences - - - -
963-000 Payments in Lieu of Taxes - - - -
964-000 Bad debt - Tenant Rents - 1,849 1,849 -
965-000 Bad debt - Mortgages - - - -
966-000 Bad debt - Other - - - -
968-000 Severance Expense - - - -
960-000 Total Other General Expenses - 1,849 1,849 -
-
967-100 Interest - capital debt - - - -
967-200-1 Interest - operating debt - - - -
967-200-2 Interest - operating debt - leases - - - -
967-200-3 Interest - operating debt - subscriptions - - - - 967-300 Amortization of Bond Issue Costs - - - -
967-000 Total Interest Expense and Amortization Cost - - - - -
969-000 Total Operating Expenses 12,000 462,340 474,340 - -
970-000 Excess of Operating Revenue over Operating Expenses 138,779 48,415 187,194 - -
971-000 Extraordinary Maintenance - - - -
972-000 Casualty Losses - Non-capitalized - - - -
973-000 Non Housing Choice Voucher HAP - - - -
973-010 One Year Mainstream - - - -
973-020 Homeownership - - - -
973-025 Litigation - - - -
973-030 Hope VI - - - -
973-035 Moving to Work - - - -
973-040 Tenant Protection - - - -
973-041 Portable - - - -
973-045 FSS Escrow Deposits - - - -
973-049 All Other Special Vouchers - - - -
973-050-1 All Other Vouchers - external 126,263 - 126,263 - 973-050-2 All Other Vouchers - internal - - - -
973-500 HAP Portability-In 4,298 - 4,298 -
974-000 Capital asset - depreciation - 24,712 24,712 -
975-000 Fraud Losses - - - -
978-000 Dwelling Units Rent Expense - - - -
8 Item 4.
FYE: 6/30/2023
PHA Code: CA022
FDS Line Description
14.871 Housing
Choice Vouchers Total Projects Subtotal ELIM
HOUSING AUTHORITY OF THE CITY OF NEEDLES
900-000 Total Expenses 142,561 487,052 629,613 -
-
100-100 Operating Transfer In - - - -
100-200 Operating transfer Out - - - -
100-300 Operating Transfers from/to Primary Government - - - - 100-400 Operating Transfers from/to Component Unit - - - - 100-700 Extraordinary Items, Net Gain/Loss - - - -
100-800 Special Items (Net Gain/Loss) - - - -
100-910 Transfers between Project - In - - - -
100-920 Transfers between Project - Out - - - -
100-930 Transfers between Program and Project - In - - - - 100-940 Transfers between Project and Program - Out - - - - 101-000 Total Other financing Sources (Uses) - - - -
-
10000 Excess (Deficiency) of Total Revenue Over (Under) Total Expenses 8,218 23,703 31,921 - -
1103-000 Beginning Equity 115,771 780,928 896,699 -
1104-010 Prior Period Adjustments - 61,020 61,020 -
1104-070 Equity Transfers - - - -
9 Item 4.
FYE: 6/30/2023
PHA Code: CA022
FDS Line Description
Balance Sheet
111-000 Cash - Unrestricted
112-000 Cash - Restricted - Modernization and Development 113-000 Cash - Other Restricted
113-010 Cash - Other restricted - HAP Funds
113-020 Cash - Other Restricted - FSS Escrows
113-030 Cash - Other Restricted - FSS escrow forfeitures 114-000 Cash - Tenant Security Deposits
115-000 Cash - Restricted for Payment of Current Liabilities 100-000 Total Cash
121-000 Accounts Receivable - PHA Projects
122-000 Accounts Receivable - HUD Other Projects
124-000 Accounts Receivable - Other Government
125-000 Accounts Receivable - Miscellaneous
126-000 Accounts Receivable - Tenants
126-100 Allowance for Doubtful Accounts -Tenants
126-200 Allowance for Doubtful Accounts - Other
127-000 Notes, Loans, & Mortgages Receivable - current
128-000 Fraud Recovery
128-100 Allowance for Doubtful Accounts - Fraud
129-000 Accrued Interest Receivable
120-000 Total Receivables, Net of Allowances for Doubtful Accounts 131-000 Investments - Unrestricted
132-000 Investment Restricted - Other
132-010 Investment Restricted - HAP
135-000 Investments - Restricted for Payment of Current Liability 142-000 Prepaid Expenses and Other Assets
143-000 Inventories
143-100 Allowance for Obsolete Inventories
144-000 Inter Program - Due From
145-000 Assets Held for Sale
150-000 Total Current Assets
161-000 Capital asset - land
162-000 Capital asset - buildings
163-000 Capital asset - dwelling equipment
164-000 Capital asset - administration equipment
165-000 Leasehold Improvements
166-000 Capital asset - accumulated depreciation
167-000 Construction in Progress
168-000 Infrastructure
160-000 Total Capital Assets, Net of Accumulated Depreciation 171-000 Notes, Loans, & Mortgages Receivable - Non-current 172-000 Notes, Loans, & Mortgages Receivable - Non-current - Past 173-000 Grants Receivable - Non Current
174-000-1 Other Assets - Miscellaneous
174-000-2 Other Assets - Long-term Interest Receivable
174-000-3 Other Assets - Pension
174-000-4 Other Assets - OPEB
174-000-5 Other Assets - lease receivable
174-000-6 Leased asset - land
174-000-7 Leased asset - buildings
174-000-8 Leased asset - equipment
174-000-9 Leased asset - accumulated amortization
174-000-10 Subscription asset
174-000-11 Subscription asset - accumulated amortization 176-000 Investments in Joint Ventures
180-000 Total Non-Current Assets
200-000-1 Deferred Outflows of Resources - Pension
200-000-2 Deferred Outflows of Resources - OPEB
200-000-3 Deferred Outflows of Resources - Leases
200-000-4 Deferred Outflows of Resources - Other
200-000 Total Deferred Outflows of Resources
HOUSING AUTHORITY OF THE CITY OF NEEDLES
Total
592,608
-
-
-
-
-
11,200
-
603,808
-
7,799
-
-
-
9,498
(1,850)
-
-
-
-
-
15,447
-
91,330
-
-
-
13,113
-
-
-
-
723,698
-
2,381
3,190,630
31,134
50,484
-
(3,025,821)
39,341
-
288,149
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
288,149
-
-
-
-
-
-
10 Item 4.
FYE: 6/30/2023
PHA Code: CA022
FDS Line Description
HOUSING AUTHORITY OF THE CITY OF NEEDLES
290-000 Total Assets and Deferred Outflow of Resources
311-000 Bank Overdraft
312-000 Accounts Payable <= 90 Days
313-000 Accounts Payable >90 Days Past Due
321-000 Accrued Wage/Payroll Taxes Payable
322-000 Accrued Compensated Absences - Current Portion
324-000 Accrued Contingency Liability
325-000 Accrued Interest
331-000 Accounts Payable - HUD PHA Programs
332-000 Account Payable - PHA Projects
333-000 Accounts Payable - Other Government
341-000 Tenant Security Deposits
342-010 Unearned Revenue - Operating Subsidy
342-020 Unearned Revenue - Capital Fund
342-030-1 Unearned Revenue - Prepaid Rent
342-030-2 Unearned Revenue - Service Fees
342-030-3 Unearned Revenue - HAP
343-000 Current Portion of Long-term Debt - Capital
344-000 Current Portion of Long-term Debt - Operating Borrowings 345-000-1 Other Current Liabilities - miscellaneous
345-000-2 Other Current Liabilities - lease obligation
345-000-3 Other Current Liabilities - subscription obligation 346-000 Accrued Liabilities - Other
347-000 Inter Program - Due To
348-000 Loan Liability
310-000 Total Current Liabilities
351-000 Long-term Debt - Capital
352-000 Long-term Debt - Operating Borrowings
353-000-1 Non Current Other Liabilities - Miscellaneous 353-000-2 Non Current Other Liabilities - FSS Escrow
353-000-3 Non Current Other Liabilities - Accrued interest payable 353-000-4 Non Current Other Liabilities - Lease payable 353-000-5 Non Current Other Liabilities - Subscriptions payable 354-000 Accrued Compensated Absences - Non Current
355-000 Loan Liability - Non-current
356-000 FASB 5 Liabilities
357-010 Pension Liability
357-020 OPEB Liability
350-000 Total Non-Current Liabilities
300-000 Total Liabilities
400-000-1 Deferred Inflows of Resources - Pension
400-000-2 Deferred Inflows of Resources - OPEB
400-000-3 Deferred Inflows of Resources - Leases
400-000-4 Deferred Inflows of Resources - Other
400-000 Total Deferred Inflow of Resources
508-400 Net Investment in Capital Assets
511-400 Restricted Net Position
512-400 Unrestricted Net Position
513-000 Total Equity - Net Assets / Position
600-000 Total Liabilities, Deferred Inflows of Resources and Equity - Net Income Statement
703-000 Net Tenant Rental Revenue
704-000 Tenant Revenue - Other
705-000 Total Tenant Revenue
706-000 HUD PHA Operating Grants
706-010 Housing Assistance Payments
706-020 Ongoing Administrative Fees Earned
706-030 Service Fees Earned
Total
-
1,011,847
-
-
1,982
-
3,341
2,105
-
-
-
-
-
11,200
-
-
3,579
-
-
-
-
-
-
-
-
-
-
22,207
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
22,207
-
-
-
-
-
-
-
288,149
-
701,491
989,640
-
1,011,847
217,783
13,809
231,592
-
164,338
120,855
25,232
-
11 Item 4.
FYE: 6/30/2023
PHA Code: CA022
FDS Line Description
HOUSING AUTHORITY OF THE CITY OF NEEDLES
706-040 Preliminary fees earned
706-050 Placement fees earned
706-060 All other fees
706-100 Capital Grants
707-100-1 Management fee - external
707-100-2 Management fee - internal
707-200 Asset Management Fee
707-300 Book Keeping Fee
707-400 Front Line Service Fee
707-500-1 Other Fees - external
707-500-2 Other Fees - internal
707-000 Total Fee Revenue
708-000-1 Other Government Grants - external
708-000-2 Other Government Grants - internal
711-000 Investment Income - Unrestricted
711-010 Investment Income - Unrestricted - HAP
711-020 Investment Income - Unrestricted - Administrative Fees 712-000 Mortgage Interest Income
713-000 Proceeds from Disposition of Assets Held for Sale 713-100 Cost of Sale of Assets
714-000 Fraud Recovery
714-010 Fraud Recovery - HAP
714-020 Fraud Recovery - Administrative Fees
715-000 Other Revenue
716-000 Gain or Loss on Sale of Capital Assets
720-000 Investment Income - Restricted
720-010 Investment Income - Restricted - HAP
720-020 Investment Income - Restricted - Administrative Fees 700-000 Total Revenue
911-000 Administrative Salaries
912-000 Auditing Fees
913-000-1 Management Fee - external
913-000-2 Management Fee - internal
913-100 Book-keeping Fee
914-000 Advertising and Marketing
915-000 Employee Benefit contributions - Administrative 916-000 Office Expenses
917-000 Legal Expense
918-000 Travel
918-100 Allocated Overhead
919-000-1 Other - external
919-000-2 Other - internal
910-000 Total Operating - Administrative
920-000 Asset Management Fee
921-000 Tenant Services - Salaries
922-000 Relocation Costs
923-000 Employee Benefit Contributions - Tenant Services 924-000 Tenant Services - Other
925-000 Total Tenant Services
931-000 Water
932-000 Electricity
933-000 Gas
934-000 Fuel
935-000 Labor
936-000 Sewer
937-000 Employee Benefit Contributions - Utilities
938-000 Other Utilities Expense
930-000 Total Utilities
941-000 Ordinary Maintenance and Operations - Labor
942-000 Ordinary Maintenance and Operations - Materials and Other Total
-
-
-
119,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,692
(4,175)
-
-
-
661,534
-
104,625
32,367
-
-
-
-
14,678
39,010
-
-
-
-
-
190,680
-
-
-
-
-
-
-
-
-
44,581
4,648
551
-
-
-
-
24,526
74,306
-
76,092
27,872
12 Item 4.
FYE: 6/30/2023
PHA Code: CA022
FDS Line Description
HOUSING AUTHORITY OF THE CITY OF NEEDLES
943-010 Ordinary Maint. & Operations-Garbage & Trash
943-020 Ordinary Maint. & Operations-HVAC
943-030 Ordinary Maint. & Operations- Snow Removal
943-040 Ordinary Maint. & Operations-Elevator
943-050 Ordinary Maint. & Operations- Landscape & Grounds 943-060 Ordinary Maint. & Operations- Unit Turnaround
943-070 Ordinary Maint. & Operations- Electrical Contracts 943-080 Ordinary Maint. & Operations- Plumbing Contracts 943-090 Ordinary Maint. & Operations- Extermination
943-100 Ordinary Maint. & Operations- Janitorial Contracts 943-110 Ordinary Maint. & Operations- Routine Maintenance 943-120 Ordinary Maint. & Operations- Misc. Contracts
945-000 Employee Benefit Contributions - Ordinary Maintenance 940-000 Total Maintenance
951-000 Protective Services - Labor
952-000 Protective Services - Other Contract Costs
953-000 Protective Services - Other
955-000 Employee Benefit Contributions - Protective Services 950-000 Total Protective Services
961-100 Property Insurance
961-200 Liability Insurance
961-300 Workmen's Compensation
961-400 All Other Insurance
961-000 Total insurance Premiums
962-000-1 Other General Expenses
962-000-2 Other General Expenses - Lease asset amortization 962-000-3 Other General Expenses - Subscription asset amortization 962-100 Compensated Absences
963-000 Payments in Lieu of Taxes
964-000 Bad debt - Tenant Rents
965-000 Bad debt - Mortgages
966-000 Bad debt - Other
968-000 Severance Expense
960-000 Total Other General Expenses
967-100 Interest - capital debt
967-200-1 Interest - operating debt
967-200-2 Interest - operating debt - leases
967-200-3 Interest - operating debt - subscriptions
967-300 Amortization of Bond Issue Costs
967-000 Total Interest Expense and Amortization Cost
969-000 Total Operating Expenses
970-000 Excess of Operating Revenue over Operating Expenses 971-000 Extraordinary Maintenance
972-000 Casualty Losses - Non-capitalized
973-000 Non Housing Choice Voucher HAP
973-010 One Year Mainstream
973-020 Homeownership
973-025 Litigation
973-030 Hope VI
973-035 Moving to Work
973-040 Tenant Protection
973-041 Portable
973-045 FSS Escrow Deposits
973-049 All Other Special Vouchers
973-050-1 All Other Vouchers - external
973-050-2 All Other Vouchers - internal
973-500 HAP Portability-In
974-000 Capital asset - depreciation
975-000 Fraud Losses
978-000 Dwelling Units Rent Expense
Total
23,690
131
-
-
-
-
-
-
-
-
-
42,109
24,449
194,343
-
-
-
600
-
600
-
12,562
-
-
-
12,562
-
-
-
-
-
-
1,849
-
-
-
1,849
-
-
-
-
-
-
-
-
474,340
-
187,194
-
-
-
-
-
-
-
-
-
-
-
-
-
126,263
-
4,298
24,712
-
-
13 Item 4.
FYE: 6/30/2023
PHA Code: CA022
FDS Line Description
HOUSING AUTHORITY OF THE CITY OF NEEDLES
900-000 Total Expenses
100-100 Operating Transfer In
100-200 Operating transfer Out
100-300 Operating Transfers from/to Primary Government
100-400 Operating Transfers from/to Component Unit
100-700 Extraordinary Items, Net Gain/Loss
100-800 Special Items (Net Gain/Loss)
100-910 Transfers between Project - In
100-920 Transfers between Project - Out
100-930 Transfers between Program and Project - In
100-940 Transfers between Project and Program - Out
101-000 Total Other financing Sources (Uses)
10000 Excess (Deficiency) of Total Revenue Over (Under) Total Expenses 1103-000 Beginning Equity
1104-010 Prior Period Adjustments
1104-070 Equity Transfers
Total
629,613
-
-
-
-
-
-
-
-
-
-
-
-
-
31,921
-
896,699
61,020
-
14 Item 4.
HOUSING AUTHORITY OF THE
CITY OF NEEDLES
Management Letter
Year Ended June 30, 2023
Item 4.
1 March 15, 2024
To the Management and Governing Body of
Housing Authority of the City of Needles
Ladies and Gentlemen:
In planning and performing our audit of the basic financial statements of Housing Authority of the City of Needles Authority (Authority) as of and for the year ended June 30, 2023, in accordance with auditing standards generally accepted in the United States of America, we considered the Authority’s internal control over financial reporting (internal control) as a basis for designing audit procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control.
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses and/or significant deficiencies and, therefore, material weaknesses and/or significant deficiencies may exist that were not identified.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis.
Exhibit I to this Management Letter lists any deficiencies in internal control, substantive matters, and/or other issues encountered during our audit.
This communication is intended solely for the information and use of management of the Authority and is not intended to be and should not be used by anyone other than these specified parties.
Sincerely,
Item 4.
EXHIBIT I
2 MANAGEMENT LETTER COMMENTS
We identified certain deficiencies in internal control that we consider to be significant deficiencies that should be brought to your attention:
Finding 2023-001
Prior Period Restatement to Accumulated Depreciation – Significant Deficiency Condition and Context: During the audit for the year ended June 30, 2023, accumulated depreciation in the prior year was overstated by $61,020 due to a miscalculation in the depreciation schedule from 2013 and 2019.
Effect or Potential Effect: A prior period adjustment was made during the current fiscal year to reduce accumulated depreciation in the current year and decrease equity to reflect it as if it were in the prior year.
Cause: Controls were not in place to review fixed asset listing at or near year end to ensure that all asset accounts are being properly recorded.
Recommendation: Accountants should be reviewing capital assets and depreciation to ensure they are properly recorded.
We have identified certain matters involving the internal control and other operational matters that are not considered significant deficiencies or material weaknesses. These matters do not affect our report dated March 15, 2024 on the financial statements of the Authority. We will review the status of these comments during our next audit engagement. Our comments and recommendations, all of which have been discussed with appropriate members of management, are intended to improve internal control, or result in other operating efficiencies.
Our comments are summarized as follows:
Prior-Period Adjustments
We noted that a prior period adjustment relating to building improvements and equipment was needed in order to correct accumulated depreciation. When depreciation is not properly recorded, the financial information provided to management and those charged with governance may not be accurate or correct. We recommend reviewing the depreciation schedule and ensuring it is calculated properly.
Item 4.
HOUSING AUTHORITY OF THE
CITY OF NEEDLES
The Auditors Communication with Those Charged with
Governance
Year Ended June 30, 2023
Item 4.
1 March 15, 2024
The Governing Body of
Housing Authority of the City of Needles
We have audited the financial statements of Housing Authority of the City of Needles (Authority) as of and for the year ended June 30, 2023, and have issued our report thereon dated March 15, 2024.
This report summarizes our communications with those charged with governance as required by our professional standards to assist you in fulfilling your obligation to oversee the financial reporting and disclosure process.
REQUIRED COMMUNICATIONS
Professional standards require the auditor to provide the Governing Body (the Board or those charged with governance) with additional information regarding the scope and results of the audit that may assist the Board in overseeing the financial reporting and disclosure processes which the management of the Authority is responsible.
We summarize these required communications as follows:
AUDITORS’ RESPONSIBILITIES UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES (US
GAAS) AND GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS (GAGAS) Our responsibilities are included in our audit engagement letter.
The financial statements are the responsibility of the Authority’s management as prepared with the oversight of those charged with governance. Our audit was designed in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, to obtain reasonable, rather than absolute, assurance that the financial statements are free of material misstatement. We were not engaged to perform an audit of the Authority’s internal control over financial reporting.
Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control over financial reporting. Accordingly, we will express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.
Item 4.
2 INDEPENDENCE
We are not aware of any relationships between Smith Marion & Co., and our related entities, and the Authority, or any other matters that in our professional judgment, may reasonably be thought to bear on our independence.
We confirm that we are independent with respect to the Authority within the meaning of the applicable published rules and pronouncements, its interpretations, and rulings.
THE ADOPTION OF, OR A CHANGE IN SIGNIFICANT ACCOUNTING POLICIES We determined that the Board is informed about the initial selection of, and any changes in significant accounting principles or their application when the accounting principle or its application, including alternative methods of applying the accounting principle, has a material effect on the financial statements.
There was no adoption of, or changes in significant accounting policies.
AUDITORS’ JUDGEMENT ABOUT THE QUALITY OF THE AUTHORITY’S ACCOUNTING PRINCIPLES We discussed our judgment about the quality, not just the acceptability, of the Authority’s accounting principles as applied in its financial reporting, including the consistency of the accounting policy and their application and the clarity and completeness of the financial statements and related disclosures.
SENSITIVE ACCOUNTING ESTIMATES
Certain estimates are particularly sensitive due to their significance to the financial statements and the possibility that future events may differ significantly from management’s expectations.
We determined that the Board is informed about management’s process for formulating particularly sensitive estimates and about the basis to our conclusions regarding the reasonableness of those estimates.
There were no sensitive estimates management’s judgment is called upon in.
FINANCIAL STATEMENT DISCLOSURES
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users.
There were no sensitive disclosures management’s judgment is called upon in.
IDENTIFIED OR SUSPECTED FRAUD
We are not aware of any matters that require communication. Furthermore, the Authority’s management has represented to us that they were not aware of any fraud or illegal acts for the period from July 01, 2022 to June 30, 2023 (see Management’s Representation Letter).
Item 4.
3 SIGNIFICANT DIFFICULTIES ENCOUNTERED DURING THE AUDIT There were no serious difficulties encountered in dealing with management in performing the audit.
REPRESENTATIONS REQUESTED FROM MANAGEMENT
We have requested certain written representations from management in a separate letter dated March 15, 2024 (see Management’s Representation Letter).
UNCORRECTED MISSTATEMENTS, RELATED TO ACCOUNTS AND DISCLOSURES, CONSIDERED BY MANAGEMENT TO
BE IMMATERIAL
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole. The uncorrected financial statement misstatements whose effects in the current and prior periods, as determined by management, are immaterial, both individually and in the aggregate, to the financial statements taken as a whole.
MATERIAL CORRECTED MISSTATEMENTS, RELATED TO ACCOUNTS AND DISCLOSURES In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures.
As a result of our audit procedures, material misstatements were brought to the attention of management and were corrected during the current period (see Adjusting Journal Entry Report).
DISAGREEMENTS WITH MANAGEMENT
There were no material disagreements with the Authority’s management on financial accounting and reporting matters during the audit.
CONSULTATIONS WITH OTHER ACCOUNTANTS
In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters (see Management Representation Letter).
Item 4.
4 MAJOR ISSUES DISCUSSED WITH MANAGEMENT PRIOR TO RETENTION In the normal course of our professional association with the Authority, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the Authority, and operational plans and strategies that may affect the risks of material misstatement.
None of the matters discussed resulted in a condition to our retention as the Authority’s auditors.
SIGNIFICANT RISKS IDENTIFIED
For purposes of this communication, professional standards require us to communicate to you significant risks identified during our audit.
The following significant risks were identified in our audit procedures:
Management override of controls (required by US GAAS) - Even though internal control over financial reporting (hereinafter referred to as internal controls or simply as controls) may appear to be well-designed and effective, controls that are otherwise effective can be overridden by management in every entity. Many financial statement frauds have been perpetrated by intentional override by senior management of what might otherwise appear to be effective internal controls. Because management is primarily responsible for the design, implementation, and maintenance of internal controls, the entity is always exposed to the danger of management override of controls.
Improper revenue recognition (required by US GAAS) - Revenue recognition is one of only two matters that must always, under AU-C 240 (the fraud risk standard), be considered a high-risk area, requiring expanded audit attention.
Revenue recognition fraud schemes have been responsible for more investigations, restatements, and litigation against outside accountants than any other single cause. Revenue recognition is an accounting principle that asserts that revenue must be recognized as it is earned. Proper revenue recognition is imperative because it relates directly to the integrity of a company’s financial reporting. The intent of the principle around revenue recognition is to standardize the revenue policies used by companies. This standardization allows external entities to easily compare the income statements of different companies in the same industry. Because revenue is one of the most important measures used by external entities to assess a company’s performance, it is crucial that financial statements be consistent and credible.
GASB 96 Implementation (New Significant Standard) - Implementation of new accounting standards like GASB 96 can be complex and requires careful consideration.
Government entities are increasingly utilizing Subscription-Based Information Technology Arrangements (SBITAs) to access necessary software without the need for ownership. GASB Statement 96 on SBITAs fundamentally changes the recognition, measurement, and disclosure related to these arrangements. The major changes outlined in GASB 96 are: (1) SBITAs will be classified as a right-to-use subscription asset—an intangible asset—on the balance sheet; (2) Outflows associated with the subscription will be recognized as subscription expenses, generally in the period incurred; (3) Specific disclosure requirements will provide information about the nature of the government's SBITAs; and (4) The provisions are effective for fiscal years beginning after June 15, 2022, with earlier application encouraged. Implementation requires attention to the specific terms and conditions of SBITAs to ensure proper accounting treatment.
Item 4.
5 SIGNIFICANT UNUSUAL TRANSACTIONS
For purposes of this communication, professional standards require us to communicate to you significant unusual transactions identified during our audit.
During our audit procedures, we did not become aware of significant unusual transaction that should be brought to your attention.
OTHER SIGNIFICANT MATTERS, FINDINGS, OR ISSUES
During prior audit procedures, we became aware of certain matters that should be brought to your attention. A listing of these matters is discussed in a separate report to management dated March 15, 2024 (see Management Letter).
OTHER INFORMATION IN DOCUMENTS CONTAINING AUDITED FINANCIAL STATEMENTS We reviewed the supplemental information to the financial statements to ensure consistency with the audited financial statements.
RESTRICTION ON USE
This report is intended solely for the information and use of the individuals charged with governance, and management of the Authority and is not intended to be and should not be used by anyone other than these specified parties.
Sincerely,
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MINUTES
REGULAR MEETING OF THE CITY COUNCIL
NEEDLES PUBLIC UTILITY AUTHORITY
HOUSING AUTHORITY CITY OF NEEDLES
CITY OF NEEDLES, CALIFORNIA
CITY COUNCIL CHAMBERS
1111 BAILEY AVENUE, NEEDLES
TUESDAY, MARCH 26, 2024
COUNCIL EXECUTIVE SESSION – 5:00 PM
CITY COUNCIL MEETING – 6:00 PM
CALL TO ORDER - Mayor Jernigan called the meeting to order at 5:07 pm
ROLL CALL
PRESENT
Council Member Ellen Campbell
Council Member Jamie McCorkle
Council Member Henry Longbrake
Mayor Janet Jernigan
Council Member JoAnne Pogue
Vice Mayor Kirsten Merritt - joined executive session via Teams at 5:14 pm Council Member Tona Belt - arrived and joined executive session at 5:16 pm Also present City Manager Patrick Martinez, City Attorney John Pinkney, City Clerk Dale Jones, and Assistant City Clerk Candace Clark
PUBLIC COMMENTS PERTAINING TO THE EXECUTIVE SESSION ITEMS - None RECESSED TO EXECUTIVE SESSION at 5:08 pm
EXECUTIVE SESSION
a. Public Employee Performance Evaluation pursuant to Government Code §54957 - Title of position: City Clerk
No reportable action
b. Conference with Legal Counsel – Existing Litigation (Gov’t Code § 54956.9(d)(1)) In re: City of Needles v. Dominic Do, et al. – 641 Front Street California Superior Court-County of San Bernardino (Case No. CIVSB2316433)
Council Member Campbell moved, second by Council Member Pogue, to approve a settlement agreement. Motion carried by the following roll call vote:
Ayes: Council Members Campbell, McCorkle, Vice Mayor Merritt, Council Members Pogue, Belt, and Longbrake
Noes: None
Absent: None
c. Conference with Legal Counsel Regarding Existing Litigation Pursuant to Government Code Section 54956.9(d)(1): City of Needles v. Minasian, et. al., SB County Case Number CIVSB2328931
Council Member Campbell moved, second by Council Member Pogue, to approve reimbursement of legal fees to the City and the City purchasing the property back at the agreed upon terms. Motion carried by the following roll call vote:
Item 6.
Ayes: Council Members Campbell, McCorkle, Vice Mayor Merritt, Council Members Pogue, Belt, and Longbrake
Noes: None
Absent: None
EXECUTIVE SESSION REPORT - City Attorney John Pinkney gave report as noted above CALL TO ORDER - Mayor Jernigan called the meeting to order at 6:09 pm
ROLL CALL
PRESENT
Council Member Ellen Campbell
Council Member Jamie McCorkle
Vice Mayor Kirsten Merritt
Mayor Janet Jernigan
Council Member JoAnne Pogue
Council Member Tona Belt
Council Member Henry Longbrake
PLEDGE OF ALLEGIANCE - led by Mayor Jernigan
INVOCATION - Given by Council Member Campbell
APPROVAL OF AGENDA
Council Member McCorkle moved, second by Vice Mayor Merritt to approve the agenda. Motion carried by the following roll call vote:
Ayes: Council Members Campbell, McCorkle, Vice Mayor Merritt, Council Members Pogue, Belt, and Longbrake
Noes: None
Absent: None
CONFLICT OF INTEREST - None
CORRESPONDENCE - None
INTRODUCTIONS - Mayor Jernigan acknowledged former Council Member Tim Terral in attendance CITY ATTORNEY – Parliamentary Procedures given by City Attorney John Pinkney PUBLIC APPEARANCE Lieutenant Jake Gault from the San Bernardino County Sheriff’s Department announced that donations received in honor of the late Steve Jernigan, under the direction of Mayor Jernigan, would be donated to the Needles High School Hiking Club. Lieutenant Gault presented the hiking club with a check for $2,475. Members of the Needles High School Hiking Club thanked the Sheriff’s Department for the donation.
PRESENTATION
Presentation by Ethan Guy, Director of Government Investments, Local Initiatives Support Corporation (LISC) who gave a PowerPoint presentation.
PUBLIC HEARING
1. Public Hearing held for the Annual Account of Development Impact Fees for FY 23 Staff report given by City Manager Martinez.
Mayor Jernigan opened the public hearing for public comment at 6:41 pm.
Mayor Jernigan closed the public hearing at 6:41 pm.
Council Member Belt moved, second by Council Member Pogue, to approve the Annual Account of Development Fees for FY 23. Motion carried by the following roll call vote:
Ayes: Council Members Campbell, McCorkle, Vice Mayor Merritt, Council Members Pogue, Belt, and Longbrake
Noes: None
Absent: None
Item 6.
PUBLIC COMMENTS PERTAINING TO THE COUNCIL ITEMS - None
COUNCIL CONSENT CALENDAR
Council Member McCorkle pulled item 5 for clarification. City Manager Martinez gave staff report.
Council Member Campbell moved, second by Council Member McCorkle, to approve consent calendar items 2 through 5. Motion carried by the following roll call vote:
Ayes: Council Members Campbell, McCorkle, Vice Mayor Merritt, Council Members Pogue, Belt, and Longbrake
Noes: None
Absent: None
2. Approved the Warrants Register through March 26, 2024
3. Approved the Minutes of March 12, 2024
4. Approved the Needles Rodeo Association Daily License Application for the Department of Alcoholic Beverage Control for their Needles Rodeo Association Rodeo, April 4 - 6, 2024 at the Needles Rodeo Grounds.
5. Rejected All Proposals received on October 4, 2023, for the Marketing and Public Affairs Professional Services and authorized staff to modify the existing RFP and re-advertise for proposals.
CITY ATTORNEY REPORT - City Attorney Pinkney had nothing to report CITY MANAGER REPORT - Given by City Manager Martinez
MANAGERS REPORT
COUNCIL REQUESTS
Councilmember Campbell - reported on her recent trip to El Centro and the developer who created 900 units in 12 distressed properties which he converted from motel rooms into efficiency-apartments.
Councilmember McCorkle - reported that the Needles High School Band would be hosting a BBQ dinner tomorrow evening (Wednesday, March 27) at 6pm
Vice Mayor Merritt - had no requests
Council Member Pogue - Reported on the success of the SB County Resource Fair; reported that she recently took a tour of the El Garces, hosted by Mike Thornton, and stated he is a wonderful guide.
Councilmember Belt - Complimented the Recreation Center for all their efforts on the recent All Stars event, and for all that they do for the local youth.
Councilmember Longbrake - Reported on the success of the SB County Resource Fair; stated that he's hearing a lot of complaints from residents about the cannabis odor coming from the Lilly Hill grow facility, and other cannabis facilities on nights and weekends
Mayor Jernigan - met with the school district office and reported on the Arrowheart Foundation's program to address community needs; kindergartners are in need of a snack bar; high school students received toiletries and snacks from the Arrowheart Foundation; Arrowheart Foundation provided 350 free meals for the community at the Senior Center on May 23; reported on the Resource Fair success, and that it will be coming back again next year; thanked all involved who helped make it a success; reported the public defender will be hosting a workshop; the health department will be providing free shots and vaccines at the Mayor's office on Broadway; reported on the success of Art in the Park and the Craft Fair; reported that there is an Easter Egg Hunt in Santa Fe Park on Saturday, March 30 at 10 am.
ADJOURNMENT - Mayor Jernigan adjourned the meeting at 6:59 pm ATTEST:
Mayor Janet Jernigan City Clerk Dale Jones, CMC
Item 6.
City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: April 9, 2024
Title: Authorize the purchase of a 2024 Transit Cargo Van not to exceed $60,701 to be funded by the Regents of the University of California grant for the City of Needles Animal Shelter Award
Background: The City has received a significant boost for its animal welfare efforts. The application submitted to California for All Animals in September 2023, seeking funding to implement a Trap, Neuter, Release (TNR) Program to manage the free-roaming cats in Needles, has been awarded a substantial amount of $112,000.
The funding awarded will provide
• One new vehicle to transport animals to a veterinarian, • One new part-time employee (1-year term),
• TNR program supplies (traps, trap covers, tarps, gloves, etc.), • veterinary services (up to 200 animals), and
• public education.
The proposed TNR program will improve the areas where domestic and non-domestic cats are found, reduce diseases, and provide a better quality of life for the community cats. The goal is to eliminate euthanasia at our Animal Shelter by providing an alternative for captured freeroaming cats and increasing adoption rates of those able to be rehomed. 5 The City’s Animal Shelter has been operating without a TNR program due to various limitations, including vehicle, budget, and staffing constraints. However, with the grant award, the Animal Shelter is now equipped to launch its first-ever TNR program, which will serve as a pilot project for one year. The City Council accepted the award on January 9, 2024, and the funds have been received. The staff will use sole-source procurement contracts to obtain government pricing on the fleet, and the new unit from Anderson Ford in Bullhead City is ready for delivery.
Fiscal Impact: The sales price is $55,750, and the sales tax is $4,321, which the grant will fund for a total cost of $60,071. Under the award, the total budget for a new vehicle is $60,000 plus $5,000 for fuel/travel costs.
Environmental Impact: None
Recommended Action: Authorize the purchase of a 2024 Transit Cargo Van not to exceed $60,701 to be funded by the Regents of the University of California grant for the City of Needles Animal Shelter Award
Submitted By: Rainie Torrance, Utility Manager
City Manager Approval: Date:
Other Department Approval (when required): Date:
Approved: Not Approved: Tabled: Other:
Agenda Item: ____________
4/4/2024
4/4/2024
Item 7.
Item 7.
Item 7.
Item 7.
Mar 29, 2024 11:31 AM
Rainie Torrance
[email protected]
Stock # B42000
2023 Ford Transit Cargo Van, Body Type: 3D Cargo Van
Color: Oxford White, 10 Miles VIN:1FTBR1C83PKB97220
Purchase (Monthly)
60 Mo 72 Mo 72 Mo
0% 0% 0%
$0 $929 - $934 $774 - $779 $774 - $779
$5,000 $846 - $851 $705 - $710 $705 - $710
$10,000 $763 - $768 $635 - $640 $635 - $640
MSRP/Retail $53,525.00
Selling Price $53,525.00
Selling Price Less Rebate $53,525.00
Document Fee $499.00
Registration (REG) $31.00
Desert Pro Package $1,695.00
Amount Financed $55,750.00
Customer Signature Date Manager Signature Date
ALL PAYMENTS AND INTEREST RATES ARE SUBJECT TO BANK APPROVAL OF CREDIT Item 7.
City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: April 9, 2024
Title: Authorize a two-year (2) no-cost increase contract extension to California Consulting for grant writing services
Background: On November 30, 2019 the City issued a request for proposals for professional grant writers. On April 23, 2019 the City executed a three-year contract at $95.00 per hour with California Consultant. In April, 2022 City Council authorized a two-year contract extension and accepted a contract increase from $95.00/hour to $110.00/hour.
The total amount paid to California Consultant for grant writing services over the past two years is $22,887 of which the City received assistance either writing the full grant application or assisting with narratives for the following grants:
BOR Water SMART Water Efficiency Program – Golf Course Irrigation (full grant) $5M U.S. DOE – Solar Farm (full grant) $5M
REAP 2.0 $284,500
Local Agency Technical Assistance $112,050
California Consultant has agreed to a two-year no-cost contract extension to continue supporting the city’s needs on future grant applications.
Fiscal Impact: Grant writing costs range based on the type and involvement in the grant application/process. Costs are funded by the department seeking the grant opportunity and funded by the adopted fiscal year budget.
Environmental Impact: None
Recommended Action: Authorize a two-year (2) no-cost increase contract extension to California Consulting for grant writing services Submitted By: Rainie Torrance, Utility Manager
City Manager Approval: Date:
Other Department Approval (when required): Date:
Approved: Not Approved: Tabled: Other:
Agenda Item: ____________
4/4/2024
4/4/2024
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City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: April 9, 2024
Title: Authorize Route 66 Broadband to Donate Internet Services to the Needles Ed Parry Field
Background: The City entered into an agreement with Golden Valley Cable Company now known as Route 66 Broadband on April 5, 2018 for internet services. Route 66 Broadband provides internet services to numerous City sites.
Route 66 Broadband has requested to provide donated internet services to the Needles Ed Parry Fields. All equipment and services are free to the City. At such time Route 66 Broadband does not hold the City’s internet services agreement, all said equipment will be removed by Route 66 Broadband.
The donated internet services will allow the Needles Little League to utilize the WIFI to support their snack bar to accept credit cards.
Fiscal Impact: None
Environmental Impact: None
Recommended Action: Authorize Route 66 Broadband to Donate Internet Services to the Needles Ed Parry Field
Submitted By: Rainie Torrance, Utility Manager
City Manager Approval: Date:
Other Department Approval (when required): Date:
Approved: Not Approved: Tabled: Other:
Agenda Item: ____________
4/4/2024
Item 9.
City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: April 9, 2024
Title: Accept the work completed by Western Construction Specialists, Inc. for the Jack Smith Park Walking/Biking Trail Improvements Project.
Background: The City accepted a grant from the State of California Department of Parks and Recreation in the amount of $181,116.00 for design and construction of park improvements consisting of the installation of approximately 1300 L.F. walking/biking trail and seven (7) pieces of exercise equipment along the trail route.
The project was designed by TKE Engineering Inc. and constructed by Western Construction Specialists, Inc. for a total project cost of $177,716.83. Remaining funds available on the grant are being utilized to replace one (1) drinking fountain and to purchase plants/shrubs to be installed by Public Works.
Construction of the walkway started in November 2023 and was completed in March 2024.
Fiscal Impact: The total project cost of $177,716.83 was funded by a grant awarded by the California Department of Parks and Recreation through the 2018 Parks Bond Act per capital program.
Environmental Impact: N/A
Recommended Action: Accept the work completed by Western Construction Specialists, Inc. for the Jack Smith Park Walking/Biking Trail Improvements Project and authorize a NOTICE OF COMPLETION to record with the San Bernardino County Recorder’s Office.
Submitted By: Kathy Raasch, Interim Development Services Director City Manager Approval: Date:
Other Department Approval (when required): Date:
Approved: Not Approved: Tabled: Other:
Agenda Item: ____________
4/4/2024
4/4/2024
Item 10.
Item 10.
City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: April 9, 2024
Title: Accept Change Order No. 4 (Final) in the Amount of $23,123.87 and Accept the Work Completed by Cora Constructors, Inc. for the Lily Hill Water Booster Station Project.
Background: The Lily Hill Water Booster Station project consisted of the demolition of the existing pump station and construction of a new building and booster station at the existing site. Cora Constructors, Inc was awarded the project in May 2022 and completed the project in March 2024.
The total contract amount including three (3) previous change orders was $2,183,953.66.
Change Order No. 4 (Final), which is presented here, includes costs for the purchase of two (2) mechanical seals to have on hand in case of a failure and a line stop procedure to cap and block existing waterlines feeding the old pump station. These items increase the project cost by $23,123.87.00 resulting in a total contract amount of $2,207,077.53.
Fiscal Impact: The project is funded by Grant Amendment No. 3 to the original Grant Agreement with the California State Water Resources Control Board in the amount of $14,315,640 for water system improvements. The Lily Hill Water Booster Station is identified as Phase 1 of the total project in the amount of $2,086,775 with a $240,000 allowable contingency.
The total construction cost consisting of the base bid and four (4) change orders for the project resulted in a total contract amount of $2,207,077.53. Therefore, the project was completed within the allowable budget in the funding agreement resulting in no additional costs to the City.
Recommended Action: Accept Change Order No. 4 (Final) in the amount of $23,123.87 and accept the work completed by Cora Constructors, Inc. for the Lily Hill Water Booster Station Project and authorize a NOTICE OF COMPLETION to record with the San Bernardino County Recorder’s Office.
Submitted By: Kathy Raasch, Interim Development Services Director City Manager Approval: Date:
Other Department Approval (when required): Date:
Approved: Not Approved: Tabled: Other:
Agenda Item: ____________
4/4/2024
4/4/2024
Item 11.
RECORDING REQUESTED BY:
City of Needles
817 Third Street
Needles, CA 92363
AND WHEN RECORDED MAIL TO:
City of Needles
817 Third Street
Needles, CA 92363
No fee per Govt. Code § 27383 ~ SPACE ABOVE FOR RECORDER’S USE ONLY ~
NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN THAT:
The undersigned is OWNER or AGENT OF THE OWNER of the interest or estate stated below in the property hereinafter described.
The full NAME of the OWNER is CITY OF NEEDLES
The ADDRESS of the OWNER is 817 THIRD STREET, NEEDLES, CA 92363 The NATURE OF THE INTEREST or estate of the undersigned is In FEE Street Address / APN (if applicable)
The full name(s) and address(es) of all persons, if any, who hold such interest or estate with the undersigned as joint tenants or as tenants in common are:
Contractor’s Name Contractor’s Address:
I, am the
(Name of below signor) (Owner, President, Authorized Agent, Partner, etc.) the declarant of the foregoing Notice of Completion. I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Notice of Completion 03-17-2023
The property on which said work of improvement was completed is in the City of Needles, County of San Bernardino, State of California, and was approved by the Needles City Council by minute action at the meeting and is DESCRIBED AS FOLLOWS:
Improvement on the property hereinafter described and COMPLETED on Improvements described as
Date: Signature:
Patrick J. Martinez, City Manager, City of Needles
Patrick J. Martinez City Manager
04/10/2024
Construction of the Lillyhill Water Booster Station.
04/03/2024
Cora Constructors, Inc. 75140 St. Charles Place, Ste. A, Palm Desert, CA 92211 1403 Lillyhill Dr 0185-233-55-0000
04/09/2024
Item 11.
CITY OF NEEDLES
C H A N G E O R D E R
PROJECT: Lilly Hill Water Booster Pump Station ORDER NO: 4 OWNER: City of Needles CONTRACTOR: Cora Constructors, Inc.
FOLLOWING CHANGES ARE MADE TO THE CONTRACT:
Description of Changes Decrease Contract Price Increase Contract Price 1) Line stop (2) 10” lines $20,865.87
2) Mechanical Seals $ 2,258.00
JUSTIFICATION:
1) Line Stop (2) 10” lines
Two (2) existing 10” waterlines serving the old Lily Hill Booster Station could not be isolated/shut down to achieve a complete water shut off. A specialty contractor was brought in to drill into the existing lines while the system was live and create a line stop to cap and block the lines below existing grade. $20,865.87 for all labor and materials to perform the work – funded by project contingency. 2) Two (2) Mechanical Seals
Two (2) additional Mechanical Seals were provided by the contractor to have on hand in case of a failure during routine maintenance.
$2,258.00 for materials only, including shipping and handling – funded by project contingency.
Original Contract Price $2,086,775.00
Previous Change Order(s) Amount $97,178.66
Original Contract Price plus previous Change Orders $2,183,953.66 Contract Price Due This Change Order $23,123.87
New Contract Price $2,207,077.53
CHANGE IN CONTRACT TIME
Contract Time will be
(Increased)
Adjusted Date for
Completion of all Work Calendar Days
30 4/1/24 663
APPROVALS REQUIRED
Requested by:
Signature (Project Manager)
Date:
Contractor Acceptance:
Signature (Contractor)
Date:
Approved by: Date: 04/09/24
Signature (City Manager) CC meeting
C H A N G E O R D E R
Item 11.
City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: April 9, 2024
Title: Increasing City Manager and Finance Department Salary Budgets for Vacation and Admin/Comp Cash Outs at Termination
Background: When an employee retires or terminates employment for any reason, Vacation and Admin/Comp balances must be paid out to the employee.
Recently, a couple of employees with high vacation and admin/comp balances left employment with the city.
Therefore, we will need to add the amount to the City Manager and Finance Department salaries expense.
Fiscal Impact: Increase City Manager department salaries budget by $21,000 and increase Finance department salaries budget by $11,000 to be funded General Fund Reserves
Environmental Impact: N/A
Recommended Action: Authorize an increase of $21,000 to the City Manager department salaries budget and an increase of $11,000 to the Finance Department salaries budget from General Fund Reserves
Submitted By: Barbara DiLeo, Acting Director of Finance City Manager Approval: Date:
Other Department Approval (when required): Date:
Approved: Not Approved: Tabled: Other:
Agenda Item: ____________
4/4/2024
Item 12.